Coastal Financial Corporation (CCB) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $13.6 million ($0.88 per diluted share), up from $11.0 million ($0.71) in Q2 2025 and nearly flat from $13.5 million ($0.97) in Q3 2024.

• Total assets reached $4.55 billion, up 10.5% from December 31, 2024, driven by loan and deposit growth.

• Total revenue increased 21.1% from the prior quarter, reaching $144.7 million, driven by higher credit enhancement revenue.

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

• $1.62 billion in loans were sold during the quarter, with $1.37 billion from recurring credit card receivables.

Financial highlights

• Net interest income was $77.9 million, up 1.5% from Q2 2025 and 7.8% from Q3 2024.

• Noninterest income reached $66.8 million, up $24.1 million from Q2 2025, but down 15.2% year-over-year due to lower BaaS indemnification income.

• Noninterest expense for Q3 2025 was $70.2 million, down $2.7 million sequentially but up 8.9% year-over-year.

• Return on average assets (ROA) was 1.19%, up from 0.99% last quarter but down from 1.34% a year ago.

• Efficiency ratio improved to 48.5% from 61.0% last quarter.

Outlook and guidance

• Management expects further BaaS partner and product expansion into 2026, with continued investment in technology and risk management to drive efficiency and manage costs.

• Robinhood's deposit program is in testing and expected to ramp up in Q4 2025, with further partner expansions anticipated to drive higher revenue.

• Loan sales to partners will continue as part of portfolio optimization and risk management.

• Ongoing expense fluctuations are expected due to new CCBX partners and product launches.