##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2005
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 Commission File Number 000-50962
 ATLANTIC COAST FEDERAL CORPORATION
  FEDERAL
(State or other jurisdiction of
incorporation or organization)
    
    59-3764686
(I.R.S. Employer
Identification Number)
 505 Haines AvenueWaycross, Georgia
    
    
    31501(Address of principal executive offices)
    
    (Zip Code)
  þ o
 o þ
  Class
Common Stock, $.01 Par Value
    
    Outstanding at June 30, 2005
14,808,820




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##### Table of Contents



Page NumberPART I.Item 1. Financial Statements
    
    
    3Item 2. Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    
    12Item 3. Quantitative and Qualitative Disclosures about Market Risk
    
    
    31Item 4. Controls and Procedures
    
    
    32PART II.Item 1. Legal Proceedings
    
    
    33Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    33Item 3. Defaults Upon Senior Securities
    
    
    33Item 4. Submission of Matters to a Vote of Security Holders
    
    
    33Item 5. Other Information
    
    
    34Item 6. Exhibits
    
    
    34Form 10-Q            Signature Page
    
    
    35Ex-31.1 Section 302 Certification of CEOEx-31.2 Section 302 Certification of CFOEx-32.1 Section 906 Certification of CEOEx-32.2 Section 906 Certification of CFOEx-31.1 Section 302 CEO CertificationEx-31.2 Section 302 CFO CertificationEx-32.1 Section 906 CEO CertificationEx-32.2 Section 906 CFO Certification
 2




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June 30,
    
    December 31,2005
    
    2004ASSETSCash and due from financial institutions
    
    $
    9,257,892
    
    
    $
    7,422,031Short-term interest-bearing deposits
    
    
    42,297,382
    
    
    
    18,285,854Total cash and cash equivalents
    
    
    51,555,274
    
    
    
    25,707,885Other interest bearing deposits in other financial institutions
    
    
    
    
    
    
    900,000Securities purchased under agreements to resell
    
    
    
    
    
    
    11,800,000Securities available for sale
    
    
    65,513,377
    
    
    
    53,363,310Real estate mortgages held for sale
    
    
    86,303
    
    
    
    80,545Loans, net of allowance for loan losses of $4,189,134 at June 30,
2005 and $3,956,230 at December 31, 2004
    
    
    550,550,792
    
    
    
    517,711,074Federal Home Loan Bank stock
    
    
    6,624,400
    
    
    
    5,511,400Accrued interest receivable
    
    
    2,532,457
    
    
    
    2,277,147Land, premises and equipment, net
    
    
    11,811,043
    
    
    
    10,515,101Bank owned life insurance
    
    
    15,127,596
    
    
    
    4,923,555Other real estate owned
    
    
    494,000
    
    
    
    306,679Goodwill
    
    
    2,661,190
    
    
    
    2,661,190Other assets
    
    
    2,342,988
    
    
    
    1,919,999Total assets
    
    $
    709,299,420
    
    
    $
    637,677,885LIABILITIES AND STOCKHOLDERS EQUITYDeposits:Non-interest-bearing demand
    
    $
    37,297,308
    
    
    $
    34,798,817Interest bearing demand
    
    
    59,961,475
    
    
    
    30,581,713Savings and money market
    
    
    117,009,650
    
    
    
    124,259,438Time
    
    
    271,298,807
    
    
    
    246,042,229Total deposits
    
    
    485,567,240
    
    
    
    435,682,197Federal Home Loan Bank advances
    
    
    119,657,143
    
    
    
    100,314,286Accrued expenses and other liabilities
    
    
    4,536,622
    
    
    
    2,981,139Total liabilities
    
    
    609,761,005
    
    
    
    538,977,622Commitments and contingencies
    
    
    
    
    
    
    Preferred stock: $.01 par value; 2,000,000 shares authorized,
none issued
    
    
    
    
    
    
    Common stock: $.01 par value; 18,000,000 shares authorized; 14,547,500
issued and outstanding at June 30, 2005 and December 31, 2004
    
    
    145,475
    
    
    
    145,475Additional paid in capital
    
    
    56,388,511
    
    
    
    56,332,850Unearned employee stock ownership plan (ESOP) shares of 395,692 shares
at June 30, 2005 and 418,968 shares at December 31, 2004
    
    
    (3,956,920
    )
    
    
    (4,189,680
    )Retained earnings
    
    
    46,979,664
    
    
    
    46,412,522Accumulated other comprehensive income (loss)
    
    
    (18,315
    )
    
    
    (904
    )Total stockholders equity
    
    
    99,538,415
    
    
    
    98,700,263Total liabilities and stockholders equity
    
    $
    709,299,420
    
    
    $
    637,677,885
  3




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Three Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2005
    
    2004
    
    2005
    
    2004INTEREST AND DIVIDEND INCOMELoans
    
    $
    8,359,595
    
    
    $
    7,473,113
    
    
    $
    16,201,776
    
    
    $
    14,826,174Securities and interest-bearing deposits
in other financial institutions
    
    
    859,808
    
    
    
    196,741
    
    
    
    1,387,946
    
    
    
    383,648Securities purchased under agreements to resell
    
    
    
    
    
    
    
    
    
    
    72,411
    
    
    
    Total interest and dividend income
    
    
    9,219,403
    
    
    
    7,669,854
    
    
    
    17,662,133
    
    
    
    15,209,822INTEREST EXPENSEDeposits
    
    
    2,893,957
    
    
    
    1,922,402
    
    
    
    5,319,207
    
    
    
    3,908,423Federal Home Loan Bank advances
    
    
    1,228,155
    
    
    
    882,436
    
    
    
    2,280,505
    
    
    
    1,707,619Total interest expense
    
    
    4,122,112
    
    
    
    2,804,838
    
    
    
    7,599,712
    
    
    
    5,616,042NET INTEREST INCOME
    
    
    5,097,291
    
    
    
    4,865,016
    
    
    
    10,062,421
    
    
    
    9,593,780Provision for loan losses
    
    
    577,048
    
    
    
    108,781
    
    
    
    1,100,289
    
    
    
    1,652,831NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES
    
    
    4,520,243
    
    
    
    4,756,235
    
    
    
    8,962,132
    
    
    
