Exhibit 99.1
Press Release Dated April 24, 2003
NEWS ANNOUNCEMENT
Date: April 24, 2003
Contact: Susan J. Cooke
To: News Media
Release Date: Immediate
COASTAL FINANCIAL CORPORATION
ANNOUNCES FISCAL 2003 SECOND QUARTER EARNINGS
Myrtle Beach, South Carolina, (April 24, 2003) . . . Coastal Financial
Corporation (Nasdaq/CFCP) today announced earnings for the second fiscal quarter
ended March 31, 2003.
Net income for the second quarter of fiscal 2003 increased 11.6% to $2.8 million
or $0.26 per share ($0.25 per share diluted), as compared to $2.5 million or
$0.23 per share ($0.23 per share diluted) for the same period of fiscal 2002.
Net income for the first two quarters of fiscal 2003 increased 11.7% to $5.5
million or $0.52 per share ($0.50 per share diluted), compared to $4.9 million
or $0.46 per share ($0.45 per share diluted) for the same period of fiscal 2002.
In conjunction with the Company's stock repurchase plan which was announced
March 6, 2003, the Company repurchased approximately 28,000 shares at an average
price of $12.14 per share. At March 31, 2003, approximately 222,000 shares
remain available for repurchase under the plan.
At March 31, 2003, assets totaled $1.07 billion, an increase of 34.0% from
$798.7 million at March 31, 2002. During the same period, deposits increased
20.7%, from $556.2 million to $671.2 million, and loans receivable increased
21.2%, from $525.4 million to $636.8 million. In comparing the second quarters
of fiscal 2002 and 2003, net interest income after provision for loan losses
grew 8.8% to $8.3 million. Returns on average assets and average equity were
1.08% and 15.97%, respectively, for the six months ended March 31, 2003, as
compared to 1.27% and 17.07% for the comparable period in fiscal 2002.
At March 31, 2003, non-performing assets to total assets was 0.67% as compared
with 0.94% at March 31, 2002.
Michael C. Gerald, 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 2003,
particularly given the difficult business environment created by slowing
economic conditions and strong competition for deposits and loans. 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
EXCELLENCE Operating Philosophy."
"During the second quarter of fiscal 2003, we announced an 11.8% increase in
fiscal 2003 first quarter net income, a repurchase program to acquire up to
250,000 shares, or approximately 2.4% of the Corporation's outstanding common
shares and a $.055 per share cash dividend payable April 25, 2003 to
Shareholders of record April 11, 2003. Other notable events and accomplishments
during this quarter include the creation of a Small Business Banking Group to
provide better focus and execution for the delivery of financial services to the
residents and small businesses of the Communities we serve and the attainment of
the final stages of readiness for the conversion of our Information Technology
platform to a new, state-of-the-art system which will better support our
strategic plans. These activities are indicative of the continued growth and
progress envisioned under our Vision 2005 Plan, and are an outgrowth of our
QUEST FOR EXCELLENCE Operating Philosophy," concluded Mr. Gerald.
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.
2511, or Investor Relations.
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. 2511, 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 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.
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
Three Months Ended Six Months Ended
March 31, March 31, Percentage March 31, March 31, Percentage
2003 2002 Change 2003 2002 Change
---- ---- ------ ---- ---- ------
Interest Income $14,743 $12,987 13.52% $29,483 $26,355 11.87%
Interest Expense 5,625 5,153 9.16% 11,432 10,815 5.70%
----- ----- ------ ------
Net Interest Income 9,118 7,834 16.39% 18,051 15,540 16.16%
Provision for Loan Losses 870 255 241.18% 1,305 505 158.42%
----- ----- ------ ------
Net Interest Income After
Provision for Loan Losses 8,248 7,579 8.83% 16,746 15,035 11.38%
Other Income * 2,715 1,703 59.42% 5,382 3,877 38.82%
General & Administrative
Expenses ** 6,683 5,422 23.26% 13,547 11,153 21.46%
----- ----- ------ ------
Earnings Before Taxes 4,280 3,860 10.88% 8,581 7,759 10.59%
Income Taxes 1,526 1,393 9.55% 3,077 2,832 8.65%
----- ----- ------ ------
Net Income $2,754 $2,467 11.63% $5,504 $4,927 11.71%
====== ====== ====== ======
Basic $0.26 $0.23 13.04% $0.52 $0.46 13.04%
====== ====== ====== ======
Diluted $0.25 $0.23 8.70% $0.50 $0.45 11.11%
====== ====== ====== ======
Average Common Shares Outstanding
Basic (in thousands) 10,627 10,584 0.41% 10,601 10,657 -0.53%
Average Common Shares Outstanding
Diluted (in thousands) 11,052 10,826 2.09% 11,086 10,913 1.58%
Net Interest Margin 3.87% 4.34% -10.83% 3.84% 4.33% -11.32%
Return on Average Assets 1.05% 1.26% -16.67% 1.08% 1.27% -14.96%
Return on Average Equity 15.69% 17.02% -7.81% 15.97% 17.07% -6.44%
* Gains on sales of securities of $301,000 and $515,000 are included in other
income for the quarter and six months ended March 31, 2003, respectively. For
the quarter and six months ended March 31, 2002, losses were $60,000 and gains
were $71,000, respectively.
** Prepayment penalties on FHLB advances of $564,000 and $1.7 million are
included in general and administrative expenses for the quarter and six months
ended March 31, 2003, respectively. For the quarter and six months ended March
31, 2002, prepayment penalties were $196,000 and $676,000, respectively.
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
(CONTINUED)
Percentage
At At At Change from
March 31, Sept 30, March 31, September 30,
2003 2002 2002 2002
............ ........... ............ ..............
Total Assets $1,069,869 $950,796 $798,694 12.52%
Loans Receivable, Net $636,842 $555,545 $525,406 14.63%
Deposits $671,192 $637,081 $556,186 5.35%
Shareholders' Equity $70,678 $66,386 $58,396 6.47%
Non-Performing Assets
To Total Assets ** 0.67% 0.48% 0.94% 39.58%
Allowance for Loan Losses as a
Percentage of Total Loans 1.40% 1.42% 1.41% -1.41%
Tangible Book Value
Per Share $6.64 $6.27 $5.52 5.90%
At or for the
Three Months Ended
March 31, September 30, Percentage
2003 2002 Change
................ ................... .............
Credit Quality:
Non-Performing Loans $5,228 $3,514 48.78%
Non-Performing Loans as a % of Loans 0.82% 0.63% 30.16%
Allowance for Loan Losses as a % of
Non-Performing Loans 170.03% 224.33% -24.21%
Non-Performing Assets ** $7,139 $4,560 56.56%
Non-Performing Assets as a % of Loans
and Foreclosed Property 1.12% 0.82% 36.59%
Net Loan Charge-Offs
as a % of Average Loans (Annualized) 0.18% 0.08% 125.00%
Stock Performance
At Quarter End:
Market Price Per Share of Common Stock $11.81 $13.54 -12.78%
Indicated Annual Dividend $0.22 $0.22 n/a
Dividend Yield 1.86% 1.62% 14.81%
Price/Book Ratio 177.86% 216.00% -17.66%
Market Capitalization $125,611 $143,358 -12.38%
** Non-performing assets consist of nonaccrual loans, accruing loans 90 days or
more past due and real estate owned.