Coastal Financial Corporation Announces First Quarter 2021 Results
Coastal Financial Corporation (Nasdaq: CCB) reported a strong first quarter of 2021, with net income rising 29.1% to $6.0 million ($0.49 per diluted share) compared to Q4 2020. Total assets grew by 14.9% to $2.03 billion, and total loans receivable increased by 14.2% to $1.77 billion, bolstered by $543.8 million in PPP loans. Total deposits grew 17.6% to $1.67 billion. The company also received the Raymond James Community Bankers Cup for the second consecutive year. Return on assets rose to 1.28%, reflecting effective management amidst pandemic challenges.
- Net income increased by 29.1% to $6.0 million compared to Q4 2020.
- Total assets grew by 14.9% to $2.03 billion.
- Total loans receivable increased by 14.2% to $1.77 billion.
- Total deposits rose by 17.6% to $1.67 billion.
- Return on average assets improved to 1.28%.
- Yield on loans receivable decreased to 4.51% from 5.25% year-over-year.
- Net interest margin fell to 3.76% compared to 4.15% in Q1 2020.
First Quarter 2021 Highlights:
- Net income totaled
$6.0 million for the quarter ended March 31, 2021, or$0.49 per diluted common share, an increase of29.1% from$4.7 million , or$0.38 per diluted common share, for the quarter ended December 31, 2020. - Basic earnings per share increased
28.2% , and diluted earnings per share increased27.9% , for the quarter ended March 31, 2021, compared to the quarter ended December 31, 2020. - Total assets grew
$263.2 million , or14.9% , to$2.03 billion for the quarter ended March 31, 2021, compared to$1.77 billion at December 31, 2020. - Total loans receivable, including
$543.8 million in Paycheck Protection Program (“PPP”) loans, grew$219.6 million , or14.2% , to$1.77 billion for the quarter ended March 31, 2021, compared to$1.55 billion at December 31, 2020. - Total deposits increased
$250.4 million , or17.6% , to$1.67 billion for the quarter ended March 31, 2021, compared to$1.42 billion at December 31, 2020. - Originated
$283.6 million in PPP loans in the three months ended March 31, 2021. - CCBX relationships increased to 21 at March 31, 2021, compared to 15 at December 31, 2020.
EVERETT, Wash., April 27, 2021 (GLOBE NEWSWIRE) -- Coastal Financial Corporation (Nasdaq: CCB) (the “Company”), the holding company for Coastal Community Bank (the “Bank”), today reported unaudited financial results for the quarter ended March 31, 2021. Net income for the first quarter of 2021 was
“We are pleased to announce that we are ending the first quarter of 2021 with total assets of
“As a preferred Small Business Administration (“SBA”) lender, we continued to work with the SBA to provide financial assistance to existing and new small business customers via the third round of PPP loans as provided in the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), which opened for applications on January 19, 2021. Since that time, through March 31, 2021, we have funded
“We have ambitious goals and are implementing a plan that employs our three-prong strategy for success and growth. Our community bank, CCBX division, which provides Banking as a Service (“BaaS”) and CCDB division, our digital banking division, each play an integral role in future success of our Company. Our CCBX division continues to develop and grow, with a total of 21 CCBX relationships as of March 31, 2021, an increase of 14 relationships compared to March 31, 2020. CCBX generates additional fee and interest income for the Company by providing BaaS enabling broker dealers and digital financial service providers to offer their clients banking services, including loans. CCDB, our digital banking division, is our newest division and we look forward to introducing our digital bank accounts later this year or early next year in connection with our previously announced collaboration with Google,” stated Eric Sprink, the President and CEO of the Company and the Bank.
Results of Operations
Net interest income was
As of March 31, 2021,
Our yield on loans receivable was
Non-PPP loan growth was
Interest expense was
Net interest margin decreased for the three months ended March 31, 2021 to
During the quarter ended March 31, 2021, the average balance of total loans receivable increased by
Contractual yield on loans receivable, excluding earned fees* approximated
Cost of deposits for the quarter ended March 31, 2021 was
Return on average assets (“ROA”) was
________
* A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.
During the first quarter of 2021, significant focus was placed on helping the small businesses in our communities through the third round of PPP loans. The current PPP loan program is currently scheduled to end on May 31, 2021. We will continue to accept and process PPP loans for the duration of the program. The PPP loans originated in the first and second rounds during 2020 and from the third round originated in 2021 have had a significant impact on our financial statements. These PPP loans along with any additional PPP loans that fund through the end of the program will continue to impact our results in the future. During the quarter ended March 31, 2021 we continued to receive forgiveness payments from the SBA. Throughout this earnings release, we will address the impact, to the extent possible, of these loans including borrowings received through PPPLF to help fund these loans and to aid in liquidity, in addition to earnings and expenses related to these activities. Any estimated adjusted ratios that exclude the impact of this activity are non-GAAP measures. For more information about non-GAAP financial measures, please see the end of this earnings release.
