Thursday, August 6, 2015

Coastal Banking Company Reports Second Quarter 2015 Earnings, Declares Preferred Stock Dividend

BEAUFORT, S.C., Aug. 6, 2015 – Coastal Banking Company Inc. (OTCQX:CBCO), the holding company of CBC National Bank, which operates branches in Beaufort and Port Royal, S.C., and Fernandina Beach, Fla., today reported net income of $1.6 million, or earnings per diluted common share of $0.51, for the quarter ended June 30, 2015.

This compares to net income of $1.1 million, or diluted earnings per common share of $0.34, in the second quarter of 2014, a year-over-year increase of $479,000, or diluted earnings per common share of $0.17.   

On a linked-quarter basis, net income in the second quarter of 2015 represents an increase of $432,000, or earnings per diluted common share of $0.16, from net income of $1.2 million, or earnings per diluted common share of $0.35, in the first quarter of 2015.

On July 22, 2015, the Board of Directors of CBCO declared a dividend of $22.50 per share of its outstanding Series A Cumulative Perpetual Preferred Stock. The dividend will be payable on Aug. 15, 2015, to shareholders of record on Aug. 5, 2015.  The dividend rate of 9% annually results in a total quarterly dividend payment of $223,875.

Key highlights from the second quarter of 2015 include:
  • Continued strong profitability growth, with second quarter net income increasing by 42.6 percent year-over-year and up 36.8 percent over the first quarter.
  • Driven by strong earnings over the last four quarters, common tangible book value has risen to $10.83 per share at June 30, 2015, an increase of $1.38 per share, or 14.6 percent, during the last year from $9.45 per share at June 30, 2014.
  • Second consecutive quarter of record mortgage banking funding and profitability, with more than $565 million in residential mortgage loans funded and $16.5 million in mortgage banking income during the quarter.
  • Continued balance sheet expansion during the quarter, up by $35.8 million, or 7.0 percent, with total assets reaching $549.1 million, driven by rising balances of residential mortgage loans available for sale and the related loan sales receivable.
  • Net interest margin was stable at 3.82%, down by just 2 basis points from the second quarter of 2014 and lower by 7 basis points from the first quarter of 2015.
  • Asset quality costs related to Other Real Estate Owned and nonperforming loans continued to decline, reaching $211,000 in the quarter, a year-over-year reduction of 68.8 percent and a decrease of 37.4 percent from the first quarter of 2015.
  • Nonaccrual loans ended the quarter at $4.2 million, a decrease of $453,000, or 9.8 percent, from the prior quarter end, but up by $1.4 million from June 30, 2014. Despite the year-over-year increase, the overall long-term trends in asset quality continue to be positive.
  • Other real estate owned (OREO) of $7.0 million represented a linked-quarter increase of 1.5 percent but was down by $4.6 million, or 39.7 percent, from June 30, 2014.
  • Capital ratios at CBC National Bank remained strong, with a total risk-based capital ratio of 19.12 percent and a Tier 1 risk-based capital ratio of 17.85 percent
About Coastal Banking Company Inc.

Coastal Banking Company Inc. is the $549.1 million-asset bank holding company of CBC National Bank, headquartered in Fernandina Beach, Fla., which provides a full range of consumer and business banking services through full-service banking offices in Beaufort, S.C., Fernandina Beach, and Port Royal, S.C. The company’s residential mortgage banking division, headquartered in Atlanta, includes an Internet-based retail mortgage operation, as well as a National Retail Group that has lending offices in Arizona, Florida, Georgia, Maryland, Michigan, Indiana, Illinois and Ohio. The company’s Small Business Administration lending division originates SBA loans primarily in Jacksonville, Ft. Myers, Tampa and Vero Beach, Fla., Greensboro, N.C., and Beaufort.

The company's common stock is publicly traded on the OTCQX Markets under the symbol CBCO. A current CBCO stock price quote and recent stock trading activity is available at The complete unaudited quarterly financial results are available at or for more information, please visit the company's website,


This release contains forward-looking statements including statements relating to present or future trends or factors generally affecting the banking industry and specifically affecting Coastal's operations, markets and products. Without limiting the foregoing, the words "believes," "anticipates," "intends," "expects," or similar expressions are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected for many reasons, including, without limitation, changing events and trends that have influenced Coastal's assumptions, but that are beyond Coastal's control. These trends and events include (i) changes in the interest rate environment which may reduce margins, (ii) not achieving expected growth, (iii) less favorable than anticipated changes in the national and local business environments and securities markets, (iv) adverse changes in the regulatory requirements affecting Coastal, (v) greater competitive pressures among financial institutions in Coastal's markets, (vi) greater loan losses than historic levels, and (vii) difficulties in expanding our banking operations into a new geographic market.

All written or oral forward-looking statements are expressly qualified in their entirety by these cautionary statements. Coastal Banking Company Inc. undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

For More Information:
Paul R. Garrigues                                                        Michael G. Sanchez               
Chief Financial Officer                                               Chief Executive Officer
Coastal Banking Company Inc.                                  Coastal Banking Company Inc.
904-491-9833                                                              904-321-0400