Coastal Financial Corporation · NASDAQ:CCB
Coastal Financial — Q3 2026 Earnings Presentation
40 slides from Coastal Financial's earnings presentation, Oct 29, 2026
Slide 1: Investor Presentation Third Quarter 2026
Investor Presentation Third Quarter 2026
Slide 2: Legal Information and Disclaimer
Legal Information and Disclaimer Important note regarding forward-looking statements: Statements made in this presentation (or conveyed orally) which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statem
Slide 3: Third Quarter 2026 Highlights
Third Quarter 2026 Highlights • Total assets decreased $179.7 million, or 3.3%, to $5.28 billion at September 30, 2026, compared to $5.46 billion at June 30, 2026 • Total loans receivable of $4.19 billion, a decrease of $22.7 million, or 0.5%, from the prior quarter, offset by a $32.5 million increa
Slide 4: Third Quarter 2026 Highlights - continued
Third Quarter 2026 Highlights - continued • Net interest margin decreased 0.68% to 6.59%, the decrease was primarily driven by a decrease in average loan yield driven by a change in loan mix • Net interest margin, net of BaaS loan expense(1) was relatively stable decreasing 0.07% to 3.93%, a signifi
Slide 5: Strong Operating Performance
Strong Operating Performance • BaaS program fee growth ◦ An increase of $2.1 million in BaaS program income, or 17.6%, compared to the quarter ended June 30, 2026, • Noninterest Expense Declined Significantly Quarter Over Quarter ◦ Total noninterest expense decreased $56.3 million to $84.8 million i
Slide 6: Update On Partner Credit From Second Quarter
Update On Partner Credit From Second Quarter • Partner credit performance stabilizing: ◦ Following the significant charges recorded in the second quarter related to The Partner, of the incremental provision recorded for The Partner in the current quarter, $3.1 million was not offset in credit enhanc
Slide 7: Ongoing Counterparty Oversight
Ongoing Counterparty Oversight • Comprehensive Counterparty Risk Assessments: Partners are evaluated on a regular cadence across multiple factors, including, but not limited to, financial strength, liquidity, cash runway, portfolio performance, operational execution and overall credit risk. • Exposu
Slide 8: Advancing Future Value
Advancing Future Value • Growing fee income engine, with no balance sheet cost: Off-balance sheet credit card accounts reached 1.3 million at September 30, 2026, growing 51% quarter over quarter and 236% year over year, generating recurring fee income without consuming capital • Strong debit card gr
Slide 9: Expense Discipline and Stronger Operating Leverage
Expense Discipline and Stronger Operating Leverage • Management is actively managing core operating expenses and has launched targeted initiatives to lower noninterest expense, with further progress expected as technology modernization matures and operational efficiencies materialize • Efforts inclu
Slide 10: Third Quarter 2026 Financial Summary
Third Quarter 2026 Financial Summary • Earnings per share of $0.89, compared to loss per share of $(2.76) LQ, and $0.88 PYQ; the loss LQ was primarily impacted EPS by The Partner relationship, for which an individual assessment resulted in a valuation adjustment to the related credit enhancement ass
Slide 11: Third Quarter 2026 Financial Summary
Third Quarter 2026 Financial Summary • Total loans, net of deferred fees, decreased $22.7 million, or 0.5%, to $4.19 billion as of September 30, 2026, largely due LOANS to an increase in loans sold • We continue to focus on higher quality CCBX loans • CCBX loans sales of $5.99 billion, compared to $
Slide 12: Third Quarter 2026 GAAP Results
Third Quarter 2026 GAAP Results (Dollars in thousands, except per share data) 3Q 2026 2Q 2026 1Q 2026 4Q 2025 3Q 2025 Net interest income $ 88,286 $ 89,367 $ 83,357 $ 79,365 $ 77,901 Total noninterest income 61,040 88,707 66,077 58,661 66,777 Total revenue 149,326 178,074 149,434 138,026 144,678 Pro
Slide 13: Solid Consolidated Balance Sheet
