U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(MARK ONE) FORM 10-QSB
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
---------- OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period ended September 30, 2000
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
----------- THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the Transition Period from _________to_________
Commission File No. 333-86371
COASTAL BANKING COMPANY, INC.
(Exact name of registrant as specified in its charter)
South Carolina 57-1076099
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
36 Sea Island Parkway
Beaufort, SC 29902
(Address of principal executive
offices, including zip code)
(843) 522-1228
(Registrant's telephone number, including area code)
------------------------------------------------
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
-- --
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the date of this filing.
948,281 shares of common stock, $.01 par value
PAGE 1 OF 15
EXHIBIT INDEX ON PAGE 2
<PAGE>
COASTAL BANKING COMPANY, INC.
<TABLE>
<CAPTION>
Index
PART I. FINANCIAL INFORMATION Page No.
-----------------------------
Item 1. Financial Statements (Unaudited)
<S> <C>
Condensed Consolidated Balance Sheets - September 30, 2000 and December 31, 1999.........................3
Condensed Consolidated Statements of Income - For the nine months ended September 30, 2000
and three months ended September 30, 2000..............................................................4
Condensed Consolidated Statement of Changes in Shareholders' Equity and Comprehensive Income -
Nine months ended September 30, 2000...................................................................5
Condensed Consolidated Statement of Cash Flows - Nine months ended September 30, 2000....................6
Notes to Condensed Consolidated Financial Statements.....................................................7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations..................8-13
PART II. OTHER INFORMATION
--------------------------
Item 6. Exhibits and Reports on Form 8-K.........................................................................14
(a) Exhibits............................................................................................14
(b) Reports on Form 8-K.................................................................................14
</TABLE>
2
<PAGE>
COASTAL BANKING COMPANY, INC.
Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
------------- ------------
(Unaudited)
Assets
Cash and cash equivalents:
<S> <C> <C>
Cash and due from banks $ 265,607 $ 989,172
Federal funds sold 5,040,000 --
------------ ------------
Total 5,305,607 989,172
------------ ------------
Securities available-for-sale 481,680 6,527,012
Loans receivable 9,660,217 --
Less allowance for loan losses (106,700) --
------------ ------------
Loans, net 9,553,517 --
Accrued interest receivable 60,280 25,236
Premises and equipment, net 2,457,476 972,042
Other assets 523,518 14,121
------------ ------------
Total assets $ 18,382,078 $ 8,527,583
============ ============
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest-bearing transaction accounts $ 663,479 $ --
Interest-bearing transaction accounts 9,216,195 --
------------ ------------
Total deposits 9,879,674 --
Accrued interest payable 58,150 --
Other liabilities 21,644 100
------------ ------------
Total liabilities 9,959,468 100
------------ ------------
Shareholders' Equity
Preferred stock, $.01par value; 10,000,000 shares
authorized and unissued -- --
Common stock, $.01 par value; 10,000,000 shares
authorized, 948,281 shares issued and outstanding 9,483 9,483
Capital surplus 8,724,366 8,778,690
Retained earnings (deficit) (310,549) (233,280)
Accumulated other comprehensive income (loss) (690) (27,410)
------------ ------------
Total shareholders' equity 8,422,610 8,527,483
------------ ------------
Total liabilities and shareholders' equity $ 18,382,078 $ 8,527,583
============ ============
</TABLE>
See notes to condensed consolidated financial statements.
3
<PAGE>
COASTAL BANKING COMPANY, INC.
