Coastal Financial Corp. (CCB) reported a net income of $47.0 million, or $3.06 per diluted share, for the fiscal year ended December 31, 2025, compared to $45.2 million, or $3.26 per diluted share, for the previous year. The increase in net income was primarily driven by a $37.0 million increase in net interest income, which was partially offset by a $10.6 million increase in BaaS loan expense. The company's total assets reached $4.74 billion, with total loans receivable at $3.75 billion and total deposits at $4.14 billion. Shareholders' equity stood at $491.0 million.

The company's net interest income increased by 13.6% to $310.1 million, primarily due to growth in CCBX loans and a decrease in interest expense. Interest and fees on loans totaled $397.6 million, up from $372.0 million in the previous year. The CCBX segment saw a 21.2% increase in average loans receivable, reaching $1.73 billion, while the community bank segment remained relatively flat at $1.88 billion. The net interest margin was 7.14%, slightly lower than the 7.18% reported in the previous fiscal year.

Strategic developments for Coastal Financial included the continued expansion of its CCBX segment, which had 28 partners as of December 31, 2025. The company is focused on originating higher quality CCBX loans and managing credit and concentration levels. During the year, $6.64 billion in CCBX loans were sold, with the company retaining a portion of the transaction processing fee income. The company is also focused on organic growth of its community bank and the expansion of its CCBX segment.

Key operational developments included a decrease in the allowance for credit losses to $169.5 million, or 4.52% of total loans, reflecting improved credit quality in the CCBX portfolio. The company's nonperforming assets totaled $64.1 million, representing 1.71% of total loans. The company's efficiency ratio increased to 53.13%, compared to 42.38% in the previous year, due to higher noninterest expenses. The company's outlook includes continued focus on managing credit risk, growing its CCBX segment, and maintaining compliance with regulatory requirements.

About COASTAL FINANCIAL CORP

Coastal Financial Corporation is a bank holding company operating Coastal Community Bank, a Washington-based community bank serving the Puget Sound region. It offers a broad range of banking products, including commercial, real estate, consumer loans, and deposit services. Through its BaaS platform, it partners with digital financial providers to expand its reach. The company emphasizes relationship banking, risk management, technology investment, and community-focused growth.

This description was generated via AI from an annual report. Updated 8 months ago.

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