Coastal Financial Corporation (CCB) Q4 2025 earnings summary

Executive summary

• Net income for Q4 2025 was $12.6 million, down 7.0% from the previous quarter and 5.4% year-over-year, with diluted EPS at $0.82, impacted by higher noninterest expense.

• Loans receivable reached $3.75 billion, up 1.2% from the prior quarter, and deposits increased 4.3% to $4.14 billion, driven by CCBX and core lending growth.

• Acquired GreenFi, a climate-focused brand, enhancing partnerships and evaluating strategic alternatives.

• CCBX and BaaS segments expanded with new partners and product launches, driving fee income and platform growth.

• AI deployment advanced, improving efficiency, risk management, and customer experience.

Financial highlights

• Core net revenue grew 6.8% from the previous quarter to $56.5 million, while total revenue decreased 4.6% to $138.0 million due to lower credit enhancement revenue.

• Net interest income for Q4 2025 was $79.4 million, up 1.9% sequentially and 9.5% year-over-year.

• Book value per share increased 3.1% from last quarter and 10.4% year-over-year to $32.43; tangible book value per share was $32.13.

• Allowance for credit losses was $169.5 million (4.52% of loans), with CCBX portfolio at 8.37% and community bank at 0.94%.

• Total assets reached $4.74 billion, up $188.4 million (4.1%) from Q3 2025.

Outlook and guidance

• Expansion of partner programs and new product launches, such as Robinhood's deposit program, are expected to drive future deposit and revenue growth.

• Ongoing technology and AI investments aim to support scalable, compliant growth and deepen customer relationships.

• Additional CCBX loan sales anticipated to optimize portfolio and manage credit quality.

• Management expects higher partner revenue as new and expanded CCBX products gain traction.