Coastal Financial Corporation Announces Fiscal 2006 Second Quarter Earnings.MYRTLE BEACH, S.C. -- Coastal Financial Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CFCP) today announced earnings for the second fiscal quarter ended March 31, 2006. Net income for the second quarter of fiscal 2006 increased 12.3% to $4.6 million or $0.24 per share ($0.23 per share diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), as compared to $4.1 million or $0.21 per share ($0.20 per share diluted) for the same period of fiscal 2005. Net income for the first two quarters of fiscal 2006 increased 11.1% to $9.1 million or $0.47 per share ($0.45 per share diluted), compared to $8.2 million or $0.42 per share ($0.40 per share diluted) for the same period of fiscal 2005. At March 31, 2006, assets totaled $1.64 billion, an increase of 13.5% from $1.45 billion at March 31, 2005. During the same period, Customer Deposits increased 10.7%, from $804.7 million to $891.1 million, and loans receivable increased 16.6%, from $864.4 million to $1.0 billion. In comparing the second quarters of fiscal 2005 and 2006, net interest income after provision for loan losses grew 13.9% to $12.8 million. Returns on average assets and average equity were 1.14% and 18.4%, respectively, for the six months ended March 31, 2006, as compared to 1.19% and 18.6% for the comparable period in fiscal 2005. At March 31, 2006, non-performing assets to total assets was 0.26% as compared with 0.53% at March 31, 2005. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. C. Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. , President and Chief Executive Officer of Coastal Financial Corporation, said, "We are very pleased with the continued earnings momentum of Coastal Financial Corporation for the first two quarters of fiscal 2006. This continued level of operating performance reflects well on our Commitment to our Customers and Communities, and to our steadfast dedication to our QUEST FOR Verb 1. quest for - go in search of or hunt for; "pursue a hobby" quest after, go after, pursue look for, search, seek - try to locate or discover, or try to establish the existence of; "The police are searching for clues"; "They are searching for the EXCELLENCE Business Model." "During the second quarter of fiscal 2006, we announced a 9.8% increase in fiscal 2006 first quarter net income, and a $.05 per share cash dividend payable April 14, 2006 to Shareholders of record March 31, 2006. Other notable events include the nearing of completion of our new prototype branch offices at the intersection intersection /in·ter·sec·tion/ (-sek´shun) a site at which one structure crosses another. intersection a site at which one structure crosses another. of Hwy 701 and Country Club Drive in Conway, South Carolina Conway is a city in Horry County, South Carolina, United States. The population was 11,788 at the 2000 census. It is the county seat of Horry CountyGR6. It is the home of Coastal Carolina University. , at the intersection of Hwy 544 and Singleton sin·gle·ton n. An offspring born alone. singleton Medtalk One baby. Cf Triplet, Twin. Ridge Road The name Ridge Road can refer to multiple streets and roads. Canada
Surfside Beach is a small seaside town in Horry County, South Carolina, United States situated directly south of Myrtle Beach, South Carolina. Its nickname is "The Family Beach". . These results and activities are indicative of the continued growth and progress envisioned under our QUEST FOR EXCELLENCE Business Model," concluded Mr. Gerald. Coastal Financial Corporation, headquartered in Myrtle Beach, South Carolina Myrtle Beach is a city and in Horry County, South Carolina, United States. It is part of the Grand Strand, a stretch of beaches along the South Carolina coastline, and the combined Myrtle Beach-Conway-North Myrtle Beach MSA. , offers a broad range of commercial, consumer and mortgage financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. through two subsidiaries, Coastal Federal Bank and Coastal Retirement, Estate and Tax Planners, Inc. Coastal Federal Bank, with assets over $1.6 billion, is a federally chartered and FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). insured community bank with twenty-two offices serving the Communities of Horry and Georgetown Counties, South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. and Brunswick and New Hanover New Hanover or Lavongai (lävông`ī), volcanic island, c.460 sq mi (1,190 sq km), in the Bismarck Archipelago, part of Papua New Guinea. New Hanover is mountainous and densely forested. Counties, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. . Coastal Retirement, Estate and Tax Planners offers