Market Newsdesk

April 29, 2025 10:42 am

Coastal Financial Corporation Announces First Quarter 2025 Results

EVERETT, Wash., April 29, 2025 (GLOBE NEWSWIRE) — Coastal Financial Corporation (Nasdaq: CCB) (the “Company”, “Coastal”, “we”, “our”, or “us”), the holding company for Coastal Community Bank (the “Bank”), through which it operates a community-focused bank segment (“community bank”) with an industry leading banking as a service (“BaaS”) segment (“CCBX”), today reported unaudited financial results for the quarter ended March 31, 2025, including net income of $9.7 million, or $0.63 per diluted common share, compared to $13.4 million, or $0.94 per diluted common share, for the three months ended December 31, 2024 and $6.8 million, or $0.50 per diluted common share, for the three months ended March 31, 2024.

Management Discussion of the First Quarter Results

“First quarter of 2025 was impacted by elevated expenses related to the onboarding and implementation costs of several new partnerships and products within CCBX and investments in technology, however, we anticipate that the revenue and earnings from these investments will be highly valuable over the long-term,” stated CEO Eric Sprink. “We saw high quality deposit growth of $205.9 million during the first quarter, and our CCBX program fee income continued to increase, up 55.2% compared to the same period in 2024.”

Key Points for First Quarter and Our Go-Forward Strategy

Positive Growth Trends within CCBX Continue. As of March 31, 2025 we had two partners in testing, three in implementation/onboarding, one signed LOI and have an active pipeline of new partners and new products with existing partners for the balance of 2025 and into 2026. Total BaaS program fee income was $6.3 million for the three months ended March 31, 2025, an increase of $724,000, or 13.0%, from the three months ended December 31, 2024. We remain fully indemnified against fraud and 98.8% indemnified against credit risk with our CCBX partners as of March 31, 2025.

Investments for Growth Continues. Total noninterest expense of $72.0 million was up $4.6 million, or 6.8%, as compared to $67.4 million in the quarter ended December 31, 2024, mainly driven by higher salaries and employee benefits, legal and professional expenses and BaaS loan expense partially offset by lower BaaS fraud expense. As we increase the number of new CCBX partners and products with existing partners launching in 2025, we expect that expenses will tend to be front-loaded with a focus on compliance and operational risk before any new programs or products generate significant revenues. We remain focused on building our future revenue sources.

Strong Deposit Growth, Off Balance Sheet Activity Update. Total deposits of $3.79 billion, an increase of $205.9 million, or 5.7%, over the quarter ended December 31, 2024, driven primarily by growth in CCBX partner programs. On April 1, 2025 we launched the T-Mobile deposit program and those deposits will be reflected in the second quarter deposit totals. During the first quarter of 2025, we sold $744.6 million of loans, the majority of which were credit card receivables. We retain a portion of the fee income on sold credit card loans. As of March 31, 2025 there were 237,024 credit cards with fee earning potential, an increase of 54,575 compared to the quarter ended December 31, 2024 and an increase of 210,723 from March 31, 2024.

First Quarter 2025 Financial Highlights

The tables below outline some of our key operating metrics.

	Three Months Ended
(Dollars in thousands, except share and per share data; unaudited)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Income Statement Data:
Interest and dividend income	$	104,907		$	102,448		$	105,165		$	97,422		$	91,742
Interest expense		28,845			30,071			32,892			31,250			29,536
Net interest income		76,062			72,377			72,273			66,172			62,206
Provision for credit losses		55,781			61,867			70,257			62,325			83,158
Net interest (expense)/ income after provision for credit losses		20,281			10,510			2,016			3,847			(20,952	)
Noninterest income		63,477			74,100			78,790			69,138			86,176
Noninterest expense		71,989			67,411			64,424			57,964			56,509
Provision for income tax		2,039			3,832			2,926			3,425			1,915
Net income		9,730			13,367			13,456			11,596			6,800

	As of and for the Three Month Period
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Balance Sheet Data:
Cash and cash equivalents	$	624,302		$	452,513		$	484,026		$	487,245		$	515,128
Investment securities		46,991			47,321			48,620			49,213			50,090
Loans held for sale		42,132			20,600			7,565			—			797
Loans receivable		3,517,359			3,486,565			3,413,894			3,321,813			3,195,101
Allowance for credit losses		(183,178	)		(176,994	)		(171,674	)		(148,878	)		(139,941	)
Total assets		4,339,282			4,121,208			4,064,472			3,959,549			3,863,062
Interest bearing deposits		3,251,599			3,057,808			3,047,861			2,949,643			2,888,867
Noninterest bearing deposits		539,630			527,524			579,427			593,789			574,112
Core deposits ⁽¹⁾		3,321,772			3,123,434			3,190,869			3,528,339			3,447,864
Total deposits		3,791,229			3,585,332			3,627,288			3,543,432			3,462,979
Total borrowings		47,923			47,884			47,847			47,810			47,771
Total shareholders’ equity		449,917			438,704			331,930			316,693			303,709

Share and Per Share Data ⁽²⁾ :
Earnings per share – basic	$	0.65		$	0.97		$	1.00		$	0.86		$	0.51
Earnings per share – diluted	$	0.63		$	0.94		$	0.97		$	0.84		$	0.50
Dividends per share		—			—			—			—			—
Book value per share ⁽³⁾	$	29.98		$	29.37		$	24.51		$	23.54		$	22.65
Tangible book value per share ⁽⁴⁾	$	29.98		$	29.37		$	24.51		$	23.54		$	22.65
Weighted avg outstanding shares – basic		14,962,507			13,828,605			13,447,066			13,412,667			13,340,997
Weighted avg outstanding shares – diluted		15,462,041			14,268,229			13,822,270			13,736,508			13,676,917
Shares outstanding at end of period		15,009,225			14,935,298			13,543,282			13,453,805			13,407,320
Stock options outstanding at end of period		163,932			186,354			198,370			286,119			309,069

See footnotes that follow the tables below

	As of and for the Three Month Period
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Credit Quality Data:
Nonperforming assets ⁽⁵⁾ to total assets		1.30	%		1.52	%		1.63	%		1.34	%		1.42	%
Nonperforming assets⁽⁵⁾to loans receivable and OREO		1.60	%		1.80	%		1.94	%		1.60	%		1.72	%
Nonperforming loans ⁽⁵⁾ to total loans receivable		1.60	%		1.80	%		1.94	%		1.60	%		1.72	%
Allowance for credit losses to nonperforming loans		325.0	%		282.5	%		257.2	%		278.6	%		254.3	%
Allowance for credit losses to total loans receivable		5.21	%		5.08	%		5.03	%		4.45	%		4.35	%
Gross charge-offs	$	53,686		$	61,585		$	53,305		$	55,207		$	58,994
Gross recoveries	$	5,486		$	5,223		$	4,516		$	2,254		$	2,036
Net charge-offs to average loans ⁽⁶⁾		5.57	%		6.56	%		5.60	%		6.54	%		7.30	%

Capital Ratios:
Company
Tier 1 leverage capital		10.67	%		10.78	%		8.40	%		8.31	%		8.24	%
Common equity Tier 1 risk-based capital		12.13	%		12.04	%		9.24	%		9.03	%		8.98	%
Tier 1 risk-based capital		12.22	%		12.14	%		9.34	%		9.13	%		9.08	%
Total risk-based capital		14.73	%		14.67	%		11.89	%		11.70	%		11.70	%
Bank
Tier 1 leverage capital		10.57	%		10.64	%		9.29	%		9.24	%		9.19	%
Common equity Tier 1 risk-based capital		12.12	%		11.99	%		10.34	%		10.15	%		10.14	%
Tier 1 risk-based capital		12.12	%		11.99	%		10.34	%		10.15	%		10.14	%
Total risk-based capital		13.42	%		13.28	%		11.63	%		11.44	%		11.43	%

⁽¹⁾	Core deposits are defined as all deposits excluding brokered and time deposits.
⁽²⁾	Share and per share amounts are based on total actual or average common shares outstanding, as applicable.
⁽³⁾	We calculate book value per share as total shareholders’ equity at the end of the relevant period divided by the outstanding number of our common shares at the end of each period.
⁽⁴⁾	Tangible book value per share is a non-GAAP financial measure. We calculate tangible book value per share as total shareholders’ equity at the end of the relevant period, less goodwill and other intangible assets, divided by the outstanding number of our common shares at the end of each period. The most directly comparable GAAP financial measure is book value per share. We had no goodwill or other intangible assets as of any of the dates indicated. As a result, tangible book value per share is the same as book value per share as of each of the dates indicated.
⁽⁵⁾	Nonperforming assets and nonperforming loans include loans 90+ days past due and accruing interest.
⁽⁶⁾	Annualized calculations.

Key Performance Ratios

Return on average assets (“ROA”) was 0.93% for the quarter ended March 31, 2025 compared to 1.30% and 0.73% for the quarters ended December 31, 2024 and March 31, 2024, respectively. ROA for the quarter ended March 31, 2025, decreased 0.37% and increased 0.19% compared to December 31, 2024 and March 31, 2024, respectively. Noninterest expenses were higher for the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024 largely due to higher salaries and employee benefits, due to annual pay increases and for new hires that contribute to our continued investments in growth, technology and risk management, legal and professional expenses and increased BaaS loan expense, which is directly related to interest earned on CCBX loans. These increases were partially offset by a decrease in BaaS fraud expense. Noninterest expenses were higher than the quarter ended March 31, 2024 due primarily to an increase in salaries and employee benefits, data processing and software licenses and legal and professional expenses, all of which are related to the growth of Company and investments in technology and risk management.

Legal and professional fees in first quarter were elevated in multiple areas including compliance, BSA, audit, legal and projects as we prepare for new partners, and we may experience a similar level of expenses again in second quarter before returning to a more historical level in third quarter 2025.

Yield on earning assets and yield on loans receivable increased 0.07% and 0.23%, respectively, for the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024. Average loans receivable as of March 31, 2025 increased $92.2 million compared to December 31, 2024 as net CCBX loans continue to grow, despite selling $744.6 million in CCBX loans during the quarter ended March 31, 2025.

The following table shows the Company’s key performance ratios for the periods indicated.

	Three Months Ended
(unaudited)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Return on average assets ⁽¹⁾		0.93	%		1.30	%		1.34	%		1.21	%		0.73	%
Return on average equity ⁽¹⁾		8.91	%		14.90	%		16.67	%		15.22	%		9.21	%
Yield on earnings assets ⁽¹⁾		10.32	%		10.24	%		10.79	%		10.49	%		10.21	%
Yield on loans receivable⁽¹⁾		11.33	%		11.12	%		11.44	%		11.22	%		11.01	%
Cost of funds⁽¹⁾		3.11	%		3.24	%		3.62	%		3.60	%		3.52	%
Cost of deposits ⁽¹⁾		3.08	%		3.21	%		3.59	%		3.58	%		3.49	%
Net interest margin ⁽¹⁾		7.48	%		7.23	%		7.42	%		7.12	%		6.92	%
Noninterest expense to average assets ⁽¹⁾		6.87	%		6.54	%		6.42	%		6.05	%		6.10	%
Noninterest income to average assets⁽¹⁾		6.06	%		7.19	%		7.85	%		7.22	%		9.30	%
Efficiency ratio		51.59	%		46.02	%		42.65	%		42.84	%		38.08	%
Loans receivable to deposits ⁽²⁾		93.89	%		97.82	%		94.33	%		93.75	%		92.29	%

⁽¹⁾	Annualized calculations shown for quarterly periods presented.
⁽²⁾	Includes loans held for sale.

Management Outlook; CEO Eric Sprink

“Looking ahead to the balance of 2025, elevated onboarding activity is expected to continue into the second quarter as our CCBX pipeline remains very robust with high quality and potentially impactful opportunities. We plan to continue to invest in and enhance our technology and risk management infrastructure to support our next phase of CCBX growth. Our risk reduction efforts, namely our fraud and credit indemnifications via our partners, continued to function as expected despite the volatile macroeconomics conditions towards the end of first quarter. These efforts, plus additional growth in noninterest income should help mitigate the uncertainties associated with fluctuating interest rates and provide a stable, recurring income source.” said CEO Eric Sprink.

Coastal Financial Corporation Overview

The Company has one main subsidiary, the Bank, which consists of three segments: CCBX, the community bank and treasury & administration. The CCBX segment includes all of our BaaS activities, the community bank segment includes all community banking activities and the treasury & administration segment includes treasury management, overall administration and all other aspects of the Company.

CCBX Performance Update

Our CCBX segment continues to evolve, and we have 25 relationships, at varying stages, including two partners in testing, three in implementation/onboarding, one signed LOI as of March 31, 2025. We continue to refine the criteria for CCBX partnerships, exploring relationships with larger more established partners, with experienced management teams, existing customer bases and strong financial positions. We also will consider promising medium and smaller sized partners that align with our approach and terms including financial wherewithal and will continue to exit relationships where it makes sense for us to do so.

While we explore relationships with new partners we continue to expand our product offerings with existing CCBX partners. As we become more proficient in the BaaS space we aim to cultivate new relationships that align with our long-term goals. We believe that a strategy of adding new partnerships and launching new products with existing partners allows us to expand and grow our customer base with a modest increase in regulatory risk given our operational history with them. Increases in partner activity/transaction counts is positively impacting noninterest income and we expect this trend to continue as current products grow and new products are introduced . We plan to continue selling loans as part of our strategy to balance partner and lending limits, and manage the loan portfolio and credit quality. We retain a portion of the fee income for our role in processing transactions on sold credit card balances, and will continue this strategy to provide an on-going and passive revenue source with no on balance sheet risk or capital requirement.

On April 1, 2025, we went live with the T-Mobile deposit program and our second quarter deposits will include those balances. As we build our deposit base, we will be able to sweep deposits off and on the balance sheet as needed. This deposit sweep capability allows us to better manage liquidity and deposit programs. At March 31, 2025 we swept off $406.3 million in deposits for FDIC insurance and liquidity purposes. We are also launching a new suite of deposit products with RobinHood, which are expected to launch in the back half of 2025. The introduction of theses products are expected to increase deposits.

The following table illustrates the activity and evolution in CCBX relationships for the periods presented.

	As of
(unaudited)	March 31, 2025	December 31, 2024	March 31, 2024
Active	19	19	19
Friends and family / testing	2	1	1
Implementation / onboarding	3	1	1
Signed letters of intent	1	3	0
Total CCBX relationships	25	24	21

CCBX loans increased $47.2 million, or 2.9%, to $1.65 billion despite selling $744.6 million in loans during the three months ended March 31, 2025. In accordance with the program agreement for one partner, effective April 1, 2024, the portion of the CCBX portfolio that we are responsible for losses on decreased from 10% to 5%. At March 31, 2025 the portion of this portfolio for which we are responsible represented $19.9 million in loans.

