JACKSONVILLE BEACH, Fla.,
Aug. 17 /PRNewswire-FirstCall/ --
Atlantic BancGroup, Inc., (Nasdaq: ATBC) the parent company of
Oceanside Bank, with four locations in the Jacksonville Beaches and
East Jacksonville, Florida,
announced today its second quarter 2010 results. Atlantic
BancGroup, Inc. is a publicly traded bank holding company, trading
on the NASDAQ Capital Market, symbol ATBC.
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Consolidated income totaled $282,000 for the quarter ended June 30, 2010, which compares with net income of
$65,000 for the same period of 2009.
Net interest income before provision for loan losses
increased $449,000, or 26.5%, to
$2,143,000 during the second quarter
of 2010 as compared to $1,694,000 for
the same period in 2009. The net income per basic and diluted
share for the quarter ended June 30,
2010, was $0.23 compared with
net income per basic and diluted share of $0.05 for the same period in 2009.
Consolidated total assets at June 30,
2010, were $274.2 million, a
decrease of 9.5% over June 30, 2009.
Consolidated deposits decreased 8.4% and consolidated net
loans fell 8.8% over the same period of 2009, with consolidated
deposits at $246.1 million and
consolidated net loans at $185.9
million at June 30, 2010.
We reported consolidated net income during the second quarter of
2010 after three consecutive quarters of losses stemming from
severe declines in real estate values, high unemployment, business
failures, and residential foreclosures in our market areas and
throughout Florida and the U.S.
Despite the economic conditions that negatively affected our
earnings and impacted the credit quality of our loan portfolio in
prior quarters, we posted improvements in our net interest margin
and core earnings in the second quarter of 2010 after absorbing
$180,000 in additional FDIC deposit
insurance assessments. Professional, legal, and audit fees
were higher by $137,000, with most of
the increase attributable to merger-related costs.
We continue to aggressively manage our past due loans and
non-performing assets. On a positive note, we liquidated one
of our larger troubled assets at the end of the second quarter of
2010. Also, our largest nonperforming real estate project had
the remaining two condo units under contract at June 30, 2010, one of which closed in
August 2010. As we progress
through 2010, we will continue to closely monitor our
non-performing assets.
The cornerstone of our strategic plans to rebuild our capital
was announced during the second quarter of 2010. On
May 10, 2010, Jacksonville Bancorp,
Inc. ("JAXB"), the bank holding company for The Jacksonville Bank,
and Atlantic announced the signing of a definitive merger agreement
providing for the merger of Atlantic into JAXB. The merger
agreement also contemplates the consolidation of Oceanside into The
Jacksonville Bank. Additionally, JAXB announced the signing
of a stock purchase agreement with four private investors led by
CapGen Capital Group IV LP ("CapGen") providing for $30 million in new capital through the sale of
newly issued shares of JAXB common stock subject to completion of
the mergers. The transactions have been approved by the
Boards of Directors of each company and are subject to regulatory
approval, shareholders' approvals, and other customary conditions.
JAXB and Atlantic expect to close the transaction in
early-fourth quarter of 2010.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
Certain statements in this press release may contain
"forward-looking" statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, which statements
generally can be identified by the use of forward-looking
terminology, such as "may," "will," "expect," "estimate,"
"anticipate," "believe," "target," "plan," "project," or "continue"
or the negatives thereof or other variations thereon or similar
terminology, and are made on the basis of management's plans and
current analyses of Atlantic BancGroup, Inc., its business and the
industry as a whole. These forward-looking statements are subject
to risks and uncertainties, including, but not limited to, economic
conditions, competition, interest rate sensitivity and exposure to
regulatory and legislative changes. The above factors, in some
cases, have affected, and in the future could affect Atlantic
BancGroup, Inc.'s financial performance and could cause actual
results for fiscal 2010 and beyond to differ materially from those
expressed or implied in such forward-looking statements. Atlantic
BancGroup, Inc. does not undertake to publicly update or revise its
forward-looking statements even if experience or future changes
make it clear that any project results expressed or implied therein
will not be realized.
ADDITIONAL INFORMATION ABOUT THIS TRANSACTION
On July 30, 2010, JAXB filed a
Registration Statement on Form S-4, which contained a Proxy
Statement of Atlantic's, and both companies will file other
relevant documents concerning the merger with the SEC. Atlantic
will mail the Proxy Statement/Prospectus to its shareholders.
STOCKHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND
THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE
SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS,
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
You may obtain copies of all documents filed with the SEC
regarding this transaction, free of charge, at the SEC's website
(www.sec.gov). In addition, you may also obtain these documents,
free of charge, from Atlantic by contacting David L. Young, Chief Financial Officer,
Atlantic BancGroup, Inc. 1315 South Third Street, Jacksonville Beach, Florida 32250, (904)
247-9494 or from Valerie A. Kendall,
Chief Financial Officer, Jacksonville Bancorp, Inc., 100 North
Laura Street, Jacksonville,
Florida 32202, (904) 421-3040.
This press release does not constitute an offer to buy, or a
solicitation to sell, shares of any security or the solicitation of
any proxies from shareholders of Atlantic.
PARTICIPANTS IN THIS TRANSACTION
Atlantic and JAXB and their respective directors and executive
officers may be deemed participants in the solicitation of proxies
from Atlantic's shareholders in connection with this transaction.
Information about the directors and executive officers of Atlantic
and JAXB and information about the other persons who may be deemed
participants in this transaction will be included in the Proxy
Statement/Prospectus. You can find information about Atlantic's
directors and executive officers in Atlantic's Form 10-K filed with
the SEC on April 15, 2010. You can
find information about JAXB's directors and executive officers in
JAXB's definitive proxy statement filed with the SEC on
March 29, 2010. You can obtain free
copies of these documents from Atlantic or from JAXB using the
contact information above.
SOURCE Atlantic BancGroup, Inc.
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