Coast Bancorp Reports First Quarter Results

SAN LUIS OBISPO, CA--(Marketwired - Apr 28, 2015) - Coast Bancorp ("Coast Bancorp" or the "Company") (OTCBB: CTBP), a bank holding company and the parent of Coast National Bank (the "Bank"), reported net income on a consolidated basis available to common shareholders of $5,000 for the first quarter of 2015 compared to a net loss of ($206,000), or ($0.24) per dilutive common share for the first quarter of 2014. The increase in net income for the first quarter of 2015 as compared to the same period one year earlier was attributed to increased interest income from loans and investments at the bank, and increased noninterest income primarily from gains on sale of SBA loans and investment securities.

Total consolidated assets were $128.4 million at March 31, 2015 compared to $124.3 million at March 31, 2014 for an increase of 3.3%. Total consolidated liabilities of $124.7 million include deposits of $115.0 million, relatively level from $115.8 million at March 31, 2014, junior subordinated debt of $7.2 million due in 2027, senior notes for $2.0 million due in 2016, and other liabilities of $501,000.

Total stockholders' equity increased to $3.7 million at March 31, 2015 from a deficit of ($1.0) million at March 31, 2014 after completion of a private placement offering in June of last year.

First Quarter 2015 Highlights of Coast National Bank, a wholly owned subsidiary of Coast Bancorp:

• Net profits of $97,000 for the first quarter of 2015, compared to a loss of ($206,000) for the first quarter of 2014.

• Bank assets at March 31, 2015 were $128.2 million, or 3.3% higher compared to $124.0 million at March 31, 2014.

• Total deposits at March 31, 2015 decreased slightly to $115.5 million from $115.8 million at March 31, 2014.

• Net Loans increased by 6.5% to $75.4 million at March 31, 2015 from $70.8 million at March 31, 2014.

• Investment securities increased 136.8% to $23.9 million from $10.1 million at March 31, 2014.

• Deposits at March 31, 2015 of $115.5 million reflect core deposits of 95.6% and noninterest-bearing demand deposits of 41.7% of total deposits, up from 93.9% and 41.5% at March 31, 2014, respectively.

• The Allowance for Loan and Lease Loss coverage to loans at March 31, 2015 was 2.3% compared to 2.4% at March 31, 2014. This level of coverage is slightly higher than peers, and reflects the ongoing satisfactory credit quality. Non Performing Assets continued to improve to 1.5% of Net Loans at March 31, 2015 compared to 3.3% at March 31, 2014.

• The Tier I leverage capital ratio improved to 9.6% at March 31, 2015 compared to 6.6% at March 31, 2014.

• Total risk-based capital was 14.3% at March 31, 2015 compared to 11.8% for the same date in 2014. At March 31, 2015, the Bank maintained regulatory capital ratios at levels that would be generally considered "well capitalized" for regulatory purposes.

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.

This release contains forward-looking statements that reflect management's current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including, but not limited to, the ability of the Company to implement its strategies.

COAST BANCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
			March 31,
			2015				2014
ASSETS			Unaudited				Unaudited
Cash and cash equivalents			$	13,495			$	24,026
Time deposits at other banks				7,840				10,048
Investment securities				23,936				10,106
Loans, net				75,383				70,787
Premises and equipment, net				5,240				6,153
Federal Reserve and Federal Home Loan Bank stock, at cost				741				557
Other real estate owned, net				760				1,364
Accrued interest receivable and other assets				989				1,222
	Total assets		$	128,384			$	124,263
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing demand			$	47,906			$	48,015
Money market and NOW				41,475				37,193
Savings				8,955				8,169
Time deposits of $250,000 or more				5,016				7,082
Other time				11,627				15,321
	Total deposits			114,979				115,780
Senior notes payable				2,000				-
Junior subordinated debt securities				7,217				7,217
Accrued interest payable and other liabilities				501				2,289
	Total liabilities			124,697				125,286
Common stock - no par value, 5,646,881 shares outstanding at March 31, 2015 and 846,881 shares outstanding at March 31, 2014.				12,494				8,277
Additional paid-in capital				293				293
Accumulated deficit				(9,183	)			(9,578	)
Unrealized gains on AFS securities, net				83				(15	)
	Total stockholders' equity			3,687				(1,023	)
	Total liabilities and stockholders' equity		$	128,384			$	124,263

COAST BANCORP
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
			Three Months Ended
			March 31,
			2015				2014
			Unaudited				Unaudited
Total interest income			$	1,206			$	995
Total interest expense				130				98
	Net interest income			1,076				897
Provision for loan losses				-				-
	Net interest income after provision for loan losses			1,076				897
Noninterest income				247				122
Noninterest expense				1,318				1,225
	Income before income taxes			5				(206	)
Income taxes				-				-
	Net profit (loss)		$	5			$	(206	)
Basic and diluted profit (loss) per share			$	0.00			$	(0.24	)
Average basic and diluted shares outstanding				5,647				847

COAST NATIONAL BANK
CONDENSED BALANCE SHEETS
(In thousands)
		March 31,
		2015				2014
ASSETS		Unaudited				Unaudited
Cash and due from banks		$	13,495			$	24,273
Time deposits at other banks			7,840				9,800
Investment securities			23,936				10,106
Loans, net			75,383				70,787
Premises and equipment, net			5,240				6,153
Federal Reserve and Federal Home Loan Bank stock, at cost			741				557
Other real estate owned, net			760				1,364
Accrued interest receivable and other assets			769				942
	Total assets	$	128,164			$	123,982
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing demand		$	48,411			$	48,013
Money market and NOW			41,475				37,193
Savings			8,955				8,169
Time deposits of $250,000 or more
Time			16,643				22,403
	Total deposits		115,484				115,778
Accrued interest payable and other liabilities			239				138
	Total liabilities		115,723				115,916
Common stock			3,162				3,162
Additional paid-in capital			13,335				9,835
Retained earnings			(4,139	)			(4,916	)
Unrealized gains on AFS securities, net			83				(15	)
	Total stockholders' equity		12,441				8,066
	Total liabilities and stockholders' equity	$	128,164			$	123,982

COAST NATIONAL BANK
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
			Three Months Ended
			March 31,
			2015			2014
			Unaudited			Unaudited
Total interest income			$	1,205		$	992
Total interest expense				49			56
	Net interest income			1,156			936
Provision for loan losses				-			-
	Net interest income after provision for loan losses			1,156			936
Noninterest income				247			123
Noninterest expense				1,306			1,225
	Income before income taxes			97			(166	)
Income taxes				-			-
	Net profit (loss)		$	97		$	(166	)