Business
Coastal Financial Corporation Announces First Quarter 2024 Results
First Quarter 2024 Highlights: Net income of $6.8 million, or $0.50 per diluted common share, for the three months ended March 31, 2024, compared to $9.0
About this update from Coastal Financial Corporation
[{"type":"text","content":"First Quarter 2024 Highlights: Net income of $6.8 million, or $0.50 per diluted common share, for the three months ended March 31, 2024, compared to $9.0 million, or $0.66 per diluted common share for the three months ended December 31, 2023 Return on average assets (\"ROA\") of 0.73% for the three months ended March 31, 2024, compared to 0.97% for the three months ended December 31, 2023.Return on average equity (\"ROE\") of 9.21% for the three months ended March 31, 2024 compared to 12.35% for the three months ended December 31, 2023. Net interest margin of 6.78% for the quarter ended March 31, 2024, compared to 6.61% for the quarter ended December 31, 2023.Continued investment in technology to build and enhance the BaaS infrastructure, increase automation, enhance operational efficiency and productivity requires significant upfront expense, but is necessary for long-term success.Decrease in net income driven by $2.3 million in unanticipated expenses, net of income tax, (more information is provided on these expenses later in this earnings release). Total assets increased $111.9 million, or 3.0%, to $3.87 billion for the quarter ended March 31, 2024, compared to $3.75 billion at December 31, 2023.Total loans, net of deferred fees increased $173.5 million, or 5.7%, to $3.20 billion for the quarter ended March 31, 2024 compared to the quarter ended December 31, 2023. Community bank loans increased $53.1 million, or 2.9%, to $1.88 billion. CCBX loans increased $120.3 million, or 10.1%, to $1.32 billion. Enhanced credit standards on new CCBX loan originations.Effective April 1, 2024, exposure was reduced from 10% to 5% on the CCBX portfolio that the Company is responsible for losses on. Total of $100.5 million CCBX loans sold during the quarter ended March 31, 2024 as management continued to sell loans as part of our strategy to reduce risk, optimize the CCBX loan portfolio and strengthen our balance sheet through enhanced credit standards. Deposits increased $102.6 million, or 3.1%, to $3.46 billion for the quarter ended March 31, 2024. CCBX deposit growth of $166.2 million, or 8.9%, to $2.03 billion. CCBX deposit growth excludes the $92.2 million in CCBX deposits that were transferred off balance sheet for increased Federal Deposit Insurance Corporation (\"FDIC\") insurance coverage purposes, compared to $69.4 million for the qu...