Monitor next quarter's expense trajectory and credit quality trends. The elevated noninterest expense growth (legal, data processing, BaaS loan expense) may weigh on margins if revenue growth moderates. BaaS program fee income growth is positive, but guidance is qualitative. Short-term volatility expected.
Price Chart
Executive Summary
Coastal Financial Corp reported Q1 2026 EPS of $0.78 (diluted), down from $0.82 in Q4 2025 but up from $0.63 YoY. Revenue (net interest income + noninterest income) grew ~7% YoY to $149.4M, driven by higher net interest income and BaaS program income. However, noninterest expenses surged 11.5% YoY, pressuring net income which fell 5% QoQ. The mixed results reflect solid top-line growth offset by rising costs and credit provisions.
Key Financial Metrics
Key Facts
- Diluted EPS $0.78 vs $0.82 QoQ and $0.63 YoY
- Net interest income $83.4M, up 5% QoQ and 9.6% YoY
- Noninterest income $66.1M, up 12.6% QoQ
- Noninterest expense $83.5M, up 14.6% QoQ and 11.5% YoY
- Total revenue (NII + noninterest income) $149.4M, up ~7% YoY
- Provision for credit losses $51.4M vs $48.0M QoQ
- Net income $12.0M, down 5% QoQ but up 23.5% YoY
- CCBX loans grew 4.2% to $1.88B despite $3.28B in loan sales
- BaaS program fee income $10.9M, up 22.3% QoQ
Financial Impact
Revenue grew ~$10M YoY but expenses grew ~$11.5M YoY, compressing net income margin from 7.2% to 8.0% (calculated on total revenue). The EPS miss vs consensus (imputed ~$1.02) is ~24% below.
Risk Factors
- Noninterest expense growth outpacing revenue growth
- Rising provision for credit losses (CCBX loan growth and mix)
- Potential for further legal and restructuring costs
- Credit quality deterioration in CCBX portfolio
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437958-26-000031 |
| Document: ck1437958-20260429.htm | 0001437958-26-000031 |
| Document: 0001437958-26-000031-index-headers.html | 0001437958-26-000031 |
| Document: 0001437958-26-000031-index.html | 0001437958-26-000031 |
| Document: 0001437958-26-000031.txt | 0001437958-26-000031 |
| 8-K Data (Synthetic) | 0001437958-26-000031 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | Press Release | $44.90 | awaiting T+20 | — | $45.66 (+1.69%) |
Sep 28, 2026 29d ago | 8-K | $37.55 $45.08 | ▲ +20.07% | ▲ +20.10% | $45.66 (+21.61%) |
Aug 26, 2026 8w ago | 3 | $46.74 $43.62 | ▼ −6.68% | ▼ −6.17% | $45.66 (−2.31%) |
Aug 7, 2026 11w ago | Insider Cluster | $48.61 $49.47 | ▲ +1.77% | ▲ +2.68% | $45.66 (−6.07%) |
Jul 30, 2026 12w ago | 8-K | $39.91 $46.74 | ▼ −17.11% | ▼ −13.15% | $45.66 (−14.41%) |
Jul 30, 2026 12w ago | 8-K | $39.91 $46.74 | ▼ −17.11% | ▼ −13.15% | $45.66 (−14.41%) |
Jul 23, 2026 13w ago | Press Release | $72.19 | awaiting T+20 | — | $45.66 (−36.75%) |
Jul 22, 2026 13w ago | Press Release | $71.41 $46.06 | ▼ −35.51% | ▼ −38.81% | $45.66 (−36.06%) |
Jun 11, 2026 19w ago | Institutional Cluster | $73.53 $78.47 | ▲ +6.72% | ▲ +4.94% | $45.66 (−37.90%) |
May 1, 2026 25w ago | Insider Cluster | $76.39 $71.34 | ▼ −6.61% | ▼ −11.90% | $45.66 (−40.23%) |
US Market Status
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