Exhibit 99.1

Atlantic Coast Financial Corporation Reports Third Quarter 2013 Results

JACKSONVILLE, Fla.--(BUSINESS WIRE)--October 29, 2013--Atlantic Coast Financial Corporation (the "Company") (NASDAQ: ACFC), the holding company for Atlantic Coast Bank (the "Bank"), today reported financial results for the quarter and nine months ended September 30, 2013.

For the third quarter of 2013, the Company reported a net loss of $0.9 million or $0.38 per diluted share compared with a net loss of $1.7 million or $0.66 per diluted share in the year-earlier quarter and a net loss of $1.6 million or $0.62 per diluted share in the second quarter of 2013. For the first nine months of 2013, the net loss totaled $4.5 million or $1.81 per diluted share compared with a net loss in the year-earlier period of $6.4 million or $2.55 per diluted share.

The Company's results through September 30, 2013, included costs associated with the previously announced merger with Bond Street Holdings, Inc., which stockholders rejected at a special meeting held on June 11, 2013. In order to more clearly assess the fundamental operations of the Company, management believes it is appropriate to adjust the reported net losses for the first nine months of 2013 to exclude these merger-related costs. On this as-adjusted basis, the adjusted net loss for the nine months ended September 30, 2013, was $3.2 million or $1.29 per diluted share. Adjusted net loss is a non-GAAP measurement; see reconciliation of GAAP and non-GAAP measures at page 7 of this release.

Significant developments in the third quarter included:

• The net loss decreased 44% to $0.9 million for the third quarter of 2013 from $1.7 million for the same quarter in 2012 and decreased 40% from $1.6 million for the second quarter of 2013. The adjusted net loss decreased 49% to $3.2 million for the nine months ended September 30, 2013, from $6.4 million for the nine months ended September 30, 2012.
• Non-performing assets decreased 27% to $25.1 million or 3.51% of total assets at September 30, 2013, from $34.2 million or 4.35% of total assets at September 30, 2012, and decreased 1% from $25.2 million or 3.40% of total assets at June 30, 2013.
• Annualized net charge-offs to average loans decreased to 1.87% for the third quarter of 2013 from 2.78% for the year-earlier third quarter and increased from 1.79% in the second quarter of 2013.
• Total assets were $714.1 million at September 30, 2013, compared with $772.6 million at December 31, 2012, as the Company has continued to manage asset size consistent with its overall capital management strategy.
• On September 10, 2013, the Company named John K. Stephens, Jr. as the new Chief Executive Officer of the Company and the Bank; Stephens, who brings with him over 25 years of banking experience, also will serve as a director of the Company and the Bank. Stephens' appointment is contingent upon receipt of regulatory non-objection. Additionally, the Boards of Directors of the Company and the Bank each has four new members, all with extensive management experience and three of whom have served as executives of large community or national banks. The appointment of James D. Hogan, one of the new directors, is contingent upon receipt of regulatory non-objection.

Regulatory Capital

The Company has experienced steady erosion of its capital due to significant net losses over the past five consecutive years. Effective August 10, 2012, the Bank's Board of Directors agreed to the issuance of a Consent Order (the "Order") by the Office of the Comptroller of the Currency. Among other things, the Order called for the Bank to achieve and maintain a Tier 1 capital ratio of 9% of adjusted total assets and a total risk-based capital ratio of 13% of risk-weighted assets by December 31, 2012. The Bank was not in compliance with the capital levels required by the Order at December 31, 2012, and remained non-compliant at September 30, 2013.

Following the rejection of a proposed merger of the Company with Bond Street Holdings, Inc. by stockholders in June 2013, the Company's Board of Directors began evaluating various strategic alternatives to raise capital. Currently, the Company plans to pursue additional equity capital through a public offering or private placement.

• The increase in the key capital measures as of September 30, 2013, was primarily due to the continued decrease in the Company's asset balance, partially offset by the impact of the Company's 2013 third quarter net loss on equity.

• Non-performing loans increased in the third quarter of 2013 compared with the second quarter of 2013, which we also refer to as the linked quarter, primarily due to a $1.5 million real estate secured commercial loan that is now classified as non-performing, partially offset by transfers of $0.9 million into other real estate owned ("OREO"). OREO decreased over the linked quarter due to $2.2 million of sales of OREO, partially offset by the aforementioned transfers from non-performing loans.
• Overall, the Company continues to see a slowing in the pace of loans being reclassified as non-performing, particularly in categories such as one-to-four family residential and home equity loans.

