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Coastal Financial Corporation (CCB-1.30%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net interest income to $72.2 million from $62.2 million in the same quarter the previous year. This increase is attributed to growth in higher yielding loans, primarily from the CCBX segment.
Total loans, net of deferred fees, increased by $92.4 million during the three months ended September 30, 2024, reaching $3.42 billion. Community bank loans decreased by $14.5 million, while CCBX loans increased by $106.9 million.
Deposits increased by $83.8 million, or 2.4%, to $3.63 billion as of September 30, 2024. The company's liquidity position is supported by $484.0 million in cash on the balance sheet and borrowing capacity of $656.3 million.
Net income for the quarter was $13.5 million, or $0.97 per diluted share, compared to $10.3 million, or $0.75 per diluted share, in the same quarter the previous year. The increase is primarily due to higher interest income and BaaS program income.
Total noninterest income increased to $80.1 million from $34.6 million in the previous year, driven by a significant rise in BaaS indemnification income.
Noninterest expense for the quarter was $65.6 million, up from $56.5 million in the previous year, mainly due to an increase in BaaS loan expense.
The provision for credit losses increased to $71.6 million from $27.2 million in the previous year, largely related to CCBX partner loans.
Net charge-offs for the quarter were $49.2 million, compared to $36.8 million in the previous year, reflecting the higher level of expected losses in CCBX loans.
Coastal Financial Corporation continues to focus on expanding its CCBX segment, with 22 partnerships as of September 30, 2024. The company is refining its partnership criteria and focusing on larger, more established partners.
The company anticipates changes in regulatory requirements related to brokered deposits and third-party deposit arrangements, which may affect its operations and compliance costs.
Coastal Financial Corporation's total assets as of September 30, 2024, were $4.07 billion, with total shareholders’ equity of $331.9 million.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Coastal Financial Corporation quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.