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CoastalSouth Bancshares, Inc. Reports Earnings for Third Quarter 2026

By Business Wire | October 19, 2026, 4:26 PM

ATLANTA--(BUSINESS WIRE)--CoastalSouth Bancshares, Inc. (“CoastalSouth” or the “Company”) (NYSE: COSO), the holding company for Coastal States Bank (the “Bank” or "CSB"), today reported net income of $8.8 million, or $0.71 per diluted share, for the third quarter of 2026, compared to approximately $7.3 million, or $0.59 per diluted share, for the second quarter of 2026, and $6.7 million, or $0.54 per diluted share, for the third quarter of 2025. For the nine months ended September 30, 2026, the Company reported net income of $22.4 million, or $1.81 per diluted share, compared with $17.8 million, or $1.58 per diluted share, for the same period in 2025.



Additionally, on October 19, 2026, the Board of Directors of CoastalSouth Bancshares, Inc. declared a per share quarterly dividend of $0.06. The dividend will be paid to shareholders of record as of the close of business on November 10, 2026, the record date. The dividend shall be paid on November 24, 2026.

Commenting on the Company’s third quarter performance, President and Chief Executive Officer Stephen R. Stone stated, "We delivered record earnings of $0.71 per share in the third quarter, driven by strong loan production and robust gain-on-sale revenue from our government-guaranteed lending business. We saw outstanding loan production2 of $248.2 million during the third quarter, driving an $81.6 million increase in loans held-for-investment, or 19.0% annualized. The majority of production in the third quarter continued to come from the community bank, although our specialty lines of business also had a strong production quarter. As we head into the fourth quarter, we remain focused on building deep client relationships, maintaining disciplined underwriting, and investing in talented bankers across our footprint."

Third Quarter 2026 Performance Highlights:

  • Net income of $8.8 million or $0.71 per diluted share
  • Return on average assets ("ROAA") of 1.45%
  • Return on average equity ("ROAE") of 12.88%; Return on average tangible common equity1 ("ROATCE") of 13.12%
  • Net interest margin of 3.70%, an increase of 4 basis points from the second quarter of 2026
  • Total deposits increased $53.1 million, although core deposits1 were down quarter over quarter approximately $20.0 million which is primarily attributable to seasonal outflows associated with our property management clients
  • Loans held-for-investment ("LHFI") production2 of $248.2 million during the third quarter of 2026 led to LHFI growth of $81.6 million, up 19.0% annualized from the second quarter of 2026
  • Accumulated other comprehensive loss ("AOCL") increased by $8.3 million from prior quarter due to increased unrealized losses in our available-for-sale securities portfolio
  • Book value per share decreased $0.15, or 2.65% annualized, to $22.32 at September 30, 2026; Tangible book value1 per common share decreased $0.16, or 2.88% annualized, to $21.90 at September 30, 2026 from the second quarter of 2026
  • Share repurchase program launched May 1, 2026; 285,715 shares repurchased during the third quarter of 2026 with a weighted-average price of $27.10
  • Total shareholders' equity to total assets of 10.81%, compared to 11.14% as of the second quarter of 2026; Tangible common equity1 to tangible assets1 of 10.63%, compared to 10.96% as of June 30, 2026
  • Net charge-offs to average loans held for investment of 0.01%
  • Nonperforming assets to total assets of 0.62%; adjusted nonperforming assets to total assets1 of 0.45%
  • Allowance for credit losses ("ACL") on LHFI to total LHFI of 1.10%; total ACL on LHFI to nonperforming loans of 130.13%
______________________________

1

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

2

The Company defines production as original loan commitment amount, which includes both funded and unfunded balances at the time of origination. As of September 30, 2026, these loans had funded balances of $148.9 million and unfunded commitments of $74.1 million.

 

Operating Highlights

Net interest income totaled $21.5 million for the third quarter of 2026, an increase of $862 thousand, or 4.2%, from $20.7 million for the second quarter of 2026, and an increase of $2.3 million, or 12.2% from the third quarter of 2025. The Company’s net interest margin increased by 4 basis points to 3.70% for the third quarter of 2026, compared to 3.66% for the second quarter of 2026, and increased 12 basis points from the third quarter of 2025.

