Coastal Financial (NASDAQ:CCB) Releases Quarterly Earnings Results, Misses Estimates By $3.77 EPS

Posted by Francis Steltz on Jul 30th, 2026

Coastal Financial (NASDAQ:CCB – Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($2.76) earnings per share (EPS) for the quarter, missing the consensus estimate of $1.01 by ($3.77), FiscalAI reports. The company had revenue of $60.37 million during the quarter, compared to the consensus estimate of $148.50 million. Coastal Financial had a return on equity of 10.20% and a net margin of 7.35%.

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

Negative Sentiment: Coastal reported a $42.1 million GAAP net loss, driven primarily by $68.8 million of pre-tax adjustments tied to a specific CCBX partner’s approximately $500 million consumer-loan portfolio, including a $46 million credit-enhancement valuation adjustment and $22.8 million provision.
Neutral Sentiment: Management said the affected portfolio has been isolated and that reviews found no comparable issue in the remaining approximately $1.7 billion CCBX portfolio, but the resolution could take one to two quarters or as long as 12–18 months and final recoveries may differ from current estimates.
Positive Sentiment: Underlying operating trends were strong, with record net interest income of $89.4 million, a 7.27% net interest margin, 9% quarterly loan growth, and 10.3% sequential growth in BaaS program fee income.
Positive Sentiment: Coastal remained well-capitalized and liquid, ending the quarter with a 10.86% CET1 ratio, approximately $1.01 billion of cash, more than $1.1 billion in contingent borrowing capacity, and no short-term borrowings outstanding.
Negative Sentiment: Management acknowledged that expense growth and operating leverage need improvement, launching a review of vendors, contractors, organizational duplication, technology spending, and partner-level profitability; CFO Brandon Soto is also departing, with former CFO Joel Edwards returning as interim CFO.

Coastal Financial Stock Performance

Shares of CCB traded down $30.75 on Thursday, reaching $39.91. The company’s stock had a trading volume of 2,055,514 shares, compared to its average volume of 164,234. Coastal Financial has a 12-month low of $36.61 and a 12-month high of $120.05. The stock’s 50 day simple moving average is $74.10 and its two-hundred day simple moving average is $80.77. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.06 and a quick ratio of 1.03. The stock has a market capitalization of $608.63 million, a P/E ratio of 12.51 and a beta of 0.72.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the company. Stephens restated an “overweight” rating and issued a $110.00 price objective on shares of Coastal Financial in a report on Friday, May 1st. Keefe, Bruyette & Woods cut their target price on shares of Coastal Financial from $115.00 to $95.00 and set an “outperform” rating for the company in a research note on Friday, May 1st. TD Cowen reduced their target price on shares of Coastal Financial from $145.00 to $120.00 and set a “buy” rating for the company in a research report on Thursday, April 30th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Coastal Financial in a report on Monday, June 29th. Finally, Wall Street Zen upgraded shares of Coastal Financial from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $122.60.

Check Out Our Latest Research Report on CCB

Trending Headlines about Coastal Financial

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

Positive Sentiment: Coastal Financial reported record net interest income and continued BaaS growth, indicating that its core banking and partner-driven businesses remain active despite the quarter’s loss. Coastal Financial Corporation Announces Second Quarter 2026 Results
Neutral Sentiment: The company appointed a longtime nonemployee director as executive chair, reshaping its governance structure. The move may provide leadership continuity, but investors are likely to focus more heavily on credit quality and partner risk in the near term. Coastal Financial Reshapes Governance With New Executive Chair
Negative Sentiment: Coastal Financial reported a second-quarter net loss of $42.1 million, or $2.76 per share, compared with earnings of $0.71 per share a year earlier and analyst expectations for a profit of roughly $0.95–$1.01 per share. Reported revenue of $60.37 million was also well below the cited consensus estimate of $148.50 million. Coastal Financial Corporation Reports Q2 Loss
Negative Sentiment: The loss was primarily driven by a $68.8 million credit expense related to one CCBX partner relationship. Although management described the issue as isolated, the charge raises questions about underwriting, concentration, and risk controls within Coastal’s BaaS platform. CCB Investor Alert
Negative Sentiment: Multiple law firms announced investigations into potential federal securities-law violations following the results and stock decline. The investigations do not establish wrongdoing, but they add litigation and reputational risk for shareholders. Coastal Financial Securities Fraud Investigation

Hedge Funds Weigh In On Coastal Financial

Hedge funds and other institutional investors have recently modified their holdings of the stock. Smartleaf Asset Management LLC increased its position in shares of Coastal Financial by 20,700.0% during the 4th quarter. Smartleaf Asset Management LLC now owns 624 shares of the company’s stock valued at $72,000 after purchasing an additional 621 shares during the last quarter. Russell Investments Group Ltd. increased its holdings in Coastal Financial by 229.5% during the second quarter. Russell Investments Group Ltd. now owns 827 shares of the company’s stock valued at $80,000 after buying an additional 576 shares during the period. Tower Research Capital LLC TRC increased its holdings in shares of Coastal Financial by 521.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,262 shares of the company’s stock valued at $122,000 after acquiring an additional 1,059 shares during the period. DRW Securities LLC bought a new position in Coastal Financial in the fourth quarter worth about $214,000. Finally, Brooklyn Investment Group raised its stake in shares of Coastal Financial by 28.0% during the 3rd quarter. Brooklyn Investment Group now owns 2,063 shares of the company’s stock worth $223,000 after acquiring an additional 451 shares in the last quarter. Institutional investors own 59.24% of the company’s stock.

Coastal Financial Company Profile

(Get Free Report)

Coastal Financial Corporation is a bank holding company whose principal subsidiary, Coastal Community Bank, provides a full range of community banking services to clients along North Carolina’s central and eastern coastline. The company focuses on delivering personalized relationship banking to individuals, small businesses, and local professionals in seaside and inland communities.

Through Coastal Community Bank, Coastal Financial offers deposit products including checking, savings, money market accounts and certificates of deposit.