Core Points - Coastal Financial Corporation reported a net income of $13.4 million for Q4 2024, a slight decrease from $13.5 million in Q3 2024, and a total net income of $45.2 million for the year, compared to $44.6 million in 2023 [1][2] - The company completed a $98.0 million capital raise in Q4 2024 to support growth, particularly in its CCBX segment, which saw a 56.9% increase in program fee income year-over-year [2][6] - The CCBX loan portfolio increased by $82.3 million, or 5.4%, to $1.60 billion despite selling $845.5 million in loans during the quarter [21][24] Financial Performance - Interest and dividend income for Q4 2024 was $96.6 million, down from $105.1 million in Q3 2024, while net interest income was $66.5 million, a decrease of 7.9% from the previous quarter [5][33] - Noninterest income for Q4 2024 was $76.8 million, compared to $80.1 million in Q3 2024, reflecting a decrease in BaaS loan expenses [5][6] - The net interest margin for Q4 2024 was 6.65%, down from 7.41% in Q3 2024, primarily due to lower loan yields [34] Loan and Deposit Activity - The company sold $845.5 million in loans during Q4 2024, primarily credit card receivables, while also sweeping $273.2 million of deposits off-balance sheet [6][28] - Total deposits decreased to $3.59 billion in Q4 2024, down from $3.63 billion in Q3 2024, with core deposits accounting for a significant portion [5][28] - The community bank segment saw a slight decrease in net loans by $14.6 million, or 0.8%, to $1.88 billion [29] CCBX Segment Performance - The CCBX segment's total program fee income for 2024 was $25.6 million, an increase of $9.3 million from 2023, indicating strong growth in partner transaction activity [6][18] - As of December 31, 2024, the CCBX segment had 24 relationships, including three signed letters of intent, and continues to refine its criteria for partnerships [18][19] - The yield on CCBX loans decreased to 15.28% in Q4 2024 from 17.35% in Q3 2024, attributed to a shift in credit quality and interest rates [22][25] Management Outlook - The company plans to selectively expand its CCBX partnerships while investing in technology and risk management to support future growth [16] - There is a focus on increasing noninterest income through transaction activity and new product offerings, while continuing to sell credit card loans to retain fee income [16][19]
Coastal Financial Corporation Announces Fourth Quarter 2024 Results