The following table details the CCBX loan portfolio:

CCBX	As of
	March 31, 2025						December 31, 2024						March 31, 2024
(dollars in thousands; unaudited)	Balance			% to Total			Balance			% to Total			Balance			% to Total
Commercial and industrial loans:
Capital call lines	$	133,466			8.1	%	$	109,017			6.8	%	$	135,671			10.3	%
All other commercial & industrial loans		29,702			1.8			33,961			2.1			47,160			3.6
Real estate loans:
Residential real estate loans		285,355			17.3			267,707			16.7			265,148			20.2
Consumer and other loans:
Credit cards		532,775			32.2			528,554			33.0			505,706			38.6
Other consumer and other loans		670,026			40.6			664,780			41.4			358,528			27.3
Gross CCBX loans receivable		1,651,324			100.0	%		1,604,019			100.0	%		1,312,213			100.0	%
Net deferred origination (fees) costs		(498	)					(442	)					(394	)
Loans receivable	$	1,650,826					$	1,603,577					$	1,311,819
Loan Yield – CCBX ⁽¹⁾⁽²⁾		16.88	%					16.81	%					17.74	%

⁽¹⁾	CCBX yield does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽²⁾	Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.

The increase in CCBX loans in the quarter ended March 31, 2025, includes an increase of $24.4 million, or 22.4%, in capital call lines as a result of normal balance fluctuations and business activities, an increase of $17.6 million, or 6.6%, in residential real estate loans and an increase of $9.5 million or 0.8%, in other consumer and other loans. We continue to monitor and manage the CCBX loan portfolio, and sold $744.6 million in CCBX loans during the quarter ended March 31, 2025 compared to sales of $845.5 million in the quarter ended December 31, 2024. We continue to reposition ourselves by managing CCBX credit and concentration levels in an effort to optimize our loan portfolio earnings and generate off balance sheet fee income. CCBX loan yield increased 0.07% for the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024.

The following chart shows the growth in credit card accounts that generate fee income. This includes accounts with balances, which are included in our loan totals, and accounts that have been sold and have no corresponding balance in our loan totals, and that generate fee income.

The following table details the CCBX deposit portfolio:

CCBX	As of
	March 31, 2025						December 31, 2024						March 31, 2024
(dollars in thousands; unaudited)	Balance			% to Total			Balance			% to Total			Balance			% to Total
Demand, noninterest bearing	$	58,416			2.6	%	$	55,686			2.7	%	$	58,669			2.9	%
Interest bearing demand and money market		2,145,608			94.6			1,958,459			94.9			1,964,942			96.8
Savings		16,625			0.7			5,710			0.3			5,338			0.3
Total core deposits		2,220,649			97.9			2,019,855			97.9			2,028,949			100.0
Other deposits		46,359			2.1			44,233			2.1			—			—
Total CCBX deposits	$	2,267,008			100.0	%	$	2,064,088			100.0	%	$	2,028,949			100.0	%
Cost of deposits ⁽¹⁾		4.01	%					4.19	%					4.93	%

⁽¹⁾	Cost of deposits is annualized for the three months ended for each period presented.

CCBX deposits increased $202.9 million, or 9.8%, in the three months ended March 31, 2025 to $2.27 billion as a result of growth and normal balance fluctuations. This excludes the $406.3 million in CCBX deposits that were transferred off balance sheet for increased Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and sweep purposes, compared to $273.2 million for the quarter ended December 31, 2024. Amounts in excess of FDIC insurance coverage are transferred, using a third-party facilitator/vendor sweep product, to participating financial institutions.

Community Bank Performance Update

In the quarter ended March 31, 2025, the community bank saw net loans decrease $16.5 million, or 0.9%, to $1.87 billion, as a result of normal balance fluctuations.

The following table details the Community Bank loan portfolio:

Community Bank	As of
	March 31, 2025						December 31, 2024						March 31, 2024
(dollars in thousands; unaudited)	Balance			% to Total			Balance			% to Total			Balance			% to Total
Commercial and industrial loans	$	149,104			8.0	%	$	150,395			8.0	%	$	154,395			8.2	%
Real estate loans:
Construction, land and land development loans		166,551			8.9			148,198			7.8			160,862			8.5
Residential real estate loans		202,920			10.8			202,064			10.7			231,157			12.2
Commercial real estate loans		1,340,647			71.6			1,374,801			72.8			1,342,489			71.0
Consumer and other loans:
Other consumer and other loans		13,326			0.7			13,542			0.7			1,447			0.1
Gross Community Bank loans receivable		1,872,548			100.0	%		1,889,000			100.0	%		1,890,350			100.0	%
Net deferred origination fees		(6,015	)					(6,012	)					(7,068	)
Loans receivable	$	1,866,533					$	1,882,988					$	1,883,282
Loan Yield⁽¹⁾		6.53	%					6.53	%					6.46	%

⁽¹⁾	Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.

Community bank loans decreased $34.2 million in commercial real estate loans, $1.3 million in commercial and industrial loans and $216,000 in consumer and other loans, partially offset by an increase of $18.4 million in construction, land and land development loans, during the quarter ended March 31, 2025.

The following table details the community bank deposit portfolio:

Community Bank	As of
	March 31, 2025						December 31, 2024						March 31, 2024
(dollars in thousands; unaudited)	Balance			% to Total			Balance			% to Total			Balance			% to Total
Demand, noninterest bearing	$	481,214			31.5	%	$	471,838			31.0	%	$	515,443			35.9	%
Interest bearing demand and money market		560,416			36.8			570,625			37.5			834,725			58.2
Savings		59,493			3.9			61,116			4.0			68,747			4.8
Total core deposits		1,101,123			72.2			1,103,579			72.5			1,418,915			99.0
Other deposits		407,391			26.7			400,118			26.3			1			0.0
Time deposits less than $100,000		5,585			0.4			5,920			0.4			7,199			0.5
Time deposits $100,000 and over		10,122			0.7			11,627			0.8			7,915			0.6
Total Community Bank deposits	$	1,524,221			100.0	%	$	1,521,244			100.0	%	$	1,434,030			100.0	%
Cost of deposits⁽¹⁾		1.76	%					1.86	%					1.66	%

⁽¹⁾	Cost of deposits is annualized for the three months ended for each period presented.

Community bank deposits increased $3.0 million, or 0.2%, during the three months ended March 31, 2025 to $1.52 billion as result of normal balance fluctuations. The community bank segment includes noninterest bearing deposits of $481.2 million, or 31.5%, of total community bank deposits, resulting in a cost of deposits of 1.76%, which compared to 1.86% for the quarter ended December 31, 2024, largely due to the decreases in the Fed funds rate late in the third quarter and during the fourth quarter of 2024.

Net Interest Income and Margin Discussion

Net interest income was $76.1 million for the quarter ended March 31, 2025, an increase of $3.7 million, or 5.1%, from $72.4 million for the quarter ended December 31, 2024, and an increase of $13.9 million, or 22.3%, from $62.2 million for the quarter ended March 31, 2024. Net interest income compared to December 31, 2024, was higher due to an increase in average loans receivable, an increase in loan yield and a decrease in cost of funds. The increase in net interest income compared to March 31, 2024 was largely related to growth in higher yielding loans, partially offset by an increase in cost of funds relating to higher interest rates and growth in interest bearing deposits.

Net interest margin was 7.48% for the three months ended March 31, 2025, compared to 7.23% for the three months ended December 31, 2024, largely due to higher loan yield and lower cost of deposits. Net interest margin, net of BaaS loan expense, (a reconciliation of the non-GAAP measures are set forth in the Non-GAAP Financial Measures section of this earnings release) was 4.28% for the three months ended March 31, 2025, compared to 4.16% for the three months ended December 31, 2024. Net interest margin was 6.92% for the three months ended March 31, 2024. The increase in net interest margin for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was largely due to an increase in loan yield, partially offset by higher interest rates on interest bearing deposits. Interest and fees on loans receivable increased $2.6 million, or 2.7%, to $98.1 million for the three months ended March 31, 2025, compared to $95.6 million for the three months ended December 31, 2024, as a result of loan growth. Interest and fees on loans receivable increased $12.3 million, or 14.3%, compared to $85.9 million for the three months ended March 31, 2024, due to an increase in outstanding balances and higher interest rates. Net interest margin, net of BaaS loan expense (a reconciliation of the non-GAAP measures are set forth in the Non-GAAP Financial Measures section of this earnings release) increased 0.12% for the three months ended March 31, 2025, compared to the three months ended December 31, 2024 and increased 0.26% compared the three months ended March 31, 2024.

The following tables illustrate how net interest margin and loan yield is affected by BaaS loan expense:

Consolidated	As of and for the Three Months Ended
(dollars in thousands; unaudited)	March 31 2025			December 31 2024			March 31 2024
Net interest margin, net of BaaS loan expense:
Net interest margin ⁽¹⁾		7.48	%		7.23	%		6.92	%
Earning assets		4,124,065			3,980,078			3,613,769
Net interest income (GAAP)		76,062			72,377			62,206
Less: BaaS loan expense		(32,507	)		(30,720	)		(26,107	)
Net interest income, net of BaaS loan expense⁽²⁾	$	43,555		$	41,657		$	36,099
Net interest margin, net of BaaS loan expense ⁽¹⁾⁽²⁾		4.28	%		4.16	%		4.02	%
Loan income net of BaaS loan expense divided by average loans:
Loan yield (GAAP)⁽¹⁾		11.33	%		11.12	%		11.01	%
Total average loans receivable	$	3,511,724		$	3,419,476		$	3,137,271
Interest and earned fee income on loans (GAAP)		98,147			95,575			85,891
BaaS loan expense		(32,507	)		(30,720	)		(26,107	)
Net loan income⁽²⁾	$	65,640		$	64,855		$	59,784
Loan income, net of BaaS loan expense, divided by average loans ⁽¹⁾⁽²⁾		7.58	%		7.55	%		7.66	%

⁽¹⁾	Annualized calculations shown for periods presented.
⁽²⁾	A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.

Average investment securities decreased $974,000 to $47.2 million compared to the three months ended December 31, 2024 and decreased $68.2 million compared to the three months ended March 31, 2024 as a result of principal paydowns and maturing securities.

Cost of funds was 3.11% for the quarter ended March 31, 2025, a decrease of 13 basis points from the quarter ended December 31, 2024 and a decrease of 42 basis points from the quarter ended March 31, 2024. Cost of deposits for the quarter ended March 31, 2025 was 3.08%, compared to 3.21% for the quarter ended December 31, 2024, and 3.49% for the quarter ended March 31, 2024. The decreased cost of funds and deposits compared to December 31, 2024 and March 31, 2024 were largely due to the recent reductions in the Fed funds rate.

The following table summarizes the average yield on loans receivable and cost of deposits:

	For the Three Months Ended
	March 31, 2025						December 31, 2024						March 31, 2024
	Yield on Loans ⁽²⁾			Cost of Deposits ⁽²⁾			Yield on Loans ⁽²⁾			Cost of Deposits ⁽²⁾			Yield on Loans ⁽²⁾			Cost of Deposits ⁽²⁾
Community Bank		6.53	%		1.76	%		6.53	%		1.86	%		6.46	%		1.66	%
CCBX ⁽¹⁾		16.88	%		4.01	%		16.81	%		4.19	%		17.74	%		4.93	%
Consolidated		11.33	%		3.08	%		11.12	%		3.21	%		11.01	%		3.49	%

⁽¹⁾	CCBX yield on loans does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit and fraud enhancements and originating & servicing CCBX loans. To determine Net BaaS loan income earned from CCBX loan relationships, the Company takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income which can be compared to interest income on the Company’s community bank loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽²⁾	Annualized calculations for periods presented.

The following table illustrates how BaaS loan interest income is affected by BaaS loan expense resulting in net BaaS loan income and the associated yield:

	For the Three Months Ended
	March 31, 2025					December 31, 2024					March 31, 2024
(dollars in thousands, unaudited)	Income / Expense		Income / expense divided by average CCBX loans ⁽²⁾			Income / Expense		Income / expense divided by average CCBX loans ⁽²⁾			Income / Expense		Income / expense divided by average CCBX loans ⁽²⁾
BaaS loan interest income	$	67,855		16.88	%	$	64,532		16.81	%	$	55,839		17.74	%
Less: BaaS loan expense		32,507		8.09	%		30,720		8.00	%		26,107		8.29	%
Net BaaS loan income⁽¹⁾	$	35,348		8.79	%	$	33,812		8.81	%	$	29,732		9.45	%
Average BaaS Loans⁽³⁾	$	1,630,088				$	1,527,178				$	1,265,857

⁽¹⁾	A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.
⁽²⁾	Annualized calculations shown for the periods presented.
⁽³⁾	Includes loans held for sale.

Noninterest Income Discussion

Noninterest income was $63.5 million for the three months ended March 31, 2025, a decrease of $10.6 million from $74.1 million for the three months ended December 31, 2024, and a decrease of $22.7 million from $86.2 million for the three months ended March 31, 2024. The decrease in noninterest income for the quarter ended March 31, 2025 as compared to the quarter ended December 31, 2024 was primarily due to a decrease of $10.8 million in total BaaS income. The $10.8 million decrease in total BaaS income included an $8.4 million decrease in BaaS credit enhancements related to the provision for credit losses and a $3.1 million decrease in BaaS fraud enhancements partially offset by an increase of $724,000 in BaaS program income. The $724,000 increase in BaaS program income is largely due to higher reimbursement of CCBX partner expenses and an increase in transaction and interchange fees and servicing and other BaaS fees, (see “Appendix B” for more information on the accounting for BaaS allowance for credit losses and credit and fraud enhancements).

The $22.7 million decrease in noninterest income over the quarter ended March 31, 2024 was primarily due to a $25.1 million decrease in BaaS credit and fraud enhancements and an increase of $2.2 million in BaaS program income.

Noninterest Expense Discussion

Total noninterest expense increased $4.6 million to $72.0 million for the three months ended March 31, 2025, compared to $67.4 million for the three months ended December 31, 2024, and increased $15.5 million from $56.5 million for the three months ended March 31, 2024. The $4.6 million increase in noninterest expense for the quarter ended March 31, 2025, as compared to the quarter ended December 31, 2024, was primarily due to a $3.5 million increase in salaries and benefits, $1.9 million increase in legal and professional fees, and $1.8 million increase in BaaS loan expense, partially offset by a $3.1 million decrease in BaaS fraud expense. The salaries and benefits and legal and professional fees increases were part of our continued investments in growth, technology and risk management. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, and originating & servicing CCBX loans. BaaS fraud expense represents non-credit fraud losses on partner’s customer loan and deposit accounts. A portion of this expense is realized during the quarter in which the loss occurs, and a portion is estimated based on historical or other information from our partners.

The increase in noninterest expenses for the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024 was largely due to a $6.4 million increase in BaaS loan expense, a $1.1 million increase in BaaS fraud expense, a $2.8 million increase in legal and professional expenses, a $3.5 million increase in salary and employee benefits, and a $1.3 million increase in data processing and software licenses due to enhancements in technology all of which are related to the growth of Company and investments in technology and risk management.

Certain noninterest expenses are reimbursed by our CCBX partners. In accordance with GAAP we recognize all expenses in noninterest expense and the reimbursement of expenses from our CCBX partner in noninterest income. The following table reflects the portion of noninterest expenses that are reimbursed by partners to assist the understanding of how the increases in noninterest expense are related to expenses incurred for and reimbursed by CCBX partners:

	Three Months Ended
	March 31,		December 31,		March 31,
(dollars in thousands; unaudited)		2025		2024		2024
Total noninterest expense (GAAP)	$	71,989	$	67,411	$	56,509
Less: BaaS loan expense		32,507		30,720		26,107
Less: BaaS fraud expense		1,993		5,043		923
Less: Reimbursement of expenses (BaaS)		1,026		812		254
Noninterest expense, net of BaaS loan expense, BaaS fraud expense and reimbursement of expenses (BaaS)⁽¹⁾	$	36,463	$	30,836	$	29,225

⁽¹⁾	A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.

