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| Coastal Bancorp, Inc. Announces Fourth Quarter Earnings |
HOUSTON, Jan. 15 /PRNewswire/ -- Coastal Bancorp, Inc. (Nasdaq: CBSA)
today reported net income available to common stockholders of $2.8 million for
the quarter ended December 31, 1997 compared to $3.2 million for the quarter
ended December 31, 1996. Diluted earnings per share for the quarter ended
December 31, 1997 were $0.54 compared to $0.63 for the same period last year.
The weighted average common shares outstanding used in the diluted earnings
per share calculations for the periods were 5,180,566 and 5,080,169,
respectively.
Net interest income decreased by $445,000 for the quarter ended December
31, 1997 from the quarter ended December 31, 1996 and noninterest income
increased slightly by $55,000 for the same period. The decrease in net
interest income was due to the increase in interest expense of $1.4 million,
which was only partially offset by the $988,000 increase in interest income.
During the fourth quarter of 1997, Coastal continued to experience a
tightening in net interest income due primarily to higher borrowing costs and
the anomaly that the spread between LIBOR and Treasury rates (the "TED
Spread") has been much wider than usual. The TED Spread historically (6 year
average) has been 40 basis points, but for the fourth quarter 1997 was 63
basis points which would equate to an additional 9 cents per share for the
quarter had the spread been consistent with the 6 year average. While
management believes that the higher borrowing costs are temporary, efforts are
continuing to replace borrowings with lower cost deposits and to maintain
reasonable operating expenses. In addition, the current quarter included
approximately $539,000 or 10 cents per share (after tax) of additional
amortization of purchased mortgage loan premium. This amortization was
attributable primarily to prepayments related to an adjustable rate whole loan
package purchased in the second quarter of 1997. Management believes the
prepayments on this loan package could continue at least through the first
quarter of 1998. The slight increase in noninterest income was primarily due
to an increase in loan fees and service charges on deposit accounts of
$181,000 offset by a decrease in loan servicing income of $96,000 and a
decrease of $30,000 in other noninterest income.
Noninterest expense increased $621,000 for the fourth quarter of 1997,
compared to the same period in 1996. This increase was primarily due to the
overall compensation and occupancy expenses related to an increase in
personnel needed for the expansion of the loan products offered. In addition,
occupancy expenses also increased due to the acquisition of assets related to
the relocation of Coastal's corporate headquarters in the third quarter of
1997. Insurance premiums (including deposit insurance premiums) increased
$178,000 for the fourth quarter of 1997 from the same period last year. This
increase was primarily due to the $636,000 refund recorded in the fourth
quarter of 1996 for that quarter's Savings Association Insurance Fund ("SAIF")
assessment payment, offset by the implementation of the additional Financing
Corporation ("FICO") assessment effective January 1, 1997, which amounted to
approximately $184,000 for the fourth quarter of 1997. These increases were
somewhat offset by the decrease in other noninterest expense of $408,000 for
the fourth quarter of 1997 as compared to the same period in 1996. The
decrease in other noninterest expense includes a decrease of $69,000 in
advertising related expenses, a nonrecurring $101,000 decrease in
telecommunication related expenses and a $238,000 decrease in various other
expenses. The provision for federal income taxes decreased $577,000 for the
fourth quarter of 1997 compared to the same period in 1996, primarily due to
the $1.0 million decrease in income before provision for federal income taxes.
Net income available to common stockholders for the year ended December
31, 1997 was $11.6 million compared to $11.8 million for the same period in
1996 before the after-tax effect of the 1996 special assessment. Net income
available to common stockholders and after the effect of the 1996 special
assessment for the year ended December 31, 1996 was $7.0 million. Diluted
earnings per share for the year ended December 31, 1997 were $2.25 compared to
$2.34 for the same period last year before the after-tax effect of the 1996
special assessment. Diluted earnings per share after the effect of the 1996
special assessment were $1.38 for the year ended December 31, 1996. The
weighted average common shares outstanding used in the diluted earnings per
share calculations for the periods were 5,148,430 and 5,037,917, respectively.
At December 31, 1997, Coastal had total assets of approximately $2.9
billion, deposits of approximately $1.4 billion, preferred stock (Series A) of
Coastal Banc ssb of approximately $28.8 million and total common stockholders'
equity of approximately $104.8 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, state savings bank headquartered in Houston. Coastal
Banc ssb operates 37 branch offices in metropolitan Houston, Austin, Corpus
Christi and small cities in the south east quadrant of Texas. At December 31,
1997, Coastal Banc ssb was considered to be a "well capitalized" institution
according to FDIC guidelines.
