Coastal Banking Company Reports Second Quarter 2016 Earnings
BEAUFORT, S.C., Aug. 8, 2016 – Coastal Banking Company Inc. (OTCQX:CBCO), the holding company of CBC National Bank, which operates branches in Beaufort and Port Royal, S.C., Fernandina Beach, Ocala, and The Villages, Fla., today reported net income of $1.5 million, or earnings per diluted common share of $0.46, for the quarter ended June 30, 2016.
This compares to net income of $1.6 million, or diluted earnings per common share of $0.51, in the second quarter of 2015, a year-over-year decrease of $56,000, or diluted earnings per common share of $0.05.
On a linked-quarter basis, net income in the second quarter of 2016 represents an increase of $328,000, or earnings per diluted common share of $0.02, from net income of $1.2 million, or earnings per diluted common share of $0.44, in the first quarter of 2016.
Key highlights from the second quarter of 2016 include:
- Completion of the acquisition of First Avenue National Bank.
- Continued strong profitability growth, with second quarter net income increasing by 26.9 percent over the first quarter.
- Non-interest bearing demand deposits grew $27.5 million, or 62.6 percent, over the first quarter.
- Driven by strong earnings over the last four quarters, common tangible book value has risen to $12.48 per share at June 30, 2016, an increase of $1.63 per share, or 15 percent, during the last year from $10.85 per share at June 30, 2015.
- Continuation of robust mortgage banking funding and profitability, with more than $551.7 million in residential mortgage loans funded and $16.4 million in mortgage banking income during the quarter.
- Balance sheet expansion continued during the quarter, up by $140.8 million, or 29.7 percent, with total assets reaching $615.6 million, driven by rising balances of SBA portfolio loans, residential mortgage loans available for sale and the related loan sales receivable, as well as completing the acquisition of First Avenue National Bank.
- Improving net interest margin for the second quarter at 3.95 percent, up 6 basis points from the first quarter of 2016.
- Other real estate owned (OREO) of $5.1 million decreased by $1.2 million, or 19.0 percent, during the quarter and $1.9 million, or 27.1 percent, from June 30, 2015.
- Capital ratios at CBC National Bank remained strong, with a total risk-based capital ratio of 19.96 percent and a Tier 1 risk-based capital ratio of 18.70 percent.
For the full text of the earnings release and complete unaudited interim financial results
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Randy E. Graber Michael G. Sanchez
Controller Chairman & Chief Executive Officer
Coastal Banking Company Inc. Coastal Banking Company Inc.