ATLANTA--(BUSINESS WIRE)--July 28, 2025--
CoastalSouth Bancshares, Inc. ("CoastalSouth" or the "Company") (NYSE: COSO), the holding company for Coastal States Bank (the "Bank"), today reported net income of approximately $6.0 million, or $0.57 per diluted share, for the second quarter of 2025, compared to $5.1 million, or $0.47 per diluted share, for the first quarter of 2025, and $5.9 million, or $0.56 per diluted share, for the second quarter of 2024. For the year-to-date period ending June 30, 2025, the Company reported net income of $11.0 million, or $1.04 per diluted share, compared with $8.3 million, or $0.80 per diluted share, for the same period in 2024.
On July 3, 2025, the Company completed its initial public offering of 2,035,000 shares of common stock at a public offering price of $21.50 per share, before underwriting discounts and commissions. The Company received proceeds, net of underwriting discounts and commissions, of approximately $34.0 million in the offering related to the sale of 1,700,000 shares from the Company, and 335,000 additional shares were sold by selling shareholders. The Company's common stock began trading on the New York Stock Exchange on July 2, 2025, under the ticker symbol "COSO". The underwriters of the initial public offering have a 30-day option to purchase an additional 305,250 shares of common stock from selling shareholders at the initial public offering price to the public, less the underwriting discounts and commissions, from certain selling shareholders.
Commenting on the Company's results, President and Chief Executive Officer, Stephen R. Stone stated, "The Company delivered strong financial results in the second quarter with growth in both loans held for investment and loans held for sale, continued growth in core deposits, and continued improvement to our net interest margin. With the momentum of the first six months of this year, particularly with respect to loan originations, and the addition of four new commercial bankers and two new business development officers, we are well-positioned as we head into the second half of 2025."
Second Quarter 2025 Performance Highlights:
--
Net income of $6.0 million or $0.57 per diluted share
--
Return on average assets ("ROAA") of 1.09%
--
Return on average equity ("ROAE") of 11.62%; Return on average tangible
common equity ("ROATCE") of 11.92%1
--
Net interest margin of 3.46%, an increase of 8 basis points from the
first quarter
--
Loans held for investment ("LHFI") production of $201.1 million in
commitments led to LHFI growth of $55.0 million, up 15.0% annualized from
the first quarter
--
Book value per share growth of $0.70, or 14.2% annualized, to $20.37 at
June 30, 2025; Tangible book value1 per share growth of $0.71, or 14.9%
annualized, to $19.88 at June 30, 2025 from the first quarter
--
Total shareholders' equity to total assets of 9.43%, compared to 9.23%
at March 31, 2025; Tangible common equity 1 to tangible assets 1 of 9.22%,
compared to 9.01% at March 31, 2025
--
Net charge-offs to average loans held for investment of 0.06%
--
Nonperforming assets to total assets of 0.66%; adjusted nonperforming
assets to total assets 1 of 0.46%
--
Allowance for credit losses ("ACL") on LHFI to total LHFI of 1.15%; ACL
on LHFI to nonperforming loans of 118.99%
Operating Highlights
Net interest income totaled $18.1 million for the second quarter of 2025, an increase of $1.3 million, or 7.9%, from $16.8 million for the first quarter of 2025 and an increase of $1.4 million, or 8.3% from the second quarter of 2024. The Company's net interest margin expanded to 3.46% for the second quarter of 2025, an 8 basis point increase from the first quarter of 2025 and a 3 basis point increase from the second quarter of 2024.
The yield on average interest-earning assets for the second quarter of 2025 increased to 6.08% from 6.05% for the first quarter of 2025. This increase was primarily related to a 1 basis point increase in yield on LHFI and an increased average volume of approximately $77.8 million in the LHFI portfolio quarter over quarter. Compared to the second quarter of 2024, yields on earning assets decreased 31 basis points from 6.39%. The decrease was primarily attributable to a 33 basis point decrease in LHFI and an 84 basis point decrease in the yield on the loans held for sale portfolio.
The Company's total cost of funds was 2.80% for the second quarter of 2025, a decrease of 5 basis points and 33 basis points compared with the first quarter of 2025 and second quarter of 2024, respectively Deposit costs decreased 5 basis points during the second quarter of 2025 to 2.75%, compared to 2.80% in the first quarter of 2025. The cost of interest-bearing deposits decreased 5 basis points during the second quarter of 2025 to 3.27%, compared with 3.32% in the first quarter of 2025, reflecting continued repricing of certificates of deposits in the second quarter of 2025.
Noninterest income totaled $1.8 million for the second quarter of 2025, a decrease of $86 thousand, or 4.6%, from the first quarter of 2025, primarily due to a decrease in other noninterest income, offset by a net increase in mortgage banking related income, gain on sale of government guaranteed loans ("GGL"), and other categories. Noninterest expense totaled $12.1 million for the second quarter of 2025, an increase of $673 thousand, or 5.9%, from the first quarter of 2025, primarily due to higher salaries and employee benefits and other professional fees. A number of strategic hires were made during the quarter including new commercial bankers, new GGL business development officers, and one mortgage loan officer.