    7,940,949NONINTEREST INCOMEService charges and fees
    
    
    1,233,362
    
    
    
    981,475
    
    
    
    2,129,094
    
    
    
    1,801,891Gain on the sale of loans held for sale
    
    
    53,235
    
    
    
    2,076
    
    
    
    64,634
    
    
    
    168,513Gain on the sale of securities available
for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,444Gain on sale of foreclosed assets
    
    
    40,875
    
    
    
    18,885
    
    
    
    41,727
    
    
    
    54,549Commission income
    
    
    102,996
    
    
    
    81,968
    
    
    
    202,240
    
    
    
    168,256Interchange fees
    
    
    192,795
    
    
    
    166,069
    
    
    
    373,237
    
    
    
    320,487Other
    
    
    171,704
    
    
    
    81,212
    
    
    
    270,670
    
    
    
    164,122Total noninterest income
    
    
    1,794,967
    
    
    
    1,331,685
    
    
    
    3,081,602
    
    
    
    2,686,262NONINTEREST EXPENSECompensation and benefits
    
    
    2,352,317
    
    
    
    1,835,163
    
    
    
    4,583,781
    
    
    
    3,822,613Occupancy and equipment
    
    
    434,421
    
    
    
    347,301
    
    
    
    808,034
    
    
    
    691,480Data processing
    
    
    292,411
    
    
    
    265,228
    
    
    
    541,484
    
    
    
    554,573Advertising
    
    
    172,852
    
    
    
    91,278
    
    
    
    279,561
    
    
    
    177,868Outside professional services
    
    
    643,167
    
    
    
    441,357
    
    
    
    1,248,385
    
    
    
    738,191Interchange charges
    
    
    154,347
    
    
    
    176,473
    
    
    
    301,396
    
    
    
    432,577Collection expense and repossessed asset losses
    
    
    83,464
    
    
    
    38,282
    
    
    
    162,808
    
    
    
    87,995Telephone
    
    
    132,856
    
    
    
    135,980
    
    
    
    249,221
    
    
    
    270,054Other
    
    
    711,260
    
    
    
    637,566
    
    
    
    1,309,374
    
    
    
    1,228,442Total noninterest expense
    
    
    4,977,095
    
    
    
    3,968,628
    
    
    
    9,484,044
    
    
    
    8,003,793INCOME BEFORE INCOME TAX EXPENSE
    
    
    1,338,115
    
    
    
    2,119,292
    
    
    
    2,559,690
    
    
    
    2,623,418Income tax expense
    
    
    435,651
    
    
    
    765,380
    
    
    
    874,834
    
    
    
    928,922NET INCOME
    
    $
    902,464
    
    
    $
    1,353,912
    
    
    $
    1,684,856
    
    
    $
    1,694,496Earnings per share:Basic and diluted
    
    $
    0.06
    
    
    $
    0.16
    
    
    $
    0.12
    
    
    $
    0.19Dividends declared per common share:
    
    $
    0.06
    
    
    $
    
    
    
    $
    0.06
    
    
    $
    
  4




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AccumulatedAdditional
    
    Unearned
    
    
    
    
    
    OtherCommon
    
    Paid In
    
    ESOP
    
    Retained
    
    Comprehensive
    
    TotalStock
    
    Capital
    
    Shares
    
    Earnings
    
    Income (Loss)
    
    EquityFor the six months ended June 30, 2005Balance at January 1, 2005
    
    $
    145,475
    
    
    $
    56,332,850
    
    
    $
    (4,189,680
    )
    
    $
    46,412,522
    
    
    $
    (904
    )
    
    $
    98,700,263ESOP shares earned, 23,276 shares
    
    
    
    
    
    
    55,661
    
    
    
    232,760
    
    
    
    
    
    
    
    
    
    
    
    288,421Dividend
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,117,714
    )
    
    
    
    
    
    
    (1,117,714
    )Comprehensive income:Net income -
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,684,856
    
    
    
    
    
    
    
    1,684,856Other comprehensive income (loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (17,411
    )
    
    
    (17,411
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,667,445Balance at June 30, 2005 (unaudited)
    
    $
    145,475
    
    
    $
    56,388,511
    
    
    $
    (3,956,920
    )
    
    $
    46,979,664
    
    
    $
    (18,315
    )
    
    $
    99,538,415For the six months ended June 30, 2004Balance at January 1, 2004
    
    $
    10
    
    
    $
    
    
    
    $
    
    
    
    $
    43,220,688
    
    
    $
    (2,323
    )
    
    $
    43,218,375Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,694,496
    
    
    
    
    
    
    
    1,694,496Other comprehensive income (loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    106,258
    
    
    
    106,258Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,800,754Balance at June 30, 2004 (unaudited)
    
    $
    10
    
    
    $
    
    
    
    $
    
    
    
    $
    44,915,184
    
    
    $
    103,935
    
    
    $
    45,019,129
  5




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Six MonthsEnded June 30,2005
    
    2004Cash flows from operating activitiesNet income
    
    $
    1,684,856
    
    
    $
    1,694,496Adjustments to reconcile net income
to net cash from operating activitiesProvision for loan losses
    
    
    1,100,289
    
    
    
    1,652,831Gain on sale of real estate mortgages held for sale
    
    
    (64,634
    )
    
    
    (168,513
    )Gain on the sale of other real estate owned
    
    
    (41,727
    )
    
    
    (55,049
    )Loans originated for sale
    
    
    (5,607,503
    )
    
    
    (10,328,352
    )Proceeds from loan sales
    
    
    5,666,379
    
    
    
    10,826,788(Gain) loss on the sale of securities
available for sale
    
    
    
    
    
    
    (8,444
    )ESOP compensation expense
    
    
    288,421
    
    
    
    Net depreciation and amortization
    
    
    855,878
    
    
    
    631,682Net change in accrued interest receivable
    
    
    (255,310
    )
    
    
    219,289Increase in bank owned life insurance
    
    
    (204,041
    )
    
    
    (88,974
    )Net change in other assets
    
    
    (293,264
    )
    
    
    (395,107
    )Net change in accrued expenses
and other liabilities
    
    
    728,719
    
    
    
    663,511Net cash from operating activities
    
    
    3,858,063
    
    
    
    4,644,158Cash flows from investing activitiesNet change in securities purchased under
agreements to resell
    
