Coastal Carolina Bancshares, Inc. Reports Earnings Increase by 202 Percent

MYRTLE BEACH, SC / ACCESSWIRE / July 20, 2017 / Coastal Carolina Bancshares, Inc. (the “Company”) (OTC PINK: CCNB), parent of Coastal Carolina National Bank (“CCNB”), reported net income of $684,424, or $.11 diluted earnings per share, for the six months ended June 30, 2017, compared to $226,781, or $.09 diluted earnings per share, for the same period ending June 30, 2016, an increase of 202%.

Net income for the quarter ended June 30, 2017, was $397,731, an increase of 38% from the previous quarter net income of $286,693, and an increase of 341% compared to net income of $90,243 for the prior year quarter ending June 30, 2016.

Financial Highlights YTD

Total Assets grew 68% to $322 million at June 30, 2017, compared to $191 million at June 30, 2016
Total Deposits grew 57% to $271 million at June 30, 2017, compared to $172 million at June 30, 2016
Total Loans grew 71% to $236 million at June 30, 2017, compared to $138 million at June 30, 2016
These increases over the past 12 months were positively impacted by the merger with VistaBank in the fourth quarter of 2016
CCNB announced the opening of a Greenville Loan Production Office in June 2017
The Company completed a $16.5 million private placement of common stock, and the Company’s common shares began trading on the OTC Pink Market under the symbol “CCNB”

“We are very pleased with the growth of our company and our strong financial performance. Our diligent focus on quality loan production resulted in 12% loan growth through the first six months of 2017. Our lending team produced this significant loan production while also reducing our nonperforming assets to total assets ratio to .05%,” said Laurence S. Bolchoz, Jr., President and Chief Executive Officer of the Company and CCNB. “We continue to develop new loan and deposit business in our existing and new markets, and we are excited about the potential positive impact our new Greenville Loan Production Office may have on our bank. We believe we are now well positioned in growth markets throughout South Carolina, markets that have been experiencing improving economic conditions. These markets are seeing continued significant growth in
new housing development which is a positive for our bank with our focus on mortgage loan production,” Bolchoz said.

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, 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, and Columbia, as well as a Loan Production Office in Greenville, 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.

Photography available upon request.

Contact:

Dawn Kinard

Title: EVP/CFO

Phone: (843) 839-1953

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

June 30,
2017

March 31,
2017

December 31, 2016

June 30,
2016

Balance Sheet (In Thousands, except share data)

Total Assets

$
322,145

$
300,807

$
287,753

$
191,755

Investment Securities

23,437

19,353

18,532

19,601

Loans, net of unearned income (total loans)

235,985

226,447

216,303

138,325

Deposits

271,389

267,228

254,346

172,766

Shareholders’ Equity

44,016

27,018

26,617

18,017

Total Shares Outstanding

5,590,117

3,282,426

3,282,426

2,192,655

Selected % Increases

2nd Qtr 2017

1st Qtr 2017

Year To Date

For the last
12 months

Total Assets

7
%

5
%

12
%

68
%

Total Loans

4
%

5
%

9
%

71
%

Total Deposits

2
%

5
%

7
%

57
%

For the

For the

For the

For the

For the

Three Months Ended

Three Months Ended

Three Months Ended

Six Months Ended

Six Months Ended

June 30, 2017

March 31, 2017

June 30, 2016

June 30, 2017

June 30, 2016

Earnings Breakdown (In Thousands)

Total Interest Income

$
3,253

$
3,017

$
1,781

$
6,270

$
3,501

Total Interest Expense

517

486

266

1,003

505

Net Interest Income

2,736

2,531

1,515

5,267

2,996

Total Noninterest Income

375

323

308

698

589

Total Noninterest Expense

2,361

2,285

1,586

4,646

3,116

Provision for Loan Losses

201

111

70

312

90

Income Before Taxes

549

458

167

1,007

379

Taxes

152

171

77

323

152

Net Income

397

287

90

684

227

Selected Performance Ratios

Return on Average Assets (ROAA)

0.51
%

0.39
%

0.20
%

0.45
%

0.26
%

Return on Average Equity (ROAE)

4.47
%

4.28
%

2.01
%

3.87
%

2.56
%

Diluted Earnings Per Share

$
0.11

$
0.08

$
0.04

$
0.19

$
0.09

Weighted Average Diluted Shares Outstanding

3,688,118

3,662,759

2,486,147

3,675,509

2,486,147

June 30,
2017

March 31,
2017

December 31,
2016

June 30,
2016

Selected Bank Ratios

Loan Loss Reserve to Total Loans

0.72
%

0.70
%

0.68
%

0.99
%

Non-Performing Assets to Total Assets

0.05
%

0.29
%

0.38
%

0.42
%

Net Charge-Offs to Total Loans

0.04
%

0.00
%

0.00
%

0.00
%

Net Interest Margin

3.97
%

3.89
%

3.68
%

3.65
%

SOURCE: Coastal Carolina Bancshares, Inc.

ReleaseID: 469184