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UNITED STATES
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) March 3, 2000
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COASTAL FINANCIAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 0-19684 57-0925911
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(State or other Juris- (Commission (IRS Employer
diction of incorporation File Number) Identification No.)
or organization)
2619 Oak Street, Myrtle Beach, South Carolina 29577
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(Address of principal executive offices)
(843) 448-5151
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS.
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On March 3, 2000, Coastal Federal Savings Bank, Myrtle Beach, South
Carolina, the wholly-owned subsidiary of the Registrant, and First Federal
Savings & Loan Association of Cheraw, Cheraw, South Carolina, the wholly-owned
subsidiary of Great Pee Dee Bancorp, Inc., completed the sale of Coastal
Federal's branch office located in Florence, South Carolina. Coastal Federal
transferred approximately $25 million in deposits and $11 million in loans
through the branch sale.
A copy of the Registrant's press release announcing the sale of the branch
office is attached as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND OTHER EXHIBITS.
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Exhibit 99.1 Press Release dated March 3, 2000
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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.
Dated: March 13, 2000 By: /s/ Michael C. Gerald
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Michael C. Gerald
President and Chief Executive Officer
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EXHIBIT 99.1 PRESS RELEASE
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COASTAL FEDERAL SAVINGS BANK AND FIRST FEDERAL OF CHERAW
ANNOUNCE COMPLETION OF SALE OF FLORENCE OFFICE
MYRTLE BEACH, S.C., March 6, 2000 -- Coastal Federal Savings Bank, a subsidiary
of Coastal Financial Corporation (Nasdaq: CFCP) and First Federal Savings & Loan
Association of Cheraw, a subsidiary of Great Pee Dee Bancorp, Inc. (Nasdaq:
PEDE), today announced the closing of the purchase by First Federal of Cheraw of
the Florence, South Carolina branch office from Coastal Federal Savings Bank.
Coastal Federal transferred approximately $25 million in deposits to First
Federal and sold approximately $11 million in loans in conjunction with this
transaction. Coastal Federal expects to record a pretax gain of approximately
$1.8 million related to this transaction. Separately, as of March 3, 2000, the
Board of Directors of Coastal Federal approved a restructuring of the securities
portfolio. The Bank expects to incur a pretax loss of $1.0 million to $1.8
million in the securities portfolio restructuring.
Herbert W. Watts, President of First Federal of Cheraw, stated that the two
banks will work closely to ensure that the transition is orderly. Watts
continued, "First Federal of Cheraw is excited to have the opportunity to serve
additional customers in the Florence market. Our style of banking is high touch
and relationship oriented, so the customers should notice very little change in
that regard."
Michael G. Gerald, President of Coastal Federal, said, "We are very pleased that
the purchaser of our Florence office shares our commitment to providing a high
level of service in the delivery of financial services to the residents of the
Pee Dee Region. Our decision to sell the Florence office permits Coastal Federal
to better focus our efforts on coastal markets along the coast of North and
South Carolina and gain efficiency improvements."
Coastal Financial Corporation, headquartered in Myrtle Beach, South Carolina,
offers a broad range of commercial, consumer and mortgage financial services
through two subsidiaries, Coastal Federal Savings Bank and Coastal Investor
Services. Coastal Federal, with assets over $740 million, is a federally
chartered and FDIC insured community bank with twelve offices serving the
communities of Horry and Georgetown Counties, South Carolina and Brunswick and
New Hanover Counties, North Carolina. Coastal Investor Services engages in the
sale of alternative financial products. Additional information about Coastal
Federal is available on its web site at www.coastalfederal.com.
Stock Trading Information
The common stock of Coastal Financial Corporation is traded on the Nasdaq Stock
Market under the symbol "CFCP." Bid and offered prices are listed daily in the
SUN NEWS, Nasdaq Section, under the symbol "Cstlfncl." For information, contact
Herzog, Heine, Geduld, Inc., at 1-800-523-4936, First Union Capital Markets at
1-800-446-1016, Knights Securities at 212-336-8690, Spear, Leeds & Kellogg at
1-800-526-3160, Edgar M. Norris & Company at 864-235-5991 or Trident Securities
at 1-800-222-2618.
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Dividend Reinvestment and Direct Stock Purchase Plan
Coastal Financial Corporation offers Shareholders a Dividend Reinvestment and
Direct Stock Purchase Plan which provides existing and new shareholders a
convenient means for making purchase of Coastal Financial shares free of fees
and brokerage commissions and at a discount to market price. Additional cash
contributions, up to $1,000 per quarter, can be made to purchase additional
shares. For more information, contact the Transfer Agent at 1-800-866-1349, Ext.
2511, or Investor Relations.
Shareholder Services
Shareholders desiring to enroll in the Coastal Financial Corporation Dividend
Reinvestment Plan, change the name, address, or ownership of their stock
certificates, report lost or stolen certificates, or to consolidate accounts
should contact the Transfer Agent at 1-800-866-1340, Ext. 2511, or Investor
Relations.
Investor Relations
Analysts, investors and other seeking financial information should contact:
Susan J. Cooke -- Vice President and Secretary
Coastal Financial Corporation
2619 Oak Street
Myrtle Beach, South Carolina 29577
(843) 626-0467
