Coastal Carolina Bancshares, Inc. Announces Third Quarter Results
Rhea-AI Summary
Coastal Carolina Bancshares, Inc. (OTCQX:CCNB) reported net income of $2,235,070 or $0.36 per share for Q3 2024, up from $1,956,948 or $0.31 per share in Q2 2024. Key highlights include:
- 14% increase in quarterly net income over the linked quarter
- Loan growth of $23 million (3%) to $816 million
- Asset growth of $32 million (3%) to $1.1 billion
- Deposit growth of $27 million (3%) to $999 million
- Book value per share increased to $11.87 from $10.67 at year-end 2023
- Exceptional credit quality with 0.0% non-performing assets ratio
The bank's net interest margin improved to 3.22%, driven by increased yields on earning assets. Noninterest income rose to $655,000, while noninterest expense increased to $5.7 million. The bank maintains strong capital ratios and continues to focus on deposit acquisition and retention.
Positive
- Quarterly net income increased 14% to $2.24 million
- Diluted EPS grew to $0.36 per share for the quarter
- Loan growth of 3% (12% annualized) to $816 million
- Asset growth of 3% (12% annualized) to $1.1 billion
- Deposit growth of 3% (11% annualized) to $999 million
- Book value per share increased to $11.87 from $10.67 at year-end 2023
- Net interest margin improved to 3.22%
- Noninterest income rose to $655,000
- Excellent asset quality with 0.0% non-performing assets ratio
Negative
- Year-to-date net income decreased from $6.14 million in 2023 to $5.84 million in 2024
- Noninterest expense increased to $5.7 million from $4.9 million in Q3 2023
- Provision for loan losses increased to $305,000 from $95,000 in Q3 2023
News Market Reaction
On the day this news was published, CCNB gained 0.50%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
MYRTLE BEACH, SC / ACCESSWIRE / October 21, 2024 / Coastal Carolina Bancshares, Inc. (the "Company") (OTCQX:CCNB), parent of Coastal Carolina National Bank (the "Bank"), reported unaudited financial results for the third quarter of 2024. The Company reported net income for the three months ended September 30, 2024 of
2024 Third Quarter Financial Highlights
Quarterly net income of
$2.24 million , an increase of14% over the most recent linked quarterDiluted EPS of
$0.36 per share for the quarter and$0.94 per share year-to-dateIncreased book value per share and tangible book value per share from
$10.67 and$10.15 at December 31, 2023 to$11.87 and$11.37 at September 30, 2024Quarterly Loan growth of
$23 million or3% (12% annualized) from$793 million at June 30, 2024 to$816 million at September 30, 2024Quarterly Asset growth of
$32 million or3% (12% annualized) from$1,068 million at June 30, 2024 to$1,100 million at September 30, 2024Quarterly Deposit growth of
$27 million or3% (11% annualized) from$971 million at June 30, 2024 to$999 million at September 30, 2024Exceptional credit quality metrics with a non-performing assets ratio of
0.0% and no past due loans over the most recent eight consecutive quarter ends
Coastal Carolina Bancshares, Inc.
