At a Glance:Six-week execution with service-retained structure preserved customer relationships
$34+ million in liquidity: generated from performing assets
6 week close: from connection to execution
Custom deal structure: retained servicing with whole loan economics
About the Bank
Coastal Community Bank is a $4B+ Pacific Northwest institution serving business and retail customers. The forward-thinking, successful bank brought on new President Curt Queyrouze in 2022, who introduced a tech-forward growth strategy from his previous role at TAB Bank.
By early 2024, Coastal had strong loan demand and solid portfolio performance. But post-SVB and First Republic bank failures, depositor confidence declined industry-wide. Deposits struggled to keep pace with loan originations, tying up more capital. Coastal needed liquidity — not for credit problems, but to fund growth initiatives.
The Challenge
Coastal needed more balance sheet flexibility. Strong lending activity meant more capital was tied up in assets while deposits grew slowly. This limited their ability to fund new opportunities.
The issue wasn't credit quality or regulatory pressure. Queyrouze wanted to act on growth initiatives but needed more balance sheet flexibility. Coastal could sell newly originated, high-performing CRE loans at market rates to create room to grow. This was strategic capital management, not a reaction to problems.
The Solution
Coastal identified three pools of recently originated, high-performing CRE loans — well-underwritten, market-rate credits they could sell at full value without any discount. The deals totaled $34.35 million: $16.5M, $13.5M and $4.35M across separate portfolios.
Each deal was structured as a 99.9% participation with servicing retained. This gave Coastal the liquidity of a whole loan sale while preserving customer relationships — a hybrid structure that's rare in traditional loan sales.
Through Capstack's platform, Coastal connected with Northwest Bank, a $1.5B Idaho institution with strong liquidity but limited CRE origination access in the Pacific Northwest. The match worked perfectly: Coastal needed liquidity, Northwest needed quality assets to deploy capital.
Both banks negotiated directly on the platform — underwriting questions, pricing, structure and documentation. No brokers, no back-and-forth emails. Result: three clean trades completed in under six weeks at market pricing that reflected true asset quality.
"Capstack Technologies has been a transformative partner in helping us diversify and access liquidity. Their platform made it easy to identify the right partner and seamlessly trade participations with a bank we had not worked with before. Capstack has streamlined the entire trading process end-to-end, making it simple, transparent and secure. We are actively engaging to have them market additional assets from our portfolio on their platform."
— Curt Queyrouze, President, Coastal Community Bank
Results
The transactions delivered exactly what Coastal needed: $34+ million in liquidity without compromising asset quality or customer relationships. By early 2025, the bank had the balance sheet flexibility to pursue growth initiatives.
The biggest validation came when Coastal returned to the platform as a buyer. Having experienced Capstack's efficiency as a seller, they now use the platform for acquisitions too. Coastal transformed from a one-time seller into an active participant on both sides of the marketplace.
Speed also exceeded expectations. Traditional community bank loan sales take three to six months. Coastal completed all three transactions in under six weeks, eliminating broker complexity while maintaining full control over pricing and structure.
