BEAUFORT, SC -- (Marketwire) -- 02/07/13 -- Coastal Banking Company Inc. (OTCQB: CBCO), the holding company of CBC National Bank, today announced that the current auction of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A, which was scheduled to close on February 7, 2013, has been terminated due to recent favorable developments regarding the Company's dividend payment plans with respect to these securities. Specifically, the Company has requested regulatory approval to pay the current dividend due on February 15, 2013, deferred dividends which were due February 15, 2011 and May 15, 2011, and all accrued interest through February 15, 2013 on all of the deferred dividends. Based on communications with its primary regulator, the Company anticipates that it will pay such dividends on February 15, 2013. Because these positive developments were not reflected in the information given to potential auction participants, the placement agents for the auction have notified the company of their termination of the placement agreement relating to the current auction of the securities.
"We were encouraged when we recently obtained regulatory consent to pay all deferred interest on our Trust Preferred Securities," said Paul R. Garrigues, Chief Financial Officer. "As a result of that development, we have requested consent to pay our next current TARP Dividend plus two previously deferred dividend payments, and we have received indications that this request will be viewed favorably by our primary regulator." Mr. Garrigues stated that "we look forward to participating in a future TARP auction round as soon as possible."
About Coastal Banking Company Inc.
Coastal Banking Company Inc. is the $475 million-asset bank holding company of CBC National Bank, headquartered in Fernandina Beach, Fla., which provides a full range of consumer and business banking services through full-service banking offices in Beaufort, S.C., Fernandina Beach, Meigs, Ga., and Port Royal, S.C., and commercial loan production offices in Jacksonville, Fla., and Savannah, Ga. The company's residential mortgage banking division, headquartered in Atlanta, includes an Internet-based retail mortgage operation as well as a National Retail Group that has 10 lending offices in California, Florida, Georgia, Kansas, Maryland, New York and Ohio. The company's Small Business Administration lending division originates SBA loans primarily in Jacksonville and Vero Beach, Fla., Atlanta, and Beaufort. The company's common stock is publicly traded on the OTCQB Market under the symbol CBCO. For more information, please visit the company's website, www.coastalbanking.com.
FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISK FACTORS
This release contains forward-looking statements including statements relating to present or future trends or factors generally affecting the banking industry and specifically affecting Coastal's operations, markets and products. Without limiting the foregoing, the words "believes," "anticipates," "intends," "expects," or similar expressions are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected for many reasons, including, without limitation, changing events and trends that have influenced Coastal's assumptions, but that are beyond Coastal's control. These trends and events include (i) changes in the interest rate environment which may reduce margins, (ii) not achieving expected growth, (iii) less favorable than anticipated changes in the national and local business environments and securities markets, (iv) adverse changes in the regulatory requirements affecting Coastal, (v) greater competitive pressures among financial institutions in Coastal's markets, (vi) greater loan losses than historic levels, and (vii) difficulties in expanding our banking operations into a new geographic market.
All written or oral forward-looking statements are expressly qualified in their entirety by these cautionary statements. Coastal Banking Company Inc. undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
For More Information:
Michael G. Sanchez
Chief Executive Officer
Coastal Banking Company Inc.
Paul R. Garrigues
Chief Financial Officer
Coastal Banking Company Inc.
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