Coastal Carolina Stock Price, News & Analysis

Coastal Carolina Bancshares, Inc. (OTCQX: CCNB) is the holding company for Coastal Carolina National Bank, a community bank headquartered in Myrtle Beach, South Carolina. The company operates in the commercial banking industry within the finance and insurance sector. According to its public disclosures, Coastal Carolina National Bank is a locally operated financial institution focused on personalized service and a full range of banking services tailored to individuals and small and medium-sized businesses.

Community banking footprint and markets served

Coastal Carolina National Bank describes itself as a Myrtle Beach-based community bank serving multiple counties in South Carolina and North Carolina. Across its news releases, the company notes that it serves the South Carolina counties of Horry, Georgetown, Aiken, Orangeburg, Richland, Lexington, Greenville, and Spartanburg, as well as the North Carolina county of Brunswick. In more recent disclosures, the company also references service to the South Carolina county of Orangeburg and the North Carolina county of New Hanover. The bank reports that it is headquartered in Myrtle Beach, South Carolina.

The bank maintains full-service branches in several communities. Across its announcements, it lists branches in Garden City, North Myrtle Beach, Conway, Aiken, Columbia, Orangeburg, Greenville, and Spartanburg, South Carolina, and Ocean Isle Beach, North Carolina. Earlier disclosures also referenced a loan production office in Spartanburg that has since been described as a full-service branch location.

Business focus and customer segments

Coastal Carolina National Bank states that it focuses on providing personalized services, mortgages, and a full range of banking services designed to meet the specific needs of individuals and small and medium-sized businesses. The bank emphasizes relationship-based community banking, highlighting the substantial experience of its local management and Board of Directors. The company reports that it seeks to enhance value for shareholders, build lasting customer relationships, benefit the communities it serves, and provide meaningful career opportunities for employees.

In its earnings releases, Coastal Carolina Bancshares describes growth in several lending categories, including owner occupied commercial real estate, non-owner occupied commercial real estate, 1–4 family residential lending, and commercial and industrial (C&I) lending. The company also reports activity in construction and land development lending. These categories illustrate the types of credit products that contribute to the bank’s loan portfolio, although the bank characterizes its overall offering more broadly as a full range of banking services.

Deposits, funding mix, and balance sheet composition

Across multiple quarters and years, the company provides detail on its deposit base and funding structure. It reports growth in checking and savings accounts, money market accounts, and time deposits. The bank has also disclosed the use of brokered certificates of deposit as part of its funding mix in certain periods. Management commentary frequently notes efforts to grow core deposits and improve the funding structure by increasing noninterest-bearing and low-cost transaction accounts.

Coastal Carolina Bancshares’ financial tables show that loans and investment securities are key components of total assets. Over time, the company has reported increases in total assets, total loans, and total deposits, with loan growth often concentrated in residential mortgages and commercial real estate categories. The bank has also disclosed that it holds bank owned life insurance, which contributes to noninterest income.

Capital, regulatory status, and risk management

In its periodic earnings announcements, Coastal Carolina Bancshares reports regulatory capital ratios for Coastal Carolina National Bank, including leverage, Tier 1 risk-based, and total risk-based capital ratios. The company consistently states that these ratios exceed the regulatory minimums to be considered well capitalized. It also reports book value per share and tangible book value per share, noting that changes in these measures are influenced by retained earnings and fluctuations in the fair value of the investment securities portfolio.

The bank provides regular commentary on asset quality metrics. It has repeatedly reported a non-performing assets ratio of 0.0% at various quarter-ends, with no loans classified as non-accrual and no loans past due greater than 30 days in many reporting periods. The company also notes that it has had no other real estate owned (OREO) at several quarter- and year-ends. Allowance for credit losses and reserves on unfunded commitments are disclosed under the Current Expected Credit Losses (CECL) framework, with the company describing periodic provisions for credit losses based on loan growth and portfolio performance.

Earnings profile and revenue drivers

Coastal Carolina Bancshares’ earnings releases provide detail on net interest income, net interest margin, noninterest income, and noninterest expense. The company attributes growth in net interest income primarily to loan growth, changes in earning asset yields, and, at times, lagging increases in deposit costs. It also discusses the impact of broader interest rate movements, including Federal Reserve rate changes, on funding costs and asset yields.

Noninterest income is described as consisting primarily of service charges and fees on deposit accounts, interchange and merchant fee income, mortgage sales income, and earnings from bank owned life insurance. The company has noted that mortgage sales revenues can fluctuate with interest rate conditions and housing market activity, and that a significant portion of mortgage production is sometimes retained as portfolio mortgage products, often with adjustable rate mortgage structures.

On the expense side, Coastal Carolina Bancshares reports noninterest expense categories such as compensation and benefits, data processing, business development, marketing, occupancy, and professional services. Management commentary links increases in these expenses to growth initiatives, expansion into new markets, and regulatory assessments and insurance.

Capital markets activity and corporate structure

Coastal Carolina Bancshares, Inc. trades on the OTCQX market under the symbol CCNB. In its announcements, the company identifies itself as the parent company of Coastal Carolina National Bank. It has disclosed capital markets transactions, including the issuance of subordinated debt securities and a private placement of common equity. For example, the company reported issuing subordinated debt securities to support general corporate purposes and the strategic growth of the bank. It also announced entering into securities purchase agreements for a common equity private placement, with proceeds intended for general corporate purposes, strengthening regulatory capital, and supporting ongoing strategic growth initiatives.

The company’s communications emphasize the role of experienced local management and a Board of Directors in guiding strategy, credit quality, and community engagement. Through this structure, Coastal Carolina Bancshares positions itself as a community-focused banking organization with an emphasis on long-term relationships in its regional markets.

Risk, credit quality, and economic environment

In multiple periods, management commentary highlights that credit quality metrics remain strong, with no past due loans and a non-performing assets ratio of 0.0% at various quarter-ends. The company notes that it monitors the health of the local economies in the markets it serves and references potential headwinds in the broader banking industry and interest rate environment. It states that it intends to prioritize credit quality and focus on originating high-quality loans within its communities.

The bank also discusses liquidity management, including on-balance-sheet liquidity, correspondent federal funds purchased lines of credit, borrowing capacity at the Federal Home Loan Bank of Atlanta, and access to brokered deposits and other funding sources. These disclosures illustrate the tools the company identifies for funding operations and supporting asset growth.

Role in local communities

Throughout its disclosures, Coastal Carolina Bancshares, Inc. states that it seeks to benefit the communities it serves. It emphasizes personalized customer service, local decision-making, and the goal of building lasting customer relationships. The company also notes that it aims to provide meaningful career opportunities for employees, aligning its community bank identity with internal and external stakeholders.