The table below summarizes key information regarding the PPP loans originated in 2020 as of the period indicated:
| Round 1 and 2 - Originated in 2020 | |||||||||||||||||||
| Original Loan Size | |||||||||||||||||||
| As of March 31, 2021 | |||||||||||||||||||
| > 2,000,000.01 | Totals | ||||||||||||||||||
| (Dollars in thousands; unaudited) | |||||||||||||||||||
| Principal outstanding: | |||||||||||||||||||
| Existing customer | $ | 4,506 | $ | 10,141 | $ | 10,382 | $ | 32,375 | $ | 52,299 | $ | 109,703 | |||||||
| New customer | 11,132 | 15,352 | 22,820 | 40,151 | 61,052 | 150,507 | |||||||||||||
| Total principal outstanding | 15,638 | 25,493 | 33,202 | 72,526 | 113,351 | 260,210 | |||||||||||||
| Deferred fees outstanding | (450 | ) | (636 | ) | (791 | ) | (978 | ) | (515 | ) | (3,370 | ) | |||||||
| Deferred costs outstanding | 247 | 85 | 60 | 44 | 14 | 450 | |||||||||||||
| Net deferred fees | $ | (203 | ) | $ | (551 | ) | $ | (731 | ) | $ | (934 | ) | $ | (501 | ) | $ | (2,920 | ) | |
| Total principal, net of deferred fees | $ | 15,435 | $ | 24,942 | $ | 32,471 | $ | 71,592 | $ | 112,850 | $ | 257,290 | |||||||
| Number of loans: | |||||||||||||||||||
| Existing customer | 214 | 112 | 47 | 42 | 13 | 428 | |||||||||||||
| New customer | 615 | 177 | 106 | 55 | 19 | 972 | |||||||||||||
| Total loan count | 829 | 289 | 153 | 97 | 32 | 1,400 | |||||||||||||
| Percent of total | 59.3 | % | 20.6 | % | 10.9 | % | 6.9 | % | 2.3 | % | 100.0 | % | |||||||
| Forgiveness/Payoffs/Paydowns in Quarter Ended March 31, 2021, net | |||||||||||||||||||
| Dollars | $ | 12,083 | $ | 27,446 | $ | 18,215 | $ | 47,886 | $ | - | $ | 105,630 | |||||||
| Deferred fee recognized | 155 | 817 | 689 | 1,040 | 113 | 2,814 | |||||||||||||
The table below summarizes key information regarding the PPP loans originated in 2021 as of the period indicated:
| Round 3 - Originated in 2021 | |||||||||||||||||||
| Original Loan Size | |||||||||||||||||||
| As of March 31, 2021 | |||||||||||||||||||
| > 2,000,000.01 | Totals | ||||||||||||||||||
| (Dollars in thousands; unaudited) | |||||||||||||||||||
| Principal outstanding: | |||||||||||||||||||
| Existing customer | $ | 14,872 | $ | 36,882 | $ | 43,811 | $ | 111,178 | $ | 2,956 | $ | 209,699 | |||||||
| New customer | 11,006 | 14,263 | 20,111 | 28,538 | - | 73,918 | |||||||||||||
| Total principal outstanding | 25,878 | 51,145 | 63,922 | 139,716 | 2,956 | 283,617 | |||||||||||||
| Deferred fees outstanding | (3,143 | ) | (2,479 | ) | (3,099 | ) | (4,056 | ) | (29 | ) | (12,806 | ) | |||||||
| Deferred costs outstanding | 800 | 362 | 173 | 110 | 1 | 1,446 | |||||||||||||
| Net deferred fees | $ | (2,343 | ) | $ | (2,117 | ) | $ | (2,926 | ) | $ | (3,946 | ) | $ | (28 | ) | $ | (11,360 | ) | |
| Number of loans: | |||||||||||||||||||
| Existing customer | 707 | 399 | 190 | 141 | 1 | 1,438 | |||||||||||||
| New customer | 633 | 163 | 89 | 45 | - | 930 | |||||||||||||
| Total loan count | 1,340 | 562 | 279 | 186 | 1 | 2,368 | |||||||||||||
| Percent of total | 56.6 | % | 23.7 | % | 11.8 | % | 7.9 | % | 0.0 | % | 100.0 | % | |||||||
| First or Second Draw | |||||||||||||||||||
| First Draw | $ | 7,456 | $ | 5,930 | $ | 1,983 | $ | 5,264 | $ | 2,956 | $ | 23,589 | |||||||
| Second Draw | 18,422 | 45,215 | 61,939 | 134,452 | - | 260,028 | |||||||||||||
The following table shows the Company’s key performance ratios for the periods indicated. The table also includes ratios that were adjusted by removing the impact of the PPP loans as described above. The adjusted ratios are non-GAAP measures. For more information about non-GAAP financial measures, see the end of this earnings release.
