CoastalSouth Bancshares 第二季淨收入730萬美元 貸款增長強勁 淨息差擴闊至3.66%

EX-99.1
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coso-ex99_1.htm
EX-99.1

 
 EX-99.1
 
 
 EXHIBIT 99.1

 
FOR IMMEDIATE RELEASE

 COASTALSOUTH BANCSHARES, INC. REPORTS EARNINGS FOR SECOND QUARTER 2026
ATLANTA, GA (July 20, 2026) – CoastalSouth Bancshares, Inc. (“CoastalSouth” or the “Company”) (NYSE: COSO), the holding company for Coastal States Bank (the “Bank” or "CSB"), today reported net income of $7.3 million, or $0.59 per diluted share, for the second quarter of 2026, compared to approximately $6.3 million, or $0.51 per diluted share, for the first quarter of 2026, and $6.0 million, or $0.57 per diluted share, for the second quarter of 2025. For the six months ended June 30, 2026, the Company reported net income of $13.7 million, or $1.10 per diluted share, compared with $11.0 million, or $1.04 per diluted share, for the same period in 2025.
Additionally, on July 20, 2026 the Board of Directors of CoastalSouth Bancshares, Inc. declared a per share quarterly dividend of $0.05. The dividend will be paid to shareholders of record as of the close of business on August 13, 2026, the record date. The dividend shall be paid on August 27, 2026.
Commenting on the Company’s second quarter performance, President and Chief Executive Officer Stephen R. Stone stated, "We saw outstanding loan production2 of $181.6 million during the second quarter, driving a $78.1 million increase in loans held for investment, or 19.3% annualized. The majority of production in the second quarter continued to come from the community bank with each region, including our new Charleston team, providing meaningful contributions. We are pleased to have achieved this growth while expanding our net interest margin and maintaining low net charge-offs. We continue to see opportunities to invest in new CSB team members across our footprint particularly as a result of recent M&A activity. We are pleased with our financial results and we look forward to building upon this performance in the second half of the year."
Second Quarter 2026 Performance Highlights:
•Net income of $7.3 million or $0.59 per diluted share

•Return on average assets ("ROAA") of 1.24%

•Return on average equity ("ROAE") of 11.02%; Return on average tangible common equity1 ("ROATCE") of 11.23%

•Net interest margin of 3.66%, an increase of 7 basis points from the first quarter of 2026

•Total deposits decreased $9.5 million, principally driven by a decrease of $4.8 million in core deposits1 and a decrease in brokered certificates of deposit of $4.7 million

•Loans held for investment ("LHFI") production2 of $181.6 million during the second quarter of 2026 led to LHFI growth of $78.1 million, up 19.3% annualized from the first quarter of 2026

•Book value per share growth of $0.53, or 9.69% annualized, to $22.47 at June 30, 2026; Tangible book value1 per common share growth of $0.54, or 10.06% annualized, to $22.06 at June 30, 2026 from the first quarter of 2026

•Total shareholders' equity to total assets of 11.14%, compared to 11.20% as of the first quarter of 2026; Tangible common equity1 to tangible assets1 of 10.96%, compared to 11.01% as of March 31, 2026

•Net charge-offs to average loans held for investment of 0.01%

•Nonperforming assets to total assets of 0.76%; adjusted nonperforming assets to total assets1 of 0.61%

•Allowance for credit losses ("ACL") on LHFI to total LHFI of 1.16%; ACL on LHFI to nonperforming loans of 108.16%

•Share repurchase program launched May 1, 2026; 48,491 shares repurchased during the second quarter of 2026 with weighted-average price per share of $25.48.

Operating Highlights
Net interest income totaled $20.7 million for the second quarter of 2026, an increase of $921 thousand, or 4.7%, from $19.7 million for the first quarter of 2026, and an increase of $2.6 million, or 14.3% from the second quarter of 2025. The Company’s net interest margin increased by 7 basis points to 3.66% for the second quarter of 2026, compared to 3.59% for the first quarter of 2026, and increased 20 basis points from the second quarter of 2025.

 
 1 Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10E.
2 The Company defines production as original loan commitment amount, which includes both funded and unfunded balances at the time of origination. As of June 30, 2026, these loans had funded balances of $126.0 million and unfunded commitments of $53.9 million.
1
 

 
  
 