Provision for Income Taxes

The provision for income taxes was $2.0 million for the three months ended March 31, 2025, $3.8 million for the three months ended December 31, 2024 and $1.9 million for the first quarter of 2024. The income tax provision was lower for the three months ended March 31, 2025 compared to the quarter ended December 31, 2024 as a result of the deductibility of certain equity awards which reduced tax expense during the quarter ended March 31, 2025, and was higher compared to the quarter ended March 31, 2024, primarily due to higher net income compared to that quarter, partially offset by the deductibility of certain equity awards.

The Company is subject to various state taxes that are assessed as CCBX activities and employees expand into other states, which has increased the overall tax rate used in calculating the provision for income taxes in the current and future periods. The Company uses a federal statutory tax rate of 21.0% as a basis for calculating provision for federal income taxes and 2.55% for calculating the provision for state income taxes.

Financial Condition Overview

Total assets increased $218.1 million, or 5.3%, to $4.34 billion at March 31, 2025 compared to $4.12 billion at December 31, 2024. The increase is primarily comprised of a $171.8 million increase in cash and a $30.8 million increase in loans receivable. Total loans receivable increased to $3.52 billion at March 31, 2025, from $3.49 billion at December 31, 2024.

As of March 31, 2025, in addition to the $624.3 million in cash on hand the Company had the capacity to borrow up to a total of $662.4 million from the Federal Reserve Bank discount window and Federal Home Loan Bank, plus an additional $50.0 million from a correspondent bank. There were no borrowings outstanding on these lines as of March 31, 2025.

The Company, on a stand alone basis, had a cash balance of $45.5 million as of March 31, 2025, which is retained for general operating purposes, including debt repayment, for funding $468,000 in commitments to bank technology investment funds and $40.0 million is available to be contributed to the Bank as capital.

Uninsured deposits were $558.8 million as of March 31, 2025, compared to $543.0 million as of December 31, 2024.

Total shareholders’ equity as of March 31, 2025 increased $11.2 million since December 31, 2024. The increase in shareholders’ equity was primarily comprised of an increase of $1.5 million in common stock outstanding as a result of equity awards exercised during the three months ended March 31, 2025 combined with $9.7 million in net earnings.

The Company and the Bank remained well capitalized at March 31, 2025, as summarized in the following table.

(unaudited)	Coastal Community Bank			Coastal Financial Corporation			Minimum Well Capitalized Ratios under Prompt Corrective Action ⁽¹⁾
Tier 1 Leverage Capital (to average assets)		10.57	%		10.67	%		5.00	%
Common Equity Tier 1 Capital (to risk-weighted assets)		12.12	%		12.13	%		6.50	%
Tier 1 Capital (to risk-weighted assets)		12.12	%		12.22	%		8.00	%
Total Capital (to risk-weighted assets)		13.42	%		14.73	%		10.00	%

⁽¹⁾

Presents the minimum capital ratios for an insured depository institution, such as the Bank, to be considered well capitalized under the Prompt Corrective Action framework. The minimum requirements for the Company to be considered well capitalized under Regulation Y include to maintain, on a consolidated basis, a total risk-based capital ratio of 10.0 percent or greater and a tier 1 risk-based capital ratio of 6.0 percent or greater.

Asset Quality

The total allowance for credit losses was $183.2 million and 5.21% of loans receivable at March 31, 2025 compared to $177.0 million and 5.08% at December 31, 2024 and $139.9 million and 4.38% at March 31, 2024. The allowance for credit loss allocated to the CCBX portfolio was $164.2 million and 9.95% of CCBX loans receivable at March 31, 2025, with $19.0 million of allowance for credit loss allocated to the community bank or 1.02% of total community bank loans receivable.

The following table details the allocation of the allowance for credit loss as of the period indicated:

	As of March 31, 2025									As of December 31, 2024									As of March 31, 2024
(dollars in thousands; unaudited)	Community Bank			CCBX			Total			Community Bank			CCBX			Total			Community Bank			CCBX			Total
Loans receivable	$	1,866,533		$	1,650,826		$	3,517,359		$	1,882,988		$	1,603,577		$	3,486,565		$	1,883,282		$	1,311,819		$	3,195,101
Allowance for credit losses		(18,992	)		(164,186	)		(183,178	)		(18,924	)		(158,070	)		(176,994	)		(21,384	)		(118,557	)		(139,941	)
Allowance for credit losses to total loans receivable		1.02	%		9.95	%		5.21	%		1.00	%		9.86	%		5.08	%		1.14	%		9.04	%		4.38	%

Net charge-offs totaled $48.2 million for the quarter ended March 31, 2025, compared to $56.4 million for the quarter ended December 31, 2024 and $57.0 million for the quarter ended March 31, 2024. Net charge-offs as a percent of average loans decreased to 5.57% for the quarter ended March 31, 2025 compared to 6.56% for the quarter ended December 31, 2024. CCBX partner agreements provide for a credit enhancement that covers the net-charge-offs on CCBX loans and negative deposit accounts by indemnifying or reimbursing incurred losses, except in accordance with the program agreement for one partner where the Company was responsible for credit losses on approximately 5% of a $299.8 million loan portfolio. At March 31, 2025, our portion of this portfolio represented $19.9 million in loans. Net charge-offs for this $19.9 million in loans were $1.1 million for the three months ended March 31, 2025 and December 31, 2024 and $2.1 million for the three months ended March 31, 2024.

The following table details net charge-offs for the community bank and CCBX for the period indicated:

	Three Months Ended
	March 31, 2025									December 31, 2024									March 31, 2024
(dollars in thousands; unaudited)	Community Bank			CCBX			Total			Community Bank			CCBX			Total			Community Bank			CCBX			Total
Gross charge-offs	$	4		$	53,682		$	53,686		$	139		$	61,446		$	61,585		$	15		$	58,979		$	58,994
Gross recoveries		(7	)		(5,479	)		(5,486	)		(3	)		(5,220	)		(5,223	)		(4	)		(2,032	)		(2,036	)
Net charge-offs	$	(3	)	$	48,203		$	48,200		$	136		$	56,226		$	56,362		$	11		$	56,947		$	56,958
Net charge-offs to average loans ⁽¹⁾		0.00	%		11.99	%		5.57	%		0.03	%		14.65	%		6.56	%		0.00	%		18.09	%		7.30	%

⁽¹⁾	Annualized calculations shown for periods presented.

During the quarter ended March 31, 2025, a $54.3 million provision for credit losses was recorded for CCBX partner loans, compared to the $63.7 million provision for credit losses was recorded for CCBX partner loans for the quarter ended December 31, 2024. The provision was based on management’s analysis, bringing the CCBX allowance for credit losses to $164.2 million at March 31, 2025 compared to $158.1 million at December 31, 2024. The increase in the allowance is due to the addition of new loans, partially offset by loan sales. CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses. Agreements with our CCBX partners provide for a credit enhancement which protects the Bank by indemnifying or reimbursing incurred losses.

In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans and reclassified negative deposit accounts. When the provision for CCBX credit losses and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements). Expected losses are recorded in the allowance for credit losses. The credit enhancement asset is relieved when credit enhancement recoveries are received from the CCBX partner. If our partner is unable to fulfill their contracted obligations then the Bank could be exposed to additional credit losses. Management regularly evaluates and manages this counterparty risk.

The factors used in management’s analysis for community bank credit losses indicated that a provision of $65,000 was needed for the quarter ended March 31, 2025 compared to a provision recapture of $1.1 million and $199,000 for the quarters ended December 31, 2024 and March 31, 2024, respectively. The provision in the current period was due to a change in the mix of the community bank loan portfolio and growth in construction loans.

The following table details the provision expense/(recapture) for the community bank and CCBX for the period indicated:

	Three Months Ended
(dollars in thousands; unaudited)	March 31, 2025		December 31, 2024			March 31, 2024
Community bank	$	65	$	(1,071	)	$	(199	)
CCBX		54,319		63,741			79,717
Total provision expense	$	54,384	$	62,670		$	79,518

A provision for unfunded commitments of $613,000 was recorded for the quarter ended March 31, 2025 as a result of a change in the loan mix of available balance. A provision for accrued interest receivable of $784,000 was recorded for the quarter ended March 31, 2025 on CCBX loans.

At March 31, 2025, our nonperforming assets were $56.4 million, or 1.30%, of total assets, compared to $62.7 million, or 1.52%, of total assets, at December 31, 2024, and $54.9 million, or 1.42%, of total assets, at March 31, 2024. These ratios are impacted by nonperforming CCBX loans that are covered by CCBX partner credit enhancements. As of March 31, 2025, $54.1 million of the $56.2 million in nonperforming CCBX loans were covered by CCBX partner credit enhancements described above.

Nonperforming assets decreased $6.3 million during the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024. This change is due to a decrease in CCBX loans 90 days or more past due and still on accrual. Community bank nonperforming loans increased $89,000 from December 31, 2024 to $189,000 as of March 31, 2025, and CCBX nonperforming loans decreased $6.4 million to $56.2 million from December 31, 2024. The decrease in CCBX nonperforming loans is due to a $7.1 million decrease in CCBX loans that are past due 90 days or more and still accruing interest partially offset by an increase of $707,000 in nonaccrual loans from December 31, 2024 to $20.2 million. Some CCBX partners have a collection practice that places certain loans on nonaccrual status to improve collectability. $16.1 million of these loans are less than 90 days past due as of March 31, 2025. As a result of the type of loans (primarily consumer loans) originated through our CCBX partners we anticipate that balances 90 days past due or more and still accruing will generally increase as those loan portfolios grow. Installment/closed-end and revolving/open-end consumer loans originated through CCBX lending partners will continue to accrue interest until 120 and 180 days past due, respectively and are reported as substandard, 90 days or more days past due and still accruing. There were no repossessed assets or other real estate owned at March 31, 2025. Our nonperforming loans to loans receivable ratio was 1.60% at March 31, 2025, compared to 1.80% at December 31, 2024, and 1.72% at March 31, 2024. The lower nonperforming loans to loans receivable ratio is a reflection of our on-going risk reduction efforts.

For the quarter ended March 31, 2025, there were $3,000 community bank net recoveries and $48.2 million in net charge-offs were recorded on CCBX loans. These CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses.

The following table details the Company’s nonperforming assets for the periods indicated.

Consolidated	As of
(dollars in thousands; unaudited)	March 31, 2025			December 31, 2024			March 31, 2024
Nonaccrual loans:
Commercial and industrial loans	$	381		$	334		$	—
Real estate loans:
Residential real estate		—			—			212
Commercial real estate		—			—			7,731
Consumer and other loans:
Credit cards		13,602			10,262			—
Other consumer and other loans		6,376			8,967			—
Total nonaccrual loans		20,359			19,563			7,943
Accruing loans past due 90 days or more:
Commercial & industrial loans		782			1,006			1,793
Real estate loans:
Residential real estate loans		2,407			2,608			1,796
Consumer and other loans:
Credit cards		27,187			34,490			37,603
Other consumer and other loans		5,632			4,989			5,731
Total accruing loans past due 90 days or more		36,008			43,093			46,923
Total nonperforming loans		56,367			62,656			54,866
Real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	56,367		$	62,656		$	54,866
Total nonaccrual loans to loans receivable		0.58	%		0.56	%		0.25	%
Total nonperforming loans to loans receivable		1.60	%		1.80	%		1.72	%
Total nonperforming assets to total assets		1.30	%		1.52	%		1.42	%

The following tables detail the CCBX and community bank nonperforming assets which are included in the total nonperforming assets table above.

CCBX	As of
(dollars in thousands; unaudited)	March 31, 2025			December 31, 2024			March 31, 2024
Nonaccrual loans:
Commercial and industrial loans:
All other commercial & industrial loans	$	192		$	234		$	—
Consumer and other loans:
Credit cards		13,602			10,262			—
Other consumer and other loans		6,376			8,967			—
Total nonaccrual loans		20,170			19,463			—
Accruing loans past due 90 days or more:
Commercial & industrial loans		782			1,006			1,793
Real estate loans:
Residential real estate loans		2,407			2,608			1,796
Consumer and other loans:
Credit cards		27,187			34,490			37,603
Other consumer and other loans		5,632			4,989			5,731
Total accruing loans past due 90 days or more		36,008			43,093			46,923
Total nonperforming loans		56,178			62,556			46,923
Other real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	56,178		$	62,556		$	46,923
Total CCBX nonperforming assets to total consolidated assets		1.29	%		1.52	%		1.21	%

Community Bank	As of
(dollars in thousands; unaudited)	March 31, 2025			December 31, 2024			March 31, 2024
Nonaccrual loans:
Commercial and industrial loans	$	189		$	100		$	—
Real estate:
Residential real estate		—			—			212
Commercial real estate		—			—			7,731
Total nonaccrual loans		189			100			7,943
Accruing loans past due 90 days or more:
Total accruing loans past due 90 days or more		—			—			—
Total nonperforming loans		189			100			7,943
Other real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	189		$	100		$	7,943
Total community bank nonperforming assets to total consolidated assets		0.01	%		—	%		0.21	%

About Coastal Financial

Coastal Financial Corporation (Nasdaq: CCB) (the “Company”), is an Everett, Washington based bank holding company whose wholly owned subsidiaries are Coastal Community Bank (“Bank”) and Arlington Olympic LLC. The $4.34 billion Bank provides service through 14 branches in Snohomish, Island, and King Counties, the Internet and its mobile banking application. The Bank provides banking as a service to digital financial service providers, companies and brands that want to provide financial services to their customers through the Bank’s CCBX segment. To learn more about the Company visit www.coastalbank.com.

CCB-ER

Contact

Eric Sprink, Chief Executive Officer, (425) 357-3659
Joel Edwards, Executive Vice President & Chief Financial Officer, (425) 357-3687

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of or reference to forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, the risk that changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, may adversely impact our business, financial condition, and results of operations and those other risks and uncertainties discussed under “Risk Factors” in our Annual Report on Form 10-K for the most recent period filed and in any of our subsequent filings with the Securities and Exchange Commission.

If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.

