8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 28, 2025

COASTALSOUTH BANCSHARES, INC.

(Exact name of Registrant as Specified in Its Charter)

Georgia	001-42730	57-1184730
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
400 Galleria Pkwy Suite 1900
Atlanta, Georgia		30339
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: 678 396-4605

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.00 per share	COSO	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On July 28, 2025, CoastalSouth Bancshares, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition for the second quarter ended June 30, 2025. A copy of the press release covering such announcement is attached hereto as Exhibit 99.1 and incorporated by reference herein.

In accordance with General Instruction B.2 of Form 8-K, the information furnished in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number	Description
99.1	CoastalSouth Bancshares, Inc. Earnings Release dated July 28, 2025*
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CoastalSouth Bancshares, Inc.
Date: July 28, 2025	By:	/s/ Anthony P. Valduga
		Anthony P. Valduga
		Chief Financial Officer & Chief Operating Officer

EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

COASTALSOUTH BANCSHARES, INC. REPORTS EARNINGS FOR SECOND QUARTER 2025

ATLANTA, GA (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 value1per 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.

1Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10H.

1

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.

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 assets2, 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.

About CoastalSouth Bancshares, Inc.

CoastalSouth Bancshares, Inc. is a bank holding company headquartered in Atlanta, Georgia. Through our wholly owned subsidiary, Coastal States Bank, a South Carolina state-chartered commercial bank, we offer a full range of banking products and services designed for businesses, real estate professionals, and consumers looking for a deep and meaningful relationship with their bank. To learn more about Coastal States Bank, visit www.coastalstatesbank.com.

Contacts
Stephen R. Stone	Anthony P. Valduga
President and Chief Executive Officer	Chief Financial Officer / Chief Operating Officer
678-396-4605
investorrelations@coastalstatesbank.com

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

2

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.

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COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Financial Highlights (unaudited)																					Table 1A
		As of and for the Three Months Ended															As of and for the Six Months Ended
(dollars in thousands except		June 30,			March 31,			December 31,			September 30,				June 30,			June 30,			June 30,
per share amounts)		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.

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COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Financial Highlights - continued (unaudited)																											Table 1B
		As of and for the Three Months Ended																				As of and for the Six Months Ended
		June 30,				March 31,				December 31,					September 30,				June 30,				June 30,				June 30,
(dollars in thousands)		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.

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COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Quarter End Balance Sheets (unaudited)													Table 2
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)	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.

6

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Statements of Operations (unaudited)														Table 3
	Three Months Ended											Six Months Ended
	June 30,		March 31,		December 31,		September 30,			June 30,		June 30,		June 30,
(dollars in thousands)	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

7

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.

8

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

YTD Average Balances and Yields/Rates (unaudited)														Table 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.

9

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
(dollars in thousands)	Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of 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.

Nonperforming Assets (unaudited)													Table 7
	As of the Quarter Ended
(dollars in thousands)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024				June 30, 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	%

10

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Allowance for Credit Losses (unaudited)																				Table 8
	As of and for the Three Months Ended															As of and for the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,				June 30,			June 30,
(dollars in thousands)	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	%

11

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Loan Risk Ratings (1) (2) (unaudited)									Table 9
	As of the Quarter Ended
(dollars in thousands)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024			June 30, 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.

12

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 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.

13

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Non-GAAP Reconciliations

Tangible Book Value per Share / Tangible Common Equity to Tangible Assets (unaudited)																				Table 10A
	As of and for the Three Months Ended																As of and for the Six Months Ended
	June 30,				March 31,			December 31,			September 30,			June 30,			June 30,				June 30,
(dollars in thousands, except per share data)	2025				2025			2024			2024			2024			2025				2024
Tangible Common Equity:
Total shareholders' equity	$	209,365			$	202,104		$	195,232		$	193,303		$	180,168		$	209,365			$	180,168
Less: Goodwill and intangibles		(6,190	)			(6,199	)		(6,386	)		(6,451	)		(6,276	)		(6,190	)			(6,276	)
Adjusted for: Mortgage servicing      rights		1,122				1,093			1,237			1,258			1,037			1,122				1,037
Tangible Common Equity	$	204,297			$	196,998		$	190,083		$	188,110		$	174,929		$	204,297			$	174,929
Common shares outstanding		10,278,921		$		10,274,271			10,270,146			10,250,446			10,250,446			10,278,921				10,250,446
Book value per common share		20.37				19.67			19.01			18.86			17.58			20.37				17.58
Tangible book value per common   share		19.88				19.17			18.51			18.35			17.07			19.88				17.07
Tangible assets:
Total assets	$	2,221,245			$	2,190,391		$	2,098,712		$	2,129,346		$	2,115,547		$	2,221,245			$	2,115,547
Less: goodwill and intangibles		(6,190	)			(6,199	)		(6,386	)		(6,451	)		(6,276	)		(6,190	)			(6,276	)
Adjusted for: Mortgage servicing     rights		1,122				1,093			1,237			1,258			1,037			1,122				1,037
Tangible assets	$	2,216,177			$	2,185,285		$	2,093,563		$	2,124,153		$	2,110,308		$	2,216,177			$	2,110,308
Tangible common equity to    tangible assets		9.22	%			9.01	%		9.08	%		8.86	%		8.29	%		9.22	%			8.29	%

