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Mar 31, 2024
Coastal Financial Q1 2024 Earnings Report
Coastal Financial's performance was impacted by unanticipated expenses and strategic investments in technology, yet the company sustained growth and improved credit quality.
Key Takeaways
Coastal Financial Corporation reported a net income of $6.8 million, or $0.50 per diluted common share, for Q1 2024. The results were influenced by $2.3 million in unanticipated expenses and continued investments in technology to enhance BaaS infrastructure. Despite these factors, the company saw growth in total assets, loans, and deposits.
Net income reached $6.8 million, with earnings per diluted share at $0.50.
Total assets grew to $3.87 billion, marking a 3.0% increase.
Total loans increased to $3.20 billion, reflecting a 5.7% growth.
Deposits rose to $3.46 billion, showing a 3.1% increase.
Revenue by Segment
Forward Guidance
Coastal Financial anticipates that investments in technology and the challenges from the economic environment will continue to impact earnings in the short term. However, they believe they are positioning themselves for long term success.
Positive Outlook
- Technology investments are expected to increase automation.
- Automation aims to enhance operational efficiency.
- Improved efficiency is expected to reduce labor costs.
- Automation is intended to make the business more scalable.
- The company anticipates being better able to manage expenses in the future.
Challenges Ahead
- Technology investments require significant upfront expense.
- Economic environment poses ongoing challenges.
- Short-term earnings may be negatively impacted.
- Investments include the costs associated with acquiring and implementing advanced technologies.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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