Coastal Financial (NASDAQ:CFCP)
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Coastal Financial Corporation (NASDAQ:CFCP) today announced earnings for
the year ended September 30, 2006.
Net income for fiscal 2006 was $19.0 million or $0.88 per share ($0.85
per share diluted), compared to $17.2 million or $0.81 per share ($0.76
per share diluted) for fiscal 2005. Diluted earnings per share increased
11.8% over the prior year. Net interest income after provision for loan
losses increased to $53.2 million for fiscal 2006 from $47.1 million for
the year ended September 30, 2005.
Net income for the fourth quarter of fiscal 2006 was $5.0 million or
$0.23 per share ($0.22 per share diluted), as compared to $4.6 million
or $0.22 per share ($0.20 per share diluted) for the fourth quarter of
fiscal 2005. Diluted earnings per share increased 10.0% over the prior
year period.
At September 30, 2006, non-performing assets to total assets were 0.21%
as compared with 0.22% at September 30, 2005.
Michael C. Gerald, President and Chief Executive Officer of Coastal
Financial Corporation, said, “We are very
pleased with the performance of Coastal Financial Corporation for fiscal
2006, and particularly with our Return On Average Shareholders’
Equity of 18.6% for the twelve months ended September 30, 2006. This
level of achievement ranks us among the top performing financial
services companies in the nation and reflects well on our exceptional
Associates, the strength of the local markets in which we operate and
our focus on our QUEST FOR EXCELLENCE Business Model.”
“Our operating performance for fiscal 2006
reflected healthy Community-based growth with Loans Receivable, Net,
increasing by 15.7%, to $1.1 billion and Total Assets increasing by
7.5%, to $1.7 billion.
“During fiscal 2006, our stock price increased
by 1.5%. Since becoming a publicly owned company in 1990, Coastal
Financial Corporation’s stock price has grown
at a compound annual rate of over 28%, taking our market capitalization
from $4.9 million in October 1990, to $273.3 million at the close of
this fiscal year. Put another way, an initial investment of $10,000 in
October of 1990, would have grown to approximately $529,000 without
regard to the reinvestment of cash dividends.”
“Shareholders’
equity increased from $97.2 million at September 30, 2005, to $112.8
million at September 30, 2006. Book value per share was $5.20 at
September 30, 2006, compared to $4.54 per share at the end of fiscal
2005. Returns on average equity and average assets for fiscal 2006, were
18.55% and 1.18%, respectively, as compared to 18.75% and 1.20%,
respectively, for fiscal 2005.”
“During the fourth quarter, we announced a
13.3% increase in third quarter earnings and a 10% stock dividend which
was paid September 29, 2006 to Shareholders of record as of September 8,
2006. In addition, a $0.05 per share quarterly cash dividend was
declared October 3, 2006 and is payable on November 3, 2006 to
Shareholders of record as of October 20, 2006.
“Coastal Financial Corporation received
continued national attention in the September 2006 edition of a U.S.
Banker Magazine which, for the 7th
consecutive year, ranked Coastal Financial the #1 Community Bank in the
Carolinas. In this edition, U.S. Banker Magazine featured its
Ranking of the Top 100 Publicly Traded Mid-Tier Banks. This Ranking
featured Banks with assets between $1 and $10 billion, ranked by 3-year
average Return On Average Equity. Coastal Financial Corporation was
ranked 20th nationally in this listing.”
“Noteworthy also is opening of our
newest branch offices which are located at the intersection of Hwy 544
and Singleton Ridge Road in Conway, South Carolina, and at Sayebrook
West on Hwy 544 in Surfside Beach, South Carolina, and the recently
released 2006 FDIC SUMMARY OF DEPOSITS REPORT, which, for the 6th
consecutive year, ranked Coastal Federal Bank the leader in deposit
market share for Horry County, South Carolina for the twelve months
ended June 30, 2006. Coastal Federal Bank has enjoyed this top
ranking for eight of the past eleven years. This report also showed that
Coastal Federal Bank is ranked 3rd in deposit
market share for Brunswick County, North Carolina.”
“We believe these results clearly indicate
the progress we made during the fourth quarter toward our Basic
Corporate Objective of Maximizing the Value of Our Shareholders’
Investment and our Long-Term Goal of Being the Best Financial Services
Company in our Marketplace,” concluded Mr.
Gerald.
