--- title: "Coastal Financial Washington | 8-K: FY2026 Q1 Revenue: USD 177.76 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/284555871.md" datetime: "2026-04-29T11:12:48.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284555871.md) - [en](https://longbridge.com/en/news/284555871.md) - [zh-HK](https://longbridge.com/zh-HK/news/284555871.md) --- # Coastal Financial Washington | 8-K: FY2026 Q1 Revenue: USD 177.76 M Revenue: As of FY2026 Q1, the actual value is USD 177.76 M. EPS: As of FY2026 Q1, the actual value is USD 0.78, missing the estimate of USD 1.0375. EBIT: As of FY2026 Q1, the actual value is USD -68.77 M. Coastal Financial Corporation issued a press release on April 29, 2026, announcing its results for the fiscal quarter ended March 31, 2026, though the detailed financial and operational metrics were not contained within the Form 8-K document itself . #### Net Income Net income for the quarter ended March 31, 2026, was $12.0 million, compared to $12.6 million for the three months ended December 31, 2025, and $9.7 million for the three months ended March 31, 2025 . #### Segment Revenue **BaaS Program Fee Income:** BaaS program fee income was $10.9 million for the three months ended March 31, 2026, an increase of $2.0 million, or 22.3%, from $8.9 million for the three months ended December 31, 2025 . This also represents an increase of $4.6 million compared to $6.278 million for the three months ended March 31, 2025 . #### Operational Metrics **Return on Average Assets (ROA):** ROA was 0.98% for the quarter ended March 31, 2026, a decrease of 0.11% from 1.09% for December 31, 2025, but an increase of 0.05% compared to 0.93% for March 31, 2025 . **Return on Average Equity (ROE):** ROE was 9.80% for the quarter ended March 31, 2026, compared to 10.41% for December 31, 2025, and 8.91% for March 31, 2025 . **Net Interest Income:** Net interest income for Q1 2026 was $83.4 million, an increase of $4.0 million (5.0%) from $79.4 million in Q4 2025, and an increase of $7.3 million (9.6%) from $76.1 million in Q1 2025 . **Net Interest Margin (NIM):** The consolidated net interest margin was 7.00% for Q1 2026, a slight decrease from 7.03% in Q4 2025, and 7.48% in Q1 2025 . The net interest margin, net of BaaS loan expense, was 3.90% for Q1 2026, down from 4.26% in Q4 2025 and 4.28% in Q1 2025 . The CCBX segment’s net interest margin was 8.19% for Q1 2026, 8.68% for Q4 2025, and 9.72% for Q1 2025 . The community bank segment’s net interest margin was 4.67% for Q1 2026, 4.58% for Q4 2025, and 4.26% for Q1 2025 . **Efficiency Ratio:** The efficiency ratio was 55.85% for Q1 2026, compared to 52.75% for Q4 2025 and 51.59% for Q1 2025 . **Operating Costs (Noninterest Expense):** Total noninterest expense increased by $10.6 million to $83.5 million for Q1 2026, compared to $72.8 million for Q4 2025 . This increase was primarily due to a $2.6 million rise in legal and professional expenses, a $665,000 increase in data processing and software licenses, a $377,000 increase in salaries and employee benefits, a $5.7 million increase in BaaS loan expense, and a $2.0 million increase in BaaS fraud expense . Compared to Q1 2025, noninterest expenses increased by $11.5 million from $72.0 million, mainly due to a $3.4 million increase in data processing and software licenses, a $1.6 million increase in salary and employee benefits, a $4.4 million increase in BaaS loan expense, and a $1.1 million increase in BaaS fraud expense . Noninterest expense, net of BaaS loan expense, BaaS fraud expense, and reimbursement of expenses, was $41.061 million for Q1 2026, $38.590 million for Q4 2025, and $36.463 million for Q1 2025 . **Provision for Credit Losses:** The total provision for credit losses was $51.398 million for Q1 2026, compared to $48.041 million for Q4 2025 and $55.781 million for Q1 2025 . For the CCBX segment, the provision for credit losses was $52.6 million for Q1 2026, up from $45.9 million in Q4 2025 . The community bank segment had a provision recapture of $1.4 million in Q1 2026, compared to a recapture of $101,000 in Q4 2025 and a provision of $65,000 in Q1 2025 . **Net Charge-offs:** Net charge-offs totaled $49.6 million for Q1 2026, compared to $50.1 million for Q4 2025 and $48.2 