EVERETT, Wash., April 7, 2011 (GLOBE NEWSWIRE) -- Coastal Financial Corporation, a Washington and parent company of Coastal Community Bank, announced today that it successfully raised $6.2 million in capital in the first quarter of 2011 to support demand for increased local lending and deposit services. With the addition of $6 million in additional funding this quarter, the Bank has successfully completed its objective of raising over $10 million in new capital since May of 2010. Assisting Coastal in its capital raising efforts was Hovde Securities, LLC, a FINRA registered broker dealer who acted as the lead placement agent and advisor for the private placement. Coastal Financial Corporation used $3.2 million of the capital raised last year to pay off corporate debt and intends to use the remaining capital to support the Bank's business initiatives.
"New customer checking and savings accounts have increased over 66% in the last 26 months amounting to an increase of $48 million in core deposits," said Eric Sprink, President and CEO.
"Coastal Community Bank remained well capitalized throughout the recession without taking any government assistance, and this additional capital will support increased rates of growth across all our product lines, including loans" said Sprink. "The success of the offering and the Bank's deposit and loan growth are strong indicators that the need and support for a Snohomish County headquartered community bank is great."
Sprink firmly believes that local relationships have allowed the Bank to weather the economic downturn. "Our customers and investors have been incredibly supportive of our mission. We're building our Bank one relationship at a time, and each of our investors and accounts means another vote of confidence in the value of community banking."
"As a result of bank failures and pending mergers by other Washington banks with out of state banks, Coastal Community Bank is positioned to become the largest commercial bank headquartered in Snohomish County. With that said, Coastal is very much a community bank, providing outstanding service from local decision makers."
Local leaders have long seen the value and economic contribution of locally headquartered community banks. "This capital raise is a welcome infusion of optimism during a challenging economic time in our community," Everett Mayor Ray Stephanson said. "Community banks are an asset to our local economy and provide important financial services."
"It makes perfect sense to me that Coastal Community Bank was able to raise this capital without aid from the Federal government," said Geoff Goldfinch, of Goldfinch Brothers, Inc. "Coastal has been investing in our communities since 1997 with a consistent commitment for years and that's why customers like myself and our company are so loyal. Not to mention the fact that we could not ask for more personal service from a bank that really knows and understands our banking needs."
Coastal Community Bank is headquartered in Everett, Washington with 8 branches in Island and Snohomish County. With approximately $240 million in assets, the bank was established in 1997 as a full service commercial bank providing personal and business lending and deposit products.
The Coastal Community Bank logo is available at
This press release contains forward-looking statements including, but not limited to, statements about Coastal Financial Corporation's and Coastal Community Bank's plans, objectives, estimates or projections, future financial condition, expected or anticipated revenues with respect to our results of operations and our business, expectations and intention and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties which may cause actual results to differ materially from those contemplated in the forward-looking statements. The forward-looking statements in this press release speak only as of the date of the press release and Coastal Financial Corporation does not assume any obligation to update the forward-looking statements or to update the reason why actual results could differ from those contained in the forward-looking statement.
This press release is not and is not to be construed as an offer to sell securities of Coastal Financial Corporation.
CONTACT: Eric Sprink, President and Chief Executive Officer, (425) 257-9000