COASTAL FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands; unaudited)

ASSETS
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Cash and due from banks	$	43,467		$	36,533		$	45,327		$	59,995		$	32,790
Interest earning deposits with other banks		580,835			415,980			438,699			427,250			482,338
Investment securities, available for sale, at fair value		34			35			38			39			41
Investment securities, held to maturity, at amortized cost		46,957			47,286			48,582			49,174			50,049
Other investments		12,589			10,800			10,757			10,664			10,583
Loans held for sale		42,132			20,600			7,565			—			797
Loans receivable		3,517,359			3,486,565			3,413,894			3,321,813			3,195,101
Allowance for credit losses		(183,178	)		(176,994	)		(171,674	)		(148,878	)		(139,941	)
Total loans receivable, net		3,334,181			3,309,571			3,242,220			3,172,935			3,055,160
CCBX credit enhancement asset		183,377			181,890			173,600			149,096			142,412
CCBX receivable		12,685			14,138			16,060			11,520			10,369
Premises and equipment, net		28,639			27,431			25,833			24,526			22,995
Lease right-of-use assets		5,117			5,219			5,427			5,635			5,756
Accrued interest receivable		21,109			21,104			22,315			21,620			22,485
Bank-owned life insurance, net		13,501			13,375			13,255			13,132			12,991
Deferred tax asset, net		3,912			3,600			3,083			2,221			2,221
Other assets		10,747			13,646			11,711			11,742			12,075
Total assets	$	4,339,282		$	4,121,208		$	4,064,472		$	3,959,549		$	3,863,062

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits	$	3,791,229		$	3,585,332		$	3,627,288		$	3,543,432		$	3,462,979
Subordinated debt, net		44,331			44,293			44,256			44,219			44,181
Junior subordinated debentures, net		3,592			3,591			3,591			3,591			3,590
Deferred compensation		310			332			369			405			442
Accrued interest payable		1,107			962			1,070			999			1,061
Lease liabilities		5,293			5,398			5,609			5,821			5,946
CCBX payable		29,391			29,171			37,839			32,539			30,899
Other liabilities		14,112			13,425			12,520			11,850			10,255
Total liabilities		3,889,365			3,682,504			3,732,542			3,642,856			3,559,353
SHAREHOLDERS’ EQUITY
Common Stock		229,659			228,177			134,769			132,989			131,601
Retained earnings		220,259			210,529			197,162			183,706			172,110
Accumulated other comprehensive loss, net of tax		(1	)		(2	)		(1	)		(2	)		(2	)
Total shareholders’ equity		449,917			438,704			331,930			316,693			303,709
Total liabilities and shareholders’ equity	$	4,339,282		$	4,121,208		$	4,064,472		$	3,959,549		$	3,863,062

COASTAL FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts; unaudited)

	Three Months Ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024			March 31, 2024
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	98,147	$	95,575	$	99,676	$	90,879		$	85,891
Interest on interest earning deposits with other banks		6,070		6,021		4,781		5,683			4,780
Interest on investment securities		650		661		675		686			1,034
Dividends on other investments		40		191		33		174			37
Total interest income		104,907		102,448		105,165		97,422			91,742
INTEREST EXPENSE
Interest on deposits		28,185		29,404		32,083		30,578			28,867
Interest on borrowed funds		660		667		809		672			669
Total interest expense		28,845		30,071		32,892		31,250			29,536
Net interest income		76,062		72,377		72,273		66,172			62,206
PROVISION FOR CREDIT LOSSES		55,781		61,867		70,257		62,325			83,158
Net interest income/(expense) after provision for credit losses		20,281		10,510		2,016		3,847			(20,952	)
NONINTEREST INCOME
Service charges and fees		860		932		952		946			908
Loan referral fees		—		—		—		—			168
Unrealized gain (loss) on equity securities, net		16		1		2		9			15
Other income		682		473		486		257			308
Noninterest income, excluding BaaS program income and BaaS indemnification income		1,558		1,406		1,440		1,212			1,399
Servicing and other BaaS fees		1,419		1,043		1,044		1,525			1,131
Transaction and interchange fees		3,833		3,699		3,549		2,934			2,661
Reimbursement of expenses		1,026		812		565		857			254
BaaS program income		6,278		5,554		5,158		5,316			4,046
BaaS credit enhancements		53,648		62,097		70,108		60,826			79,808
BaaS fraud enhancements		1,993		5,043		2,084		1,784			923
BaaS indemnification income		55,641		67,140		72,192		62,610			80,731
Total noninterest income		63,477		74,100		78,790		69,138			86,176
NONINTEREST EXPENSE
Salaries and employee benefits		21,532		17,994		17,101		17,005			17,984
Occupancy		1,034		958		964		985			1,518
Data processing and software licenses		4,232		4,010		4,297		3,625			2,892
Legal and professional expenses		6,488		4,606		3,597		3,631			3,672
Point of sale expense		107		89		73		72			90
Excise taxes		722		778		762		(706	)		320
Federal Deposit Insurance Corporation (“FDIC”) assessments		755		750		740		690			683
Director and staff expenses		631		683		559		470			400
Marketing		50		28		67		14			53
Other expense		1,938		1,752		1,482		1,383			1,867
Noninterest expense, excluding BaaS loan and BaaS fraud expense		37,489		31,648		29,642		27,169			29,479
BaaS loan expense		32,507		30,720		32,698		29,011			26,107
BaaS fraud expense		1,993		5,043		2,084		1,784			923
BaaS loan and fraud expense		34,500		35,763		34,782		30,795			27,030
Total noninterest expense		71,989		67,411		64,424		57,964			56,509
Income before provision for income taxes		11,769		17,199		16,382		15,021			8,715
PROVISION FOR INCOME TAXES		2,039		3,832		2,926		3,425			1,915
NET INCOME	$	9,730	$	13,367	$	13,456	$	11,596		$	6,800
Basic earnings per common share	$	0.65	$	0.97	$	1.00	$	0.86		$	0.51
Diluted earnings per common share	$	0.63	$	0.94	$	0.97	$	0.84		$	0.50
Weighted average number of common shares outstanding:
Basic		14,962,507		13,828,605		13,447,066		13,412,667			13,340,997
Diluted		15,462,041		14,268,229		13,822,270		13,736,508			13,676,917

COASTAL FINANCIAL CORPORATION
AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
(Dollars in thousands; unaudited)

	For the Three Months Ended
	March 31, 2025								December 31, 2024								March 31, 2024
	Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾			Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾			Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾
Assets
Interest earning assets:
Interest earning deposits with other banks	$	553,393		$	6,070		4.45	%	$	501,654		$	6,021		4.77	%	$	350,868		$	4,780		5.48	%
Investment securities, available for sale ⁽²⁾		37			1		10.96			39			—		—			64,878			349		2.16
Investment securities, held to maturity ⁽²⁾		47,154			649		5.58			48,126			661		5.46			50,490			685		5.46
Other investments		11,757			40		1.38			10,783			191		7.05			10,262			37		1.45
Loans receivable⁽³⁾		3,511,724			98,147		11.33			3,419,476			95,575		11.12			3,137,271			85,891		11.01
Total interest earning assets		4,124,065			104,907		10.32			3,980,078			102,448		10.24			3,613,769			91,742		10.21
Noninterest earning assets:
Allowance for credit losses		(170,542	)							(156,687	)							(114,985	)
Other noninterest earning assets		296,993								277,922								229,437
Total assets	$	4,250,516							$	4,101,313							$	3,728,221

Liabilities and Shareholders’ Equity
Interest bearing liabilities:
Interest bearing deposits	$	3,166,384		$	28,185		3.61	%	$	3,068,357		$	29,404		3.81	%	$	2,728,884		$	28,867		4.25	%
FHLB advances and other borrowings		—			1		—			—			1		—			5			—		—
Subordinated debt		44,309			598		5.47			44,272			599		5.38			44,159			598		5.45
Junior subordinated debentures		3,592			61		6.89			3,591			67		7.42			3,590			71		7.95
Total interest bearing liabilities		3,214,285			28,845		3.64			3,116,220			30,071		3.84			2,776,638			29,536		4.28
Noninterest bearing deposits		543,784								577,453								595,693
Other liabilities		49,624								50,824								58,829
Total shareholders’ equity		442,823								356,816								297,061
Total liabilities and shareholders’ equity	$	4,250,516							$	4,101,313							$	3,728,221
Net interest income				$	76,062							$	72,377							$	62,206
Interest rate spread							6.68	%							6.40	%							5.93	%
Net interest margin⁽⁴⁾							7.48	%							7.23	%							6.92	%

⁽¹⁾	Yields and costs are annualized.
⁽²⁾	For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
⁽³⁾	Includes loans held for sale and nonaccrual loans.
⁽⁴⁾	Net interest margin represents net interest income divided by the average total interest earning assets.

COASTAL FINANCIAL CORPORATION
SELECTED AVERAGE BALANCES, YIELDS, AND RATES – BY SEGMENT – QUARTERLY
(Dollars in thousands; unaudited)

	For the Three Months Ended
	March 31, 2025						December 31, 2024						March 31, 2024
(dollars in thousands, unaudited)	Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾
Community Bank
Assets
Interest earning assets:
Loans receivable ⁽²⁾	$	1,881,636	$	30,292	6.53	%	$	1,892,298	$	31,043	6.53	%	$	1,871,414	$	30,052	6.46	%
Total interest earning assets		1,881,636		30,292	6.53			1,892,298		31,043	6.53			1,871,414		30,052	6.46
Liabilities
Interest bearing liabilities:
Interest bearing deposits		1,045,971		6,604	2.56	%		1,029,346		7,161	2.77	%		922,340		6,013	2.62	%
Intrabank liability		356,337		3,909	4.45			357,442		4,290	4.77			410,993		5,599	5.48
Total interest bearing liabilities		1,402,308		10,513	3.04			1,386,788		11,451	3.28			1,333,333		11,612	3.50
Noninterest bearing deposits		479,329						505,510						538,081
Net interest income			$	19,779					$	19,592					$	18,440
Net interest margin⁽³⁾					4.26	%					4.12	%					3.96	%

CCBX
Assets
Interest earning assets:
Loans receivable⁽²⁾⁽⁴⁾	$	1,630,088	$	67,855	16.88	%	$	1,527,178	$	64,532	16.81	%	$	1,265,857	$	55,839	17.74	%
Intrabank asset		554,781		6,085	4.45			583,776		7,007	4.78			598,299		8,151	5.48
Total interest earning assets		2,184,869		73,940	13.72			2,110,954		71,539	13.48			1,864,156		63,990	13.81
Liabilities
Interest bearing liabilities:
Interest bearing deposits		2,120,413		21,581	4.13	%		2,039,011		22,243	4.34	%		1,806,544		22,854	5.09	%
Total interest bearing liabilities		2,120,413		21,581	4.13			2,039,011		22,243	4.34			1,806,544		22,854	5.09
Noninterest bearing deposits		64,455						71,943						57,612
Net interest income			$	52,359					$	49,296					$	41,136
Net interest margin⁽³⁾					9.72	%					9.29	%					8.88	%
Net interest margin, net of BaaS loan expense⁽⁵⁾					3.68	%					3.50	%					3.24	%

	For the Three Months Ended
	March 31, 2025						December 31, 2024						March 31, 2024
(dollars in thousands, unaudited)	Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾
Treasury & Administration
Assets
Interest earning assets:
Interest earning deposits with other banks	$	553,393	$	6,070	4.45	%	$	501,654	$	6,021	4.77	%	$	350,868	$	4,780	5.48	%
Investment securities, available for sale ⁽⁶⁾		37		1	10.96			39		—	—			64,878		349	2.16
Investment securities, held to maturity ⁽⁶⁾		47,154		649	5.58			48,126		661	5.46			50,490		685	5.46
Other investments		11,757		40	1.38			10,783		191	7.05			10,262		37	1.45
Total interest earning assets		612,341		6,760	4.48	%		560,602		6,873	4.88	%		476,498		5,851	4.94	%
Liabilities
Interest bearing liabilities:
FHLB advances and borrowings	$	—		1	—	%	$	—		1	—	%	$	5		—	—	%
Subordinated debt		44,309		598	5.47	%		44,272		599	5.38	%		44,159		598	5.45	%
Junior subordinated debentures		3,592		61	6.89			3,591		67	7.42			3,590		71	7.95
Intrabank liability, net ⁽⁷⁾		198,444		2,176	4.45			226,334		2,717	4.78			187,306		2,552	5.48
Total interest bearing liabilities		246,345		2,836	4.67			274,197		3,384	4.91			235,060		3,221	5.51
Net interest income			$	3,924					$	3,489					$	2,630
Net interest margin⁽³⁾					2.60	%					2.48	%					2.22	%

⁽¹⁾	Yields and costs are annualized.
⁽²⁾	Includes loans held for sale and nonaccrual loans.
⁽³⁾	Net interest margin represents net interest income divided by the average total interest earning assets.
⁽⁴⁾	CCBX yield does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽⁵⁾	Net interest margin, net of BaaS loan expense, includes the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release.
⁽⁶⁾	For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
⁽⁷⁾	Intrabank assets and liabilities are consolidated for period calculations and presented as intrabank asset, net or intrabank liability, net in the table above.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance.

However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.

The following non-GAAP measures are presented to illustrate the impact of BaaS loan expense on net loan income and yield on loans and CCBX loans and the impact of BaaS loan expense on net interest income and net interest margin.

Loan income, net of BaaS loan expense, divided by average loans, is a non-GAAP measure that includes the impact BaaS loan expense on loan income and the yield on loans. The most directly comparable GAAP measure is yield on loans.

Net BaaS loan income divided by average CCBX loans is a non-GAAP measure that includes the impact BaaS loan expense on net BaaS loan income and the yield on CCBX loans. The most directly comparable GAAP measure is yield on CCBX loans.

Net interest income, net of BaaS loan expense, is a non-GAAP measure that includes the impact BaaS loan expense on net interest income. The most directly comparable GAAP measure is net interest income.

CCBX net interest margin, net of BaaS loan expense, is a non-GAAP measure that includes the impact of BaaS loan expense on net interest rate margin. The most directly comparable GAAP measure is CCBX net interest margin.

Reconciliations of the GAAP and non-GAAP measures are presented below.

CCBX	As of and for the Three Months Ended
(dollars in thousands; unaudited)	March 31 2025			December 31 2024			March 31 2024
Net BaaS loan income divided by average CCBX loans:
CCBX loan yield (GAAP)⁽¹⁾		16.88	%		16.81	%		17.74	%
Total average CCBX loans receivable	$	1,630,088		$	1,527,178		$	1,265,857
Interest and earned fee income on CCBX loans (GAAP)		67,855			64,532			55,839
BaaS loan expense		(32,507	)		(30,720	)		(26,107	)
Net BaaS loan income	$	35,348		$	33,812		$	29,732
Net BaaS loan income divided by average CCBX loans ⁽¹⁾		8.79	%		8.81	%		9.45	%
CCBX net interest margin, net of BaaS loan expense:
CCBX net interest margin ⁽¹⁾		9.72	%		9.29	%		8.88	%
CCBX earning assets		2,184,869			2,110,954			1,864,156
Net interest income (GAAP)		52,359			49,296			41,136
Less: BaaS loan expense		(32,507	)		(30,720	)		(26,107	)
Net interest income, net of BaaS loan expense	$	19,852		$	18,576		$	15,029
CCBX net interest margin, net of BaaS loan expense ⁽¹⁾		3.68	%		3.50	%		3.24	%

Consolidated	As of and for the Three Months Ended
(dollars in thousands; unaudited)	March 31 2025			December 31 2024			March 31 2024
Net interest margin, net of BaaS loan expense:
Net interest margin ⁽¹⁾		7.48	%		7.23	%		6.92	%
Earning assets		4,124,065			3,980,078			3,613,769
Net interest income (GAAP)		76,062			72,377			62,206
Less: BaaS loan expense		(32,507	)		(30,720	)		(26,107	)
Net interest income, net of BaaS loan expense	$	43,555		$	41,657		$	36,099
Net interest margin, net of BaaS loan expense ⁽¹⁾		4.28	%		4.16	%		4.02	%
Loan income net of BaaS loan expense divided by average loans:
Loan yield (GAAP)⁽¹⁾		11.33	%		11.12	%		11.01	%
Total average loans receivable	$	3,511,724		$	3,419,476		$	3,137,271
Interest and earned fee income on loans (GAAP)		98,147			95,575			85,891
BaaS loan expense		(32,507	)		(30,720	)		(26,107	)
Net loan income	$	65,640		$	64,855		$	59,784
Loan income, net of BaaS loan expense, divided by average loans ⁽¹⁾		7.58	%		7.55	%		7.66	%

⁽¹⁾	Annualized calculations for periods presented.

