Atlantic Coast Financial (ACFC) in Jacksonville, Fla., plans to sell $46 million in common stock.
The move, disclosed in a Tuesday regulatory filing, follows a tumultuous period for the $743 million-asset company. A group of dissident shareholders, led by veteran banker Jay Sidhu, successfully opposed a proposed sale to Bond Street Holdings in June, arguing that Atlantic needed to recapitalize rather than accept an offer valued at $5 a share.
The stock sale is part of Atlantic's ongoing efforts to raise capital in the aftermath of its failed sale, according to spokesman Pat Watson. "While the merger wasn't approved, the bank's capital need remains," Watson said. "So when that avenue was closed, the company announced that it would continue to pursue other opportunities."
Atlantic has been rebuilding its leadership team after ousting its former chief executive and three directors in the aftermath of the rejected sale. The company's chairman also stepped down in August.