Coastal Financial Corporation, headquartered in Myrtle Beach, South
Carolina, offers a broad range of commercial, consumer and mortgage
financial services through two subsidiaries, Coastal Federal Bank and
Coastal Retirement, Estate and Tax Planners, Inc. Coastal Federal Bank,
with $1.7 billion in assets, is a federally chartered and FDIC insured
Community bank with twenty four offices serving the Communities of Horry
and Georgetown Counties, South Carolina and Brunswick and New Hanover
Counties, North Carolina. Coastal Retirement, Estate and Tax Planners,
Inc. offers professional, objective, fee-based financial planning
services. Additional information about Coastal Federal is available on
its web site at www.coastalfederal.com.
Stock Trading Information
The common stock of Coastal Financial Corporation is traded on the
Nasdaq Capital Market under the symbol "CFCP." For information, contact
Raymond James Financial Services at 1-843-918-7600.
Dividend Reinvestment and Direct Stock Purchase Plan
Coastal Financial Corporation offers Shareholders a Dividend
Reinvestment and Direct Stock Purchase Plan which provides existing and
new Shareholders a convenient means for making purchases of Coastal
Financial shares free of fees and brokerage commissions. Additional cash
contributions, up to $1,000 per quarter, can be made to purchase
additional shares. For more information, contact the Transfer Agent at
1-800-866-1340, Ext. 2514, or Investor Relations.
Shareholder Services
Shareholders desiring to enroll in the Coastal Financial Corporation
Dividend Reinvestment and Direct Stock Purchase Plan, change the name,
address, or ownership of their stock certificates, report lost or stolen
certificates, or consolidate accounts should contact the Transfer Agent
at 1-800-866-1340, Ext. 2514, or Investor Relations.
Investor Relations
Analysts, investors and others seeking financial information should
contact:
Susan J. Cooke – Senior Vice President and
Secretary
Coastal Financial Corporation
2619 Oak Street
Myrtle Beach, South Carolina 29577
(843) 205-2676
Forward Looking Statements
This news release may contain certain “forward-looking
statements” within the meaning of Section 27A
of the Securities Exchange Act of 1934, as amended, that represent the
Company’s expectations or beliefs concerning
future events. All forward-looking statements are based on assumptions
and involve risks and uncertainties, many of which are beyond the Company’s
control and which may cause its actual results, performance or
achievements to differ materially from the results, performance or
achievements contemplated by the forward-looking statements.
Forward-looking statements can be identified by the fact that they do
not relate strictly to historical or current facts. They often include
words such as “believe,”
“expect,” “anticipate,”
“intend,” “plan,”
“estimate” or
words of similar meaning, or future or conditional verbs such as “will,”
“would,” “should,”
“could” or “may.”
Forward-looking statements speak only as of the date they are made. Such
risks and uncertainties include, among other things:
• Competitive pressures among depository and
other financial institutions in the Company’s
market areas may increase significantly.
• Adverse changes in the economy or business
conditions, either nationally or in the Company’s
market areas, could increase credit-related losses and expenses and/or
limit growth.
• Increases in defaults by borrowers and
other delinquencies could result in increases in the Company’s
provision for losses on loans and related expenses.
• The Company’s
inability to manage growth effectively, including the successful
expansion of the Company’s Customer support,
administrative infrastructure and internal management systems, could
adversely affect the Company’s results of
operations and prospects.
• Fluctuations in interest rates and market
prices could reduce the Company’s net
interest margin and asset valuations and increase expenses.
• The consequences of continued bank
acquisitions and mergers in the Company’s
market areas, resulting in fewer but much larger and financially
stronger competitors, could increase competition for financial services
to the Company’s detriment.
• The Company’s
continued growth will depend in part on its ability to enter new markets
successfully and capitalize on other growth opportunities.
• Changes in legislative or regulatory
requirements, or actions by the Securities and Exchange Commission (“SEC”),
the Financial Accounting Standards Board (“FASB”),
or the Public Company Accounting Oversight Board, applicable to the
Company and its subsidiaries could increase costs, limit certain
operations and adversely affect results of operations.
• Changes in tax requirements, including tax
rate changes, new tax laws and revised tax law interpretations may
increase the Company’s tax expense or
adversely affect its Customers’ businesses.
• Company initiatives now in place or
introduced in the future, not producing results consistent with historic
growth rates or results which justify their costs.
In light of these risks, uncertainties and assumptions, you should not
place undue reliance on any forward-looking statements in this news
release. Except as may be required by applicable law or regulation, the
Company undertakes no obligation to publicly update or otherwise revise
any forward-looking statements, whether as a result of new information,
future events or otherwise.
