Atlantic Coast Financial Corporation
Atlantic Coast Financial — Investor Presentation (September 2016)
19 slides from Atlantic Coast Financial's investor presentation, Sep 8, 2016
Slide 1: Atlantic Coast Financial Corporation Investor Presentation September 2016
ATLANTIC COAST FINANCIAL CORPORATION Investor Presentation September 2016
Slide 2: Forward-looking statements and non-GAAP disclosure
This presentation, as well as other written or oral communications made from time to time by us, may contain forward - looking statements, as defined by Federal Securities Laws, relating to present or future trends or factors affecting the operations, markets and products of Atlantic Coast Financial
Slide 3: Investment Rationale - Why Atlantic Coast?
Investment Rationale - Why Atlantic Coast? » Largest true community bank headquartered in the Northeast Florida » Operates in attractive markets with strong growth and stable economies » Experienced senior leadership team with local market knowledge » Demonstrated success in executing strategic plan
Slide 4: An Experienced Leadership Team
An Experienced Leadership Team NAME POSITION YEARS OF EXPERIENCE BACKGROUND John Stephens President and CEO 29 Florida Commercial Executive for Fifth Third Bank; started career in corporate banking and capital markets with Wachovia Bank in North Carolina Tracy Keegan EVP and Chief Financial Officer
Slide 5: Execution Timeline History
Execution Timeline History 2013 2014 2015 » Proposed sale to Bond Street, rejected by shareholders » Restructured Board and recruited new leadership team with significant experience » Raised $48.3 million in a secondary stock offering » Cleaned up the balance sheet through a bulk sale of distressed
Slide 6: 2016 and 2017 Strategic Priorities
2016 and 2017 Strategic Priorities » Portfolio loan balances – up 9% in 2016 (year - to - date) » Noninterest - bearing deposit balances – up 16% in 2016 (year - to - date) » Total retail deposits - up 7% in 2016 ( year - to - date, net of branch sale) » Enterprise wide initiative – line of business
Slide 7: Current Markets
7 Current Markets Atlantic Coast Bank Offices Full service branches and LPOs covering Northeast Florida, Central Florida and Southeast Georgia » The Jacksonville MSA has an estimated 1.5 million residents (2016) » Estimated median household income of $54,000 as of June 30, 2016 » The Orlando MSA has
Slide 8: Florida Economic Trends
Florida Economic Trends » The median sales price for single - family existing homes in Florida was $223,200 in July 2016, up 11.6% from the previous year » Dollar volume increased 17.4% in 2015, to $73.5 billion (from $62.6 billion in 2014) » Statewide inventory is down to 94,518 units or 4.3 months
Slide 9: Targeted Markets: I-4 and I-95 Corridor
Targeted Markets: I - 95 and I - 4 Corridor JACKSONVILLE DAYTONA ORLANDO TAMPA ST. AUGUSTINE Florida Deposits Institutions ($ millions) (as of June 30, 2015) South Florida 99 207,301 Tampa - St. Petersburg 58 58,229 Jacksonville 37 55,789 Orlando - Kissimmee 42 42,668 » 220 mile stretch through 15 c
Slide 10: Three-Year Financial Highlights
Three - Year Financial Highlights 2015 2014 2013 Net interest income 21,110$ 17,623$ 16,141$ Net income 7,718$ 1,327$ (11,406)$ Earnings per diluted share 0.50$ 0.09$ (3.23)$ Core earnings per diluted share 0.18$ 0.09$ (1.13)$ Total portfolio loans 603,507$ 446,870$ 371,956$ Total loans (portfolio a
Slide 11: Six Month Financial Highlights
Six Month Financial Highlights 2016 2015 % Change Net interest income 12,494$ 9,405$ 32.8% Net income 2,860$ 6,021$ -52.5% Earnings per diluted share 0.19$ 0.39$ -51.3% Core earnings per diluted share 0.15$ 0.05$ 200.0% Total portfolio loans 657,625$ 475,455$ 38.3% Total loans (portfolio and other)
Slide 12: Transitioning into a Highly Profitable Growth Franchise
Transitioning into a Highly Profitable Growth Franchise Gross Loans ($ in millions) Total Deposits ($ in millions) PP Net Revenue ($ in millions) Core EPS Source: SNL Financial. (1) FBR Estimate $401 $495 $662 $767 $300 $400 $500 $600 $700 $800 $900 2013Y 2014Y 2015Y 2016Q2 $460 $441 $556 $570 $0 $1
Slide 13: Wholesale debt restructuring
» Prepaid a total of $116.3 million of wholesale debt in 2Q15 ($60 million of FHLB borrowings and $56.3 million of Repos) • Minimal reliance on Repo financing since the restructuring; trend expected to continue » Restructured $50 million of FHLB borrowings • FHLB borrowings carry a weighted - averag
Slide 14: Dramatic Credit Improvement
Dramatic Credit Improvement Nonperforming Assets ($ in millions) $46.60 $24.90 $3.40 $4.50 $4.40 $3.40 $5.80 $8.10 $5.20 $4.00 $3.20 $2.70 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 2011 2012 2013 2014 2015 6/30/2016 Nonperforming Loans OREO 14
Slide 15: Strengthening Loan Loss Reserves
Strengthening Loan Loss Reserves 26% 29% 47% 51% 48% 56% 33% 44% 205% 157% 174% 235% 0% 50% 100% 150% 200% 250% 2011 2012 2013 2014 2015 6/30/2016 Reserves Reserves/Classified Loans Reserves/NPLs 15
Slide 16: Key Drivers of Commercial Loan Growth
Key Drivers of Commercial Loan Growth Strategic Developments » Recruited a Market President for Northeast Florida and Southeast Georgia, and opened an LPO in Southeast Georgia » Recruited a Market President and experienced team in Central Florida » Identified a Market President for Greater Tampa Bay
Slide 17: Key Drivers of Deposit Growth
Key Drivers of Deposit Growth » Recruited strong retail deposit relationship managers in core markets » Restructured branch operational responsibilities providing an enhanced sales culture » Recruited seasoned commercial deposit specialist to work in Northeast Florida and Southeast Georgia » Expandi
Slide 18: Investment Rationale - Why Atlantic Coast?
» Experienced leadership team with local connectivity » Well positioned in highly attractive Florida markets » Strong foundation, poised for line of business and geographic expansion » Proven ability to deliver high performance growth » Capital and liquidity well positioned to support strategic init
Slide 19: www.AtlanticCoastBank.net
NASDAQ: ACFC www.AtlanticCoastBank.net
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