JACKSONVILLE BEACH, Fla.,
May 18 /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 first quarter 2010 results. Atlantic BancGroup,
Inc. is a publicly traded bank holding company, trading on the
NASDAQ Capital Market, symbol ATBC. Consolidated losses totaled
$547,000 for the quarter ended
March 31, 2010, which compares with a
net loss of $68,000 for the same
period of 2009. While we posted a year-to-year increase in
net interest income before provision for loan losses of
$291,000, or 16.5%, our first quarter
2010 results were depressed by continued loan losses that
contributed to an increase in our provision for loan losses of
$638,000, higher FDIC deposit
insurance assessments, which rose $207,000, and a reduction in income tax benefits
of $150,000. The loss per basic
and diluted share for the quarter ended March 31, 2010, was $0.44 compared with the loss per basic and
diluted share of $0.05 for the same
period in 2009. Consolidated total assets at March 31, 2010, were $285.9 million, an increase of 3.0% over
March 31, 2009. Consolidated
deposits grew 7.1% while consolidated net loans declined 6.8% over
the same period of 2009, with consolidated deposits at $258.5 million and consolidated net loans at
$189.6 million at March 31, 2010.
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Severe declines in real estate values, high unemployment,
business failures and residential foreclosures in our market areas
and throughout Florida and the
U.S. have continued to adversely affect our operating results and
our loan portfolio. This has also resulted in many of our customers
being unable to make payments on their loans and we are required by
banking regulations to downgrade these loans and reserve against
future potential losses in our loan portfolio. Additionally, we are
also required to increase our reserves for those customers whom we
have assisted by proactively altering their payment plans to allow
them flexibility in continuing to make payments. As a result, we
have adopted an aggressive strategy of significantly increasing our
loan loss reserves for these potential future losses. As we
progress through 2010, we will continue to aggressively, but
prudently, manage our non-performing assets and explore strategic
alternatives to improve our capital position.
The cornerstone of our strategic plan to rebuild our capital was
announced last week. 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 late-third quarter
or 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
JAXB will file a Registration Statement on Form S-4, containing
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 WHEN THEY BECOME AVAILABLE 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.