Coastal Banking Company

Coastal Banking Company, Inc. (the “Company”) is a bank holding company headquartered in Beaufort, South Carolina organized to own all of the common stock of its subsidiary, CBC National Bank (the “Bank”). The principal activity of the Bank is to provide banking services for its domestic markets.

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Coastal Banking Company Announces Shareholder Approval of Proposed Merger with First Federal Bancorp

BEAUFORT, S.C., Feb. 21, 2018 – Coastal Banking Company Inc. (OTCQX:CBCO), the holding company of CBC National Bank, which operates branches in Beaufort and Port Royal, S.C., and in Fernandina Beach, Ocala, and The Villages, Fla., today announced that its shareholders have approved the previously announced merger transaction with First Federal Bancorp Inc. in a vote that took place yesterday.

On Nov. 7, 2017, First Federal Bancorp Inc., the holding company of First Federal Bank of Florida, based in Lake City, Fla., announced a definitive merger agreement to acquire Coastal Banking Company Inc. and CBC National Bank. Upon completion of the merger, First Federal will pay $21.50 per share in cash for each Coastal Banking Company common share and stock option outstanding in a transaction valued at $83.2 million. Pending regulatory approval, the merger is expected to be completed in the second quarter.

“We are gratified and excited to have taken another significant step toward our partnership with First Federal,” said Michael G. Sanchez, chairman and chief executive officer. “The combination of our two organizations, including the vibrant markets we serve, the full array of personal and business financial services and products, and the knowledgeable, personable staff of both companies, will provide our customers with a new level of convenience, service and choice.”

First Federal Bank of Florida is a community bank founded in the heart of North Florida in 1962. Today, First Federal is a $1.5 billion-asset institution offering a full line of personal and business financial solutions, loans, and services from Florida’s Panhandle to the First Coast. First Federal is a mutual savings bank and continues to receive a “5-Star, Superior” financial rating from BauerFinancial Inc. For more information, visit www.ffbf.com.

Full Release:

http://www.coastalbanking.com/reports--news---filings.html

For More Information Contact:

Michael G. Sanchez                                                    Thomas J. Flournoy              

Chairman & Chief Executive Officer                         EVP & Chief Financial Officer

Coastal Banking Company Inc.                                  Coastal Banking Company Inc.

904-321-0400                                                              904-321-2917              

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Coastal Banking Company Reports Strong Fourth Quarter and Record 2017 Earnings.

BEAUFORT, SC / ACCESSWIRE / January 30, 2018 / Coastal Banking Company Inc. (OTCQX: CBCO) (the "Company"), the holding company of CBC National Bank, which operates branches in Beaufort and Port Royal, S.C., and in Fernandina Beach, Ocala, and The Villages, Fla., today reported record net income of $6.99 million, or $1.83 diluted earnings per common share, for the year ended Dec. 31, 2017. Earnings for 2017 represented a slight increase over the net income for the year ended Dec. 31, 2016, of $6.96 million, or $2.05 diluted earnings per common share.

The Company reported net income of $1.72 million, or $0.45 diluted earnings per common share, for the three months ended Dec. 31, 2017. This compares to $2.21 million, or $0.59 in diluted earnings per common share, for the fourth quarter of 2016, a decrease of $490,000. The fourth quarter of 2016 represented the highest earnings quarter in the Company's history. On a linked-quarter basis, the $1.72 million of net income in the fourth quarter of 2017 was comparable to the third quarter 2017 net income of $1.71 million, or $0.45 diluted earnings per common share.

Continued strong profitability. Annual 2017 results continued to feature more balanced net income and solid contributions from all three of the Company's operating segments as compared to 2016: Community Banking earned $3.59 million in 2017, up from $2.20 million in 2016. SBA Lending earned $2.02 million in 2017, up from $891,000 earned in 2016. And Mortgage Banking earned $3.87 million in 2017.

