Atlantic Coast Financial Corp. said it will explore strategic options, including a potential business combination, after it didn't meet minimum capital requirements and has posted four straight quarters of losses.
The company received approval from the Federal Reserve Board to consider options. The move was required as part of a previous approval of a second-step conversion and stock offering, which was completed early this year.
Atlantic, the holding company for Atlantic Coast Bank, had intended to raise additional capital through a rights offering in order to meet minimum capital requirements for its bank, which was set at a Tier 1 leverage ratio of 7%. As previously disclosed, the bank's Tier 1 leverage ratio as of Sept. 30 was 6.22%, meaning it didn't meet the requirement at the end of its third quarter.
The bank has 12 branches in southeastern Georgia and northeastern Florida, with a focus on Jacksonville, Fla. It brought on Stifel Financial Corp. (SF) to assist in its review.
Last month, the company said its third-quarter loss narrowed, though total assets fell in value and net charge-offs edged up.
