Coastal Financial Corporation · NASDAQ:CCB
Coastal Financial — Investor Presentation (November 2020)
25 slides from Coastal Financial's investor presentation, Nov 2, 2020
Slide 1: Investor Presentation
Investor Presentation Dated October 30, 2020 Exhibit 99.1
Slide 2: Legal Information and Disclaimer
Legal Information and Disclaimer This presentation and oral statements made regarding the subject of this presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Coastal Financial Corporation
Slide 3: Three Prong Long-Term Strategy Driving Value for Shareholders
Three Prong Long-Term Strategy Driving Value for Shareholders – 3 Prong Strategy The Community Bank (CCB) Provide Banking as a Service (BaaS) (CCBX) Coastal’s Digital Bank (CCBD) Compliance Operational Integrity No matter how we talk to our customers or what type of customer, Compliance and Operatio
Slide 4: Coastal Community Bank established in 1997, focused on small to medium-sized businesses
Coastal Community Bank was established in 1997 with a focus on serving small to medium-sized businesses within the Puget Sound region Dedicated to community banking 2014-2020 Recipient of the prestigious “5-Star Rating” from BauerFinancial, Inc. Stanwood & Camano News “Best Bank” (7 years in a row)
Slide 5: Financial Highlights
Core Deposits (2) Financial Highlights Total Assets Note: Annual data as of or for the year ended December 31 of each respective year (2) Consists of total deposits less all time deposits, BaaS, and brokered deposits (3) 2017 net income is adjusted to exclude the impact of a deferred tax asset reval
Slide 6: COVID-19 Response – PPP Loans
COVID-19 Response – PPP Loans As a preferred Small Business Administration (“SBA”) lender, we have funded $452.8 million in financial assistance to existing and new small business customers via the Paycheck Protection Program (“PPP”) as provided in the Coronavirus Aid, Relief and Economic Security A
Slide 7: COVID-19 Response – Loan Modifications
COVID-19 Response – Loan Modifications Modifications to Total Loan Loan Modifications By Industry(1) Total Deferrals by Ending Date1) Status of All Deferred Loans(1) Deferral balances reflect deferrals still remaining as of September 30,2020
Slide 8: Core Markets – Snohomish County
Core Markets – Snohomish County Largest Locally HQ’d Bank in Snohomish County Notable Employers Source: S&P Global Market Intelligence; FDIC’s Summary of Deposits as of June 30, 2020 Total Deposits in Market for Coastal Financial Corporation are $1.1 billion at September 30, 2020 (2) Puget Sound Reg
Slide 9: Employee Leadership in Non-Profit Organizations
Employee Leadership in Non-Profit Organizations Know our markets and our customers Meaningfully contribute to communities we serve #1 Contributor of Service Hours per Employee Basic Principles of Community Banking Coastal employees contributed the most community service hours per employee in 2017 as
Slide 10: Loan Composition
Loan Composition Loan Composition Loan Concentrations by County 61.0% of loans (measured by dollar amount outstanding) were secured by real estate, and 88% were made to borrowers who live or conduct business, in the Puget Sound region $31.8 million legal lending limit as of September 30, 2020 Commer
Slide 11: Deposit Composition
Deposit Composition Deposit Composition Core Deposit Driven Funding Core Deposit Franchise We define core deposits as total deposits less time deposits, BaaS deposits, and brokered deposits 84.2% of total loans were funded with core deposits as of September 30, 2020 Core deposits were 93.4% of total
Slide 12: Strong Asset Quality
Strong Asset Quality Asset Quality Trends NPAs / Assets (%), NPLs / Loans (%) and NCOs / Avg. Loans (%) Allowance for Loan Losses (“ALLL”) / NPLs (%) Note: Data as of and for the year ended December 31 of each respective year unless noted otherwise
Slide 13: Historic Profitability and Efficiency
Historic Profitability and Efficiency Net Income and Return on Average Assets (assets for Q3 2020 include $452.8 million in PPP loans) Net Income ($mm) Efficiency Ratio (%) and Noninterest Expense (“NIE”) to Average Assets (%) (assets for Q3 2020 include $452.8 million in PPP loans) ROAA(%) Efficien
Slide 14: Recent Developments – 2020 Q3 Financial Results
Recent Developments 2020 Q3 Financial Results: Balance Sheet As of the quarter ended (Dollars in millions, except per share amounts) September 30, 2020 June 30, 2020 September 30, 2019 Total Assets $1,749.6 (1) $1,679.0 (1) $1,090.1 Total Loans (1) $1,509.4 (1) $1,447.1 $874.1 Total Deposits $1,360.
