1. A smaller, regional version of a bank like U.S. Bank or KeyBank, serving Washington's Puget Sound.

2. A regional bank that also acts as a 'banking infrastructure' provider for other fintechs, much like Stripe provides payment infrastructure.

• Deposit Accounts: Provides various deposit options including demand, savings, time, and money market accounts for individuals and businesses.
• Business Loans: Offers a range of commercial and industrial loans, such as term loans, lines of credit, and equipment financing, primarily for small to medium-sized businesses.
• Real Estate & Construction Loans: Provides financing for owner-occupied and non-owner-occupied real estate, multi-family residences, and land development and construction projects.
• Residential Mortgages: Offers loans to individuals for purchasing or refinancing residential real estate.
• Consumer Loans: Supplies various personal loans including those for automobiles, boats, recreational vehicles, and overdraft protection.
• Digital Banking Services: Delivers convenient digital tools like online and mobile banking, remote deposit capture, and debit cards.
• Business Cash Management: Provides business checking and savings accounts along with treasury services to help businesses manage their finances.
• Banking as a Service (BaaS): Operates a platform that enables broker-dealers and digital financial service providers to embed banking services for their own clients.

Coastal Financial (CCB) primarily sells its banking products and services to other companies. Based on the provided background information, these major customer categories include:

• Small to medium-sized businesses in the Puget Sound region, which utilize a range of commercial and industrial loans, real estate loans, and business banking services.
• Broker dealers, who leverage Coastal Financial's Banking as a Service (BaaS) platform to offer banking services to their own clients.
• Digital financial service providers, who also utilize the BaaS platform to integrate banking functionalities into their offerings.

The provided background information does not specify the names of any individual customer companies.

• Jack Henry & Associates (JKHY)
• Alkami Technology (ALKT)
• BDO USA, P.C.

Eric M. Sprink, Chief Executive Officer

Mr. Sprink joined Coastal Financial in late 2006 as President and Chief Operating Officer, becoming Chief Executive Officer in 2010. His banking career began at Security Pacific Bank, and he subsequently held roles at Bank of America, Centura Bank, Washington Trust Bank, and Global Credit Union. Centura Bank was acquired during his tenure. He is also a director and past chairman of the Community Bankers of Washington.

Brandon Soto, Executive Vice President and Chief Financial Officer

Mr. Soto was appointed Chief Financial Officer in October 2025. Prior to joining Coastal Financial, he served as CFO of Square Financial Services, Inc., a Block, Inc. subsidiary, where he was instrumental in its establishment and growth. His career includes leadership roles at Green Dot Bank and Sallie Mae Bank, along with senior finance positions at organizations such as JPMorgan Chase and Discover Financial Services.

Brian T. Hamilton, President, CCBX

Mr. Hamilton was appointed President of CCBX, the company's FinTech and banking-as-a-service division, on September 30, 2024. He is a seasoned financial technology executive with over 25 years of experience in banking, lending, payments, and digital product development. He co-founded and served as CEO of ONE (One Finance Inc.) from January 2019 until August 2023, which was acquired by a Walmart-led joint venture in 2022. Mr. Hamilton also founded Azlo, a digital bank for small businesses, and held senior leadership roles at Capital One, Wells Fargo, and Verifone.

Curt T. Queyrouze, President, Community Bank

Curt T. Queyrouze serves as the President of the Community Bank division of Coastal Financial. No further specific background details were found in the provided search results.

Andrew G. Stines, Executive Vice President, Chief Risk Officer

Andrew G. Stines holds the position of Executive Vice President and Chief Risk Officer at Coastal Financial. No further specific background details were found in the provided search results.

The key risks to Coastal Financial (CCB) are primarily concentrated around its Banking as a Service (BaaS) segment, coupled with broader economic and operational challenges.