 The yield on average interest-earning assets for the second quarter of 2026 increased to 5.94% from 5.92% for the first quarter of 2026. This increase was primarily related to an overall yield increase in average interest-earning assets, principally investment securities; offset by a decrease in yield in LHFI. Compared to the second quarter of 2025, yields on earning assets decreased 14 basis points to 5.94% from 6.08%. The decrease was primarily attributable to interest rate cuts during 2025, notwithstanding a $169.0 million growth in average total earning assets.
The Company’s total cost of funds was 2.50% for the second quarter of 2026, a decrease of 5 basis points compared to the first quarter of 2026, and 30 basis points compared to the second quarter of 2025. Deposit costs were 2.48% for the second quarter of 2026, compared to 2.54% for the first quarter of 2026, a decrease of 6 basis points, and 2.75% for the second quarter of 2025, a decrease of 27 basis points. The cost of interest-bearing deposits decreased 6 basis points during the second quarter of 2026 to 2.95%, compared with 3.01% in the first quarter of 2026, reflecting continued repricing of certificates of deposits during the second quarter of 2026.
Noninterest income totaled $2.2 million for the second quarter of 2026, an increase of $235 thousand, or 12.0%, from the first quarter of 2026, primarily attributable to gain on sale of other loans, coupled with a net increase in other categories within noninterest income. Noninterest expense totaled $13.4 million for the second quarter of 2026, an increase of $330 thousand, or 2.5%, from the first quarter of 2026. This increase was primarily due to higher salaries and employee benefits, coupled with a net increase in other noninterest expense categories, principally in other professional services, software and other technology expense, and other noninterest expense; offset by a decrease in regulatory assessment expense. The Company continues to focus on organic growth and expansion through banker recruiting across the franchise.
The Company’s effective tax rate for the second quarter of 2026 was 17.0%, compared to 23.6% for the first quarter of 2026, and 15.1% for the second quarter of 2025. The decrease in effective tax rate from the first quarter of 2026 was primarily due to a higher recognition of benefits from tax credits during the second quarter of 2026.
Balance Sheet Trends
Total assets were $2.42 billion at June 30, 2026, an increase of approximately $114.4 million, or 5.0%, from $2.31 billion at December 31, 2025. Loans held for sale ("LHFS") were $223.1 million at June 30, 2026, an increase of $52.2 million, or 30.5%, from $170.9 million at December 31, 2025. Gross LHFI were $1.71 billion at June 30, 2026, an increase of approximately $88.1 million, or 5.4%, from $1.62 billion at December 31, 2025.
Total deposits were $2.05 billion at June 30, 2026, an increase of $60.0 million, or 3.0%, from $1.99 billion at December 31, 2025. Noninterest-bearing deposits were $355.9 million at June 30, 2026, or 17.4% of total deposits, compared to $312.3 million, or 15.7% of total deposits, at December 31, 2025. Brokered certificates of deposit, a component of time deposits, were $253.9 million at June 30, 2026, as compared to $307.0 million at December 31, 2025, a decrease of $53.1 million, or 17.3%.
Credit Quality
During the second quarter of 2026, the Company recorded a provision for credit losses of $658 thousand, compared to $382 thousand and $752 thousand during the first quarter of 2026 and the second quarter of 2025, respectively. The provision expense recorded during the second quarter of 2026 was due to loan production and updated collateral values on individually reviewed loans, offset with other changes in loss rates. The Company's annualized net charge-offs to average LHFI ratio was 0.01% for the second quarter of 2026 as compared to 0.01% and 0.06% during the first quarter of 2026 and the second quarter of 2025, respectively.
Nonperforming assets totaled $18.3 million, or 0.76% of total assets, at June 30, 2026 compared to $18.3 million, or 0.79% of total assets at December 31, 2025. Adjusted nonperforming assets3, which excludes the guaranteed portions of nonaccrual loans, was $14.8 million, or 0.61% of total assets, at June 30, 2026 compared to $14.2 million, or 0.62% of total assets, at December 31, 2025.
About CoastalSouth Bancshares, Inc.
CoastalSouth Bancshares, Inc. is a bank holding company headquartered in Atlanta, Georgia. Through our wholly owned subsidiary, Coastal States Bank, a South Carolina state-chartered commercial bank, we offer a full range of banking products and services designed for businesses, real estate professionals, and consumers looking for a deep and meaningful relationship with their bank. To learn more about Coastal States Bank, visit www.coastalstatesbank.com.

 
 
 
 
 
 

 
 Contacts

 

 
  

  

  

 

 
 Stephen R. Stone

  

 Anthony P. Valduga

 

 
 President and Chief Executive Officer

  

 Chief Financial Officer / Chief Operating Officer

 

 
 678-396-4605

 

 

 
 3 Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10E.
2
 
 

 
  
 

 
 
 
 
 

 
 [email protected]

 

  
 

Forward-Looking Statements
Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans.
Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; potential impacts of any adverse developments in the banking industry, including any impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; changes in the interest rate environment, including changes to the federal funds rate; changes in prices, values and sales volumes of residential and commercial real estate; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; interest rate fluctuations, which could have an adverse effect on the Company’s profitability; a breach in security of our information systems, including the occurrence of cyber-attack incidents or deficiencies in cyber security; risks related to potential acquisitions; government actions or inactions, including a prolonged shutdown of the federal government, tariffs, or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; the effects of war or other conflicts, domestic civil unrest and tyranny, and changes in the overall geopolitical landscape; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized.
Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s 2025 Annual Report on Form 10-K under the Securities Act of 1933, as amended, filed with the Securities and Exchange Commission (the “SEC”) on March 12, 2026, and in other documents that we file with the SEC from time to time, which are available on the SEC’s website, http://www.sec.gov.
In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance.
Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.

 3
 
 

 
 COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
 

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 Financial Highlights (unaudited)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 Table 1A

  

 

 
  

  

  

 As of and for the Three Months Ended

  

  

 As of and for the Six Months Ended

  

 

 
 (dollars in thousands except

  

  

 June 30,

  

  

  

 March 31,

  

  

  

 December 31,

  

  

  

 September 30,

  

  

  

 June 30,

  

  

  

 June 30,

  

  

  

 June 30,

  

 

 
 per share amounts)

  

  

 2026

  

  

  

 2026

  

  

  

 2025

  

  

  

 2025

  

  

  

 2025

  

  

  

 2026

  

  

  

 2025

  

 

 
 Selected Operating Data:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest income

  

 $

  

 33,558

  

  

 $

  

 32,568

  

  

 $

  

 33,006

  

  

 $

  

 32,890

  

  

 $

  

 31,793

  

  

 $

  

 66,126

  

  

 $

  

 61,817

  

 

 
 Interest expense

  

  

  

 12,893

  

  

  

  

 12,824

  

  

  

  

 13,143

  

  

  

  

 13,700

  

  

  

  

 13,715

  

  

  

  

 25,717

  

  

  

  

 26,980

  

 

 
 Net interest income

  

  

  

 20,665

  

  

  

  

 19,744

  

  

  

  

 19,863

  

  

  

  

 19,190

  

  

  

  

 18,078

  

  

  

  

 40,409

  

  

  

  

 34,837

  

 

 
 Provision for credit losses

  

  

  

 658

  

  

  

  

 382

  

  

  

  

 1,162

  

  

  

  

 653

  

  

  

  

 752

  

  

  

  

 1,040

  

  

  

  

 1,381

  

 

 
 Noninterest income

  

  

  

 2,202

  

  

  

  

 1,967

  

  

  

  

 2,295

  

  

  

  

 2,100

  

  

  

  

 1,795

  

  

  

  

 4,169

  

  

  

  

 3,676

  

 

 
 Noninterest expense

  

  

  

 13,374

  

  

  

  

 13,044

  

  

  

  

 12,262

  

  

  

  

 11,856

  

  

  

  

 12,092

  

  

  

  

 26,418

  

  

