Coastal Financial Corporation (CCB) | Investment Case

1. Company Snapshot

1.a. Company Description

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small to medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington.It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts.The company offers commercial and industrial loans, including term loans, small business administration loans, commercial lines of credit, working capital loans, equipment financing, borrowing base loans, and other loan products; owner-occupied and non-owner-occupied real estate loans, and multi-family residential loans; construction and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as overdraft protection.

It also provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services, as well as debit cards.In addition, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as banking as a service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their clients banking services.It operates 14 full-service banking locations.

Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.

Show Full description

1.b. Last Insights on CCB

Coastal Financial Corporation's recent performance was driven by its robust Q2 2025 results, with net income of $11.0 million, or $0.71 per diluted common share. The company's banking as a service (BaaS) segment, CCBX, continues to fuel growth. Recent executive team expansions, with four new leadership appointments, are expected to bolster digital banking and community-focused initiatives. These strategic moves position the company for sustained growth. (Rating: Not available). No share buyback information available.

1.c. Company Highlights

Last Price	112.31
Change Percentage	1.38%
Open	111.14
Previous Close	110.78
Market Cap ( Millions)	1698
Volume	55771
Year High	119.22
Year Low	73.8
M A 50	107.16
M A 200	97.52

FCF Yield	15.07%
Dividend Yield	0.00%
ROE	10.46%
Debt / Equity	11.14%
Net Debt / EBIDTA	27.35%
Price To Book	3.57
Price Earnings Ratio	35.51
Price To FCF	6.64
Price To sales	3.42
EV / EBITDA	26.02

2. Transcript Summary

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3. NewsRoom

Coastal Financial Corporation (NASDAQ:CCB) Receives $116.20 Consensus Target Price from Analysts

Nov -17

Source: defenseworld.net

Coastal Financial Corporation (CCB) Q3 Earnings Lag Estimates

Oct -29

Source: zacks.com

Earnings Preview: Coastal Financial Corporation (CCB) Q3 Earnings Expected to Decline

Oct -20

Source: zacks.com

Coastal Names Seasoned Fintech Leader Brandon Soto as New Chief Financial Officer

Sep -22

Source: globenewswire.com

Coastal Expands Executive Team with Key Leadership Appointments

Aug -13

Source: globenewswire.com

Coastal Financial Corporation (CCB) Q2 Earnings and Revenues Miss Estimates

Jul -29

Source: zacks.com

Coastal Financial Corporation Announces Second Quarter 2025 Results

Jul -29

Source: globenewswire.com

Coastal Financial Corporation (CCB) Q1 Earnings and Revenues Lag Estimates

Apr -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.70%)

6. Segments

CCBX

Expected Growth: 10.02%

CCBX's 10.02% growth is driven by Coastal Financial Corporation's strategic expansion into underserved markets, increased adoption of digital banking platforms, and a strong focus on commercial lending. Additionally, the corporation's cost-cutting initiatives and improved operational efficiency have contributed to its growth momentum.

Community Bank

Expected Growth: 8.4%

Coastal Financial Corporation's Community Bank segment growth of 8.4% is driven by strategic expansion into underserved markets, increased adoption of digital banking platforms, and a focus on small business lending. Additionally, the bank's commitment to community development and customer-centric approach have contributed to its growth momentum.

Treasury & Administration

Expected Growth: 9.27%

Coastal Financial Corporation's Treasury & Administration segment growth of 9.27% is driven by effective cost management, improved operational efficiency, and strategic investments in digital transformation. Additionally, the segment benefits from a low-interest-rate environment, allowing for optimized funding costs and increased liquidity. These factors have enabled the segment to achieve sustainable growth and enhance shareholder value.

7. Detailed Products

Mortgage Loans

Coastal Financial Corporation offers a range of mortgage loan options for homebuyers, including fixed-rate and adjustable-rate loans, government-backed loans, and jumbo loans.

Home Equity Loans

Coastal Financial Corporation's home equity loans allow homeowners to tap into the equity in their home to fund home improvements, consolidate debt, or cover major expenses.

Personal Banking

Coastal Financial Corporation's personal banking services include checking and savings accounts, credit cards, and online banking, providing customers with convenient and secure financial management tools.

Commercial Lending

Coastal Financial Corporation's commercial lending services provide financing solutions for businesses, including commercial real estate loans, lines of credit, and equipment financing.

Treasury Management

Coastal Financial Corporation's treasury management services help businesses manage their cash flow, optimize their financial performance, and mitigate risk.

Wealth Management

Coastal Financial Corporation's wealth management services provide investment advice, portfolio management, and retirement planning to help individuals and families achieve their long-term financial goals.

8. Coastal Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Coastal Financial Corporation is medium due to the presence of alternative financial institutions and online banking services.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple financial institutions and online banking services, giving customers the power to switch between providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's strong financial position and ability to negotiate with suppliers.

Threat Of New Entrants

The threat of new entrants is medium due to the regulatory barriers and capital requirements for entering the financial services industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple financial institutions and online banking services, leading to intense competition for customers.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	14.17%
Debt Cost	9.74%
Equity Weight	85.83%
Equity Cost	9.74%
WACC	9.74%
Leverage	16.51%

11. Quality Control: Coastal Financial Corporation passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Capital City Bank

A-Score: 7.1/10

Value: 6.4

Growth: 5.9

Quality: 7.8

Yield: 6.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

Franklin Financial

A-Score: 7.0/10

Value: 6.3

Growth: 4.9

Quality: 5.8

Yield: 7.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

WaFed

A-Score: 6.0/10

Value: 5.9

Growth: 6.8

Quality: 5.6

Yield: 7.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

Southern Missouri Bancorp

A-Score: 5.9/10

Value: 7.6

Growth: 6.7

Quality: 7.0

Yield: 4.0

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

Coastal Financial

A-Score: 5.7/10

Value: 3.2

Growth: 9.6

Quality: 6.6

Yield: 0.0

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

National Bankshares

A-Score: 5.6/10

Value: 5.5

Growth: 3.3

Quality: 5.0

Yield: 8.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-6.81%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.74%

Coastal Financial Corporation - US19046P2092

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CCB

1.c. Company Highlights

Higher Growth

Lower Yield

Average Quality

Earnings Miss

Revenues Beats

Earnings Beats

Revenues Miss

Strong Momentum

Expensive

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.70%)

6. Segments

CCBX

Expected Growth: 10.02%

Community Bank

Expected Growth: 8.4%

Treasury & Administration

Expected Growth: 9.27%

7. Detailed Products

Mortgage Loans

Home Equity Loans

Personal Banking

Commercial Lending

Treasury Management

Wealth Management

8. Coastal Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Coastal Financial Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

112.21$

Current Price

112.21$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA