Federal
|
59-3764686
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer Identification No.)
|
505
Haines Avenue
Waycross,
Georgia
|
31501
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Registrant's
telephone number, including area code: (800)
342-2824
|
Title of class
|
Name of each exchange on which
registered
|
|
Common
Stock, $0.01 par value
|
The
NASDAQ Stock Market,
LLC
|
Page
|
||
PART
I
|
Number
|
|
Item
1.
|
1
|
|
1
|
||
3
|
||
4
|
||
4
|
||
22
|
||
24
|
||
27
|
||
Item
1A.
|
37
|
|
Item
1B.
|
44
|
|
Item
2.
|
44
|
|
Item
3.
|
45
|
|
Item
4.
|
45
|
|
PART
II
|
||
Item
5.
|
45
|
|
Item
6.
|
48
|
|
Item
7.
|
50
|
|
50
|
||
50
|
||
52
|
||
54
|
||
58
|
||
59
|
||
61
|
||
70
|
||
72
|
||
72
|
||
73
|
||
73
|
||
Item
7A.
|
74
|
|
Item
8.
|
77
|
|
77
|
||
78
|
||
84
|
||
Item
9.
|
120
|
|
Item
9A.
|
120
|
|
Item
9B.
|
121
|
PART
III
|
||
Item
10.
|
122
|
|
Item
11.
|
122
|
|
Item
12.
|
122
|
|
Item
13.
|
122
|
|
Item
14.
|
122
|
|
PART
IV
|
||
Item
15.
|
122
|
|
Form
10-K
|
124
|
|
Exhibit
21.
|
Subsidiaries
of Registrant
|
125 |
Exhibit
23.1
|
Consent
of Crowe Horwath LLP
|
126
|
Exhibit
31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
127
|
Exhibit
31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
128
|
Exhibit
32.
|
Certification
of Chief Executive Officer and Chief Financial Officer of Atlantic Coast
Federal Corporation pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
129
|
Item
1.
|
Business
|
At
December 31,
|
||||||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||||||||||
One-
to four-family
|
$ | 370,783 | 49.86 | % | $ | 377,956 | 53.51 | % | $ | 334,000 | 52.14 | % | $ | 324,681 | 55.88 | % | $ | 303,544 | 58.44 | % | ||||||||||||||||||||
Commercial
|
84,134 | 11.31 | % | 74,748 | 10.58 | % | 60,912 | 9.51 | % | 59,074 | 10.16 | % | 57,178 | 11.01 | % | |||||||||||||||||||||||||
Other
(land & multi-family)
|
43,901 | 5.91 | % | 40,698 | 5.76 | % | 34,446 | 5.38 | % | 20,302 | 3.49 | % | 20,120 | 3.87 | % | |||||||||||||||||||||||||
Total
real estate loans
|
498,818 | 67.08 | % | 493,402 | 69.85 | % | 429,358 | 67.03 | % | 404,057 | 69.53 | % | 380,842 | 73.32 | % | |||||||||||||||||||||||||
Real estate construction
loans:
|
||||||||||||||||||||||||||||||||||||||||
Construction-one-
to four-family
|
8,974 | 1.21 | % | 13,448 | 1.90 | % | 32,467 | 5.07 | % | 24,243 | 4.17 | % | 14,275 | 2.75 | % | |||||||||||||||||||||||||
Construction-commercial
|
10,883 | 1.46 | % | 11,129 | 1.58 | % | 2,862 | 0.45 | % | 2,577 | 0.44 | % | 2,577 | 0.50 | % | |||||||||||||||||||||||||
Acquisition
& development
|
5,008 | 0.67 | % | 5,329 | 0.75 | % | 2,103 | 0.33 | % | - | 0.00 | % | - | 0.00 | % | |||||||||||||||||||||||||
Total
real estate construction loans
|
24,865 | 3.34 | % | 29,906 | 4.23 | % | 37,432 | 5.85 | % | 26,820 | 4.61 | % | 16,852 | 3.25 | % | |||||||||||||||||||||||||
Other loans:
|
||||||||||||||||||||||||||||||||||||||||
Home
equity
|
107,525 | 14.46 | % | 98,410 | 13.93 | % | 91,062 | 14.22 | % | 79,016 | 13.60 | % | 60,077 | 11.57 | % | |||||||||||||||||||||||||
Consumer
|
87,162 | 11.72 | % | 64,673 | 9.16 | % | 63,630 | 9.93 | % | 62,846 | 10.81 | % | 57,893 | 11.15 | % | |||||||||||||||||||||||||
Commercial
|
25,273 | 3.40 | % | 20,009 | 2.83 | % | 19,044 | 2.97 | % | 8,430 | 1.45 | % | 3,711 | 0.71 | % | |||||||||||||||||||||||||
Total
other loans
|
219,960 | 29.58 | % | 183,092 | 25.92 | % | 173,736 | 27.12 | % | 150,292 | 25.86 | % | 121,681 | 23.43 | % | |||||||||||||||||||||||||
Total
loans
|
$ | 743,643 | 100.00 | % | $ | 706,400 | 100.00 | % | $ | 640,526 | 100.00 | % | $ | 581,169 | 100.00 | % | $ | 519,375 | 100.00 | % | ||||||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||||||||||
Net
deferred loan origination costs
|
8,662 | 3,256 | 3,348 | 3,164 | 1,473 | |||||||||||||||||||||||||||||||||||
Premiums
on purchased loans
|
172 | 339 | 348 | 695 | 819 | |||||||||||||||||||||||||||||||||||
Allowance
for loan losses
|
(10,598 | ) | (6,482 | ) | (4,705 | ) | (4,587 | ) | (3,956 | ) | ||||||||||||||||||||||||||||||
Total
loans, net
|
$ | 741,879 | $ | 703,513 | $ | 639,517 | $ | 580,441 | $ | 517,711 |
One- to Four-Family
|
Commercial Real Estate
|
Other Real Estate
(1)
|
Construction-One- to four-family
(2)
|
Construction-
Commercial
(2)
|
Acquisition &
Development
|
|||||||||||||||||||||||||||||||||||||||||||
Amount
|
Weighted
Average
Rate (%)
|
Amount
|
Weighted
Average
Rate (%)
|
Amount
|
Weighted
Average
Rate (%)
|
Amount
|
Weighted
Average
Rate (%)
|
Amount
|
Weighted
Average
Rate (%)
|
Amount
|
Weighted
Average
Rate (%)
|
|||||||||||||||||||||||||||||||||||||
At
December 31, 2008
|
(Dollars
in Thousands)
|
|||||||||||||||||||||||||||||||||||||||||||||||
1
year or less
|
$ | 114 | 7.00 | % | $ | 15,172 | 6.11 | % | $ | 12,414 | 3.98 | % | $ | 2,661 | 4.21 | % | $ | 10,298 | 4.34 | % | $ | 405 | 3.75 | % | ||||||||||||||||||||||||
Greater
than 1 to 3 years
|
4,413 | 5.21 | 16,137 | 5.94 | 13,943 | 6.29 | 179 | 3.50 | - | - | 4,603 | 4.09 | ||||||||||||||||||||||||||||||||||||
Greater
than 3 to 5 years
|
2,210 | 6.21 | 15,813 | 7.27 | 5,070 | 8.81 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Greater
than 5 to 10 years
|
25,496 | 5.25 | 22,655 | 6.80 | 3,529 | 7.25 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Greater
than 10 to 20 years
|
40,973 | 6.05 | 13,548 | 6.71 | 5,921 | 7.49 | - | - | 585 | 3.42 | - | - | ||||||||||||||||||||||||||||||||||||
More
than 20 years
|
297,577 | 6.04 | 809 | 5.95 | 3,024 | 6.05 | 6,134 | 8.09 | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Total
|
$ | 370,783 | $ | 84,134 | $ | 43,901 | $ | 8,974 | $ | 10,883 | $ | 5,008 |
Home Equity
|
Consumer
|
Commercial
|
Total
|
|||||||||||||||||||||||||||||
Amount
|
Weighted
Average
Rate (%)
|
Amount
|
Weighted
Average
Rate (%)
|
Amount
|
Weighted
Average
Rate (%)
|
Amount
|
Weighted
Average
Rate (%)
|
|||||||||||||||||||||||||
At
December 31, 2008
|
(Dollars
in Thousands)
|
|||||||||||||||||||||||||||||||
1
year or less
|
$ | 267 | 5.50 | % | $ | 2,627 | 6.33 | % | $ | 9,207 | 4.39 | % | $ | 53,165 | 5.03 | % | ||||||||||||||||
Greater
than 1 to 3 years
|
2,499 | 7.56 | 23,449 | 10.89 | 7,626 | 3.66 | 72,849 | 6.95 | ||||||||||||||||||||||||
Greater
than 3 to 5 years
|
4,882 | 7.54 | 17,038 | 10.76 | 3,307 | 6.64 | 48,320 | 8.60 | ||||||||||||||||||||||||
Greater
than 5 to 10 years
|
7,183 | 7.58 | 4,547 | 8.71 | 5,115 | 7.15 | 68,525 | 6.48 | ||||||||||||||||||||||||
Greater
than 10 to 20 years
|
27,282 | 7.34 | 26,716 | 8.56 | 18 | 8.25 | 115,043 | 7.08 | ||||||||||||||||||||||||
More
than 20 years
|
65,412 | 6.15 | 12,785 | 7.99 | - | - | 385,741 | 6.16 | ||||||||||||||||||||||||
Total
|
$ | 107,525 | $ | 87,162 | $ | 25,273 | $ | 743,643 |
(1)
|
Land
and multi-family.
|
(2)
|
Construction
loans include notes that cover both the construction period and the end
permanent financing, and therefore, the schedule shows maturities for
periods greater than one year.
|
One-
to Four-Family
|
Commercial
Real Estate
|
Other
–Real Estate
(1)
|
Construction
One- to four-family
(2)
|
Construction
Commercial
(2)
|
Acquisition
& Development
|
Home
Equity
|
Consumer
|
Commercial
|
Total
|
|||||||||||||||||||||||||||||||
Amount
|
Amount
|
Amount
|
Amount
|
Amount
|
Amount
|
Amount
|
Amount
|
Amount
|
Amount
|
|||||||||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||||||||||
1
year or less
|
$ | 78,393 | $ | 30,266 | $ | 24,963 | $ | 2,513 | $ | 10,298 | $ | 5,008 | $ | 57,321 | $ | 12,034 | $ | 16,948 | $ | 237,744 | ||||||||||||||||||||
Greater
than 1 to 3 years
|
72,412 | 15,185 | 8,716 | 165 | - | - | 19,068 | 58,622 | 1,362 | 175,530 | ||||||||||||||||||||||||||||||
Greater
than 3 to 5 years
|
21,988 | 19,066 | 5,682 | 2,002 | - | - | 4,408 | 14,635 | 3,026 | 70,807 | ||||||||||||||||||||||||||||||
Greater
than 5 to 10 years
|
32,673 | 12,458 | 1,882 | - | - | - | 5,670 | 1,871 | 3,937 | 58,491 | ||||||||||||||||||||||||||||||
Greater
than 10 to 20 years
|
32,618 | 7,159 | 2,639 | - | 585 | - | 19,291 | - | - | 62,292 | ||||||||||||||||||||||||||||||
More
than 20 years
|
132,699 | - | 19 | 4,294 | - | - | 1,767 | - | - | 138,779 | ||||||||||||||||||||||||||||||
Total
|
$ | 370,783 | $ | 84,134 | $ | 43,901 | $ | 8,974 | $ | 10,883 | $ | 5,008 | $ | 107,525 | $ | 87,162 | $ | 25,273 | $ | 743,643 |
(1)
|
Land
and multi-family.
|
(2)
|
Construction
loans include notes that cover both the construction period and the end
permanent financing, and therefore, the schedule shows repricing dates
greater than one year.
|
Due
After December 31, 2009
|
||||||||||||
Fixed
Rate
|
Adjustable
Rate
|
Total
|
||||||||||
(Dollars
in Thousands)
|
||||||||||||
Real estate
loans
:
|
||||||||||||
One-
to four-family
|
$ | 196,420 | $ | 174,249 | $ | 370,669 | ||||||
Commercial
|
37,788 | 31,174 | 68,962 | |||||||||
Other
(1)
|
16,724 | 14,763 | 31,487 | |||||||||
Construction
loans
:
|
||||||||||||
One-
to four-family
|
$ | 2,002 | $ | 4,311 | $ | 6,313 | ||||||
Commercial
|
585 | - | 585 | |||||||||
Acquisition
& development
|
- | 4,603 | 4,603 | |||||||||
Other
loans
:
|
||||||||||||
Home
equity
|
$ | 32,902 | $ | 74,356 | $ | 107,258 | ||||||
Consumer
|
84,278 | 257 | 84,535 | |||||||||
Commercial
business
|
7,807 | 8,259 | 16,066 | |||||||||
Total
loans
|
$ | 378,506 | $ | 311,968 | $ | 690,474 |
|
(1)
|
Land
and multi-family loans.
|
Loans
Delinquent For:
|
Total
|
|||||||||||||||||||||||
60-89
Days
|
90
Days or More
|
Delinquent
Loans
|
||||||||||||||||||||||
Loan
Types
|
Number
of Loans
|
Principal
Balance of Loans
|
Number
of Loans
|
Principal
Balance of Loans
|
Number
of Loans
|
Principal
Balance of Loans
|
||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||
Real estate
|
||||||||||||||||||||||||
One-
to four-family
|
10 | $ | 1,848 | 36 | $ | 8,599 | 46 | $ | 10,447 | |||||||||||||||
Commercial
|
- | - - | 4 | 7,185 | 4 | 7,185 | ||||||||||||||||||
Other
(Land and multi-family)
|
1 | 35 | 13 | 1,188 | 14 | 1,223 | ||||||||||||||||||
Real Estate Construction
|
||||||||||||||||||||||||
Construction
- One- to four-family
|
- | - | 2 | 258 | 2 | 258 | ||||||||||||||||||
Construction
– Commercial
|
- | - | 2 | 4,289 | 2 | 4,289 | ||||||||||||||||||
Construction
- Acquisition & development
|
- | - | - | - | - | - | ||||||||||||||||||
Other Loans – Consumer
|
||||||||||||||||||||||||
Home
equity
|
12 | 837 | 16 | 840 | 28 | 1,677 | ||||||||||||||||||
Consumer
|
34 | 249 | 41 | 387 | 75 | 636 | ||||||||||||||||||
Commercial
|
- | - | 1 | 170 | 1 | 170 | ||||||||||||||||||
Total
|
57 | $ | 2,969 | 115 | $ | 22,916 | 172 | $ | 25,885 | |||||||||||||||
Delinquent
loans to total gross loans
|
0.39 | % | 3.05 | % | 3.44 | % |
At
December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||
Non-accrual
loans:
|
||||||||||||||||||||
Real Estate
|
||||||||||||||||||||
One-
to four-family
|
$ | 10,319 | $ | 2,312 | $ | 325 | $ | 697 | $ | 1,931 | ||||||||||
Commercial
|
5,126 | 280 | 430 | 238 | 3,271 | |||||||||||||||
Other
(Land & multi-family)
|
2,941 | 1,073 | 104 | 109 | - | |||||||||||||||
Real Estate Construction
|
||||||||||||||||||||
Construction
- One-to four-family
|
86 | - | 551 | - | - | |||||||||||||||
Construction
- Commercial
|
3,169 | 2,407 | - | - | - | |||||||||||||||
Construction
- Acquisition & Development
|
1,812 | - | - | - | - | |||||||||||||||
Other
|
||||||||||||||||||||
Home
Equity
|
1,525 | 774 | 280 | 35 | - | |||||||||||||||
Consumer
|
387 | 221 | 445 | 597 | 290 | |||||||||||||||
Commercial
|
170 | 772 | 915 | 940 | 1,166 | |||||||||||||||
Total
|
$ | 25,535 | $ | 7,839 | $ | 3,050 | $ | 2,616 | $ | 6,658 | ||||||||||
Accruing
delinquent 90 days or more:
|
||||||||||||||||||||
Real Estate
|
||||||||||||||||||||
One-
to four-family
|
- | - | - | - | - | |||||||||||||||
Commercial
|
- | - | - | - | - | |||||||||||||||
Other
(Land & multi-family)
|
- | - | - | - | - | |||||||||||||||
Real Estate Construction
|
||||||||||||||||||||
Construction
- One-to four-family
|
- | - | - | - | - | |||||||||||||||
Construction
- Commercial
|
- | - | - | - | - | |||||||||||||||
Construction
- Acquisition & Development
|
- | - | - | - | - | |||||||||||||||
Other
|
||||||||||||||||||||
Home
Equity
|
- | - | - | - | - | |||||||||||||||
Consumer
|
- | - | - | - | - | |||||||||||||||
Commercial
|
- | - | - | - | - | |||||||||||||||
Total
|
- | - | - | - | - | |||||||||||||||
Total
non-performing loans
|
25,535 | 7,839 | 3,050 | 2,616 | 6,658 | |||||||||||||||
Foreclosed
assets
|
3,332 | 1,726 | 286 | 310 | 323 | |||||||||||||||
Total
non-performing assets
|
$ | 28,867 | $ | 9,565 | $ | 3,336 | $ | 2,926 | $ | 6,981 | ||||||||||
Total
troubled debt restructurings
|
$ | 7,004 | - | - | - | - | ||||||||||||||
Non-performing
loans to total loans
|
3.43 | % | 1.11 | % | 0.48 | % | 0.45 | % | 1.28 | % | ||||||||||
Non-performing
loans to total assets
|
2.56 | % | 0.84 | % | 0.36 | % | 0.39 | % | 1.09 | % | ||||||||||
Non-performing
assets to total assets
|
2.90 | % | 1.03 | % | 0.40 | % | 0.39 | % | 1.09 | % |
At
December 31,
|
||||||||
2008
|
2007
|
|||||||
(Dollars
in Thousands)
|
||||||||
Loss
|
$ | - | $ | - | ||||
Doubtful
|
459 | 1,527 | ||||||
Substandard
|
33,248 | 5,519 | ||||||
Total
|
$ | 33,707 | $ | 7,046 |
Year
Ended December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||
Balance
at beginning of period
|
$ | 6,482 | $ | 4,705 | $ | 4,587 | $ | 3,956 | $ | 6,593 | ||||||||||
Charge-offs:
|
||||||||||||||||||||
Real Estate Loans
|
||||||||||||||||||||
One-to
four-family
|
3,514 | 133 | 107 | 192 | 78 | |||||||||||||||
Commercial
|
3,393 | - | - | 605 | 4,637 | |||||||||||||||
Other
(Land & Multi-family)
|
777 | 41 | - | - | - | |||||||||||||||
Real Estate Construction
Loans
|
||||||||||||||||||||
Construction
- One-to four- family
|
336 | 275 | - | - | - | |||||||||||||||
Construction
- Commercial
|
- | - | - | - | - | |||||||||||||||
Acquisition
& Development
|
- | - | - | - | - | |||||||||||||||
Other Loans
|
||||||||||||||||||||
Home
equity
|
1,392 | 550 | 14 | 160 | 63 | |||||||||||||||
Consumer
|
1,232 | 1,819 | 1,094 | 1,249 | 1,642 | |||||||||||||||
Commercial
|
345 | 135 | - | 120 | - | |||||||||||||||
Total
charge-offs
|
10,989 | 2,953 | 1,215 | 2,326 | 6,420 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
Real Estate Loans
|
||||||||||||||||||||
One-to
four-family
|
25 | 5 | 54 | 40 | 7 | |||||||||||||||
Commercial
|
550 | 893 | 83 | 51 | - | |||||||||||||||
Other
(Land & Multi-family)
|
45 | - | - | - | - | |||||||||||||||
Real Estate Construction
Loans
|
||||||||||||||||||||
Construction
- One-to four-family
|
- | - | - | - | - | |||||||||||||||
Construction
- Commercial
|
- | - | - | - | - | |||||||||||||||
Acquisition
& Development
|
- | - | - | - | - | |||||||||||||||
Other Loans
|
||||||||||||||||||||
Home
equity
|
3 | 71 | 18 | 1 | 11 | |||||||||||||||
Consumer
|
533 | 1,145 | 703 | 732 | 790 | |||||||||||||||
Commercial
|
1 | - | - | 12 | - | |||||||||||||||
Total
recoveries
|
1,157 | 2,114 | 858 | 836 | 808 | |||||||||||||||
Net
charge-offs
|
9,832 | 839 | 357 | 1,490 | 5,612 | |||||||||||||||
Provision
for loan losses
|
13,948 | 2,616 | 475 | 2,121 | 2,975 | |||||||||||||||
Balance
at end of period
|
$ | 10,598 | $ | 6,482 | $ | 4,705 | $ | 4,587 | $ | 3,956 | ||||||||||
Net
charge-offs to average loans during this period (1)
|
1.35 | % | 0.13 | % | 0.06 | % | 0.27 | % | 1.16 | % | ||||||||||
Net
charge-offs to average non-performing loans during this
period
|
131.80 | % | 24.71 | % | 11.36 | % | 43.41 | % | 122.10 | % | ||||||||||
Allowance
for loan losses to non-performing loans
|
41.50 | % | 82.69 | % | 154.21 | % | 175.36 | % | 59.42 | % | ||||||||||
Allowance
as % of total loans (end of period) (1)
|
1.43 | % | 0.92 | % | 0.73 | % | 0.78 | % | 0.75 | % |
(1)
|
Total
loans are net of deferred fees and costs and purchase premiums or
discounts.
