NASDAQ$CCB

Coastal Financial Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Announced first quarter 2020 results.

Coastal Financial Corporation reported a net income of $2.7 million for Q1 2020, a slight decrease from $2.8 million in Q1 2019. The results were impacted by a $1.6 million loan loss provision due to loan growth and economic uncertainties related to the COVID-19 pandemic, but benefited from annualized loan growth of 28.3% and deposit growth of 15.4%.

  • Net income totaled $2.7 million, or $0.22 per diluted common share, a decrease of 3.0% from $2.8 million, or $0.23 per diluted common share, for the quarter ended March 31, 2019.
  • Total assets were $1.18 billion and grew at an annualized rate of 19.8% during the quarter ended March 31, 2020, compared to total assets of $1.13 billion at December 31, 2019.
  • Total loans receivable grew at an annualized rate of 28.3% during the quarter ended March 31, 2020 to $1.01 billion compared to $939.1 million at December 31, 2019.
  • Total deposits increased at an annualized rate of 15.4% during the quarter ended March 31, 2019 to $1.01 billion, compared to $968.0 million at December 31, 2019.

Headline financials

Total Revenue

$14M

Previous: $11.8M+19.4%
EPS (adj)

$0.22

Previous: $0.23-4.3%
Return on Avg. Assets

1.0%

No prior period
Net Interest Margin

4.2%

No prior period
Efficiency Ratio

64.3%

No prior period
Loans to Deposits

100.0%

No prior period
Capital Expenditures

-$1.4M

Previous: -$154K-808.4%
Free Cash Flow

$1.33M

Previous: $2.65M-50.1%
Net Income

$2.72M

Previous: $2.81M-3.0%
Operating Income

$9.7M

Previous: $7.46M+30.0%
Gross Profit

$13.8M

Previous: $11.6M+19.4%
Cash & Equivalents

$129M

Previous: $258M-49.8%
Total Assets

$1.18B

Previous: $1.12B+6.1%
Stock-Based Comp

$129K

Previous: $106K+21.7%

Revenue & EPS history

Coastal Financial · Revenue · Quarterly

$14M

Q1 2020+19.4%vs Q1 2019
Beat estimate in 9 of 10 quarters(90%)
ActualEstimate

Revenue by segment

Coastal Financial · $60.3M total across 2 segments · Q3 2023

  • CCBX
    $41M+30.3%
  • Community Bank
    $19.3M-15.1%

Forward guidance

The company is focused on managing and innovating towards an enhanced future, combining the stability of the bank and the additional sources of income from the CCBX division to emerge stronger.

Tailwinds

  • Working diligently with the SBA to offer assistance to small businesses.
  • Taking a proactive approach on restructuring payments for loan customers.
  • Committed to following the guidelines set forth by government and public health officials.
  • Taken measures to protect the health and safety of employees.
  • Management expects to be able to manage the economic risks and uncertainties.

Headwinds

  • Global COVID-19 pandemic impacting the physical and economic health.
  • Pandemic related disruptions occurred late in the period.
  • Increased loan loss provision expense due to loan growth and economic uncertainties.
  • Lower interest rates on loans combined with reduced balances on investment securities.
  • Economic impact of the global pandemic, trade issues, and decline in oil prices is unknown.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.8%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+3.7%

Avg return

30 days after

69%

24 / 35 earnings

Positive

+10.4%

Q1 2023

Best reaction

-9.0%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.0%-15.2%-18.0%
Q4 2025+0.1%-11.3%-26.5%
Q3 2025-3.4%-1.3%+2.8%
Q1 2025+0.3%+3.7%+3.8%
Q4 2024+6.8%+0.4%-2.6%
Q3 2024+10.4%+8.2%+32.1%
Q2 2024+0.1%-7.0%-0.5%
Q1 2024-4.7%+3.2%+6.0%
Q4 2023-6.6%-8.8%-10.2%
Q3 2023-9.0%-9.7%-1.9%
Q2 2023-3.0%-6.2%-8.3%
Q1 2023+10.4%+2.8%+8.2%
Q4 2022+3.9%+8.4%+5.2%
Q3 2022+9.9%+15.6%+18.4%
Q2 2022+4.6%+3.8%+2.9%
Q1 2022+1.1%-0.0%-4.0%
Q4 2021-3.9%+1.8%-2.9%
Q3 2021+3.7%+11.3%+27.0%
Q2 2021+3.1%+1.5%+3.7%
Q1 2021+5.7%+7.2%+11.9%
Q4 2020-1.7%-3.7%+31.8%
Q3 2020+7.0%+15.7%+32.1%
Q2 2020-2.8%-2.1%+0.7%
Q1 2020+8.6%-3.3%+17.8%
Q4 2019+1.6%+2.3%-4.2%
Q3 2019+0.3%-0.1%+12.0%
Q2 2019+4.2%+3.5%-3.4%
Q1 2018-0.1%-2.4%-2.5%
Q1 2019+1.5%-0.8%-1.6%
Q2 2018+6.8%+7.1%+2.3%
Q4 2017+6.8%+7.1%+2.3%
Q4 2018+0.9%-2.5%+10.1%
Q3 2017-1.1%+1.0%-13.3%
Q3 2018-4.6%-0.9%-4.4%
Q2 2017+2.3%+5.3%+3.8%
Q1 2017

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro