Coastal Financial Corporation (CCB) investor relations material

Executive summary

• Total assets rose 19.5% to $5.66 billion at March 31, 2026, driven by strong deposit and loan growth, especially from new CCBX partner relationships.

• Net income for Q1 2026 was $12.0 million ($0.78 per diluted share), down from $12.6 million in Q4 2025 but up from $9.7 million in Q1 2025.

• Revenue increased 8.3% sequentially to $149.4 million, supported by higher credit enhancement revenue and BaaS program income.

• CCBX (BaaS) segment expanded with 20 active partners, new products, and significant growth in fee-based income and off-balance sheet activities.

Financial highlights

• Total loans receivable grew 2.9% sequentially to $3.86 billion; $3.28 billion in loans were sold during the quarter.

• Total deposits surged 21.6% to $5.04 billion, primarily from new CCBX partners; $2.81 billion in deposits were swept off-balance sheet for FDIC insurance and liquidity.

• Net interest margin decreased slightly to 7.00%; net interest margin net of BaaS loan expense fell to 3.90%.

• Noninterest income reached $66.1 million, up $7.4 million sequentially, driven by BaaS program and indemnification income.

• Efficiency ratio increased to 55.85% from 52.75% last quarter.

Outlook and guidance

• Management expects newly added deposits to moderate by ~$500 million and level out in Q2 2026.

• Deposit balances may decline as sweep functionality is further implemented, moving funds off-balance sheet.

• Margin pressure anticipated due to evolving rate environment, but diversified business model and funding base seen as strengths.

• Continued expansion of partner programs and technology investments are expected to support scalable growth.

• Focus remains on disciplined growth, credit quality, and long-term value creation.