Houston-based Coastal Bancorp reported second-quarter earnings of 83 cents per share, a company record, compared with 46 cents per share for the same period in 1999.
Coastal, with assets of $3.1 billion, reported net income of $5.6 million for the three months through June 30, including a special dividend totaling $1.1 million from the Federal Home Loan Bank of Dallas. Even excluding that nonrecurring payment, Coastal's core earnings of 75 cents a share set a record, said Manuel J. Mehos, its chief executive officer.
Coastal's net interest margin was 3.02%, up from 2.7% a year ago. The increase reflects the bank's conversion efforts from thrift into a "pure commercial bank," Mr. Mehos said. "We began this five years ago, and we are just starting to see the fruits of our labor."
For the first six months of the year, Coastal reported net earnings of $10.1 million, or $1.42 per share.