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• A local **Wells Fargo** for the Puget Sound region.
• The **Bank of America** for Puget Sound community banking.

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• Deposit Accounts: Provides a range of accounts, including checking, savings, money market, and certificates of deposit, for individuals and businesses to save and manage funds.
• Lending Products: Offers various loan types such as commercial and industrial, commercial real estate, residential mortgages, and consumer loans to meet customer financing needs.
• Treasury & Cash Management Services: Delivers specialized business solutions including merchant services, remote deposit capture, and ACH services to help companies efficiently manage their cash flow.
• Digital Banking: Facilitates convenient banking through online and mobile platforms, enabling customers to access accounts, pay bills, and transfer funds remotely.

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Coastal Financial (symbol: CCB) is the holding company for Coastal Community Bank, a community bank based in Everett, Washington. As a financial institution, it primarily serves a broad base of individuals and businesses rather than having a few "major customers" in the traditional sense of a supplier-customer relationship.

The company sells primarily to individuals and businesses. Here are up to three categories of customers that it serves:

• Individuals/Consumers: This category includes everyday people who utilize the bank for their personal financial needs. Services provided include checking accounts, savings accounts, certificates of deposit (CDs), mortgages, home equity lines of credit (HELOCs), personal loans, and credit cards.
• Small to Medium-sized Businesses (SMBs): Coastal Community Bank serves local and regional businesses, providing essential banking services to support their operations and growth. This includes business checking and savings accounts, commercial real estate loans (for owner-occupied properties), business lines of credit, term loans for equipment or expansion, Small Business Administration (SBA) loans, and treasury management services.
• Commercial Real Estate (CRE) Investors and Developers: A significant portion of the bank's lending portfolio is often dedicated to financing for commercial real estate. This category includes investors and developers seeking funding for the acquisition, construction, or refinancing of various commercial properties such as multi-family residential, office buildings, retail centers, and industrial facilities.

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Eric M. Sprink, Chief Executive Officer

Mr. Sprink joined Coastal Financial in late 2006 as President and Chief Operating Officer and became Chief Executive Officer in 2010. His banking career began at Security Pacific Bank, followed by roles at Bank of America, Centura Bank, Washington Trust Bank, and Global Credit Union, where he held increasing levels of responsibility in retail operations, consumer and commercial lending, and wealth management. Mr. Sprink is also a past chairman of the Community Bankers of Washington.

Brandon Soto, Chief Financial Officer

Mr. Soto was appointed Chief Financial Officer, effective October 1, 2025. He previously served as the Chief Financial Officer of Square Financial Services, Inc. (a subsidiary of Block, Inc.) for seven years, where he was instrumental in building and scaling financial operations, securing the bank's charter, and managing financial operations including accounting, financial analysis, budgeting, forecasting, and treasury activities. His extensive background of over 20 years in financial institutions and fintech also includes leadership roles at Green Dot Bank and Sallie Mae Bank, and senior finance positions at JPMorgan Chase and Discover Financial Services.

Brian Hamilton, President

Mr. Hamilton is a seasoned financial technology executive. He was the co-founder and CEO of ONE (One Finance Inc.), which was acquired by a Walmart-led joint venture in 2022. He also founded Azlo, a digital bank for small businesses, and played a role in building out the BBVA Open Platform for sponsor banking services.

Ryan Hall, Chief Product Officer

Mr. Hall joined Coastal Financial from SoFi Bank, where he served as Head of Product, Engineering, and Design. In that role, he led the development of core consumer banking products and contributed to the launch of the bank's platform services.

Michael Costigan, Chief Commercial Officer

Mr. Costigan previously served as Vice President of Business Development at OnePay, which was a joint venture between Walmart and Ribbit Capital. At OnePay, he was responsible for leading the company's $40 million Series B fundraising round, scaling customer growth channels, and negotiating key agreements across payments, card networks, and new product partnerships.

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1. Credit Risk: Coastal Financial faces significant credit risk, primarily due to the potential for insufficient allowance for credit losses. This risk is amplified by its lending activities, particularly in commercial real estate and business lending. The company actively monitors and manages its loan portfolio, including its Banking as a Service (CCBX) segment, and has taken actions such as selling higher-risk loans to optimize its credit risk profile. Issues like persistent net charge-offs are also a concern.
2. Interest Rate Risk: Fluctuations in interest rates pose a considerable risk to Coastal Financial's earnings, given its liability-sensitive interest rate profile. Higher interest rates on interest-bearing deposits have led to compression in the net interest margin, impacting profitability.
3. Regulatory and Compliance Risks: The company is exposed to risks stemming from potential changes in the regulatory framework, including stringent capital requirements and consumer protection laws. This is particularly relevant for its Banking as a Service (BaaS) segment, which faces increased regulatory scrutiny. Maintaining compliance with evolving regulations requires continuous investment in infrastructure and proactive risk management.

