Tuesday, May 9, 2017

2016 Annual Report - Digital Edition - Now Available!



“Creating shareholder value is a driving force for our Company and the true measure of our success. To accomplish that objective, our Company regularly updates and follows our Strategic Plan to help meet our overar­ching goals. Without that compass to direct us, and without our capable leaders’ steady guidance, we would simply be another banking company plodding along where the economy takes us.

“Instead, we plot our own course, we update that course as needed, we ensure that we have the best leaders in the correct positions to help us get where we’re going, and we have a definitive destination in mind.

“In 2016 we crafted an entirely new Strategic Plan for 2017-2019 to update our prior three-year plan. The new Plan states that our goal is a superi­or return on equity compared to our peers. Before turning the page to 2017, we also completed our annual budget, did a health-check on the capacity of our leaders and systems, and analyzed our financial report­ing, operating and competitive landscape.”

– Michael G. Sanchez, Chairman & CEO, Coastal Banking Co., Inc.


Read more in the Letter to Shareholders, and see our financial highlights for the year, in the 2016 Coastal Banking Co., Inc., annual report, now available in digital version at http://www.coastalbanking.com/

Wednesday, May 3, 2017

Coastal Banking Company Reports First Quarter 2017 Earnings


Coastal Banking Company Reports First Quarter 2017 Earnings 

BEAUFORT, SC / ACCESSWIRE / May 2, 2017 / Coastal Banking Company Inc. (OTCQX: CBCO), the holding company of CBC National Bank, which operates branches in Beaufort and Port Royal, S.C., and in Fernandina Beach, Ocala, and The Villages, Fla., today reported net income of $1.45 million, or $0.38 diluted earnings per common share, for the three months ended March 31, 2017. This compares to $1.22 million, or $0.44 in diluted earnings per common share, for the first quarter of 2016, an increase of $230,000. The decline in diluted earnings per common share was due to the additional common shares issued in April 2016 for the acquisition of First Avenue National Bank (FANB) in Ocala, Fla

On a linked-quarter basis, the $1.45 million of net income in the first quarter of 2017 declined from fourth-quarter 2016 net income of $2.21 million, or $0.59 diluted earnings per common share. Coupled with the uncertainty surrounding interest rates in the first quarter of 2017, Coastal's mortgage segment historically experiences lower volume during the first quarter consistent with the industry.

Key performance highlights for the first quarter of 2017 include:

  • Continued strong profitability. First-quarter 2017 net income increased by 18.9 percent over the first quarter of 2016. First quarter results featured more balanced net income for all three of the Company's operating segments: Community Banking earned $812,000 in 2017's first quarter, up from $528,000 in 2016, SBA Lending earned $638,000 in 2017, up from $354,000 earned in 2016, and Mortgage Banking earned $574,000 in 2017, down from $760,000 in 2016. All three segments outperformed the Company's 2017 budget for the first quarter
  • Continued shareholder value creation. Driven by strong earnings over the last five quarters, book value per share has risen to $14.58 per share at March 31, 2017, from $14.18 per share at Dec. 31, 2016, and $12.88 at March 31, 2016. The CBCO closing market price on March 31, 2017, was $17.20, up from $15.01 at Dec. 31, 2016.
  • Increased mortgage banking income on lower volume. For the first quarter of 2017, $346.6 million in residential mortgage loans were sold and $3.41 million in total mortgage banking income generated, down in volume from $379.7 million, but up in income from $2.93 million, from the first quarter of 2016. Mortgage banking generated enhanced yields on sold loans in first-quarter 2017 compared to the same period in 2016 as a result of strategic changes in its loan origination mix.
  • Strong SBA originations and loan sales. For the first quarter of 2017, SBA Lending originated $10.3 million in loans and sold $8.9 million into the secondary market. The balance of SBA loans available for sale at March 31, 2017, has grown to $38 million.
  • Robust balance sheet and Community Banking loan growth. Year-over-year growth in the balance sheet of $87.8 million, or 18.5 percent, with total assets of $562.6 million at March 31, 2017. The asset growth was driven by increased portfolio loan balances and the FANB acquisition. Since March 31, 2016, SBA portfolio loans grew $8.2 million and Community Banking portfolio loans grew $95.2 million, of which $81.4 million were added as part of the acquisition. The growth in portfolio loans was offset by a decline in loans held for sale of $28.5 million from March 31, 2016, to March 31, 2017.
  • Strong quarterly and year-over-year deposit growth. Deposits have grown from $319.8 million at March 31, 2016, to $431.7 million at March 31, 2017, an increase of 35.0 percent. During the first quarter of 2017, deposits grew by $14.4 million, predominantly in non-interest bearing and low-cost NOW accounts.
  • Steady credit quality. Related to credit quality, the ratio of non-performing assets to assets decreased from 1.73 percent at March 31, 2016, to 1.50 percent at March 31, 2017. The ratio was 1.98 percent at Dec. 31, 2016. The allowance for loan losses was 1.39 percent of loans outstanding (excluding loans held for sale) at the end of March 2017, slightly down from 1.48 percent at the end of March 2016. The allowance for loan losses was 1.47 percent at Dec. 31, 2016. Other real estate owned (OREO) declined $1.3 million, or 21.2 percent, from March 31, 2016, to March 31, 2017. Net charge-offs were $667,000 for the first three months of 2017 compared to net charge-offs of $869,000 for the first three months in 2016.
  • Strong capital ratios. Capital ratios for the Company remained strong, with a total risk-based capital ratio of 20.83 percent and a Tier 1 risk-based capital ratio of 19.56 percent at March 31, 2017, up from 20.11 percent and 19.21 percent, respectively, at March 31, 2016.
  • Continued steady efficiency ratio. The Company's efficiency ratio for the first quarter of 2017 was 73.2 percent, compared to 74.3 percent for first-quarter 2016. The Company's efficiency ratio for the year 2016 was 70.5 percent.
To Read Entire 1st Qtr Earnings Release Go To:

