SOURCE: Coast Bancorp

Coast Bancorp

February 05, 2015 17:13 ET

Coast Bancorp Reports Fourth Quarter Results

SAN LUIS OBISPO, CA--(Marketwired - Feb 5, 2015) -  Coast Bancorp ("Coast Bancorp" or the "Company") (OTCBB: CTBP), a bank holding company and the parent of Coast National Bank (the "Bank"), reported net income available to common shareholders of $329,000, or $0.06 per dilutive common share, for the fourth quarter of 2014 compared to net income available to common shareholders of $811,000, or $0.96 per dilutive common share, for the fourth quarter of 2013. For the year ended December 31, 2014, net income available to common shareholders was $183,000, or $0.05 per dilutive common share, compared with net income available to common shareholders of $806,000, or $0.95 per dilutive common share for the same period in 2013. The decrease in net income for the fourth quarter of 2014 as compared to the same quarter of a year earlier was primarily attributed to the variance in reverse provision from allowance for loan and lease losses of $700,000 and a one time loss on the sale of OREO of $249,000. Adjusted operating results without these two transactions reflected net income available to common shareholders of $78,000 for the fourth quarter of 2014 as compared to a net loss of $389,000 for the same period in 2013.

Total consolidated assets were $128.3 million at December 31, 2014 compared to $120.3 million at December 31, 2013. Total consolidated liabilities of $124.7 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 Accrued interest payable and other liabilities of $439 thousand. 

Total stockholder's equity increased to $4.5 million at December 31, 2014 from a deficit of ($868) million at December 31, 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 to invest $3.5 million in the bank. 

Fourth Quarter and Year End 2014 Highlights of Coast National Bank, a wholly owned subsidiary of Coast Bancorp:

  • Net profits of $421,000 for the fourth quarter of 2014, compared to a profit of $855,000 for the fourth quarter of 2013. 
  • For the twelve months ended December 31, 2014, the bank reflected a net profit of $513,000 compared to a net profit of $1.0 million for the same period in 2013. 
  • Total assets at December 31, 2014 were $128.1 million, or 6.8% higher compared to $120.0 million at December 31, 2013.
  • Total deposits at December 31, 2014 increased slightly to $115.6 million from $111.6 million at December 31, 2013. 
  • Loan growth increased 13.3% to $73.0 million at December 31, 2014 from $64.4 million at the end of 2013.
  • Deposits at December 31, 2014 of $115.6 million reflect core deposits of 87.3% of total deposits and noninterest-bearing demand deposits represent 42.2% of total deposits. 
  • The Allowance for Loan and Lease Loss coverage to loans at December 31, 2014 of 2.34% compared to 2.45% year over year. This level of coverage is slightly higher than peers, and reflects the ongoing satisfactory credit quality. Non Performing Assets to Net Loans improved from 4.07% to 1.53% at December 31, 2014 as compared to prior year. And Non Performing Assets to Capital from 22.01% to 8.15% in the same period.
  • Tier I leverage ratio improved to 9.4% at December 31, 2014 compared to 6.8% at December 31, 2013. 
  • Its total risk-based capital ratio was 15.3% at December 31, 2014 compared to 12.9% for the same date in 2013. At December 31, 2014, the Bank maintained regulatory capital ratios at levels that would be generally considered "well capitalized" for regulatory purposes.

"During the fourth quarter of 2014, the management team continued to focus on completing the turnaround, striving for profitability and creating greater efficiencies in the bank while setting the stage for a successful 2015. The lending team experienced good production for the year and managed to grow the loan portfolio organically by 13%, while maintaining excellent credit quality standards. Core deposits continue to build and with a high level of non interest bearing deposits creating a low cost of funding for the bank." stated Anita Robinson, President and Chief Executive Officer of Coast Bancorp and Coast National Bank.

"As a result of the successful Capital raise of $4.8 million in June of 2014, four new members of the board of directors joined the Company bringing very strong business and industry acumen, together with prior bank director experience. The management team continued to be strengthened by additions in Operations, Compliance & Risk Management, Bank Secrecy Act Management and Corporate Administration as well."

