Form 8-K

8-K — CoastalSouth Bancshares, Inc.

Accession: 0001297107-26-000009

Filed: 2026-07-20

Period: 2026-07-20

CIK: 0001297107

SIC: 6022 (STATE COMMERCIAL BANKS)

Item: Results of Operations and Financial Condition

Item: Regulation FD Disclosure

Item: Financial Statements and Exhibits

Documents

8-K — coso-20260720.htm (Primary)

EX-99.1 (coso-ex99_1.htm)

EX-99.2 (coso-ex99_2.htm)

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8-K

8-K (Primary)

Filename: coso-20260720.htm · Sequence: 1

8-K

false000129710700012971072026-07-202026-07-20

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 20, 2026

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 Parkway

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 20, 2026, CoastalSouth Bancshares, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition for the second quarter ended June 30, 2026. 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 (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.

Item 7.01 Regulation FD Disclosure.

On July 20, 2026, the Company made available a copy of investor presentation material (the “Investor Presentation”) prepared for use with the press release. The Investor Presentation is attached to this Report as Exhibit 99.2. The Investor Presentation is also available on the “Investor Relations” page of the Company’s website (https://www.coastalstatesbank.com).

In accordance with General Instruction B.2 of Form 8-K, the information furnished in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 hereto, shall not be deemed to be “filed” for purposes of Section 18 of 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, 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 20, 2026*

99.2

CoastalSouth Bancshares, Inc. Investor Presentation re: 2nd Quarter 2026 Results*

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 20, 2026

By:

/s/ Anthony P. Valduga

Anthony P. Valduga

Chief Financial Officer & Chief Operating Officer

EX-99.1

EX-99.1

Filename: coso-ex99_1.htm · Sequence: 2

EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

COASTALSOUTH BANCSHARES, INC. REPORTS EARNINGS FOR SECOND QUARTER 2026

ATLANTA, GA (July 20, 2026) – CoastalSouth Bancshares, Inc. (“CoastalSouth” or the “Company”) (NYSE: COSO), the holding company for Coastal States Bank (the “Bank” or "CSB"), today reported net income of $7.3 million, or $0.59 per diluted share, for the second quarter of 2026, compared to approximately $6.3 million, or $0.51 per diluted share, for the first quarter of 2026, and $6.0 million, or $0.57 per diluted share, for the second quarter of 2025. For the six months ended June 30, 2026, the Company reported net income of $13.7 million, or $1.10 per diluted share, compared with $11.0 million, or $1.04 per diluted share, for the same period in 2025.

Additionally, on July 20, 2026 the Board of Directors of CoastalSouth Bancshares, Inc. declared a per share quarterly dividend of $0.05. The dividend will be paid to shareholders of record as of the close of business on August 13, 2026, the record date. The dividend shall be paid on August 27, 2026.

Commenting on the Company’s second quarter performance, President and Chief Executive Officer Stephen R. Stone stated, "We saw outstanding loan production2 of $181.6 million during the second quarter, driving a $78.1 million increase in loans held for investment, or 19.3% annualized. The majority of production in the second quarter continued to come from the community bank with each region, including our new Charleston team, providing meaningful contributions. We are pleased to have achieved this growth while expanding our net interest margin and maintaining low net charge-offs. We continue to see opportunities to invest in new CSB team members across our footprint particularly as a result of recent M&A activity. We are pleased with our financial results and we look forward to building upon this performance in the second half of the year."

Second Quarter 2026 Performance Highlights:

•

Net income of $7.3 million or $0.59 per diluted share

•

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

•

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

•

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

•

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

•

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

•

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

•

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

•

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

•

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

•

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

•

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

Operating Highlights

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

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

2 The Company defines production as original loan commitment amount, which includes both funded and unfunded balances at the time of origination. As of June 30, 2026, these loans had funded balances of $126.0 million and unfunded commitments of $53.9 million.

1

The yield on average interest-earning assets for the second quarter of 2026 increased to 5.94% from 5.92% for the first quarter of 2026. This increase was primarily related to an overall yield increase in average interest-earning assets, principally investment securities; offset by a decrease in yield in LHFI. Compared to the second quarter of 2025, yields on earning assets decreased 14 basis points to 5.94% from 6.08%. The decrease was primarily attributable to interest rate cuts during 2025, notwithstanding a $169.0 million growth in average total earning assets.

The Company’s total cost of funds was 2.50% for the second quarter of 2026, a decrease of 5 basis points compared to the first quarter of 2026, and 30 basis points compared to the second quarter of 2025. Deposit costs were 2.48% for the second quarter of 2026, compared to 2.54% for the first quarter of 2026, a decrease of 6 basis points, and 2.75% for the second quarter of 2025, a decrease of 27 basis points. The cost of interest-bearing deposits decreased 6 basis points during the second quarter of 2026 to 2.95%, compared with 3.01% in the first quarter of 2026, reflecting continued repricing of certificates of deposits during the second quarter of 2026.

Noninterest income totaled $2.2 million for the second quarter of 2026, an increase of $235 thousand, or 12.0%, from the first quarter of 2026, primarily attributable to gain on sale of other loans, coupled with a net increase in other categories within noninterest income. Noninterest expense totaled $13.4 million for the second quarter of 2026, an increase of $330 thousand, or 2.5%, from the first quarter of 2026. This increase was primarily due to higher salaries and employee benefits, coupled with a net increase in other noninterest expense categories, principally in other professional services, software and other technology expense, and other noninterest expense; offset by a decrease in regulatory assessment expense. The Company continues to focus on organic growth and expansion through banker recruiting across the franchise.

The Company’s effective tax rate for the second quarter of 2026 was 17.0%, compared to 23.6% for the first quarter of 2026, and 15.1% for the second quarter of 2025. The decrease in effective tax rate from the first quarter of 2026 was primarily due to a higher recognition of benefits from tax credits during the second quarter of 2026.

Balance Sheet Trends

Total assets were $2.42 billion at June 30, 2026, an increase of approximately $114.4 million, or 5.0%, from $2.31 billion at December 31, 2025. Loans held for sale ("LHFS") were $223.1 million at June 30, 2026, an increase of $52.2 million, or 30.5%, from $170.9 million at December 31, 2025. Gross LHFI were $1.71 billion at June 30, 2026, an increase of approximately $88.1 million, or 5.4%, from $1.62 billion at December 31, 2025.

Total deposits were $2.05 billion at June 30, 2026, an increase of $60.0 million, or 3.0%, from $1.99 billion at December 31, 2025. Noninterest-bearing deposits were $355.9 million at June 30, 2026, or 17.4% of total deposits, compared to $312.3 million, or 15.7% of total deposits, at December 31, 2025. Brokered certificates of deposit, a component of time deposits, were $253.9 million at June 30, 2026, as compared to $307.0 million at December 31, 2025, a decrease of $53.1 million, or 17.3%.

Credit Quality

During the second quarter of 2026, the Company recorded a provision for credit losses of $658 thousand, compared to $382 thousand and $752 thousand during the first quarter of 2026 and the second quarter of 2025, respectively. The provision expense recorded during the second quarter of 2026 was due to loan production and updated collateral values on individually reviewed loans, offset with other changes in loss rates. The Company's annualized net charge-offs to average LHFI ratio was 0.01% for the second quarter of 2026 as compared to 0.01% and 0.06% during the first quarter of 2026 and the second quarter of 2025, respectively.

