Coastal Financial (NASDAQ:CFCP)
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Coastal Financial Corporation (NASDAQ:CFCP) today
announced earnings for the second fiscal quarter ended March 31, 2006.
Net income for the second quarter of fiscal 2006 increased 12.3%
to $4.6 million or $0.24 per share ($0.23 per share diluted), as
compared to $4.1 million or $0.21 per share ($0.20 per share diluted)
for the same period of fiscal 2005.
Net income for the first two quarters of fiscal 2006 increased
11.1% to $9.1 million or $0.47 per share ($0.45 per share diluted),
compared to $8.2 million or $0.42 per share ($0.40 per share diluted)
for the same period of fiscal 2005.
At March 31, 2006, assets totaled $1.64 billion, an increase of
13.5% from $1.45 billion at March 31, 2005. During the same period,
Customer Deposits increased 10.7%, from $804.7 million to $891.1
million, and loans receivable increased 16.6%, from $864.4 million to
$1.0 billion. In comparing the second quarters of fiscal 2005 and
2006, net interest income after provision for loan losses grew 13.9%
to $12.8 million. Returns on average assets and average equity were
1.14% and 18.4%, respectively, for the six months ended March 31,
2006, as compared to 1.19% and 18.6% for the comparable period in
fiscal 2005.
At March 31, 2006, non-performing assets to total assets was 0.26%
as compared with 0.53% at March 31, 2005.
Michael C. Gerald, President and Chief Executive Officer of
Coastal Financial Corporation, said, "We are very pleased with the
continued earnings momentum of Coastal Financial Corporation for the
first two quarters of fiscal 2006. This continued level of operating
performance reflects well on our Commitment to our Customers and
Communities, and to our steadfast dedication to our QUEST FOR
EXCELLENCE Business Model."
"During the second quarter of fiscal 2006, we announced a 9.8%
increase in fiscal 2006 first quarter net income, and a $.05 per share
cash dividend payable April 14, 2006 to Shareholders of record March
31, 2006. Other notable events include the nearing of completion of
our new prototype branch offices at the intersection of Hwy 701 and
Country Club Drive in Conway, South Carolina, 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. These
results and activities are indicative of the continued growth and
progress envisioned under our QUEST FOR EXCELLENCE Business Model,"
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 assets over $1.6 billion, is a federally chartered
and FDIC insured community bank with twenty-two 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 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 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. 2514, 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 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 report 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
report. 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.
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COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
Three Months Ended
March 31, March 31, Percentage
2006 2005 Change
Interest Income $ 24,138 $ 18,912 27.63%
Interest Expense 10,970 7,016 56.36%
Net Interest Income 13,168 11,896 10.69%
Provision for Loan Losses 330 625 -47.20%
Net Interest Income After
Provision for Loan Losses 12,838 11,271 13.90%
Other Income/a 4,201 3,336 25.93%
General & Administrative
Expenses 9,926 8,319 19.32%
Earnings Before Taxes 7,113 6,288 13.12%
Income Taxes 2,469 2,153 14.68%
Net Income $ 4,644 $ 4,135 12.31%
Earnings Per Common Share
Basic $ 0.24 $ 0.21 14.29%
Diluted $ 0.23 $ 0.20 15.00%
Average Common Shares
Outstanding
Basic (in thousands) 19,547 19,362 0.96%
Average Common Shares
Outstanding
Diluted (in thousands) 20,440 20,524 -0.41%
Net Interest Margin 3.57% 3.68% -2.99%
Return on Average Assets 1.15% 1.17% -1.71%
Return on Average Equity 18.63% 18.48% 0.81%
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
Six Months Ended
March 31, March 31, Percentage
2006 2005 Change
Interest Income $47,176 $36,858 27.99%
Interest Expense 20,732 13,446 54.19%
Net Interest Income 26,444 23,412 12.95%
Provision for Loan Losses 730 975 -25.13%
Net Interest Income After
Provision for Loan Losses 25,714 22,437 14.61%
Other Income/a 7,790 6,102 27.66%
General & Administrative Expenses 19,606 16,100 21.78%
Earnings Before Taxes 13,898 12,439 11.73%
Income Taxes 4,810 4,260 12.91%
Net Income $ 9,088 $ 8,179 11.11%
Earnings Per Common Share
Basic $ 0.47 $ 0.42 11.90%
Diluted $ 0.45 $ 0.40 12.50%
Average Common Shares Outstanding
Basic (in thousands) 19,488 19,278 1.09%
Average Common Shares Outstanding
Diluted (in thousands) 20,380 20,367 0.06%
Net Interest Margin 3.64% 3.67% -0.82%
Return on Average Assets 1.14% 1.19% -4.20%
Return on Average Equity 18.38% 18.57% -1.02%
/a: Gains (losses) on sales of securities of $30,000 and ($16,000)
are included in other income for the quarter and six months ended
March 31, 2006, respectively. For the quarter and six months ended
March 31, 2005, gains on sales of securities were $248,000 and
$406,000, respectively.
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
Percentage
Change
At At At from
March 31, Sept. 30, March 31, Sept. 30,
2006 2005 2005 2005
--------- -------- -------- --------
Total Assets (1) $1,643,991 $1,543,459 $1,448,158 6.51%
Loans Receivable, Net $1,008,168 $ 942,381 $ 864,407 6.98%
Customer Deposits (1)(2) $ 891,136 $ 901,013 $ 804,656 -1.10%
Shareholders' Equity $ 100,209 $ 97,221 $ 89,534 3.07%
Non-Performing Assets
to Total Assets (3) 0.26% 0.22% 0.53% 18.18%
Allowance for Loan
Losses as a Percentage of
Total Net Loans 1.21% 1.25% 1.36% -3.20%
Tangible Book Value
Per Share $ 5.12 $ 5.00 $ 4.61 2.40%
At or At or
For The For The
Three Months Three Months
Ended Ended
March 31, Sept. 30, Percentage
2006 2005 Change
.................................
Credit Quality:
Non-Performing Loans $ 3,137 $ 2,641 18.78%
Non-Performing Loans as a % of
Loans 0.31% 0.28% 10.71%
Allowance for Loan Losses as a %
of Non-Performing Loans 389.12% 444.83% -12.52%
Non-Performing Assets (3) $ 4,258 $ 3,459 23.10%
Non-Performing Assets as a % of
Loans and Foreclosed Property 0.42% 0.37% 13.51%
Net Loan Charge-Offs
as a % of Average Loans
(Annualized) 0.05% 0.12% -58.33%
Stock Performance
At quarter end:
Market Price Per Share of Common
Stock $ 13.76 $ 13.65 0.81%
Indicated Annual Dividend $ 0.20 $ 0.18 11.11%
Dividend Yield 1.45% 1.32% 9.85%
Price/Book Ratio 269.00% 273.00% -1.47%
Market Capitalization $269,464 $265,689 1.42%
(1) Total Assets and Customer Deposits in prior periods have been
reclassified to conform to the March 31, 2006 presentation.
(2) Customer Deposits exclude brokered deposits. Brokered deposits
were $189,304, $169,905 and $85,625 at March 31, 2006, September 30,
2005 and March 31, 2005, respectively.
(3) Non-performing assets consist of non-accrual loans 90 days or
more past due and real estate owned.
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