DexCom earnings beat by $0.03, revenue topped estimates
Investing.com -- Coastal Financial Corporation (NASDAQ:CCB) saw its shares fall 4.3% Tuesday after reporting second quarter earnings that fell short of analyst expectations, as both revenue and profit came in below consensus estimates.
The bank holding company reported net income of $11.0 million, or $0.71 per diluted share for the quarter ended June 30, 2025, missing the analyst estimate of $0.84 per share. Revenue came in at $119 million, significantly below the consensus estimate of $151.37 million. Compared to the same period last year, earnings per share declined from $0.84 in Q2 2024.
Despite the earnings miss, the company reported improvements in its Banking as a Service (CCBX) segment, with lower provisions for credit losses due to better portfolio performance. Total (EPA:TTEF) BaaS program fee income was $6.8 million, excluding $504,000 in nonrecurring revenue, representing an 8.2% increase from the first quarter.
"Second quarter of 2025 saw a lower provision for credit losses as a result of an improvement in the performance of the CCBX portfolio and our focus on originating higher quality CCBX loans resulting in lower historical loss factors," stated CEO Eric Sprink.
The company continued to see deposit growth, with total deposits increasing by $122.3 million during the quarter to $3.91 billion. Average deposits were $3.93 billion, up 6.0% from the previous quarter.
Noninterest expenses remained relatively flat at $72.8 million, up 1.2% from the previous quarter, primarily due to higher data processing and software costs partially offset by lower legal and professional expenses.
Looking ahead, Sprink noted, "We expect expense growth should moderate considerably in the second half of 2025, with new programs or products starting to produce revenue to offset the initial up-front expenses."
The company continues to expand its Banking as a Service segment, with two partners in testing, two in implementation, and five signed letters of intent as of June 30, 2025.
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