stal Financial (US:CCB) Globenewswireยท2025-04-29 13:25Core Insights - Coastal Financial Corporation reported a net income of $9.7 million for Q1 2025, a decrease from $13.4 million in Q4 2024 and an increase from $6.8 million in Q1 2024 [1] - The company experienced a significant deposit growth of $205.9 million, or 5.7%, during the first quarter, driven by its CCBX partner programs [2][6] - CCBX program fee income increased by 55.2% compared to the same period in 2024, reaching $6.3 million [2][6] Financial Performance - Interest and dividend income for Q1 2025 was $104.9 million, up from $97.4 million in Q1 2024 [5] - Net interest income increased to $76.1 million, a rise of 5.1% from Q4 2024 and 22.3% from Q1 2024 [33] - Noninterest expenses rose to $72.0 million, primarily due to higher salaries and employee benefits, legal and professional expenses, and BaaS loan expenses [6][11] CCBX Segment Update - As of March 31, 2025, the CCBX segment had 25 relationships, with two partners in testing and three in implementation/onboarding [17][21] - CCBX loans increased by $47.2 million, or 2.9%, to $1.65 billion despite selling $744.6 million in loans during the quarter [21][24] - The loan yield for CCBX was 16.88%, reflecting a slight increase from the previous quarter [22] Deposit and Loan Portfolio - Total deposits reached $3.79 billion, with CCBX deposits increasing by $202.9 million, or 9.8% [29][32] - Community bank loans decreased by $16.5 million, or 0.9%, to $1.87 billion due to normal balance fluctuations [30][31] - The cost of deposits for the community bank segment was 1.76%, down from 1.86% in the previous quarter [32] Management Outlook - The company anticipates continued elevated onboarding activity into Q2 2025, with a focus on technology and risk management infrastructure [15] - Future revenue sources are expected to grow as new partnerships and products are launched [15][18] - The company remains focused on managing credit quality and optimizing its loan portfolio earnings [24][18]