• The increase in troubled debt restructurings in the third quarter of 2013 compared with the prior-year quarter primarily reflected the renewal of a $5.5 million land loan that was previously reported as impaired but performing.

• The decline in the provision for loan losses in the third quarter and for the first nine months of 2013 compared with the year-earlier quarter and nine-month period reflected reduced non-performing loans and a decline in early-stage delinquencies of one-to-four family residential and home equity loans. The decline during the first nine months of 2013 compared to first nine months of 2012 also reflected provisioning in the 2012 period for certain residential loans charged-off in the second quarter of 2012 and disposed of through a bulk sale, and two commercial loans that were charged-off in the first quarter of 2012 and disposed of through sales.
• The decrease in net charge-offs in the third quarter of 2013 compared with the third quarter of 2012 primarily reflected $0.4 million less in charge-offs in the third quarter of 2013 related to one-to-four family residential loans and home equity loans, and $0.6 million less in charge-offs related to construction loans in the third quarter of 2013.
• The decrease in net charge-offs in the first nine months of 2013 compared with the first nine months of 2012 primarily reflected $4.7 million less in charge-offs in 2013 related to one-to-four family residential loans and home equity loans, $1.2 million less in charge-offs in 2013 for collateral-dependent commercial real estate loans, $0.6 million less in charge-offs related to construction loans in the first nine months of 2013, $0.6 million less in charge-offs related to residential land loans in 2013, and $1.0 million less in charge-offs in the first nine months of 2013 related to collateral-dependent commercial land loans.

• The decline in net interest income for the third quarter of 2013 compared with the linked quarter and year-earlier quarter, as well as the decline in net interest income for the first nine months of 2013 compared with the same period in 2012, primarily reflected a reduction in portfolio and other loans outstanding, as the Company continues to attempt to preserve capital, and the impact of lower interest rates on funds reinvested in investment securities, partially offset by decreased interest expense for deposits and Federal Home Loan Bank of Atlanta ("FHLB") debt.

• Net interest margin for the third quarter and first nine months of 2013 declined compared with the same periods in 2012 due to the impact of lower interest rates on funds reinvested in investment securities, partially offset by reductions in the cost of deposits and lower interest expense for FHLB advances following prepayment of debt in the first quarter of 2013 totaling $25.0 million that had scheduled maturities in the third and fourth quarters of 2013. Net interest margin for the third quarter of 2013 declined compared to the linked quarter due to the impact of lower interest rates on funds reinvested in investment securities.
• The increase in yield on investment securities for the third quarter of 2013 compared with the second quarter of 2013 was primarily due to the purchase of $19.5 million of investment securities with a yield greater than the average yield of our portfolio. The decline in yield on investment securities for the third quarter and first nine months of 2013 compared with the year-earlier periods was due to lower yields on reinvested securities and increased amortization of purchase premiums due to higher prepayments.
• The cost of deposits for the third quarter and first nine months of 2013 declined compared with the same periods in 2012 due to planned re-pricing of deposit products consistent with prevailing rates in the Bank's market during the second half of 2012. On a linked-quarter basis, the cost of deposits was unchanged as deposit pricing has stabilized.

• The decrease in non-interest income for the third quarter and first nine months of 2013 compared with the year-earlier periods primarily reflected a decrease in gains on the sale of securities, as well as a decrease in gains on the sale of loans held-for-sale from mortgage origination activity following a reorganization of this business in the second half of 2012 in order to reduce non-interest expense.
• The decrease in adjusted non-interest expense in the third quarter of 2013 compared with the year-earlier quarter primarily reflected lower compensation costs, outside professional services, and collection and credit expense, which were partially offset by increased foreclosure costs.
• The decrease in adjusted non-interest expense in the first nine months of 2013 compared with the same period in 2012 primarily reflected decreased compensation costs, partially offset by the FHLB prepayment penalty, increased collection and credit expense, and higher FDIC insurance expense.

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 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 demand for financial services, the state of the banking industry generally, the uncertainties associated with newly developed or acquired operations, and market disruptions. The Company undertakes no obligation to publicly release revisions to these forward-looking statements 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.

CONTACT:
Corporate Communications, Inc.
Patrick Watson, 615-324-7309
pat.watson@cci-ir.com