Q2 2026 Coastal Financial Corp (EVERETT) Earnings Call Transcript

Jul 30, 2026 / 12:00 PM GMT

Release Date Price: $39.91 (-43.52%)

Transcript 10-Q8-K

Key Points

Positve

Record net interest income of $89.4 million, up 16.4% year-over-year, with a stable and slightly improving net interest margin of 7.27%.
CCBX segment momentum continued with BAS program fee income of $12 million, up 10% from the first quarter.
Off-balance sheet credit card program grew to 881,000 fee-earning accounts, a 32% increase from the first quarter.
Community Bank credit quality remained strong with annualized net charge-offs at just 0.01% of average loans.
Company remains well-capitalized with a CET1 ratio of 10.86%, $1.01 billion in cash, and over $1.1 billion in contingent borrowing capacity with no short-term borrowings.

Negative

Reported a GAAP net loss of $42.1 million, driven by $68.8 million in pretax accounting adjustments related to a defined CCBX portfolio partner.
The $68.8 million charge includes a $46 million valuation adjustment to a credit enhancement asset and a $22.8 million provision for credit losses on a partner's indemnification agreement.
Core operating expenses rose double-digits sequentially and 22% year-over-year, indicating a need for better cost control.
The company recorded a $4.4 million accelerated software amortization charge due to shortened useful lives from technology modernization.
The troubled partner portfolio of approximately $500 million in underlying loans presents ongoing uncertainty, with resolution potentially taking 1-2 quarters to 12-18 months.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CCB.OQ - Coastal Financial Corp (EVERETT)
Q2 2026 Coastal Financial Corp (EVERETT) Earnings Call
Jul 30, 2026 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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Welcome to Coastal Financial Corporation's second quarter 2026 earnings conference call. At this time, all participants have been placed in listen-only mode. Following the prepared remarks portion of this morning's call, the management team will take questions. Before we begin, I would like to point all of you to the disclosure near the end of the company's earnings release for information about any forward-looking statements that may be made or discussed on this call.

The earnings release is posted on Coastal's website. Please review the information along with our filings with the SEC for a disclosure of factors that may impact the subjects discussed in this morning's call. The company will also be

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