Gold Coast Bank : Year End 2017 Press Release

FOR IMMEDIATERELEASE

CONTACT:Catherine Califano, EVP-CFO 631-233-8640 [e-mail]

LONGISLANSDGOLDCOASBTANCORPEPOR1T0S%ASSEGTROWTINH2017

1

(Islandia, NY) January 29, 2018 - Gold Coast Bancorp, Inc. (OTC:GLDT) ("Gold Coast") , the holding company of Gold Coast Bank, known as "Long Island's Community Bank"8M, (the"Bank") today reported net income for the year ended December 31, 2017 of $1,710,000,or $0.43 per share compared with net income of $1,900,000, or $0.54 per share for the ended December 31, 2016 . Net income for the 2017 year reflected a one -time charge of $650,000 related to the downward revaluation of the company's deferred tax assets resulting from the recent reduction of the U.S. corporate tax rate to 21%. This adjustment was recorded in the fourth quarter of 2017 upon enactment of the Tax Cuts and Jobs Act in December 2017 and should result in reduced tax expense in 2018 and beyond. Adjusted for the impact of the deferred tax asset revaluation, net income totaled $2 ,360,000 for the year, or $0 .60 per share, a 24% increase from 2016. Returnon average assets and return on average equity was 0.37 percent and 4.10 percent, respectively, in 2017, compared to 0.49 percent and 5.24 percent in 2016.

Gold Coast reported a net loss of $266 ,000 for the quarter ended December 31 , 2017, compared with net income of $316,000 for the same period in 2016. Net income in the 2017 fourth quarter was reduced by the aforementioned $650,000 charge . Adjusted to exclude the impact of the deferred tax asset revaluation, net income for the 2017 fourth quarter totaled $384,000, a 21% increase when compared to the prior year quarter . On a per share basis, Gold Coast reported a net loss of ($0 .07) per share compared with net earnings of $0.08 per share in the prior year period . Excluding the reevaluation of the deferred tax asset, earnings per share in the fourth quarter of 2017 was $0 .10 per share. Return on average assets and return on average equity was (0.22) percent and (2.47) percent, respectively, for the three months ended December 31, 2017, compared to 0.31 percent and 3.08 percent, respectively, for the three months ended December 31, 2016 .

Total assets at December 31, 2017 were $470 million, an increase of $41 million, or 10 percent from total assets of $429 million at December 31, 2016 . Total assets decreased modestly by $7 million from $477 million at September 30, 2017.

Deposits at December 31, 2017 totaled $392 million, an increase of $27 million, or 7 percent, compared with $365 million, at December 31, 2016 . Total deposits decreased $25 million, or 6

percent , from $417 million at September 30, 2017 , primarily due to a decrease in municipal deposits due to year-end funding needs. These deposits are typically cyclical. Non-interest bearing demand deposits were 25 percent of the total deposit portfolio at December 31, 2017 compared to 31 percent at December 31 , 2~16 and 24 percent at September 30 , 2017 , respectively. FHLB borrowings were $20 million at both December 31, 2017 and 2016, respectively . There were no FHLB borrowings at September 30, 2017 .

On September 29 , 2017, Gold Coast Bancorp completed the sale of $13.5 million of its fixed-to-floating Subord inated Notes to certain institutional and accredited investors. The Notes will initially bear interest at 6.50% per annum until October 1, 2022 ; thereafter , the Notes will be payable at an annual floating rate equal to three-month LIBOR plus a spread of 4 .55% until maturity or early redemption . The Company made an initial contribution of $12 million of cap ital to the Bc;J.nfrkom the proceeds of the offering to support continued growth .

Total loans outstanding at December 31, 2017 were $381 million, an increase of $41 million, or 12 percent from $340 million at December 31, 2016 and an increase of $16 million, or 4 percent from $365 million at September 30 , 2017 . Loan originations and draws were $118 million in 2017 compared to $111 million in 2016, a 6 percent increase year over year. The bank exper ienced a 64 percent increase in loan repayments and pay downs year over year at $77 million in 2017 compared to $47 million in 2016. Loan originat ions and draws were $27 million for the three months ended December 31 , 2017 , compared to $47 million for t he same three month period in 2016 . Loan repayments and pay downs were $12 million in the 2017 fourth quarter compared to $10 million in the same previous year quarter.

