Coastal and CCBX Release Q4 2025 Update

Full Earnings Release available here.

Management Outlook; CEO Eric Sprink

“As the banking landscape continues to evolve, including the development of new bank charters and alternative models that could change how banking services are delivered, we remain confident in the strength of our platform and relationships. Our continued investment in technology is critical to supporting the delivery of scalable, compliant, and differentiated solutions for our partners and customers. We are focused on both establishing new and deepening existing customer relationships through product expansion, and we are encouraged by the early performance of products launched last quarter, which have gained traction and contributed to CCBX deposit growth. We believe these results underscore the value of our strategy and our ability to execute in a dynamic environment.” said CEO Eric Sprink.

Coastal Financial Corporation Overview

The Company has one main subsidiary, the Bank, which consists of three segments: CCBX, the community bank and treasury & administration.  The CCBX segment includes all of our BaaS activities, the community bank segment includes all community banking activities and the treasury & administration segment includes treasury management, overall administration and all other aspects of the Company.  

CCBX Performance Update

Our CCBX segment continues to evolve, and we have 28 relationships, at varying stages, including two partners in testing, five in implementation/onboarding, one signed LOI and one winding down as of December 31, 2025.  We continue to refine the criteria for CCBX partnerships, by focusing on larger, established partners with strong management, customer bases, and finances, while also considering promising smaller partners that fit our approach and terms. During the quarter ended December 31, 2025 we exited our partnership with Albert, and we will continue to exit relationships where it makes sense for us to do so.

While we explore relationships with new partners we continue to expand our product offerings with existing CCBX partners. As we become more proficient in the BaaS space we aim to cultivate new relationships that align with our long-term goals. A dual strategy of onboarding new partners and expanding products with existing partners drives growth, while our operating history with existing partners helps limit incremental regulatory risk. Increases in partner activity/transaction counts are positively impacting noninterest income, and we expect this trend to continue as current products grow and new products are introduced. We plan to continue selling loans as part of our strategy to balance partner and lending limits, and manage the loan portfolio and credit quality. We retain a portion of the fee income for our role in processing transactions on sold credit card loans, which continues to grow and is expected to provide increased and ongoing revenue with no on balance sheet risk or capital requirement.

As we grow our deposit base, we expect to sweep deposits off and on the balance sheet, subject to applicable agreements, which enhances our ability to manage liquidity and deposit programs. This deposit sweep capability allows us to better manage liquidity and deposit programs. At December 31, 2025 we swept off $843.6 million in deposits for FDIC insurance and liquidity purposes, and generated $540,000 in noninterest income during the quarter ended December 31, 2025. During the quarter ended December 31, 2025, seven partner programs were in various stages of expansion to include additional products, such as lines of credit, deposit programs, credit cards, and other lending products. Robinhood's deposit program has successfully launched during the fourth quarter and, as a result, has positively impacted CCBX deposit growth during the quarter ended December 31, 2025. The expansion of these and other partner initiatives is expected to drive higher partner revenue in upcoming periods.