Coastal Financial Corp (EVERETT) (CCB) News & EventsCCBCoastal Financial Corp (EVERETT)

Valley National Acquires Bluevine for $340M

Valley National's (VLY) agreement to acquire Bluevine for $340M, and the subsequent termination of Bluevine's partner-bank program, is a "modest negative" for Coastal Financial, Raymond James tells investors in a research note. The firm, which has an Outperform rating on Coastal Financial shares, says that only $447M of Bluevine-related deposits were held on Coastal's balance sheet at September 25, and that its analysis suggests that the relationship could represent 22c-52c per share of annualized EPS. The firm thinks the stock reaction exceeds the direct earnings impact.

Coastal Financial Discloses Bluevine Acquired by Valley National

Coastal Financial (CCB) disclosed that on September 28, Bluevine, a financial technology partner of Coastal Community Bank, announced that it entered into an agreement to be acquired by Valley National (VLY). Bluevine and Coastal Financial "have maintained a productive relationship for many years," the bank added. As of June 30, Coastal Financial's CCBX unit had 22 active partner relationships "across a diversified range of products and services," it added. Coastal Financial does not currently expect the Bluevine transaction, or any resulting changes to the Bluevine deposit relationship, to have a "material adverse effect" on its liquidity or funding profile. As of September 25, $447M of Bluevine-related deposits were held on Coastal Financial's balance sheet. The bank's "funding alternatives, including the ability to bring sweep deposits back onto its balance sheet, provide flexibility to replace Bluevine-related deposits," it notes. Shares of Coastal Financial are down 17% to $37.07 in late morning trading.