Solid Consolidated Balance Sheet CAPITAL AND LIQUIDITY RATIOS As of September 30, 2026 Cash Reserves (in millions) Company $1,750.0 $1,631.0 Tier 1 leverage capital 8.8 % Common equity Tier 1 risk-based 11.5 % $1,500.0 Tier 1 risk-based capital 11.6 % Total risk-based capital 13.8 % Bank $1,250.0 $8
Slide 14: Balance Sheet Positioning
Balance Sheet Positioning LOAN REPRICING LIABILITIES REPRICING 64% 64% 73% 70% 68% 47% Three months or less Three months or less September 30, 2025 June 30, 2026 September 30, 2026 September 30, 2025 June 30, 2026 September 30, 2026 Bank is well positioned for rate changes Loan Strategy: • 64% of ou
Slide 15: Long-term Strategic Verticals
Long-term Strategic Verticals The Community Bank "CCB" Banking as a Service "CCBX" • Best-in-class community bank that offers lending and deposit products to • Provides Banking as a Service (BaaS) that allows our digital financial service commercial customers partners to offer their customers bankin
Slide 16: Segment Updates: CCBX & Community Bank
SEGMENT UPDATES: CCBX & COMMUNITY BANK
Slide 17: CCBX Partner Activity
CCBX Partner Activity Business Overview CCBX Partner Activity CCBX provides banking as a service (BaaS) that enables our digital financial services 31 30 partners to offer their customers banking services 29 4 1 3 21 active partners, six more currently in the testing, implementation or signed LOI st
Slide 18: Banking as a Service - BaaS Partners
Banking as a Service - "BaaS" Partners Note: Data as of and for the quarter ended September 30, 2026, unless otherwise indicated. (1) Acquired GreenFi assets during the quarter ended December 31, 2025. (2) Our partner is a subsidiary of a parent entity with broker-dealer subsidiaries. (3) Correspond
Slide 19: CCBX Revenue Growth
CCBX Revenue Growth Revenue Growth BaaS Program Fee Income • BaaS Program Fee Income includes servicing and other BaaS fees, transaction and interchange As of and for the three month period indicated fees, sweep fee income and reimbursement of expenses and excludes BaaS credit (Dollars in thousands)
Slide 20: Growth in CCBX Activity Based Income
Growth in CCBX Activity Based Income CCBX TRANSACTION AND INTERCHANGE INCOME (Dollars in thousands) $10,000 r r quarte $8,026 ver prior yea $8,000 o rowth 64.5% g $6,836 $5,873 $6,000 $4,878 $4,924 $4,000 $2,000 $— 3Q 2025 4Q 2025 1Q 2026 2Q 2026 3Q 2026 Transaction and Interchange income 20
Slide 21: CCBX Loans and Deposits
CCBX Loans and Deposits CCBX Loans CCBX Deposits (Dollars in billions) (Dollars in billions) $2.23 $2.21 $1.80 $3.29 $3.04 $2.37 September 30, 2025 June 30, 2026 September 30, 2026 Commercial and industrial loans Residential real estate secured credit cards September 30, 2025 June 30, 2026 September
Slide 22: Community Bank Loans and Deposits
Community Bank Loans and Deposits Community Bank Loans Community Bank Deposits (Dollars in billions) (Dollars in billions) $1.60 $1.57 $1.64 $1.91 $1.99 $1.98 September 30, 2025 June 30, 2026 September 30, 2026 Other consumer loans September 30, 2025 June 30, 2026 September 30, 2026 Commercial real
Slide 23: Segment Overview – Community Bank & CCBX
Segment Overview – Community Bank & CCBX (for the three months ended) Average 20.00% Average Cost 5.00% Yield - Loans 15.65% 3.90% 14.56% of Deposits 3.19% 3.17% Receivable 15.00% 12.73% (annualized) 10.95% 10.74% (annualized) 10.03% 10.00% 6.51% 6.57% 6.66% 2.50% 3.04% 2.57% 2.61% 5.00% 1.77% 1.46%
Slide 24: Segment Overview – Credit Quality
Segment Overview – Credit Quality • CCBX partner agreements generally allocate responsibility for net charge-offs on CCBX loans and overdraft-related deposit losses to such partner through contractual credit enhancement arrangements(1) Allowance for Loan Losses to Total Loans ◦ Contractual credit en
Slide 25: Appendix
Appendix © COASTAL
Slide 26: Coastal Community Bank Overview
Coastal Community Bank Overview DEDICATION TO COMMUNITY BANKING BRANCH FOOTPRINT • Established in 1997 with a focus on serving small- to medium-sized businesses within the Puget Sound region Mount Vernon • Offers traditional lending and deposit products to commercial and retail customers as well as