Asset quality continues to remain strong: The Bank's nonperforming loans were 0.13 percent of gross loans at December 31, 2017. Allowance for loan losses was 1.03 percent of total loans at December 31, 2017.

The Bank remained well -capital ized at December 31, 2017 , with the following regulatory capita l ratios :

- Tier 1 Leverage Capital Ratio of 11.39 percent.

- Common Equity Tier 1 Risk-Based Capital and Tier 1 Risk-Based Capital Ratios of 15.31 percent

- Total Risk-Based Capital Ratio of 16.40 percent

At December 31 , 2017 book value was $10 .69 per share , increasing from $10.29 per share at December 31, 2016 .

Net interest income grew $1 ,731,00, or 14 percent in 2017 compared to 2016 , largely due to a 17 percent increase in average interest earning assets, partially offset by a decrease in the net interest marg in to 3.05 percent in 2017 compared to 3.09 percent in 2016. Net interest income grew $385 ,000, or 12 percent for the three months ended December 31 , 2017, compared to the same three month period in 2016 , due to an 16 percent increase in average interest earning assets , partially offset by a decrease in the net interest margin to 2 .93 percent in the most recentthree month period compared to 3.04 percent in the 2016 three month period . The decrease in the Bank's net interest margin is largely due to an increase in the Bank's cost of funds , primarily due to the subordinated note issuance .

Non-interest income grew $128,000, or 35 percent in 2017 compared to 2016 and grew $33,000, or 28% in the fourth quarter of 2017 compared to the same period in 2016, largely due to an increase in seNice charges and fees . Non-interest expense increased $1,692,000 , or 19 percent in 2017 compared to 2016, and increased $512,000, or 21 percent in the fourth quarter of 2017 compared with the same period of 2016, largely due to the opening of the Bank's newest branch in Brooklyn and the addition of staff to support the bank's expanded lending activities in the NYC metropolitan area.

John C . Tsunis, Chairman and CEO stated, "The formation of our holding company and the successful completion of our subordinated debt offering allows us to continue to execute on our strategic growth plan and manage our capital levels without diluting existing shareholders . Specifically, the subordinated debt offering enhances our team's efforts for continued, prudent loan growth with our best customers, increasing our lending limit, and allowing us to attract new customers with larger credit needs . Our ability to compete for quality, larger, seasoned loans with these customers in real estate and the commercial /industrial segments of our market will help diversify and expand our loan portfolio, as well as to generate additional deposits . We will be vigilant for growth opportunities within our marketplace, and to efficiently deploy our team, capital, and technology to expand our presence to seNice our growing customer base. We look forward to participating in the acceleration of the U.S. economy this coming year and capturing organic growth for our bottom line while expanding our future earnings, producing investable capital."

About Gold Coast Bancorp, Inc.

Gold Coast Bancorp, Inc. is the holding company for Gold Coast Bank. Headquartered in Islandia with additional branches located in Huntington, Setauket, Farmingdale, Mineola , Southampton and Brooklyn, Gold Coast Bank is a New York State chartered bank whose popularity and reputation stems from the strong, long-term relationships cultivated among its large and diverse customer base. The bank's deposits are insured by the Federal Deposit Insurance Corporation (FDIC) . Gold Coast Bank prides itself on providing businesses and individuals with qua lity lending and banking seNices. Fulfilling a unique niche within our metropolitan New York trade area, Gold Coast Bank delivers specialty lending capabilities in a variety of areas that include real estate, equipment finance, and lines of credit for privately owned businesses .