The yield on average interest-earning assets for the third quarter of 2026 increased to 5.99% from 5.94% for the second quarter of 2026. This increase was primarily related to an overall yield increase in average interest-earning assets across the board, principally investment securities, LHFI and loans held-for-sale ("LHFS"). Compared to the third quarter of 2025, yields on earning assets decreased 15 basis points to 5.99% from 6.14%. The decrease was primarily attributable to interest rate cuts during 2025, notwithstanding $186.0 million of growth in average total earning assets.

The Company’s total cost of funds was 2.51% for the third quarter of 2026, an increase of 1 basis point compared to the second quarter of 2026, and a decrease of 28 basis points compared to the third quarter of 2025. Deposit costs were 2.48% for the third quarter of 2026, similar to 2.48% for the second quarter of 2026, and compared to 2.72% for the third quarter of 2025, a decrease of 24 basis points from the third quarter of 2025. The cost of interest-bearing deposits increased 2 basis points during the third quarter of 2026 to 2.97%, compared with 2.95% in the second quarter of 2026, reflecting continued repricing of our interest-bearing deposits to align with competitive rate pressure associated with the markets expectation of the Federal Reserve hiking rates during the third quarter of 2026.

Noninterest income totaled $3.3 million for the third quarter of 2026, an increase of $1.1 million, or 51.2%, from the second quarter of 2026, primarily attributable to an increase in gain on sale of government guaranteed loans by $1.3 million; offset by a net decrease in other categories within noninterest income. Noninterest expense totaled $13.7 million for the third quarter of 2026, an increase of $336 thousand, or 2.5%, from the second quarter of 2026. This increase was primarily due to higher salaries and employee benefits of $299 thousand, coupled with a net increase in other noninterest expense categories. The Company continues to focus on organic growth and expansion through banker recruiting across the franchise.

The Company’s effective tax rate for the third quarter of 2026 was 24.2%, compared to 17.0% for the second quarter of 2026, and 23.2% for the third quarter of 2025. The increase in effective tax rate from the second quarter of 2026 was primarily due to a reduction in the deferred tax asset related to state taxes during the third quarter of 2026 of approximately $641 thousand. Excluding discrete items related to this write-down and stock based compensation activity, the Company's effective tax rate at the end of the third quarter of 2026 was 20.05%.

Balance Sheet Trends

Total assets were $2.42 billion at September 30, 2026, an increase of approximately $117.2 million, or 5.1%, from $2.31 billion at December 31, 2025. LHFS were $142.4 million at September 30, 2026, a decrease of $28.5 million, or 16.7%, from $170.9 million at December 31, 2025. Gross LHFI were $1.79 billion at September 30, 2026, an increase of approximately $169.6 million, or 10.5%, from $1.62 billion at December 31, 2025.

Total deposits were $2.10 billion at September 30, 2026, an increase of $113.1 million, or 5.7%, from $1.99 billion at December 31, 2025. Noninterest-bearing deposits were $340.4 million at September 30, 2026, or 16.2% of total deposits, compared to $312.3 million, or 15.7% of total deposits, at December 31, 2025. Brokered certificates of deposit, a component of time deposits, were $257.0 million at September 30, 2026, as compared to $307.0 million at December 31, 2025, a decrease of $50.0 million, or 16.3%.

Credit Quality

During the third quarter of 2026, the Company recorded a recovery for credit losses of $429 thousand, compared to a provision for credit losses of $658 thousand and $653 thousand during the second quarter of 2026 and the third quarter of 2025, respectively. The recovery for credit losses recorded during the third quarter of 2026 was due to changes in the economic forecast and loan mix, offset by new loan production. The Company's annualized net charge-offs to average LHFI ratio was 0.01% for the third quarter of 2026 as compared to 0.01% and 0.03% during the second quarter of 2026 and the third quarter of 2025, respectively.

Nonperforming assets totaled $15.1 million, or 0.62% of total assets, at September 30, 2026 compared to $18.3 million, or 0.79% of total assets at December 31, 2025. The decrease in nonperforming loans was primarily due to a $4.2 million paydown of one nonaccrual senior housing loan, offset by modest additions to nonaccrual loans. Adjusted nonperforming assets3, which excludes the guaranteed portions of nonaccrual loans, was $10.9 million, or 0.45% of total assets, at September 30, 2026 compared to $14.2 million, or 0.62% of total assets, at December 31, 2025.

______________________________

3

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

 

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 cyber-attack incidents or deficiencies in cyber security; risks related to potential acquisitions; government actions or inactions, including a prolonged shutdown of the federal government, tariffs, or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; the effects of war or other conflicts, domestic civil unrest and tyranny, and changes in the overall geopolitical landscape; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized.

Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s 2025 Annual Report on Form 10-K under the Securities Exchange Act of 1934, as amended, filed with the Securities and Exchange Commission (the “SEC”) on March 12, 2026, and in other documents that we file with the SEC from time to time, which are available on the SEC’s website, http://www.sec.gov.

In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance.

Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.

 
 
 

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL TABLES
 

 

Financial Highlights (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 1A

 

 

 

 

As of and for the Three Months Ended

 

 

As of and for the Nine Months Ended

 

(dollars in thousands except

 

 

September 30,

 

 

 

June 30,

 

 

 

March 31,

 

 

 

December 31,

 

 

 

September 30,

 

 

 

September 30,

 

 

 

September 30,

 

per share amounts)

 

 

2026

 

 

 

2026

 

 

 

2026

 

 

 

2025

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Selected Operating Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

34,878

 

 

$

33,558

 

 

$

32,568

 

 

$

33,006

 

 

$

32,890

 

 

$

101,004

 

 

$

94,707

 

Interest expense

 

 

13,351

 

 

 

12,893

 

 

 

12,824

 

 

 

13,143

 

 

 

13,700

 

 

 

39,068

 

 

 

40,680

 

Net interest income

 

 

21,527

 

 

 

20,665

 

 

 

19,744

 

 

 

19,863

 

 

 

19,190

 

 

 

61,936

 

 

 

54,027

 

(Recovery) provision for credit losses

 

 

(429

)

 

 

658

 

 

 

382

 

 

 

1,162

 

 

 

653

 

 

 

611

 

 

 

2,034

 

Noninterest income

 

 

3,329

 

 

 

2,202

 

 

 

1,967

 

 

 

2,295

 

 

 

2,100

 

 

 

7,498

 

 

 

5,776

 

Noninterest expense

 

 

13,710

 

 

 

13,374

 

 

 

13,044

 

 

 

12,262

 

 

 

11,856

 

 

 

40,128

 

 

 

35,367

 

Income tax expense

 

 

2,803

 

 

 

1,502

 

 

 

1,956

 

 

 

1,598

 

 

 

2,040

 

 

 

6,261

 

 

 

4,646

 

Net income

 

 

8,772

 

 

 

7,333

 

 

 

6,329

 

 

 

7,136

 

 

 

6,741

 

 

 

22,434

 

 

 

17,756

 

Share and Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.73

 

 

$

0.61

 

 

$

0.53

 

 

$

0.60

 

 

$

0.57

 

 

$

1.87

 

 

$

1.64

 

Diluted earnings per share

 

$

0.71

 

 

$

0.59

 

 

$

0.51

 

 

$

0.58

 

 

$

0.54

 

 

$

1.81

 

 

$

1.58

 

Dividends per share

 

$

0.05

 

 

$

0.05

 

 

$

0.05

 

 

$

n/a

 

 

$

n/a

 

 

$

0.15

 

 

$

n/a

 

Book value per share

 

$

22.32

 

 

$

22.47

 

 

$

21.94

 

 

$

21.66

 

 

$

20.91

 

 

$

22.32

 

 

$

20.91

 

Tangible book value per common share (1)

 

$

21.90

 

 

$

22.06

 

 

$

21.52

 

 

$

21.25

 

 

$

20.49

 

 

$

21.90

 

 

$

20.49

 

Shares of common stock outstanding

 

 

11,734,134

 

 

 

12,003,040

 

 

 

11,985,414

 

 

 

11,980,412

 

 

 

11,978,921

 

 

 

11,734,134

 

 

 

11,978,921

 

Weighted average diluted shares outstanding

 

 

12,371,522

 

 

 

12,447,791

 

 

 

12,440,809

 

 

 

12,387,619

 

 

 

12,325,462

 

 

 

12,421,421

 

 

 

11,217,972

 

Selected Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,423,766

 

 

$

2,420,993

 

 

$

2,348,547

 

 

$

2,306,586

 

 

$

2,255,389

 

 

$

2,423,766

 

 

$

2,255,389

 

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

 

 

332,664

 

 

 

348,582

 

 

 

347,533

 

 

 

330,503

 

 

 

334,955

 

 

 

332,664

 

 

 

334,955

 

Gross loans held for investment

 

 

1,786,923

 

 

 

1,705,370

 

 

 

