Coastal Community Bank forms new financial arm

Coastal Community Bank of Everett will form a bank holding company, a move officials say will position it for future growth.

The move gives Coastal "more options than we would have if we were (to remain) a bank," president Mark Duffy said Friday.

The corporate reorganization will create a new company, Coastal Financial Corp., that will own the bank.

The holding company will be able to engage in types of long-term borrowing that banks are not allowed to do, Duffy said. That will allow the company to build up its capital reserves.

That’s important, because the bank has "pretty much grown into our original capital," Duffy said.

The move also gives Coastal the option of one day starting subsidiaries in the financial services industry, or buying up other banks. There aren’t plans to do either right now, Duffy said.

Six-year-old Coastal Community Bank passed the $100 million mark in total assets this year. The bank experienced 50 percent growth this year, Duffy said.

"Loan volumes have been pretty good," he said. As a small bank, Coastal has the flexibility to "take on deals that don’t fit in the boxes of other banks."

Coastal will remain a closely held company with its stock not publicly traded.

Reporter Bryan Corliss: 425-339-3454 or corliss@heraldnet.com.