NASDAQ$CCB
Coastal Financial Corporation · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Coastal Financial's Q3 2023 earnings were announced, revealing a net income of $10.3 million and strategic balance sheet adjustments.
Coastal Financial Corporation reported a net income of $10.3 million for Q3 2023, with total assets increasing to $3.68 billion. The company strategically decreased total loans by $40.5 million through loan sales, while deposits increased by $127.1 million. Focus remained on optimizing the CCBX loan portfolio and strengthening the balance sheet.
- Net income reached $10.3 million, or $0.75 per diluted common share.
- Total assets grew to $3.68 billion, a 4.1% increase for the quarter.
- Total loans decreased by $40.5 million due to strategic loan sales.
- Deposits increased by $127.1 million, reflecting a 4.0% growth.
Headline financials
Revenue & EPS history
Coastal Financial · Revenue · Quarterly
$96.8M
Revenue by segment
Coastal Financial · $60.3M total across 2 segments · Q3 2023
- CCBX$41M+30.3%68.0%
- Community Bank$19.3M-15.1%32.0%
Forward guidance
Coastal Financial anticipates lower earnings in the short term due to optimizing the CCBX loan portfolio with enhanced credit standards, expecting the process to take 2 to 3 quarters. The company plans to focus on increasing efficiency and using technology to reduce future expense growth, while maintaining its community bank mentality.
Tailwinds
- Focusing on larger partners and optimizing the CCBX loan portfolio to grow and advance presence in the BaaS space.
- Being more intentional in selecting products and partnerships that best serve customers and shareholders.
- Attracting a more established partner set due to expertise and strength.
- Optimizing the CCBX loan portfolio by selling higher yielding loans that have a greater potential for credit deterioration.
- Focusing on strengthening the portfolio with new loans that will provide for long term stability and profitability.
Headwinds
- Expect lower earnings in the short term with lower loan yields and compressed margins.
- Net interest margin will tighten as higher quality loans yield less than higher risk loans.
- Size of the CCBX loan portfolio will be smaller than in previous quarters while working to grow the portfolio with loans that are subject to increased underwriting standards.
- Legal and professional fees may decline but are currently elevated due to data and risk management initiatives.
- Additional FOMC interest rate increases will increase cost of deposits and result in higher interest expense on interest bearing deposits.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q3 2023
+1.8%
Avg return
Earnings day
+1.0%
Avg return
5 days after
+3.7%
Avg return
30 days after
69%
24 / 35 earnings
Positive
+10.4%
Q1 2023
Best reaction
-9.0%
Q3 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +4.0% | -15.2% | -18.0% | |
| Q4 2025 | +0.1% | -11.3% | -26.5% | |
| Q3 2025 | -3.4% | -1.3% | +2.8% | |
| Q1 2025 | +0.3% | +3.7% | +3.8% | |
| Q4 2024 | +6.8% | +0.4% | -2.6% | |
| Q3 2024 | +10.4% | +8.2% | +32.1% | |
| Q2 2024 | +0.1% | -7.0% | -0.5% | |
| Q1 2024 | -4.7% | +3.2% | +6.0% | |
| Q4 2023 | -6.6% | -8.8% | -10.2% | |
| Q3 2023 | -9.0% | -9.7% | -1.9% | |
| Q2 2023 | -3.0% | -6.2% | -8.3% | |
| Q1 2023 | +10.4% | +2.8% | +8.2% | |
| Q4 2022 | +3.9% | +8.4% | +5.2% | |
| Q3 2022 | +9.9% | +15.6% | +18.4% | |
| Q2 2022 | +4.6% | +3.8% | +2.9% | |
| Q1 2022 | +1.1% | -0.0% | -4.0% | |
| Q4 2021 | -3.9% | +1.8% | -2.9% | |
| Q3 2021 | +3.7% | +11.3% | +27.0% | |
| Q2 2021 | +3.1% | +1.5% | +3.7% | |
| Q1 2021 | +5.7% | +7.2% | +11.9% | |
| Q4 2020 | -1.7% | -3.7% | +31.8% | |
| Q3 2020 | +7.0% | +15.7% | +32.1% | |
| Q2 2020 | -2.8% | -2.1% | +0.7% | |
| Q1 2020 | +8.6% | -3.3% | +17.8% | |
| Q4 2019 | +1.6% | +2.3% | -4.2% | |
| Q3 2019 | +0.3% | -0.1% | +12.0% | |
| Q2 2019 | +4.2% | +3.5% | -3.4% | |
| Q1 2018 | -0.1% | -2.4% | -2.5% | |
| Q1 2019 | +1.5% | -0.8% | -1.6% | |
| Q2 2018 | +6.8% | +7.1% | +2.3% | |
| Q4 2017 | +6.8% | +7.1% | +2.3% | |
| Q4 2018 | +0.9% | -2.5% | +10.1% | |
| Q3 2017 | -1.1% | +1.0% | -13.3% | |
| Q3 2018 | -4.6% | -0.9% | -4.4% | |
| Q2 2017 | +2.3% | +5.3% | +3.8% | |
| Q1 2017 | — | — | — |
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