|
At
December 31,
|
||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||||||||||||||
Amount
of Loan Loss Allowance
|
Loan
Amounts by Category
|
Percent
of Loans in Each Category to Total Loans
|
Amount
of Loan Loss Allowance
|
Loan
Amounts by Category
|
Percent
of Loans in Each Category to Total Loans
|
Amount
of Loan Loss Allowance
|
Loan
Amounts by Category
|
Percent
of Loans in Each Category to Total Loans
|
||||||||||||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||||||||||||||
Real Estate Loans
|
||||||||||||||||||||||||||||||||||||
One-to
four-family
|
$ | 2,805 | $ | 370,783 | 49.86 | % | $ | 1,609 | $ | 377,956 | 53.50 | % | $ | 771 | $ | 334,000 | 52.14 | % | ||||||||||||||||||
Commercial
|
1,458 | 84,134 | 11.31 | % | 583 | 74,748 | 10.58 | % | 660 | 60,912 | 9.51 | % | ||||||||||||||||||||||||
Other
(land & multi-family)
|
1,061 | 43,901 | 5.90 | % | 883 | 40,698 | 5.76 | % | 212 | 34,446 | 5.38 | % | ||||||||||||||||||||||||
Real Estate Construction
|
||||||||||||||||||||||||||||||||||||
Construction
- One-to four family
|
98 | 8,974 | 1.21 | % | 399 | 13,448 | 1.90 | % | 323 | 32,467 | 5.07 | % | ||||||||||||||||||||||||
Construction
- Commercial
|
116 | 10,883 | 1.46 | % | 571 | 11,129 | 1.58 | % | 63 | 2,862 | 0.45 | % | ||||||||||||||||||||||||
Acquistion
& Development
|
1,737 | 5,008 | 0.67 | % | - | 5,329 | 0.75 | % | - | 2,103 | 0.33 | % | ||||||||||||||||||||||||
Other Loans
|
||||||||||||||||||||||||||||||||||||
Home
Equity
|
2,301 | 107,525 | 14.46 | % | 1,295 | 98,410 | 13.93 | % | 745 | 91,062 | 14.22 | % | ||||||||||||||||||||||||
Consumer
|
628 | 87,162 | 11.72 | % | 691 | 64,673 | 9.16 | % | 1,327 | 63,630 | 9.93 | % | ||||||||||||||||||||||||
Commercial
|
394 | 25,273 | 3.40 | % | 451 | 20,009 | 2.83 | % | 604 | 19,044 | 2.97 | % | ||||||||||||||||||||||||
Total
|
$ | 10,598 | $ | 743,643 | 100.00 | % | $ | 6,482 | $ | 706,400 | 100.00 | % | $ | 4,705 | $ | 640,526 | 100.00 | % |
2005
|
2004
|
|||||||||||||||||||||||
Amount
of Loan Loss Allowance
|
Loan
Amounts by Category
|
Percent
of Loans in Each Category to Total Loans
|
Amount
of Loan Loss Allowance
|
Loan
Amounts by Category
|
Percent
of Loans in Each Category to Total Loans
|
|||||||||||||||||||
Real Estate Loans
|
||||||||||||||||||||||||
One-to
four-family real estate
|
$ | 672 | $ | 324,682 | 55.88 | % | $ | 494 | $ | 303,544 | 58.44 | % | ||||||||||||
Commercial
real estate
|
1,041 | 59,074 | 10.16 | % | 1,404 | 57,178 | 11.01 | % | ||||||||||||||||
Other
(land & multi-family)
|
117 | 20,302 | 3.49 | % | 32 | 20,120 | 3.87 | % | ||||||||||||||||
Real Estate Constrcution
|
||||||||||||||||||||||||
Construction-one-to
four family
|
185 | 24,242 | 4.17 | % | 71 | 14,275 | 2.75 | % | ||||||||||||||||
Construction
-commercial
|
26 | 2,577 | 0.44 | % | 179 | 2,577 | 0.50 | % | ||||||||||||||||
Acquistion
& Development
|
- | - | - | - | - | - | ||||||||||||||||||
Other Loans
|
||||||||||||||||||||||||
Home
equity
|
497 | 79,016 | 13.60 | % | 332 | 60,077 | 11.57 | % | ||||||||||||||||
Consumer
|
1,581 | 62,846 | 10.81 | % | 1,227 | 57,893 | 11.15 | % | ||||||||||||||||
Commercial
|
468 | 8,430 | 1.45 | % | 217 | 3,711 | 0.71 | % | ||||||||||||||||
Total
|
$ | 4,587 | $ | 581,169 | 100.00 | % | $ | 3,956 | $ | 519,375 | 100.00 | % |
At
December 31,
|
||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||
Carrying
Value
|
%
of Total
|
Carrying
Value
|
%
of Total
|
Carrying
Value
|
%
of Total
|
|||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||
Securities available for
sale
:
|
||||||||||||||||||||||||
U.S.
government and agency
|
$ | 14,200 | 9.63 | % | $ | 11,510 | 8.58 | % | $ | 16,280 | 16.41 | % | ||||||||||||
State
and municipal
|
2,513 | 1.70 | % | 8,684 | 6.47 | % | 1,729 | 1.74 | % | |||||||||||||||
Mortgage
backed (1)
|
130,761 | 88.67 | % | 114,022 | 84.95 | % | 81,222 | 81.85 | % | |||||||||||||||
Total
|
$ | 147,474 | 100.00 | % | $ | 134,216 | 100.00 | % | $ | 99,231 | 100.00 | % | ||||||||||||
Other earning assets
:
|
||||||||||||||||||||||||
Interest-earning
deposits with banks
|
$ | 24,033 | 60.15 | % | $ | 24,584 | 63.27 | % | $ | 30,486 | 76.92 | % | ||||||||||||
FHLB
stock
|
9,996 | 25.02 | % | 9,293 | 23.92 | % | 7,948 | 20.05 | % | |||||||||||||||
Other
investments
|
5,927 | 14.83 | % | 4,977 | 12.81 | % | 1,200 | 3.03 | % | |||||||||||||||
Total
|
$ | 39,956 | 100.00 | % | $ | 38,854 | 100.00 | % | $ | 39,634 | 100.00 | % |
(1)
|
Approximately
87% of mortgage backed securities available for sale is comprised of FNMA,
FHLMC and GNMA securities.
|
Greater
Than
|
Greater
|
|||||||||||||||||||||||
Less
Than 1 Year
|
1
to 5
Years
|
5
to 10
Years
|
Than
10
Years
|
Total
Securities
|
||||||||||||||||||||
Amortized
Cost
|
Amortized
Cost
|
Amortized
Cost
|
Amortized
Cost
|
Amortized
Cost
|
Fair
Value
|
|||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||
U.S.
government and agency
|
$ | - | $ | - | $ | 975 | $ | 12,890 | $ | 13,865 | $ | 14,200 | ||||||||||||
State
and Municipal
|
- | - | 434 | 2,231 | 2,665 | 2,513 | ||||||||||||||||||
Mortgage-backed
|
2,624 | - | 5,139 | 123,717 | 133,480 | 130,761 | ||||||||||||||||||
Total
investment securities
|
$ | 2,624 | $ | - | $ | 6,548 | $ | 138,838 | $ | 148,010 | $ | 147,474 | ||||||||||||
Weighted
average yield
|
4.00 | % | - | % | 5.60 | % | 5.23 | % | 5.11 | % | 5.11 | % |
(1)
|
The
above presentation does not include the carrying values, yields and
maturities of mutual funds as these investments do not have contractual
maturities.
|
At
December 31,
|
||||||||||||||||||||||||||||||||||||
2008 |
2007
|
2006
|
||||||||||||||||||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||||||||||||||
Weighted
|
Weighted
|
Weighted
|
||||||||||||||||||||||||||||||||||
average
|
average
|
average
|
||||||||||||||||||||||||||||||||||
Balance
|
Percent
|
rate
|
Balance
|
Percent
|
rate
|
Balance
|
Percent
|
rate
|
||||||||||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||||||||||||||
Deposit type:
|
||||||||||||||||||||||||||||||||||||
Non
interest bearing demand
|
$ | 33,192 | 5.31 | % | - | $ | 35,284 | 6.05 | % | - | $ | 38,301 | 6.68 | % | - | |||||||||||||||||||||
Savings
|
32,465 | 5.20 | % | 0.38 | % | 35,633 | 6.11 | % | 0.37 | % | 41,915 | 7.31 | % | 0.42 | % | |||||||||||||||||||||
Interest
bearing demand
|
67,714 | 10.84 | % | 2.78 | % | 45,893 | 7.88 | % | 2.59 | % | 52,895 | 9.23 | % | 3.00 | % | |||||||||||||||||||||
Money
market demand
|
131,923 | 21.12 | % | 2.95 | % | 149,266 | 25.61 | % | 4.06 | % | 116,314 | 20.31 | % | 4.69 | % | |||||||||||||||||||||
Total
transaction accounts
|
265,294 | 42.47 | % | 2.22 | % | 266,076 | 45.66 | % | 2.77 | % | 249,425 | 43.53 | % | 2.89 | % | |||||||||||||||||||||
Certificates
of deposit
|
359,312 | 57.53 | % | 4.12 | % | 316,654 | 54.34 | % | 4.98 | % | 323,627 | 56.47 | % | 4.83 | % | |||||||||||||||||||||
Total
deposits
|
$ | 624,606 | 100.00 | % | 3.31 | % | $ | 582,730 | 100.00 | % | 3.97 | % | $ | 573,052 | 100.00 | % | 3.99 | % |
Maturity Period
|
At
December
31,
2008
|
|||
(Dollars
in Thousands)
|
||||
Three
months or less
|
$ | 17,524 | ||
Over
three months through six months
|
13,084 | |||
Over
six months through one year
|
53,039 | |||
Over
one year to three years
|
51,419 | |||
Over
three years
|
10,646 | |||
Total
|
$ | 145,712 |
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(Dollars
In Thousands)
|
||||||||||||
Average
balance outstanding
|
$ | 191,055 | $ | 148,184 | $ | 128,260 | ||||||
Maximum
month-end balance
|
$ | 207,592 | $ | 173,000 | $ | 144,000 | ||||||
Balance
at end of period
|
$ | 184,850 | $ | 173,000 | $ | 144,000 | ||||||
Weighted
average interest rate during the period
|
3.97 | % | 4.49 | % | 4.42 | % | ||||||
Weighted
average interest rate at end of period
|
4.05 | % | 4.23 | % | 4.45 | % |
|
·
|
Commercial
Real Estate and Commercial Business Loans.
Repayment is
dependent on income being generated by the rental property or business in
amounts sufficient to cover operating expenses and debt
service.
|
|
·
|
Commercial
and Multi-Family Construction Loans.
Repayment is
dependent upon the completion of the project and income being generated by
the rental property or business in amounts sufficient to cover operating
expenses and debt service.
|
|
·
|
Single
Family Construction Loans.
Repayment is dependent upon
the successful completion of the project and the ability of the contractor
or builder to repay the loan from the sale of the property or obtaining
permanent financing.
|
|
·
|
Multi-Family
Real Estate Loans.
Repayment is dependent on income
being generated by the rental property in amounts sufficient to cover
operating expenses and debt
service.
|
|
·
|
Consumer
Loans.
Consumer loans (such as automobile and
manufactured home loans) are collateralized, if at all, with assets that
may not provide an adequate source of repayment of the loan due to
depreciation, damage or loss.
|
|
·
|
interest
income earned on interest-earning assets, such as loans and securities;
and
|
|
·
|
interest
paid on interest-bearing liabilities, such as deposits and
borrowings.
|
Owned
or
|
Lease
Expiration
|
Net
Book Value
|
||||||||
Location
|
Leased
|
Date
|
December 31, 2008
|
|||||||
(Dollars
in Thousands)
|
||||||||||
HOME
AND EXECUTIVE OFFICE
|
Owned
|
--
|
$ | 1,550 | ||||||
AND
MAIN BRANCH
|
||||||||||
505
Haines Avenue
|
||||||||||
Waycross,
GA 31501
|
||||||||||
FLORIDA
REGIONAL CENTER
|
Leased
|
June
2009
|
61 | |||||||
10151
Deerwood Park Blvd.
|
||||||||||
Building
100, Suite 501
|
||||||||||
Jacksonville,
FL 32256
|
||||||||||
BRANCH
OFFICES:
|
Owned
|
--
|
96 | |||||||
Drive-up
Facility
|
||||||||||
400
Haines Avenue
|
||||||||||
Waycross,
GA 31501
|
||||||||||
2110
Memorial Drive
|
Owned
|
--
|
298 | |||||||
Waycross,
GA 31501
|
||||||||||
1390
South Gaskin Avenue
|
Owned
|
--
|
334 | |||||||
Douglas,
GA 31533
|
||||||||||
213
Hwy 80 West
|
Owned
|
--
|
125 | |||||||
Garden
City, GA 31408
|
||||||||||
10328
Deerwood Park Blvd.
|
Owned
|
--
|
|
822 | ||||||
Jacksonville,
FL 32256
|
||||||||||
8048
Normandy Blvd.
|
Owned
|
--
|
913 | |||||||
Jacksonville,
FL 32221
|
||||||||||
1567
Kingsley Avenue
|
Leased
|
October
2017
|
730 | |||||||
Orange
Park, FL 32073
|
||||||||||
463
West Duval Street
|
Owned
|
--
|
91 | |||||||
Lake
City, FL 32055
|
||||||||||
930
University Avenue, North
|
Owned
|
--
|
644 | |||||||
Jacksonville,
FL 32211
|
||||||||||
1700
South Third Street
|
Owned
|
--
|
472 | |||||||
Jacksonville
Beach, FL 32200
|
||||||||||
1425
Atlantic Blvd.
|
Owned
|
--
|
1,554 | |||||||
Neptune
Beach, FL 32233
|
||||||||||
2766
Race Track Road
|
Owned
|
--
|
2,409 | |||||||
Jacksonville,
FL 32259
|
High
|
Low
|
Dividends
|
||||||||||
Fiscal 2008
|
||||||||||||
January
1-March 31
|
$ | 12.19 | $ | 8.10 | $ | 0.15 | ||||||
April
1- June 30
|
9.93 | 7.30 | 0.12 | |||||||||
July
1- September 30
|
8.47 | 4.69 | 0.11 | |||||||||
October
1- December 31
|
7.89 | 3.40 | 0.09 | |||||||||
Fiscal 2007
|
||||||||||||
January
1-March 31
|
$ | 19.10 | $ | 17.18 | $ | 0.13 | ||||||
April
1- June 30
|
20.06 | 15.55 | 0.14 | |||||||||
July
1- September 30
|
15.80 | 12.42 | 0.15 | |||||||||
October
1- December 31
|
15.38 | 10.61 | 0.15 |
Month
ended
|
Total
Number of Shares Purchased
|
Average
Price Paid per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or
Programs
|
Maximum
Number of Shares that May Yet Be Purchased Under the Plans or
Programs
|
||||||||||||
October
31, 2008
|
12,800 | $ | 6.77 | 12,800 | 207,117 | |||||||||||
November
30, 2008
|
7,300 | 6.17 | 7,300 | 199,817 | ||||||||||||
December
31, 2008
|
20,083 | 4.11 | 20,083 | 179,734 | ||||||||||||
Total
|
40,183 | $ | 5.33 | 40,183 | 179,734 | |||||||||||
October
31, 2007
|
- | - | - | 182,646 | ||||||||||||
November
30, 2007
|
- | - | - | 182,646 | ||||||||||||
December
31, 2007
|
- | - | - | 182,646 | ||||||||||||
Total
|
- | - | - | 182,646 |
Plan
|
Number
of Securities to be
Issued
Upon Exercise of
Outstanding
Options,
Warrants
and Rights
(1)
|
Weighted
Average
Exercise
Price
(2)
of
Outstanding Options,
Warrants
and Rights
|
Number
of Securities
Remaining
Available For
Future
Issuance Under Equity
Compensation
Plans
(3)
|
|||||||||
Equity
compensation plans approved by stockholders
|
559,101 | $ | 13.94 | 141,964 | ||||||||
Equity
compensation plans not approved by stockholders
|
— | — | — | |||||||||
Total
|
559,001 | $ | 13.94 | 141,964 |
(1)
|
Consists
of options to purchase 559,101 shares of common stock under the Atlantic
Coast Federal Corporation 2005 Stock Option
Plan.
|
(2)
|
The
weighted average exercise price reflects the weighted average exercise
price of stock options awarded from the Atlantic Coast Federal Corporation
2005 Stock Option Plan.
|
(3)
|
Consists
of stock options for 141,964 shares of common stock available to be
granted from the Atlantic Coast Federal Corporation 2005 Stock Option
Plan.