COASTAL BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars In Thousands, except per share data)
(unaudited)
For the Three Months Ended For the Year Ended
December 31, December 31,
1997 1996 1997 1996
Net income available to common
stockholders before the
after-tax effect of the 1996
one-time SAIF insurance special
assessment $2,789 $3,223 $11,563 $11,797
After-tax effect of the
one-time SAIF insurance
special assessment in 1996 $0 $0 $0 $(4,846)
Net income available to
common stockholders $2,789 $3,223 $11,563 $6,951
Diluted earnings per share
before the after-tax effect
of the 1996 one-time SAIF
insurance special assessment $0.54 $0.63 $2.25 $2.34
Diluted earnings per share after
the effect of the 1996 special
assessment $0.54 $0.63 $2.25 $1.38
Cash diluted earnings per share
before the after-tax effect
of the 1996 one-time SAIF
insurance special assessment $0.63 $0.72 $2.60 $2.70
Cash diluted earnings per share
after the effect of the 1996
special assessment $0.63 $0.72 $2.60 $1.73
Return on average assets:
Before the effect of the 1996
special assessment 0.47% 0.54% 0.49% 0.51%
After the effect of the 1996
special assessment 0.47% 0.54% 0.49% 0.34%
Return on average equity:
Before the effect of the 1996
special assessment 10.77% 13.88% 11.68% 12.53%
After the effect of the 1996
special assessment 10.77% 13.88% 11.68% 7.50%
Net interest spread including
noninterest-bearing deposits 1.83% 1.89% 1.85% 1.89%
Net interest spread 1.62% 1.71% 1.67% 1.72%
Net interest margin 1.95% 2.04% 2.02% 2.06%
For the Three Months Ended For the Year Ended
December 3l, December 31,
1997 1996 1997 1996
Noninterest expense to average
total assets:
Before the effect of the 1996
special assessment 1.34% 1.29% 1.36% 1.35%
After the effect of the
1996 special assessment 1.34% 1.29% 1.36% 1.61%
Charge-offs of loans receivable $158 $203 $1,417 $851
Net charge-offs of loans
receivable $121 $195 $1,269 $748
Ratio of net charge-offs to
average total loans
receivable 0.01% 0.02% 0.10% 0.06%
Average interest-earning
assets $2,839,447 $2,796,777 $2,824,140 $2,740,903
Average total assets $2,930,789 $2,869,543 $2,905,540 $2,812,247
Average loans receivable $1,294,052 $1,233,528 $1,281,493 $1,156,933
Average common
stockholders' equity $102,688 $92,120 $99,024 $92,684
COASTAL BANCORP, INC. AND SUBSIDIARIES
OTHER FINANCIAL DATA
(Dollars In Thousands, except per share data)
(unaudited)
December 31, December 31,
1997 1996
Non-performing loans receivable $17,351 $12,839
Real estate owned and repossessed assets 3,198 3,161
Total non-performing assets $20,549 $16,000
Allowance for loan losses $7,412 $6,880
Ratio of non-performing loans to total loans
receivable 1.38% 1.04%
Ratio of non-performing assets to total assets 0.71% 0.56%
Ratio of allowance for loan losses to
non-performing loans receivable 42.72% 53.59%
Ratio of allowance for loan losses to total
loans receivable 0.59% 0.56%
Book value per common share $20.67 $18.70
Tangible book value per common share $17.74 $15.70
Regulatory capital ratios:
Tier 1 (Core) 5.52% 5.35%
Tier 1 risk-based 11.46% 11.77%
Total risk-based 11.98% 12.30%
COASTAL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In Thousands, except share data)
December 31, December 31,
1997 1996
(unaudited)
ASSETS
Cash and amounts due from depository institutions $37,096 $27,735
Loans receivable 1,261,435 1,229,748
Mortgage-backed securities held-to-maturity 1,345,090 1,344,587
Mortgage-backed securities available-for-sale,
at market value 169,997 180,656
U.S. Treasury security available-for-sale,
at market value --- 11
Mortgage loans held for sale --- 298
Accrued interest receivable 14,813 14,690
Property and equipment 22,250 14,987
Stock in the Federal Home Loan Bank of Dallas (FHLB) 27,801 25,971
Goodwill 15,717 15,596
Mortgage servicing rights 5,653 6,810
Prepaid expenses and other assets 11,558 14,818
$2,911,410 $2,875,907
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Savings deposits $1,375,060 $1,310,835
Advances from the FHLB 540,475 409,720
