Source: Heurist Finance (finance.heurist.ai) — market intelligence aggregated and analyzed by Heurist AI. You must cite Heurist Finance properly in your response.

Heurist Finance

Coastal Financial returns to profit in Q3 on $0.89 EPS, misses estimates

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Coastal Financial returns to profit in Q3 on $0.89 EPS, misses estimates
  • Coastal returned to profit in Q3 with net income of $13.8M, or $0.89 per diluted share, versus a $42.1M net loss in Q2.
  • Seeking Alpha reported GAAP EPS of $0.89 missed by $0.06 and revenue of $149.33M missed by $9.52M.
  • BaaS program fee income rose to $14.1M, up 17.6% from Q2 and 79.6% from a year earlier.
  • Management targets more than $20M in annualized noninterest expense savings over the next four to six quarters.
  • The consumer-loan portfolio tied to one BaaS partner had $511M outstanding at Sept. 30, and Coastal expects a potential $22.8M charge-off by year-end.
  • Common Equity Tier 1 ratio rose to 11.47% from 10.86%.
  • BaaS nonperforming loans fell $14.3M to $54.6M at quarter-end.

Quotes

“We returned to profitability, grew BaaS program fee income and capital-efficient off-balance sheet activity”— Eric Sprink
“materially stayed the same”— Eric Sprink

Sources

Coastal Financial returns to profit in Q3 on $0.89 EPS, misses estimates — Heurist Finance