ATLANTA--(BUSINESS WIRE)--October 20, 2025--
CoastalSouth Bancshares, Inc. ("CoastalSouth" or the "Company") (NYSE: COSO), the holding company for Coastal States Bank (the "Bank"), today reported net income of $6.7 million, or $0.54 per diluted share, for the third quarter of 2025, compared to approximately $6.0 million, or $0.57 per diluted share, for the second quarter of 2025, and $7.9 million, or $0.75 per diluted share, for the third quarter of 2024. For the year-to-date period ending September 30, 2025, the Company reported net income of $17.8 million, or $1.58 per diluted share, compared with $16.2 million, or $1.55 per diluted share, for the same period in 2024.
Commenting on the Company's results, President and Chief Executive Officer, Stephen R. Stone stated, "Following the completion of our initial public offering on July 2, 2025, the Company continued to deliver excellent financial performance through the third quarter of 2025. Loan production continued to be robust with over $137.3 million in new commitments originated during the third quarter of 2025 while maintaining strong asset quality metrics. Given the recent acceleration of mergers and acquisition activity in our markets, we continue to focus on recruiting new bankers to expand our presence within our markets and grow new relationships."
Third Quarter 2025 Performance Highlights:
-- Net income of $6.7 million or $0.54 per diluted share
-- Return on average assets ("ROAA") of 1.20%
-- Return on average equity ("ROAE") of 10.84%; Return on average tangible
common equity ("ROATCE") of 11.07%1
-- Net interest margin of 3.58%, an increase of 12 basis points from the
second quarter of 2025
-- Efficiency ratio of 55.69% for the third quarter of 2025
-- Loans held for investment ("LHFI") production of $137.3 million in
commitments led to LHFI growth of $25.8 million, up 6.7% annualized from
the second quarter of 2025
-- Book value per share growth of $0.54, or 10.5% annualized, to $20.91 at
September 30, 2025; Tangible book value1 per share growth of $0.61, or
12.2% annualized, to $20.49 at September 30, 2025 from the second quarter
of 2025
-- Total shareholders' equity to total assets of 11.10%, compared to 9.43%
at June 30, 2025; Tangible common equity1 to tangible assets1 of 10.91%,
compared to 9.22% at June 30, 2025
-- Net charge-offs to average loans held for investment of 0.03%
-- Nonperforming assets to total assets of 0.63%; adjusted nonperforming
assets to total assets1 of 0.43%
-- Allowance for credit losses ("ACL") on LHFI to total LHFI of 1.16%; ACL
on LHFI to nonperforming loans of 127.03%
-- Completed initial public offering of 2,035,000 shares on July 2, 2025
with an initial offering price of $21.50. The Company issued 1,700,000
shares for net proceeds of $30.2 million following discounts, commissions,
and expenses
-- Redeemed $15.0 million of subordinated debt; recognized $236 thousand
of accelerated debt issuance expense
Operating Highlights
Net interest income totaled $19.2 million for the third quarter of 2025, an increase of $1.1 million, or 6.2%, from $18.1 million for the second quarter of 2025 and an increase of $2.2 million, or 13.1% from the third quarter of 2024. The Company's net interest margin expanded to 3.58% for the third quarter of 2025, a 12 basis point increase from the second quarter of 2025 and a 26 basis point increase from the third quarter of 2024.
The yield on average interest-earning assets for the third quarter of 2025 increased to 6.14% from 6.08% for the second quarter of 2025. This increase was primarily related to an overall yield increase in all categories except a 2 basis point decrease in yield on LHFI albeit with an increased average volume of approximately $37.2 million in the LHFI portfolio quarter over quarter. The yield on available-for-sale securities was positively impacted by $225 thousand of premium recognized on corporate bonds that were called ahead of maturity. Compared to the third quarter of 2024, yields on earning assets decreased 23 basis points to 6.14% from 6.37%. The decrease was primarily attributable to a 37 basis point decrease in LHFI, a 26 basis point decrease in the yield on the loans held for sale ("LHFS") portfolio, and a net decrease in other earning assets categories.
____________________ (1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10I.
The Company's total cost of funds was 2.79% for the third quarter of 2025, a decrease of 1 basis point and 45 basis points compared with the second quarter of 2025 and third quarter of 2024, respectively. The cost of funds was impacted by the recognition of a $236 thousand debt issuance costs which were accelerated due to redemption of the Company's subordinated debt. Deposit costs decreased 3 basis points during the third quarter of 2025 to 2.72%, compared to 2.75% in the second quarter of 2025. The cost of interest-bearing deposits decreased 4 basis points during the third quarter of 2025 to 3.23%, compared with 3.27% in the second quarter of 2025, reflecting continued repricing of certificates of deposits in the third quarter of 2025.
Noninterest income totaled $2.1 million for the third quarter of 2025, an increase of $305 thousand, or 17.0%, from the second quarter of 2025, primarily attributable to an increase in gain on sale of government guaranteed loans ("GGL"). Noninterest expense totaled $11.9 million for the third quarter of 2025, a decrease of $236 thousand, or 2.0%, from the second quarter of 2025, primarily due to lower other professional fees, offset by a net increase in other noninterest expense categories.
The Company's effective tax rate for the third quarter of 2025 was 23.2%, compared to 15.1% for the second quarter of 2025 and 22.1% for the third quarter of 2024. The increase in effective tax rate from the second quarter of 2025 was primarily due to a higher recognition of renewable energy tax credits in the second quarter of 2025.
Balance Sheet Trends
Total assets were $2.26 billion at September 30, 2025, an increase of $156.7 million, or 7.5%, from $2.10 billion at December 31, 2024. LHFS were $231.6 million at September 30, 2025, an increase of $57.6 million, or 33.1%, from $174.0 million at December 31, 2024. Gross LHFI were $1.55 billion at September 30, 2025, an increase of $143.5 million, or 10.2%, from $1.41 billion at December 31, 2024.
Total deposits were $1.95 billion at September 30, 2025, an increase of $114.9 million, or 6.3%, from $1.83 billion at December 31, 2024. Noninterest-bearing deposits were $313.6 million at September 30, 2025, or 16.1% of total deposits, compared to $302.9 million, or 16.5% of total deposits, at December 31, 2024. Brokered certificates of deposits, a component of time deposits, were $294.9 million at September 30, 2025, as compared to $274.9 million at December 31, 2024, an increase of $20.0 million, or 7.3%.
Credit Quality
During the third quarter of 2025, the Company recorded a provision (recovery) for credit losses of $653 thousand, compared to $752 thousand and ($1.0) million during the second quarter of 2025 and third quarter of 2024, respectively. The provision expense recorded during the third quarter of 2025 was primarily due to increased loan production and current period net charge-offs, offset by other changes in loss rates and economic factors. The Company's annualized net charge-offs to average LHFI ratio was 0.03% for the third quarter of 2025 as compared to 0.06% and 0.02% during the second quarter of 2025 and third quarter of 2024, respectively.
