SOURCE: Coast Bancorp

Coast Bancorp

November 04, 2014 19:15 ET

Coast Bancorp Announces Third Quarter Earnings Results

SAN LUIS OBISPO, CA--(Marketwired - Nov 4, 2014) - Coast Bancorp (OTCBB: CTBP) today reported a consolidated net loss of $146,000 or $0.05 per basic and diluted share for the nine months ended September 30, 2014 compared to a net loss of $5,000 or $0.01 per basic and diluted share for the same period in 2013.

Total consolidated assets were $129.4 million at September 30, 2014 compared to $124.1 million at September 30, 2013. Total consolidated liabilities of $126.1 million include deposits held in the bank, junior subordinated debt of $7.2 million due in 2027, and senior notes for $2.0 million due in 2016, as well as other liabilities of $292 thousand. The accrued and deferred interest on the junior subordinated debt of $2.2 million from the first deferral period, which began in 2009, was paid in June.

Total stockholder's equity increased to $3.3 million at September 30, 2014 from a deficit of $1.6 million at September 30, 2013 after completion of a private placement offering in June of this year. The Company issued 4,800,000 shares of common stock for $1.00 per share, less the cost of the private placement. Net proceeds from the offering and the senior note were used to satisfy the accrued and unpaid interest on the junior subordinated debt securities, and invest $3.5 million in the bank. 

Coast National Bank Highlights:

Coast National Bank, a wholly owned subsidiary of Coast Bancorp, reported:

  • Net profits of $76,000 for the third quarter of 2014, compared to a loss of $35,000 for the third quarter of 2013. 
  • For the nine months ended September 30, 2014, the bank reflected a net profit of $59,000, compared to a net profit of $145,000 for the same period in 2013. 
  • Total assets at September 30, 2014 were $129.2 million, or 4.3% higher compared to $123.8 million at September 30, 2013.
  • Total deposits at September 30, 2014 increased slightly to $117.1 million from $116.1 million at September 30, 2013. 
  • Loan growth increased 7.0% to $71.6 million at September 30, 2014.
  • Deposits at September 30, 2014 of $117.1 million reflect core deposits of 95.5% of total deposits and noninterest-bearing demand deposits represent 43.5% of total deposits. 
  • Tier I leverage ratio improved to 9.3% at September 30, 2014 compared to 6.1% at September 30, 2013. 
  • Its total risk-based capital ratio was 15.9% at September 30, 2014 compared to 11.6% for the same date in 2013. 

Established in 1997, Coast National Bank is a locally owned community bank serving consumers and businesses through four local offices serving San Luis Obispo County. With a focus on delivering quality customer service, Coast National Bank provides small business loans and an array of business and personal banking deposit products and other services. For further information, visit www.coastnationalbank.com or call 805.541.0400.

Coast National Bank is an equal housing lender and member FDIC.

This release contains forward-looking statements that reflect management's current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including, but not limited to, the ability of the Company to implement its strategies.

   
COAST BANCORP  
CONDENSED BALANCE SHEETS  
(In thousands)  
  September 30,  
  2014     2013  
ASSETS Unaudited     Unaudited  
Cash and cash equivalents $ 22,142     $ 36,693  
Federal funds sold   100       100  
Time deposits at other banks   10,045       10,247  
Investment securities   15,522       392  
Loans, net   71,640       66,947  
Premises and equipment, net   5,320       6,235  
Federal Reserve and Federal Home Loan Bank stock, at cost   726       602  
Other real estate owned, net   2,481       1,456  
Accrued interest receivable and other assets   1,422       1,383  
  Total assets $ 129,398     $ 124,055  
               
