CCBHIGH SIGNALREGULATORY10-K

CCB removed extensive language regarding material accounting errors that rendered prior financial statements unreliable, suggesting resolution of significant financial reporting issues.

The removal of detailed disclosures about material accounting errors related to BaaS partner expense reimbursements and the prior conclusion that multiple years of financial statements "should no longer be relied upon" indicates CCB has likely resolved serious internal control deficiencies. However, the addition of new risk factor language around trade policies and internal control effectiveness suggests ongoing regulatory scrutiny and potential operational challenges.

Comparing 2026-02-27 vs 2025-03-17View on EDGAR →
FINANCIAL ANALYSIS

CCB demonstrated solid balance sheet expansion with total assets growing 15% to $4.7 billion and deposits increasing 15.6% to $4.1 billion, indicating successful customer acquisition and retention. Stockholders' equity grew 11.9% to $491 million, reflecting healthy capital accumulation. The proportional growth across assets, liabilities, and equity suggests disciplined expansion within the company's core Puget Sound market focus.

FINANCIAL STATEMENT CHANGES
Total Deposits
Balance Sheet
+15.6%
$3.6B→$4.1B

Deposits grew 15.6% — expanding customer base or increased trust in the institution.

Total Liabilities
Balance Sheet
+15.4%
$3.7B→$4.3B

Liabilities increased 15.4% — monitor debt-to-equity ratio and interest coverage.

Total Assets
Balance Sheet
+15%
$4.1B→$4.7B

Asset base grew 15% — expansion through organic growth, acquisitions, or capital deployment.

Stockholders Equity
Balance Sheet
+11.9%
$438.7M→$491.0M

Equity base grew 11.9% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-03-17
ADDED
trade policies, including the imposition of tariffs and retaliatory tariffs; any inability to implement and maintain effective internal control over financial reporting and/or disclosure controls or inability to remediate any material weaknesses in our internal control over financial reporting and/or disclosure controls deemed ineffective; and our success at managing the risks involved in the foregoing items.
Our website addresses are www.coastalbank.com and www.ccbx.com.
As of December 31, 2025, we had total assets of $4.74 billion, total loans receivable of $3.75 billion, total deposits of $4.14 billion and total shareholders equity of $491.0 million.
The Puget Sound region, which comprises over 62% of the population of the state of Washington, and approximately 61% of the number of businesses located therein, has a population of approximately 5.1 million, over 147,000 businesses and $155.2 billion of deposits with us and other banking institutions located in the region.
Our banking operations are primarily focused on serving customers within Snohomish County and other select areas of the Puget Sound region.
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REMOVED
In addition, the Company concluded that reimbursement of expenses associated with certain BaaS partners had not been appropriately accounted for under Topic 606, where the Company acts as an agent.
On March 13, 2025, the Audit Committee (the Audit Committee ), after discussion with senior management and the Company s independent registered public accountants, concluded that these errors had no impact on consolidated pre-tax income or net income in the Consolidated Income Statement and an overstatement of assets and liabilities in the Consolidated Balance Sheet and concluded that these errors had no impact on retained earnings.
In addition, these errors impacted net change in operating activities and investing activities in the Consolidated Statement of Cash flows.
The Company s Board of Directors, after discussion with senior management and the Company s independent registered public accountants, concluded that the errors were material to the Company's previously issued Consolidated Financial Statements ( Prior Financial Statements ) and the Prior Financial Statements as of and for the fiscal year ended December 31, 2023, included in the Company s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, should no longer be relied upon due to the impact of the errors noted above.
In addition, these errors included in the Company s Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, September 30, 2024, March 31, 2023, June 30, 2023 and September 30, 2023 (collectively, the Prior Interim Financial Statements ) and the Prior Interim Financial Statements should no longer be relied upon.
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