Coastal Financial Corporation (CCB) investor relations material

Executive summary

• Reported a GAAP net loss of $42.1 million for Q2 2026, primarily due to a $68.8 million credit expense related to a single CCBX/BaaS partner, including a $46.0 million valuation adjustment and a $22.8 million provision for credit losses.

• Loans receivable grew 9% quarter-over-quarter to $4.21 billion, with continued expansion in BaaS partner programs and technology investments supporting scalable growth.

• Revenue increased 19.2% quarter-over-quarter to $178.1 million, with record net interest income and BaaS program fee income up 10.3% sequentially.

• Board appointed Chris Adams as Executive Chair to focus on long-term strategy, profitability, and operating leverage.

• Excluding one-time charges, the underlying business showed record net interest income, loan growth, and increased BaaS fee income.

Financial highlights

• Net interest income reached a record $89.4 million, up 16.4% year-over-year, with a net interest margin of 7.27%.

• BaaS program fee income rose 10.3% sequentially to $12 million; noninterest income was $88.7 million, up 107.8% year-over-year.

• Off-balance sheet credit card accounts increased 32% from Q1, now at 881,659 accounts.

• Allowance for credit losses increased to $213.7 million (5.08% of loans), reflecting loan growth and a specific reserve for one CCBX partner.

• Book value per share declined 8.2% to $30.33; tangible book value per share fell 8.3% to $30.05.

Outlook and guidance

• Management expects continued BaaS growth, new product launches, and expansion of partner relationships in 2026.

• Focus remains on disciplined, sustainable growth, risk management, and infrastructure investment.

• No formal quantitative guidance provided, but expense moderation and efficiency are top priorities.

• Deposit sweep capabilities and off-balance sheet management provide flexibility for liquidity and insurance coverage.

• The defined portfolio will receive continuous monitoring, with provisioning adjusted in real time.