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

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

U.S. Small Business Administration Names CBC National Bank Among the 100 Most Active SBA Lenders of 2015

FERNANDINA BEACH, Fla., Oct. 27, 2015 – CBC National Bank, which operates branches in Fernandina Beach, Beaufort and Port Royal, S.C., today announced that the U.S. Small Business Administration (SBA) has named the bank’s Small Business Administration lending division among the 100 most active SBA 7(a) lenders of fiscal year 2015.

CBC National Bank was ranked No. 69 by lending volume by the SBA, with 48 loans during fiscal year 2015 totaling $57,860,500.

CBC National Bank’s Small Business Administration lending division originates SBA loans primarily in Jacksonville, Ft. Myers, Tampa and Vero Beach, Fla., Greensboro, N.C., and Beaufort. Earlier this month, the bank announced that it has hired Atlanta SBA industry veteran Joy Manbeck to expand its new Georgia SBA lending franchise.

“It is gratifying as a community bank to be ranked among the top 100 most active SBA lenders,” said Durand Childers, executive vice president and managing director of CBC’s SBA lending division. “We have built a very strong SBA lending franchise in Florida, where CBC National Bank has been the No. 1 SBA lender among community banks headquartered in the state for the past three years, and we’re looking to replicate that success in Georgia.”

“Across the states and major metropolitan areas in which we operate, we have a network of dedicated, highly skilled SBA lenders who will continue to serve the needs of the growing marketplace for SBA loans,” said Childers.

  

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, 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 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. Parent company Coastal Banking Company Inc.’s common stock is publicly traded on the OTCQX Markets under the symbol CBCO.  For more information, please visit the company's website, www.cbcnationalbank.com.

CBC National Bank Hires Industry Veteran Joy Manbeck to Expand its New Georgia SBA Lending Franchise

 FERNANDINA BEACH, Fla., Oct. 13, 2015 – CBC National Bank, which operates branches in Fernandina Beach, Beaufort and Port Royal, S.C., and with its residential mortgage banking division headquartered in Atlanta, today announced that CBC National Bank has hired Atlanta SBA industry veteran Joy Manbeck to expand its new Georgia SBA lending franchise.

The new SBA lending operation will be based in the Alpharetta, Ga., campus that houses the bank’s residential mortgage division. Manbeck will build and manage a team of SBA lenders whose focus will be on serving the needs of the growing market for SBA loans in the metropolitan Atlanta and Georgia markets.

“Our aim is to replicate the very successful SBA lending franchise we have built in Florida, where CBC National Bank has been the No. 1 SBA lender among community banks headquartered in the state for the past three years,” said Durand Childers, executive vice president and head of CBC’s SBA lending division.

“Joy Manbeck brings over 30 years of commercial banking experience, a majority of that in SBA lending, most recently with State Bank & Trust,” continued Childers. “With her deep SBA industry and Atlanta market knowledge, small business acumen, seasoned banking skills and proven leadership capabilities, Joy is the ideal person to build and manage our Georgia SBA franchise. As the senior vice president heading up the operation, she will be working to hire a team of seasoned professionals who will begin ramping up our SBA lending in Georgia.

  

Manbeck has deep business and social roots in the Atlanta area. She is a Youth leader in the Alpharetta United Methodist Church, a National Association of Government Guaranteed Lenders (NAGGL) Region IV Committee Member, and a member of several other business and professional organizations, including the Rotary Club of North Fulton, Georgia Quality Lender’s Circle, Atlanta Commercial Board of Realtors, North Atlanta Professional Group, and CREW (Commercial Real Estate Women). 

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, 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 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. Parent company Coastal Banking Company Inc.’s common stock is publicly traded on the OTCQX Markets under the symbol CBCO.  For more information, please visit the company's website, www.cbcnationalbank.com.

CBC National Bank Makes Donation to Wounded Warrior Project to Honor its Dedicated Employees

CBC National Bank Makes Donation to Wounded Warrior Project to Honor its Dedicated Employees

BEAUFORT, S.C., Sept. 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 announced that CBC National Bank has made a donation to the Wounded Warrior Project in honor of its employees.

To celebrate the recent $10 billion funding milestone reached by its mortgage division, CBC National Bank held a unique raffle set up to provide a donation to the Wounded Warrior Project. For $5 per entry, CBC Bank employees could enter to win the grand prize – to have their August mortgage or rent payment paid by the bank.

However, in the spirit of the event, the winner – Samantha Ward, an assistant vice president and underwriting manager, decided to add her mortgage payment to the total amount raised, bringing the total donation to $3,500.

“We’re very pleased to be able to make a meaningful donation to an organization that does so much good for the brave men and women who have served our country,” said Charles Wagner, president of CBC National Bank. “The raffle was a fun way to engage our employees in an activity with a serious purpose to celebrate the success of our mortgage division and celebrate the quality of our employees across the Company. And the fact that Samantha Ward decided to add her prize to the total shows the level of generosity and character among our employees.”

CBC National Bank proudly offers our military veterans a VA loan program. VA loans are mortgages guaranteed by the Department of Veterans Affairs. They offer military veterans exceptional benefits, including lower interest rates and a no-down-payment option. The program was designed to help military veterans realize the American Dream of home ownership.

About Coastal Banking Company Inc.

Coastal Banking Company Inc., headquartered in Beaufort, S.C., 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, Fernandina Beach, 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 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.  For more information, please visit the company's website, www.coastalbanking.com.

