Coastal Financial Corporation (CCB) Bundle
A Brief History of Coastal Financial Corporation
Coastal Financial Corporation (CCB) has shown remarkable growth and development over the years, particularly in its financial performance and operational strategies. As of September 30, 2024, CCB reported net income of $13.5 million, a significant increase from $11.6 million in the previous quarter.
Financial Performance
For the quarter ended September 30, 2024, CCB's net interest income was $72.2 million, reflecting a 9% increase from $66.2 million in the prior quarter. This growth was primarily driven by higher loan yields.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $13.5 million | $11.6 million | $6.8 million |
| Net Interest Income | $72.2 million | $66.2 million | $62.2 million |
| Loan Interest Income | $67.7 million | $60.2 million | $56.3 million |
| Cost of Deposits | 1.92% | 1.77% | 1.31% |
Loan Portfolio and Credit Quality
As of September 30, 2024, CCB's total loans receivable stood at approximately $3.42 billion, with a notable diversification across various loan types. The company's commercial real estate loans represented the largest segment, accounting for 39.8% of total outstanding loans.
The company experienced an increase in net charge-offs, totaling $49.2 million for the quarter, compared to $36.8 million in the same quarter of the previous year. This reflects an increase in nonperforming assets to $54.7 million, or 1.34% of total assets.
Market Position and Strategic Initiatives
CCB has strategically enhanced its credit standards and loan origination processes, particularly within its CCBX lending program, which has grown significantly. The total CCBX loans increased by 7.6% to $1.52 billion as of September 30, 2024.
| CCBX Loan Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total CCBX Loans | $1.52 billion | $1.41 billion | $1.18 billion |
| Loan Yield | 17.35% | 17.77% | 17.05% |
| Net BaaS Loan Income | $35.08 million | $31.13 million | $33.28 million |
| Provision for Credit Losses | $72.1 million | $62.2 million | $26.5 million |
Overall, CCB's proactive management and strategic initiatives have positioned the company for continued growth, despite challenges in the lending environment and rising interest rates. The focus on enhancing credit quality and maintaining a diversified loan portfolio remains essential to its operational strategy moving forward.
A Who Owns Coastal Financial Corporation (CCB)
Shareholder Composition
As of September 30, 2024, Coastal Financial Corporation (CCB) has a diverse shareholder base. The following table summarizes the major shareholders and the percentage of shares they own:
| Shareholder Name | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 5,000,000 | 36.9% |
| Insider Ownership | 1,500,000 | 11.1% |
| Mutual Funds | 3,200,000 | 23.6% |
| Retail Investors | 2,800,000 | 20.7% |
| Other Stakeholders | 400,000 | 3.0% |
| Total Shares Outstanding | 13,543,282 | 100% |
Recent Stock Performance
As of the end of September 2024, CCB's stock price closed at $24.51 per share, reflecting a year-to-date increase of 15%. The market capitalization of Coastal Financial Corporation is approximately $332.5 million based on the latest share price.
Financial Overview
Coastal Financial Corporation's total assets as of September 30, 2024, were reported at $4.07 billion. The total shareholders' equity was $331.93 million, showing a robust financial position with a Tier 1 capital ratio of 10.36% and a total capital ratio of 11.65%.
Earnings and Dividends
For the quarter ended September 30, 2024, CCB reported a net income of $13.46 million, translating to an earnings per share (EPS) of $1.00. The company has not declared dividends for the current period.
Ownership Changes
In the last year, there has been a notable increase in institutional ownership, rising from 30% to 36.9%. Insider ownership has remained stable at around 11.1%. Mutual funds have also increased their stake, indicating growing confidence in CCB's market strategy.
Future Outlook
Coastal Financial Corporation continues to enhance its technology and risk management infrastructure, which is expected to support long-term growth and profitability. The company has a strategic focus on optimizing its CCBX loan portfolio and strengthening relationships with established partners.
Coastal Financial Corporation (CCB) Mission Statement
Mission Statement Overview
Coastal Financial Corporation (CCB) aims to deliver exceptional financial services while fostering strong relationships with clients, employees, and communities. Their mission emphasizes customer-centric solutions, innovative banking technologies, and a commitment to sustainable growth.
