Good news for The Coastal Bank as FDIC lifts consent order

I’ve written a fair bit over the last couple of years about banking problems, so it’s been kind of a relief — and a bit of a surprise — to see the steady unwinding of the aggressive FDIC actions that were implemented in the wake of the financial crisis.

The FDIC has only closed 16 banks nationwide in 2013 and none since early June.

And the number of banks under special FDIC scrutiny, which reached around 1,000 at one point, has been falling steadily.

Here’s much of the press release from Abshire Public Relations this morning noting that the FDIC has lifted the consent order for The Coastal Bank based here in Savannah:

The Coastal Bank announced today that the FDIC and the Georgia Department of Banking and Finance have removed the Consent Order which was entered into in May 2011. The Coastal Bank is the first bank in the Savannah area and one of very few in the southeast Georgia market to emerge from a formal order with the regulatory authorities.

“Long before the formal order was issued, we committed the necessary resources to improve the bank’s condition as quickly as possible,” said Jim A. LaHaise, president and CEO of The Coastal Bank. Throughout the two year tenure of the order, we maintained capital levels which were well in excess of the agreed upon minimums. This capital position allows us to continue to lend money to support customer needs in the communities we serve. We appreciate the support of our board of directors, management team and staff in reaching this significant accomplishment.”

Improvement of The Coastal Bank’s financial condition over the past two years has been driven primarily by the reduction of problem loans. The bank has made significant improvements in earnings performance, returning to profitability in 2012. This trend continues into 2013 with the bank reporting net income of $1.09 million through six months ended June 30, 2013 compared to $922,000 for the year ended December 31, 2012.