Coastal Financial (NASDAQ:CFCP)
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Coastal Financial Corporation Announces Fiscal 2005 Third Quarter
Earnings
MYRTLE BEACH, S.C., July 20 /PRNewswire-FirstCall/ -- Coastal Financial
Corporation (NASDAQ:CFCP) today announced earnings for the third quarter and
nine months ended June 30, 2005.
Net income for the third quarter of fiscal 2005 increased 11.7% to $4.4 million
or $0.25 per share ($0.23 per share diluted), as compared to $3.9 million or
$0.22 per share ($0.21 per share diluted) for the same period of fiscal 2004.
Net income for the first three quarters of fiscal 2005 increased 15.1% to $12.5
million or $0.71 per share ($0.68 per share diluted), compared to $10.9 million
or $0.63 per share ($0.60 per share diluted) for the same period of fiscal
2004.
At June 30, 2005, assets totaled $1.5 billion, an increase of 16.1%, or $206.2
million, from $1.3 billion at June 30, 2004. Customer deposits increased 15.5%
to $882.1 million at June 30, 2005, as compared to $764.0 million at June 30,
2004 and Shareholders' equity grew by 22.7% during the same period.
Returns on average assets and average equity were 1.19% and 18.80%,
respectively, for the three months ended June 30, 2005, compared to 1.23% and
19.60%, respectively, for the prior year period.
At June 30, 2005, non-performing assets to total assets were 0.29% as compared
with 0.46% at June 30, 2004.
Michael C. Gerald, President and Chief Executive Officer of Coastal Financial
Corporation, said: "Our financial performance during this quarter, and
year-to-date, reflects well on our region's continuing economic strength and on
Coastal Financial's ability to effectively execute its strategic plans. The
increase in Customer deposits and loans through internal growth and de novo
branching activities coupled with our steadfast dedication to our QUEST FOR
EXCELLENCE Business Model and Vision 2005 Plan have also been key factors in
our exceptional financial performance through the first nine months of fiscal
2005.
"As evidenced by our launch of Coastal Federal as The Carolinas' Most
Convenient Bank earlier this year, we are unrelenting in our commitment to
embracing change and constant improvement as catalysts for executing on our
Mission of Exceeding The Expectations of our Customer in ways that add value
for our Customers and Shareholders.
"During the third quarter, we announced a 12.5% increase in fiscal 2005 second
quarter net income over the comparable prior year quarter, and an increase in
our cash dividend to five cents ($.05) per share which will be paid July 22,
2005 to Shareholders of record as of July 8, 2005.
"Other notable events and accomplishments during this quarter include
construction on our newest branch offices in Conway, South Carolina and Oak
Island, North Carolina and the acquisition of sites for new branch offices at
the intersection of Highways 9 and 57 in Longs, South Carolina, at the
intersection of Highways 544 and Singleton Ridge Road in Conway, South Carolina
and at Sayebrook Village West in Surfside Beach, South Carolina. These
activities are indicative of the continued growth and progress envisioned under
our Vision 2005 Plan and clearly indicate the progress we made during the third
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 $1.5 billion in assets, is a
federally chartered and FDIC insured Community bank with nineteen 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 http://www.coastalfederal.com/.
Stock Trading Information
The common stock of Coastal Financial Corporation is traded on the Nasdaq Stock
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. 2511, or Investor Relations.
Shareholder Services
Shareholders desiring to enroll in the Coastal Financial Corporation Dividend
Reinvestment Plan, change the name, address, or ownership of their stock
certificates, report lost or stolen certificates, or to consolidate accounts
should contact the Transfer Agent at 1-800-866-1340, Ext. 2511, 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 Coastal Financial Corporation's (the "Company") expectations or
beliefs concerning future events. Such forward-looking statements are about
matters that are inherently subject to risks and uncertainties. Factors that
could influence the matters discussed in certain forward-looking statements
include the timing and amount of revenues that may be recognized by the
Company, continuation of current revenue and expense trends (including trends
affecting charge-offs), absence of unforeseen changes in the Company's markets,
legal and regulatory changes, and general changes in the economy (particularly
in the markets served by the Company). Because of the risks and uncertainties
inherent in forward looking statements, readers are cautioned not to place
undue reliance on them, whether included in this news release or made elsewhere
from time to time by the Company or on its behalf. The Company disclaims any
obligation to update such forward-looking statements.