The Company's effective tax rate for the second quarter of 2025 was 15.1%, compared to 23.4% for the first quarter of 2025 and 21.1% for the second quarter of 2024. The decrease in effective tax rate from the first quarter of 2025 and the second quarter of 2024 was primarily due to the recognition of renewable energy tax credits.
(__________________________________) (1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10H.
Balance Sheet Trends
Total assets were $2.22 billion at June 30, 2025, an increase of $122.5 million, or 5.8%, from $2.10 billion at December 31, 2024. Loans held for sale ("LHFS") were $209.1 million at June 30, 2025, an increase of $35.1 million, or 20.2%, from $174.0 million at December 31, 2024. Gross LHFI were $1.53 billion at June 30, 2025, an increase of $117.8 million, or 8.4%, from $1.41 billion at December 31, 2024.
Total deposits were $1.97 billion at June 30, 2025, an increase of $133.5 million, or 7.3%, from $1.83 billion at December 31, 2024. Noninterest-bearing deposits were $313.4 million at June 30, 2025, compared to $302.9 million at December 31, 2024. Brokered certificates of deposits, a component of time deposits, were $307.9 million at June 30, 2025, as compared to $274.9 million at December 31, 2024, an increase of $33.0 million, or 12.0%.
Credit Quality
During the second quarter of 2025, the Company recorded a provision for credit losses of $752 thousand, compared to $629 thousand and $173 thousand during the first quarter of 2025 and second quarter of 2024, respectively. The provision expense recorded during the second quarter of 2025 was primarily due to increased loan production of LHFI, changes in economic factors, and current period net charge-offs, offset by other changes in loss rates. The Company's annualized net charge-offs to average LHFI ratio was 0.06% for the second quarter of 2025 as compared to 0.00% and 0.03% during the first quarter of 2025 and second quarter of 2024, respectively.
Nonperforming assets totaled $14.7 million, or 0.66% of total assets, at June 30, 2025 compared to $15.9 million, or 0.76% of total assets at December 31, 2024. The $1.2 million decrease in nonperforming assets at June 30, 2025 from December 31, 2024 was due to the sale of other real estate owned and payments collected on nonaccrual loans during the period. Adjusted nonperforming assets(2) , which excludes the guaranteed portions of nonaccrual loans, was $10.1 million, or 0.46% of total assets, at June 30, 2025 compared to $11.1 million, or 0.53% of total assets, at December 31, 2024.
(__________________________________) (2) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10H.
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.
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 a cyber-attack incidents or a deficiencies in cyber security; risks related to potential acquisitions; government actions, including tariffs, or trade wards (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 worlds 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 final prospectus filed pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, filed with the Securities and Exchange Commission (the "SEC") on July 2, 2025 (Registration No. 333-287854), relating to our initial public offering, 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.
COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
Financial Highlights (unaudited) Table 1A
------------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
As of and for the Six
As of and for the Three Months Ended Months Ended
--------------------------------------------------------------- ------------------------
(dollars in thousands December September
except June 30, March 31, 31, 30, June 30, June 30, June 30,
per share amounts) 2025 2025 2024 2024 2024 2025 2024
---------- ---------- ---------- ---------- ---------- ---------- ----------
Selected Operating
Data:
Interest income $ 31,793 $ 30,024 $ 30,537 $ 32,554 $ 31,170 $ 61,817 $ 60,558
Interest expense 13,715 13,265 14,266 15,588 14,470 26,980 28,473
Net interest income 18,078 16,759 16,271 16,966 16,700 34,837 32,085
Provision (recovery)
for credit losses 752 629 1,240 (1,023) 173 1,381 336
Noninterest income
(loss) 1,795 1,881 1,958 2,961 1,589 3,676 (405)
Noninterest expense 12,092 11,419 10,335 10,830 10,652 23,511 20,903
Income tax expense 1,064 1,542 950 2,236 1,577 2,606 2,125
Net income 5,965 5,050 5,704 7,884 5,887 11,015 8,316
Adjusted net income
(1) 5,965 5,050 5,704 7,884 5,887 11,015 10,970
Share and Per Share
Data:
Basic earnings per
share $ 0.58 $ 0.49 $ 0.56 $ 0.77 $ 0.58 $ 1.07 $ 0.82
Adjusted basic
earnings per share
(1) $ 0.58 $ 0.49 $ 0.56 $ 0.77 $ 0.57 $ 1.07 $ 1.08
Diluted earnings per
share $ 0.57 $ 0.47 $ 0.54 $ 0.75 $ 0.56 $ 1.04 $ 0.80
Adjusted diluted
earnings per share
(1) $ 0.57 $ 0.47 $ 0.54 $ 0.75 $ 0.56 $ 1.04 $ 1.06
Book value per share
(at period end) $ 20.37 $ 19.67 $ 19.01 $ 18.86 $ 17.58 $ 20.37 $ 17.58
Tangible book value
per share (1) $ 19.88 $ 19.17 $ 18.51 $ 18.35 $ 17.07 $ 19.88 $ 17.07
Shares of common
stock outstanding 10,278,921 10,274,271 10,270,146 10,250,446 10,250,446 10,278,921 10,250,446
Weighted average
diluted shares
outstanding 10,612,255 10,642,078 10,596,364 10,544,087 10,445,144 10,636,997 10,344,815
Selected Balance Sheet
Data:
Total assets $ 2,221,245 $ 2,190,391 $ 2,098,712 $ 2,129,346 $ 2,115,547 $ 2,221,245 $ 2,115,547
Securities
available-for-sale,
at fair value (2) 331,760 325,478 335,267 355,174 339,937 331,760 339,937
Gross loans held for
investment 1,527,199 1,472,232 1,409,443 1,409,913 1,442,077 1,527,199 1,442,077
Loans held for sale 209,101 187,481 174,033 193,938 154,885 209,101 154,885
Allowance for credit
losses 17,497 17,104 17,118 15,615 16,002 17,497 16,002
Goodwill and other
intangible assets 6,190 6,199 6,386 6,451 6,276 6,190 6,276
Deposits 1,968,301 1,937,693 1,834,802 1,807,315 1,805,590 1,968,301 1,805,590
Other borrowings 14,753 20,738 41,725 96,712 96,699 14,753 96,699
Total Shareholders'
equity 209,365 202,104 195,232 193,303 180,168 209,365 180,168
(1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP
financial measures in tables 10A - 10H. (2) The Company did not have securities held to maturity in any of the periods
presented.
COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
Financial Highlights - continued (unaudited) Table 1B
------------------------------------------------ -------- --------- ------ ------ -----------
As of and for the
As of and for the Three Months Ended Six Months Ended
------------------------------------------------------------------- --------------------
June December September June June June
30, March 31, 31, 30, 30, 30, 30,
(dollars in thousands) 2025 2025 2024 2024 2024 2025 2024
------ --------- -------- --------- ------ ------ ------
Performance Ratios:
Pre-tax
pre-provision net
revenue (PPNR) (1) $ 7,781 $ 7,221 $ 7,894 $ 9,097 $ 7,637 $15,002 $10,777
Return on average
assets (ROAA) (2) 1.09 % 0.97 % 1.07 % 1.47 % 1.15 % 1.03 % 0.82 %
Adjusted return on
average assets
(Adj. ROAA) (1)(2) 1.09 0.97 1.07 1.47 1.15 1.03 1.08
Return on average
equity (2) 11.62 10.25 11.65 16.91 13.52 10.95 9.78
Adjusted return on
average equity
(1)(2) 11.62 10.25 11.65 16.91 13.52 10.95 12.90
Return on average
tangible common
equity (ROATCE)
(1)(2) 11.92 10.52 11.97 17.40 13.94 11.23 10.09
Adjusted return on
average tangible
common equity (Adj.
ROATCE) (1)(2) 11.92 10.52 11.97 17.40 13.94 11.23 13.31
Net interest rate
spread (2) 2.76 2.67 2.42 2.48 2.58 2.72 2.51
Net interest margin
(2) 3.46 3.38 3.21 3.32 3.43 3.42 3.32
Efficiency ratio 60.85 61.26 56.70 54.35 58.24 61.05 65.98
Efficiency ratio, as
adjusted (1) 60.85 61.26 56.70 54.35 58.24 61.05 59.48
Noninterest income
to average total
assets (2) 0.33 0.36 0.37 0.55 0.31 0.34 (0.04)
Noninterest income
to total revenue 9.03 10.09 10.74 14.86 8.69 9.54 (1.28)
Adjusted noninterest
income to total
adjusted revenue
(1) 9.03 10.09 10.74 14.86 8.69 9.54 8.71
Noninterest expense
to average total
assets (2) 2.21 2.19 1.94 2.02 2.07 2.20 2.05
Average
interest-earning
assets to average
interest-bearing
liabilities 126.50 126.31 127.90 127.59 128.29 126.41 127.65
Average equity to
average total
assets 9.37 9.46 9.20 8.70 8.48 9.41 8.34
Asset Quality Data:
Net charge-offs to
average LHFI (2) 0.06 % 0.00 % (0.02) % 0.02 % 0.03 % 0.03 % 0.01 %
Net charge-offs to
total average loans
(2) 0.05 0.00 (0.02) 0.02 0.03 0.03 0.01
Total allowance for
credit losses to
total LHFI 1.15 1.16 1.21 1.11 1.11 1.15 1.11
Total allowance for
credit losses to
total loans 1.01 1.03 1.08 0.97 1.00 1.01 1.00
Total allowance for
credit losses to
nonperforming
loans 118.99 117.11 114.07 184.64 182.13 118.99 182.13
Nonperforming loans
to gross LHFI 0.96 0.99 1.06 0.60 0.61 0.96 0.61
Nonperforming assets
to total assets 0.66 0.70 0.76 0.44 0.42 0.66 0.42
Adjusted
nonperforming
assets to total
assets (1) 0.46 0.49 0.53 0.21 0.18 0.46 0.18
Balance Sheet and
Capital Ratios:
Loan-to-deposit
ratio 88.21 % 85.65 % 86.30 % 88.74 % 88.45 % 88.21 % 88.45 %
Noninterest bearing
deposits to total
deposits 15.92 15.52 16.51 17.28 19.10 15.92 19.10
Total shareholders'
equity to total
assets 9.43 9.23 9.30 9.08 8.52 9.43 8.52
Tangible common
equity to tangible
assets (1) 9.22 9.01 9.08 8.86 8.29 9.22 8.29
Other:
Number of branches 11 11 11 11 11 11 11
Number of full-time
equivalent
employees 188 180 181 181 178 183 177
(1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP
financial measures in tables 10A - 10H. (2) Represents annualized data.
COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
Quarter End Balance
Sheets (unaudited) Table 2
----------------------- ---------- ---------- ---------- ---------- ----------
December September
June 30, March 31, 31, 30, June 30,
(dollars in thousands) 2025 2025 2024 2024 2024
---------- ---------- ---------- ---------- ----------
Assets
Cash and due from banks $ 23,245 $ 19,380 $ 37,320 $ 17,722 $ 21,385
Federal funds sold 20,045 79,153 30,641 43,602 42,057
Investment securities
(1) 338,601 332,312 342,750 361,935 346,687
Loans held for sale
(LHFS) 209,101 187,481 174,033 193,938 154,885
Loans held for
investment (LHFI) 1,527,199 1,472,232 1,409,443 1,409,913 1,442,077
Allowance for credit
losses on LHFI (17,497) (17,104) (17,118) (15,615) (16,002)
--------- --------- --------- --------- ---------
Loans held for
investment, net 1,509,702 1,455,128 1,392,325 1,394,298 1,426,075
Bank-owned life
insurance 47,373 46,924 46,484 46,044 45,607
Premises, furniture and
equipment, net 18,166 17,837 17,796 17,882 17,533
Deferred tax asset 17,211 17,123 18,148 16,772 18,641
Goodwill & intangible
assets (2) 6,190 6,199 6,386 6,451 6,276
Other assets 31,611 28,854 32,829 30,702 36,401
--------- --------- --------- --------- ---------
Total assets $2,221,245 $2,190,391 $2,098,712 $2,129,346 $2,115,547
========= ========= ========= ========= =========
Liabilities and
stockholders' equity
Liabilities
Deposits
Noninterest
bearing DDA $ 313,386 $ 300,678 $ 302,907 $ 312,290 $ 344,860
Interest bearing
DDA 209,816 191,452 181,068 183,707 179,557
Savings and money
market 628,729 650,050 591,626 654,192 658,542
Certificates of
deposit 816,370 795,513 759,201 657,126 622,631
--------- --------- --------- --------- ---------
Total deposits 1,968,301 1,937,693 1,834,802 1,807,315 1,805,590
Federal Home Loan
Bank of Atlanta
advances - - 15,000 - -
Subordinated debt,
net 14,753 14,741 14,730 14,718 14,706
Revolving commercial
line of credit,
net - 5,997 11,995 11,994 11,993
Federal Reserve Bank
- Bank Term Funding
Program ("BTFP")
advances - - - 70,000 70,000
Other liabilities 28,826 29,856 26,953 32,016 33,090
--------- --------- --------- --------- ---------
Total
liabilities 2,011,880 1,988,287 1,903,480 1,936,043 1,935,379
Stockholders' equity
Voting common stock 8,107 8,102 8,098 8,078 8,078
Nonvoting common
stock 2,172 2,172 2,172 2,172 2,172
Capital surplus 159,267 158,997 158,755 158,463 158,125
Accumulated income 53,009 47,044 41,994 36,290 28,406
Accumulated other
comprehensive loss (13,190) (14,211) (15,787) (11,700) (16,613)
--------- --------- --------- --------- ---------
Total
stockholders'
equity 209,365 202,104 195,232 193,303 180,168
Total
liabilities
and
stockholders'
equity $2,221,245 $2,190,391 $2,098,712 $2,129,346 $2,115,547
========= ========= ========= ========= =========
(1) No ACL was recognized for the periods presented. (2) Includes commercial mortgage
servicing assets of $1.1 million, $1.1 million, $1.2 million, $1.3 million, and $1.0
million for June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June
30, 2024, respectively.
COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
Statements of
Operations (unaudited) Table 3
----------------------- ------- ------- --------- ---------- ------- ------- -------
Three Months Ended Six Months Ended
------------------------------------------------- ----------------
June March December September June June June
30, 31, 31, 30, 30, 30, 30,
(dollars in thousands) 2025 2025 2024 2024 2024 2025 2024
------- ------- --------- ---------- ------- ------- -------
Interest income
Interest on cash and
due from banks $ 111 $ 135 $ 122 $ 131 $ 140 $ 246 $ 281
Interest on federal
funds sold 698 963 870 1,045 842 1,661 1,836
Interest and dividends
on investment
securities 3,875 3,800 3,994 4,171 4,220 7,675 7,881
Interest and fees on
LHFS 3,296 2,819 3,404 2,993 2,335 6,115 3,875
Interest and fees on
LHFI 23,813 22,307 22,147 24,214 23,633 46,120 46,685
------ ------ -------- --------- ------ ------ ------
Total interest
income 31,793 30,024 30,537 32,554 31,170 61,817 60,558
------ ------ -------- --------- ------ ------ ------
Interest expense
Deposits 13,251 12,830 13,498 14,230 13,122 26,081 25,715
Other borrowings 464 435 768 1,358 1,348 899 2,758
------ ------ -------- --------- ------ ------ ------
Total interest
expense 13,715 13,265 14,266 15,588 14,470 26,980 28,473
------ ------ -------- --------- ------ ------ ------
Net interest income 18,078 16,759 16,271 16,966 16,700 34,837 32,085
Provision (recovery)
for credit losses 752 629 1,240 (1,023) 173 1,381 336
------ ------ -------- --------- ------ ------ ------
Net interest income
after provision for
credit losses 17,326 16,130 15,031 17,989 16,527 33,456 31,749
------ ------ -------- --------- ------ ------ ------
Noninterest income
Mortgage banking
related income 326 221 391 276 299 547 537
Interchange and card
fee Income 257 266 210 216 226 523 442
Service charges on
deposit accounts 215 211 230 207 198 426 409
Bank-owned life
insurance 449 440 440 437 491 889 787
Gain on sale of
government guaranteed
loans 265 - 151 1,312 35 265 355
Losses on sale of
available-for-sale
securities - - - - - - (3,465)
Other noninterest
income 283 743 536 513 340 1,026 530
------ ------ -------- --------- ------ ------ ------
Total noninterest
income (loss) 1,795 1,881 1,958 2,961 1,589 3,676 (405)
Noninterest expense
Salaries and employee
benefits 6,997 6,694 6,759 6,727 6,654 13,691 12,701
Occupancy and equipment 814 788 762 754 736 1,602 1,479
Data processing 653 624 605 548 534 1,277 1,060
Other professional fees 973 693 496 358 501 1,666 1,192
Software and other
technology expense 719 703 774 671 631 1,422 1,297
Regulatory assessment 344 361 336 344 318 705 611
Other noninterest
expense 1,592 1,556 603 1,428 1,278 3,148 2,563
------ ------ -------- --------- ------ ------ ------
Total noninterest
expense 12,092 11,419 10,335 10,830 10,652 23,511 20,903
Net income before taxes 7,029 6,592 6,654 10,120 7,464 13,621 10,441
Income tax expense 1,064 1,542 950 2,236 1,577 2,606 2,125
Net income $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 5,887 $11,015 $ 8,316
====== ====== ======== ========= ====== ====== ======
COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
QTD Average Balances and Yields/Rates (unaudited) Table 4
------------------------------------------------- ------ ---------- ---------- ------ ---------- ------------------
Three Months Ended
---------------------------------------------------------------------------------------------------------
June 30, 2025 March 31, 2025 June 30, 2024
------------------------------- ------------------------------- -------------------------------
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 $ 20,762 $ 111 2.14% $ 22,725 $ 135 2.41% $ 20,839 $ 140 2.70%
Federal funds sold 62,656 698 4.47% 88,478 963 4.41% 60,964 842 5.55%
Investment securities 338,635 3,875 4.59% 335,254 3,800 4.60% 347,194 4,220 4.89%
Loans held for sale 167,617 3,296 7.89% 136,849 2,819 8.35% 107,604 2,335 8.73%
Loans held for
investment 1,506,211 23,813 6.34% 1,428,405 22,307 6.33% 1,424,411 23,633 6.67%
--------- ------ ------ --------- ------ ------ --------- ------ ------
Total earning
assets 2,095,881 31,793 6.08% 2,011,711 30,024 6.05% 1,961,012 31,170 6.39%
Noninterest-earning
assets:
Allowance for credit
losses on LHFI (17,110) (17,116) (16,163)
Bank-owned life
insurance 47,119 46,672 45,360
Premises, furniture
and equipment, net 18,034 17,851 17,634
Deferred tax asset 17,182 17,803 19,321
Goodwill & intangible
assets 6,168 6,328 6,355
Other assets 29,442 27,947 31,983
--------- --------- ---------
Total
noninterest-earning
assets 100,835 99,485 104,490
--------- --------- ---------
Total assets $2,196,716 $2,111,196 $2,065,502
========= ========= =========
Interest-bearing
liabilities:
Interest-bearing
deposits $1,626,415 $ 13,251 3.27% $1,566,856 $ 12,830 3.32% $1,431,853 $ 13,122 3.69%
Federal Reserve Bank -
BTFP - - 0.00% - - 0.00% 70,000 854 4.91%
Federal funds purchased 38 1 10.56% - - 0.00% - - 0.00%
Federal Home Loan Bank
of Atlanta advances 10,000 116 4.65% 1,166 13 4.52% - - 0.00%
Revolving commercial
line of credit, net 5,667 112 7.93% 9,863 187 7.69% 11,992 259 8.69%
Subordinated debt, net 14,747 235 6.39% 14,735 235 6.47% 14,700 235 6.43%
--------- ------ ------ --------- ------ ------ --------- ------ ------
Total
interest-bearing
liabilities 1,656,867 13,715 3.32% 1,592,620 13,265 3.38% 1,528,545 14,470 3.81%
Noninterest-bearing
liabilities:
Noninterest-bearing
deposits 306,330 293,387 333,001
Other liabilities 27,682 25,426 28,825
--------- --------- ---------
Total
noninterest-bearing
liabilities 334,012 318,813 361,826
Stockholders' equity 205,837 199,763 175,131
--------- --------- ---------
Total liabilities
and stockholders'
equity $2,196,716 $2,111,196 $2,065,502
========= ---------- ========= ---------- ========= ----------
Net interest income $ 18,078 $ 16,759 $ 16,700
====== ------ ====== ------ ====== ------
Net interest spread 2.76% 2.67% 2.58%
------ ------ ------
Net interest margin 3.46% 3.38% 3.43%
------ ------ ------
Cost of total deposits
(1) 2.75% 2.80% 2.99%
Cost of total funding
(1) 2.80% 2.85% 3.13%
(1) Includes noninterest bearing deposits.
COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
Table
YTD Average Balances and Yields/Rates (unaudited) 5
---------------------------------------------------- ------ ---------- ---------- ------
Six Months Ended
--------------------------------------------------------------------
June 30, 2025 June 30, 2024
------------------------------- -------------------------------
Average Yield/ Average Yield/
(dollars in thousands) Balance Interest Rate Balance Interest Rate
---------- ---------- ------ ---------- ---------- ------
Earning assets:
Cash and due from banks $ 21,738 $ 246 2.28% $ 20,987 $ 281 2.69%
Federal funds sold 75,496 1,661 4.44% 65,259 1,836 5.66%
Investment securities 336,954 7,675 4.59% 350,865 7,881 4.52%
Loans held for sale 152,318 6,115 8.10% 89,422 3,875 8.71%
Loans held for
investment 1,467,523 46,120 6.34% 1,416,431 46,685 6.63%
--------- ------ ------ --------- ------ ------
Total earning assets 2,054,029 61,817 6.07% 1,942,964 60,558 6.27%
Noninterest-earning
assets:
Allowance for credit
losses on LHFI (17,113) (15,908)
Bank-owned life
insurance 46,897 45,168
Premises, furniture and
equipment, net 17,943 17,647
Deferred tax asset 17,491 20,235
Goodwill & intangible
assets 6,248 6,400
Other assets 29,582 33,677
--------- ---------
Total
noninterest-earning
assets 101,048 107,219
--------- ---------
Total assets $2,155,077 $2,050,183
========= =========
Interest-bearing
liabilities:
Interest-bearing deposits $1,596,799 $ 26,081 3.29% $1,424,505 $ 25,715 3.63%
Federal Reserve Bank - BTFP - - 0.00% 66,539 1,622 4.90%
Federal funds purchased 19 1 10.61% - - 0.00%
Federal Home Loan Bank of
Atlanta advances 5,607 128 4.60% 2,747 77 5.64%
Revolving commercial line
of credit, net 7,754 300 7.80% 13,574 589 8.73%
Subordinated debt, net 14,741 470 6.43% 14,694 470 6.43%
--------- ------ ------ --------- ------ ------
Total
interest-bearing
liabilities 1,624,920 26,980 3.35% 1,522,059 28,473 3.76%
Noninterest-bearing
liabilities:
Noninterest bearing
deposits 299,895 327,210
Other liabilities 27,445 29,841
--------- ---------
Total
noninterest-bearing
liabilities 327,340 357,051
Stockholders' equity 202,817 171,073
--------- ---------
Total liabilities and
stockholders'
equity $2,155,077 $2,050,183
========= =========
Net interest income $ 34,837 $ 32,085
====== ------ ====== ------
Net interest spread 2.72% 2.51%
------ ------
Net interest margin 3.42% 3.32%
------ ------
Cost of total deposits (1) 2.77% 2.95%
Cost of total funding (1) 2.83% 3.10%
(1) Includes noninterest
bearing deposits.
COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
Loan Data (unaudited) Table 6
----------------------- ---------- ----- ---------- ----- ---------- -------- ---------- --------- -----------------
As of the Quarter Ended
--------------------------------------------------------------------------------------------------------------------
June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024
----------------- ----------------- -------------------- --------------------- -----------------
% of % of % of % of % of
(dollars in thousands) Amount Total Amount Total Amount Total Amount Total Amount Total
---------- ----- ---------- ----- ---------- -------- ---------- --------- ---------- -----
Loans held for
investment ("LHFI"):
Commercial Loans
Acquisition,
development and
construction $ 100,528 6.6% $ 76,453 5.2% $ 72,520 5.2% $ 112,275 8.0% $ 109,855 7.6%
Income producing
CRE 372,142 24.4 352,693 24.0 321,558 22.8 267,551 19.0 272,397 18.9
Owner-occupied
CRE 91,147 6.0 90,204 6.1 94,573 6.7 95,789 6.8 100,272 7.0
Senior housing 236,474 15.5 245,292 16.7 234,081 16.6 231,260 16.4 245,591 17.0
Commercial and
industrial 131,716 8.6 145,784 9.8 141,626 10.0 140,290 10.0 137,571 9.5
Retail Loans
Marine vessels 301,327 19.7 284,305 19.3 263,657 18.6 279,689 19.8 288,949 20.0
Residential
mortgages 185,527 12.1 176,794 12.0 174,099 12.4 173,392 12.3 172,505 12.0
Cash value life
insurance LOC 87,135 5.7 80,503 5.5 86,844 6.2 87,968 6.2 93,657 6.5
Other consumer 21,203 1.4 20,204 1.4 20,485 1.5 21,699 1.5 21,280 1.5
--------- ----- --------- ----- --------- -------- --------- --------- --------- -----
Gross loans held for
investment $1,527,199 100.0% $1,472,232 100.0% $1,409,443 100.0% $1,409,913 100.0% $1,442,077 100.0%
--------- --------- --------- --------- ---------
Core LHFI 1,464,200 1,406,199 1,342,073 1,341,135 1,369,629
Acquired LHFI (1) 62,999 66,033 67,370 68,778 72,448
--------- --------- --------- --------- ---------
Gross loans held for
investment $1,527,199 $1,472,232 $1,409,443 $1,409,913 $1,442,077
--------- --------- --------- --------- ---------
Allowance for
credit losses on
LHFI 17,497 17,104 17,118 15,615 16,002
--------- --------- --------- --------- ---------
Net loans held for
investment $1,509,702 $1,455,128 $1,392,325 $1,394,298 $1,426,075
Total loans
held-for-sale 209,101 187,481 174,033 193,938 154,885
--------- --------- --------- --------- ---------
Total Loans $1,736,300 $1,659,713 $1,583,476 $1,603,851 $1,596,962
========= ========= ========= ========= =========
(1) Includes loans acquired through business combinations.