Read Full Release & Financial Statements:

http://www.coastalbanking.com/reports--news---filings.html

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Coastal Banking Company Reports Strong Third Quarter 2017 Earnings

BEAUFORT, SC / ACCESSWIRE / October 30, 2017 / Coastal Banking Company Inc. (OTCQX: CBCO) (the "Company"), the holding company of CBC National Bank, which operates branches in Beaufort and Port Royal, S.C., and in Fernandina Beach, Ocala, and The Villages, Fla., today reported net income of $1.71 million, or $0.45 diluted earnings per common share, for the three months ended Sept. 30, 2017.

This compares to $1.99 million, or $0.54 in diluted earnings per common share, for the third quarter of 2016, a decrease of $280,000. On a linked-quarter basis, the $1.71 million of net income in the third quarter of 2017 decreased from second quarter 2017 net income of $2.11 million, or $0.55 diluted earnings per common share. The third quarter of 2016 and the second quarter of 2017 represented two of the three highest net income quarters in the Company's history.

For the first nine months ending Sept. 30, 2017, the Company reported net income of $5.27 million, or $1.38 diluted earnings per common share, an increase of $520,000 over the net income for the first nine months of 2016 of $4.75 million, or $1.45 diluted earnings per common share. The increase in 2017 year-to-date earnings over 2016, and the slight decline in diluted earnings per share, reflect the effects of the Company's April 2016 acquisition of First Avenue National Bank in Ocala, Florida.

To Read Full Release: Click Here

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CBC National Bank’s SBA/USDA Lending Division Surpasses $300 Million Milestone in Loans to Small Businesses

 FERNANDINA BEACH, Fla., September 26, 2017 – CBC National Bank, headquartered in Fernandina Beach and with branches in Fernandina Beach, Ocala and The Villages, Fla., and Beaufort and Port Royal, S.C., today announced that in June its SBA lending division surpassed the $300 million mark in loans to small businesses. As of June 30, it had reached $314 million.

CBC’s SBA lending division continues to grow and expand its capacity to provide small businesses across the Southeast the vital lending needed to spur economic growth and development. In the second quarter of 2017, the division originated $7.7 million in loans, compared to $5.2 million in the second quarter of 2016.

Read Full Release: https://hubs.ly/H08L15X0

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BEAUFORT, S.C., July 31, 2017 – Coastal Banking Company Inc. (OTCQX:CBCO) (the “Company”), the holding company of CBC National Bank, which operates branches in Beaufort and Port Royal, S.C., and in Fernandina Beach, Ocala, and The Villages, Fla., today reported net income of $2.11 million, or $0.55 diluted earnings per common share, for the three months ended June 30, 2017. This compares to $1.54 million, or $0.46 in diluted earnings per common share, for the second quarter of 2016, an increase of $570,000. The diluted earnings per common share for both quarters reflect the acquisition of First Avenue National Bank (“FANB”) in Ocala, Florida, in early April 2016.

On a linked-quarter basis, the $2.11 million of net income in the second quarter of 2017 increased significantly from first quarter 2017 net income of $1.45 million, or $0.38 diluted earnings per common share.

For the first six months ending June 30, 2017, the Company reported net income of $3.56 million, or $0.94 diluted earnings per common share, an increase of $790,000 over the net income for the first six months of 2016 of $2.77 million, or $0.90 diluted earnings per common share.

Read More: Click Here To Read Full Release

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Coastal Banking Announces Death of Board Member James "Jim" C. Key

BEAUFORT, SC / ACCESSWIRE / June 13, 2017 / Coastal Banking Company Inc. (OTCQX: CBCO) Board of Directors announces the passing of Jim Key, a valued member of the company's board of directors. Jim passed away on June 2nd, 2017.

"Jim was an inspiring leader and friend," said Michael Sanchez, Chairman & CEO of Coastal Banking Company, Inc.. He brought great value and a wealth of knowledge to our company and he will be greatly missed."

James C. Key, Class I Director, had served as a director of Coastal since 1999. Jim was Chairman of the Audit Committee and a member of the Corporate Governance & Nominating Committee. He was the managing partner of Shenandoah Group, LLP, a firm providing governance, risk management, and compliance (GRC) solutions for a wide variety of clients in business, government, education, and multilaterals since 1997. Mr. Key served as director-internal audit for North America and Asia Pacific at IBM Corporation in Armonk, New York, until he retired in 1997. He was a certified internal auditor and held a certification in risk management assurance. Additionally, Mr. Key was active in The Institute of Internal Auditors since 1991. He graduated from Syracuse University with a degree in liberal studies and completed graduate work at the Maxwell School of Citizenship and Public Affairs, Syracuse University. Mr. Key was immediate past president of the Southeast District of the Unitarian Universalist Association (UUA) of Congregations in Charlotte, North Carolina and chaired the audit committee of the board of trustees of the National UUA organization. He was elected to a single six-year term as moderator and chief governance officer of the National UUA in 2013. In that role, he chaired the board of trustees, presided over annual meetings, and met with congregations across the country

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“Creating shareholder value is a driving force for our Company and the true measure of our success. To accomplish that objective, our Company regularly updates and follows our Strategic Plan to help meet our overar­ching goals. Without that compass to direct us, and without our capable leaders’ steady guidance, we would simply be another banking company plodding along where the economy takes us.

“Instead, we plot our own course, we update that course as needed, we ensure that we have the best leaders in the correct positions to help us get where we’re going, and we have a definitive destination in mind.

“In 2016 we crafted an entirely new Strategic Plan for 2017-2019 to update our prior three-year plan. The new Plan states that our goal is a superi­or return on equity compared to our peers. Before turning the page to 2017, we also completed our annual budget, did a health-check on the capacity of our leaders and systems, and analyzed our financial report­ing, operating and competitive landscape.” 

– Michael G. Sanchez, Chairman & CEO, Coastal Banking Co., Inc. 

Read more in the Letter to Shareholders, and see our financial highlights for the year, in the 2016 Coastal Banking Co., Inc., annual report, now available in digital version at http://www.coastalbanking.com/

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Coastal Banking Company Reports First Quarter 2017 Earnings

BEAUFORT, SC / ACCESSWIRE / May 2, 2017 / Coastal Banking Company Inc. (OTCQX: CBCO), the holding company of CBC National Bank, which operates branches in Beaufort and Port Royal, S.C., and in Fernandina Beach, Ocala, and The Villages, Fla., today reported net income of $1.45 million, or $0.38 diluted earnings per common share, for the three months ended March 31, 2017. This compares to $1.22 million, or $0.44 in diluted earnings per common share, for the first quarter of 2016, an increase of $230,000. The decline in diluted earnings per common share was due to the additional common shares issued in April 2016 for the acquisition of First Avenue National Bank (FANB) in Ocala, Fla

On a linked-quarter basis, the $1.45 million of net income in the first quarter of 2017 declined from fourth-quarter 2016 net income of $2.21 million, or $0.59 diluted earnings per common share. Coupled with the uncertainty surrounding interest rates in the first quarter of 2017, Coastal's mortgage segment historically experiences lower volume during the first quarter consistent with the industry.

Key performance highlights for the first quarter of 2017 include:

Continued strong profitability. First-quarter 2017 net income increased by 18.9 percent over the first quarter of 2016. First quarter results featured more balanced net income for all three of the Company's operating segments: Community Banking earned $812,000 in 2017's first quarter, up from $528,000 in 2016, SBA Lending earned $638,000 in 2017, up from $354,000 earned in 2016, and Mortgage Banking earned $574,000 in 2017, down from $760,000 in 2016. All three segments outperformed the Company's 2017 budget for the first quarter

Continued shareholder value creation. Driven by strong earnings over the last five quarters, book value per share has risen to $14.58 per share at March 31, 2017, from $14.18 per share at Dec. 31, 2016, and $12.88 at March 31, 2016. The CBCO closing market price on March 31, 2017, was $17.20, up from $15.01 at Dec. 31, 2016.

