Coastal Financial Corporation · NASDAQ:CCB
Coastal Financial — IPO Roadshow (July 2018)
23 slides from Coastal Financial's IPO roadshow presentation, Jul 10, 2018
Slide 1: Coastal Financial Corporation Investor Presentation
Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333-225715 Dated July 10, 2018 COASTAL FINANCIAL CORPORATION INVESTOR PRESENTATION
Slide 2: Legal Information and Disclaimer
Legal Information and Disclaimer Coastal Financial Corporation (“Coastal”, “the Company” or “we”) has filed a registration statement (including a prospectus, which is preliminary and subject to completion) with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this pr
Slide 3: Offering Summary
Offering Summary Issuer: Coastal Financial Corporation Proposed Exchange / Ticker: Nasdaq Global Select Market / CCB Base Shares Offered: 2,150,000 primary / 570,000 secondary Base Offering Size(1 ): $ 38.1 million / $ 30.1 million primary and $ 8.0 million secondary Price Range: $ 13.00 $ 15.00 per
Slide 4: Today's Presenters
Today s Presenters Eric Sprink Joel Edwards President Executive Vice President Chief Executive Officer Chief Financial Officer 27 Years of Financial Services Experience 32 Years of Financial Services Experience 12 Years in the Puget Sound Region 23 Years in the Puget Sound Region 12 Years at Coastal
Slide 5: Corporate Overview
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 5 Skagit county seat of Snohomish County Island Branches Snohomish 13 full-service banking
Slide 6: Ownership of Directors and Officers
Ownership of Directors and Officers Title and Shares of Voting Year Position with Common Stock Name Age Joined Principal Occupation the Company Beneficially Owned Christopher Adams 38 2016 Partner, Adams & Duncan, Inc., P.S. Vice Chairman * Andrew Dale 51 2011 Managing Director, Montlake Capital
Slide 7: Key Investment Highlights
Key Investment Highlights Premier Local Bank in the Largest locally headquartered bank, by deposit market share, in rapidly growing Snohomish County Puget Sound Region Attractive alternative to larger, more impersonal financial services companies Attractive Core Deposit Fund 94.0% of total loans wit
Slide 8: Financial Highlights
Financial Highlights As of or for the Three Months Ended $805.8 $831.0 March 31, 2018 $740.6 $622.7 $546.5 Assets $428.9 Balance Sheet ($mm) Total Assets $831.0 Total Total Loans $678.5 2013 2014 2015 2016 2017 2018Q1 Total Deposits $727.3 Total Shareholders’ Equity $66.9 Earnings and Profitability
Slide 9: Core Markets: Snohomish County
Core Markets Snohomish County Median Household Income Notable Employers $83,174 per household, the second highest in Washington vs. $61,045 for the United States Unemployment Rate 3.3% as of April 2018 vs. 3.9% for the United States Market Deposits $11.6 billion in Snohomish County deposits, the sec
Slide 10: Core Markets: Puget Sound Region
Core Markets Puget Sound Region The Puget Sound region in the state of Washington encompasses the Seattle MSA, the metropolitan Puget Sound Region areas of Olympia, Bremerton and Mount Vernon, and Island County We believe there is significant organic growth 5 Skagit opportunities given the: Island 1
Slide 11: Scalable Operating Model
Scalable Operating Model We complement our traditional branches with a robust digital banking delivery system 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 acr
Slide 12: Community Bank, Community Bankers
Community Bank, Community Bankers It’s representative of the bank’s commitment to Community. We believe this is the best way to deliver charitable dollars to the communities where we do business. This is about the bank’s employees doing something together in order to make a real impact. Lee Pintar,
Slide 13: Loan Composition
Loan Composition 86% of loans (measured by dollar amount outstanding) Loan Composition were secured by real estate, or made to borrowers who live or conduct business, in the Puget Sound region $17.6 million legal lending limit as of March 31, 2018 C RE owner Commercial & Industrial (C&I) Por
Slide 14: Deposit Composition
Deposit Composition Emphasis on core deposits has helped generate an Deposit Composition attractive funding mix Core Deposit Franchise We define core deposits as total deposits less Noninterest- NOW and time deposits bearing demand money market 34.9% 46.2% 94.0% of total loans were funded with core
Slide 15: Yield and Cost Margin Analysis
Yield and Cost Margin Analysis As of March 31, 2018, our one-year cumulative re-pricing gap to total assets of 25% was in the 78th percentile of banks nationwide, according to data obtained through S&P Global Market Intelligence 6.00% 5.65% 5.60% 5.34% 5.16% 5.07% 4.98% 4.93% 5.00% 4.50% 4.49% 4
Slide 16: Strong Asset Quality
Strong Asset Quality Asset Quality Trends 2.00% 600% 1.90% (%) 496% 468% 500% Loans 1.60% . 1.52% (%) Avg / NPLs 378% 400% / NCOs 1.24% 365% and 1.20% LLL ) 1.11% ( A (%) 300% Losses Loans / 0.80% 221% Loan 0.72% NPLs for 200% 164% (%), 0.54% 0.40% 0.35% Allowance Assets 0.33% 0.32% / 0.27% 0.26% 10
Slide 17: Historic Profitability and Efficiency
Historic Profitability and Efficiency Net Income and Return on Average Assets 0.94% $8.0 0.90% 1.00% 0.76% 0.73% mm) $6.0 0.75% ( $ 0.51% 0.52% 0.49% $4.0 0.50% $6.7 Income $5.0 ROAA(%) $2.0 0.25% $3.0 Net $2.0 $2.3 $1.8 $1.3 $0.0 0.00% 2013 2014 2015 2016 2017 (1) 2017Q1 2018Q1 Net Income Return on
Slide 18: Consolidated Capital Position
Consolidated Capital Position 16.53% 13.90% 13.40% 12.90% 11.99% 10.89% 10.25% 9.75% 9.07% 8.05% Tangible Equity to Leverage Ratio Common Equity Tier 1 Tier 1 Risk-Based Capital Total Risk-Based Capital Tangible Assets (1) Ratio Ratio Ratio As-Reported As adjusted for the offering (2) Note: Data as
Slide 19: Recent Developments
Recent Developments Banking Services Agreement with Aspiration Financial, LLC (May 2018) Entered into an agreement with Aspiration Financial, LLC (Aspiration), an online investment platform that offers socially -conscious and sustainable banking and investing, pursuant to which we will provide certa
Slide 20: Appendix
Appendix Coastal community bank
Slide 21: Interest Rate Shock Analysis
Interest Rate Shock Analysis Impact on Net Interest Income (NII) Parallel Shifts Static Balance Sheet 20.0% 10.0% 11.4% 5.6% 8.4% 0.0% 2.8% (2.0%) (10.0%) (8.1%) (10.3%) (20.0%) -300 basis -200 basis -100 basis +100 basis +200 basis +300 basis +400 basis points points points points points points poi
Slide 22: Selected Financials
Selected Financials As of or for the Three Months Ended As of or for the Year Ended March 31, December 31, (Dollars in thousands, except per share data) 2018 2017 2017 2016 2015 2014 2013 Statement of Income Data: Total interest income $ 8,607 $ 7,543 $ 32,113 $ 28,460 $ 24,829 $ 22,451 $ 18,794 Tot
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation 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. Adjusted net income is a non-GAAP measure defined