Nonperforming assets totaled $18.3 million, or 0.76% of total assets, at June 30, 2026 compared to $18.3 million, or 0.79% of total assets at December 31, 2025. Adjusted nonperforming assets3, which excludes the guaranteed portions of nonaccrual loans, was $14.8 million, or 0.61% of total assets, at June 30, 2026 compared to $14.2 million, or 0.62% of total assets, at December 31, 2025.

About CoastalSouth Bancshares, Inc.

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

Contacts

Stephen R. Stone

Anthony P. Valduga

President and Chief Executive Officer

Chief Financial Officer / Chief Operating Officer

678-396-4605

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

2

investorrelations@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 Act of 1933, as amended, filed with the Securities and Exchange Commission (the “SEC”) on March 12, 2026, and in other documents that we file with the SEC from time to time, which are available on the SEC’s website, http://www.sec.gov.

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

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

3

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Financial Highlights (unaudited)

Table 1A

As of and for the Three Months Ended

As of and for the Six Months Ended

(dollars in thousands except

June 30,

March 31,

December 31,

September 30,

June 30,

June 30,

June 30,

per share amounts)

2026

2026

2025

2025

2025

2026

2025

Selected Operating Data:

Interest income

$

33,558

$

32,568

$

33,006

$

32,890

$

31,793

$

66,126

$

61,817

Interest expense

12,893

12,824

13,143

13,700

13,715

25,717

26,980

Net interest income

20,665

19,744

19,863

19,190

18,078

40,409

34,837

Provision for credit losses

658

382

1,162

653

752

1,040

1,381

Noninterest income

2,202

1,967

2,295

2,100

1,795

4,169

3,676

Noninterest expense

13,374

13,044

12,262

11,856

12,092

26,418

23,511

Income tax expense

1,502

1,956

1,598

2,040

1,064

3,458

2,606

Net income

7,333

6,329

7,136

6,741

5,965

13,662

11,015

Share and Per Share Data:

Basic earnings per share

$

0.61

$

0.53

$

0.60

$

0.57

$

0.58

$

1.14

$

1.07

Diluted earnings per share

$

0.59

$

0.51

$

0.58

$

0.54

$

0.57

$

1.10

$

1.04

Dividends per share

$

0.05

$

0.05

$

n/a

$

n/a

$

n/a

$

0.10

$

n/a

Book value per share

$

22.47

$

21.94

$

21.66

$

20.91

$

20.37

$

22.47

$

20.37

Tangible book value per common share (1)

$

22.06

$

21.52

$

21.25

$

20.49

$

19.88

$

22.06

$

19.88

Shares of common stock outstanding

12,003,040

11,985,414

11,980,412

11,978,921

10,278,921

12,003,040

10,278,921

Weighted average diluted shares

outstanding

12,447,791

12,440,809

12,387,619

12,325,462

10,612,255

12,444,884

10,636,997

Selected Balance Sheet Data:

Total assets

$

2,420,993

$

2,348,547

$

2,306,586

$

2,255,389

$

2,221,245

$

2,420,993

$

2,221,245

Securities available-for-sale, at

fair value (2)

348,582

347,533

330,503

334,955

331,760

348,582

331,760

Gross loans held for investment

1,705,370

1,627,261

1,617,315

1,552,976

1,527,199

1,705,370

1,527,199

Loans held for sale

223,112

202,615

170,933

231,593

209,101

223,112

209,101

Allowance for credit losses

19,817

18,826

18,743

18,028

17,497

19,817

17,497

Goodwill and other intangible assets

6,246

6,243

6,262

6,186

6,190

6,246

6,190

Total deposits

2,047,671

2,057,144

1,987,684

1,949,672

1,968,301

2,047,671

1,968,301

Core deposits (1)

1,793,743

1,798,553

1,680,650

1,654,764

1,660,409

1,793,743

1,660,409

Other borrowings

75,000

-

30,000

25,000

14,753

75,000

14,753

Total Shareholders' equity

269,703

262,923

259,529

250,438

209,365

269,703

209,365

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

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

4

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Financial Highlights - continued (unaudited)

Table 1B

As of and for the Three Months Ended

As of and for the Six Months Ended

June 30,

March 31,

December 31,

September 30,

June 30,

June 30,

June 30,

(dollars in thousands)

2026

2026

2025

2025

2025

2026

2025

Performance Ratios:

Pre-tax, pre-provision net revenue

(PPNR) (1)

$

9,493

$

8,667

$

9,896

$

9,434

$

7,781

$

18,160

$

15,002

Return on average assets (ROAA) (2)

1.24

%

1.10

%

1.24

%

1.20

%

1.09

%

1.17

%

1.03

%

Return on average equity (2)

11.02

9.71

11.02

10.84

11.62

10.37

10.95

Return on average tangible common

equity (ROATCE) (1)(2)

11.23

9.90

11.24

11.07

11.92

10.57

11.23

Dividend payout ratio

8.33

9.69

n/a

n/a

n/a

8.96

n/a

Net interest rate spread (2)

2.97

2.90

2.87

2.83

2.76

2.93

2.72

Net interest margin (2)

3.66

3.59

3.60

3.58

3.46

3.62

3.42

Efficiency ratio

58.49

60.08

55.34

55.69

60.85

59.26

61.05

Noninterest income to average total

assets (2)

0.37

0.34

0.40

0.37

0.33

0.36

0.34

Noninterest expense to average total

assets (2)

2.27

2.27

2.13

2.11

2.21

2.27

2.20

Average interest-earning assets to average

interest-bearing liabilities

130.15

129.61

130.41

129.16

126.50

129.88

126.41

Average equity to average total assets

11.29

11.34

11.22

11.08

9.37

11.32

9.41

Asset Quality Data:

Net charge-offs to average LHFI (2)

0.01

%

0.01

%

0.00

%

0.03

%

0.06

%

0.01

%

0.03

%

Net charge-offs to total average loans (2)

0.01

0.01

0.00

0.03

0.05

0.01

0.03

Total allowance for credit losses

to total LHFI

1.16

1.16

1.16

1.16

1.15

1.16

1.15

Total allowance for credit losses

to total loans

1.03

1.03

1.05

1.01

1.01

1.03

1.01

Total allowance for credit losses

to nonperforming loans

108.16

103.54

102.39

127.03

118.99

108.16

118.99

Nonperforming loans to gross LHFI

1.07

1.12

1.13

0.91

0.96

1.07

0.96

Nonperforming assets to total assets

0.76

0.77

0.79

0.63

0.66

0.76

0.66

Adjusted nonperforming assets to total

assets (1)

0.61

0.62

0.62

0.43

0.46

0.61

0.46

Balance Sheet and Capital Ratios:

Loan-to-deposit ratio

94.18

%

88.95

%

89.97

%

91.53

%

88.21

%

94.18

%

88.21

%

Noninterest-bearing deposits to

total deposits

17.38

15.12

15.71

16.08

15.92

17.38

15.92

Total shareholders' equity to total assets

11.14

11.20

11.25

11.10

9.43

11.14

9.43

Tangible common equity to tangible

assets (1)

10.96

11.01

11.06

10.91

9.22

10.96

9.22

Tier 1 leverage ratio (3)

11.12

11.21

11.18

11.15

10.22

11.12

10.22

Common equity tier 1 ratio (3)

12.30

12.19

12.30

11.94

11.09

12.30

11.09

Tier 1 risk-based capital ratio (3)

12.30

12.19

12.30

11.94

11.09

12.30

11.09

Total risk-based capital ratio (3)

13.39

13.25

13.31

12.90

12.04

13.39

12.04

Other:

Number of branches

11

11

11

11

11

11

11

Number of full-time equivalent

employees

201

201

196

194

188

201

183

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

(2) Represents annualized data.