Table
Nonperforming Assets (unaudited) 7
-------------------------------------------------------------------------------- ------
As of the Quarter Ended
-------------------------------------------------------------------
June March June
30, 31, December September 30, 30,
(dollars in thousands) 2025 2025 31, 2024 2024 2024
------- ------- --------- -------------- ------
Nonaccrual loans $14,611 $14,599 $ 14,957 $ 8,408 $8,739
Past due loans 90
days and still
accruing 93 6 49 49 47
------ ------ -------- ------------- -----
Total
nonperforming
loans $14,704 $14,605 $ 15,006 $ 8,457 $8,786
Other real estate
owned - 765 864 864 -
------ ------ -------- ------------- -----
Total
nonperforming
assets $14,704 $15,370 $ 15,870 $ 9,321 $8,786
====== ====== ======== ============= =====
Nonperforming loans
to gross LHFI 0.96% 0.99% 1.06% 0.60% 0.61%
Nonaccrual loans to
total assets 0.66% 0.67% 0.71% 0.39% 0.41%
Nonperforming assets
to total assets 0.66% 0.70% 0.76% 0.44% 0.42%
COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
Allowance for Credit Losses
(unaudited) Table 8
---------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
As of and for the Six
As of and for the Three Months Ended Months Ended
-------------------------------------------------------------------------- --------------------------
December September
June 30, March 31, 31, 30, June 30, June 30, June 30,
(dollars in thousands) 2025 2025 2024 2024 2024 2025 2024
---------- ---------- ---------- ---------- ---------- ---------- ----------
Allowance for credit losses on
LHFI
Balance, beginning of period $ 17,104 $ 17,118 $ 15,615 $ 16,002 $ 15,774 $ 17,118 $ 15,465
Net charge-offs/(recoveries):
Commercial Loans
Acquisition, development and
construction - - - - - - -
Income producing CRE - - - - - - -
Owner-occupied CRE - - (53) - - - -
Senior housing - - - - - - -
Commercial and industrial 19 1 3 30 54 20 49
Retail Loans
Marine vessels - - - 36 - - -
Residential mortgages (3) (2) (2) (7) (3) (5) (6)
Cash value life insurance LOC - - - - 47 - 47
Other consumer 192 16 (25) 27 (2) 208 (3)
--------- --------- --------- --------- --------- --------- ---------
Total net
charge-offs/(recoveries) $ 208 $ 15 $ (77) $ 86 $ 96 $ 223 $ 87
--------- --------- --------- --------- --------- --------- ---------
Provision (recovery) for loan
credit losses 601 1 1,426 (301) 324 602 624
--------- --------- --------- --------- --------- --------- ---------
Balance, ending of period $ 17,497 $ 17,104 $ 17,118 $ 15,615 $ 16,002 $ 17,497 $ 16,002
--------- --------- --------- --------- --------- --------- ---------
Allowance for credit losses for
unfunded commitments
Period beginning balance $ 3,348 $ 2,720 $ 2,906 $ 3,628 $ 3,779 $ 2,720 $ 3,916
Provision (recapture) for credit
losses 151 628 (186) (722) (151) 779 (288)
--------- --------- --------- --------- --------- --------- ---------
Period ending balance $ 3,499 $ 3,348 $ 2,720 $ 2,906 $ 3,628 $ 3,499 $ 3,628
--------- --------- --------- --------- --------- --------- ---------
Balance, end of period - Allowance
for credit losses: LHFI and
unfunded commitments $ 20,996 $ 20,452 $ 19,838 $ 18,521 $ 19,630 $ 20,996 $ 19,630
========= ========= ========= ========= ========= ========= =========
Total loans held for investment $1,527,199 $1,472,232 $1,409,443 $1,409,913 $1,442,077 $1,527,199 $1,442,077
Credit Analysis
Net charge-offs to average LHFI 0.06% 0.00% (0.02)% 0.02% 0.03% 0.03% 0.01%
Total allowance for credit
losses on LHFI to total LHFI 1.15% 1.16% 1.21% 1.11% 1.11% 1.15% 1.11%
Total allowance for credit
losses on LHFI to nonaccrual
loans 119.75% 117.16% 114.45% 185.72% 183.11% 119.75% 183.11%
Total allowance for credit
losses on LHFI to total
nonperforming loans 118.99% 117.11% 114.07% 184.64% 182.13% 118.99% 182.13%
COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
Loan Risk Ratings (1)
(2) (unaudited) Table 9
----------------------- ---------- ---------- ---------- ---------- ----------
As of the Quarter Ended
----------------------------------------------------------
June 30, March 31, December September June 30,
(dollars in thousands) 2025 2025 31, 2024 30, 2024 2024
---------- ---------- ---------- ---------- ----------
Acquisition,
development and
construction (1)
Pass $ 100,528 $ 76,453 $ 72,520 $ 112,275 $ 109,855
