Coastal Financial Corporation Reports Q2 2025 Net Income of $11.0 Million, Total Assets Increase to $4.48 Billion

Coastal Financial Corporation reported a net income of $11.0 million for the second quarter of 2025, translating to $0.71 per diluted share, a decrease from $11.6 million, or $0.84 per diluted share, in the same quarter of the previous year. The decline in net income was primarily attributed to a significant increase in noninterest expenses, which rose by $14.9 million, offset by a $10.4 million increase in interest income driven by a higher average loan balance. For the first half of 2025, net income increased to $20.8 million, or $1.36 per diluted share, compared to $18.4 million, or $1.34 per diluted share, for the same period in 2024, largely due to a $24.4 million increase in net interest income.

Total assets for Coastal Financial Corporation increased by $359.4 million, or 8.7%, to $4.48 billion as of June 30, 2025, compared to $4.12 billion at the end of 2024. This growth was primarily driven by a $274.2 million increase in interest-earning deposits with other banks and a $53.8 million increase in loans receivable. The company’s total loans receivable reached $3.54 billion, reflecting a 1.5% increase from the previous period, with CCBX loans growing by 4.8% to $1.68 billion, while community bank loans decreased by 1.2% to $1.86 billion.

In terms of operational metrics, Coastal Financial's total deposits rose by $328.2 million, or 9.2%, to $3.91 billion, with CCBX deposits increasing by 14.3% to $2.36 billion. The company reported a loan-to-deposit ratio of 92.0% as of June 30, 2025, down from 97.8% at the end of 2024. The allowance for credit losses decreased to $164.8 million, or 4.65% of total loans, from $177.0 million, or 5.08%, reflecting improved performance in the CCBX portfolio and a focus on originating higher-quality loans.

Strategically, Coastal Financial continues to refine its CCBX partnerships, which now include 29 partners, with a focus on larger, more established firms. The company is also expanding its product offerings with existing partners and expects to see increased transaction activity, positively impacting noninterest income. The management anticipates that the ongoing growth in CCBX relationships and the introduction of new products will further enhance its revenue streams while maintaining a strong liquidity position, supported by $719.8 million in cash and the capacity to borrow up to $642.7 million from the Federal Home Loan Bank and the Federal Reserve.