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| Coastal Banc ssb Successfully Resolves FDIC Tax Issue |
HOUSTON, March 9 /PRNewswire/ -- Coastal Banc ssb (Nasdaq: CBSA)
("Coastal") announced today that it has successfully resolved an outstanding
tax benefit issue with the Federal Deposit Insurance Corporation ("FDIC") as
Manager of the Federal Savings and Loan Insurance Corporation Resolution Fund
("FRF"). The resolution of the issue resulted in a one-time positive income
adjustment for Coastal of approximately $3.7 million or approximately 71 cents
per share and an ongoing quarterly benefit of $226,406 or approximately
4.3 cents per share calculated on approximately 5.2 million diluted shares
outstanding as of January 31, 1998. The one-time gain from this settlement
will give Coastal the opportunity to review and adjust certain balance sheet
accounts during the first quarter of 1998 which may result in less than all
such one-time gain being reflected in net income.
The tax issue dealt with the deductibility of items accruing to the FDIC
for certain tax benefits and arose out of differing interpretations of the Tax
Benefit Agreement dated March 31, 1994 which was developed in conjunction with
the early termination of Coastal's 1988 Southwest Plan Agreement.
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.
SOURCE Coastal Bancorp, Inc.
back to topRelated links:
Manuel J. Mehos, CEO, or Catherine N. Wylie,
CFO, both of Coastal Banc ssb, 713-435-5000, or fax, 713-435-5106
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
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