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

Coastal Banking Co.'s Mortgage Division Surpasses $10 Billion Loan Production Milestone, Earns National 'Top Lenders' Recognition

BEAUFORT, SC / ACCESSWIRE / July 7, 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., announced that in June its mortgage division surpassed the $10 billion mark in loan production.

Coastal's mortgage division, based in Atlanta, began operations in September 2007 utilizing a conservative, risk-averse business model, originating primarily full-documentation, conforming mortgage loans pre-sold into the secondary market. The division passed the $1 billion mark in loan production in June 2009 and has grown into a business unit generating more than $2 billion in annual volume. During the first quarter of 2015, the mortgage division achieved record funding and profitability, with more than $507 million in residential mortgage loans funded and $14.3 million in mortgage banking income during the quarter.

Coastal's mortgage banking division was created and has been led since its inception by mortgage industry veteran Charles Wagner, who was recently promoted to President of CBC National Bank. Replacing Wagner as head of the mortgage banking division is Brynn Stensrud.

"One of the keys to our success was the fact that we entered the mortgage industry at a time when many mortgage lenders were exiting the business, leaving a gap in service," said Wagner. "We were committed to the residential markets in our home communities in Beaufort and Port Royal, Fernandina Beach and Atlanta even during the industry crisis while many big banks pulled back, or out, of residential lending. Our commitment to our markets and the mortgage business continues today, and continues to pay off for Coastal Banking Company, as the division has been a significant contributor to CBC National Bank's earnings over the years."

In addition to reaching the $10 billion loan production milestone, Coastal's mortgage division was recently recognized by Scotsman Guide as one of the nation's Top Mortgage Lenders 2014, ranking No. 43 in overall volume and No. 16 in wholesale volume. The division also has been recognized as one of Top Workplaces in Atlanta 2015 by the Atlanta Journal-Constitution.

"Our continued growth and recognition is a testament to the quality of our associates during our almost 8 years in business," said Stensrud, senior vice president and head of the mortgage division. "Our knowledgeable mortgage professionals have shared Coastal Banking Company's overall passion and commitment to offering our customers the best products and service available. We will continue to meet the purchase and refinance needs of our customers while meeting their demands for great service and products into the future."

About Coastal Banking Company Inc.

Coastal Banking Company Inc. is the $513.3 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.

For More Information:

Charles Wagner
President
CBC National Bank
(678) 942-2161

SOURCE: Coastal Banking Company Inc.

Coastal Banking Company Promotes Charles Wagner to President of CBC National Bank, Elects Him to Boards of Bank and Holding Co.

BEAUFORT, SC / ACCESSWIRE / June 8, 2015 / Coastal Banking Company Inc. (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 Charles Wagner has been named president of CBC National Bank and elected to the board of directors of both the bank and the holding company.

Before being promoted to president, Wagner served as executive vice president in charge of the bank's mortgage banking division and has led CBC National Bank's strategic planning process since 2013.He also has worked as a member of the executive risk management committee in both the mortgage division and the bank.Wagner joined the company in 2007 as a founding leader of the bank's mortgage division, which he helped build as a new division of the bank. Previously, he had served for 14 years in a number of executive positions in the mortgage industry.

"Charles Wagner has been a great asset to our company, helping build the mortgage division from nothing into a business unit doing more than $2 billion in annual volume," said Michael G. Sanchez, chief executive officer. "He has demonstrated strengths in strategic planning, risk management and technology implementation, and he is well-prepared to help lead the bank into the future. The board's management succession committee and governance committee have been actively engaged in the management succession process for the past 18 months, considering both internal and external candidates. Charles' acumen and proven performance led to our decision to promote from within in an orderly fashion, providing both continuity and management depth for the future."

Sanchez remains chief executive officer of both Coastal Banking Company Inc. and CBC National Bank.

In his new position as president of CBC National Bank, Wagner will directly oversee the mortgage banking division, human resources, information technology and operations, marketing, and strategic planning.

Replacing Wagner as head of the mortgage banking division is Brynn Stensrud. "Brynn has headed operations and credit risk for the mortgage banking division since late 2008 and has been assuming more responsibility over the past two years," said Wagner. "He is both well-respected and has good working relationships with executive management, the board of directors and the Office of the Comptroller of the Currency. Brynn will assume his new position as I do mine over the next 90-120 days to ensure a seamless transition for the bank, our customers and constituents."

About Coastal Banking Company Inc.

Coastal Banking Company Inc. is the $513.3 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.

For More Information:

Michael G. Sanchez
Chief Executive Officer
Coastal Banking Company Inc.
904-321-0400

SOURCE: Coastal Banking Company Inc.