Coastal Financial Corporation · NASDAQ:CCB
Coastal Financial — Investor Presentation (January 2022)
32 slides from Coastal Financial's investor presentation, Jan 27, 2022
Slide 1: Investor Presentation
January 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” Coastal’s Digital Bank “CCDB” Best-in-class community bank that offers lending and deposit products to commercial customers Loan portfolio consists primarily of CRE(1) and C&I loans (82% of loans receiv
Slide 4: Consolidated Financial Highlights
Core Deposits (3) CONSOLIDATED FINANCIAL HIGHLIGHTS - As of and for the Quarter ended December 31, 2021 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 go
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 unb
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 19 active partners with 9 more currently in the implementation / onboarding or signed LOI stage as of December 31, 2
Slide 8: CCBX Loans and Deposits
CCBX Loans and Deposits Growing platform for low-cost deposit generation Deposit growth of $109.0 million, or 18.0%, as of December 31, 2021, compared to September 30, 2021, and $647.6 million, or 942.8%, compared to December 31, 2020 Access to $252.4 million in CCBX deposits that are transferred of
Slide 9: Fintech Company Stage
FINTECH COMPANY STAGE Seed Early Mid/Expansion Late/Mezzanine Exit Venture Investors Early–Stage: Between Seed and Series A: Partner with companies early and obtain long term loyal relationships Growth Company Stage Fintech’s Time Horizon 3 – 5 years in business 5 - 15 years in business Debt Financi
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 December 31, 2021 includes $186.3 million in average PPP loans) Net Income ($mm) Efficiency Ratio (%) and Noninterest Expense (“NIE”) to Average Assets (%) (average assets for QE December 31, 2021 in
Slide 12: Loan Composition
LOAN COMPOSITION Consolidated Loan Composition Community Bank Loan Concentrations by County Overall Loan Portfolio 2.44 years weighted average reprice 6.33 years weighted average maturity Commercial & Industrial (“C&I”) Portfolio $419.3 million total C&I loans $111.8 million in PPP Small Business Ad
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 129.1% of total loans as of December 31, 2021 Core deposits were
Slide 14: Strong Asset Quality
STRONG ASSET QUALITY Note: Data as of and for the year ended December 31 of each respective year unless noted otherwise NPAs / Assets ALLL / NPLs NCOs / Average Loans NPLs / Loans
Slide 15: 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 December 31, 2021, we have $111.8 million in PPP loans outstanding Repaid the Paycheck Protection Program Liquidity Facility (“PPPLF”) as of
Slide 16: COVID-19 Response – PPP Loans: Balances Over Time
COVID-19 RESPONSE – PPP LOANS PPP Balances Over Time
Slide 17: CFC Loan and Deposit Growth
CFC LOAN AND DEPOSIT GROWTH Loan Growth of $195.6 million or 12.6% from December 31, 2020 Deposit Growth of $942.5* million or 66.3% from December 31, 2020 (Dollars in thousands) (Dollars in thousands) CCBX Deposit Growth of $647.6* million or 942.8% from December 31, 2020 Low 0.07% Nonperforming Lo
Slide 18: CFC Quarterly Results: 4Q2021 Financial Results
CFC QUARTERLY RESULTS 4Q2021 Financial Results:
Slide 19: 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 20: Corporate ESG Initiatives
CORPORATE ESG INITIATIVES Underserved Small Business Women Muslim Coastal Financial Corporation Sustainability Strategy Local Community Initiatives BaaS for ESG Challenger Banks Governance- Board Diversity Inclusive Affiliate Offerings Customer Facing Solutions
Slide 21: Financial Inclusion Initiatives
FINANCIAL INCLUSION INITIATIVES CCBX CCBX / CCB / CCDB COLLABORATION CCDB CCB New Coastal bank products, services and education (BankOn) Focusing on other opportunities in the digital banking sector including education and new product offerings Best in breed offering to CCB clients through affiliati
Slide 22: Appendix
APPENDIX i coastat »
Slide 23: 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 24: 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 25: Community Bank - Diverse Loan Portfolio: Commercial Real Estate
COMMUNITY BANK - DIVERSE LOAN PORTFOLIO Commercial Real Estate $835.6 million Outstanding Balance $23.2 million Available Loan Commitment $1.4 million Average Loan Balance 33.8% % of Loans Receivable (Total Outstanding Balances and Available Commitments) Excludes PPP Loans Note: Data as of and for t
Slide 26: Community Bank - Diverse Loan Portfolio: Commercial and Industrial
COMMUNITY BANK - DIVERSE LOAN PORTFOLIO Note: Data as of and for the quarter ended December 31, 2021, unless otherwise indicated Commercial and Industrial $307.2 million Outstanding Balance $486.8 million Available Loan Commitment $437,000 Average Loan Balance 31.2% % of Loans Receivable (Total Outs
Slide 27: Community Bank - Diverse Loan Portfolio: Construction and Land
COMMUNITY BANK - DIVERSE LOAN PORTFOLIO Note: Data as of and for the quarter ended December 31, 2021, unless otherwise indicated Construction, Land and Land Development $183.6 million Outstanding Balance $134.3 million Available Loan Commitment $1.4 million Average Loan Balance 12.5% % of Loans Rece
Slide 28: CFC Loan Portfolio Statistics
CFC 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 Value (“LTV”) d
Slide 29: Asset-Sensitive Balance Sheet
ASSET-SENSITIVE BALANCE SHEET Bank will Benefit when Rates Increase Asset sensitive 30% of our assets reprice within 3 months as of December 31, 2021, up from 20% at December 31, 2020 2.44 years weighted average reprice 6.33 years weighted average maturity Loan Strategy: shorter term loans interest
Slide 30: Non-GAAP Reconciliation – PPP Loan Impact
NON-GAAP RECONCILIATION –PPP LOAN IMPACT 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.
Slide 31: Non-GAAP Reconciliation – BaaS Fee Income, Net
NON-GAAP RECONCILIATION –PPP LOAN IMPACT The following non-GAAP financial measures are presented to illustrate the impact of BaaS credit enhancements, BaaS fraud recovery and reimbursement of expenses on total BaaS fees. "BaaS fee income, net" excludes BaaS credit enhancements, BaaS fraud recovery a
Slide 32: 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
Coastal Financial — Investor Presentation (January 2022) on 6ix