Coastal Financial Corporation (CCB): History, Ownership, Mission, How It Works & Makes Money

Coastal Financial Corporation (CCB) is a fascinating case study in how a traditional community bank, founded in 1907, pivots to become a fintech enabler; but does its dual strategy justify a premium valuation in late 2025?

With total assets hitting $4.12 billion and a market capitalization of nearly $1.59 billion as of November 2025, the company is far from a sleepy regional player, especially since its Banking-as-a-Service (BaaS) segment, CCBX, is now the maximum revenue generator.

You need to understand how they blend local commercial lending with national fintech partnerships-a segment that saw loan growth of 34.6% in the last fiscal year-to decide if their $45.2 million in annual net income is a sustainable platform for future growth, or if the market is defintely overestimating the BaaS risks.

Coastal Financial Corporation (CCB) History

You need a clear view of Coastal Financial Corporation's roots to understand its current hybrid model. The company's story starts with a traditional community bank in 1997, but its modern trajectory is defintely defined by a pivot to Banking as a Service (BaaS) that now drives significant revenue.

Given Company's Founding Timeline

Year established

The operating entity, Coastal Community Bank, was chartered and commenced operations on April 1, 1997. The current public company, Coastal Financial Corporation, was organized later in 2003 as the bank's holding company.

Original location

The bank was founded in Everett, Washington, which is the largest city in Snohomish County. The first operations were run out of founder Lee Pintar's kitchen table for about six months before the first physical location opened on Colby Avenue in downtown Everett.

Founding team members

The Bank was founded by Lee Pintar, who was approached by a group of local businesspeople in 1996 following a spate of regional bank consolidation. Thomas D. Lane is also a key figure, having been a member of the Bank's board of directors since its 1997 formation.

Initial capital/funding

The initial capital raise for Coastal Community Bank in 1997 totaled $8.2 million, raised at $2.31 per share. This capital was used to start taking business banking customer deposits and lending to small and medium-sized businesses in the Puget Sound region.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's most significant strategic evolution was the creation of the CCBX segment in 2017, which diversified its business model beyond traditional community banking. This was a calculated move to balance the local, relationship-centric approach with the high-growth potential of financial technology (fintech) partnerships.

This pivot has dramatically changed the financial profile. For example, as of September 30, 2025, the CCBX segment had grown to 29 partners, and its income streams-including servicing, transaction, and interchange fees-are a major revenue driver. The entire company's Trailing Twelve Month (TTM) revenue as of November 2025 stands at approximately $410 million, illustrating the scale this new model has achieved.

Here's the quick math on the growth: The bank took 22 years to reach $1 billion in assets, but the CCBX-driven model has rapidly accelerated scale, pushing average deposits to $3.97 billion by the third quarter of 2025. This growth requires a strong capital base; total shareholders' equity was $475.3 million as of September 30, 2025, which gives the company the financial flexibility to manage the higher regulatory scrutiny that comes with BaaS.

• Diversify Income: Shifted from reliance on local loan interest to a significant portion of fee income from BaaS partners.
• Manage Risk: Maintained a strong indemnification structure, remaining 98.8% indemnified against credit risk with CCBX partners as of March 31, 2025.
• Scale Technology: Invested heavily in technology and risk management infrastructure to support the complex, high-volume CCBX transactions.

The core challenge now is managing the front-loaded expenses of onboarding new CCBX partners, like the T-Mobile deposit program launched in 2025, while maintaining credit quality in the traditional community bank portfolio. If you want to dive deeper into the guiding principles behind this dual strategy, you can read our analysis on the Mission Statement, Vision, & Core Values of Coastal Financial Corporation (CCB).

Coastal Financial Corporation (CCB) Ownership Structure

Coastal Financial Corporation (CCB) is a publicly traded bank holding company, which means its ownership is widely distributed among institutional funds, company insiders, and individual investors. This structure, common for a NASDAQ-listed entity with a market capitalization around $1.59 billion as of November 2025, ensures a degree of liquidity but also subjects the company to the fiduciary interests of major institutional shareholders like BlackRock, Inc. and The Vanguard Group, Inc.

Coastal Financial Corporation's Current Status

Coastal Financial Corporation is a public entity, trading on the NASDAQ Global Select Market under the ticker symbol CCB. It's a bank holding company for Coastal Community Bank, operating through two primary segments: the traditional Community Bank and the high-growth CCBX division, which focuses on Banking as a Service (BaaS). The stock's closing price was approximately $104.85 on November 14, 2025, reflecting a significant run-up over the past year. The company's focus on BaaS, which generates the maximum revenue, means its strategy is constantly balancing traditional banking stability with fintech innovation. If you're looking at the core financials, you should check out Breaking Down Coastal Financial Corporation (CCB) Financial Health: Key Insights for Investors.

