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.
Our strategy emphasizes relationship-based banking and targeted growth within our core markets, where we seek to serve the needs of commercial and retail customers and attract stable core deposits to support loan growth.
We believe our focus on these markets aligns with our operating model and allows us to deploy resources efficiently while maintaining a disciplined approach to growth.
Our CCBX market extends throughout the United States through our digital financial services partners.
Developing the kind of unique offerings to specific under-served or under-banked populations would be difficult for a bank our size, but through our CCBX partnerships we are able to use our banking charter to support this effort in a much broader scope.
(1) Acquired GreenFi assets during the quarter ended December 31, 2025 (2) Our partner is a subsidiary of a parent entity with broker-dealer subsidiaries.
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.
Additionally, the Company determined any previously issued earnings releases and investor presentations or other communications including or describing the Prior Financial Statements and Prior Interim Financial Statements should no longer be relied upon.
This Annual Report on Form 10-K includes a restated Consolidated Income Statement, Consolidated Balance Sheet and Consolidated Statement of Cash flows as of and for the year ended December 31, 2023.
In addition, the Company has restated its unaudited quarterly Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Income and Cash Flows for the first three quarters of and each of the years ended December 31, 2024 and December 31, 2023.
Refer to Note 23, Restatement of Prior Period Financial Statements, in the accompanying Consolidated Financial Statements included in Part II, Item 8 for additional information, including the impact on the specific accounts.
Impact on Internal Controls over Financial Reporting See Item 9A, Controls and Procedures, for information related to identified material weaknesses in internal control over financial reporting and the related remedial measures.