COASTAL FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL
HIGHLIGHTS(Unaudited - Dollars in Thousands Except Per
Share Data)
Three Months Ended
Twelve Months Ended
Sept. 30,2006
Sept. 30,2005
PercentageChange
Sept. 30, 2006
Sept. 30,2005
PercentageChange
Interest Income
$26,906
$21,363
25.95%
$99,653
$78,558
26.85%
Interest Expense
12,680
8,452
50.02%
45,073
29,730
51.61%
Net Interest Income
14,226
12,911
10.18%
54,580
48,828
11.78%
Provision for Loan Losses
225
172
30.81%
1,385
1,697
-18.38%
Net Interest Income After
Provision for Loan Losses
14,001
12,739
9.91%
53,195
47,131
12.87%
Other Income/a
4,604
3,320
38.68%
17,065
12,524
36.26%
General & Administrative
Expenses
10,896
8,999
21.08%
41,058
33,519
22.49%
Earnings Before Taxes
7,709
7,060
9.19%
29,202
26,136
11.73%
Income Taxes
2,733
2,442
11.92%
10,201
8,982
13.57%
Net Income
$4,976
$4,618
7.75%
$19,001
$17,154
10.77%
Earnings Per Common Share
Basic
$0.23
$0.22
4.54%
$0.88
$0.81
8.64%
Diluted
$0.22
$0.20
10.00%
$0.85
$0.76
11.84%
Average Common Shares Outstanding
Basic (in thousands)
21,662
21,391
1.27%
21,509
21,274
1.10%
Average Common Shares Outstanding
Diluted (in thousands)
22,477
22,566
-0.39%
22,406
22,465
-0.26%
Net Interest Margin
3.74%
3.75%
-0.27%
3.67%
3.70%
-0.81%
Return on Average Assets
1.21%
1.22%
-0.82%
1.18%
1.20%
-1.67%
Return on Average Equity
18.48%
19.14%
-3.45%
18.55%
18.75%
-1.07%
/a: (Gains)/losses on sales of securities of ($62,000) and
$397,000 are included in other income for the quarter and twelve
months ended September 30, 2006, respectively. For the quarter and
twelve months ended September 30, 2005, losses were $604,000 and
$325,000, respectively.
Coastal Financial Corporation (NASDAQ:CFCP) today announced
earnings for the year ended September 30, 2006.
Net income for fiscal 2006 was $19.0 million or $0.88 per share
($0.85 per share diluted), compared to $17.2 million or $0.81 per
share ($0.76 per share diluted) for fiscal 2005. Diluted earnings per
share increased 11.8% over the prior year. Net interest income after
provision for loan losses increased to $53.2 million for fiscal 2006
from $47.1 million for the year ended September 30, 2005.
Net income for the fourth quarter of fiscal 2006 was $5.0 million
or $0.23 per share ($0.22 per share diluted), as compared to $4.6
million or $0.22 per share ($0.20 per share diluted) for the fourth
quarter of fiscal 2005. Diluted earnings per share increased 10.0%
over the prior year period.
At September 30, 2006, non-performing assets to total assets were
0.21% as compared with 0.22% at September 30, 2005.
Michael C. Gerald, President and Chief Executive Officer of
Coastal Financial Corporation, said, "We are very pleased with the
performance of Coastal Financial Corporation for fiscal 2006, and
particularly with our Return On Average Shareholders' Equity of 18.6%
for the twelve months ended September 30, 2006. This level of
achievement ranks us among the top performing financial services
companies in the nation and reflects well on our exceptional
Associates, the strength of the local markets in which we operate and
our focus on our QUEST FOR EXCELLENCE Business Model."
"Our operating performance for fiscal 2006 reflected healthy
Community-based growth with Loans Receivable, Net, increasing by
15.7%, to $1.1 billion and Total Assets increasing by 7.5%, to $1.7
billion.
"During fiscal 2006, our stock price increased by 1.5%. Since
becoming a publicly owned company in 1990, Coastal Financial
Corporation's stock price has grown at a compound annual rate of over
28%, taking our market capitalization from $4.9 million in October
1990, to $273.3 million at the close of this fiscal year. Put another
way, an initial investment of $10,000 in October of 1990, would have
grown to approximately $529,000 without regard to the reinvestment of
cash dividends."
"Shareholders' equity increased from $97.2 million at September
30, 2005, to $112.8 million at September 30, 2006. Book value per
share was $5.20 at September 30, 2006, compared to $4.54 per share at
the end of fiscal 2005. Returns on average equity and average assets
for fiscal 2006, were 18.55% and 1.18%, respectively, as compared to
18.75% and 1.20%, respectively, for fiscal 2005."
