Coastal Carolina Bancshares, Inc. Reports 2017 Earnings

MYRTLE BEACH, SC / ACCESSWIRE / January 26, 2017 / Coastal Carolina Bancshares, Inc. (the “Company”) (OTC PINK: CCNB), parent of Coastal Carolina National Bank (“Bank”), reported unaudited net income of $323,732 or $.07 cents per share, for the twelve months ended December 31, 2017, compared to $171,647 or $.06 cents per share, for the same period ending December 31, 2016. The annual earnings were significantly less than anticipated as a direct result of the Tax Cut and Jobs Act that was signed into law on December 22, 2017. Under this new law, the corporate tax rate was reduced from 34% to 21%. As such, under generally accepted accounting standards the Bank was required to reduce the value of its deferred tax asset by $1,346,667 to reflect the lower corporate tax rate. Excluding this deferred tax adjustment, our net income was $1,670,399 or $.35 cents per share for the year ended December 31, 2017.

2017 Financial Highlights (unaudited)

Total Assets grew 14% to $328 million at December 31, 2017, compared to $288 million at December 31, 2016.
Total Deposits grew 8% to $275 million at December 31, 2017, compared to $254 million at December 31, 2016.
Total Loans grew 15% to $249 million at December 31, 2017, compared to $216 million at December 31, 2016.
Bank Net interest margin improved to 3.85% at December 31, 2017, which is a 17 basis point increase for the year.
Bank Efficiency ratio improved to 75.96% at December 31, 2017, compared to 81.90% at December 31, 2016.

“Despite the one-time need to adjust the value of our deferred tax asset, we are very proud of the bank’s performance in 2017. This would have been the most profitable year in our bank’s 8+ year history without this accounting requirement. Our core earnings performance is the result of tremendous effort by our lending teams who generated loan production of $148 million which is a 41% increase over last year. It is important to note that our Greenville Loan Production Office in a four-month period contributed $11 million of the bank’s new loan production in 2017. Our commercial and mortgage lending teams continue to exceed loan production goals by executing a detailed business development calling effort. Our loan portfolio grew 15% in 2017 as a result of their exceptional performance. Our credit quality also remains strong with very low levels of non-performing assets as compared to our peers,” said Laurence S. Bolchoz, Jr., President and Chief Executive Officer of the Company and the Bank. “Progress continues on the construction of our Greenville branch location which will open in the second quarter of 2018. This Greenville office will be our first full-service office in the vibrant upstate South Carolina market. The core values and culture of our bank remain strong, and we are very encouraged by the potential for growth that we have in the markets that we serve in South Carolina. We look forward to the future positive impact on earnings that the Tax Cut and Jobs Act will have on our community bank and our shareholders,” Bolchoz said.

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

December 31, 2017

September 30, 2017

June 30, 2017

March 31, 2017

December 31, 2016

Balance Sheet (In Thousands)

Total Assets

$
328,455

$
322,268

$
322,145

$
300,944

$
287,753

Investment Securities

24,119

24,925

23,437

19,353

18,532

Loans, net of unearned income (total loans)

249,219

242,854

235,985

226,447

216,303

Deposits

274,564

276,566

271,389

267,228

254,346

Shareholders’ Equity

42,483

43,386

44,016

26,990

26,617

Total Shares Outstanding

5,592,617

5,590,117

3,282,426

Book Value per Share

$
7.60

$
7.76

$
7.87

$
8.22

$
8.11

Tangible Book Value Per Share

$
6.95

$
7.11

$
7.21

$
7.09

$
7.14

Selected % Increases

4th Qtr 2017

3rd Qtr 2017

2nd Qtr 2017

1st Qtr 2017

YTD 2017

Total Assets

2
%

0
%

7
%

5
%

14
%

Total Loans

3
%

4
%

5
%

15
%

Total Deposits

-1
%

2
%

5
%

8
%

For the
Three Months Ended

For the
Twelve Months Ended

December 31, 2017

September 30, 2017

December 31, 2016

December 31, 2017

December 31, 2016

Earnings Breakdown (In Thousands)

Total Interest Income

$
3,407

$
3,335

$
2,991

$
13,012

$
8,339

Total Interest Expense

541

545

432

2,090

1,220

Net Interest Income

2,865

2,790

2,559

10,923

7,118

Total Noninterest Income

404

405

368

1,507

1,292

Total Noninterest Expense

2,571

2,394

3,129

9,610

7,911

Provision for Loan Losses

156

556

186

Income Before Taxes

611

645

(290
)

2,264

315

Taxes

1,400

217

(89
)

1,940

143

Net Income

$
(789
)

$
428

$
(202
)

$
324

$
172

Diluted Earnings Per Share

$
0.07

$
0.06

Weighted Average Diluted Shares Outstanding

4,832,979

2,760,104

December 31, 2017

September 30, 2017

June 30, 2017

March 31, 2017

December 31, 2016

Selected Bank Ratios

Loan Loss Reserve to Total Loans

0.77
%

0.75
%

0.72
%

0.69
%

0.68
%

Non-Performing Assets to Total Assets

0.23
%

0.05
%

0.29
%

0.38
%

Net Charge-Offs to Total Loans

0.02
%

0.04
%

0.05
%

0.00
%

Net Interest Margin (year to date)

3.85
%

3.90
%

3.97
%

3.89
%

3.68
%

https://www.myccnb.com/news/coastal-carolina-bancshares-inc-reports-2017-earnings/

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 (SC), 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.

Coastal Carolina Bancshares, Inc. currently trades its common stock on the OTC pink sheets under the symbol “CCNB.” 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:

Dawn Kinard
Title: EVP/CFO
Phone: (843) 839-1953
Fax: (843) 839-5699
1012 38th Ave. North
Myrtle Beach, SC 29577
www.myccnb.com

SOURCE: Coastal Carolina National Bank

ReleaseID: 487048

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