Coastal Financial (NASDAQ:CCB) Announces Earnings Results

Coastal Financial (NASDAQ:CCB) announced its quarterly earnings data 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. Coastal Financial had a negative net margin of 0.53% and a negative return on equity of 0.79%. The company had revenue of $60.37 million during the quarter, compared to analysts’ expectations of $148.50 million.

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 Trading Up 2.7%

NASDAQ:CCB opened at $40.99 on Friday. The company has a market capitalization of $625.10 million, a PE ratio of -146.39 and a beta of 0.72. Coastal Financial has a 52-week low of $36.61 and a 52-week high of $120.05. The stock’s 50 day moving average price is $72.92 and its 200 day moving average price is $79.95. The company has a quick ratio of 1.03, a current ratio of 1.06 and a debt-to-equity ratio of 0.10.

Analyst Ratings Changes

Several brokerages recently weighed in on CCB. Zacks Research raised shares of Coastal Financial from a “strong sell” rating to a “hold” rating in a report on Tuesday, June 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of Coastal Financial in a report on Monday, June 29th. 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 research report on Friday. Stephens restated an “overweight” rating and issued a $110.00 price objective on shares of Coastal Financial in a report on Friday, May 1st. Finally, Wall Street Zen raised shares of Coastal Financial from a “sell” rating to a “hold” rating in a research report on Saturday, May 16th. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $91.33.

Key Coastal Financial News

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

• Positive Sentiment: CCB is considered technically oversold after falling about 49% in four weeks. Zacks also cited upward earnings-estimate revisions by analysts, suggesting selling pressure may be exhausted and that a near-term rebound is possible. Down 49% in 4 Weeks, Here’s Why You Should You Buy the Dip in Coastal Financial
• Positive Sentiment: Raymond James downgraded Coastal Financial from “strong buy” to “outperform” but maintained a $50 price target, while Keefe, Bruyette & Woods retained an “outperform” rating with a $53 target. Both targets imply meaningful upside from the recent trading level, although KBW substantially reduced its previous $95 target. Raymond James analyst action Keefe, Bruyette & Woods analyst action
• Neutral Sentiment: Management highlighted record net interest income, continued growth in its banking-as-a-service business and a strategic shift in its second-quarter investor materials. However, the earnings call transcript provides additional context investors will assess regarding credit quality and partner concentration. Coastal Financial Corporation Announces Second Quarter 2026 Results
• Negative Sentiment: Second-quarter results were materially below expectations. CCB reported a $2.76 per-share loss versus consensus estimates for approximately $1.01 of earnings, while revenue of $60.37 million fell well short of the $148.50 million estimate. The company recorded a $42.1 million net loss, primarily because of a $68.8 million credit expense tied to one isolated CCBX partner relationship. Coastal Financial Corporation Reports Q2 Loss
• Negative Sentiment: Several law firms announced investigations into possible securities-law violations following the earnings disclosure and related stock decline. The investigations could add reputational, legal and financial uncertainty, although no wrongdoing has been established. CCB Investor Alert

Institutional Investors Weigh In On Coastal Financial

Several large investors have recently modified their holdings of the company. Wellington Management Group LLP increased its holdings in shares of Coastal Financial by 9.0% in the 3rd quarter. Wellington Management Group LLP now owns 486,197 shares of the company’s stock valued at $52,592,000 after acquiring an additional 39,984 shares during the period. Loomis Sayles & Co. L P grew its position in Coastal Financial by 43.8% during the 4th quarter. Loomis Sayles & Co. L P now owns 330,230 shares of the company’s stock worth $37,841,000 after purchasing an additional 100,661 shares during the last quarter. Geode Capital Management LLC increased its stake in Coastal Financial by 3.0% in the fourth quarter. Geode Capital Management LLC now owns 325,897 shares of the company’s stock valued at $37,351,000 after purchasing an additional 9,357 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Coastal Financial by 364.1% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 168,764 shares of the company’s stock valued at $18,255,000 after buying an additional 132,403 shares during the last quarter. Finally, UBS Group AG boosted its stake in shares of Coastal Financial by 158.7% during the third quarter. UBS Group AG now owns 166,185 shares of the company’s stock worth $17,976,000 after buying an additional 101,935 shares during the period. 59.24% of the stock is owned by institutional investors and hedge funds.

About Coastal Financial

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.