Nonperforming assets totaled $14.2 million, or 0.63% of total assets, at September 30, 2025 compared to $15.9 million, or 0.76% of total assets at December 31, 2024. The $1.7 million decrease in nonperforming assets at September 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 $9.7 million, or 0.43% of total assets, at September 30, 2025 compared to $11.1 million, or 0.53% of total assets, at December 31, 2024.
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.
____________________ (2) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10I.
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 or inactions, including a prolonged shutdown of the federal government, 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 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 Nine
As of and for the Three Months Ended Months Ended
--------------------------------------------------------------- ------------------------
(dollars in thousands September December September September September
except 30, June 30, March 31, 31, 30, 30, 30,
------------------------
per share amounts) 2025 2025 2025 2024 2024 2025 2024
------------------------ ----------- ---------- ---------- ---------- ---------- ---------- ----------
Selected Operating Data:
Interest income $ 32,890 $ 31,793 $ 30,024 $ 30,537 $ 32,554 $ 94,707 $ 93,112
Interest expense 13,700 13,715 13,265 14,266 15,588 40,680 44,061
Net interest income 19,190 18,078 16,759 16,271 16,966 54,027 49,051
Provision (recovery)
for credit losses 653 752 629 1,240 (1,023) 2,034 (687)
Noninterest income 2,100 1,795 1,881 1,958 2,961 5,776 2,556
Noninterest expense 11,856 12,092 11,419 10,335 10,830 35,367 31,733
Income tax expense 2,040 1,064 1,542 950 2,236 4,646 4,361
Net income 6,741 5,965 5,050 5,704 7,884 17,756 16,200
Adjusted net income
(1) 6,749 5,965 5,050 5,704 7,884 17,764 18,854
Share and Per Share
Data:
Basic earnings per
share $ 0.57 $ 0.58 $ 0.49 $ 0.56 $ 0.77 $ 1.64 $ 1.59
Adjusted basic
earnings per share
(1) $ 0.57 $ 0.58 $ 0.49 $ 0.56 $ 0.77 $ 1.64 $ 1.85
Diluted earnings per
share $ 0.54 $ 0.57 $ 0.47 $ 0.54 $ 0.75 $ 1.58 $ 1.55
Adjusted diluted
earnings per share
(1) $ 0.54 $ 0.57 $ 0.47 $ 0.54 $ 0.75 $ 1.58 $ 1.81
Book value per share $ 20.91 $ 20.37 $ 19.67 $ 19.01 $ 18.86 $ 20.91 $ 18.86
Tangible book value
per share (1) $ 20.49 $ 19.88 $ 19.17 $ 18.51 $ 18.35 $ 20.49 $ 18.35
Shares of common
stock outstanding 11,978,921 10,278,921 10,274,271 10,270,146 10,250,446 11,978,921 10,250,446
Weighted average
diluted shares
outstanding 12,325,462 10,612,255 10,642,078 10,596,364 10,544,087 11,217,972 10,420,646
Selected Balance Sheet
Data:
Total assets $ 2,255,389 $ 2,221,245 $ 2,190,391 $ 2,098,712 $ 2,129,346 $ 2,255,389 $ 2,129,346
Securities
available-for-sale,
at fair value (2) 334,955 331,760 325,478 335,267 355,174 334,955 355,174
Gross loans held for
investment 1,552,976 1,527,199 1,472,232 1,409,443 1,409,913 1,552,976 1,409,913
Loans held for sale 231,593 209,101 187,481 174,033 193,938 231,593 193,938
Allowance for credit
losses 18,028 17,497 17,104 17,118 15,615 18,028 15,615
Goodwill and other
intangible assets 6,186 6,190 6,199 6,386 6,451 6,186 6,451
Total deposits 1,949,672 1,968,301 1,937,693 1,834,802 1,807,315 1,949,672 1,807,315
Core deposits (1) 1,654,764 1,660,409 1,650,358 1,559,904 1,628,706 1,654,764 1,628,706
Other borrowings 25,000 14,753 20,738 41,725 96,712 25,000 96,712
Total Shareholders'
equity 250,438 209,365 202,104 195,232 193,303 250,438 193,303
(1) Considered non-GAAP financial measure - See "Non-GAAP Financial
Measures" and reconciliation of GAAP to non-GAAP financial measures in
tables 10A - 10I.
(2) The Company did not have securities held to maturity in any of the
periods presented.
Financial Highlights - continued (unaudited) Table 1B
--------------------------------------------------- ------ -------- --------- --------- ---------
As of and for the Nine
As of and for the Three Months Ended Months Ended
--------------------------------------------------------------------- --------------------------
September March December September September September
30, June 30, 31, 31, 30, 30, 30,
(dollars in thousands) 2025 2025 2025 2024 2024 2025 2024
----------------------- --------- -------- ------ -------- --------- --------- ---------
Performance Ratios:
Pre-tax
pre-provision net
revenue (PPNR) (1) $ 9,434 $ 7,781 $ 7,221 $ 7,894 $ 9,097 $ 24,436 $ 19,874
Return on average
assets (ROAA) (2) 1.20 % 1.09 % 0.97 % 1.07 % 1.47 % 1.09 % 1.04 %
Adjusted return on
average assets
(Adj. ROAA) (1)(2) 1.20 1.09 0.97 1.07 1.47 1.09 1.21
Return on average
equity (2) 10.84 11.62 10.25 11.65 16.91 10.91 12.30
Adjusted return on
average equity
(1)(2) 10.85 11.62 10.25 11.65 16.91 10.91 14.32
Return on average
tangible common
equity (ROATCE)
(1)(2) 11.07 11.92 10.52 11.97 17.40 11.17 12.68
Adjusted return on
average tangible
common equity (Adj.
