Coastal Financial Corporation (CCB) Bundle
An Overview of Coastal Financial Corporation (CCB)
An Overview of Coastal Financial Corporation (CCB)
Coastal Financial Corporation (CCB) is a financial institution based in the United States, primarily recognized for its innovative banking solutions. Established in 1999, the company has evolved to provide a range of products and services, including commercial banking, consumer banking, and banking-as-a-service (BaaS) through its subsidiary, CCBX. As of 2024, CCB has reported total sales of approximately $105.1 million from its diverse service offerings, reflecting its strong market position and customer base.
Company's Financial Performance in Latest Financial Reports
In the latest financial reporting period, specifically for the quarter ended September 30, 2024, Coastal Financial Corporation achieved record-breaking revenue figures. The company reported net interest income of $72.2 million, a 9.0% increase from $66.2 million in the previous quarter and a 16.0% increase from $62.2 million year-over-year. This growth was primarily driven by an increase in outstanding loans and higher interest rates, resulting in a consolidated yield on loans of 11.43%.
The following table summarizes key financial metrics for the quarter ended September 30, 2024:
| Metric | Amount |
|---|---|
| Net Interest Income | $72.2 million |
| Provision for Credit Losses | $70.3 million |
| Total Assets | $4.07 billion |
| Total Loans Receivable | $3.42 billion |
| Total Deposits | $1.52 billion |
| Return on Average Assets (ROA) | 1.34% |
| Return on Average Equity (ROE) | 16.67% |
Moreover, noninterest income reached $80.1 million for the same quarter, marking a substantial increase from $69.9 million in the previous quarter and $34.6 million in the same quarter of 2023. This growth can be attributed to an increase in BaaS income, particularly from credit enhancements and other service fees.
Introduction to Company as One of the Leaders in the Industry
Coastal Financial Corporation stands out as a leader in the banking industry, particularly in the BaaS segment. With a diverse loan portfolio of $3.43 billion and a strategic focus on enhancing credit quality and risk management, CCB has positioned itself effectively to navigate the complexities of the financial landscape. The company boasts a strong capital base with total shareholders' equity increasing by $15.2 million over the last quarter, indicating robust financial health.
The following table illustrates the composition of CCB's loan portfolio as of September 30, 2024:
| Loan Category | Outstanding Balance | % of Total Loans |
|---|---|---|
| Commercial Real Estate | $1.40 billion | 39.8% |
| Residential Real Estate | $212.5 million | 11.2% |
| Consumer and Other Loans | $633.7 million | 41.6% |
| Commercial and Industrial Loans | $152.2 million | 8.0% |
With a commitment to innovation and customer service, Coastal Financial Corporation continues to expand its market share and solidify its reputation as a trusted financial partner. For a deeper understanding of the factors contributing to CCB's success, further exploration of its strategic initiatives and market positioning is encouraged.
Mission Statement of Coastal Financial Corporation (CCB)
Mission Statement Overview
The mission statement of Coastal Financial Corporation (CCB) serves as a fundamental guide for the company’s long-term strategic goals. It articulates the purpose of the organization, the value it provides to its customers, and the principles that govern its operations. As of 2024, CCB's mission emphasizes commitment to high-quality financial products and services, fostering community relationships, and ensuring sustainable business practices.
Core Component 1: Commitment to High-Quality Financial Products
CCB's mission highlights its dedication to offering high-quality financial products. This commitment is evident in the company's performance metrics. For the three months ended September 30, 2024, CCB reported:
- Net interest income of $72.2 million, a 9.0% increase from the previous quarter.
- Average yield on loans for the community bank at 6.64% and for CCBX at 17.35%.
This focus on quality is supported by ongoing investments in technology and customer service initiatives, which aim to enhance product offerings and customer satisfaction.
Core Component 2: Fostering Community Relationships
CCB’s mission underscores the importance of community engagement. The company has established various partnerships and initiatives aimed at supporting local economies. As of September 30, 2024, CCB's community bank deposits increased by $35.6 million, reflecting its active role in community financial health. Additionally, the company maintains:
- Noninterest-bearing deposits of $518.8 million, making up 34.1% of total community bank deposits.
- A diversified loan portfolio totaling $3.43 billion, which includes commercial real estate, consumer, and residential loans.
These figures demonstrate CCB's commitment to fostering strong relationships with community stakeholders and supporting local growth.
Core Component 3: Ensuring Sustainable Business Practices
CCB’s mission statement reflects its commitment to sustainability in its business practices. The company has actively worked to improve its credit quality, as indicated by a decrease in net charge-offs to $49.2 million for the quarter ended September 30, 2024, down from $53.2 million in the previous quarter. This reduction is attributed to proactive measures in managing credit risk:
- Net charge-offs as a percentage of average loans decreased to 5.65%.
- Total allowance for credit losses increased to $170.3 million, representing 4.98% of loans receivable.
CCB's approach to sustainability also includes adhering to regulatory standards and implementing practices that reduce environmental impact while enhancing operational efficiency.
| Financial Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Net Interest Income | $72.2 million | $66.2 million | $62.2 million |
| Average Yield on Community Bank Loans | 6.64% | 6.52% | 6.20% |
| Average Yield on CCBX Loans | 17.35% | 17.77% | 17.05% |
| Net Charge-Offs | $49.2 million | $53.2 million | $36.8 million |
| Allowance for Credit Losses | $170.3 million | $147.9 million | $101.1 million |
Vision Statement of Coastal Financial Corporation (CCB)
Vision Statement Overview
Coastal Financial Corporation's vision statement emphasizes its commitment to being a leading provider of financial services while maintaining a strong focus on community and customer engagement. As of 2024, the company aims to leverage technology and innovative solutions to enhance customer experiences and operational efficiency.
