Coastal Financial Corporation Announces Record Fiscal 2001 Second Quarter Earnings

Apr 26, 2001, 01:00 ET from Coastal Financial Corporation

    MYRTLE BEACH, S.C., April 26 /PRNewswire/ --
     Coastal Financial Corporation (Nasdaq: CFCP) today announced record
 earnings for the second quarter and six months ended March 31, 2001.
     Net earnings for the second quarter of fiscal 2001 increased 6.7% to
 $2,230,000 or $0.31 per share ($0.31 per share diluted), as compared to
 $2,090,000 or $0.28 per share ($0.28 per share diluted) for the same period of
 fiscal 2000.
     Net earnings for the first two quarters of fiscal 2001 increased 8.5% to
 $4,446,000 or $0.61 per share ($0.61 per share diluted), compared to
 $4,096,000 or $0.55 per share ($0.55 per share diluted) for the same period of
 fiscal 2000.
     Included in Other Income, for the three and six month periods ended
 March 31, 2001, were gains on the sale of securities of $327,000 and $356,000,
 respectively.  Also included as an extraordinary item were penalties from the
 early repayment of advances of $393,000 during the period ended
 March 31, 2001.  Included in Other Income, for the three and six month periods
 ended March 31, 2000, were losses of $1.8 million on the sale of securities.
 Offsetting the loss on the sale of securities during these periods was a gain
 on sale of deposits of $1.7 million.
     During the six months ended March 31, 2001, the Company repurchased
 125,250 shares at an average price of $9.86 per share.  As a result of the
 decreased number of shares outstanding, diluted earnings per share for the six
 months ended March 31, 2001, improved 10.9% when compared to the prior year
 period.
     At March 31, 2001, assets totaled $799.9 million, an increase of 8.6%, or
 $63.0 million, from $736,883 million for the same quarter a year ago.  Loans
 receivable grew 4.7%, from $499.0 million to $522.4 and deposits increased
 27.9%, from $399.0 million to $510.3 million during the same period.  In
 comparing the second quarters of fiscal 2000 and 2001, net interest income
 after provision for loan losses grew 3.9% to $6.1 million.
     Returns on average assets and average equity were 1.14% and 17.7%
 respectively, for the six months ended March 31, 2001, as compared to 1.12%
 and 19.6% for the comparable period in fiscal 2000.
     At March 31, 2001 asset quality is good compared to peers, with
 nonperforming assets to total assets of 0.84%, as compared with 0.36% at
 March 31, 2000.
     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
 2001, particularly given the difficult business environment created by slowing
 economic conditions and strong competition for core loans and deposits.  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, we announced a 10.6% increase in fiscal 2001
 first quarter operating earnings and a $.065 per share cash dividend.  Other
 notable activities and accomplishments during this quarter include the opening
 of three new offices:  a Private Banking Center in Southport, North Carolina,
 an in-store banking center in the new BI-LO Grocery Store in Socastee, South
 Carolina and our first full service Sales Center in Wilmington, North
 Carolina.  We are currently finalizing preparations for opening an in-store
 banking center in the Harris Teeter Grocery Store in Litchfield Beach, South
 Carolina.  These initiatives were enabled by our keen focus on both the linear
 and transformational elements of our Vision 2005 Strategic Plan and our
 continued success in attracting, developing and retaining Career Associates.
     "We believe these results clearly indicate the progress we made during the
 second 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 Savings Bank and Coastal
 Investor Services.  Coastal Federal, with assets over $795 million, is a
 federally chartered and FDIC insured community bank with fifteen 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.
 
     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 - Vice President and Secretary
     Coastal Financial Corporation
     2619 Oak Street
     Myrtle Beach, South Carolina  29577
     (843) 205-2676
 
     Forward Looking Statements
     This report may contain certain "forward-looking statements" within the
 meaning of Section 27A of the Securities Exchange Act of 1934, as amended,
 that represent the Company's 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).  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            Six Months Ended
                        March     March  Percentage  March    March  Percentage
                         31,        31,    Change     31,       31,    Change
                        2001       2000              2001      2000
 
 
     Interest Income  $15,409    $14,098    9.30%  $31,063   $27,741   11.98%
     Interest Expense   9,046      7,966   13.56%   18,491    15,584   18.65%
 