"During the fourth quarter, we announced a 13.3% increase in third
quarter earnings and a 10% stock dividend which was paid September 29,
2006 to Shareholders of record as of September 8, 2006. In addition, a
$0.05 per share quarterly cash dividend was declared October 3, 2006
and is payable on November 3, 2006 to Shareholders of record as of
October 20, 2006.
"Coastal Financial Corporation received continued national
attention in the September 2006 edition of a U.S. Banker Magazine
which, for the 7th consecutive year, ranked Coastal Financial the #1
Community Bank in the Carolinas. In this edition, U.S. Banker Magazine
featured its Ranking of the Top 100 Publicly Traded Mid-Tier Banks.
This Ranking featured Banks with assets between $1 and $10 billion,
ranked by 3-year average Return On Average Equity. Coastal Financial
Corporation was ranked 20th nationally in this listing."
"Noteworthy also is opening of our newest branch offices which are
located at the intersection of Hwy 544 and Singleton Ridge Road in
Conway, South Carolina, and at Sayebrook West on Hwy 544 in Surfside
Beach, South Carolina, and the recently released 2006 FDIC SUMMARY OF
DEPOSITS REPORT, which, for the 6th consecutive year, ranked Coastal
Federal Bank the leader in deposit market share for Horry County,
South Carolina for the twelve months ended June 30, 2006. Coastal
Federal Bank has enjoyed this top ranking for eight of the past eleven
years. This report also showed that Coastal Federal Bank is ranked 3rd
in deposit market share for Brunswick County, North Carolina."
"We believe these results clearly indicate the progress we made
during the fourth quarter toward our Basic Corporate Objective of
Maximizing the Value of Our Shareholders' Investment and our Long-Term
Goal of Being the Best Financial Services Company in our Marketplace,"
concluded Mr. Gerald.
Coastal Financial Corporation, headquartered in Myrtle Beach,
South Carolina, offers a broad range of commercial, consumer and
mortgage financial services through two subsidiaries, Coastal Federal
Bank and Coastal Retirement, Estate and Tax Planners, Inc. Coastal
Federal Bank, with $1.7 billion in assets, is a federally chartered
and FDIC insured Community bank with twenty four offices serving the
Communities of Horry and Georgetown Counties, South Carolina and
Brunswick and New Hanover Counties, North Carolina. Coastal
Retirement, Estate and Tax Planners, Inc. offers professional,
objective, fee-based financial planning services. Additional
information about Coastal Federal is available on its web site at
www.coastalfederal.com.
Stock Trading Information
The common stock of Coastal Financial Corporation is traded on the
Nasdaq Capital Market under the symbol "CFCP." For information,
contact Raymond James Financial Services at 1-843-918-7600.
Dividend Reinvestment and Direct Stock Purchase Plan
Coastal Financial Corporation offers Shareholders a Dividend
Reinvestment and Direct Stock Purchase Plan which provides existing
and new Shareholders a convenient means for making purchases of
Coastal Financial shares free of fees and brokerage commissions.
Additional cash contributions, up to $1,000 per quarter, can be made
to purchase additional shares. For more information, contact the
Transfer Agent at 1-800-866-1340, Ext. 2514, or Investor Relations.
Shareholder Services
Shareholders desiring to enroll in the Coastal Financial
Corporation Dividend Reinvestment and Direct Stock Purchase Plan,
change the name, address, or ownership of their stock certificates,
report lost or stolen certificates, or consolidate accounts should
contact the Transfer Agent at 1-800-866-1340, Ext. 2514, or Investor
Relations.
Investor Relations
Analysts, investors and others seeking financial information
should contact:
Susan J. Cooke - Senior Vice President and Secretary
Coastal Financial Corporation
2619 Oak Street
Myrtle Beach, South Carolina 29577
(843) 205-2676
Forward Looking Statements
This news release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Exchange Act of
1934, as amended, that represent the Company's expectations or beliefs
concerning future events. All forward-looking statements are based on
assumptions and involve risks and uncertainties, many of which are
beyond the Company's control and which may cause its actual results,
performance or achievements to differ materially from the results,
performance or achievements contemplated by the forward-looking
statements. Forward-looking statements can be identified by the fact
that they do not relate strictly to historical or current facts. They
often include words such as "believe," "expect," "anticipate,"
"intend," "plan," "estimate" or words of similar meaning, or future or
conditional verbs such as "will," "would," "should," "could" or "may."
Forward-looking statements speak only as of the date they are made.
Such risks and uncertainties include, among other things:
-- Competitive pressures among depository and other financial
institutions in the Company's market areas may increase significantly.
-- Adverse changes in the economy or business conditions, either
nationally or in the Company's market areas, could increase
credit-related losses and expenses and/or limit growth.