million for Q1 2025 . Net charge-offs as a percentage of average loans decreased to 5.18% for Q1 2026, compared to 5.31% for Q4 2025 and 5.57% for Q1 2025 . For the CCBX segment, net charge-offs were $49.6 million for Q1 2026, while the community bank had net charge-offs of - $1,000 . **Nonperforming Assets (NPA):** Nonperforming assets were $67.6 million, or 1.19% of total assets, at March 31, 2026, compared to $64.1 million (1.35%) at December 31, 2025, and $56.4 million (1.30%) at March 31, 2025 . Nonperforming loans to total loans receivable was 1.75% at March 31, 2026, compared to 1.71% at December 31, 2025, and 1.60% at March 31, 2025 . **Allowance for Credit Losses (ACL):** The ACL was $172.4 million, or 4.47% of loans receivable, at March 31, 2026, compared to $169.5 million (4.52%) at December 31, 2025, and $183.2 million (5.21%) at March 31, 2025 . The ACL allocated to the CCBX portfolio was $154.3 million (8.19% of CCBX loans receivable) at March 31, 2026, and $18.2 million (0.92% of total community bank loans receivable) for the community bank . **Total Assets:** Total assets increased by $922.4 million, or 19.5%, to $5.66 billion at March 31, 2026, compared to $4.74 billion at December 31, 2025 . This increase was primarily driven by a $740.0 million increase in interest-earning deposits with other banks and a $109.8 million increase in loans receivable . **Deposits:** Total deposits grew by $897.0 million, or 21.6%, to $5.041 billion at March 31, 2026, compared to $4.144 billion at December 31, 2025 . Average deposits were $4.38 billion, an increase of $349.9 million (8.7%) over Q4 2025 . CCBX deposits increased by $910.4 million, or 35.6%, to $3.47 billion in Q1 2026 . Community bank deposits decreased by $13.4 million, or 0.8%, to $1.57 billion . **Loans Receivable:** Total loans receivable increased by $109.8 million, or 2.9%, to $3.859 billion at March 31, 2026, compared to $3.749 billion at December 31, 2025 . Average loans receivable increased by $138.6 million compared to Q4 2025 and $366.9 million compared to Q1 2025 . CCBX loans increased by $76.6 million, or 4.2%, to $1.88 billion at March 31, 2026, despite selling $3.28 billion in loans during the quarter . Community bank net loans increased by $33.3 million, or 1.7%, to $1.98 billion . **Off-Balance Sheet Credit Cards:** As of March 31, 2026, there were 667,023 off-balance sheet credit cards with fee-earning potential, an increase of 116,046 compared to Q4 2025 and an increase of 429,999 from March 31, 2025 . **Deposits Swept Off-Balance Sheet:** At March 31, 2026, $2.81 billion in deposits were swept off-balance sheet for FDIC insurance and liquidity purposes, generating $710,000 in noninterest income, an increase of $170,000 (31.5%) from $540,000 for Q4 2025 . **Capital Ratios:** As of March 31, 2026, Coastal Financial Corporation’s Tier 1 leverage capital was 10.09%, Common equity Tier 1 risk-based capital was 12.08%, Tier 1 risk-based capital was 12.17%, and Total risk-based capital was 14.54% . Coastal Community Bank’s corresponding ratios were 10.10%, 12.19%, 12.19%, and 13.48%, respectively . Both the Company and the Bank remained well capitalized . #### Outlook / Guidance Coastal Financial Corporation expects continued growth in its CCBX segment, driven by existing partners, new products, and new relationships . The company anticipates some pressure on margins as the rate environment evolves but believes its diversified business model and funding base will maintain a strong position . The focus remains on consistent execution and building long-term value through disciplined growth, including managing credit quality and optimizing partner economics . ### Related Stocks - [CCB.US](https://longbridge.com/en/quote/CCB.US.md) ## Related News & Research - [Advance Auto Parts Reports First Quarter 2026 Results; Reaffirms Full Year 2026 Guidance | AAP Stock News](https://longbridge.com/en/news/287202242.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [REEVES CONFIRMS NO INCREASE IN UK FUEL DUTY IN 2026](https://longbridge.com/en/news/287213292.md) - [Yatra Online, Inc. to Host Fourth Quarter and Full Year 2026 Financial Results Call on May 25, 2026 | YTRA Stock News](https://longbridge.com/en/news/287242169.md)