Coastal Financial Corporation · Q2 2022 earnings

Briefing

Coastal Financial reported record net income and solid loan and deposit growth, driven by its CCBX segment and community bank activities.

Coastal Financial Corporation reported record quarterly net income of $10.2 million, or $0.76 per diluted common share, for the quarter ended June 30, 2022. Total assets increased to $2.97 billion, and loan growth reached $461.2 million. Deposit growth was also strong at $120.8 million.

• Record quarterly net income of $10.2 million, or $0.76 per diluted common share.
• Total assets increased to $2.97 billion.
• Loan growth of $461.2 million, excluding PPP loan forgiveness/repayments.
• Deposit growth of $120.8 million.

Headline financials

Revenue & EPS history

The impact of the March 2022 increase in interest rates by the FOMC was fully reflected in the second quarter interest expense. The more recent rate increases in May and June 2022 by the FOMC did not have as significant impact on the second quarter interest expense, but the impact of that change and the change on loan rates is expected to be seen in future quarters. Currently, we do not expect that any additional CCBX deposits will be reclassified as a result of any future rate increases that may be implemented by the FOMC. We anticipate additional rate increases in 2022, which will increase our cost of deposits and result in higher interest expense on interest bearing deposits.