Atlantic Coast Financial (ACFC) in Jacksonville, Fla., narrowed its losses during a quarter of management upheaval.
The $714 million-asset company reported a loss of $900,000 in the third quarter, compared with a $1.7 million loss a year earlier. The loss included costs related to the cancellation of Atlantic Coast's sale to Bond Street Holdings, which shareholders rejected in June, the company said Tuesday.
Atlantic Coast's net interest income fell 19%, to $3.8 million, compared with the year-prior quarter, as its net interest margin tightened by 33 basis points, to 2.22%. Its loan book shrunk by 14%, to $380.1 million.
The company's problem assets shrunk as well, as its provision for loan losses fell 63%, to $1.3 million, and its net chargeoffs fell 42%, to $1.8 million.
Atlantic Coast's noninterest income dropped by 41%, to $1.6 million, as gains from securities sales declined. Noninterest expense fell by 11%, to $5 million, mostly due to lower compensation costs.
Last month the company's board added two directors backed by dissident investor Jay Sidhu, who opposed the Bond Street deal and helped oust several directors and the chief executive after it fell through. The company hired John Stephens, the former chief lending officer of Fifth Third (FITB), as its new CEO.