Coastal Financial Corporation · NASDAQ:CCB
Coastal Financial — Investor Presentation (April 2022)
29 slides from Coastal Financial's investor presentation, Apr 27, 2022
Slide 1: Investor Presentation
April 27, 2022 INVESTOR PRESENTATION 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: Long-Term Strategic Verticals
LONG-TERM STRATEGIC VERTICALS The Community Bank “CCB” Provide Banking as a Service (BaaS) “CCBX” Best-in-class community bank that offers lending and deposit products to commercial customers Community bank loan portfolio consists primarily of CRE(1) and C&I loans $1.27 billion; 87% of community ban
Slide 4: Consolidated Financial Highlights
Core Deposits (3) CONSOLIDATED FINANCIAL HIGHLIGHTS - As of and for the Quarter ended March 31, 2022 Total Assets Note: Annual data as of or for the year ended December 31 of each respective year Total Loans Net Income Tangible equity to tangible assets is a non-GAAP measure. Since there is no goodw
Slide 5: Environmental, Social and Governance (ESG) Initiatives
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ("ESG") INITIATIVES Source: National Survey of Unbanked and Underbanked Households by the Federal Deposit Insurance Corporation (FDIC) in June 2021. For Coastal, ESG is a complex initiative across the whole organization. Addressing the issue of the 14.1 million u
Slide 6: CCB Overview
Coastal Community Bank was established in 1997 with a focus on serving small to medium-sized businesses within the Puget Sound region. Offers traditional lending and deposit products to commercial and retail customers Lending products: Commercial real estate, Small Business Administration (“SBA”), b
Slide 7: CCBX Partner and Revenue Growth
CCBX PARTNER AND REVENUE GROWTH CCBX provides banking as a service (BaaS) that enables broker dealers and digital financial services partners to offer their customers banking services 20 active partners with 8 more currently in the implementation / onboarding or signed LOI stage as of March 31, 2022
Slide 8: Growth in CCBX Activity Based Income
GROWTH IN CCBX ACTIVITY BASED INCOME CCBX TRANSACTION AND INTERCHANGE INCOME (Dollars in thousands)
Slide 9: CCBX Loans and Deposits
CCBX Loans and Deposits Growing platform for low-cost deposit generation Deposit growth of $183.2 million, or 25.6%, as of March 31, 2022, compared to December 31, 2021, and $760.4 million, or 546.8%, compared to March 31, 2021 Access to $276.4 million in CCBX deposits that are transferred off the b
Slide 10: Robust Sourcing Capabilities and Partnering
ROBUST SOURCING CAPABILITIES AND PARTNERING Involve board members Fintech experts and partners Integrate Coastal LPs Thesis-Driven Sourcing Due Diligence Onboarding to Date Intensive Filtering Focused points of view and research with experts Proactive market mapping and product identification Divers
Slide 11: Historic Profitability and Efficiency
HISTORIC PROFITABILITY AND EFFICIENCY Net Income and Return on Average Assets (average assets for QE March 31, 2022 includes $79.8 million in average PPP loans) Net Income ($mm) Efficiency Ratio (%) and Noninterest Expense (“NIE”) to Average Assets (%) (average assets for QE March 31, 2022 includes
Slide 12: Loan Composition
LOAN COMPOSITION Consolidated Loan Composition Community Bank Loan Concentrations by County Consolidated Commercial & Industrial (“C&I”) Portfolio $394.3 million total C&I loans $218.7 million in capital call lines $47.5 million in PPP Small Business Administration (“SBA”) C&I loans $123.8 million i
Slide 13: Deposit Composition
DEPOSIT COMPOSITION Deposit Composition Core Deposit Driven Funding Emphasis on core deposits has helped generate an attractive funding mix Core deposits are all deposits excluding time deposits and brokered deposits Core deposits were 125.3% of total loans as of March 31, 2022 Core deposits were 95
Slide 14: Segment Overview - Community Bank and CCBX
SEGMENT OVERVIEW - Community Bank and CCBX (1) CCBX Gross does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancement and servicing CCBX loans. To determine net revenue (Net BaaS loan income) earned from CCBX loan relat
Slide 15: Strong Asset Quality
STRONG ASSET QUALITY (1) These ratios are impacted by the increase in CCBX loans over 90 days delinquent that are covered by CCBX partner credit enhancements, see note below for more information. (2) Agreements with our CCBX partners provide for a credit enhancement which protects the Bank by absorb
Slide 16: COVID-19 Response – PPP Loans
COVID-19 RESPONSE – PPP LOANS PPP loans: We funded a total of $763.9 million in assistance to existing and new small business customers in 2020 and 2021 As of March 31, 2022, we have $47.5 million in PPP loans outstanding Repaid the Paycheck Protection Program Liquidity Facility (“PPPLF”) as of June
Slide 17: COVID-19 Response – PPP Loans: Balances Over Time
COVID-19 RESPONSE – PPP LOANS PPP Balances Over Time
Slide 18: CFC Loan and Deposit Growth
CFC LOAN AND DEPOSIT GROWTH Loan Growth of $221.5 million or 12.7% from December 31, 2021 Reclassified $690.4 million in CCBX deposits from noninterest bearing to interest bearing in 1Q2022(1) (Dollars in thousands) (Dollars in thousands) CCBX Deposit Growth of $183.2* million or 25.6% from December
Slide 19: CFC Quarterly Results
CFC QUARTERLY RESULTS 1Q 2022 Financial Results: (1) Earnings per share is impacted by capital raise completed in December 2021, which increased the total number of shares outstanding. (2) ROA for the quarter ended March 31, 2022 was affected by a $648.6 million increase in liquidity which increased
Slide 20: Diversity, Equity, and Inclusion (DEI) and ESG Initiatives
DIVERSITY, EQUITY, AND INCLUSION (DEI) AND ESG INITIATIVES Young Adults ESG Immigrants Underserved Small Business Black Women Latinx Asian Muslim
Slide 21: Appendix
APPENDIX i coastat 2:
Slide 22: CFC Selected Year-End Financials
CFC 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. Tangible book value per share is a non-GAAP measure. Since there is no goodwill or other
Slide 23: CFC Selected Quarterly Financials
CFC SELECTED QUARTERLY FINANCIALS Core deposits are defined as all deposits excluding time and brokered deposits. 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. Sin
Slide 24: Community Bank - Diverse Loan Portfolio: Commercial Real Estate
COMMUNITY BANK - DIVERSE LOAN PORTFOLIO Commercial Real Estate $889.5 million Outstanding Balance $28.9 million Available Loan Commitment $1.5 million Average Loan Balance 26.6% % of Loans Receivable (Total Outstanding Balances and Available Commitments) Excludes PPP Loans Note: Data as of and for t
Slide 25: Community Bank - Diverse Loan Portfolio: Construction and Land
COMMUNITY BANK - DIVERSE LOAN PORTFOLIO Note: Data as of and for the quarter ended March 31, 2022, unless otherwise indicated Construction, Land and Land Development $208.1 million Outstanding Balance $116.8 million Available Loan Commitment $1.5 million Average Loan Balance 9.4% % of Loans Receivab
Slide 26: Community Bank Loan Portfolio Statistics
COMMUNITY BANK LOAN PORTFOLIO STATISTICS (1) (1) (2) (2) (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 Valu
Slide 27: Asset-Sensitive Balance Sheet
ASSET-SENSITIVE BALANCE SHEET Bank will Benefit when Rates Increase Asset sensitive 32% of our assets reprice within 3 months as of March 31, 2022, up from 21% at March 31, 2021 2.37 years weighted average reprice 6.59 years weighted average maturity Loan Strategy: shorter term loans interest rate s
Slide 28: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS The following non-GAAP financial measures are presented to illustrate and identify the impact of PPP loans on Tier 1 Capital, we are providing investors with this information to better compare results with periods that did not have these significant impacts. These measures i
Slide 29: 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
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