1,627,261

 

 

 

1,617,315

 

 

 

1,552,976

 

 

 

1,786,923

 

 

 

1,552,976

 

Loans held for sale

 

 

142,399

 

 

 

223,112

 

 

 

202,615

 

 

 

170,933

 

 

 

231,593

 

 

 

142,399

 

 

 

231,593

 

Allowance for credit losses

 

 

19,623

 

 

 

19,817

 

 

 

18,826

 

 

 

18,743

 

 

 

18,028

 

 

 

19,623

 

 

 

18,028

 

Goodwill and other intangible assets

 

 

6,307

 

 

 

6,246

 

 

 

6,243

 

 

 

6,262

 

 

 

6,186

 

 

 

6,307

 

 

 

6,186

 

Total deposits

 

 

2,100,746

 

 

 

2,047,671

 

 

 

2,057,144

 

 

 

1,987,684

 

 

 

1,949,672

 

 

 

2,100,746

 

 

 

1,949,672

 

Core deposits (1)

 

 

1,773,730

 

 

 

1,793,743

 

 

 

1,798,553

 

 

 

1,680,650

 

 

 

1,654,764

 

 

 

1,773,730

 

 

 

1,654,764

 

Other borrowings

 

 

30,000

 

 

 

75,000

 

 

 

-

 

 

 

30,000

 

 

 

25,000

 

 

 

30,000

 

 

 

25,000

 

Total shareholders' equity

 

 

261,920

 

 

 

269,703

 

 

 

262,923

 

 

 

259,529

 

 

 

250,438

 

 

 

261,920

 

 

 

250,438

 

(1)

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

(2)

The Company did not have securities held to maturity in any of the periods presented.

 
 
 
 

Financial Highlights - continued (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 1B

 

 

 

As of and for the Three Months Ended

 

 

As of and for the Nine Months Ended

 

 

 

 

 

September 30,

 

 

 

June 30,

 

 

 

March 31,

 

 

 

December 31,

 

 

 

September 30,

 

 

 

September 30,

 

 

 

September 30,

 

 

(dollars in thousands)

 

 

2026

 

 

 

2026

 

 

 

2026

 

 

 

2025

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

11,146

 

 

$

9,493

 

 

$

8,667

 

 

$

9,896

 

 

$

9,434

 

 

$

29,306

 

 

$

24,436

 

 

Return on average assets (ROAA) (2)

 

 

1.45

 

%

 

1.24

 

%

 

1.10

 

%

 

1.24

 

%

 

1.20

 

%

 

1.27

 

%

 

1.09

 

%

Return on average equity (2)

 

 

12.88

 

 

 

11.02

 

 

 

9.71

 

 

 

11.02

 

 

 

10.84

 

 

 

11.23

 

 

 

10.91

 

 

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

 

 

13.12

 

 

 

11.23

 

 

 

9.90

 

 

 

11.24

 

 

 

11.07

 

 

 

11.44

 

 

 

11.17

 

 

Dividend payout ratio

 

 

6.92

 

 

 

8.33

 

 

 

9.69

 

 

 

n/a

 

 

 

n/a

 

 

 

8.16

 

 

 

n/a

 

 

Net interest rate spread (2)

 

 

2.99

 

 

 

2.97

 

 

 

2.90

 

 

 

2.87

 

 

 

2.83

 

 

 

2.95

 

 

 

2.76

 

 

Net interest margin (2)

 

 

3.70

 

 

 

3.66

 

 

 

3.59

 

 

 

3.60

 

 

 

3.58

 

 

 

3.65

 

 

 

3.48

 

 

Efficiency ratio

 

 

55.16

 

 

 

58.49

 

 

 

60.08

 

 

 

55.34

 

 

 

55.69

 

 

 

57.79

 

 

 

59.14

 

 

Noninterest income to average total assets (2)

 

 

0.55

 

 

 

0.37

 

 

 

0.34

 

 

 

0.40

 

 

 

0.37

 

 

 

0.42

 

 

 

0.35

 

 

Noninterest expense to average total assets (2)

 

 

2.26

 

 

 

2.27

 

 

 

2.27

 

 

 

2.13

 

 

 

2.11

 

 

 

2.27

 

 

 

2.17

 

 

Average interest-earning assets to average interest-bearing liabilities

 

 

130.86

 

 

 

130.15

 

 

 

129.61

 

 

 

130.41

 

 

 

129.16

 

