SOURCE: Coast Bancorp

November 15, 2013 17:23 ET

Coast National Bank Announces Third Quarter Earnings Results

SAN LUIS OBISPO, CA--(Marketwired - Nov 15, 2013) - Coast National Bank, a wholly owned subsidiary of Coast Bancorp (OTCBB: CTBP), reported net profits of $145,000 for the nine months ended September 30, 2013, a significant improvement over the $118,000 loss reported for the same period in 2012.

"Throughout 2013, the bank has continued its positive progress in its turnaround efforts. 

"The success of our Small Business Lending focus bank-wide continues to be a contributor to the profitability of the bank as we continue to rebuild and strive to accomplish our strategic objectives," said President and Chief Executive Officer Anita M. Robinson.

"Our customer loyalty and the support from our community has been a tremendous influence in our ability to accomplish significant positive progress in the past year. A strong core customer base and recognizing the greater need for the small banks in our community has provided fuel for our team."


Total assets at September 30, 2013 totaled $123.8 million compared to $142.0 million at September 30, 2012. This change is primarily due to the sale of the Bank's Morro Bay Branch Office to Heritage Oaks Bank which closed in December 2012. The sale included deposits and real property with limited furniture and equipment.

Net loans at September 30, 2013 were $66.9 million compared to $71.0 million for the same period of 2012. This reflects the aggressive work to resolve troubled loan assets and the resultant reduction in problem loans. The Bank is now positioned to rebuild the portfolio through healthy lending and underwriting practices, and to continue demonstrating its expertise in small business lending.

Total deposits declined from $134.6 million at September 30, 2012 to $116.1 million at September 30, 2013. This decline reflects the sale of $27.0 million in deposits for the Morro Bay Branch Office in December 2012. Excluding this sale, deposits actually increased by $8.6 million over the past twelve months. The most significant portion of the reduction was in time certificates of deposits, which contributed to the Bank's lower cost of funds. Core deposit relationships continue to grow.

The Bank continues to be very liquid. At September 30, 2013 cash and other liquid assets were $46.9 million compared to $60.1 million one year ago.

Net interest income was lower in the nine months ended September 30, 2013 compared to the same period in 2012. This was primarily the result of the decline in loans outstanding and the low rates earned on interest-bearing deposits with other banks. With the bank's focus on loan growth, this decline should not continue.

Non-interest income increased 37% in the nine months ended September 30, 2013 compared to the same period in 2012, as a result of the Bank's emphasis on small business lending, and the subsequent gains on sales of SBA-guaranteed loans.

Non-interest expense declined by 7% in the first nine months of 2013 compared to the same period in 2012, as a result of the Bank's efforts to streamline operations and reduce overhead costs.

Coast National Bank continues to improve its capital ratios through increased profitability and the reduction in total assets. At September 30, 2013, the Bank's Tier I leverage ratio was 6.1% compared to 5.0% one year ago. Its total risk-based capital ratio was 11.6% at September 30, 2013 compared to 10.7% at September 30, 2012. Although not in compliance with the Tier I leverage ratio of 9.0% requirement under its Consent Order, it is considered to be "Well Capitalized." Management and the Board of Directors are executing a well-ordered capital plan to bring the Bank into compliance in this area.

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

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

Statements concerning future performance, developments or events, expectations for growth, income forecasts, sales activity for collateral, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to the ongoing financial crisis in the United States and the markets in which Coast National Bank operates, and the response of the federal and state government and our regulators thereto, continued growth, Coast National Bank's beliefs as to the adequacy of its existing and anticipated allowances for loan losses, beliefs and expectations regarding actions that may be taken by regulatory authorities having oversight of Coast National Bank's operations, interest rates and financial policies of the United States government, continued weakness in the real estate markets within which we operate and general economic conditions. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, Coast Bancorp's results could differ materially from those expressed in, implied or projected by such forward-looking statements. Coast National Bank assumes no obligation to update such forward-looking statements.

(In thousands)  
  September 30,  
  2013     2012  
ASSETS Unaudited     Unaudited  
Cash and due from banks $ 3,168     $ 51,083  
Interest-bearing deposits at FRB and other banks   43,772       9,021  
Federal funds sold   100       100  
Investment securities   392       -  
Federal Reserve and Federal Home Loan Bank stock, at cost   602       825  
Loans, net   66,947       70,967  
Premises and equipment, net   6,235       7,207  
Other real estate owned, net   1,456       1,701  
Accrued interest receivable and other assets   1,103       1,092  
  Total assets $ 123,775     $ 141,996  
Non-interest bearing demand $ 46,763     $ 48,630  
Money market and NOW   38,280       40,265  
Savings   6,681       8,004  
Time   24,403       37,655  
  Total deposits   116,127       134,554  
Accrued interest payable and other liabilities   256       403  
  Total liabilities   116,383       134,957  
Common stock - no par value, 846,881 shares outstanding at September 30, 2013 and 2012, respectively   3,162       3,162  
Additional paid-in capital   9,835       9,835  
Retained earnings   (5,605 )     (5,958 )
Unrealized gains on AFS securities, net   -       -  
  Total stockholders' equity   7,392       7,039  
  Total liabilities and stockholders' equity $ 123,775     $ 141,996  
(In thousands, except per share amounts)  
  Nine Months Ended     Three Months Ended  
  September 30,     September 30,  
  2013   2012     2013     2012  
  Unaudited   Unaudited     Unaudited     Unaudited  
Total interest income $ 3,210   $ 3,764     $ 1,007     $ 1,245  
Total interest expense   197     343       65       111  
  Net interest income   3,013     3,421       942       1,134  
Provision for loan losses   -     -       -       -  
  Net interest income after provision for loan losses   3,013     3,421       942       1,134  
Noninterest income   1,245     907       282       280  
Noninterest expense   4,111     4,444       1,259       1,445  
  Income before income taxes   147     (116 )     (35 )     (31 )
Income taxes   2     2       -       -  
  Net profit (loss) $ 145   $ (118 )   $ (35 )   $ (31 )
Basic and diluted profit (loss) per share $ 0.17   $ (0.14 )   $ (0.04 )   $ (0.04 )
Average basic and diluted shares outstanding   847     847       847       847  

Contact Information

  • Contact:

    Anita Robinson
    Coast National Bank
    500 Marsh Street
    San Luis Obispo, CA 93401
    Email Contact