Increased mortgage banking income on lower volume. For the first quarter of 2017, $346.6 million in residential mortgage loans were sold and $3.41 million in total mortgage banking income generated, down in volume from $379.7 million, but up in income from $2.93 million, from the first quarter of 2016. Mortgage banking generated enhanced yields on sold loans in first-quarter 2017 compared to the same period in 2016 as a result of strategic changes in its loan origination mix.

Strong SBA originations and loan sales. For the first quarter of 2017, SBA Lending originated $10.3 million in loans and sold $8.9 million into the secondary market. The balance of SBA loans available for sale at March 31, 2017, has grown to $38 million.

Robust balance sheet and Community Banking loan growth. Year-over-year growth in the balance sheet of $87.8 million, or 18.5 percent, with total assets of $562.6 million at March 31, 2017. The asset growth was driven by increased portfolio loan balances and the FANB acquisition. Since March 31, 2016, SBA portfolio loans grew $8.2 million and Community Banking portfolio loans grew $95.2 million, of which $81.4 million were added as part of the acquisition. The growth in portfolio loans was offset by a decline in loans held for sale of $28.5 million from March 31, 2016, to March 31, 2017.

Strong quarterly and year-over-year deposit growth. Deposits have grown from $319.8 million at March 31, 2016, to $431.7 million at March 31, 2017, an increase of 35.0 percent. During the first quarter of 2017, deposits grew by $14.4 million, predominantly in non-interest bearing and low-cost NOW accounts.

Steady credit quality. Related to credit quality, the ratio of non-performing assets to assets decreased from 1.73 percent at March 31, 2016, to 1.50 percent at March 31, 2017. The ratio was 1.98 percent at Dec. 31, 2016. The allowance for loan losses was 1.39 percent of loans outstanding (excluding loans held for sale) at the end of March 2017, slightly down from 1.48 percent at the end of March 2016. The allowance for loan losses was 1.47 percent at Dec. 31, 2016. Other real estate owned (OREO) declined $1.3 million, or 21.2 percent, from March 31, 2016, to March 31, 2017. Net charge-offs were $667,000 for the first three months of 2017 compared to net charge-offs of $869,000 for the first three months in 2016.

Strong capital ratios. Capital ratios for the Company remained strong, with a total risk-based capital ratio of 20.83 percent and a Tier 1 risk-based capital ratio of 19.56 percent at March 31, 2017, up from 20.11 percent and 19.21 percent, respectively, at March 31, 2016.

Continued steady efficiency ratio. The Company's efficiency ratio for the first quarter of 2017 was 73.2 percent, compared to 74.3 percent for first-quarter 2016. The Company's efficiency ratio for the year 2016 was 70.5 percent.

To Read Entire 1st Qtr Earnings Release Go To:

http://www.coastalbanking.com/reports--news---filings.html

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CBC National Bank, headquartered in Fernandina Beach and with branches in Fernandina Beach, Ocala and The Villages, Fla., and Beaufort and Port Royal, S.C., today announced the hiring of veteran banker Mitchell Smith as executive vice president and chief credit officer.

Smith is replacing CBC’s long-time chief credit officer, who has taken a different position with the company. 

Smith brings 27 years of community banking experience to CBC. Before joining the bank, Smith served most recently for 10 years as chief credit officer of Heritage Bank of the South in Albany, Ga., establishing the bank’s loan policy and directing robust loan growth while ensuring strong asset quality as it grew to a $1.8 billion bank. Before that, he served as senior credit officer of ABC Bancorp in Moultrie, Ga., and as executive vice president of Security Bank and Trust Company in Albany, among other positions. 

