Coastal Financial Corp (NASDAQ: CCB)

Coastal Financial Corporation, also known as CCB, operates in the banking industry, providing a range of financial services to consumers and small to medium-sized businesses in the Puget Sound region of Washington state. The company generates revenue through its community bank, CCBX, and treasury & administration segments.

The community bank segment is the primary focus of Coastal Financial's business activities. It provides a wide range of banking products and services to consumers and small to medium-sized businesses in the Puget Sound region. The segment operates 14 full-service banking locations, with 12 locations in Snohomish County, where it is the largest community bank by deposit market share. The community bank segment offers a variety of loan products, including commercial and industrial loans, commercial real estate loans, construction and land development loans, residential real estate loans, and consumer loans.

The CCBX segment provides Banking as a Service (BaaS) to broker-dealers and digital financial service partners, allowing them to offer banking services to their customers. The segment has a total of 21 partners, with 19 active partners and two partners in the testing or implementation stage. CCBX loans receivable totaled $1.20 billion, or 39.4% of total loans receivable, as of December 31, 2023.

The treasury & administration segment includes investments, debt, and other reporting items that are not specific to the community bank or CCBX segments. This segment is responsible for managing the company's investments, debt, and other financial assets.

Coastal Financial Corporation is a significant player in the Puget Sound region, with a strong presence in Snohomish County. The company's community bank segment is the largest community bank by deposit market share in Snohomish County, with a market share of 15.8% as of June 30, 2023. CCB's competitive advantages include its strong relationships with local businesses and individuals, its experienced management team, and its ability to offer a wide range of financial products and services.

The company's customers include a diverse range of individuals and businesses in the Puget Sound region. The community bank segment serves consumers and small to medium-sized businesses, while the CCBX segment serves a broader range of customers through its partnerships with broker-dealers and digital financial service partners.

In terms of brand names and/or trade names of its products and services, Coastal Financial Corporation operates under the Coastal Community Bank and CCBX brands. The company's community bank segment provides a wide range of financial products and services, including deposit accounts, loans, credit and debit cards, and online and mobile banking services. The CCBX segment provides BaaS to broker-dealers and digital financial service partners, allowing them to offer banking services to their customers.

Coastal Financial Corporation is subject to a number of federal and state laws and regulations that impose restrictions on and provide for general regulatory oversight of the operations of the Bank. These laws and regulations are generally intended to protect the safety and soundness of the Bank and the Bank's depositors, rather than the company's shareholders. The Bank is primarily subject to the supervision, examination and reporting requirements of the Federal Reserve and the Washington DFI.

The Bank is also subject to a number of federal consumer protection laws, including the Federal Truth in Lending Act, the Real Estate Settlement Procedures Act, the Home Mortgage Disclosure Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Service Members Civil Relief Act, the Truth in Savings Act, the Gramm-Leach-Bliley Act, the Right to Financial Privacy Act, the National Flood Insurance Act, and the Electronic Funds Transfer Act.

The company is also subject to the Basel III capital adequacy framework, which requires a minimum common equity Tier 1 capital ratio of 4.5%, a Tier 1 capital ratio of 6.0%, and a total capital ratio of 8.0%. Coastal Financial Corporation has made significant investments in its information technology systems and staff to support its growth and expansion. The company has also implemented various initiatives to promote diversity, equity, and inclusion, including a commitment to hiring and retaining a diverse workforce, providing training and development opportunities, and promoting a culture of inclusivity and respect.

In terms of environmental sustainability, Coastal Financial Corporation has implemented various initiatives to reduce its environmental impact, including reducing waste and energy consumption, using technology to reduce paper usage, and promoting sustainable practices among its employees and customers. Coastal Financial Corporation is committed to promoting environmental sustainability and responsible business practices in the communities it serves.