ROATCE) (1)(2) 11.08 11.92 10.52 11.97 17.40 11.18 14.76
Net interest rate
spread (2) 2.83 2.76 2.67 2.42 2.48 2.76 2.50
Net interest margin
(2) 3.58 3.46 3.38 3.21 3.32 3.48 3.32
Efficiency ratio 55.69 60.85 61.26 56.70 54.35 59.14 61.49
Efficiency ratio, as
adjusted (1) 55.66 60.85 61.26 56.70 54.35 59.13 57.62
Noninterest income
to average total
assets (2) 0.37 0.33 0.36 0.37 0.55 0.35 0.16
Noninterest income
to total revenue 9.86 9.03 10.09 10.74 14.86 9.66 4.95
Adjusted noninterest
income to total
adjusted revenue
(1) 9.91 9.03 10.09 10.74 14.86 9.67 10.93
Noninterest expense
to average total
assets (2) 2.11 2.21 2.19 1.94 2.02 2.17 2.04
Average
interest-earning
assets to average
interest-bearing
liabilities 129.16 126.50 126.31 127.90 127.59 127.34 127.63
Average equity to
average total
assets 11.08 9.37 9.46 9.20 8.70 9.99 8.47
Asset Quality Data:
Net charge-offs to
average LHFI (2) 0.03 % 0.06 % 0.00 % (0.02) % 0.02 % 0.03 % 0.02 %
Net charge-offs to
total average loans
(2) 0.03 0.05 0.00 (0.02) 0.02 0.03 0.02
Total allowance for
credit losses to
total LHFI 1.16 1.15 1.16 1.21 1.11 1.16 1.11
Total allowance for
credit losses to
total loans 1.01 1.01 1.03 1.08 0.97 1.01 0.97
Total allowance for
credit losses to
nonperforming
loans 127.03 118.99 117.11 114.07 184.64 127.03 184.64
Nonperforming loans
to gross LHFI 0.91 0.96 0.99 1.06 0.60 0.91 0.60
Nonperforming assets
to total assets 0.63 0.66 0.70 0.76 0.44 0.63 0.44
Adjusted
nonperforming
assets to total
assets (1) 0.43 0.46 0.49 0.53 0.21 0.43 0.21
Balance Sheet and
Capital Ratios:
Loan-to-deposit
ratio 91.53 % 88.21 % 85.65 % 86.30 % 88.74 % 91.53 % 88.74 %
Noninterest bearing
deposits to total
deposits 16.08 15.92 15.52 16.51 17.28 16.08 17.28
Total shareholders'
equity to total
assets 11.10 9.43 9.23 9.30 9.08 11.10 9.08
Tangible common
equity to tangible
assets (1) 10.91 9.22 9.01 9.08 8.86 10.91 8.86
Tier 1 leverage
ratio (3) 11.15 10.22 10.62 10.64 10.26 11.15 10.26
Common equity tier 1
ratio (3) 11.94 11.09 11.55 12.07 11.72 11.94 11.72
Tier 1 risk-based
capital ratio (3) 11.94 11.09 11.55 12.07 11.72 11.94 11.72
Total risk-based
capital ratio (3) 12.90 12.04 12.52 12.97 12.55 12.90 12.55
Other:
Number of branches 11 11 11 11 11 11 11
Number of full-time
equivalent
employees 194 188 180 181 181 187 180
(1) Considered non-GAAP financial measure - See "Non-GAAP Financial
Measures" and reconciliation of GAAP to non-GAAP financial measures in
tables 10A - 10I.
(2) Represents annualized data.
(3) Ratios are for Coastal States Bank only. Ratios for September 30, 2025
are preliminary.
Quarter End Balance
Sheets (unaudited) Table 2
------------------------- ---------- ---------- ---------- ---------- ----------
September December September
30, June 30, March 31, 31, 30,
(dollars in thousands) 2025 2025 2025 2024 2024
---------- ---------- ---------- ---------- ----------
Assets
Cash and due from banks $ 20,088 $ 23,245 $ 19,380 $ 37,320 $ 17,722
Federal funds sold 6,191 20,045 79,153 30,641 43,602
Investment securities (1) 342,990 338,601 332,312 342,750 361,935
Loans held for sale
(LHFS) 231,593 209,101 187,481 174,033 193,938
Loans held for investment
(LHFI) 1,552,976 1,527,199 1,472,232 1,409,443 1,409,913
Allowance for credit
losses on LHFI (18,028) (17,497) (17,104) (17,118) (15,615)
--------- --------- --------- --------- ---------
Loans held for
investment, net 1,534,948 1,509,702 1,455,128 1,392,325 1,394,298
Bank-owned life insurance 47,833 47,373 46,924 46,484 46,044
Premises, furniture and
equipment, net 18,186 18,166 17,837 17,796 17,882
Deferred tax asset 16,262 17,211 17,123 18,148 16,772
Goodwill & intangible
assets (2) 6,186 6,190 6,199 6,386 6,451
Other assets 31,112 31,611 28,854 32,829 30,702
--------- --------- --------- --------- ---------
Total assets $2,255,389 $2,221,245 $2,190,391 $2,098,712 $2,129,346
========= ========= ========= ========= =========
Liabilities and
shareholders' equity
Liabilities
Deposits
Noninterest
bearing
transaction
accounts $ 313,604 $ 313,386 $ 300,678 $ 302,907 $ 312,290
Interest-bearing
transaction
accounts 198,753 209,816 191,452 181,068 183,707
Savings and money
market 634,826 628,729 650,050 591,626 654,192
Time deposits 802,489 816,370 795,513 759,201 657,126
--------- --------- --------- --------- ---------
Total deposits 1,949,672 1,968,301 1,937,693 1,834,802 1,807,315
Federal Home Loan
Bank of Atlanta
advances 25,000 - - 15,000 -
Subordinated debt,
net - 14,753 14,741 14,730 14,718
Revolving commercial
line of credit, net - - 5,997 11,995 11,994
Federal Reserve Bank
- Bank Term Funding
Program ("BTFP")
advances - - - - 70,000
Other liabilities 30,279 28,826 29,856 26,953 32,016
--------- --------- --------- --------- ---------
Total liabilities 2,004,951 2,011,880 1,988,287 1,903,480 1,936,043
Shareholders' equity
Voting common stock 10,449 8,107 8,102 8,098 8,078
Nonvoting common
stock 1,530 2,172 2,172 2,172 2,172
Capital surplus 189,654 159,267 158,997 158,755 158,463
Accumulated income 59,750 53,009 47,044 41,994 36,290
Accumulated other
comprehensive loss (10,945) (13,190) (14,211) (15,787) (11,700)
--------- --------- --------- --------- ---------
Total
shareholders'
equity 250,438 209,365 202,104 195,232 193,303
Total liabilities
and
shareholders'
equity $2,255,389 $2,221,245 $2,190,391 $2,098,712 $2,129,346
========= ========= ========= ========= =========
(1) No ACL was recognized for the periods presented.
(2) Includes commercial mortgage servicing rights of $1.2 million, $1.1
million, $1.1 million, $1.2 million, and $1.3 million for September 30,
2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30,
2024, respectively.
