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Coastal Financial Corporation (CCB+0.14%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing indicates that Coastal Financial Corporation reported total assets of $4.12 billion, an increase from $3.75 billion at the end of the previous year. The company also reported total loans receivable of $3.49 billion and total deposits of $3.59 billion.
Net income for the year was $45.2 million, or $3.26 per diluted share, compared to $44.6 million, or $3.27 per diluted share, for the previous year. The increase in net income was attributed to higher net interest income and noninterest income, partially offset by increased provision for credit losses and noninterest expenses.
The company experienced a significant increase in its CCBX segment, which provides banking as a service (BaaS) to broker-dealer and digital financial service partners. CCBX loans grew by $412.2 million, or 34.6%, and CCBX deposits increased by $201.3 million, or 10.8%.
Coastal Financial Corporation's net interest margin was 7.18%, up from 6.88% in the previous year. The increase was largely due to higher yields on loans and interest-earning deposits.
The provision for credit losses was $275.7 million, reflecting growth in CCBX loans and changes in the loan mix. Net charge-offs totaled $216.1 million, primarily from CCBX loans, which are largely covered by credit enhancements from partners.
Noninterest income increased by $104.1 million to $308.2 million, driven by growth in BaaS program income and credit enhancements related to the allowance for credit losses.
Noninterest expense rose to $246.3 million, with BaaS loan and fraud expenses accounting for a significant portion of the increase. Salaries and employee benefits also grew due to hiring for the CCBX segment.
The company identified material weaknesses in its internal control over financial reporting and is implementing measures to address these issues. The weaknesses were related to the control, design, and implementation deficiencies concerning third-party reports.
Coastal Financial Corporation continues to focus on expanding its CCBX segment and managing its loan portfolio to optimize credit quality and growth. The company aims to strengthen its balance sheet through strategic loan sales and partnerships.
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 annual 10-K report dated March 17, 2025. To report an error, please email earnings@qz.com.