Coastal Financial (NASDAQ:CCB – Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.89 EPS for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.07), Zacks reports. Coastal Financial had a negative net margin of 0.50% and a negative return on equity of 0.75%. The firm had revenue of $149.33 million during the quarter, compared to analyst estimates of $158.85 million.
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
NASDAQ CCB opened at $43.29 on Friday. The stock’s 50-day moving average price is $44.57 and its two-hundred day moving average price is $68.61. Coastal Financial has a 1 year low of $35.56 and a 1 year high of $120.05. The company has a market cap of $661.73 million, a PE ratio of -160.33 and a beta of 0.86. The company has a current ratio of 1.05, a quick ratio of 1.03 and a debt-to-equity ratio of 0.10.
Wall Street Analysts Forecast Growth
CCB has been the topic of several recent research reports. Raymond James Financial downgraded shares of Coastal Financial from a “strong-buy” rating to an “outperform” rating and set a $50.00 price objective on the stock. in a report on Friday, July 31st. Weiss Ratings cut Coastal Financial from a “hold (c)” rating to a “sell (d)” rating in a report on Tuesday, August 11th. Keefe, Bruyette & Woods lowered their target price on shares of Coastal Financial from $95.00 to $53.00 and set an “outperform” rating for the company in a research note on Friday, July 31st. Zacks Research lowered shares of Coastal Financial from a “hold” rating to a “strong sell” rating in a research note on Tuesday, August 4th. Finally, TD Cowen raised their target price on shares of Coastal Financial from $47.00 to $50.00 and gave the company a “buy” rating in a report on Friday. Five equities research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Coastal Financial presently has an average rating of “Hold” and an average target price of $91.83.
Check Out Our Latest Stock Report on CCB
Insider Buying and Selling at Coastal Financial
In other news, CEO Eric Sprink bought 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 6th. The shares were acquired at an average cost of $44.45 per share, with a total value of $444,500.00. Following the completion of the transaction, the chief executive officer directly owned 173,238 shares in the company, valued at $7,700,429.10. This represents a 6.13% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Steven Hovde purchased 10,000 shares of Coastal Financial stock in a transaction on Thursday, August 6th. The stock was purchased at an average price of $43.83 per share, for a total transaction of $438,300.00. Following the completion of the transaction, the director owned 26,500 shares of the company’s stock, valued at approximately $1,161,495. This represents a 60.61% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders purchased a total of 25,290 shares of company stock worth $1,115,894 in the last quarter. Insiders own 13.49% of the company’s stock.
Key Stories Impacting Coastal Financial
Here are the key news stories impacting Coastal Financial this week:
- Positive Sentiment: TD Cowen raised its price target to $50 from $47 and assigned a “Buy” rating, implying approximately 15.5% upside from the referenced $43.29 price. TD Cowen rating and price target
- Positive Sentiment: Management outlined a plan to generate more than $20 million in annualized noninterest-expense savings over the next four to six quarters as Coastal works toward returning to profitability. Growth in its CCBX banking-as-a-service program was also highlighted as a key earnings driver. Coastal Financial cost savings report
- Neutral Sentiment: Coastal Financial reported third-quarter EPS of $0.89 and revenue of $149.33 million. Earnings were close to the year-ago level but missed analyst expectations of $0.96 EPS and $158.85 million in revenue. The company also reported a negative net margin and negative return on equity, increasing investor focus on its profitability turnaround. Coastal Financial third-quarter results
- Negative Sentiment: Several law firms announced or promoted a securities class action alleging violations of federal securities laws involving purchases made between October 28, 2024, and July 29, 2026. Investors seeking lead-plaintiff status face a December 1, 2026 deadline. The litigation creates legal, reputational and potential financial risks for CCB, although the allegations have not been proven. Coastal Financial securities lawsuit announcement
About Coastal Financial
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.
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