    
    11,800,000
    
    
    
    Proceeds from maturities and payments
of securities available for sale
    
    
    16,834,841
    
    
    
    4,837,306Proceeds from sales of securities available for sale
    
    
    500,000
    
    
    
    Purchase of securities available for sale
    
    
    (29,685,798
    )
    
    
    (991,777
    )Loans purchased
    
    
    (22,591,484
    )
    
    
    Net change in loans
    
    
    (12,149,246
    )
    
    
    (65,408,271
    )Expenditures on premises and equipment
    
    
    (1,791,344
    )
    
    
    (586,403
    )Proceeds from the sale of other real estate owned
    
    
    348,407
    
    
    
    975,698Purchase of FHLB stock
    
    
    (1,113,000
    )
    
    
    (1,467,100
    )Purchase of bank owned life insurance
    
    
    (10,000,000
    )
    
    
    Net change in other investments
    
    
    900,000
    
    
    
    500,000Net cash from investing activities
    
    
    (46,947,624
    )
    
    
    (62,140,547
    )
  6




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Six MonthsEnded June 30,2005
    
    2004Cash flows from financing activitiesNet increase in deposits
    
    $
    49,885,043
    
    
    $
    48,123,882FHLB advances
    
    
    20,000,000
    
    
    
    30,000,000Repayment of FHLB advances
    
    
    (657,143
    )
    
    
    Dividends paid
    
    
    (290,950
    )
    
    
    Net cash from financing activities
    
    
    68,936,950
    
    
    
    78,123,882Net change in cash and cash equivalents
    
    
    25,847,389
    
    
    
    20,627,493Cash and cash equivalents at beginning of period
    
    
    25,707,885
    
    
    
    8,995,824Cash and cash equivalents at end of period
    
    $
    51,555,274
    
    
    $
    29,623,317Supplemental information:Interest paid
    
    $
    7,407,687
    
    
    $
    5,549,972Income taxes paid
    
    
    657,500
    
    
    
    950,000Supplemental non-cash disclosures:Loans transferred to other real estate
    
    $
    494,000
    
    
    $
    133,126Dividends declared
    
    
    826,764
    
    
    
    
  7




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8




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2005
    
    $
    10,657,1432006
    
    
    5,000,0002007
    
    
    2,000,0002008
    
    
    8,000,0002009
    
    
    5,000,000Thereafter
    
    
    89,000,000$
    119,657,143
   
   9




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For the three-months
    
    For the six-monthsended June 30,
    
    ended June 30,2005
    
    2004
    
    2005
    
    2004BasicNet income
    
    $
    902,464
    
    
    $
    1,353,912
    
    
    $
    1,684,856
    
    
    $
    1,694,496Weighted average common shares
outstanding
    
    
    14,547,500
    
    
    
    8,728,500
    
    
    
    14,547,500
    
    
    
    8,728,500Less: Average unallocated ESOP shares
    
    
    418,968
    
    
    
    
    
    
    
    418,968
    
    
    
    Average shares
    
    
    14,128,532
    
    
    
    8,728,500
    
    
    
    14,128,532
    
    
    
    8,728,500Basic earnings per common share
    
    $
    0.06
    
    
    $
    0.16
    
    
    $
    0.12
    
    
    $
    0.19
    For the three-months
    
    For the six-monthsended June 30,
    
    ended June 30,2005
    
    2004
    
    2005
    
    2004Net income
    
    $
    902,464
    
    
    $
    1,353,912
    
    
    $
    1,684,856
    
    
    $
    1,694,496Other
comprehensive incomeUnrealized holding gains and
(losses) on securities available
for sale
    
    
    31,482
    
    
    
    (249,266
    )
    
    
    (147,137
    )
    
    
    (179,849
    )Less reclassification
adjustments for (gains) losses
recognized in income
    
    
    
    
    
    
    8,444
    
    
    
    
    
    
    
    8,444Net unrealized gains and (losses)
    
    
    31,482
    
    
    
    (240,822
    )
    
    
    (147,137
    )
    
    
    (171,405
    )Tax effect
    
    
    (11,963
    )
    
    
    91,513
    
    
    
    55,912
    
    
    
    65,134Net-of-tax amount
    
    
    19,519
    
    
    
    (149,309
    )
    
    
    (91,225
    )
    
    
    (106,271
    )Change in fair value of
derivatives used for cash flow
hedges
    
    
    (340,378
    )
    
    
    866,961
    
    
    
    119,055
    
    
    
    342,788Tax effect
    
    
    129,344
    
    
    
    (334,432
    )
    
    
    (45,241
    )
    
    
    (130,259
    )Net-of-tax amount
    
    
    (211,034
    )
    
    
    532,529
    
    
    
    73,814
    
    
    
    212,529Total other comprehensive income (loss)
    
    $
    (191,515
    )
    
    $
    383,220
    
    
    $
    (17,411
    )
    
    $
    106,258Total comprehensive income
    
    $
    710,949
    
    
    $
    1,737,132
    
    
    $
    1,667,445
    
    
    $
    1,800,755
    10




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Forward-Looking Statements
 This Form 10-Q contains forward-looking statements that are statements that are not historical
or current facts. When used in this filing and in future filings by Atlantic Coast Federal
Corporation with the Securities and Exchange Commission, in Atlantic Coast Federal Corporations
press releases or other public or shareholder communications, or in oral statements made with the
approval of an authorized executive officer, the words or phrases, anticipate, would be, will
allow, intends to, will likely result, are expected to, will continue, is anticipated,
estimated, projected, or similar expressions are intended to identify, forward looking
statements. Such statements are subject to risks and uncertainties, including but not limited to
changes in economic conditions in Atlantic Coast Federal Corporations market area, changes in
policies by regulatory agencies, fluctuations in interest rates, demand for loans in Atlantic Coast
Federal Corporations market area, changes in the position of banking regulators on the adequacy of
our allowance for loan losses, and competition, all or some of which could cause actual results to
differ materially from historical earnings and those presently anticipated or projected.
 Atlantic Coast Federal Corporation wishes to caution readers not to place undue reliance on
any such forward-looking statements, which speak only as of the date made, and advise readers that
various factors, including regional and national economic conditions, substantial changes in levels
of market interest rates, credit and other risks of lending and investing activities, and
competitive and regulatory factors, could affect Atlantic Coast Federal Corporations financial
performance and could cause Atlantic Coast Federal Corporations actual results for future periods
to differ materially from those anticipated or projected.
 Atlantic Coast Federal Corporation does not undertake, and specifically disclaims any
obligation, to update any forward-looking statements to reflect occurrences or unanticipated events
or circumstances after the date of such statements.
 Critical Accounting Policies
   12




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Comparison of financial condition at June 30, 2005 and December 31, 2004
 General.
  June 30,
    
    December 31,
    
    Increase(decrease)2005
    
    2004
    
    Dollars
    
    Percentage(Dollars in thousands)AssetsCash and cash equivalents
    
    $
    51,555
    
    
    $
    25,708
    
    
    $
    25,847
    
    
    
    100.5
    %Other interest bearing investments
    
    
    0
    
    
    
    12,700
    
    
    
    (12,700
    )
    
    
    -100.0
    %Securities available for sale
    
    
    65,513
    
    
    
    53,363
    
    
    
    12,150
    
    
    
    22.8
    %Loans
    
    
    554,740
    
    
    
    521,667
    
    
    
    33,073
    
    
    
    6.3
    %Allowance for loan loss
    
    
    (4,189
    )
    
    
    (3,956
    )
    
    
    (233
    )
    
    
    5.9
    %Loans, net
    
    
    550,551
    
    
    
    517,711
    
    
    
    32,840
    
    
    
    6.3
    %Loans held for sale
    
    
    86
    
    
    
    81
    
    
    
    5
    
    
    
    6.2
    %Other assets
    
    
    41,594
    
    
    
    28,115
    
    
    
    13,479
    
    
    
    47.9
    %Total assets
    
    $
    709,299
    
    
    $
    637,678
    
    
    $
    71,621
    
    
    
    11.2
    %Liabilities and stockholders equityDepositsNon-interest bearing
    
    $
    37,296
    
    
    $
    34,799
    
    
    $
    2,497
    
    
    
    7.2
    %Interest bearing transaction accounts
    
    
    59,962
    
    
    
    30,582
    
    
    
    29,380
    
    
    
    96.1
    %Savings and money-market
    
    
    117,010
    
    
    
    124,259
    
    
    
    (7,249
    )
    
    
    -5.8
    %Time
    
    
    271,299
    
    
    
    246,042
    
    
    
    25,257
    
    
    
    10.3
    %Total deposits
    
    
    485,567
    
    
    
    435,682
    
    
    
    49,885
    
    
    
    11.4
    %Federal Home Loan Bank advances
    
    
    119,657
    
    
    
    100,314
    
    
    
    19,343
    
    
    
    19.3
    %Accrued expenses and other liabilities
    
    
    4,537
    
    
    
    2,982
    
    
    
    1,555
    
    
    
    52.1
    %Total liabilities
    
    
    609,761
    
    
    
    538,978
    
    
    
    70,783
    
    
    
    13.1
    %Stockholders equity
    
    
    99,538
    
    
    
    98,700
    
    
    
    838
    
    
    
    0.8
    %Total liabilities and stockholders equity
    
    $
    709,299
    
    
    $
    637,678
    
    
    $
    71,621
    
    
    
    11.2
    %
 Cash and cash equivalents
 Securities available for sale
 14




---



##### Table of Contents



Loans
 Increase(decrease)As ofAs of June
    
    % of total
    
    December
    
    % of total30, 2005
    
    loans
    
    31, 2004
    
    loans
    
    Dollars
    
    Percentage(Dollars In Thousands)Commercial non-mortgage
    
    $
    6,188
    
    
    
    1.1
    %
    
    $
    3,711
    
    
    
    0.7
    %
    
    $
    2,477
    
    
    
    66.7
    %Commercial real estate and multifamily
    
    
    67,193
    
    
    
    12.2
    %
    
    
    65,220
    
    
    
    12.6
    %
    
    
    1,973
    
    
    
    3.0
    %Construction loans
    
    
    14,324
    
    
    
    2.6
    %
    
    
    16,853
    
    
    
    3.2
    %
    
    
    (2,529
    )
    
    
    -15.0
    %One to four family residential mortgages
    
    
    316,680
    
    
    
    57.4
    %
    
    
    303,544
    
    
    
    58.4
    %
    
    
    13,136
    
    
    
    4.3
    %Consumer and other loansAutomobile
    
    
    34,516
    
    
    
    6.3
    %
    
    
    31,385
    
    
    
    6.0
    %
    
    
    3,131
    
    
    
    10.0
    %Unsecured
    
    
    18,740
    
    
    
    3.4
    %
    
    
    18,871
    
    
    
    3.6
    %
    
    
    (131
    )
    
    
    -0.7
    %Home equity
    
    
    70,653
    
    
    
    12.8
    %
    
    
    60,076
    
    
    
    11.6
    %
    
    
    10,577
    
    
    
    17.6
    %Land
    
    
    12,310
    
    
    
    2.2
    %
    
    
    12,078
    
    
    
    2.3
    %
    
    
    232
    
    
    
    1.9
    %Other
    
    
    10,697
    
    
    
    1.9
    %
    
    
    7,638
    
    
    
    1.5
    %
    
    
    3,059
    
    
    
    40.0
    %Total loans
    
    
    551,301
    
    
    
    
    
    
    
    519,376
    
    
    
    
    
    
    
    31,925
    
    
    
    6.1
    %Allowance for loan losses
    
    
    (4,189
    )
    
    
    -0.8
    %
    
    
    (3,956
    )
    
    
    -0.8
    %
    
    
    (233
    )
    
    
    5.9
    %Net deferred loan (fees) costs
    
    
    2,538
    
    
    
    0.5
    %
    
    
    1,473
    
    
    
    0.3
    %
    
    
    1,065
    
    
    
    72.3
    %Premiums on purchased loans
    
    
    901
    
    
    
    0.2
    %
    
    
    818
    
    
    
    0.2
    %
    
    
    83
    
    
    
    10.1
    %Loans, net
    
    $
    550,551
    
    
    
    
    
    
    $
    517,711
    
    
    
    
    
    
    $
    32,840
    
    
    
