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Coastal Financial (CCB) Q3 2026 Earnings Report

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CCB Q3 2026 EPS Results

Actual EPS
$0.89
Consensus EPS
$0.96
Beat/Miss
Missed by -$0.07
One Year Ago EPS
$0.88

CCB Q3 2026 Revenue Results

Actual Revenue
$182.72M
Expected Revenue
$158.85M
Beat/Miss
Beat by +$23.87M
YoY Revenue Growth
+3.94%

Earnings Announcement Details

Quarter
Q3 2026
Date
10/29/2026
Time
Before Open
Conference Call
Thursday, October 29, 2026
CCB Upcoming Earnings

Coastal Financial's next earnings date is estimated for January 28, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

CCB Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Oct 29, 2026|% Change Since:-9.68%|
Earnings Call Sentiment|Positive

The call was broadly positive: Coastal returned to profitability, increased BaaS fee income, improved specific portfolio credit metrics, strengthened capital, expanded its partner and loan-sale pipeline, and reported early progress on expense reductions. However, the specific partner matter remains unresolved, a potential $22.8 million charge-off remains possible by year-end, net interest margin declined sequentially, and the financial impact of the Bluevine transaction has not yet been quantified.

Company Guidance

Coastal identified over $20 million in potential annualized savings in noninterest expenses and expects to achieve these potential savings over the next 4 to 6 quarters; management said the savings are a pretax number, there will be potentially reinvestment at different stages, and it is not giving any projections in terms of how different ratios will work out yet. The company expects operating leverage to improve as the plan is implemented, expects any required charge-off of the $22.8 million specific allowance to be recognized by year-end, and does not expect the Bluevine transaction or any resulting changes to the Bluevine deposit relationship to have a material or adverse effect on liquidity or funding profile.

