# EDGAR Filing Document

**Accession Number:** 0001297107
**File Stem:** 0000950170-25-099173
**Filing Date:** 2025-7
**Character Count:** 80124
**Document Hash:** 767cc9da3ad3399843bcfc28aa9c39f3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-25-099173.hdr.sgml**: 20250728

**ACCESSION NUMBER**: 0000950170-25-099173

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 12

**CONFORMED PERIOD OF REPORT**: 20250728

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250728

**DATE AS OF CHANGE**: 20250728

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CoastalSouth Bancshares, Inc.
- **CENTRAL INDEX KEY:** 0001297107
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 571184730
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42730
- **FILM NUMBER:** 251155758

**BUSINESS ADDRESS:**
- **STREET 1:** 400 GALLERIA PKWY
- **STREET 2:** SUITE 1900
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30339
- **BUSINESS PHONE:** 678-396-4605

**MAIL ADDRESS:**
- **STREET 1:** 400 GALLERIA PKWY
- **STREET 2:** SUITE 1900
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30339

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Coastal South Bancshares Inc
- **DATE OF NAME CHANGE:** 20040713

?xml version='1.0' encoding='ASCII'? 8-K

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

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## **FORM** 8-K

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**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<br>

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COASTALSOUTH BANCSHARES, INC.

**(Exact name of Registrant as Specified in Its Charter)**

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---

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

---

**Registrant's Telephone Number, Including Area Code:** 678 396-4605<br>

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

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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:**

---

| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>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. ☐

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## **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**<br>**Number** | **Description** |
| 99.1 | [<u>CoastalSouth Bancshares, Inc. Earnings Release dated July 28, 2025</u>](coso-ex99_1.htm)\* |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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\* Filed herewith.

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

---

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## Exhibit 99.1

**EXHIBIT 99.1**

![img74696861_0.jpg](img74696861_0.jpg)

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:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Net income of $6.0 million or $0.57 per diluted share

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Return on average assets ("ROAA") of 1.09%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Return on average equity ("ROAE") of 11.62%; Return on average tangible common equity ("ROATCE") of 11.92% <sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Net interest margin of 3.46%, an increase of 8 basis points from the first quarter

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Book value per share growth of $0.70, or 14.2% annualized, to $20.37 at June 30, 2025; Tangible book value <sup>1</sup> per share growth of $0.71, or 14.9% annualized, to $19.88 at June 30, 2025 from the first quarter

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Total shareholders' equity to total assets of 9.43%, compared to 9.23% at March 31, 2025; Tangible common equity <sup>1</sup> to tangible assets <sup>1</sup> of 9.22%, compared to 9.01% at March 31, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Net charge-offs to average loans held for investment of 0.06%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Nonperforming assets to total assets of 0.66%; adjusted nonperforming assets to total assets <sup>1</sup> of 0.46%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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.

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

**1**

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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 assets<sup>2</sup>, 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.

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

---

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

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**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**

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Financial Highlights (unaudited)** | **Financial Highlights (unaudited)** | **Financial Highlights (unaudited)** |  |  |  |  |  |  |  |  |  |  | **Table 1A** | **Table 1A** |
|  | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** |
| <u>(dollars in thousands except</u> | **June 30,** | **June 30,** | **March 31,** | **March 31,** | **December 31,** | **December 31,** | **September 30,** | **September 30,** | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| <u>per share amounts)</u> | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2024** | **2024** |
| **Selected Operating Data:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | $— | 31793 | $— | 30024 | $— | 30537 | $— | 32554 | $— | 31170 | $— | 61817 | $— | 60558 |
| &nbsp;&nbsp;&nbsp;Interest expense |  | 13715 |  | 13265 |  | 14266 |  | 15588 |  | 14470 |  | 26980 |  | 28473 |
| &nbsp;&nbsp;&nbsp;Net interest income |  | 18078 |  | 16759 |  | 16271 |  | 16966 |  | 16700 |  | 34837 |  | 32085 |
| &nbsp;&nbsp;&nbsp;Provision (recovery) for credit losses |  | 752 |  | 629 |  | 1240 |  | (1023) |  | 173 |  | 1381 |  | 336 |
| &nbsp;&nbsp;&nbsp;Noninterest income (loss) |  | 1795 |  | 1881 |  | 1958 |  | 2961 |  | 1589 |  | 3676 |  | (405) |
| &nbsp;&nbsp;&nbsp;Noninterest expense |  | 12092 |  | 11419 |  | 10335 |  | 10830 |  | 10652 |  | 23511 |  | 20903 |
| &nbsp;&nbsp;&nbsp;Income tax expense |  | 1064 |  | 1542 |  | 950 |  | 2236 |  | 1577 |  | 2606 |  | 2125 |
| &nbsp;&nbsp;&nbsp;Net income |  | 5965 |  | 5050 |  | 5704 |  | 7884 |  | 5887 |  | 11015 |  | 8316 |
| &nbsp;&nbsp;&nbsp;Adjusted net income <sup>(1)</sup> |  | 5965 |  | 5050 |  | 5704 |  | 7884 |  | 5887 |  | 11015 |  | 10970 |
| **Share and Per Share Data:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic earnings per share | $— | 0.58 | $— | 0.49 | $— | 0.56 | $— | 0.77 | $— | 0.58 | $— | 1.07 | $— | 0.82 |
| &nbsp;&nbsp;&nbsp;Adjusted basic earnings<br> per share <sup>(1)</sup> | $— | 0.58 | $— | 0.49 | $— | 0.56 | $— | 0.77 | $— | 0.57 | $— | 1.07 | $— | 1.08 |
| &nbsp;&nbsp;&nbsp;Diluted earnings per share | $— | 0.57 | $— | 0.47 | $— | 0.54 | $— | 0.75 | $— | 0.56 | $— | 1.04 | $— | 0.80 |
| &nbsp;&nbsp;&nbsp;Adjusted diluted earnings<br> per share <sup>(1)</sup> | $— | 0.57 | $— | 0.47 | $— | 0.54 | $— | 0.75 | $— | 0.56 | $— | 1.04 | $— | 1.06 |
| &nbsp;&nbsp;&nbsp;Book value per share (at period end) | $— | 20.37 | $— | 19.67 | $— | 19.01 | $— | 18.86 | $— | 17.58 | $— | 20.37 | $— | 17.58 |
| &nbsp;&nbsp;&nbsp;Tangible book value per share <sup>(1)</sup> | $— | 19.88 | $— | 19.17 | $— | 18.51 | $— | 18.35 | $— | 17.07 | $— | 19.88 | $— | 17.07 |
| &nbsp;&nbsp;&nbsp;Shares of common stock outstanding |  | 10278921 |  | 10274271 |  | 10270146 |  | 10250446 |  | 10250446 |  | 10278921 |  | 10250446 |
| &nbsp;&nbsp;&nbsp;Weighted average diluted shares <br> outstanding |  | 10612255 |  | 10642078 |  | 10596364 |  | 10544087 |  | 10445144 |  | 10636997 |  | 10344815 |
| **Selected Balance Sheet Data:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total assets | $— | 2221245 | $— | 2190391 | $— | 2098712 | $— | 2129346 | $— | 2115547 | $— | 2221245 | $— | 2115547 |
| &nbsp;&nbsp;&nbsp;Securities available-for-sale, at<br> fair value <sup>(2)</sup> |  | 331760 |  | 325478 |  | 335267 |  | 355174 |  | 339937 |  | 331760 |  | 339937 |
| &nbsp;&nbsp;&nbsp;Gross loans held for investment |  | 1527199 |  | 1472232 |  | 1409443 |  | 1409913 |  | 1442077 |  | 1527199 |  | 1442077 |
| &nbsp;&nbsp;&nbsp;Loans held for sale |  | 209101 |  | 187481 |  | 174033 |  | 193938 |  | 154885 |  | 209101 |  | 154885 |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses |  | 17497 |  | 17104 |  | 17118 |  | 15615 |  | 16002 |  | 17497 |  | 16002 |
| &nbsp;&nbsp;&nbsp;Goodwill and other intangible assets |  | 6190 |  | 6199 |  | 6386 |  | 6451 |  | 6276 |  | 6190 |  | 6276 |
| &nbsp;&nbsp;&nbsp;Deposits |  | 1968301 |  | 1937693 |  | 1834802 |  | 1807315 |  | 1805590 |  | 1968301 |  | 1805590 |
| &nbsp;&nbsp;&nbsp;Other borrowings |  | 14753 |  | 20738 |  | 41725 |  | 96712 |  | 96699 |  | 14753 |  | 96699 |
| &nbsp;&nbsp;&nbsp;Total Shareholders' equity |  | 209365 |  | 202104 |  | 195232 |  | 193303 |  | 180168 |  | 209365 |  | 180168 |