 

 

130.22

 

 

 

127.34

 

 

Average equity to average total assets

 

 

11.22

 

 

 

11.29

 

 

 

11.34

 

 

 

11.22

 

 

 

11.08

 

 

 

11.28

 

 

 

9.99

 

 

Asset Quality Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average LHFI (2)

 

 

0.01

 

%

 

0.01

 

%

 

0.01

 

%

 

0.00

 

%

 

0.03

 

%

 

0.01

 

%

 

0.03

 

%

Net charge-offs to total average loans (2)

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

 

 

0.00

 

 

 

0.03

 

 

 

0.01

 

 

 

0.03

 

 

Total allowance for credit losses to total LHFI

 

 

1.10

 

 

 

1.16

 

 

 

1.16

 

 

 

1.16

 

 

 

1.16

 

 

 

1.10

 

 

 

1.16

 

 

Total allowance for credit losses to total loans

 

 

1.02

 

 

 

1.03

 

 

 

1.03

 

 

 

1.05

 

 

 

1.01

 

 

 

1.02

 

 

 

1.01

 

 

Total allowance for credit losses to nonperforming loans

 

 

130.13

 

 

 

108.16

 

 

 

103.54

 

 

 

102.39

 

 

 

127.03

 

 

 

130.13

 

 

 

127.03

 

 

Nonperforming loans to gross LHFI

 

 

0.84

 

 

 

1.07

 

 

 

1.12

 

 

 

1.13

 

 

 

0.91

 

 

 

0.84

 

 

 

0.91

 

 

Nonperforming assets to total assets

 

 

0.62

 

 

 

0.76

 

 

 

0.77

 

 

 

0.79

 

 

 

0.63

 

 

 

0.62

 

 

 

0.63

 

 

Adjusted nonperforming assets to total assets (1)

 

 

0.45

 

 

 

0.61

 

 

 

0.62

 

 

 

0.62

 

 

 

0.43

 

 

 

0.45

 

 

 

0.43

 

 

Balance Sheet and Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan-to-deposit ratio

 

 

91.84

 

%

 

94.18

 

%

 

88.95

 

%

 

89.97

 

%

 

91.53

 

%

 

91.84

 

%

 

91.53

 

%

Noninterest-bearing deposits to total deposits

 

 

16.21

 

 

 

17.38

 

 

 

15.12

 

 

 

15.71

 

 

 

16.08

 

 

 

16.21

 

 

 

16.08

 

 

Total shareholders' equity to total assets

 

 

10.81

 

 

 

11.14

 

 

 

11.20

 

 

 

11.25

 

 

 

11.10

 

 

 

10.81

 

 

 

11.10

 

 

Tangible common equity to tangible assets (1)

 

 

10.63

 

 

 

10.96

 

 

 

11.01

 

 

 

11.06

 

 

 

10.91

 

 

 

10.63

 

 

 

10.91

 

 

Tier 1 leverage ratio (3)

 

 

11.07

 

 

 

11.12

 

 

 

11.21

 

 

 

11.18

 

 

 

11.15

 

 

 

11.07

 

 

 

11.15

 

 

Common equity tier 1 ratio (3)

 

 

12.30

 

 

 

12.30

 

 

 

12.19

 

 

 

12.30

 

 

 

11.94

 

 

 

12.30

 

 

 

11.94

 

 

Tier 1 risk-based capital ratio (3)

 

 

12.30

 

 

 

12.30

 

 

 

12.19

 

 

 

12.30

 

 

 

11.94

 

 

 

12.30

 

 

 

11.94

 

 

Total risk-based capital ratio (3)

 

 

13.36

 

 

 

13.39

 

 

 

13.25

 

 

 

13.31

 

 

 

12.90

 

 

 

13.36

 

 

 

12.90

 

 

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of branches

 

 

12

 

 

 

11

 

 

 

11

 

 

 

11

 

 

 

11

 

 

 

12

 

 

 

11

 

 

Number of full-time equivalent employees

 

 

210

 

 

 

201

 

 

 

201

 

 

 

196

 

 

 

194

 

 

 

207

 

 

 

187

 

 

(1)

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

(2)

Represents annualized data.

(3)

Ratios are for Coastal States Bank only. Ratios for September 30, 2026 are preliminary. 

