Coastal Financial Corporation · NASDAQ:CCB
Coastal Financial — Q2 2026 Earnings Presentation
43 slides from Coastal Financial's earnings presentation, Jul 30, 2026
Slide 1: Investor Presentation Second Quarter 2026
Investor Presentation Second Quarter 2026
Slide 2: Legal Information and Disclaimer
Legal Information and Disclaimer Important note regarding forward-looking statements: Statements made in this presentation (or conveyed orally) which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statem
Slide 3: Second Quarter 2026 Highlights
Second Quarter 2026 Highlights • Total assets decreased $207.7 million, or 3.7%, to $5.46 billion at June 30, 2026, compared to $5.66 billion at March 31, 2026 • Total loans receivable of $4.21 billion, an increase of $348.9 million, or 9.0%, from the prior quarter, reflecting continued growth acros
Slide 4: Second Quarter 2026 Highlights - continued
Second Quarter 2026 Highlights - continued • Net interest margin increased 0.27% to 7.27%, or 3.86%, from the prior quarter, the increase is due to a higher proportion of earning assets invested in loans rather than deposits with other banks and higher average loan balances • Net interest margin, ne
Slide 5: Understanding Second Quarter 2026
Understanding Second Quarter 2026 STRONG OPERATING PERFORMANCE: • Loans receivable growth ◦ $348.9 million increase in loans receivable, or 9.0%, compared to the quarter ended March 31, 2026 • BaaS program fee growth ◦ an increase of $1.1 million in BaaS program income, or 10.3%, compared to the qua
Slide 6: Executive Summary - CCBX, Excluding Affected Partner
Executive Summary - CCBX, Excluding Affected Partner Excluding the partner with credit expenses this quarter the core CCBX business delivered strong year-over-year growth, with portfolio balances increasing 46% across a diversified mix of consumer and small business lending products spanning both se
Slide 7: Portfolio Strength - CCBX, Excluding Affected Partner
Portfolio Strength - CCBX, Excluding Affected Partner Balances up Year over Year Delinquencies Improving | Credit Losses Down (in billions) $1.70 $1.75 15.00% 10.84% 9.33% 9.26% $1.50 10.00% 8.59% 8.73% $1.38 $1.29 $1.31 $1.25 $1.16 5.00% 2.99% 3.38% 3.53% 3.22% 2.85% 2.56% 2.20% 2.23% 2.44% 2.26% $
Slide 8: Ongoing Counterparty Oversight
Ongoing Counterparty Oversight • Comprehensive Counterparty Risk Assessments: Partners are evaluated on a regular cadence across multiple factors, including, but not limited to, financial strength, liquidity, cash runway, portfolio performance, operational execution, and overall credit risk. • Expos
Slide 9: Advancing Future Value
Advancing Future Value • Eight existing partner programs expanding to include new products such as lines of credit, deposit programs, asset backed credit cards, credit cards and other lending products • Growth in CCBX partners and products drove an increase of $348.9 million, or 9.0%, in loans recei
Slide 10: Advancing Technology Enabled Growth
Advancing Technology Enabled Growth 2026 Technology Priorities Remain On Track With Sharpened Focus on Partner Experience • Digital payment rails: Continued build-out of digital payment rails and asset infrastructure, extending our reach into fast-growing payment ecosystems to sustain fee-based reve
Slide 11: Second Quarter 2026 Financial Summary
Second Quarter 2026 Financial Summary • Loss per share of $(2.76), compared to earnings per share of $0.78 LQ, and $0.71 PYQ impacted primarily by one partner EPS relationship, for which an individual assessment resulted in a valuation adjustment to the related credit enhancement asset and a higher
Slide 12: Second Quarter 2026 Financial Summary
Second Quarter 2026 Financial Summary • Total loans, net of deferred fees, increased $348.9 million, or 9.0%, to $4.21 billion as of June 30, 2026, largely due to LOANS growth in CCBX partner loans • We continue to focus on higher quality CCBX loans • CCBX loans sales of $4.56 billion, compared to $
Slide 13: Second Quarter 2026 GAAP Results
Second Quarter 2026 GAAP Results (Dollars in thousands, except per share data) 2Q 2026 1Q 2026 4Q 2025 3Q 2025 2Q 2025 Net interest income $ 89,367 $ 83,357 $ 79,365 $ 77,901 $ 76,737 Total noninterest income 88,707 66,077 58,661 66,777 42,693 Total revenue 178,074 149,434 138,026 144,678 119,430 Pr
Slide 14: Solid Consolidated Balance Sheet