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<sup>(1)</sup> Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10H.

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

**4**

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**COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY**

**FINANCIAL TABLES**

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Financial Highlights - continued (unaudited)** | **Financial Highlights - continued (unaudited)** | **Financial Highlights - continued (unaudited)** | **Financial Highlights - continued (unaudited)** | **Financial Highlights - continued (unaudited)** |  |  |  |  |  |  |  |  | **Table 1B** | **Table 1B** |
|  | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** |
|  | **June 30,** | **June 30,** | **March 31,** | **March 31,** | **December 31,** | **December 31,** | **September 30,** | **September 30,** | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| <u>(dollars in thousands)</u> | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2024** | **2024** |
| **Performance Ratios:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pre-tax pre-provision net revenue<br> (PPNR) <sup>(1)</sup> | $— | 7781 | $— | 7221 | $— | 7894 | $— | 9097 | $— | 7637 | $— | 15002 | $— | 10777 |
| &nbsp;&nbsp;&nbsp;Return on average assets (ROAA) <sup>(2)</sup> |  | 1.09% |  | 0.97% |  | 1.07% |  | 1.47% |  | 1.15% |  | 1.03% |  | 0.82% |
| &nbsp;&nbsp;&nbsp;Adjusted return on average assets <br> (Adj. ROAA) <sup>(1)(2)</sup> |  | 1.09 |  | 0.97 |  | 1.07 |  | 1.47 |  | 1.15 |  | 1.03 |  | 1.08 |
| &nbsp;&nbsp;&nbsp;Return on average equity <sup>(2)</sup> |  | 11.62 |  | 10.25 |  | 11.65 |  | 16.91 |  | 13.52 |  | 10.95 |  | 9.78 |
| &nbsp;&nbsp;&nbsp;Adjusted return on average equity <sup>(1)(2)</sup> |  | 11.62 |  | 10.25 |  | 11.65 |  | 16.91 |  | 13.52 |  | 10.95 |  | 12.90 |
| &nbsp;&nbsp;&nbsp;Return on average tangible common <br> equity (ROATCE) <sup>(1)(2)</sup> |  | 11.92 |  | 10.52 |  | 11.97 |  | 17.40 |  | 13.94 |  | 11.23 |  | 10.09 |
| &nbsp;&nbsp;&nbsp;Adjusted return on average tangible<br> common equity (Adj. ROATCE) <sup>(1)(2)</sup> |  | 11.92 |  | 10.52 |  | 11.97 |  | 17.40 |  | 13.94 |  | 11.23 |  | 13.31 |
| &nbsp;&nbsp;&nbsp;Net interest rate spread <sup>(2)</sup> |  | 2.76 |  | 2.67 |  | 2.42 |  | 2.48 |  | 2.58 |  | 2.72 |  | 2.51 |
| &nbsp;&nbsp;&nbsp;Net interest margin <sup>(2)</sup> |  | 3.46 |  | 3.38 |  | 3.21 |  | 3.32 |  | 3.43 |  | 3.42 |  | 3.32 |
| &nbsp;&nbsp;&nbsp;Efficiency ratio |  | 60.85 |  | 61.26 |  | 56.70 |  | 54.35 |  | 58.24 |  | 61.05 |  | 65.98 |
| &nbsp;&nbsp;&nbsp;Efficiency ratio, as adjusted <sup>(1)</sup> |  | 60.85 |  | 61.26 |  | 56.70 |  | 54.35 |  | 58.24 |  | 61.05 |  | 59.48 |
| &nbsp;&nbsp;&nbsp;Noninterest income to average total <br> assets <sup>(2)</sup> |  | 0.33 |  | 0.36 |  | 0.37 |  | 0.55 |  | 0.31 |  | 0.34 |  | (0.04) |
| &nbsp;&nbsp;&nbsp;Noninterest income to total revenue |  | 9.03 |  | 10.09 |  | 10.74 |  | 14.86 |  | 8.69 |  | 9.54 |  | (1.28) |
| &nbsp;&nbsp;&nbsp;Adjusted noninterest income to total<br> adjusted revenue <sup>(1)</sup> |  | 9.03 |  | 10.09 |  | 10.74 |  | 14.86 |  | 8.69 |  | 9.54 |  | 8.71 |
| &nbsp;&nbsp;&nbsp;Noninterest expense to average total assets <sup>(2)</sup> |  | 2.21 |  | 2.19 |  | 1.94 |  | 2.02 |  | 2.07 |  | 2.20 |  | 2.05 |
| &nbsp;&nbsp;&nbsp;Average interest-earning assets to average<br> interest-bearing liabilities |  | 126.50 |  | 126.31 |  | 127.90 |  | 127.59 |  | 128.29 |  | 126.41 |  | 127.65 |
| &nbsp;&nbsp;&nbsp;Average equity to average total assets |  | 9.37 |  | 9.46 |  | 9.20 |  | 8.70 |  | 8.48 |  | 9.41 |  | 8.34 |
| **Asset Quality Data:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net charge-offs to average LHFI <sup>(2)</sup> |  | 0.06% |  | 0.00% |  | (0.02)% |  | 0.02% |  | 0.03% |  | 0.03% |  | 0.01% |
| &nbsp;&nbsp;&nbsp;Net charge-offs to total average loans <sup>(2)</sup> |  | 0.05 |  | 0.00 |  | (0.02) |  | 0.02 |  | 0.03 |  | 0.03 |  | 0.01 |
| &nbsp;&nbsp;&nbsp;Total allowance for credit losses<br> to total LHFI |  | 1.15 |  | 1.16 |  | 1.21 |  | 1.11 |  | 1.11 |  | 1.15 |  | 1.11 |
| &nbsp;&nbsp;&nbsp;Total allowance for credit losses<br> to total loans |  | 1.01 |  | 1.03 |  | 1.08 |  | 0.97 |  | 1.00 |  | 1.01 |  | 1.00 |
| &nbsp;&nbsp;&nbsp;Total allowance for credit losses<br> to nonperforming loans |  | 118.99 |  | 117.11 |  | 114.07 |  | 184.64 |  | 182.13 |  | 118.99 |  | 182.13 |
| &nbsp;&nbsp;&nbsp;Nonperforming loans to gross LHFI |  | 0.96 |  | 0.99 |  | 1.06 |  | 0.60 |  | 0.61 |  | 0.96 |  | 0.61 |
| &nbsp;&nbsp;&nbsp;Nonperforming assets to total assets |  | 0.66 |  | 0.70 |  | 0.76 |  | 0.44 |  | 0.42 |  | 0.66 |  | 0.42 |
| &nbsp;&nbsp;&nbsp;Adjusted nonperforming assets to total<br> assets <sup>(1)</sup> |  | 0.46 |  | 0.49 |  | 0.53 |  | 0.21 |  | 0.18 |  | 0.46 |  | 0.18 |
| **Balance Sheet and Capital Ratios:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loan-to-deposit ratio |  | 88.21% |  | 85.65% |  | 86.30% |  | 88.74% |  | 88.45% |  | 88.21% |  | 88.45% |
| &nbsp;&nbsp;&nbsp;Noninterest bearing deposits to<br> total deposits |  | 15.92 |  | 15.52 |  | 16.51 |  | 17.28 |  | 19.10 |  | 15.92 |  | 19.10 |
| &nbsp;&nbsp;&nbsp;Total shareholders' equity to total assets |  | 9.43 |  | 9.23 |  | 9.30 |  | 9.08 |  | 8.52 |  | 9.43 |  | 8.52 |
| &nbsp;&nbsp;&nbsp;Tangible common equity to tangible<br> assets <sup>(1)</sup> |  | 9.22 |  | 9.01 |  | 9.08 |  | 8.86 |  | 8.29 |  | 9.22 |  | 8.29 |
| **Other:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Number of branches |  | 11 |  | 11 |  | 11 |  | 11 |  | 11 |  | 11 |  | 11 |
| &nbsp;&nbsp;&nbsp;Number of full-time equivalent<br>&nbsp;&nbsp;&nbsp;&nbsp;employees |  | 188 |  | 180 |  | 181 |  | 181 |  | 178 |  | 183 |  | 177 |

---

<sup>(1)</sup> Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10H.

<sup>(2)</sup> Represents annualized data.