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
Three Months Ended Nine Months Ended
June 30, June 30, Percentage June 30, June 30, Percentage
2005 2004 Change 2005 2004 Change
Interest Income $20,337 $16,661 22.06% $57,195 $48,352 18.29%
Interest Expense 7,831 5,892 32.91% 21,278 17,466 21.83%
Net Interest
Income 12,506 10,769 16.13% 35,917 30,886 16.29%
Provision for
Loan Losses 550 200 175.00% 1,525 1,250 22.00%
Net Interest Income
After Provision
for Loan Losses 11,956 10,569 13.12% 34,392 29,636 16.05%
Other Income * 3,101 2,121 46.20% 9,204 6,879 33.80%
General &
Administrative
Expenses ** 8,420 6,773 24.32% 24,520 20,118 21.88%
Earnings Before
Taxes 6,637 5,917 12.17% 19,076 16,397 16.34%
Income Taxes 2,281 2,018 13.03% 6,541 5,502 18.88%
Net Income $4,356 $3,899 11.72% $12,535 $10,895 15.05%
Basic $0.25 $0.22 13.64% $0.71 $0.63 12.70%
Diluted $0.23 $0.21 9.52% $0.68 $0.60 13.33%
Average Common Shares
Outstanding
Basic
(in thousands) 17,657 17,430 1.30% 17,558 17,293 1.53%
Average Common Shares
Outstanding
Diluted
(in thousands) 18,634 18,356 1.51% 18,545 18,266 1.53%
Net Interest
Margin 3.71% 3.64% 1.92% 3.68% 3.58% 2.79%
Return on
Average Assets 1.19% 1.23% -3.25% 1.19% 1.17% 1.71%
Return on
Average Equity 18.80% 19.60% -4.08% 18.56% 18.80% -1.28%
* Gains (losses) on sales of securities of ($127,000) and $279,000 are
included in other income for the quarter and nine months ended
June 30, 2005 respectively. For the quarter and nine months ended
June 30, 2004, losses were $440,000 and $707,000, respectively.
** The Company did not incur any prepayment penalties on FHLB advances
for the quarter and nine months ended June 30, 2005. For the quarter
and nine months ended June 30, 2004, prepayment penalties, which are
included in general and administrative expenses were zero and $77,000,
respectively.
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
(CONTINUED)
Percentage
At At At Change from
June 30, Sept 30, June 30, September 30,
2005 2004 2004 2004
Total Assets $1,486,058 $1,305,485 $1,279,877 13.83%
Loans Receivable, Net $911,828 $798,976 $784,083 14.12%
Customer Deposits(1) $882,117 $753,379 $763,990 17.09%
Shareholders' Equity $95,829 $85,348 $78,122 12.28%
Non-Performing Assets
To Total Assets(2) 0.29% 0.51% 0.46% -43.14%
Allowance for Loan
Losses as a Percentage
of Total Loans 1.30% 1.39% 1.38% -6.47%
Tangible Book Value
Per Share $5.42 $4.88 $4.48 11.07%
(1) Customer deposits exclude brokered deposits. Brokered deposits were
$125,489 at June 30, 2005. There were no brokered deposits at
September 30, 2004 or June 30, 2004.
(2) Non-performing assets consist of nonaccrual loans 90 days or more
past due and real estate owned.
At or for the
Three Months Ended
June 30, September 30, Percentage
2005 2004 Change
Credit Quality:
Non-Performing Loans $3,768 $5,856 -35.66%
Non-Performing Loans
as a % of Loans 0.41% 0.73% -43.84%
Allowance for Loan Losses as
a % of Non-Performing Loans 314.58% 189.16% 66.30%
Non-Performing Assets (2) $4,290 $6,641 -35.40%
Non-Performing Assets as a
% of Loans and
Foreclosed Property 0.47% 0.83% -43.37%
Net Loan Charge-Offs
as a % of Average
Loans (Annualized) 0.21% 0.13% 61.54%
Stock Performance
At Quarter End:
Mkt. Price Per Share
of Common Stock $14.65 $13.14 11.49%
Indicated Annual Dividend $0.20 $0.18 11.11%
Dividend Yield 1.37% 1.38% -0.72%
Price/Book Ratio 270% 269% 0.37%
Market Capitalization $258,840 $229,713 12.68%
DATASOURCE: Coastal Financial Corporation
CONTACT: Susan J. Cooke, Senior Vice President and Secretary of Coastal
Financial Corporation, +1-843-205-2676
Web site: http://www.coastalfederal.com/