  

  

 23,511

  

 

 
 Income tax expense

  

  

  

 1,502

  

  

  

  

 1,956

  

  

  

  

 1,598

  

  

  

  

 2,040

  

  

  

  

 1,064

  

  

  

  

 3,458

  

  

  

  

 2,606

  

 

 
 Net income

  

  

  

 7,333

  

  

  

  

 6,329

  

  

  

  

 7,136

  

  

  

  

 6,741

  

  

  

  

 5,965

  

  

  

  

 13,662

  

  

  

  

 11,015

  

 

 
 Share and Per Share Data:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Basic earnings per share

  

 $

  

 0.61

  

  

 $

  

 0.53

  

  

 $

  

 0.60

  

  

 $

  

 0.57

  

  

 $

  

 0.58

  

  

 $

  

 1.14

  

  

 $

  

 1.07

  

 

 
 Diluted earnings per share

  

 $

  

 0.59

  

  

 $

  

 0.51

  

  

 $

  

 0.58

  

  

 $

  

 0.54

  

  

 $

  

 0.57

  

  

 $

  

 1.10

  

  

 $

  

 1.04

  

 

 
 Dividends per share

  

 $

  

 0.05

  

  

 $

  

 0.05

  

  

 $

 n/a

  

  

 $

 n/a

  

  

 $

 n/a

  

  

 $

  

 0.10

  

  

 $

 n/a

  

 

 
 Book value per share

  

 $

  

 22.47

  

  

 $

  

 21.94

  

  

 $

  

 21.66

  

  

 $

  

 20.91

  

  

 $

  

 20.37

  

  

 $

  

 22.47

  

  

 $

  

 20.37

  

 

 
 Tangible book value per common share (1)

  

 $

  

 22.06

  

  

 $

  

 21.52

  

  

 $

  

 21.25

  

  

 $

  

 20.49

  

  

 $

  

 19.88

  

  

 $

  

 22.06

  

  

 $

  

 19.88

  

 

 
 Shares of common stock outstanding

  

  

  

 12,003,040

  

  

  

  

 11,985,414

  

  

  

  

 11,980,412

  

  

  

  

 11,978,921

  

  

  

  

 10,278,921

  

  

  

  

 12,003,040

  

  

  

  

 10,278,921

  

 

 
 Weighted average diluted shares    outstanding

  

  

  

 12,447,791

  

  

  

  

 12,440,809

  

  

  

  

 12,387,619

  

  

  

  

 12,325,462

  

  

  

  

 10,612,255

  

  

  

  

 12,444,884

  

  

  

  

 10,636,997

  

 

 
 Selected Balance Sheet Data:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Total assets

  

 $

  

 2,420,993

  

  

 $

  

 2,348,547

  

  

 $

  

 2,306,586

  

  

 $

  

 2,255,389

  

  

 $

  

 2,221,245

  

  

 $

  

 2,420,993

  

  

 $

  

 2,221,245

  

 

 
 Securities available-for-sale, at  fair value (2)

  

  

  

 348,582

  

  

  

  

 347,533

  

  

  

  

 330,503

  

  

  

  

 334,955

  

  

  

  

 331,760

  

  

  

  

 348,582

  

  

  

  

 331,760

  

 

 
 Gross loans held for investment

  

  

  

 1,705,370

  

  

  

  

 1,627,261

  

  

  

  

 1,617,315

  

  

  

  

 1,552,976

  

  

  

  

 1,527,199

  

  

  

  

 1,705,370

  

  

  

  

 1,527,199

  

 

 
 Loans held for sale

  

  

  

 223,112

  

  

  

  

 202,615

  

  

  

  

 170,933

  

  

  

  

 231,593

  

  

  

  

 209,101

  

  

  

  

 223,112

  

  

  

  

 209,101

  

 

 
 Allowance for credit losses

  

  

  

 19,817

  

  

  

  

 18,826

  

  

  

  

 18,743

  

  

  

  

 18,028

  

  

  

  

 17,497

  

  

  

  

 19,817

  

  

  

  

 17,497

  

 

 
 Goodwill and other intangible assets

  

  

  

 6,246

  

  

  

  

 6,243

  

  

  

  

 6,262

  

  

  

  

 6,186

  

  

  

  

 6,190

  

  

  

  

 6,246

  

  

  

  

 6,190

  

 

 
 Total deposits

  

  

  

 2,047,671

  

  

  

  

 2,057,144

  

  

  

  

 1,987,684

  

  

  

  

 1,949,672

  

  

  

  

 1,968,301

  

  

  

  

 2,047,671

  

  

  

  

 1,968,301

  

 

 
 Core deposits (1)

  

  

  

 1,793,743

  

  

  

  

 1,798,553

  

  

  

  

 1,680,650

  

  

  

  

 1,654,764

  

  

  

  

 1,660,409

  

  

  

  

 1,793,743

  

  

  

  

 1,660,409

  

 

 
 Other borrowings

  

  

  

 75,000

  

  

  

  

 -

  

  

  

  

 30,000

  

  

  

  

 25,000

  

  

  

  

 14,753

  

  

  

  

 75,000

  

  

  

  

 14,753

  

 

 
 Total Shareholders' equity

  

  

  

 269,703

  

  

  

  

 262,923

  

  

  

  

 259,529

  

  

  

  

 250,438

  

  

  

  

 209,365

  

  

  

  

 269,703

  

  

  

  

 209,365

  

 

 (1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures” and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10E.
(2) The Company did not have securities held to maturity in any of the periods presented.
 

