Coastal Financial Corporation recently released its fourth-quarter 2024 financial results, revealing a mix of positive and negative changes compared to the previous quarter and the same period in 2023.
The company completed a $98.0 million capital equity raise priced at $71.00 per share, contributing to a 4.8% growth in core net revenue from the quarter ended September 30, 2024, although revenue decreased by 5.9% compared to the previous quarter due to lower credit enhancement revenue and interest income on loans, offset by a decrease in BaaS loan expense.
In terms of financial performance, the company reported a diluted EPS of $0.94, slightly lower than the previous quarter but 42.2% higher compared to the same period in 2023. Return on assets (ROA) stood at 1.30% in the quarter ended December 31, 2024, a slight decrease from the previous quarter's 1.34% and an increase from 0.97% in the same period in 2023.
The financial summary also highlights net income, which decreased by 0.7% compared to the previous quarter but surged by 48.3% versus the same period in 2023. Total revenue decreased by 5.9% compared to the previous quarter, while total loans, net of deferred fees, increased by $67.7 million, or 2.0%, to $3.49 billion as of December 31, 2024.
The company's balance sheet positioning is notable, with a combined $1.14 billion in cash and immediate borrowing capacity, representing 30.5% of total deposits at December 31, 2024. Additionally, the company's liquidity ratios and capital reserves indicate a solid financial position.
Looking at the company's long-term strategic verticals, the Community Bank "CCB" and Banking as a Service (BaaS) "CCBX," it appears that both segments are contributing to the company's overall financial performance, with the BaaS program fee income growing by 56.9% year over year.
As a result of these announcements, the company's shares have moved 2.2% on the market, and are now trading at a price of $86.0. If you want to know more, read the company's complete 8-K report here.