(3) Ratios are for Coastal States Bank only. Ratios for June 30, 2026 are preliminary.

5

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Quarter End Balance Sheets (unaudited)

Table 2

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2026

2026

2025

2025

2025

Assets

Cash and due from banks

$

24,262

$

22,546

$

41,538

$

20,088

$

23,245

Federal funds sold

9,960

40,011

38,229

6,191

20,045

Investment securities (1)

359,635

355,014

339,262

342,990

338,601

Loans held for sale (LHFS)

223,112

202,615

170,933

231,593

209,101

Loans held for investment (LHFI)

1,705,370

1,627,261

1,617,315

1,552,976

1,527,199

Allowance for credit losses on LHFI

(19,817

)

(18,826

)

(18,743

)

(18,028

)

(17,497

)

Loans held for investment, net

1,685,553

1,608,435

1,598,572

1,534,948

1,509,702

Bank-owned life insurance

49,218

48,752

48,296

47,833

47,373

Premises, furniture and equipment, net

18,611

18,810

18,122

18,186

18,166

Deferred tax asset

15,740

16,910

16,370

16,262

17,211

Goodwill & intangible assets (2)

6,246

6,243

6,262

6,186

6,190

Other assets

28,656

29,211

29,002

31,112

31,611

Total assets

$

2,420,993

$

2,348,547

$

2,306,586

$

2,255,389

$

2,221,245

Liabilities and shareholders' equity

Liabilities

Deposits

Noninterest-bearing transaction accounts

$

355,941

$

311,054

$

312,251

$

313,604

$

313,386

Interest-bearing transaction accounts

194,896

235,422

214,620

198,753

209,816

Savings and money market

772,809

775,962

673,609

634,826

628,729

Time deposits

724,025

734,706

787,204

802,489

816,370

Total deposits

2,047,671

2,057,144

1,987,684

1,949,672

1,968,301

Federal Home Loan Bank of

Atlanta advances

75,000

-

30,000

25,000

-

Subordinated debt, net

-

-

-

-

14,753

Other liabilities

28,619

28,480

29,373

30,279

28,826

Total liabilities

2,151,290

2,085,624

2,047,057

2,004,951

2,011,880

Shareholders' equity

Voting common stock

12,003

11,853

10,868

10,449

8,107

Nonvoting common stock

-

132

1,112

1,530

2,172

Capital surplus

188,851

190,160

189,882

189,654

159,267

Accumulated income

79,324

72,602

66,886

59,750

53,009

Accumulated other comprehensive loss

(10,475

)

(11,824

)

(9,219

)

(10,945

)

(13,190

)

Total shareholders' equity

269,703

262,923

259,529

250,438

209,365

Total liabilities and shareholders' equity

$

2,420,993

$

2,348,547

$

2,306,586

$

2,255,389

$

2,221,245

(1) No ACL on investment securities was recognized for the periods presented; includes securities available-for-sale and non-marketable equity securities.

(2) Includes commercial mortgage servicing rights of approximately $1.3 million, $1.3 million, $1.3 million, $1.2 million, and $1.1 million at June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025, respectively.

6

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Statements of Operations (unaudited)

Table 3

Three Months Ended

Six Months Ended

June 30,

March 31,

December 31,

September 30,

June 30,

June 30,

June 30,

(dollars in thousands)

2026

2026

2025

2025

2025

2026

2025

Interest income

Interest on cash and due from banks

$

121

$

125

$

109

$

129

$

111

$

246

$

246

Interest on federal funds sold

409

792

624

616

698

1,201

1,661

Interest and dividends on investment

securities

3,892

3,611

3,734

4,125

3,875

7,503

7,675

Interest and fees on LHFS

3,162

2,915

3,771

3,422

3,296

6,077

6,115

Interest and fees on LHFI

25,974

25,125

24,768

24,598

23,813

51,099

46,120

Total interest income

33,558

32,568

33,006

32,890

31,793

66,126

61,817

Interest expense

Deposits

12,545

12,592

12,925

13,274

13,251

25,137

26,081

Other borrowings

348

232

218

426

464

580

899

Total interest expense

12,893

12,824

13,143

13,700

13,715

25,717

26,980

Net interest income

20,665

19,744

19,863

19,190

18,078

40,409

34,837

Provision for credit losses

658

382

1,162

653

752

1,040

1,381

Net interest income after provision for

credit losses

20,007

19,362

18,701

18,537

17,326

39,369

33,456

Noninterest income

Mortgage banking related income

403

394

330

299

326

797

547

Interchange and card fee income

256

273

230

238

257

529

523

Service charges on deposit accounts

236

232

256

208

215

468

426

Bank-owned life insurance

466

456

462

461

449

922

889

Gain on sale of government guaranteed

loans

307

337

682

613

265

644

265

Other noninterest income

534

275

335

281

283

809

1,026

Total noninterest income

2,202

1,967

2,295

2,100

1,795

4,169

3,676

Noninterest expense

Salaries and employee benefits

8,314

8,046

7,644

6,985

6,997

16,360

13,691

Occupancy and equipment

875

886

864

850

814

1,761

1,602

Data processing

682

655

640

647

653

1,337

1,277

Other professional services

632

595

391

571

973

1,227

1,666

Software and other technology expense

861

826

808

788

719

1,687

1,422

Regulatory assessment

308

371

369

419

344

679

705

Other noninterest expense

1,702

1,665

1,546

1,596

1,592

3,367

3,148

Total noninterest expense

13,374

13,044

12,262

11,856

12,092

26,418

23,511

Net income before taxes

8,835

8,285

8,734

8,781

7,029

17,120

13,621

Income tax expense

1,502

1,956

1,598

2,040

1,064

3,458

2,606

Net income

$

7,333

$

6,329

$

7,136

$

6,741

$

5,965

$

13,662

$

11,015

7

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

QTD Average Balances and Yields/Rates (unaudited)

Table 4

Three Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

Average

Yield/

Average

Yield/

Average

Yield/

(dollars in thousands)

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Interest

Rate

Earning assets:

