Coastal Financial (NASDAQ:CCB) Posts Earnings Results, Misses Expectations By $0.07 EPS

Coastal Financial (NASDAQ:CCB) announced its earnings results on Thursday. The company reported $0.89 earnings per share for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.07), Zacks reports. Coastal Financial had a negative net margin of 0.53% and a negative return on equity of 0.80%.

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 Trading Down 5.3%

CCB traded down $2.48 during midday trading on Thursday, reaching $44.65. 254,067 shares of the company were exchanged, compared to its average volume of 193,715. The stock has a market capitalization of $682.74 million, a P/E ratio of -160.03 and a beta of 0.86. The stock’s 50-day simple moving average is $44.71 and its 200 day simple moving average is $69.31. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.03 and a current ratio of 1.05. Coastal Financial has a one year low of $35.56 and a one year high of $120.05.

Coastal Financial News Roundup

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

• Positive Sentiment: Coastal Financial reported third-quarter 2026 earnings of $0.89 per share, up slightly from $0.88 a year earlier. Management said results were driven by growth in its CCBX banking-as-a-service program. Coastal Financial Corporation Announces Third Quarter 2026 Results
• Positive Sentiment: The company outlined a strategic shift in an investor presentation and announced steps to reduce executive compensation and leadership costs. Those actions could support profitability and improve operating efficiency over time. Coastal Financial Tightens Executive Pay and Leadership Costs
• Neutral Sentiment: Management’s CCBX growth remains a key investor focus, but the quarter’s results suggest that expansion has not fully translated into results above Wall Street expectations. Analysts cited revenue and other operating metrics as weaker than anticipated. Coastal Financial Q3 Earnings Key Metrics
• Negative Sentiment: Third-quarter EPS of $0.89 missed consensus estimates ranging from $0.96 to $0.99, while sales also fell below analyst expectations. The earnings shortfall likely pressured the stock because it raises questions about near-term earnings momentum. Coastal Financial Q3 Earnings and Revenues Lag Estimates
• Negative Sentiment: Several law firms reiterated notices about a securities class action covering investors who purchased shares between October 28, 2024, and July 29, 2026. The allegations focus on disclosures concerning CCBX credit-risk indemnification and a deteriorating partner loan portfolio; the lead-plaintiff deadline is December 1, 2026. The litigation creates ongoing legal, financial and reputational uncertainty, although the allegations have not been proven. Coastal Financial Shareholder Action Reminder

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the stock. Weiss Ratings lowered shares of Coastal Financial from a “hold (c)” rating to a “sell (d)” rating in a research report on Tuesday, August 11th. TD Cowen reissued a “buy” rating on shares of Coastal Financial in a research note on Tuesday, September 29th. Keefe, Bruyette & Woods dropped their target price on Coastal Financial from $95.00 to $53.00 and set an “outperform” rating for the company in a research report on Friday, July 31st. Zacks Research lowered Coastal Financial from a “hold” rating to a “strong sell” rating in a research note on Tuesday, August 4th. Finally, Raymond James Financial cut Coastal Financial from a “strong-buy” rating to an “outperform” rating and set a $50.00 price target on the stock. in a report on Friday, July 31st. Five investment analysts have rated the stock with a Buy rating and two have given a Sell rating to the company. According to MarketBeat.com, Coastal Financial has an average rating of “Hold” and an average target price of $91.33.

Insider Buying and Selling at Coastal Financial

In other news, CEO Eric Sprink acquired 10,000 shares of the stock in a transaction that occurred on Thursday, August 6th. The stock was acquired at an average price of $44.45 per share, for a total transaction of $444,500.00. Following the transaction, the chief executive officer directly owned 173,238 shares in the company, valued at approximately $7,700,429.10. This represents a 6.13% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, Director Steven Hovde bought 10,000 shares of the company’s stock in a transaction on Thursday, August 6th. The shares were bought at an average price of $43.83 per share, for a total transaction of $438,300.00. Following the completion of the acquisition, the director directly owned 26,500 shares in the company, valued at approximately $1,161,495. This trade represents a 60.61% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 25,290 shares of company stock valued at $1,115,894 in the last three months. 13.49% of the stock is owned by company insiders.

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.