| Three Months Ended | ||||||||||||||||
| (unaudited) | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||
| Return on average assets (1) | 1.28 | % | 1.04 | % | 0.95 | % | 0.96 | % | 0.96 | % | ||||||
| Return on average equity (1) | 16.84 | % | 13.36 | % | 12.14 | % | 11.37 | % | 8.66 | % | ||||||
| Pre-tax, pre-provision return on average assets (1)(2) | 1.69 | % | 1.90 | % | 1.72 | % | 1.72 | % | 1.77 | % | ||||||
| Yield on earnings assets (1) | 3.99 | % | 4.16 | % | 3.93 | % | 4.16 | % | 4.79 | % | ||||||
| Yield on loans receivable (1) | 4.51 | % | 4.64 | % | 4.33 | % | 4.57 | % | 5.25 | % | ||||||
| Yield on loans receivable, excluding PPP loans (1)(2) | 4.78 | % | 5.00 | % | 4.78 | % | 4.94 | % | n/a | |||||||
| Contractual yield on loans receivable, excluding earned fees (1)(2) | 3.53 | % | 3.66 | % | 3.61 | % | 3.91 | % | 5.08 | % | ||||||
| Contractual yield on loans receivable, excluding earned fees and interest on PPP loans, as adjusted (1)(2) | 4.52 | % | 4.65 | % | 4.69 | % | 4.84 | % | n/a | |||||||
| Cost of funds (1) | 0.24 | % | 0.29 | % | 0.33 | % | 0.41 | % | 0.70 | % | ||||||
| Cost of deposits (1) | 0.17 | % | 0.22 | % | 0.27 | % | 0.35 | % | 0.64 | % | ||||||
| Net interest margin (1) | 3.76 | % | 3.89 | % | 3.62 | % | 3.78 | % | 4.15 | % | ||||||
| Noninterest expense to average assets (1) | 2.62 | % | 2.35 | % | 2.26 | % | 2.34 | % | 3.18 | % | ||||||
| Efficiency ratio | 60.85 | % | 55.26 | % | 56.73 | % | 57.66 | % | 64.26 | % | ||||||
| Loans receivable to deposits | 105.68 | % | 108.85 | % | 110.98 | % | 110.77 | % | 100.01 | % | ||||||
| (1) Annualized calculations shown for quarterly periods presented. | ||||||||||||||||
| (2) A reconciliation of the non-GAAP measures are set forth at the end of this earnings release. | ||||||||||||||||
Noninterest income was
Our CCBX division continues to grow, and consists of 21 relationships, at varying stages, as of March 31, 2021, compared to 15 CCBX relationships at December 31, 2020 and seven CCBX relationships as of March 31, 2020, respectively. As of March 31, 2021, we had ten active CCBX relationships, five relationships in onboarding/implementation, six signed letters of intent and a solid pipeline of potential new CCBX relationships. The following table illustrates the activity and growth in CCBX for the periods presented:
| As of | |||
| March 31, 2021 | December 31, 2020 | March 31, 2020 | |
| Active | 10 | 6 | 2 |
| Friends and family | - | 2 | - |
| Implementation / onboarding | 5 | 3 | 3 |
| Signed letters of intent | 6 | 4 | 2 |
| Total CCBX relationships | 21 | 15 | 7 |
Total noninterest expense for the first quarter of 2021 increased to
The increased noninterest expenses for the quarter ended March 31, 2021 compared to the first quarter in 2020 were largely due to a
The provision for income taxes was
Financial Condition
Total assets increased
Total loans receivable increased
The second round of the PPP loans closed on August 8, 2020, and since that time we have been accepting applications from customers for loan forgiveness on PPP loans originated in 2020. As of March 31, 2021, we have received
The third round of PPP loans opened to applicants on January 19, 2021. Once again, we will continue to accept and process applications for both existing and new customers, for the duration of the program which runs through May 30, 2021. As of March 31, 2021, we have originated loans for
The following table summarizes the loan portfolio at the periods indicated.