Cash and due from banks

$

23,889

$

121

2.03

%

$

24,822

$

125

2.04

%

$

20,762

$

111

2.14

%

Federal funds sold

44,172

409

3.71

%

85,959

792

3.74

%

62,656

698

4.47

%

Investment securities

358,658

3,892

4.35

%

343,772

3,611

4.26

%

338,635

3,875

4.59

%

Loans held for sale

170,135

3,162

7.45

%

158,597

2,915

7.45

%

167,617

3,296

7.89

%

Loans held for investment

1,668,045

25,974

6.25

%

1,618,301

25,125

6.30

%

1,506,211

23,813

6.34

%

Total earning assets

2,264,899

33,558

5.94

%

2,231,451

32,568

5.92

%

2,095,881

31,793

6.08

%

Noninterest-earning assets:

Allowance for credit losses on LHFI

(18,834

)

(18,746

)

(17,110

)

Bank-owned life insurance

48,944

48,487

47,119

Premises, furniture and equipment, net

18,760

18,458

18,034

Deferred tax asset

16,702

16,173

17,182

Goodwill & intangible assets

6,229

6,270

6,168

Other assets

27,734

27,365

29,442

Total noninterest-earning assets

99,535

98,007

100,835

Total assets

$

2,364,434

$

2,329,458

$

2,196,716

Interest-bearing liabilities:

Interest-bearing deposits

$

1,704,027

$

12,545

2.95

%

$

1,697,024

$

12,592

3.01

%

$

1,626,415

$

13,251

3.27

%

Federal funds purchased

-

-

0.00

%

-

-

0.00

%

38

1

10.56

%

Federal Home Loan Bank of

Atlanta advances

36,209

348

3.85

%

24,667

232

3.81

%

10,000

116

4.65

%

Revolving commercial line of credit, net

-

-

0.00

%

-

-

0.00

%

5,667

112

7.93

%

Subordinated debt, net

-

-

0.00

%

-

-

0.00

%

14,747

235

6.39

%

Total interest-bearing liabilities

1,740,236

12,893

2.97

%

1,721,691

12,824

3.02

%

1,656,867

13,715

3.32

%

Noninterest-bearing liabilities:

Noninterest-bearing deposits

328,644

315,023

306,330

Other liabilities

28,580

28,512

27,682

Total noninterest-bearing liabilities

357,224

343,535

334,012

Shareholders' equity

266,974

264,232

205,837

Total liabilities and shareholders' equity

$

2,364,434

$

2,329,458

$

2,196,716

Net interest income

$

20,665

$

19,744

$

18,078

Net interest spread

2.97

%

2.90

%

2.76

%

Net interest margin

3.66

%

3.59

%

3.46

%

Cost of total deposits (1)

2.48

%

2.54

%

2.75

%

Cost of total funding (1)

2.50

%

2.55

%

2.80

%

(1) Includes noninterest-bearing deposits.

8

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

YTD Average Balances and Yields/Rates (unaudited)

Table 5

Six Months Ended

June 30, 2026

June 30, 2025

Average

Yield/

Average

Yield/

(dollars in thousands)

Balance

Interest

Rate

Balance

Interest

Rate

Earning assets:

Cash and due from banks

$

24,353

$

246

2.04

%

$

21,738

$

246

2.28

%

Federal funds sold

64,950

1,201

3.73

%

75,496

1,661

4.44

%

Investment securities

351,256

7,503

4.31

%

336,954

7,675

4.59

%

Loans held for sale

164,398

6,077

7.45

%

152,318

6,115

8.10

%

Loans held for investment

1,643,310

51,099

6.27

%

1,467,523

46,120

6.34

%

Total earning assets

2,248,267

66,126

5.93

%

2,054,029

61,817

6.07

%

Noninterest-earning assets:

Allowance for credit losses on LHFI

(18,790

)

(17,113

)

Bank-owned life insurance

48,717

46,897

Premises, furniture and equipment, net

18,610

17,943

Deferred tax asset

16,439

17,491

Goodwill & intangible assets

6,250

6,248

Other assets

27,501

29,582

Total noninterest-earning assets

98,727

101,048

Total assets

$

2,346,994

$

2,155,077

Interest-bearing liabilities:

Interest-bearing deposits

$

1,700,545

$

25,137

2.98

%

$

1,596,799

$

26,081

3.29

%

Federal funds purchased

-

-

0.00

%

19

1

10.61

%

Federal Home Loan Bank of

Atlanta advances

30,470

580

3.84

%

5,607

128

4.60

%

Revolving commercial line of credit, net

-

-

0.00

%

7,754

300

7.80

%

Subordinated debt, net

-

-

0.00

%

14,741

470

6.43

%

Total interest-bearing liabilities

1,731,015

25,717

3.00

%

1,624,920

26,980

3.35

%

Noninterest-bearing liabilities:

Noninterest-bearing deposits

321,871

299,895

Other liabilities

28,497

27,445

Total noninterest-bearing liabilities

350,368

327,340

Shareholders' equity

265,611

202,817

Total liabilities and shareholders' equity

$

2,346,994

$

2,155,077

Net interest income

$

40,409

$

34,837

Net interest spread

2.93

%

2.72

%

Net interest margin

3.62

%

3.42

%

Cost of total deposits (1)

2.51

%

2.77

%

Cost of total funding (1)

2.53

%

2.83

%

(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, 2026

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

(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

$

144,436

8.5

%

$

130,398

8.0

%

$

119,352

7.4

%

$

106,787

6.9

%

$

100,528

6.6

%

Income producing CRE

416,965

24.5

376,260

23.1

378,179

23.4

371,670

23.9

372,142

24.4

Owner-occupied CRE

127,285

7.5

107,344

6.6

92,787

5.7

96,287

6.2

91,147

6.0

Senior housing

248,282

14.5

254,445

15.6

259,529

16.0

223,719

14.4

236,474

15.5

Commercial and industrial

139,313

8.1

138,964

8.6

145,380

9.0

135,039

8.7

131,716

8.6

Retail Loans

Marine vessels

313,230

18.4

307,746

18.9

312,096

19.3

318,246

20.5

301,327

19.7

Residential mortgages

202,768

11.9

202,503

12.5

199,991

12.4

190,220

12.3

185,527

12.1

Cash value life insurance LOC

89,305

5.2

86,610

5.3

87,172

5.4

90,115

5.8

87,135

5.7

Other consumer

23,786

1.4

22,991

1.4

22,829

1.4

20,893

1.4

21,203

1.4

Gross loans held for investment

$

1,705,370

100.0

%

$

1,627,261

100.0

%

$

1,617,315

100.0

%

$

1,552,976

100.0

%

$

1,527,199

100.0

%

Core LHFI

1,657,581

1,573,972

1,561,791

1,492,992

1,464,200

Acquired LHFI (1)

47,789

53,289

55,524

59,984

62,999

Gross loans held for investment

$

1,705,370

$

1,627,261

$

1,617,315

$

1,552,976

$

1,527,199

Allowance for credit losses on LHFI

19,817

18,826

18,743

18,028

17,497

Net loans held for investment

$

1,685,553

$

1,608,435

$

1,598,572

$

1,534,948

$

1,509,702

Total loans held-for-sale

223,112

202,615

170,933

231,593

209,101

Total loans

$

1,928,482

$

1,829,876

$

1,788,248

$

1,784,569

$

1,736,300

(1) Includes loans acquired through business combinations.

Nonperforming Assets (unaudited)

Table 7

As of the Quarter Ended

(dollars in thousands)

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

Nonaccrual loans

$

18,322

$

18,183

$

18,306

$

14,171

$

14,611

Past due loans 90 days and still accruing

-

-

-

21

93

Total nonperforming loans

$

18,322

$

18,183

$

18,306

$

14,192

$

14,704

Other real estate owned

-

-

-

-

-

Total nonperforming assets

$

18,322

$

18,183

$

18,306

$

14,192

$

14,704

Nonperforming loans to gross LHFI

1.07

%

1.12

%

1.13

%

0.91

%

0.96

%

Nonaccrual loans to total assets

0.76

%

0.77

%

0.79

%

0.63

%

0.66

%

Nonperforming assets to total assets

0.76

%

0.77

%

0.79

%

0.63

%

0.66

%

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)

2026

2026

2025

2025

2025

2026

2025

Allowance for credit losses on LHFI

Balance, beginning of period

$

18,826

$

18,743

$

18,028

$

17,497

$

17,104

$

18,743

$

17,118

Net charge-offs/(recoveries):

Commercial Loans

Acquisition, development and

construction

-

-

-

-

-

-

-

Income producing CRE

-

-

-

-

-

-

-

Owner-occupied CRE

-

-

-

-

-

-

-

Senior housing

-

-

-

-

-

-

-

Commercial and industrial

4

(6

)

(4

)

(29

)

19

(2

)

20

Retail Loans

Marine vessels

27

-

-

162

-

27

-

Residential mortgages

(2

)

-

(29

)

(2

)

(2

)

(2

)

(5

)

Cash value life insurance LOC

-

-

-

-

-

-

-

Other consumer

(4

)

47

20

(6

)

191

43

208

Total net charge-offs/(recoveries)

$

25

$

41

$

(13

)

$

125

$

208

$

66

$

223

Provision for loan credit losses

1,016

124

702

656

601

1,140

602

Balance, ending of period

$

19,817

$

18,826

$

18,743

$

18,028

$

17,497

$

19,817

$

17,497

Allowance for credit losses for unfunded commitments

Period beginning balance

$

4,214

$

3,956

$

3,496

$

3,499

$

3,348

$

3,956

$

2,720

Provision (recovery) for credit losses

(358

)

258

460

(3

)

151

(100

)

779

Period ending balance

$

3,856

$

4,214

$

3,956

$

3,496

$

3,499

$

3,856

$

3,499

Balance, end of period - Allowance for credit

losses: LHFI and unfunded commitments

$

23,673

$

23,040

$

22,699

$

21,524

$

20,996

$

23,673

$

20,996

Total loans held for investment

$

1,705,370

$

1,627,261

$

1,617,315

$

1,552,976

$

1,527,199

$

1,705,370

$

1,527,199

Credit Analysis

Net charge-offs to average LHFI

0.01

%

0.01

%

0.00

%

0.03

%

0.06

%

0.01

%

0.03

%

Total allowance for credit losses on LHFI to

total LHFI

1.16

%

1.16

%

1.16

%

1.16

%

1.15

%

1.16

%

1.15

%

Total allowance for credit losses on LHFI to

nonaccrual loans

108.16

%

103.54

%

102.39

%

127.22

%

119.75

%

108.16

%

119.75

%

Total allowance for credit losses on LHFI to

total nonperforming loans

108.16

%

103.54

%

102.39

%

127.03

%

118.99

%

108.16

%

118.99

%

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, 2026

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

Acquisition, development and

construction (1)

Pass

$

144,436

$

130,398

$

119,352

$

106,787

$

100,528

Special mention

-

-

-

-

-

Substandard

-

-

-

-

-

Total acquisition, development

and construction

$

144,436

$

130,398

$

119,352

$

106,787

$

100,528

Income producing CRE (1)

Pass

$

416,501

$

375,791

$

377,711

$

370,788

$

371,255

Special mention

-

-

-

-

-

Substandard

464

469

468

882

887

Total income producing CRE

$

416,965

$

376,260

$

378,179

$

371,670

$

372,142

Owner-occupied CRE (1)

Pass

$

116,429

$

97,706

$

82,959

$

86,533

$

81,244

Special mention

2,485

2,509

2,739

3,579

3,612

Substandard

8,371

7,129

7,089

6,175

6,291

Total owner-occupied CRE

$

127,285

$

107,344

$

92,787

$

96,287

$

91,147

Senior housing (1)

Pass

$

233,501

$

239,788

$

236,816

$

205,330

$

217,971

Special mention

-

3,940

11,934

12,006

12,078

Substandard

14,781

10,717

10,779

6,383

6,425

Total senior housing

$

248,282

$

254,445

$

259,529

$

223,719

$

236,474

Commercial and industrial (1)

Pass

$

135,851

$

135,295

$

141,020

$

128,468

$

124,979

Special mention

-

141

212

2,402

2,199

Substandard

3,462

3,528

4,148

4,169

4,538

Total commercial and industrial

$

139,313

$

138,964

$

145,380

$

135,039

$

131,716

Marine vessels (2)

Performing

$

313,230

$

307,746

$

312,096

$

318,246

$

301,327

Nonperforming

-

-

-

-

-

Total marine vessels

$

313,230

$

307,746

$

312,096

$

318,246

$

301,327

Residential mortgages (2)

Performing

$

202,380

$

202,114

$

199,601

$

190,059

$

185,162

Nonperforming

388

389

390

161

365

Total residential mortgages

$

202,768

$

202,503

$

199,991

$

190,220

$

185,527

Cash value life insurance LOC (2)

Performing

$

89,305

$

86,610

$

87,172

$

90,115

$

87,135

Nonperforming

-

-

-

-

-

Total cash value life insurance

LOC

$

89,305

$

86,610

$

87,172

$

90,115

$

87,135

Other consumer (2)

Performing

$

23,786

$

22,991

$

22,829

$

20,872

$

21,203

Nonperforming

-

-

-

21

-

Total other consumer

$

23,786

$

22,991

$

22,829

$

20,893

$

21,203

Gross loans held for investment

$

1,705,370

$

1,627,261

$

1,617,315

$

1,552,976

$

1,527,199

(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 common share, tangible common equity, tangible assets, adjusted nonperforming assets to total assets, adjusted nonperforming assets, pre-tax, pre-provision net revenue ("PPNR"), tangible common equity to tangible assets and core deposits 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, total common equity to total assets, and total deposits, 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.

13

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Non-GAAP Reconciliations

Tangible Book Value per Common Share / Tangible Common Equity to Tangible Assets (unaudited)

Table 10A

As of

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands, except per share data)

2026

2026

2025

2025

2025

Tangible Common Equity:

Total shareholders' equity

$

269,703

$

262,923

$

259,529

$

250,438

$

209,365

Less: Goodwill and intangibles

(6,246

)

(6,243

)

(6,262

)

(6,186

)

(6,190

)

Adjusted for: Mortgage servicing

rights

1,313

1,280

1,266

1,156

1,122

Tangible Common Equity

$

264,770

$

257,960

$

254,533

$

245,408

$

204,297

Common shares outstanding

12,003,040

11,985,414

11,980,412

11,978,921

10,278,921

Book value per common share

22.47

21.94

21.66

20.91

20.37

Tangible book value per common

share

22.06

21.52

21.25

20.49

19.88

Tangible assets:

Total assets

$

2,420,993

$

2,348,547

$

2,306,586

$

2,255,389

$

2,221,245

Less: Goodwill and intangibles

(6,246

)

(6,243

)

(6,262

)

(6,186

)

(6,190

)

Adjusted for: Mortgage servicing

rights

1,313

1,280

1,266

1,156

1,122

Tangible assets

$

2,416,060

$

2,343,584

$

2,301,590

$

2,250,359

$

2,216,177

Tangible common equity to

tangible assets

10.96

%

11.01

%

11.06

%

10.91

%

9.22

%

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)

2026

2026

2025

2025

2025

2026

2025

Net income

$

7,333

$

6,329

$

7,136

$

6,741

$

5,965

$

13,662

$

11,015

Average shareholders' equity

266,974

264,232

256,814

246,688

205,837

265,611

202,817

Return on average shareholders'

equity (1)

11.02

%

9.71

%

11.02

%

10.84

%

11.62

%

10.37

%

10.95

%

Average Tangible Common Equity:

Average shareholders' equity

$

266,974

$

264,232

$

256,814

$

246,688

$

205,837

$

265,611

$

202,817

Less: Average goodwill and

intangibles

(6,229

)

(6,270

)

(6,166

)

(6,176

)

(6,168

)

(6,250

)

(6,248

)

Adjusted for: Average mortgage

servicing rights

1,281

1,291

1,155

1,128

1,082

1,286

1,140

Average tangible common equity

$

262,026

$

259,253

$

251,803

$

241,640

$

200,751

$

260,647

$

197,709

Return on average tangible common (1)

equity

11.23

%

9.90

%

11.24

%

11.07

%

11.92

%

10.57

%

11.23

%

(1) Represents annualized data.

Adjusted Nonperforming Assets to Total Assets (unaudited)

Table 10C

As of

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2026

2026

2025

2025

2025

Total nonperforming assets

$

18,322

$

18,183

$

18,306

$

14,192

$

14,704

Total assets

2,420,993

2,348,547

2,306,586

2,255,389

2,221,245

GAAP-based nonperforming assets

to total assets

0.76

%

0.77

%

0.79

%

0.63

%

0.66

%

Total nonperforming assets

$

18,322

$

18,183

$

18,306

$

14,192

$

14,704

Adjusted for:

Guaranteed portions of nonaccrual

loans

3,542

3,657

4,089

4,457

4,583

Adjusted nonperforming assets

$

14,780

$

14,526

$

14,217

$

9,735

$

10,121

Total assets

$

2,420,993

$

2,348,547

$

2,306,586

$

2,255,389

$

2,221,245

Adjusted nonperforming assets to

total assets

0.61

%

0.62

%

0.62

%

0.43

%

0.46

%

14

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Non-GAAP Reconciliations

PPNR (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)

2026

2026

2025

2025

2025

2026

2025

Net income (GAAP-based)

$

7,333

$

6,329

$

7,136

$

6,741

$

5,965

$

13,662

$

11,015

Plus:

Income tax expense

1,502

1,956

1,598

2,040

1,064

3,458

2,606

Provision for credit losses

658

382

1,162

653

752

1,040

1,381

Pre-tax, pre-provision net revenue

$

9,493

$

8,667

$

9,896

$

9,434

$

7,781

$

18,160

$

15,002

Core Deposits (unaudited)

Table 10E

As of

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2026

2026

2025

2025

2025

Total Deposits

$

2,047,671

$

2,057,144

$

1,987,684

$

1,949,672

$

1,968,301

Less:

Brokered CDs

253,928

258,591

307,034

294,908

307,892

Core deposits (1)

$

1,793,743

$

1,798,553

$

1,680,650

$

1,654,764

$

1,660,409

(1) The Company defines its core deposits as total deposits, less brokered certificates of deposit.

15

EX-99.2

EX-99.2

Filename: coso-ex99_2.htm · Sequence: 3

CoastalSouth Bancshares, Inc. Third Quarter 2025 Investor Presentation October 20, 2025 July 20, 2026 Second Quarter 2026 Investor Presentation Exhibit 99.2

Disclosures Forward Looking Statements Statements in this Investor Presentation 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 Investor Presentation 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 Investor Presentation 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 sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s 2025 Annual Report on Form 10-K under the Securities Act of 1933, as amended, filed with the Securities and Exchange Commission (the “SEC”) on March 12, 2026 and in other documents that we file with the SEC from time to time, which are available on the SEC’s website, http://www.sec.gov. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this Investor Presentation 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 Investor Presentation are qualified in their entirety by this cautionary statement.

Disclosures Non-GAAP Financial Measures In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this Investor Presentation contains certain non-GAAP financial measures. The Company believes that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, performance trends and financial position. Our management uses these measures for internal planning and forecasting purposes and we believe that our presentation and discussion, together with the accompanying reconciliations, allows investors, security analysts and other interested parties to view our performance and the factors and trends affecting our business in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP measures and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure to evaluate the Company. Non-GAAP financial measures have inherent limitations, are not uniformly applied and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. The measures entitled return on average tangible common shareholders' equity, tangible book value per common share, tangible common equity, tangible assets, adjusted nonperforming assets to total assets, adjusted nonperforming assets, pre-tax pre-provision net revenue ("PPNR"), tangible common equity to tangible assets, core deposits and average core deposits 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, total common equity to total assets, and total deposits, respectively. The delivery of this Investor Presentation will not, under any circumstances, create an implication that there has been no change in the affairs of the Company since the date of this Investor Presentation. The Company is not making any implied or express representation or warranty as to the accuracy or completeness of the information summarized herein or made available in connection with any further investigation of the Company. The Company expressly disclaims any and all liability which may be based on such information, errors therein or omission therefrom.

Company Overview Total Assets $2.42 Billion Total Deposits $2.05 Billion Total Loans $1.93 Billion Tier 1 Leverage(1) 11.12% CET1(1) 12.30% # of Banking Offices 11 Best-in-class growth profile with 1-year CAGR for Total Loans of 23.4% and 1-year CAGR for TBV(2)/Share of 10.4% Strong risk management and unwavering focus on credit quality Established and efficient community banking franchise Diversified business lines Capital ratios are for Coastal States Bank, a wholly-owned subsidiary of CoastalSouth Bancshares, Inc.; preliminary. Non-GAAP financial measure; for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measure see the Appendix. CSB Strategic Expansion CSB Branch

Diluted EPS QoQ Annualized LHFI Growth Return on Average Tangible Common Equity(1) Return on Average Assets Net Interest Margin Quarterly Highlights: Q2 2026 Non-GAAP financial measure; for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measure see the Appendix. Billion in Total Assets Loan / Deposit Ratio QoQ TBV (1) per Share Annualized Growth Net Charge-Offs to Average LHFI Adj. Non-Performing Assets(1) / Total Assets $0.59 3.66% 10.06% $2.42 19.3% 94.18% 0.61% 11.23% 0.01% 1.24%

Loans Held for Investment Production $181.6 million in gross LHFI production for Q2 2026. As of June 30, 2026, these loans had a funded balance of $126.0 million and unfunded commitments of $53.9 million. Community Bank loan production was approximately 74% of total LHFI production for Q2 2026. The weighted average coupon for new production was 6.67% for Q2 2026, 42 bps higher than the weighted average yield of 6.25% for the LHFI portfolio for Q2 2026. The Company defines production as original loan commitment, which includes both funded and unfunded loan commitments. Specialty LOBs within this chart include Marine Lending, Senior Housing Lending, and Government Guaranteed Lending.

Loan Portfolio Loan portfolio is well diversified across loan types and geographies and managed by a seasoned team of bankers and credit officers. Conservative underwriting guidelines and loan structures help to mitigate risk. CRE and ADC concentrations were 238% and 56% at the end of Q2 2026, an increase from the prior quarter due to loan production but still well below regulatory guidelines. Non-owner-occupied office loans totaled $32.0 million or 1.88% of total LHFI at the end of the Q2 2026.  Average loan size is $1.6 million. For Q2 2026, there were no CRE charge-offs and CRE nonperforming loans were $14.3 million or 0.85% of total LHFI. Ratios are for Coastal States Bank. CRE Concentration ratio defined as Construction & Development, Multifamily, and Non-Owner Occupied CRE loans divided by Total Regulatory Capital. ADC concentration ratio is defined as Construction & Development loans divided by Total Regulatory Capital. Loan categories and total regulatory capital are determined using FFIEC call report guidelines. Ratios for the current quarter are preliminary. $1.9 B

Deposit Portfolio Reflects the effect of non-interest-bearing deposits. Non-GAAP financial measure; for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measure see the Appendix. Average total deposits increased $21.0 million compared to the prior quarter and increased $100.3 million compared to Q2 2025. Average core deposits(2) of $1.79 billion represented 88.0% of average total deposits at the end of Q2 2026. Average core deposits (2) increased $58.4 million from Q1 2026 to Q2 2026 and grew $114.2 million since Q4 2025. Interest-bearing deposit costs decreased 6 bps compared to Q1 2026 and 32 bps compared to Q2 2025.  Decrease in deposit cost driven by active deposit relationship management. Noninterest-bearing and interest-bearing transaction accounts were 26.5% of average total deposits during Q2 2026. MTD Average deposit balances sourced from Specialty Lines of Business totaled $55.2 million at the end of Q2 2026.

Capital *Q2 2026 regulatory capital ratios are preliminary. (1) Capital ratios presented are for Coastal States Bank. (2) Non-GAAP financial measure; for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measure see the Appendix. (3) Periods from Q3 2025 forward include the impact of COSO’s IPO. Share repurchase program launched May 1, 2026; 48,491 shares repurchased during Q2 with average price of $25.48. Paid quarterly dividend to shareholders in May 2026; declared a $0.05 quarterly dividend on July 20, 2026. Tier 1 leverage ratio decreased 9 bps to 11.12% as compared to Q1 2026; tangible common equity to tangible assets(2) decreased 5 bps to 10.96%, as compared to Q1 2026. AOCI improved by $1.3 million to $10.4 million due to improvement in securities valuation. Regulatory capital ratios remain strong, providing opportunities for additional balance sheet expansion. CAGR 11.0%

Net Interest Margin (1) Annualized Net interest income increased $1.0 million compared to Q1 2026 and increased $2.6 million compared to Q2 2025. Net interest margin improved during the quarter due primarily to decreased costs of deposits, namely DDA and time deposits. The benefit of the increase of core deposits and decrease of brokered CDs during Q1 2026 was realized in Q2 2026 as these lower cost deposits held steady.

Interest Rate Sensitivity (1) Cycle-to-date reflects changes since third quarter 2024 and incorporates the decrease in the average Fed Funds Effective Target rate. Note: NM – Not Meaningful The cycle-to-date (1) beta on total loans, compared to the average Fed Funds Effective Target rate was 29%.  The cycle-to-date (1) total deposit beta was 39%. Approximately 44.5% of variable rate structures of LHFI reprice within one quarter. Inclusive of fixed rate loans, approximately 53.9% of LHFI, or $916.9 million, are scheduled to reprice or mature in the next twelve months, of which $795.6 million, or 46.8%, are scheduled to reprice in the next 3 months. Effective deposit re-pricing practices, cycle-to-date, have helped stabilize and improve margins.

Noninterest Income Gain on sale of government guaranteed loans (“GGL”) was $307 thousand for Q2 2026 compared to $337 thousand in Q1 2026. QTD GGL loan production was $7.6 million. At the end of Q2 2026, there are approximately $8.0 million loans, including $6.7 million in multi-disbursement structures, that have been closed but have not been sold into the secondary market. The guaranteed portions of these loans may be saleable once fully funded. Sold $14.1 million of marine loans for a gain on sale of $230 thousand; reflected in other noninterest income. Other noninterest income revenue streams were stable compared to the prior quarter.

Noninterest Expense Salaries and benefits increased during the second quarter due to compensation accrual adjustments, the full impact of merit increases for a quarter, and investments in new bankers. The Company continues to focus on organic growth and expansion through banker recruitment across the franchise. Professional fees increased during the quarter due to increased corporate legal fees, offset by decreases in recruiting fees, loan workout legal costs, and consulting fees. Efficiency ratio improved 1.6% since Q1 2026 to 58.5%.

Credit Quality NPAs remain stable with approximately $10.9 million related to two senior housing loans, $5.7 million related to government guaranteed loans and $1.7 million related to other loan categories. The Company continues to pursue least-cost resolution strategies. Net charge-offs continue to be minimal. Higher risk loans, defined as special mention plus substandard accruing, were 68 bps, up 3 bps from Q1 2026.

Allowance for Credit Losses The coverage level of the Allowance for Credit Losses (“ACL”) has remained stable for the last 5 quarters. Changes in the provision for ACL are driven by the impact of net charge-offs, loan production volume and mix, individually assessed collateral dependent loan valuations, and other model factors, such as updated economic forecasts. The increase in reserves on individual loans was driven by one relationship. The Company carries an ACL on Loans for $19.8 million and an ACL for Unfunded Commitments of $3.9 million at June 30, 2026.

Appendix

Core Operating Principles We believe that by focusing on our five core values outlined below, we can create meaningful relationships between our Bank, team members, clients, and our communities Each of these relationships is critical to our financial success and supports our capacity to drive shareholder value. Key drivers of COSO’s success include: Unwavering commitment to hiring the best local bankers. Valuing our entrepreneurial culture and ensuring our daily actions are aligned with vision and values. Communicating clearly and candidly. Providing exceptional service and innovative solutions.