Condensed Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Three Months
Ended Ended
September 30, September 30,
2000 2000
------------- ---------------
Interest income
<S> <C> <C>
Loans, including fees $ 257,769 $ 191,963
Securities, taxable 137,268 9,144
Federal funds sold 146,618 68,709
------------- ---------------
Total income 541,655 269,816
------------- ---------------
Interest expense
Deposit accounts 88,498 78,476
Other interest expense 3,497 --
------------- ---------------
Total 91,995 78,476
------------- ---------------
Net interest income 449,660 191,340
Provision for loan losses 106,700 68,000
------------- ---------------
Net interest income after provision for loan losses 342,960 123,340
------------- ---------------
Other income
Service charges on deposit accounts 9,905 8,654
Mortgage loan origination fees 22,768 22,768
Other charges, commissions, and fees 5,758 3,890
------------- ---------------
Total 38,431 35,312
------------- ---------------
Other expense
Salaries and benefits 350,120 147,455
Occupancy expense 42,737 23,010
Furniture and fixture expense 12,850 9,794
Other operating expenses 216,780 97,372
------------- ---------------
Total 622,487 277,631
------------- ---------------
Net income (loss) before income taxes (241,096) (118,979)
Income tax expense (benefit) (163,827) (40,453)
------------- ---------------
Net income (loss) $ (77,269) $ (78,526)
============ ============
Earnings (loss) per share:
Average common shares outstanding 948,281 948,281
Net income (loss) $ (0.08) $ (0.08)
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE>
COASTAL BANKING COMPANY, INC.
<TABLE>
<CAPTION>
Condensed Consolidated Statement of Shareholders' Equity and Comprehensive Income
For the Nine months Ended September 30, 2000
(Unaudited)
Accumulated
Common Stock Retained Other
------------------------------------- Earnings Comprehensive
Shares Amount Surplus (Deficit) Income Total
-------- ------- -------- ---------- ------------- ------------
Balance,
<S> <C> <C> <C> <C> <C> <C>
December 31, 1999 948,281 $ 9,483 $ 8,778,690 $ (233,280) $ (27,410) $ 8,527,483
Costs associated with
the issuance of stock (54,324) (54,324)
Net income (loss) for
the period (77,269) (77,269)
Other comprehensive
income, net of tax 26,720 26,720
------
Comprehensive
income (50,549)
------- --------- ------------- ----------- ------------ --------
Balance,
September 30, 2000 948,281 $ 9,483 $ 8,724,366 $ (310,549) $ (690) $ 8,422,610
======= ========= ============ =========== ============ ===========
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE>
COASTAL BANKING COMPANY, INC.
Condensed Consolidated Statement of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months
Ended
September 30,
2000
------------
Cash flows from operating activities:
<S> <C>
Net income (loss) $ (77,269)
Adjustments to reconcile net income (loss) to net cash (used) provided by
operating activities:
Provision for loan loss 106,700
Amortization less accretion on investments (116,522)
Depreciation and amortization 33,760
(Increase) decrease in interest receivable (35,044)
(Increase) decrease on other assets (439,495)
Increase (decrease) in interest payable 58,150
Increase (decrease) in other liabilities 21,544
-----------
Net cash (used) provided by operating activities (448,176)
-----------
Cash flows from investing activities:
Purchases of securities available-for-sale (13,891,328)
Maturities of securities available-for-sale 20,010,000
Net increase in loans to customers (9,660,217)
Purchases of premises and equipment (1,519,194)
-----------
Net cash used by investing activities (5,060,739)
-----------
Cash flows from financing activities:
Net increase in demand deposits, interest-bearing transaction accounts
and savings accounts 3,546,016
Net increase in certificates of deposit and other time deposits 6,333,658
Stock issuance costs (54,324)
-----------
Net cash provided by financing activities 9,825,350
-----------
Net increase in cash and cash equivalents 4,316,435
Cash and cash equivalents, beginning of period 989,172
-----------
Cash and cash equivalents, end of period $ 5,305,607
===========
Cash paid during the period for:
Income taxes $ --
Interest $ 33,845
</TABLE>
See notes to condensed consolidated financial statements.
6
<PAGE>
COASTAL BANKING COMPANY, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1 - Basis of Presentation
------------------------------
The accompanying financial statements have been prepared in accordance with the
requirements for interim financial statements and, accordingly, they are
condensed and omit disclosures which would substantially duplicate those
contained in the most recent annual report to shareholders on Form 10K. The
financial statements as of September 30, 2000 and for the interim period ended
September 30, 2000 are unaudited and, in the opinion of management, include all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation. The financial information as of December 31, 1999 has been
derived from the audited financial statements as of that date. For further
information, refer to the financial statements and the notes included in Coastal
Banking Company, Inc.'s 1999 Form 10K.