The following non-GAAP measure is presented to illustrate the impact of BaaS loan expense, BaaS fraud expense and reimbursement of expenses (BaaS) on noninterest expense. Certain noninterest expenses are reimbursed by our CCBX partners. In accordance with GAAP we recognize all expenses in noninterest expense and the reimbursement of expenses from our CCBX partner in noninterest income. This non-GAAP measure shows the portion of noninterest expenses that are reimbursed by partners to assist the understanding of how the increases in noninterest expense are related to expenses incurred for and reimbursed by CCBX partner. The most comparable GAAP measure is noninterest expense.

	As of and for the Three Months Ended
(dollars in thousands, unaudited)	March 31, 2025		December 31, 2024		March 31, 2024
Noninterest expense, net of reimbursement of expenses (BaaS)
Noninterest expense (GAAP)	$	71,989	$	67,411	$	56,509
Less: BaaS loan expense		32,507		30,720		26,107
Less: BaaS fraud expense		1,993		5,043		923
Less: Reimbursement of expenses		1,026		812		254
Noninterest expense, net of BaaS loan expense, BaaS fraud expense and reimbursement of expenses	$	36,463	$	30,836	$	29,225

APPENDIX A –

As of
March 31, 2025

Industry Concentration

We have a diversified loan portfolio, representing a wide variety of industries. Our major categories of loans are commercial real estate, consumer and other loans, residential real estate, commercial and industrial, and construction, land and land development loans. Together they represent $3.52 billion in outstanding loan balances. When combined with $2.14 billion in unused commitments the total of these categories is $5.67 billion.

Commercial real estate loans represent the largest segment of our loans, comprising 38.0% of our total balance of outstanding loans as of March 31, 2025. Unused commitments to extend credit represents an additional $29.4 million, and the combined total in commercial real estate loans represents $1.37 billion, or 24.2% of our total outstanding loans and loan commitments.

The following table summarizes our loan commitment by industry for our commercial real estate portfolio as of March 31, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments		Total Outstanding Balance & Available Commitment		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
Apartments	$	392,740	$	4,488	$	397,228	7.0	%	$	3,927	100
Hotel/Motel		149,859		61		149,920	2.6			6,516	23
Convenience Store		138,838		561		139,399	2.5			2,314	60
Office		121,346		7,183		128,529	2.3			1,379	88
Retail		101,118		744		101,862	1.8			972	104
Warehouse		103,813		—		103,813	1.8			1,790	58
Mixed use		91,025		5,220		96,245	1.7			1,167	78
Mini Storage		73,172		8,022		81,194	1.4			3,659	20
Strip Mall		43,678		—		43,678	0.8			6,240	7
Manufacturing		36,887		370		37,257	0.7			1,272	29
Groups < 0.70% of total		88,171		2,752		90,923	1.6			1,145	77
Total	$	1,340,647	$	29,401	$	1,370,048	24.2	%	$	2,082	644

Consumer loans comprise 34.5% of our total balance of outstanding loans as of March 31, 2025. Unused commitments to extend credit represents an additional $910.8 million, and the combined total in consumer and other loans represents $2.13 billion, or 37.5% of our total outstanding loans and loan commitments. As illustrated in the table below, our CCBX partners bring in a large number of mostly smaller dollar loans, resulting in an average consumer loan balance of just $1,000. CCBX consumer loans are underwritten to CCBX credit standards and underwriting of these loans is regularly tested, including quarterly testing for partners with portfolio balances greater than $10.0 million.

The following table summarizes our loan commitment by industry for our consumer and other loan portfolio as of March 31, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments ⁽¹⁾		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
CCBX consumer loans
Credit cards	$	532,775	$	868,969	$	1,401,744	24.7	%	$	1.7	314,203
Installment loans		654,844		29,027		683,871	12.1			0.8	776,669
Lines of credit		627		2		629	0.0			1.3	477
Other loans		14,555		—		14,555	0.3			0.1	185,894
Community bank consumer loans
Installment loans		1,846		3		1,849	0.0			65.9	28
Lines of credit		173		357		530	0.0			5.2	33
Other loans		11,307		12,400		23,707	0.4			34.6	327
Total	$	1,216,127	$	910,758	$	2,126,885	37.5	%	$	1.0	1,277,631

⁽¹⁾Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

Residential real estate loans comprise 13.9% of our total balance of outstanding loans as of March 31, 2025. Unused commitments to extend credit represents an additional $529.3 million, and the combined total in residential real estate loans represents $1.02 billion, or 18.0% of our total outstanding loans and loan commitments.

The following table summarizes our loan commitment by industry for our residential real estate loan portfolio as of March 31, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments ⁽¹⁾		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
CCBX residential real estate loans
Home equity line of credit	$	285,355	$	481,778	$	767,133	13.5	%	$	28	10,291
Community bank residential real estate loans
Closed end, secured by first liens		164,284		1,649		165,933	3.0			533	308
Home equity line of credit		27,931		45,016		72,947	1.3			115	242
Closed end, second liens		10,705		892		11,597	0.2			357	30
Total	$	488,275	$	529,335	$	1,017,610	18.0	%	$	45	10,871

⁽¹⁾Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits. CCBX home equity lines of credit are limited to a $375.0 million portfolio maximum.

Commercial and industrial loans comprise 8.9% of our total balance of outstanding loans as of March 31, 2025. Unused commitments to extend credit represents an additional $601.0 million, and the combined total in commercial and industrial loans represents $913.2 million, or 16.1% of our total outstanding loans and loan commitments. Included in commercial and industrial loans is $133.5 million in outstanding capital call lines, with an additional $514.9 million in available loan commitments which is limited to a $350.0 million portfolio maximum. Capital call lines are provided to venture capital firms through one of our CCBX BaaS clients. These loans are secured by the capital call rights and are individually underwritten to the Bank’s credit standards and the underwriting is reviewed by the Bank on every capital call line.

The following table summarizes our loan commitment by industry for our commercial and industrial loan portfolio as of March 31, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments ⁽¹⁾		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
CCBX C&I Loans
Capital Call Lines	$	133,466	$	514,864	$	648,330	11.4	%	$	1,019	131
Retail and other loans		29,702		21,736		51,438	0.9			10	3,002
Community bank C&I Loans
Construction/Contractor Services		30,768		31,642		62,410	1.1			152	202
Financial Institutions		48,648		—		48,648	0.9			4,054	12
Medical / Dental / Other Care		6,721		2,739		9,460	0.2			517	13
Manufacturing		5,611		4,022		9,633	0.2			156	36
Groups < 0.20% of total		57,356		25,969		83,325	1.4			222	258
Total	$	312,272	$	600,972	$	913,244	16.1	%	$	85	3,654

⁽¹⁾ Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

Construction, land and land development loans comprise 4.7% of our total balance of outstanding loans as of March 31, 2025. Unused commitments to extend credit represents an additional $72.5 million, and the combined total in construction, land and land development loans represents $239.0 million, or 4.2% of our total outstanding loans and loan commitments.

The following table details our loan commitment for our construction, land and land development portfolio as of March 31, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments		Total Outstanding Balance & Available Commitment		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
Commercial construction	$	96,716	$	41,654	$	138,370	2.4	%	$	6,908	14
Residential construction		39,375		22,253		61,628	1.1			2,316	17
Developed land loans		7,788		2		7,790	0.1			556	14
Undeveloped land loans		16,684		4,185		20,869	0.4			1,112	15
Land development		5,988		4,382		10,370	0.2			665	9
Total	$	166,551	$	72,476	$	239,027	4.2	%	$	2,414	69

Exposure and risk in our construction, land and land development portfolio increased compared to recent periods as indicated in the following table:

	Outstanding Balance as of
(dollars in thousands; unaudited)	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Commercial construction	$	96,716	$	83,216	$	97,792	$	110,372	$	102,099
Residential construction		39,375		40,940		35,822		34,652		28,751
Undeveloped land loans		16,684		8,665		8,606		8,372		8,190
Developed land loans		7,788		8,305		14,863		13,954		14,307
Land development		5,988		7,072		5,968		5,714		7,515
Total	$	166,551	$	148,198	$	163,051	$	173,064	$	160,862

Commitments to extend credit total $2.14 billion at March 31, 2025, however we do not anticipate our customers using the $2.14 billion that is showing as available due to CCBX partner and portfolio limits.

The following table presents outstanding commitments to extend credit as of March 31, 2025:

Consolidated
(dollars in thousands; unaudited)	As of March 31, 2025
Commitments to extend credit:
Commercial and industrial loans	$	86,108
Commercial and industrial loans – capital call lines		514,864
Construction – commercial real estate loans		50,221
Construction – residential real estate loans		22,255
Residential real estate loans		529,335
Commercial real estate loans		29,401
Credit cards		868,969
Consumer and other loans		41,789
Total commitments to extend credit	$	2,142,942

We have individual CCBX partner portfolio limits with our each of our partners to manage loan concentration risk, liquidity risk, and counter-party partner risk. For example, as of March 31, 2025, capital call lines outstanding balance totaled $133.5 million and, while commitments totaled $514.9 million, the commitments are limited to a maximum of $350.0 million by agreement with the partner. If a CCBX partner goes over their individual limit, it would be a breach of their contract and the Bank may impose penalties and would have the choice to fund or not fund the loan.

See the table below for CCBX portfolio maximums and related available commitments:

CCBX
(dollars in thousands; unaudited)	Balance			Percent of CCBX loans receivable		Available Commitments ⁽¹⁾		Maximum Portfolio Size		Cash Reserve/Pledge Account Amount ⁽²⁾
Commercial and industrial loans:
Capital call lines	$	133,466		8.1	%	$	514,864	$	350,000	$	—
All other commercial & industrial loans		29,702		1.8			21,736		475,720		541
Real estate loans:
Home equity lines of credit⁽³⁾		285,355		17.3			481,778		375,000		33,436
Consumer and other loans:
Credit cards – cash secured		339					—				—
Credit cards – unsecured		532,436					868,969				27,589
Credit cards – total		532,775		32.2			868,969		850,000		27,589
Installment loans – cash secured		127,426					29,027				—
Installment loans – unsecured		527,418					—				1,175
Installment loans – total		654,844		39.7			29,027		1,814,541		1,175
Other consumer and other loans		15,182		0.9			2		4,739		419
Gross CCBX loans receivable		1,651,324		100.0	%		1,916,376		3,870,000	$	63,160
Net deferred origination fees		(498	)
Loans receivable	$	1,650,826

(1)	Remaining commitment available, net of outstanding balance.
(2)	Balances are as of April 9, 2025.
(3)	These home equity lines of credit are secured by residential real estate and are accessed by using a credit card, but are classified as 1-4 family residential properties per regulatory guidelines.

APPENDIX B –

As of
March 31, 2025

CCBX – BaaS Reporting Information

During the quarter ended March 31, 2025, $53.6 million was recorded in BaaS credit enhancements related to the provision for credit losses – loans and reserve for unfunded commitments for CCBX partner loans and negative deposit accounts. Agreements with our CCBX partners provide for a credit enhancement provided by the partner which protects the Bank by indemnifying or reimbursing incurred losses. In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans, unfunded commitments and negative deposit accounts. When the provision for credit losses – loans and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements) in recognition of the CCBX partner legal commitment to indemnify or reimburse losses. The credit enhancement asset is relieved as credit enhancement payments and recoveries are received from the CCBX partner or taken from the partner’s cash reserve account. Agreements with our CCBX partners also provide protection to the Bank from fraud by indemnifying or reimbursing incurred fraud losses. BaaS fraud includes non-credit fraud losses on loans and deposits originated through partners, generally fraud losses related to loans are comprised primarily of first payment defaults. Fraud losses are recorded when incurred as losses in noninterest expense, and the enhancement received from the CCBX partner is recorded in noninterest income, resulting in a net impact of zero to the income statement. Many CCBX partners also pledge a cash reserve account at the Bank which the Bank can collect from when losses occur that is then replenished by the partner on a regular interval. Although agreements with our CCBX partners provide for credit enhancements that provide protection to the Bank from credit and fraud losses by indemnifying or reimbursing incurred credit and fraud losses, if our partner is unable to fulfill their contracted obligation then the bank would be exposed to additional loan and deposit losses if the cash flows on the loans were not sufficient to fund the reimbursement of loan losses, as a result of this counterparty risk. If a CCBX partner does not replenish their cash reserve account the Bank may consider an alternative plan for funding the cash reserve. This may involve the possibility of adjusting the funding amounts or timelines to better align with the partner’s specific situation. If a mutually agreeable funding plan is not agreed to, the Bank could declare the agreement in default, take over servicing and cease paying the partner for servicing the loan and providing credit enhancements. The Bank would evaluate any remaining credit enhancement asset from the CCBX partner in the event the partner failed to determine if a write-off is appropriate. If a write-off occurs, the Bank would retain the full yield and any fee income on the loan portfolio going forward, and our BaaS loan expense would decrease once default occurred and payments to the CCBX partner were stopped.

The Bank records contractual interest earned from the borrower on CCBX partner loans in interest income, adjusted for origination costs which are paid or payable to the CCBX partner. BaaS loan expense represents the amount paid or payable to partners for credit and fraud enhancements and originating and servicing CCBX loans. To determine net revenue (Net BaaS loan income) earned from CCBX loan relationships, the Bank takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income (a reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release) which can be compared to interest income on the Company’s community bank loans.

The following table illustrates how CCBX partner loan income and expenses are recorded in the financial statements:

Loan income and related loan expense	Three Months Ended
(dollars in thousands; unaudited)	March 31, 2025			December 31, 2024			March 31, 2024
Yield on loans ⁽¹⁾		16.88	%		16.81	%		17.74	%
BaaS loan interest income	$	67,855		$	64,532		$	55,839
Less: BaaS loan expense		32,507			30,720			26,107
Net BaaS loan income⁽²⁾	$	35,348		$	33,812		$	29,732
Net BaaS loan income divided by average BaaS loans ⁽¹⁾⁽²⁾		8.79	%		8.81	%		9.45	%

(1) Annualized calculation for quarterly periods shown.
(2) A reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release.

An increase in average CCBX loans receivable resulted in increased interest income on CCBX loans during the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024. The increase in average CCBX loans receivable was primarily due to our strategy to optimize the CCBX loan portfolio and strengthen our balance sheet through originating higher quality new loans with enhanced credit standards. These higher quality loans also have lower stated rates and expected losses than some of our CCBX loans historically. Our yield on loans and our net interest margin net of BaaS loan expense slightly increased, as our CCBX portfolio is leveling out. Current loan sales and new loan growth are at more similar interest rates compared to prior periods when we were selling loans with higher risk and higher interest rates and replacing them with higher quality lower interest rate loans. We continue to reposition ourselves by managing CCBX credit and concentration levels in an effort to optimize our loan portfolio and also generate off balance sheet fee income. Growth in CCBX loans and deposits has resulted in increases in interest income and expense for the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024.

The following tables are a summary of the interest components, direct fees and expenses of BaaS for the periods indicated and are not inclusive of all income and expense related to BaaS.

Interest income	Three Months Ended
(dollars in thousands; unaudited)	March 31, 2025		December 31, 2024		March 31, 2024
Loan interest income	$	67,855	$	64,532	$	55,839
Total BaaS interest income	$	67,855	$	64,532	$	55,839

Interest expense	Three Months Ended
(dollars in thousands; unaudited)	March 31, 2025		December 31, 2024		March 31, 2024
BaaS interest expense	$	21,581	$	22,243	$	22,854
Total BaaS interest expense	$	21,581	$	22,243	$	22,854

BaaS income	Three Months Ended
(dollars in thousands; unaudited)	March 31, 2025		December 31, 2024		March 31, 2024
BaaS program income:
Servicing and other BaaS fees	$	1,419	$	1,043	$	1,131
Transaction and interchange fees		3,833		3,699		2,661
Reimbursement of expenses		1,026		812		254
Total BaaS program income		6,278		5,554		4,046
BaaS indemnification income:
BaaS credit enhancements		53,648		62,097		79,808
BaaS fraud enhancements		1,993		5,043		923
BaaS indemnification income		55,641		67,140		80,731
Total noninterest BaaS income	$	61,919	$	72,694	$	84,777

Servicing and other BaaS fees increased $376,000 and transaction and interchange fees increased $134,000 in the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024. We expect servicing and other BaaS fees to be higher when we are bringing new partners on and then to decrease when transaction and interchange fees increase as partner activity grows and contracted minimum fees are replaced with these recurring fees when they exceed the minimum fees. Increases in BaaS reimbursement of fees offsets increases in noninterest expense from BaaS expenses covered by CCBX partners.

BaaS loan and fraud expense:	Three Months Ended
(dollars in thousands; unaudited)	March 31, 2025		December 31, 2024		March 31, 2024
BaaS loan expense	$	32,507	$	30,720	$	26,107
BaaS fraud expense		1,993		5,043		923
Total BaaS loan and fraud expense	$	34,500	$	35,763	$	27,030

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/26a7ee4c-99dc-493e-8703-90dc906581e2

April 29, 2025 10:42 am

Sound Group Inc. Files 2024 Annual Report on Form 20-F

SINGAPORE, April 29, 2025 (GLOBE NEWSWIRE) — Sound Group Inc. (“Sound Group” or the “Company”) (NASDAQ: SOGP), a global audio-centric social and entertainment company, today announced that it filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the Securities and Exchange Commission (the “SEC”) on April 29, 2025 (U.S. Time). The annual report, which contains the Company’s audited consolidated statements, can be accessed on the SEC’s website at http://www.sec.gov and the Company’s investor relations website at https://ir.soundgroupinc.com.

The Company will provide a hard copy of its annual report, free of charge, to its shareholders and ADS holders upon request. Requests should be directed to [email protected] or the Investor Relations Department at Sound Group Inc., 108 Robinson Road, #09-01 Singapore 068900.

About Sound Group Inc.

Sound Group Inc. is a global audio-centric social and entertainment company driven by a clear mission and vision: building the world’s largest audio platform to better connect and communicate. The Company is dedicated to shaping a future where audio not only bridges gaps but also amplifies human connection through the power of sound. Sound Group Inc. has been listed on Nasdaq since January 2020.

For more information, please visit: https://ir.soundgroupinc.com/

For investor and media inquiries, please contact:

Sound Group Inc.
IR Department
E-mail: [email protected]

Piacente Financial Communications
Jenny Cai
E-mail: [email protected]

April 29, 2025 10:42 am

SEALSQ’s Quantum-Resistant Secure Microcontrollers Enhance Smart Grid Resilience Amid Rising Environmental and Cyber Threats

Geneva, Switzerland, April 29, 2025 (GLOBE NEWSWIRE) —

SEALSQ Corp (NASDAQ: LAES) (“SEALSQ” or “Company”), a company that focuses on developing and selling Semiconductors, PKI, and Post-Quantum technology hardware and software products, today highlighted how its quantum-resistant secure microcontrollers can strengthen the resilience of IoT connected devices and networks including electrical grids. The massive blackout that disrupted Spain and Portugal on April 28, 2025, which was triggered by extreme atmospheric conditions, underscores the urgent need for secure, reliable IoT solutions to safeguard critical infrastructure. By securing the IoT ecosystem, SEALSQ’s technology ensures that the data driving smart grids remains trustworthy, even under extreme environmental conditions or cyber threats.

According to Spain’s grid operator, Red Eléctrica (REE), the blackout resulted from temperature-induced vibrations in high-voltage transmission lines (400kV), causing synchronization failures between Spain and France’s electrical systems. This cascade led to the loss of 15 gigawatts of power in seconds, affecting millions of customers. Such environmental disruptions, combined with growing cyber threats, highlight vulnerabilities in aging grid infrastructure.

SEALSQ’s post-quantum secure microcontrollers address these challenges by securing IoT sensors and monitoring devices deployed across electrical networks. These chips, embedded in devices like substations and transmission line sensors, ensure the authenticity, integrity, and confidentiality of critical environmental and operational data, such as temperature, voltage, and oscillations. Equipped with quantum-resistant cryptographic algorithms, SEALSQ’s technology protects against next-generation cyberattacks, including those enabled by quantum computing, ensuring grid operators can trust real-time data for decision-making.

“IoT sensors are transforming smart grids by enabling real-time monitoring and automated fault detection,” said Carlos Moreira, CEO of SEALSQ. “However, their effectiveness depends on secure data transmission. Our quantum-resistant microcontrollers safeguard these devices, empowering grid operators to detect anomalies like temperature swings or synchronization issues early and act before failures escalate.”

By integrating SEALSQ’s secure microcontrollers, grid operators can:

Ensure secure, tamper-proof data collection from IoT sensors monitoring environmental and grid parameters.
Protect against cyberattacks that could manipulate or disrupt critical grid communications.
Enable rapid, automated responses to anomalies, such as isolating faulty segments to prevent cascading failures.
Support the integration of renewable energy sources into smart grids by securing data at interconnection points.

As smart grids evolve to incorporate renewable energy and advanced analytics, SEALSQ’s secure IoT architecture enhances reliability, protects against cyber threats, and supports system reconfiguration to minimize power losses. This is critical for maintaining voltage stability and operational efficiency in volatile conditions.

SEALSQ remains committed to protecting global critical infrastructure with cutting-edge, quantum-resistant solutions that address the challenges of an increasingly connected and unpredictable world.

About SEALSQ:

SEALSQ is a leading innovator in Post-Quantum Technology hardware and software solutions. Our technology seamlessly integrates Semiconductors, PKI (Public Key Infrastructure), and Provisioning Services, with a strategic emphasis on developing state-of-the-art Quantum Resistant Cryptography and Semiconductors designed to address the urgent security challenges posed by quantum computing. As quantum computers advance, traditional cryptographic methods like RSA and Elliptic Curve Cryptography (ECC) are increasingly vulnerable.

SEALSQ is pioneering the development of Post-Quantum Semiconductors that provide robust, future-proof protection for sensitive data across a wide range of applications, including Multi-Factor Authentication tokens, Smart Energy, Medical and Healthcare Systems, Defense, IT Network Infrastructure, Automotive, and Industrial Automation and Control Systems. By embedding Post-Quantum Cryptography into our semiconductor solutions, SEALSQ ensures that organizations stay protected against quantum threats. Our products are engineered to safeguard critical systems, enhancing resilience and security across diverse industries.

For more information on our Post-Quantum Semiconductors and security solutions, please visit www.sealsq.com.

Forward-Looking Statements

This communication expressly or implicitly contains certain forward-looking statements concerning SEALSQ Corp and its businesses. Forward-looking statements include statements regarding our business strategy, financial performance, results of operations, market data, events or developments that we expect or anticipates will occur in the future, as well as any other statements which are not historical facts. Although we believe that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include SEALSQ’s ability to continue beneficial transactions with material parties, including a limited number of significant customers; market demand and semiconductor industry conditions; and the risks discussed in SEALSQ’s filings with the SEC. Risks and uncertainties are further described in reports filed by SEALSQ with the SEC.

SEALSQ Corp is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

SEALSQ Corp.
Carlos Moreira
Chairman & CEO
Tel: +41 22 594 3000
[email protected]

SEALSQ Investor Relations (US)
The Equity Group Inc.
Lena Cati
Tel: +1 212 836-9611
[email protected]

April 29, 2025 10:41 am

Tyler Technologies to Participate in May and June Investor Conferences

Tyler Technologies to Participate in May and June Investor Conferences

PLANO, Texas–(BUSINESS WIRE)–Tyler Technologies, Inc. (NYSE: TYL) will participate in six investor conferences in May and June 2025.

Conference

Date

Time and Place

Participant(s)

20th Annual Needham Technology, Media & Consumer 1×1

Conference

May 8

1×1 meetings by appointment

Virtual

Brian Miller, executive vice president and chief financial officer

Robert Goulding, vice president, strategic finance and investor relations

J.P. Morgan Annual Global Technology, Media, and Communications Conference

May 15

8:00 a.m. ET fireside chat + 1×1 meetings by appointment

Westin Boston Seaport District Hotel

Boston, Mass.

Brian Miller

Robert Goulding

Evercore Software 1×1 Day

May 29

1×1 meetings by appointment

Evercore ISI Offices

New York City, N.Y.

Brian Miller

William Blair Annual Growth Stock Conference

June 3

12:00 p.m. CT

presentation + 1×1 meetings by appointment

Loews Chicago Hotel

Chicago, Ill.

Brian Miller

Robert Goulding

Baird Global Consumer,

Technology & Services Conference

June 4

10:15 a.m. ET

fireside chat + 1×1 meetings by appointment

InterContinental Hotel

New York Barclay

New York, N.Y.

Brian Miller

Hala Elsherbini, senior director, investor relations

D.A. Davidson Annual Consumer & Technology Conference

June 10

1×1 meetings by appointment

Four Seasons

Hotel Nashville

Nashville, Tenn.

Brian Miller

Robert Goulding

Live webcasts of the three fireside chats and the Blair presentation will be accessible at: https://investors.tylertech.com/events-and-presentations/default.aspx

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) is a leading provider of integrated software and technology services for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 45,000 successful installations across 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

#TYL_Financial

View source version on businesswire.com: https://www.businesswire.com/news/home/20250429569547/en/

Hala Elsherbini

Senior Director, Investor Relations

Tyler Technologies, Inc.

972.713.3770

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Data Management Technology State/Local Public Policy/Government Software

MEDIA:

Logo

April 29, 2025 10:41 am

Appian Embeds Agentic AI into Business Processes to Deliver Scalable, Governable Enterprise Value

PR Newswire

Introducing new AI features and Data Fabric enhancements to deliver real-time insights and measurable impact.

DENVER
, April 29, 2025 /PRNewswire/ — Appian (NASDAQ: APPN) today announced agentic AI platform enhancements to help organizations build, deploy, and scale intelligent process applications. As the Process Company, the Appian Platform provides AI-powered solutions to orchestrate and transform critical business processes. This release introduces the beta launch of Agent Studio and the general availability of AI Document Center. Additional enhancements include expanded data fabric support for document management and semantic search across data and documents.

As the Process Company, Appian provides AI-powered solutions to orchestrate and transform critical business processes.

Agentic AI makes business processes smarter and faster

Appian has embedded AI digital workers operating in process for years. Now with Agent Studio, Appian AI agents are more powerful and governable than ever. Agent Studio enables users to design and deploy AI agents with greater autonomy and contextual awareness. These AI agents can reason through complex, multi-step tasks. They can also interact with multiple systems to update records, send emails, and respond dynamically to new inputs. Agent Studio allows developers to create intelligent agents that not only execute actions but also make informed decisions based on real-time data and business logic.

Users can quickly and easily create agents with AI Document Center — an all-in-one application for enterprise-grade intelligent document processing. AI Document Center is designed to handle complex document formats with high extraction accuracy and scalability for enterprise workloads. Appian customer, Century Fire Protection, used AI Document Center to automate their accounts payable with AI, reducing invoice operating time by 36%.

“Adding Appian AI into Century’s AP management workflow has resulted in a more modern, controlled and efficient process, leading to significant benefits,” said Alex Polyakman, CFO of Century Fire Protection.

Smart search leverages AI-driven semantic search to enhance record retrieval. Smart search allows you to search across your entire data fabric, including text fields or documents attached to a record—all at enterprise scale. Smart search goes beyond keyword matching by interpreting intent, uncovering connections, detecting patterns, and surfacing related records.

In addition to high-availability, generative AI Agents can now be used in autoscale processes, helping enterprises stay responsive and efficient even when demand increases. Autoscale is an Appian Cloud capability that dynamically adjusts process execution capacity based on demand. Specifically designed for high-volume, high-throughput automation, process autoscale delivers 10-100x the power without over-provisioning resources. Now, organizations can power their high-volume, high-value generative AI use cases with enterprise-grade AI.

Other platform enhancements to data fabric and total experience include:

Data fabric now includes native support for documents. Organizations can manage, relate, and secure documents using record types, eliminating the need for folder-based organization and allowing developers to create more document-centric applications.
Incremental syncs support dynamic data environments. Data fabric now supports external data sync as frequently as every 15 minutes and up to 20 million rows per record to ensure current, responsive applications.
Form headers and wizards accelerate beautiful form design. Appian UIs now automatically incorporate common form header, wizard functionality, and recommend modern UX patterns. Forms generated from data fabric will see the most improvements.

“AI works best in a process. Appian’s process orchestration and data fabric provide the foundation needed to get real value out of AI while maintaining data security,” said Michael Beckley, CTO and Founder, Appian.

Appian is the Process Company, focused on improving processes that define a business—from how it operates to how it serves customers and delivers value. By integrating AI into processes, Appian gives AI purpose, governance, and accountability—all essential to delivering its value. Learn how AI can be part of your processes.

About Appian

Appian is The Process Company. We deliver a software platform that helps organizations run better processes that reduce costs, improve customer experiences, and gain a strategic edge. Committed to client success, we serve many of the world’s largest companies across industries. For more information, visit appian.com. [Nasdaq: APPN]

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SOURCE Appian

April 29, 2025 10:40 am

FibroBiologics Presenting at the ThymUS 2025 Meeting

HOUSTON, April 29, 2025 (GLOBE NEWSWIRE) — FibroBiologics, Inc. (Nasdaq: FBLG) (“FibroBiologics”), a clinical-stage biotechnology company with 240+ patents issued and pending with a focus on the development of therapeutics and potential cures for chronic diseases using fibroblasts and fibroblast-derived materials, today announced that Simon Gebremeskel, research scientist at FibroBiologics, is presenting a poster at the ThymUS 2025 Meeting taking place in Lihue, Kaua’i Hawaii from April 27 – May 1, 2025. Founded in 2001, ThymUS brings together international researchers working on thymus and T-cell biology.

The abstract entitled “A rapid and scalable thymus organoid development method for generating functional T cells” presents progress on the development of a transplantable and scalable artificial thymus organoid. The poster can be viewed on FibroBiologics’ website here.

“Our latest research demonstrates the potential of using an artificial thymus organoid to recover the lost functionality of the thymus, an organ that is the T-cell teaching center of the immune system,” said Hamid Khoja, Ph.D., Chief Scientific Officer of FibroBiologics. “Organoids are transforming how we study and develop potential treatments for multiple chronic diseases. The unique immunomodulatory properties of fibroblasts offer promising potential in ensuring the functionality and durability of therapeutic organoids.”

For more information, please visit FibroBiologics’ website or email FibroBiologics at: [email protected].