Statements of
Operations (unaudited) Table 3
----------------------- ---------- ------- ------- --------- ----------- ---------- -----------
Three Months Ended Nine Months Ended
----------------------------------------------------- ------------------------
September June March December September September September
30, 30, 31, 31, 30, 30, 30,
(dollars in thousands) 2025 2025 2025 2024 2024 2025 2024
----------------------- ---------- ------- ------- --------- ----------- ---------- -----------
Interest income
Interest on cash and
due from banks $ 129 $ 111 $ 135 $ 122 $ 131 $ 375 $ 412
Interest on federal
funds sold 616 698 963 870 1,045 2,277 2,881
Interest and dividends
on investment
securities 4,125 3,875 3,800 3,994 4,171 11,800 12,052
Interest and fees on
LHFS 3,422 3,296 2,819 3,404 2,993 9,537 6,868
Interest and fees on
LHFI 24,598 23,813 22,307 22,147 24,214 70,718 70,899
--------- ------ ------ -------- ------- --------- -------
Total interest
income 32,890 31,793 30,024 30,537 32,554 94,707 93,112
--------- ------ ------ -------- ------- --------- -------
Interest expense
Deposits 13,274 13,251 12,830 13,498 14,230 39,355 39,945
Other borrowings 426 464 435 768 1,358 1,325 4,116
--------- ------ ------ -------- ------- --------- -------
Total interest
expense 13,700 13,715 13,265 14,266 15,588 40,680 44,061
--------- ------ ------ -------- ------- --------- -------
Net interest income 19,190 18,078 16,759 16,271 16,966 54,027 49,051
Provision (recovery)
for credit losses 653 752 629 1,240 (1,023) 2,034 (687)
--------- ------ ------ -------- ------- --------- -------
Net interest income
after provision for
credit losses 18,537 17,326 16,130 15,031 17,989 51,993 49,738
--------- ------ ------ -------- ------- --------- -------
Noninterest income
Mortgage banking
related income 299 326 221 391 276 846 813
Interchange and card
fee income 238 257 266 210 216 761 658
Service charges on
deposit accounts 208 215 211 230 207 634 617
Bank-owned life
insurance 461 449 440 440 437 1,350 1,224
Gain on sale of
government guaranteed
loans 613 265 - 151 1,312 878 1,666
Losses on sale of
available-for-sale
securities (10) - - - - (10) (3,465)
Other noninterest
income 291 283 743 536 513 1,317 1,043
--------- ------ ------ -------- ------- --------- -------
Total noninterest
income 2,100 1,795 1,881 1,958 2,961 5,776 2,556
Noninterest expense
Salaries and employee
benefits 6,985 6,997 6,694 6,759 6,727 20,676 19,428
Occupancy and equipment 850 814 788 762 754 2,452 2,233
Data processing 647 653 624 605 548 1,924 1,608
Other professional
services 571 973 693 496 358 2,237 1,550
Software and other
technology expense 788 719 703 774 671 2,210 1,968
Regulatory assessment 419 344 361 336 344 1,124 955
Other noninterest
expense 1,596 1,592 1,556 603 1,428 4,744 3,991
--------- ------ ------ -------- ------- --------- -------
Total noninterest
expense 11,856 12,092 11,419 10,335 10,830 35,367 31,733
Net income before taxes 8,781 7,029 6,592 6,654 10,120 22,402 20,561
Income tax expense 2,040 1,064 1,542 950 2,236 4,646 4,361
Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200
========= ====== ====== ======== ======= ========= =======
QTD Average Balances and Yields/Rates (unaudited) Table 4
-------------------------------------------------- ------ ---------- ---------- ------ ---------- ------------------
Three Months Ended
---------------------------------------------------------------------------------------------------------
September 30, 2025 June 30, 2025 September 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 $ 21,058 $ 129 2.43% $ 20,762 $ 111 2.14% $ 20,317 $ 131 2.57%
Federal funds sold 52,240 616 4.68% 62,656 698 4.47% 76,290 1,045 5.45%
Investment securities 339,619 4,125 4.82% 338,635 3,875 4.59% 353,121 4,171 4.70%
Loans held for sale 167,424 3,422 8.11% 167,617 3,296 7.89% 142,205 2,993 8.37%
Loans held for
investment 1,543,363 24,598 6.32% 1,506,211 23,813 6.34% 1,439,835 24,214 6.69%
--------- ------ ------ --------- ------ ------ --------- ------ ------
Total earning assets 2,123,704 32,890 6.14% 2,095,881 31,793 6.08% 2,031,768 32,554 6.37%
Noninterest-earning
assets:
Allowance for credit
losses on LHFI (17,504) (17,110) (15,992)
Bank-owned life
insurance 47,569 47,119 45,798
Premises, furniture and
equipment, net 18,241 18,034 17,751
Deferred tax asset 17,159 17,182 18,255
Goodwill & intangible
assets 6,176 6,168 6,257
Other assets 30,633 29,442 26,648
--------- --------- ---------
Total
noninterest-earning
assets 102,274 100,835 98,717
--------- --------- ---------
Total assets $2,225,978 $2,196,716 $2,130,485
========= ========= =========
Interest-bearing
liabilities:
Interest-bearing deposits $1,631,767 $ 13,274 3.23% $1,626,415 $ 13,251 3.27% $1,495,726 $ 14,230 3.78%
Federal Reserve Bank -
BTFP - - 0.00% - - 0.00% 70,000 863 4.90%
Federal funds purchased - - 0.00% 38 1 10.56% - - 0.00%
Federal Home Loan Bank of
Atlanta advances 272 3 4.38% 10,000 116 4.65% - - 0.00%
Revolving commercial line
of credit, net - - 0.00% 5,667 112 7.93% 11,994 260 8.62%
Subordinated debt, net 12,191 423 13.77% 14,747 235 6.39% 14,712 235 6.35%
--------- ------ ------ --------- ------ ------ --------- ------ ------
Total interest-bearing
liabilities 1,644,230 13,700 3.31% 1,656,867 13,715 3.32% 1,592,432 15,588 3.89%
Noninterest-bearing
liabilities:
Noninterest-bearing
deposits 306,133 306,330 323,377
Other liabilities 28,927 27,682 29,242
--------- --------- ---------
Total
noninterest-bearing
liabilities 335,060 334,012 352,619
Shareholders' equity 246,688 205,837 185,434
--------- --------- ---------
Total liabilities and
shareholders'
equity $2,225,978 $2,196,716 $2,130,485
========= ---------- ========= ---------- ========= ----------
Net interest income $ 19,190 $ 18,078 $ 16,966
====== ------ ====== ------ ====== ------
Net interest spread 2.83% 2.76% 2.48%
------ ------ ------
Net interest margin 3.58% 3.46% 3.32%
------ ------ ------
Cost of total deposits
(1) 2.72% 2.75% 3.11%
Cost of total funding (1) 2.79% 2.80% 3.24%
(1) Includes noninterest bearing deposits.
