Coastal Banking Company Inc. Named to 2016 OTCQX Best 50

One of Only 10 Companies Ranking in the Best 50 Two Consecutive Years

BEAUFORT, SC / ACCESSWIRE / February 17, 2016 / Coastal Banking Company Inc. (OTCQX: CBCO) is pleased to announce it has been named to the 2016 OTCQX(R) Best 50, a ranking of top performing companies traded on the OTCQX Best Market last year. This marks the second consecutive year that Coastal Banking Company Inc. has received this recognition, having ranked on the inaugural OTCQX Best 50 in 2015. Coastal is one of only 10 companies to achieve the Best 50 ranking two years running.

The OTCQX Best 50 is an annual ranking of the top 50 U.S. and international companies traded on the OTCQX market. The ranking is calculated based on an equal weighting of one-year total return and average daily dollar volume growth in the previous calendar year. Companies in the 2016 OTCQX Best 50 were ranked based on their performance in 2015.

"We are gratified once again to be named to the OTCQX(R) Best 50," said Michael G. Sanchez, chief executive officer. "Achieving this distinction two consecutive years - and being one of only 10 companies to do so - is a testament to the performance of our company, and our people, in delivering strong operating results in 2014 and 2015. The increased exposure gained from trading on the OTCQX marketplace, combined with the improved liquidity and price stability of our stock, along with our strong, steady earnings, continue to benefit our shareholders."

For the complete 2016 OTCQX Best 50 ranking, visit http://www.otcmarkets.com/content/doc/2016-OTCQX-Best-50.pdf.

The OTCQX Best Market offers the best informed and most efficient trading for established, investor-focused U.S. and international companies. To qualify for OTCQX, companies must meet high financial standards, demonstrate compliance with U.S. securities laws, be current in their disclosure and be sponsored by a professional third-party advisor. OTCQX companies are distinguished by the excellence of their operations and diligence with which they convey their qualifications.

More About Coastal Banking Company: www.coastalbanking.com

SOURCE: Coastal Banking Company Inc.

On Tuesday, December 8, 2015 at 12:00 PM ET

Coastal Banking Company Promotes Brynn Stensrud, Residential Mortgage Banking Division Head, to Executive Vice President

BEAUFORT, SC / ACCESSWIRE / December 8, 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 Brynn Stensrud has been promoted to executive vice president.

Stensrud was named head of the company's Atlanta-based residential mortgage banking division in June, replacing Charles Wagner, who was named president of CBC National Bank. Before assuming overall leadership of the division, Stensrud headed operations and credit risk for the mortgage division since late 2008 and had been assuming more responsibility over the past two years.

"Brynn Stensrud taking over as head of our residential mortgage division ensured a seamless transition in our recent succession planning moves. He has thrived in his new position, demonstrating the depth of talent we have in the company," said Charles Wagner, president of CBC National Bank.
"Brynn has been instrumental in the executive management and strong growth of our mortgage division for many years," Wagner continued, "helping build it into a business unit doing more than $2 billion in annual volume. And his leadership will ensure that our bedrock service culture remains in place as our business evolves in 2016 from the recent low interest rate environment to a more normal operating environment."

About Coastal Banking Company, Inc.

Coastal Banking Company Inc., headquartered in Beaufort, S.C., is the $438.7 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 government guaranteed lending division originates SBA loans primarily in Jacksonville, Ft. Myers, Tampa and Vero Beach, Fla., Greensboro, N.C., Atlanta 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

First Avenue National Bank to Merge with CBC National Bank

BEAUFORT, SC / ACCESSWIRE / November 23, 2015 / Coastal Banking Company Inc., (OTCQX: CBCO), the holding company of CBC National Bank ("CBCNB"), which operates branches in Fernandina Beach, Fla., Beaufort and Port Royal, S.C., announced today that it has signed a definitive agreement to acquire First Avenue National Bank of Ocala, Florida ("First Avenue"). Upon completion of the merger, Coastal Banking Company Inc. ("Coastal") expects to merge First Avenue's operations into CBCNB.

First Avenue, headquartered in Ocala, Fla., was founded in 2006 and operates two branches in Ocala and one branch in The Villages, Fla. It will add approximately $125 million in assets, $108 million in deposits, and $79 million in gross loans to CBCNB.

First Avenue has pursued a traditional, customer-service-centric community banking model and is among the highest revenue community banks in Florida, driven by a strong lending culture. With a net interest margin of 4.3% at Sept. 30, 2015, approximately 77% of First Avenue's total deposits consist of low-cost core deposit accounts, with 33% of total deposits in transaction accounts.
The acquisition of First Avenue is Coastal's first expansion into the attractive and fast-growing central Florida market and allows Coastal to grow its core community banking franchise while continuing to bolster its two other primary operating divisions, residential mortgage banking and government guaranteed lending, both of which have strongly contributed to the company's record earnings over the past two years.

