-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RzqPTC/Kyx/bE3kRr+VmrmIVUkvQZXwbID746pYYfLf7W4icrlrrtX96oQvplgf4 /dbDytJT4Gzo2brWIRt9CA== 0000914317-05-002358.txt : 20050721 0000914317-05-002358.hdr.sgml : 20050721 20050721143331 ACCESSION NUMBER: 0000914317-05-002358 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050720 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050721 DATE AS OF CHANGE: 20050721 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COASTAL FINANCIAL CORP /DE CENTRAL INDEX KEY: 0000935930 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 570925911 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-01274 FILM NUMBER: 05965874 BUSINESS ADDRESS: STREET 1: 2619 NORTH OAK CITY: MYRTLE BEACH STATE: SC ZIP: 29577-3129 BUSINESS PHONE: 8432052000 8-K 1 form8k-69764_coastal.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 20, 2005

COASTAL FINANCIAL CORPORATION
(Exact Name of Registrant as Specified in Its Charter)


Delaware
(State or other jurisdiction of
incorporation or organization) 		0-19684
(Commission
File Number) 		57-0925911
(IRS Employer
Identification No.)


2619 Oak Street, Myrtle Beach, South Carolina 29577
(Address of principal executive offices) (Zip Code)

(843)205-2000
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02     Results of Operations and Financial Condition

        On July 20, 2005, Coastal Financial Corporation announced its financial results for the third fiscal quarter ended June 30, 2005. The press release announcing financial results for the third fiscal quarter ended June 30, 2005 is filed as Exhibit 99.1 and incorporated herein by reference.

Item 9.01     Financial Statements and Exhibits.

  Exhibit 99.1        Press Release dated July 20, 2005

SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

COASTAL FINANCIAL CORPORATION



By:  /s/ Michael C. Gerald
        ————————————————
        Michael C. Gerald
        President and Chief Executive Officer


EX-99.1 2 ex99-1.htm

NEWS ANNOUNCEMENT


Date:

Contact:

To:

Release Date: 		July 20, 2005

Susan J. Cooke

News Media

Immediate


COASTAL FINANCIAL CORPORATION
ANNOUNCES FISCAL 2005
THIRD QUARTER EARNINGS


Myrtle Beach, South Carolina, (July 20, 2005) . . . Coastal Financial Corporation (Nasdaq/CFCP) today announced earnings for the third quarter and nine months ended June 30, 2005.

Net income for the third quarter of fiscal 2005 increased 11.7% to $4.4 million or $0.25 per share ($0.23 per share diluted), as compared to $3.9 million or $0.22 per share ($0.21 per share diluted) for the same period of fiscal 2004.

Net income for the first three quarters of fiscal 2005 increased 15.1% to $12.5 million or $0.71 per share ($0.68 per share diluted), compared to $10.9 million or $0.63 per share ($0.60 per share diluted) for the same period of fiscal 2004.

At June 30, 2005, assets totaled $1.5 billion, an increase of 16.1%, or $206.2 million, from $1.3 billion at June 30, 2004. Customer deposits increased 15.5% to $882.1 million at June 30, 2005, as compared to $764.0 million at June 30, 2004 and Shareholders’ equity grew by 22.7% during the same period.

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Returns on average assets and average equity were 1.19% and 18.80%, respectively, for the three months ended June 30, 2005, compared to 1.23% and 19.60%, respectively, for the prior year period.

At June 30, 2005, non-performing assets to total assets were 0.29% as compared with 0.46% at June 30, 2004.

Michael C. Gerald, President and Chief Executive Officer of Coastal Financial Corporation, said: “Our financial performance during this quarter, and year-to-date, reflects well on our region’s continuing economic strength and on Coastal Financial’s ability to effectively execute its strategic plans. The increase in Customer deposits and loans through internal growth and de novo branching activities coupled with our steadfast dedication to our QUEST FOR EXCELLENCE Business Model and Vision 2005 Plan have also been key factors in our exceptional financial performance through the first nine months of fiscal 2005.”

“As evidenced by our launch of Coastal Federal as The Carolinas’ Most Convenient Bank earlier this year, we are unrelenting in our commitment to embracing change and constant improvement as catalysts for executing on our Mission of Exceeding The Expectations of our Customer in ways that add value for our Customers and Shareholders.”

“During the third quarter, we announced a 12.5% increase in fiscal 2005 second quarter net income over the comparable prior year quarter, and an increase in our cash dividend to five cents ($.05) per share which will be paid July 22, 2005 to Shareholders of record as of July 8, 2005.

“Other notable events and accomplishments during this quarter include construction on our newest branch offices in Conway, South Carolina and Oak Island, North Carolina and the acquisition of sites for new branch offices at the intersection of Highways 9 and 57 in Longs, South Carolina, at the intersection of Highways 544 and Singleton Ridge Road in Conway, South Carolina and at Sayebrook Village West in Surfside Beach, South Carolina. These activities are indicative of the continued growth and progress envisioned under our Vision 2005 Plan and clearly indicate the progress we made during the third quarter toward our Basic Corporate Objective of Maximizing The Value Of Our Shareholders’ Investment and our Long-Term Goal of Being The Best Financial Services Company In Our Marketplace,” 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 $1.5 billion in assets, is a federally chartered and FDIC insured

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Community bank with nineteen 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, Inc. 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.

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. 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

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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.

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COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)

Three Months Ended Nine Months Ended
June 30,
2005 		June 30,
2004 		Percentage
Change 		June 30,
2005 		June 30,
2004 		Percentage
Change
                             
Interest Income     $ 20,337   $ 16,661     22.06% $  57,195  $ 48,352    18.29%  
Interest Expense       7,831     5,892     32.91%   21,278     17,466     21.83%
 
     
Net Interest Income       12,506     10,769     16.13%   35,917     30,886     16.29%
     
Provision for Loan Losses       550     200     175.00%   1,525     1,250     22.00%
 
     
Net Interest Income After    
  Provision for Loan Losses       11,956     10,569     13.12%   34,392     29,636     16.05%
     
Other Income *       3,101     2,121     46.20%   9,204     6,879     33.80%
     
General & Administrative    
  Expenses **       8,420     6,773     24.32%     24,520   20,118     21.88%  
 
     
Earnings Before Taxes       6,637     5,917     12.17%   19,076     16,397     16.34%
     
Income Taxes       2,281     2,018     13.03%   6,541     5,502     18.88%
 
     
Net Income     $ 4,356   $ 3,899     11.72% $  12,535 $  10,895    15.05%  
 
      
  Basic     $  0.25 $  0.22   13.64% $  0.71 $ 0.63   12.70%
 
  Diluted     $  0.23 $  0.21   9.52%   $  0.68 $ 0.60   13.33%
 
     
Average Common Shares Outstanding    
Basic (in thousands)       17,657     17,430     1.30%   17,558     17,293     1.53%
      
Average Common Shares Outstanding    
Diluted (in thousands)       18,634     18,356     1.51%   18,545     18,266     1.53%
     
Net Interest Margin       3.71%   3.64%   1.92%   3.68%   3.58%   2.79%
     
Return on Average Assets       1.19%   1.23%   -3.25%   1.19%   1.17%   1.71%
     
Return on Average Equity       18.80%   19.60%   -4.08%   18.56%   18.80%    -1.28%  
     

* Gains (losses) on sales of securities of ($127,000) and $279,000 are included in other income for the quarter and nine months ended June 30, 2005 respectively. For the quarter and nine months ended June 30, 2004, losses were $440,000 and $707,000, respectively.

** The Company did not incur any prepayment penalties on FHLB advances for the quarter and nine months ended June 30, 2005. For the quarter and nine months ended June 30, 2004, prepayment penalties, which are included in general and administrative expenses were zero and $77,000, respectively.


COASTAL FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in Thousands Except Per Share Data)
(CONTINUED)


At
June 30,
2005

At
Sept 30,
2004

At
June 30,
2004
Percentage
Change from
September 30,
2004
                     
Total Assets     $ 1,486,058   $ 1,305,485   $ 1,279,877     13.83%
     
Loans Receivable, Net     $ 911,828   $ 798,976   $ 784,083     14.12%
     
Customer Deposits (1)     $ 882,117   $ 753,379   $ 763,990     17.09%
     
Shareholders' Equity     $ 95,829   $ 85,348   $ 78,122     12.28%
     
Non-Performing Assets    
  To Total Assets (2)       0.29%   0.51%   0.46%   -43.14%
     
Allowance for Loan Losses as a    
  Percentage of Total Loans       1.30%   1.39%   1.38%   -6.47%
     
Tangible Book Value    
  Per Share     $ 5.42   $ 4.88   $ 4.48     11.07%

(1) Customer deposits exclude brokered deposits. Brokered deposits were $125,489 at June 30, 2005. There were no brokered deposits at September 30, 2004 or June 30, 2004.

(2) Non-performing assets consist of nonaccrual loans 90 days or more past due and real estate owned.

At or for the
Three Months Ended
June 30,
2005
 September 30,
2004
 Percentage
Change
               
Credit Quality:    
   Non-Performing Loans     $ 3,768   $ 5,856     -35.66%
   Non-Performing Loans as a % of Loans       0.41%   0.73%   -43.84% 
   Allowance for Loan Losses as a % of    
     Non-Performing Loans       314.58%   189.16%   66.30%
   Non-Performing Assets (2)     $ 4,290   $ 6,641     -35.40%
   Non-Performing Assets as a % of Loans    
     and Foreclosed Property       0.47%   0.83%   -43.37% 
   Net Loan Charge-Offs    
     as a % of Average Loans (Annualized)       0.21%   0.13%   61.54%
     
Stock Performance    
At Quarter End:    
   Mkt. Price Per Share of Common Stock     $ 14.65 $ 13.14   11.49%
   Indicated Annual Dividend     $ 0.20 $ 0.18   11.11%
   Dividend Yield       1.37%   1.38%    -0.72% 
   Price/Book Ratio       270%   269%    0.37%
   Market Capitalization     $ 258,840   $ 229,713     12.68%

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