CBC National Bank Hires Michael Oppel in the Bank’s SBA Lending Division

FERNANDINA BEACH, Fla., July 25, 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 Michael Oppel in its SBA lending division.

Oppel is joining CBC as a lender in the SBA division’s government guaranteed lending group. He will work as an SBA and government guaranteed lender with specific focus on United States Department of Agriculture (USDA) Business and Industry loans. His lending will focus on the geographic areas of the southeastern United States.

Oppel joins Richard Duncan, vice president of USDA lending for CBC National Bank, in the growing government guaranteed lending group. The USDA lending program is intended to bolster economic stability and development in rural areas. Through the program, CBC can offer commercial and small business loans not just for farming operations but for most types of businesses, as well as investment properties, multi-use office complexes, etc. If the loan recipient meets necessary criteria, the loan is guaranteed by the federal government.

Prior to CBC, Oppel garnered portfolio management, credit analysis, USDA lending, and underwriting experience in several financial industry and banking positions. He earned both bachelor’s and master’s degrees in business administration from Valdosta State University.
“We look forward to Michael’s contributions in helping grow our government guaranteed lending group and expand our services in USDA lending,” said Durand Childers, president of CBC’s SBA lending division. “Our ability to offer USDA loans and the expertise to process them in-house are great benefits to both existing businesses and start-ups that may seek out the program’s numerous
advantages in comparison to conventional loans.”

CBC National Bank continued to thrive in SBA lending in 2016, with SBA portfolio loans
growing $25.3 million from 2015 levels. CBC has been recognized as one of the U.S. Small
Business Administration’s (SBA) highest ranked community bank lenders in Florida, recently
ranking No. 2 in total dollar volume and number of loans.

Coastal Banking Announces John Q. Adams to Succeed James "Jim" C. Key

John Q. Adams appointed to Chairman of the Audit Committee. Mr. Adams succeeds James C. Key, an 18-year veteran of the board and former chairman of the audit committee. Jim passed away on June 2nd, 2017.

"John's financial and industry expertise combined with his past audit experience make him an excellent choice to chair the audit committee," said Michael Sanchez, Chairman & CEO of Coastal Banking Company, Inc. "We look forward to his contributions in this important role."

John Q. Adams II, 53, Class III Director, is one of two directors appointed to the Board of Directors in 2016, upon consummation of the merger of April 2016 merger of First Avenue National Bank ("First Avenue") with and into CBC National Bank. Mr. Adams was a founding director of First Avenue and served as its chairman for four years. He also chaired the First Avenue Audit, Loan and Executive Committees and served on the Asset-Liability Committee (ALCO) from First Avenue's inception through the merger. Mr. Adams is a licensed certified public accountant practicing in Florida and is the owner/principal of the public accounting firm of Adams & Company, P.A. In 1994, he graduated with a master's degree in accountancy from the University of Central Florida and completed the CPA exam. He is a longtime member of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. Mr. Adams has a long history of community leadership, serving on several boards, including The Arnette House and the Marion County Family YMCA.

Read Full Release at: http://www.coastalbanking.com/

Coastal Banking Remembers Board Member James "Jim" C. Key

Coastal Banking Announces Death of Board Member James "Jim" C. Key 

BEAUFORT, SC / ACCESSWIRE / June 13, 2017 / Coastal Banking Company Inc. (OTCQX: CBCO) Board of Directors announces the passing of Jim Key, a valued member of the company's board of directors. Jim passed away on June 2nd, 2017.

"Jim was an inspiring leader and friend," said Michael Sanchez, Chairman & CEO of Coastal Banking Company, Inc.. He brought great value and a wealth of knowledge to our company and he will be greatly missed."

James C. Key, Class I Director, had served as a director of Coastal since 1999. Jim was Chairman of the Audit Committee and a member of the Corporate Governance & Nominating Committee. He was the managing partner of Shenandoah Group, LLP, a firm providing governance, risk management, and compliance (GRC) solutions for a wide variety of clients in business, government, education, and multilaterals since 1997. Mr. Key served as director-internal audit for North America and Asia Pacific at IBM Corporation in Armonk, New York, until he retired in 1997. He was a certified internal auditor and held a certification in risk management assurance. Additionally, Mr. Key was active in The Institute of Internal Auditors since 1991. He graduated from Syracuse University with a degree in liberal studies and completed graduate work at the Maxwell School of Citizenship and Public Affairs, Syracuse University. Mr. Key was immediate past president of the Southeast District of the Unitarian Universalist Association (UUA) of Congregations in Charlotte, North Carolina and chaired the audit committee of the board of trustees of the National UUA organization. He was elected to a single six-year term as moderator and chief governance officer of the National UUA in 2013. In that role, he chaired the board of trustees, presided over annual meetings, and met with congregations across the country

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/

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:

http://www.coastalbanking.com/reports--news---filings.html

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.

Coastal Banking Company Reports Third Quarter 2016 Earnings

Coastal Banking Company Reports Third Quarter 2016 Earnings

Key highlights from the third quarter of 2016 include:

• Completion of the integration of First Avenue National Bank, acquired in April 2016.
• Continued strong profitability growth, with third quarter 2016 net income increasing by 28.5 percent over the second quarter of 2016, with strong and more balanced net income for all three of the Company’s operating divisions: Community Banking, SBA Lending and Mortgage Banking.
• Driven by strong earnings over the last four quarters, common tangible book value has risen to $12.98 per share at Sept. 30, 2016, from $11.38 at Sept. 30, 2015, an increase of $1.60 per share, or 14.1 percent.
• Continuation of robust mortgage banking funding and profitability, with more than $886.3 million in residential mortgage loans originated and $21.0 million in mortgage banking income during the quarter, up from $614.8 million and $13.4 million, respectively, for the third quarter of 2015.
• Year-over-year growth in the balance sheet of $174.3 million, or 39.7 percent, with total assets of $613.0 million at Sept. 30, 2016, driven by rising balances of SBA portfolio loans, increased residential mortgage loans available for sale and the related loan sales receivable, and the addition of First Avenue National Bank.
• Continued strong net interest margin for the third quarter of 2016 of 3.76 percent, compared to 3.95 percent for the second quarter of 2016 and 3.98 percent for the third quarter of 2015.
• Other real estate owned (OREO) of $5.5 million, a slight increase by $400,000, or 7.4 percent, from the second quarter of 2016, but a decline of $800,000, or 12.7 percent, from Sept. 30, 2015.
• Capital ratios at CBC National Bank remaining strong, with a total risk-based capital ratio of 20.92 percent and a Tier 1 risk-based capital ratio of 19.66 percent at Sept. 30, 2016.

For the full text of the earnings release and complete unaudited interim financial results go to http://www.coastalbanking.com/reports--news---filings.html

For More Information Contact:
Thomas J. Flournoy
EVP & Chief Financial Officer
Coastal Banking Company Inc.
904-321-2917