Smith is a graduate of the Center of Authentic Leadership and the Graduate School of Banking of the South. He earned a BS in biology from Valdosta State College and did graduate studies in accounting and management at Augusta State College and Georgia State University. 

“Mitchell Smith brings a wealth of valuable credit management and leadership experience to CBC,” said Charles Wagner, president of CBC National Bank. “He has been instrumental throughout his career in ensuring that his banks have operated in a safe and efficient manner, and he will infuse our organization with that same strong credit culture and operational safety and security.”

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Coastal Banking Company Reports Third Quarter 2016 Earnings

Key highlights from the third quarter of 2016 include:  Completion of the integration of First Avenue National Bank, acquired in April 2016.  Continued strong profitability growth, with third quarter 2016 net income increasing by 28.5 percent over the second quarter of 2016, with strong and more balanced net income for all three of the Company’s operating divisions: Community Banking, SBA Lending and Mortgage Banking.  Driven by strong earnings over the last four quarters, common tangible book value has risen to $12.98 per share at Sept. 30, 2016, from $11.38 at Sept. 30, 2015, an increase of $1.60 per share, or 14.1 percent.  Continuation of robust mortgage banking funding and profitability, with more than $886.3 million in residential mortgage loans originated and $21.0 million in mortgage banking income during the quarter, up from $614.8 million and $13.4 million, respectively, for the third quarter of 2015.  Year-over-year growth in the balance sheet of $174.3 million, or 39.7 percent, with total assets of $613.0 million at Sept. 30, 2016, driven by rising balances of SBA portfolio loans, increased residential mortgage loans available for sale and the related loan sales receivable, and the addition of First Avenue National Bank.  Continued strong net interest margin for the third quarter of 2016 of 3.76 percent, compared to 3.95 percent for the second quarter of 2016 and 3.98 percent for the third quarter of 2015.  Other real estate owned (OREO) of $5.5 million, a slight increase by $400,000, or 7.4 percent, from the second quarter of 2016, but a decline of $800,000, or 12.7 percent, from Sept. 30, 2015.  Capital ratios at CBC National Bank remaining strong, with a total risk-based capital ratio of 20.92 percent and a Tier 1 risk-based capital ratio of 19.66 percent at Sept. 30, 2016. For the full text of the earnings release and complete unaudited interim financial results go to http://www.coastalbanking.com/reports--news---filings.html For More Information Contact: Thomas J. Flournoy  EVP & Chief Financial Officer  Coastal Banking Company Inc.  904-321-2917

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Coastal Banking Company Inc. Elects Charles Wagner President and Thomas Flournoy EVP and Chief Financial Officer

BEAUFORT, S.C., Aug. 30, 2016 – Coastal Banking Company Inc. (OTCQX:CBCO), the holding company of CBC National Bank, which operates branches in Beaufort and Port Royal, S.C., Fernandina Beach, Ocala, and The Villages, Fla., today announced that its board of directors has elected Charles Wagner president of the company and Thomas J. Flournoy executive vice president and chief financial officer.

Wagner has been president of CBC National Bank since June 2015 and directly oversees the bank’s mortgage division, human resources, information technology and operations, marketing, and strategic planning. He joined the company in 2007 as a founding leader of the bank’s mortgage division. Wagner also is a member of both the Coastal and CBC National Bank boards of directors.

Michael G. Sanchez remains chief executive officer of both Coastal Banking Company Inc. and CBC National Bank, and chairman of both boards. “The Coastal board’s management succession committee and governance committee spent 18 months planning the company’s management succession process before naming Charles Wagner president of CBC National Bank more than a year ago,” said Sanchez. “Since that time, Charles has continued to ably demonstrate the acumen and proven performance that led to our decision. Naming him president of Coastal Banking Company Inc. is a further step in the succession plan toward him assuming overall leadership of the company at the appropriate time.”

Flournoy recently joined Coastal as chief financial officer. He is a career banker with 35 years of community bank leadership of finance/accounting, audit and risk, operations and information technology teams.

