Banking services provider Coastal Financial (NASDAQ: CCB) announced better-than-expected revenue in Q1 CY2026, with sales up 34.4% year on year to $149.4 million. Its non-GAAP profit of $0.78 per share was 24.8% below analysts’ consensus estimates.
Is now the time to buy Coastal Financial? Find out by accessing our full research report, it’s free.
Coastal Financial (CCB) Q1 CY2026 Highlights:
- Net Interest Income: $83.36 million vs analyst estimates of $81.24 million (9.6% year-on-year growth, 2.6% beat)
- Net Interest Margin: 7% vs analyst estimates of 7.1% (5 basis point miss)
- Revenue: $149.4 million vs analyst estimates of $134.6 million (34.4% year-on-year growth, 11% beat)
- Efficiency Ratio: 55.9% vs analyst estimates of 57.2% (135 basis point beat)
- Adjusted EPS: $0.78 vs analyst expectations of $1.04 (24.8% miss)
- Tangible Book Value per Share: $32.76 vs analyst estimates of $33.38 (9.3% year-on-year growth, 1.9% miss)
- Market Capitalization: $1.32 billion
"During the first quarter of 2026, total assets increased $922.4 million, or 19.5%, to $5.66 billion at March 31, 2026 compared to $4.74 billion at December 31, 2025, deposits grew by $897.0 million, or 21.6% and loans receivable increased by $109.8 million, representing a 2.9% rise, marking another period of solid growth. Our CCBX segment continued to expand product offerings with existing partners during the quarter, while advancing new partners through onboarding toward launch and active status in alignment with our long-term strategy. We expect growth to continue as current programs scale, new products are introduced, and we leverage our experience in the BaaS space to support disciplined, sustainable expansion,” stated CEO Eric Sprink.
Company Overview
Pioneering the intersection of traditional banking and financial technology in the Pacific Northwest, Coastal Financial (NASDAQ: CCB) operates as a bank holding company that provides traditional banking services and Banking-as-a-Service (BaaS) solutions to consumers and businesses.
Sales Growth
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Luckily, Coastal Financial’s revenue grew at an incredible 46.2% compounded annual growth rate over the last five years. Its growth surpassed the average banking company and shows its offerings resonate with customers, a great starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Coastal Financial’s annualized revenue growth of 13.8% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Coastal Financial reported wonderful year-on-year revenue growth of 34.4%, and its $149.4 million of revenue exceeded Wall Street’s estimates by 11%.
Net interest income made up 69% of the company’s total revenue during the last five years, meaning lending operations are Coastal Financial’s largest source of revenue.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
Coastal Financial’s TBVPS grew at an incredible 21.8% annual clip over the last five years. TBVPS growth has recently decelerated a bit to 20.3% annual growth over the last two years (from $22.65 to $32.76 per share).
Over the next 12 months, Consensus estimates call for Coastal Financial’s TBVPS to grow by 19.6% to $39.17, top-notch growth rate.
Key Takeaways from Coastal Financial’s Q1 Results
We were impressed by how significantly Coastal Financial blew past analysts’ revenue expectations this quarter. We were also glad its net interest income outperformed Wall Street’s estimates. On the other hand, its EPS missed and its tangible book value per share fell short of Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The market seemed to be hoping for more, and the stock traded down 12.5% to $75.87 immediately after reporting.
Is Coastal Financial an attractive investment opportunity at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
