Long Island’s Gold Coast Bancorp Reports Higher Quarterly Net Income, Deposits and Loan Growth

ISLANDIA, N.Y.–(BUSINESS WIRE)–Gold Coast Bancorp, Inc. (OTC:GLDT) (“Gold Coast”), the holding company
of Gold Coast Bank, known as “Long Island’s Community Bank”sm,
(the”Bank”) today reported net income for the quarter ended March 31,
2019 of $640,000, or $0.16 per share compared with net income of
$531,000, or $0.14 per share for the quarter ended March 31, 2018.
Return on average assets and return on average equity was 0.46 percent
and 5.86 percent, respectively, in the first quarter of 2019, compared
to 0.43 percent and 5.14 percent in the 2018 first quarter.

Total assets increased $6 million to $563 million at March 31, 2019 from
$556 million at December 31, 2018, and $54 million, or 11 percent from
$509 million at March 31, 2018. The increase occurred while the bank
repaid $10 million of FHLB borrowings during the quarter.

Deposits at March 31, 2019 totaled $486 million, an increase of $8
million from $478 million at December 31, 2018. Total deposits increased
$62 million, or 15 percent from $424 million at March 31, 2018.
Non-interest bearing demand deposits were 20 percent and 21 percent,
respectively, of the total deposit portfolio at March 31, 2019 and
December 31, 2018, compared to 25 percent of the total deposit portfolio
at March 31, 2018. FHLB borrowings were $10 million at March 31, 2019
compared to $20 million at December 31, 2018 and $25 million at March
31, 2018, respectively.

Total loans outstanding at March 31, 2019 were $463 million, an increase
of $17 million, or 4 percent from $446 million at December 31, 2018 and
an increase of $72 million, or 18 percent from $391 million at March 31,
2018. Loan originations and draws were $25 million and $31 million,
respectively, in the first quarter of 2019 and the first quarter of
2018. The bank experienced loan repayments and pay downs of $9 million
in the first quarter of 2019 compared to $21 million in the first
quarter of 2018.

Asset quality continues to remain strong: The Bank had no nonperforming
loans at March 31, 2019 compared to non-performing loans of 0.02 percent
of gross loans at March 31, 2018. The allowance for loan losses was 0.96
percent of total loans at March 31, 2019.

The Bank remained well capitalized at March 31, 2019, with the following
regulatory capital ratios:

– Tier 1 Leverage Capital Ratio of 10.4 percent.

– Common Equity Tier 1 Risk-Based Capital and Tier 1 Risk-Based Capital
Ratios of 13.7 percent

– Total Risk-Based Capital Ratio of 14.7 percent

At March 31, 2019 book value per share was $11.44 per share, increasing
from $11.16 per share at December 31, 2018 and $10.70 per share at March
31, 2018.

Net interest income remained flat at $3.6 million in the first quarters
of both 2019 and 2018, largely due to a decrease in the net interest
margin to 2.61 percent in the first quarter of 2019 compared to 2.88
percent in the first quarter of 2018, which offset a 12 percent increase
in interest earning assets. The decrease in the Bank’s net interest
margin is largely due to a 62 basis point increase in the Bank’s cost of
funds, as a result of the increase in market interest rates. This
increase was partially offset by an increase of 31 basis points in the
yield on interest earning assets between the periods. The provision for
loan losses was $138,000 in the first quarter of 2019 compared to
$80,000 in the first quarter of 2018.

Non-interest income was $96,000 in the first quarter of 2019 compared to
$107,000 in the first quarter of 2018. Non-interest expense decreased
$217,000, or 7 percent in the first quarter of 2019 compared to the
first quarter of 2018, largely due to a decrease of $230,000 in the
Bank’s compensation expenses.

John C. Tsunis, Chairman and CEO stated, “We are pleased to report
continued strength in our asset quality with no non-performing loans as
of March 31, 2019. Book value continued to rise to $11.44 per share, a
9% increase year over year. Despite the margin compression, earnings
increased to $0.16 per share for the first quarter of 2019 from $0.14
per share for the first quarter of 2018, largely due to greater
operating efficiencies.

Despite reducing costs, we are introducing new programs that provide
services which were only available at money center banks. New technology
and initiatives, such as Relationship Rewards, a reward program we are
introducing in 2019 for our consumer and small business clients: Notifi
Events and Alert Services, allowing our customers to better manage
alerts and Secure Now, enhanced security for online banking are offered
by our lending officers and relationship managers at our branches,
complementing the excellent personal service that Gold Coast Bank, “Long
Island’s Community Bank” is known for.

Executing on these relationships in the business and not for profit
community, through our educational outreach programs with local
elementary schools,
teaching students about fiscal responsibility
and the wonders of compound interest rates, as well as our Gold Coast
Bank Service Appreciation Program acknowledging our police, firefighters
and other uniformed services
who support and make our communities a
safe and great place to live, has epitomized our community banking
commitment of “We are your neighbor and we have your back”!

This is what makes Gold Coast Bank different from the
nondescript, money center banks that don’t even know your name! We
continue to penetrate our existing markets, complementing our Golden real
estate loan portfolio by growing our deposit base via owner operated
real estate customers and operating businesses in our community,
generating deposits as well as non-interest income. As a result of these
efforts, in a most competitive banking environment, Gold Coast Bank
its growth, increasing assets by 11 percent over the past
year, and deposits by 15 percent.