“Tom Flournoy is a veteran chief financial officer who adds to the overall management strength of our company,” said Sanchez. “His deep experience, working in tandem with Charles Wagner, will serve as a valuable resource as we continue to focus on growing our company and enhancing shareholder value.”

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CBC National Bank’s Mortgage Division Surpasses $13 Billion Loan Production Milestone, Earns Additional Accolades

FERNANDINA BEACH, Fla., Aug. 16, 2016 – CBC National Bank, headquartered in Fernandina Beach and with branches in Fernandina Beach, Ocala and The Villages, Fla., and Beaufort and Port Royal, S.C., and with its mortgage banking division headquartered in Atlanta, today announced that in June its mortgage division surpassed the $13 billion mark in loan production.

CBC’s mortgage division began operations in September 2007 utilizing a conservative, risk-averse business model, originating primarily full-documentation, conforming mortgage loans pre-sold into the secondary market. The division passed the $1 billion mark in loan production in June 2009 and passed the $10 billion mark in June 2015. During the second quarter of 2016, the mortgage division continued to achieve robust funding and profitability, with more than $551.7 million in residential mortgage loans funded and $16.4 million in mortgage banking income during the quarter.

In addition to reaching the $13 billion loan production milestone, CBC’s mortgage division was earlier named by the Atlanta Journal-Constitution one of the “Best Places to Work – Atlanta” for the second consecutive year. For 2016 CBC ranked 54th out of the 150 companies receiving this honor; in 2015 it ranked 63rd.

And CBC recently learned that six of its mortgage bankers have been recognized individually as among the Scotsman Guide’s Top Originators 2015 across categories including Top VA Volume (ranking No. 13, 19, 46 and 58), Most Loans Closed (ranking No. 263) and Top Dollar Volume (ranking No. 327).

“Our continued growth and recognition is a testament to the quality of all of our associates during our almost 9 years in business,” said Brynn Stensrud, executive vice president and head of the mortgage division. “Our knowledgeable mortgage professionals continue to share CBC’s overall passion and commitment to offering our customers the best products and service available. We remain committed to the residential markets in our home communities in Fernandina Beach, Ocala and The Villages, Beaufort and Port Royal, and Atlanta, and we will continue to meet the purchase and refinance needs of our customers while meeting their demands for great service and products into the future. We likewise remain proud of the mortgage division’s significant contributions to CBC National Bank’s earnings over the years.”

About CBC National Bank

CBC National Bank, headquartered in Fernandina Beach, Fla., provides a full range of consumer and business banking services through full-service banking offices in Fernandina Beach, Ocala and The Villages, Fla., and Beaufort and Port Royal, S.C. The company’s residential mortgage banking division, headquartered in Atlanta, includes traditional retail and wholesale lending, as well as a National Retail Group that has lending offices in Florida, Georgia, Maryland, Michigan, Indiana, Illinois and Ohio. The company’s government guaranteed lending division originates SBA loans primarily in Jacksonville, Ft. Myers, Tampa and Vero Beach, Fla., Greensboro, N.C., Atlanta and Beaufort. For more information, please visit CBC National Bank’s website, www.cbcnationalbank.com.

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BEAUFORT, S.C., Aug. 11, 2016 – Coastal Banking Company Inc. (OTCQX:CBCO), the holding company of CBC National Bank, which operates branches in Fernandina Beach, Ocala and The Villages, Fla., and Beaufort and Port Royal, S.C., has appointed Thomas J. Flournoy as chief financial officer of the company. 

Flournoy is a career banker with 35 years of community bank leadership of finance/accounting, audit and risk, operations and information technology teams. He will oversee all financial functions, including accounting, treasury, financial reporting and budgeting, among other duties.

