Atlantic Coast Financial Corporation ("Atlantic Coast" or the "Company," NASDAQ: ACFC), the holding company for Atlantic Coast Bank (the "Bank"), today announced that the Company continues to expand its presence in Florida by opening commercial banking and mortgage origination offices in Orlando and Tampa. The Company recently reported year-over-year loan growth of 28%, reflecting ongoing efforts to extend the reach of its business, while strengthening existing client relationships.

Additionally, the Company announced that, in order to better align its footprint with long-term strategic goals, it has agreed to sell its branch in Garden City, Georgia, to Queensborough National Bank & Trust Company, headquartered in Louisville, Georgia. In the transaction, which is subject to regulatory approval, Queensborough will acquire certain assets and assume certain liabilities of the Bank. The branch sale, which is anticipated to close in the first quarter of 2016, is not expected to have a material impact on the Company's assets, loan portfolio or earnings.

Despite the sale of this retail branch, the Company intends to continue expanding its commercial banking and mortgage origination efforts in the Savannah market.

Commenting on the Company's strategic efforts in both Florida and Georgia, John K. Stephens, Jr., President and Chief Executive Officer, said, "As the Company executes its growth initiatives, we remain focused on evaluating all strategic alternatives to enhance our long-term trajectory. We believe continued expansion in attractive Florida markets will allow us to build our business, increase our visibility with customers and leverage our infrastructure, and we are excited by the opportunities we see in both Orlando and Tampa.

"The sale of our Garden City branch gives us the ability to concentrate on lending in the market area, while streamlining our retail branch operations for greater efficiency," Stephens added. "As always, our actions are guided by what we believe are the best interests of our customers, stockholders, and employees. Furthermore, we remain focused on revenue acceleration, company growth, and market expansion, all of which are supported by the unwavering commitment of our team members."

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. Investors may obtain additional information about Atlantic Coast Financial Corporation on the Internet at www.AtlanticCoastBank.net, under Investor Relations.

Forward-looking Statements

Statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions, and involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally are identifiable by the use of forward-looking terminology such as "believe," "expects," "may," "will," "should," "plan," "intend," "on condition," "target," "estimates," "preliminary," or "anticipates" or the negative thereof or comparable terminology, or by discussion of strategy or goals or other future events, circumstances or effects. Moreover, forward-looking statements in this release include, but are not limited to, those relating to: achieving our long-term strategic goals; the closing of the sale of our branch in the first quarter of 2016; the ability to expand our presence in the Savannah market; the ability to evaluate all of our strategic alternatives; continued revenue acceleration, overall growth of the Company, and market expansion. The Company's consolidated financial results and the forward-looking statements could be affected by many factors, including but not limited to: general economic trends and changes in interest rates; increased competition; changes in demand for financial services; the state of the banking industry generally; uncertainties associated with newly developed or acquired operations; market disruptions; and cyber-security risks. Further information relating to factors that may impact the Company's results and forward-looking statements are disclosed in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained in this release are made as of the date of this release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.