Coastal Financial Corporation's Ownership Breakdown

The company's decision-making is heavily influenced by institutional capital, which holds the majority of the shares. This is typical for a growth-oriented regional bank, but it also means management must defintely stay aligned with the big money's long-term strategy. Insiders, while holding a smaller percentage, still represent a significant, aligned block. Here's the quick math on the share distribution as of late 2025:

Coastal Financial Corporation's Leadership

The leadership team is a mix of long-tenured banking veterans and new, specialized fintech talent, reflecting the company's dual focus on community banking and BaaS. This blend is crucial for navigating the regulatory and technological complexities of Banking as a Service (BaaS), which is their key growth engine.

The executive team has seen some strategic shifts in 2025, bringing in new expertise to scale the CCBX segment. For example, the company reported third quarter 2025 net income of $13.6 million, demonstrating the team's ability to drive earnings despite elevated expenses earlier in the year related to new partner onboarding.

• Eric M. Sprink, CEO: Served as CEO since 2010, providing long-term strategic continuity.
• Brandon Soto, Chief Financial Officer: Appointed in October 2025, bringing deep experience from Square Financial Services, Inc. (a Block, Inc. subsidiary).
• Brian T. Hamilton, President of CCBX Division & Director: Leads the high-growth Banking as a Service segment.
• Ryan Hall, Chief Product Officer: Joined in August 2025 from SoFi Bank to drive product innovation.
• Freddy Rivas, Chief Credit Officer: Appointed in August 2025, bringing over 20 years of risk management experience to the team.

This recent executive expansion is a clear signal that management is prioritizing disciplined growth and risk management as the CCBX division rapidly expands its partnerships and product offerings.

Coastal Financial Corporation (CCB) Mission and Values

Coastal Financial Corporation's mission centers on being a trusted, relationship-driven community bank, but its values also drive a major push into innovative digital finance through its CCBX segment.

Coastal Financial Corporation's Core Purpose

You're looking for the cultural DNA behind the stock price, and honestly, that's where long-term value is built. Coastal Financial Corporation, the holding company for Coastal Community Bank, is fundamentally a community-focused institution, but it has a crucial, dual focus on fintech innovation.

The company's commitment to its roots is clear, but the aggressive growth of its Banking-as-a-Service (BaaS) unit, CCBX, shows its vision is defintely two-pronged. For instance, the CCBX segment generated program fee income of $6.8 million in the second quarter of 2025, which is a huge part of their forward strategy. You can see how this plays out in the numbers by checking out Breaking Down Coastal Financial Corporation (CCB) Financial Health: Key Insights for Investors.

Official Mission Statement

The formal mission statement is a clear articulation of their community bank roots, emphasizing service and local knowledge. It's simple, but it directly maps to their traditional business segment.

• Build strong relationships.
• Provide exceptional service and innovative financial solutions.
• Maintain a deep understanding of local communities.

This mission is supported by core values like integrity, reliability, and community partnership, which are essential for a bank that relies on local trust in the Puget Sound region.

Vision Statement

While Coastal Financial Corporation doesn't publish a single, formal 'Vision Statement' in the way some mega-banks do, their strategic actions and stated goals paint a clear picture of where they are headed.

• Be the champion for the small business person.
• Seamlessly combine traditional banking with cutting-edge Embedded Finance (BaaS) solutions.
• Scale the CCBX segment to capitalize on the growing demand for digital financial services.

Here's the quick math: with total shareholders' equity at $475.3 million as of September 30, 2025, the company has the capital base to invest in this dual vision-community service plus high-growth fintech. That's a strong position for a regional player.

Coastal Financial Corporation Slogan/Tagline

Coastal Financial Corporation does not use a widely-publicized corporate slogan or tagline in its investor materials. Instead, their brand identity is best summarized by their long-standing commitment to their core customer base.

• 'Small Business Champion'

This descriptive phrase sums up the focus of their community bank segment, which is the largest community bank by deposit market share in its primary operating area. It's a no-nonsense, action-oriented identity.

Coastal Financial Corporation (CCB) How It Works

Coastal Financial Corporation operates a dual-engine model, blending traditional community banking in the Puget Sound region with a high-growth, technology-driven Banking as a Service (BaaS) platform called CCBX. This structure lets the company earn stable interest income from local lending while capturing high-margin fee income from its national fintech partnerships.