Commitment to Innovation
Coastal Financial Corporation prioritizes innovation in its banking services, particularly through its Banking as a Service (BaaS) segment, known as CCBX. The company reported a yield on CCBX loans of 17.35% for the quarter ended September 30, 2024, reflecting its strategy to optimize loan offerings and strengthen its balance sheet.
As of September 30, 2024, the total outstanding CCBX loans receivable amounted to $1.55 billion, contributing significantly to the company’s financial performance.
Community Engagement
Coastal Financial Corporation is dedicated to community engagement, focusing on building long-term relationships with local businesses and individuals. The total community bank deposits as of September 30, 2024, were $1.52 billion, representing a 2.4% increase from the previous quarter.
The community bank segment includes noninterest-bearing deposits, which comprised $518.8 million, or 34.1% of total community bank deposits, showcasing the bank's solid foundation in customer trust and relationship banking.
Financial Strength and Stability
Financial stability is a core component of Coastal Financial Corporation's vision. As of September 30, 2024, total assets were reported at $4.07 billion, an increase of $104.3 million from the previous quarter. The company maintained a common equity tier 1 capital ratio of 10.36%, well above the regulatory minimum of 6.50%, highlighting its robust capital position.
| Financial Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Total Assets | $4.07 billion | $3.96 billion | $3.60 billion |
| Common Equity Tier 1 Capital Ratio | 10.36% | 9.26% | 8.50% |
| Net Interest Margin | 7.41% | 7.13% | 7.10% |
| Return on Average Assets | 1.34% | 1.21% | 1.13% |
Focus on Customer-Centric Solutions
The vision of Coastal Financial Corporation includes a strong emphasis on delivering customer-centric solutions. The company recorded net interest income of $72.2 million for the quarter ended September 30, 2024, reflecting a strategic focus on enhancing customer value through tailored financial products.
Additionally, the efficiency ratio improved to 43.10%, indicating better cost management and operational efficiency.
Sustainability and Ethical Practices
Coastal Financial Corporation is committed to sustainability and ethical banking practices. As of September 30, 2024, the company reported an allowance for credit losses of $170.3 million, or 4.98% of loans receivable, demonstrating a proactive approach to risk management.
By focusing on ethical lending and responsible financial practices, Coastal aims to build trust and ensure long-term sustainability in its operations.
Core Values of Coastal Financial Corporation (CCB)
Integrity
Integrity is a core value that Coastal Financial Corporation (CCB) embodies in all of its operations. This principle is essential for building trust with customers, partners, and the community.
CCB demonstrates its commitment to integrity through transparent reporting and adherence to regulations. For example, as of September 30, 2024, the company maintained a Tier 1 Capital Ratio of 10.36%, well above the regulatory requirement of 6.0%. Furthermore, CCB's nonperforming assets were 1.34% of total assets, reflecting prudent risk management practices.
Customer Focus
Customer focus is pivotal to CCB's mission, ensuring that the needs and expectations of clients are prioritized in every decision.
CCB has initiated several programs, such as its CCBX platform, which allows for tailored banking solutions that cater to various customer segments. As of September 30, 2024, CCBX loans reached $1.52 billion, indicating a 7.6% increase. The consumer loan portfolio, including credit cards, accounted for $633.7 million, highlighting the bank's focus on consumer needs.
Community Commitment
Community commitment reflects CCB's dedication to making a positive impact in the regions it serves.
CCB's community engagement includes a robust community bank segment, which held $1.90 billion in loans as of September 30, 2024. Additionally, CCB reported a total of $1.52 billion in community bank deposits, underscoring its role in local economic development.
Innovation
Innovation is a driving force behind CCB's growth strategy, enabling the company to stay competitive and meet evolving customer needs.
CCB continues to enhance its technological capabilities, with investments in banking-as-a-service (BaaS) initiatives. The company's net BaaS loan income rose to $35.08 million for the quarter ended September 30, 2024. Moreover, the net interest margin improved to 7.41%, reflecting the effectiveness of its innovative approaches.
Collaboration
Collaboration is fundamental to CCB's operations, fostering partnerships that enhance service delivery and operational efficiency.
The company has developed 22 active partnerships within its CCBX segment as of September 30, 2024, facilitating a diverse range of lending solutions. These collaborations have led to a total of $3.43 billion in outstanding loan balances across various industries, showcasing the power of strategic alliances.
| Core Value | Description | Key Metrics |
|---|---|---|
| Integrity | Transparency and trust in operations | Tier 1 Capital Ratio: 10.36% Nonperforming Assets: 1.34% |
| Customer Focus | Prioritizing customer needs | CCBX Loans: $1.52 billion Consumer Loans: $633.7 million |
| Community Commitment | Positive impact on local communities | Community Bank Loans: $1.90 billion Community Bank Deposits: $1.52 billion |
| Innovation | Adapting to changing market demands | Net BaaS Loan Income: $35.08 million Net Interest Margin: 7.41% |
| Collaboration | Building partnerships for growth | Active CCBX Partnerships: 22 Total Outstanding Loans: $3.43 billion |
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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.