 4
 
 

 
 COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 Financial Highlights - continued (unaudited)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 Table 1B

 

 
  

  

  

 As of and for the Three Months Ended

  

  

 As of and for the Six Months Ended

  

  

 

 
  

  

  

 June 30,

  

  

  

 March 31,

  

  

  

 December 31,

  

  

  

 September 30,

  

  

  

 June 30,

  

  

  

 June 30,

  

  

  

 June 30,

  

  

 

 
 (dollars in thousands)

  

  

 2026

  

  

  

 2026

  

  

  

 2025

  

  

  

 2025

  

  

  

 2025

  

  

  

 2026

  

  

  

 2025

  

  

 

 
 Performance Ratios:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Pre-tax, pre-provision net revenue  (PPNR) (1)

  

 $

  

 9,493

  

  

 $

  

 8,667

  

  

 $

  

 9,896

  

  

 $

  

 9,434

  

  

 $

  

 7,781

  

  

 $

  

 18,160

  

  

 $

  

 15,002

  

  

 

 
 Return on average assets (ROAA) (2)

  

  

  

 1.24

  

 %

  

  

 1.10

  

 %

  

  

 1.24

  

 %

  

  

 1.20

  

 %

  

  

 1.09

  

 %

  

  

 1.17

  

 %

  

  

 1.03

  

 %

 

 
 Return on average equity (2)

  

  

  

 11.02

  

  

  

  

 9.71

  

  

  

  

 11.02

  

  

  

  

 10.84

  

  

  

  

 11.62

  

  

  

  

 10.37

  

  

  

  

 10.95

  

  

 

 
 Return on average tangible common    equity (ROATCE) (1)(2)

  

  

  

 11.23

  

  

  

  

 9.90

  

  

  

  

 11.24

  

  

  

  

 11.07

  

  

  

  

 11.92

  

  

  

  

 10.57

  

  

  

  

 11.23

  

  

 

 
 Dividend payout ratio

  

  

  

 8.33

  

  

  

  

 9.69

  

  

  

 n/a

  

  

  

 n/a

  

  

  

 n/a

  

  

  

  

 8.96

  

  

  

 n/a

  

  

 

 
 Net interest rate spread (2)

  

  

  

 2.97

  

  

  

  

 2.90

  

  

  

  

 2.87

  

  

  

  

 2.83

  

  

  

  

 2.76

  

  

  

  

 2.93

  

  

  

  

 2.72

  

  

 

 
 Net interest margin (2)

  

  

  

 3.66

  

  

  

  

 3.59

  

  

  

  

 3.60

  

  

  

  

 3.58

  

  

  

  

 3.46

  

  

  

  

 3.62

  

  

  

  

 3.42

  

  

 

 
 Efficiency ratio

  

  

  

 58.49

  

  

  

  

 60.08

  

  

  

  

 55.34

  

  

  

  

 55.69

  

  

  

  

 60.85

  

  

  

  

 59.26

  

  

  

  

 61.05

  

  

 

 
 Noninterest income to average total   assets (2)

  

  

  

 0.37

  

  

  

  

 0.34

  

  

  

  

 0.40

  

  

  

  

 0.37

  

  

  

  

 0.33

  

  

  

  

 0.36

  

  

  

  

 0.34

  

  

 

 
 Noninterest expense to average total  assets (2)

  

  

  

 2.27

  

  

  

  

 2.27

  

  

  

  

 2.13

  

  

  

  

 2.11

  

  

  

  

 2.21

  

  

  

  

 2.27

  

  

  

  

 2.20

  

  

 

 
 Average interest-earning assets to average  interest-bearing liabilities

  

  

  

 130.15

  

  

  

  

 129.61

  

  

  

  

 130.41

  

  

  

  

 129.16

  

  

  

  

 126.50

  

  

  

  

 129.88

  

  

  

  

 126.41

  

  

 

 
 Average equity to average total assets

  

  

  

 11.29

  

  

  

  

 11.34

  

  

  

  

 11.22

  

  

  

  

 11.08

  

  

  

  

 9.37

  

  

  

  

 11.32

  

  

  

  

 9.41

  

  

 

 
 Asset Quality Data:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Net charge-offs to average LHFI (2)

  

  

  

 0.01

  

 %

  

  

 0.01

  

 %

  

  

 0.00

  

 %

  

  

 0.03

  

 %

  

  

 0.06

  

 %

  

  

 0.01

  

 %

  

  

 0.03

  

 %

 

 
 Net charge-offs to total average loans (2)

  

  

  

 0.01

  

  

  

  

 0.01

  

  

  

  

 0.00

  

  

  

  

 0.03

  

  

  

  

 0.05

  

  

  

  

 0.01

  

  

  

  

 0.03

  

  

 

 
 Total allowance for credit losses   to total LHFI

  

  

  

 1.16

  

  

  

  

 1.16

  

  

  

  

 1.16

  

  

  

  

 1.16

  

  

  

  

 1.15

  

  

  

  

 1.16

  

  

  

  

 1.15

  

  

 

 
 Total allowance for credit losses   to total loans

  

  

  

 1.03

  

  

  

  

 1.03

  

  

  

  

 1.05

  

  

  

  

 1.01

  

  

  

  

 1.01

  

  

  

  

 1.03

  

  

  

  

 1.01

  

  

 

 
 Total allowance for credit losses   to nonperforming loans

  

  

  

 108.16

  

  

  

  

 103.54

  

  

  

  

 102.39

  

  

  

  

 127.03

  

  

  

  

 118.99

  

  

  

  

 108.16

  

  

  

  

 118.99

  

  

 

 
 Nonperforming loans to gross LHFI

  

  

  

 1.07

  

  

  

  

 1.12

  

  

  

  

 1.13

  

  

  

  

 0.91

  

  

  

  

 0.96

  

  

  

  

 1.07

  

  

  

  

 0.96

  

  

 

 
 Nonperforming assets to total assets

  

  

  

 0.76

  

  

  

  

 0.77

  

  

  

  

 0.79

  

  

  

  

 0.63

  

  

  

  

 0.66

  

  

  

  

 0.76

  

  

  

  

 0.66

  

  

 

 
 Adjusted nonperforming assets to total  assets (1)

  

  

  

 0.61

  

  

  

  

 0.62

  

  

  

  

 0.62

  

  

  

  

 0.43

  

  

  

  

 0.46

  

  

  

  

 0.61

  

  

  

  

 0.46

  

  

 

 
 Balance Sheet and Capital Ratios:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Loan-to-deposit ratio

  

  

  

 94.18

  

 %

  

  

 88.95

  

 %

  

  

 89.97

  

 %

  

  

 91.53

  

 %

  

  

 88.21

  