Business Evolution & Milestones Government Guaranteed Lending business; loans made through U.S. Small Business Administration (“SBA”) and United States Department of Agriculture (“USDA”) programs As of March 31, 2018 As of March 31, 2021 Early History & Recapitalization Expansion in Key Southeast MSAs Positioning for Future Growth Founded in August 2004 in Hilton Head Island, SC Opened Savannah, GA branch; completed $15 million subordinated debt offering Hired new management team (formerly of C&S) in conjunction with $62 million recapitalization; added GGL (1) & Senior Housing businesses Acquired First Citizens Financial Corporation ($95 million in assets (2)) Completed $20 million common offering 2004 2017 2018 2019 2020 Acquired Cornerstone Bancshares, Inc. ($229 million in assets (3)); opened Alpharetta, GA and Sandy Springs, GA branches Repositioned Mt. Paran branch to Akers Mill, GA; added Marine Lending business 2021 2022 Completed $9 million common offering 2023 Opened Beaufort, SC branch; completed $12 million common offering 2024 Joined NYSE on July 2, 2025 with Initial Public Offering of $50.3 million, including underwriters' options 2025 2026 Expanded into Charleston, SC with addition of commercial banking team

Specialty Lines of Business Note: There was no senior housing production in Q2 2026.

Specialty Lines of Business * Includes $0.4 million of loans classified as held for sale at March 31, 2026.

Non-GAAP Reconciliation Annualized data. Tangible Book Value per Share / Tangible Common Equity to Tangible Assets (unaudited)       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) 2026 2026 2025 2025 2025 2026 2025 Tangible Common Equity:                             Total shareholders' equity $ 269,703 $ 262,923 $ 259,529 $ 250,438 $ 209,365 $ 269,703 $ 209,365 Less: Goodwill and intangibles (6,246) (6,243) (6,262) (6,186) (6,190) (6,246) (6,190) Adjusted for: Mortgage servicing rights 1,313 1,280 1,266 1,156 1,122 1,313 1,122 Tangible Common Equity $ 264,770 $ 257,960 $ 254,533 $ 245,408 $ 204,297 $ 264,770 $ 204,297 Common shares outstanding 12,003,040 11,985,414 11,980,412 11,978,921 10,278,921 12,003,040 10,278,921 Book value per common share 22.47 21.94 21.66 20.91 20.37 22.47 20.37 Tangible book value per common share 22.06 21.52 21.25 20.49 19.88 22.06 19.88 Tangible assets: Total assets $ 2,420,993 $ 2,348,547 $ 2,306,586 $ 2,255,389 $ 2,221,245 $ 2,420,993 $ 2,221,245 Less: goodwill and intangibles (6,246) (6,243) (6,262) (6,186) (6,190) (6,246) (6,190) Adjusted for: Mortgage servicing rights 1,313 1,280 1,266 1,156 1,122 1,313 1,122 Tangible assets $ 2,416,060 $ 2,343,584 $ 2,301,590 $ 2,250,359 $ 2,216,177 $ 2,416,060 $ 2,216,177 Tangible common equity to tangible assets 10.96% 11.01% 11.06% 10.91% 9.22% 10.96% 9.22% ROATCE / Adjusted ROATCE (unaudited)                   As of and for the Three Months Ended As of and for the Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, (dollars in thousands) 2026 2026 2025 2025 2025 2026 2025 Net income $ 7,333 $ 6,329 $ 7,136 $ 6,741 $ 5,965 $ 13,662 $ 11,015 Average shareholders' equity 266,974 264,232 256,814 246,688 205,837 265,611 202,817 Return on average shareholders' equity (1) 11.02% 9.71% 11.02% 10.84% 11.62% 10.37% 10.95% Average Tangible Common Equity: Average shareholders' equity $ 266,974 $ 264,232 $ 256,814 $ 246,688 $ 205,837 $ 265,611 $ 202,817 Less: Average goodwill and intangibles (6,229) (6,270) (6,166) (6,176) (6,168) (6,250) (6,248) Adjusted for: Average mortgage  servicing rights 1,281 1,291 1,155 1,128 1,082 1,286 1,140 Average tangible common equity $ 262,026 $ 259,253 $ 251,803 $ 241,640 $ 200,751 $ 260,647 $ 197,709 Return on average tangible common (1) shareholders' equity 11.23% 9.90% 11.24% 11.07% 11.92% 10.57% 11.23%

Non-GAAP Reconciliation (cont.) The Company defines Core deposits as Total deposits less Brokered CDs. Adjusted Nonperforming Assets to Total Assets (unaudited)       As of and for the Three Months Ended As of and for the Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, (dollars in thousands) 2026 2026 2025 2025 2025 2026 2025 Total nonperforming assets $ 18,322 $ 18,183 $ 18,306 $ 14,192 $ 14,704 $ 18,322 $ 14,704 Total assets 2,420,993 2,348,547 2,306,586 2,255,389 2,221,245 2,420,993 2,221,245 GAAP-based nonperforming assets to total assets 0.76% 0.77% 0.79% 0.63% 0.66% 0.76% 0.66% Total nonperforming assets $ 18,322 $ 18,183 $ 18,306 $ 14,192 $ 14,704 $ 18,322 $ 14,704 Adjusted for: Guaranteed portions of nonaccrual loans 3,542 3,657 4,089 4,457 4,583 3,542 4,583 Adjusted total nonperforming assets $ 14,780 $ 14,526 $ 14,217 $ 9,735 $ 10,121 $ 14,780 $ 10,121 Total assets $ 2,420,993 $ 2,348,547 $ 2,306,586 $ 2,255,389 $ 2,221,245 $ 2,420,993 $ 2,221,245 Adjusted nonperforming assets to total assets 0.61% 0.62% 0.62% 0.43% 0.46% 0.61% 0.46% PPNR (unaudited)                       As of and for the Three Months Ended As of and for the Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, (dollars in thousands) 2026 2026 2025 2025 2025 2026 2025 Net income (GAAP-based) $ 7,333 $ 6,329 $ 7,136 $ 6,741 $ 5,965 $ 13,662 $ 11,015 Plus: Income tax expense 1,502 1,956 1,598 2,040 1,064 3,458 2,606 Provision (recovery) for credit losses 658 382 1,162 653 752 1,040 1,381 Pre-tax, pre-provision net revenue ("PPNR") $ 9,493 $ 8,667 $ 9,896 $ 9,434 $ 7,781 $ 18,160 $ 15,002 Core Deposits (unaudited)                       As of As of June 30, March 31, December 31, September 30, June 30, June 30, June 30, (dollars in thousands) 2026 2026 2025 2025 2025 2026 2025 Total deposits $ 2,047,671 $ 2,057,144 $ 1,987,684 $ 1,949,672 $ 1,968,301 $ 2,047,671 $ 1,968,301 Less: Brokered CDs 253,928 258,591 307,034 294,908 307,892 253,928 307,892 Core deposits (1) $ 1,793,743 $ 1,798,553 $ 1,680,650 $ 1,654,764 $ 1,660,409 $ 1,793,743 $ 1,660,409 Average Core Deposits (unaudited)                       As of As of June 30, March 31, December 31, September 30, June 30, June 30, June 30, (dollars in thousands) 2026 2026 2025 2025 2025 2026 2025 Average total deposits $ 2,032,671 $ 2,012,047 $ 1,981,724 $ 1,937,900 $ 1,932,745 $ 2,022,416 $ 1,896,694 Less: Average brokered CDs 243,992 281,752 307,213 291,011 286,852 262,768 282,351 Average core deposits (1) $ 1,788,679 $ 1,730,295 $ 1,674,511 $ 1,646,889 $ 1,645,893 $ 1,759,648 $ 1,614,343

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