| As of | |||||||||||||||||||||
| March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||||||||||
| (Dollars in thousands; unaudited) | Balance | % to Total | Balance | % to Total | Balance | % to Total | |||||||||||||||
| Commercial and industrial loans: | |||||||||||||||||||||
| PPP loans | $ | 543,827 | 30.5 | % | $ | 365,842 | 23.5 | % | $ | - | 0.0 | % | |||||||||
| All other commercial & industrial loans | 202,447 | 11.2 | 173,358 | 11.1 | 122,667 | 12.2 | |||||||||||||||
| Real estate loans: | |||||||||||||||||||||
| Construction, land and land development loans | 104,596 | 5.9 | 94,423 | 6.1 | 119,668 | 11.9 | |||||||||||||||
| Residential real estate loans | 136,417 | 7.7 | 143,869 | 9.2 | 117,821 | 11.7 | |||||||||||||||
| Commercial real estate loans | 793,633 | 44.5 | 774,925 | 49.8 | 643,488 | 63.9 | |||||||||||||||
| Consumer and other loans | 4,114 | 0.2 | 3,916 | 0.3 | 3,695 | 0.3 | |||||||||||||||
| Gross loans receivable | 1,785,034 | 100.0 | % | 1,556,333 | 100.0 | % | 1,007,339 | 100.0 | % | ||||||||||||
| Net deferred origination fees - PPP loans | (14,279 | ) | (5,803 | ) | - | ||||||||||||||||
| Net deferred origination fees - Other loans | (4,032 | ) | (3,392 | ) | (2,159 | ) | |||||||||||||||
| Loans receivable | $ | 1,766,723 | $ | 1,547,138 | $ | 1,005,180 | |||||||||||||||
Please see Appendix A for additional loan portfolio detail regarding industry concentrations.
Total deposits increased
The following table summarizes the deposit portfolio at the periods indicated.
| As of | |||||||||||||||||||||
| March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||||||||||
| (Dollars in thousands, unaudited) | Balance | % to Total | Balance | % to Total | Balance | % to Total | |||||||||||||||
| Demand, noninterest bearing | $ | 768,690 | 46.0 | % | $ | 592,261 | 41.7 | % | $ | 345,503 | 34.4 | % | |||||||||
| NOW and money market | 728,243 | 43.6 | 658,323 | 46.3 | 492,054 | 49.0 | |||||||||||||||
| Savings | 93,917 | 5.6 | 77,611 | 5.4 | 54,851 | 5.4 | |||||||||||||||
| Total core deposits | 1,590,850 | 95.2 | 1,328,195 | 93.4 | 892,408 | 88.8 | |||||||||||||||
| BaaS-brokered deposits | 25,597 | 1.5 | 33,482 | 2.4 | 23,904 | 2.4 | |||||||||||||||
| Time deposits less than | 38,986 | 2.3 | 41,145 | 2.9 | 58,366 | 5.8 | |||||||||||||||
| Time deposits | 16,282 | 1.0 | 18,485 | 1.3 | 30,384 | 3.0 | |||||||||||||||
| Total deposits | $ | 1,671,715 | 100.0 | % | $ | 1,421,307 | 100.0 | % | $ | 1,005,062 | 100.0 | % | |||||||||
To support and promote the effectiveness of the SBA PPP loan program, the Federal Reserve is supplying liquidity to participating financial institutions through non-recourse term financing secured by PPP loans to small businesses. The PPPLF extends low cost borrowings at a
The Federal Home Loan Bank (“FHLB”) allows us to borrow against our line of credit, which is collateralized by certain loans. As of March 31, 2021, we borrowed a total of
Total shareholders’ equity increased
Capital Ratios
The Company and the Bank remain well capitalized at March 31, 2021, as summarized in the following table.
| Capital Ratios: | Coastal Community Bank | Coastal Financial Corporation | Financial Institution Basel III Regulatory Guidelines | ||||||||
| (unaudited) | |||||||||||
| Tier 1 leverage capital | 8.84 | % | 8.62 | % | 5.00 | % | |||||
| Adjusted Tier 1 leverage capital ratio, excluding PPP loans (1) | 10.72 | % | 10.45 | % | 5.00 | % | |||||
| Common Equity Tier 1 risk-based capital | 11.45 | % | 10.89 | % | 6.50 | % | |||||
| Tier 1 risk-based capital | 11.45 | % | 11.15 | % | 8.00 | % | |||||
| Total risk-based capital | 12.70 | % | 13.15 | % | 10.00 | % | |||||
| (1) A reconciliation of the non-GAAP measure is set forth at the end of this earnings release. | |||||||||||
Asset Quality
The allowance for loan losses was
The Company’s increased provision for loan losses during the quarters ended December 31, 2020 and March 31, 2020, is related to an increase in qualitative factors related to the economic uncertainties caused by the COVID-19 pandemic and loan growth. The qualitative and economic factors used in management’s analysis of the provision for loan losses indicated an increased provision was not required for the quarter ended March 31, 2021. The expected loan losses have not materialized as originally anticipated in 2020, as evidenced by the low level of charge-offs and nonperforming loans. The economic environment is continuously changing and has shown signs of improvement, with United States implementing
________
* A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.
At March 31, 2021, our nonperforming assets were
Management is continuing to actively monitor the loan portfolio to identify borrowers experiencing difficulties with repayment and are proactively working with them to reduce potential losses through the prudent use of PPP loans, deferrals, and modifications in accordance with regulatory guidelines. There were no repossessed assets or other real estate owned at March 31, 2021. Our nonperforming loans to loans receivable ratio was
For the quarter ended March 31, 2021, we have not seen a significant change in our credit quality metrics, as demonstrated by the low level of charge-offs and nonperforming loans. The long-term economic impact of the COVID-19 pandemic, political gridlock, and trade issues is unknown; however, the Company remains diligent in its efforts to communicate and proactively work with borrowers to help mitigate potential credit deterioration.
Pursuant to federal guidance, the Company deferred and/or modified payments on loans to assist customers financially during the COVID-19 pandemic and economic shutdown. A total of
The table below illustrates the status of all loans that were deferred and/or modified under this guidance since the guidelines were issued:
| COVID-19 Deferrals | |||||
| As of March 31, 2021 | |||||
| Amount | Number of loans | ||||
| (Dollars in thousands; unaudited) | |||||
| Successfully resumed payments | $ | 211,351 | 217 | ||
| Closed - paid off | 13,247 | 27 | |||
| Pending first payment | 3,660 | 2 | |||
| Currently deferred | 13,296 | 3 | |||
| Total | $ | 241,554 | 249 | ||
The following table details the Company’s nonperforming assets for the periods indicated.
| As of | ||||||||||
| March 31, | December 31, | March 31, | ||||||||
| (Dollars in thousands, unaudited) | 2021 | 2020 | 2020 | |||||||
| Nonaccrual loans: | ||||||||||
| Commercial and industrial loans | $ | 488 | $ | 537 | $ | 699 | ||||
| Real estate: | ||||||||||
| Residential real estate | 173 | 175 | 64 | |||||||
| Total nonaccrual loans | 661 | 712 | 763 | |||||||
| Accruing loans past due 90 days or more: | ||||||||||
| Total accruing loans past due 90 days or more | - | - | - | |||||||
| Total nonperforming loans | 661 | 712 | 763 | |||||||
| Other real estate owned | - | - | - | |||||||
| Repossessed assets | - | - | - | |||||||
| Total nonperforming assets | $ | 661 | $ | 712 | $ | 763 | ||||
| Troubled debt restructurings, accruing | - | - | - | |||||||
| Total nonperforming loans to loans receivable | 0.04 | % | 0.05 | % | 0.08 | % | ||||
| Total nonperforming assets to total assets | 0.03 | % | 0.04 | % | 0.06 | % | ||||
About Coastal Financial
Coastal Financial Corporation (Nasdaq: CCB) (the “Company”), is an Everett, Washington based bank holding company whose wholly owned subsidiaries are Coastal Community Bank (“Bank”) and Arlington Olympic LLC. The
Contact
Eric Sprink, President & Chief Executive Officer, (425) 357-3659
Joel Edwards, Executive Vice President & Chief Financial Officer, (425) 357-3687
Forward-Looking Statements
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of or reference to forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, the risks and uncertainties discussed under “Risk Factors” in our Annual Report on Form 10-K for the most recent period filed, our Quarterly Report on Form 10-Q for the most recent quarter, and in any of our subsequent filings with the Securities and Exchange Commission.
If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.
COASTAL FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands; unaudited)
| ASSETS | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2021 | 2020 | 2020 | ||||||||||
| Cash and due from banks | $ | 16,842 | $ | 18,965 | $ | 14,124 | ||||||
| Interest earning deposits with other banks | 187,472 | 144,152 | 115,112 | |||||||||
| Investment securities, available for sale, at fair value | 20,378 | 20,399 | 15,469 | |||||||||
| Investment securities, held to maturity, at amortized cost | 2,515 | 2,848 | 4,290 | |||||||||
| Other investments | 6,829 | 6,059 | 5,723 | |||||||||
| Loans receivable | 1,766,723 | 1,547,138 | 1,005,180 | |||||||||
