Coastal Financial Corporation (NASDAQ: CCB) has announced its unaudited financial results for the second quarter of 2025, revealing a net income of $11.0 million, or $0.71 per diluted common share. This represents an improvement from the previous quarter, which saw a net income of $9.7 million, or $0.63 per diluted common share.
The company's total noninterest expense of $72.8 million was up $843,000, or 1.2%, compared to the previous quarter, driven mainly by higher data processing and software costs, partially offset by lower legal and professional expenses.
Average deposits increased to $3.93 billion, up $221.6 million, or 6.0%, over the previous quarter, driven primarily by growth in CCBX partner programs and the addition of a new deposit partner.
As of June 30, 2025, Coastal Financial Corporation had 29 relationships in its CCBX segment, with two partners in testing, two in implementation/onboarding, and five signed letters of intent. The company continues to refine its criteria for CCBX partnerships, exploring relationships with larger and more established partners, as well as medium and smaller-sized partners that align with its approach and terms.
The company saw an increase of $512,000, or 8.2%, in BaaS program fee income, excluding nonrecurring revenue, for the three months ended June 30, 2025, compared to the previous quarter. This growth is attributed to transaction and interchange income, and the company anticipates this trend to continue in future periods as partner activities expand and grow.
Coastal Financial Corporation also plans to continue selling loans as part of its strategy to balance partner and lending limits, and manage the loan portfolio and credit quality. The company retains a portion of the fee income for its role in processing transactions on sold credit card loans, providing an ongoing revenue source with no on-balance sheet risk or capital requirement.
The company's CEO, Eric Sprink, shared his outlook for the latter half of 2025, expressing expectations of additional new partner engagements and continued investments in technology and risk management infrastructure to support growth in the BaaS sector.
As a result of these announcements, the company's shares have moved -0.84% on the market, and are now trading at a price of $101.46. If you want to know more, read the company's complete 8-K report here.
