Coastal Financial Corporation (CCB)

Coastal Financial Corp.'s stock has been impacted by several events in the past six months. The company reported Q2 CY2025 earnings miss, leading to a fall in share price. Brandon Soto was appointed as the new CFO, following insider selling by the outgoing CFO. The company was dropped from the Russell Small Cap Comp Value Index and the Russell 2500 Value Index. Seven research firms issued a consensus "Buy" recommendation for CCB. The company appointed new members to its executive leadership team. Coastal Financial reported Q4 2024 results and completed a capital raise. The company restated its full-year 2023 and three quarterly reports for 2024 due to a material weakness in financial reporting. CCB's stock showed strong technical indicators and regional bank stocks advanced after a softer inflation report.

Coastal Financial Corp. experiences demand seasonality in its traditional community banking products, with loan demand typically low in January and February, increasing in March, and peaking in August or September. The BaaS segment experiences continuous growth driven by the increasing need for embedded finance and digital banking services.

Coastal Financial Corporation (CCB) is a bank holding company based in Everett, Washington, operating through its subsidiary, Coastal Community Bank. It operates in two segments: the Community Bank, offering banking services to small and medium-sized businesses and individuals, and CCBX, specializing in Banking-as-a-Service (BaaS). The Community Bank provides deposit and loan products, while CCBX enables broker-dealers and digital financial service partners to offer banking services.

Coastal Community Bank operates 14 full-service branches in the Puget Sound area, Washington, and is the largest community bank by deposit market share in Snohomish County. The CCBX segment extends its reach nationwide through partnerships with fintech companies.

Coastal Financial Corp.'s reputation was affected by the restatement of earnings due to an accounting issue, described as a "public relations black eye." The company emphasizes its commitment to maintaining a strong reputation in both its community banking and BaaS sectors. Coastal Community Bank has received positive feedback from customers.

Institutional investors own 76.47% of Coastal Financial Corp.'s stock, with major holders including T. Rowe Price, BlackRock, and Vanguard Group. Insider ownership accounts for 32.25% of the company's equity, with key individual insiders being Steven D. Hovde, Eric M. Sprink, Andrew P. Skotdal, and Jack T. Thompson. Recent insider transactions have shown more selling than buying.