Watch Q2 2026 for deposit normalization (management expects ~$500M outflow) and NIM stabilization; the strategic shift toward partner economics may pressure net revenue growth. BaaS program fee income growth (73.4% YoY) is a positive but rising BaaS loan expense and fraud costs warrant monitoring.
Price Chart
Executive Summary
Coastal Financial Corp released its Q1 2026 investor presentation, reporting net income of $12.0M (down 4.9% QoQ but up 23.5% YoY), diluted EPS of $0.78 (vs $0.82 LQ), and revenue of $149.4M (up 8.3% QoQ). Total deposits surged 21.6% to $5.04B, largely from new CCBX partner relationships, with management expecting ~$500M of that to normalize in Q2. Net interest margin contracted to 7.00% (from 7.03% LQ) and the non-GAAP NIM net of BaaS loan expense fell to 3.90% (from 4.26% LQ), reflecting strategic partner pricing changes and higher passed-through yields.
Key Facts
- Net income of $12.0M, down 4.9% from Q4 2025 ($12.6M), up 23.5% from Q1 2025 ($9.7M)
- Diluted EPS of $0.78, compared to $0.82 in Q4 2025 and $0.63 in Q1 2025
- Total revenue of $149.4M, up 8.3% QoQ and 7.1% YoY
- Core net revenue (non-GAAP) of $56.3M, down 0.3% QoQ but up 11.8% YoY
- Net interest margin of 7.00%, down from 7.03% in Q4 2025 and 7.48% in Q1 2025
- Net interest margin net of BaaS loan expense (non-GAAP) of 3.90%, down from 4.26% in Q4 2025
- Total assets of $5.66B, up 19.5% from Q4 2025
- Total loans of $3.86B, up 2.9% sequentially
- Total deposits of $5.04B, up 21.6% sequentially, driven by new CCBX partner deposits
- Management expects newly added deposits to moderate ~$500M and level out in Q2 2026
- BaaS program fee income grew 73.4% YoY
- Sold $3.28B of loans during the quarter, $2.63B from previously sold credit card receivables
- Swept $2.81B off balance sheet for FDIC insurance and liquidity, generating $710K in noninterest income
- Tangible book value per share of $32.76, up 2.0% from Q4 2025
- Bank Common Equity Tier 1 ratio of 12.19% and Total Risk-based Capital of 13.48%
Financial Impact
Net income declined $0.6M QoQ but grew $2.3M YoY; revenue increased $11.4M QoQ; NIM compressed 3bp QoQ and 48bp YoY
Risk Factors
- Net interest margin compression, especially after adjusting for BaaS loan expense (down 36bp QoQ to 3.90%)
- Elevated uninsured deposits ($1.77B, including $1.03B from new partners) pose liquidity risk if normalization delays
- Sequential decline in net income and core PPNR (down 14.9% QoQ) despite revenue growth
- BaaS loan expense increased $5.7M QoQ, reducing net loan income
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437958-26-000032 |
| Document: ck1437958-20260429.htm | 0001437958-26-000032 |
| Document: 0001437958-26-000032-index-headers.html | 0001437958-26-000032 |
| Document: 0001437958-26-000032-index.html | 0001437958-26-000032 |
| Document: 0001437958-26-000032.txt | 0001437958-26-000032 |
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%) |
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