 “Tom Flournoy is a veteran chief financial officer who has extensive experience helping growing community banks manage all the fiscal and regulatory complexities of the marketplace, as well as the executive leadership and interpersonal skills to flourish in the position,” said Michael G. Sanchez, chairman and chief executive officer. “Tom’s deep experience in mortgage banking and his focused risk management expertise make him an exceptional fit for Coastal. His experience will be a valuable resource as we continue to focus on growing our company and enhancing shareholder value.”

Flournoy has served as CFO or chief operating officer of five community banks in Georgia, Indiana and Kentucky for the past 14 years, following a 14-year tenure as controller of a large regional bank in Indiana.

Most recently, Flournoy served as senior vice president and CFO of First Bank of Georgia and Georgia-Carolina Bancshares, Inc., based in Augusta, Ga.

Flournoy earned a bachelor’s degree in accounting from Ball State University, and he is a certified public accountant.

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Coastal Banking Company Reports Second Quarter 2016 Earnings

BEAUFORT, S.C., Aug. 8, 2016 – Coastal Banking Company Inc. (OTCQX:CBCO), the holding company of CBC National Bank, which operates branches in Beaufort and Port Royal, S.C., Fernandina Beach, Ocala, and The Villages, Fla., today reported net income of $1.5 million, or earnings per diluted common share of $0.46, for the quarter ended June 30, 2016. 

This compares to net income of $1.6 million, or diluted earnings per common share of $0.51, in the second quarter of 2015, a year-over-year decrease of $56,000, or diluted earnings per common share of $0.05.   

On a linked-quarter basis, net income in the second quarter of 2016 represents an increase of $328,000, or earnings per diluted common share of $0.02, from net income of $1.2 million, or earnings per diluted common share of $0.44, in the first quarter of 2016. 

Key highlights from the second quarter of 2016 include:

Completion of the acquisition of First Avenue National Bank.  

Continued strong profitability growth, with second quarter net income increasing by 26.9 percent over the first quarter.

Non-interest bearing demand deposits grew $27.5 million, or 62.6 percent, over the first quarter.  

Driven by strong earnings over the last four quarters, common tangible book value has risen to $12.48 per share at  June 30, 2016, an increase of $1.63 per share, or 15 percent, during the last year from $10.85 per share at June 30, 2015.

Continuation of robust mortgage banking funding and profitability, with more than $551.7 million in residential mortgage loans funded and $16.4 million in mortgage banking income during the quarter.

Balance sheet expansion continued during the quarter, up by $140.8 million, or 29.7 percent, with total assets reaching $615.6 million, driven by rising balances of SBA portfolio loans, residential mortgage loans available for sale and the related loan sales receivable, as well as completing the acquisition of First Avenue National Bank.  

Improving net interest margin for the second quarter at 3.95 percent, up 6 basis points from the first quarter of 2016.

Other real estate owned (OREO) of $5.1 million decreased by $1.2 million, or 19.0 percent, during the quarter and $1.9 million, or 27.1 percent, from June 30, 2015.

Capital ratios at CBC National Bank remained strong, with a total risk-based capital ratio of 19.96 percent and a Tier 1 risk-based capital ratio of 18.70 percent.

 For the full text of the earnings release and complete unaudited interim financial results: http://www.coastalbanking.com/reports--news---filings.html  

 For More Information:

Randy E. Graber                                       Michael G. Sanchez        

Controller                                                  Chairman & Chief Executive Officer

904-321-2913                                           904-321-0400

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Chief Financial Officer Paul Garrigues Resigns To Pursue Other Opportunities

 BEAUFORT, S.C., July 27, 2016 – Coastal Banking Company Inc. (OTCQX:CBCO), the holding company of CBC National Bank, which operates branches in Fernandina Beach, Ocala and The Villages, Fla., and Beaufort and Port Royal, S.C., announced that Paul R. Garrigues has resigned as chief financial officer, effective August 5, to pursue other opportunities.

