Coastal Financial Corporation · NASDAQ:CCB
Coastal Financial — Q2 2020 Earnings Presentation
23 slides from Coastal Financial's earnings presentation, Jul 28, 2020
Slide 1: Investor Presentation
Investor Presentation Dated July 27, 2020 New Arlington branch Opened in June 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’s current views with
Slide 3: Corporate Overview
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 4: 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 5: COVID-19 Response – PPP Loans
COVID-19 Response – PPP Loans As a preferred Small Business Administration (“SBA”) lender, we have funded $438.1 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 6: COVID-19 Response – Loan Modifications
COVID-19 Response – Loan Modifications Modifications to Total Loan Loan Modifications By Industry(1,2) First Payment Due After Deferral(1) Types of Loan Deferrals(1) Maturity Extensions(1) Deferral balances reflect deferrals still remaining as of June 30,2020 None of the individual industry types in
Slide 7: 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, 2019 Total Deposits in Market for Coastal Financial Corporation are $1.1 billion at June 30, 2020 (2) Puget Sound Region S
Slide 8: 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 9: Loan Composition
Loan Composition Loan Composition Loan Concentrations by County 60.8% of loans (measured by dollar amount outstanding) were secured by real estate, and 87% were made to borrowers who live or conduct business, in the Puget Sound region $30.5 million legal lending limit as of June 30, 2020 Commercial
Slide 10: 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 83.8% of total loans were funded with core deposits as of June 30, 2020 Core deposits were 92.8% of total depo
Slide 11: 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 12: Historic Profitability and Efficiency
Historic Profitability and Efficiency Net Income and Return on Average Assets (assets for Q2 2020 include $438.1 million in PPP loans) Net Income ($mm) Efficiency Ratio (%) and Noninterest Expense (“NIE”) to Average Assets (%) (assets for Q2 2020 include $438.1 million in PPP loans) ROAA(%) Efficien
Slide 13: Recent Developments: 2020 Q2 Financial Results
Recent Developments 2020 Q2 Financial Results: Balance Sheet As of the quarter ended (Dollars in millions, except per share amounts) June 30, 2020 March 31, 2020 June 30, 2019 Total Assets (1) $1,679.0 $1,184.1 $1,031.0 Total Loans (1) $1,447.1 $1,005.2 $845.4 Total Deposits $1,306.4 $1,005.1 $868.1
Slide 14: CCBX Division – Banking as a Service
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 – We have three acti
Slide 15: Appendix
Appendix Cc COMMUNITY BANK’
Slide 16: 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 17: 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 18: 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 19: 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 20: 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 21: Diverse Loan Portfolio
Diverse Loan Portfolio CRE Loan Breakdown as % of Total Outstanding Balances and Available Commitments 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 Available Commitments
Slide 22: 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 23: COVID-19 Update – Washington's Phase Recovery Approach
COVID-19 Update – Washington’s Phase Recovery Approach (1) (1) As of July 20, 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