  • Return to ProfitabilityThird-quarter net income was $13.8 million, or $0.89 per diluted share, compared with a net loss of $42.1 million, or $2.76 per diluted share, in the second quarter and net income of $13.6 million, or $0.88 per diluted share, a year ago.
  • Strong BaaS Program Fee GrowthBaaS program fee income increased to $14.1 million, up 17.6% from the second quarter and 79.6% from a year earlier, driven by higher transaction, interchange, and servicing fees.
  • Improved Capital PositionThe company ended the quarter well capitalized, with a common equity Tier 1 ratio of 11.47%, compared with 10.86% at June 30. The Tier 1 leverage ratio was 8.81%, and total risk-based capital was 13.2%.
  • Partner Credit Enhancement CoverageApproximately 96.7% of BaaS nonperforming loans were covered by partner credit enhancements. Of the reported $54.6 million of BaaS nonperforming loans, $52.8 million was covered by partner credit enhancements.
  • Improved Specific Partner Portfolio MetricsFor the specific partner portfolio, annualized net charge-offs declined to 9.81% from 11.46% in the second quarter, while loans 30 or more days past due declined to 3.41% from 4.06%. Management also stated that charge-offs had improved materially since the third quarter of 2025.
  • Broad Portfolio Review Found No Comparable IssuesManagement's review of credit performance, delinquencies, charge-off trends, partner liquidity, collateral funding, and reimbursement obligations across 21 active partners did not identify a comparable issue elsewhere in the portfolio.
  • Expansionary Partner PipelineCoastal had 30 CCBX relationships at varying stages: 21 active partners, 1 in testing, 2 in onboarding, 3 with signed letters of intent, and 4 winding down. Two partners were onboarding and three had signed letters of intent.
  • Growth in Capital-Light Loan SalesThe company sold $5.99 billion of BaaS loans during the quarter, compared with $4.56 billion in the second quarter. Management described the transaction activity as capital-light and said a larger-than-normal credit card transaction was completed successfully.
  • Debit Card and Off-Balance-Sheet GrowthCCBX active debit cards increased by 1.8 million, or 20% quarter-over-quarter, and by 6 million, or 118.7%, year-over-year. Off-balance-sheet credit card accounts reached 1.3 million.
  • Higher Deposit Sweep ActivityDeposits swept off the balance sheet increased to $6.29 billion from $4.26 billion at June 30 and generated $1.4 million of fee income, up 16.4% from the second quarter.
  • Liquidity and Funding FlexibilityCoastal ended the quarter with $803 million of cash and $827 million of additional contingent borrowing capacity, with no borrowings outstanding on its contingent funding lines. Management said it could bring sweep deposits back onto the balance sheet to replace Bluevine-related deposits.
  • Community Bank Deposit and Credit PerformanceCommunity Bank deposits grew by $63.2 million, or 4%, to $1.64 billion, with a 1.54% cost of deposits. Community Bank loans were $1.98 billion, and net charge-offs were effectively 0.
  • Early Expense Reduction ProgressNoninterest expense declined to $84.8 million from $141.1 million in the second quarter. Excluding BaaS loan and fraud expense, noninterest expense was $45 million versus $96.4 million in the second quarter. Salaries and employee benefits declined by $1.6 million, and data processing and software costs declined by $5.9 million, partially reflecting the absence of $4.4 million of accelerated depreciation recorded in the prior quarter.
  • Identified Annualized Savings OpportunityManagement identified more than $20 million in potential annualized savings in noninterest expenses and expects to achieve these potential savings over the next 4 to 6 quarters. The targeted savings are a pretax figure, and management said the run rate from vendors, contractors, and duplication is expected to develop over that period.
  • Technology and AI Efficiency InitiativesCoastal is scrutinizing vendors, contractors, personnel, discretionary spending, legacy systems, and duplicative processes. The company is also using AI to improve employee effectiveness and productivity and reduce future costs, particularly in compliance, anti-money laundering, and maintenance activities.
  • Continued Platform and Product GrowthEight partner programs were in various stages of expanding into additional products with Coastal. Management said the existing technology, compliance, data, and risk infrastructure can support the company's growth path and that the company remains a growth organization.
  • Stable Net Interest Performance Excluding BaaS Loan ExpenseNet interest income was $88.3 million, down 1.2% from the second quarter but up 13.4% from a year earlier. Net interest margin excluding BaaS loan expense was 3.93% versus 3.98% in the second quarter, while loan income net of BaaS loan expense increased to 6.86% of average loans from 6.83%.
  • Bluevine Funding Exposure Considered ManageableAs of September 30, Bluevine-related deposits on Coastal's balance sheet were approximately $452.4 million, with another $1.85 billion swept off the balance sheet. Management said it did not expect the transaction or any resulting changes to the Bluevine deposit relationship to have a material or adverse effect on liquidity or the funding profile.
  • Diversification and Risk Management FocusManagement emphasized diversification across products, programs, industries, and partner sizes, along with partner-specific portfolio limits and recurring underwriting tests. The company is also evaluating partner liquidity, cash pledge accounts, indemnification capability, earnings diversity, and counterparty conditions.

CCB Earnings History

CCB earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Jan 28, 20272026 (Q4)1.01-0.82――
Oct 29, 20262026 (Q3)0.960.890.881.14% (+0.01)
Jul 30, 20262026 (Q2)1.01-2.760.71-488.73% (-3.47)
Apr 29, 20262026 (Q1)1.040.780.6323.81% (+0.15)
Jan 29, 20262025 (Q4)1.020.820.94-12.77% (-0.12)
Oct 29, 20252025 (Q3)0.870.880.97-9.28% (-0.09)
Jul 29, 20252025 (Q2)0.840.710.84-15.48% (-0.13)
Apr 29, 20252025 (Q1)0.840.630.526.00% (+0.13)
Jan 28, 20252024 (Q4)0.920.940.6642.42% (+0.28)
Oct 28, 20242024 (Q3)0.950.970.7529.33% (+0.22)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed