SOURCE: Coast Bancorp

Coast Bancorp

July 29, 2015 17:00 ET

Coast Bancorp Reports Second Quarter Results

SAN LUIS OBISPO, CA--(Marketwired - Jul 29, 2015) -  Coast Bancorp ("Coast Bancorp" or the "Company") (OTCBB: CTBP), a bank holding company and the parent of Coast National Bank (the "Bank"), reported second quarter net income on a consolidated basis available to common shareholders of $56,000 or $0.01 per dilutive common share compared to $96,000 or $0.05 per dilutive common share for the same period in 2014. Interest income was higher in the second quarter of 2015 compared to the second quarter of 2014 due to the growth of loans and investments at the bank. Noninterest income, specifically gains on sale of SBA loans, was higher in the second quarter of 2014 compared to the second quarter of 2015.

Net income for the six month period ended June 30, 2015 was $61,000 or $0.01 per dilutive common share compared to a net loss of ($110,000), or ($0.08) per dilutive common share for the first six months of 2014. The increase in net income for the first six months of 2015 as compared to the same period one year ago was attributed to increased interest income from loans and investments at the bank.

Total consolidated assets were $130.4 million at June 30, 2015 compared to $123.0 million at June 30, 2014 for an increase of 6.0%. Total consolidated liabilities of $126.8 million include deposits of $116.5 million, an increase of 5.7% from $110.2 million at June 30, 2014, junior subordinated debt of $7.2 million due in 2027, senior notes for $2.4 million due in 2018, and other liabilities of $617,000. Stockholders' equity increased to $244,000 or 7.2% at June 30, 2015 over June 30, 2014.

June 30, 2015 Highlights of Coast National Bank, a wholly owned subsidiary of Coast Bancorp:

  • Net income of $162,000 for the second quarter of 2015, compared to net income of $150,000 for the second quarter of 2014. 
  • Net income of $259,000 for the first six months of 2015, compared to a loss of ($16,000) for the same period in 2014. 
  • Bank assets at June 30, 2015 were $129.9 million, or 5.8% higher compared to $122.8 million at June 30, 2014.
  • Total deposits increased to $116.9 million or 5.5% at June 30, 2015 from $110.8 million at June 30, 2014. 
  • Net Loans increased 18.9% to $86.4 million at June 30, 2015 from $72.6 million at June 30, 2014.
  • Investment securities increased 144.0% to $24.2 million from $9.9 million at June 30, 2014.
  • Deposits at June 30, 2015 of $116.9 million reflect core deposits of 96.2% and noninterest-bearing demand deposits of 44.0% of total deposits, up from 94.3% and 42.2% at June 30, 2014, respectively.
  • The Allowance for Loan and Lease Loss coverage to loans at June 30, 2015 was 2.1% compared to 2.6% at June 30, 2014. This level of coverage is slightly higher than peers, and reflects the ongoing satisfactory credit quality. Non Performing Assets continued to improve to 1.3% of Net Loans plus OREO at June 30, 2015 compared to 2.7% at June 30, 2014.
  • The Tier I leverage capital ratio remained steady at 9.7% at both June 30, 2015 and 2014.
  • Total risk-based capital was 13.2% at June 30, 2015 compared to 16.6% for the same date in 2014. At June 30, 2015, the Bank maintained regulatory capital ratios at levels that would be generally considered "well capitalized" for regulatory purposes.

