Coastal Financial Corp (NASDAQ: CCB)

Coastal Financial Corporation is a registered bank holding company whose wholly owned subsidiaries are Coastal Community Bank and Arlington Olympic LLC. The company is incorporated in Washington state and its headquarters are in Everett Washington. It operates primarily as a commercial bank offering a full suite of banking products and services to consumers and small to medium sized businesses in the Puget Sound region of Washington and through digital channels. The bank also offers wealth management services and treasury solutions to support the financial goals of its clients.

The company generates revenue primarily from interest earned on its loan portfolio and from fees associated with deposit accounts payment services and other banking activities. The community bank segment contributes interest income from commercial and consumer loans as well as service fees from its branch network and digital platforms. The CCBX segment generates revenue through fees paid by its digital financial service partners for providing banking as a service including interchange fees on cards and servicing fees on loans. The treasury and administration segment contributes income from investment securities and manages the company's debt and liquidity positions.

The company operates through the following segments: the community bank, CCBX and treasury & administration.

• The community bank segment provides a wide range of banking products and services including checking and savings accounts commercial and consumer loans mortgages and lines of credit to individuals and small to medium sized businesses primarily in the Puget Sound region through its fourteen full service branch locations online banking and mobile applications.

• The CCBX segment offers banking as a service enabling digital financial service partners to deliver banking products such as installment loans credit cards and other consumer and commercial loans to their end users through integration with the company's banking platform.

• The treasury and administration segment oversees the company's investment portfolio debt funding and liquidity management and includes activities not directly tied to the community bank or CCBX operations such as securities investing and balance sheet management.

Within the Washington banking market Coastal Financial Corporation holds a leading position as the largest community bank by deposit market share in Snohomish County and competes with larger national banks regional banks credit unions and other community banks. Its competitive advantages stem from a relationship based banking approach a strong local brand and a diversified business model that combines traditional community banking with a growing banking as a service platform. The CCBX segment differentiates itself through technology infrastructure credit enhancement agreements with partners and the ability to serve underbanked populations via its partner network. Overall the company benefits from solid capital ratios a stable deposit base and a focus on prudent risk management which support its ability to grow loans while maintaining asset quality.

The company serves individual consumers small to medium sized businesses venture capital firms and digital financial service partners that utilize its banking as a service platform. Its community bank customers are primarily located in the Puget Sound region while its CCBX partners distribute products to customers across the United States.