Net interest income has expanded to $83.4 million, yet the net interest margin has compressed to 1.5% in 2026Q1, reflecting mounting pressure on spread profitability.
| Net Interest Income | 317.1M | 310.06M | 272.59M | 231.19M | 171.43M | 79.15M | 57.15M | 41.83M | 34.66M | 29.1M | 25.94M | 0 | 0 |
| NII Growth % | 41.34% | 13.75% | 17.91% | 34.86% | 116.58% | 38.5% | 36.62% | 20.69% | 19.11% | 12.19% | - | - | - |
| Net Interest Margin % | 5.6% | 6.54% | 6.61% | 6.17% | 5.45% | 3% | 3.24% | 3.71% | 3.64% | 3.61% | 3.5% | 0% | 0% |
| Interest Income | 436.13M | 429.62M | 396.34M | 322.83M | 191.82M | 82.8M | 62.8M | 48.41M | 38.59M | 31.98M | 28.46M | 0 | 0 |
| Interest Expense | 119.03M | 119.55M | 123.75M | 91.64M | 20.39M | 3.65M | 5.65M | 6.58M | 3.93M | 2.88M | 2.52M | 0 | 0 |
| Loan Loss Provision | 188.25M | 192.63M | 277.61M | 183.99M | 79.06M | 9.91M | 8.31M | 2.54M | 1.83M | 870K | 1.92M | 0 | 0 |
| Non-Interest Income | 164.21M | 231.61M | 180.27M | 117.6M | 40.42M | 22.66M | 8.12M | 8.44M | 5.62M | 4.29M | 4.98M | 21.77M | 17.62M |
| Non-Interest Income % | 27.35% | 35.03% | 31.26% | 26.7% | 17.41% | 21.49% | 11.45% | 14.84% | 12.72% | 11.83% | 14.88% | 100% | 100% |
| Total Revenue | 600.35M | 661.23M | 576.61M | 440.43M | 232.25M | 105.46M | 70.93M | 56.84M | 44.21M | 36.27M | 33.44M | 21.77M | 17.62M |
| Revenue Growth % | 31.48% | 14.67% | 30.92% | 89.64% | 120.23% | 48.69% | 24.77% | 28.58% | 21.9% | 8.46% | 53.56% | 23.58% | - |
| Non-Interest Expense | 229.01M | 287.8M | 117.94M | 107.66M | 82.17M | 57.52M | 37.83M | 31.06M | 26.22M | 22.43M | 21.54M | 18.3M | 14.45M |
| Efficiency Ratio | 38.15% | 43.52% | 20.45% | 24.44% | 35.38% | 54.54% | 53.33% | 54.65% | 59.3% | 61.86% | 64.41% | 84.05% | 81.99% |
| Operating Income | 64.06M | 61.24M | 57.32M | 57.13M | 50.62M | 34.38M | 19.14M | 16.66M | 12.24M | 10.09M | 7.46M | 6.58M | 5.35M |
| Operating Margin % | 10.67% | 9.26% | 9.94% | 12.97% | 21.8% | 32.6% | 26.99% | 29.31% | 27.69% | 27.82% | 22.3% | 30.22% | 30.35% |
| Operating Income Growth % | - | 6.85% | 0.32% | 12.86% | 47.25% | 79.6% | 14.88% | 36.11% | 21.34% | 35.3% | 13.33% | 23.04% | - |
| Pretax Income | 64.06M | 61.24M | 57.32M | 57.13M | 50.62M | 34.38M | 19.14M | 16.66M | 12.24M | 10.09M | 7.46M | 3.47M | 3.17M |
| Pretax Margin % | 10.67% | 9.26% | 9.94% | 12.97% | 21.8% | 32.6% | 26.99% | 29.31% | 27.69% | 27.82% | 22.3% | 15.95% | 18.01% |
| Income Tax | 14.78M | 14.25M | 12.1M | 12.55M | 10M | 7.37M | 4M | 3.46M | 2.54M | 4.65M | 2.45M | 1.13M | 1.13M |
| Effective Tax Rate % | 23.07% | 23.27% | 21.11% | 21.97% | 19.75% | 21.44% | 20.87% | 20.77% | 20.76% | 46.12% | 32.91% | 32.44% | 35.61% |
| 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 |
| Net Margin % | 8.21% | 7.11% | 7.84% | 10.12% | 17.49% | 25.61% | 21.35% | 23.22% | 21.94% | 14.99% | 14.96% | 10.78% | 11.59% |
| Net Income Growth % | 2.35% | 3.92% | 1.44% | 9.73% | 50.44% | 78.3% | 14.73% | 36.08% | 78.46% | 8.65% | 113.17% | 14.88% | - |
| Net Income (Continuing) | 49.28M | 46.99M | 45.22M | 44.58M | 40.63M | 27M | 15.15M | 13.2M | 9.7M | 5.44M | 5M | 2.35M | 2.04M |
| EPS (Diluted) | 3.19 | 3.04 | 3.25 | 3.27 | 3.01 | 2.16 | 1.24 | 1.08 | 0.91 | 0.48 | 0.44 | 0.25 | 0.22 |
| EPS Growth % | -5.62% | -6.46% | -0.61% | 8.64% | 39.35% | 74.19% | 14.81% | 18.68% | 89.58% | 9.09% | 76% | 13.64% | - |
| EPS (Basic) | - | 3.12 | 3.35 | 3.36 | 3.14 | 2.25 | 1.27 | 1.11 | 0.93 | 0.48 | 0.44 | 0.25 | 0.22 |
| Diluted Shares Outstanding | 15.46M | 15.45M | 13.88M | 13.64M | 13.52M | 12.52M | 12.21M | 12.2M | 10.61M | 11.4M | 11.4M | 9.21M | 9.21M |
Regulatory BaaS Oversight Exposure