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 CONSOLIDATED BALANCE SHEETS  
(In thousands)  
    June 30,  
    2015     2014  
ASSETS   Unaudited     Unaudited  
Cash and cash equivalents   $ 4,496     $ 20,761  
Federal funds sold     -       100  
Time deposits at other banks     7,105       9,803  
Investment securities     24,178       9,908  
Loans, net     86,361       72,614  
Premises and equipment, net     5,211       6,105  
Federal Reserve and Federal Home Loan Bank stock, at cost     889       617  
Other real estate owned, net     760       1,734  
Accrued interest receivable and other assets     1,412       1,414  
  Total assets   $ 130,412     $ 123,056  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY          
Non-interest bearing demand   $ 51,053     $ 46,217  
Money market and NOW     41,146       35,751  
Savings     8,941       8,129  
Time     15,360       20,120  
  Total deposits     116,500       110,217  
Senior notes payable     2,445       2,000  
Junior subordinated debt securities     7,217       7,217  
Accrued interest payable and other liabilities     617       233  
  Total liabilities     126,779       119,667  
Common stock - no par value, 5,646,881 shares outstanding at June 30, 2015 and 2014.     12,494       12,494  
Additional paid-in capital     302       293  
Accumulated deficit     (9,128 )     (9,481 )
Other comprehensive income (loss), net of taxes     (35 )     83  
  Total stockholders' equity     3,633       3,389  
  Total liabilities and stockholders' equity   $ 130,412     $ 123,056  
                 
                 
                 
COAST BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
                 
  Six Months Ended     Three Months Ended
  June 30,     June 30,
  2015   2014     2015   2014
  Unaudited   Unaudited     Unaudited   Unaudited
Total interest income $ 2,537   $ 2,108     $ 1,331   $ 1,113
Total interest expense   260     199       130     101
  Net interest income   2,277     1,909       1,201     1,012
Provision for loan losses   -     -       -     -
  Net interest income after provision for loan losses   2,277     1,909       1,201     1,012
                         
Noninterest income   415     456       168     334
Noninterest expense   2,629     2,473       1,311     1,248
  Income before income taxes   63     (108 )     58     98
Income taxes   2     2       2     2
  Net income (loss) $ 61   $ (110 )   $ 56   $ 96
                         
Basic and diluted net income (loss) per share $ 0.01   $ (0.08 )   $ 0.01   $ 0.05
                         
Average basic shares outstanding   5,647     1,324       5,647     1,796
Average diluted shares outstanding   5,652     1,324       5,647     1,796
                         
                         
                         
COAST NATIONAL BANK  
CONDENSED BALANCE SHEETS  
(In thousands)  
    June 30,  
    2015     2014  
ASSETS   Unaudited     Unaudited  
Cash and due from banks   $ 1,147     $ 3,373  
Interest-bearing deposits at FRB and other banks     10,453       27,191  
Federal funds sold     -       100  
Investment securities     24,178       9,908  
Loans, net     86,361       72,614  
Premises and equipment, net     5,211       6,104  
Federal Reserve and Federal Home Loan Bank stock, at cost     889       617  
Other real estate owned, net     760       1,734  
Accrued interest receivable and other assets     902       1,172  
  Total assets   $ 129,901     $ 122,813  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY          
Non-interest bearing demand   $ 51,481     $ 46,799  
Money market and NOW     41,146       35,751  
Savings     8,941       8,129  
Time     15,359       20,119  
  Total deposits     116,927       110,798  
Accrued interest payable and other liabilities     481       201  
  Total liabilities     117,408       110,999  
                 
Common stock     3,162       3,162  
Additional paid-in capital     13,344       13,335  
Retained earnings     (3,978 )     (4,766 )
Other comprehensive income (loss), net of taxes     (35 )     83  
  Total stockholders' equity     12,493       11,814  
  Total liabilities and stockholders' equity   $ 129,901     $ 122,813  
                 
                 
                 
COAST NATIONAL BANK
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
                 
  Six Months Ended     Three Months Ended
  June 30,     June 30,
  2015   2014     2015   2014
  Unaudited   Unaudited     Unaudited   Unaudited
Total interest income $ 2,535   $ 2,106     $ 1,330   $ 1,113
Total interest expense   96     108       47     52
  Net interest income   2,439     1,998       1,283     1,061
Provision for loan losses   -     -       -     -
  Net interest income after provision for loan losses   2,439     1,998       1,283     1,061
                         
Noninterest income   416     456       169     334
Noninterest expense   2,594     2,468       1,288     1,243
  Income before income taxes   261     (14 )     164     152
Income taxes   2     2       2     2
  Net income (loss) $ 259   $ (16 )   $ 162   $ 150