Quarterly ResultJul 30, 2026, 06:46 AM
Coastal Financial Q2 Net Loss $42.1M on BaaS Credit Expense
AI Summary
Coastal Financial Corporation reported a net loss of $42.1 million, or $(2.76) per diluted common share, for Q2 2026, primarily due to a $68.8 million credit expense related to a single BaaS partner relationship. Despite this, the company highlighted continued performance in its core franchise, including a 7.2% increase in net interest income and a 10.3% rise in BaaS program fee income. Loans receivable grew by 9.0%, and the company maintained strong capital and liquidity positions. Additionally, Christopher D. Adams was appointed Executive Chairman.
Key Highlights
- Reported Q2 2026 net loss of $42.1 million, or $(2.76) per diluted share.
- Net loss primarily due to $68.8 million credit expense for one BaaS partner.
- Net interest income increased 7.2% to $89.4 million from prior quarter.
- BaaS program fee income rose 10.3% to $12.0 million from prior quarter.
- Loans receivable increased 9.0% to $4.21 billion from prior quarter.
- Swept $4.26 billion in deposits off-balance sheet for FDIC insurance and liquidity.
- Company and Bank remained well capitalized with Company CET1 ratio of 10.86%.
- Christopher D. Adams appointed Executive Chairman, effective immediately.
Price Impact
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