Coastal Financial (CCB)

What Moves the Stock

1. 01Net interest margin expansion or compression driven by Federal Reserve policy and deposit pricing competition
2. 02Loan portfolio growth rates in commercial real estate and C&I segments, particularly in King and Pierce Counties
3. 03Credit quality metrics including non-performing asset ratios and provision expense relative to loan growth
4. 04Deposit growth and cost of funds, especially non-interest bearing deposits as % of total deposits
5. 05Efficiency ratio improvements and operating expense discipline
6. 06Net interest income from commercial real estate loans (estimated 45-50% of loan portfolio)
7. 07Net interest income from commercial & industrial loans and residential mortgages (estimated 35-40% combined)
8. 08Non-interest income from deposit fees, treasury management services, and loan servicing (estimated 10-15% of revenue)

CCB Chart

My Notes

• value - The stock trades at 2.7x book value with 10% ROE, attracting value investors seeking regional bank exposure with potential…
• Net interest margin expands when short-term rates rise faster than deposit costs…
• Watch on earnings: Federal Funds Rate and trajectory of Fed policy relative to deposit beta (% of rate changes passed to depositors), 10-Year Treasury yield and 2-10 year spread as indicators of loan pricing environment and yield curve positioning, Seattle-Tacoma MSA employment growth and office vacancy rates as leading indicators of CRE credit quality.