Coastal Financial Corporation (CCB) Q1 2026 earnings summary

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 and existing 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, reflecting higher interest and BaaS program income.

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

• The company operates three segments: community bank, CCBX (banking-as-a-service), and treasury & administration.

• CCBX segment continued to expand, with 20 active partners, new products, and significant growth in fee-based income and off-balance sheet activities.

Financial highlights

• Net interest income was $83.4 million, up 5.0% from Q4 2025 and 9.6% year-over-year, driven by higher average loans and deposits.

• 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.

• Noninterest income reached $66.1 million, up 4.1% year-over-year and $7.4 million sequentially, mainly from BaaS fees and program income.

• Noninterest expense increased to $83.5 million, up 15.9% year-over-year and $10.6 million sequentially, mainly due to higher BaaS, legal, and technology expenses.

Outlook and guidance

• Management expects deposit and loan growth to moderate and normalize in Q2 2026 as sweep functionality is further implemented.

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

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

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