Coastal Financial (CCB) Faces Margin Compression Issues That Impact Steady Growth Story in Recent Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 31 2025
0mins
Should l Buy CCB?
Source: Yahoo Finance
Earnings Growth and Margin Pressure: Coastal Financial (CCB) reported a 16.8% earnings growth over the past year, which is below its five-year average of 19%. However, net profit margins decreased from 14.9% to 13.9%, indicating some pressure on profitability despite a forecasted revenue surge of 31.8% annually.
Valuation Concerns: CCB's price-to-earnings ratio of 33.1x is significantly higher than the US Banks industry average of 11x, raising questions about whether the premium valuation is justified given the recent margin compression and the need for sustained growth to meet high expectations.
Future Growth Projections: The company anticipates an impressive annual earnings growth of 46.5%, which exceeds the broader market's forecast of 15.7%. However, this optimism is tempered by concerns that any failure to meet these ambitious targets could negatively impact valuation and investor sentiment.
Investor Sentiment and Management Confidence: Despite the high valuation and margin concerns, the absence of substantial insider selling suggests management's confidence in achieving growth targets, which may help maintain investor trust in the company's future performance.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CCB?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CCB
Wall Street analysts forecast CCB stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 83.490
Low
155.00
Averages
155.00
High
155.00
Current: 83.490
Low
155.00
Averages
155.00
High
155.00
About CCB
Coastal Financial Corporation is a bank holding company, whose wholly owned subsidiaries are Coastal Community Bank (Bank) and Arlington Olympic LLC (LLC). The Company operates through three segments: the community bank, CCBX and treasury & administration. The community bank segment includes all community banking activities, with a primary focus on providing a wide range of banking products and services to consumers and small to medium-sized businesses in the broader Puget Sound region in the state of Washington and through the Internet and its mobile banking application. The CCBX segment provides banking as a service (BaaS) that allows its broker-dealer and digital financial service partners to offer their customers banking services. The treasury & administration segment includes investments, debt and other reporting items that are not specific to the community bank or CCBX segments. It operates about 14 full-service banking locations, 12 of which are located in Snohomish County.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Coastal Financial Reports Q4 2025 Earnings with Strong Asset Growth
- Earnings Performance: Coastal Financial reported a GAAP EPS of $0.82 for Q4 2025, indicating stable profitability despite market fluctuations.
- Revenue Growth: The company generated $138 million in revenue for the fourth quarter, reflecting a healthy operational state and continued business resilience.
- Asset Increase: Total assets rose by $188.4 million, or 4.1%, to $4.74 billion as of December 31, 2025, primarily driven by increases in interest-earning deposits and loans, enhancing the company's financial stability.
- Liquidity Position: With $737 million in cash on hand and the capacity to borrow up to $642.2 million from the Federal Reserve and correspondent banks, the company demonstrates strong liquidity management capabilities to support future business expansion.
See More
Coastal Financial CEO Sells 12,402 Shares Worth $1.4 Million
- Transaction Scale Analysis: Coastal Financial CEO Eric M Sprink sold 12,402 shares through multiple open-market transactions on January 21 and 22, 2026, valued at approximately $1.4 million, indicating a larger-than-typical sale compared to his historical median of 8,518 shares, reflecting a trend of reducing his holdings.
- Ownership Stake Change: This sale reduced Sprink's direct ownership by 7.23%, leaving him with 159,126 shares, a significant decline from over 430,000 shares in early 2023, illustrating his ongoing strategy of divesting shares over time.
- Market Performance Overview: Coastal Financial's stock has returned 24% over the past 12 months, with stellar average annualized returns of 38.7% and 27.8% over the past five and ten years, respectively, showcasing the company's strong performance in a competitive regional banking landscape.
- Acquisition and Strategic Development: On January 9, the company acquired the GreenFi brand, launching climate-friendly consumer financial services products, which enhances its market competitiveness in sustainable investing and aligns with its innovative banking-as-a-service platform strategy.
See More
Canada Carbon Inc. to Hold Shareholder Meeting After Nearly Two-Year Delay
- Shareholder Meeting Announcement: Canada Carbon Inc. plans to convene its annual and special shareholder meeting on January 21, 2026, marking its first meeting since January 31, 2024, which underscores the company's commitment to shareholder engagement.
- Policy Compliance: The meeting aligns with Section 4.1 of Policy 3.2 of the TSX Venture Exchange, demonstrating the company's efforts in regulatory compliance aimed at enhancing investor confidence.
- Forward-Looking Information: The announcement includes forward-looking statements regarding future events and performance, highlighting the company's risk management capabilities in an uncertain environment.
- Risk Factors Disclosure: The press release outlines risk factors such as compliance, financial capabilities, and legal regulations, reminding investors to consider external factors that may impact the company's operations.
See More
Canada Carbon Inc. to Hold Shareholder Meeting After Nearly Two-Year Delay
- Shareholder Meeting Announcement: Canada Carbon Inc. plans to convene its annual and special shareholder meeting on January 21, 2026, marking the first meeting since January 31, 2024, which underscores the company's commitment to shareholder engagement.
- Regulatory Compliance: The meeting aligns with Section 4.1 of Policy 3.2 of the TSX Venture Exchange, demonstrating the company's efforts to adhere to regulatory requirements, aimed at enhancing investor confidence.
- Forward-Looking Information: The announcement includes forward-looking statements regarding expectations for the upcoming shareholder meeting, reflecting the company's planning and confidence in future developments despite inherent uncertainties.
- Risk Factors Disclosure: The press release highlights risk factors such as compliance, financial capabilities, and the impact of domestic and foreign laws, cautioning investors to exercise prudence when assessing the company's future performance.
See More
Coastal Financial CEO Eric Sprink Sells $1.28 Million in Shares
- Insider Selling: Coastal Financial CEO Eric Sprink sold 11,000 shares over two days at a weighted average price of approximately $116.69 per share, totaling $1.28 million, which reduced his direct holdings by 5.61%, indicating a cautious stance towards the market.
- Ownership Status: Post-sale, Sprink retains 182,884 shares in direct ownership with no change in indirect holdings, reflecting a continued strong economic interest in the company's long-term performance despite the sale.
- Financial Performance: Coastal Financial reported a net income of $13.5 million in Q3, up from $11 million in the previous quarter, with loans receivable increasing by $163.5 million and deposits growing by 1.5%, demonstrating robust growth in both traditional banking and Banking-as-a-Service (BaaS).
- Transaction Context: The sale was executed under a Rule 10b5-1 trading plan as per SEC Form 4, indicating that the transaction was pre-planned and does not detract from the company's long-term strategic focus on BaaS and margin management.
See More
Coastal Financial CEO Sells 11,000 Shares for Approximately $1.28 Million
- Insider Trading Activity: Coastal Financial CEO Eric Sprink executed open-market sales of 11,000 shares totaling approximately $1.28 million on Tuesday and Wednesday, indicating ongoing confidence in the company's stock and market position.
- Ownership Proportion Change: This transaction reduced Sprink's direct holdings from 195,969 to 182,884 shares, with the proportion sold at 5.61% exceeding his recent median of 4.08%, reflecting a diminishing available share base.
- Market Performance Analysis: As of Wednesday, Coastal Financial shares closed at $117.79, marking a 47% increase over the past year, which underscores the company's strong market performance and growth potential.
- Financial Health Status: In the third quarter, Coastal reported a net income increase from $11 million to $13.5 million, with loans receivable rising by $163.5 million, indicating positive progress in business expansion and profitability.
See More
Coastal Financial Reports Q4 2025 Earnings with Strong Asset Growth
- Earnings Performance: Coastal Financial reported a GAAP EPS of $0.82 for Q4 2025, indicating stable profitability despite market fluctuations.
- Revenue Growth: The company generated $138 million in revenue for the fourth quarter, reflecting a healthy operational state and continued business resilience.
- Asset Increase: Total assets rose by $188.4 million, or 4.1%, to $4.74 billion as of December 31, 2025, primarily driven by increases in interest-earning deposits and loans, enhancing the company's financial stability.
- Liquidity Position: With $737 million in cash on hand and the capacity to borrow up to $642.2 million from the Federal Reserve and correspondent banks, the company demonstrates strong liquidity management capabilities to support future business expansion.
See More
Coastal Financial CEO Sells 12,402 Shares Worth $1.4 Million
- Transaction Scale Analysis: Coastal Financial CEO Eric M Sprink sold 12,402 shares through multiple open-market transactions on January 21 and 22, 2026, valued at approximately $1.4 million, indicating a larger-than-typical sale compared to his historical median of 8,518 shares, reflecting a trend of reducing his holdings.