    6.3
    %
   15




---



##### Table of Contents



Allowance for Loan Losses.
 2005
    
    2004(In Thousands)Beginning balance
    
    $
    3,956
    
    
    $
    6,593Loans charged-off
    
    
    (1,284
    )
    
    
    (4,850
    )Recoveries
    
    
    417
    
    
    
    422Net charge-offs
    
    
    (867
    )
    
    
    (4,428
    )Provision for loan losses
    
    
    1,100
    
    
    
    1,653Ending balance
    
    $
    4,189
    
    

    $
    3,818
   16




---



##### Table of Contents



Other assets
 Deposits
 Borrowings
 17




---



##### Table of Contents



Stockholders Equity
   Comparison of Results of Operation for the Three Months Ended June 30, 2005 and 2004
 General
 18




---



##### Table of Contents



Average Balances, Net Interest Income, Yields Earned and Rates Paid
 2005
    
    2004
    
    2003Average
    
    
    
    
    
    Average
    
    Average
    
    
    
    
    
    Average
    
    Average
    
    
    
    
    
    AverageBalance
    
    Interest
    
    Yield /Cost
    
    Balance
    
    Interest
    
    Yield /Cost
    
    Balance
    
    Interest
    
    Yield /Cost(Dollars in Thousands)INTEREST-EARNING ASSETSLoans receivable(1)
    
    $
    546,900
    
    
    
    8,359
    
    
    
    6.11
    %
    
    $
    475,322
    
    
    
    7,473
    
    
    
    6.29
    %
    
    $
    401,664
    
    
    
    7808
    
    
    
    7.78
    %Securities (2)
    
    
    58,510
    
    
    
    459
    
    
    
    3.14
    %
    
    
    32,473
    
    
    
    128
    
    
    
    1.58
    %
    
    
    36,006
    

    
    
    158
    
    
    
    1.76
    %Other interest-earning assets (3)
    
    
    50,379
    
    
    
    401
    
    
    
    3.18
    %
    
    
    16,368
    
    
    
    69
    
    
    
    1.69
    %
    
    
    24,652
    
    
    
    83
    
    
    
    1.35
    %Total interest-earning assets
    
    
    655,789
    
    
    
    9,219
    
    
    
    5.62
    %
    
    
    524,163
    
    
    
    7,670
    
    
    
    5.85
    %
    
    
    462,322
    
    
    
    8,049
    
    
    
    6.96
    %Non-interest earning assets
    
    
    43,188
    
    
    
    
    
    
    
    
    
    
    
    31,430
    
    
    
    
    
    
    
    
    
    
    
    32,038Total assets
    
    $
    698,977
    
    
    
    
    
    
    
    
    
    
    $
    555,593
    
    
    
    
    
    
    
    
    
    
    $
    494,360INTEREST-BEARING LIABILITIESSavings deposits
    
    $
    62,783
    
    
    
    67
    
    
    
    0.43
    %
    
    $
    83,688
    
    
    
    92
    
    
    
    0.44
    %
    
    $
    75,227
    
    
    
    207
    
    
    
    1.10
    %Interest on interest bearing demand
    
    
    56,147
    
    
    
    278
    
    
    
    1.98
    %
    
    
    28,704
    
    
    
    64
    
    
    
    0.89
    %
    
    
    15,296
    
    
    
    48
    
    
    
    1.26
    %Money market accounts
    
    
    57,935
    
    
    
    392
    
    
    
    2.71
    %
    
    
    57,125
    
    
    
    181
    
    
    
    1.27
    %
    
    
    56,922
    
    
    
    253
    
    
    
    1.78
    %Time deposits
    
    
    262,522
    
    
    
    2,157
    
    
    
    3.29
    %
    
    
    220,286
    
    
    
    1,586
    
    
    
    2.88
    %
    
    
    231,374
    
    
    
    2061
    
    
    
    3.56
    %Federal Home Loan Bank advances
    
    
    117,570
    
    
    
    1,228
    
    
    
    4.18
    %
    
    
    83,169
    
    
    
    882
    
    
    
    4.24
    %
    
    
    42,286
    
    
    
    521
    
    
    
    4.93
    %Total interest-bearing liabilities
    
    
    556,957
    
    

    
    4,122
    
    
    
    2.96
    %
    
    
    472,972
    
    
    
    2,805
    
    
    
    2.37
    %
    
    
    421,105
    
    
    
    3,090
    
    
    
    2.94
    %Non-interest bearing liabilities
    
    
    41,292
    
    
    
    
    
    
    
    
    
    
    
    37,929
    
    
    
    
    
    
    
    
    
    
    
    32,500Total liabilities
    
    
    598,249
    
    
    
    
    
    
    
    
    
    
    
    510,901
    
    
    
    
    
    
    
    
    
    
    
    453,605Stockholders equity
    
    
    100,728
    
    
    
    
    
    
    
    
    
    
    
    44,692
    
    
    
    
    
    
    
    
    
    
    
    40,755Total liabilities and stockholders equity
    
    $
    698,977
    
    
    
    
    
    
    
    
    
    
    $
    555,593
    
    
    
    
    
    
    
    
    
    
    $
    494,360Net interest income
    
    
    
    
    
    $
    5,097
    
    
    
    
    
    
    
    
    
    
    $
    4,865
    
    
    
    
    
    
    
    
    
    
    $
    4,959Net interest spread
    
    
    
    
    
    
    
    
    
    
    2.66
    %
    
    
    
    
    
    
    
    
    
    
    3.48
    %
    
    
    
    
    
    
    
    
    
    
    4.03
    %Net earning assets
    
    $
    98,832
    
    
    
    
    
    
    
    
    
    
    $
    51,191
    
    
    
    
    
    
    
    
    
    
    $
    41,217Net interest margin (4)
    
    
    
    
    
    
    
    
    
    
    3.11
    %
    
    
    
    
    
    
    
    
    
    
    3.71
    %
    
    
    
    
    
    
    
    
    
    
    4.29
    %Average interest-earning assets to
average interest-bearing liabilities
    
    
    
    
    
    
    117.74
    %
    
    
    
    
    
    
    
    
    
    
    110.82
    %
    
    
    
    
    
    
    
    
    
    
    109.79
    %
 
 (1)
    