Table
YTD Average Balances and Yields/Rates (unaudited) 5
-------------------------------------------------- ------ ---------- ---------- ------
Nine Months Ended
--------------------------------------------------------------------
September 30, 2025 September 30, 2024
------------------------------- -------------------------------
Average Yield/ Average Yield/
(dollars in thousands) Balance Interest Rate Balance Interest Rate
------------------------ ---------- ---------- ------ ---------- ---------- ------
Earning assets:
Cash and due from banks $ 21,509 $ 375 2.33% $ 20,762 $ 412 2.65%
Federal funds sold 67,659 2,277 4.50% 68,963 2,881 5.58%
Investment securities 337,852 11,800 4.67% 351,623 12,052 4.58%
Loans held for sale 157,409 9,537 8.10% 107,145 6,868 8.56%
Loans held for
investment 1,493,081 70,718 6.33% 1,424,289 70,899 6.65%
--------- ------ ------ --------- ------ ------
Total earning assets 2,077,510 94,707 6.09% 1,972,782 93,112 6.30%
Noninterest-earning
assets:
Allowance for credit
losses on LHFI (17,245) (15,936)
Bank-owned life
insurance 47,123 45,380
Premises, furniture and
equipment, net 18,044 17,682
Deferred tax asset 17,379 19,570
Goodwill & intangible
assets 6,224 6,352
Other assets 29,935 31,315
--------- ---------
Total
noninterest-earning
assets 101,460 104,363
--------- ---------
Total assets $2,178,970 $2,077,145
========= =========
Interest-bearing
liabilities:
Interest-bearing deposits $1,608,583 $ 39,355 3.27% $1,448,419 $ 39,945 3.68%
Federal Reserve Bank -
BTFP - - 0.00% 67,701 2,485 4.90%
Federal funds purchased 13 1 10.28% - - 0.00%
Federal Home Loan Bank of
Atlanta advances 3,809 131 4.60% 1,825 77 5.64%
Revolving commercial line
of credit, net 5,141 300 7.80% 13,043 849 8.69%
Subordinated debt, net 13,882 893 8.60% 14,700 705 6.41%
--------- ------ ------ --------- ------ ------
Total interest-bearing
liabilities 1,631,428 40,680 3.33% 1,545,688 44,061 3.81%
Noninterest-bearing
liabilities:
Noninterest bearing
deposits 301,997 325,923
Other liabilities 27,944 29,639
--------- ---------
Total
noninterest-bearing
liabilities 329,941 355,562
Shareholders' equity 217,601 175,895
--------- ---------
Total liabilities and
shareholders'
equity $2,178,970 $2,077,145
========= =========
Net interest income $ 54,027 $ 49,051
====== ------ ====== ------
Net interest spread 2.76% 2.49%
------ ------
Net interest margin 3.48% 3.32%
------ ------
Cost of total deposits
(1) 2.75% 3.01%
Cost of total funding (1) 2.81% 3.14%
(1) Includes noninterest bearing deposits.
Loan Data (unaudited) Table 6
----------------------- ---------- ------ ---------- ----- ---------- ----- ---------- ------ -----------------
As of the Quarter Ended
---------------------------------------------------------------------------------------------------------------
September 30,
September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 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 $ 106,787 6.9% $ 100,528 6.6% $ 76,453 5.2% $ 72,520 5.2% $ 112,275 8.0%
Income producing
CRE 371,670 23.9 372,142 24.4 352,693 24.0 321,558 22.8 267,551 19.0
Owner-occupied CRE 96,287 6.2 91,147 6.0 90,204 6.1 94,573 6.7 95,789 6.8
Senior housing 223,719 14.4 236,474 15.5 245,292 16.7 234,081 16.6 231,260 16.4
Commercial and
industrial 135,039 8.7 131,716 8.6 145,784 9.8 141,626 10.0 140,290 10.0
Retail Loans
Marine vessels 318,246 20.5 301,327 19.7 284,305 19.3 263,657 18.6 279,689 19.8
Residential
mortgages 190,220 12.2 185,527 12.1 176,794 12.0 174,099 12.4 173,392 12.3
Cash value life
insurance LOC 90,115 5.8 87,135 5.7 80,503 5.5 86,844 6.2 87,968 6.2
Other consumer 20,893 1.4 21,203 1.4 20,204 1.4 20,485 1.5 21,699 1.5
--------- ------ --------- ----- --------- ----- --------- ------ --------- -----
Gross loans held for
investment $1,552,976 100.0% $1,527,199 100.0% $1,472,232 100.0% $1,409,443 100.0% $1,409,913 100.0%
--------- --------- --------- --------- ---------
Core LHFI 1,492,992 1,464,200 1,406,199 1,342,073 1,341,135
Acquired LHFI (1) 59,984 62,999 66,033 67,370 68,778
--------- --------- --------- --------- ---------
Gross loans held for
investment $1,552,976 $1,527,199 $1,472,232 $1,409,443 $1,409,913
--------- --------- --------- --------- ---------
Allowance for
credit losses on
LHFI 18,028 17,497 17,104 17,118 15,615
--------- --------- --------- --------- ---------
Net loans held for
investment $1,534,948 $1,509,702 $1,455,128 $1,392,325 $1,394,298
Total loans
held-for-sale 231,593 209,101 187,481 174,033 193,938
--------- --------- --------- --------- ---------
Total Loans $1,784,569 $1,736,300 $1,659,713 $1,583,476 $1,603,851
========= ========= ========= ========= =========
(1) Includes loans acquired through business combinations.
Nonperforming Assets (unaudited) Table 7
--------------------------------------------------------------------------------- -----------
As of the Quarter Ended
-------------------------------------------------------------------------
June March
September 30, 31, December 31, September
(dollars in thousands) 30, 2025 2025 2025 2024 30, 2024
----------------------- ---------- ------- ------- -------------- -----------
Nonaccrual loans $ 14,171 $14,611 $14,599 $ 14,957 $ 8,408
Past due loans 90
days and still
accruing 21 93 6 49 49
--------- ------ ------ ------------- -------
Total nonperforming
loans $ 14,192 $14,704 $14,605 $ 15,006 $ 8,457
Other real estate
owned - - 765 864 864
--------- ------ ------ ------------- -------
Total
nonperforming
assets $ 14,192 $14,704 $15,370 $ 15,870 $ 9,321
========= ====== ====== ============= =======
Nonperforming loans
to gross LHFI 0.91% 0.96% 0.99% 1.06% 0.60%
Nonaccrual loans to
total assets 0.63% 0.66% 0.67% 0.71% 0.39%
Nonperforming assets
to total assets 0.63% 0.66% 0.70% 0.76% 0.44%
Allowance for Credit Losses
(unaudited) Table 8
------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
As of and for the Nine
As of and for the Three Months Ended Months Ended
-------------------------------------------------------------------------- --------------------------
