Coastal Carolina Bancshares, Inc. Reports First Quarter Earnings
Rhea-AI Summary
Coastal Carolina Bancshares (OTCQX:CCNB) reported Q1 2025 net income of $2.38 million ($0.38 per share), compared to $2.66 million ($0.42 per share) in Q4 2024 and $1.65 million ($0.26 per share) in Q1 2024.
Key highlights include:
- Net Interest Margin expanded to 3.55% from 3.34% in Q4 2024
- Book value per share increased to $12.57 from $12.07 in Q4 2024
- Quarterly deposit growth of $13 million (1%) to $1.002 billion
- Loan growth of $25 million (3%) to $863 million
- Strong credit quality with 0.0% non-performing assets ratio
The bank maintained strong capital ratios with Leverage at 9.04%, Tier 1 at 11.68%, and Total Risk-Based at 12.76%. Loan growth was primarily in C&I Lending ($10M), non-owner occupied CRE ($5M), and Owner Occupied CRE ($4M).
Positive
- Net income increased 44% year-over-year to $2.38 million
- Strong loan growth of $25 million (12% annualized)
- Net Interest Margin improved to 3.55% from 3.34% in previous quarter
- Excellent asset quality with zero non-performing assets and no loans past due
- Cost of funds decreased to 2.14% from 2.29% in previous quarter
Negative
- Net income decreased 10.8% quarter-over-quarter from $2.66M to $2.38M
- Noninterest income declined to $610K from $868K in previous quarter
- Noninterest expenses increased to $6.2M from $5.9M in previous quarter
- Mortgage sales revenue declined to $48K from $113K in previous quarter
News Market Reaction
On the day this news was published, CCNB gained 1.90%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
MYRTLE BEACH, SC / ACCESS Newswire / April 23, 2025 / Coastal Carolina Bancshares, Inc. (the "Company") (OTCQX:CCNB), parent of Coastal Carolina National Bank (the "Bank"), reported unaudited financial results for the first quarter of 2025. The Company reported net income of
2025 First Quarter Financial Highlights
Quarterly net income of
$2.4 million and diluted EPS of$0.38 per shareQuarterly Return on Average Equity of
12.35% Net Interest Margin expansion to
3.55% for the quarter ended March 31, 2025 compared to3.34% and3.10% for the prior quarters ended December 31, 2024 and March 31, 2024, respectivelyIncreased book value per share and tangible book value per share to
$12.57 and$12.07 at March 31, 2025 from$12.07 and$11.56 at December 31, 2024Quarterly deposit growth of
$13 million or1% (5% annualized) from$989 million at December 31, 2024 to$1,002 million at March 31, 2025Quarterly loan growth of
$25 million or3% (12% annualized) from$837 million at December 31, 2024 to$863 million at March 31, 2025Key credit quality metrics remained strong with a non-performing assets ratio of
0.0% and no past due loans greater than 30 days
Coastal Carolina Bancshares, Inc.
Selected Financial Highlights
(unaudited)
| Mar 31, 2025 |
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| Dec 31, 2024 |
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| Sept 30, 2024 |
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| June 30, 2024 |
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| March 31, 2024 |
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Balance Sheet (In Thousands) |
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Total Assets |
| $ | 1,107,714 |
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| $ | 1,090,310 |
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| $ | 1,100,242 |
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| $ | 1,067,831 |
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| $ | 970,010 |
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Investment Securities |
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| 89,543 |
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| 95,786 |
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| 93,790 |
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| 92,176 |
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| 93,554 |
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Loans, excluding loans HFS |
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| 862,802 |
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| 837,325 |
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| 816,470 |
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| 793,349 |
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| 782,542 |
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Deposits |
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| 1,002,265 |
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| 988,838 |
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| 998,895 |
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| 971,491 |
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| 876,371 |
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Shareholders' Equity |
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| 78,700 |
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| 75,309 |
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| 74,110 |
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| 69,969 |
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| 67,627 |
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Total Shares Outstanding (1) |
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| 6,262,886 |
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| 6,241,589 |
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| 6,241,589 |
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| 6,233,875 |
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| 6,205,039 |
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Book Value per Share |
| $ | 12.57 |
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| $ | 12.07 |
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| $ | 11.87 |
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| $ | 11.22 |
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| $ | 10.90 |
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Tangible Book Value Per Share |
| $ | 12.07 |
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| $ | 11.56 |
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| $ | 11.37 |
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| $ | 10.72 |
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| $ | 10.39 |
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Selected % Increases |
| 1st Qtr 2025 |
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| 4th Qtr 2024 |
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| 3rd Qtr 2024 |
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| 2nd Qtr 2024 |
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| 1st Qtr 2024 |
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Total Assets |
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| 2 | % |
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| -1 | % |
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| 3 | % |
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| 10 | % |
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| 4 | % |
Total Loans |
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| 3 | % |
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| 3 | % |
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| 3 | % |
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| 1 | % |
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| 2 | % |
Total Deposits |
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| 1 | % |
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| -1 | % |
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| 3 | % |
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| 11 | % |
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| 6 | % |
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Selected Ratios |
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Loan Loss Reserve to Total Loans |
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| 1.03 | % |
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| 1.02 | % |
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| 1.02 | % |
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| 1.02 | % |
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| 1.02 | % |
Non-Performing Assets (excl TDRs) to Total Assets |
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| 0.00 | % |
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| 0.00 | % |
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| 0.00 | % |
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| 0.00 | % |
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| 0.00 | % |
Net Charge-Offs to Avg Total Loans (annualized) |
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| 0.00 | % |