------

**COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY**

**FINANCIAL TABLES**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Quarter End Balance Sheets (unaudited)** |  |  |  |  | **Table 2** |
|  | **June 30,** | **March 31,** | **December 31,** | **September 30,** | **June 30,** |
| <u>(dollars in thousands)</u> | **2025** | **2025** | **2024** | **2024** | **2024** |
| **Assets** |  |  |  |  |  |
| Cash and due from banks | $23245 | $19380 | $37320 | $17722 | $21385 |
| Federal funds sold | 20045 | 79153 | 30641 | 43602 | 42057 |
| Investment securities <sup>(1)</sup> | 338601 | 332312 | 342750 | 361935 | 346687 |
| Loans held for sale (LHFS) | 209101 | 187481 | 174033 | 193938 | 154885 |
| Loans held for investment (LHFI) | 1527199 | 1472232 | 1409443 | 1409913 | 1442077 |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses on LHFI | (17497) | (17104) | (17118) | (15615) | (16002) |
| Loans held for investment, net | 1509702 | 1455128 | 1392325 | 1394298 | 1426075 |
| Bank-owned life insurance | 47373 | 46924 | 46484 | 46044 | 45607 |
| Premises, furniture and equipment, net | 18166 | 17837 | 17796 | 17882 | 17533 |
| Deferred tax asset | 17211 | 17123 | 18148 | 16772 | 18641 |
| Goodwill & intangible assets <sup>(2)</sup> | 6190 | 6199 | 6386 | 6451 | 6276 |
| Other assets | 31611 | 28854 | 32829 | 30702 | 36401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**2221245** | $**2190391** | $**2098712** | $**2129346** | $**2115547** |
| **Liabilities and stockholders' equity** |  |  |  |  |  |
| **Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest bearing DDA | $313386 | $300678 | $302907 | $312290 | $344860 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest bearing DDA | 209816 | 191452 | 181068 | 183707 | 179557 |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings and money market | 628729 | 650050 | 591626 | 654192 | 658542 |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 816370 | 795513 | 759201 | 657126 | 622631 |
| &nbsp;&nbsp;&nbsp;Total deposits | 1968301 | 1937693 | 1834802 | 1807315 | 1805590 |
| &nbsp;&nbsp;&nbsp;Federal Home Loan Bank of <br> Atlanta advances | - | - | 15000 | - | - |
| &nbsp;&nbsp;&nbsp;Subordinated debt, net | 14753 | 14741 | 14730 | 14718 | 14706 |
| &nbsp;&nbsp;&nbsp;Revolving commercial line of credit, net | - | 5997 | 11995 | 11994 | 11993 |
| &nbsp;&nbsp;&nbsp;Federal Reserve Bank - Bank Term<br> Funding Program ("BTFP") advances | - | - | - | 70000 | 70000 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 28826 | 29856 | 26953 | 32016 | 33090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | **2011880** | **1988287** | **1903480** | **1936043** | **1935379** |
| **Stockholders' equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Voting common stock | 8107 | 8102 | 8098 | 8078 | 8078 |
| &nbsp;&nbsp;&nbsp;Nonvoting common stock | 2172 | 2172 | 2172 | 2172 | 2172 |
| &nbsp;&nbsp;&nbsp;Capital surplus | 159267 | 158997 | 158755 | 158463 | 158125 |
| &nbsp;&nbsp;&nbsp;Accumulated income | 53009 | 47044 | 41994 | 36290 | 28406 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (13190) | (14211) | (15787) | (11700) | (16613) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** | **209365** | **202104** | **195232** | **193303** | **180168** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $**2221245** | $**2190391** | $**2098712** | $**2129346** | $**2115547** |

---

<sup>(1)</sup> No ACL was recognized for the periods presented.

<sup>(2)</sup> Includes commercial mortgage servicing assets of $1.1 million, $1.1 million, $1.2 million, $1.3 million, and $1.0 million for June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.

------

**COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY**

**FINANCIAL TABLES**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Statements of Operations (unaudited)** |  |  |  |  |  |  | **Table 3** |
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **March 31,** | **December 31,** | **September 30,** | **June 30,** | **June 30,** | **June 30,** |
| <u>(dollars in thousands)</u> | **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 | 1045 | 842 | 1661 | 1836 |
| Interest and dividends on investment<br> securities | 3875 | 3800 | 3994 | 4171 | 4220 | 7675 | 7881 |
| Interest and fees on LHFS | 3296 | 2819 | 3404 | 2993 | 2335 | 6115 | 3875 |
| Interest and fees on LHFI | 23813 | 22307 | 22147 | 24214 | 23633 | 46120 | 46685 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 31793 | 30024 | 30537 | 32554 | 31170 | 61817 | 60558 |
| **Interest expense** |  |  |  |  |  |  |  |
| Deposits | 13251 | 12830 | 13498 | 14230 | 13122 | 26081 | 25715 |
| Other borrowings | 464 | 435 | 768 | 1358 | 1348 | 899 | 2758 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 13715 | 13265 | 14266 | 15588 | 14470 | 26980 | 28473 |
| Net interest income | 18078 | 16759 | 16271 | 16966 | 16700 | 34837 | 32085 |
| Provision (recovery) for credit losses | 752 | 629 | 1240 | (1023) | 173 | 1381 | 336 |
| Net interest income after provision for<br> credit losses | 17326 | 16130 | 15031 | 17989 | 16527 | 33456 | 31749 |
| **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<br> loans | 265 | - | 151 | 1312 | 35 | 265 | 355 |
| Losses on sale of available-for-sale<br> securities | - | - | - | - | - | - | (3465) |
| Other noninterest income | 283 | 743 | 536 | 513 | 340 | 1026 | 530 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income (loss) | 1795 | 1881 | 1958 | 2961 | 1589 | 3676 | (405) |
| **Noninterest expense** |  |  |  |  |  |  |  |
| Salaries and employee benefits | 6997 | 6694 | 6759 | 6727 | 6654 | 13691 | 12701 |
| Occupancy and equipment | 814 | 788 | 762 | 754 | 736 | 1602 | 1479 |
| Data processing | 653 | 624 | 605 | 548 | 534 | 1277 | 1060 |
| Other professional fees | 973 | 693 | 496 | 358 | 501 | 1666 | 1192 |
| Software and other technology expense | 719 | 703 | 774 | 671 | 631 | 1422 | 1297 |
| Regulatory assessment | 344 | 361 | 336 | 344 | 318 | 705 | 611 |
| Other noninterest expense | 1592 | 1556 | 603 | 1428 | 1278 | 3148 | 2563 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 12092 | 11419 | 10335 | 10830 | 10652 | 23511 | 20903 |
| Net income before taxes | 7029 | 6592 | 6654 | 10120 | 7464 | 13621 | 10441 |
| Income tax expense | 1064 | 1542 | 950 | 2236 | 1577 | 2606 | 2125 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net income** | $**5965** | $**5050** | $**5704** | $**7884** | $**5887** | $**11015** | $**8316** |

