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.