Garrigues joined Coastal Banking Company Inc. as chief financial officer in September 2007 as a 30-year financial, accounting and banking professional. Over his long career, Garrigues has served as chief financial officer for eight financial institutions across the country. Immediately prior to joining Coastal, Garrigues served as senior vice president of secondary marketing at Seacoast National Bank in Stuart, Fla., which acquired Big Lake National Bank in 2006, where he served as CFO.

Garrigues earned a bachelor’s degree in accounting from the University of Southern California. He is a certified public accountant and is a member of the American Institute of Certified Public Accountants.

“Paul Garrigues served Coastal with distinction for nine years as chief financial officer, helping the company navigate a period of both stellar growth and positive financial results, and also through the very difficult period of the Great Recession,” said Michael G. Sanchez, chief executive officer. “His decades of experience and financial acumen were a valuable resource to the company throughout his tenure. We wish him nothing but the best in his future endeavors.”

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Coastal Banking Company Inc. Shareholders Approve Slate of Directors, Appoint Lead Independent Director

Coastal Banking Company Inc. (OTCQX:CBCO), the holding company of CBC National Bank, which operates branches in Fernandina Beach, Ocala and The Villages, Fla, and Beaufort and Port Royal, S.C., announced that at its May 25th shareholders’ meeting in Beaufort, shareholders approved a slate of directors and appointed a new lead independent director.

The Coastal shareholders elected Kenneth Ausley, Suellen Garner, Mark Heles, and Ladson Howell Class II Directors with terms expiring in 2019 and John Adams II and Charles Wagner Class III Directors with terms expiring in 2017.

The Coastal Board, at the behest of the Governance Committee, elected Ladson Howell as Lead Independent Director and Vice Chairman of the Board. Howell previously held the title of Vice Chairman.

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Coastal Banking Company Inc. (OTCQX:CBCO), the holding company of CBC National Bank, which operates branches in Fernandina Beach, Ocala and The Villages, Fla, and Beaufort and Port Royal, S.C., today reported net income of $1,218,000, or earnings per diluted common share of $0.44, for the quarter ended March 31, 2016. This represents a $47,000 improvement from the net income of $1,171,000, or earnings per diluted common share of $0.35, for the first quarter of 2015.

On a linked-quarter basis, net income in the first quarter of 2016 represents a decrease of $215,000, or earnings per diluted common share of $0.13, from net income of $1,433,000, or earnings per diluted common share of $0.48, in the final quarter of 2015.

Key highlights from the first quarter of 2016 include:

Continuation of strong, recurring quarterly earnings which has averaged in excess of $1 million over the past eight consecutive quarters.

Driven by these strong earnings, common tangible book value has grown to $12.36 per share at March 31, 2016, an increase of $2.03 per share, or 19.7 percent, during the last year, from $10.33 per share at March 31, 2015.

Mortgage banking funding and profitability remained strong, with more than $400 million in residential mortgage loans funded and $12.3 million in mortgage banking income earned during the quarter.

Asset quality costs of $84,000 for the quarter were down 75 percent, or $253,000, from costs of $337,000 incurred during the first quarter of 2015.

Stable net interest margin in the first quarter at 3.89 percent, unchanged from the first quarter of 2015, and a decrease of 1 basis point from the prior quarter end.

Nonaccrual loans ended the quarter at $1.9 million, a decrease of $542,000, or 21.9 percent, from the prior quarter end, and down by $2.7 million from March 31, 2015.

Other real estate owned (OREO) of $6.3 million increased by 3.9 percent during the quarter but was down by $633,000, or 9.1 percent, from March 31, 2015.

Capital ratios at CBC National Bank remained strong, with a total risk-based capital ratio of 23.61 percent and a Tier 1 risk-based capital ratio of 22.34 percent.

For the full text of the earnings release and complete unaudited interim financial results, please click the links below or visit the company's website at

Full Earnings Release

1st Qtr Financial Results

http://www.coastalbanking.com/reports--news---filings.html