Shares plunge after Q2 loss tied to credit expense
Community lender Coastal Financial's CCB.O shares plunged 44.8% to $39.
CCB swung to a loss in Q2 as it incurred a $68.8 million credit expense tied to a single partner relationship.
"We believe this is an isolated issue pertaining to one partner and does not reflect a change in our view of our broader partner portfolio or BaaS model," CEO Eric Sprink said, referring to a service that lets non-banks deliver digital banking through licensed platforms.
"We would expect shares likely underperform off the announcement," Stephens analyst Andrew Terrell said.
As of last close, CCB stock was down 38.3% year to date.
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