Coastal Financial Corp

Kirby McInerney LLP has launched an investigation into Coastal Financial Corporation over potential securities law violations. The investigation follows Coastal's July 30, 2026 announcement of a second-quarter net loss of $42.1 million, or $2.76 per diluted share, compared to net income of $12.0 million, or $0.78 per diluted share, in the prior quarter. The company attributed the loss primarily to a $68.8 million credit expense tied to a single CCBX partner relationship. On that news, Coastal shares fell as much as $30.75 per share, or 43.5%, to close at $39.91. No lawsuit has been filed, and the investigation is ongoing.

Holzer & Holzer, LLC announced an investigation into whether Coastal Financial Corporation complied with federal securities laws. The investigation follows Coastal Financial's unaudited second quarter 2026 results, which revealed a net loss of $42.1 million, primarily due to a $68.8 million credit expense tied to a single, isolated CCBX partner relationship. The company's stock price dropped after the announcement. Shareholders who purchased Coastal Financial stock and suffered a loss are encouraged to contact the law firm.

Coastal Financial reported a second-quarter GAAP net loss of $42.1 million, or $2.76 per diluted share, driven by $68.8 million in pre-tax adjustments tied to a defined Banking-as-a-Service partner and its consumer loan portfolio. The adjustments included a $46 million valuation adjustment to a credit enhancement asset and a $22.8 million provision for credit losses related to the partner's indemnification agreement. Management said the issue appears isolated to one of more than 25 partnerships and found no evidence of impropriety, while the company pursues contractual remedies and evaluates recovery options. The affected portfolio contains about $500 million in consumer loans, with resolution potentially taking from one or two quarters to 12 to 18 months. Despite the charge, core operations grew: net interest income rose 7.2% sequentially to a record $89.4 million, loans increased 9% to approximately $4.21 billion, and BaaS program income climbed 10.3%. Coastal remained well-capitalized but announced leadership changes including CFO Brandon Soto's departure and the return of Joel Edwards as interim CFO.

Coastal Financial announced that Executive Vice President and Chief Financial Officer Brandon Soto will step down effective August 15, 2026. The company appointed Joel Edwards, who served as CFO from 2012 until his retirement in 2025, as interim CFO effective the same date. Edwards currently serves as an advisor to Coastal Financial. The company has initiated a search for a permanent CFO and will consider both internal and external candidates.