professional, objective, fee-based financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against services. Additional information about Coastal Federal is available on its web site at www.coastalfederal.com. Stock Trading Information The common stock of Coastal Financial Corporation is traded on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol "CFCP." For information, contact Raymond James  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . Financial Services at 1-843-918-7600. Dividend Reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. and Direct Stock Purchase Plan Coastal Financial Corporation offers Shareholders a Dividend Reinvestment and Direct Stock Purchase Plan which provides existing and new shareholders a convenient means for making purchases of Coastal Financial shares free of fees and brokerage commissions. Additional cash contributions, up to $1,000 per quarter, can be made to purchase additional shares. For more information, contact the Transfer Agent at 1-800-866-1340, Ext. 2514, or Investor Relations Investor relations The process by which the corporation communicates with its investors. . Shareholder Services Shareholders desiring to enroll in the Coastal Financial Corporation Dividend Reinvestment Plan Dividend Reinvestment Plan (DRP) Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. , change the name, address, or ownership of their stock certificates, report lost or stolen certificates, or consolidate accounts should contact the Transfer Agent at 1-800-866-1340, Ext. 2514, or Investor Relations. Investor Relations Analysts, investors and others seeking financial information should contact: Susan J. Cooke - Senior Vice President and Secretary Coastal Financial Corporation 2619 Oak Street Myrtle Beach, South Carolina 29577 (843) 205-2676 Forward Looking Statements This report may contain certain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , that represent the Company's expectations or beliefs concerning future events. All forward-looking statements are based on assumptions and involve risks and uncertainties, many of which are beyond the Company's control and which may cause its actual results, performance or achievements to differ materially from the results, performance or achievements contemplated by the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Forward-looking statements speak only as of the date they are made. Such risks and uncertainties include, among other things: --Competitive pressures among depository The place where a deposit is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box. and other financial institutions in the Company's market areas may increase significantly. --Adverse changes in the economy or business conditions, either nationally or in the Company's market areas, could increase credit-related losses and expenses and/or limit growth. --Increases in defaults by borrowers and other delinquencies could result in increases in the Company's provision for losses on loans and related expenses. --The Company's inability to manage growth effectively, including the successful expansion of the Company's Customer support, administrative infrastructure and internal management systems, could adversely affect the Company's results of operations and prospects. --Fluctuations in interest rates and market prices could reduce the Company's net interest margin and asset valuations and increase expenses. --The consequences of continued bank acquisitions and mergers in the Company's market areas, resulting in fewer but much larger and financially stronger competitors, could increase competition for financial services to the Company's detriment Any loss or harm to a person or property; relinquishment of a legal right, benefit, or something of value. Detriment is most frequently applied to contract formation, since it is an essential element of consideration, which is a prerequisite of a legally enforceable contract. . --The Company's continued growth will depend in part on its ability to enter new markets successfully and capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. other growth opportunities. --Changes in legislative or regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. , or actions by the Securities and Exchange Commission ("SEC"), the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). ("FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). "), or the Public Company Accounting Oversight Board The Public Company Accounting Oversight Board (or PCAOB) (sometimes called "Peekaboo") is a private-sector, non-profit corporation created by the Sarbanes-Oxley Act, a 2002 United States federal law, to oversee the auditors of public