NasdaqGS:CCB

Stock Analysis Report

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Executive Summary

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to consumers and small to medium sized businesses in the Puget Sound region in Washington. More Details


Snowflake Analysis

Flawless balance sheet with acceptable track record.

Share Price & News

How has Coastal Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CCB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

CCB

-0.8%

US Banks

1.0%

US Market


1 Year Return

-7.1%

CCB

-26.3%

US Banks

13.6%

US Market

Return vs Industry: CCB exceeded the US Banks industry which returned -26.3% over the past year.

Return vs Market: CCB underperformed the US Market which returned 13.6% over the past year.


Shareholder returns

CCBIndustryMarket
7 Day-0.1%-0.8%1.0%
30 Day3.9%-0.8%-0.4%
90 Day-5.4%-3.1%8.9%
1 Year-7.1%-7.1%-23.7%-26.3%16.2%13.6%
3 Yearn/a-15.1%-22.1%40.2%30.8%
5 Yearn/a21.7%6.6%89.6%68.2%

Price Volatility Vs. Market

How volatile is Coastal Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Coastal Financial undervalued compared to its fair value and its price relative to the market?

0.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CCB ($14.59) is trading below our estimate of fair value ($14.72)

Significantly Below Fair Value: CCB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CCB is poor value based on its PE Ratio (12.9x) compared to the US Banks industry average (9.8x).

PE vs Market: CCB is good value based on its PE Ratio (12.9x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: CCB is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: CCB is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Coastal Financial forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCB's forecast earnings growth (10.5% per year) is above the savings rate (2.2%).

Earnings vs Market: CCB's earnings (10.5% per year) are forecast to grow slower than the US market (23.2% per year).

High Growth Earnings: CCB's earnings are forecast to grow, but not significantly.

Revenue vs Market: CCB's revenue (11% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: CCB's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCB's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Coastal Financial performed over the past 5 years?

32.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCB has high quality earnings.

Growing Profit Margin: CCB's current net profit margins (26.6%) are lower than last year (26.7%).


Past Earnings Growth Analysis

Earnings Trend: CCB's earnings have grown significantly by 32.8% per year over the past 5 years.

Accelerating Growth: CCB's earnings growth over the past year (15%) is below its 5-year average (32.8% per year).

Earnings vs Industry: CCB earnings growth over the past year (15%) exceeded the Banks industry -3.1%.


Return on Equity

High ROE: CCB's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Coastal Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: CCB's Assets to Equity ratio (12.8x) is moderate.

Allowance for Bad Loans: CCB has a sufficient allowance for bad loans (335%).

Low Risk Liabilities: 84% of CCB's liabilities are made up of primarily low risk sources of funding.

Loan Level: CCB has an appropriate level of Loans to Assets ratio (85%).

Low Risk Deposits: CCB's Loans to Deposits ratio (110%) is appropriate.

Level of Bad Loans: CCB has an appropriate level of bad loans (0.3%).


Next Steps

Dividend

What is Coastal Financial current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CCB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CCB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CCB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CCB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CCB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Eric Sprink (47 yo)

10.67yrs

Tenure

US$1,006,470

Compensation

Mr. Eric M. Sprink has been Chief Executive Officer of Coastal Financial Corporation since 2010 and serves as its President. Mr. Sprink joined the Coastal Financial Corporation in late 2006 and served as i ...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD1.01M) is about average for companies of similar size in the US market ($USD1.29M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eric Sprink
President10.67yrsUS$1.01m0.17%
$ 294.3k
Joel Edwards
Executive VP7.83yrsUS$522.91k0.18%
$ 314.6k
Russell Keithley
Executive VP & Chief Lending Officerno dataUS$470.24k0.033%
$ 56.9k
Erika Heer
Executive VP & Chief Human Resources Officer1.92yrsno datano data
Daniel Lee
Executive VP and Chief Credit & Risk Officer1.92yrsno data0.26%
$ 447.7k
John Dickson
Executive VP & COO of Coastal Community Bankno datano data0.23%
$ 399.8k

4.9yrs

Average Tenure

59yo

Average Age

Experienced Management: CCB's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Sprink
President10.67yrsUS$1.01m0.17%
$ 294.3k
Steven Hovde
Independent Director9.67yrsUS$50.00k14.33%
$ 24.9m
Thomas Lane
Independent Director23.67yrsUS$50.00k0.98%
$ 1.7m
Andrew Skotdal
Independent Vice Chairmanno dataUS$52.50k4.28%
$ 7.4m
Gregory Tisdel
Independent Director18.67yrsUS$45.00k0.088%
$ 153.5k
Stephan Klee
Independent Director2.17yrsUS$55.00k0.0052%
$ 9.0k
Andrew Dale
Independent Director9.67yrsUS$45.00k0.50%
$ 874.1k
Christopher Adams
Independent Chairmanno dataUS$50.00k0.16%
$ 278.6k
Sadhana Akella-Mishra
Independent Director1.33yrsUS$25.83k0.0024%
$ 4.1k

9.7yrs

Average Tenure

49yo

Average Age

Experienced Board: CCB's board of directors are considered experienced (9.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CCB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Coastal Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Coastal Financial Corporation
  • Ticker: CCB
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$174.018m
  • Shares outstanding: 11.93m
  • Website: https://www.coastalbank.com

Number of Employees


Location

  • Coastal Financial Corporation
  • 5415 Evergreen Way
  • Everett
  • Washington
  • 98203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2018
1VDDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2018

Biography

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to consumers and small to medium sized businesses in the Pu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 06:12
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.