SOURCE: Coast Bancorp

Coast Bancorp

August 04, 2015 17:30 ET

Coast Bancorp and Coast National Bank Announce Sale of Real Estate and Refinance of Senior Debt

SAN LUIS OBISPO, CA--(Marketwired - Aug 4, 2015) - Coast National Bank, a wholly owned subsidiary of Coast Bancorp (OTCBB: CTBP), announced today the closing of escrow on the sale of two of its bank owned properties located at 545 Higuera Street and 486 Marsh Street, San Luis Obispo, CA. These properties located adjacent to the Headquarters office of Coast National Bank are considered surplus premises. The personnel housed in annex administration offices will be moved into the main bank building.

The transaction generated a gain on sale of the real estate of approximately $1.5 million (pre-tax), and will be reflected as non-interest income of the Bank in 3rd Quarter 2015. "This transaction is favorable to both the bank and Coast Bancorp shareholders as it generates additional capital for the bank's future growth," stated President and CEO Anita Robinson.

Additionally, Coast Bancorp announced the successful refinance of its Senior Notes in the amount of $2.0 million into a new note in the amount of $2.5 million at the rate of 6.0% per annum, paid quarterly, with a term of 3 years. The former notes accrued at 10% for the 1st year and were due to increase to 12% in the 2nd year. Those notes were to mature in June of 2016. CEO Robinson stated, "The benefit in this refinance is in the lower cost of borrowing and the extended term for repayment. Both of which are advantageous to the Company." 

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.