Thursday, January 19, 2017

CBC National Bank Announces the Hiring of Mitchell Smith As Chief Credit Officer




FERNANDINA BEACH, Fla., Jan. 19, 2017 – CBC National Bank, headquartered in Fernandina Beach and with branches in Fernandina Beach, Ocala and The Villages, Fla., and Beaufort and Port Royal, S.C., today announced the hiring of veteran banker Mitchell Smith as executive vice president and chief credit officer.

Smith is replacing CBC’s long-time chief credit officer, who has taken a different position with the company.

Smith brings 27 years of community banking experience to CBC. Before joining the bank, Smith served most recently for 10 years as chief credit officer of HeritageBank of the South in Albany, Ga., establishing the bank’s loan policy and directing robust loan growth while ensuring strong asset quality as it grew to a $1.8 billion bank. Before that, he served as senior credit officer of ABC Bancorp in Moultrie, Ga., and as executive vice president of Security Bank and Trust Company in Albany, among other positions.

Smith is a graduate of the Center of Authentic Leadership and the Graduate School of Banking of the South. He earned a BS in biology from Valdosta State College and did graduate studies in accounting and management at Augusta State College and Georgia State University.

“Mitchell Smith brings a wealth of valuable credit management and leadership experience to CBC,” said Charles Wagner, president of CBC National Bank. “He has been instrumental throughout his career in ensuring that his banks have operated in a safe and efficient manner, and he will infuse our organization with that same strong credit culture and operational safety and security.”
About CBC National Bank
CBC National Bank, headquartered in Fernandina Beach, Fla., provides a full range of consumer and business banking services through full-service banking offices in Fernandina Beach, Ocala and The Villages, Fla., and Beaufort and Port Royal, S.C. The company’s residential mortgage banking division, headquartered in Atlanta, includes traditional retail and wholesale lending, as well as a National Retail Group that has lending offices in Florida, Georgia, Maryland, Michigan, Indiana, Illinois and Ohio. The company’s government guaranteed lending division originates SBA loans primarily in Jacksonville, Ft. Myers, Tampa and Vero Beach, Fla., Greensboro, N.C., Atlanta and Beaufort. For more information, please visit CBC National Bank’s website, www.cbcnationalbank.com.

About Coastal Banking Company Inc.

Coastal Banking Company Inc., headquartered in Beaufort, S.C., is the $613.0 million-asset bank holding company of CBC National Bank. The company's common stock is publicly traded on the OTCQX Markets under the symbol CBCO. For more information, please visit the company's website, www.coastalbanking.com.