Coast National Bank Highlights: (or Lowlights depending on your point of view)
Total assets at December 31, 2013 were $120.0 million, or 6.9% higher compared to $112.2 million at December 31, 2012. Total deposits increased to $111.6 million or 6.7% at year-end 2013 compared to $104.7 million at year-end 2012. Net loans were $64.4 million, down 8.7% at December 31, 2013 compared to $70.6 million at December 31, 2012. The decline in loans reflects the aggressive work in the resolution of troubled loan assets. Non-performing assets were $2.4 million at December 31, 2013 compared to $3.6 million at December 31, 2012.
In the fourth quarter, the bank posted a reverse provision for loan losses of $1.2 million, which reduced the Allowance for Loan Losses from 3.76% of gross loans outstanding at September 30, 2013 to 2.45% at December 31, 2013. At this level, the Allowance for Loan Losses is adequate in light of the bank's low level of non-performing loans of $1.0 million compared to $1.9 million at December 31, 2012. Deposits ending December 31, 2013 increased from prior year by $7.1 million or 6.7%. Core deposits represent 93% of total deposits and demand deposits representing 36% of total deposits. The bank continues to drive a strong core customer base together with low cost of deposits averaging .22%, reduced from .33% in 2012.
At December 31, 2013 the bank's Tier I leverage ratio was 6.8% compared to 5.2% one year ago. Its total risk-based capital ratio was 12.9% at December 31, 2013 compared to 11.5% at December 31, 2012. Although not in compliance with the Tier I leverage ratio of 9.0% requirement under its Consent Order, it is considered to be "Well Capitalized."
Coast Bancorp Highlights:
Coast Bancorp reported net profits of $806,000 or $0.95 per basic and diluted share for the year ended December 31, 2013 compared to a loss of $457,000 or $0.54 per basic and diluted share for 2012. Total stockholder's equity continues to reflect a deficit of $868,200, an improvement of 46% over 2012. Total consolidated assets were $120.3 million at December 31, 2013 compared to $112.5 million at December 31, 2012. Total consolidated liabilities of $121.1 million were centered in total deposits held in the bank of $111.6 million and Junior Subordinated Debt Securities of $7.2 million due in 2027, as well as Accrued and unpaid Dividends on these debt securities of $2.3 million which is dueJune 2014in order to avoid a default.
The board of directors of the company continues to explore a capital raise. New capital will be utilized to satisfy thepayment of unpaid dividends on the debt securities due by June 2014. Additionally, a portion of the proceeds will be invested into the subsidiary bank to supplement current capital levels and bring the Tier 1 Leverage ratio in excess of 9.0%, in satisfaction of required capital levels by the regulator.
* I do not hold shares of CTBP at this time nor do I plan to anytime soon. I do however want to investigate the subordinated debt accrued & unpaid dividend situation.
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