    Calculated net of deferred fees and loss reserves. 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 terms deposits with other financial
institutions.(4)
    
    Net interest income divided by average interest-earning assets. 19




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##### Table of Contents



Rate/Volume Analysis
 Three Months Ended June 30,2005 vs. 2004
    
    2004 vs. 2003Increase/(Decrease)
    
    Total
    
    Increase/(Decrease)
    
    TotalDue to
    
    Increase
    
    Due to
    
    IncreaseVolume
    
    Rate
    
    (Decrease)
    
    Volume
    
    Rate
    
    (Decrease)(Dollars in Thousands)Interest-Earning AssetsLoans receivable
    
    $
    1,099
    
    
    $
    (213
    )
    
    $
    886
    
    
    $
    1,298
    
    
    $
    (1,633
    )
    
    $
    (335
    )Securities
    
    
    148
    
    
    
    183
    
    
    
    331
    
    
    
    (15
    )
    
    
    (15
    )
    
    
    (30
    )Other interest-earning assets
    
    
    233
    
    
    
    99
    
    
    
    332
    
    
    
    (32
    )
    
    
    18
    
    
    
    (14
    )Total interest-earning assets
    
    
    1,480
    
    
    
    69
    
    
    
    1,549
    
    
    
    1,251
    
    
    
    (1,630
    )
    
    
    (379
    )Interest-Bearing Liabilities:Savings deposits
    
    
    (23
    )
    
    
    (2
    )
    
    
    (25
    )
    
    
    21
    
    
    
    (136
    )
    
    
    (115
    )Interest bearing demand accounts
    
    
    94
    
    
    
    120
    
    
    
    214
    
    
    
    33
    
    
    
    (17
    )
    
    
    16Money market accounts
    
    
    3
    
    
    
    208
    
    
    
    211
    
    
    
    1
    
    
    
    (73
    )
    
    
    (72
    )Time deposits
    
    
    329
    
    
    
    242
    
    
    
    571
    
    
    
    (95
    )
    
    
    (380
    )
    
    
    (475
    )FHLB advances
    
    
    360
    
    
    
    (14
    )
    
    
    346
    
    
    
    443
    
    
    
    (81
    )
    
    
    361Total interest-bearing liabilities
    
    
    763
    
    
    
    554
    
    
    
    1,317
    
    
    
    403
    
    
    
    (688
    )
    
    
    (285
    )Net interest income
    
    $
    717
    
    
    $
    (485
    )
    
    $
    232
    
    
    $
    848
    
    
    $
    (942
    )
    
    $
    (94
    )
 Interest Income.
  20




---



##### Table of Contents



Interest Expense.
 Net Interest Income.
 Provision for Loan Losses.
 21




---



##### Table of Contents



Non-interest income
 For the three months ended June 30,
    
    Increase(decrease)2005
    
    2004
    
    Dollars
    
    Percentage(Dollars in Thousands)Service charges and fees
    
    $
    1,233
    
    
    $
    982
    
    
    
    251
    
    
    
    25.6
    %Gain on sale of real estate mortgages
held for sale
    
    
    53
    
    
    
    2
    
    
    
    51
    
    
    
    2,550.0
    %Gain(loss) on sale of securities
available for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Gain(loss) on sale of foreclosed assets
    
    
    41
    
    
    
    19
    
    
    
    22
    
    
    
    115.8
    %Commission income
    
    
    103
    
    
    
    82
    
    
    
    21
    
    
    
    25.6
    %Interchange fees
    
    
    193
    
    
    
    166
    
    
    
    27
    
    
    
    16.3
    %Other
    
    
    172
    
    
    
    81
    
    
    
    91
    
    
    
    112.3
    %$
    1,795
    
    
    $
    1,332
    
    
    $
    463
    
    
    
    34.8
    %
   22




---



##### Table of Contents



Non-interest expense
 For the three months ended June 30,
    
    Increase(decrease)2005
    
    2004
    
    Dollars
    
    Percentage(Dollars in Thousands)Compensation and benefits
    
    $
    2,352
    
    
    $
    1,835
    
    
    $
    517
    
    
    
    28.2
    %Occupancy and equipment
    
    
    434
    
    
    
    347
    
    
    
    87
    
    
    
    25.1
    %Data processing
    
    
    292
    
    
    
    265
    
    
    
    27
    
    
    
    10.3
    %Advertising
    
    
    173
    
    
    
    91
    
    
    
    82
    
    
    
    90.1
    %Outside professional services
    
    
    643
    
    
    
    442
    
    
    
    201
    
    
    
    45.8
    %Interchange charges
    
    
    154
    
    
    
    177
    
    
    
    (23
    )
    
    
    -13.0
    %Collection expense and repossessed
asset losses
    
    
    84
    
    
    
    38
    
    
    
    46
    
    
    
    121.1
    %Telephone
    
    
    133
    
    
    
    136
    
    
    
    (3
    )
    
    
    -2.2
    %Other
    
    
    712
    
    
    
    638
    
    
    
    74
    
    
    
    11.6
    %$
    4,977
    
    
    $
    3,969
    
    
    $
    1,008
    
    
    
    25.4
    %
   23




---



##### Table of Contents



Income Tax Expense.
 24




---



##### Table of Contents



Comparison of Results of Operation for the Six Months Ended June 30, 2005 and 2004
 General
 Average Balances, Net Interest Income, Yields Earned and Rates Paid
 2005
    
    2004
    
    2003Average
    
    
    
    
    
    Average
    
    Average
    
    
    
    
    
    Average
    
    Average
    
    
    
    
    
    AverageBalance
    
    Interest
    
    Yield /Cost
    
    Balance
    
    Interest
    
    Yield /Cost
    
    Balance
    
    Interest
    
    Yield /Cost(Dollars in Thousands)INTEREST-EARNING ASSETSLoans receivable(1)
    
    $
    539,213
    
    
    
    16,202
    
    
    
    6.01
    %
    
    $
    460,650
    
    
    
    14,826
    
    
    
    6.44
    %
    
    $
    396,059
    
    
    
    15592
    
    
    
    7.87
    %Securities (2)
    
    
    55,511
    
    
    
    804
    
    
    
    2.90
    %
    
    
    29,663
    
    
    
    253
    
    
    
