Coast National Bank Announces Fourth Quarter Earnings Results
February 12 2014 - 9:00PM
Marketwired
Coast National Bank Announces Fourth Quarter Earnings Results
SAN LUIS OBISPO, CA--(Marketwired - Feb 12, 2014) - Coast
National Bank, a wholly owned subsidiary of Coast Bancorp (OTCBB:
CTBP) today reported net profits of $1,000,000 for the year ended
December 31, 2013, a significant improvement over the $88,000 net
profit for 2012.
"As we wrap up 2013, the balance sheet improvement and
positive 'turnaround' progress continued," said President and Chief
Executive Officer Anita M. Robinson. "This positive success
allowed the bank to recapture some of the provisions for loan
losses from prior periods. While core earnings were below target,
it was a direct result of reduced volume of Net Loans Outstanding
and, resulting lower yields in earning assets. However, this
trend began to reverse in 2013, as loan volume began to improve and
new loan activity improved significantly. It is expected the
bank will begin to reduce the excess liquidity through increased
loan funding, thus improving the Net Interest Margin and future
profitability."
"With the ongoing focus on community and small business
lending, Coast National Bank is poised to move into an era of
rebuilding and growth. Once again, the loyalty and commitment
from our strong core customer base will be the foundation of future
success in the coming years."
Coast National Bank Highlights:
Total assets at December 31, 2013 were $120.0 million, or 6.9%
higher compared to $112.2 million at December 31, 2012. Total
deposits increased to $111.6 million or 6.7% at year-end 2013
compared to $104.7 million at year-end 2012. Net loans were
$64.4 million, down 8.7% at December 31, 2013 compared to $70.6
million at December 31, 2012. The decline in loans reflects the
aggressive work in the resolution of troubled loan
assets. Non-performing assets were $2.4 million at December
31, 2013 compared to $3.6 million at December 31, 2012.
In the fourth quarter, the bank posted a reverse provision for
loan losses of $1.2 million, which reduced the Allowance for Loan
Losses from 3.76% of gross loans outstanding at September 30, 2013
to 2.45% at December 31, 2013. At this level, the Allowance
for Loan Losses is adequate in light of the bank's low level
of non-performing loans of $1.0 million compared to $1.9
million at December 31, 2012.
Deposits ending December 31, 2013 increased from prior year by
$7.1 million or 6.7%. Core deposits represent 93% of total
deposits and demand deposits representing 36% of total
deposits. The bank continues to drive a strong core customer
base together with low cost of deposits averaging .22%, reduced
from .33% in 2012.
At December 31, 2013 the bank's Tier I leverage ratio was 6.8%
compared to 5.2% one year ago. Its total risk-based capital
ratio was 12.9% at December 31, 2013 compared to 11.5% at December
31, 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 its capital plan to bring the bank into compliance in
this area.
Coast Bancorp Highlights:
Coast Bancorp reported net profits of $806,000 or $0.95 per
basic and diluted share for the year ended December 31, 2013
compared to a loss of $457,000 or $0.54 per basic and diluted share
for 2012. Total stockholder's equity continues to reflect a
deficit of $868,200, an improvement of 46% over 2012. Total
consolidated assets were $120.3 million at December 31, 2013
compared to $112.5 million at December 31, 2012. Total consolidated
liabilities of $121.1 million were centered in total deposits held
in the bank of $111.6 million and Junior Subordinated Debt
Securities of $7.2 million due in 2027, as well as Accrued and
unpaid Dividends on these debt securities of $2.3 million which is
due June 2014 in order to avoid a default.
The board of directors of the company continues to explore a
capital raise. New capital will be utilized to satisfy the
payment of unpaid dividends on the debt securities due by June
2014. Additionally, a portion of the proceeds will be invested into
the subsidiary bank to supplement current capital levels and bring
the Tier 1 Leverage ratio in excess of 9.0%, in satisfaction of
required capital levels by the regulator.
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.