Note 2 - Comprehensive Income
-----------------------------
The following table sets forth the amounts of other comprehensive income
included in equity along with the related tax effect for the three and nine
month periods ended September 30, 2000:
<TABLE>
<CAPTION>
Pre-tax (Expense) Net-of-tax
Amount Benefit Amount
---------- ----------- ----------
<S> <C> <C> <C>
For the nine months ended September 30, 2000:
Unrealized gains (losses) on available-for-sale securities:
Net unrealized holding gains (losses) on securities $ 40,485 $ (13,765) $ 26,720
available-for-sale arising in 2000
Plus: reclassification adjustment for gains (losses)
realized in net income -- -- --
---------- ----------- ----------
Net unrealized gains (losses) on securities 40,485 (13,765) 26,720
---------- ----------- ----------
Other comprehensive income $ 40,485 $ (13,765) $ 26,720
=========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
Pre-tax (Expense) Net-of-tax
Amount Benefit Amount
---------- ----------- ----------
<S> <C> <C> <C>
For the three months ended September 30, 2000:
Unrealized gains (losses) on available-for-sale securities:
Net unrealized holding gains (losses) on securities $ (1,503) $ 511 $ (992)
available-for-sale arising in 2000
Plus: reclassification adjustment for gains (losses)
realized in net income -- -- --
---------- ----------- ----------
Net unrealized gains (losses) on securities (1,503) 511 (992)
---------- ----------- ----------
Other comprehensive income $ (1,503) $ 511 $ (992)
=========== =========== ==========
</TABLE>
Accumulated other comprehensive income consists solely of the unrealized gain
(loss) on securities available-for-sale, net of the deferred tax effects.
7
<PAGE>
COASTAL BANKING COMPANY, INC.
Item 2. Management's Discussion and Analysis of Financial Condition
-------------------------------------------------------------------
The following is a discussion of the Company's financial condition as of
September 30, 2000 compared to December 31, 1999, and the results of operations
for the three and nine months ended September 30, 2000. It should be understood
that the discussion is based on the Bank's opening for business on May 10, 2000.
These comments should be read in conjunction with the Company's condensed
financial statements and accompanying footnotes appearing in this report. This
report contains "forward-looking statements" relating to, without limitation,
future economic performance, plans and objectives of management for future
operations, and projections of revenues and other financial items that are based
on the beliefs of the Company's management, as well as assumptions made by and
information currently available to the Company's management. The words "expect",
"estimate", "anticipate", and "believe", as well as similar expressions, are
intended to identify forward-looking statements. The Company's actual results
may differ materially from the results discussed in the forward-looking
statements, and the Company's operating performance each quarter is subject to
various risks and uncertainties that are discussed in detail in the Company's
filings with the Securities and Exchange Commission.
Results of Operations
---------------------
Net Interest Income
-------------------
Net interest income for the nine months ended September 30, 2000 was $449,660.
Interest income for the nine months ended September 30, 2000 totaled $541,655.
Of this total, $257,769 was derived from interest and fees on loans. Interest
derived from investment securities and federal funds sold during the period
totaled $137,268 and $146,618, respectively. Funds from the stock offering were
invested in securities and federal funds until the Bank opened for business on
May 10, 2000. Interest income was offset slightly by interest expense of $91,995
for the nine months ended September 30, 2000.
Net interest income for the three months ended September 30, 2000 was $191,340.
Interest income for the period totaled $269,816. The majority of this was from
interest on loans, including fees, which totaled $191,963 for the three months
ended September 30, 2000. Interest on federal funds sold totaled $68,709 for the
three months ended September 30, 2000. Excess funds from the stock offering were
invested in federal funds until necessary for loan demand. Interest income was
partially offset by interest expense of $78,476 for the three months ended
September 30, 2000.