    1.71
    %
    
    
    30,685
    
    
    
    330
    
    
    
    2.15
    %Other interest-earning assets (3)
    
    
    43,106
    
    
    
    656
    
    
    
    3.04
    %
    
    
    16,052
    
    
    
    131
    
    
    
    1.63
    %
    
    
    20,790
    
    
    
    149
    
    
    
    1.43
    %Total interest-earning assets
    
    
    637,830
    
    
    
    17,662
    
    
    
    5.54
    %
    
    
    506,365
    
    
    
    15,210
    
    
    
    6.01
    %
    
    
    447,534
    
    
    
    16,071
    
    
    
    7.18
    %Non-interest earning assets
    
    
    38,616
    
    
    
    
    
    
    
    
    
    
    
    31,763
    
    
    
    
    
    
    
    
    
    
    
    30,104Total assets
    
    $
    676,446
    
    
    
    
    
    
    
    
    
    
    $
    538,128
    
    
    
    
    
    
    
    
    
    
    $
    477,638INTEREST-BEARING LIABILITIESSavings deposits
    
    $
    64,761
    
    
    
    142
    
    
    
    0.44
    %
    
    $
    79,869
    
    
    
    241
    
    
    
    0.60
    %
    
    $
    74,851
    
    
    
    426
    
    
    
    1.14
    %Interest on interest bearing demand
    
    
    45,622
    
    
    
    382
    
    
    
    1.67
    %
    
    
    23,936
    
    
    
    117
    
    
    
    0.98
    %
    
    
    14,690
    
    
    
    104
    
    
    
    1.42
    %Money market accounts
    
    
    57,590
    
    
    
    729
    
    
    
    2.53
    %
    
    
    58,032
    
    
    
    379
    
    
    
    1.31
    %
    
    
    50,106
    
    
    
    477
    
    
    
    1.90
    %Time deposits
    
    
    256,822
    
    
    
    4,066
    
    
    
    3.17
    %
    
    
    215,769
    
    
    
    3,171
    
    
    
    2.94
    %
    
    
    224,389
    
    
    
    4114
    
    
    
    3.67
    %Federal Home Loan Bank advances
    
    
    109,764
    
    
    
    2,281
    
    
    
    4.16
    %
    
    
    79,430
    
    
    
    1,708
    
    
    
    4.30
    %
    
    
    43,004
    
    
    
    1055
    
    
    
    4.91
    %Total interest-bearing liabilities
    
    
    534,559
    
    
    
    7,600
    
    
    
    2.84
    %
    
    
    457,036
    
    
    
    5,616
    
    
    
    2.46
    %
    
    
    407,040
    
    
    
    6,176
    
    
    
    3.03
    %Non-interest bearing liabilities
    
    
    41,703
    
    
    
    
    
    
    
    
    
    
    
    36,551
    
    
    
    
    
    
    
    
    
    
    
    30,229Total liabilities
    
    
    576,262
    
    
    
    
    
    
    
    
    
    
    
    493,587
    
    
    
    
    
    
    
    
    
    
    
    437,269Stockholders equity
    
    
    100,184
    
    
    
    
    
    
    
    
    
    
    
    44,541
    
    
    
    
    
    
    
    
    
    
    
    40,369Total liabilities and stockholders equity
    
    $
    676,446
    
    
    
    
    
    
    
    
    
    
    $
    538,128
    
    
    
    
    
    
    
    
    
    
    $
    477,638Net interest income
    
    
    
    
    
    $
    10,062
    
    
    
    
    
    
    
    
    
    
    $
    9,594
    
    
    
    
    
    
    
    
    
    
    $
    9,895Net interest spread
    
    
    
    
    
    
    
    
    
    
    2.69
    %
    
    
    
    
    
    
    
    
    
    
    3.55
    %
    
    
    
    
    
    
    
    
    
    
    4.15
    %Net earning assets
    
    $
    103,271
    
    
    
    
    
    
    
    
    
    
    $
    49,329
    
    
    
    
    
    
    
    
    
    
    $
    40,494Net interest margin (4)
    
    
    
    
    
    
    
    
    
    
    3.17
    %
    
    
    
    
    
    
    
    
    
    
    3.79
    %
    
    
    
    
    
    
    
    
    
    
    4.42
    %Average interest-earning assets to
average interest-bearing liabilities
    
    
    
    
    
    
    119.32
    %
    
    
    
    
    
    
    
    
    
    
    110.79
    %
    
    
    
    
    
    
    
    
    
    
    109.95
    %
 
 (1)
    Calculated net of deferred fees and loss reserves. 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. 25




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##### Table of Contents



Rate/Volume Analysis
 Six Months Ended June 30,2005 vs. 2004
    
    2004 vs. 2003Increase/(Decrease)
    
    Total
    
    Increase/(Decrease)
    
    TotalDue to
    
    Increase
    
    Due to
    
    IncreaseVolume
    
    Rate
    
    (Decrease)
    
    Volume
    
    Rate
    
    (Decrease)(In Thousands)Interest-Earning AssetsLoans receivable
    
    $
    2,408
    
    
    $
    (1,032
    )
    
    $
    1,376
    
    
    $
    2,324
    
    
    $
    (3,090
    )
    
    $
    (766
    )Securities
    
    
    306
    
    
    
    245
    
    
    
    551
    
    
    
    (11
    )
    
    
    (66
    )
    
    
    (77
    )Other interest-earning assets
    
    
    347
    
    
    
    178
    
    
    
    525
    
    
    
    (37
    )
    
    
    19
    
    
    
    (18
    )Total interest-earning assets
    
    
    3,061
    
    
    
    (609
    )
    
    
    2,452
    
    
    
    2,276
    
    
    
    (3,137
    )
    
    
    (861
    )Interest-Bearing Liabilities:Savings deposits
    
    
    (41
    )
    
    
    (58
    )
    
    
    (99
    )
    
    
    27
    
    
    
    (212
    )
    
    
    (185
    )Interest bearing demand accounts
    
    
    148
    
    
    
    117
    
    
    
    265
    
    
    
    52
    
    
    
    (39
    )
    
    
    13Money market accounts
    
    
    (3
    )
    
    
    353
    
    
    
    350
    
    
    
    68
    
    
    
    (166
    )
    
