BEAUFORT, S.C., April 29, 2013 (GLOBE NEWSWIRE) -- Coastal Banking Company Inc. (OTCQB:CBCO), the holding company of CBC National Bank, which operates branches in Beaufort and Port Royal, S.C., Fernandina Beach, Fla., and Meigs, Ga., today reported net income of $1.1 million, or $0.35 in diluted earnings per common share, for the quarter ended March 31, 2013. This compares to net income of $299,595, or $0.06 in diluted earnings per common share, in the first quarter of 2012. For the full text of the earnings release and complete unaudited quarterly financial results, please visit the company's website at www.coastalbanking.com/pdf/cbco_1Q13_earnings_release.pdf
In addition to the first quarter financials, the company also announced several other key events that occurred in the first quarter of 2013.
TARP Auction
On March 11, 2013, the U.S. Department of Treasury sold all 9,950 shares of the company's Fixed Rate Cumulative Perpetual Preferred Stock, Series A ("TARP Preferred") to several private investors through an auction at $955.10 per share plus accrued dividends of $3.61 per share for total sales proceeds of $9,539,165. During the 4 years and 3 months that Treasury held this investment in the Company's TARP Preferred, Treasury received a total of $1,497,118 in dividends, interest and proceeds on the partial sale of the common stock warrant. As a result, the U.S. Treasury recovered its entire initial investment of $9.95 million in the Company plus an additional return of $1,086,283.
"We were delighted that our participation in the TARP Capital Purchase Program provided the US Taxpayer with more than a $1 million return on its investment in the Company," said Michael G. Sanchez, chief executive officer.
Warrant Repurchase
In connection with the original issuance of the TARP Preferred stock in Dec. 2008, the Company issued a warrant to the U.S. Treasury to purchase 205,579 shares of common stock at a price of $7.26 per share. On Jan. 17, 2013 the Company obtained a non-objection from the Federal Reserve Bank of Richmond to negotiate with the U.S. Treasury for a partial repurchase of these warrant shares. On April 10, 2013, the company repurchased 60,000 warrant shares from the U.S. Treasury at a price of $1.65 per share for an aggregate purchase price of $99,000.
Bank Dividend Declaration
On March 27, 2013 the Board of Directors of the Company's wholly owned banking subsidiary, CBC National Bank, declared a dividend in the amount of $500,000, payable to the Company on May 15, 2013. Acceptance of this dividend by the Company is subject to consent or non-objection by the Federal Reserve Bank of Richmond which was requested on April 15, 2013 but has not been received as of April 28, 2013.
Preferred Stock Dividend Declaration
On March 27, 2013 the Board of Directors of the Company declared a dividend of $38.427083 per share of Series A Preferred, payable on May 15, 2013 to shareholders of record on May 5, 2013. The dividend declared represents the $12.50 per share dividend due on May 15, 2013, $25.00 per share for two of the six previously deferred dividends plus $0.927083 per share for interest accrued at the rate of 5% on all six deferred dividends from Feb. 16, 2013 through the dividend payment date. Payment of this dividend as declared is subject to consent or non-objection by the Federal Reserve Bank of Richmond which was requested on April 15, 2013 but has not been received as of April 28, 2013.
Annual Shareholders Meeting
The Company's annual shareholders meeting is scheduled for May 22, 2013, at The Hilton Garden Inn, Beaufort, South Carolina and a complete copy of the Company's proxy statement is available at www.coastalbanking.com/pdf/proxystatement.pdf