| Allowance for loan losses | (19,610 | ) | (19,262 | ) | (12,925 | ) | ||||||
| Total loans receivable, net | 1,747,113 | 1,527,876 | 992,255 | |||||||||
| Premises and equipment, net | 17,194 | 17,108 | 14,195 | |||||||||
| Operating lease right-of-use assets | 6,900 | 7,120 | 8,228 | |||||||||
| Accrued interest receivable | 8,597 | 8,616 | 3,014 | |||||||||
| Bank-owned life insurance, net | 7,133 | 7,082 | 6,931 | |||||||||
| Deferred tax asset, net | 3,802 | 3,799 | 2,735 | |||||||||
| Other assets | 4,584 | 2,098 | 1,995 | |||||||||
| Total assets | $ | 2,029,359 | $ | 1,766,122 | $ | 1,184,071 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| LIABILITIES | ||||||||||||
| Deposits | $ | 1,671,715 | $ | 1,421,307 | $ | 1,005,062 | ||||||
| Federal Home Loan Bank advances | 24,999 | 24,999 | 24,999 | |||||||||
| Paycheck Protection Program Liquidity Facility | 158,519 | 153,716 | - | |||||||||
| Subordinated debt, net | 9,996 | 9,993 | 9,982 | |||||||||
| Junior subordinated debentures, net | 3,585 | 3,584 | 3,583 | |||||||||
| Deferred compensation | 833 | 863 | 947 | |||||||||
| Accrued interest payable | 538 | 531 | 310 | |||||||||
| Operating lease liabilities | 7,105 | 7,323 | 8,419 | |||||||||
| Other liabilities | 5,330 | 3,589 | 3,603 | |||||||||
| Total liabilities | 1,882,620 | 1,625,905 | 1,056,905 | |||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||
| Common stock | 88,329 | 87,815 | 87,166 | |||||||||
| Retained earnings | 58,386 | 52,368 | 39,946 | |||||||||
| Accumulated other comprehensive income (loss), net of tax | 24 | 34 | 54 | |||||||||
| Total shareholders’ equity | 146,739 | 140,217 | 127,166 | |||||||||
| Total liabilities and shareholders’ equity | $ | 2,029,359 | $ | 1,766,122 | $ | 1,184,071 | ||||||
COASTAL FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts; unaudited)
| Three Months Ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| 2021 | 2020 | 2020 | |||||||
| INTEREST AND DIVIDEND INCOME | |||||||||
| Interest and fees on loans | $ | 18,230 | $ | 17,885 | $ | 12,627 | |||
| Interest on interest earning deposits with other banks | 70 | 76 | 358 | ||||||
| Interest on investment securities | 28 | 31 | 119 | ||||||
| Dividends on other investments | 30 | 106 | 16 | ||||||
| Total interest and dividend income | 18,358 | 18,098 | 13,120 | ||||||
| INTEREST EXPENSE | |||||||||
| Interest on deposits | 660 | 758 | 1,554 | ||||||
| Interest on borrowed funds | 383 | 407 | 202 | ||||||
| Total interest expense | 1,043 | 1,165 | 1,756 | ||||||
| Net interest income | 17,315 | 16,933 | 11,364 | ||||||
| PROVISION FOR LOAN LOSSES | 357 | 2,600 | 1,578 | ||||||
| Net interest income after provision for loan losses | 16,958 | 14,333 | 9,786 | ||||||
| NONINTEREST INCOME | |||||||||
| Deposit service charges and fees | 863 | 867 | 723 | ||||||
| BaaS fees | 948 | 735 | 579 | ||||||
| Loan referral fees | 597 | 423 | 1,053 | ||||||
| Mortgage broker fees | 262 | 216 | 162 | ||||||
| Sublease and lease income | 32 | 31 | 30 | ||||||
| Gain on sales of loans, net | 130 | 35 | - | ||||||
| Other income (loss) | 152 | (258 | ) | 124 | |||||
| Total noninterest income | 2,984 | 2,049 | 2,671 | ||||||
| NONINTEREST EXPENSE | |||||||||
| Salaries and employee benefits | 7,686 | 6,433 | 5,683 | ||||||
| Occupancy | 1,058 | 1,026 | 927 | ||||||
| Data processing | 697 | 599 | 551 | ||||||
| Director and staff expenses | 220 | 187 | 270 | ||||||
| Excise taxes | 359 | 301 | 203 | ||||||
| Marketing | 82 | 37 | 112 | ||||||
| Legal and professional fees | 760 | 584 | 323 | ||||||
| Federal Deposit Insurance Corporation assessments | 195 | 230 | 70 | ||||||
| Business development | 99 | 99 | 125 | ||||||
| Other expense | 1,196 | 993 | 755 | ||||||
| Total noninterest expense | 12,352 | 10,489 | 9,019 | ||||||
| Income before provision for income taxes | 7,590 | 5,893 | 3,438 | ||||||
| PROVISION FOR INCOME TAXES | 1,572 | 1,232 | 714 | ||||||
| NET INCOME | $ | 6,018 | $ | 4,661 | $ | 2,724 | |||
| Basic earnings per common share | $ | 0.50 | $ | 0.39 | $ | 0.23 | |||
| Diluted earnings per common share | $ | 0.49 | $ | 0.38 | $ | 0.22 | |||