---

------

**COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY**

**FINANCIAL TABLES**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **QTD Average Balances and Yields/Rates (unaudited)** | **QTD Average Balances and Yields/Rates (unaudited)** | **QTD Average Balances and Yields/Rates (unaudited)** |  |  |  |  |  | **Table 4** | **Table 4** |
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
|  | **Average** |  | **Yield/** | **Average** |  | **Yield/** | **Average** |  | **Yield/** |
| <u>(dollars in thousands)</u> | **Balance** | **Interest** | **Rate** | **Balance** | **Interest** | **Rate** | **Balance** | **Interest** | **Rate** |
| **Earning assets:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks | $20762 | $111 | 2.14% | $22725 | $135 | 2.41% | $20839 | $140 | 2.70% |
| &nbsp;&nbsp;&nbsp;Federal funds sold | 62656 | 698 | 4.47% | 88478 | 963 | 4.41% | 60964 | 842 | 5.55% |
| &nbsp;&nbsp;&nbsp;Investment securities | 338635 | 3875 | 4.59% | 335254 | 3800 | 4.60% | 347194 | 4220 | 4.89% |
| &nbsp;&nbsp;&nbsp;Loans held for sale | 167617 | 3296 | 7.89% | 136849 | 2819 | 8.35% | 107604 | 2335 | 8.73% |
| &nbsp;&nbsp;&nbsp;Loans held for investment | 1506211 | 23813 | 6.34% | 1428405 | 22307 | 6.33% | 1424411 | 23633 | 6.67% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total earning assets | 2095881 | 31793 | 6.08% | 2011711 | 30024 | 6.05% | 1961012 | 31170 | 6.39% |
| **Noninterest-earning assets:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses on LHFI | (17110) |  |  | (17116) |  |  | (16163) |  |  |
| &nbsp;&nbsp;&nbsp;Bank-owned life insurance | 47119 |  |  | 46672 |  |  | 45360 |  |  |
| &nbsp;&nbsp;&nbsp;Premises, furniture and equipment, net | 18034 |  |  | 17851 |  |  | 17634 |  |  |
| &nbsp;&nbsp;&nbsp;Deferred tax asset | 17182 |  |  | 17803 |  |  | 19321 |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill & intangible assets | 6168 |  |  | 6328 |  |  | 6355 |  |  |
| &nbsp;&nbsp;&nbsp;Other assets | 29442 |  |  | 27947 |  |  | 31983 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest-earning assets | 100835 |  |  | 99485 |  |  | 104490 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2196716 |  |  | $2111196 |  |  | $2065502 |  |  |
| **Interest-bearing liabilities:** |  |  |  |  |  |  |  |  |  |
| Interest-bearing deposits | $1626415 | $13251 | 3.27% | $1566856 | $12830 | 3.32% | $1431853 | $13122 | 3.69% |
| Federal Reserve Bank - BTFP | - | - | 0.00% | - | - | 0.00% | 70000 | 854 | 4.91% |
| Federal funds purchased | 38 | 1 | 10.56% | - | - | 0.00% | - | - | 0.00% |
| Federal Home Loan Bank of <br> Atlanta advances | 10000 | 116 | 4.65% | 1166 | 13 | 4.52% | - | - | 0.00% |
| Revolving commercial line of credit, net | 5667 | 112 | 7.93% | 9863 | 187 | 7.69% | 11992 | 259 | 8.69% |
| Subordinated debt, net | 14747 | 235 | 6.39% | 14735 | 235 | 6.47% | 14700 | 235 | 6.43% |
| &nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 1656867 | 13715 | 3.32% | 1592620 | 13265 | 3.38% | 1528545 | 14470 | 3.81% |
| **Noninterest-bearing liabilities:** |  |  |  |  |  |  |  |  |  |
| Noninterest-bearing deposits | 306330 |  |  | 293387 |  |  | 333001 |  |  |
| Other liabilities | 27682 |  |  | 25426 |  |  | 28825 |  |  |
| &nbsp;&nbsp;&nbsp;Total noninterest-bearing liabilities | 334012 |  |  | 318813 |  |  | 361826 |  |  |
| &nbsp;&nbsp;&nbsp;Stockholders' equity | 205837 |  |  | 199763 |  |  | 175131 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $2196716 |  |  | $2111196 |  |  | $2065502 |  |  |