Financial Performance Indicators
As of September 30, 2024, CCB reported significant financial metrics that reflect its operational success:
| Metric | Value (Q3 2024) |
|---|---|
| Total Assets | $4.07 billion |
| Total Loans Receivable | $3.42 billion |
| Total Deposits | $3.63 billion |
| Net Interest Income | $72.2 million |
| Net Income | $13.5 million |
| Earnings Per Share (Basic) | $1.00 |
Core Banking Operations
CCB’s core banking operations are structured to provide a diverse range of financial products, including commercial real estate, consumer loans, and business banking services. The following table details the composition of loans by category and their corresponding balances:
| Loan Category | Outstanding Balance (as of Q3 2024) | % of Total Loans |
|---|---|---|
| Commercial Real Estate | $1.40 billion | 39.8% |
| Consumer and Other Loans | $2.20 billion | 38.4% |
| Residential Real Estate | $1.90 billion | 21.8% |
Deposit Composition
CCB's deposit structure is vital for its funding strategy, showcasing a balanced mix of interest-bearing and non-interest-bearing accounts. The table below summarizes the community bank deposit portfolio:
| Deposit Type | Balance (as of Q3 2024) | % of Total Deposits |
|---|---|---|
| Demand, Noninterest Bearing | $518.8 million | 34.1% |
| Interest Bearing Demand and Money Market | $552.1 million | 36.3% |
| Savings | $62.3 million | 4.1% |
| Total Core Deposits | $1.13 billion | 74.5% |
Key Financial Ratios
CCB maintains a robust capital position as illustrated by the following key ratios:
| Ratio | Value (as of Q3 2024) |
|---|---|
| Tier 1 Capital Ratio | 10.36% |
| Total Capital Ratio | 11.65% |
| Net Interest Margin | 7.41% |
| Cost of Funds | 3.62% |
| Cost of Deposits | 3.59% |
Commitment to Innovation
CCB is focused on leveraging technology to enhance customer service. The company continues to invest in digital banking solutions, aiming to improve operational efficiency and customer engagement. The investment in data processing and software licenses increased by $1.1 million compared to prior periods, reflecting this commitment to technological advancement.
Conclusion of Financial Overview
Coastal Financial Corporation's mission is supported by its strong financial performance, diverse loan portfolio, and commitment to innovation, positioning it well in the competitive financial landscape.
How Coastal Financial Corporation (CCB) Works
Company Overview
Coastal Financial Corporation, through its subsidiary Coastal Community Bank, operates primarily in the banking sector, focusing on retail and commercial banking services. The company also engages in Banking as a Service (BaaS) via its CCBX platform.
Financial Performance
As of September 30, 2024, the company reported total assets of $4.07 billion, an increase of $104.3 million or 2.6% from the previous quarter. Total loans receivable rose to $3.42 billion, up by $92.4 million.
| Financial Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Total Assets | $4.07 billion | $3.96 billion | $3.68 billion |
| Total Loans Receivable | $3.42 billion | $3.33 billion | $2.97 billion |
| Net Interest Income | $72.2 million | $66.2 million | $62.2 million |
| Net Income | $13.5 million | $11.6 million | $10.3 million |
| Return on Average Assets (ROA) | 1.34% | 1.21% | 1.13% |
| Return on Average Equity (ROE) | 16.67% | 15.22% | 14.60% |
Loan Portfolio Composition
Coastal Financial's loan portfolio includes a variety of segments. As of September 30, 2024, the company reported a total of $3.43 billion in outstanding loans across various categories.
| Loan Category | Outstanding Balance | % of Total Loans |
|---|---|---|
| Commercial Real Estate | $1.40 billion | 39.8% |
| Residential Real Estate | $1.10 billion | 32.0% |
| Commercial and Industrial | $650 million | 18.9% |
| Consumer and Other | $240 million | 7.0% |
Interest Rates and Margins
Coastal Financial's net interest margin was 7.41% for the quarter ended September 30, 2024, an increase from 7.13% in the previous quarter. The yield on loans receivable was 11.43%, reflecting a favorable interest rate environment.
| Interest Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Net Interest Margin | 7.41% | 7.13% | 7.10% |
| Yield on Loans | 11.43% | 11.23% | 10.84% |
| Cost of Funds | 3.62% | 3.60% | 3.18% |
| Cost of Deposits | 3.59% | 3.58% | 3.14% |
Credit Quality
As of September 30, 2024, the company maintained an allowance for credit losses of $170.3 million, which is 4.98% of total loans receivable. The nonperforming loans ratio stood at 1.60%.
| Credit Quality Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Allowance for Credit Losses | $170.3 million | $147.9 million | $101.1 million |
| Nonperforming Loans to Total Loans | 1.60% | 1.60% | 1.47% |
| Net Charge-Offs | $49.2 million | $53.2 million | $36.8 million |
Operational Segments
Coastal Financial operates through three main segments: CCBX (BaaS), Community Bank, and Treasury & Administration. The CCBX segment focuses on partnerships with fintech companies to provide banking services, while the Community Bank segment serves traditional banking customers.
Future Outlook
The company aims to enhance its technology infrastructure and risk management practices to support growth in the CCBX segment, which includes strategic partnerships with established firms.
How Coastal Financial Corporation (CCB) Makes Money
Overview of Revenue Streams
Coastal Financial Corporation (CCB) generates revenue primarily through interest income from loans, noninterest income from its Banking as a Service (BaaS) segment, and community banking operations. As of September 30, 2024, the company reported total interest income of $72.2 million, alongside a noninterest income of $80.1 million for the same period.
Interest Income
Interest income is derived from various types of loans, including commercial real estate loans, consumer loans, and loans from the CCBX segment. The net interest margin for the quarter ended September 30, 2024, stood at 7.41%, reflecting an increase from 7.10% for the same quarter in 2023.
| Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Net Interest Income | $72.2 million | $66.2 million | $62.2 million |
| Net Interest Margin | 7.41% | 7.13% | 7.10% |
| Yield on Loans | 11.43% | 11.23% | 10.84% |
Community Banking Operations
The community bank segment is a significant contributor to CCB's revenue, which includes interest earned from loans and deposits. As of September 30, 2024, the community bank segment had total deposits of $1.52 billion, with a cost of deposits at 1.92%.
| Deposit Composition | Amount ($ in thousands) | % of Total |
|---|---|---|
| Demand, Noninterest Bearing | $518,772 | 34.1% |
| Interest Bearing Demand and Money Market | $552,108 | 36.3% |
| Savings | $62,272 | 4.1% |
| Total Community Bank Deposits | $1,522,525 | 100.0% |
BaaS Segment Revenue
The BaaS segment has emerged as a vital part of CCB's business model, contributing significantly to noninterest income. For the quarter ended September 30, 2024, total BaaS loan interest income was $67.7 million, with a net BaaS loan income of $35.1 million after accounting for BaaS loan expenses.
| BaaS Loan Income and Expenses | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| BaaS Loan Interest Income | $67,692 | $60,203 | $56,279 |
| BaaS Loan Expense | $32,612 | $29,076 | $23,003 |
| Net BaaS Loan Income | $35,080 | $31,127 | $33,276 |
Cost of Funds and Deposits
The cost of funds for CCB was reported at 3.62% for the quarter ended September 30, 2024, compared to 3.18% in the same quarter of the previous year. The increase in costs reflects the current high interest rate environment.
| Cost Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Cost of Funds | 3.62% | 3.60% | 3.18% |
| Cost of Deposits | 3.59% | 3.58% | 3.14% |
Net Charge-Offs and Credit Quality
Net charge-offs totaled $49.2 million for the quarter ended September 30, 2024, representing a decrease from $53.2 million in the previous quarter. The net charge-offs as a percent of average loans decreased to 5.65%.
| Net Charge-Offs | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Net Charge-Offs ($ in thousands) | $49,236 | $53,234 | $36,834 |
| Net Charge-Offs as % of Average Loans | 5.65% | 6.57% | 4.77% |
Performance Ratios
Key performance ratios for Coastal Financial Corporation as of September 30, 2024, demonstrate robust financial health. The return on average assets (ROA) was 1.34%, and return on average equity (ROE) was 16.67%.
| Performance Ratios | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Return on Average Assets (ROA) | 1.34% | 1.21% | 1.13% |
| Return on Average Equity (ROE) | 16.67% | 15.22% | 14.60% |
Coastal Financial Corporation (CCB) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Coastal Financial Corporation (CCB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Coastal Financial Corporation (CCB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Coastal Financial Corporation (CCB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.