The company generates revenue primarily through net interest income from its loan portfolio and significant noninterest income, which includes fees from its CCBX partners; for the third quarter of 2025, CCBX program fee income alone totaled $7.6 million.

Coastal Financial Corporation's Product/Service Portfolio

Coastal Financial Corporation's Operational Framework

The operational framework focuses on two distinct, yet complementary, value streams: relationship-based lending and technology-enabled fee generation. This defintely helps diversify risk and revenue sources.

• Deposit Aggregation: The CCBX segment is a key driver for deposit growth, which funds the bank's lending activities; average deposits were approximately $3.97 billion as of September 30, 2025, with growth primarily driven by CCBX partner programs.
• Loan Origination and Sale: The company originates loans, especially credit card receivables through CCBX partners, and then sells a substantial portion to manage its balance sheet and regulatory capital. In Q3 2025, Coastal Financial sold $1.62 billion of loans, retaining fee income on the sold credit card loans.
• Partner Onboarding Pipeline: Value creation is tied to scaling the CCBX platform. As of September 30, 2025, the company had four partners in the implementation/onboarding stage, positioning them for future revenue growth.
• Risk Mitigation: The BaaS model includes contractual agreements that indemnify Coastal Financial Corporation against significant risk; partners were responsible for 98.9% of credit risk on CCBX loan balances as of September 30, 2025.

You can see the company's foundational values that drive this framework here: Mission Statement, Vision, & Core Values of Coastal Financial Corporation (CCB).

Coastal Financial Corporation's Strategic Advantages

Coastal Financial's success hinges on its ability to execute its hybrid strategy, giving it a clear edge over pure community banks and many pure-play fintechs.

• First-Mover and Scale in BaaS: The CCBX segment is an established, industry-leading Banking as a Service platform, which is a high-growth, high-margin business that many smaller banks cannot replicate.
• Geographic Dominance: The Community Bank segment maintains a strong, defensible position as the largest community bank by deposit market share in Snohomish County, Washington, providing a stable, low-cost funding base.
• Fee-Based Revenue Diversification: The BaaS segment's noninterest income, which totaled $57.5 million in Q3 2025, provides a powerful revenue stream that is less sensitive to interest rate fluctuations than traditional net interest income.
• Strong Risk Transfer Model: The indemnification clauses in the CCBX partner contracts transfer the majority of credit and fraud risk back to the fintech partners, allowing the bank to scale high-volume lending products with limited balance sheet risk.

Here's the quick math: the CCBX segment's income is a significant part of the total Q3 2025 revenue of $144.7 million, showing how critical the BaaS model is to their growth story.

Coastal Financial Corporation (CCB) How It Makes Money

Coastal Financial Corporation primarily generates revenue through two distinct engines: traditional lending operations, which create net interest income, and its high-growth Banking-as-a-Service (BaaS) segment, CCBX, which drives substantial non-interest fee income.

This dual-segment model allows the company to benefit from both the stable, spread-based income of a community bank and the rapid, technology-driven fee income of a fintech partner.

Coastal Financial Corporation's Revenue Breakdown

For the third quarter ended September 30, 2025, the company reported total revenue of $144.7 million. The split between its two main revenue streams shows a nearly equal reliance on lending and fee-based services, a unique profile for a regional bank.

Net Interest Income (NII) was $77.9 million in Q3 2025, up 7.9% year-over-year, demonstrating solid growth in the core lending business. Non-Interest Income, calculated at $66.8 million, is largely fueled by the CCBX segment's fees, which continue their upward trajectory.

Business Economics

The core of Coastal Financial Corporation's profitability lies in its ability to maintain a high Net Interest Margin (NIM) and rapidly scale its CCBX platform, which operates with a capital-light model.

• Net Interest Margin (NIM): The company reported an elite NIM of 7.0% for the third quarter of 2025. This figure is significantly higher than the average for the broader US bank sector, indicating a high-yielding loan book and efficient cost of funds.
• CCBX Fee Structure: The Banking-as-a-Service (BaaS) segment generates revenue from program fees, servicing fees, transaction fees, and interchange fees, plus an indemnification income component. For Q3 2025, the BaaS program fee income alone was $7.6 million, an 11.3% increase from the prior quarter, excluding nonrecurring revenue.
• Risk Mitigation: A crucial economic factor is that the company has contracts with CCBX partners that largely indemnify it against credit risk (98.9% on loan partner balances as of September 30, 2025) and fully against fraud. This structure allows for high-growth, high-fee revenue with lower associated credit risk than typical bank lending.
• Efficiency: The efficiency ratio-a measure of a bank's overhead costs relative to its revenue-was a strong 48.5% in Q3 2025. That's a great sign of operational control, showing the bank spends less than 49 cents to earn a dollar of revenue.