Coastal Banking Company Launches Newly Redesigned Comprehensive Investor Relations Website

BEAUFORT, S.C., Sept. 15, 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 announced that it has launched a newly redesigned and totally updated investor relations-focused website that provides a full array of information for existing and potential shareholders, as well as financial analysts and others seeking the latest company and IR-related information.

The new site, www.coastalbanking.com, offers a graphically updated and streamlined user interface featuring real-time company news updates, “quick look” graphs of the company’s 5-year stock performance, total assets and total equity, a link to the current CBCO stock quote from the OTC Markets website, a link to past filings with the Securities and Exchange Commission, in addition to all earnings releases, unaudited quarterly financial statements, audited annual financial statements with management discussion and analysis, and annual reports dating back to 2010, as well as key corporate governance information.

“Our new investor relations-focused website provides a comprehensive data set for anyone wishing to look at any aspect of our company and its financial performance,” said Michael G. Sanchez, chairman and chief executive officer. “Bringing this information together in an attractive, easily navigable package that is accessible to current and potential investors and others across computer and mobile platforms is a significant step forward for our company’s IR communications.”

The new site features “responsive design” that automatically formats and optimizes the display of any information to the users’ mobile device (smartphone, tablet, etc.). It also offers integration to certain social media platforms and “tagging” of certain articles to allow for quick topical searches.
“The comprehensive nature of the information available on the site, in a graphically pleasing display across platforms, and featuring robust search and subject ‘tagging,’ greatly enhances our ability to communicate our company’s financial information in a meaningful way to a variety of interested constituencies,” said Paul R. Garrigues, chief financial officer. “Moreover, it streamlines and vastly improves our stakeholders’ ability to access exactly the information they need from us.”

About Coastal Banking Company Inc. 
Coastal Banking Company Inc., headquartered in Beaufort, S.C., 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, Fernandina Beach, 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 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.  For more information, please visit the company’s website, www.coastalbanking.com.

For More Information: 
Michael G. Sanchez
Chairman & Chief Executive Officer
Coastal Banking Company Inc.
904-321-0400

#CBCO

CBC National Bank Achieves Overall Satisfactory CRA Rating, Outstanding Rating for Community Development

BEAUFORT, S.C., Sept. 1, 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 announced that CBC National Bank achieved an overall rating of
Satisfactory in its latest Community Reinvestment Act (CRA) examination. In the two component
tests, the Bank received a Satisfactory rating in the Lending Test and an Outstanding rating in the
Community Development Test.

The Office of the Comptroller of the Currency (OCC) conducts a regular Community
Reinvestment Act Performance Evaluation to determine an “institution’s record of meeting the
credit needs of its entire community, including low- and moderate-income neighborhoods
consistent with safe and sound operation of the institution.” The recent evaluation was conducted
between 2012 (the date of the preceding evaluation) and 2015.

The Bank’s overall CRA rating is a blend of the ratings of its operations in both South Carolina
and Florida. Both of CBC National Bank’s state ratings mirrored its overall ratings: Each achieved
a Satisfactory overall rating, Satisfactory Lending Test rating and Outstanding Community
Development Test rating. The Lending Test evaluated residential mortgage and small business
lending, while the Community Development Test conclusions are “based upon investments,
services, and loans conducted in CBC’s combined assessment areas, which meet the definition of
community development.”

For the overall Bank, the report states: “CBC’s community development (CD) performance
demonstrates an excellent responsiveness to the needs of its assessment areas through CD loans,
qualified investments and CD services.”

CBC National Bank Achieves Overall Satisfactory CRA Rating, “We are gratified that CBC National Bank achieved an overall CRA rating of Satisfactory and proud that our Bank achieved an Outstanding rating for our Community Development activities and initiatives,” said Charles Wagner, president of CBC National Bank. “Being active, productive members of the communities we serve, and where we live, is of great importance to our company, and our rating is a testament to the quality of our engaged, willing and helpful employees across the organization.”

Report Highlights on Community Development for Florida:
“Bank personnel engage in community development services that are responsive to community needs. During the evaluation period, bank officers and employees provided 480 CD service hours to eight different organizations in its assessment area. Specifically, bank personnel used their financial expertise by serving as Board directors and members on budget and finance committees and assisting with fundraising. Bank personnel also provided financial literacy and education training to homeless women and Habitat for Humanity clients. In addition, bank employees provided 102 community service hours to three organizations in Jacksonville, Fla.

Report Highlights on Community Development for South Carolina:
“The extent to which the bank provides banking services and community development services is excellent given available opportunities, the bank’s size, and capacity to provide such services….During the evaluation period, bank officers and employees engaged in community development services that are responsive to community needs. Bank personnel provided 537 community development service hours to 10 different assessment area organizations. Specifically, bank personnel used their financial expertise by serving as Board directors and members on executive and finance committees. Bank personnel also provided financial literacy and education training to local Habitat for Humanity clients.”

About Coastal Banking Company Inc.
Coastal Banking Company Inc., headquartered in Beaufort, S.C., 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, Fernandina Beach, 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 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. For more information, please visit the company's website, www.coastalbanking.com.

For More Information:
Charles Wagner
President - CBC National Bank
(678) 942-2161

###

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 www.otcmarkets.com/stock/CBCO/quote. The complete unaudited quarterly financial results are available at http://coastalbanking.com/finfilings.html or for more information, please visit the company's website, www.coastalbanking.com.

FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISK FACTORS

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