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.

ReleaseID: 564082