"The acquisition of First Avenue creates value both for our customers and shareholders by combining two strong and complementary banks," said Michael G. Sanchez, chairman and chief executive officer of Coastal Banking Company Inc. "Both share an abiding commitment to customer service and the communities in which we operate, and both are well-managed and located in vibrant, economically strong areas. The managerial talent and core operations of both banks will allow our organization to leverage the combination to deliver even more shareholder and customer value going forward.

"We are delighted to welcome First Avenue's employees and their 4,000 customers to CBCNB, and look forward to providing our new customers with a broader array of banking services, including government guaranteed lending and mortgage lending capabilities," Sanchez added.
Ralph Strayhorn, First Avenue's president and CEO, said, "We are pleased to be combining with a bank that values customer service just as much as we do, and we look forward to the additional products and services that CBCNB will be able to deliver to our customers and the larger Central Florida community banking market. We also recognized in CBCNB a bank that would likewise deliver long-term growth and value creation for our shareholders."

After the completion of the merger, Strayhorn has announced that he will be returning to his banking and business advisory practice, while senior executives Adam Woods, Jason Welborn and Patrick Moses will be joining CBCNB.

Woods has been named CBCNB's market executive for Marion and Sumter Counties. He will be responsible for executive management of all of the bank's operations in those markets.

"Adam Woods, Jason Welborn and Patrick Moses are all seasoned, well-respected bankers who know the central Florida area well and are all welcome additions to CBC National Bank," said Sanchez. Additionally, two members of the First Avenue board of directors will be joining the Coastal board of directors upon completion of the merger.

Coastal expects the acquisition to be modestly dilutive to its 2016 earnings after transaction and integration costs, but with cost savings fully realized by the end of 2016, it is expected to be accretive to earnings in 2017.

The Boards of Directors of both Coastal and First Avenue have unanimously approved the transaction. The transaction is expected to close at the end of the first quarter of 2016, subject to approval by the shareholders of Coastal and First Avenue, receipt of regulatory approvals and other customary closing conditions.

Coastal is being advised by the Paces Battle Group as financial advisor and Bryan Cave LLP as legal counsel. First Avenue is being advised by The Burke Group LLC as financial advisor and Smith Mackinnon PA as legal counsel.

Coastal Banking Company Announces $10 Million Senior Debt Raise and Redemption of its Series A Preferred Stock

BEAUFORT, S.C., Nov. 16, 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 its entry into a Material Definitive Loan Agreement on Nov. 10, 2015, with the completion of a $10 million Senior Debt raise from NexBank SSB. 

The proceeds of this debt raise were used to redeem all of the Company’s 9,950 shares of Fixed Rate Cumulative and Perpetual Preferred Stock, Series A ("Preferred Stock"), effective Nov. 15, 2015.

“This debt raise and the redemption of our preferred stock that it enabled will allow us to deliver increased value to our shareholders,” said Michael G. Sanchez, chief executive officer of Coastal Banking Company Inc. “We are significantly reducing our costs of capital through these transactions, resulting in our ability to, in effect, pass the savings on to our shareholders through enhanced book value.”

Paul R. Garrigues, Coastal’s chief financial officer, added, “The impact of replacing the 9% Preferred Stock dividend payments with a much lower interest expense on the Senior Debt is expected to increase net income available to common shareholders by as much as $600,000 over the next 12 months, or the equivalent of $0.23 per common share. The completion of this financing and related Preferred Stock redemption represents a significant step forward in structuring the Company’s capital accounts to better support our strategic growth plans while bringing additional value to our shareholders.”

The Preferred Stock was originally issued to the U.S. Department of the Treasury in December 2008 as part of their Troubled Asset Relief Program's Capital Purchase Program and was sold to private investors by the Treasury in March 2013 through a public auction. The shares were redeemed at the liquidation price of $1,000 per share for a total of $9.95 million. There were no accrued and unpaid dividends due as a result of the redemption occurring on the scheduled dividend payment date. As a result of this redemption, no shares of the Preferred Stock remain outstanding and the Company will no longer pay any dividends on the Preferred Stock.

The NexBank Loan Agreement carries an interest cost of LIBOR plus 4 percent per annum and requires monthly principal payments based on a 10-year straight line amortization period with a maturity date of November 2020. The Loan Agreement contains affirmative and negative covenants pertaining to certain financial and capital ratios of the Company and CBC National Bank, and is secured by a pledge of all of the capital stock of CBC National Bank pursuant to a Pledge and Security Agreement. The Company may repay all or part of the loan balance at any time without additional cost or prepayment penalty.

A copy of the complete Loan Agreement and related Pledge and Security Agreement dated Nov. 10, 2015, is available at http://www.otcmarkets.com/stock/CBCO/filings

About Coastal Banking Company, Inc.:

Coastal Banking Company Inc., headquartered in Beaufort, S.C., is the $438.7 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 government guaranteed lending division originates SBA loans primarily in Jacksonville, Ft. Myers, Tampa and Vero Beach, Fla., Greensboro, N.C., Atlanta 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 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.