Critical Comparison: First NBC Bank (OTCMKTS:FNBCQ) vs. Coastal Financial (NASDAQ:CCB)

Coastal Financial (NASDAQ:CCB) and First NBC Bank (OTCMKTS:FNBCQ) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Valuation and Earnings

This table compares Coastal Financial and First NBC Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coastal Financial	$703.32 million	1.66	$45.22 million	$3.25	26.60
First NBC Bank	N/A	N/A	N/A	N/A	N/A

Coastal Financial has higher revenue and earnings than First NBC Bank.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Coastal Financial and First NBC Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coastal Financial	0	0	2	1	3.33
First NBC Bank	0	0	0	0	0.00

Coastal Financial currently has a consensus target price of $90.67, indicating a potential upside of 4.88%. Given Coastal Financial’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Coastal Financial is more favorable than First NBC Bank.

Profitability

This table compares Coastal Financial and First NBC Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coastal Financial	6.43%	14.98%	1.20%
First NBC Bank	N/A	N/A	N/A

Insider & Institutional Ownership

59.2% of Coastal Financial shares are held by institutional investors. 16.8% of Coastal Financial shares are held by company insiders. Comparatively, 8.4% of First NBC Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Coastal Financial beats First NBC Bank on 10 of the 10 factors compared between the two stocks.

About Coastal Financial

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.

About First NBC Bank

First NBC Bank Holding Company operates as the bank holding company for First NBC Bank that provides a range of financial services for businesses, institutions, and individuals. The company's deposit products include savings deposits, money market accounts, negotiable order of withdrawal accounts, and certificates of deposit. Its loan portfolio comprises construction, commercial and consumer real estate, commercial and industrial, and consumer loans. The company also offers trust services, credit cards, and wire transfers. As of August 15, 2016, it operated 39 full service banking offices in New Orleans metropolitan area, Mississippi Gulf Coast, and the Florida panhandle. First NBC Bank Holding Company was founded in 2006 and is headquartered in New Orleans, Louisiana. On May 11, 2017, First NBC Bank Holding Company filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Eastern District of Louisiana. First NBC Bank Holding Company operates as a subsidiary of First NMTC 2, LLC.