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 current economic trends 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.
| |
|
| |
|
| COAST NATIONAL BANK |
|
| CONDENSED BALANCE SHEETS |
|
| (In thousands) |
|
| |
December 31, |
|
| |
2013 |
|
|
2012 |
|
| ASSETS |
Unaudited |
|
|
Audited |
|
| Cash and due from banks |
$ |
29,510 |
|
|
$ |
24,800 |
|
| Interest-bearing deposits with other banks |
|
10,047 |
|
|
|
7,307 |
|
| Federal funds sold |
|
100 |
|
|
|
100 |
|
| Investment securities |
|
6,932 |
|
|
|
- |
|
| Loans, net |
|
64,445 |
|
|
|
70,551 |
|
| Premises and equipment, net |
|
6,192 |
|
|
|
5,998 |
|
| Federal Reserve and Federal Home Loan Bank stock, at
cost |
|
533 |
|
|
|
768 |
|
| Other real estate owned, net |
|
1,365 |
|
|
|
1,694 |
|
| Accrued interest receivable and other assets |
|
851 |
|
|
|
1,017 |
|
| |
Total
assets |
$ |
119,975 |
|
|
$ |
112,235 |
|
| |
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
| Non-interest bearing demand |
$ |
42,747 |
|
|
$ |
40,568 |
|
| Money market and NOW |
|
37,612 |
|
|
|
34,030 |
|
| Savings |
|
8,209 |
|
|
|
7,366 |
|
| Time |
|
23,061 |
|
|
|
22,691 |
|
| |
Total
deposits |
|
111,629 |
|
|
|
104,655 |
|
| Accrued interest payable and other liabilities |
|
166 |
|
|
|
335 |
|
| |
Total
liabilities |
|
111,795 |
|
|
|
104,990 |
|
| Common stock - no par value, 846,881 shares outstanding
at December 31, 2013 and 2012, respectively |
|
3,162 |
|
|
|
3,162 |
|
| Additional paid-in capital |
|
9,835 |
|
|
|
9,835 |
|
| Retained earnings |
|
(4,750 |
) |
|
|
(5,752 |
) |
| Unrealized loss on AFS securities, net |
|
(67 |
) |
|
|
- |
|
| |
Total
stockholders' equity |
|
8,180 |
|
|
|
7,245 |
|
| |
Total
liabilities and stockholders' equity |
$ |
119,975 |
|
|
$ |
112,235 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| COAST NATIONAL BANK |
| CONDENSED STATEMENTS OF OPERATIONS |
| (In thousands, except per share amounts) |
| |
|
|
|
|
|
|
|
|
|
| |
For the Years Ended |
|
Three Months Ended |
| |
December 31, |
|
December 31, |
| |
2013 |
|
|
2012 |
|
2013 |
|
|
2012 |
| |
Unaudited |
|
|
Audited |
|
Unaudited |
|
|
Audited |
| Total interest income |
$ |
4,205 |
|
|
$ |
4,957 |
|
$ |
995 |
|
|
$ |
1,193 |
| Total interest expense |
|
257 |
|
|
|
441 |
|
|
60 |
|
|
|
97 |
| |
Net
interest income |
|
3,948 |
|
|
|
4,516 |
|
|
935 |
|
|
|
1,096 |
| Provision for loan losses |
|
(1,200 |
) |
|
|
- |
|
|
(1,200 |
) |
|
|
- |
| |
Net
interest income after provision for loan losses |
|
5,148 |
|
|
|
4,516 |
|
|
2,135 |
|
|
|
1,096 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest income |
|
1,354 |
|
|
|
1,589 |
|
|
109 |
|
|
|
682 |
| Noninterest expense |
|
5,500 |
|
|
|
6,015 |
|
|
1,389 |
|
|
|
1,572 |
| |
Income before income taxes |
|
1,002 |
|
|
|
90 |
|
|
855 |
|
|
|
206 |
| Income taxes |
|
2 |
|
|
|
2 |
|
|
- |
|
|
|
- |
| |
Net
profit |
$ |
1,000 |
|
|
$ |
88 |
|
$ |
855 |
|
|
$ |
206 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted profit per share |
$ |
1.18 |
|
|
$ |
0.10 |
|
$ |
1.01 |
|
|
$ |
0.24 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average basic and diluted shares
outstanding |
|
847 |
|
|
|
847 |
|
|
847 |
|
|
|
847 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|