Special mention - - - - -
Substandard - - - - -
--------- --------- --------- --------- ---------
Total
acquisition,
development and
construction $ 100,528 $ 76,453 $ 72,520 $ 112,275 $ 109,855
========= ========= ========= ========= =========
Income producing CRE
(1)
Pass $ 371,255 $ 352,281 $ 321,146 $ 262,287 $ 267,107
Special mention - - - 4,852 4,878
Substandard 887 412 412 412 412
--------- --------- --------- --------- ---------
Total income
producing $ 372,142 $ 352,693 $ 321,558 $ 267,551 $ 272,397
========= ========= ========= ========= =========
Owner-occupied CRE (1)
Pass $ 81,244 $ 83,711 $ 87,906 $ 89,133 $ 92,591
Special mention 3,612 - - 1,838 1,847
Substandard 6,291 6,493 6,667 4,818 5,834
--------- --------- --------- --------- ---------
Total owner
occupied $ 91,147 $ 90,204 $ 94,573 $ 95,789 $ 100,272
========= ========= ========= ========= =========
Senior housing (1)
Pass $ 217,971 $ 208,922 $ 190,084 $ 184,178 $ 211,780
Special mention 12,078 24,814 25,025 17,493 17,667
Substandard 6,425 11,556 18,972 29,589 16,144
--------- --------- --------- --------- ---------
Total senior
housing $ 236,474 $ 245,292 $ 234,081 $ 231,260 $ 245,591
========= ========= ========= ========= =========
Commercial and
industrial (2)
Pass $ 124,979 $ 141,202 $ 136,878 $ 135,476 $ 132,707
Special mention 2,199 - 36 189 191
Substandard 4,538 4,582 4,712 4,625 4,673
--------- --------- --------- --------- ---------
Total non-real
estate $ 131,716 $ 145,784 $ 141,626 $ 140,290 $ 137,571
========= ========= ========= ========= =========
Marine vessels (2)
Performing $ 301,327 $ 284,305 $ 263,657 $ 279,689 $ 288,949
Nonperforming - - - - -
--------- --------- --------- --------- ---------
Total marine
vessels $ 301,327 $ 284,305 $ 263,657 $ 279,689 $ 288,949
========= ========= ========= ========= =========
Residential mortgages
(2)
Performing $ 185,162 $ 176,633 $ 173,834 $ 173,122 $ 172,104
Nonperforming 365 161 265 270 401
--------- --------- --------- --------- ---------
Total residential
mortgages $ 185,527 $ 176,794 $ 174,099 $ 173,392 $ 172,505
========= ========= ========= ========= =========
Cash value life
insurance LOC (2)
Performing $ 87,135 $ 80,503 $ 86,844 $ 87,968 $ 93,655
Nonperforming - - - - 2
--------- --------- --------- --------- ---------
Total cash value
life insurance
LOC $ 87,135 $ 80,503 $ 86,844 $ 87,968 $ 93,657
========= ========= ========= ========= =========
Other consumer (2)
Performing $ 21,203 $ 20,204 $ 20,442 $ 21,699 $ 21,252
Nonperforming - - 43 - 28
--------- --------- --------- --------- ---------
Total other
consumer $ 21,203 $ 20,204 $ 20,485 $ 21,699 $ 21,280
========= ========= ========= ========= =========
Gross loans held for
investment $1,527,199 $1,472,232 $1,409,443 $1,409,913 $1,442,077
========= ========= ========= ========= =========
(1) There were no commercial loans classified as doubtful.
(2) Retail loans are classified as either performing or nonperforming.
Non-GAAP Financial Measures
The measures entitled return on average tangible common equity, tangible book value per share, tangible common equity, tangible assets, adjusted nonperforming assets to total assets, adjusted nonperforming assets, adjusted net income, adjusted basic earnings per share, adjusted diluted earnings per share, pre-tax, pre-provision net revenue, adjusted return on average assets, adjusted return on average equity, efficiency ratio, as adjusted, adjusted return on average tangible common equity, adjusted noninterest income to total revenue, and tangible common equity to tangible assets are not measures recognized under accounting principles generally accepted in the United States of America ("GAAP") and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are return on average shareholders' equity, book value per share, total shareholders' equity, total assets, total nonperforming assets to total assets, total nonperforming assets, net income, basic earnings per share, diluted earnings per share, net income, return on average assets, return on average equity, the efficiency ratio, return on average equity, noninterest income to total revenue, total common equity to total assets, respectively.
(MORE TO FOLLOW) Dow Jones Newswires
July 28, 2025 19:23 ET (23:23 GMT)
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。