| Net interest income |  | $18078 |  |  | $16759 |  |  | $16700 |  |
| Net interest spread |  |  | 2.76% |  |  | 2.67% |  |  | 2.58% |
| Net interest margin |  |  | 3.46% |  |  | 3.38% |  |  | 3.43% |
| Cost of total deposits <sup>(1)</sup> |  |  | 2.75% |  |  | 2.80% |  |  | 2.99% |
| Cost of total funding <sup>(1)</sup> |  |  | 2.80% |  |  | 2.85% |  |  | 3.13% |

---

<sup>(1)</sup> Includes noninterest bearing deposits.

------

**COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY**

**FINANCIAL TABLES**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **YTD Average Balances and Yields/Rates (unaudited)** | **YTD Average Balances and Yields/Rates (unaudited)** | **YTD Average Balances and Yields/Rates (unaudited)** |  |  |  | **Table 5** |
|  | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
|  | **Average** |  | **Yield/** | **Average** |  | **Yield/** |
| <u>(dollars in thousands)</u> | **Balance** | **Interest** | **Rate** | **Balance** | **Interest** | **Rate** |
| **Earning assets:** |  |  |  |  |  |  |
| &nbsp;&nbsp;Cash and due from banks | $21738 | $246 | 2.28% | $20987 | $281 | 2.69% |
| &nbsp;&nbsp;Federal funds sold | 75496 | 1661 | 4.44% | 65259 | 1836 | 5.66% |
| &nbsp;&nbsp;Investment securities | 336954 | 7675 | 4.59% | 350865 | 7881 | 4.52% |
| &nbsp;&nbsp;Loans held for sale | 152318 | 6115 | 8.10% | 89422 | 3875 | 8.71% |
| &nbsp;&nbsp;Loans held for investment | 1467523 | 46120 | 6.34% | 1416431 | 46685 | 6.63% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total earning assets | 2054029 | 61817 | 6.07% | 1942964 | 60558 | 6.27% |
| **Noninterest-earning assets:** |  |  |  |  |  |  |
| &nbsp;&nbsp;Allowance for credit losses on LHFI | (17113) |  |  | (15908) |  |  |
| &nbsp;&nbsp;Bank-owned life insurance | 46897 |  |  | 45168 |  |  |
| &nbsp;&nbsp;Premises, furniture and equipment, net | 17943 |  |  | 17647 |  |  |
| &nbsp;&nbsp;Deferred tax asset | 17491 |  |  | 20235 |  |  |
| &nbsp;&nbsp;Goodwill & intangible assets | 6248 |  |  | 6400 |  |  |
| &nbsp;&nbsp;Other assets | 29582 |  |  | 33677 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest-earning assets | 101048 |  |  | 107219 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2155077 |  |  | $2050183 |  |  |
| **Interest-bearing liabilities:** |  |  |  |  |  |  |
| Interest-bearing deposits | $1596799 | $26081 | 3.29% | $1424505 | $25715 | 3.63% |
| Federal Reserve Bank - BTFP | - | - | 0.00% | 66539 | 1622 | 4.90% |
| Federal funds purchased | 19 | 1 | 10.61% | - | - | 0.00% |
| Federal Home Loan Bank of <br> Atlanta advances | 5607 | 128 | 4.60% | 2747 | 77 | 5.64% |
| Revolving commercial line of credit, net | 7754 | 300 | 7.80% | 13574 | 589 | 8.73% |
| Subordinated debt, net | 14741 | 470 | 6.43% | 14694 | 470 | 6.43% |
| &nbsp;&nbsp;Total interest-bearing liabilities | 1624920 | 26980 | 3.35% | 1522059 | 28473 | 3.76% |
| **Noninterest-bearing liabilities:** |  |  |  |  |  |  |
| Noninterest bearing deposits | 299895 |  |  | 327210 |  |  |
| Other liabilities | 27445 |  |  | 29841 |  |  |
| &nbsp;&nbsp;Total noninterest-bearing liabilities | 327340 |  |  | 357051 |  |  |
| &nbsp;&nbsp;Stockholders' equity | 202817 |  |  | 171073 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $2155077 |  |  | $2050183 |  |  |
| Net interest income |  | $34837 |  |  | $32085 |  |
| Net interest spread |  |  | 2.72% |  |  | 2.51% |
| Net interest margin |  |  | 3.42% |  |  | 3.32% |
| Cost of total deposits <sup>(1)</sup> |  |  | 2.77% |  |  | 2.95% |
| Cost of total funding <sup>(1)</sup> |  |  | 2.83% |  |  | 3.10% |

