At­lantic Coast Fi­nan­cial inks ac­cord with Bond Street Hold­ings

The Pak Banker - - COMPANIES/BOSS -

At­lantic Coast Fi­nan­cial Cor­po­ra­tion, the hold­ing com­pany for At­lantic Coast Bank to­day an­nounced a strate­gic trans­ac­tion that will achieve im­me­di­ate en­hanced value for all stock­hold­ers with re­spect to the present value of their in­vest­ment, as well as a fi­nan­cially strong bank­ing plat­form, and a com­pet­i­tive com­mu­nity bank­ing or­ga­ni­za­tion that is well po­si­tioned to meet the needs of its cus­tomers and com­mu­ni­ties for the long term.

Specif­i­cally, the Com­pany has en­tered into a de­fin­i­tive merger agree­ment with Bond Street Hold­ings Inc un­der which the Com­pany will merge into Bond Street, a com­mu­nity- ori­ented bank hold­ing com­pany with $3.2 bil­lion in to­tal as­sets that op­er­ates 41 com­mu­nity bank­ing branches along both Florida coasts and in the Or­lando area. Upon com­ple­tion of that trans­ac­tion, At­lantic Coast Bank will merge into Florida Com­mu­nity Bank, N. A., Bond Street's bank­ing sub­sidiary.

As a re­sult of this strate­gic merger agree­ment, the Com­pany's stock­hold­ers will re­ceive $ 5.00 per share in cash for each com­mon share owned. The $5.00 per share merger con­sid­er­a­tion to be re­al­ized by the Com­pany's stock­hold­ers rep­re­sents a pre­mium of ap­prox­i­mately 49% to the Com­pany's av­er­age stock price of $3.36 over the 10- day pe­riod ended Fe­bru­ary 25, 2013.

Of the to­tal trans­ac­tion price of $5.00, $2.00 will be held in an es­crow ac­count and will be avail­able to cover losses from stock­holder claims for one year or un­til the fi­nal res­o­lu­tion of such claims, if later. The trans­ac­tion is ex­pected to be com­pleted by the end of the sec­ond quar­ter of 2013, sub­ject to cus­tom­ary con­di­tions, in­clud­ing reg­u­la­tory ap­provals and the ap­proval of Com­pany stock­hold­ers.

G. Thomas Fran­k­land, Pres­i­dent and Chief Ex­ec­u­tive Of­fi­cer of the Com­pany, said this trans­ac­tion is a win for our stock­hold­ers, a win for our cus­tomers and a win for our bank­ing fran­chise.

This strate­gic busi­ness com­bi­na­tion sig­nif­i­cantly en­hances our com­bined abil­i­ties to be one of the fi­nan­cially strong­est and most com­pet­i­tive com­mu­nity bank­ing or­ga­ni­za­tions in the north­east Florida and south­east Ge­or­gia mar­kets. This trans­ac­tion is an im­por­tant and mean­ing­ful op­por­tu­nity for our stock­hold­ers, our cus­tomers and our com­mu­ni­ties.

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