     Net Interest
      Income            6,363      6,132    3.77%   12,572    12,157    3.41%
 
     Provision for
      Loan Losses         225        225     n/a       495       470    5.32%
     Net Interest Income
      After Provision
      for Loan Losses   6,138      5,907    3.91%   12,077    11,687    3.34%
 
     Other Income*      2,247      1,469   52.96%    3,885     2,932   32.50%
 
     General &
      Administrative
      Expenses          4,555      4,133   10.21%    8,655     8,242    5.01%
 
     Earnings Before
      Taxes             3,830      3,243   18.10%    7,307     6,377   14.58%
 
     Income Taxes       1,344      1,153   16.57%    2,605     2,281   14.20%
 
     Net Income Before
      Extraordinary
      Item              2,486      2,090   18.95%    4,702     4,096   14.79%
 
     Extraordinary Loss on
      Extinguishment of
      Debt,
       Net of Income
        Taxes of $137     256         --  100.00%      256        --  100.00%
 
     Net Income        $2,230     $2,090    6.70%   $4,446    $4,096    8.54%
 
     Earnings Per Common Share
      Before Extraordinary Item
 
     Basic              $0.34      $0.28   21.43%    $0.65     $0.55   18.18%
     Diluted            $0.34      $0.28   21.43%    $0.64     $0.55   16.36%
 
     Earnings Per Common Share
      After Extraordinary Item
 
     Basic              $0.31      $0.28   10.71%    $0.61     $0.55   10.91%
     Diluted            $0.31      $0.28   10.71%    $0.61     $0.55   10.91%
 
     Average Common Shares
      Outstanding
      Basic
     (in thousands)     7,226      7,384   -2.14%    7,274     7,400   -1.70%
 
     Average Common Shares
      Outstanding
      Diluted
     (in thousands)     7,309      7,471   -2.17%    7,341     7,504   -2.17%
 
     Net Interest
      Margin             3.32%      3.48%  -4.60%     3.38%     3.49%  -3.15%
 
     Return on Average
      Assets             1.13%      1.13%    n/a     1.14%     1.12%    1.79%
 
     Return on Average
      Equity            17.17%     19.93% -13.84%   17.69%    19.64%   -9.93%
 
 
     * Other Income includes gains on sales of securities available for sale of
       $327,000 and $356,000 for the three and six month periods ended
       March 31, 2001, respectively.  For the three and six month periods
       ended March 31, 2000, other income includes losses of $1.8 million on
       securities available for sale.  Offsetting the loss on the sale of
       securities was a gain on sale of deposits of $1.7 million.
 
 
                         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,
                              2001         2000         2000           2000
 
     Total Assets          $799,905      $768,838     $736,883         4.04%
 
     Loans Receivable, Net $522,350      $521,896     $498,988         0.09%
 
     Deposits              $510,288      $406,217     $398,965        25.62%
 
     Shareholders' Equity   $53,153       $46,945      $43,015        13.22%
 
     Non-Performing Assets
      to Total Assets **       0.84%         0.73%        0.36%       15.07%
 
     Allowance for Loan
      Losses as a
      Percentage of Total
      Loans
                               1.37%         1.35%        1.35%        1.48%
 
     Tangible Book Value
      Per Share               $7.39         $6.44        $5.83        14.75%
 
     ** 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
                                      March 31,    September 30,    Percentage
                                        2001           2000           Change
 
     Credit Quality:
      Non-Performing Loans            $5,480          $4,782          14.60%
      Non-Performing Loans as a %
       of Loans                         1.05%           0.92%         14.13%
      Allowance for Loan Losses as
       a % of Non-Performing Loans    130.64%         147.72%        -11.56%
      Non-Performing Assets           $6,723          $5,649          19.01%
      Non-Performing Assets as a %
       of Loans and Foreclosed
       Property                         1.28%           1.08%         18.52%
      Net Loan Charge-Offs
       as a % of Average Loans
       (Annualized)                     0.17%           0.04%        325.00%
 
     Stock Performance
     At quarter end:
      Market Price Per Share of
       Common Stock                   $13.52           $7.75          74.45%
      Indicated Annual Dividend        $0.26           $0.26            n/a
      Dividend Yield                    1.92%           3.35%        -42.69%
      Price/Book Ratio                183.00%         120.00%         52.50%
      Market Capitalization          $97,287         $56,478          72.26%
 