Provision and Allowance for Loan Losses
---------------------------------------
The provision for loan losses is the charge to operating earnings that
management believes is necessary to maintain the allowance for possible loan
losses at an adequate level. For the nine months ended September 30, 2000, the
provision charged to expense was $106,700. For the three months ended September
30, 2000, the provision charged to expense was $68,000. The allowance for loan
losses is 1.10% of total loans at September 30, 2000. There are risks inherent
in making all loans, including risks with respect to the period of time over
which loans may be repaid, risks resulting from changes in economic and industry
conditions, risks inherent in dealing with individual borrowers, and, in the
case of a collateralized loan, risks resulting from uncertainties about the
future value of the collateral. The Company is currently funding the allowances
for loan losses at approximately 1% of total loans. The Company anticipates
maintaining an allowance for loan losses based on, among other things,
historical experience, an evaluation of economic conditions, and regular reviews
of delinquencies and loan portfolio quality. Management's judgment about the
adequacy of the allowance is based upon a number of assumptions about future
events, which it believes to be reasonable, but which may not prove to be
accurate. Thus, there is a risk that charge-offs in future periods could exceed
the allowance for loan losses or that substantial additional increases in the
allowance for loan losses could be required. Additions to the allowance for loan
losses would result in a decrease of the Company's net income and, possibly, its
capital.
8
<PAGE>
COASTAL BANKING COMPANY, INC.
Item 2. Management's Discussion and Analysis of Financial Condition - continued
-------------------------------------------------------------------
Noninterest Income
------------------
Noninterest income for the nine months ended September 30, 2000 totaled $38,431.
This amount was comprised primarily of fees from the origination of mortgage
loans which totaled $22,768. Income from service charges on deposit accounts
totaled $9,905 for the period.
Noninterest income for the three months ended September 30, 2000 totaled
$35,312. Mortgage loan origination fees totaled $22,768 for the three months
ended September 30, 2000. Service charges on deposit accounts totaled $8,654.
Noninterest Expense
-------------------
Noninterest expense for the nine months ended September 30, 2000 was $622,487.
This amount was comprised primarily of salaries and benefits totaling $350,120.
The Company employed its three senior officers for the entire year and began
hiring additional employees to staff the Bank in April. Other operating expenses
were also a significant amount of other operating expenses, totaling $216,780
for the nine months ended September 30, 2000. This amount includes expenses
associated with the organization and formation of the Bank, including
professional fees.
Noninterest expense for the three months ended September 30, 2000 totaled
$277,631. This was primarily attributable to salaries and benefits, which
totaled $147,455 for the period. In addition, other operating expenses totaled
$97,372 for the three months ended September 30, 2000. This includes expenses
associated with the opening of the Bank, including advertising costs, which
totaled $40,694.
Income Taxes
------------
An income tax benefit of $163,827 was recorded during the nine months ended
September 30, 2000. The majority of this benefit was recorded at June 30, 2000
after the Bank opened for business on May 10, 2000. A portion of the benefit was
based on the net loss before taxes for the period September 29, 1998 (inception)
to May 10, 2000, the date of the Bank's opening. The benefit was based on an
effective tax rate of 34.5%. This benefit will be reversed as the Bank becomes
profitable.
The income tax benefit recorded for the three months ended September 30, 2000
totaled $40,453. This represents an effective tax rate of 34.0%.
Net Income (Loss)
-----------------
The combination of the above factors resulted in a net loss for the nine months
ended September 30, 2000 of $77,269. As discussed in income taxes, an income tax
benefit was recorded at June 30, 2000. The income tax benefit for the nine
months ended September 30, 2000 included a benefit based on the net loss since
the Company's inception on September 29, 1998 through May 10, 2000, the date of
the Bank's opening. The net loss before taxes for the nine months ended
September 30, 2000 was $241,096. The net loss is primarily a result of expenses
incurred during the organizational period, including salaries and other
operating expenses.
For the three months ended September 30, 2000, the Company incurred a net loss
of $78,526. The net loss before income taxes for the three months ended
September 30, 2000 was $118,979. The net loss was partially offset by the income
tax benefit of $40,453 for the three months ended September 30, 2000.
9
<PAGE>
COASTAL BANKING COMPANY, INC.
Item 2. Management's Discussion and Analysis of Financial Condition - continued
-------------------------------------------------------------------
Assets and Liabilities
----------------------
As of September 30, 2000, total assets were $18,382,078. Loans comprised the
largest amount of total assets, which totaled $9,660,217 on September 30, 2000.