Solid Consolidated Balance Sheet CAPITAL AND LIQUIDITY RATIOS As of June 30, 2026 Cash Reserves (in millions) Company $2,500.0 Tier 1 leverage capital 9.1 % Common equity Tier 1 risk-based 10.9 % $1,924.0 Tier 1 risk-based capital 10.9 % $2,000.0 Total risk-based capital 13.3 % Bank Tier 1 leverage
Slide 15: Balance Sheet Positioning
Balance Sheet Positioning LOAN REPRICING LIABILITY REPRICING 61% 64% 69% 69% 73% 44% Three months or less Three months or less June 30, 2025 March 31, 2026 June 30, 2026 June 30, 2025 March 31, 2026 June 30, 2026 Bank is well positioned for rate changes Loan Strategy: • 64% of our loans reprice with
Slide 16: Long-term Strategic Verticals
Long-term Strategic Verticals The Community Bank "CCB" Banking as a Service "CCBX" • Best-in-class community bank that offers lending and deposit products to • Provides Banking as a Service (BaaS) that allows our digital financial service commercial customers partners to offer their customers bankin
Slide 17: Segment Updates: CCBX & Community Bank
SEGMENT UPDATES: CCBX & COMMUNITY BANK
Slide 18: CCBX Partner Activity
CCBX Partner Activity Business Overview CCBX Partner Activity 30 30 CCBX provides banking as a service (BaaS) that enables our digital financial services 29 partners to offer their customers banking services 3 3 5 22 active partners, five more currently in the testing, implementation or signed LOI s
Slide 19: Banking as a Service - BaaS Partners
Banking as a Service - "BaaS" Partners Note: Data as of and for the quarter ended June 30, 2026, unless otherwise indicated. (1) Acquired GreenFi assets during the quarter ended December 31, 2025. (2) Our partner is a subsidiary of a parent entity with broker-dealer subsidiaries. (3) Correspondent b
Slide 20: CCBX Revenue Growth
CCBX Revenue Growth Revenue Growth BaaS Program Fee Income • BaaS Fees include $75.0 million in credit enhancement revenue and fraud enhancement As of and for the three month period indicated revenue for the three months ended June 30, 2026, compared to $53.8 million for the three (Dollars in thousa
Slide 21: Growth in CCBX Activity Based Income
Growth in CCBX Activity Based Income CCBX TRANSACTION AND INTERCHANGE INCOME (Dollars in thousands) $8,000 er ar quart o v er prior ye rowth $6,836 $7,000 48.4% g $6,000 $5,873 $5,109 $4,878 $4,924 $5,000 $504(1) $4,605 $4,000 $3,000 $2,000 $1,000 $— 2Q 2025 3Q 2025 4Q 2025 1Q 2026 2Q 2026 Transacti
Slide 22: CCBX Loans and Deposits
CCBX Loans and Deposits CCBX Loans CCBX Deposits (Dollars in billions) (Dollars in billions) $2.23 $3.47 $1.88 $3.29 $1.68 $2.36 June 30, 2025 March 31, 2026 June 30, 2026 June 30, 2025 March 31, 2026 June 30, 2026 Commercial and industrial loans Residential real estate secured credit cards Other de
Slide 23: Community Bank Loans and Deposits
Community Bank Loans and Deposits Community Bank Loans Community Bank Deposits (Dollars in billions) (Dollars in billions) $1.87 $1.98 $1.99 $1.55 $1.57 $1.57 June 30, 2025 March 31, 2026 June 30, 2026 Other consumer loans June 30, 2025 March 31, 2026 June 30, 2026 Commercial real estate loans Resid
Slide 24: Segment Overview – Community Bank & CCBX
Segment Overview – Community Bank & CCBX (for the three months ended) Average 20.00% Average Cost 5.00% 3.96% Yield - Loans 16.22% 15.01% 14.56% of Deposits 3.17% 3.19% Receivable 15.00% 11.11% 10.76% 10.74% (annualized) (annualized) 10.00% 6.53% 6.58% 6.57% 2.50% 3.10% 2.56% 2.57% 5.00% 1.77% 1.46%
Slide 25: Segment Overview – Credit Quality
Segment Overview – Credit Quality • CCBX partner agreements generally allocate responsibility for net charge-offs on CCBX loans and overdraft-related deposit losses to the partner through contractual credit enhancement arrangements(1) Allowance for Loan Losses to Total Loans ◦ Contractual credit enh
Slide 26: Appendix
Appendix © COASTAL
Slide 27: Coastal Community Bank Overview
Coastal Community Bank Overview DEDICATION TO COMMUNITY BANKING BRANCH FOOTPRINT • Established in 1997 with a focus on serving small- to medium-sized businesses within the Puget Sound region Mount Vernon • Offers traditional lending and deposit products to commercial and retail customers as well as
Slide 28: Coastal Community Bank Overview
Coastal Community Bank Overview Notable Regional Employers Accolades and Recognitions Everett Herald Readers Choice 2024 - “Best Bank" "Best Place to Work" "3rd Place Mortgage" Stanwood & Camano News 2023 - “Best Bank" "Best Mortgage" “Best Bank” "Best Place to Work" 2013 - 2026 "Corporate Citizensh
