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Coastal Financial (CCB) guidance and outlook

Coastal Financial's 10-Q filed Nov 5, 2026 makes 38 forward-looking statements.

Guidance and outlook

Forward-looking statements, 10-Q filed Nov 5, 2026

• The provision for credit losses on loans is an expense we incur to maintain an allowance for credit losses at a level that management deems appropriate to absorb expected losses on existing loans in accordance with GAAP.
• As a result, while the Company records an allowance for expected credit losses on CCBX loans in accordance with U.S.
• However, in general, loans originated through CCBX partners have a higher level of expected losses than our community bank loans as reflected in the factors for allowance for credit losses.
• The increase in the Company’s provision for credit losses on loans during the quarter ended September 30, 2026, is largely related to loan growth, changes in the composition of the loan portfolio and the establishment of a $22.8 million specific provision during the second quarter of 2026 related to one partner relationship for credit losses not expected to be fully collected under the partner's indemnification…
• As a result, we generally expect servicing and other fees to decrease and transaction and interchange fees to increase as partner activity grows and contracted minimum fees are replaced with recurring fees which then exceed the minimum contractual fees.
• Also in accordance with GAAP, we establish a credit enhancement asset for expected future credit losses through the recognition of BaaS credit enhancement revenue at the same time we establish an allowance for those loans though a provision for credit losses on loans based on an assessment of collectability.
• As our CCBX activities grow and we invest more in technology, we expect some continued growth in number of employees to support these lines of business but are also working to automate our processes to reduce and/or slow future growth in hiring.
• These expenses are expected to increase as we invest more in automated processing and as we grow product lines and our CCBX segment.
• The expenses also reflect the costs associated with our infrastructure enhancement projects to improve our processing, automate processes and enhance our data management.
• Valuation allowances are established when necessary to reduce our deferred tax assets to the amount expected to be realized.
• The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP.
• Additionally, we retain a portion of the fee income for our role in processing new transactions on previously sold credit card receivables, which continues to grow and is expected to provide increased and on-going revenue with no on-balance sheet risk or capital requirement.

Coastal Financial's latest quarter

Questions

What does Coastal Financial expect?

The provision for credit losses on loans is an expense we incur to maintain an allowance for credit losses at a level that management deems appropriate to absorb expected losses on existing loans in accordance with GAAP. As a result, while the Company records an allowance for expected credit losses on CCBX loans in accordance with U.S. However, in general, loans originated through CCBX partners have a higher level of expected losses than our community bank loans as reflected in the factors for allowance for credit losses.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.