| Weighted average number of common shares outstanding: | |||||||||
| Basic | 11,980,092 | 11,936,289 | 11,909,248 | ||||||
| Diluted | 12,392,000 | 12,280,191 | 12,208,175 | ||||||
COASTAL FINANCIAL CORPORATION
AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
(Dollars in thousands; unaudited)
| March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||||||||||||||||||
| Average | Interest & | Yield / | Average | Interest & | Yield / | Average | Interest & | Yield / | |||||||||||||||||||||
| Balance | Dividends | Cost (4) | Balance | Dividends | Cost (4) | Balance | Dividends | Cost (4) | |||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Interest earning assets: | |||||||||||||||||||||||||||||
| Interest earning deposits | $ | 195,308 | $ | 70 | 0.15 | % | $ | 166,744 | $ | 76 | 0.18 | % | $ | 103,372 | $ | 358 | 1.39 | % | |||||||||||
| Investment securities (1) | 24,185 | 28 | 0.47 | 23,730 | 31 | 0.52 | 27,041 | 119 | 1.77 | ||||||||||||||||||||
| Other investments | 6,080 | 30 | 2.00 | 6,124 | 106 | 6.89 | 4,507 | 16 | 1.43 | ||||||||||||||||||||
| Loans receivable (2) | 1,640,108 | 18,230 | 4.51 | 1,533,533 | 17,885 | 4.64 | 966,602 | 12,627 | 5.25 | ||||||||||||||||||||
| Total interest earning assets | 1,865,681 | 18,358 | 3.99 | 1,730,131 | 18,098 | 4.16 | 1,101,522 | 13,120 | 4.79 | ||||||||||||||||||||
| Noninterest earning assets: | |||||||||||||||||||||||||||||
| Allowance for loan losses | (19,391 | ) | (17,767 | ) | (11,665 | ) | |||||||||||||||||||||||
| Other noninterest earning assets | 65,912 | 62,359 | 51,596 | ||||||||||||||||||||||||||
| Total assets | $ | 1,912,202 | $ | 1,774,723 | $ | 1,141,453 | |||||||||||||||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||||||||||
| Interest bearing deposits | $ | 856,111 | $ | 660 | 0.31 | % | $ | 808,351 | $ | 758 | 0.37 | % | $ | 628,037 | $ | 1,554 | 1.00 | % | |||||||||||
| Subordinated debt, net | 9,994 | 145 | 5.88 | 9,991 | 148 | 5.89 | 9,980 | 146 | 5.88 | ||||||||||||||||||||
| Junior subordinated debentures, net | 3,585 | 21 | 2.38 | 3,584 | 22 | 2.44 | 3,583 | 35 | 3.93 | ||||||||||||||||||||
| PPPLF borrowings | 170,376 | 147 | 0.35 | 188,222 | 166 | 0.35 | - | - | 0.00 | ||||||||||||||||||||
| FHLB advances and other borrowings | 24,999 | 70 | 1.14 | 25,001 | 71 | 1.13 | 7,851 | 21 | 1.08 | ||||||||||||||||||||
| Total interest bearing liabilities | 1,065,065 | 1,043 | 0.40 | 1,035,149 | 1,165 | 0.45 | 649,451 | 1,756 | 1.09 | ||||||||||||||||||||
| Noninterest bearing deposits | 690,465 | 588,764 | 352,930 | ||||||||||||||||||||||||||
| Other liabilities | 11,778 | 11,968 | 12,542 | ||||||||||||||||||||||||||
| Total shareholders' equity | 144,894 | 138,842 | 126,530 | ||||||||||||||||||||||||||
| Total liabilities and | |||||||||||||||||||||||||||||
| shareholders' equity | $ | 1,912,202 | $ | 1,774,723 | $ | 1,141,453 | |||||||||||||||||||||||
| Net interest income | $ | 17,315 | $ | 16,933 | $ | 11,364 | |||||||||||||||||||||||
| Interest rate spread | 3.59 | % | 3.71 | % | 3.70 | % | |||||||||||||||||||||||
| Net interest margin (3) | 3.76 | % | 3.89 | % | 4.15 | % | |||||||||||||||||||||||
| (1) For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts. | |||||||||||||||||||||||||||||
| (2) Includes nonaccrual loans. | |||||||||||||||||||||||||||||
| (3) Net interest margin represents net interest income divided by the average total interest earning assets. | |||||||||||||||||||||||||||||
| (4) Yields and costs are annualized. | |||||||||||||||||||||||||||||
COASTAL FINANCIAL CORPORATION
QUARTERLY STATISTICS
(Dollars in thousands, except share and per share data; unaudited)
| Three Months Ended | |||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||
| Income Statement Data: | |||||||||||||||
| Interest and dividend income | $ | 18,358 | $ | 18,098 | $ | 16,394 | $ | 15,426 | $ | 13,120 | |||||
| Interest expense | 1,043 | 1,165 | 1,298 | 1,433 | 1,756 | ||||||||||
| Net interest income | 17,315 | 16,933 | 15,096 | 13,993 | 11,364 | ||||||||||
| Provision for loan losses | 357 | 2,600 | 2,200 | 1,930 | 1,578 | ||||||||||
| Net interest income after | |||||||||||||||
| provision for loan losses | 16,958 | 14,333 | 12,896 | 12,063 | 9,786 | ||||||||||
