Coastal Financial reports Q3 2026 profit, BaaS fee surge and $20 M expense‑savings plan
Coastal Financial Corp. posted a net income of $13.8 million ($0.89 per diluted share) for the third quarter of 2026, reversing a $42.1 million loss in the prior quarter. BaaS program fee income rose 79.6% year‑over‑year to $14.1 million, while total revenue missed consensus at $149.3 million. Management announced a target of over $20 million in annualized non‑interest expense savings to be achieved over the next four to six quarters and warned that the Bluevine partnership may end, affecting $452.4 million of deposits.
Why it matters
The return to profitability and strong BaaS fee growth improve Coastal’s earnings outlook, while the expense‑savings initiative could boost margins further. The potential loss of Bluevine deposits may require the bank to replace $452.4 million of funding, a risk noted by management.
Key facts
- 1Net income was $13.8 million, or $0.89 per diluted share, compared with a $42.1 million loss in Q2 2026. investing.com
- 2Revenue was $149.3 million, below the $158.9 million consensus estimate. investing.com
- 3BaaS program fee income reached $14.1 million, a 79.6% increase year‑over‑year and 17.6% growth quarter‑over‑quarter. investing.com
- 4The company targets more than $20 million in annualized non‑interest expense savings over the next four to six quarters. finance.yahoo.com
- 5Bluevine deposits total $452.4 million on‑balance sheet, and the relationship is expected to terminate following an acquisition. fool.com
- 6Off‑balance‑sheet credit cards grew to 1.3 million accounts, a 236.3% increase from Q3 2025. fool.com
Summary written by AlphAI AI Desk from 7 of 7 sources. Not investment advice. Figures are as stated by the linked sources.