Coastal Financial Corporation reported significant financial performance changes for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total interest income rose to $105.1 million, up from $88.3 million, while net interest income increased to $72.2 million from $62.2 million. This growth was driven by a rise in interest and fees on loans, which reached $99.6 million, compared to $83.7 million in the prior year.

However, the provision for credit losses saw a substantial increase, amounting to $70.3 million for the quarter, compared to $27.3 million in 2023. This rise reflects the company's strategy to bolster its reserves amid changing market conditions. Total noninterest income also surged to $80.1 million from $34.6 million, indicating a strong performance in fee-based services.

Despite the increase in revenues, total noninterest expenses rose to $65.6 million from $56.5 million, reflecting higher operational costs. The net income for the quarter was $13.5 million, an increase from $10.3 million in the previous year, while the nine-month net income decreased to $31.9 million from $35.6 million, indicating a mixed performance over the longer term.

The company’s total assets grew to $4.1 billion as of September 30, 2024, up from $3.8 billion at the end of 2023. Total loans receivable also increased to $3.4 billion, compared to $3.0 billion previously. The balance of common stock rose to $134.8 million, with total equity reaching $331.9 million.

In terms of strategic developments, Coastal Financial continues to expand its Banking as a Service (BaaS) segment, CCBX, which now has 22 partners. The company has also seen a notable increase in loans originated through CCBX partners, reflecting its focus on digital financial services.

The company’s stock-based compensation plan remains active, with no new stock options granted in the nine months ended September 30, 2024. However, the intrinsic value of options exercised during the quarter was $3.8 million, a significant increase from $59,000 in the same period last year.

Overall, Coastal Financial Corporation's performance highlights a robust growth trajectory in interest income and noninterest income, alongside strategic investments in its digital banking services, despite challenges in credit loss provisions and rising operational costs.