CFHI Coast Finl Hldgs (MM)

BRADENTON, Fla., Feb. 5 /PRNewswire-FirstCall/ -- Coast Financial Holdings, Inc. (NASDAQ:CFHI), parent company of Coast Bank of Florida said today that it was pleased to announce that it has hired veteran banker Tramm Hudson as a special advisor to the Board of Directors of the holding company and to senior management of Coast Bank. The action, which is effective immediately, follows an announcement Friday that James K. Toomey, Coast Financial Holding's chairman had been hospitalized after complaining of chest pains earlier that day. He was admitted to Manatee Memorial Hospital for observations and tests on Friday. Also Friday, Coast Financial Holding's board named Michael T. Ruffino as interim chairman and M. Alex White as interim vice-chairman. It was announced that Brian Grimes will continue in his role as president of Coast Bank. Toomey is expected to remain on a leave of absence until further notice, Ruffino said. Ruffino, who is a 30-year resident of Manatee County and head of Manatee Pinellas Title Co. since 1985, said, "We are all pleased that someone of Tramm Hudson's stature in the financial service industry has agreed to work with us on challenges facing the company. As a veteran banker familiar with Florida, Tramm will be an immediate asset to our company and the management team." Hudson will advise the board on issues involving bank regulators, problem loan resolution, assisting the company in developing strategic alternatives, and media relations. "Tramm has a solid reputation for integrity and trust in this community; he is well regarded among bank regulators and has a proven track record of success with other banking organizations in Florida. His advice and counsel will be invaluable as we try to successfully resolve these matters," Ruffino said. Hudson, age 54, brings over 25 years of active banking experience to Coast Bank. Hudson was a founding director of Enterprise National Bank of Sarasota and president of the bank when it was sold to Provident Bank. He was the Florida Division Executive of Provident Bank until it was sold to RBC Centura Bank in 2003. He retired from RBC in December 2006 as their West Florida Regional Director. "I am excited to be working with Coast Bank during this challenging time," said Hudson. "As the largest, independent bank in the Tampa Bay area, Coast Bank has a great franchise with a strong capital base." Hudson's banking career began with North Carolina National Bank (NCNB), which was the precursor of NationsBank/Bank of America, in 1981 having just completed his MBA at Emory University, Atlanta, GA. He worked in Charlotte, NC as well as Tampa and Clearwater with NCNB before being named Senior Credit Officer with the Sarasota NCNB organization in 1986. In 1988, he was a founder and director of Enterprise National Bank of Sarasota, the first nationally chartered community bank established in Sarasota in more than 20 years. At the time, Enterprise was the most highly capitalized bank of its kind ever organized in Southwest Florida. Over a decade, Hudson served as senior credit officer, executive vice president, director and president of the institution. In 1997, Enterprise National Bank was sold to Ohio-based Provident Bank. Hudson was named Florida division executive for Provident Bank, and under his leadership, the bank expanded to include 13 branch locations, with total Florida assets of $850-million. In 2003, Hudson helped engineer the sale of the Provident Bank's Florida division to Raleigh, NC-based RBC Centura Bank. Hudson led the transition team before and through the acquisition. Hudson also is a well-known and active leader statewide as well as a leader in the local communities of Sarasota and Manatee counties. He is the past chairman of Workforce Florida, the statewide board that oversees labor and job programs statewide. He is also a graduate of Leadership Florida, a program of the Florida Chamber of Commerce. Professionally he is a past member of the board of the Florida Bankers Association and Enterprise Florida, the statewide board responsible for economic development interest in the state. In addition he is a past Trustee of Manatee Community College, and the past chairman of several notable local organizations, including the Sarasota County Chamber of Commerce, the Committee of 100, and the Out-of-Door Academy. He is also a past board member of the United Way of Sarasota County, the Sarasota Family YMCA and he is an Elder in the First Presbyterian Church of Sarasota. Hudson served three terms as chairman of the Republican Party in Sarasota County. In 1995, Hudson was appointed to the White House Conference on Small Business. In 1996, 2000 and 2004, he was a delegate to the Republican National Convention. Most recently he was a candidate for Congress in Florida's district 13. Hudson graduated from Vanderbilt University in 1975 as a distinguished military graduate. He served as a Cavalry officer in Germany for three years and continued in the Army Reserves after his active duty. He retired from the Army Reserve as a Lt. Colonel in 1996. He is married to Sarah Thompson and they are the parents of two college age daughters and a son in high school. About the Company Coast Financial Holdings, Inc. through its banking subsidiary, Coast Bank of Florida (http://www.coastfl.com/), operates 20 full-service banking locations in Manatee, Pinellas, Hillsborough and Pasco counties, Florida. Coast Bank of Florida is a commercial bank that provides full-service banking operations to its customers from its headquarters location and from branch offices in Bradenton, Palmetto, Longboat Key, Seminole, Dunedin, Clearwater, Kenneth City, Brandon, St. Petersburg, Lutz, Largo and Pinellas Park. This press release and other statements to be made by the Company contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, including but not limited to statements relating to projections and estimates of earnings, revenues, cost-savings, expenses, or other financial items; statements of management's plans, strategies, and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved; statements concerning proposed new products and services; and statements regarding future economic, industry, or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "project," and conditional verbs such as "may," "could," and "would," and other similar expressions or verbs. Such forward-looking statements reflect management's current expectations, beliefs, estimates, and projections regarding the Company, its industry and future events, and are based upon certain assumptions made by management. These forward-looking statements are not guarantees of future performance and necessarily are subject to risks, uncertainties, and other factors (many of which are outside the control of the Company) that could cause actual results to differ materially from those anticipated. These risks, uncertainties, and other factors include, among others: changes in general economic or business conditions, either nationally or in the State of Florida, changes in the interest rate environment, the Company's ability to successfully open and operate new branches and collect on delinquent loans, changes in the regulatory environment, and other risks described in the Company's Form 10-K for the fiscal year ended December 31, 2005, the Company's Form 10-Q for the quarter ended September 30, 2006, and as described from time to time by the Company in other reports filed by it with the Securities and Exchange Commission. Any forward-looking statement speaks only to the date on which the statement is made, and the Company disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. If the Company does update any forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to that statement or any other forward- looking statements. DATASOURCE: Coast Financial Holdings, Inc. CONTACT: Bill Carlson for Coast Bank, +1-813-228-0652 Web site: http://www.coastfl.com/

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