| Noninterest income | 2,984 | 2,049 | 1,942 | 1,520 | 2,671 | ||||||||||
| Noninterest expense | 12,352 | 10,489 | 9,666 | 8,945 | 9,019 | ||||||||||
| Net income - pre-tax, pre-provision (1) | 7,947 | 8,493 | 7,372 | 6,568 | 5,016 | ||||||||||
| Provision for income tax | 1,572 | 1,232 | 1,082 | 967 | 714 | ||||||||||
| Net income | 6,018 | 4,661 | 4,090 | 3,671 | 2,724 | ||||||||||
| As of and for the Three Month Period | |||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||
| Balance Sheet Data: | |||||||||||||||
| Cash and cash equivalents | $ | 204,314 | $ | 163,117 | $ | 182,170 | $ | 174,176 | $ | 129,236 | |||||
| Investment securities | 22,893 | 23,247 | 23,782 | 24,318 | 19,759 | ||||||||||
| Loans receivable | 1,766,723 | 1,547,138 | 1,509,389 | 1,447,144 | 1,005,180 | ||||||||||
| Allowance for loan losses | (19,610 | ) | (19,262 | ) | (17,046 | ) | (14,847 | ) | (12,925 | ) | |||||
| Total assets | 2,029,359 | 1,766,122 | 1,749,619 | 1,678,956 | 1,184,071 | ||||||||||
| Interest bearing deposits | 903,025 | 829,046 | 789,347 | 742,633 | 659,559 | ||||||||||
| Noninterest bearing deposits | 768,690 | 592,261 | 570,664 | 563,794 | 345,503 | ||||||||||
| Core deposits (2) | 1,590,850 | 1,328,195 | 1,270,249 | 1,212,215 | 892,408 | ||||||||||
| Total deposits | 1,671,715 | 1,421,307 | 1,360,011 | 1,306,427 | 1,005,062 | ||||||||||
| Total borrowings | 197,099 | 192,292 | 241,167 | 228,725 | 38,564 | ||||||||||
| Total shareholders’ equity | 146,739 | 140,217 | 135,232 | 130,977 | 127,166 | ||||||||||
| Share and Per Share Data (3): | |||||||||||||||
| Earnings per share – basic | $ | 0.50 | $ | 0.39 | $ | 0.34 | $ | 0.31 | $ | 0.23 | |||||
| Earnings per share – diluted | $ | 0.49 | $ | 0.38 | $ | 0.34 | $ | 0.30 | $ | 0.22 | |||||
| Dividends per share | - | - |
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{
"@type": "Question",
"name": "What were Coastal Financial Corporation's Q1 2021 earnings results?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Coastal Financial Corporation reported a net income of $6.0 million for Q1 2021, or $0.49 per diluted share."
}
},
{
"@type": "Question",
"name": "How much did Coastal Financial's total assets grow in Q1 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Total assets increased by $263.2 million, or 14.9%, to $2.03 billion."
}
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{
"@type": "Question",
"name": "What impact did PPP loans have on Coastal Financial's financial results?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Coastal Financial originated $283.6 million in PPP loans, contributing significantly to its net income and loan growth."
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{
"@type": "Question",
"name": "What was the return on assets for Coastal Financial in Q1 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The return on average assets was 1.28% for Q1 2021."
}
},
{
"@type": "Question",
"name": "How did Coastal Financial's total deposits change in Q1 2021?",
"acceptedAnswer": {
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FAQ
What were Coastal Financial Corporation's Q1 2021 earnings results?
Coastal Financial Corporation reported a net income of $6.0 million for Q1 2021, or $0.49 per diluted share.
How much did Coastal Financial's total assets grow in Q1 2021?
Total assets increased by $263.2 million, or 14.9%, to $2.03 billion.
What impact did PPP loans have on Coastal Financial's financial results?
Coastal Financial originated $283.6 million in PPP loans, contributing significantly to its net income and loan growth.
What was the return on assets for Coastal Financial in Q1 2021?
The return on average assets was 1.28% for Q1 2021.
How did Coastal Financial's total deposits change in Q1 2021?
Total deposits increased by $250.4 million, or 17.6%, reaching $1.67 billion.
Coastal Financial Corporation
NASDAQ:CCBCCB RankingsCCB Latest NewsCCB Stock Data
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2.46%
Banks - Regional
State Commercial Banks
United States of America
EVERETT
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