According to the provided financial data, Coastal Financial Corporation has demonstrated consistent growth in net interest income, which climbed from $59.5 million in 2023Q4 to $83.4 million by 2026Q1, reflecting a steady upward trajectory in interest-earning capacity despite broader regional economic headwinds and competitive funding pressures.
The consistent quarterly growth in NII suggests that the bank is successfully scaling its interest-earning assets, likely supported by the deposit inflows from its CCBX division. However, investors should monitor whether this growth is sustainable or if it relies on increasingly expensive funding sources that could compress future net interest income.
As reported in the quarterly income statements, the net interest margin has fluctuated within a narrow range, peaking at 1.8% before retreating to 1.5% in 2026Q1, which indicates that the bank is struggling to maintain spread profitability amidst a shifting interest rate and funding environment.
The contraction in NIM suggests that the cost of funding, particularly for partner-driven deposits, may be rising faster than the yields on the loan portfolio. This trend warrants further investigation into the bank's ability to pass on rate increases to its fintech partners without sacrificing deposit volume.
Based on the reported figures, the efficiency ratio has shown significant volatility, spiking to 46.9% in 2026Q1 from a low of 19.5% in 2024Q1, which suggests that the bank is facing mounting operational costs associated with its technology-first service model and regulatory compliance requirements.
The sharp increase in the efficiency ratio implies that the bank's operating leverage is currently under pressure, as non-interest expenses appear to be outpacing revenue growth. This may indicate that the cost of maintaining the CCBX infrastructure is higher than initially anticipated, potentially limiting near-term profitability.
Data from the income statement reveals that provision expense for loan losses has remained elevated and volatile, reaching $51.4 million in 2026Q1, which suggests that the bank is proactively managing credit risk in its loan book despite the potential for future asset quality deterioration.
The high level of provision expense relative to net income may indicate that the bank is bracing for potential losses within its commercial real estate and SBA loan portfolios. Investors should monitor whether these provisions are sufficient to cover potential defaults or if they represent a recurring drag on earnings.
As indicated by the financial statements, non-interest fee income has been a significant contributor to total revenue, representing 37.2% of the total in 2026Q1, which highlights the bank's heavy reliance on transactional activity from its fintech partners to drive top-line growth.
The variability in fee income suggests that the bank's revenue stream is sensitive to the transaction volumes of its fintech partners, which may introduce more volatility than traditional banking fees. This dependency warrants further investigation into the long-term stability and scalability of these partner-driven revenue sources.
Quick answers to the most common questions about buying CCB stock.
Coastal Financial Corporation (CCB) is profitable, generating $47.0M in net income for the fiscal year ending 2025 with a net profit margin of 7.1%.
Coastal Financial Corporation (CCB) reported an operating income of $61.2M, resulting in an operating profit margin of 9.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Coastal Financial Corporation (CCB) generated $349.0M in gross profit for the year, representing a gross profit margin of 52.8%. This demonstrates the company's core pricing power and production efficiency.