|
At
December 31,
|
||||||||||||||||||||
Selected
Consolidated Balance
|
2008
|
2007
|
2006
|
2005
|
2004
|
|||||||||||||||
Sheet
Data:
|
(Dollars
in Thousands)
|
|||||||||||||||||||
Total
assets
|
$ | 996,089 | $ | 931,026 | $ | 843,079 | $ | 744,116 | $ | 637,678 | ||||||||||
Cash
and cash equivalents
|
34,058 | 29,310 | 41,057 | 37,959 | 25,708 | |||||||||||||||
Securities
available-for-sale
|
147,474 | 134,216 | 99,231 | 71,965 | 53,363 | |||||||||||||||
Loans
receivable, net
|
741,879 | 703,513 | 639,517 | 580,441 | 517,711 | |||||||||||||||
FHLB
stock
|
9,996 | 9,293 | 7,948 | 7,074 | 5,511 | |||||||||||||||
Deposits
|
624,606 | 582,730 | 573,052 | 516,321 | 435,682 | |||||||||||||||
Total
borrowings
|
184,850 | 173,000 | 144,000 | 129,000 | 100,314 | |||||||||||||||
Total stockholders’
equity
|
83,960 | 89,806 | 91,087 | 92,917 | 98,700 |
Years
Ended December 31,
|
||||||||||||||||||||
Selected
Consolidated Statement of
|
2008
|
2007
|
2006
|
2005
|
2004
|
|||||||||||||||
Income
Data:
|
(Dollars
in Thousands)
|
|||||||||||||||||||
Total
interest income
|
$ | 55,259 | $ | 55,509 | $ | 46,407 | $ | 37,254 | $ | 31,772 | ||||||||||
Total
interest expense
|
32,009 | 33,123 | 24,747 | 17,139 | 11,643 | |||||||||||||||
Net
interest income
|
23,250 | 22,386 | 21,660 | 20,115 | 20,129 | |||||||||||||||
Provision
for loan losses
|
13,948 | 2,616 | 475 | 2,121 | 2,975 | |||||||||||||||
Net
interest income after provision for loan losses
|
9,302 | 19,770 | 21,185 | 17,994 | 17,154 | |||||||||||||||
Non-interest
income
|
10,134 | 6,926 | 8,005 | 7,937 | 5,207 | |||||||||||||||
Non-interest
expense
|
25,514 | 25,451 | 21,679 | 19,616 | 17,256 | |||||||||||||||
(Loss)
income before income taxes
|
(6,078 | ) | 1,245 | 7,511 | 6,315 | 5,105 | ||||||||||||||
Income
tax (benefit) expense
(1)
|
(3,233 | ) | 130 | 2,382 | 1,290 | 1,815 | ||||||||||||||
Net
(loss) income
|
$ | (2,845 | ) | $ | 1,115 | $ | 5,129 | $ | 5,025 | $ | 3,290 | |||||||||
(Loss)
earnings per share: Basic
|
$ | (0.22 | ) | $ | 0.08 | $ | 0.38 | $ | 0.36 | $ | 0.33 | |||||||||
(Loss)
earnings per share: Diluted
|
$ | (0.22 | ) | $ | 0.08 | $ | 0.38 | $ | 0.36 | $ | 0.33 |
Selected
Consolidated Financial Ratios and Other Data:
|
At
or For the Year Ended December 31,
|
|||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
Performance Ratios
:
|
||||||||||||||||||||
Return
on assets (ratio of net income to average total assets)
|
(0.29 | )% | 0.12 | % | 0.66 | % | 0.71 | % | 0.56 | % | ||||||||||
Return
on equity (ratio of net income to average equity)
|
(3.22 | )% | 1.22 | % | 5.48 | % | 5.07 | % | 6.05 | % | ||||||||||
Dividend
Payout ratio
|
(218.4 | )% | 712.5 | % | 110.53 | % | 72.22 | % | - | % | ||||||||||
Interest
rate spread information:
|
||||||||||||||||||||
Average
during period
|
2.21 | % | 2.23 | % | 2.55 | % | 2.62 | % | 3.29 | % | ||||||||||
Net
interest margin
(1)
|
2.53 | % | 2.67 | % | 2.99 | % | 3.06 | % | 3.64 | % | ||||||||||
Ratio
of operating expense to average total assets
|
2.61 | % | 2.85 | % | 2.78 | % | 2.78 | % | 2.95 | % | ||||||||||
Efficiency
ratio
(2)
|
76.43 | % | 86.83 | % | 73.08 | % | 69.93 | % | 68.11 | % | ||||||||||
Ratio
of average interest-earning assets to average interest-bearing
liabilities
|
109.06 | % | 110.96 | % | 113.01 | % | 116.92 | % | 116.63 | % | ||||||||||
Asset
Quality Ratios:
|
||||||||||||||||||||
Non-performing
assets to total assets at end of period
|
2.90 | % | 1.03 | % | 0.40 | % | 0.39 | % | 1.09 | % | ||||||||||
Allowance
for loan losses to non performing loans
|
41.50 | % | 82.69 | % | 154.21 | % | 175.36 | % | 59.42 | % | ||||||||||
Allowance
for loan losses to total Loans
|
1.43 | % | 0.92 | % | 0.73 | % | 0.78 | % | 0.75 | % | ||||||||||
Net
charge-offs to average outstanding loans
|
1.35 | % | 0.13 | % | 0.06 | % | 0.27 | % | 1.16 | % | ||||||||||
Non-performing
loans to total Loans
|
3.43 | % | 1.11 | % | 0.48 | % | 0.45 | % | 1.28 | % | ||||||||||
Capital
Ratios:
|
||||||||||||||||||||
Equity
to total assets at end of period
|
8.43 | % | 9.65 | % | 10.80 | % | 12.49 | % | 15.48 | % | ||||||||||
Average
equity to average assets
|
9.03 | % | 10.23 | % | 12.00 | % | 14.07 | % | 9.29 | % | ||||||||||
Other
Data:
|
||||||||||||||||||||
Number
of full-service offices
|
12 | 13 | 13 | 12 | 12 | |||||||||||||||
Number
of loans
|
14,126 | 14,101 | 14,679 | 15,151 | 15,840 | |||||||||||||||
Number
of deposit accounts
|
46,148 | 48,334 | 49,896 | 51,738 | 56,962 |
|
(1)
|
Net
interest income divided by average interest earning
assets.
|
|
(2)
|
Efficiency
ratio represents non-interest expense as a percentage of net interest
income plus non-interest income.
|
2008
|
2007
|
|||||||
(In
Millions)
|
||||||||
First
quarter
|
$ | 1.6 | $ | 0.3 | ||||
Second
quarter
|
3.8 | 0.5 | ||||||
Third
quarter
|
3.8 | 0.4 | ||||||
Fourth
quarter
|
4.7 | 1.4 | ||||||
Total
|
$ | 13.9 | $ | 2.6 |
·
|
Sale
of our Fernandina Beach branch in August 2008 due to our assessment that
the branch would not achieve a targeted level of profitability within an
acceptable timeframe.
|
·
|
Completed
construction of a new location to replace an existing facility in Neptune
Beach, Florida, which opened in January
2007;
|
·
|
Relocated
our Orange Park, Florida branch office to a newly leased space about one
mile from the current location, which opened January 2008;
and
|
·
|
Evaluating
options for a new Florida headquarters that contains a branch office. We
cannot estimate the total costs of this project at this time because site
selection and the size of the building have not yet been
determined.
|
Increase(decrease)
|
||||||||||||||||
2008
|
2007
|
Dollars
|
Percentage
|
|||||||||||||
Assets
|
(Dollars
in thousands)
|
|||||||||||||||
Cash
and cash equivalents
|
$ | 34,058 | $ | 29,310 | $ | 4,748 | 16.2 | % | ||||||||
Securities
available for sale
|
147,474 | 134,216 | 13,258 | 9.9 | % | |||||||||||
Loans
|
752,477 | 709,995 | 42,482 | 6.0 | % | |||||||||||
Allowance
for loan losses
|
(10,598 | ) | (6,482 | ) | (4,116 | ) | 63.5 | % | ||||||||
Loans,
net
|
741,879 | 703,513 | 38,366 | 5.5 | % | |||||||||||
Loans
held for sale
|
736 | 640 | 96 | 15.0 | % | |||||||||||
Other
assets
|
71,942 | 63,347 | 8,595 | 13.6 | % | |||||||||||
Total
assets
|
$ | 996,089 | $ | 931,026 | $ | 65,063 | 7.0 | % | ||||||||
Liabilities
and stockholders' equity
|
||||||||||||||||
Deposits
|
||||||||||||||||
Non-interest
bearing
|
$ | 33,192 | $ | 35,284 | $ | (2,092 | ) | -5.9 | % | |||||||
Interest
bearing transaction accounts
|
67,714 | 45,893 | 21,821 | 47.5 | % | |||||||||||
Savings
and money-market
|
164,388 | 184,899 | (20,511 | ) | -11.1 | % | ||||||||||
Time
|
359,312 | 316,654 | 42,658 | 13.5 | % | |||||||||||
Total
deposits
|
624,606 | 582,730 | 41,876 | 7.2 | % | |||||||||||
Federal
Home Loan Bank advances
|
184,850 | 173,000 | 11,850 | 6.8 | % | |||||||||||
Securities
sold under agreement to repurchase
|
92,800 | 78,500 | 14,300 | 18.2 | % | |||||||||||
Accrued
expenses and other liabilities
|
9,873 | 6,990 | 2,883 | 41.2 | % | |||||||||||
Total
liabilities
|
912,129 | 841,220 | 70,909 | 8.4 | % | |||||||||||
Stockholders'
equity
|
83,960 | 89,806 | (5,846 | ) | -6.5 | % | ||||||||||
Total
liabilities and stockholders' equity
|
$ | 996,089 | $ | 931,026 | $ | 65,063 | 7.0 | % |
As
of December 31,
|
Increase
(decrease)
|
|||||||||||||||||||||||
2008
|
%
of total loans
|
2007
|
%
of total loans
|
Dollars
|
Percentage
|
|||||||||||||||||||
Real estate loans:
|
(Dollars
In Thousands)
|
|||||||||||||||||||||||
One-to-four
family
|
$ | 370,783 | 49.9 | % | $ | 377,956 | 53.5 | % | $ | (7,173 | ) | -1.9 | % | |||||||||||
Commercial
|
84,134 | 11.3 | % | 74,748 | 10.6 | % | 9,386 | 12.6 | % | |||||||||||||||
Other
( Land & Multi-family)
|
43,901 | 5.9 | % | 40,698 | 5.8 | % | 3,203 | 7.9 | % | |||||||||||||||
Total
real estate loans
|
498,818 | 67.1 | % | 493,402 | 69.8 | % | 5,416 | 1.1 | % | |||||||||||||||
Real estate construction
loans:
|
||||||||||||||||||||||||
Construction-one-to-four
family
|
8,974 | 1.2 | % | 13,448 | 1.9 | % | (4,474 | ) | -33.3 | % | ||||||||||||||
Construction-commercial
|
10,883 | 1.5 | % | 11,129 | 1.6 | % | (246 | ) | -2.2 | % | ||||||||||||||
Acquisition
& development
|
5,008 | 0.7 | % | 5,329 | 0.8 | % | (321 | ) | -6.0 | % | ||||||||||||||
Total
real estate construction loans
|
24,865 | 3.3 | % | 29,906 | 4.2 | % | (5,041 | ) | -16.9 | % | ||||||||||||||
Other loans:
|
||||||||||||||||||||||||
Home
equity
|
107,525 | 14.5 | % | 98,410 | 13.9 | % | 9,115 | 9.3 | % | |||||||||||||||
Consumer
|
87,162 | 11.7 | % | 64,673 | 9.2 | % | 22,489 | 34.8 | % | |||||||||||||||
Commercial
|
25,273 | 3.4 | % | 20,009 | 2.8 | % | 5,264 | 26.3 | % | |||||||||||||||
Total
other loans
|
219,960 | 29.6 | % | 183,092 | 25.9 | % | 36,868 | 20.1 | % | |||||||||||||||
Total
loans
|
743,643 | 100 | % | 706,400 | 100 | % | 37,243 | 5.3 | % | |||||||||||||||
Allowance
for loan losses
|
(10,598 | ) | (6,482 | ) | (4,116 | ) | 63.5 | % | ||||||||||||||||
Net
deferred loan costs
|
8,662 | 3,256 | 5,406 | 166.0 | % | |||||||||||||||||||
Premiums
on purchased loans
|
172 | 339 | (167 | ) | -49.3 | % | ||||||||||||||||||
Loans,
net
|
$ | 41,879 | $ | 703,513 | $ | 38,366 | 5.5 | % |
Georgia
|
Florida
|
Other States
|
Total
|
|||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
1-4
Family First Mortgages
|
$ | 84,258 | $ | 229,973 | $ | 56,552 | $ | 370,783 | ||||||||
1-4
Family Second Mortgages
|
49,648 | 55,544 | 2,333 | 107,525 | ||||||||||||
1-4
Family Construction Loans
|
1,135 | 7,504 | 336 | 8,974 | ||||||||||||
$ | 135,041 | $ | 293,021 | $ | 59,222 | $ | 487,282 |
2008
|
2007
|
|||||||
(Dollars
in Thousands)
|
||||||||
Beginning
balance
|
$ | 6,482 | $ | 4,705 | ||||
Loans
charged-off
|
(10,989 | ) | (2,953 | ) | ||||
Recoveries
|
1,157 | 2,114 | ||||||
Net
charge-offs
|
(9,832 | ) | (839 | ) | ||||
Provision
for loan losses
|
13,948 | 2,616 | ||||||
Ending
balance
|
$ | 10,598 | $ | 6,482 |
(1)
|
Calculated
net of deferred loan fees and loss reserve. Nonaccrual loans included as
loans carrying a zero yield.
|
(2)
|
Calculated
based on carrying value. Not full tax equivalents, as the numbers would
not change materially from those presented in the
table.
|
(3)
|
Includes
Federal Home Loan Bank stock at cost and term deposits with other
financial institutions.
|
(4)
|
Net
interest income divided by average interest-earning
assets.
|
2008
vs. 2007
|
||||||||||||
Increase/(Decrease)
|
Total
|
|||||||||||
Due
to
|
Increase
|
|||||||||||
Volume
|
Rate
|
(Decrease)
|
||||||||||
INTEREST-EARNING ASSETS
|
(Dollars
in Thousands)
|
|||||||||||
Loans
receivable
|
$ | 4,116 | $ | (4,062 | ) | $ | 54 | |||||
Securites
|
1,120 | (76 | ) | 1,044 | ||||||||
Other
interest-earning assets
|
(115 | ) | (1,233 | ) | (1,348 | ) | ||||||
Total
interest-earning assets
|
5,121 | (5,371 | ) | (250 | ) | |||||||
INTEREST-BEARING
LIABILITIES
|
||||||||||||
Savings
deposits
|
(20 | ) | (6 | ) | (26 | ) | ||||||
Interest
bearing demand accounts
|
233 | (277 | ) | (44 | ) | |||||||
Money
market accounts
|
(951 | ) | (2,025 | ) | (2,976 | ) | ||||||
Time
deposits
|
1,601 | (1,696 | ) | (95 | ) | |||||||
Federal
Home Loan Bank advances
|
1,765 | (842 | ) | 923 | ||||||||
Securities
sold under agreements to repurchase
|
1,305 | (201 | ) | 1,104 | ||||||||
Total
interest-bearing liabilities
|
3,933 | (5,047 | ) | (1,114 | ) | |||||||
Net
interest income
|
$ | 1,188 | $ | (324 | ) | $ | 864 |
Increase(decrease)
|
||||||||||||||||
2008
|
2007
|
Dollars
|
Percentage
|
|||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Service
charges and fees
|
$ | 4,871 | $ | 5,251 | $ | (380 | ) | -7.2 | % | |||||||
Gain
on sale of real estate mortgages
|
||||||||||||||||
held
for sale
|
118 | 34 | 84 | 247.1 | % | |||||||||||
(Loss)
on sale of foreclosed assets
|
(815 | ) | (247 | ) | (568 | ) | 230.0 | % | ||||||||
Gain
(loss) on available for sale securities
|
650 | (46 | ) | 696 | -1513.0 | % | ||||||||||
Commission
income
|
278 | 314 | (36 | ) | -11.5 | % | ||||||||||
Interchange
fees
|
886 | 897 | (11 | ) | -1.2 | % | ||||||||||
Bank
owned life insurance earnings
|
984 | 861 | 123 | 14.3 | % | |||||||||||
Life
insurance proceeds in excess of CSV
|
2,634 | - | 2,634 | 100.0 | % | |||||||||||
Other
|
528 | (138 | ) | 666 | -482.6 | % | ||||||||||
$ | 10,134 | $ | 6,926 | $ | 3,208 | 46.3 | % |
Increase
(decrease)
|
||||||||||||||||
2008
|
2007
|
Dollars
|
Percentage
|
|||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Compensation
& benefits
|
$ | 13,741 | $ | 12,391 | $ | 1,350 | 10.9 | % | ||||||||
Occupancy
and equipment
|
2,652 | 2,383 | 269 | 11.3 | % | |||||||||||
Data
processing
|
1,023 | 1,136 | (113 | ) | -9.9 | % | ||||||||||
Advertising
|
799 | 584 | 215 | 36.8 | % | |||||||||||
Outside
professional services
|
1,889 | 4,066 | (2,177 | ) | -53.5 | % | ||||||||||
Interchange
charges
|
224 | 422 | (198 | ) | -46.9 | % | ||||||||||
Collection
expense and repossessed asset losses
|
508 | 301 | 207 | 68.8 | % | |||||||||||
Telephone
|
600 | 501 | 99 | 19.8 | % | |||||||||||
Other
|
4,078 | 3,667 | 411 | 11.2 | % | |||||||||||
$ | 25,514 | $ | 25,451 | $ | 63 | 0.2 | % |
(1)
|
Calculated
net of deferred loan fees and loss reserve. Nonaccrual loans included as
loans carrying a zero yield.
|
(2)
|
Calculated
based on carrying value. Not full tax equivalents, as the numbers would
not change materially from those presented in the
table.
|
(3)
|
Includes
Federal Home Loan Bank stock at cost and term deposits with other
financial institutions.
|
(4)
|
Net
interest income divided by average interest-earning
assets.
