Preheat the oven to 350-degrees and grease and flour a 9X5 loaf pan.
Add the coconut to a large non-stick skillet and toast over medium high heat, stirring frequently. Remove from heat and set aside.
Cream together the sugar and butter. Beat in the eggs. Mix in the smashed bananas and applesauce.
In another bowl, whisk together all the dry ingredients, then slowly add it to the wet ingredients. Fold in the coconut and chocolate chips.
Pour the batter into the prepared pan. Bake for 20 minutes, then lower the temperature to 325-degrees and bake another 40-45 minutes, until a toothpick inserted in the middle comes out clean.
Let the bread to cool for 10 minutes in the pan, before turning out onto a cooling rack.
Leftovers, if there are any, will keep best in an airtight container or bag in the refrigerator.
Note, I used my Long Loaf Pans which I adore. The bread doesn't need to cook for quite as long, and the slices are just right for my little ones!