Coastal Banc to Divest Five Central Texas Branches

Search Blogs that Mention this News Release

Click this link to view linked Bookmarking Services

Click this link to view linked Blogging Services

Coastal Banc to Divest Five Central Texas Branches

		COASTAL BANCORP LOGO Coastal Bancorp. logo. (PRNewsFoto)[DM] HOUSTON, TX USA

    HOUSTON, Sept. 24 /PRNewswire-FirstCall/ --
Coastal Bancorp, Inc. (Nasdaq: CBSA) and its subsidiary Coastal Banc ssb,
today announced that it has executed a definitive agreement to sell five
Central Texas branches (Llano, Burnet, Mason, Kingsland and Marble Falls,
Texas) to First State Bank Central Texas.
    Consummation of the proposed transaction is expected to occur by the end
of the fourth quarter of 2002, pending regulatory approvals and subject to
customary conditions.  The sale includes deposit accounts of approximately
$80.8 million, as well as four owned and one leased branch facility.  The
deposits are being purchased at a 6.25% premium.  Coastal will continue to
operate its two branch locations in Austin, Texas (7200 Mopac and 1114 Lost
Creek Blvd.).  Customers will be notified as soon as possible to assure
minimal disruption as the ownership change occurs.
    At June 30, 2002, Coastal had total assets of approximately $2.5 billion,
deposits of approximately $1.7 billion, preferred stock (Series A) of Coastal
Banc ssb of approximately $28.8 million, Series A Cumulative Preferred Stock
of $27.5 million and common stockholders' equity of approximately
$119.4 million.
    Coastal Bancorp, Inc. owns, through its wholly-owned subsidiary, Coastal
Banc Holding Company, Inc., 100 percent of the voting stock of Coastal Banc
ssb, a Texas-chartered FDIC insured, state savings bank headquartered in
Houston.  Coastal Banc ssb currently operates 49 branch offices in
metropolitan Houston, Austin, Corpus Christi, the Rio Grande Valley and small
cities in the southeast quadrant of Texas.  You can visit our website at
http://www.coastalbanc.com (which is not part of this release).
    "Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995:  The statements contained in this release which are not historical
facts contain forward looking statements with respect to plans, projections or
future performance of the Company, the occurrence of which involve certain
risks and uncertainties.  Additional information concerning factors that could
cause actual results to materially differ from those in the forward looking
statements is contained in Coastal Bancorp Inc.'s Securities and Exchange
Commission filings.  Investors are cautioned that any such forward looking
statements are not guarantees of future performance and that actual results or
developments may differ materially from those projected in the forward looking
statements.  Furthermore, Coastal does not intend (and is not obligated) to
update publicly any forward-looking statement.

SOURCE Coastal Bancorp, Inc.

http://www.coastalbanc.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990826/CBSALOGO
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
CONTACT:
Manuel J. Mehos, CEO, or Catherine N. Wylie,
CFO, both of Coastal Bancorp, Inc., +1-713-435-5327, or fax,
+1-713-435-5106