Exhibit 99.1
Press Release Dated February 18, 2004
NEWS ANNOUNCEMENT
Date: February 18, 2004
Contact: Susan J. Cooke
To: News Media
Release Date: Immediate
COASTAL FINANCIAL CORPORATION
ANNOUNCES STOCK DIVIDEND
Myrtle Beach, South Carolina, (February 18, 2004) . . . 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 March 24, 2004 to Shareholders of record as of March
10, 2004.
Michael C. Gerald, President and Chief Executive Officer of Coastal Financial
Corporation stated, "We are very pleased to continue to reward our Shareholders
for their investment with this stock dividend. This action on the part of our
Board is in recognition of the Corporation's continued outstanding financial
performance as indicated by the 20.7% increase in fiscal 2004 year-to-date net
income and 17.70% return on average Shareholders' equity. These significant
accomplishments pay tribute to our QUEST FOR EXCELLENCE Operating Philosophy,
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, 2003 were $.79 per
share ($.76 per share diluted), as compared to $.72 per share ($.70 per share
diluted) for the comparable 2002 period. The current cash dividend policy will
be adjusted for the effect of this stock dividend.
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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.
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
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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.
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