Coastal Financial Reports Q1 2026 Results: Strong BaaS-Driven Growth in Assets & Deposits, EPS Slightly Down QoQ
CCB sits 20% above its 52-week low of $70.72.
Summary
Coastal Financial reported Q1 2026 net income of $12.0 million ($0.78 diluted EPS), a slight decrease QoQ but strong YoY growth, driven by significant asset and deposit expansion in its Banking as a Service (CCBX) segment.
Key Events · Earnings and Guidance · CCB
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Q1 2026 Earnings Announced
Net income for the first quarter of 2026 was $12.0 million, or $0.78 per diluted common share. This compares to $12.6 million ($0.82 diluted EPS) in Q4 2025 and $9.7 million ($0.63 diluted EPS) in Q1 2025.
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Significant Balance Sheet Growth
Total assets increased by $922.4 million (19.5%) to $5.66 billion at March 31, 2026, compared to $4.74 billion at December 31, 2025. Deposits grew by $897.0 million (21.6%) and loans receivable increased by $109.8 million (2.9%).
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CCBX Segment Drives Growth
The Banking as a Service (CCBX) segment continued to expand, with program fee income increasing by $2.0 million (22.3%) to $10.9 million for the quarter. The company had 30 CCBX relationships, including new partners in testing and onboarding stages.
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Improved Credit Quality
Nonperforming assets to total assets improved to 1.19% at March 31, 2026, down from 1.35% at December 31, 2025. Net charge-offs to average loans also decreased to 5.18% from 5.31% in the prior quarter.
Analysis · CCB · Finance
Coastal Financial Corporation reported mixed first-quarter 2026 results, with net income and diluted EPS slightly decreasing quarter-over-quarter but showing significant year-over-year growth. The company demonstrated robust operational expansion, with total assets increasing by 19.5% and deposits growing by 21.6% from the previous quarter, primarily driven by its Banking as a Service (CCBX) segment. CCBX program fee income saw a strong 22.3% increase quarter-over-quarter, indicating continued strategic success in this key growth area. While net interest margin and return on average assets experienced slight declines, credit quality metrics improved, with nonperforming assets to total assets decreasing. The slight dip in earnings is attributed to higher noninterest expenses, including legal and BaaS-related costs, which management links to strategic investments and enhanced partner economics aimed at sustainable, risk-adjusted returns. Investors should monitor the continued growth and profitability of the CCBX segment and the normalization of uninsured deposits in Q2.
At the time of this filing, CCB was trading at $84.75 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $70.72 to $120.05. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.