companies. , applicable to the Company and its subsidiaries could increase costs, limit certain operations and adversely affect results of operations. --Changes in tax requirements, including tax rate changes, new tax laws and revised tax law interpretations may increase the Company's tax expense or adversely affect its Customers' businesses. --Company initiatives now in place or introduced in the future, not producing results consistent with historic growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. or results which justify their costs. In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this report. Except as may be required by applicable law or regulation, the Company undertakes no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
Three Months Ended
March 31, March 31, Percentage
2006 2005 Change
Interest Income $ 24,138 $ 18,912 27.63%
Interest Expense 10,970 7,016 56.36%
Net Interest Income 13,168 11,896 10.69%
Provision for Loan Losses 330 625 -47.20%
Net Interest Income After
Provision for Loan Losses 12,838 11,271 13.90%
Other Income/a 4,201 3,336 25.93%
General & Administrative
Expenses 9,926 8,319 19.32%
Earnings Before Taxes 7,113 6,288 13.12%
Income Taxes 2,469 2,153 14.68%
Net Income $ 4,644 $ 4,135 12.31%
Earnings Per Common Share
Basic $ 0.24 $ 0.21 14.29%
Diluted $ 0.23 $ 0.20 15.00%
Average Common Shares
Outstanding
Basic (in thousands) 19,547 19,362 0.96%
Average Common Shares
Outstanding
Diluted (in thousands) 20,440 20,524 -0.41%
Net Interest Margin 3.57% 3.68% -2.99%
Return on Average Assets 1.15% 1.17% -1.71%
Return on Average Equity 18.63% 18.48% 0.81%
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
Six Months Ended
March 31, March 31, Percentage
2006 2005 Change
Interest Income $47,176 $36,858 27.99%
Interest Expense 20,732 13,446 54.19%
Net Interest Income 26,444 23,412 12.95%
Provision for Loan Losses 730 975 -25.13%
Net Interest Income After
Provision for Loan Losses 25,714 22,437 14.61%
Other Income/a 7,790 6,102 27.66%
General & Administrative Expenses 19,606 16,100 21.78%
Earnings Before Taxes 13,898 12,439 11.73%
Income Taxes 4,810 4,260 12.91%
Net Income $ 9,088 $ 8,179 11.11%
Earnings Per Common Share
Basic $ 0.47 $ 0.42 11.90%
Diluted $ 0.45 $ 0.40 12.50%
Average Common Shares Outstanding
Basic (in thousands) 19,488 19,278 1.09%
Average Common Shares Outstanding
Diluted (in thousands) 20,380 20,367 0.06%
Net Interest Margin 3.64% 3.67% -0.82%
Return on Average Assets 1.14% 1.19% -4.20%
Return on Average Equity 18.38% 18.57% -1.02%
/a: Gains (losses) on sales of securities of $30,000 and ($16,000)
are included in other income for the quarter and six months ended
March 31, 2006, respectively. For the quarter and six months ended
March 31, 2005, gains on sales of securities were $248,000 and
$406,000, respectively.
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
Percentage
Change
At At At from
March 31, Sept. 30, March 31, Sept. 30,
2006 2005 2005 2005
--------- -------- -------- --------
Total Assets (1) $1,643,991 $1,543,459 $1,448,158 6.51%
Loans Receivable, Net $1,008,168 $ 942,381 $ 864,407 6.98%
Customer Deposits (1)(2) $ 891,136 $ 901,013 $ 804,656 -1.10%
Shareholders' Equity $ 100,209 $ 97,221 $ 89,534 3.07%
Non-Performing Assets
to Total Assets (3) 0.26% 0.22% 0.53% 18.18%
Allowance for Loan
Losses as a Percentage of
Total Net Loans 1.21% 1.25% 1.36% -3.20%
Tangible Book Value
Per Share $ 5.12 $ 5.00 $ 4.61 2.40%
At or At or
For The For The
Three Months Three Months
Ended Ended
March 31, Sept. 30, Percentage
2006 2005 Change
.................................
Credit Quality:
Non-Performing Loans $ 3,137 $ 2,641 18.78%
Non-Performing Loans as a % of
Loans 0.31% 0.28% 10.71%
Allowance for Loan Losses as a %
of Non-Performing Loans 389.12% 444.83% -12.52%
Non-Performing Assets (3) $ 4,258 $ 3,459 23.10%
Non-Performing Assets as a % of
Loans and Foreclosed Property 0.42% 0.37% 13.51%
Net Loan Charge-Offs
as a % of Average Loans
(Annualized) 0.05% 0.12% -58.33%
Stock Performance
At quarter end:
Market Price Per Share of Common
Stock $ 13.76 $ 13.65 0.81%
Indicated Annual Dividend $ 0.20 $ 0.18 11.11%
Dividend Yield 1.45% 1.32% 9.85%
Price/Book Ratio 269.00% 273.00% -1.47%
Market Capitalization $269,464 $265,689 1.42%
(1) Total Assets and Customer Deposits in prior periods have been
reclassified to conform to the March 31, 2006 presentation.
(2) Customer Deposits exclude brokered deposits. Brokered deposits
were $189,304, $169,905 and $85,625 at March 31, 2006, September 30,
2005 and March 31, 2005, respectively.
(3) Non-performing assets consist of non-accrual loans 90 days or
more past due and real estate owned.
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