 %

  

  

 94.18

  

 %

  

  

 88.21

  

 %

 

 
 Noninterest-bearing deposits to  total deposits

  

  

  

 17.38

  

  

  

  

 15.12

  

  

  

  

 15.71

  

  

  

  

 16.08

  

  

  

  

 15.92

  

  

  

  

 17.38

  

  

  

  

 15.92

  

  

 

 
 Total shareholders' equity to total assets

  

  

  

 11.14

  

  

  

  

 11.20

  

  

  

  

 11.25

  

  

  

  

 11.10

  

  

  

  

 9.43

  

  

  

  

 11.14

  

  

  

  

 9.43

  

  

 

 
 Tangible common equity to tangible   assets (1)

  

  

  

 10.96

  

  

  

  

 11.01

  

  

  

  

 11.06

  

  

  

  

 10.91

  

  

  

  

 9.22

  

  

  

  

 10.96

  

  

  

  

 9.22

  

  

 

 
 Tier 1 leverage ratio (3)

  

  

  

 11.12

  

  

  

  

 11.21

  

  

  

  

 11.18

  

  

  

  

 11.15

  

  

  

  

 10.22

  

  

  

  

 11.12

  

  

  

  

 10.22

  

  

 

 
 Common equity tier 1 ratio (3)

  

  

  

 12.30

  

  

  

  

 12.19

  

  

  

  

 12.30

  

  

  

  

 11.94

  

  

  

  

 11.09

  

  

  

  

 12.30

  

  

  

  

 11.09

  

  

 

 
 Tier 1 risk-based capital ratio (3)

  

  

  

 12.30

  

  

  

  

 12.19

  

  

  

  

 12.30

  

  

  

  

 11.94

  

  

  

  

 11.09

  

  

  

  

 12.30

  

  

  

  

 11.09

  

  

 

 
 Total risk-based capital ratio (3)

  

  

  

 13.39

  

  

  

  

 13.25

  

  

  

  

 13.31

  

  

  

  

 12.90

  

  

  

  

 12.04

  

  

  

  

 13.39

  

  

  

  

 12.04

  

  

 

 
 Other:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Number of branches

  

  

  

 11

  

  

  

  

 11

  

  

  

  

 11

  

  

  

  

 11

  

  

  

  

 11

  

  

  

  

 11

  

  

  

  

 11

  

  

 

 
 Number of full-time equivalent    employees

  

  

  

 201

  

  

  

  

 201

  

  

  

  

 196

  

  

  

  

 194

  

  

  

  

 188

  

  

  

  

 201

  

  

  

  

 183

  

  

 

 (1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures” and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10E.
(2) Represents annualized data.
(3) Ratios are for Coastal States Bank only. Ratios for June 30, 2026 are preliminary.
 
 

 5
 
 

 
 COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
 

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 Quarter End Balance Sheets (unaudited)

  

  

  

  

  

  

  

  

  

  

  

  

 Table 2

  

 

 
  

 June 30,

  

  

 March 31,

  

  

 December 31,

  

  

 September 30,

  

  

 June 30,

  

 

 
 (dollars in thousands)

 2026

  

  

 2026

  

  

 2025

  

  

 2025

  

  

 2025

  

 

 
 Assets

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Cash and due from banks

 $

 24,262

  

  

 $

 22,546

  

  

 $

 41,538

  

  

 $

 20,088

  

  

 $

 23,245

  

 

 
 Federal funds sold

  

 9,960

  

  

  

 40,011

  

  

  

 38,229

  

  

  

 6,191

  

  

  

 20,045

  

 

 
 Investment securities (1)

  

 359,635

  

  

  

 355,014

  

  

  

 339,262

  

  

  

 342,990

  

  

  

 338,601

  

 

 
 Loans held for sale (LHFS)

  

 223,112

  

  

  

 202,615

  

  

  

 170,933

  

  

  

 231,593

  

  

  

 209,101

  

 

 
 Loans held for investment (LHFI)

  

 1,705,370

  

  

  

 1,627,261

  

  

  

 1,617,315

  

  

  

 1,552,976

  

  

  

 1,527,199

  

 

 
 Allowance for credit losses on LHFI

  

 (19,817

 )

  

  

 (18,826

 )

  

  

 (18,743

 )

  

  

 (18,028

 )

  

  

 (17,497

 )

 

 
 Loans held for investment, net

  

 1,685,553

  

  

  

 1,608,435

  

  

  

 1,598,572

  

  

  

 1,534,948

  

  

  

 1,509,702

  

 

 
 Bank-owned life insurance

  

 49,218

  

  

  

 48,752

  

  

  

 48,296

  

  

  

 47,833

  

  

  

 47,373

  

 

 
 Premises, furniture and equipment, net

  

 18,611

  

  

  

 18,810

  

  

  

 18,122

  

  

  

 18,186

  

  

  

 18,166

  

 

 
 Deferred tax asset

  

 15,740

  

  

  

 16,910

  

  

  

 16,370

  

  

  

 16,262

  

  

  

 17,211

  

 

 
 Goodwill & intangible assets (2)

  

 6,246

  

  

  

 6,243

  

  

  

 6,262

  

  

  

 6,186

  

  

  

 6,190

  

 

 
 Other assets

  

 28,656

  

  

  

 29,211

  

  

  

 29,002

  

  

  

 31,112

  

  

  

 31,611

  

 

 
 Total assets

 $

 2,420,993

  

  

 $

 2,348,547

  

  

 $

 2,306,586

  

  

 $

 2,255,389

  

  

 $

 2,221,245

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Liabilities and shareholders' equity

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Liabilities

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Deposits

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Noninterest-bearing transaction accounts

 $

 355,941

  

  

 $

 311,054

  

  

 $

 312,251

  

  

 $

 313,604

  

  

 $

 313,386

  

 

 
 Interest-bearing transaction accounts

  

 194,896

  

  

  

 235,422

  

  

  

 214,620

  

  

  

 198,753

  

  

  

 209,816

  

 

 
 Savings and money market

  

 772,809

  

  

  

 775,962

  

  

  

 673,609

  

  

  

