Core Points - Coastal Financial Corporation reported a net income of 13.4millionforQ42024,aslightdecreasefrom13.5 million in Q3 2024, and a total net income of 45.2millionfortheyear,comparedto44.6 million in 2023 [1][2] - The company completed a 98.0millioncapitalraiseinQ42024tosupportgrowth,particularlyinitsCCBXsegment,whichsawa56.982.3 million, or 5.4%, to 1.60billiondespiteselling845.5 million in loans during the quarter [21][24] Financial Performance - Interest and dividend income for Q4 2024 was 96.6million,downfrom105.1 million in Q3 2024, while net interest income was 66.5million,adecreaseof7.976.8 million, compared to 80.1millioninQ32024,reflectingadecreaseinBaaSloanexpenses[5][6]−ThenetinterestmarginforQ42024was6.65845.5 million in loans during Q4 2024, primarily credit card receivables, while also sweeping 273.2millionofdepositsoff−balancesheet[6][28]−Totaldepositsdecreasedto3.59 billion in Q4 2024, down from 3.63billioninQ32024,withcoredepositsaccountingforasignificantportion[5][28]−Thecommunitybanksegmentsawaslightdecreaseinnetloansby14.6 million, or 0.8%, to 1.88billion[29]CCBXSegmentPerformance−TheCCBXsegment′stotalprogramfeeincomefor2024was25.6 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]