 
 
 
 

Quarter End Balance Sheets (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Table 2

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

(dollars in thousands)

2026

 

2026

 

2026

 

2025

 

2025

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

25,443

 

 

$

24,262

 

 

$

22,546

 

 

$

41,538

 

 

$

20,088

 

Federal funds sold

 

19,775

 

 

 

9,960

 

 

 

40,011

 

 

 

38,229

 

 

 

6,191

 

Investment securities (1)

 

341,590

 

 

 

359,635

 

 

 

355,014

 

 

 

339,262

 

 

 

342,990

 

Loans held for sale (LHFS)

 

142,399

 

 

 

223,112

 

 

 

202,615

 

 

 

170,933

 

 

 

231,593

 

Loans held for investment (LHFI)

 

1,786,923

 

 

 

1,705,370

 

 

 

1,627,261

 

 

 

1,617,315

 

 

 

1,552,976

 

Allowance for credit losses on LHFI

 

(19,623

)

 

 

(19,817

)

 

 

(18,826

)

 

 

(18,743

)

 

 

(18,028

)

Loans held for investment, net

 

1,767,300

 

 

 

1,685,553

 

 

 

1,608,435

 

 

 

1,598,572

 

 

 

1,534,948

 

Bank-owned life insurance

 

49,694

 

 

 

49,218

 

 

 

48,752

 

 

 

48,296

 

 

 

47,833

 

Premises, furniture and equipment, net

 

18,378

 

 

 

18,611

 

 

 

18,810

 

 

 

18,122

 

 

 

18,186

 

Deferred tax asset

 

17,613

 

 

 

15,740

 

 

 

16,910

 

 

 

16,370

 

 

 

16,262

 

Goodwill & intangible assets (2)

 

6,307

 

 

 

6,246

 

 

 

6,243

 

 

 

6,262

 

 

 

6,186

 

Other assets

 

35,267

 

 

 

28,656

 

 

 

29,211

 

 

 

29,002

 

 

 

31,112

 

Total assets

$

2,423,766

 

 

$

2,420,993

 

 

$

2,348,547

 

 

$

2,306,586

 

 

$

2,255,389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing transaction accounts

$

340,427

 

 

$

355,941

 

 

$

311,054

 

 

$

312,251

 

 

$

313,604

 

Interest-bearing transaction accounts

 

213,146

 

 

 

194,896

 

 

 

235,422

 

 

 

214,620

 

 

 

198,753

 

Savings and money market

 

800,988

 

 

 

772,809

 

 

 

775,962

 

 

 

673,609

 

 

 

634,826

 

Time deposits

 

746,185

 

 

 

724,025

 

 

 

734,706

 

 

 

787,204

 

 

 

802,489

 

Total deposits

 

2,100,746

 

 

 

2,047,671

 

 

 

2,057,144

 

 

 

1,987,684

 

 

 

1,949,672

 

Federal Home Loan Bank of Atlanta advances

 

30,000

 

 

 

75,000

 

 

 

-

 

 

 

30,000

 

 

 

25,000

 

Other liabilities

 

31,100

 

 

 

28,619

 

 

 

28,480

 

 

 

29,373

 

 

 

30,279

 

Total liabilities

 

2,161,846

 

 

 

2,151,290

 

 

 

2,085,624

 

 

 

2,047,057

 

 

 

2,004,951

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voting common stock

 

11,734

 

 

 

12,003

 

 

 

11,853

 

 

 

10,868

 

 

 

10,449

 

Nonvoting common stock

 

-

 

 

 

-

 

 

 

132

 

 

 

1,112

 

 

 

1,530

 

Capital surplus

 

181,518

 

 

 

188,851

 

 

 

190,160

 

 

 

189,882

 

 

 

189,654

 

Accumulated income

 

87,489

 

 

 

79,324

 

 

 

72,602

 

 

 

66,886

 

 

 

59,750

 

Accumulated other comprehensive loss

 

(18,821

)

 

 

(10,475

)

 

 

(11,824

)

 

 

(9,219

)

 

 

(10,945

)

Total shareholders' equity

 

261,920

 

 

 

269,703

 

 

 

262,923

 

 

 

259,529

 

 

 

250,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

2,423,766

 

 

$

2,420,993

 

 

$

2,348,547

 

 

$

2,306,586

 

 

$

2,255,389

 


Contacts

Stephen R. Stone
President and Chief Executive Officer

Anthony P. Valduga
Chief Financial Officer / Chief Operating Officer

678-396-4605
investorrelations@coastalstatesbank.com


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