NASDAQ$CCB

Coastal Financial Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$124M

Previous: $96.2M+29.2%
EPS (adj)

$0.66

Previous: $0.96-31.2%
Cost of Deposits

3.4%

Previous: 1.6%+115.4%
Net Interest Margin

6.6%

Previous: 7.0%-5.0%
Loans to Deposits

90.0%

Previous: 93.3%-3.4%
Capital Expenditures

$2.33M

Previous: $217K+973.3%
Net Income

$9.01M

Previous: $13.1M-31.3%
Operating Income

$11.9M

Previous: $15.5M-23.7%
Stock-Based Comp

$874K

Previous: $729K+19.9%

Revenue & EPS history

Coastal Financial · Revenue · Quarterly

$124M

Q4 2023+29.2%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
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

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Credit quality concerns in the CCBX loan portfolio.
  • Potential exposure to additional credit losses if CCBX partners are unable to fulfill their contracted obligations.

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 Q4 2023

Historical avgQ4 2023

+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