Coastal Financial Corporation (CCB) investor relations material

Executive summary

• Q3 net income was $13.8 million, or $0.89 per diluted share, versus a $42.1 million loss in Q2 and $13.6 million net income in Q3 2025.

• Core net revenue rose 7.9% QoQ to $65.1 million; BaaS program fee income increased 17.6% QoQ and 79.6% YoY to $14.1 million.

• Credit indicators improved QoQ, including lower net charge-offs and nonperforming assets; CET1 rose to 11.47%.

Financial highlights

• Revenue was $149.3 million, down 16.1% QoQ and up 3.2% YoY, largely reflecting lower BaaS credit enhancement income.

• Net interest income was $88.3 million, down 1.2% QoQ and up 13.4% YoY; net interest margin was 6.59%, versus 7.27% in Q2.

• Provision for credit losses was $46.0 million, versus $92.2 million in Q2; $43.9 million related to BaaS loans, largely offset by $41.8 million of credit enhancement income.

• Noninterest expense fell $56.3 million QoQ to $84.8 million; Q2 included a $46.0 million credit enhancement receivable valuation adjustment that did not recur.

• Adjusted Core PPNR was $22.7 million, compared with a $33.8 million loss in Q2 and $19.1 million in Q3 2025; assets were $5.28 billion at quarter-end.

Outlook and guidance

• Up to $20.0 million in annualized noninterest expense savings was identified, with gradual realization expected over four to six quarters; BaaS loan and fraud expenses are excluded.

• One partner was in testing, two in implementation/onboarding and three had signed LOIs; new partnerships and product launches were expected through the rest of 2026.

• Eight partner programs were expanding products; transaction and interchange fees are expected to rise with partner activity, while sweep fee income is expected to increase with volumes.

• Additional CCBX loan sales are expected as lending limits, credit quality and portfolio mix are managed.

• Bluevine’s expected acquisition by Valley is anticipated to close in Q2 2027; related deposits are expected to transition, with replacement funding anticipated without material adverse liquidity or funding effects.