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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 24, 1996
FIRST COASTAL CORPORATION
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(Exact name of registrant as specified in its charter)
DELAWARE 0-14087 06-1177661
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation Number) Identification No.)
36 THOMAS DRIVE, WESTBROOK, MAINE 04092
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (207) 774-5000
Not applicable
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
First Coastal Corporation (the "Company") announced that effective as of July
24, 1996 the Company had completed its recapitalization plan, whereby the
Company repaid in full its obligation to the Federal Deposit Insurance
Corporation in the amount of $9.75 million ($9.0 million loan principal amount
plus accrued interest), stemming from the 1991 failure of Suffield Bank. The
funds utilized to repay the obligation came from (i) the sale of 750,000 shares
of the Company's common stock at $5.00 per share by means of a registered public
offering; (ii) a dividend of $3.2 million from the Company's subsidiary, Coastal
Savings Bank (the "Bank") to First Coastal; and (iii) the borrowing of $4.0
million from a group of four Maine savings banks, secured by the pledge by the
Company of 100% of the outstanding common stock of the Bank.
The stock offering resulted in a 125% increase in the number of outstanding
shares, to 1,357,861. The common stock commenced trading on Thursday, July 25,
1996 on The Nasdaq SmallCap Market under the symbol "FCME."
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits
99a. Press Release of the Company and the Bank, dated July 24, 1996.
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SIGNATURES
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 hereunto duly authorized.
FIRST COASTAL CORPORATION
(Registrant)
/s/Gregory T. Caswell
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Name: Gregory T. Caswell
Title: President and Chief Executive Officer
Date: August 1, 1996
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EXHIBIT INDEX
EXHIBIT NO. IDENTITY OF EXHIBIT
99a. Press Release of the Company and the Bank, dated July 24, 1996.
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EXHIBIT 99A
JULY 24, 1996 GREGORY T. CASWELL
PRESIDENT AND CHIEF EXECUTIVE OFFICER
DENNIS D. BYRD
TREASURER
(207)774-5000
FOR IMMEDIATE RELEASE
FIRST COASTAL CORPORATION ANNOUNCES SUCCESSFUL COMPLETION OF
RECAPITALIZATION AND REPAYMENT IN FULL OF FDIC DEBT
WESTBROOK, ME---First Coastal Corporation, the parent company of Coastal
Savings Bank, announced today the successful completion of its recapitalization
plan, whereby First Coastal has repaid in full its obligation to the Federal
Deposit Insurance Corporation in the amount of $9.75 million ($9.0 million loan
principal amount plus accrued interest), stemming from the 1991 failure of
Suffield Bank. The funds utilized to repay the obligation came from (i) the
sale of 750,000 shares of First Coastal's common stock at $5.00 per share by
means of an offering involving a rights offering to existing shareholders,
purchases by standby investors and a community offering; (ii) a dividend of $3.2
million from Coastal Savings Bank to First Coastal; and (iii) the borrowing of
$4.0 million from a group of four Maine savings banks.
Gregory T. Caswell, President and Chief Executive Officer of First Coastal,
said "The closing of the recapitalization and the payoff of the FDIC obligation
brings to an end an extremely challenging period during which First Coastal has
successfully addressed problems largely the result of its former affiliation
with Suffield Bank and the late 1980's collapse of the New England real estate
market. The closing of this final chapter relating to our past problems is made
especially gratifying by the fact that during the early 1990's the Company faced
significant financial risk from two different sources, risk factors many felt
could not be successfully addressed. The financial recovery of Coastal Savings
Bank and the payoff of the FDIC obligation represent the culmination of a
tremendous effort by an exceptionally dedicated group of people. We are
gratified by the strong ongoing support we have received from our employees, our
shareholders, the Maine Bureau of Banking, the FDIC and the Federal Reserve, and
are pleased with the recent support we have received from our shareholders and
the investor community with regard to our stock offering."
Caswell further added, "Though the completion of the recapitalization
represents a significant milestone for First Coastal, and one that is highly
visible to the public, we feel the more compelling story represents the
continued financial progress of Coastal Savings Bank and its reemergence as a
significant factor in its markets. The same outstanding staff that has brought
First Coastal so far forward from such a disadvantaged position continues to
direct this same focus and dedication towards the development of a community
bank with products and a level of service that are highly desirable to Maine
people. Our advancement in these areas has become quite evident over the past
year, evidenced by significant increases in loan originations and deposit
account openings."
The stock offering, which closed today as part of the recapitalization,
resulted in a 125% increase in the number of outstanding shares, to 1,357,861.
The stock is expected to commence trading on Thursday, July 25, on The Nasdaq
SmallCap Market under the symbol "FCME". First Albany Corporation acted as
placement agent in connection with the offering and as financial advisor to
First Coastal for the recapitalization.
First Coastal Corporation is a Maine-based $137 million bank holding
company with Coastal Savings Bank, an FDIC insured, Maine stated-chartered
savings bank as its principal subsidiary. Coastal Savings Bank has seven
banking offices located in Brunswick (2), Freeport, Kennebunk, Saco, Topsham and
Westbrook.
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