SOURCE: Coast Bancorp

May 07, 2008 11:38 ET

Coast Bancorp First Quarter 2008 Earnings Announcement

SAN LUIS OBISPO, CA--(Marketwire - May 7, 2008) -


Coast Bancorp (OTCBB: CTBP), the holding company for Coast National Bank, announced the unaudited financial results for the quarter ended March, 31, 2008.

Total assets at March 31, 2008 were $180.7 million, a 1.7% decrease from $183.8 million at December 31, 2007.

Net loans at March 31, 2008 were $145.2 million, an increase of $2.9 million or 2.0% from $142.3 million at December 31, 2007. The recorded investment in impaired loans as of March 31, 2008 was $4.4 million, an increase of $0.2 million or 4.8% from $4.2 million at December 31, 2007. The allowance for loan and lease losses, which covers credit losses pertaining to the loan portfolio, was $1.563 million or 1.1% of total loans at March 31, 2008. The Company also carried an additional $55,000 allowance for credit losses pertaining to its unfunded commitments in the liability section of its balance sheet. Collectively, the total allowance for all types of credit losses was $1.618 million at March 31, 208 as compared to $1.542 million at December 31, 2007.

Deposits as of March 31, 2008 were $158.9 million, a $3.2 million, or 2.0% decrease from $162.1 million at December 31, 2007.

Total stockholders' equity increased 2.1% to $14.4 million as of March 31, 2008 as compared to $14.1 million at December 31, 2007. The Company remained "well capitalized" by regulatory standards, with a Tier 1 Leverage Capital Ratio of 10.5%, a Tier 1 Risk Based Capital Ratio of 12.3% and a Total Risk Based Capital Ratio of 14.8%.

Net interest income before the provision for loan losses for the three months ended March 31, 2008 was $1,785,000, a decrease of 13.0% when compared to $2,052,000 for the three months ended March 31, 2007. The decrease in net interest income was primarily attributable to a decreased net interest margin, partially offset by the increase in total loans. The net interest margin for the three months ended March 31, 2008 was 4.4% compared to 5.1% for the three months ended March 31, 2007.

Non-interest income for the three months ending March 31, 2008 was $253,000, an increase of 83.3% compared to $138,000 for the three months ended March 31, 2007, primarily due to gains on the sale of SBA loans and of investments.

Non-interest expense for the three months ending March 31, 2008 was $1,657,000, a decrease of 7.2% compared to $1,786,000 for the three months ended March 31, 2007, primarily due to decreases in marketing and personnel expenses.

Net income for the three months ending March 31, 2008 was $161,000, or $0.22 per diluted share, a 25.5% decrease from $216,000, or $0.30 per diluted share for the three months ended March 31, 2007. The decrease is primarily the result of a lower net interest margin.

Coast National Bank opened for business on June 16, 1997. The Bank is an independent community bank with five banking offices and a loan production office. With a focus on delivering unsurpassed customer service, the Bank provides small business loans, home loans and other loans, as well as an array of business and personal banking deposit products and other services. The Bank is a wholly owned subsidiary of Coast Bancorp, a $181 million bank holding company, headquartered in San Luis Obispo, California. Coast Bancorp stock trades under the ticker symbol "CTBP.OB." For more information, visit www.coastnationalbank.com or call 805.541.0400.

Please refer to the following Consolidated Balance Sheets (unaudited) as of March 31, 2008 and December 31, 2007 and Consolidated Statements of Income (unaudited) for the three months ended March 31, 2008 and 2007 for specific information regarding the Company's financials.

                       Coast Bancorp and Subsidiary
                  Consolidated Balance Sheets (Unaudited)
                   March 31, 2008 and December 31, 2007





                      ASSETS                    March 31,    December 31,
                                                  2008           2007
                                              -------------  -------------
Cash and due from banks                       $   5,605,738  $   6,923,496
Federal funds sold                               12,980,000     14,350,000
                                              -------------  -------------
        TOTAL CASH AND CASH EQUIVALENTS          18,585,738     21,273,496

Investment securities available for sale          4,700,459      7,694,486

Loans:
  Commercial                                     45,035,870     41,498,791
  Real estate - construction                     41,389,229     41,044,155
  Real estate - other                            56,203,062     58,050,610
  Consumer                                        4,320,327      3,339,550
                                              -------------  -------------
        TOTAL LOANS                             146,948,488    143,933,106
Net deferred loan fees                             (158,004)      (162,696)
Allowance for credit losses                      (1,563,487)    (1,487,131)
                                              -------------  -------------
        NET LOANS                               145,226,997    142,283,279
Premises and equipment                            8,643,116      8,733,401
Deferred taxes                                      521,293        485,000
Federal Reserve Bank stock and Federal Home
 Loan Bank stock, at cost                         1,000,550        991,350
Other Real Estate Owned                             770,000        770,000
Accrued interest and other assets                 1,278,252      1,520,398
                                              -------------  -------------
        TOTAL ASSETS                          $ 180,726,405  $ 183,751,410
                                              =============  =============

            LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
  Non-interest-bearing demand                 $  39,529,119  $  42,989,733
  Money market and NOW                           46,935,817     45,959,276
  Savings                                         6,853,512      6,454,025
  Time deposits of $100,000 or more              48,397,919     49,012,877
  Other time deposits                            17,132,070     17,648,933
                                              -------------  -------------
        TOTAL DEPOSITS                          158,848,437    162,064,844
  Junior subordinated debt securities             7,217,000      7,217,000
  Other liabilities                                 311,914        338,924
                                              -------------  -------------
        TOTAL LIABILITIES                       166,377,351    169,620,768
                                              -------------  -------------

Commitments and contingencies                             -              -
Stockholders' equity:
  Preferred stock - 10,000,000 authorized,
   none outstanding                                       -              -
  Common stock no par value; 10,000,000
   shares authorized; issued and
   outstanding: 716,200 at March 31, 2008 and
   713,000 at December 31, 2007                   7,491,847      7,443,847
  Additional paid-in capital                        196,657        184,780
  Retained earnings                               6,623,199      6,462,202
  Accumulated other comprehensive income -
   net unrealized gains (losses) on
   available-for-sale securities, net of taxes
   of $25,956 at March 31, 2008
   and $27,666 at December 31, 2007                  37,351         39,813
                                              -------------  -------------
    TOTAL STOCKHOLDERS' EQUITY                   14,349,054     14,130,642
                                              -------------  -------------
    TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                   $ 180,726,405  $ 183,751,410
                                              =============  =============




                       Coast Bancorp and Subsidiary
              Consolidated Statements of Income (Unaudited)
            For the Three Months Ended March 31, 2008 and 2007


                                                     For the Three Months
                                                            Ended
                                                          March 31,
                                                    -----------------------
                                                       2008        2007
                                                    ----------- -----------
Interest income:
  Interest and fees on loans                        $ 2,666,932 $ 3,090,667
  Interest on investment securities                      99,743      86,700
  Interest on federal funds sold                         81,132     217,222
  Other interest income                                  17,392      26,254
                                                    ----------- -----------

                         TOTAL INTEREST INCOME        2,865,199   3,420,843

Interest expense:
  Interest on money market and NOW accounts             250,450     417,831
  Interest on savings deposits                           28,462      35,890
  Interest on time deposits                             686,176     794,694
  Interest on junior subordinated debt securities       115,256     120,377
                                                    ----------- -----------
                         TOTAL INTEREST EXPENSE       1,080,344   1,368,792

  Net interest income                                 1,784,855   2,052,051
  Provision for loan losses                             105,000      25,000
                                                    ----------- -----------
                         NET INTEREST INCOME AFTER
                          PROVISION FOR CREDIT
                          LOSSES                      1,679,855   2,027,051

Non-interest income:
  Service charges on deposit accounts and other          97,949      85,085
  Gain on sale of investments                            72,104           -
  Gain on sale of loans and servicing fees               73,163      36,433
  Mortgage packaging fees                                 9,708      15,460
  Gain on sale of premises and equipment                      -         695
                                                    ----------- -----------

                         TOTAL NON-INTEREST INCOME      252,924     137,673

Non-interest expense:
  Salaries and benefits                                 906,354     974,741
  Net occupancy expense (net of rental income)          144,539     128,996
  Equipment expense                                      61,558      75,706
  Other expense                                         544,032     606,772
                                                    ----------- -----------

                         TOTAL NON-INTEREST EXPENSE   1,656,483   1,786,215

                                INCOME BEFORE TAXES     276,296     378,509
  Income taxes                                          115,300     162,400
                                                    ----------- -----------
                                        NET INCOME  $   160,996 $   216,109
                                                    =========== ===========

Per share data
  Earnings per share - Basic                        $      0.23 $      0.32
                                                    =========== ===========
  Earnings per share - Diluted                      $      0.22 $      0.30
                                                    =========== ===========

This news release contains forward-looking statements with respect to the financial condition, results of operation and business of Coast Bancorp and its subsidiaries. All financial results are unaudited and therefore subject to change. These include, but are not limited to, statements that relate to or are dependent on estimates or assumptions relating to the prospects of loan growth, credit quality and certain operating efficiencies resulting from the operations Coast National Bank. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressure among financial services companies increases significantly; (2) changes in the interest rate environment on interest margins; (3) general economic conditions, internationally, nationally or in the State of California are less favorable than expected; (4) legislation or regulatory requirements or changes adversely affect the business in which the combined organization will be engaged.

Contact Information

  • Contact:
    Coast National Bank
    (805) 541-0400