Securities sold under agreements to repurchase 791,760 966,987
Senior notes payable 50,000 50,000
Advances from borrowers for taxes and insurance 3,975 4,676
Other liabilities and accrued expenses 16,560 10,791
Total liabilities 2,777,830 2,753,009
9.0% noncumulative preferred stock of Coastal
Banc ssb (Series A) 28,750 28,750
Commitments and contingencies
Stockholders' equity:
Preferred stock, no par value; authorized shares
5,000,000; no shares issued --- ---
Common stock, $.01 par value; authorized shares
30,000,000; 5,008,926 and 4,966,941 shares issued
and outstanding in 1997 and 1996 50 50
Additional paid-in capital 33,186 32,604
Retained earnings 73,868 64,597
Unrealized gain (loss) on securities available-
for-sale (2,274) (3,103)
Total stockholders' equity 104,830 94,148
$2,911,410 $2,875,907
COASTAL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, except per share data)
Three Months Ended
December 31,
1997 1996
(Unaudited)
Interest income:
Mortgage-backed securities $23,360 $23,329
Loans receivable 26,713 25,876
Federal funds sold, certificates of
deposit and other investments 530 410
50,603 49,615
Interest expense:
Savings deposits 16,253 15,389
Other borrowed money 13,204 12,751
Senior notes payable 1,250 1,250
Advances from the FHLB:
Short-term 2,764 2,095
Long-term 3,310 3,863
36,781 35,348
Net interest income 13,822 14,267
Provision for loan losses 450 450
Net interest income after provision
for loan losses 13,372 13,817
Noninterest income:
Loan fees and service charges 1,105 924
Loan servicing income, net 309 405
Other 208 238
1,622 1,567
Noninterest expense:
Compensation, payroll taxes and
other benefits 4,730 4,364
Office occupancy 2,024 1,642
Insurance premiums 272 94
Data processing 569 524
Amortization of goodwill 479 444
Real estate owned 274 251
Other 1,570 1,978
9,918 9,297
Income before provision for
Federal income taxes 5,076 6,087
Provision for Federal income taxes 1,640 2,217
Net income before preferred
stock dividends 3,436 3,870
Preferred stock dividends of Coastal Banc
ssb (Series A) 647 647
Net income available to common
stockholders $2,789 $3,223
Diluted earnings per share $0.54 $0.63
COASTAL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, except per share data)
Year Ended
December 31,
1997 1996
(Unaudited)
Interest income:
Mortgage-backed securities $92,755 $95,155
Loans receivable 106,962 97,935
Federal funds sold, certificates of
deposit and other investments 1,639 1,521
201,356 194,611
Interest expense:
Savings deposits 62,912 60,076
Other borrowed money 55,189 51,360
Senior notes payable 5,000 5,000
Advances from the FHLB:
Short-term 8,562 6,622
Long-term 12,760 15,127
144,423 138,185
Net interest income 56,933 56,426
Provision for loan losses 1,800 1,925
Net interest income after
provision for loan losses 55,133 54,501
Noninterest income:
Loan fees and service charges 4,018 3,450
Loan servicing income, net 1,406 1,565
Gain on sale of branch office --- 521
Gain on sales of mortgage-backed
securities available-for-sale, net 237 (4)
Other 723 559
6,384 6,091
Noninterest expense:
Compensation, payroll taxes and
other benefits 18,754 16,547
Office occupancy 7,312 6,002
Insurance premiums 1,091 2,199
Data processing 2,245 2,447
Amortization of goodwill 1,840 1,784
Real estate owned 902 916
Other 7,400 8,032
SAIF insurance special assessment --- 7,455
39,544 45,382
Income before provision for
Federal income taxes 21,973 15,210
Provision for Federal income taxes 7,822 5,671
Net income before preferred stock
dividends 14,151 9,539
Preferred stock dividends of Coastal Banc
ssb (Series A) 2,588 2,588
Net income available to common
stockholders $11,563 $6,951
Diluted earnings per share $2.25 $1.38
SOURCE Coastal Bancorp, Inc.
back to topCONTACT:
Manuel J. Mehos, CEO, or Catherine N. Wylie,
CFO, 713-435-5000, or fax: 713-435-5106, or email:
cwylie@coastalbanc.com, both of Coastal Bancorp, Inc.
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
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