Coast Financial Holdings, Inc. Provides Clarification Regarding Construction-To-Permanent Residential Loan Program
January 22 2007 - 9:42PM
PR Newswire (US)
BRADENTON, Fla., Jan. 22 /PRNewswire-FirstCall/ -- Coast Financial
Holdings, Inc. (NASDAQ:CFHI), parent company of Coast Bank of
Florida, today clarified comments stemming from the Form 8-K filed
with the Securities and Exchange Commission on January 19, 2007,
which stated that that it has been advised of circumstances that
are reasonably likely to have a material adverse impact on the
Bank's construction-to-permanent residential loan program. - As
previously stated in the Form 8-K, only one builder has notified
the Bank that it is experiencing financial difficulty. - The
affected construction-to-permanent residential loans of the Bank
are with individual owners of properties who have separately
contracted with the builder to construct single-family dwellings
thereon. The Bank has signed loan agreements with the owners and
has collateral securing each of these loans. Under the loan
agreements, the owners are responsible for repaying the loans.
Although the Bank may seek to enforce payment on the loans in the
event of default, the Bank is also willing to work with each owner
on a case-by-case basis to help complete construction and repay the
debt. - The Bank is currently reviewing all of the current
construction sites, and has deemed this a high priority. - Coast
Financial Holdings, Inc. had total capital to risk-weighted assets
of 15.91% as of September 30, 2006, which was in excess of the
regulatory minimum benchmark of 10.00% for a well-capitalized
institution. - The Bank does not believe that the amount disbursed
on the loans, nor the amount committed on the loans is indicative
of potential losses, if any, that should occur. The undisbursed $44
million of the $110 million loan commitments will be disbursed as
construction progresses in accordance with the loan agreements.
"After receiving some inquiries, we felt it was important to
provide this additional information to our shareholders and
customers," said Brian Grimes, President and CEO. "We are currently
reviewing all of the borrowers' construction sites and have
implemented additional review and approval procedures of any
residential construction loans for the time being while we conduct
a review of the situation." "We would like our shareholders to know
that we are troubled by the situation but are working diligently
with the principals involved to get this situation resolved as soon
as possible," added James Toomey, Chairman of the Board. "We plan
to update shareholders regularly as the situation develops." About
the Company Coast Financial Holdings, Inc. through its banking
subsidiary, Coast Bank of Florida (http://www.coastfl.com/),
operates 20 full-service banking locations in Manatee, Pinellas,
Hillsborough and Pasco counties, Florida. Coast Bank of Florida is
a commercial bank that provides full-service banking operations to
its customers from its headquarters location and from branch
offices in Bradenton, Palmetto, Longboat Key, Seminole, Dunedin,
Clearwater, Kenneth City, Brandon, St. Petersburg, Lutz, Largo and
Pinellas Park. This press release and other statements to be made
by the Company contain certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act,
including but not limited to statements relating to projections and
estimates of earnings, revenues, cost-savings, expenses, or other
financial items; statements of management's plans, strategies, and
objectives for future operations, and management's expectations as
to future performance and operations and the time by which
objectives will be achieved; statements concerning proposed new
products and services; and statements regarding future economic,
industry, or market conditions or performance. Forward-looking
statements are typically identified by words or phrases such as
"believe," "expect," "anticipate," "project," and conditional verbs
such as "may," "could," and "would," and other similar expressions
or verbs. Such forward-looking statements reflect management's
current expectations, beliefs, estimates, and projections regarding
the Company, its industry and future events, and are based upon
certain assumptions made by management. These forward-looking
statements are not guarantees of future performance and necessarily
are subject to risks, uncertainties, and other factors (many of
which are outside the control of the Company) that could cause
actual results to differ materially from those anticipated. These
risks, uncertainties, and other factors include, among others:
changes in general economic or business conditions, either
nationally or in the State of Florida, changes in the interest rate
environment, the Company's ability to successfully open and operate
new branches and collect on delinquent loans, changes in the
regulatory environment, and other risks described in the Company's
Form 10-K for the fiscal year ended December 31, 2005, the
Company's Form 10-Q for the quarter ended September 30, 2006, and
as described from time to time by the Company in other reports
filed by it with the Securities and Exchange Commission. Any
forward-looking statement speaks only to the date on which the
statement is made, and the Company disclaims any obligation to
update any forward-looking statement, whether as a result of new
information, future events or otherwise. If the Company does update
any forward-looking statements, no inference should be drawn that
the Company will make additional updates with respect to that
statement or any other forward-looking statements. Contacts: Brian
F. Grimes, President and CEO 877-COASTFL DATASOURCE: Coast
Financial Holdings, Inc. CONTACT: Brian F. Grimes, President and
CEO of Coast Financial Holdings, Inc., +1-877-COASTFL, or Web site:
http://www.coastfl.com/
Copyright
Coast Financial (NASDAQ:CFHI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Coast Financial (NASDAQ:CFHI)
Historical Stock Chart
From Jul 2023 to Jul 2024