Atlantic Coast Financial (ACFC) in Jacksonville, Fla., has launched a $42 million public offering.
The $744 million-asset company said it plans to use proceeds from the sale to boost capital and support growth in its loan and investment portfolios. Atlantic Coast is operating under a 2012 order from the Office of the Comptroller of the Currency that requires the company to maintain a Tier 1 leverage ratio of at least 9% and a total risk-based capital ratio of at least 13%. Those ratios stood at 4.88% and 10.3%, respectively, as of Sept. 30.
Atlantic Coast tried to sell itself to Bond Street Holdings for $13.1 million earlier this year. The proposed sale was derailed in June by a group of dissident investors led by banker Jay Sidhu, who argued that the offer was too low.
FBR Capital Markets is acting as the book-running manager for the sale. Underwriters will have a 30-day option to buy up to an additional 15% of shares of common stock to cover over-allotments.