Coastal Financial Corporation reported a solid financial performance for the third quarter of 2025, with net income reaching $13.6 million, or $0.88 per diluted share, compared to $13.5 million, or $0.97 per diluted share, in the same period last year. The increase in net income was primarily driven by a $3.9 million rise in interest income, attributed to a growth in average loans receivable, alongside a $2.4 million increase in BaaS program income. However, this was partially offset by a $5.7 million increase in noninterest expenses. For the nine months ended September 30, 2025, net income was $34.4 million, or $2.24 per diluted share, compared to $31.9 million, or $2.32 per diluted share, for the same period in 2024.
Total assets for Coastal Financial increased by $431.9 million, or 10.5%, to $4.55 billion as of September 30, 2025, driven by a $217.3 million increase in loans receivable and a $191.4 million rise in interest-earning deposits with other banks. The company’s total loans receivable reached $3.70 billion, reflecting a 6.2% increase from the previous year. The growth in loans was primarily due to a $200.6 million increase in CCBX loans, which accounted for a significant portion of the overall loan portfolio.
In terms of operational developments, Coastal Financial's CCBX segment, which provides banking as a service (BaaS), reported a total of 29 partnerships as of September 30, 2025. The company continues to refine its partner selection criteria, focusing on larger, established partners while also exploring opportunities with promising smaller partners. The CCBX segment's loan growth was complemented by a strategy of selling loans back to originating partners, which helps manage credit quality and portfolio limits. The company also reported a decrease in the allowance for credit losses to $173.8 million, or 4.69% of total loans, down from 5.08% a year earlier, reflecting improved credit quality.
Looking ahead, Coastal Financial aims to expand its product offerings with existing partners and explore new partnerships to enhance its customer base. The company is also focused on increasing efficiency and leveraging technology to manage costs effectively. Despite the positive outlook, management remains cautious about potential economic uncertainties, including inflation and changing interest rates, which could impact future performance. The company’s liquidity position remains strong, with $642.3 million in cash and the capacity to borrow up to $657.1 million from the Federal Home Loan Bank and the Federal Reserve discount window, providing a solid foundation for future growth.
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.
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