---

<sup>(1)</sup> Includes noninterest bearing deposits.

------

**COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY**

**FINANCIAL TABLES**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Loan Data (unaudited)** |  |  |  |  |  |  |  |  | **Table 6** | **Table 6** |
|  | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** |
|  | **June 30, 2025** | **June 30, 2025** | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** | **September 30, 2024** | **September 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| <u>(dollars in thousands)</u> | **Amount** | **% of Total** | **Amount** | **% of Total** | **Amount** | **% of Total** | **Amount** | **% of Total** | **Amount** | **% of Total** |
| **Loans held for investment ("LHFI"):** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;**Commercial Loans** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition, development and<br> construction | $100528 | 6.6% | $76453 | 5.2% | $72520 | 5.2% | $112275 | 8.0% | $109855 | 7.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Income producing CRE | 372142 | 24.4 | 352693 | 24.0 | 321558 | 22.8 | 267551 | 19.0 | 272397 | 18.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Owner-occupied CRE | 91147 | 6.0 | 90204 | 6.1 | 94573 | 6.7 | 95789 | 6.8 | 100272 | 7.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Senior housing | 236474 | 15.5 | 245292 | 16.7 | 234081 | 16.6 | 231260 | 16.4 | 245591 | 17.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial | 131716 | 8.6 | 145784 | 9.8 | 141626 | 10.0 | 140290 | 10.0 | 137571 | 9.5 |
| &nbsp;&nbsp;**Retail Loans** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Marine vessels | 301327 | 19.7 | 284305 | 19.3 | 263657 | 18.6 | 279689 | 19.8 | 288949 | 20.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgages | 185527 | 12.1 | 176794 | 12.0 | 174099 | 12.4 | 173392 | 12.3 | 172505 | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash value life insurance LOC | 87135 | 5.7 | 80503 | 5.5 | 86844 | 6.2 | 87968 | 6.2 | 93657 | 6.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other consumer | 21203 | 1.4 | 20204 | 1.4 | 20485 | 1.5 | 21699 | 1.5 | 21280 | 1.5 |
| &nbsp;&nbsp;&nbsp;Gross loans held for investment | $1527199 | 100.0% | $1472232 | 100.0% | $1409443 | 100.0% | $1409913 | 100.0% | $1442077 | 100.0% |
| &nbsp;&nbsp;&nbsp;Core LHFI | 1464200 |  | 1406199 |  | 1342073 |  | 1341135 |  | 1369629 |  |
| &nbsp;&nbsp;&nbsp;Acquired LHFI <sup>(1)</sup> | 62999 |  | 66033 |  | 67370 |  | 68778 |  | 72448 |  |
| &nbsp;&nbsp;&nbsp;Gross loans held for investment | $1527199 |  | $1472232 |  | $1409443 |  | $1409913 |  | $1442077 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses on LHFI | 17497 |  | 17104 |  | 17118 |  | 15615 |  | 16002 |  |
| &nbsp;&nbsp;&nbsp;Net loans held for investment | $1509702 |  | $1455128 |  | $1392325 |  | $1394298 |  | $1426075 |  |
| &nbsp;&nbsp;&nbsp;Total loans held-for-sale | 209101 |  | 187481 |  | 174033 |  | 193938 |  | 154885 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Loans | $1736300 |  | $1659713 |  | $1583476 |  | $1603851 |  | $1596962 |  |

---

<sup>(1)</sup> Includes loans acquired through business combinations.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Nonperforming Assets (unaudited)** | **Nonperforming Assets (unaudited)** | **Nonperforming Assets (unaudited)** | **Nonperforming Assets (unaudited)** | **Nonperforming Assets (unaudited)** | **Table 7** |
|  | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** |
| <u>(dollars in thousands)</u> | **June 30, 2025** | **March 31, 2025** | **December 31, 2024** | **September 30, 2024** | **June 30, 2024** |
| &nbsp;&nbsp;&nbsp;Nonaccrual loans | $14611 | $14599 | $14957 | $8408 | $8739 |
| &nbsp;&nbsp;&nbsp;Past due loans 90 days and still accruing | 93 | 6 | 49 | 49 | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming loans | $14704 | $14605 | $15006 | $8457 | $8786 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other real estate owned | - | 765 | 864 | 864 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming assets | $14704 | $15370 | $15870 | $9321 | $8786 |
| &nbsp;&nbsp;&nbsp;Nonperforming loans to gross LHFI | 0.96% | 0.99% | 1.06% | 0.60% | 0.61% |
| &nbsp;&nbsp;&nbsp;Nonaccrual loans to total assets | 0.66% | 0.67% | 0.71% | 0.39% | 0.41% |
| &nbsp;&nbsp;&nbsp;Nonperforming assets to total assets | 0.66% | 0.70% | 0.76% | 0.44% | 0.42% |

