Coastal Financial Corporation reported a net income of $12.0 million for the first quarter of 2026, translating to earnings of $0.78 per diluted share, a notable increase from the $9.7 million, or $0.63 per diluted share, recorded in the same period last year. This growth in profitability was primarily driven by a $6.8 million rise in interest income, attributed to an increase in average loans receivable and interest-earning deposits, alongside a $4.6 million boost in BaaS program income. However, this was partially offset by an $11.5 million rise in noninterest expenses. The provision for credit losses decreased to $51.4 million from $55.8 million, reflecting improved performance in the CCBX loan portfolio.

Total assets for Coastal Financial increased by 19.5% to $5.66 billion as of March 31, 2026, up from $4.74 billion at the end of 2025. This growth was largely fueled by a $109.8 million increase in loans receivable and a $740.0 million rise in interest-earning deposits with other banks. The company’s total loans receivable reached $3.86 billion, marking a 2.9% increase from the previous quarter. The CCBX segment, which provides banking as a service, saw its total assets rise by 35.3% to $3.51 billion, driven by increased partner activity and loan sales.

In terms of operational metrics, Coastal Financial's total deposits surged by 21.6% to $5.04 billion, with CCBX deposits alone increasing by 35.6% to $3.47 billion. The company reported a loan-to-deposit ratio of 79.0%, down from 92.2% at the end of 2025, indicating a strategic focus on maintaining liquidity. The average cost of deposits was 2.56% for the quarter, a decrease from 3.08% in the prior year, reflecting lower interest rates.

Looking ahead, Coastal Financial is exploring potential acquisitions to enhance its CCBX segment, having entered into a non-binding term sheet with Evolve Bank & Trust to evaluate certain banking-as-a-service programs. The company anticipates that its deposit growth will moderate in the upcoming quarters, while it continues to manage credit quality and optimize its loan portfolio. The outlook remains cautiously optimistic, with management emphasizing the importance of maintaining robust risk management practices amid evolving economic conditions.

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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