Coastal Financial in Everett, Wash., said deposits increased largely because of its ongoing Banking-as-a-Service push.
The $3.5 billion-asset company said in a press release that deposits rose by 9.9% in the first quarter from a quarter earlier, to $3.1 billion.
Coastal said its CCBX business, which provides BaaS services, added $284.5 million of deposits in the quarter and now accounts for more than half of its total deposits.
The community banking business lost $6.8 million of deposits in the first quarter.
The CCBX division added $153.7 million of loans in the first quarter, or nearly triple the volume generated by the community banking business.
Coastal said it has 18 active BaaS partners with six more in various stages of the pipeline. BaaS program fee income increased by 45% from a year earlier.
Net income fell by 5.5% from the fourth quarter but more than doubled that of a year earlier, to $12.4 million. The recent quarter included a $43.5 million loan-loss provision and higher operating costs.