Coastal Financial (NASDAQ:CCB) Announces Quarterly Earnings Results, Misses Expectations By $0.07 EPS

Coastal Financial (NASDAQ:CCB) posted its quarterly earnings data on Thursday. The company reported $0.89 earnings per share for the quarter, missing the consensus estimate of $0.96 by ($0.07), Zacks reports. Coastal Financial had a negative return on equity of 0.80% and a negative net margin of 0.53%.

Here are the key takeaways from Coastal Financial’s conference call:

• Coastal returned to profitability in the third quarter, reporting $13.8 million of net income, or $0.89 per diluted share, versus a $42.1 million loss in the prior quarter. BaaS program fee income rose 79.6% year over year to $14.1 million, while the Common Equity Tier 1 ratio strengthened to 11.5%.
• The previously disclosed issues with one partner’s consumer loan portfolio remain unresolved. Although delinquencies and annualized net charge-offs improved, Coastal recorded $46 million of provision expense, including $3.1 million not offset by credit-enhancement income, and expects a potential $22.8 million charge-off by year-end.
• Management said its broader BaaS portfolio showed no comparable problems, with 96.7% of BaaS non-performing loans covered by partner credit enhancements. The company also reported a pipeline of two partners onboarding and three signed letters of intent, alongside higher loan sales, debit-card growth, and deposit-sweep activity.
• Coastal identified more than $20 million in potential annualized non-interest expense savings, targeted over the next four to six quarters, through vendor consolidation, reduced duplication, technology changes, and tighter spending discipline. Management expects these actions to improve operating leverage, although reinvestment could offset part of the gross savings.

Coastal Financial Price Performance

CCB stock traded down $2.09 on Thursday, hitting $45.04. 218,093 shares of the company’s stock traded hands, compared to its average volume of 193,533. Coastal Financial has a 1-year low of $35.56 and a 1-year high of $120.05. The stock has a market cap of $688.62 million, a price-to-earnings ratio of -159.48 and a beta of 0.86. The stock has a fifty day moving average of $44.71 and a 200-day moving average of $69.31. The company has a current ratio of 1.05, a quick ratio of 1.03 and a debt-to-equity ratio of 0.10.

Insider Activity at Coastal Financial

In related news, CEO Eric M. Sprink acquired 10,000 shares of the business’s stock in a transaction dated Thursday, August 6th. The stock was bought at an average price of $44.45 per share, for a total transaction of $444,500.00. Following the transaction, the chief executive officer owned 173,238 shares of the company’s stock, valued at approximately $7,700,429.10. The trade was a 6.13% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Steven D. Hovde acquired 10,000 shares of the business’s stock in a transaction dated Thursday, August 6th. The shares were bought at an average price of $43.83 per share, with a total value of $438,300.00. Following the transaction, the director directly owned 26,500 shares in the company, valued at approximately $1,161,495. The trade was a 60.61% increase in their position. The SEC filing for this purchase provides additional information. In the last 90 days, insiders acquired 25,290 shares of company stock worth $1,115,894. 13.49% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Keefe, Bruyette & Woods decreased their price objective on shares of Coastal Financial from $95.00 to $53.00 and set an “outperform” rating for the company in a report on Friday, July 31st. Raymond James Financial downgraded Coastal Financial from a “strong-buy” rating to an “outperform” rating and set a $50.00 target price for the company. in a research report on Friday, July 31st. Weiss Ratings lowered Coastal Financial from a “hold (c)” rating to a “sell (d)” rating in a research note on Tuesday, August 11th. Zacks Research cut Coastal Financial from a “hold” rating to a “strong sell” rating in a research report on Tuesday, August 4th. Finally, TD Cowen reissued a “buy” rating on shares of Coastal Financial in a research note on Tuesday, September 29th. Five research analysts have rated the stock with a Buy rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $91.33.

Key Coastal Financial News

Here are the key news stories impacting Coastal Financial this week:

• Positive Sentiment: Management said third-quarter results were supported by growth in the CCBX program, indicating that the banking-as-a-service platform remains an important potential growth driver. Coastal Financial Corporation Announces Third Quarter 2026 Results
• Neutral Sentiment: Coastal Financial reported third-quarter earnings of $0.89 per share, slightly above the $0.88 earned a year earlier, while releasing an investor presentation outlining a strategic shift. The longer-term effect of that strategy on growth and profitability remains uncertain. Coastal Financial Details Strategic Shift in Investor Presentation
• Neutral Sentiment: The company and Coastal Community Bank agreed to changes intended to reduce executive compensation and leadership costs. Although this could improve the expense base, it also highlights management’s effort to control costs during a challenging period. Coastal Financial Tightens Executive Pay and Leadership Costs
• Negative Sentiment: Quarterly EPS of $0.89 missed analyst estimates ranging from $0.96 to $0.99, and revenue also reportedly lagged expectations. The company posted a negative net margin and negative return on equity, reinforcing concerns about near-term profitability. Coastal Financial Corporation Q3 Earnings and Revenues Lag Estimates
• Negative Sentiment: Multiple law firms are publicizing a securities class action covering investors who purchased shares from October 28, 2024, through July 29, 2026. Allegations reportedly focus on disclosures surrounding CCBX credit-risk indemnification, a deteriorating partner portfolio, a large provision for credit losses and valuation adjustments. The December 1, 2026 lead-plaintiff deadline adds legal and reputational uncertainty; the allegations have not been proven. CCB Shareholder Action Reminder

Coastal Financial Company Profile

Coastal Financial Corporation is a bank holding company headquartered in Everett, Washington. Its principal subsidiary, Coastal Community Bank, provides banking services to individuals, families, and businesses in the Pacific Northwest, with a focus on communities in the Puget Sound region.

Coastal Community Bank offers consumer and commercial deposit accounts, residential and commercial real estate lending, business loans, lines of credit, treasury management, online and mobile banking, and other traditional banking products.