1. Credit and Regulatory Risks in Banking as a Service (BaaS) Segment (CCBX): Coastal Financial's CCBX segment, while a major revenue driver, introduces heightened credit risk due to instances of "substandard underwriting" and "low-quality assets requiring enormous provisions for losses." The non-performing loan ratio for CCBX operations has been noted at 1.50%, exceeding a preferred threshold of 0.50% for community bank loans. Although partner indemnification exists for credit losses, this coverage has seen a decline, raising concerns about uncompensated losses. Furthermore, the company has identified a "material weakness in its internal controls over financial reporting related to interest income and banking-as-a-service expenses" and "incorrect accounting for expense reimbursements" for certain BaaS partner loans, leading to restatements of financial reports for 2023 and the first three quarters of 2024. Rapid growth in BaaS relationships also brings concentrated regulatory and compliance risks.
2. Reliance on Economic Conditions and Interest Rate Fluctuations: As a financial institution, Coastal Financial's performance is significantly influenced by overall economic conditions. Market volatility, geopolitical tensions, and trade relationships can negatively impact financial markets and economic activity, potentially leading to reduced demand for loans, increased credit losses, and a decline in collateral values. Economic instability or recessionary periods could challenge the company's ability to maintain revenue and profitability. Additionally, changes in market interest rates directly affect the bank's profitability. A potential delay in interest rate cuts by the Federal Reserve, or other rate fluctuations, can create uncertainty and impact corporate profits.
3. Cybersecurity Risks: Operating extensively in the digital space through both its traditional banking services and its BaaS platform exposes Coastal Financial to significant cybersecurity risks. These include potential threats such as customer, employee, or third-party fraud, as well as data processing system failures and errors. Maintaining robust internal controls and implementing effective cybersecurity measures are critical for safeguarding the company's reputation and ensuring operational integrity.

• The increasing entry and expansion of major technology companies (e.g., Apple, Google, Amazon) into core banking services. These companies leverage their vast customer bases, extensive data, and advanced technological capabilities to offer deposit accounts (like Apple's high-yield savings account), lending products (such as Amazon Lending for businesses), and seamless payment solutions. This directly threatens Coastal Financial's traditional deposit base, consumer lending, and small to medium-sized business lending segments by providing alternative, highly integrated, and often digitally native financial products that can bypass traditional banking relationships.

Coastal Financial (NASDAQ: CCB) is expected to drive future revenue growth over the next two to three years through several key strategies:

1. Expansion of the Banking as a Service (BaaS) Segment (CCBX): The company's CCBX segment is a primary revenue generator and a significant growth opportunity. Coastal Financial plans to expand its digital offerings by leveraging existing partnerships and selectively onboarding new relationships. This dual strategy focuses on scaling existing programs and introducing new products within the BaaS space. New partnership opportunities and product launches are anticipated for 2026. The BaaS segment also contributes through fee income generated from a portion of transaction processing fees on sold credit card receivables.
2. Growth in Loan Receivables: Coastal Financial anticipates continued growth in its loan portfolio. During the fourth quarter of 2025, loans receivable increased by $45.7 million, and average loans receivable as of December 31, 2025, increased by $103.5 million compared to the previous quarter, driven by net CCBX loan growth. The company intends to maintain a strategy of originating higher-quality CCBX loans and optimizing the CCBX portfolio. The community bank segment's loan portfolio, consisting primarily of commercial real estate (CRE), construction, land and land development, and commercial and industrial (C&I) loans, also contributes to this growth.
3. Deposit Growth, particularly via BaaS Programs: The company projects continued solid deposit growth, with average deposits increasing by $61.1 million in Q4 2025, primarily driven by deposits associated with CCBX partner programs. This growth in deposits provides a stable funding mix and supports overall lending activities.
4. Strategic Initiatives and New Product Development: Coastal Financial is focusing on introducing new products and services and leveraging strategic initiatives to enhance revenue. This includes progress in deploying artificial intelligence (AI) across the organization to improve efficiency, risk management, and customer experience. The company is also evaluating opportunities in digital assets and digital deposit solutions. Additionally, the acquisition of the GreenFi brand of climate-focused consumer financial services during Q4 2025 represents another avenue for new product offerings and potential revenue streams.