Jacksonville-based Atlantic Coast Fincancial agrees to merger with Florida Community Bank
Feb 26, 2013 (Menafn - The Florida Times-Union - McClatchy-Tribune Information Services via COMTEX) --Jacksonville-based Atlantic Coast Financial Corp. is set to merge with Bond Street Holdings Inc.
Atlantic Coast Financial has about a dozen branch bank offices from Waycross, Ga., through Jacksonville and agreed to the merger. Bond Street, based in Miami, will acquire the common stock of Atlantic Coast, which has assets of about 777 million. The proposed merger has to undergo review by federal regulators and Atlantic Coast's 1,600 stockholders, company spokesman Patrick Watson said.
The Atlantic Coast locations will operate under the name of Florida Community Bank, a subsidiary of Bond Street that has 3.2 billion in assets. Ross Lovern, spokesman for Bond Street, said there are no plans to close any of those offices at this time.
The markets responded favorably early Tuesday shortly after the planned merger was announced. Atlantic Coast shares jumped to briefly 4.80 in pre-market trading, up from the Monday close of 3.54.
The troubled economy triggered by the recession in the past five years led to the decision to seek the merger, Watson said.
"Atlantic Coast Financial has been considering strategic alternatives for more than a year," he said. "The company's capital position was affected by the recession and the housing crisis a few years ago. It has deteriorated the capital of the company."
Watson said the merger deal was amenable with both companies.
"I think the company believes this is the most attractive option," Watson said. "When the transaction is completed, Atlantic Coast Bank is going to be part of a larger, stronger organization. Hopefully all of the customers of the bank will benefit from that."
Kent Ellert, president and chief executive officer of Florida Community Bank, said in a news release that the merger was welcomed news.
"We are excited by the prospects of growing our bank platform with the addition of Atlantic Coast," Ellert said. "This acquisition will enhance our Florida footprint significantly by giving us attractive visibility. ..."
Florida Community Bank is currently the fifth-largest independent banking organization in Florida and has 41 community branches in the state The merger is expected to increase those operational properties to 53 and move the bank to fourth-largest.
Drew Dixon: (904) 359-4098
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