April 5, 2011  - We are pleased to announce that Montlake Capital II has completed a growth investment in Coastal Financial Corporation, the parent company of Coastal Community Bank (www.coastalbank.com).  Montlake completed the investment alongside new and existing institutional investors.  Funds will be used to support demand for increased local community lending and deposit services.

 

Coastal Community Bank was established in 1997 as a full service commercial bank providing personal and business banking services.  Headquartered in Everett, Washington, the bank has eight branches throughout Island and Snohomish Counties. As a result of recent 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.

 

The Montlake Capital team has extensive banking experience and a history of successful investing in financial services firms, including investments made in Commerce Bank and Northwestern Trust.  The firm has long sought opportunities to continue investing in the financial services industry, and has evaluated a number of community banks in the last year.  The banking industry is currently recovering from a substantial downturn, which has created a compelling opportunity to invest in stable banks like Coastal.  Over the last 24 months, Coastal's management team has significantly improved the health of the bank. As a result, Coastal is well positioned to take advantage of the dislocation in its marketplace and accelerate growth.

 

"Montlake's strategy has always been to partner with outstanding management teams executing against significant growth opportunities.  Coastal Community Bank is a great example of this," said Andy Dale, a Managing Director of Montlake Capital. "We are excited to be investing in and partnering with Coastal to support the continued expansion of this growing business."