Market Overview

Coastal Carolina Bancshares, Inc. Reports 2017 Earnings

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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 5,590,117 3,282,426 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 % 3 % 4 % 5 % 15 %
Total Deposits
-1 % 2 % 2 % 5 % 8 %



For the
Three Months Ended
For the
Three Months Ended
For the
Three Months Ended
For the
Twelve 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
87 156 88 556 186
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 % 0.05 % 0.29 % 0.38 %
Net Charge-Offs to Total Loans
0.02 % 0.04 % 0.05 % 0.00 % 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

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