Atlantic Coast Financial in Jacksonville, Fla., has taken several steps to restructure its debt holdings, as it seeks to cut costs.

The $744 million-asset company prepaid $60 million in advances with the Federal Home Loan Bank, and prepaid $56.3 million of securities sold under separate repurchase agreements. Atlantic Coast incurred $3 million in penalties for the FHLB prepayment, and $5.2 million in penalties for prepayment of the repurchase agreements.

Combined with a previously announced reversal of a valuation allowance, the net prepayment penalties totaled $5.1 million, after tax.

Atlantic Coast also restructured $50 million in FHLB advances, resulting in $3.5 million in prepayment penalties.

Atlantic Coast estimated that all of the restructurings will save a total of about $5 million yearly in interest expense. The company earlier this week said it was in talks to restructure its wholesale debt; all of the debt transactions closed this week.

Atlantic Coast in March was released from a consent order that had required it to improve its capital ratios.

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