Coastal Financial Q3 profit misses estimates
Overview
US community bank and BaaS provider's Q3 adjusted EPS missed analyst expectations
Net income for Q3 missed analyst expectations
BaaS program fee income rose 18% from prior qtr, up 80% yr/yr
Outlook
Company expects new partnership opportunities and product launches for remainder of 2026
Expansion of partner initiatives expected to drive higher partner revenue in upcoming periods
Company targets up to $20 mln in annualized noninterest expense savings over next 4–6 qtrs
Result Drivers
BAAS FEE INCOME - Co said growth in BaaS program fee income was driven by higher partner activity and expansion of partner programs
LOWER EXPENSES - Co attributed lower noninterest expense to absence of prior quarter's credit enhancement valuation adjustment and reduced data processing, BaaS loan, and salary costs
CREDIT PERFORMANCE - Co said stabilization in partner credit performance and lower net charge-offs contributed to improved asset quality
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | Miss | $0.89 | $0.98 (4 Analysts) |
Q3 Net Income | Miss | $13.79 mln | $15.03 mln (4 Analysts) |
Q3 Net Interest Income | $88.29 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Coastal Financial Corp (EVERETT) is $51.50, about 9.3% above its October 28 closing price of $47.13
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)