Coastal Financial Corporation has released its fourth-quarter 2025 financial results, showcasing significant changes in key metrics compared to the previous quarter.
Total loans receivable increased to $3.75 billion, reflecting a 1.2% growth from the previous quarter. Additionally, total deposits reached $4.14 billion, signaling a 4.3% rise over the prior quarter. Core net revenue experienced a notable increase of 6.8% from the quarter ended September 30, 2025.
However, total revenue decreased by 4.6% from the previous quarter, primarily driven by lower credit enhancement revenue associated with lower provision for credit losses. Despite the decrease in total revenue, the company saw a growth in core net revenue, indicating a potential shift in revenue composition.
The company sold $2.98 billion of loans during the quarter, with $2.26 billion of this activity attributed to accounts that were previously sold credit card receivables. Moreover, Coastal Financial Corporation swept $843.6 million of deposits off the balance sheet for FDIC insurance and liquidity purposes, generating $540,000 in noninterest income during the quarter.
The acquisition of the GreenFi climate-focused brand also marked a strategic move for Coastal Financial Corporation, enhancing the company's control over the brand as it evaluates strategic options and continues its existing partnership with Mission Financial Partners.
From a financial standpoint, the company reported diluted earnings per share (EPS) of $0.82, compared to $0.88 in the previous quarter. Furthermore, the return on assets (ROA) for the quarter ended December 31, 2025, stood at 1.09%, a decrease from 1.19% in the previous quarter and 1.30% in the prior year's quarter.
Coastal Financial Corporation's net income of $12.6 million was down 7.0% from the previous quarter, while core pre-tax, pre-provision net revenue (PPNR) was $17.9 million, representing a 6.3% decrease compared to the prior quarter and a 5.5% increase versus the prior year's quarter.
Additionally, the company's balance sheet showed growth, with book value per share increasing by 3.1% from the previous quarter and 10.4% versus the prior year's quarter. Tangible book value per share also grew by 2.2% from the previous quarter and 9.4% versus the prior year's quarter to $32.13 per share.
In terms of capital and liquidity ratios, Coastal Financial Corporation demonstrated solid financial positioning, with notable cash and borrowing capacity equivalent to 34.5% of total deposits at December 31, 2025.
As a result of these announcements, the company's shares have moved -0.57% on the market, and are now trading at a price of $113.04. For the full picture, make sure to review COASTAL FINANCIAL CORP's 8-K report.
