Coast Bancorp Reports Third Quarter Results
/EINPresswire.com/ -- SAN LUIS OBISPO, CA -- (Marketwired) -- 10/20/15 -- Coast Bancorp ("Coast Bancorp" or the "Company") (OTCBB: CTBP), a bank holding company and the parent of Coast National Bank (the "Bank"), reported third quarter net income on a consolidated basis available to common shareholders of $6,646,000 or $1.17 per dilutive common share compared to a loss of ($36,000) or ($0.01) for the same period in 2014. Three significant events occurred during the third quarter of 2015. First, both Coast Bancorp and Coast National Bank reversed deferred tax asset valuation allowances during the third quarter resulting in a combined tax benefit of $4.4 million. Also, the Bank sold two buildings, an OREO property and an administrative office building for a combined gain on sale of $1.5 million. Lastly, a reverse provision for loan losses of $500,000 brings the Allowance for Loan Losses in line with peers. Net interest income before provision for loan losses increased to $1.2 million in the three months ended September 30, 2015 compared to $1.0 million in the third quarter of 2014. Excluding the real estate sale gain of $1.5 million, other noninterest income was $15,000 lower in the third quarter of 2015 compared to the third quarter of 2014. Noninterest expense was $39,000 lower in the third quarter of 2015 compared to the same period in 2014 as a result of lower salaries and benefits and regulatory assessments.
Net income for the nine month period ended September 30, 2015 totaled $6.7 million or $1.18 per dilutive common share compared to a net loss of ($146,000), or ($0.05) per dilutive common share for the nine months ended September 30, 2014. Net interest income before provision for loan losses increased $596,000 for the nine months ended September 30, 2015 compared to the same period in 2014 due to growth of the loan portfolio and investments. Noninterest income, excluding the gain on sale of the real estate of $1.5 million, declined $56,000 primarily due to lower gain on sales of SBA loans. Noninterest expense increased $117,000 in the nine months ended September 30, 2015 compared to the same period in 2014 mainly as a result of higher salary and benefit costs and technology expenses for the nine month period.
Total consolidated assets were $146.4 million at September 30, 2015 compared to $129.4 million at September 30, 2014 for an increase of 13.2%. Net loans grew 25.9% to $90.2 million and investments increased 41.7% to $22.0 million during this period. Total consolidated liabilities of $136.1 million include deposits of $126.1 million, an increase of 8.1% from $116.6 million at September 30, 2014, junior subordinated debt of $7.2 million due in 2027, senior notes for $2.5 million due in 2018, and other liabilities of $369,000. Stockholders' equity increased to $7.1 million or 214.6% at September 30, 2015 compared to September 30, 2014.
September 30, 2015 Highlights of Coast National Bank, a wholly owned subsidiary of Coast Bancorp:
- Net income of $5.7 million for the third quarter of 2015, compared to net income of $76,000 for the second quarter of 2014.
- Net income of $5.9 million for the first nine months of 2015, compared to net income of $59,000 for the same period in 2014.
- Bank assets at September 30, 2015 were $144.9 million, or 12.2% higher compared to $129.2 million at September 30, 2014.
- Total deposits increased to $126.5 million or 8.0% at September 30, 2015 from $117.1 million at September 30, 2014.
- Net Loans increased 25.9% to $90.2 million at September 30, 2015 from $71.6 million at September 30, 2014.
- Investment securities increased 41.8% to $22.0 million from $15.5 million at September 30, 2014.
- Deposits at September 30, 2015 of $126.5 million reflect core deposits of 96.7% and noninterest-bearing demand deposits of 43.8% of total deposits, up from 94.5% and 43.5% at September 30, 2014, respectively.
- The Allowance for Loan and Lease Loss as a percentage of loans at September 30, 2015 was 1.5% compared to 2.9% at September 30, 2014. Due to two $500,000 reverse provisions, one at December 31, 2014 and a second at September 30, 2015, the level of coverage is now comparable to peers and reflects the ongoing satisfactory credit quality. Non Performing Assets continued to improve to 0.3% of Net Loans plus OREO at September 30, 2015 compared to 3.6% at September 30, 2014.
- The Tier I leverage capital ratio increased to 13.4% at both September 30, 2015 compared to 9.32% at September 30, 2014.