ConsolidateBdalancSe heets(unaudited)

(dollarsin thousandse, xceptpersharedata)ASSETS Totalcashandcashequivalents Securitiesavailablefor sale,at fair value Securitiesheldto maturity

Loans

Allowancefor loanlosses Loan,snet Premisesandequipment,net Otherassets

Totalassets

Decembe3r1, 2017

$

21,343

56,960

8,437

381,452

(3,919)

377,533

1,778

4,384

Septembe3r0, 2017

$

54,244

47,893 47,537 7,456 5,568 365,031 340,466

(3,783)

361,248 336,908 1,892 1,884 4,093 4,566

$

470,435

$

476,826

Decembe3r1, 2016

• $ 32,481

  (3,558)

• $ 428,944

LIABILITIAESNDSHAREHOLDEERQSU' ITY Non-interesbt earing

Interestbearing Totaldeposits Borrowings Subordinated ebt, net Otherliabilities TotalLiabilities TotalShareholderEsq' uity TotalLiabilitieasndShareholderEsq' uitySelectedFinanciaDlata(unaudited)

Allowancefor LoanLossesto TotalLoans Non-performingLoansto TotalLoans BookValueperShare

CapitaRl atios(unaudited()1)

Tier 1 LeverageRaito

CommonEquityTier 1 Risk-BaseCdapitalRatio Tier 1 Risk-BaseCdapitalRatio TotalRisk-BaseCdapitalRatio

(1) Regulatorycapital ratiospresentedon bank-only basis

$

99,153

293,120 316,531 253,487

• $ 100,564

  $ 111,730

  392,273 417,095 365,217

  20,000 20,000

  13,299 13,298

  2,815 3,866 3,269

  428,387 434,259 388,486

  42,048 42,567 40,458

  $

  470,435

• $ 476,826

$ 428,944

1.03% 0.13% 10.69

1.04% 1.05%

0.41% 0.09%

$

$

10.83 $ 10.29

11.39% 15.31% 15.31% 16.40%

11.68% 9.90%

15.83% 12.52%

15.83% 12.52%

16.93% 13.61%

ConsolidSattaetdemeonfIntscom(uenaudited)

(dollainrsthousa,nedxcsepstharaendpesr hardeata)Intereinsct ome Intereesxt pense Neitntereisntcome Provisfiornloanlosses Neitntereisntcomaeftepr rovisifonrloanlosses

Fotrhethreme onthesnded

• $ 4,444 $

  Decem3b1e,r	Septem3b0e, r	Decem3b1e,r	Decem3b1e,r	Decem3b1e,r
  2017	2017	2016	2017	2016

  4,302 $ 676 3,626

  935

  3,509

  119

  3,615 $

  491

  3,124

  344

  Fotrheyeaernded

  16,849 $ 14,094

  2,808 1,784

  14,041 12,310

  233 676

  3,390

  3,626

  2,780

  13,808 11,634

  Nest ecuritgieasins 5

  Noninteresitncome Nonintereesxt penses Incombe forinecomtaexes Incomtaexexpense Ne(tlossin)come

  149

  2,916

  623

  889

• $ (266) $

  207

  116

  2,618

  497 364

  2,404

  1,215

  10,762 9,070

  492

  399

  3,543 2,933

  176

  1,833 1,033

  816 $

  316 $

  1,710 $ 1,900

  Bas(ilcosse)arninpgessr hare Dilute(ldosse)aringspesr hare Weightaevderacgoemoan dequivalent shareosutstanding

  SelectFeidnancDiatl(aunaudited)

  RetuornAveraAgsesets RetuornAveraEgeqituy NeItntereMstargin EfficienRcaytio

• $ (0.07) $

• $ (0.07) $

0.21 0.21

• 3,931,634 3,931,634

• $ 0.08 $

• $ 0.08 $ 3,931,634

0.43 $ 0.54 0.43 $ 0.54

3,931,634

3,542,128

(0.22%) (2.4%7) 2.93% 79.72%

0.69% 7.68% 3.10% 68.30%

0.31% 3.08% 3.04% 74.20%

0.37% 0.4%9 4.1%0 5.24% 3.05% 3.0%9 74.03% 71.56%

For more information about Gold Coast Bancorp, Inc. and Gold Coast Bank , please visit www .gcbny.com Our press releases, and other material information published by the Company and the Bank, may be found on our website under the tab ' Investor Relations '.

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