Coastal Financial Corporation · NASDAQ:CCB
Coastal Financial — Q4 2020 Earnings Presentation
25 slides from Coastal Financial's earnings presentation, Jan 28, 2021
Slide 1: Investor Presentation
January 27, 2021 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: 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 (CCDB) Compliance Operational Integrity No matter how we talk to our customers or what type of customer, Compliance and Operatio
Slide 4: Corporate Overview
Coastal Community Bank was established in 1997 with a focus on serving small to medium-sized businesses within the Puget Sound region Headquarters Everett, Washington – the largest city in and county seat of Snohomish County Branches 15 full-service banking locations 12 in Snohomish County Opened Ar
Slide 5: Financial Highlights
Core Deposits (3) Financial Highlights Total Assets Note: Annual data as of or for the year ended December 31 of each respective year (3) Consists of total deposits less all time deposits, BaaS-brokered deposits (4) 2017 net income is adjusted to exclude the impact of a deferred tax asset revaluatio
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 in Round One and Two of the Paycheck Protection Program (“PPP”) as provided in the Coronavirus Aid, Relief and
Slide 7: COVID-19 Response – Loan Modifications
COVID-19 Response – Loan Modifications Modifications to Total Loan Total Deferrals by Ending Date(1) Status of All Deferred Loans(1) Deferral balances reflect deferrals still remaining as of December 31,2020 Total of $233.9 million, or 247 loans, have been on deferred or modified status since beginn
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 $1.2 billion at December 31, 2020 (2) Puget Sound Regi
Slide 9: Loan Composition
Loan Composition Loan Composition Loan Concentrations by County 65.1% of loans (measured by dollar amount outstanding) were secured by real estate, and 87.2% were made to borrowers who live or conduct business, in the Puget Sound region $33.3 million legal lending limit as of December 31, 2020 Comme
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 and BaaS-brokered deposits 85.8% of total loans were funded with core deposits as of December 31, 2020 Core deposits were 93.4% of total deposits as
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 YE 2020 include $365.8 million in PPP loans) Net Income ($mm) Efficiency Ratio (%) and Noninterest Expense (“NIE”) to Average Assets (%) (assets for YE 2020 include $365.8 million in PPP loans) ROAA(%) Efficien
Slide 13: Recent Developments
Recent Developments 2020 Q4 Financial Results: (1) Includes $365.8 million in PPP loans in the fourth quarter of 2020 and $452.8 million in PPP loans in the third quarter of 2020 (2) Pre-Tax, Pre-Provision return on average assets is a non-GAAP measure that excludes the impact of the provision for i
Slide 14: CCBX – 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 banking services to their communities. The “X” is indicative of the technology services that our partners provide. Infrastructure – We hired supp
Slide 15: CCDB - Coastal's Digital Bank Through Collaboration With Google
CCDB - 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
Slide 16: Appendix
Appendix
Slide 17: 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 18: Selected Quarterly Financials
Selected Quarterly Financials Core deposits are defined as all deposits excluding time deposits, BaaS-brokered. 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
Slide 19: Diverse Loan Portfolio
Diverse Loan Portfolio CRE Loan Breakdown as % of Total Outstanding Balances and Available Commitments (Excludes PPP Loans) Represents 52.7% of Total C&I Loan Breakdown as % of Total Outstanding Balances and Available Commitments (Excludes PPP Loans) Represents 24.1% of Total Construction/Land Loan
Slide 20: 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 21: COVID-19 Update – Washington's Roadmap to Recovery
COVID-19 Update – Washington’s Roadmap to Recovery (1) (1) As of January 15, 2021 Source: https://www.governor.wa.gov/sites/default/files/HealthyWashington.pdf All Washington Counties are currently in Phase 1 Counties are grouped into regional areas and will move to the next Phase together as one un
Slide 22: Non-GAAP Reconciliation – 2020 PPP Loans Impact
Non-GAAP Reconciliation – 2020 PPP Loans Impact These 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 results wou
Slide 23: Non-GAAP Reconciliation – 2020 PPP Loans Impact
Non-GAAP Reconciliation – 2020 PPP Loans Impact
Slide 24: 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 25: 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