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| 0.00 | % |
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| 0.00 | % |
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| 0.00 | % |
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| 0.00 | % |
| For the |
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| For the |
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| For the |
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| For the |
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Earnings Breakdown (In Thousands) |
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Total Interest Income |
| $ | 14,366 |
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| $ | 14,493 |
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| $ | 12,040 |
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| $ | 54,181 |
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Total Interest Expense |
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| 5,408 |
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| 5,898 |
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| 5,176 |
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| 22,981 |
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Net Interest Income |
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| 8,958 |
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| 8,595 |
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| 6,864 |
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| 31,200 |
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Total Noninterest Income |
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| 610 |
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| 868 |
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| 507 |
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| 2,588 |
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Total Noninterest Expense |
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| 6,249 |
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| 5,919 |
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| 5,223 |
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| 22,420 |
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Provision for Loan Losses |
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| 335 |
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| 205 |
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| 95 |
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| 700 |
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Income Before Taxes |
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| 2,984 |
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| 3,339 |
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| 2,053 |
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| 10,668 |
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Taxes |
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| 607 |
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| 675 |
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| 403 |
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| 2,161 |
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Net Income |
| $ | 2,377 |
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| $ | 2,664 |
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| $ | 1,650 |
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| $ | 8,507 |
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Basic Earnings Per Share |
| $ | 0.38 |
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| $ | 0.43 |
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| $ | 0.27 |
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| $ | 1.37 |
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Diluted Earnings Per Share |
| $ | 0.38 |
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| $ | 0.42 |
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| $ | 0.26 |
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| $ | 1.36 |
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Weighted Average Shares Outstanding - Basic |
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| 6,256,902 |
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| 6,241,589 |
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| 6,199,341 |
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| 6,223,548 |
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Weighted Average Shares Outstanding - Diluted |
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| 6,332,640 |
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| 6,306,162 |
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| 6,234,132 |
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| 6,270,505 |
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Selected Ratios |
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Return On Average Assets |
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| 0.87 | % |
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| 0.97 | % |
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| 0.69 | % |
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| 0.82 | % |
Return On Average Equity |
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| 12.35 | % |
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| 14.26 | % |
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| 9.87 | % |
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| 12.05 | % |
Efficiency Ratio |
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| 65.23 | % |
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| 62.46 | % |
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| 70.72 | % |
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| 66.24 | % |
Net Interest Margin *Bank Level* |
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| 3.55 | % |
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| 3.34 | % |
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| 3.10 | % |
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| 3.22 | % |
(1) - Total shares outstanding excludes unvested restricted stock awards
Capital
At March 31, 2025, 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 March 31, 2025 of
Balance Sheet and Credit Quality
Net Loans increased
The Company had
Total Assets increased by
President and CEO of the Company and Bank, Laurence S. Bolchoz, Jr., commented, "We are excited to carry our positive momentum from 2024 into the first quarter of 2025 with strong loan growth of
The Company continues to report excellent asset quality metrics with no loans classified as non-accrual, no loans past due greater than 30 days, and a non-performing asset ratio of
Mr. Bolchoz commented, "The Bank continues to report pristine credit quality metrics with no past dues, no non-accrual loans, and no OREO properties at quarter end. While the national economic climate has been volatile throughout the beginning of 2025, the local economies in which the Bank operates remain healthy. Understanding that our communities are not immune from the challenges of the broader market, the Bank will continue to prioritize credit quality and focus on originating high quality loans."
Income Statement
Net Interest Income
Net interest income increased
Net interest margin expansion during the first quarter of 2025 was driven by loan growth and increased loan yields coupled with reduced funding costs as the Federal Reserve's 2024 rate cuts continued to impact the Bank's deposit costs. The Bank's quarterly cost of funds decreased to
The Bank's yield on earning assets increased to
Mr. Bolchoz said, "We are very pleased with the Bank's earnings for the first quarter of 2025 with net income increasing
Noninterest Income
Noninterest income totaled
in the first quarter of 2024.
Reduced non-interest income during the first quarter resulted primarily from lower mortgage sales revenue and decreased deposit fee income. Mortgage sales revenues declined when compared to both the most recent linked quarter and the first quarter of 2024. The Company recorded mortgage sales revenues of
While mortgage sales volume remains muted, the Bank continues to originate a large 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, Orangeburg, Richland, Lexington, Greenville, and Spartanburg, South Carolina, 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, Orangeburg, Columbia, Greenville, and Spartanburg, South Carolina, and Ocean Isle Beach, North 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 ACCESS Newswire
FAQ
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What is CCNB's current Net Interest Margin (NIM)?
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