- Ownership Stake Change: This sale reduced Sprink's direct ownership by 7.23%, leaving him with 159,126 shares, a significant decline from over 430,000 shares in early 2023, illustrating his ongoing strategy of divesting shares over time.
- Market Performance Overview: Coastal Financial's stock has returned 24% over the past 12 months, with stellar average annualized returns of 38.7% and 27.8% over the past five and ten years, respectively, showcasing the company's strong performance in a competitive regional banking landscape.
- Acquisition and Strategic Development: On January 9, the company acquired the GreenFi brand, launching climate-friendly consumer financial services products, which enhances its market competitiveness in sustainable investing and aligns with its innovative banking-as-a-service platform strategy.
See More
Canada Carbon Inc. to Hold Shareholder Meeting After Nearly Two-Year Delay
- Shareholder Meeting Announcement: Canada Carbon Inc. plans to convene its annual and special shareholder meeting on January 21, 2026, marking its first meeting since January 31, 2024, which underscores the company's commitment to shareholder engagement.
- Policy Compliance: The meeting aligns with Section 4.1 of Policy 3.2 of the TSX Venture Exchange, demonstrating the company's efforts in regulatory compliance aimed at enhancing investor confidence.
- Forward-Looking Information: The announcement includes forward-looking statements regarding future events and performance, highlighting the company's risk management capabilities in an uncertain environment.
- Risk Factors Disclosure: The press release outlines risk factors such as compliance, financial capabilities, and legal regulations, reminding investors to consider external factors that may impact the company's operations.
See More
Canada Carbon Inc. to Hold Shareholder Meeting After Nearly Two-Year Delay
- Shareholder Meeting Announcement: Canada Carbon Inc. plans to convene its annual and special shareholder meeting on January 21, 2026, marking the first meeting since January 31, 2024, which underscores the company's commitment to shareholder engagement.
- Regulatory Compliance: The meeting aligns with Section 4.1 of Policy 3.2 of the TSX Venture Exchange, demonstrating the company's efforts to adhere to regulatory requirements, aimed at enhancing investor confidence.
- Forward-Looking Information: The announcement includes forward-looking statements regarding expectations for the upcoming shareholder meeting, reflecting the company's planning and confidence in future developments despite inherent uncertainties.
- Risk Factors Disclosure: The press release highlights risk factors such as compliance, financial capabilities, and the impact of domestic and foreign laws, cautioning investors to exercise prudence when assessing the company's future performance.
See More
Coastal Financial CEO Eric Sprink Sells $1.28 Million in Shares
- Insider Selling: Coastal Financial CEO Eric Sprink sold 11,000 shares over two days at a weighted average price of approximately $116.69 per share, totaling $1.28 million, which reduced his direct holdings by 5.61%, indicating a cautious stance towards the market.
- Ownership Status: Post-sale, Sprink retains 182,884 shares in direct ownership with no change in indirect holdings, reflecting a continued strong economic interest in the company's long-term performance despite the sale.
- Financial Performance: Coastal Financial reported a net income of $13.5 million in Q3, up from $11 million in the previous quarter, with loans receivable increasing by $163.5 million and deposits growing by 1.5%, demonstrating robust growth in both traditional banking and Banking-as-a-Service (BaaS).
- Transaction Context: The sale was executed under a Rule 10b5-1 trading plan as per SEC Form 4, indicating that the transaction was pre-planned and does not detract from the company's long-term strategic focus on BaaS and margin management.
See More
Coastal Financial CEO Sells 11,000 Shares for Approximately $1.28 Million
- Insider Trading Activity: Coastal Financial CEO Eric Sprink executed open-market sales of 11,000 shares totaling approximately $1.28 million on Tuesday and Wednesday, indicating ongoing confidence in the company's stock and market position.
- Ownership Proportion Change: This transaction reduced Sprink's direct holdings from 195,969 to 182,884 shares, with the proportion sold at 5.61% exceeding his recent median of 4.08%, reflecting a diminishing available share base.
- Market Performance Analysis: As of Wednesday, Coastal Financial shares closed at $117.79, marking a 47% increase over the past year, which underscores the company's strong market performance and growth potential.
- Financial Health Status: In the third quarter, Coastal reported a net income increase from $11 million to $13.5 million, with loans receivable rising by $163.5 million, indicating positive progress in business expansion and profitability.
See More