Selected Financial Highlights
(unaudited)
| Sept 30, 2024 |
|
| June 30, 2024 |
|
| March 31, 2024 |
|
| December 31, 2023 |
|
| September 30, 2023 |
| ||||||
Balance Sheet (In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Assets |
| $ | 1,100,242 |
|
| $ | 1,067,831 |
|
| $ | 970,010 |
|
| $ | 937,070 |
|
| $ | 917,807 |
|
Investment Securities |
|
| 93,790 |
|
|
| 92,176 |
|
|
| 93,554 |
|
|
| 103,401 |
|
|
| 99,404 |
|
Loans, net of unearned income (total loans) |
|
| 816,470 |
|
|
| 793,349 |
|
|
| 782,542 |
|
|
| 763,716 |
|
|
| 748,400 |
|
Deposits |
|
| 998,895 |
|
|
| 971,491 |
|
|
| 876,371 |
|
|
| 828,350 |
|
|
| 824,784 |
|
Shareholders' Equity |
|
| 74,110 |
|
|
| 69,969 |
|
|
| 67,627 |
|
|
| 66,131 |
|
|
| 60,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Shares Outstanding (1) |
|
| 6,241,589 |
|
|
| 6,233,875 |
|
|
| 6,205,039 |
|
|
| 6,200,138 |
|
|
| 6,200,138 |
|
Book Value per Share |
| $ | 11.87 |
|
| $ | 11.22 |
|
| $ | 10.90 |
|
| $ | 10.67 |
|
| $ | 9.83 |
|
Tangible Book Value Per Share |
| $ | 11.37 |
|
| $ | 10.72 |
|
| $ | 10.39 |
|
| $ | 10.15 |
|
| $ | 9.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected % Increases |
| 3rd Qtr 2024 |
|
| 2nd Qtr 2024 |
|
| 1st Qtr 2024 |
|
| 4th Qtr 2023 |
|
| 3rd Qtr 2023 |
| |||||
Total Assets |
|
| 3 | % |
|
| 10 | % |
|
| 4 | % |
|
| 2 | % |
|
| 1 | % |
Total Loans |
|
| 3 | % |
|
| 1 | % |
|
| 2 | % |
|
| 2 | % |
|
| 2 | % |
Total Deposits |
|
| 3 | % |
|
| 11 | % |
|
| 6 | % |
|
| 0 | % |
|
| 4 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Loss Reserve to Total Loans |
|
| 1.02 | % |
|
| 1.02 | % |
|
| 1.02 | % |
|
| 1.02 | % |
|
| 1.04 | % |
Non-Performing Assets (excl TDRs) to Total Assets |
|
| 0.00 | % |
|
| 0.00 | % |
|
| 0.00 | % |
|
| 0.00 | % |
|
| 0.00 | % |
Net Charge-Offs to Avg Total Loans (annualized) |
|
| 0.00 | % |
|
| 0.00 | % |
|
| 0.00 | % |
|
| 0.00 | % |
|
| 0.00 | % |
| For the |
|
| For the |
|
| For the |
|
| For the |
|
| For the |
| ||||||
| September 30, 2024 |
|
| June 30, |
|
| September 30, 2023 |
|
| September 30, 2024 |
|
| September 30, 2023 |
| ||||||
Earnings Breakdown (In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Interest Income |
| $ | 14,455 |
|
| $ | 13,193 |
|
| $ | 11,050 |
|
| $ | 39,688 |
|
| $ | 30,512 |
|
Total Interest Expense |
|
| 6,259 |
|
|
| 5,649 |
|
|
| 3,992 |
|
|
| 17,083 |
|
|
| 9,567 |
|
Net Interest Income |
|
| 8,196 |
|
|
| 7,544 |
|
|
| 7,058 |
|
|
| 22,605 |
|
|
| 20,945 |
|
Total Noninterest Income |
|
| 655 |
|
|
| 558 |
|
|
| 474 |
|
|
| 1,721 |
|
|
| 1,373 |
|
Total Noninterest Expense |
|
| 5,732 |
|
|
| 5,546 |
|
|
| 4,889 |
|
|
| 16,502 |
|
|
| 14,228 |
|
Provision for Loan Losses |
|
| 305 |
|
|
| 95 |
|
|
| 95 |
|
|
| 495 |
|
|
| 390 |
|
Income Before Taxes |
|
| 2,814 |
|
|
| 2,461 |
|
|
| 2,548 |
|
|
| 7,329 |
|
|
| 7,700 |
|
Taxes |
|
| 579 |
|
|
| 504 |
|
|
| 514 |
|
|
| 1,486 |
|
|
| 1,561 |
|
Net Income |
| $ | 2,235 |
|
| $ | 1,957 |
|
| $ | 2,034 |
|
| $ | 5,843 |
|
| $ | 6,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic Earnings Per Share |
| $ | 0.36 |
|
| $ | 0.31 |
|
| $ | 0.33 |
|
| $ | 0.94 |
|
| $ | 0.99 |
|
Diluted Earnings Per Share |
| $ | 0.36 |
|
| $ | 0.31 |
|
| $ | 0.33 |
|
| $ | 0.94 |
|
| $ | 0.99 |
|
Weighted Average Shares Outstanding - Basic |
|
| 6,239,095 |
|
|
| 6,213,798 |
|
|
| 6,195,018 |
|
|
| 6,217,491 |
|
|
| 6,179,605 |
|
Weighted Average Shares Outstanding - Diluted |
|
| 6,269,812 |
|
|
| 6,233,029 |
|
|
| 6,207,520 |
|
|
| 6,245,267 |
|
|
| 6,205,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return On Average Assets |
|
| 0.82 | % |
|
| 0.77 | % |
|
| 0.89 | % |
|
| 0.76 | % |
|
| 0.93 | % |
Return On Average Equity |
|
| 12.41 | % |
|
| 11.38 | % |
|
| 13.39 | % |
|
| 11.25 | % |
|
| 13.73 | % |
Efficiency Ratio |
|
| 64.65 | % |
|
| 68.33 | % |
|
| 64.74 | % |
|
| 67.65 | % |
|
| 63.59 | % |
Net Interest Margin *Bank Level* |
|
| 3.22 | % |
|
| 3.19 | % |
