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COASTAL FINANCIAL CORPORATION ANNOUNCES STOCK DIVIDEND
TUESDAY MAY 27, 2003
MYRTLE BEACH, S.C.
Coastal Financial Corporation (Nasdaq: CFCP) today announced that the
Corporation's Board of Directors, at a meeting held today, declared a 10% stock
dividend. The stock dividend will be payable June 24, 2003 to Shareholders of
record as of June 10, 2003.
Michael C. Gerald, President and Chief Executive Officer of Coastal Financial
Corporation stated, "This action on the part of our Board is in recognition of
the Corporation's continued outstanding financial performance as indicated by
the 11.7% increase in fiscal 2003 year-to-date net income and 15.97% return on
average Shareholders' equity. These significant accomplishments pay tribute to
our superb Leadership Group and Associates and reflect the continuing emergence
of our primary market area as one of the fastest growing in the nation."
As a result of the common stock dividend, earnings per share will be
retroactively restated for all previous periods. Earnings per share, adjusted
for the stock dividend, for the year ended September 30, 2002 were $0.87 per
share ($0.85 per share diluted), as compared to $0.78 per share ($0.77 per share
diluted) for the comparable 2001 period. The current cash dividend policy will
be adjusted for the effect of this stock dividend.
Coastal Financial Corporation, headquartered in Myrtle Beach, South Carolina,
offers a broad range of commercial, consumer and mortgage financial services
through two subsidiaries, Coastal Federal Bank and Coastal Investor Services,
Inc. Coastal Federal Bank, with assets over $1 billion, is a federally chartered
and FDIC insured community bank with eighteen offices serving the communities of
Horry and Georgetown Counties, South Carolina and Brunswick and New Hanover
Counties, North Carolina. Coastal Investor Services engages in the sale of
alternative financial products. 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 under the symbol "CFCP." For information, contact Raymond James Financial
Services at 1-843-918- 7600, Herzog, Heine, Geduld, Inc. at 1-800-523-4936,
Knights Securities at 212-336-8690, Spear, Leeds & Kellogg at 1-800-526-3160 or
Trident Securities at 1-800-222-2618.
DIVIDEND REINVESTMENT 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 and at a discount to market price. 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.
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SHAREHOLDER SERVICES
Shareholders desiring to enroll in the Coastal Financial Corporation Dividend
Reinvestment Plan, change the name, address, or ownership of their stock
certificates, report lost or stolen certificates, or to 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:
o Susan J. Cooke - Senior Vice President and Secretary
o Coastal Financial Corporation
o 2619 Oak Street
o Myrtle Beach, South Carolina 29577
o (843) 205-2676
FORWARD LOOKING STATEMENTS
This news release may contain certain "forward-looking statements" within the
meaning of Section 27A of the Securities Exchange Act of 1934, as amended, that
represent Coastal Financial Corporation's (the "Company") expectations or
beliefs concerning future events. Such forward- looking statements are about
matters that are inherently subject to risks and uncertainties. Factors that
could influence the matters discussed in certain forward-looking statements
include the timing and amount of revenues that may be recognized by the Company,
continuation of current revenue and expense trends (including trends affecting
charge-offs), absence of unforeseen changes in the Company's markets, legal and
regulatory changes, and general changes in the economy (particularly in the
markets served by the Company). Because of the risks and uncertainties inherent
in forward looking statements, readers are cautioned not to place undue reliance
on them, whether included in this news release or made elsewhere from time to
time by the Company or on its behalf. The Company disclaims any obligation to
update such forward-looking statements. In addition, statements in this news
release regarding historical stock price performance are not indicative of or
guarantees of future price performance.