Cautionary Statement Regarding Forward-Looking Statements

This communication contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning the potential and capabilities of fibroblasts and artificial thymus organoids to recover the lost functionality of the thymus. These forward-looking statements are based on FibroBiologics’ management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. When used in this communication, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside FibroBiologics’ management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including those set forth under the caption “Risk Factors” and elsewhere in FibroBiologics’ annual, quarterly and current reports (i.e., Form 10-K, Form 10-Q and Form 8-K) as filed or furnished with the SEC and any subsequent public filings. Copies are available on the SEC’s website, www.sec.gov. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (a) expectations regarding the initiation, progress and expected results of our R&D efforts and preclinical studies; (b) the unpredictable relationship between R&D and preclinical results and clinical study results; (c) risks related to FibroBiologics’ liquidity and its ability to maintain capital resources sufficient to conduct its business, and (d) the ability of FibroBiologics to successfully prosecute its patent applications. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and FibroBiologics assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. FibroBiologics gives no assurance that it will achieve its expectations.

About FibroBiologics

Based in Houston, FibroBiologics is a clinical-stage biotechnology company developing a pipeline of treatments and seeking potential cures for chronic diseases using fibroblast cells and fibroblast-derived materials. FibroBiologics holds 240+ US and internationally issued patents/patents pending across various clinical pathways, including wound healing, multiple sclerosis, disc degeneration, psoriasis, orthopedics, human longevity, and cancer. FibroBiologics represents the next generation of medical advancement in cell therapy and tissue regeneration. For more information, visit www.FibroBiologics.com.

General Inquiries:
[email protected]

Investor Relations:
Nic Johnson
Russo Partners
(212) 845-4242
[email protected]

Media Contact:
Liz Phillips
Russo Partners
(347) 956-7697
[email protected]

April 29, 2025 10:39 am

Updated GrabAGun Filing Identifies Additional Director Nominees to Join Donald Trump Jr. on Planned GrabAGun Board

Updated GrabAGun Filing Identifies Additional Director Nominees to Join Donald Trump Jr. on Planned GrabAGun Board

2A Sector Executives, Investors, Podcasters, Influencers, Former NRA leadership and More Comprise GrabAGun Digital Board Nominees

GrabAGun and Colombier Acquisition Corp. II File Updated Form S-4 with the SEC

COPPELL, Texas & PALM BEACH, Fla.–(BUSINESS WIRE)–
Metroplex Trading Company, LLC (d.b.a. GrabAGun.com) (the “Company” or “GrabAGun”), an online retailer of firearms, ammunition and related accessories, and Colombier Acquisition Corp. II (“Colombier II”) (NYSE: CLBR), a special purpose acquisition company led by Omeed Malik, a distinguished entrepreneur and investor with extensive experience in digital marketplace transactions, today announced the filing of the first amendment to the registration statement on Form S-4 (as may be further amended, the “Registration Statement”) with the U.S. Securities and Exchange Commission (“SEC”), which includes a preliminary proxy statement/prospectus in connection with the proposed business combination (“Business Combination” or “Transaction”) that is the subject of the Business Combination Agreement entered into by Colombier II and GrabAGun on January 6, 2025 (“Merger Agreement”).

The updated Registration Statement, which marks a further milestone in the Business Combination transaction, was filed by GrabAGun Digital Holdings Inc. (“GrabAGun Digital”), which will be the post-Business Combination public company.

Contained in the Registration Statement is a proposal identifying two additional distinguished individuals who will be nominated to serve, alongside Donald Trump Jr., as members of the post-Transaction public company board of directors (“GrabAGun Digital Board”) – Andrew Keegan, a finance executive with decades of experience in the outdoor products space (including nearly ten years at Vista Outdoor Inc., a portfolio of multiple brands across the outdoor recreation and shooting sports industry encompassing the 2A business of Kinetic Group), and Kelly Reisdorf, Chief Executive Officer of USA Shooting Inc., the national governing body for Olympic shooting sports, who also served various roles at Vista Outdoor Inc. while Vista was a NYSE-listed public company.

These additional GrabAGun Digital Board nominees further strengthen GrabAGun Digital’s anticipated leadership and underscore its mission to protect constitutional freedoms while scaling a next-generation e-commerce platform targeting a large, growing segment of the consumer marketplace.

In connection with the Business Combination, the parties will apply for the securities of GrabAGun Digital to be listed on the New York Stock Exchange (“NYSE”) under the proposed symbols “PEW” and “PEWW”.

GrabAGun Digital Board Nominees

In addition to Marc Nemati, GrabAGun’s President and Chief Executive Officer, and Matthew Vittitow, GrabAGun’s Chief Operating Officer, each of whom will hold equivalent positions with GrabAGun Digital, the Registration Statement identifies the following individuals as nominees to the post-closing GrabAGun Digital Board, subject to approval at a special shareholder meeting Colombier II will convene prior to the Transaction closing:

Donald Trump Jr. has served as a Partner at 1789 Capital, an investment firm that provides financing to companies in the budding EIG economy, since November 2024. Mr. Trump has served as an Executive Vice President at The Trump Organization since September 2001, where he helps oversee the company’s extensive real estate portfolio, media and other business interests around the globe. Over the course of his career, Mr. Trump has played a critical role in many of the company’s most successful real estate development projects, including the Trump International Hotel & Tower in Chicago, Trump International Hotel in Washington D.C. and many others. Mr. Trump’s involvement in those projects was extensive, ranging from the initial deal evaluation stage, analysis and pre-development planning to construction, branding, marketing, operations, sales, and leasing. Mr. Trump has also spearheaded efforts to further expand the Trump brand globally and has overseen large segments of The Trump Organization’s commercial leasing business involving properties such as Trump Tower on Fifth Avenue and 40 Wall Street in downtown Manhattan. Since December 2024, Mr. Trump has served on the board of directors of PSQ Holdings, Inc. (NYSE: PSQH). Since December 2024, Mr. Trump has served as a consultant to GrabAGun. Since March 2024, Mr. Trump has served on the board of directors of Trump Media & Technology Group Corp. (NASDAQ: DJT). In addition to his real estate interests, Mr. Trump is an accomplished and sought-after speaker. He has spoken extensively throughout the United States and around the world and maintains an influential social media presence. He was also featured as an advisor on the highly acclaimed NBC shows “The Apprentice” and “The Celebrity Apprentice.” Mr. Trump received his bachelor’s degree in Finance and Real Estate from the Wharton School of Finance at the University of Pennsylvania.

Andrew J. Keegan has served since November 2024 as the Chief Financial Officer of Revelyst Inc., a designer and manufacturer of outdoor products. Until its acquisition by a private equity firm in January 2025, Revelyst was a New York Stock Exchange-listed company. Revelyst was spun off in November 2024 from Vista Outdoor Inc., where Mr. Keegan previously served in various roles from February 2015 to November 2024. Vista Outdoor was a New York Stock Exchange-listed company with a portfolio of multiple brands across the outdoor recreation and shooting sports industry. He served as the Chief Financial Officer of Vista Outdoor from November 2022 to November 2024. Mr. Keegan served as the Director of SEC Reporting at Alliant Techsystems Inc. (ATK), the predecessor of Vista Outdoor, from October 2012 to February 2015. Mr. Keegan began his career as an accountant at Deloitte in its audit department from 2006 to 2012, auditing both publicly traded and privately held companies. Mr. Keegan received his bachelor’s degree in accounting and management from St. John’s University.

Kelly Reisdorf has served as the Chief Executive Officer of USA Shooting Inc., the national governing body for Olympic shooting sports under the United States Olympic & Paralympic Committee (USOPC), since March 2024. In this capacity, she oversees all strategic, operational, and financial aspects of the organization, including elite athlete development programs, national team operations, revenue generation, stakeholder relations, and compliance with USOPC and international federation requirements. Ms. Reisdorf has served as the Chief Executive Officer of Atlas Advisory Group LLC, a strategic communications firm specializing in crisis support, special situations, shareholder activist scenarios, corporate governance, and restructuring/turnaround activities since December 2022 and is a founder of the firm. From April 2015 to December 2022, Ms. Reisdorf served various roles at Vista Outdoor Inc., which was a New York Stock Exchange-listed company with a portfolio of multiple brands across the outdoor recreation and shooting sports industry. She served as the Chief Communications Officer and General Manager of Vista Outdoor from April 2018 to December 2022, overseeing communications, government affairs, and investor relations functions. Ms. Reisdorf holds a Bachelor of Arts in Business Administration from Bethel University and a Master of Business Administration with a concentration in Accounting from Capella University. She is currently pursuing a Ph.D. in Public Policy at Liberty University, where her doctoral research focuses on Chinese Affairs and their implications for global policy.

Colion Noir is an attorney, Second Amendment rights advocate, and influential media personality. Mr. Noir’s legal practice in Texas is focused on Second Amendment rights. Mr. Noir’s commentary on gun rights led to his collaboration with the National Rifle Association (“NRA”) in 2013. In May 2014, he hosted the web series “NOIR,” combining his legal expertise with his passion for firearms to engage a broad audience. Beyond his work with the NRA, Mr. Noir has established a significant digital presence. Through his YouTube channel, he provides insightful commentary on firearm-related topics, legal analyses, and discussions on constitutional rights. Mr. Noir’s contributions extend to traditional media as well. His media appearances include guest spots on platforms such as “The Joe Rogan Experience” and HBO’s “Real Time with Bill Maher,” where he discusses topics ranging from gun rights to broader social issues. Mr. Noir received his Bachelor of Arts in Political Science from the University of Houston, followed by a Juris Doctor from the Thurgood Marshall School of Law at Texas Southern University.

Chris Cox has been the President of Capitol 6 Advisors LLC, a consulting firm that provides long-range strategic public policy and public affairs consulting, crisis management and brand positioning services, since July 2019 and the President of Caliber Contact, a company providing campaign services, since April 2023. Mr. Cox served various roles at the National Rifle Association of America (“NRA”), most recently as the Executive Director of the NRA’s Institute for Legislative Action from April 2002 to July 2019. Mr. Cox has appeared on a variety of national news programs and networks, including Fox News Sunday, Tucker Carlson Tonight, Hannity, The Kelly File with Megyn Kelly, This Week with George Stephanopoulos, CNN, ABC, NBC and CBS. He has been published in The New York Times, the Washington Post, and other publications and was a primetime speaker during the 2016 Republican National Convention. Mr. Cox is a graduate of Rhodes College in Memphis.

Blake Masters has been a director of PSQ Holdings, Inc. since July 2023. Mr. Masters is a successful entrepreneur and venture capital investor. Mr. Masters co-founded Judicata, Inc., a legal intelligence software company, in 2012 and served as its co-founder until 2014. From February 2018 to March 2022, Mr. Masters was the Chief Operating Officer of Thiel Capital, an investment firm that specializes in the technology sector. From July 2015 to March 2022, Mr. Masters also served as the President of the Thiel Foundation, a nonprofit that promotes science and innovation, and currently serves on the foundation’s board of directors. Mr. Masters was Arizona’s GOP nominee for the U.S. Senate in 2022. In 2014, Mr. Masters co-authored with Peter Thiel, the book “Zero to One: Notes on Startups, or How to Build the Future,” which quickly became a #1 New York Times bestseller in the U.S., selling more than 3 million copies globally. Mr. Masters received his J.D. from Stanford Law School and his B.S. degree in Political Science from Stanford University.

Dusty Wunderlich has been a director of PSQ Holdings, Inc. (NYSE: PSQH) (“PublicSq”) since March 2024 and has served as its Chief Strategy Officer since June 2024. Prior to joining the board of PublicSq, he served as Chief Executive Officer and a director of Credova Holdings, Inc. (“Credova”), a provider of point-of-sale financing solutions, from September 2020 until its acquisition by PublicSq in March 2024. Mr. Wunderlich was managing member of Red Rock Armory, LLC, an investment firm, from January 2021 until March 2024, and was managing member of ALMC, LLC, a consulting firm, from May 2017 to August 2020. Prior to that, Mr. Wunderlich served as Chief Executive Officer of Bristlecone, Inc., a provider of point-of-sale financing solutions, from 2014 to 2017, and as Principal of DCA Partners, a boutique investment banking and private equity firm, from 2011 to 2013. Mr. Wunderlich received both a bachelor’s degree in finance and economics and an MBA from Missouri State University.

Background Information on the Business Combination

On January 6, 2025, GrabAGun, GrabAGun Digital and Colombier II entered into the Merger Agreement to consummate a business combination transaction, as further described in the Registration Statement, which the parties expect to be completed in the summer of 2025, subject to regulatory approvals and other customary conditions. In connection with the closing of the Transaction, the parties will apply to list the securities of the resulting public company, named GrabAGun Digital Holdings Inc., on the NYSE under the proposed symbols “PEW” and “PEWW”. Colombier II shares currently trade on the NYSE under the symbol “CLBR”.

Additional information about the proposed Business Combination can be found in the Registration Statement filed by GrabAGun Digital Holdings Inc., and in other public filings of Colombier II, which are available, free of charge, on the SEC’s website at sec.gov.

In connection with the Business Combination, Ellenoff Grossman & Schole LLP is serving as legal counsel to Colombier II and Olshan Frome Wolosky LLP is serving as legal counsel to GrabAGun.

About GrabAGun

We are defenders. We are sportsmen. We are outdoorsmen. We believe that it is our American duty to help everyone, from first-time buyers to long-time enthusiasts, understand and legally secure their firearms and accessories. That’s why our arsenal is fully packed, consistently refreshed, and always loaded with high-quality, affordable firearms and accessories. Industry-leading brands that GrabAGun works with include Smith & Wesson Brands, Sturm, Ruger & Co., SIG Sauer, Glock, Springfield Armory and Hornady Manufacturing, among others.

GrabAGun is a fast growing, digitally native eCommerce retailer of firearms and ammunition, related accessories and other outdoor enthusiast products. Building on the Company’s proprietary software expertise, the Company’s eCommerce site has become one of the leading firearm retail websites. In addition to its eCommerce excellence, GrabAGun has developed industry-leading solutions that revolutionize supply chain management, combining dynamic inventory and order management with AI-powered pricing and demand forecasting. These advancements enable seamless logistics, efficient regulatory compliance and a streamlined experience for customers.

About Colombier Acquisition Corp. II

Colombier II is a blank check company formed for the purpose of effecting a merger, capital share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. While Colombier II may pursue an acquisition opportunity in any business, industry, sector or geographical location, it intends to focus on industries that complement the management team’s background and network, such as companies categorized by Entrepreneurship, Innovation and Growth (EIG), including but not limited to parallel economies, the return of products and services developed within the United States, sectors with impaired value due to certain investor mandates and businesses within regulated areas that are disrupting inefficiencies related thereto. Please visit Investor Relations :: Colombier Acquisition Corp II (CLBR) for more information.