Slide 27: Coastal Community Bank Overview
Coastal Community Bank Overview Notable Regional Employers Accolades and Recognitions Seattle Times Stanwood & Camano News “Best in the PNW” “Best Bank” 2025-2026 2013 - 2026 "Fastest Growing Mid-Market "Corporate Philanthropist" Company in the Northwest" Puget Sound Business Puget Sound Business Jo
Slide 28: Loan Composition
Consolidated Loan Composition Loan Composition CRE - Non- Credit Cards Owner 13.2% Investor Real Estate Occupied Consolidated Commercial & Industrial (“C&I”) Portfolio 27.1% 13.0% CRE - Owner Occupied • $474.9 million total C&I loans Multifamily 9.7% 8.2% Owner ◦ $209.7 million in capital call lines
Slide 29: CCBX Loan Portfolio Statistics & Lending Approach
CCBX Loan Portfolio Statistics & Lending Approach September 30, 2026 Percent of Cash Reserve/ CCBX Loans Available Maximum Number of Average Pledge Account (dollars in thousands; unaudited) Type of Lending Balance Receivable Commitments (1) Portfolio Size Accounts (2) Loans Size Amount Commercial an
Slide 30: Deposit Composition
Deposit Composition Deposit Composition Core Savings Deposits 11.2% 99.8% Time deposits Emphasis on core deposits has helped generate an < $100K attractive funding mix Interest bearing 0.1% demand and money market Time deposits • Core deposits are all deposits excluding time deposits and brokered >
Slide 31: Deposit Costs
Deposit Costs • Cost of total deposits was 2.61% for the quarter ended September 30, 2026, compared to 2.57% for the quarter ended June 30, 2026, and 3.04% for the quarter ended September 30, 2025 (annualized) 4.00% 3.00% 3.04% 2.57% 2.61% 2.00% 1.00% —% September 30, 2025 June 30, 2026 September 30
Slide 32: Loan and Deposit Growth
Loan and Deposit Growth Total Loans Receivable Total Deposits (Dollars in billions) (Dollars in billions) $4.21 $4.19 $4.86 $4.68 $3.70 $3.97 $2.23 $2.21 $1.80 $3.29 $3.04 $2.37 $1.90 $1.98 $1.98 $1.60 $1.57 $1.64 September 30, 2025 June 30, 2026 September 30, 2026 September 30, 2025 June 30, 2026 S
Slide 33: Asset Quality
Asset Quality • Total nonperforming assets decreased 19.6% QoQ to $60.5 million, compared to $75.2 million NPAs / Total Assets NPLs / Loans Receivable as of June 30, 2026 • As of September 30, 2026, $23.3 million in CCBX 1.78% 1.80% 1.71% nonaccrual loans are included in NPAs and NPLs 1.61% 1.52% 1.
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation CCBX Net Interest Margin, Net of BaaS Loan Expense The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance
Slide 35: Non-GAAP Reconciliation
Non-GAAP Reconciliation CCBX Net BaaS Loan Income Interest Margin - CCBX only CCBX As of and for the Three Months Ended September 30, June 30, September 30, (dollars in thousands; unaudited) 2026 2026 2025 CCBX loan income net of BaaS loan expense divided by average CCBX loans: CCBX loan yield (GAAP
Slide 36: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net Interest Margin, net of BaaS Loan Expense - CONSOLIDATED The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial p
Slide 37: Non-GAAP Reconciliation
Non-GAAP Reconciliation Core Expense & PPNR The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. However, these non-GAAP finan
Slide 38: Non-GAAP Reconciliation
Non-GAAP Reconciliation Core Expense & PPNR As of and for the Three Months Ended September 30, June 30, September 30, (dollars in thousands, unaudited) 2026 2026 2025 Noninterest Expense excluding Baas loan expense, BaaS fraud expense and reimbursement of expenses -BaaS ("Core expense") Total nonint
Slide 39: Non-GAAP Reconciliation
Non-GAAP Reconciliation Core Net Revenue The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. However, these non-GAAP financia
Slide 40: Non-GAAP Reconciliation
Non-GAAP Reconciliation Tangible Book Value The Company uses certain non-GAAP financial measures to As of provide meaningful supplemental information regarding the September 30, (dollars in thousands, except per share information; unaudited) 2026 Company’s operational performance and to enhance inve