|
2007
vs. 2006
|
||||||||||||
Increase/(Decrease)
|
Total
|
|||||||||||
Due
to
|
Increase
|
|||||||||||
Volume
|
Rate
|
(Decrease)
|
||||||||||
INTEREST-EARNING ASSETS
|
(Dollars
in Thousands)
|
|||||||||||
Loans
receivable
|
$ | 3,412 | $ | 1,890 | $ | 5,302 | ||||||
Securites
|
2,685 | 534 | 3,219 | |||||||||
Other
interest-earning assets
|
549 | 32 | 581 | |||||||||
Total
interest-earning assets
|
6,646 | 2,456 | 9,102 | |||||||||
INTEREST-BEARING
LIABILITIES
|
||||||||||||
Savings
deposits
|
(34 | ) | (4 | ) | (38 | ) | ||||||
Interest
bearing demand accounts
|
(238 | ) | 147 | (91 | ) | |||||||
Money
market accounts
|
3,455 | 459 | 3,914 | |||||||||
Time
deposits
|
(421 | ) | 1,983 | 1,562 | ||||||||
Federal
Home Loan Bank advances
|
893 | 96 | 989 | |||||||||
Securities
sold under agreements to repurchase
|
2,043 | (2 | ) | 2,041 | ||||||||
Total
interest-bearing liabilities
|
5,698 | 2,679 | 8,377 | |||||||||
Net
interest income
|
$ | 948 | $ | (223 | ) | $ | 725 |
Increase(decrease)
|
||||||||||||||||
2007
|
2006
|
Dollars
|
Percentage
|
|||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Service
charges and fees
|
$ | 5,251 | $ | 5,745 | $ | (494 | ) | -8.6 | % | |||||||
Gain
on sale of real estate mortgages
|
||||||||||||||||
held
for sale
|
34 | 67 | (33 | ) | -49.3 | % | ||||||||||
Gain
(loss) on sale of foreclosed assets
|
(247 | ) | (1 | ) | (246 | ) | 24600.0 | % | ||||||||
Net
loss on available for sale securities
|
(46 | ) | (163 | ) | 117 | -71.8 | % | |||||||||
Commission
income
|
314 | 314 | - | 0.0 | % | |||||||||||
Interchange
fees
|
897 | 791 | 106 | 13.4 | % | |||||||||||
Bank
owned life insurance earnings
|
861 | 840 | 21 | 2.5 | % | |||||||||||
Other
|
(138 | ) | 412 | (550 | ) | -133.5 | % | |||||||||
$ | 6,926 | $ | 8,005 | $ | (1,079 | ) | -13.5 | % |
Increase
(decrease)
|
||||||||||||||||
2007
|
2006
|
Dollars
|
Percentage
|
|||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Compensation
& benefits
|
$ | 12,391 | $ | 10,947 | $ | 1,444 | 13.2 | % | ||||||||
Occupancy
and equipment
|
2,383 | 2,228 | 155 | 7.0 | % | |||||||||||
Data
processing
|
1,136 | 1,483 | (347 | ) | -23.4 | % | ||||||||||
Advertising
|
584 | 847 | (263 | ) | -31.1 | % | ||||||||||
Outside
professional services
|
4,066 | 1,994 | 2,072 | 103.9 | % | |||||||||||
Interchange
charges
|
422 | 491 | (69 | ) | -14.1 | % | ||||||||||
Collection
expense and repossessed
|
||||||||||||||||
asset
losses
|
301 | 267 | 34 | 12.7 | % | |||||||||||
Telephone
|
501 | 500 | 1 | 0.2 | % | |||||||||||
Other
|
3,667 | 2,922 | 745 | 25.5 | % | |||||||||||
$ | 25,451 | $ | 21,679 | $ | 3,772 | 17.4 | % |
December
31, 2008
|
||||||||||||||||||||
Less
Than
1
Year
|
1
Through
3
Years
|
4
Through
5
Years
|
More
Than
5
Years
|
Total
|
||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||
FHLB
advances
|
$ | 12,250 | $ | 38,000 | $ | - | $ | 134,600 | $ | 184,850 | ||||||||||
Operating
leases (premises)
|
287 | 301 | 316 | 695 | 1,599 | |||||||||||||||
Borrowings
and operating leases
|
12,537 | 38,301 | 316 | 135,295 | 186,449 | |||||||||||||||
Undisbursed
portion of loans closed
|
- | - | - | - | 8,669 | |||||||||||||||
Unused
lines of credit
|
- | - | - | - | 76,907 | |||||||||||||||
Total
loan commitments
|
- | - | - | - | 85,576 | |||||||||||||||
Loan
purchase commitment
|
- | - | - | - | - | |||||||||||||||
Security
repurchase commitment
|
92,800 | - | - | - | 92,800 | |||||||||||||||
Total
purchase commitments
|
- | - | - | - | - | |||||||||||||||
Total
contractual obligations And loan commitments
|
$ | 105,337 | $ | 38,301 | $ | 316 | $ | 135,295 | $ | 364,825 |
To
Be Well
|
||||||||||||||||||||||||
Capitalized
Under
|
||||||||||||||||||||||||
For
Capital
|
Prompt
Corrective
|
|||||||||||||||||||||||
Actual
|
Adequacy Purposes
|
Action Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars
in Millions)
|
||||||||||||||||||||||||
As of December 31, 2008
|
||||||||||||||||||||||||
Total
capital (to risk-weighted assets)
|
$ | 74.5 | 10.9 | % | $ | 54.6 | 8.0 | % | $ | 68.3 | 10.0 | % | ||||||||||||
Tier
1 (core) capital (to risk-weighted assets)
|
$ | 68.5 | 10.0 | % | $ | 27.3 | 4.0 | % | $ | 41.0 | 6.0 | % | ||||||||||||
Tier
1 (core) capital (to adjusted total assets)
|
$ | 68.5 | 7.0 | % | $ | 39.4 | 4.0 | % | $ | 49.2 | 5.0 | % |
Economic
Value of Equity and Duration of Assets and Liabilities at December 31,
2008
|
||||||||||||||||||||||||
Change
in Interest Rate
|
||||||||||||||||||||||||
Decrease
|
Decrease
|
Decrease
|
Increase
|
Increase
|
Increase
|
|||||||||||||||||||
3%
|
2%
|
1%
|
1%
|
2%
|
3%
|
|||||||||||||||||||
Duration
of assets(1)
|
1.54 | 1.62 | 2.26 | 2.77 | 2.89 | 3.03 | ||||||||||||||||||
Duration
of liabilities(1)
|
2.48 | 2.61 | 3.29 | 3.06 | 2.97 | 2.99 | ||||||||||||||||||
Differential
in duration
|
-0.94 | -0.99 | -1.03 | -0.29 | -0.08 | 0.04 | ||||||||||||||||||
Amount
of change in Economic Value of Equity(2)
|
$ | (28,240,492 | ) | $ | (19,817,889 | ) | $ | (10,290,360 | ) | $ | 2,823,339 | $ | 1,717,281 | $ | (1,071,596 | ) | ||||||||
Percentage
change in Economic Value of Equity(2)
|
-29.89 | % | -20.98 | % | -10.89 | % | 2.99 | % | 1.82 | % | -1.13 | % |
Economic
Value of Equity and Duration of Assets and Liabilities at December 31,
2007
|
||||||||||||||||||||||||
Change
in Interest Rate
|
||||||||||||||||||||||||
Decrease
|
Decrease
|
Decrease
|
Increase
|
Increase
|
Increase
|
|||||||||||||||||||
3%
|
2%
|
1%
|
1%
|
2%
|
3%
|
|||||||||||||||||||
Duration
of assets(1)
|
1.86 | 1.96 | 2.04 | 2.43 | 2.56 | 2.69 | ||||||||||||||||||
Duration
of liabilities(1)
|
3.12 | 3.29 | 3.34 | 2.59 | 1.92 | 1.83 | ||||||||||||||||||
Differential
in duration
|
-1.26 | -1.33 | -1.30 | -0.16 | 0.64 | 0.86 | ||||||||||||||||||
Amount
of change in Economic Value of Equity(2)
|
$ | (35,310,888 | ) | $ | (24,779,571 | ) | $ | (12,073,995 | ) | $ | 1,552,966 | $ | (11,880,348 | ) | $ | (24,079,263 | ) | |||||||
Percentage
change in Economic Value of Equity(2)
|
-36.67 | % | -25.73 | % | -12.54 | % | 1.61 | % | -12.34 | % | -25.01 | % |
(1)
|
Expressed
as number of years before asset/liability reprices to achieve stated rate
of interest rate increase
|
(2)
|
Represents
the cumulative five year pre-tax impact on the Company's equity due to
increased or (decreased) net interest
margin
|
2008
|
2007
|
|||||||
ASSETS
|
||||||||
Cash
and due from financial institutions
|
$ | 10,025 | $ | 4,726 | ||||
Short-term
interest-earning deposits
|
24,033 | 24,584 | ||||||
Total
cash and cash equivalents
|
34,058 | 29,310 | ||||||
Securities
available for sale
|
147,474 | 134,216 | ||||||
Real
estate mortgages held for sale
|
736 | 640 | ||||||
Loans,
net of allowance of $10,598 in 2008 and $6,482 in 2007
|
741,879 | 703,513 | ||||||
Federal
Home Loan Bank stock, at cost
|
9,996 | 9,293 | ||||||
Accrued
interest receivable
|
3,934 | 4,080 | ||||||
Land,
premises and equipment, net
|
16,562 | 16,973 | ||||||
Bank
owned life insurance
|
22,173 | 22,227 | ||||||
Other
real estate owned
|
3,332 | 1,726 | ||||||
Goodwill
|
2,811 | 2,661 | ||||||
Other
assets (includes deferred tax asset of $7,727 in 2008 and $4,912 in
2007)
|
13,134 | 6,387 | ||||||
Total
assets
|
$ | 996,089 | $ | 931,026 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Deposits
|
||||||||
Non-interest-bearing
demand
|
$ | 33,192 | $ | 35,284 | ||||
Interest-bearing
demand
|
67,714 | 45,893 | ||||||
Savings
and money market
|
164,388 | 184,899 | ||||||
Time
|
359,312 | 316,654 | ||||||
Total
deposits
|
624,606 | 582,730 | ||||||
Securities
sold under agreement to repurchase
|
92,800 | 78,500 | ||||||
Federal
Home Loan Bank advances
|
184,850 | 173,000 | ||||||
Accrued
expenses and other liabilities
|
9,873 | 6,990 | ||||||
Total
liabilities
|
912,129 | 841,220 | ||||||
Commitments
and contingencies
|
- | - | ||||||
Preferred
stock: $0.01 par value; 2,000,000 shares authorized none
issued
|
- | - | ||||||
Common
stock: $0.01 par value; 18,000,000 shares authorized, shares issued
14,813,469 at December 31, 2008 and 2007
|
148 | 148 | ||||||
Additional
paid in capital
|
60,061 | 59,082 | ||||||
Unearned
employee stock ownership plan (ESOP) shares of 232,760 at December 31,
2008 and 279,312 at December 31, 2007
|
(2,328 | ) | (2,793 | ) | ||||
Retained
earnings
|
46,201 | 51,182 | ||||||
Accumulated
other comprehensive (loss) income
|
(308 | ) | 104 | |||||
Treasury
stock, at cost, 1,361,633 shares at December 31, 2008
and 1,131,867
at December 31, 2007
|
(19,814 | ) | (17,917 | ) | ||||
Total
stockholders' equity
|
83,960 | 89,806 | ||||||
Total
liabilities and stockholders' equity
|
$ | 996,089 | $ | 931,026 |
2008
|
2007
|
2006
|
||||||||||
Interest
and dividend income
|
||||||||||||
Loans,
including fees
|
$ | 46,385 | $ | 46,331 | $ | 41,029 | ||||||
Securities
and interest-earning deposits in other financial institutions -
taxable
|
8,695 | 8,973 | 5,308 | |||||||||
Securities
and interest-earning deposits in other financial institutions - tax
exempt
|
179 | 205 | 70 | |||||||||
Total
interest and dividend income
|
55,259 | 55,509 | 46,407 | |||||||||
Interest
expense
|
||||||||||||
Deposits
|
20,654 | 23,795 | 18,448 | |||||||||
Federal
Home Loan Bank advances
|
7,575 | 6,653 | 5,665 | |||||||||
Securities
sold under agreements to repurchase
|
3,780 | 2,675 | 634 | |||||||||
Total
interest expense
|
32,009 | 33,123 | 24,747 | |||||||||
Net
interest income
|
23,250 | 22,386 | 21,660 | |||||||||
Provision
for loan losses
|
13,948 | 2,616 | 475 | |||||||||
Net
interest income after provision for loan losses
|
9,302 | 19,770 | 21,185 | |||||||||
Noninterest
income
|
||||||||||||
Service
charges and fees
|
4,871 | 5,251 | 5,745 | |||||||||
Gain
on sale of real estate mortgages held for sale
|
118 | 34 | 67 | |||||||||
Loss
on sale of foreclosed assets
|
(815 | ) | (247 | ) | (1 | ) | ||||||
Gain
(loss) on sale of securities available for sale
|
650 | (46 | ) | (163 | ) | |||||||
Commission
income
|
278 | 314 | 314 | |||||||||
Interchange
fees
|
886 | 897 | 791 | |||||||||
Bank
owned life insurance earnings
|
984 | 861 | 840 | |||||||||
Life
insurance proceeds in excess of CSV
|
2,634 | - | - | |||||||||
Other
|
528 | (138 | ) | 412 | ||||||||
10,134 | 6,926 | 8,005 | ||||||||||
Noninterest
expense
|
||||||||||||
Compensation
and benefits
|
13,741 | 12,391 | 10,947 | |||||||||
Occupancy
and equipment
|
2,652 | 2,383 | 2,228 | |||||||||
Data
processing
|
1,023 | 1,136 | 1,483 | |||||||||
Advertising
|
799 | 584 | 847 | |||||||||
Outside
professional services
|
1,889 | 4,066 | 1,994 | |||||||||
Interchange
charges
|
224 | 422 | 491 | |||||||||
Collection
expense and repossessed asset losses
|
508 | 301 | 267 | |||||||||
Telephone
|
600 | 501 | 500 | |||||||||
Other
|
4,078 | 3,667 | 2,922 | |||||||||
25,514 | 25,451 | 21,679 | ||||||||||
(Loss)
income before income tax (benefit) expense
|
(6,078 | ) | 1,245 | 7,511 | ||||||||
Income
tax (benefit) expense
|
(3,233 | ) | 130 | 2,382 | ||||||||
Net
income (loss)
|
$ | (2,845 | ) | $ | 1,115 | $ | 5,129 | |||||
(Loss)
earnings per common share:
|
||||||||||||
Basic
|
$ | (0.22 | ) | $ | 0.08 | $ | 0.38 | |||||
Diluted
|
$ | (0.22 | ) | $ | 0.08 | $ | 0.38 | |||||
Dividends
declared per common share
|
$ | 0.47 | $ | 0.57 | $ | 0.42 |
ACCUMULATED
|
||||||||||||||||||||||||||||
COMMON
STOCK
|
ADDITIONAL
PAID IN CAPITAL
|
UNEARNED
ESOP SHARES
|
RETAINED
EARNINGS
|
OTHER
COMPREHENSIVE INCOME (LOSS)
|
TREASURY
STOCK
|
TOTAL
STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||
Balance
at January 1, 2006
|
$ | 148 | $ | 56,876 | $ | (3,724 | ) | $ | 49,629 | $ | (408 | ) | $ | (9,603 | ) | $ | 92,918 | |||||||||||
ESOP
shares earned, 46,552 shares
|
- | 290 | 465 | - | - | - | 755 | |||||||||||||||||||||
Stock
options exercised
|
- | (13 | ) | - | - | - | 115 | 102 | ||||||||||||||||||||
Management
restricted stock granted
|
- | (348 | ) | - | - | - | 348 | - | ||||||||||||||||||||
Management
restricted stock expense, 78,256 shares
|
- | 595 | - | - | - | - | 595 | |||||||||||||||||||||
Stock
options expense
|
- | 308 | - | - | - | - | 308 | |||||||||||||||||||||
Dividends
declared ($0.42 per share)
|
- | - | - | (2,048 | ) | - | - | (2,048 | ) | |||||||||||||||||||
Treasury
stock purchased at cost
|
- | - | - | - | - | (6,877 | ) | (6,877 | ) | |||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income
|
- | - | - | 5,129 | - | - | 5,129 | |||||||||||||||||||||
Other
comprehensive income (loss)
|
- | - | - | - | 204 | - | 204 | |||||||||||||||||||||
Total
comprehensive income
|
- | - | - | 5,129 | 204 | - | 5,333 | |||||||||||||||||||||
Balance
at December 31, 2006
|
148 | 57,708 | (3,259 | ) | 52,711 | (204 | ) | (16,017 | ) | 91,087 | ||||||||||||||||||
ESOP
shares earned, 46,552 shares
|
- | 276 | 466 | - | - | - | 742 | |||||||||||||||||||||
Stock
options exercised
|
- | (8 | ) | - | - | - | 65 | 57 | ||||||||||||||||||||
Management
restricted stock granted
|
- | (98 | ) | - | - | - | 207 | 109 | ||||||||||||||||||||
Management
restricted stock expense, 78,256 shares
|
- | 684 | - | - | - | - | 684 | |||||||||||||||||||||
Stock
options expense
|
- | 332 | - | - | - | - | 332 | |||||||||||||||||||||
Directors
deferred compensation
|
- | 49 | - | - | - | (49 | ) | - | ||||||||||||||||||||
Shares
relinquished
|
- | 139 | - | - | - | (155 | ) | (16 | ) | |||||||||||||||||||
Cash
dividends declared ($0.57 per share)
|
- | - | - | (2,644 | ) | - | - | (2,644 | ) | |||||||||||||||||||
Treasury
stock purchased at cost
|
- | - | - | - | - | (1,968 | ) | (1,968 | ) | |||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income
|
- | - | - | 1,115 | - | - | 1,115 | |||||||||||||||||||||
Other
comprehensive income
|
- | - | - | - | 308 | - | 308 | |||||||||||||||||||||
Total
comprehensive income
|
- | - | - | 1,115 | 308 | - | 1,423 | |||||||||||||||||||||
Balance
at December 31, 2007
|
$ | 148 | $ | 59,082 | $ | (2,793 | ) | $ | 51,182 | $ | 104 | $ | (17,917 | ) | $ | 89,806 |
ACCUMULATED
|
||||||||||||||||||||||||||||
COMMON
STOCK
|
ADDITIONAL
PAID IN CAPITAL
|
UNEARNED
ESOP SHARES
|
RETAINED
EARNINGS
|
OTHER
COMPREHENSIVE INCOME (LOSS)
|
TREASURY
STOCK
|
TOTAL
STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||
Balance
at January 1, 2008
|
$ | 148 | $ | 59,082 | $ | (2,793 | ) | $ | 51,182 | $ | 104 | $ | (17,917 | ) | $ | 89,806 | ||||||||||||
ESOP
shares earned, 46,552 shares
|
- | (94 | ) | 465 | - | - | - | 371 | ||||||||||||||||||||
Management
restricted stock expense, 78,256 shares
|
- | 680 | - | - | - | - | 680 | |||||||||||||||||||||
Stock
options expense
|
- | 397 | - | - | - | - | 397 | |||||||||||||||||||||
Directors
deferred compensation
|
- | (4 | ) | - | - | - | 4 | - | ||||||||||||||||||||
Cash
dividends declared ($0.47 per share)
|
- | - | - | (2,136 | ) | - | - | (2,136 | ) | |||||||||||||||||||
Shares
relinquished
|
- | - | - | - | - | (60 | ) | (60 | ) | |||||||||||||||||||
Treasury
stock purchased at cost
|
- | - | - | - | - | (1,841 | ) | (1,841 | ) | |||||||||||||||||||
Comprehensive
income: (loss)
|
||||||||||||||||||||||||||||
Net
income (loss)
|
- | - | - | (2,845 | ) | - | - | (2,845 | ) | |||||||||||||||||||
Other
comprehensive income (loss)
|
- | - | - | - | (412 | ) | - | (412 | ) | |||||||||||||||||||
Total
comprehensive income (loss)
|
- | - | - | (2,845 | ) | (412 | ) | - | (3,257 | ) | ||||||||||||||||||
Balance
at December 31, 2008
|
$ | 148 | $ | 60,061 | $ | (2,328 | ) | $ | 46,201 | $ | (308 | ) | $ | (19,814 | ) | $ | 83,960 |
2008
|
2007
|
2006
|
||||||||||
Cash
flows from operating activities
|
||||||||||||
Net
income (loss)
|
$ | (2,845 | ) | $ | 1,115 | $ | 5,129 | |||||
Adjustments
to reconcile net income to to net cash from operating
activities:
|
||||||||||||
Provision
for loan losses
|
13,948 | 2,616 | 475 | |||||||||
Gain
on sale of real estate mortgages held for sale
|
(118 | ) | (34 | ) | (67 | ) | ||||||
Loans
originated for sale
|
(11,167 | ) | (74,419 | ) | (37,931 | ) | ||||||
Proceeds
from loan sales
|
11,189 | 78,178 | 33,733 | |||||||||
Loss
on sale of other real estate owned
|
815 | 247 | 1 | |||||||||
(Gain)
loss on sale of securities available for sale
|
(650 | ) | 46 | 163 | ||||||||
Proceeds
from VISA IPO redemption
|
79 | - | - | |||||||||
(Gain)
loss on disposal of equipment
|
(605 | ) | 130 | 146 | ||||||||
ESOP
compensation expense
|
371 | 742 | 755 | |||||||||
Share-based
compensation expense
|
1,077 | 1,109 | 903 | |||||||||
Net
depreciation and amortization
|
2,038 | 1,807 | 1,890 | |||||||||
Net
change in accrued interest receivable
|
146 | (581 | ) | (777 | ) | |||||||
Increase
in cash surrender value of bank owned life insurance
|
(894 | ) | (861 | ) | (840 | ) | ||||||
Net
change in other assets
|
(6,473 | ) | (2,225 | ) | (392 | ) | ||||||
Net
change in accrued expenses and other liabilities
|
3,180 | 915 | (89 | ) | ||||||||
Net
cash from operating activities
|
10,001 | 8,785 | 3,099 | |||||||||
Cash
flows from investing activities
|
||||||||||||
Proceeds
from maturities and payments of securites available for
sale
|
25,661 | 18,694 | 17,808 | |||||||||
Proceeds
from the sales of securities available for sale
|
76,245 | 14,619 | 16,657 | |||||||||
Purchase
of securities available for sale
|
(115,309 | ) | (67,871 | ) | (61,642 | ) | ||||||
Loans
purchased
|
- | (51,423 | ) | (35,977 | ) | |||||||
Net
change in loans
|
(57,940 | ) | (17,633 | ) | (24,768 | ) | ||||||
Expenditures
on premises and equipment
|
(1,728 | ) | (932 | ) | (4,478 | ) | ||||||
Proceeds
from sales of premises and equipment
|
1,653 | - | - | |||||||||
Proceeds
from the sale of other real estate owned
|
2,287 | 401 | 612 | |||||||||
Proceeds
from bank owed life insurance, net
|
1,038 | - | - | |||||||||
Purchase
of FHLB stock
|
(703 | ) | (1,345 | ) | (874 | ) | ||||||
Purchase
of Beckman Mortgage
|
(150 | ) | - | - | ||||||||
Net
change in other investments
|
- | 1,200 | 600 | |||||||||
Net
cash from investing activities
|
(68,946 | ) | (104,290 | ) | (92,062 | ) |
2008
|
2007
|
2006
|
||||||||||
Cash
flows from financing activities
|
||||||||||||
Net
increase in deposits
|
$ | 41,876 | $ | 9,678 | $ | 56,731 | ||||||
FHLB
advances
|
133,000 | 95,000 | 40,000 | |||||||||
Proceeds
from sale of securities under agreement to repurchase
|
14,300 | 49,500 | 29,000 | |||||||||
Repayment
of FHLB advances
|
(121,150 | ) | (66,000 | ) | (25,000 | ) | ||||||
Treasury
stock repurchased
|
(1,841 | ) | (1,968 | ) | (6,877 | ) | ||||||
Shares
relinquished
|
(60 | ) | - | - | ||||||||
Proceeds
from exercise of stock options, including tax benefit
|
- | 57 | 102 | |||||||||
Dividends
paid
|
(2,432 | ) | (2,509 | ) | (1,895 | ) | ||||||
Net
cash from financing activities
|
63,693 | 83,758 | 92,061 | |||||||||
Net
change in cash and cash equivalents
|
4,748 | (11,747 | ) | 3,098 | ||||||||
Cash
and equivalents beginning of period
|
29,310 | 41,057 | 37,959 | |||||||||
Cash
and equivalents at end of period
|
$ | 34,058 | $ | 29,310 | $ | 41,057 | ||||||
Supplemental
information:
|
||||||||||||
Interest
paid
|
$ | 32,070 | $ | 32,839 | $ | 24,287 | ||||||
Income
taxes paid
|
3,180 | 3,269 | 3,921 | |||||||||
Supplemental
noncash disclosures:
|
||||||||||||
Loans
transferred to other real estate
|
$ | 4,704 | $ | 2,089 | $ | 589 |
Fair
Value
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
||||||||||
December
31, 2008
|
(Dollars
in Thousands)
|
|||||||||||
U.S.
Government-sponsored enterprises
|
$ | 14,200 | $ | 371 | $ | (35 | ) | |||||
State
and municipal
|
2,513 | 7 | (158 | ) | ||||||||
Mortgage-backed
|
130,761 | 1,063 | (1,781 | ) | ||||||||
$ | 147,474 | $ | 1,441 | $ | (1,974 | ) | ||||||
December
31, 2007
|
||||||||||||
U.S.
Government-sponsored enterprises
|
$ | 11,510 | $ | 87 | $ | (45 | ) | |||||
State
and municipal
|
8,684 | 13 | (175 | ) | ||||||||
Mortgage-backed
|
114,022 | 703 | (429 | ) | ||||||||
$ | 134,216 | $ | 803 | $ | (649 | ) |
2008
|
2007
|
2006
|
||||||||||
(Dollars
in Thousands)
|
||||||||||||
Proceeds
|
$ | 82,584 | $ | 14,619 | $ | 16,657 | ||||||
Gross
gains
|
928 | 40 | 2 | |||||||||
Gross
losses
|
(278 | ) | (86 | ) | (165 | ) |
2008
|
||||
(Dollars
in Thousands)
|
||||
Due
in one year or less
|
$ | - | ||
Due
from one to five years
|
- | |||
Due
from five to ten years
|
1,365 | |||
Due
after ten years
|
15,348 | |||
Mortgage-backed
|
130,761 | |||
Total
|
$ | 147,474 |
(Dollars
in Thousands)
|
||||||||||||||||||||||||
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Description of Securities
|
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
||||||||||||||||||
2008
|
||||||||||||||||||||||||
Government-sponsored
enterprises
|
$ | 940 | $ | (35 | ) | $ | - | $ | - | $ | 940 | $ | (35 | ) | ||||||||||
State
and municipal
|
1,015 | (33 | ) | 823 | (125 | ) | 1,838 | (158 | ) | |||||||||||||||
Mortgage-backed
|
30,149 | (724 | ) | 14,796 | (1,057 | ) | 44,945 | (1,781 | ) | |||||||||||||||
Total
temporarily impaired
|
$ | 32,104 | $ | (792 | ) | $ | 15,619 | $ | (1,182 | ) | $ | 47,723 | $ | (1,974 | ) | |||||||||
2007
|
||||||||||||||||||||||||
Government-sponsored
enterprises
|
$ | 1,968 | $ | (6 | ) | $ | 933 | $ | (39 | ) | $ | 2,901 | $ | (45 | ) | |||||||||
State
and municipal
|
7,575 | (175 | ) | - | - | 7,575 | (175 | ) | ||||||||||||||||
Mortgage-backed
|
26,297 | (193 | ) | 24,464 | (236 | ) | 50,761 | (429 | ) | |||||||||||||||
Total
temporarily impaired
|
$ | 35,840 | $ | (374 | ) | $ | 25,397 | $ | (275 | ) | $ | 61,237 | $ | (649 | ) |
As
of December 31,
|
Increase
(decrease)
|
|||||||||||||||||||||||
2008
|
%
of total loans
|
|
2007
|
%
of total loans
|
Dollars
|
Percentage
|
|
|||||||||||||||||
Real estate loans:
|
(Dollars
In Thousands)
|
|||||||||||||||||||||||
One-to-four
family
|
$ | 370,783 | 49.9 | % | $ | 377,956 | 53.5 | % | $ | (7,173 | ) | -1.9 | % | |||||||||||
Commercial
|
84,134 | 11.3 | % | 74,748 | 10.6 | % | 9,386 | 12.6 | % | |||||||||||||||
Other
( land & multifamily)
|
43,901 | 5.9 | % | 40,698 | 5.8 | % | 3,203 | 7.9 | % | |||||||||||||||
Total
real estate loans
|
498,818 | 67.1 | % | 493,402 | 69.8 | % | 5,416 | 1.1 | % | |||||||||||||||
Real estate construction
loans:
|
||||||||||||||||||||||||
Construction-one-to-four
family
|
8,974 | 1.2 | % | 13,448 | 1.9 | % | (4,474 | ) | -33.3 | % | ||||||||||||||
Construction-commercial
|
10,883 | 1.5 | % | 11,129 | 1.6 | % | (246 | ) | -2.2 | % | ||||||||||||||
Acquisition
& development
|
5,008 | 0.7 | % | 5,329 | 0.8 | % | (321 | ) | -6.0 | % | ||||||||||||||
Total
real estate construction loans
|
24,865 | 3.3 | % | 29,906 | 4.2 | % | (5,041 | ) | -16.9 | % | ||||||||||||||
Other loans:
|
||||||||||||||||||||||||
Home
equity
|
107,525 | 14.5 | % | 98,410 | 13.9 | % | 9,115 | 9.3 | % | |||||||||||||||
Consumer
|
87,162 | 11.7 | % | 64,673 | 9.2 | % | 22,489 | 34.8 | % | |||||||||||||||
Commercial
|
25,273 | 3.4 | % | 20,009 | 2.8 | % | 5,264 | 26.3 | % | |||||||||||||||
Total
other loans
|
219,960 | 29.6 | % | 183,092 | 25.9 | % | 36,868 | 20.1 | % | |||||||||||||||
Total
loans
|
743,643 | 100 | % | 706,400 | 100 | % | 37,243 | 5.3 | % | |||||||||||||||
Allowance
for loan losses
|
(10,598 | ) | (6,482 | ) | (4,116 | ) | 63.5 | % | ||||||||||||||||
Net
deferred loan costs
|
8,662 | 3,256 | 5,406 | 166.0 | % | |||||||||||||||||||
Premiums
on purchased loans
|
172 | 339 | (167 | ) | -49.3 | % | ||||||||||||||||||
Loans,
net
|
$ | 741,879 | $ | 703,513 | $ | 38,366 | 5.5 | % |
Years
Ended December 31,
|
||||||||||||
(Dollars
in Thousands)
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Beginning
balance
|
$ | 6,482 | $ | 4,705 | $ | 4,587 | ||||||
Provision
for loan losses
|
13,948 | 2,616 | 475 | |||||||||
Loans
charged-off
|
(10,989 | ) | (2,953 | ) | (1,215 | ) | ||||||
Recoveries
|
1,157 | 2,114 | 858 | |||||||||
Ending
balance
|
$ | 10,598 | $ | 6,482 | $ | 4,705 |
(Dollars
in Thousands)
|
||||||||
2008
|
2007
|
|||||||
Year-end
loans with no allocated allowance for loan losses
|
$ | - | $ | 1,643 | ||||
Year-end
loans with an allocated allowance for loan losses
|
17,472 | 5,403 | ||||||
Total
|
$ | 17,472 | $ | 7,046 | ||||
Amount
of the allowance for loan losses allocated to impaired
loans
|
$ | 3,525 | $ | 1,371 |
Years
Ended December 31,
(Dollars
in Thousands)
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Average
of impaired loans during the period
|
$ | 10,092 | $ | 3,396 | $ | 3,798 | ||||||
Interest
income recognized during impairment
|
-- | -- | -- | |||||||||
Cash-basis
interest income recognized
|
-- | -- | -- |
(Dollars
in Thousands)
|
||||
Beginning
balance
|
$ | 3,329 | ||
New
loans
|
230 | |||
Effect
of changes in related parties
|
(941 | ) | ||
Repayments
|
(46 | ) | ||
Ending
balance
|
$ | 2,572 |
Fair
Value Measurements at December 31, 2008 Using:
|
||||||||||||||||
December
31, 2008
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs
(Level
3)
|
|||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Assets:
|
||||||||||||||||
Available
for sale securities
|
$ | 147,474 | $ | 8,693 | $ | 138,781 | $ | - | ||||||||
Liabilities:
|
||||||||||||||||
Swap
|
$ | (618 | ) | - | $ | (618 | ) | - |
2008
|
2007
|
|||||||
(Dollars
in Thousands)
|
||||||||
Loans
|
$ | 3,072 | $ | 3,092 | ||||
Securities
available for sale
|
862 | 858 | ||||||
FHLB
stock dividend
|
- | 130 | ||||||
Total
|
$ | 3,934 | $ | 4,080 |
2008
|
2007
|
|||||||
(Dollars
in Thousands)
|
||||||||
Land
|
$ | 7,241 | $ | 7,742 | ||||
Buildings
and leasehold improvements
|
12,312 | 12,270 | ||||||
Furniture,
fixtures, and equipment
|
9,318 | 8,619 | ||||||
Building
and equipment in process
|
368 | 322 | ||||||
29,239 | 28,953 | |||||||
Accumulated
depreciation and amortization
|
(12,677 | ) | (11,980 | ) | ||||
Land,
premises and equipment, net
|
$ | 16,562 | $ | 16,973 |
2008
|
2007
|
|||||||
(Dollars
in Thousands)
|
||||||||
Beginning
of period
|
$ | 2,661 | $ | 2,661 | ||||
Increases
in goodwill
|
150 | - | ||||||
End
of period
|
$ | 2,811 | $ | 2,661 |
2008
|
2007
|
|||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
|||||||||||||
Amortized
intangible assets:
|
||||||||||||||||
Core
deposit intangibles
|
$ | 611 | $ | (466 | ) | $ | 611 | $ | (428 | ) |
(Dollars
in Thousands)
|
||||
2009
|
$ | 35 | ||
2010
|
34 | |||
2011
|
32 | |||
2012
|
31 | |||
2013
|
11 |
(Dollars
in Thousands)
|
||||
2009
|
$ | 241,469 | ||
2010
|
80,425 | |||
2011
|
17,828 | |||
2012
|
8,982 | |||
2013
|
10,593 | |||
2014
|
15 | |||
$ | 359,312 |
2008
|
2007
|
2006
|
||||||||||
(Dollars
in Thousands)
|
||||||||||||
Interest
bearing
|
$ | 1,438 | $ | 1,482 | $ | 1,572 | ||||||
Savings
& money market
|
4,168 | 7,169 | 3,293 | |||||||||
Time
|
15,048 | 15,144 | 13,583 | |||||||||
$ | 20,654 | $ | 23,795 | $ | 18,448 |
2008
|
2007
|
|||||||
(Dollars
in Thousands)
|
||||||||
Maturities
October 2009 through March 2018, fixed at rates from 2.66% to
4.41%, averaging 3.97%
|
$ | 152,600 | $ | 153,000 | ||||
Maturities
April 2009 through January 2014, variable rate at rates from 3.75% to
5.65%, averaging 4.43%
|
32,250 | 20,000 | ||||||
Total
|
$ | 184,850 | $ | 173,000 |
(Dollars
in Thousands)
|
||||
2009
|
$ | 12,250 | ||
2010
|
25,000 | |||
2011
|
13,000 | |||
2012
|
- | |||
2013
|
- | |||
Thereafter
|
134,600 | |||
$ | 184,850 |
2008
|
2007
|
|||||||
(Dollars
in Thousands)
|
||||||||
Average
daily balance during the year
|
$ | 89,793 | $ | 45,077 | ||||
Average
interest rate during the year
|
4.45 | % | 4.42 | % | ||||
Maximum
month-end balance during the years
|
$ | 92,800 | $ | 78,500 | ||||
Weighted
average interest rate at year-end
|
4.30 | % | 4.25 | % |
2008
|
||||
(Dollars
in Thousands)
|
||||
Notional
amounts
|
$ | 50,000 | ||
Weighted
average pay rates (3 month LIBOR, 2.50% floor)
|
2.50 | % | ||
Weighted
average receive rates (3 month LIBOR, 4.37% cap)
|
1.47 | % | ||
Weighted
average maturity
|
2.25 | |||
Fair
value of combined interest rate swaps
|
$ | (618 | ) |
2008
|
2007
|
|||||||
(Dollars
in Thousands)
|
||||||||
Allocated
to eligible employees
|
232,760 | 186,208 | ||||||
Unearned
|
232,760 | 279,312 | ||||||
Total
ESOP shares
|
465,520 | 465,520 | ||||||
Fair
value of unearned shares
|
$ | 908 | $ | 3,318 |
Weighted-Average
|
||||||||
Grant-Date
|
||||||||
Shares
|
Fair
Value
|
|||||||
Non-vested
at January 1, 2008
|
179,865 | $ | 14.23 | |||||
Granted
|
- | - | ||||||
Vested
|
(65,477 | ) | 12.79 | |||||
Forfeited
|
(2,994 | ) | 12.30 | |||||
Non-vested
at December 31, 2008
|
111,394 | $ | 15.46 |
2008
|
||||
Risk-free
interest rate
|
3.28 | % | ||
Expected
term of stock options (years)
|
6.0 | |||
Expected
stock price volatility
|
22.26 | % | ||
Expected
dividends
|
3.73 | % |
Weighted-
|
||||||||||||||||
Weighted-
|
Average
|
Aggregate
|
||||||||||||||
Average
|
Remaining
|
Intrinsic
|
||||||||||||||
Exercise
|
Contractual
|
Value
|
||||||||||||||
Options
|
Shares
|
Price
|
Term
|
(in
thousands)
|
||||||||||||
Outstanding
at beginnng of year
|
560,451 | $ | 13.97 | - | - | |||||||||||
Granted
|
27,000 | 8.40 | - | - | ||||||||||||
Exercised
|
- | - | - | - | ||||||||||||
Forfeited
|
(28,350 | ) | 13.73 | - | - | |||||||||||
Outstanding
at December 31, 2008
|
559,101 | $ | 13.72 | 7.0 | $ | - | ||||||||||
Vested
or expected to vest
|
533,143 | $ | 13.89 | 7.0 | $ | - | ||||||||||
Exercisable
at year end
|
346,885 | $ | 13.92 | 6.7 | $ | - |
2008
|
2007
|
2006
|
||||||||||
Intrinsic
value of options exercised
|
$ | - | $ | 18,000 | $ | 29,000 | ||||||
Cash
received from option exercises
|
- | 57,000 | 102,000 | |||||||||
Tax
benefit realized from option exercises
|
- | - | - | |||||||||
Weighted
average fair value of options granted
|
$ | 1.35 | $ | 1.82 | $ | 3.45 |
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(Dollars
in Thousands)
|
||||||||||||
Current
- Federal
|
$ | - | $ | 3,025 | $ | 3,067 | ||||||
Current
- State
|
15 | $ | 15 | $ | 15 | |||||||
Deferred
- Federal
|
(3,248 | ) | (2,910 | ) | (646 | ) | ||||||
Deferred
- State
|
(484 | ) | (324 | ) | (54 | ) | ||||||
Change
in valuation allowance
|
484 | 324 | - | |||||||||
Total
|
$ | (3,233 | ) | $ | 130 | $ | 2,382 |
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Income
taxes at Current
|
(Dollars
in Thousands)
|
|||||||||||
Statutory
rate of 34%
|
$ | (2,066 | ) | $ | 423 | $ | 2,554 | |||||
Increase(decrease)
from
|
||||||||||||
State
income tax, net of Federal tax effect
|
(492 | ) | (413 | ) | (24 | ) | ||||||
Tax-exempt
income
|
(49 | ) | (56 | ) | (19 | ) | ||||||
Increase
in cash surrender value of BOLI
|
(310 | ) | (293 | ) | (286 | ) | ||||||
Proceeds
from life insurance in excess of BOLI
|
(920 | ) | - | - | ||||||||
ESOP
share release
|
- | 94 | 87 | |||||||||
Stock
option expense
|
103 | 81 | 73 | |||||||||
Change
in valuation allowance
|
484 | 324 | - | |||||||||
Other,
net
|
17 | (30 | ) | (3 | ) | |||||||
Income
tax (benefit) expense
|
$ | (3,233 | ) | $ | 130 | $ | 2,382 | |||||
Effective
tax rate
|
53.2 | % | 10.4 | % | 31.7 | % |
December
31,
|
||||||||
(Dollars
in Thousands)
|
||||||||
2008
|
2007
|
|||||||
Deferred
tax assets:
|
||||||||
Allowance
for loan losses
|
$ | 4,027 | $ | 2,463 | ||||
Depreciation
|
208 | 299 | ||||||
Deferred
compensation arrangements
|
1,292 | 1,233 | ||||||
Other
real estate
|
154 | 290 | ||||||
Net
operating loss carryforward
|
3,131 | 1,640 | ||||||
Net
unrealized losses on AFS securities
|
224 | - | ||||||
Interest
income on non-accrual loans
|
32 | 33 | ||||||
Accrued
expenses
|
378 | 162 | ||||||
Deferred
loan fees
|
182 | 107 | ||||||
$ | 9,628 | $ | 6,227 | |||||
Deferred
tax liability:
|
||||||||
Net
unrealized gain on AFS securities
|
- | (51 | ) | |||||
Deferred
loan costs
|
(446 | ) | (500 | ) | ||||
Prepaid
expenses
|
(239 | ) | (171 | ) | ||||
Core
deposit intangibles
|
(357 | ) | (269 | ) | ||||
Other
|
(51 | ) | - | |||||
(1,093 | ) | (991 | ) | |||||
Valuation
allowance
|
(808 | ) | (324 | ) | ||||
Net
deferred tax asset
|
$ | 7,727 | $ | 4,912 |
To
Be Well
|
||||||||||||||||||||||||
Capitalized
Under
|
||||||||||||||||||||||||
For
Capital
|
Prompt
Corrective
|
|||||||||||||||||||||||
Actual
|
Adequacy Purposes
|
Action
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As of December 31, 2008
|
||||||||||||||||||||||||
Total
capital (to risk weighted assets)
|
$ | 74.5 | 10.9 | % | $ | 54.6 | 8.0 | % | $ | 68.3 | 10.0 | % | ||||||||||||
Tier
1 (core) capital (to risk weighted
assets)
|
68.5 | 10.0 | % | 27.3 | 4.0 | % | 41.0 | 6.0 | % | |||||||||||||||
Tier
1 (core) capital (to adjusted total assets)
|
68.5 | 7.0 | % | 39.4 | 4.0 | % | 49.2 | 5.0 | % | |||||||||||||||
As of December 31, 2007
|
||||||||||||||||||||||||
Total
capital (to risk weighted assets)
|
$ | 75.5 | 12.1 | % | $ | 50.1 | 8.0 | % | $ | 62.6 | 10.0 | % | ||||||||||||
Tier
1 (core) capital (to risk weighted assets)
|
70.4 | 11.2 | % | 25.1 | 4.0 | % | 37.6 | 6.0 | % | |||||||||||||||
Tier
1 (core) capital (to adjusted total assets)
|
70.4 | 7.7 | % | 36.8 | 4.0 | % | 46.0 | 5.0 | % |
2008
|
2007
|
|||||||
(Dollars
in Thousands)
|
||||||||
GAAP
equity
|
$ | 77,109 | $ | 73,213 | ||||
Intangible
assets
|
(2,955 | ) | (2,844 | ) | ||||
Unrealized
(gain) loss on securities available for sale
|
- | (117 | ) | |||||
Minority
interest in includable consolidated subsidiaries including
REIT
|
125 | 125 | ||||||
Tier
1 Capital
|
74,279 | 70,377 | ||||||
General
allowance for loan and lease losses
|
6,046 | 5,111 | ||||||
Total
capital
|
$ | 80,325 | $ | 75,488 |
2008
|
2007
|
|||||||
(Dollars
in Thousands)
|
||||||||
Undisbursed
portion of loans closed
|
$ | 8,669 | $ | 14,664 | ||||
Unused
lines of credit and commitments to fund loans
|
76,907 | 88,037 |
2008
|
2007
|
2006
|
||||||||||
Basic
|
(Dollars
in Thousands, Except Share Information)
|
|||||||||||
Net
(loss) income
|
$ | (2,845 | ) | $ | 1,115 | $ | 5,129 | |||||
Weighted
average common shares outstanding
|
13,557,869 | 13,693,651 | 14,036,595 | |||||||||
Less:
Average unallocated ESOP shares
|
(278,930 | ) | (325,736 | ) | (372,288 | ) | ||||||
Average
unvested restricted stock awards
|
(144,164 | ) | (202,571 | ) | (237,283 | ) | ||||||
Average
shares
|
13,134,775 | 13,165,344 | 13,427,024 | |||||||||
Basic
(loss) earnings per common share
|
$ | (0.22 | ) | $ | 0.08 | $ | 0.38 | |||||
Diluted
|
||||||||||||
Net
(loss) income
|
$ | (2,845 | ) | $ | 1,115 | $ | 5,129 | |||||
Weighted
average common shares outstanding per common share
|
13,134,775 | 13,165,344 | 13,427,024 | |||||||||
Add:Dilutive
effects of assumed exercise of stock options
|
- | 51,445 | 25,695 | |||||||||
Dilutive
effects of full vesting of stock awards
|
- | 128,719 | 105,107 | |||||||||
Average
shares and dilutive potential common shares
|
13,134,775 | 13,345,508 | 13,557,826 | |||||||||
Diluted
(loss) earnings per common share
|
$ | (0.22 | ) | $ | 0.08 | $ | 0.38 |
2008
|
2007
|
2006
|
||||||||||
(Dollars
in Thousands)
|
||||||||||||
Unrealized
holding (losses) and gains on securities available for
sale
|
$ | (37 | ) | $ | 440 | $ | 167 | |||||
Less
reclassification adjustments for (gains)
|
||||||||||||
losses
recognized in income
|
(650 | ) | 46 | 163 | ||||||||
Net
unrealized (losses) and gains
|
(687 | ) | 486 | 330 | ||||||||
Tax
effect
|
275 | (178 | ) | (126 | ) | |||||||
Net-of-tax
amount
|
(412 | ) | 308 | 204 | ||||||||
Other
comprehensive income
|
$ | (412 | ) | $ | 308 | $ | 204 |
As
of December 31,
|
||||||||||||||||
2008
|
2007
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Amount
|
Fair
Value
|
Amount
|
Fair
Value
|
|||||||||||||
FINANCIAL
ASSETS
|
(Dollars
in Thousands)
|
|||||||||||||||
Cash
and cash equivalents
|
$ | 34,058 | $ | 34,058 | $ | 29,310 | $ | 29,310 | ||||||||
Real
estate mortgages held for sale
|
736 | 736 | 640 | 640 | ||||||||||||
Loans,
net
|
731,411 | 733,142 | 696,467 | 683,562 | ||||||||||||
Federal
Home Loan Bank stock
|
9,996 | n/a | 9,293 | n/a | ||||||||||||
Accrued
interest receivable
|
3,934 | 3,934 | 4,080 | 4,080 | ||||||||||||
FINANCIAL
LIABILITIES
|
||||||||||||||||
Deposits
|
624,606 | 627,049 | 582,730 | 582,791 | ||||||||||||
Securities
sold under agreements to repurchase
|
92,800 | 106,327 | 78,500 | 76,533 | ||||||||||||
Federal
Home Loan Bank advances
|
184,850 | 216,869 | 173,000 | 144,906 | ||||||||||||
Accrued
interest payable
|
1,441 | 1,441 | 1,342 | 1,342 |
2008
|
2007
|
|||||||
(Dollars
in Thousands)
|
||||||||
Cash
and cash equivalents at subsidiary
|
$ | 303 | $ | 706 | ||||
Securities
available for sale
|
4,321 | 6,660 | ||||||
Investment
in subsidiary
|
77,108 | 73,213 | ||||||
Note
receivable from ESOP
|
2,614 | 3,032 | ||||||
Other
assets
|
1,960 | 7,865 | ||||||
Total
assets
|
$ | 86,306 | $ | 91,476 | ||||
Borrowed
funds
|
$ | 1,535 | $ | 718 | ||||
Other
accrued expenses
|
811 | 952 | ||||||
Total
stockholders'equity
|
83,960 | 89,806 | ||||||
Total
liabilities and stockholders' equity
|
$ | 86,306 | $ | 91,476 |
2008
|
2007
|
2006
|
||||||||||
(Dollars
in Thousands)
|
||||||||||||
Net
interest income
|
$ | 543 | $ | 530 | $ | 671 | ||||||
Gain
(loss) on sale of securities
|
63 | - | (43 | ) | ||||||||
Other
|
(14 | ) | 136 | 23 | ||||||||
Equity
in net (loss) income of subsidiary
|
(2,780 | ) | 2,345 | 5,239 | ||||||||
Total
income (loss)
|
(2,188 | ) | 3,011 | 5,890 | ||||||||
Total
expense
|
657 | 1,896 | 761 | |||||||||
Net
income (loss)
|
$ | (2,845 | ) | $ | 1,115 | $ | 5,129 |
2008
|
2007
|
2006
|
||||||||||
(Dollars
in Thousands)
|
||||||||||||
Cash
flow from operating activities
|
||||||||||||
Net
income (loss)
|
$ | (2,845 | ) | $ | 1,115 | $ | 5,129 | |||||
Adjustments:
|
||||||||||||
Net
depreciation and amortization
|
10 | - | - | |||||||||
(Gain)
loss on sale of securities
|
(10 | ) | - | 43 | ||||||||
Net
change in other assets
|
1,292 | (1,866 | ) | (664 | ) | |||||||
Net
change in other liabilities
|
156 | (339 | ) | 73 | ||||||||
Share-based
compensation expense
|
1,077 | 1,125 | 903 | |||||||||
Dividends
received from subsidiary
|
- | 10,216 | 2,044 | |||||||||
Equity
in undistributed (earnings) loss of subsidiary
|
2,780 | (2,345 | ) | (5,239 | ) | |||||||
Net
cash from operating activities
|
2,460 | 7,906 | 2,289 | |||||||||
Cash
flow from investing activities
|
||||||||||||
Purchase
of securities available for sale
|
(8,537 | ) | - | (2,449 | ) | |||||||
Proceeds
from maturities and repayments of securities available for
sale
|
6,268 | 983 | 2,279 | |||||||||
Proceeds
from the sale of securities available for sale
|
4,134 | - | 3,000 | |||||||||
Purchase
of bank owned life insurance
|
2,161 | (3,100 | ) | (1,695 | ) | |||||||
Life
insurance proceeds in excess of CSV
|
2,634 | - | - | |||||||||
Contribution
to Bank subsidiary
|
(6,423 | ) | - | - | ||||||||
Payments
received on ESOP loan
|
418 | 376 | 362 | |||||||||
Expenditures
on premises and equipment
|
(3 | ) | - | - | ||||||||
Net
change in other interest bearing deposits at subsidiary
|
- | 1,200 | 600 | |||||||||
Net
cash from investing activities
|
652 | (541 | ) | 2,097 | ||||||||
Cash
flow from financing activities
|
||||||||||||
Advances
from Atlantic Coast Bank
|
818 | 428 | 3,618 | |||||||||
Proceeds
from exercise of stock options
|
- | 57 | 102 | |||||||||
Shares
relinquished
|
(60 | ) | (16 | ) | - | |||||||
Treasury
stock purchased
|
(1,841 | ) | (1,968 | ) | (6,877 | ) | ||||||
Repayments
to Atlantic Coast Bank
|
- | (2,978 | ) | (350 | ) | |||||||
Dividends
paid
|
(2,432 | ) | (2,509 | ) | (1,895 | ) | ||||||
Net
cash from financing activities
|
(3,515 | ) | (6,986 | ) | (5,402 | ) | ||||||
Net
change in cash and cash equivalents
|
(403 | ) | 379 | (1,016 | ) | |||||||
Cash
and cash equivalents at beginning of period
|
706 | 327 | 1,343 | |||||||||
Cash
and cash equivalents at end of period
|
$ | 303 | $ | 706 | $ | 327 |
(Dollars
in Thousands)
|
||||||||||||||||||||
Interest
|
Net
Interest
|
Net
|
Earnings (Loss) per Common
Share
|
|||||||||||||||||
Income
|
Income
|
Income (Loss)
|
Basic
|
Diluted
|
||||||||||||||||
2008
|
||||||||||||||||||||
First
quarter
|
$ | 14,027 | $ | 5,818 | $ | 23 | $ | 0.00 | $ | 0.00 | ||||||||||
Second
quarter
|
13,776 | 6,111 | 711 | 0.06 | 0.06 | |||||||||||||||
Third
quarter
|
13,840 | 5,930 | (329 | ) | (0.03 | ) | (0.03 | ) | ||||||||||||
Fourth
quarter
|
13,616 | 5,391 | (3,250 | ) | (0.25 | ) | (0.25 | ) | ||||||||||||
2007
|
||||||||||||||||||||
First
quarter
|
$ | 13,256 | $ | 5,353 | $ | 785 | $ | .06 | $ | .06 | ||||||||||
Second
quarter
|
13,766 | 5,538 | 635 | .05 | .05 | |||||||||||||||
Third
quarter
|
14,263 | 5,730 | 789 | .06 | .06 | |||||||||||||||
Fourth
quarter
|
14,224 | 5,765 | (1,094 | ) | (.09 | ) | (.09 | ) | ||||||||||||
2006
|
||||||||||||||||||||
First
quarter
|
$ | 10,515 | $ | 5,237 | $ | 1,291 | $ | .10 | $ | .10 | ||||||||||
Second
quarter
|
11,156 | 5,422 | 1,410 | .10 | .10 | |||||||||||||||
Third
quarter
|
12,006 | 5,558 | 1,518 | .11 | .11 | |||||||||||||||
Fourth
quarter
|
12,730 | 5,443 | 910 | .07 | .07 |
3.1
|
Charter
of Atlantic Coast Federal Corporation
1
|
|
3.2
|
Bylaws
of Atlantic Coast Federal Corporation
1
|
|
4
|
Form
of Common Stock Certificate of Atlantic Coast Federal Corporation
1
|
|
10.1
|
Employee
Stock Ownership Plan
1
|
|
10.2
|
Employment
Agreement with Robert J. Larison, Jr.
2
|
|
Second
Amended and Restated Supplemental Executive Retirement Agreement with
Robert J. Larison, Jr.
|
||
Amended
and Restated Supplemental Executive Retirement Plan
|
||
Amended
and Restated 2005 Director Retirement Plan
|
||
Amended
and Restated 2005 Director Fee Deferred Plan
|
||
10.7
|
Atlantic
Coast Federal Corporation 2005 Stock Option Plan
3
|
|
10.8
|
Atlantic
Coast Federal Corporation 2005 Recognition and Retention Plan
3
|
|
10.9
|
Split
Dollar Life Insurance Agreement with Robert J. Larison, Jr.
4
|
|
10.10
|
Split
Dollar Life Insurance Agreement with Carl W. Insel
4
|
|
10.11
|
2008
Executive Deferred Compensation Plan
6
|
|
Supplemental
Executive Retirement Agreement with Carl W. Insel
|
||
10.13
|
Supplemental
Executive Retirement Agreement with Thomas B. Wagers, Sr.
5
|
|
Director
Emeritus Plan
|
||
Amended
and Restated 2007 Director Deferred Compensation Plan for
Equity
|
||
Subsidiaries
of Registrant
|
||
Consent
of Crowe Horwath LLP
|
||
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
||
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
||
Certification
of Chief Executive Officer and Chief Financial Officer pursuant to Section
906 of the Sarbanes-Oxley Act of
2002
|
1
|
Incorporated
by reference to the registrant’s Registration Statement on Form S-1, and
any amendments thereto, originally filed with the Securities and Exchange
Commission on March 25, 2004 (Registration No.
333-113923).
|
|
|
||
2
|
Incorporated
by reference to the registrant’s Form 8-K Current Report, originally filed
with the Securities and Exchange Commission on May 22,
2008.
|
|
|
||
3
|
Incorporated
by reference to the registrant’s Registration Statement on Form S-8 filed
with the Securities and Exchange Commission on July 25, 2005 (Registration
No. 333-126861).
|
|
|
||
4
|
Incorporated
by reference to the registrant’s Form 8-K Current Report, originally filed
with the Securities and Exchange Commission on November 9,
2006.
|
|
|
||
5
|
Incorporated
by reference to the registrant’s Form 8-K/A Current Report, originally
filed with the Securities and Exchange Commission on August 5,
2008.
|
|
|
||
6
|
Incorporated
by reference to the registrant’s Form 8-K Current Report, originally filed
with the Securities and Exchange Commission on February 12,
2006.
|
ATLANTIC
COAST FEDERAL CORPORATION
|
||
Date: March
30, 2009
|
By:
|
/s/ Robert J. Larison,
Jr.
|
Robert
J. Larison, Jr.
|
||
President,
Chief Executive Officer and
Director
|
By:
/s/
Robert J. Larison, Jr.
|
By:
/s/ Dawna R.
Miller
|
Robert
J. Larison, Jr.
President,
Chief Executive Officer and Director
|
Dawna
R. Miller
Senior
Vice President and Chief Financial Officer
|
Date:
March 30, 2009
|
Date:
March 30, 2009
|
By
:
/s/
Thomas F. Beeckler
|
By:
/s/ Frederick D.
Franklin, Jr.
|
Thomas
F. Beeckler
Director
|
Frederick
D. Franklin, Jr.
Director
|
Date:
March 30, 2009
|
Date:
March 30, 2009
|
By:
/s/ Charles E.
Martin, Jr.
|
By:
/s/ W. Eric
Palmer
|
Charles
E. Martin, Jr.
Director
|
W.
Eric Palmer
Director
|
Date:
March 30, 2009
|
Date:
March 30, 2009
|
By:
/s/ Robert J.
Smith
|
By:
/s/ Forrest W.
