Coastal Financial (NASDAQ:CFCP)
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Coastal Financial Corporation (NASDAQ:CFCP) today announced earnings for
the first fiscal quarter ended December 31, 2006.
Net income for the first quarter of fiscal 2007 increased 9.9% to $4.9
million or $0.23 per share ($0.22 per share diluted), as compared to
$4.4 million or $0.21 per share ($0.20 per share diluted) for the same
period of fiscal 2006.
At December 31, 2006, assets totaled $1.66 billion, an increase of 5.1%
from $1.58 billion at December 31, 2005. During the same period,
Customer Deposits (excluding brokered deposits) increased 3.5%, from
$861.7 million to $891.4 million, and net loans receivable increased
11.1%, from $981.9 million to $1.1 billion. In comparing the first
quarters of fiscal 2006 and 2007, net interest income after provision
for loan losses grew 5.9% to $13.6 million.
Returns on average assets and average equity were 1.18% and 17.1%,
respectively, for the three months ended December 31, 2006, as compared
to 1.14% and 18.1% for the comparable period in fiscal 2006.
At December 31, 2006, asset quality continued to be good with
non-performing assets to total assets of 0.33% as compared with 0.31% at
December 31, 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 the first quarter of fiscal 2007,
particularly given the strong competition for deposits and loans and
difficult interest rate environment.”
“During the first quarter of fiscal 2007, we
announced a $.05 per share cash dividend, an 11.8% increase in fiscal
2006 diluted per share net income, and the signing of a definitive
merger agreement with BB&T Corporation.”
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 of $1.7 billion, 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
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 to
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.
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
Three Months Ended
Dec. 31,
Dec. 31,
Percentage Change
2006
2005
Interest Income
$
27,398
$
23,038
18.93%
Interest Expense
13,533
9,762
38.63%
Net Interest Income
13,865
13,276
4.44%
Provision for Loan Losses
225
400
-43.75%
Net Interest Income After
Provision for Loan Losses
13,640
12,876
5.93%
Other Income (1)
5,030
3,588
40.19%
General & Administrative Expenses (2)
11,250
9,680
16.22%
Earnings Before Taxes
7,420
6,784
9.38%
Income Taxes
2,539
2,341
8.46%
Net Income
$
4,881
$
4,443
9.86%
Earnings Per Common Share (3) (4)
Basic
$
0.23
$
0.21
9.52%
Diluted
$
0.22
$
0.20
10.00%
Average Common Shares Outstanding (3) (4)
Basic (in thousands)
21,698
21,420
1.30%
Average Common Shares Outstanding
Diluted (in thousands)
22,408
22,133
1.24%
Net Interest Margin
3.54%
3.70%
-4.32%
Return on Average Assets
1.18%
1.14%
3.51%
Return on Average Equity
17.07%
18.10%
-5.69%
(1) Gains (losses) on sales of securities of $25 and ($46) are
included in other income for the quarter ended December 31, 2006
and 2005, respectively.
(2) Expenses related to the merger totaled approximately $390 at
December 31, 2006.
(3) Earnings per share and average common shares outstanding for
the quarter ended December 31, 2005 have been computed to conform
to the alternative transition method as provided under FSP FAS 123
R-3 "Transition Election Related to Accounting for the Tax Effects
of Share-Based Payment Awards," adopted by the Company effective
October 1, 2006.
(4) All share and per share data have been retroactively restated
for all common stock dividends.
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
(CONTINUED)
Percentage
Change from
At
Dec. 31,
At
Sept. 30,
At
Dec. 31,
Sept. 30,
2006
2006
2005
2006
Total Assets
$
1,660,925
$
1,659,475
$
1,581,054
0.09%
Loans Receivable, Net
$
1,090,952
$
1,090,084
$
981,871
0.08%
Customer Deposits (1)
$
891,428
$
909,788
$
861,661
-2.02%
Shareholders' Equity
$
115,972
$
112,824
$
99,208
2.79%
Non-Performing Assets to Total Assets (2)
0.33%
0.21%
0.31%
57.14%
Allowance for Loan Losses as a Percentage of Total Net Loans
1.17%
1.17%
1.22%
n/a
Tangible Book Value Per Share
$
5.34
$
5.20
$
4.63
2.69%
At or for the
Three Months
Ended
At or for the
Three Months
Ended
Dec. 31,
Sept. 30,
Percentage
2006
2006
Change
Credit Quality:
Non-Performing Loans
$
5,008
$
2,990
67.49%
Non-Performing Loans as a % of Loans
0.46%
0.27%
70.37%
Allowance for Loan Losses as a % of
Non-Performing Loans
254.92%
425.67%
-40.11%
Non-Performing Assets
$
5,552
$
3,561
55.91%
Non-Performing Assets as a % of Loans and Foreclosed Property
0.51%
0.33%
54.55%
Net Loan Charge-Offs as a % of Average Loans (Annualized)
0.07%
0.02%
250.00%
Stock Performance
At quarter end:
Market Price Per Share of Common Stock
$
16.75
$
12.60
32.94%
Indicated Annual Dividend
$
0.20
$
0.20
n/a
Dividend Yield
1.19%
1.59%
-25.16%
Price/Book Ratio
314.00%
242.00%
29.75%
Market Capitalization
$
363,764
$
273,250
33.12%
(1) Customer Deposits exclude brokered deposits. Brokered deposits
were $169,539, $153,317 and $195,536 at December 31, 2006, September
30, 2006 and December 31, 2005, respectively.
(2) Non-performing assets consist of non-accrual loans, generally
90 days or more past due, and real estate owned.