Slide 15: CCBX Banking as a Service Division
CCBX Division introduced January 27, 2020. Provides Banking as a Service (“BaaS”) enabling broker dealers and digital financial service providers to offer their clients banking services. The “X” is indicative of the technology services that our partners provide. Fintech Partners – As of September 30
Slide 16: Coastal's Digital Bank Through Collaboration With Google
Coastal’s Digital Bank Through Collaboration With Google Coastal’s collaboration with Google is anticipated to be a great avenue for us to reach existing customers, our communities, and expand to new communities in the coming years. We expect that the new platform will provide customers with an enha
Slide 17: Appendix
Appendix Cc COMMUNITY BANK’
Slide 18: Selected Year-End Financials
Selected Year-End Financials Refer to “Non-GAAP Reconciliation” in this Appendix for additional details. Share and per share amounts are based on total common shares outstanding, which includes common stock and nonvoting common stock. Tangible book value per share is a non-GAAP measure. Since there
Slide 19: Non-GAAP Reconciliation – 2017 Adjusted Measures
Non-GAAP Reconciliation – 2017 Adjusted Measures Some of the financial measures included in this presentation are not measures of financial performance recognized by GAAP. Our management uses the non-GAAP financial measures set forth below in its analysis of our performance for 2017 to exclude the i
Slide 20: Selected Quarterly Financials
Selected Quarterly Financials Share and per share amounts are based on total common shares outstanding, which includes common stock and nonvoting common stock. Tangible book value per share is a non-GAAP measure. Since there is no goodwill or other intangible assets as of the dates indicated, tangib
Slide 21: Non-GAAP Reconciliation – Pre-Tax, Pre-Provision
Non-GAAP Reconciliation – Pre-Tax, Pre-Provision Some of the financial measures included in this presentation are not measures of financial performance recognized by GAAP. The following non-GAAP measures are presented to illustrate the impact of provision for loan losses and provision for income tax
Slide 22: Non-GAAP Reconciliation – 2020 PPP Loans Impact
Non-GAAP Reconciliation – 2020 PPP Loans Impact The following non-GAAP financial measures are presented to illustrate and identify the impact of PPP loans, PPPLF borrowings, customer deposits from PPP loans, and related earnings and expenses. By removing these significant items and show what the res
Slide 23: Diverse Loan Portfolio
Diverse Loan Portfolio CRE Loan Breakdown as % of Total Outstanding Balances and Available Commitments (Excludes PPP Loans) C&I Loan Breakdown as % of Total Outstanding Balances and Available Commitments (Excludes PPP Loans) Construction/Land Loan Breakdown as % of Total Outstanding Balances and Ava
Slide 24: Loan Portfolio Statistics
Loan Portfolio Statistics (1) (1) (2) (2) (3) (3) Based on best available data. If a loan has multiple guarantors, FICO score represented is highest of the guarantors. FICO scores are based off origination unless updated through annual term loan review or other credit action. Loan to Value (“LTV”) d
Slide 25: COVID-19 Update – Washington's Phase Recovery Approach
COVID-19 Update – Washington’s Phase Recovery Approach (1) (1) As of October 27, 2020 Source: https://www.governor.wa.gov/sites/default/files/SafeStartPhasedReopening.pdf Phase 2: King, Kitsap, Pierce, Skagit, and Snohomish Phase 3: Island and Thurston
Coastal Financial — Investor Presentation (November 2020) on 6ix