Condensed Financial Information on Coastal Carolina Bancshares, Inc. (Parent Company Only)

12 Months Ended

Dec. 31, 2011

Condensed Financial Information on Coastal Carolina Bancshares, Inc. (Parent Company Only)

20. Condensed Financial Information on Coastal Carolina Bancshares, Inc. (Parent Company Only)

The Parent Company’s condensed balance sheet and related condensed statements of operations and cash flows are as follows:

Condensed Balance Sheets

	December 31,
	2011			2010
Assets
Interest-bearing bank deposits	$	823,360		$	867,307
Investment in bank subsidiary		13,276,298			13,908,358
Other assets		4,242			3,097
Total assets	$	14,103,900		$	14,778,762
Liabilities and Shareholders’ Equity
Liabilities
Accrued expenses and other liabilities	$	18,076		$	7,474
Total liabilities		18,076			7,474
Shareholders’ Equity
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued and outstanding		-			-
Common stock, $.01 par value, 50,000,000 shares authorized, 2,190,500 and 2,185,000 issued and outstanding at December 31, 2011 and 2010, respectively		21,905			21,850
Additional paid-in capital		21,794,089			21,667,958
Unearned compensation, nonvested restricted stock		(44,583	)		(25,000)
Retained deficit		(7,826,852	)		(6,548,688)
Accumulated other comprehensive income (loss)		141,265			(344,832)
Total shareholders’ equity		14,085,824			14,771,288
Total liabilities and shareholders’ equity	$	14,103,900		$	14,778,762

Condensed Statements of Operations

	For the Calendar Year
	2011			2010
Interest income
Interest-bearing bank deposits	$	8,058		$	18,064
Total interest income		8,058			18,064
Noninterest expense
Professional services		20,310			5,187
Postage and supplies		1,761			1,178
Other		39,391			34,115
Total noninterest expense		61,462			40,480
Net loss before equity in loss of bank subsidiary		(53,404	)		(22,416)
Equity in loss of bank subsidiary		(1,224,760	)		(1,988,373)
Income Tax		-			4,356
Net loss	$	(1,278,164	)	$	(2,015,145)

Condensed Statements of Cash Flows

	For the Calendar Year
	2011			2010
Operating activities
Net loss	$	(1,278,164	)	$	(2,015,145)
Adjustments to reconcile net loss to net cash used by operating activities:
Equity in loss of bank subsidiary		1,224,760			1,988,373
Decrease (increase) in accrued interest receivable		(1,145	)		202
Increase in other liabilities		10,602			7,174
Net cash used in operating activities		(43,947	)		(19,396)
Net decrease in cash and cash equivalents		(43,947	)		(19,396)
Cash and cash equivalents, beginning of period		867,307			886,703
Cash and cash equivalents, end of period	$	823,360		$	867,307
Noncash investing activities:
Stock-based compensation expensed at bank subsidiary	$	106,602		$	89,285