COASTAL FINANCIAL CORP

Coastal Financial Corp reported a significant increase in net income and diluted EPS for Q1 2026 compared to Q1 2025, driven by higher net interest income and noninterest income, particularly from its Banking-as-a-Service (BaaS) program. The company also saw substantial growth in total assets and deposits. Additionally, the Bank entered a non-binding term sheet with Evolve Bank & Trust to explore acquiring certain BaaS programs.

Coastal Community Bank, a subsidiary of Coastal Financial Corporation, has entered into a non-binding term sheet with Evolve Bank & Trust. The term sheet outlines the potential acquisition of assets and deposits related to a diverse set of Evolve's banking-as-a-service programs. The Bank plans to initiate due diligence, and any acquisition will be contingent upon definitive agreements and regulatory approvals.

Coastal Financial Corporation reported Q1 2026 net income of $12.0 million, or $0.78 per diluted common share, a decrease from $12.6 million in the prior quarter but an increase from $9.7 million year-over-year. The company experienced solid growth with total assets increasing 19.5% to $5.66 billion and deposits growing 21.6% to $5.04 billion. The CCBX segment continued to expand product offerings and partner relationships, driving significant deposit and fee income growth, while management focuses on disciplined, sustainable expansion and credit quality.