- Total risk-based capital was 14.7% at September 30, 2015 compared to 15.9% for the same date in 2014. At September 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)
September 30,
2015 2014
ASSETS Unaudited Unaudited
------------- -------------
Cash and cash equivalents $ 16,047 $ 22,142
Federal funds sold - 100
Time deposits at other banks 7,105 10,045
Investment securities 22,002 15,522
Loans, net 90,216 71,640
Premises and equipment, net 4,424 5,320
Federal Reserve and Federal Home Loan Bank
stock, at cost 894 726
Other real estate owned, net - 2,481
Deferred tax asset 4,388 -
Accrued interest receivable and other assets 1,357 1,422
------------- -------------
Total assets $ 146,433 $ 129,398
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing demand $ 54,977 $ 50,383
Money market and NOW 45,928 37,476
Savings 9,815 9,074
Time 15,338 19,669
------------- -------------
Total deposits 126,058 116,602
Senior notes payable 2,448 2,000
Junior subordinated debt securities 7,217 7,217
Accrued interest payable and other liabilities 369 292
------------- -------------
Total liabilities 136,092 126,111
------------- -------------
Common stock - no par value, 5,646,881 shares
outstanding at September 30, 2015 and 2014. 12,494 12,494
Additional paid-in capital 316 293
Accumulated deficit (2,481) (9,517)
Other comprehensive income (loss), net of
taxes 12 17
------------- -------------
Total stockholders' equity 10,341 3,287
------------- -------------
Total liabilities and stockholders' equity $ 146,433 $ 129,398
============= =============
COAST BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
Unaudited Unaudited Unaudited Unaudited
------------- ------------- ------------- -------------
Total interest
income $ 1,364 $ 1,142 $ 3,901 $ 3,250
Total interest
expense 126 132 386 331
------------- ------------- ------------- -------------
Net interest
income 1,238 1,010 3,515 2,919
Provision for
loan losses (500) - (500) -
------------- ------------- ------------- -------------
Net interest
income after
provision for
loan losses 1,738 1,010 4,015 2,919
Noninterest
income 1,787 260 2,202 716
Noninterest
expense 1,267 1,306 3,896 3,779
------------- ------------- ------------- -------------
Income before
income taxes 2,258 (36) 2,321 (144)
Income taxes (4,388) - (4,386) 2
------------- ------------- ------------- -------------
Net income
(loss) $ 6,646 $ (36) $ 6,707 $ (146)
============= ============= ============= =============
Basic net income
(loss) per
share $ 1.18 $ (0.01) $ 1.19 $ (0.05)
Diluted net
income (loss)
per share $ 1.17 $ (0.01) $ 1.18 $ (0.05)
Average basic
shares
outstanding 5,647 5,647 5,647 2,781
Average diluted
shares
outstanding 5,692 5,647 5,670 2,781
COAST NATIONAL BANK
CONDENSED BALANCE SHEETS
(In thousands)
September 30,
2015 2014
ASSETS Unaudited Unaudited
------------- -------------
Cash and due from banks $ 1,151 $ 2,598
Interest-bearing deposits at FRB and other
banks 22,000 29,589
Federal funds sold - 100
Investment securities 22,003 15,522
Loans, net 90,216 71,640
Premises and equipment, net 4,424 5,320
Federal Reserve and Federal Home Loan Bank
stock, at cost 894 726
Other real estate owned, net - 2,481
Deferred tax assets 3,329 -
Accrued interest receivable and other assets 884 1,178
------------- -------------
Total assets $ 144,901 $ 129,154
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing demand $ 55,386 $ 50,931
Money market and NOW 45,928 37,476
Savings 9,815 9,073
Time 15,338 19,669
------------- -------------
Total deposits 126,467 117,149
Accrued interest payable and other liabilities 201 181
------------- -------------
Total liabilities 126,668 117,330
------------- -------------
Common stock 3,162 3,162
Additional paid-in capital 13,358 13,335
Retained earnings 1,701 (4,690)
Other comprehensive income (loss), net of taxes 12 17
------------- -------------
Total stockholders' equity 18,233 11,824
------------- -------------
Total liabilities and stockholders' equity $ 144,901 $ 129,154
============= =============
COAST NATIONAL BANK
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
Unaudited Unaudited Unaudited Unaudited
------------- ------------- ------------- -------------
Total interest
income $ 1,363 $ 1,141 $ 3,898 $ 3,246
Total interest
expense 48 50 144 157
------------- ------------- ------------- -------------
Net interest
income 1,315 1,091 3,754 3,089
Provision for loan
losses (500) - (500) -
------------- ------------- ------------- -------------
Net interest
income after
provision for
loan losses 1,815 1,091 4,254 3,089
Noninterest income 1,787 260 2,202 716
Noninterest
expense 1,251 1,275 3,845 3,744
------------- ------------- ------------- -------------
Income before
income taxes 2,351 76 2,611 61
Income taxes (3,328) - (3,327) 2
------------- ------------- ------------- -------------
Net income (loss) $ 5,679 $ 76 $ 5,938 $ 59
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