September December September September September
30, June 30, March 31, 31, 30, 30, 30,
(dollars in thousands) 2025 2025 2025 2024 2024 2025 2024
------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Allowance for credit losses on LHFI
Balance, beginning of period $ 17,497 $ 17,104 $ 17,118 $ 15,615 $ 16,002 $ 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 (29) 19 1 3 30 (9) 126
Retail Loans
Marine vessels - - - - 36 - 36
Residential mortgages (2) (2) (2) (2) (7) (6) (13)
Cash value life insurance
LOC - - - - - - -
Other consumer 156 191 16 (25) 27 363 24
--------- --------- --------- --------- --------- --------- ---------
Total net
charge-offs/(recoveries) $ 125 $ 208 $ 15 $ (77) $ 86 $ 348 $ 173
--------- --------- --------- --------- --------- --------- ---------
Provision (recovery) for loan
credit losses 656 601 1 1,426 (301) 1,258 323
--------- --------- --------- --------- --------- --------- ---------
Balance, ending of period $ 18,028 $ 17,497 $ 17,104 $ 17,118 $ 15,615 $ 18,028 $ 15,615
--------- --------- --------- --------- --------- --------- ---------
Allowance for credit losses for unfunded
commitments
Period beginning balance $ 3,499 $ 3,348 $ 2,720 $ 2,906 $ 3,628 $ 2,720 $ 3,916
(Recovery) provision for credit
losses (3) 151 628 (186) (722) 776 (1,010)
--------- --------- --------- --------- --------- --------- ---------
Period ending balance $ 3,496 $ 3,499 $ 3,348 $ 2,720 $ 2,906 $ 3,496 $ 2,906
--------- --------- --------- --------- --------- --------- ---------
Balance, end of period -
Allowance for credit losses:
LHFI and unfunded commitments $ 21,524 $ 20,996 $ 20,452 $ 19,838 $ 18,521 $ 21,524 $ 18,521
========= ========= ========= ========= ========= ========= =========
Total loans held for investment $1,552,976 $1,527,199 $1,472,232 $1,409,443 $1,409,913 $1,552,976 $1,409,913
Credit Analysis
Net charge-offs to average
LHFI 0.03% 0.06% 0.00% (0.02)% 0.02% 0.03% 0.02%
Total allowance for credit
losses on LHFI to total LHFI 1.16% 1.15% 1.16% 1.21% 1.11% 1.16% 1.11%
Total allowance for credit
losses on LHFI to nonaccrual
loans 127.22% 119.75% 117.16% 114.45% 185.72% 127.22% 185.72%
Total allowance for credit
losses on LHFI to total
nonperforming loans 127.03% 118.99% 117.11% 114.07% 184.64% 127.03% 184.64%
Loan Risk Ratings (1)
(2) (unaudited) Table 9
----------------------- ---------- ---------- ---------- ---------- ----------
As of the Quarter Ended
----------------------------------------------------------
September June 30, March 31, December September
(dollars in thousands) 30, 2025 2025 2025 31, 2024 30, 2024
----------------------- ---------- ---------- ---------- ---------- ----------
Acquisition,
development and
construction (1)
Pass $ 106,787 $ 100,528 $ 76,453 $ 72,520 $ 112,275
Special mention - - - - -
Substandard - - - - -
--------- --------- --------- --------- ---------
Total
acquisition,
development
and
construction $ 106,787 $ 100,528 $ 76,453 $ 72,520 $ 112,275
========= ========= ========= ========= =========
Income producing CRE
(1)
Pass $ 370,788 $ 371,255 $ 352,281 $ 321,146 $ 262,287
Special mention - - - - 4,852
Substandard 882 887 412 412 412
--------- --------- --------- --------- ---------
Total income
producing $ 371,670 $ 372,142 $ 352,693 $ 321,558 $ 267,551
========= ========= ========= ========= =========
Owner-occupied CRE (1)
Pass $ 86,533 $ 81,244 $ 83,711 $ 87,906 $ 89,133
Special mention 3,579 3,612 - - 1,838
Substandard 6,175 6,291 6,493 6,667 4,818
--------- --------- --------- --------- ---------
Total owner
occupied $ 96,287 $ 91,147 $ 90,204 $ 94,573 $ 95,789
========= ========= ========= ========= =========
Senior housing (1)
Pass $ 205,330 $ 217,971 $ 208,922 $ 190,084 $ 184,178
Special mention 12,006 12,078 24,814 25,025 17,493
Substandard 6,383 6,425 11,556 18,972 29,589
--------- --------- --------- --------- ---------
Total senior
housing $ 223,719 $ 236,474 $ 245,292 $ 234,081 $ 231,260
========= ========= ========= ========= =========
Commercial and
industrial (2)
Pass $ 128,468 $ 124,979 $ 141,202 $ 136,878 $ 135,476
Special mention 2,402 2,199 - 36 189
Substandard 4,169 4,538 4,582 4,712 4,625
--------- --------- --------- --------- ---------
Total non-real
estate $ 135,039 $ 131,716 $ 145,784 $ 141,626 $ 140,290
========= ========= ========= ========= =========
Marine vessels (2)
Performing $ 318,246 $ 301,327 $ 284,305 $ 263,657 $ 279,689
Nonperforming - - - - -
--------- --------- --------- --------- ---------
Total marine
vessels $ 318,246 $ 301,327 $ 284,305 $ 263,657 $ 279,689
========= ========= ========= ========= =========
Residential mortgages
(2)
Performing $ 190,059 $ 185,162 $ 176,633 $ 173,834 $ 173,122
Nonperforming 161 365 161 265 270
--------- --------- --------- --------- ---------
Total
residential
mortgages $ 190,220 $ 185,527 $ 176,794 $ 174,099 $ 173,392
========= ========= ========= ========= =========
Cash value life
insurance LOC (2)
Performing $ 90,115 $ 87,135 $ 80,503 $ 86,844 $ 87,968
Nonperforming - - - - -
--------- --------- --------- --------- ---------
Total cash
value life
insurance LOC $ 90,115 $ 87,135 $ 80,503 $ 86,844 $ 87,968
========= ========= ========= ========= =========
Other consumer (2)
Performing $ 20,872 $ 21,203 $ 20,204 $ 20,442 $ 21,699
Nonperforming 21 - - 43 -
--------- --------- --------- --------- ---------
Total other
consumer $ 20,893 $ 21,203 $ 20,204 $ 20,485 $ 21,699
========= ========= ========= ========= =========
Gross loans held
for investment $1,552,976 $1,527,199 $1,472,232 $1,409,443 $1,409,913
========= ========= ========= ========= =========
(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.
Management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view the Company's performance using the same tools that management uses to evaluate the Company's past performance and prospects for future performance. While management believes that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures should be considered as additional views of the way the Company's financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies.
Non-GAAP Reconciliations
Tangible Book Value per Share / Tangible Common Equity to Tangible Assets (unaudited) Table 10A
----------------------------------------------------------------------------------------------------------- ----------- -----------
As of and for the Nine
As of and for the Three Months Ended Months Ended
--------------------------------------------------------------------------------- ----------------------------
September December September September September
30, June 30, March 31, 31, 30, 30, 30,
(dollars in thousands,
except per share data) 2025 2025 2025 2024 2024 2025 2024
----------------------- ----------- ----------- ----------- ----------- ------------ ----------- -----------
Tangible Common Equity:
Total shareholders'
equity $ 250,438 $ 209,365 $ 202,104 $ 195,232 $ 193,303 $ 250,438 $ 193,303
Less: Goodwill and
intangibles (6,186) (6,190) (6,199) (6,386) (6,451) (6,186) (6,451)
Adjusted for:
Mortgage servicing
rights 1,156 1,122 1,093 1,237 1,258 1,156 1,258
---------- ---------- ---------- ---------- ----------- ---------- ----------
Tangible Common Equity $ 245,408 $ 204,297 $ 196,998 $ 190,083 $ 188,110 $ 245,408 $ 188,110
Common shares
outstanding 11,978,921 $ 10,278,921 10,274,271 10,270,146 10,250,446 11,978,921 10,250,446
Book value per common
share 20.91 20.37 19.67 19.01 18.86 20.91 18.86
Tangible book value
per common share 20.49 19.88 19.17 18.51 18.35 20.49 18.35
Tangible assets:
Total assets $ 2,255,389 $ 2,221,245 $ 2,190,391 $ 2,098,712 $ 2,129,346 $ 2,255,389 $ 2,129,346
Less: Goodwill and
intangibles (6,186) (6,190) (6,199) (6,386) (6,451) (6,186) (6,451)
Adjusted for:
Mortgage servicing
rights 1,156 1,122 1,093 1,237 1,258 1,156 1,258
---------- ---------- ---------- ---------- ----------- ---------- ----------
Tangible assets $ 2,250,359 $ 2,216,177 $ 2,185,285 $ 2,093,563 $ 2,124,153 $ 2,250,359 $ 2,124,153
Tangible common equity
to tangible assets 10.91% 9.22% 9.01% 9.08% 8.86% 10.91% 8.86%
ROATCE / Adjusted ROATCE (unaudited) Table 10B
-------------------------------------------------- -------- --------- ----------- ---------- -----------
As of and for the Nine
As of and for the Three Months Ended Months Ended
---------------------------------------------------------------------- ---------------------------
September March December September September September
30, June 30, 31, 31, 30, 30, 30,
(dollars in thousands) 2025 2025 2025 2024 2024 2025 2024
----------------------- ---------- -------- -------- --------- ----------- ---------- -----------
Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200
Average shareholders'
equity 246,688 205,837 199,763 194,724 185,434 217,601 175,895
Return on average
shareholders' equity
(1) 10.84% 11.62% 10.25% 11.65% 16.91% 10.91% 12.30%
Average Tangible Common
Equity:
Average shareholders'
equity $ 246,688 $205,837 $199,763 $ 194,724 $ 185,434 $ 217,601 $ 175,895
Less: Average goodwill
and intangibles (6,176) (6,168) (6,328) (6,432) (6,257) (6,224) (6,352)
Adjusted for: Average
mortgage servicing
rights 1,128 1,082 1,198 1,263 1,041 1,136 1,089
--------- ------- ------- -------- ------- --------- -------
Average tangible common
equity $ 241,640 $200,751 $194,633 $ 189,555 $ 180,218 $ 212,513 $ 170,632
Return on average
tangible common (1)
shareholders' equity 11.07% 11.92% 10.52% 11.97% 17.40% 11.17% 12.68%
Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200
Adjusted for:
Loss on sale of AFS
securities, net of
tax (2) 8 - - - - 8 2,654
--------- ------- ------- -------- ------- --------- -------
Adjusted net income $ 6,749 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,764 $ 18,854
Average tangible common
equity $ 241,640 $200,751 $194,633 $ 189,555 $ 180,218 $ 212,513 $ 170,632
Adjusted return on
average tangible common
equity (1) 11.08% 11.92% 10.52% 11.97% 17.40% 11.18% 14.76%
(1) Represents annualized data.
(2) 2024 consists of loss on sale of AFS securities due to non-routine
portfolio restructuring.
Non-GAAP Reconciliations
Efficiency Ratio, as Adjusted / Noninterest Income to Total Revenue (unaudited) Table 10C
----------------------------------------------------------------------------------------------- ---------- -----------
As of and for the Nine
As of and for the Three Months Ended Months Ended
--------------------------------------------------------------------- ---------------------------
September June March December September September September
30, 30, 31, 31, 30, 30, 30,
(dollars in thousands) 2025 2025 2025 2024 2024 2025 2024
----------------------- ---------- ------- ------- --------- ------------ ---------- -----------
GAAP-based efficiency
ratio 55.69% 60.85% 61.26% 56.70% 54.35% 59.14% 61.49%
Net interest income $ 19,190 $18,078 $16,759 $ 16,271 $ 16,966 $ 54,027 $ 49,051
Noninterest income 2,100 1,795 1,881 1,958 2,961 5,776 2,556
Adjusted for:
Loss on sale of AFS
securities (1) 10 - - - - 10 3,465
--------- ------ ------ -------- ----------- --------- -------
Adjusted revenue $ 21,300 $19,873 $18,640 $ 18,229 $ 19,927 $ 59,813 $ 55,072
Total noninterest
expense 11,856 12,092 11,419 10,335 10,830 35,367 31,733
--------- ------ ------ -------- ----------- --------- -------
Adjusted noninterest
expense $ 11,856 $12,092 $11,419 $ 10,335 $ 10,830 $ 35,367 $ 31,733
Efficiency ratio, as
adjusted 55.66% 60.85% 61.26% 56.70% 54.35% 59.13% 57.62%
Noninterest income to
total revenue 9.86% 9.03% 10.09% 10.74% 14.86% 9.66% 4.95%
Adjusted noninterest
income to total
adjusted revenue 9.91% 9.03% 10.09% 10.74% 14.86% 9.67% 10.93%
(1) 2024 consists of loss on sale of AFS securities due to non-routine
portfolio restructuring.
Adjusted Net Income / Adjusted Return on Average Assets (unaudited) Table 10D
------------------------------------------------------------------------------------------------------ ---------- ----------
As of and for the Nine
As of and for the Three Months Ended Months Ended
---------------------------------------------------------------------------- --------------------------
September December September September September
30, June 30, March 31, 31, 30, 30, 30,
(dollars in thousands) 2025 2025 2025 2024 2024 2025 2024
----------------------- ---------- ---------- ---------- ---------- ------------ ---------- ----------
Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200
Average assets 2,225,978 2,196,716 2,111,196 2,117,357 2,130,485 2,178,970 2,077,145
Return on average assets
(1) 1.20% 1.09% 0.97% 1.07% 1.47% 1.09% 1.04%
Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200
Adjusted for:
Loss on sale of AFS
securities, net of
tax (2) 8 - - - - 8 2,654
--------- --------- --------- --------- ----------- --------- ---------
Adjusted net income $ 6,749 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,764 $ 18,854
Average assets $2,225,978 $2,196,716 $2,111,196 $2,117,357 $ 2,130,485 $2,178,970 $2,077,145
Adjusted return on
average assets (1) 1.20% 1.09% 0.97% 1.07% 1.47% 1.09% 1.21%
(1) Represents annualized data.
(2) 2024 consists of loss on sale of AFS securities due to non-routine
portfolio restructuring.
Adjusted Net Income / Adjusted Return on Average Shareholders' Equity
(unaudited) Table 10E
------------------------------------------------------------------------------------------------- ---------- -----------
As of and for the Nine
As of and for the Three Months Ended Months Ended
----------------------------------------------------------------------- ---------------------------
September March December September September September
30, June 30, 31, 31, 30, 30, 30,
(dollars in thousands) 2025 2025 2025 2024 2024 2025 2024
----------------------- ---------- -------- -------- --------- ------------ ---------- -----------
Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200
Average shareholders'
equity 246,688 205,837 199,763 194,724 185,434 217,601 175,895
Return on average
shareholders' equity
(1) 10.84% 11.62% 10.25% 11.65% 16.91% 10.91% 12.30%
Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200
Adjusted for:
Loss on sale of AFS
securities, net of
tax (2) 8 - - - - 8 2,654
--------- ------- ------- -------- ----------- --------- -------
Adjusted net income $ 6,749 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,764 $ 18,854
Average shareholders'
equity $ 246,688 $205,837 $199,763 $ 194,724 $ 185,434 $ 217,601 $ 175,895
Adjusted return on
average shareholders'
equity (1) 10.85% 11.62% 10.25% 11.65% 16.91% 10.91% 14.32%
(1) Represents annualized data.
(2) 2024 consists of loss on sale of AFS securities due to non-routine
portfolio restructuring.
Non-GAAP Reconciliations
Adjusted Net Income / Adjusted Basic EPS / Adjusted Diluted EPS (unaudited) Table 10F
------------------------------------------------------------------------------------------ ----------- -----------
As of and for the Nine
As of and for the Three Months Ended Months Ended
---------------------------------------------------------------- ------------------------
September December September September September
30, June 30, March 31, 31, 30, 30, 30,
(dollars in thousands,
except per share data) 2025 2025 2025 2024 2024 2025 2024
----------------------- ----------- ----------- ----------- ----------- ------------ ----------- -----------
Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200
Average common shares
outstanding - basic 11,941,965 10,277,721 10,273,125 10,250,446 10,250,446 10,837,050 10,180,788
Basic earnings per share $ 0.57 $ 0.58 $ 0.49 $ 0.56 $ 0.77 $ 1.64 $ 1.59
Average common shares
outstanding - diluted 12,325,462 10,612,255 10,642,078 10,596,364 10,544,087 11,217,972 10,420,646
Diluted earnings per
share $ 0.54 $ 0.57 $ 0.47 $ 0.54 $ 0.75 $ 1.58 $ 1.55
Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200
Adjusted for:
Loss on sale of AFS
securities, net of
tax (1) 8 - - - - 8 2,654
---------- ---------- ---------- ---------- ----------- ---------- ----------
Adjusted net income $ 6,749 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,764 $ 18,854
Adjusted basic earnings
per share $ 0.57 $ 0.58 $ 0.49 $ 0.56 $ 0.77 $ 1.64 $ 1.85
Adjusted diluted
earnings per share $ 0.54 $ 0.57 $ 0.47 $ 0.54 $ 0.75 $ 1.58 $ 1.81
(1) 2024 consists of loss on sale of AFS securities due to non-routine
portfolio restructuring.
Adjusted Nonperforming Assets to Total Assets (unaudited) Table 10G
------------------------------------------------------------------------------------------------------ ---------- ----------
As of and for the Nine
As of and for the Three Months Ended Months Ended
---------------------------------------------------------------------------- --------------------------
September December September September September
30, June 30, March 31, 31, 30, 30, 30,
(dollars in thousands) 2025 2025 2025 2024 2024 2025 2024
----------------------- ---------- ---------- ---------- ---------- ------------ ---------- ----------
Total nonperforming
assets $ 14,192 $ 14,704 $ 15,370 $ 15,870 $ 9,321 $ 14,192 $ 9,321
Total assets 2,255,389 2,221,245 2,190,391 2,098,712 2,129,346 2,255,389 2,129,346
GAAP-based
nonperforming assets
to total assets 0.63% 0.66% 0.70% 0.76% 0.44% 0.63% 0.44%
Total nonperforming
assets $ 14,192 $ 14,704 $ 15,370 $ 15,870 $ 9,321 $ 14,192 $ 9,321
Adjusted for:
Guaranteed portions
of nonaccrual
loans 4,457 4,583 4,692 4,811 4,916 4,457 4,916
--------- --------- --------- --------- ----------- --------- ---------
Adjusted total
nonperforming assets $ 9,735 $ 10,121 $ 10,678 $ 11,059 $ 4,405 $ 9,735 $ 4,405
Total assets $2,255,389 $2,221,245 $2,190,391 $2,098,712 $ 2,129,346 $2,255,389 $2,129,346
Adjusted nonperforming
assets to total
assets 0.43% 0.46% 0.49% 0.53% 0.21% 0.43% 0.21%
PPNR (unaudited) Table 10H
------------------------------------- ------ ------ --------- ----------- ---------- -----------
As of and for the Nine
As of and for the Three Months Ended Months Ended
--------------------------------------------------- -----------------------
September June March December September September September
30, 30, 31, 31, 30, 30, 30,
(dollars in thousands) 2025 2025 2025 2024 2024 2025 2024
----------------------- ----------- ------ ------ --------- ----------- ---------- -----------
Net income (GAAP-based) $ 6,741 $5,965 $5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200
Plus:
Income tax expense 2,040 1,064 1,542 950 2,236 4,646 4,361
Provision (recovery)
for credit losses 653 752 629 1,240 (1,023) 2,034 (687)
---------- ----- ----- -------- ------- --------- -------
Pre-tax, pre-provision
net revenue $ 9,434 $7,781 $7,221 $ 7,894 $ 9,097 $ 24,436 $ 19,874
========== ===== ===== ======== ======= ========= =======
Core Deposits (unaudited) Table 10I
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
As of and for the Nine
As of and for the Three Months Ended Months Ended
------------------------------------------------------------ ----------------------
September December September September September
30, June 30, March 31, 31, 30, 30, 30,
(dollars in thousands) 2025 2025 2025 2024 2024 2025 2024
----------------------- ------------ ---------- ---------- ---------- ---------- ---------- ----------
Total Deposits $ 1,949,672 $1,968,301 $1,937,693 $1,834,802 $1,807,315 $1,949,672 $1,807,315
Less:
Brokered CDs 294,908 307,892 287,335 274,898 178,609 294,908 178,609
----------- --------- --------- --------- --------- --------- ---------
Core deposits (1) $ 1,654,764 $1,660,409 $1,650,358 $1,559,904 $1,628,706 $1,654,764 $1,628,706
=========== ========= ========= ========= ========= ========= =========
(1) The Company defines its core deposits as total deposits, less brokered
certificates of deposits.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251020263268/en/
CONTACT: Stephen R. Stone
President and Chief Executive Officer
Anthony P. Valduga
Chief Financial Officer / Chief Operating Officer
678-396-4605
investorrelations@coastalstatesbank.com
(END) Dow Jones Newswires
October 20, 2025 19:36 ET (23:36 GMT)