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Sep 30, 2021
Coastal Financial Q3 2021 Earnings Report
Coastal Financial's performance was marked by significant asset and deposit growth, driven by the expansion of its CCBX division, while net income saw a slight decrease compared to the previous quarter.
Key Takeaways
Coastal Financial Corporation reported a strong third quarter with significant growth in total assets and deposits. Total assets increased by $444.4 million to $2.45 billion, and total deposits increased by $421.9 million to $2.22 billion. Net income for the quarter was $6.7 million, or $0.54 per diluted common share.
Total assets increased by $444.4 million, reaching $2.45 billion.
Total deposits grew by $421.9 million, totaling $2.22 billion.
Loan growth reached $47.5 million, despite $130.8 million in PPP loan forgiveness.
Net income amounted to $6.7 million, or $0.54 per diluted common share.
Forward Guidance
Management expects net interest margin to fluctuate as PPP loans are forgiven and paid off. They also anticipate an increase in software license, maintenance, and subscription expenses due to investments in automated processing and product line growth for CCBX and CCDB.
Positive Outlook
- Continued forgiveness payments from the SBA.
- Ongoing vaccination efforts and increased re-opening of economic activities.
- Successful customer migration from deferral to active status.
- Access to $331.1 million in CCBX customer deposits that are swept off the balance sheet.
- Strong pipeline of potential new CCBX relationships.
Challenges Ahead
- Net interest margin will likely fluctuate over the near term as PPP loans continue to be forgiven and paid off.
- Increased demand deposits and cash on the balance sheet resulting in a lower loan to deposit ratio.
- Market conditions for deposits continued to be competitive.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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