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Coastal Financial (CCB) faces clear emerging threats from two primary areas:

• Digital-Only Banks and Fintech Competitors: The rise of neobanks, challenger banks, and specialized fintech platforms presents a significant threat. These digital-first entities often offer superior user experiences, lower fees, faster service, and hyper-targeted products. With significantly lower overhead costs compared to traditional brick-and-mortar banks, they can attract deposits and lending customers by offering more competitive rates or more convenient services, directly eroding market share from established community banks like Coastal Financial.
• Big Tech Companies Entering Financial Services: Companies such as Apple, Google, and Amazon are increasingly expanding their offerings into financial services, moving beyond just payments into areas like savings accounts (often through partnerships), lending, and wealth management. Leveraging their vast customer bases, extensive data, strong brand trust, and advanced technological capabilities, these companies have the potential to rapidly scale financial products and services, disintermediating traditional banks from their customers.

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Coastal Financial (symbol: CCB) primarily operates as a community bank, offering a range of financial products and services to individuals, professionals, and small to medium-sized businesses in the Puget Sound region of Washington State. Additionally, through its CCBX segment, the company provides Banking as a Service (BaaS) to broker-dealers and digital financial service partners.

The addressable markets for Coastal Financial's main products and services, primarily within the United States, are as follows:

• Community Banking (U.S.): The U.S. community banking market was valued at approximately $6.35 billion in 2024. It is projected to reach around $19.39 billion in 2025.
• Small Business Lending (U.S.): The U.S. small business loan market was valued at $245.39 billion in 2023 and is projected to reach $349.64 billion by 2033. Another estimate places the global small business loan market at $2.5 trillion in 2023, with North America expected to lead this market.
• Commercial Real Estate Lending (U.S.): The U.S. Real Estate Loan Market, which includes commercial properties, was valued at $3.5 trillion in 2024. Total commercial and multifamily mortgage debt outstanding in the U.S. increased to $4.79 trillion in Q4 2024.
• Residential Mortgage Loans (U.S.): Residential mortgage loans are a component of the broader U.S. real estate loan market, which was valued at $3.5 trillion in 2024.
• Banking as a Service (BaaS) (Global, with significant U.S. presence): While a specific U.S. market size for BaaS was not immediately available, the growth potential for BaaS is significant given the rising demand for digital financial solutions.

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Expected Drivers of Future Revenue Growth for Coastal Financial (CCB)

• Growth of Banking-as-a-Service (BaaS) Segment (CCBX): Coastal Financial's BaaS segment, CCBX, is a significant revenue generator, and its continued expansion through strategic partnerships and product offerings is expected to drive future revenue. The company reported an 11.3% increase in CCBX program fee income quarter-over-quarter in Q3 2025, excluding nonrecurring revenue, with an active pipeline of partners in testing and implementation phases.
• Increase in Loans Receivable: The company has demonstrated a robust increase in loans receivable, with a 4.6% rise in Q3 2025. This growth in lending operations is a primary source of revenue for Coastal Financial, with net interest income comprising a significant portion of its total revenue.
• Solid Deposit Growth: Coastal Financial reported solid deposit growth, with a 1.5% increase in total deposits in Q3 2025. This growth in its customer deposit base provides the necessary funding for loan growth and contributes to overall revenue generation.
• Continued Net Interest Income Growth: Despite falling slightly short of analyst estimates in Q3 2025, net interest income still showed a 7.9% year-on-year growth and remains the largest source of revenue for Coastal Financial. Analysts forecast significant overall revenue growth for the company over the next few years.
• Expansion of Partner and Product Offerings: Coastal Financial's CEO, Eric Sprink, has expressed optimism about the company's future growth trajectory, with plans to continue expanding its partner and product offerings into 2026, particularly within the BaaS segment. This strategic initiative is aimed at diversifying income streams and increasing market share.

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Share Issuance

• In December 2024, Coastal Financial completed a public offering of 1,200,000 shares of its common stock at $71.00 per share, resulting in aggregate gross proceeds of approximately $85.2 million. Assuming the underwriters' option to purchase additional shares was exercised in full, the aggregate gross proceeds were expected to be approximately $98.0 million.
• The company also filed a $62.46 million shelf registration for an ESOP-related common stock offering in the third quarter of 2025, signaling a focus on employee ownership.

Capital Expenditures

• Coastal Financial's capital expenditures were approximately $9.9 million in fiscal year 2024, $6.25 million in fiscal year 2023, and $2.84 million in fiscal year 2022.
• The company consistently invests in technology and infrastructure to support the growth of its CCBX segment and new partnerships.
• Expected expenses for new CCBX partners and product launches in 2025 are primarily front-loaded, focusing on compliance and operational risk management. [cite: 19, 23 in previous turn]