ROATCE / Adjusted ROATCE (unaudited)																			Table 10B
	As of and for the Three Months Ended															As of and for the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,				June 30,
(dollars in thousands)	2025			2025			2024			2024			2024			2025				2024
Net income	$	5,965		$	5,050		$	5,704		$	7,884		$	5,887		$	11,015			$	8,316
Average shareholders' equity		205,837			199,763			194,724			185,434			175,131			202,817				171,073
Return on average shareholders'   equity (1)		11.62	%		10.25	%		11.65	%		16.91	%		13.52	%		10.95	%			9.78	%
Average Tangible Common Equity:
Average shareholders' equity	$	205,837		$	199,763		$	194,724		$	185,434		$	175,131		$	202,817			$	171,073
Less: Average goodwill and     intangibles		(6,168	)		(6,328	)		(6,432	)		(6,257	)		(6,355	)		(6,248	)			(6,400	)
Adjusted for: Average mortgage     servicing rights		1,082			1,198			1,263			1,041			1,094			1,140				1,114
Average tangible common equity	$	200,751		$	194,633		$	189,555		$	180,218		$	169,870		$	197,709			$	165,787
Return on average tangible common (1)   shareholders' equity		11.92	%		10.52	%		11.97	%		17.40	%		13.94	%		11.23	%			10.09	%
Net income	$	5,965		$	5,050		$	5,704		$	7,884		$	5,887		$	11,015			$	8,316
Adjusted for:
Loss on sale of AFS   securities, net of tax (2)		-			-			-			-			-			-				2,654
Adjusted net income	$	5,965		$	5,050		$	5,704		$	7,884		$	5,887		$	11,015			$	10,970
Average tangible common equity	$	200,751		$	194,633		$	189,555		$	180,218		$	169,870		$	197,709			$	165,787
Adjusted return on average tangible   common equity (1)		11.92	%		10.52	%		11.97	%		17.40	%		13.94	%		11.23	%			13.31	%

(1) Represents annualized data.

(2) 2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring.

14

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Non-GAAP Reconciliations (continued)

Efficiency Ratio, as Adjusted / Noninterest Income to Total Revenue (unaudited)																			Table 10C
	As of and for the Three Months Ended															As of and for the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,				June 30,
(dollars in thousands)	2025			2025			2024			2024			2024			2025				2024
GAAP-based efficiency ratio		60.85	%		61.26	%		56.70	%		54.35	%		58.24	%		61.05	%			65.98	%
Net interest income	$	18,078		$	16,759		$	16,271		$	16,966		$	16,700		$	34,837			$	32,085
Noninterest income (loss)		1,795			1,881			1,958			2,961			1,589			3,676				(405	)
Adjusted for:
Loss on sale of AFS   securities (1)		-			-			-			-			-			-				3,465
Adjusted revenue	$	19,873		$	18,640		$	18,229		$	19,927		$	18,289		$	38,513			$	35,145
Total noninterest expense		12,092			11,419			10,335			10,830			10,652			23,511				20,903
Adjusted noninterest expense	$	12,092		$	11,419		$	10,335		$	10,830		$	10,652		$	23,511			$	20,903
Efficiency ratio, as adjusted		60.85	%		61.26	%		56.70	%		54.35	%		58.24	%		61.05	%			59.48	%
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		9.03	%		10.09	%		10.74	%		14.86	%		8.69	%		9.54	%			8.71	%

(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 Three Months Ended															As of and for the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,				June 30,
(dollars in thousands)	2025			2025			2024			2024			2024			2025				2024
Net income	$	5,965		$	5,050		$	5,704		$	7,884		$	5,887		$	11,015			$	8,316
Average assets		2,196,716			2,111,196			2,117,357			2,130,485			2,065,502			2,155,077				2,050,183
Return on average assets (1)		1.09	%		0.97	%		1.07	%		1.47	%		1.15	%		1.03	%			0.82	%
Net income	$	5,965		$	5,050		$	5,704		$	7,884		$	5,887		$	11,015			$	8,316
Adjusted for:
Loss on sale of AFS   securities, net of tax (2)		-			-			-			-			-			-				2,654
Adjusted net income	$	5,965		$	5,050		$	5,704		$	7,884		$	5,887		$	11,015			$	10,970
Average assets	$	2,196,716		$	2,111,196		$	2,117,357		$	2,130,485		$	2,065,502		$	2,155,077			$	2,050,183
Adjusted return on average   assets (1)		1.09	%		0.97	%		1.07	%		1.47	%		1.15	%		1.03	%			1.08	%

