Coastal Financial Corporation · NASDAQ:CCB
Coastal Financial — Investor Presentation (May 2020)
28 slides from Coastal Financial's investor presentation, May 1, 2020
Slide 1: Investor Presentation Dated April 30, 2020
Investor Presentation Dated April 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’s current views with
Slide 3: Key Management
Key Management Eric Sprink President Chief Executive Officer 29 Years of Financial Services Experience 14 Years in the Puget Sound Region 14 Years at Coastal Joel Edwards Executive Vice President Chief Financial Officer 33 Years of Financial Services Experience 24 Years in the Puget Sound Region 7 Y
Slide 4: Coastal Community Bank 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 2019, 2018, 2017 & 2016 Recipient of the prestigious “5-Star Rating” from BauerFinancial, Inc. Stanwood & Camano News “Best Bank” (6 ye
Slide 5: Key Investment Highlights
Key Investment Highlights Source: S&P Global Market Intelligence; FDIC’s Summary of Deposits as of June 30,2019 Consists of total deposits less all time deposits, BaaS deposits, and brokered deposits as of March 31,2020 Premier Local Bank in the Puget Sound Region Scalable Operating Model with Consi
Slide 6: 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 and wholesale brokered deposits (3) 2017 net income is adjusted to exclude the impact of a deferred tax asset re
Slide 7: Core Markets – Snohomish County
Core Markets – Snohomish County Largest Locally HQ’d Bank in Snohomish County Notable Employers Median Household Income $85,758 per household in 2018, the second highest in Washington vs. $63,179 for the United States Unemployment Rate 5.8% as of March 2020 vs. 4.4% for the United States(1) Market D
Slide 8: Core Markets – Puget Sound Region
5 405 90 5 The Puget Sound region in the state of Washington encompasses the Seattle MSA, the metropolitan areas of Olympia, Bremerton and Mount Vernon, and Island County. We believe there is significant organic growth opportunities given the: 55% 61% 75% (%) of Washington population represented by
Slide 9: Scalable Operating Model
Scalable Operating Model Digital Banking Platform Leverage technology to deliver seamless services to our clients Average 6,000 digital deposits monthly, both consumer and commercial remote deposit capture Scale across Puget Sound region with limited branch locations We complement our traditional br
Slide 10: Community involvement and service
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 11: Loan Composition
Loan Composition Loan Composition Loan Concentrations by County 86.4% 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 $29.3 million legal lending limit as of March 31, 2020 Commercial
Slide 12: Deposit Composition
Deposit Composition Deposit Composition Core Deposit Driven Funding Core Deposit Franchise We define core deposits as total deposits less time deposits and all BaaS deposits 88.8% of total loans were funded with core deposits as of March 31, 2020 Core deposits were 88.8% of total deposits as of Marc
Slide 13: Yield and Cost Margin Analysis
Yield and Cost Margin Analysis Note: Data as of or for the year ended December 31 of each respective year unless noted otherwise
Slide 14: Strong Asset Quality
Strong Asset Quality Asset Quality Trends NPAs / Assets (%), NPLs / Loans (%) and NCOs / Avg. Loans (%) Allowance for Loan Losses (“ALLL”) / NPLs (%) Note: Data as of or for the year ended December 31 of each respective year unless noted otherwise
Slide 15: Historic Profitability and Efficiency
Historic Profitability and Efficiency Net Income and Return on Average Assets Net Income ($mm) Efficiency Ratio (%) and Noninterest Expense (“NIE”) to Average Assets (%) ROAA(%) Efficiency Ratio (%) NIE / Average Assets (%) Note: Annual data is as of or for the year ended December 31 of each respect
Slide 16: Recent Developments
Recent Developments 2019 Q4 Financial Results: Balance Sheet As of the quarter ended (Dollars in millions, except per share amounts) March 31, 2020 December 31, 2019 March 31, 2019 Total Assets $1,184.1 $1,128.5 $1,116.1 Total Loans $1,005.2 $939.1 $791.1 Total Deposits $1,005.1 $968.0 $976.5 Total
Slide 17: 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 two active
Slide 18: Appendix
Appendix Cc COMMUNITY BANK’
Slide 19: Interest Rate Shock Analysis
Interest Rate Shock Analysis Impact on Net Interest Income (NII) – Parallel Shifts – Static Balance Sheet Impact on NII Parallel Shifts – Dynamic Balance Sheet Note: Data for the twelve months ended March 31, 2020.
Slide 20: 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 21: 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 22: Selected Quarterly Financials
Selected Quarterly 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 23: Non-GAAP Reconciliation – 2019 Adjusted Measures
Non-GAAP Reconciliation – 2019 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 first and second quar
Slide 24: Non-GAAP Reconciliation - 2019 Adjusted Measures Continued
Non-GAAP Reconciliation - 2019 Adjusted Measures Continued
Slide 25: Non-GAAP Reconciliation – Pre-Provision, Pre-Tax
Non-GAAP Reconciliation – Pre-Provision, Pre-Tax 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 26: Diverse Loan Portfolio
Diverse Loan Portfolio (1) Restaurants make-up 0.71% and $7.4 million of Groups <2.0% of Total, 8.2% category in CRE loan breakdown (2) Restaurants make-up 0.11% and $1.1 million of Groups <1.0% of Total, 5.0% category in C&I loan breakdown CRE Loan Breakdown as % of Total Outstanding Balances and A
Slide 27: 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) dat
Slide 28: COVID-19 Update
COVID-19 Update Source of Washington State Timeline: www.governor.wa.gov/news-media/news-release-archive Bank Update: 3/12/2020 – Board declares and activates COVID-19 pandemic plan 3/16/2020 – Portion of the workforce begins working at home and is dispersed throughout facilities 3/17/2020 – Branche