    
    (98
    )Time deposits
    
    
    637
    
    
    
    258
    
    
    
    895
    
    
    
    (153
    )
    
    
    (790
    )
    
    
    (943
    )FHLB advances
    
    
    632
    
    
    
    (59
    )
    
    
    573
    
    
    
    797
    
    
    
    (144
    )
    
    
    653Total interest-bearing liabilities
    
    
    1,373
    
    
    
    611
    
    
    
    1,984
    
    
    
    791
    
    
    
    (1,351
    )
    
    
    (560
    )Net interest income
    
    $
    1,688
    
    
    $
    (1,220
    )
    
    $
    468
    
    
    $
    1,485
    
    
    $
    (1,786
    )
    
    $
    (301
    )
 Interest Income.
  26




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##### Table of Contents



Interest Expense.
 Net Interest Income.
 Provision for Loan Losses.
 27




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##### Table of Contents



Non-interest income
 For the six months ended June 30,
    
    Increase(decrease)2005
    
    2004
    
    Dollars
    
    Percentage(Dollars in Thousands)Service charges and fees
    
    $
    2,129
    
    
    $
    1,802
    
    
    $
    327

    
    
    
    18.1
    %Gain on sale of real estate mortgages
held for sale
    
    
    65
    
    
    
    169
    
    
    
    -104
    
    
    
    -61.5
    %Gain(loss) on sale of securities
available for sale
    
    
    0
    
    
    
    8
    
    
    
    -8
    
    
    
    -100.0
    %Gain(loss) on sale of foreclosed assets
    
    
    42
    
    
    
    55
    
    
    
    -13
    
    
    
    -23.6
    %Commission income
    
    
    202
    
    
    
    168
    
    
    
    34
    
    
    
    20.2
    %Interchange fees
    
    
    373
    
    
    
    320
    
    
    
    53
    
    
    
    16.6
    %Other
    
    
    271
    
    
    
    164
    
    
    
    107
    
    
    
    65.2
    %$
    3,082
    
    
    $
    2,686
    
    
    $
    396
    
    
    
    14.7
    %
    28




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##### Table of Contents



Non-interest expense
 For the six months ended June 30,
    
    Increase(decrease)2005
    
    2004
    
    Dollars
    
    Percentage(In Thousands)Compensation and benefits
    
    $
    4,584
    
    
    $
    3,822
    
    
    $
    762
    
    
    
    19.9
    %Occupancy and equipment
    
    
    808
    
    
    
    692
    
    
    $
    116
    
    
    
    16.8
    %Data processing
    
    
    542
    
    
    
    555
    
    
    
    (13
    )
    
    
    -2.3
    %Advertising
    
    
    280
    
    
    
    178
    
    
    
    102
    
    
    
    57.3
    %Outside professional services
    
    
    1,248
    
    
    
    738
    
    
    
    510
    
    
    
    69.1
    %Interchange charges
    
    
    301
    
    
    
    433
    
    
    
    (132
    )
    
    
    -30.5
    %Collection expense and repossessed
asset losses
    
    
    163
    
    
    
    88
    
    
    
    75
    
    
    
    85.2
    %Telephone
    
    
    249
    
    
    
    270
    
    
    
    (21
    )
    
    
    -7.8
    %Other
    
    
    1,309
    
    
    
    1,228
    
    
    
    81
    
    
    
    6.6
    %$
    9,484
    
    
    $
    8,004
    
    
    $
    1,480
    
    
    
    18.5
    %
   29




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##### Table of Contents



Income Tax Expense
 30




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##### Table of Contents



31




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##### Table of Contents



32




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##### Table of Contents



Legal proceedings
 The bankruptcy litigation involving the seller of the pool of
leases the Company purchased in 2001, was discharged in March of
2005. In June, 2005, Atlantic Coast Federal received
approximately $207,000 from the bankruptcy trustee as the final
distribution of escrowed proceeds. Litigation continues with the
surety, RLI, Inc., and the Company continues to pursue the full balance of the unpaid contract amount.
 
 Unregistered Sales of Equity Securities and Use of Proceeds
 None
 
 Defaults Upon Senior Securities
 None
 
 Submission of Matters to a Vote of Security Holders
  For
    
    WithheldJon C. Parker, Sr.
    
    
    13,662,959
    
    
    
    31,973Robert J. Larison, Jr.
    
    
    13,663,899
    
    
    
    31,033W. Eric Palmer
    
    
    13,654,832
    
    
    
    40,100Thomas F. Beeckler
    
    
    13,659,132
    
    
    
    35,800Frederick D. Franklin, Jr.
    
    
    13,654,832
    
    
    
    40,100
   BrokerFor
    
    
    
    
    
    Against
    
    Abstain
    
    Non-Vote
    
    Withheld11,465,407
    
    
    
    
    
    
    335,783
    
    
    
    35,364
    
    
    
    1,858,378
    
    
    
    0
 33




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##### Table of Contents



BrokerFor
    
    
    
    
    
    Against
    
    Abstain
    
    Non-Vote
    
    Withheld11,071,647
    
    
    
    
    
    
    720,014
    
    
    
    44,893
    
    
    
    1,858,378
    
    
    
    0
  BrokerFor
    
    
    
    
    
    Against
    
    Abstain
    
    Non-Vote
    
    Withheld13,680,237
    
    
    
    
    
    
    4,540
    
    
    
    10,155
    
    
    
    0
    
    
    
    0
 
 Other Information
  
 Exhibits
  31.1
    
    Certification of Chief Executive Officer Pursuant to Rule
13a-14(a)/15d-14(a)31.2
    
    Certification of Chief Financial Officer Pursuant to Rule
13a-14(a)/15d-14(a)32.1
    
    Certification of Chief Executive Officer Pursuant to 18
U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.32.2
    
    Certification of Chief Financial Officer Pursuant to 18
U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
 34




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##### Table of Contents



ATLANTIC COAST FEDERAL CORPORATION(Registrant)Date: August 15, 2005
    
    /s/ Robert J. Larison, JrRobert J. Larison, Jr.  President and ChiefExecutive OfficerDate: August 15, 2005
    
    /s/ Jon C. Parker, Sr.Jon C. Parker, Sr.  Vice  President andChief Financial Officer
 35