Exhibit 99.1
Press Release Dated January 28, 2004
NEWS ANNOUNCEMENT
Date: January 28, 2004
Contact: Susan J. Cooke
To: News Media
Release Date: Immediate
COASTAL FINANCIAL CORPORATION
ANNOUNCES FISCAL 2004 FIRST QUARTER EARNINGS
Myrtle Beach, South Carolina, (January 28, 2004) . . . Coastal Financial
Corporation (Nasdaq/CFCP) today announced earnings for the first fiscal quarter
ended December 31, 2003.
Net income for the first quarter of fiscal 2004 increased 20.7% to $3.3 million
or $0.26 per share ($0.24 per share diluted), as compared to $2.8 million or
$0.21 per share ($0.20 per share diluted) for the same period of fiscal 2003.
At December 31, 2003, assets totaled $1.23 billion, an increase of 19.6% from
$1.02 billion at December 31, 2002. During the same period, deposits increased
7.2%, from $636.2 million to $682.2 million, and loans receivable increased
23.0%, from $586.8 million to $721.6 million. In comparing the first quarters of
fiscal 2003 and 2004, net interest income after provision for loan losses grew
9.0% to $9.3 million.
Returns on average assets and average equity were 1.10% and 17.70%,
respectively, for the three months ended December 31, 2003, as compared to 1.11%
and 16.16% for the comparable period in fiscal 2003.
At December 31, 2003, asset quality continues to be good with non-performing
assets to total assets of 0.68% as compared with 0.58% at December 31, 2002.
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Michael C. Gerald, President and Chief Executive Officer of Coastal Financial
Corporation, said, "We are very pleased with the performance of Coastal
Financial Corporation for the first quarter of fiscal 2004, particularly given
the strong competition for deposits and loans. During the first quarter of
fiscal 2004, we commenced our fourth year of operational initiatives under the
guidance of our Vision 2005 strategic plan. Throughout fiscal 2003 and during
the first quarter of fiscal 2004, we have made good progress toward attainment
of the goals established under this plan. Our operating results for this quarter
indicate that we continue to be rewarded for these initiatives."
"During the first quarter of fiscal 2004, we announced a 7.8% increase in fiscal
2003 diluted per share net income and a $.055 per share cash dividend. Other
notable events and accomplishments during this quarter include the start of
construction on our permanent banking office in Shallotte, North Carolina and
the commencement of Coastal Federal Bank's 50th Anniversary celebration. 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 Retirement, Estate
and Tax Planners, Inc. Coastal Federal Bank, with assets over $1.2 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 Retirement, Estate
and Tax Planners offers professional, objective, fee-based financial planning
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 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,
Knight 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:
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. Except as may be required by applicable
law or regulation, the Company disclaims any obligation to update such
forward-looking statements.
#####
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
Three Months Ended
Dec. 31, Dec. 31, Percentage
2003 2002 Change
Interest Income $15,535 $14,740 5.39%
Interest Expense 5,725 5,807 -1.41%
------- -------
Net Interest Income 9,810 8,933 9.82%
Provision for Loan Losses 550 435 26.44%
------- -------
Net Interest Income After
Provision for Loan Losses 9,260 8,498 8.97%
Other Income* 2,326 2,667 -12.79%
General & Administrative
Expenses ** 6,614 6,864 -3.64%
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Earnings Before Taxes 4,972 4,301 15.60%
Income Taxes 1,653 1,551 6.58%
------- -------
Net Income $ 3,319 $ 2,750 20.69%
======= =======
Earnings Per Common Share ***
Basic $ 0.26 $ 0.21 23.81%
======= =======
Diluted $ 0.24 $ 0.20 20.00%
======= =======
Average Common Shares Outstanding
Basic (in thousands) *** 12,936 12,830 0.83%
Average Common Shares Outstanding
Diluted (in thousands) *** 13,760 13,433 2.43%
Net Interest Margin 3.48% 3.67% -5.18%
Return on Average Assets 1.10% 1.11% -0.90%
Return on Average Equity 17.70% 16.16% 9.53%
*Gains (losses) on sales of securities of ($200,000) and $214,000 are included
in other income for the quarter ended December 31, 2003 and 2002, respectively.
**Prepayment penalties on FHLB advances of $9,000 and $1.1 million are included
in general and administrative expenses for the quarter ended December 31, 2003
and 2002, respectively.
***All share and per share data have been restated to reflect two 10% stock
dividends declared on May 27, 2003 and August 28, 2003.
COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
(CONTINUED)
Percentage
At At At Change from
Dec. 31, Sept. 30, Dec. 31, September 30,
2003 2003 2002 2003
.......... .......... .......... .............
Total Assets $1,225,338 $1,181,209 $1,024,388 3.74%
Loans Receivable, Net $ 721,578 $ 701,833 $ 586,752 2.81%
Deposits $ 682,242 $ 697,012 $ 636,224 -2.12%
Shareholders' Equity $ 76,288 $ 73,707 $ 69,765 3.50%
Non-Performing Assets
to Total Assets ** 0.68% 0.77% 0.58% -11.69%
Allowance for Loan Losses as a
Percentage of Total Net Loans 1.43% 1.40% 1.41% 2.14%
Tangible Book Value
Per Share $ 5.88 $ 5.70 $ 5.43 3.16%
** Non-performing assets consist of nonaccrual loans, accruing loans 90 days or
more past due and real estate owned.
At or for the At or for the
Three Months Ended Three Months Ended
Dec. 31, Sept. 30, Percentage
2003 2003 Change
.................. .................. ...........
Credit Quality:
Non-Performing Loans $ 7,026 $ 7,449 -5.68%
Non-Performing Loans as a % of Loans 0.97% 1.06% -8.49%
Allowance for Loan Losses as a % of
Non-Performing Loans 146.84% 131.99% 11.25%
Non-Performing Assets ** $ 8,361 $ 9,077 -7.89%
Non-Performing Assets as a % of Loans
and Foreclosed Property 1.16% 1.29% -10.08%
Net Loan Charge-Offs
as a % of Average Loans (Annualized) 0.04% 0.11% -63.64%
Stock Performance
At quarter end:
Market Price Per Share of Common Stock $ 17.67 $ 13.99 26.30%
Indicated Annual Dividend $ 0.22 $ 0.22 n/a
Dividend Yield 1.25% 1.57% -20.38%
Price/Book Ratio 301.00% 245.00% 22.86%
Market Capitalization $ 229,065 $ 180,765 26.72%