NASDAQ$CCB
Coastal Financial Corporation · Q3 2024 earnings
Q3 2024 earnings · · Investor relations
Briefing
Reported net income of $13.5 million and strong momentum across community bank and CCBX segments.
Coastal Financial Corporation reported a strong third quarter in 2024, marked by a net income of $13.5 million, or $0.97 per diluted common share. The company experienced high quality net loan growth of $92.4 million, driven by both the community bank and CCBX segments, despite selling $423.7 million in loans. Strategic initiatives to increase fee income and investments in scalable infrastructure contributed to the positive results.
- Balance sheet is well-positioned for lower rates with $1.95 billion of CCBX deposits contractually repricing lower immediately upon any reduction in the Federal Funds Rate.
- Expanding relationships with CCBX partners by launching new products with existing partners to reach a wide customer base.
- Sold $423.7 million loans to balance credit risk, manage partner and lending limits, protect capital levels and move credit card balances to an off balance sheet fee generating model.
- Continued regulatory and compliance infrastructure investments position the company well for the next phase of growth.
Headline financials
Revenue & EPS history
Coastal Financial · Revenue · Quarterly
$152M
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 Corporation is focused on building its technology and risk management infrastructure to support the next phase of growth within CCBX. Strategic decisions are expected to enhance credit quality, generate passive fee income, strengthen talent, and grow relationships with established and prospective CCBX partners, positioning Coastal to be more profitable in 2025.
Tailwinds
- Building out technology and risk management infrastructure to support CCBX growth.
- Enhancing credit quality through strategic balance sheet management.
- Generating passive fee income from sold credit card balances.
- Strengthening talent through reorganization and strategic appointments.
- Growing relationships with established and prospective CCBX partners.
Headwinds
- Balance sheet re-mix earlier in the year resulted in a short-term reduction to income.
- Continued investment in regulatory and compliance infrastructure increases expenses.
- Potential exposure to additional credit losses if CCBX partners are unable to fulfill their contracted obligations.
- Dependence on CCBX partner credit enhancements to protect against credit and fraud losses.
- Increased state taxes due to expansion of CCBX activities and employees into other states.
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 2024
+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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