We thank you for your support!”

About Gold Coast Bancorp, Inc.

Gold Coast Bancorp, Inc. is the holding company for Gold Coast Bank. Headquartered
in Islandia with additional branches located in Huntington, Setauket,
Farmingdale, Mineola, Southampton and Brooklyn, Gold Coast Bank is a New
York State chartered bank whose popularity and reputation stems from the
strong, long-term relationships cultivated among its large and diverse
customer base. The bank’s deposits are insured by the Federal Deposit
Insurance Corporation (FDIC). Gold Coast Bank prides itself on providing
businesses and individuals with quality lending and banking services.
Fulfilling a unique niche within our metropolitan New York trade area,
Gold Coast Bank delivers specialty lending capabilities in a variety of
areas that include real estate, equipment finance, and lines of credit
for privately owned businesses.

For more information about Gold Coast Bancorp, Inc. and Gold Coast Bank,
please visit www.gcbny.com.
Our press releases, and other material information published by the
Company and the Bank, may be found on our website under the tab
“Investor Relations”.

Forward-Looking Statements

This news release contains certain forward-looking statements which
are based on certain assumptions and describe future plans, strategies
and expectations of the Company. These forward-looking statements are
generally identified by use of the words “believe,” “expect,” “intend,”
“anticipate,” “estimate,” “project,” or similar expressions. The
Company’s ability to predict results or the actual effect of future
plans or strategies is inherently uncertain. Factors which could have a
material adverse effect on the operations of the Company and its
subsidiaries include, but are not limited to, changes in interest rates,
general economic conditions, legislative/regulatory changes, monetary
and fiscal policies of the U.S. Government, including policies of the
U.S. Treasury and the Federal Reserve Board, the quality or composition
of the loan or investment portfolios, demand for loan products, deposit
flows, competition, demand for financial services in the Company’s
market area and accounting principles and guidelines. These risks and
uncertainties should be considered in evaluating forward-looking
statements and undue reliance should not be placed on such statements.
The Company does not undertake, and specifically disclaims any
obligation, to publicly release the result of any revisions which may be
made to any forward-looking statements to reflect events or
circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events.


Gold Coast Bancorp, Inc.

Consolidated Balance Sheets
(dollars in thousands, except per share data)
(unaudited) (unaudited)
March 31, December 31, March 31,
2019 2018 2018
Total cash and cash equivalents $ 24,118 $ 38,377 $ 51,295
Securities available for sale, at fair value 62,116 61,171 55,303
Securities held to maturity 8,608 8,624 8,421
Loans 462,647 446,116 391,363
Allowance for loan losses   (4,455 )   (4,293 )   (3,956 )
Loans, net 458,192 441,823 387,407
Premises and equipment, net 5,083 1,494 1,674
Other assets   4,518     4,976     4,713  
Total Assets $ 562,635   $ 556,465   $ 508,813  
Non-interest bearing deposits $ 97,633 $ 99,284 $ 104,450
Interest bearing deposits   388,303     378,261     319,848  
Total deposits 485,936 477,545 424,298
Borrowings 10,000 20,000 25,000
Subordinated debt, net 13,325 13,319 13,304
Other liabilities   8,370     1,713     4,127  
Total Liabilities   517,631     512,577     466,729  
Total Shareholders’ Equity   45,004     43,888     42,084  
Total Liabilities and Shareholders’ Equity $ 562,635   $ 556,465   $ 508,813  
Selected Financial Data (unaudited)
Allowance for loan losses to total loans 0.96 % 0.96 % 1.01 %
Non-performing loans to total loans 0.00 % 0.00 % 0.02 %
Book value per share $ 11.44 $ 11.16 $ 10.70

Capital Ratios (unaudited) (1)

Tier 1 leverage ratio 10.40 % 10.58 % 11.07 %
Common equity Tier 1 risk-based capital ratio 13.67 % 14.05 % 15.34 %
Tier 1 risk-based capital ratio 13.67 % 14.05 % 15.34 %
Total risk-based capital ratio 14.71 % 15.09 % 16.43 %
(1) Regulatory capital ratios presented on bank-only basis
Consolidated Statements of Income (unaudited)
(dollars in thousands, except share and per share data)
For the three months ended
March 31, December 31, March 31,
2019 2018 2018
Interest income $ 5,728 $ 5,579 $ 4,797
Interest expense   2,145     1,880     1,204  
Net interest income 3,583 3,699 3,593
Provision for loan losses   138     88     80  
Net interest income after provision for loan losses 3,445 3,611 3,513
Non interest income 96 128 107
Non interest expense   2,704     2,781     2,921  
Income before income taxes 837 958 699
Income tax expense   197     226     168  
Net income $ 640   $ 732   $ 531  
Basic earnings per share $ 0.16 $ 0.19 $ 0.14
Diluted earnings per share $ 0.16 $ 0.19 $ 0.14
Weighted average common and equivalent
shares outstanding 3,932,494 3,931,634 3,931,634
Selected Financial Data (unaudited)
Return on average assets 0.46 % 0.52 % 0.43 %
Return on average equity 5.86 % 6.51 % 5.14 %
Net interest margin 2.61 % 2.72 % 2.88 %
Efficiency ratio 73.50 % 72.67 % 78.95 %


Catherine Califano, EVP-CFO
[email protected]


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