Slide 29: Loan Composition
Consolidated Loan Composition Loan Composition CRE - Non- Owner Credit Cards Investor Real Occupied 17.9% Estate Consolidated Commercial & Industrial (“C&I”) Portfolio 27.0% 13.1% • $466.6 million total C&I loans Multifamily CRE - Owner Occupied Owner ◦ $204.8 million in capital call lines 8.6% 9.6%
Slide 30: CCBX Loan Portfolio Statistics & Lending Approach
CCBX Loan Portfolio Statistics & Lending Approach June 30, 2026 Percent of Cash Reserve/ CCBX Loans Available Maximum Number of Average Pledge Account (dollars in thousands; unaudited) Type of Lending Balance Receivable Commitments (1) Portfolio Size Accounts (2) Loans Size Amount Commercial and ind
Slide 31: Deposit Composition
Deposit Composition Deposit Composition Core Savings Deposits 10.5% 99.8% Time deposits Emphasis on core deposits has helped generate an < $100K attractive funding mix Interest bearing 0.1% demand and money Time deposits • Core deposits are all deposits excluding time deposits and brokered market >
Slide 32: Deposit Costs
Deposit Costs • Cost of total deposits was 2.57% for the quarter ended June 30, 2026, compared to 2.56% for the quarter ended March 31, 2026, and 3.10% for the quarter ended June 30, 2025 (annualized) 4.00% 3.00% 3.10% 2.56% 2.57% 2.00% 1.00% —% June 30, 2025 March 31, 2026 June 30, 2026 Consolidate
Slide 33: Loan and Deposit Growth
Loan and Deposit Growth Total Loans Receivable Total Deposits (Dollars in billions) (Dollars in billions) $5.04 $4.86 $4.21 $3.86 $3.54 $3.91 $2.23 $1.88 $3.47 $3.29 $1.68 $2.36 $1.86 $1.98 $1.98 $1.55 $1.57 $1.57 June 30, 2025 March 31, 2026 June 30, 2026 June 30, 2025 March 31, 2026 June 30, 2026
Slide 34: Asset Quality
Asset Quality • As of June 30, 2026, $30.5 million in CCBX NPAs / Total Assets NPLs / Loans Receivable nonaccrual loans are included in NPAs and NPLs 1.78% 1.80% 1.71% 1.72% 1.79% ◦ $24.6 million of these NPAs/NPLs are less 1.52% than 90 days past due as of June 30, 2026 1.44% 1.35% 1.36% 1.38% 1.26
Slide 35: Non-GAAP Reconciliation
Non-GAAP Reconciliation CCBX Net Interest Margin, Net of BaaS Loan Expense The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance
Slide 36: Non-GAAP Reconciliation
Non-GAAP Reconciliation CCBX Net BaaS Loan Income Interest Margin - CCBX only CCBX As of and for the Three Months Ended June 30, March 31, June 30, (dollars in thousands; unaudited) 2026 2026 2025 CCBX loan income net of BaaS loan expense divided by average CCBX loans: CCBX loan yield (GAAP)(1) 14.5
Slide 37: Non-GAAP Reconciliation
Non-GAAP Reconciliation CCBX gross loans receivable, past due loans, delinquencies as a percent of CCBX loans receivable, and CCBX net charge-offs as a percent of average CCBX loans, excluding the partner with credit expenses The Company uses certain non-GAAP financial measures to provide meaningful
Slide 38: Non-GAAP Reconciliation
Non-GAAP Reconciliation CCBX Net BaaS Loan Income Interest Margin - CCBX only As of and for the Three Months Ended June 30, March 31, December 31, September 30, June 30, (dollars in thousands, unaudited) 2026 2026 2025 2025 2025 CCBX gross loans receivable, excluding the partner with credit expenses
Slide 39: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net Interest Margin, net of BaaS Loan Expense - CONSOLIDATED The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial p
Slide 40: Non-GAAP Reconciliation
Non-GAAP Reconciliation PPNR & Core Expense The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. However, these non-GAAP finan
Slide 41: Non-GAAP Reconciliation
Non-GAAP Reconciliation PPNR & Core Expense As of and for the Three Months Ended June 30, March 31, June 30, (dollars in thousands, unaudited) 2026 2026 2025 Noninterest Expense excluding Baas loan expense, BaaS fraud expense and reimbursement of expenses -BaaS ("Core expense") Total noninterest exp
Slide 42: Non-GAAP Reconciliation
Non-GAAP Reconciliation Core Net Revenue The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. However, these non-GAAP financia
Slide 43: Non-GAAP Reconciliation
Non-GAAP Reconciliation Tangible Book Value The Company uses certain non-GAAP financial measures to As of provide meaningful supplemental information regarding the June 30, (dollars in thousands, except per share information, unaudited) 2026 Company’s operational performance and to enhance investors