-- Increases in defaults by borrowers and other delinquencies
could result in increases in the Company's provision for losses on
loans and related expenses.
-- The Company's inability to manage growth effectively, including
the successful expansion of the Company's Customer support,
administrative infrastructure and internal management systems, could
adversely affect the Company's results of operations and prospects.
-- Fluctuations in interest rates and market prices could reduce
the Company's net interest margin and asset valuations and increase
expenses.
-- The consequences of continued bank acquisitions and mergers in
the Company's market areas, resulting in fewer but much larger and
financially stronger competitors, could increase competition for
financial services to the Company's detriment.
-- The Company's continued growth will depend in part on its
ability to enter new markets successfully and capitalize on other
growth opportunities.
-- Changes in legislative or regulatory requirements, or actions
by the Securities and Exchange Commission ("SEC"), the Financial
Accounting Standards Board ("FASB"), or the Public Company Accounting
Oversight Board, applicable to the Company and its subsidiaries could
increase costs, limit certain operations and adversely affect results
of operations.
-- Changes in tax requirements, including tax rate changes, new
tax laws and revised tax law interpretations may increase the
Company's tax expense or adversely affect its Customers' businesses.
-- Company initiatives now in place or introduced in the future,
not producing results consistent with historic growth rates or results
which justify their costs.
In light of these risks, uncertainties and assumptions, you should
not place undue reliance on any forward-looking statements in this
news release. Except as may be required by applicable law or
regulation, the Company undertakes no obligation to publicly update or
otherwise revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
-0-
*T
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
Three Months Ended
Sept. 30, Sept. 30, Percentage
2006 2005 Change
-----------------------------------
Interest Income $26,906 $21,363 25.95%
Interest Expense 12,680 8,452 50.02%
-------------------------
Net Interest Income 14,226 12,911 10.18%
Provision for Loan Losses 225 172 30.81%
-------------------------
Net Interest Income After
Provision for Loan Losses 14,001 12,739 9.91%
Other Income/a 4,604 3,320 38.68%
General & Administrative
Expenses 10,896 8,999 21.08%
-------------------------
Earnings Before Taxes 7,709 7,060 9.19%
Income Taxes 2,733 2,442 11.92%
-------------------------
Net Income $4,976 $4,618 7.75%
=========================
Earnings Per Common Share
Basic $0.23 $0.22 4.54%
=========================
Diluted $0.22 $0.20 10.00%
=========================
Average Common Shares Outstanding
Basic (in thousands) 21,662 21,391 1.27%
Average Common Shares Outstanding
Diluted (in thousands) 22,477 22,566 -0.39%
Net Interest Margin 3.74% 3.75% -0.27%
Return on Average Assets 1.21% 1.22% -0.82%
Return on Average Equity 18.48% 19.14% -3.45%
/a: (Gains)/losses on sales of securities of ($62,000) and $397,000
are included in other income for the quarter and twelve months ended
September 30, 2006, respectively. For the quarter and twelve months
ended September 30, 2005, losses were $604,000 and $325,000,
respectively.
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
Twelve Months Ended
- Sept. 30, Sept. 30, Percentage
2006 2005 Change
---------------------------------------
Interest Income $99,653 $78,558 26.85%
Interest Expense 45,073 29,730 51.61%
---------------------------
Net Interest Income 54,580 48,828 11.78%
Provision for Loan Losses 1,385 1,697 -18.38%
---------------------------
Net Interest Income After
Provision for Loan Losses 53,195 47,131 12.87%
Other Income/a 17,065 12,524 36.26%
General & Administrative
Expenses 41,058 33,519 22.49%
---------------------------
Earnings Before Taxes 29,202 26,136 11.73%
Income Taxes 10,201 8,982 13.57%
---------------------------
Net Income $19,001 $17,154 10.77%
===========================
Earnings Per Common Share
Basic $0.88 $0.81 8.64%
===========================
Diluted $0.85 $0.76 11.84%
===========================
Average Common Shares
Outstanding
Basic (in thousands) 21,509 21,274 1.10%
Average Common Shares
Outstanding
Diluted (in thousands) 22,406 22,465 -0.26%
Net Interest Margin 3.67% 3.70% -0.81%
Return on Average Assets 1.18% 1.20% -1.67%
Return on Average Equity 18.55% 18.75% -1.07%
/a: (Gains)/losses on sales of securities of ($62,000) and $397,000
are included in other income for the quarter and twelve months ended
September 30, 2006, respectively. For the quarter and twelve months
ended September 30, 2005, losses were $604,000 and $325,000,
respectively.
*T