Sweat, Jr.
|
Robert
J. Smith
Director
|
Forrest
W. Sweat, Jr.
Director
|
Date:
March 30, 2009
|
Date:
March 30, 2009
|
By:
/s/ H. Dennis
Woods
|
|
H.
Dennis Woods
Director
|
|
Date:
March 30, 2009
|
1.
|
Definitions
.
In this
Agreement, the following words and phrases shall have the following
meanings:
|
|
(a)
|
Accrued
Benefit Percentage
shall mean, except as otherwise provided in this
Agreement, 2.5% for each full calendar quarter of the Executive’s
employment with the Bank since January 1, 2002, calculated through the
last day of the calendar quarter in which the Executive (i) experiences a
Separation from Service or (ii) attains the Normal Retirement Date,
whichever shall first occur;
provided
,
however
, that
in no event shall the Accrued Benefit Percentage exceed
60%.
|
|
(b)
|
Administrator
shall mean the person or committee appointed by the Board of Directors of
the Bank to Administer this Agreement. If a committee is
appointed by the Board of Directors, a majority of those persons shall
constitute a quorum and the act of the majority of such of persons either
at a meeting or by written consent, shall be the act of the
Administrator. The administrator may adopt such rules and
procedures, not inconsistent with this Agreement, as it deems necessary or
appropriate in order to administer this
Agreement.
|
|
(c)
|
Average
Compensation
shall mean the amount determined by dividing by three
(3) the higher of (i) the amount show in Box 1 of Form W-2; or (ii) the
amount that would have been shown in Box 1 of Form W-2, had the Executive
been receiving his “base salary” as set forth in his employment agreement
rather than an agreed upon lower base salary, but in either
case (excluding taxable income attributable to any restricted
stock awards, stock options, stock appreciation rights or any other awards
made under any equity plan maintained by the Bank or its affiliates)
earned by the Executive from the Bank and its affiliates and subsidiaries
(or any successors thereto by merger or purchase) during the three
calendar years in the ten year period prior to his Separation from Service
that results in the largest
total.
|
|
(d)
|
Benefit
Determination Date
shall mean the first business day of the
calendar month following the earliest of (i) the Executive’s Normal
Retirement Date; (ii) the Executive’s Separation from Service; (iii) the
Executive’s death; (iv) the Executive’s Disability; or (v) a Change in
Control.
|
|
(e)
|
Cause
shall mean a Separation from Service that arises from the Executive’s
gross negligence, willful misconduct, breach of fiduciary duty involving
personal profit, intentional failure to perform stated duties, and willful
violation of any law, rule, or regulation (other than traffic violations
or similar offenses) or final cease-and-desist
order.
|
|
(f)
|
Change
in Control
shall mean the
following:
|
|
(2) A
change in ownership occurs on the date that any one person, or more than
one person acting as a group (as defined in Treasury Regulations section
1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the Bank or Company
that, together with stock held by such person or group, constitutes more
than 50% of the total fair market value or total voting power of the stock
of such corporation.
|
|
(3) A
change in the effective control of the Bank or Company occurs on the date
that either (i) any one person, or more than one person acting as a group
(as defined in Treasury Regulations section 1.409A-3(i)(5)(vi)(B))
acquires (or has acquired during the 12-month period ending on the date of
the most recent acquisition by such person or persons) ownership of stock
of the Bank or Company possessing 30% or more of the total voting power of
the stock of the Bank or Company, or (ii) a majority of the members of the
Bank’s or Company’s board of directors is replaced during any 12-month
period by directors whose appointment or election is not endorsed by a
majority of the members of the Bank’s or Company’s board of directors
prior to the date of the appointment or election, provided that this
sub-section “(ii)” is inapplicable where a majority shareholder of the
Bank or Company is another
corporation.
|
|
(4) A
change in a substantial portion of the Bank’s or Company’s assets occurs
on the date that any one person or more than one person acting as a group
(as defined in Treasury Regulations section 1.409A-3(i)(5)(vii)(C))
acquires (or has acquired during the 12-month period ending on the date of
the most recent acquisition by such person or persons) assets from the
Bank or Company that have a total gross fair market value equal to or more
than 40% of the total gross fair market value of (i) all of the assets of
the Bank or Company, or (ii) the value of the assets being disposed of,
either of which is determined without regard to any liabilities associated
with such assets. For all purposes hereunder, the definition of
Change in Control shall be construed to be consistent with the
requirements of Treasury Regulations section 1.409A-3(g)(5), except to the
extent that such regulations are superseded by subsequent
guidance.
|
|
(g)
|
Disabled
or Disability
shall mean the
Executive:
|
|
(1) is
unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected
to result in death, or last for a continuous period of not less than 12
months;
|
|
(2) by
reason of any medically determinable physical or mental impairment which
can be expected to result in death, or last for a continuous period of not
less than 12 months, is receiving income replacement benefits for a period
of not less than three months under an accident and health plan covering
employees of the Bank; or
|
|
(3) is
determined to be totally disabled by the Social Security
Administration.
|
|
(h)
|
Involuntary
Termination
shall mean Separation from Service, other than for
Cause, without the Executive’s express written consent and voluntary
resignation due to a material diminution of or interference with the
Executive’s duties, responsibilities and benefits as President and Chief
Executive Officer of the Bank, including (without limitation) any of the
following actions unless consented to in writing by the Executive: (i) a
change in the principal workplace of the Executive to a location outside
of a 30 mile radius from the Bank’s main office as of the date hereof;
(ii) a material demotion of the Executive; (iii) a material reduction in
the number or seniority of other personnel reporting to the Executive or a
material reduction in the frequency with which, or on the nature of the
matters with respect to which, such personnel are to report to the
Executive, other than as part of an institution-wide reduction in staff;
(iv) a material adverse change in the Executive’s salary, perquisites,
benefits, contingent benefits or vacation, other than as part of an
overall program applied uniformly and with equitable effect to all members
of the senior management of the Bank; and (v) a material permanent
increase in the required hours of work or the workload of the Executive;
provided that the Executive has notified the Bank of the existence of such
a condition no later than 90 days after the initial existence of such
condition and the Bank has at least 30 days to cure such
condition. The term “Involuntary Termination” does not include
termination for Cause or termination of employment due to retirement,
death, Disability or suspension or temporary or permanent prohibition from
participation in the conduct of the Bank’s affairs under Section 8 of the
Federal Deposit Insurance Act.
|
|
(i)
|
Monthly
Benefit
shall mean the
Average Compensation multiplied by the Accrued Benefit Percentage and then
divided by twelve (12), calculated at the Benefit Determination
Date.
|
|
(j)
|
Normal
Retirement Date
shall mean the date the Executive attains age 55
(i.e., February 9, 2012).
|
|
(k)
|
Separation
from Service
shall mean the date of cessation of the employment
relationship (other than an approved leave of absence) between the
Executive and the Bank and its affiliates and subsidiaries (including any
successor in interest, if applicable), and shall be construed to comply
with Code Section 409A and Treasury Regulations Section
1.409A-1(h).
|
|
(l)
|
Specified
Employee
shall mean a key employee of the Bank within the meaning
of Code Section 416(i) without regard to paragraph 5 thereof, determined
in accordance with Code Section 409A and Treasury Regulations Section
1.409A-1(i).
|
2.
|
Payment of
Benefits
.
|
|
(a)
|
Normal
Benefit
.
|
|
(b)
|
Death
Benefit
.
|
|
(i)
|
Death Before Benefit Period
Begins
. If the Executive dies prior to the Normal
Retirement Date, Separation from Service, Disability or Change in Control,
the Bank shall pay to the beneficiary designated on Exhibit A, using an
Accrued Benefit Percentage of 60%, the Monthly Benefit commencing on the
first business day of the month following the Executive’s Normal
Retirement Date and on the first business day of each calendar month
thereafter for a period of 180 months. The Average Compensation
calculation shall assume that the Executive’s compensation increased by 3%
for each full calendar year that occurs prior to what would have been his
Normal Retirement Date.
|
|
(ii)
|
Death During Benefit
Period
. If the Executive dies after Normal Retirement
Date, Separation from Service, Disability or Change in Control, the Bank
shall make any remaining monthly payments due to the Executive to the
beneficiary designated by the Executive on Exhibit
A.
|
|
(c)
|
Disability
Benefit
.
|
|
(d)
|
Involuntary
Termination Benefit
.
In the
event the Executive incurs a Separation from Service due to an Involuntary
Termination before the Normal Retirement Date, Disability, death or Change
in Control, the Bank shall pay the Monthly Benefit to the Executive, using
an Accrued Benefit Percentage of not less than 60%, commencing on the
first business day of the month following the Separation from Service and
on the first business day of each calendar month thereafter for a total of
180 months; (i) provided, however, that in the event of Involuntary
Termination due to Cause, except as may be prohibited by federal law, the
Executive shall only be entitled to the Monthly Benefit calculated at the
time of his Separation from Service with payment commencing on the first
business day of the month following the Separation from Service and on the
first business date of each calendar month thereafter for a total of 180
months; and (ii) provided, further, that, to the extent necessary to avoid
penalties under Code Section 409A and the regulations thereunder, such
payments shall not commence until the first day of the seventh month
following the date of the Executive’s Separation from Service if the
Executive is a Specified Employee on his date of Separation from
Service.
|
|
(e)
|
Change
in Control Benefit
. If a Change in Control occurs before
the Normal Retirement Date, Separation from Service, Disability or
death,then, within 30 calendar days of a Change in Control, the Bank shall
pay the Executive a lump sum equal to the present value of the Monthly
Benefit that would otherwise be paid to the Executive hereunder, using an
Accrued Benefit Percentage of not less than 60%, regardless of whether the
Executive has experienced a Separation from Service; provided however,
that, if the Executive has experienced a Separation from Service, then, to
the extent necessary to avoid penalties under Code Section 409A and the
regulations thereunder, such payments shall not be made until the first
day of the seventh month following the date of the Executive’s Separation
from Service if the Executive is a Specified Employee on his date of
Separation from Service.
|
|
(f)
|
Funding
of Monthly Benefit
. The Bank reserves the right to
purchase a contract from a life insurance company with a minimum rating of
AA from Standard & Poors and Moody’s in order to provide all or any
portion of the Monthly Benefit described herein. Upon the
Bank’s purchase of such contract and distribution of the contract to
Executive or his Beneficiary, the Bank’s liability to provide the Monthly
Benefit hereunder shall cease and such contract shall be the sole source
of funds for providing such Monthly
Benefit.
|
3.
|
Claims
.
In the
event a claim for benefits is wholly or partially denied under this
Agreement, the Executive or any other person claiming benefits under this
Agreement (a “Claimant”) shall be given notice in writing within 30
calendar days after the Administrator’s receipt of the
claim. For good cause shown, the Administrator may extend this
period for an additional 30 calendar days. Any denial must
specifically set forth the reasons for the denial and any additional
information necessary to rescind such denial. The Claimant
shall have the right to seek a review of the denial by filing a written
request with the Administrator within 60 calendar days of receipt of the
denial. Such request may be supported by such documentation and
evidence deemed relevant by the Claimant. Following receipt of
this information, the Administrator shall make a final determination and
notify the Claimant in writing within 60 calendar days of the
Administrator’s receipt of the request for review together with the
specific reasons for the decision.
|
4.
|
General
Assets and Funding
.
The amounts
payable under this Agreement are payable from the general assets of the
Bank and no special fund or arrangement is intended to be established
hereby nor shall the Bank be required to earmark, place in trust or
otherwise segregate assets with respect to this Agreement or any benefits
hereunder. The Administrator reserves the right to determine
how the Bank will fund its obligation undertaken by this
Agreement. Should the Administrator elect to purchase assets
relating to this Agreement, in whole or in part, through the medium of
life insurance or annuities, or both, the Bank shall be the owner and
beneficiary of each such policy unless otherwise provided by this
Agreement. Bank reserves the absolute right, in its sole
discretion, to terminate such life insurance or annuities, as well as any
other investment program, at any time, in whole or in part unless
otherwise provided by this Agreement. Such termination shall in
no way affect the Bank’s obligation to pay the Executive the benefits as
provided in this Agreement. At no time shall the Executive be
deemed to have any right, title, or interest in or to any specific asset
or assets of the Bank, including but not by way of restriction, any
insurance or annuity contract and contracts or the proceeds
therefrom.
|
5.
|
Certain
Reductions
. Notwithstanding any other provision of this
Agreement, if the value and amounts of benefits under this Agreement,
together with any other amounts and the value of benefits
received or to be received by the Executive in connection with a Change in
Control would cause any amount to be nondeductible for federal income tax
purposes by the Bank or the consolidated group of which the Bank is a
member pursuant to Section 280G of the Code, then amounts and benefits
under this Agreement shall be reduced (not less than zero) to the extent
necessary so as to maximize amounts and the value of benefits to the
Employee without causing any amount to become nondeductible by Bank
pursuant to or by reason of such Section 280G. The Employee
shall determine the allocation of such reduction among payments and
benefits to the Employee.
|
6.
|
Beneficiary
Designations
. The Executive shall designate a
beneficiary by filing with Bank a written designation of beneficiary on a
form substantially similar to the form attached as Exhibit
A. The Executive may revoke or modify the designation at any
time by filing a new designation. However, designations will
only be effective if signed by the Executive and accepted by the Bank
during the Executive’s lifetime. The Executive’s beneficiary
designation shall be deemed automatically revoked if the beneficiary
predeceases the Executive, or if the Executive names a spouse as
beneficiary and the marriage is subsequently dissolved. If the
Executive dies without a valid beneficiary designation,
all payments shall be made to the Executive’s surviving spouse,
if any, and if none, to the Executive’s surviving children and the
descendants of any deceased child by right of representation, and if no
children or descendants survive, to the Executive’s
estate.
|
7.
|
Amendment and
Termination.
|
|
(a)
|
Amendment
. The
Bank may at any time amend the Agreement in whole or in part, provided,
however, that no amendment shall decrease or restrict the amount accrued
to the date of amendment.
|
|
(b)
|
Termination
. The
Bank may at any time partially or completely terminate the Agreement, if,
in its judgment, the tax, accounting, or other effects of the continuance
of the Agreement, or potential payments thereunder, would not be in the
best interests of the Bank.
|
8.
|
Miscellaneous
.
|
|
(a)
|
Withholding
.
To the
extent amounts payable under this Agreement are determined by the
Administrator, in good faith, to be subject to federal, state or local
income tax, the Bank may withhold from each such payment an amount
necessary to meet the Bank’s obligation to withhold amounts under the
applicable federal, state or local
law.
|
|
(b)
|
Governing
Law
.
This
Agreement shall be construed under the laws of the State of Georgia,
except to the extent that federal law
applies.
|
|
(c)
|
Future
Employment
.
This
Agreement shall not be construed as providing the Executive the right to
be continued in the employ of the Bank or its affiliates or
subsidiaries.
|
|
(d)
|
No
Pledge or Attachment
.
No benefit
which is or may become payable under this Agreement shall be subject to
any anticipation, alienation, sale, transfer, pledge, encumbrance or
hypothecation or subject to any attachment, levy or similar process and
any attempt to effect any such action shall be null and
void.
|
|
(e)
|
Successors
and Assigns
.
This Agreement and the
obligations of the Bank herein shall be binding upon the successors and
assigns of the Bank. This Agreement may not be assigned by the Bank
without the prior written consent of the Executive or any other
beneficiary receiving payments under this
Agreement.
|
|
(f)
|
Participation
in Plans.
Nothing contained
in this Agreement shall be construed to alter, abridge, or in any manner
affect the rights and privileges of the Executive to participate in and be
covered by any pension, profit sharing, group insurance, bonus, incentive,
or other employee plans which the Bank or its affiliates or subsidiaries
may now or hereafter have.
|
|
(g)
|
Notices
.
Any notices
under this Agreement shall be provided to the Executive at his last
address on file with the Administrator and shall be provided to the
Administrator in care of President, Atlantic Coast Federal, 505 Haines
Avenue, Waycross,
Georgia 31501.
|
|
(h)
|
Headings
. Headings
of sections herein are inserted for convenience of
reference. They are not to be considered in the
construction of this Agreement.
|
|
(i)
|
Savings
Clause
.
If any
provision of this Agreement shall be for any reason invalid or
unenforceable, the remaining provisions shall be carried into
effect.
|
|
(j)
|
Entire
Agreement
. This Agreement constitutes the entire
agreement between the Bank and the Executive as to the subject matter
hereof. No rights are granted to the Executive be virtue of this Agreement
other than as specifically set forth
herein.
|
|
(k)
|
Suicide
.
No benefits shall be payable if the Executive commits suicide within two
(2) years after the date of this Agreement, or if the Executive has made
any material misstatement of fact on any application for life insurance
purchased by the Bank
|
|
(l)
|
Top
Hat Agreement.
For purposes of the Internal Revenue Code, the Bank
intends this Agreement to be an unfunded, unsecured promise to pay on the
part of the Bank. For purposes of ERISA, The Bank intends this
Agreement to be an unfunded obligation solely for the benefit of the
Executive for the purpose of qualifying this Agreement for the “top hat”
exception under sections 201(2), 301(a)(3) and 401(a) of
ERISA.
|
ATLANTIC COAST BANK | ||
August 4, 2008
|
By
:/s/ Dawna R. Miller
|
|
Date
|
Name:
Dawna R. Miller
|
|
Title:
Senior Vice President and Chief Financial Officer
|
||
EXECUTIVE
|
||
August 4, 2008
|
/s/ Robert J. Larison,
Jr.
|
|
Date
|
Robert
J. Larison,
Jr.
|
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
Date
|
Robert
J. Larison, Jr.
|
|
2.1
|
Normal
Retirement
.
|
ATLANTIC
COAST BANK
|
||||
October 30, 2008
|
By:
|
/s/ Robert J. Larison, Jr.
|
||
Date
|
Robert
J. Larison, Jr. President and
|
|||
Chief
Executive Officer
|
Name:
|
|
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
Date
|
Participant
|
ATLANTIC
COAST BANK
|
|||
October 30, 2008
|
By:
|
/s/ Robert J. Larison,
Jr.
|
|
Date
|
Robert
J. Larison, Jr. President and
|
||
Chief
Executive Officer
|
Name:
|
|
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
Date
|
Director
|
ATLANTIC COAST FEDERAL CORPORATION | ||||
October 30, 2008
|
By:
|
/s/ Robert J. Larison,
Jr.
|
||
Date
|
Robert
J. Larison, Jr., President and
|
|||
Chief
Executive
Officer
|
Name:
|
|
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
Name
of Director:
|
|
This
election applies to Compensation earned on and after
______________________.
|
1)
|
Deferral of
Compensation:
|
|
I
hereby agree to defer my Compensation from the Company as
follows:
|
Name
of Director:
|
Name
of Director:
|
|
A.
|
r
|
I
do not wish to make any changes to my prior distribution
options.
|
|
||
(Director’s
Signature)
|
Date
|
|
B.
|
r
|
If
you wish to change your previous distribution elections, please check this
box and complete the rest of this
form.
|
|
||
Date
|
Director’s
Signature
|
ATLANTIC COAST FEDERAL CORPORATION | ||
Date
|
Signature
of Company
Officer
|
1.
|
Definitions
.
