Coastal Carolina Bancshares, Inc. Reports Continued Earnings Growth in 2019

MYRTLE BEACH, SOUTH CAROLINA / ACCESSWIRE / October 24, 2019 / Coastal Carolina Bancshares, Inc. (the “Company”) (OTCQX:CCNB), parent of Coastal Carolina National Bank (“CCNB”), reported net income of $1,925,269 or $.31 diluted earnings per share, for the nine months ended September 30, 2019, compared to $1,461,442, or $.25 diluted earnings per share, for the same period ending September 30, 2018, an increase of 32%.

Net income for the quarter ended September 30, 2019 was $799,824, an increase of 48% compared to the net income of $541,040 from the same quarter a year ago that ended September 30, 2018.

Key YTD Financial Highlights:

  • Total Assets grew $57.4 million (15.15%) to $436.1 million at September 30, 2019, compared to $378.7 million at December 31, 2018
  • Total Deposits grew $55.4 million (16.94%) to $382.4 million at September 30, 2019, compared to $327.0 million at December 31, 2018
  • Total Loans grew $38.1 million (13.22%) to $326.4 million at September 30, 2019, compared to $288.3 million at December 31, 2018
  • Equity increased to $46.8 million at September 30, 2018, compared to $44.4 million at December 31, 2018

“We are very pleased with the continued growth of our company and our strong financial performance through the first nine months of 2019. We continue building new deposit and loan relationships while focusing on improving efficiency in how we deliver products and services to our customer base. Double-digit growth in assets, deposits, and loans is a testament to the quality of the CCNB teams in all our markets around the state of South Carolina,” said Laurence S. Bolchoz, Jr., President and Chief Executive Officer of the Company and the Bank.

“Our third quarter of 2019 was another successful quarter as we increased earnings 48% over the same period in 2018. If we adjust for the large temporary deposit of approximately $8 million referenced in our second quarter earnings release, we were able to grow deposits by $9.3 million this quarter and grow our assets by $10.5 million in the third quarter. We also achieved $13.2 million in net loan growth in the third quarter as a result of great teamwork by our lending and support teams.

I am also pleased to announce that we have just opened a loan production office in the Spartanburg, South Carolina market to serve the lending needs of this vibrant community. Brian Murdoch, a Spartanburg native and long-time South Carolina commercial banker, is leading our new team in Spartanburg. We are confident that this growing community is an area where our lending team can develop meaningful relationships and have a very positive impact,” Bolchoz said.

Coastal Carolina Bancshares, Inc.
Selected Financial Highlights
(unaudited)

                               
 
  September 30, 2019     June 30, 2019     March 31, 2019     December 31, 2018     September 30, 2018  
Balance Sheet (In Thousands)
                             
Total Assets
  $ 436,110     $ 433,577     $ 397,506     $ 378,719     $ 374,581  
Investment Securities
    28,910       37,913       38,234       23,052       23,601  
Loans, net of unearned income (total loans)
    326,370       313,138       307,469       288,258       283,378  
Deposits
    382,436       381,058       344,741       327,023       322,413  
Shareholders’ Equity
    46,788       46,001       45,059       44,413       43,545  
 
                                       
Total Shares Outstanding
    6,156,220       6,156,220       5,592,617       5,592,617       5,592,617  
Book Value per Share
  $ 7.60     $ 7.47     $ 8.06     $ 7.94     $ 7.79  
Tangible Book Value Per Share
  $ 7.04     $ 6.91     $ 7.43     $ 7.31     $ 7.15  
 
                                       
Selected % Increases
  3rd Qtr 2019     2nd Qtr 2019     1st Qtr 2019     4th Qtr 2018     3rd Qtr 2018  
Total Assets
    1 %     9 %     5 %     1 %     3 %
Total Loans
    4 %     2 %     7 %     2 %     2 %
Total Deposits
    0 %     11 %     5 %     1 %     6 %
                                         
                             
 
  For the     For the     For the     For the     For the
 
  Three
Months Ended
    Three
Months Ended
    Three
Months Ended
    Nine
Months Ended
    Nine Months Ended
 
  September 30, 2019     June 30, 2019     September 30, 2018     September 30, 2019     September 30, 2018
Earnings Breakdown (In Thousands)
                           
Total Interest Income
  $ 4,769     $ 4,609     $ 4,053     $ 13,688     $ 11,322
Total Interest Expense
    1,136       1,087       836       3,206       2,061
Net Interest Income
    3,633       3,521       3,217       10,482       2,961
Total Noninterest Income
    469       490       378       1,367       1,031
Total Noninterest Expense
    2,936       3,101       2,874       8,998       8,141
Provision for Loan Losses
    139       92       35       397       317
Income Before Taxes
    1,027       818       685       2,454       1,834
Taxes
    227       179       144       528       372
Net Income
  $ 800     $ 639     $ 541     $ 1,925     $ 1,461
 
                                     
Diluted Earnings Per Share
  $ 0.12     $ 0.10     $ 0.09     $ 0.31     $ 0.24
Weighted Average Diluted Shares Outstanding
    6,537,803       6,351,753       5,974,200       6,289,983       5,974,200
                                       
                       
 
  September 30, 2019   June 30, 2019   March 31,
2019
  December 31, 2018   September 30, 2018  
Selected Bank Ratios
                     
Loan Loss Reserve to Total Loans
    0.85 %   0.85 %   0.83 %   0.83 %   0.80 %
Non-Performing Assets to Total Assets
    0.36 %   0.25 %   0.28 %   0.30 %   0.33 %
Net Charge-Offs to Total Loans
    0.00 %   0.00 %   0.00 %   0.01 %   0.00 %
Net Interest Margin (year to date)
    3.66 %   3.70 %   3.70 %   3.79 %   3.80 %
Return On Average Assets (quarter ended)
    0.75 %   0.63 %   0.51 %   0.69 %   0.59 %
Return On Average Equity (quarter ended)
    6.90 %   5.61 %   4.35 %   5.95 %   4.99 %
Efficiency Ratio (quarter ended)
    70.99 %   76.71 %   78.61 %   72.61 %   79.14 %
 
                               
 

*Note: Per share data is affected by the 10% stock dividend on May 1, 2019.

About Coastal Carolina Bancshares, Inc. Coastal Carolina Bancshares, Inc. is the bank holding company of Coastal Carolina National Bank, a Myrtle Beach-based community bank serving Horry, Georgetown, Aiken, Richland, Greenville, Spartanburg, and Brunswick (NC) counties. Coastal Carolina National Bank is a locally operated financial institution focused on providing personalized service and offers a full range of banking services designed to meet the specific needs of individuals and small and medium-sized businesses. Headquartered in Myrtle Beach, SC, the Bank also has branches in Garden City, North Myrtle Beach, Conway, Aiken, Columbia and Greenville, as well as a Loan Production Office in Spartanburg, South Carolina. Through the substantial experience of our local management and Board of Directors, Coastal Carolina Bancshares, Inc. seeks to enhance value for our shareholders, build lasting customer relationships, benefit our communities and give our employees a meaningful career opportunity. To learn more about the Company and its subsidiary bank, please visit our website at www.myccnb.com.

Forward-Looking Statements Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include, without limitation: the effects of future economic conditions; governmental fiscal and monetary policies; legislative and regulatory changes; the risks of changes in interest rates; successful merger integration; management of growth; fluctuations in our financial results; reliance on key personnel; our ability to compete effectively; privacy, security and other risks associated with our business. Coastal Carolina Bancshares, Inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Contact:

Russell Vedder
Title: EVP/CFO
Phone: (843) 839-5662
Fax: (843) 839-5699
1012 38th Ave. North
Myrtle Beach, SC 29577
www.myccnb.com

SOURCE: Coastal Carolina Bancshares, Inc.

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