Additional Information and Where to Find It

GrabAGun Digital, as registrant, and GrabAGun, as co-registrant, have filed with the SEC the Registration Statement, which includes a preliminary proxy statement of Colombier II and a prospectus in connection with the proposed Business Combination involving Colombier II, GrabAGun Digital, Colombier Merger Sub, GrabAGun Merger Sub and GrabAGun, that is the subject of the Business Combination Agreement. The definitive proxy statement and other relevant documents will be mailed to shareholders of Colombier II as of a record date to be established for voting on Colombier II’s proposed Business Combination with GrabAGun. SHAREHOLDERS OF COLOMBIER II AND OTHER INTERESTED PARTIES ARE URGED TO READ THE PRELIMINARY PROXY STATEMENT, AND AMENDMENTS THERETO, AND THE DEFINITIVE PROXY STATEMENT IN CONNECTION WITH COLOMBIER II’S SOLICITATION OF PROXIES FOR THE SPECIAL MEETING OF ITS SHAREHOLDERS TO BE HELD TO APPROVE THE BUSINESS COMBINATION BECAUSE THESE DOCUMENTS CONTAIN IMPORTANT INFORMATION ABOUT COLOMBIER II, GRABAGUN, GRABAGUN DIGITAL AND THE BUSINESS COMBINATION. Shareholders are able to obtain copies of the Registration Statement and the joint proxy statement/prospectus, without charge on the SEC’s website at www.sec.gov or by directing a request to: Colombier Acquisition Corp. II, 214 Brazilian Avenue, Suite 200-J, Palm Beach, FL 33480, email: [email protected].

Participants in the Solicitation

GrabAGun Digital, Colombier II, GrabAGun and their respective directors, executive officers and members, as applicable, may be deemed to be participants in the solicitation of proxies from the shareholders of Colombier II in connection with the Business Combination. Colombier II’s shareholders and other interested persons may obtain more detailed information regarding the names, affiliations and interests of certain of Colombier II executive officers and directors in the solicitation by reading Colombier II’s final prospectus filed with the SEC on November 20, 2023 in connection with Colombier II’s initial public offering, Colombier II’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 11, 2025, and Colombier II’s other public filings with the SEC, including the Registration Statement. A list of the names of such directors and executive officers and information regarding their interests in the Business Combination, which may, in some cases, be different from those of shareholders generally, are set forth in the Registration Statement relating to the Business Combination. These documents can be obtained free of charge from the source indicated above.

Forward-Looking Statements

This communication contains certain “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “forecast,” “intend,” “may,” “will,” “expect,” “continue,” “should,” “would,” “anticipate,” “believe,” “seek,” “target,” “predict,” “potential,” “seem,” “future,” “outlook” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, references with respect to the anticipated benefits of the proposed Business Combination; GrabAGun’s ability to successfully execute its expansion plans and business initiatives; the sources and uses of cash of the proposed Business Combination; the anticipated capitalization and enterprise value of the combined company following the consummation of the proposed Business Combination; and expectations related to the terms and timing of the proposed Business Combination. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of GrabAGun’s and Colombier II’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of GrabAGun and Colombier II. These forward-looking statements are subject to a number of risks and uncertainties, including the occurrence of any event, change or other circumstances that could give rise to the termination of the Business Combination Agreement; the risk that the Business Combination disrupts current plans and operations as a result of the announcement and consummation of the transactions described herein; the inability to recognize the anticipated benefits of the Business Combination; the inability of GrabAGun to maintain, and GrabAGun Digital to obtain, as necessary, any permits necessary for the conduct of GrabAGun’s business, including federal firearm licenses issued pursuant to the Gun Control Act, 18 USC 921 et seq. and special occupational taxpayer stamps issued pursuant to the National Firearms Act, 26 USC 5849 et seq.; the disqualification, revocation or modification of the status of those persons designated by GrabAGun as Responsible Persons, as such term is defined in 18 U.S.C. 841(s); the ability to maintain the listing of Colombier II’s securities on a national securities exchange; the ability to obtain or maintain the listing of GrabAGun Digital’s securities on the NYSE following the Business Combination; costs related to the Business Combination; changes in business, market, financial, political and legal conditions; risks relating to GrabAGun’s operations and business, including information technology and cybersecurity risks, and deterioration in relationships between GrabAGun and its employees; GrabAGun’s ability to successfully collaborate with business partners; demand for GrabAGun’s current and future offerings; risks that orders that have been placed for GrabAGun’s products are cancelled or modified; risks related to increased competition; risks that GrabAGun is unable to secure or protect its intellectual property; risks of product liability or regulatory lawsuits relating to GrabAGun’s products; risks that the post-combination company experiences difficulties managing its growth and expanding operations; the risk that the Business Combination may not be completed in a timely manner, or at all, which may adversely affect the price of Colombier II’s securities; the risk that the Business Combination may not be completed by Colombier II’s business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by Colombier II; the failure to satisfy the conditions to the consummation of the Business Combination; the outcome of any legal proceedings that may be instituted against GrabAGun, Colombier II, GrabAGun Digital or others with respect to the proposed Business Combination and transactions contemplated thereby; the ability of GrabAGun to execute its business model; and those risk factors discussed in documents of GrabAGun Digital and Colombier II filed, or to be filed, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that neither Colombier II nor GrabAGun presently know or that Colombier II and GrabAGun currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Colombier II’s, GrabAGun Digital’s and GrabAGun’s expectations, plans or forecasts of future events and views as of the date of this press release. Colombier II, GrabAGun Digital and GrabAGun anticipate that subsequent events and developments will cause Colombier II’s, GrabAGun Digital’s and GrabAGun’s assessments to change. However, while Colombier II, GrabAGun Digital and GrabAGun may elect to update these forward-looking statements at some point in the future, Colombier II, GrabAGun Digital and GrabAGun specifically disclaim any obligation to do so. Readers are referred to the most recent reports filed with the SEC by Colombier II. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by U.S. federal securities law.

No Offer or Solicitation

This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250429725696/en/

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April 29, 2025 10:39 am

Vuzix Acquires Advanced Waveguide R&D Facility in Silicon Valley to Strengthen Partnerships with Big Tech OEMs/ODMs

PR Newswire

– New facility enables state-of-the-art waveguide designs to accelerate development of AI-enabled smart glasses

ROCHESTER, N.Y.
, April 29, 2025 /PRNewswire/ — Vuzix® Corporation (NASDAQ: VUZI), a leading supplier of smart glasses, waveguides, and Augmented Reality (AR) technologies, today announced the acquisition of an advanced waveguide R&D facility in Milpitas, California. The facility, previously operated by a global technology leader known for its extensive work in software, AI, and augmented reality, will now serve as a key waveguide tools development and innovation hub for Vuzix and its ODM/OEM customers’ next-generation AI-driven smart glasses. This strategic acquisition will enable Vuzix to further innovate and scale its waveguide development capabilities, a critical component for next-generation AI/AR smart glasses.

Situated in the heart of technology-rich Silicon Valley, the new facility will serve as a hub for waveguide tools development and innovation in the area. The facility will allow Vuzix to play a stronger key role in advancing lightweight, high-performance optical solutions for AI-powered smart glasses. The new facility features state-of-the-art equipment, including an advanced ion milling machine, which offers superior precision, advanced tool development capabilities, and batch-processing. It is already enabled with custom shutter mechanisms that enable the fabrication of multiple high-quality waveguides tools on a single substrate. The facility and equipment, with future upgrades, will be capable of modern cassette-to-cassette handling for high-efficiency substrate processing for special customer needs.

By integrating these cutting-edge waveguide tool manufacturing capabilities, Vuzix is reinforcing its role as a key enabler for smart glasses as numerous new manufacturers are looking to integrate AI and AR technologies into their consumer and enterprise wearable solutions. Vuzix is now further poised to accelerate the design, development, and manufacturing of advanced waveguide solutions, catering to the needs of its growing list of ODM/OEM customers and manufacturing partners. The facility’s advanced capabilities will ensure that Vuzix can develop increasingly compact, high-performance optical components essential for next-generation wearables.

“Vuzix continues to drive innovation in waveguide optics and display technology, enabling the development of next-generation AI-powered smart glasses,” said Paul Travers, President and CEO of Vuzix. “This facility strengthens our ability to support our partners with the highest-quality waveguide solutions, ensuring they have the technology needed to bring advanced, fashion-forward smart glasses to market. AI and AR are converging rapidly, and Vuzix is positioned to lead the way in this evolution.”

The total cost of this expansion will be in the low seven figures in 2025 and is in line with Vuzix’ planned technology-driven growth strategy, ensuring that the Company continues to advance its industry leadership while maintaining disciplined financial management.

For more information, please visit www.vuzix.com.

About Vuzix Corporation

Vuzix is a leading designer, manufacturer and marketer of AI-powered Smart Glasses, Waveguides and Augmented Reality (AR) technologies, components and products for the enterprise, medical, defense and consumer markets. The Company’s products include head-mounted smart personal display and wearable computing devices that offer users a portable high-quality viewing experience, provide solutions for mobility, wearable displays and augmented reality, as well OEM waveguide optical components and display engines. Vuzix holds more than 425 patents and patents pending and numerous IP licenses in the fields of optics, head-mounted displays, and the augmented reality wearables field. The Company has won Consumer Electronics Show (or CES) awards for innovation for the years 2005 to 2024 and several wireless technology innovation awards among others. Founded in 1997, Vuzix is a public company (NASDAQ: VUZI) with offices in: Rochester, NY; and Kyoto and Okayama, Japan. For more information, visit the Vuzix website, Twitter and Facebook pages.

Forward-Looking Statements Disclaimer

Certain statements contained in this news release are “forward-looking statements” within the meaning of the Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Forward looking statements contained in this release relate to Vuzix Smart Glasses, our waveguide design and manufacturing capabilities, future business relationships with potential ODM/OEM customers, future success of Vuzix Westcoast waveguide R&D facility, expected annual operating costs, and among other things the Company’s leadership in the Smart Glasses and AR display industry. They are generally identified by words such as “believes,” “may,” “expects,” “anticipates,” “should” and similar expressions. Readers should not place undue reliance on such forward-looking statements, which are based upon the Company’s beliefs and assumptions as of the date of this release. The Company’s actual results could differ materially due to risk factors and other items described in more detail in the “Risk Factors” section of the Company’s Annual Reports and MD&A filed with the United States Securities and Exchange Commission and applicable Canadian securities regulators (copies of which may be obtained at www.sedar.com or www.sec.gov). Subsequent events and developments may cause these forward-looking statements to change. The Company specifically disclaims any obligation or intention to update or revise these forward-looking statements as a result of changed events or circumstances that occur after the date of this release, except as required by applicable law.

Vuzix Waveguide and ODM/OEM Sales:

Warren Russell, Senior Director ODM/OEM Partnerships,
Vuzix Corporation – Milpitas Office
[email protected]
Tel: (585) 359-5996

Vuzix Media and Investor Relations Contact:

Ed McGregor, Director of Investor Relations,
Vuzix Corporation
[email protected]
Tel: (585) 359-5985

Vuzix Corporation, 25 Hendrix Road, West Henrietta, NY 14586 USA,
Investor Information – [email protected] www.vuzix.com

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SOURCE Vuzix Corporation

April 29, 2025 10:39 am

Digimarc Enables One of the CPG Industry’s Largest Global Rollouts of 2D Barcodes with Unilever, Improving Retail and Consumer Experience

Digimarc Enables One of the CPG Industry’s Largest Global Rollouts of 2D Barcodes with Unilever, Improving Retail and Consumer Experience

BEAVERTON, Ore.–(BUSINESS WIRE)–Digimarc Corporation (NASDAQ: DMRC), a global leader in digital watermarking and product digitization technologies, today announced it will deploy one of the consumer packaged goods (CPG) industry’s largest global implementations of GS1 Digital Link-enabled 2D barcodes with Unilever.

This rollout will put Unilever at the forefront of the retail industry’s preparation for Sunrise 2027, when 2D barcodes become standard at point-of-sale worldwide. It will also make Unilever one of the first companies to anticipate and adopt the European Union’s Digital Product Passport (DPP) regulation, reinforcing its commitment to sustainability and accessibility.

“We are proud to be leading the industry in pioneering how we help democratise access to product information,” said Aaron Rajan, Vice President – Consumer Technology, Unilever. “Deploying innovative solutions such as Digimarc Engage means that our unmissably superior brands not only keep pace with technological advancements but also shape the future of retail.

“Unilever’s multi-phased rollout will ultimately integrate 2D barcodes across 45,000 products (SKUs), spanning iconic brands such as Dove, Vaseline, Hellmann’s and Knorr.”

2D barcodes, an advanced version of traditional barcodes, can store large amounts of data in a small, scannable and accessible format on packaging. Specifically, 2D barcodes have the potential to connect consumers to key resources online, including details on nutrition, recipes, and usage instructions. By adopting this innovative technology across its packaging, Unilever aims to improve product data accessibility and deliver superior experiences for both retail partners and shoppers. It also enables a future-ready solution to meet regulatory requirements and keep pace with industry shifts.

“Unilever sets a benchmark for the CPG and retail sectors. Beyond revolutionizing point-of-sale processes, these solutions empower brands to foster deeper consumer connections, build loyalty, and unlock transformative data insights in the era of AI-driven decision-making,” said Ken Sickles, Chief Product Officer, Digimarc. “This also paves the way to making products truly accessible for everyone.”

As a leader in the development of the GS1 Digital Link standard, Digimarc has been instrumental in advancing industry-wide adoption. Digimarc Engage, built on the Illuminate platform, integrates GS1 Digital Link capabilities with dynamic intelligence, enabling brands to create a direct, personalized communication channel with consumers. This innovation supports regulatory initiatives like Europe’s DPP while facilitating industry-wide transformations such as Sunrise 2027.

About Digimarc

Digimarc Corporation (NASDAQ: DMRC) is the pioneer and global leader in digital watermarking technologies. For nearly 30 years, Digimarc innovations and intellectual property in digital watermarking have been deployed at a massive scale for the identification and the authentication of physical and digital items. A notable example is our partnership with a consortium of the world’s central banks to deter counterfeiting of global currency. Digimarc is also instrumental in supporting global industry standards efforts spanning both the physical and digital worlds. In 2023, Digimarc was named to the Fortune 2023 Change the World list and honored as a 2023 Fast Company World Changing Ideas finalist. Learn more at Digimarc.com.

About Unilever

Unilever is one of the world’s leading suppliers of Beauty & Wellbeing, Personal Care, Home Care, Foods and Ice Cream products, with sales in over 190 countries and products used by 3.4 billion people every day. We have 128,000 employees and generated sales of €60.8 billion in 2024.

For more information about Unilever and our brands, please visit www.unilever.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250428060845/en/

Media Contact:

Tom Benton

Digimarc Corporation

509-469-4800

[email protected]

KEYWORDS: North America United States Ireland United Kingdom Europe Oregon

INDUSTRY KEYWORDS: Data Management Retail Security Other Retail Technology Software Internet

MEDIA:

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April 29, 2025 10:38 am

Altisource Portfolio Solutions S.A. Schedules First Quarter 2025 Conference Call

LUXEMBOURG, April 29, 2025 (GLOBE NEWSWIRE) — On Thursday, May 1, 2025, Altisource Portfolio Solutions S.A. (“Altisource”) (NASDAQ: ASPS) will report earnings for the first quarter 2025. A press release and presentation will be available on Altisource’s website in the Investor Relations section.

Altisource will also host a conference call at 8:30 a.m. EDT on the same day to discuss its first quarter 2025 results. A link to the live audio webcast will be available on Altisource’s website in the Investor Relations section. Those who want to listen to the call should go to the website at least fifteen minutes prior to the call to register, download and install any necessary audio software. A replay of the conference call will be available via the website approximately two hours after the conclusion of the call and will remain available for approximately 30 days.

About Altisource:

Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets we serve. Additional information is available at www.Altisource.com.

FOR FURTHER INFORMATION

CONTACT:

Michelle D. Esterman
Chief Financial Officer
T: (770) 612-7007
E: [email protected]