---

------

**COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY**

**FINANCIAL TABLES**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Allowance for Credit Losses (unaudited)** |  |  |  |  |  |  | **Table 8** |
|  | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** |
|  | **June 30,** | **March 31,** | **December 31,** | **September 30,** | **June 30,** | **June 30,** | **June 30,** |
| <u>(dollars in thousands)</u> | **2025** | **2025** | **2024** | **2024** | **2024** | **2025** | **2024** |
| **Allowance for credit losses on LHFI** | **Allowance for credit losses on LHFI** |  |  |  |  |  |  |
| Balance, beginning of period | $17104 | $17118 | $15615 | $16002 | $15774 | $17118 | $15465 |
| &nbsp;&nbsp;Net charge-offs/(recoveries): |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Commercial Loans** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition, development and<br> construction | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Income producing CRE | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Owner-occupied CRE | - | - | (53) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Senior housing | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial | 19 | 1 | 3 | 30 | 54 | 20 | 49 |
| &nbsp;&nbsp;&nbsp;**Retail Loans** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Marine vessels | - | - | - | 36 | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgages | (3) | (2) | (2) | (7) | (3) | (5) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash value life insurance LOC | - | - | - | - | 47 | - | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other consumer | 192 | 16 | (25) | 27 | (2) | 208 | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net charge-offs/(recoveries) | $208 | $15 | $(77) | $86 | $96 | $223 | $87 |
| Provision (recovery) for loan credit losses | 601 | 1 | 1426 | (301) | 324 | 602 | 624 |
| Balance, ending of period | $17497 | $17104 | $17118 | $15615 | $16002 | $17497 | $16002 |
| **Allowance for credit losses for unfunded commitments** | **Allowance for credit losses for unfunded commitments** |  |  |  |  |  |  |
| Period beginning balance | $3348 | $2720 | $2906 | $3628 | $3779 | $2720 | $3916 |
| Provision (recapture) for credit losses | 151 | 628 | (186) | (722) | (151) | 779 | (288) |
| Period ending balance | $3499 | $3348 | $2720 | $2906 | $3628 | $3499 | $3628 |
| Balance, end of period - Allowance for credit<br> losses: LHFI and unfunded commitments | $20996 | $20452 | $19838 | $18521 | $19630 | $20996 | $19630 |
| Total loans held for investment | $1527199 | $1472232 | $1409443 | $1409913 | $1442077 | $1527199 | $1442077 |
| **Credit Analysis** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Net charge-offs to average LHFI | 0.06% | 0.00% | (0.02)% | 0.02% | 0.03% | 0.03% | 0.01% |
| &nbsp;&nbsp;Total allowance for credit losses on LHFI to<br>&nbsp;&nbsp;&nbsp;&nbsp;total LHFI | 1.15% | 1.16% | 1.21% | 1.11% | 1.11% | 1.15% | 1.11% |
| &nbsp;&nbsp;Total allowance for credit losses on LHFI to<br>&nbsp;&nbsp;&nbsp;&nbsp;nonaccrual loans | 119.75% | 117.16% | 114.45% | 185.72% | 183.11% | 119.75% | 183.11% |
| &nbsp;&nbsp;Total allowance for credit losses on LHFI to<br>&nbsp;&nbsp;&nbsp;&nbsp;total nonperforming loans | 118.99% | 117.11% | 114.07% | 184.64% | 182.13% | 118.99% | 182.13% |

---

------

**COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY**

**FINANCIAL TABLES**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Loan Risk Ratings** <sup>(1) (2)</sup> **(unaudited)** |  |  |  |  | **Table 9** |
|  | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** | **As of the Quarter Ended** |
| <u>(dollars in thousands)</u> | **June 30, 2025** | **March 31, 2025** | **December 31, 2024** | **September 30, 2024** | **June 30, 2024** |
| **Acquisition, development and<br> construction** <sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $100528 | $76453 | $72520 | $112275 | $109855 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special mention | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total acquisition, development<br> and construction | $100528 | $76453 | $72520 | $112275 | $109855 |
| **Income producing CRE** <sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $371255 | $352281 | $321146 | $262287 | $267107 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special mention | - | - | - | 4852 | 4878 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | 887 | 412 | 412 | 412 | 412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total income producing | $372142 | $352693 | $321558 | $267551 | $272397 |
| **Owner-occupied CRE** <sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $81244 | $83711 | $87906 | $89133 | $92591 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special mention | 3612 | - | - | 1838 | 1847 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | 6291 | 6493 | 6667 | 4818 | 5834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total owner occupied | $91147 | $90204 | $94573 | $95789 | $100272 |
| **Senior housing** <sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $217971 | $208922 | $190084 | $184178 | $211780 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special mention | 12078 | 24814 | 25025 | 17493 | 17667 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | 6425 | 11556 | 18972 | 29589 | 16144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total senior housing | $236474 | $245292 | $234081 | $231260 | $245591 |
| **Commercial and industrial** <sup>(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $124979 | $141202 | $136878 | $135476 | $132707 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special mention | 2199 | - | 36 | 189 | 191 |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | 4538 | 4582 | 4712 | 4625 | 4673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-real estate | $131716 | $145784 | $141626 | $140290 | $137571 |
| **Marine vessels** <sup>(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing | $301327 | $284305 | $263657 | $279689 | $288949 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total marine vessels | $301327 | $284305 | $263657 | $279689 | $288949 |
| **Residential mortgages** <sup>(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing | $185162 | $176633 | $173834 | $173122 | $172104 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | 365 | 161 | 265 | 270 | 401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total residential mortgages | $185527 | $176794 | $174099 | $173392 | $172505 |
| **Cash value life insurance LOC** <sup>(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing | $87135 | $80503 | $86844 | $87968 | $93655 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | - | - | - | - | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash value life insurance<br>&nbsp;&nbsp;&nbsp;&nbsp; LOC | $87135 | $80503 | $86844 | $87968 | $93657 |
| **Other consumer** <sup>(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing | $21203 | $20204 | $20442 | $21699 | $21252 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming | - | - | 43 | - | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other consumer | $21203 | $20204 | $20485 | $21699 | $21280 |
| &nbsp;&nbsp;&nbsp;Gross loans held for investment | $1527199 | $1472232 | $1409443 | $1409913 | $1442077 |

---

<sup>(1)</sup> There were no commercial loans classified as doubtful.

