Operating cash flow remains heavily distorted by the bank's business model, evidenced by an OCF/NI ratio that reached 8.35 in 2024Q1 and continues to fluctuate significantly.
| Cash from Operations | 258.87M | 254.58M | 259.79M | 191.54M | 67.1M | 29.85M | 19.33M | 13.67M | 14.4M | 7.62M | 7.12M | 4.12M | 4.65M |
| Operating CF Growth % | -22.53% | -2% | 35.63% | 185.46% | 124.81% | 54.41% | 41.39% | -5.08% | 89.08% | 7.03% | 72.66% | -11.32% | - |
| Net Income | 49.28M | 46.99M | 45.22M | 44.58M | 40.63M | 27M | 15.15M | 13.2M | 9.7M | 5.44M | 5M | 2.35M | 2.04M |
| Depreciation & Amortization | 6.63M | 6.51M | 4.55M | 2.33M | 1.81M | 1.59M | 1.36M | 1.24M | 1.07M | 993K | 895K | 487K | 415K |
| Deferred Taxes | 5.57M | 4.45M | 138K | 13.88M | -11.02M | -3.01M | -1.07M | -561K | -382K | 1.28M | -323K | 0 | 0 |
| Other Non-Cash Items | 188.62M | 193.08M | 277.58M | 183.5M | 79.2M | 6.82M | 8.48M | 1.66M | 1.38M | 587K | 1.09M | 1.15M | 2.22M |
| Working Capital Changes | 711K | -5.06M | -72.55M | -56.41M | -46.04M | -3.84M | -5.21M | -2.3M | 2.32M | -968K | 306K | -15K | -171K |
| Cash from Investing | -634.14M | -525.65M | -608.57M | -594.01M | -987.95M | -239.64M | -666.54M | -164.55M | -139.12M | -61.76M | -118.69M | -114.66M | -61.69M |
| Purchase of Investments | -3.96M | -5.14M | -546K | -50.24M | -137.14M | -118.44M | -31.94M | -33.87M | -86K | -5.59M | -58.02M | 0 | 0 |
| Sale/Maturity of Investments | 5.94M | 4.21M | 103.57M | 1.28M | 70.27M | 104.05M | 39.48M | 40.17M | 229K | 1.78M | 37.73M | 0 | 0 |
| Net Investment Activity | 1.98M | -938K | 103.03M | -48.96M | -66.87M | -14.39M | 7.54M | 6.3M | 143K | -3.81M | -20.29M | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -19.98M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -628.48M | -516.28M | -701.69M | -538.81M | -918.24M | -202.67M | -668.72M | -169.64M | -138.12M | -56.89M | -97.49M | -109.35M | -61.26M |
| Cash from Financing | 1.25B | 555.52M | 318.17M | 543.46M | 449.83M | 859.84M | 622.26M | 154.47M | 133.92M | 59.65M | 113.2M | 114.56M | 56.2M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.51M | -3.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3K | -4K | 0 | 0 |
| Stock Issued | 5K | 186K | 91.8M | 618K | 1.47M | 32.39M | 0 | 0 | 33.24M | 0 | 0 | 0 | 0 |
| Net Stock Activity | -1.51M | -3.34M | 91.8M | 618K | 1.47M | 32.39M | 0 | 0 | 33.24M | -3K | -4K | 0 | 0 |
| Debt Issuance (Net) | 0 | 0 | 0 | 0 | -1000K | -1000K | 1000K | -1000K | 0 | 1000K | 1000K | 1000K | 1000K |
| Other Financing | 1.25B | 558.87M | 226.36M | 542.84M | 453.73M | 966.9M | 453.55M | 164.47M | 100.68M | 54.66M | 105.08M | 113.56M | 47.9M |
| Net Change in Cash | 871.16M | 284.46M | -30.61M | 140.99M | -471.02M | 650.04M | -24.95M | 3.59M | 9.2M | 5.51M | 1.64M | 4.02M | 6.51M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.35M |
| Cash at Beginning | 736.97M | 452.51M | 483.13M | 342.14M | 813.16M | 163.12M | 43.91M | 40.32M | 31.12M | 25.61M | 9.45M | 6.51M | 0 |
| Cash at End | 1.5B | 736.97M | 452.51M | 483.13M | 342.14M | 813.16M | 18.96M | 43.91M | 40.32M | 31.12M | 11.08M | 10.53M | 6.51M |
| Interest Paid | 117.47M | 119.08M | 123.68M | 91.44M | 20.07M | 3.82M | 6.55M | 6.55M | 3.88M | 2.87M | 2.54M | 0 | 0 |
| Income Taxes Paid | 9.38M | 9.47M | 10.54M | 6.84M | 23.5M | 8.76M | 5.36M | 4.48M | 2.52M | 3.82M | 2.37M | 0 | 0 |
| Free Cash Flow | 251.36M | 246.15M | 249.89M | 185.29M | 64.26M | 27.25M | 13.96M | 12.46M | 13.25M | 6.56M | 6.21M | -1.19M | 4.21M |
| FCF Growth % | -4.73% | -1.5% | 34.86% | 188.35% | 135.78% | 95.2% | 12.07% | -6% | 102.03% | 5.7% | 622.39% | -128.19% | - |
BaaS Regulatory Compliance Overhead
According to the reported financial statements, Coastal Financial Corporation has consistently retained earnings to fund its expansion, as evidenced by the absence of dividend payments over the last ten quarters, allowing the bank to prioritize capital accumulation for its technology-heavy CCBX division and regulatory compliance requirements.
The bank's decision to forgo dividends suggests a strategic focus on internal capital generation to support the rapid scaling of its BaaS platform. Investors should monitor whether this retention strategy remains sufficient to absorb the rising overhead costs and potential credit volatility inherent in the fintech-partnered loan book.
Based on the provided cash flow data, Coastal Financial Corporation maintains a remarkably low level of investment securities activity, with quarterly purchase volumes rarely exceeding $1 million, which indicates that the bank is not utilizing its securities portfolio as a primary tool for liquidity or yield management.
The lack of significant investment activity implies that the bank's liquidity is primarily managed through deposit inflows and loan book dynamics rather than a traditional bond ladder. This approach may leave the bank more exposed to interest rate volatility, as it lacks a substantial buffer of liquid securities to offset potential deposit outflows.
As reported in the quarterly cash flow filings, Coastal Financial Corporation has maintained high levels of loan loss provisions, peaking at $83.2 million in 2024Q1, which suggests that management is proactively building reserves to mitigate the credit risks associated with its specialized commercial and SBA loan portfolios.
The persistent gap between net income and operating cash flow, often driven by these significant provision expenses, highlights the bank's conservative approach to credit risk. Analysts should investigate whether these provisions are sufficient to cover potential losses if the Puget Sound real estate market experiences a sustained downturn.
Based on the reported figures, the OCF/NI ratio has fluctuated wildly, reaching as high as 8.35 in 2024Q1, which indicates that traditional cash flow metrics are heavily distorted by non-cash items and the rapid turnover of assets inherent in the bank's unique BaaS business model.
The high OCF/NI ratio suggests that the bank's reported net income is a poor proxy for its actual cash-generating capacity, as the operating cash flow is likely inflated by changes in working capital related to fintech partner deposits. Investors should look past these headline figures to focus on the underlying stability of the deposit base and the sustainability of fee-based revenue streams.
Quick answers to the most common questions about buying CCB stock.
Coastal Financial Corporation (CCB) generated $254.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Coastal Financial Corporation (CCB) generated $246.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Coastal Financial Corporation (CCB) spent $8.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Coastal Financial Corporation (CCB) spent $3.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.