The dual model is defintely working, allowing the bank to capture high-yield interest income alongside scalable, high-margin fee income from fintech partnerships.

For a deeper dive into the market's perception of these segments, you should read Exploring Coastal Financial Corporation (CCB) Investor Profile: Who's Buying and Why?

Coastal Financial Corporation's Financial Performance

Coastal Financial Corporation's financial health as of November 2025 is marked by strong profitability and capital growth, largely driven by its strategic focus on the CCBX segment.

• Net Income: The company reported net income of $13.6 million for the third quarter of 2025. This translates to diluted earnings per common share (EPS) of $0.88.
• Capital Strength: Total shareholders' equity stood at $475.3 million as of September 30, 2025. This solid base provides the financial flexibility needed to pursue further growth and technology investments.
• Tangible Book Value: Tangible book value per share (TBV) was $31.45 at the end of Q3 2025, reflecting a strong year-over-year growth of 28.3%. This metric is critical for bank valuation, as it strips out intangible assets and shows the tangible value of the business.
• Asset Growth: Loans receivable increased by $163.5 million, a 4.6% rise, during Q3 2025, alongside deposit growth of $59.0 million. Here's the quick math: the loan growth rate is significantly outpacing deposit growth, which is a key trend to monitor for funding stability.

The company's Return on Average Assets (ROA) was 1.19% for the quarter ended September 30, 2025, up from 0.99% in the prior quarter. This performance indicates effective management of assets to generate profit, even as the bank continues to invest heavily in its BaaS infrastructure.

Coastal Financial Corporation (CCB) Market Position & Future Outlook

Coastal Financial Corporation is strategically positioned as a high-growth regional bank, successfully blending traditional community banking with a leading-edge Banking as a Service (BaaS) segment, CCBX, which is the primary driver of its future trajectory. The company's focus on off-balance sheet, fee-generating BaaS activity is expected to sustain its premium valuation and revenue growth into 2026, despite persistent credit quality concerns in its loan portfolio.

You're looking at a bank that is defintely more fintech than traditional regional lender, and that makes its risk-reward profile unique.

Competitive Landscape

Coastal Financial Corporation operates in a fragmented regional and niche BaaS market. While its community bank segment competes with larger institutions in Washington State, its CCBX segment directly competes with other BaaS-focused banks like Pathward Financial, where the core advantage is speed and regulatory compliance for fintech partners.

Here's the quick math: Coastal Financial Corporation's 17.5% is its deposit market share in its core area, Snohomish County, Washington, as of mid-2024, which shows dominance in its local market. The other percentages are illustrative of their small, fragmented share in the broader US regional banking space, where they compete for niche BaaS contracts or localized commercial lending.

Opportunities & Challenges

The company's near-term opportunities center on expanding its BaaS partner base, while its main challenge remains managing the credit risk tied to its high-growth loan portfolio.

Industry Position

Coastal Financial Corporation holds a unique position, acting as a hybrid financial institution. It is a dominant local bank in the Puget Sound region, being the largest locally headquartered bank by deposit market share in Snohomish County. More importantly, it is an industry leader in the Banking as a Service (BaaS) space, a high-growth, fee-income-driven segment that diversifies its revenue away from traditional net interest income.

• CCBX segment income, including servicing and other fees, totaled $57.5 million in the third quarter of 2025, underscoring its role as the primary revenue generator.
• The company's total assets grew to approximately $4.48 billion in Q2 2025, placing it firmly in the small-to-mid-sized regional bank category.
• Its strategic move to sell loans, such as the $1.62 billion in Q3 2025, allows it to manage its balance sheet risk and capital requirements while still retaining a portion of the fee income.
• The market's confidence in this model is reflected in the consensus analyst rating of 'Buy' as of November 2025, with an average price target of $116.20.

For a deeper dive into the numbers that support this growth story, you should read Breaking Down Coastal Financial Corporation (CCB) Financial Health: Key Insights for Investors.

Your next step is to monitor the CCBX partner pipeline and the trend in net charge-offs in the upcoming Q4 2025 earnings report.