Federal funds sold totaled $5,040,000 at September 30, 2000. This amount
represents the use of proceeds from the stock offering which are being invested
in federal funds until funds are invested in loans. A portion of the proceeds
was also used to purchase premises and equipment which net of depreciation,
totaled $2,457,476 at September 30, 2000. Total deposits at September 30, 2000
were $9,879,674.
Securities Available-for-Sale
-----------------------------
Securities available-for-sale totaled $481,680 at September 30, 2000. This
consisted of a U.S. Government Agency bond.
Premises and Equipment
----------------------
Premises and equipment, net of depreciation, totaled $2,457,476 at September 30,
2000. The increase of $1,485,434 from the December 31, 1999 amount of $972,042
relates to the renovation of the corporate headquarters and the purchase of
furniture and equipment for the headquarters.
Loans
-----
Gross loans totaled $9,660,217 at September 30, 2000. Loans were comprised
primarily of real estate mortgage loans, which totaled $4,920,336. Balance
within the major loans receivable categories as of September 30, 2000 is as
follows:
September 30,
2000
--------------
Real estate - construction $ 291,295
Real estate - mortgage 4,920,336
Commercial and industrial 3,809,064
Consumer and other 639,522
--------------
$ 9,660,217
==============
10
<PAGE>
COASTAL BANKING COMPANY, INC.
Item 2. Management's Discussion and Analysis of Financial Condition - continued
-------------------------------------------------------------------
Risk Elements in the Loan Portfolio
-----------------------------------
The Bank commenced operations on May 10, 2000. There were no loans considered to
be a risk element in the loan portfolio at September 30, 2000.
Activity in the Allowance for Loan Losses is as follows:
September 30,
2000
-------------
Balance, January 1, $ --
Provision for loan losses for the period 106,700
Net loans (charged-off) recovered for the period --
-------------
Balance, end of period $ 106,700
=============
Gross loans outstanding, end of period $9,660,217
Allowance for loan losses to loans outstanding 1.10%
Deposits
--------
Total deposits at September 30, 2000 were $9,879,674. Certificates of deposit,
which totaled $6,333,658, comprised the largest amount of deposits. Certificates
of deposit $100,000 and over totaled $2,431,687 at September 30, 2000 and other
time deposits totaled $3,901,971 at September 30, 2000.
Balances within the major deposit categories as of September 30, 2000 are as
follows:
September 30,
2000
-------------
Noninterest-bearing demand deposits $ 663,479
Interest-bearing demand deposits 1,035,142
Savings deposits 1,847,395
Certificates of deposit $100,000 and over 2,431,687
Other time deposits 3,901,971
-------------
$ 9,879,674
=============
Liquidity
---------
Liquidity needs are met by the Company through scheduled maturities of loans and
investments on the asset side and through pricing policies on the liability side
for interest-bearing deposit accounts. The level of liquidity is measured by the
loan-to-total borrowed funds ratio, which was at 97.78% at September 30, 2000.
The Company also has obtained lines of credit available with correspondent banks
to purchase federal funds for periods from one to fourteen days. At September
30, 2000, unused lines of credit totaled $1,500,000.
11
<PAGE>
COASTAL BANKING COMPANY, INC.
Item 2. Management's Discussion and Analysis of Financial Condition - continued
-------------------------------------------------------------------
Capital Resources
-----------------
Total shareholders' equity decreased from $8,527,483 at December 31, 1999 to
$8,422,610 at September 30, 2000. This decrease was primarily attributable to
the net loss for the period of $77,269 and to costs relating to the issuance of
stock totaling $54,324, which was charged against capital surplus. This charge
was partially offset by the decrease in unrealized loss on securities
available-for-sale of $26,720.
Bank holding companies, such as the Company, and their banking subsidiaries are
required by banking regulators to meet certain minimum levels of capital
adequacy, which are expressed in the form of certain ratios. Capital is
separated into Tier 1 capital (essentially common shareholders' equity less
intangible assets) and Tier 2 capital (essentially the allowance for loan losses
limited to 1.25% of risk-weighted assets). The first two ratios, which are based
on the degree of credit risk in the Company's assets, provide the weighting of
assets based on assigned risk factors and include off-balance sheet items such
as loan commitments and stand-by letters of credit. The ratio of Tier 1 capital
to risk-weighted assets must be at least 4.0% and the ratio of total capital
(Tier 1 capital plus Tier 2 capital) to risk-weighted assets must be at least
8.0%. The capital leverage ratio supplements the risk-based capital guidelines.