 
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SOURCE Coastal Financial Corporation
    MYRTLE BEACH, S.C., April 26 /PRNewswire/ --
     Coastal Financial Corporation (Nasdaq: CFCP) today announced record
 earnings for the second quarter and six months ended March 31, 2001.
     Net earnings for the second quarter of fiscal 2001 increased 6.7% to
 $2,230,000 or $0.31 per share ($0.31 per share diluted), as compared to
 $2,090,000 or $0.28 per share ($0.28 per share diluted) for the same period of
 fiscal 2000.
     Net earnings for the first two quarters of fiscal 2001 increased 8.5% to
 $4,446,000 or $0.61 per share ($0.61 per share diluted), compared to
 $4,096,000 or $0.55 per share ($0.55 per share diluted) for the same period of
 fiscal 2000.
     Included in Other Income, for the three and six month periods ended
 March 31, 2001, were gains on the sale of securities of $327,000 and $356,000,
 respectively.  Also included as an extraordinary item were penalties from the
 early repayment of advances of $393,000 during the period ended
 March 31, 2001.  Included in Other Income, for the three and six month periods
 ended March 31, 2000, were losses of $1.8 million on the sale of securities.
 Offsetting the loss on the sale of securities during these periods was a gain
 on sale of deposits of $1.7 million.
     During the six months ended March 31, 2001, the Company repurchased
 125,250 shares at an average price of $9.86 per share.  As a result of the
 decreased number of shares outstanding, diluted earnings per share for the six
 months ended March 31, 2001, improved 10.9% when compared to the prior year
 period.
     At March 31, 2001, assets totaled $799.9 million, an increase of 8.6%, or
 $63.0 million, from $736,883 million for the same quarter a year ago.  Loans
 receivable grew 4.7%, from $499.0 million to $522.4 and deposits increased
 27.9%, from $399.0 million to $510.3 million during the same period.  In
 comparing the second quarters of fiscal 2000 and 2001, net interest income
 after provision for loan losses grew 3.9% to $6.1 million.
     Returns on average assets and average equity were 1.14% and 17.7%
 respectively, for the six months ended March 31, 2001, as compared to 1.12%
 and 19.6% for the comparable period in fiscal 2000.
     At March 31, 2001 asset quality is good compared to peers, with
 nonperforming assets to total assets of 0.84%, as compared with 0.36% at
 March 31, 2000.
     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
 2001, particularly given the difficult business environment created by slowing
 economic conditions and strong competition for core loans and deposits.  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, we announced a 10.6% increase in fiscal 2001
 first quarter operating earnings and a $.065 per share cash dividend.  Other
 notable activities and accomplishments during this quarter include the opening
 of three new offices:  a Private Banking Center in Southport, North Carolina,
 an in-store banking center in the new BI-LO Grocery Store in Socastee, South
 Carolina and our first full service Sales Center in Wilmington, North
 Carolina.  We are currently finalizing preparations for opening an in-store
 banking center in the Harris Teeter Grocery Store in Litchfield Beach, South
 Carolina.  These initiatives were enabled by our keen focus on both the linear
 and transformational elements of our Vision 2005 Strategic Plan and our
 continued success in attracting, developing and retaining Career Associates.
     "We believe these results clearly indicate the progress we made during the
 second 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 Savings Bank and Coastal
 Investor Services.  Coastal Federal, with assets over $795 million, is a
 federally chartered and FDIC insured community bank with fifteen 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.
 
     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 - Vice President and Secretary
     Coastal Financial Corporation
     2619 Oak Street
     Myrtle Beach, South Carolina  29577
     (843) 205-2676
 
     Forward Looking Statements
     This report may contain certain "forward-looking statements" within the
 meaning of Section 27A of the Securities Exchange Act of 1934, as amended,
 that represent the Company's 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).  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            Six Months Ended
                        March     March  Percentage  March    March  Percentage
                         31,        31,    Change     31,       31,    Change
                        2001       2000              2001      2000
 
 
     Interest Income  $15,409    $14,098    9.30%  $31,063   $27,741   11.98%
     Interest Expense   9,046      7,966   13.56%   18,491    15,584   18.65%
 
     Net Interest
      Income            6,363      6,132    3.77%   12,572    12,157    3.41%
 
     Provision for
      Loan Losses         225        225     n/a       495       470    5.32%
     Net Interest Income
      After Provision
      for Loan Losses   6,138      5,907    3.91%   12,077    11,687    3.34%
 
     Other Income*      2,247      1,469   52.96%    3,885     2,932   32.50%
 
     General &
      Administrative
      Expenses          4,555      4,133   10.21%    8,655     8,242    5.01%
 
     Earnings Before
      Taxes             3,830      3,243   18.10%    7,307     6,377   14.58%
 
     Income Taxes       1,344      1,153   16.57%    2,605     2,281   14.20%
 
     Net Income Before
      Extraordinary
      Item              2,486      2,090   18.95%    4,702     4,096   14.79%
 
     Extraordinary Loss on
      Extinguishment of
      Debt,
       Net of Income
        Taxes of $137     256         --  100.00%      256        --  100.00%
 
     Net Income        $2,230     $2,090    6.70%   $4,446    $4,096    8.54%
 
     Earnings Per Common Share
      Before Extraordinary Item
 
     Basic              $0.34      $0.28   21.43%    $0.65     $0.55   18.18%
     Diluted            $0.34      $0.28   21.43%    $0.64     $0.55   16.36%
 
     Earnings Per Common Share
      After Extraordinary Item
 
     Basic              $0.31      $0.28   10.71%    $0.61     $0.55   10.91%
     Diluted            $0.31      $0.28   10.71%    $0.61     $0.55   10.91%
 
     Average Common Shares
      Outstanding
      Basic
     (in thousands)     7,226      7,384   -2.14%    7,274     7,400   -1.70%
 
     Average Common Shares
      Outstanding
      Diluted
     (in thousands)     7,309      7,471   -2.17%    7,341     7,504   -2.17%
 
     Net Interest
      Margin             3.32%      3.48%  -4.60%     3.38%     3.49%  -3.15%
 
     Return on Average
      Assets             1.13%      1.13%    n/a     1.14%     1.12%    1.79%
 
     Return on Average
      Equity            17.17%     19.93% -13.84%   17.69%    19.64%   -9.93%
 
 
     * Other Income includes gains on sales of securities available for sale of
       $327,000 and $356,000 for the three and six month periods ended
       March 31, 2001, respectively.  For the three and six month periods
       ended March 31, 2000, other income includes losses of $1.8 million on
       securities available for sale.  Offsetting the loss on the sale of
       securities was a gain on sale of deposits of $1.7 million.
 
 
                         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,
                              2001         2000         2000           2000
 
     Total Assets          $799,905      $768,838     $736,883         4.04%
 
     Loans Receivable, Net $522,350      $521,896     $498,988         0.09%
 
     Deposits              $510,288      $406,217     $398,965        25.62%
 
     Shareholders' Equity   $53,153       $46,945      $43,015        13.22%
 
     Non-Performing Assets
      to Total Assets **       0.84%         0.73%        0.36%       15.07%
 
     Allowance for Loan
      Losses as a
      Percentage of Total
      Loans
                               1.37%         1.35%        1.35%        1.48%
 
     Tangible Book Value
      Per Share               $7.39         $6.44        $5.83        14.75%
 
     ** 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
                                      March 31,    September 30,    Percentage
                                        2001           2000           Change
 
     Credit Quality:
      Non-Performing Loans            $5,480          $4,782          14.60%
      Non-Performing Loans as a %
       of Loans                         1.05%           0.92%         14.13%
      Allowance for Loan Losses as
       a % of Non-Performing Loans    130.64%         147.72%        -11.56%
      Non-Performing Assets           $6,723          $5,649          19.01%
      Non-Performing Assets as a %
       of Loans and Foreclosed
       Property                         1.28%           1.08%         18.52%
      Net Loan Charge-Offs
       as a % of Average Loans
       (Annualized)                     0.17%           0.04%        325.00%
 
     Stock Performance
     At quarter end:
      Market Price Per Share of
       Common Stock                   $13.52           $7.75          74.45%
      Indicated Annual Dividend        $0.26           $0.26            n/a
      Dividend Yield                    1.92%           3.35%        -42.69%
      Price/Book Ratio                183.00%         120.00%         52.50%
      Market Capitalization          $97,287         $56,478          72.26%
 
 
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 SOURCE  Coastal Financial Corporation