In this
Agreement, the following words and phrases shall have the following
meanings:
|
|
(a)
|
Accrued
Benefit Percentage
shall mean, except as otherwise provided in this
Agreement, 1.15% for each full calendar quarter of the Executive’s
employment with the Bank since January 1, 2006, calculated through the
last day of the calendar quarter in which the Executive (i) experiences a
Separation from Service or (ii) attains the Normal Retirement Date,
whichever shall first occur;
provided
,
however
, that
in no event shall the Accrued Benefit Percentage exceed
60%.
|
|
(b)
|
Administrator
shall mean the person or committee appointed by the Board of Directors of
the Bank to administer this Agreement. If a committee is
appointed by the Board of Directors, a majority of those persons shall
constitute a quorum and the act of the majority of such of persons either
at a meeting or by written consent, shall be the act of the
Administrator. The Administrator may adopt such rules and
procedures, not inconsistent with this Agreement, as it deems necessary or
appropriate in order to administer this
Agreement.
|
|
(c)
|
Average
Compensation
shall mean the amount determined by dividing by three
(3) the total compensation reported in Box 1 of Form W-2 (excluding
taxable income attributable to any restricted stock awards, stock options,
stock appreciation rights or any other awards made under any equity plan
maintained by the Bank or its affiliates) earned by the Executive from the
Bank and its affiliates and subsidiaries (or any successors thereto by
merger or purchase) during the three calendar years in the ten year period
prior to his Separation from Service that results in the largest
total.
|
|
(d)
|
Benefit
Determination Date
shall mean the first business day of the
calendar month following the earliest of (i) the Executive’s Normal
Retirement Date; (ii) the Executive’s Separation from Service; (iii) the
Executive’s death; (iv) the Executive’s Disability; or (v) a Change in
Control.
|
|
(e)
|
Cause
shall mean a Separation from Service due to the Executive’s personal
dishonesty, incompetence, willful misconduct, breach of fiduciary duty
involving personal profit, intentional failure to perform stated duties,
and willful violation of any law, rule, or regulation (other than traffic
violations or similar offenses) or final cease-and-desist
order.
|
|
(f)
|
Change
in Control
shall mean the
following:
|
|
(g)
|
Disabled
or Disability
shall mean the
Executive:
|
|
(h)
|
Involuntary
Termination
shall mean Separation from Service, other than for
Cause, without the Executive’s express written consent and voluntary
resignation due to a material diminution of or interference with the
Executive’s duties, responsibilities and benefits as Executive Vice
President of the Bank, including (without limitation) any of the following
actions unless consented to in writing by the Executive: (i) a change in
the principal workplace of the Executive to a location outside of a 30
mile radius from the Executive’s principal workplace as of the date
hereof; (ii) a material demotion of the Executive; (iii) a material
reduction in the number or seniority of other personnel reporting to the
Executive or a material reduction in the frequency with which, or on the
nature of the matters with respect to which, such personnel are to report
to the Executive, other than as part of an institution-wide reduction in
staff; (iv) a material adverse change in the Executive’s salary,
perquisites, benefits, contingent benefits or vacation, other than as part
of an overall program applied uniformly and with equitable effect to all
members of the senior management of the Bank; and (v) a material permanent
increase in the required hours of work or the workload of the Executive;
provided that the Executive has notified the Bank of the existence of such
a condition no later than 90 days after the initial existence of such
condition and the Bank has at least 30 days to cure such
condition. The term “Involuntary Termination” does not include
termination for Cause or termination of employment due to retirement,
death, Disability or suspension or temporary or permanent prohibition from
participation in the conduct of the Bank’s affairs under Section 8 of the
Federal Deposit Insurance Act.
|
|
(i)
|
Monthly
Benefit
shall mean the
Average Compensation multiplied by the Accrued Benefit Percentage and then
divided by twelve (12), calculated at the Benefit Determination
Date.
|
|
(j)
|
Normal
Retirement Date
shall mean the date the Executive attains age
55.
|
|
(k)
|
Separation
from Service
shall mean the date of cessation of the employment
relationship (other than an approved leave of absence) between the
Executive and the Bank and its affiliates and subsidiaries (including any
successor in interest, if applicable), and shall be construed to comply
with Code Section 409A and Treasury Regulations Section
1.409A-1(h).
|
|
(l)
|
Specified
Employee
shall mean a key employee of the Bank within the meaning
of Code Section 416(i) without regard to paragraph 5 thereof, determined
in accordance with Code Section 409A and Treasury Regulations Section
1.409A-1(i).
|
2.
|
Payment of
Benefits
.
|
|
(a)
|
Normal
Benefit
.
If Monthly
Benefits have not already started due to Separation from Service,
Disability or Change in Control, the Bank shall pay the Monthly Benefit to
Executive starting on the first business day of the month following the
Normal Retirement Date and on the first business day of each calendar
month thereafter for a total of 180 months (i.e., monthly payments for 15
years), regardless of whether the Executive has experienced a Separation
from Service; provided however, that, if the Executive has experienced a
Separation from Service, then, to the extent necessary to avoid penalties
under Code Section 409A and the regulations thereunder, such payments
shall not commence until the first day of the seventh month following the
date of the Executive’s Separation from Service if the Executive is a
Specified Employee on his date of Separation from
Service.
|
|
(b)
|
Death
Benefit
.
|
|
(i)
|
Death Before Benefit Period
Begins
. If the Executive dies prior to the Normal
Retirement Date, Separation from Service, Disability or Change in Control,
the Bank shall pay to the beneficiary designated on Exhibit A, using an
Accrued Benefit Percentage of 60%, the Monthly Benefit commencing on the
first business day of the month following the Executive’s Normal
Retirement Date and on the first business day of each calendar month
thereafter for a period of 180 months. The Average Compensation
calculation shall assume that the Executive’s compensation increased by 3%
for each full calendar year that occurs prior to what would have been his
Normal Retirement Date.
|
|
(ii)
|
Death During Benefit
Period
. If the Executive dies after Normal Retirement
Date, Separation from Service, Disability or Change in Control, the Bank
shall make any remaining monthly payments due to the Executive to the
beneficiary designated by the Executive on Exhibit
A.
|
|
(c)
|
Disability
Benefit
.
If the
Executive becomes Disabled before the Normal Retirement Date, death,
Separation from Service or Change in Control, the Bank shall
pay the Monthly Benefit to him, using an Accrued Benefit Percentage of not
less than 60%, starting on the first business day of the calendar month
following the date on which the Executive became Disabled and on the first
business day of each calendar month thereafter for a total of 180 months
(i.e., monthly payments for 15 years). If the Executive dies after
becoming entitled to Disability benefits, the Bank shall continue to make
the remaining monthly payments due to the Executive to the beneficiary
designated by the Executive on Exhibit
A.
|
|
(d)
|
Separation
from Service Benefit
.
In the
event the Executive incurs a Separation from Service due to an Involuntary
Termination before the Normal Retirement Date, Disability, death or Change
in Control, the Bank shall pay the Monthly Benefit to the Executive, using
an Accrued Benefit Percentage of not less than 60%, commencing on the
first business day of the month following the Separation from Service and
on the first business day of each calendar month thereafter for a total of
180 months; (i) provided, however, that in the event of Separation from
Service due to Cause, except as may be prohibited by federal law, the
Executive shall only be entitled to the Monthly Benefit calculated at the
time of his Separation from Service with payment commencing on the first
business day of the month following the Separation from Service and on the
first business date of each calendar month thereafter for a total of 180
months; and (ii) provided, further, that, to the extent necessary to avoid
penalties under Code Section 409A and the regulations thereunder, such
payments shall not commence until the first day of the seventh month
following the date of the Executive’s Separation from Service if the
Executive is a Specified Employee on his date of Separation from
Service.
|
|
(e)
|
Change
in Control Benefit
. If a Change in Control occurs before
the Normal Retirement Date, Separation from Service, Disability or death,
then, within 30 calendar days of a Change in Control, the Bank shall pay
the Executive a lump sum equal to the present value of the Monthly Benefit
that would otherwise be paid to the Executive hereunder, using an Accrued
Benefit Percentage of not less than 60%, regardless of whether the
Executive has experienced a Separation from Service; provided however,
that, if the Executive has experienced a Separation from Service, then, to
the extent necessary to avoid penalties under Code Section 409A and the
regulations thereunder, such payments shall not be made until the first
day of the seventh month following the date of the Executive’s Separation
from Service if the Executive is a Specified Employee on his date of
Separation from Service.
|
|
(f)
|
Funding
of Monthly Benefit
. The Bank reserves the right to
purchase a contract from a life insurance company with a minimum rating of
AA from Standard & Poors and Moody’s in order to provide all or any
portion of the Monthly Benefit described herein. Upon the
Bank’s purchase of such contract and distribution of the contract to
Executive or his Beneficiary, the Bank’s liability to provide the Monthly
Benefit hereunder shall cease and such contract shall be the sole source
of funds for providing such Monthly
Benefit.
|
3.
|
Required
Provisions
.
|
4.
|
Claims
.
In the
event a claim for benefits is wholly or partially denied under this
Agreement, the Executive or any other person claiming benefits under this
Agreement (a “Claimant”) shall be given notice in writing within 30
calendar days after the Administrator’s receipt of the
claim. For good cause shown, the Administrator may extend this
period for an additional 30 calendar days. Any denial must
specifically set forth the reasons for the denial and any additional
information necessary to rescind such denial. The Claimant
shall have the right to seek a review of the denial by filing a written
request with the Administrator within 60 calendar days of receipt of the
denial. Such request may be supported by such documentation and
evidence deemed relevant by the Claimant. Following receipt of
this information, the Administrator shall make a final determination and
notify the Claimant in writing within 60 calendar days of the
Administrator’s receipt of the request for review together with the
specific reasons for the
decision.
|
5.
|
General
Assets and Funding
.
The amounts
payable under this Agreement are payable from the general assets of the
Bank and no special fund or arrangement is intended to be established
hereby nor shall the Bank be required to earmark, place in trust or
otherwise segregate assets with respect to this Agreement or any benefits
hereunder. The Administrator reserves the right to determine
how the Bank will fund its obligation undertaken by this
Agreement. Should the Administrator elect to purchase assets
relating to this Agreement, in whole or in part, through the medium of
life insurance or annuities, or both, the Bank shall be the owner and
beneficiary of each such policy unless otherwise provided by this
Agreement. Bank reserves the absolute right, in its sole
discretion, to terminate such life insurance or annuities, as well as any
other investment program, at any time, in whole or in part unless
otherwise provided by this Agreement. Such termination shall in
no way affect the Bank’s obligation to pay the Executive the benefits as
provided in this Agreement. At no time shall the Executive be
deemed to have any right, title, or interest in or to any specific asset
or assets of the Bank, including but not by way of restriction, any
insurance or annuity contract and contracts or the proceeds
therefrom.
|
6.
|
Certain
Reductions
. Notwithstanding any other provision of this
Agreement, if the value and amounts of benefits under this Agreement,
together with any other amounts and the value of benefits
received or to be received by the Executive in connection with a Change in
Control would cause any amount to be nondeductible for federal income tax
purposes by the Bank or the consolidated group of which the Bank is a
member pursuant to Section 280G of the Code, then amounts and benefits
under this Agreement shall be reduced (not less than zero) to the extent
necessary so as to maximize amounts and the value of benefits to the
Employee without causing any amount to become nondeductible by Bank
pursuant to or by reason of such Section 280G. The Employee
shall determine the allocation of such reduction among payments and
benefits to the Employee.
|
7.
|
Beneficiary
Designations
. The Executive shall designate a
beneficiary by filing with Bank a written designation of beneficiary on a
form substantially similar to the form attached as Exhibit
A. The Executive may revoke or modify the designation at any
time by filing a new designation. However, designations will
only be effective if signed by the Executive and accepted by the Bank
during the Executive’s lifetime. The Executive’s beneficiary
designation shall be deemed automatically revoked if the beneficiary
predeceases the Executive, or if the Executive names a spouse as
beneficiary and the marriage is subsequently dissolved. If the
Executive dies without a valid beneficiary designation, all payments shall
be made to the Executive’s surviving spouse, if any, and if none, to the
Executive’s surviving children and the descendants of any deceased child
by right of representation, and if no children or descendants survive, to
the Executive’s estate.
|
8.
|
Amendment and
Termination.
|
|
(a)
|
Amendment
. The
Bank may at any time amend the Agreement in whole or in part, provided,
however, that no amendment shall decrease or restrict the amount accrued
to the date of amendment.
|
|
(b)
|
Termination
. The
Bank may at any time partially or completely terminate the Agreement, if,
in its judgment, the tax, accounting, or other effects of the continuance
of the Agreement, or potential payments thereunder, would not be in the
best interests of the Bank.
|
9.
|
Miscellaneous
.
|
|
(a)
|
Withholding
.
To the
extent amounts payable under this Agreement are determined by the
Administrator, in good faith, to be subject to federal, state or local
income tax, the Bank may withhold from each such payment an amount
necessary to meet the Bank’s obligation to withhold amounts under the
applicable federal, state or local
law.
|
|
(b)
|
Governing
Law
.
This
Agreement shall be construed under the laws of the State of Georgia,
except to the extent that federal law
applies.
|
|
(c)
|
Future
Employment
.
This
Agreement shall not be construed as providing the Executive the right to
be continued in the employ of the Bank or its affiliates or
subsidiaries.
|
|
(d)
|
No
Pledge or Attachment
.
No benefit
which is or may become payable under this Agreement shall be subject to
any anticipation, alienation, sale, transfer, pledge, encumbrance or
hypothecation or subject to any attachment, levy or similar process and
any attempt to effect any such action shall be null and
void.
|
|
(e)
|
Successors
and Assigns
.
This Agreement and the
obligations of the Bank herein shall be binding upon the successors and
assigns of the Bank. This Agreement may not be assigned by the
Bank without the prior written consent of the Executive or any other
beneficiary receiving payments under this
Agreement.
|
|
(f)
|
Participation
in Plans.
Nothing contained
in this Agreement shall be construed to alter, abridge, or in any manner
affect the rights and privileges of the Executive to participate in and be
covered by any pension, profit sharing, group insurance, bonus, incentive,
or other employee plans which the Bank or its affiliates or subsidiaries
may now or hereafter have.
|
|
(g)
|
Notices
.
Any notices
under this Agreement shall be provided to the Executive at his last
address on file with the Administrator and shall be provided to the
Administrator in care of President, Atlantic Coast Federal, 505 Haines
Avenue, Waycross,
Georgia 31501.
|
|
(h)
|
Headings
. Headings
of sections herein are inserted for convenience of
reference. They are not to be considered in the
construction of this Agreement.
|
|
(i)
|
Savings
Clause
.
If any
provision of this Agreement shall be for any reason invalid or
unenforceable, the remaining provisions shall be carried into
effect.
|
|
(j)
|
Entire
Agreement
. This Agreement constitutes the entire
agreement between the Bank and the Executive as to the subject matter
hereof. No rights are granted to the Executive be virtue of this Agreement
other than as specifically set forth
herein.
|
|
(k)
|
Suicide
.
No benefits shall be payable if the Executive commits suicide within two
(2) years after the date of this Agreement, or if the Executive has made
any material misstatement of fact on any application for life insurance
purchased by the Bank
|
|
(l)
|
Top
Hat Agreement.
For purposes of the Internal Revenue Code, the Bank
intends this Agreement to be an unfunded, unsecured promise to pay on the
part of the Bank. For purposes of ERISA, the Bank intends this Agreement
to be an unfunded obligation solely for the benefit of the Executive for
the purpose of qualifying this Agreement for the “top hat” exception under
sections 201(2), 301(a)(3) and 401(a) of
ERISA.
|
ATLANTIC
COAST BANK
|
|||
|
|||
August 4, 2008
|
By:
|
/s/ Robert J. Larison,
Jr.
|
|
Date
|
Name:
|
Robert
J. Larison, Jr.
|
|
Title:
|
President
and Chief Executive Officer
|
||
EXECUTIVE
|
|||
August 4, 2008
|
/s/ Carl W. Insel
|
||
Date
|
Carl
W.
Insel
|
Name:
|
%
of Benefit:
|
|||||
|
||||||
Name:
|
%
of Benefit:
|
|||||
|
||||||
Name:
|
%
of Benefit:
|
Name:
|
%
of Benefit:
|
|||||
|
||||||
Name:
|
%
of Benefit:
|
|||||
Name:
|
%
of Benefit:
|
Date
|
Carl
W. Insel
|
ATLANTIC
COAST BANK
|
|||
October 30, 2008
|
By:
|
/s/ Robert J. Larison,
Jr.
|
|
Robert J. Larison, Jr. President and | |||
Chief Executive Officer |
Name:
|
|
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
Date
|
Director
|
ATLANTIC
COAST FEDERAL CORPORATION
|
||||
October 30, 2008
|
By:
|
/s/ Robert J. Larison,
Jr.
|
||
Date
|
Robert
J. Larison, Jr.
|
|||
President
and Chief Executive
Officer
|
Name:
|
|
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
||
Name:
|
%
of Benefit:
|
Name
of Director:
|
|
This
election applies to Compensation earned on and after
______________________.
|
1)
|
Deferral of
Compensation:
|
|
I
hereby agree to defer my Compensation from the Company as
follows:
|
Name
of Director:
|
Name
of Director:
|
|
A.
|
r
|
I
do not wish to make any changes to my prior distribution
options.
|
|
||
(Director’s
Signature)
|
Date
|
|
B.
|
r
|
If
you wish to change your previous distribution elections, please check this
box and complete the rest of this
form.
|
|
||
Date
|
Director’s
Signature
|
ATLANTIC COAST FEDERAL CORPORATION | ||
Date
|
Signature
of Company
Officer
|
Name
|
Parent Company
|
State of Incorporation
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Atlantic
Coast Bank
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Atlantic
Coast Federal Corporation
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Federal
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First
Community Financial Services, Inc.
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Atlantic
Coast Bank
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Georgia
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Atlantic
Coast Holdings, Inc.
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Atlantic
Coast Bank
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Nevada
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Coastal
Properties, Inc.
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Atlantic
Coast Holdings, Inc.
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Maryland
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1.
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I
have reviewed this annual report on Form 10-K of Atlantic Coast Federal
Corporation;
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2.
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Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
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3.
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Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respect the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
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4.
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The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f) for the registrant and
have:
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a)
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Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
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b)
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Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
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c)
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Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
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d)
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Disclosed
in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting; and
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5.
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The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent
functions):
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a)
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all
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information;
and
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b)
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any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
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1.
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I
have reviewed this annual report on Form 10-K of Atlantic Coast Federal
Corporation.
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2.
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Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
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3.
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Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respect the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
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4.
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The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f) for the registrant and
have:
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|
a)
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Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
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b)
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Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
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c)
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Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
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d)
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Disclosed
in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting; and
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5.
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The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent
functions):
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a)
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all
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information;
and
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b)
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any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
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1.
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the
report fully complies with the requirements of Sections 13(a) of the
Securities Exchange Act of 1934,
and
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2.
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the
information contained in the report fairly presents, in all material
respects, the financial condition and results of operations of the
Company.
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/s/ Robert J. Larison, Jr.
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/s/ Dawna R. Miller
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Robert
J. Larison, Jr.
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Dawna
R. Miller
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President
and
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Senior
Vice President and
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Chief
Executive Officer
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Chief
Financial Officer
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