Coastal Bancorp, Inc. Finalizes the Sale of Its Mortgage-Backed Securities Portfolio

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Coastal Bancorp, Inc. Finalizes the Sale of Its Mortgage-Backed Securities Portfolio

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

    HOUSTON, Nov. 28 /PRNewswire/ -- Coastal Bancorp, Inc. (Nasdaq: CBSA)
reported on November 14, 2001, that it entered into an agreement to sell
approximately $850 million of its mortgage-backed securities.  As a result,
Coastal expects to recognize a gain of approximately $175,000.  "This
transaction was undertaken to strategically restructure a portion of Coastal's
balance sheet to make the Company less vulnerable to market interest rate
fluctuations," said Manuel J. Mehos, Chairman and Chief Executive Officer.
    Now that the actual transactions have settled and the expected impact on
the Company's future financial statements is quantifiable, Management of
Coastal will host a conference call on Tuesday, December 4, 2001 at
10:00 a.m. (CST).  To participate in the conference call, phone 1-800-504-4496
and select access code # 4355312.

    The Company
    At September 30, 2001, Coastal had total assets of approximately
$3.0 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 $127.5 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 operates 50 branch offices in metropolitan Houston,
Austin, Corpus Christi, the Rio Grande Valley and small cities in the
southeast quadrant of Texas.  You can visit the Company's 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