CBC National Bank of Fernandina announces acquisition

Press Release
Submitted by Michael Brooks
VP & Chief Marketing Officer

November 24, 2015 10:00 a.m.

First Avenue National Bank of Ocala to Merge with CBC National Bank of Fernandina Beach

FNB Merger LogoCoastal Banking Company Inc., (OTCQX: CBCO), the holding company of CBC National Bank (“CBCNB”), which operates branches in Fernandina Beach, Fla., Beaufort and Port Royal, S.C., announced today that it has signed a definitive agreement to acquire First Avenue National Bank of Ocala, Florida (“First Avenue”). Upon completion of the merger, Coastal Banking Company Inc. (“Coastal”) expects to merge First Avenue’s operations into CBCNB.

First Avenue, headquartered in Ocala, Fla., was founded in 2006 and operates two
branches in Ocala and one branch in The Villages, Fla. It will add approximately
$125 million in assets, $108 million in deposits, and $79 million in gross loans to
CBCNB.

The acquisition of First Avenue is Coastal’s first expansion into the attractive and fast-growing central Florida market and allows Coastal to grow its core community banking franchise while continuing to bolster its two other primary operating divisions, residential mortgage banking and government guaranteed lending, both of which have strongly contributed to the company’s record earnings over the past two years.

“The acquisition of First Avenue creates value both for our customers and shareholders by combining two strong and complementary banks,” said Michael G. Sanchez, chairman and chief executive officer of Coastal Banking Company Inc. “Both share an abiding commitment to customer service and the communities in which we operate, and both are well-managed and located in vibrant, economically strong areas. The managerial talent and core operations of both banks will allow our organization to leverage the combination to deliver even more shareholder and customer value going forward.

“We are delighted to welcome First Avenue’s employees and their 4,000 customers to CBCNB, and look forward to providing our new customers with a broader array of banking services, including government guaranteed lending and mortgage lending capabilities,” Sanchez added.

Ralph Strayhorn, First Avenue’s president and CEO, said, “We are pleased to be combining with a bank that values customer service just as much as we do, and we look forward to the additional products and services that CBCNB will be able to deliver to our customers and the larger Central Florida community banking market. We also recognized in CBCNB a bank that would likewise deliver long-term growth and value creation for our shareholders.”