 634,826

  

  

  

 628,729

  

 

 
 Time deposits

  

 724,025

  

  

  

 734,706

  

  

  

 787,204

  

  

  

 802,489

  

  

  

 816,370

  

 

 
 Total deposits

  

 2,047,671

  

  

  

 2,057,144

  

  

  

 1,987,684

  

  

  

 1,949,672

  

  

  

 1,968,301

  

 

 
 Federal Home Loan Bank of    Atlanta advances

  

 75,000

  

  

  

 -

  

  

  

 30,000

  

  

  

 25,000

  

  

  

 -

  

 

 
 Subordinated debt, net

  

 -

  

  

  

 -

  

  

  

 -

  

  

  

 -

  

  

  

 14,753

  

 

 
 Other liabilities

  

 28,619

  

  

  

 28,480

  

  

  

 29,373

  

  

  

 30,279

  

  

  

 28,826

  

 

 
 Total liabilities

  

 2,151,290

  

  

  

 2,085,624

  

  

  

 2,047,057

  

  

  

 2,004,951

  

  

  

 2,011,880

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Shareholders' equity

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Voting common stock

  

 12,003

  

  

  

 11,853

  

  

  

 10,868

  

  

  

 10,449

  

  

  

 8,107

  

 

 
 Nonvoting common stock

  

 -

  

  

  

 132

  

  

  

 1,112

  

  

  

 1,530

  

  

  

 2,172

  

 

 
 Capital surplus

  

 188,851

  

  

  

 190,160

  

  

  

 189,882

  

  

  

 189,654

  

  

  

 159,267

  

 

 
 Accumulated income

  

 79,324

  

  

  

 72,602

  

  

  

 66,886

  

  

  

 59,750

  

  

  

 53,009

  

 

 
 Accumulated other comprehensive loss

  

 (10,475

 )

  

  

 (11,824

 )

  

  

 (9,219

 )

  

  

 (10,945

 )

  

  

 (13,190

 )

 

 
 Total shareholders' equity

  

 269,703

  

  

  

 262,923

  

  

  

 259,529

  

  

  

 250,438

  

  

  

 209,365

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Total liabilities and shareholders' equity

 $

 2,420,993

  

  

 $

 2,348,547

  

  

 $

 2,306,586

  

  

 $

 2,255,389

  

  

 $

 2,221,245

  

 

 (1) No ACL on investment securities was recognized for the periods presented; includes securities available-for-sale and non-marketable equity securities.
(2) Includes commercial mortgage servicing rights of approximately $1.3 million, $1.3 million, $1.3 million, $1.2 million, and $1.1 million at June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025, respectively.
 

 6
 
 

 
 COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
 

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 Statements of Operations (unaudited)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 Table 3

  

 

 
  

 Three Months Ended

  

  

 Six Months Ended

  

 

 
  

 June 30,

  

  

 March 31,

  

  

 December 31,

  

  

 September 30,

  

  

 June 30,

  

  

 June 30,

  

  

 June 30,

  

 

 
 (dollars in thousands)

 2026

  

  

 2026

  

  

 2025

  

  

 2025

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Interest income

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest on cash and due from banks

 $

 121

  

  

 $

 125

  

  

 $

 109

  

  

 $

 129

  

  

 $

 111

  

  

 $

 246

  

  

 $

 246

  

 

 
 Interest on federal funds sold

  

 409

  

  

  

 792

  

  

  

 624

  

  

  

 616

  

  

  

 698

  

  

  

 1,201

  

  

  

 1,661

  

 

 
 Interest and dividends on investment  securities

  

 3,892

  

  

  

 3,611

  

  

  

 3,734

  

  

  

 4,125

  

  

  

 3,875

  

  

  

 7,503

  

  

  

 7,675

  

 

 
 Interest and fees on LHFS

  

 3,162

  

  

  

 2,915

  

  

  

 3,771

  

  

  

 3,422

  

  

  

 3,296

  

  

  

 6,077

  

  

  

 6,115

  

 

 
 Interest and fees on LHFI

  

 25,974

  

  

  

 25,125

  

  

  

 24,768

  

  

  

 24,598

  

  

  

 23,813

  

  

  

 51,099

  

  

  

 46,120

  

 

 
 Total interest income

  

 33,558

  

  

  

 32,568

  

  

  

 33,006

  

  

  

 32,890

  

  

  

 31,793

  

  

  

 66,126

  

  

  

 61,817

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest expense

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Deposits

  

 12,545

  

  

  

 12,592

  

  

  

 12,925

  

  

  

 13,274

  

  

  

 13,251

  

  

  

 25,137

  

  

  

 26,081

  

 

 
 Other borrowings

  

 348

  

  

  

 232

  

  

  

 218

  

  

  

 426

  

  

  

 464

  

  

  

 580

  

  

  

 899

  

 

 
 Total interest expense

  

 12,893

  

  

  

 12,824

  

  

  

 13,143

  

  

  

 13,700

  

  

  

 13,715

  

  

  

 25,717

  

  

  

 26,980

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Net interest income

  

 20,665

  

  

  

 19,744

  

  

  

 19,863

  

  

  

 19,190

  

  

  

 18,078

  

  

  

 40,409

  

  

  

 34,837

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Provision for credit losses

  

 658

  

  

  

 382

  

  

  

 1,162

  

  

  

 653

  

  

  

 752

  

  

  

 1,040

  

  

  

 1,381

  

 

 
 Net interest income after provision for  credit losses

  

 20,007

  

  

  

 19,362

  

  

  

 18,701

  

  

  

 18,537

  

  

  

 17,326

  

  

  

 39,369

  

  

  

 33,456

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Noninterest income

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Mortgage banking related income

  

 403

  

  

  

 394

  

  

  

 330

  

  

  

 299

  

  

  

 326

  

  

  

 797

  

  

  

 547

  

 

 
 Interchange and card fee income

  

 256

  

  

  

 273

  

  

  

 230

  

  

  

 238

  

  

  

 257

  

  

  

 529

  

  

  

 523

  

 

 
 Service charges on deposit accounts

  

 236

  

  

  

 232

  

