Atlantic Coast Financial Corporation Announces Settlement of Litigation Related to the Company's Pending Merger with Bond Street

  Atlantic Coast Financial Corporation Announces Settlement of Litigation
  Related to the Company's Pending Merger with Bond Street Holdings

   Company Also Announces That Proxy Advisory Firm ISS Has Recommended That
                   Stockholders Approve the Pending Merger

Business Wire

JACKSONVILLE, Fla. -- June 5, 2013

Atlantic Coast Financial Corporation (the "Company" or "Atlantic Coast
Financial")(NASDAQ symbol: ACFC), the holding company for Atlantic Coast Bank
(the "Bank"), today announced that the Company and the Bank have signed a
Memorandum of Understanding ("MOU") to settle certain class action litigation
related to Atlantic Coast Financial's pending merger with Bond Street
Holdings, Inc. ("Bond Street"). As part of the MOU, the Company has agreed to
make available additional information to Atlantic Coast Financial
stockholders. The Company and other defendants continue to deny any wrongdoing
in this matter and have entered into this settlement merely to eliminate the
time, expense and uncertainties inherent in further litigation.

The previously announced merger between the Company and Bond Street dated
February25, 2013, and as amended on April 23, 2013, provides for a cash
payment of $5.00 per share for each share owned by stockholders. The merger
has been approved by the Federal Reserve Bank of Atlanta, but remains subject
to additional regulatory approvals, the approval of stockholders of the
Company at a special meeting called for that purpose on June 11, 2013, and
other customary closing conditions. Upon completion of the transaction, which
is expected to occur by the end of June 2013 pending the aforementioned
conditions, Atlantic Coast Bank will merge into Bond Street's banking
subsidiary, Florida Community Bank, N.A., 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.

Separately, the Company noted that proxy advisory firm Institutional
Shareholder Services ("ISS") recently recommended that the Company's
stockholders vote for the pending merger with Bond Street. In its report, ISS
noted the Board's extensive evaluation of strategic alternatives, that the
merger consideration of $5.00 per share represented a significant one-day and
60-day premium over the closing share price on the last trading day prior to
the merger announcement, and that the offer price is well above the valuation
range derived by the Company's financial advisor. ISS also noted that failure
to complete the merger with Bond Street could expose the Company to additional
regulatory restrictions and/or corrective actions.

About the Company

Atlantic Coast Financial Corporation is the holding company for Atlantic Coast
Bank, a federally chartered and insured stock savings bank. It is a
community-oriented financial institution serving northeastern Florida and
southeastern Georgia markets through 12 locations, with a focus on the
Jacksonville metropolitan area. Investors may obtain additional information
about Atlantic Coast Financial Corporation on the Internet at
www.AtlanticCoastBank.net, under Investor Information.

Forward-looking Statements

This news release contains forward-looking statements within the meaning of
the federal securities laws. Statements in this release that are not strictly
historical are forward-looking and are based upon current expectations that
may differ materially from actual results. These forward-looking statements,
identified by words such as "will," "expected," "believe," and "prospects,"
involve risks and uncertainties that could cause actual results to differ
materially from those anticipated by the statements made herein. These risks
and uncertainties involve general economic trends and changes in interest
rates, increased competition, changes in consumer demand for financial
services, the possibility of unforeseen events affecting the industry
generally, the uncertainties associated with newly developed or acquired
operations, market disruptions and other effects of terrorist activities, and
the possibility that the aforementioned merger with Bond Street does not close
when expected or at all because required regulatory, stockholder or other
approvals and other conditions to closing are not received or satisfied on a
timely basis or at all. The Company undertakes no obligation to release
revisions to these forward-looking statements publicly to reflect events or
circumstances after the date hereof or to reflect the occurrence of unforeseen
events, except as required to be reported under the rules and regulations of
the Securities and Exchange Commission.

Additional Information

This communication is being made with respect to a proposed business
combination transaction involving Atlantic Coast Financial Corporation and
Bond Street Holdings, Inc. In connection with the proposed transaction,
Atlantic Coast Financial Corporation has filed with the Securities and
Exchange Commission (the "SEC") a definitive proxy statement that was
distributed to the stockholders of the Company in connection with their vote
on the proposed transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION
REGARDING THE PROPOSED TRANSACTION, STOCKHOLDERS OF ATLANTIC COAST FINANCIAL
CORPORATION ARE URGED TO READ ALL FILINGS MADE BY THE COMPANY IN CONNECTION
WITH THE TRANSACTION, INCLUDING THE PROXY STATEMENT AND THE SUPPLEMENT TO THE
PROXY STATEMENT, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION. The definitive proxy statement was mailed to
stockholders of Atlantic Coast Financial Corporation. Stockholders may obtain
copies of all documents filed with the SEC regarding this transaction, free of
charge, at the SEC's website (www.sec.gov) and by accessing Atlantic Coast
Financial Corporation's website (www.atlanticcoastbank.net) under the heading
"Investor Relations" and then under the link "SEC Filings." These documents
may also be obtained free of charge from Atlantic Coast Financial Corporation
by requesting them in writing to Atlantic Coast Financial Corporation, 10151
Deerwood Park Blvd., Building 200, Suite 100, Jacksonville, Florida 32256;
Attention: Thomas B. Wagers, Sr., Chief Financial Officer, or by telephone at
(904) 565-8570.

Atlantic Coast Financial Corporation and its directors and executive officers
may be deemed participants in the solicitation of proxies from Atlantic Coast
Financial Corporation's stockholders in connection with this transaction.
Information about the directors and executive officers of Atlantic Coast
Financial Corporation and information about other persons who may be deemed
participants in this transaction are included in the proxy statement. You can
find information about Atlantic Coast Financial Corporation's executive
officers and directors in Atlantic Coast Financial Corporation's definitive
proxy statement filed with the SEC on May 13, 2013, and in the Company's
Annual Report on Form 10-K filed with the SEC on April 1, 2013, copies of
which are available at the SEC's website or from Atlantic Coast Financial
Corporation as described above.

Contact:

Atlantic Coast Financial Corporation
Thomas B. Wagers, Sr., 904-565-8570
Chief Financial Officer
 
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