LIABILITIES AND STOCKHOLDERS' EQUITY              
Non-interest bearing demand $ 50,383     $ 46,761  
Money market and NOW   37,476       38,280  
Savings   9,074       8,563  
Time   19,669       22,521  
  Total deposits   116,602       116,125  
Senior notes payable   2,000       -  
Junior subordinated debt securities   7,217       7,217  
Accrued interest payable and other liabilities   292       2,325  
  Total liabilities   126,111       125,667  
Common stock - no par value, 5,646,881 shares outstanding at September 30, 2014 and 846,881 shares outstanding at September 30, 2013   12,494       8,277  
Additional paid-in capital   293       293  
Accumulated deficit   (9,517 )     (10,182 )
Unrealized gains on AFS securities, net   17       -  
  Total stockholders' equity   3,287       (1,612 )
  Total liabilities and stockholders' equity $ 129,398     $ 124,055  
               
                               
                               
COAST BANCORP  
CONDENSED STATEMENTS OF OPERATIONS  
(In thousands, except per share amounts)  
                               
  Three Months Ended     Nine Months Ended  
  September 30,     September 30,  
  2014     2013     2014     2013  
  Unaudited     Unaudited     Unaudited     Unaudited  
Total interest income $ 1,142     $ 991     $ 3,250     $ 3,214  
Total interest expense   132       106       331       319  
  Net interest income   1,010       885       2,919       2,895  
Provision for loan losses   -       -       -       -  
  Net interest income after provision for loan losses   1,010       885       2,919       2,895  
                               
Noninterest income   260       301       716       1,245  
Noninterest expense   1,306       1,263       3,779       4,143  
  Income before income taxes   (36 )     (77 )     (144 )     (3 )
Income taxes   -       -       2       2  
  Net profit (loss) $ (36 )   $ (77 )   $ (146 )   $ (5 )
                               
Basic and diluted profit (loss) per share $ (0.01 )   $ (0.09 )   $ (0.05 )   $ (0.01 )
                               
Average basic and diluted shares outstanding   5,647       847       2,781       847  
                               
                               
                               
COAST NATIONAL BANK  
CONDENSED BALANCE SHEETS  
(In thousands)  
  September 30,  
  2014     2013  
ASSETS Unaudited     Unaudited  
Cash and cash equivalents $ 22,142     $ 36,940  
Federal funds sold   100       100  
Time deposits at other banks   10,045       10,000  
Investment securities   15,522       392  
Loans, net   71,640       66,947  
Premises and equipment, net   5,320       6,235  
Federal Reserve and Federal Home Loan Bank stock, at cost   726       602  
Other real estate owned, net   2,481       1,456  
Accrued interest receivable and other assets   1,178       1,103  
  Total assets $ 129,154     $ 123,775  
               
LIABILITIES AND STOCKHOLDERS' EQUITY              
Non-interest bearing demand $ 50,931     $ 46,763  
Money market and NOW   37,476       38,280  
Savings   9,073       8,563  
Time   19,669       22,521  
  Total deposits   117,149       116,127  
Accrued interest payable and other liabilities   181       256  
  Total liabilities   117,330       116,383  
               
Common stock   3,162       3,162  
Additional paid-in capital   13,335       9,835  
Retained earnings   (4,690 )     (5,605 )
Unrealized gains on AFS securities, net   17       -  
  Total stockholders' equity   11,824       7,392  
  Total liabilities and stockholders' equity $ 129,154     $ 123,775  
               
                           
                           
COAST NATIONAL BANK
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
                           
  Three Months Ended     Nine Months Ended
  September 30,     September 30,
  2014     2013     2014   2013
  Unaudited     Unaudited     Unaudited   Unaudited
Total interest income $ 1,141     $ 1,006     $ 3,246   $ 3,210
Total interest expense   50       65       157     197
  Net interest income   1,091       941       3,089     3,013
Provision for loan losses   -       -       -     -
  Net interest income after provision for loan losses   1,091       941       3,089     3,013
                           
Noninterest income   260       283       716     1,245
Noninterest expense   1,275       1,259       3,744     4,111
  Income before income taxes   76       (35 )     61     147
Income taxes   -       -       2     2
  Net profit (loss) $ 76     $ (35 )   $ 59   $ 145