  

  

 256

  

  

  

 208

  

  

  

 215

  

  

  

 468

  

  

  

 426

  

 

 
 Bank-owned life insurance

  

 466

  

  

  

 456

  

  

  

 462

  

  

  

 461

  

  

  

 449

  

  

  

 922

  

  

  

 889

  

 

 
 Gain on sale of government guaranteed  loans

  

 307

  

  

  

 337

  

  

  

 682

  

  

  

 613

  

  

  

 265

  

  

  

 644

  

  

  

 265

  

 

 
 Other noninterest income

  

 534

  

  

  

 275

  

  

  

 335

  

  

  

 281

  

  

  

 283

  

  

  

 809

  

  

  

 1,026

  

 

 
 Total noninterest income

  

 2,202

  

  

  

 1,967

  

  

  

 2,295

  

  

  

 2,100

  

  

  

 1,795

  

  

  

 4,169

  

  

  

 3,676

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Noninterest expense

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Salaries and employee benefits

  

 8,314

  

  

  

 8,046

  

  

  

 7,644

  

  

  

 6,985

  

  

  

 6,997

  

  

  

 16,360

  

  

  

 13,691

  

 

 
 Occupancy and equipment

  

 875

  

  

  

 886

  

  

  

 864

  

  

  

 850

  

  

  

 814

  

  

  

 1,761

  

  

  

 1,602

  

 

 
 Data processing

  

 682

  

  

  

 655

  

  

  

 640

  

  

  

 647

  

  

  

 653

  

  

  

 1,337

  

  

  

 1,277

  

 

 
 Other professional services

  

 632

  

  

  

 595

  

  

  

 391

  

  

  

 571

  

  

  

 973

  

  

  

 1,227

  

  

  

 1,666

  

 

 
 Software and other technology expense

  

 861

  

  

  

 826

  

  

  

 808

  

  

  

 788

  

  

  

 719

  

  

  

 1,687

  

  

  

 1,422

  

 

 
 Regulatory assessment

  

 308

  

  

  

 371

  

  

  

 369

  

  

  

 419

  

  

  

 344

  

  

  

 679

  

  

  

 705

  

 

 
 Other noninterest expense

  

 1,702

  

  

  

 1,665

  

  

  

 1,546

  

  

  

 1,596

  

  

  

 1,592

  

  

  

 3,367

  

  

  

 3,148

  

 

 
 Total noninterest expense

  

 13,374

  

  

  

 13,044

  

  

  

 12,262

  

  

  

 11,856

  

  

  

 12,092

  

  

  

 26,418

  

  

  

 23,511

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Net income before taxes

  

 8,835

  

  

  

 8,285

  

  

  

 8,734

  

  

  

 8,781

  

  

  

 7,029

  

  

  

 17,120

  

  

  

 13,621

  

 

 
 Income tax expense

  

 1,502

  

  

  

 1,956

  

  

  

 1,598

  

  

  

 2,040

  

  

  

 1,064

  

  

  

 3,458

  

  

  

 2,606

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Net income

 $

 7,333

  

  

 $

 6,329

  

  

 $

 7,136

  

  

 $

 6,741

  

  

 $

 5,965

  

  

 $

 13,662

  

  

 $

 11,015

  

 

  

 7
 
 

 
 COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
 

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 QTD Average Balances and Yields/Rates (unaudited)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 Table 4

  

 

 
  

  

 Three Months Ended

  

 

 
  

  

 June 30, 2026

  

  

 March 31, 2026

  

  

 June 30, 2025

  

 

 
  

  

 Average

  

  

  

  

  

 Yield/

  

  

 Average

  

  

  

  

  

 Yield/

  

  

 Average

  

  

  

  

  

 Yield/

  

 

 
 (dollars in thousands)

  

 Balance

  

  

 Interest

  

  

 Rate

  

  

 Balance

  

  

 Interest

  

  

 Rate

  

  

 Balance

  

  

 Interest

  

  

 Rate

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
  Earning assets:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Cash and due from banks

  

 $

 23,889

  

  

 $

 121

  

  

  

 2.03

 %

  

 $

 24,822

  

  

 $

 125

  

  

  

 2.04

 %

  

 $

 20,762

  

  

 $

 111

  

  

  

 2.14

 %

 

 
 Federal funds sold

  

  

 44,172

  

  

  

 409

  

  

  

 3.71

 %

  

  

 85,959

  

  

  

 792

  

  

  

 3.74

 %

  

  

 62,656

  

  

  

 698

  

  

  

 4.47

 %

 

 
 Investment securities

  

  

 358,658

  

  

  

 3,892

  

  

  

 4.35

 %

  

  

 343,772

  

  

  

 3,611

  

  

  

 4.26

 %

  

  

 338,635

  

  

  

 3,875

  

  

  

 4.59

 %

 

 
 Loans held for sale

  

  

 170,135

  

  

  

 3,162

  

  

  

 7.45

 %

  

  

 158,597

  

  

  

 2,915

  

  

  

 7.45

 %

  

  

 167,617

  

  

  

 3,296

  

  

  

 7.89

 %

 

 
 Loans held for investment

  

  

 1,668,045

  

  

  

 25,974

  

  

  

 6.25

 %

  

  

 1,618,301

  

  

  

 25,125

  

  

  

 6.30

 %

  

  

 1,506,211

  

  

  

 23,813

  

  

  

 6.34

 %

 

 
 Total earning assets

  

  

 2,264,899

  

  

  

 33,558

  

  

  

 5.94

 %

  

  

 2,231,451

  

  

  

 32,568

  

  

  

 5.92

 %

  

  

 2,095,881

  

  

  

 31,793

  

  

  

 6.08

 %

 

 
  Noninterest-earning assets:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Allowance for credit losses on LHFI

  

  

 (18,834

 )

  

  

  

  

  

  

  

  

 (18,746

 )

  

  

  

  

  

  

  

  

 (17,110

 )

  

  

  

  

  

  

 

 
 Bank-owned life insurance

  

  

 48,944

  

  

  

  

  

  

  

  

  

 48,487

  

  

  

  

  

  

  

  