Banks and bank holding companies are required to maintain a minimum ratio of
Tier 1 capital to adjusted quarterly average total assets of 3.0%.
The following table summarizes the Company's risk-based capital at September 30,
2000:
September 30,
2000
-------------
Shareholders' equity $ 8,422,610
Less: intangibles --
-------------
Tier 1 capital 8,422,610
Plus: allowance for loan losses (1) 106,700
-------------
Total capital $ 8,529,310
=============
Risk-weighted assets $ 12,103,168
=============
Risk based capital ratios
Tier 1 capital (to risk-weighted assets) 69.59%
Total capital (to risk-weighted assets) 70.47%
Tier 1 capital (to total average assets) 57.70%
(1) limited to 1.25% of risk-weighted assets
Management believes that capital should be adequate for the next twelve months.
12
<PAGE>
COASTAL BANKING COMPANY, INC.
Item 2. Management's Discussion and Analysis of Financial Condition - continued
-------------------------------------------------------------------
Regulatory Matters
------------------
On November 4, 1999, the U.S. Senate and House of Representatives each passed
the Gramm-Leach-Bliley Act, previously known as the Financial Services
Modernization Act of 1999. The Act was signed into law by President Clinton on
November 12, 1999. Among other things, the Act repeals the restrictions on banks
affiliating with securities firms contained in sections 20 and 32 of the
Glass-Steagall Act. The Act also permits bank holding companies to engage in a
statutorily provided list of financial activities, including insurance and
securities underwriting and agency activities, merchant banking, and insurance
company portfolio investment activities. The Act also authorizes activities that
are "complementary" to financial activities.
The Act contains a number of provisions specifically applicable to federal
thrifts. For example, the Act repeals the Savings Association Insurance Fund
special reserve; modernizes the Federal Home Loan Bank System; provides
regulatory relief for community banks with satisfactory or outstanding Community
Reinvestment Act ratings in the form of less frequent compliance examinations;
and creates privacy provisions that address consumer needs without disrupting
necessary information sharing between community banks and their financial
services partners.
The Act is intended to grant to community banks certain powers as a matter of
right that larger institutions have accumulated on an ad hoc basis.
Nevertheless, the Act may have the result of increasing the amount of
competition that we face from larger institutions and other types of companies.
In fact, it is not possible to predict the full effect that the Act will have on
us. From time to time other changes are proposed to laws affecting the banking
industry, and these changes could have a material effect on our business and
prospects. We cannot predict the nature or the extent of the effect on our
business and earnings of fiscal or monetary policies, economic controls, or new
federal or state legislation.
From time to time, various bills are introduced in the United States Congress
and various regulations are proposed by appropriate agencies with respect to the
regulation of financial institutions. Certain of these proposals, if adopted,
could significantly change the regulation of banks and the financial services
industry. The Company cannot predict whether any of these proposals will be
adopted or, if adopted, how these proposals would affect the Company.
13
<PAGE>
COASTAL BANKING COMPANY, INC.
PART II - OTHER INFORMATION
<TABLE>
<CAPTION>
Item 6. Exhibits and Reports on Form 8-K
----------------------------------------
<S> <C> <C>
(a) Exhibits
27.1 Financial Data Schedule
(b) Reports on Form 8-K - No reports on Form 8-K were filed during the quarter ended September 30,
2000.
Items 1, 2, 3, 4, and 5 are not applicable.
</TABLE>
14
<PAGE>
COASTAL BANKING COMPANY, INC.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
<TABLE>
<CAPTION>
<S> <C>
By: /s/ RANDOLPH C. KOHN
--------------------------------------------
Randolph C. Kohn
President & Chief Executive Officer
Date: November 8, 2000 By: /s/ CHARLIE T. LOVERING, JR.
--------------------------------------------
Charlie T. Lovering, Jr.
Chief Financial Officer
</TABLE>
15