|
| 3.31 | % |
|
| 3.17 | % |
|
| 3.42 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1) - Total shares outstanding excludes unvested restricted stock awards
Capital
At September 30, 2024, the Bank's regulatory capital ratios (Leverage, Tier 1, and Total Risk-Based) were
The Company reported book value per share and tangible book value per share at September 30, 2024 of
Balance Sheet and Credit Quality
Net Loans increased
The Bank continued to experience solid deposit growth during the quarter, reporting
Total Assets increased by
President and CEO of the Company and Bank, Laurence S. Bolchoz, Jr., commented, "We are very pleased with the Bank's loan growth during the quarter of
The Company continues to report excellent asset quality metrics at quarter end with no loans classified as non-accrual and no loans past due greater than 30 days. The Bank's non-performing asset ratio as of September 30, 2024 was
The Bank had one small charge-off during the quarter of less than
Mr. Bolchoz commented, "We remain encouraged by the strong local economies in each of our markets. Our credit quality metrics continue to be exceptional with no past dues and no nonaccruals for the eighth consecutive quarter which is a testament to the Bank's entire loan and credit team."
Income Statement
Net Interest Income
Net interest income increased
The Bank's net interest margin has increased each quarter throughout 2024. Net interest margin expansion was driven by increased yields on earning assets. The Bank's yield on earning assets increased to
The Bank's earning asset yield improved due to increased earnings on cash balances following the Bank's significant deposit growth, and higher loan yields resulting from loan growth and repricing. The Bank's loan yields increased to
Increased asset yields were partially offset by continued increases in the bank's funding costs. The Bank's cost of funds increased to
Mr. Bolchoz said, "We are very pleased with the Bank's continued net interest margin expansion throughout 2024. However, the current interest rate environment presents opportunities and challenges as the market responds to the Federal Reserve's recent and projected interest rate cuts. While we anticipate improved funding costs throughout the industry, the downward shift of the yield curve will pressure asset yields as well."
Noninterest Income
Noninterest income totaled
Increased noninterest income results primarily from increased deposit service charges, interchange income, reciprocal deposit fee income and secondary market mortgage revenues. Mortgage sales revenues improved when compared to both the most recent linked quarter and the third quarter of 2023. The Company recorded mortgage sales revenues of
While mortgage sales volume remains somewhat muted, the Bank continues to originate a significant portion of its mortgage production through portfolio mortgage products. Portfolio mortgage products are primarily originated with adjustable rate mortgage (ARM) structures and provide an alternative to fixed rate mortgage loans.
Noninterest Expense
Noninterest expense totaled
Provision for Loan Losses
During the quarter the Bank recorded a net provision of
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, Orangeburg, Greenville, Spartanburg, and Brunswick (NC) counties. Coastal Carolina National Bank is a locally operated financial institution focused on providing personalized service. It 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, Orangeburg, Greenville, and 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
SOURCE: Coastal Carolina Bancshares, Inc.
# # #
View the original press release on accesswire.com
FAQ
What was Coastal Carolina Bancshares' (CCNB) net income for Q3 2024?
How much did CCNB's loan portfolio grow in Q3 2024?
What was CCNB's deposit growth in Q3 2024?
How did CCNB's net interest margin change in Q3 2024?
What was CCNB's book value per share as of September 30, 2024?