(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 Three Months Ended															As of and for the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,				June 30,
(dollars in thousands)	2025			2025			2024			2024			2024			2025				2024
Net income	$	5,965		$	5,050		$	5,704		$	7,884		$	5,887		$	11,015			$	8,316
Average shareholders' equity		205,837			199,763			194,724			185,434			175,131			202,817				171,073
Return on average   shareholders' equity (1)		11.62	%		10.25	%		11.65	%		16.91	%		13.52	%		10.95	%			9.78	%
Net income	$	5,965		$	5,050		$	5,704		$	7,884		$	5,887		$	11,015			$	8,316
Adjusted for:
Loss on sale of AFS   securities, net of tax (2)		-			-			-			-			-			-				2,654
Adjusted net income	$	5,965		$	5,050		$	5,704		$	7,884		$	5,887		$	11,015			$	10,970
Average shareholders' equity	$	205,837		$	199,763		$	194,724		$	185,434		$	175,131		$	202,817			$	171,073
Adjusted return on average   shareholders' equity (1)		11.62	%		10.25	%		11.65	%		16.91	%		13.52	%		10.95	%			12.90	%

(1) Represents annualized data.

(2) 2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring.

15

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Non-GAAP Reconciliations (continued)

Adjusted Net Income / Adjusted Basic EPS / Adjusted Diluted EPS (unaudited)													Table 10F
	As of and for the Three Months Ended										As of and for the Six Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,			June 30,
(dollars in thousands, except per share data)	2025		2025		2024		2024		2024		2025			2024
Net income	$	5,965	$	5,050	$	5,704	$	7,884	$	5,887	$	11,015		$	8,316
Average common shares   outstanding - basic		10,277,721		10,273,125		10,250,446		10,250,446		10,247,201		10,275,436			10,145,576
Basic earnings per share	$	0.58	$	0.49	$	0.56	$	0.77	$	0.58	$	1.07		$	0.82
Average common shares   outstanding - diluted		10,612,255		10,642,078		10,596,364		10,544,087		10,445,144		10,636,997			10,344,815
Diluted earnings per share	$	0.57	$	0.47	$	0.54	$	0.75	$	0.56	$	1.04		$	0.80
Net income	$	5,965	$	5,050	$	5,704	$	7,884	$	5,887	$	11,015		$	8,316
Adjusted for:
Loss on sale of AFS securities,   net of tax (1)		-		-		-		-		-		-			2,654
Adjusted net income	$	5,965	$	5,050	$	5,704	$	7,884	$	5,887	$	11,015		$	10,970
Adjusted basic earnings per share	$	0.58	$	0.49	$	0.56	$	0.77	$	0.57	$	1.07		$	1.08
Adjusted diluted earnings per share	$	0.57	$	0.47	$	0.54	$	0.75	$	0.56	$	1.04		$	1.06

(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 Three Months Ended															As of and for the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,				June 30,
(dollars in thousands)	2025			2025			2024			2024			2024			2025				2024
Total nonperforming assets	$	14,704		$	15,370		$	15,870		$	9,321		$	8,786		$	14,704			$	8,786
Total assets		2,221,245			2,190,391			2,098,712			2,129,346			2,115,547			2,221,245				2,115,547
GAAP-based nonperforming assets   to total assets		0.66	%		0.70	%		0.76	%		0.44	%		0.42	%		0.66	%			0.42	%
Total nonperforming assets	$	14,704		$	15,370		$	15,870		$	9,321		$	8,786		$	14,704			$	8,786
Adjusted for:
Guaranteed portions of nonaccrual   loans		4,583			4,692			4,811			4,916			4,910			4,583				4,910
Adjusted total nonperforming assets	$	10,121		$	10,678		$	11,059		$	4,405		$	3,876		$	10,121			$	3,876
Total assets	$	2,221,245		$	2,190,391		$	2,098,712		$	2,129,346		$	2,115,547		$	2,221,245			$	2,115,547
Adjusted nonperforming assets to   total assets		0.46	%		0.49	%		0.53	%		0.21	%		0.18	%		0.46	%			0.18	%

PPNR (unaudited)														Table 10H
	As of and for the Three Months Ended											As of and for the Six Months Ended
	June 30,		March 31,		December 31,		September 30,			June 30,		June 30,			June 30,
(dollars in thousands)	2025		2025		2024		2024			2024		2025			2024
Net income (GAAP-based)	$	5,965	$	5,050	$	5,704	$	7,884		$	5,887	$	11,015		$	8,316
Plus:
Income tax expense		1,064		1,542		950		2,236			1,577		2,606			2,125
Provision (recovery) for credit losses		752		629		1,240		(1,023	)		173		1,381			336
Pre-tax, pre-provision net revenue	$	7,781	$	7,221	$	7,894	$	9,097		$	7,637	$	15,002		$	10,777

16

XML

Document And Entity Information	Jul. 28, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 28, 2025
Entity Registrant Name	COASTALSOUTH BANCSHARES, INC.
Entity Central Index Key	0001297107
Entity Emerging Growth Company	true
Entity File Number	001-42730
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	57-1184730
Entity Address, Address Line One	400 Galleria Pkwy
Entity Address, Address Line Two	Suite 1900
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30339
City Area Code	678
Local Phone Number	396-4605
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Ex Transition Period	false
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	COSO
Security Exchange Name	NYSE