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Dec 31, 2023
Coastal Financial Q4 2023 Earnings Report
Coastal Financial Corporation reported Q4 2023 results, showing a decrease in net income compared to the previous quarter but an increase compared to the same quarter last year. The company focused on optimizing its CCBX loan portfolio and managing credit risk.
Key Takeaways
Coastal Financial Corporation reported a net income of $9.0 million, or $0.66 per diluted common share, for Q4 2023. Total assets reached $3.75 billion, with loans increasing to $3.03 billion and deposits growing to $3.36 billion. The company strategically sold $125.1 million in CCBX loans to reduce risk and optimize the portfolio.
Net income was $9.0 million, or $0.66 per diluted common share.
Total assets increased to $3.75 billion, driven by loan and deposit growth.
Total loans reached $3.03 billion, with increases in both community bank and CCBX loans.
Deposits grew to $3.36 billion, with significant growth in CCBX deposits.
Revenue by Segment
Forward Guidance
Coastal Financial plans to focus on reducing costs through automation and leveraging technology, optimizing the CCBX loan portfolio, and managing credit risk. They expect lower earnings in the short term due to lower loan yields and compressed margins.
Positive Outlook
- Focus on reducing costs through automation and technology.
- Optimizing the CCBX loan portfolio by selling higher-risk loans and strengthening credit standards.
- Focusing on larger partners and companies that align with long-term profitability and growth objectives.
- Continuing to monitor and manage liquidity position.
- Maintaining access to alternative sources of funds.
Challenges Ahead
- Expect lower earnings in the short term with lower loan yields and compressed margins.
- Net interest margin will tighten as higher quality loans yield less than higher risk loans.
- Size of CCBX loan portfolio will be about the same as the previous quarter while working to grow the portfolio with loans that are subject to increased underwriting standards.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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