  

 47,119

  

  

  

  

  

  

  

 

 
 Premises, furniture and equipment, net

  

  

 18,760

  

  

  

  

  

  

  

  

  

 18,458

  

  

  

  

  

  

  

  

  

 18,034

  

  

  

  

  

  

  

 

 
 Deferred tax asset

  

  

 16,702

  

  

  

  

  

  

  

  

  

 16,173

  

  

  

  

  

  

  

  

  

 17,182

  

  

  

  

  

  

  

 

 
 Goodwill & intangible assets

  

  

 6,229

  

  

  

  

  

  

  

  

  

 6,270

  

  

  

  

  

  

  

  

  

 6,168

  

  

  

  

  

  

  

 

 
 Other assets

  

  

 27,734

  

  

  

  

  

  

  

  

  

 27,365

  

  

  

  

  

  

  

  

  

 29,442

  

  

  

  

  

  

  

 

 
 Total noninterest-earning assets

  

  

 99,535

  

  

  

  

  

  

  

  

  

 98,007

  

  

  

  

  

  

  

  

  

 100,835

  

  

  

  

  

  

  

 

 
 Total assets

  

 $

 2,364,434

  

  

  

  

  

  

  

  

 $

 2,329,458

  

  

  

  

  

  

  

  

 $

 2,196,716

  

  

  

  

  

  

  

 

 
 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest-bearing liabilities:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest-bearing deposits

  

 $

 1,704,027

  

  

 $

 12,545

  

  

  

 2.95

 %

  

 $

 1,697,024

  

  

 $

 12,592

  

  

  

 3.01

 %

  

 $

 1,626,415

  

  

 $

 13,251

  

  

  

 3.27

 %

 

 
 Federal funds purchased

  

  

 -

  

  

  

 -

  

  

  

 0.00

 %

  

  

 -

  

  

  

 -

  

  

  

 0.00

 %

  

  

 38

  

  

  

 1

  

  

  

 10.56

 %

 

 
 Federal Home Loan Bank of   Atlanta advances

  

  

 36,209

  

  

  

 348

  

  

  

 3.85

 %

  

  

 24,667

  

  

  

 232

  

  

  

 3.81

 %

  

  

 10,000

  

  

  

 116

  

  

  

 4.65

 %

 

 
 Revolving commercial line of credit, net

  

  

 -

  

  

  

 -

  

  

  

 0.00

 %

  

  

 -

  

  

  

 -

  

  

  

 0.00

 %

  

  

 5,667

  

  

  

 112

  

  

  

 7.93

 %

 

 
 Subordinated debt, net

  

  

 -

  

  

  

 -

  

  

  

 0.00

 %

  

  

 -

  

  

  

 -

  

  

  

 0.00

 %

  

  

 14,747

  

  

  

 235

  

  

  

 6.39

 %

 

 
 Total interest-bearing liabilities

  

  

 1,740,236

  

  

  

 12,893

  

  

  

 2.97

 %

  

  

 1,721,691

  

  

  

 12,824

  

  

  

 3.02

 %

  

  

 1,656,867

  

  

  

 13,715

  

  

  

 3.32

 %

 

 
 Noninterest-bearing liabilities:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Noninterest-bearing deposits

  

  

 328,644

  

  

  

  

  

  

  

  

  

 315,023

  

  

  

  

  

  

  

  

  

 306,330

  

  

  

  

  

  

  

 

 
 Other liabilities

  

  

 28,580

  

  

  

  

  

  

  

  

  

 28,512

  

  

  

  

  

  

  

  

  

 27,682

  

  

  

  

  

  

  

 

 
 Total noninterest-bearing liabilities

  

  

 357,224

  

  

  

  

  

  

  

  

  

 343,535

  

  

  

  

  

  

  

  

  

 334,012

  

  

  

  

  

  

  

 

 
 Shareholders' equity

  

  

 266,974

  

  

  

  

  

  

  

  

  

 264,232

  

  

  

  

  

  

  

  

  

 205,837

  

  

  

  

  

  

  

 

 
 Total liabilities and shareholders' equity

  

 $

 2,364,434

  

  

  

  

  

  

  

  

 $

 2,329,458

  

  

  

  

  

  

  

  

 $

 2,196,716

  

  

  

  

  

  

  

 

 
 Net interest income

  

  

  

  

 $

 20,665

  

  

  

  

  

  

  

  

 $

 19,744

  

  

  

  

  

  

  

  

 $

 18,078

  

  

  

  

 

 
 Net interest spread

  

  

  

  

  

  

  

  

 2.97

 %

  

  

  

  

  

  

  

  

 2.90

 %

  

  

  

  

  

  

  

  

 2.76

 %

 

 
 Net interest margin

  

  

  

  

  

  

  

  

 3.66

 %

  

  

  

  

  

  

  

  

 3.59

 %

  

  

  

  

  

  

  

  

 3.46

 %

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Cost of total deposits (1)

  

  

  

  

  

  

  

  

 2.48

 %

  

  

  

  

  

  

  

  

 2.54

 %

  

  

  

  

  

  

  

  

 2.75

 %

 

 
 Cost of total funding (1)

  

  

  

  

  

  

  

  

 2.50

 %

  

  

  

  

  

  

  

  

 2.55

 %

  

  

  

  

  

  

  

  

 2.80

 %

 

 (1) Includes noninterest-bearing deposits.
 

 8
 
 

 
 COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
 

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 YTD Average Balances and Yields/Rates (unaudited)

  

  

  

  

  

  

  

  

  

  

 Table 5

  

 

 
  

  

 Six Months Ended

  

 

 
  

  

 June 30, 2026

  

  

 June 30, 2025

  

 

 
  

  

 Average

  

  

  

  

  

 Yield/

  

  

 Average

  

  

  

  

  

 Yield/

  

 

 
 (dollars in thousands)

  

 Balance

  

  

 Interest

  

  

 Rate

  

  

 Balance

  

  

 Interest

  

  

 Rate

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
  Earning assets:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Cash and due from banks

  

 $

 24,353

  

  

 $

 246

  

  

  

 2.04

 %

  

 $