BEAUFORT, S.C., Oct. 29, 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 Sept. 30, 2015.
This compares to net
income of $796,000, or diluted earnings per common share of $0.21, in the third
quarter of 2014, a year-over-year increase in net income of $833,000, or diluted
earnings per common share of $0.30.
On a linked-quarter
basis, net income in the third quarter of 2015 was unchanged from net income of
$1.6 million, or earnings per diluted common share of $0.51, in the second
quarter of 2015.
On Oct. 28, 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 Nov. 15, 2015, to shareholders of record on Nov. 5, 2015. The dividend rate of 9% annually results in a
total quarterly dividend payment of $223,875.
Key highlights
from the third quarter of 2015 include:
- Continued strong profitability, with third
quarter net income increasing by 104.7 percent year-over-year.
- Driven by strong earnings, common
tangible book value has risen to $11.38 per share at Sept. 30, 2015, an
increase of $1.71 per share, or 17.7 percent, during the last year, from $9.67
per share at Sept. 30, 2014.
- Third consecutive quarter of record
mortgage banking funding and profitability, with more than $400 million in
residential mortgage loans funded and $13.4 million in mortgage banking revenue
during the quarter.
- Other real estate owned (OREO) of $6.3
million declined by $693,000, or 9.9 percent, during the third quarter,
and was down by $1.5 million, or 19.6 percent, from Sept. 30, 2014.
- Asset quality costs related to OREO and
nonperforming loans continued to decline, reaching $481,000 in the
quarter, a year-over-year reduction of $224,000, or 31.8 percent. Through
the third quarter of 2015, asset quality costs of $1.04 million were less
than half of the $2.12 million incurred during the same period in 2014.
- Balance sheet returned to a more typical
level of $438.7 million in total assets as the balance of mortgage loans
available for sale and related loan sales receivable contracted from the
temporary spike upward at the end of the prior quarter.
- Net interest margin for the quarter was 3.98
percent, down by 3 basis points from the prior quarter but up by 16 basis
points from the third quarter of 2014.
- Nonaccrual loans ended the quarter at $3.5
million, down by $692,000, or 16.6 percent, from the prior quarter end,
but up by $603,000 from Sept. 30, 2014. Despite the year-over-year
increase, the overall long-term trends in asset quality continue to be
positive.
- Capital ratios at CBC National Bank
remained strong, with a total risk-based capital ratio of 23.77 percent
and a Tier 1 risk-based capital ratio of 22.50 percent.
For the full text of the earnings release and complete
unaudited interim financial results, please visit the company's website at http://www.coastalbanking.com/reports--news---filings.html
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
