Coast Financial Holdings/Coast Bank - "Diversified" Bank


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Update, 2007-12-12 (moved from "ailing"):

Coast as it once was is done for: the bank was bought out in a firesale scenario by First Banks of St. Louis. See this article for more.

If there is any doubt as to the "firesale" status of this buyout, we direct you to this Herald-Tribune article from immediately prior to the sale which states:

If the merger is rejected, Bradenton-based Coast Bank could become the fourth U.S. bank failure of 2007, and the stockholders would be left empty-handed.

Original "ailing" write-up, 2007-01-20:

This is an angle we hadn't initially thought of tracking on this page—lenders becoming distressed because of developers (rather than individual retail borrowers) becoming insolvent. But it's every bit as relevant to the overall solvency picture. Here are some clips from the first story above:

A developer unable to complete construction on hundreds of homes has put $110 million worth of mortgage loans in jeopardy for Bradenton-based Coast Bank.

The management of Coast Financial Holdings Inc., parent company of Bradenton-based Coast Bank, announced Friday that it was anticipating problems with loans to 482 borrowers after a local development company said it may not have sufficient funds to complete construction on the homes.

Here's a link to their SEC filing announcing the material impairments.

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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.