Coastal Financial Corporation (Nasdaq: CCB), the holding company for Coastal Community Bank, announced its unaudited financial results for the second quarter ended June 30, 2025. The company reported a net income of $11.0 million, or $0.71 per diluted common share, reflecting an increase from $9.7 million, or $0.63 per diluted common share, in the previous quarter. However, this was a decline compared to the net income of $11.6 million, or $0.84 per diluted common share, for the same period in 2024. The quarter saw a $1.0 million increase in banking as a service (BaaS) program income, driven by a rise in transaction and interchange fees, and included $504,000 in nonrecurring revenue. Despite a $26.4 million decrease in noninterest income compared to the quarter ended June 30, 2024, attributed primarily to a $28.5 million decrease in BaaS credit and fraud enhancements, there was an offsetting increase of $2.0 million in BaaS program income. Coastal Financial's management highlighted a lower provision for credit losses due to improved credit quality within the CCBX loan portfolio, which reduced the need for credit enhancements. Additionally, the quarter included a net $439,000 loss on equity securities due to the re-valuation of a privately held equity stake, though management does not believe this reflects longer-term concerns for the portfolio company's health. CEO Eric Sprink noted an 8.2% increase in BaaS program income from the previous quarter, excluding nonrecurring revenue, and expressed optimism for continued growth in this area as partner activities expand. The company operates through its main subsidiary, Coastal Community Bank, with three segments: CCBX, community bank, and treasury & administration. The CCBX segment, which encompasses all BaaS activities, continues to develop with 29 relationships in various stages, including partners in testing and implementation.