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)  
    December 31,  
    2014     2013  
ASSETS   Unaudited     Audited  
Cash and cash equivalents   $ 18,344     $ 29,510  
Federal funds sold     100       100  
Time deposits at other banks     8,085       10,047  
Investment securities     21,056       6,932  
Loans, net     72,990       64,445  
Premises and equipment, net     5,286       6,192  
Federal Reserve and Federal Home Loan Bank stock, at cost     726       533  
Other real estate owned, net     761       1,365  
Accrued interest receivable and other assets     994       1,131  
    Total assets   $ 128,342     $ 120,255  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Non-interest bearing demand   $ 48,227     $ 42,747  
Money market and NOW     38,998       37,611  
Savings     8,545       8,209  
Time     19,274       23,061  
    Total deposits     115,044       111,628  
Senior notes payable     2,000       -  
Junior subordinated debt securities     7,217       7,217  
Accrued interest payable and other liabilities     439       2,278  
    Total liabilities     124,700       121,123  
Common stock - no par value, 5,646,881 shares outstanding at December 31, 2014 and 846,881 shares outstanding at December 31, 2013     12,494       8,277  
Additional paid-in capital     293       293  
Accumulated deficit     (9,188 )     (9,371 )
Unrealized gains on AFS securities, net     43       (67 )
    Total stockholders' equity     3,642       (868 )
    Total liabilities and stockholders' equity   $ 128,342     $ 120,255  
                     
                     
                     
COAST BANCORP  
CONDENSED STATEMENTS OF OPERATIONS  
(In thousands, except per share amounts)  
                         
    Three Months Ended     Years Ended  
    December 31,     December 31,  
    2014     2013     2014     2013  
    Unaudited     Audited     Unaudited     Audited  
Total interest income   $ 1,181     $ 996     $ 4,431     $ 4,211  
Total interest expense     133       104       464       424  
    Net interest income     1,048       892       3,967       3,787  
Provision for loan losses     (500 )     (1,200 )     (500 )     (1,200 )
    Net interest income after provision for loan losses     1,548       2,092       4,467       4,987  
                                 
Noninterest income     130       109       846       1,354  
Noninterest expense     1,349       1,390       5,128       5,533  
    Income before income taxes     329       811       185       808  
Income taxes     -       -       2       2  
    Net profit (loss)   $ 329     $ 811     $ 183     $ 806  
                                 
Basic and diluted profit (loss) per share   $ 0.06     $ 0.96     $ 0.05     $ 0.95  
                                 
Average basic and diluted shares outstanding     5,647       847       3,503       847  
                                 
                                 
                                 
COAST NATIONAL BANK  
CONDENSED BALANCE SHEETS  
(In thousands)  
    December 31,  
    2014     2013  
ASSETS   Unaudited     Audited  
Cash and cash equivalents   $ 18,344     $ 29,510  
Federal funds sold     100       100  
Time deposits at other banks     8,085       10,047  
Investment securities     21,056       6,932  
Loans, net     72,990       64,445  
Premises and equipment, net     5,286       6,192  
Federal Reserve and Federal Home Loan Bank stock, at cost     726       533  
Other real estate owned, net     761       1,365  
Accrued interest receivable and other assets     775       851  
    Total assets   $ 128,123     $ 119,975  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Non-interest bearing demand   $ 48,757     $ 42,747  
Money market and NOW     38,998       37,612  
Savings     8,545       8,209  
Time     19,274       23,061  
    Total deposits     115,574       111,629  
Accrued interest payable and other liabilities     246       166  
    Total liabilities     115,820       111,795  
                 
Common stock     3,162       3,162  
Additional paid-in capital     13,335       9,835  
Retained earnings     (4,237 )     (4,750 )
Unrealized gains on AFS securities, net     43       (67 )
    Total stockholders' equity     12,303       8,180  
    Total liabilities and stockholders' equity   $ 128,123     $ 119,975  
                 
                 
                 
COAST NATIONAL BANK  
CONDENSED STATEMENTS OF OPERATIONS  
(In thousands, except per share amounts)  
                         
    Three Months Ended     Years Ended  
    December 31,     December 31,  
    2014     2013     2014     2013  
    Unaudited     Unaudited     Unaudited     Audited  
Total interest income   $ 1,180     $ 995     $ 4,427     $ 4,205  
Total interest expense     50       60       208       257  
    Net interest income     1,130       935       4,219       3,948  
Provision for loan losses     (500 )     (1,200 )     (500 )     (1,200 )
    Net interest income after provision for loan losses     1,630       2,135       4,719       5,148  
                                 
Noninterest income     99       109       847       1,354  
Noninterest expense     1,308       1,389       5,051       5,500  
    Income before income taxes     421       855       515       1,002  
Income taxes     -       -       2       2  
    Net profit (loss)   $ 421     $ 855     $ 513     $ 1,000