EVERETT, Wash., Oct. 29, 2025 (GLOBE NEWSWIRE) -- Coastal Financial Corporation (Nasdaq: CCB) (the “Company”, "Coastal", "we", "our", or "us"), the holding company for Coastal Community Bank (the “Bank”), through which it operates a community-focused bank segment ("community bank") with an industry leading banking as a service ("BaaS") segment ("CCBX"), today reported unaudited financial results for the quarter ended September 30, 2025, including net income of $13.6 million, or $0.88 per diluted common shar ...

Core Insights - Coastal Financial Corporation reported a net income of $11.0 million for Q2 2025, an increase from $9.7 million in Q1 2025 but a decrease from $11.6 million in Q2 2024 [1] - The company experienced a quality deposit growth of $122.3 million during Q2 2025, with CCBX program fee income increasing by 8.2% compared to the previous quarter [2][18] Financial Performance - Interest and dividend income for Q2 2025 was $107.8 million, up from $104.9 million in Q1 2025 and $97.4 million in Q2 2024 [5] - Net interest income increased to $76.7 million in Q2 2025 from $76.1 million in Q1 2025 and $66.2 million in Q2 2024 [38] - Noninterest income was $42.7 million in Q2 2025, down from $63.5 million in Q1 2025 [5] - Total assets reached $4.48 billion as of June 30, 2025, compared to $4.34 billion at the end of Q1 2025 [5] Credit Quality and Loss Provisions - Provision for credit losses decreased to $32.2 million in Q2 2025 from $55.8 million in Q1 2025, reflecting improved performance in the CCBX portfolio [5][12] - Nonperforming loans to total loans receivable ratio was 1.72% as of June 30, 2025, compared to 1.60% in Q1 2025 [7] CCBX Segment Performance - CCBX loans increased by $29.5 million, or 1.8%, to $1.68 billion despite selling $1.30 billion in loans during Q2 2025 [24] - The CCBX segment had 29 relationships as of June 30, 2025, with two partners in testing and five signed letters of intent [20] - Total BaaS program fee income was $6.8 million in Q2 2025, an increase of $512,000 from Q1 2025 [6] Community Bank Performance - The community bank segment saw net loans decrease by $6.5 million, or 0.3%, to $1.86 billion in Q2 2025 [35] - Community bank deposits increased by $29.2 million, or 1.9%, to $1.55 billion during the same period [37] Management Outlook - The company anticipates additional new partner engagements in the latter half of 2025, supported by a strong CCBX pipeline [18] - Continued investments in technology and risk management infrastructure are expected to yield future efficiencies and cost reductions [18]

Core 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]