Coast Financial Holdings Inc. of Bradenton, Fla., said late Wednesday that it has hired the investment bank Sandler O'Neill & Partners LP to help the $676 million-asset company review its strategic options.
Shares of Coast shared have dropped 50% since Jan. 19, when the company warned that hundreds of its borrowers may not be able to make timely payments on loans for construction of their new homes. The shares closed at $8.04 Wednesday in heavy trading.
Coast had previously committed $110 million to 482 individual property owners, who had reached deals with an unidentified home builder and its affiliates to build homes on their land. Coast said in a filing with the Securities and Exchange Commission last week that it has already disbursed at least $55 million of the committed funds.
James K. Toomey, the chairman of Coast, said it would explore all options, including remaining independent.
