Coastal Financial in Everett, Wash., is exploring a potential expansion of its Banking-as-a-Service business through a deal with Evolve Bank & Trust in West Memphis, Ark.
The $5.7 billion-asset Coastal disclosed in a regulatory filing that it entered into a nonbinding term sheet with Evolve covering a range of BaaS programs that Coastal may buy. They include related assets and deposits.
Coastal said it plans to begin due diligence promptly on certain Evolve programs, while the banks work toward negotiating definitive agreements for any programs they decide to transfer.
The filing said that any transaction would depend on signed agreements, regulatory approvals, and other customary closing conditions.