<sup>(2)</sup> Retail loans are classified as either performing or nonperforming.

------

**Non-GAAP Financial Measures**

The measures entitled return on average tangible common equity, tangible book value per share, tangible common equity, tangible assets, adjusted nonperforming assets to total assets, adjusted nonperforming assets, adjusted net income, adjusted basic earnings per share, adjusted diluted earnings per share, pre-tax, pre-provision net revenue, adjusted return on average assets, adjusted return on average equity, efficiency ratio, as adjusted, adjusted return on average tangible common equity, adjusted noninterest income to total revenue, and tangible common equity to tangible assets are not measures recognized under accounting principles generally accepted in the United States of America ("GAAP") and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are return on average shareholders' equity, book value per share, total shareholders' equity, total assets, total nonperforming assets to total assets, total nonperforming assets, net income, basic earnings per share, diluted earnings per share, net income, return on average assets, return on average equity, the efficiency ratio, return on average equity, noninterest income to total revenue, total common equity to total assets, respectively.

Management believes that 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.

------

**COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY**

**FINANCIAL TABLES**

**Non-GAAP Reconciliations**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Tangible Book Value per Share / Tangible Common Equity to Tangible Assets (unaudited)** | **Tangible Book Value per Share / Tangible Common Equity to Tangible Assets (unaudited)** | **Tangible Book Value per Share / Tangible Common Equity to Tangible Assets (unaudited)** | **Tangible Book Value per Share / Tangible Common Equity to Tangible Assets (unaudited)** | **Tangible Book Value per Share / Tangible Common Equity to Tangible Assets (unaudited)** | **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 Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** |
|  | **June 30,** | **March 31,** | **December 31,** | **September 30,** | **June 30,** | **June 30,** | **June 30,** |
| <u>(dollars in thousands, except per share data)</u> | **2025** | **2025** | **2024** | **2024** | **2024** | **2025** | **2024** |
| **Tangible Common Equity:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total shareholders' equity | $209365 | $202104 | $195232 | $193303 | $180168 | $209365 | $180168 |
| &nbsp;&nbsp;&nbsp;Less: Goodwill and intangibles | (6190) | (6199) | (6386) | (6451) | (6276) | (6190) | (6276) |
| &nbsp;&nbsp;&nbsp; Adjusted for: Mortgage servicing<br>&nbsp;&nbsp;&nbsp;&nbsp; rights | 1122 | 1093 | 1237 | 1258 | 1037 | 1122 | 1037 |
| **Tangible Common Equity** | $204297 | $196998 | $190083 | $188110 | $174929 | $204297 | $174929 |
| &nbsp;&nbsp;&nbsp;Common shares outstanding | 10278921 | 10274271 | 10270146 | 10250446 | 10250446 | 10278921 | 10250446 |
| &nbsp;&nbsp;&nbsp;Book value per common share | 20.37 | 19.67 | 19.01 | 18.86 | 17.58 | 20.37 | 17.58 |
| &nbsp;&nbsp;&nbsp;Tangible book value per common <br> share | 19.88 | 19.17 | 18.51 | 18.35 | 17.07 | 19.88 | 17.07 |
| **Tangible assets:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total assets | $2221245 | $2190391 | $2098712 | $2129346 | $2115547 | $2221245 | $2115547 |
| &nbsp;&nbsp;&nbsp;Less: goodwill and intangibles | (6190) | (6199) | (6386) | (6451) | (6276) | (6190) | (6276) |
| &nbsp;&nbsp;&nbsp; Adjusted for: Mortgage servicing<br>&nbsp;&nbsp;&nbsp;&nbsp;rights | 1122 | 1093 | 1237 | 1258 | 1037 | 1122 | 1037 |
| **Tangible assets** | $2216177 | $2185285 | $2093563 | $2124153 | $2110308 | $2216177 | $2110308 |
| **Tangible common equity to<br> tangible assets** | 9.22% | 9.01% | 9.08% | 8.86% | 8.29% | 9.22% | 8.29% |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **ROATCE / Adjusted ROATCE (unaudited)** | **ROATCE / Adjusted ROATCE (unaudited)** | **ROATCE / Adjusted ROATCE (unaudited)** |  |  |  |  | **Table 10B** |
|  | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** |
|  | **June 30,** | **March 31,** | **December 31,** | **September 30,** | **June 30,** | **June 30,** | **June 30,** |
| <u>(dollars in thousands)</u> | **2025** | **2025** | **2024** | **2024** | **2024** | **2025** | **2024** |
| Net income | $5965 | $5050 | $5704 | $7884 | $5887 | $11015 | $8316 |
| Average shareholders' equity | 205837 | 199763 | 194724 | 185434 | 175131 | 202817 | 171073 |
| Return on average shareholders'<br> equity <sup>(1)</sup> | 11.62% | 10.25% | 11.65% | 16.91% | 13.52% | 10.95% | 9.78% |
| **Average Tangible Common Equity:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Average shareholders' equity | $205837 | $199763 | $194724 | $185434 | $175131 | $202817 | $171073 |
| &nbsp;&nbsp;&nbsp;Less: Average goodwill and<br>&nbsp;&nbsp;&nbsp;&nbsp;intangibles | (6168) | (6328) | (6432) | (6257) | (6355) | (6248) | (6400) |
| &nbsp;&nbsp;&nbsp; Adjusted for: Average mortgage <br>&nbsp;&nbsp;&nbsp;&nbsp;servicing rights | 1082 | 1198 | 1263 | 1041 | 1094 | 1140 | 1114 |
| **Average tangible common equity** | $200751 | $194633 | $189555 | $180218 | $169870 | $197709 | $165787 |
| **Return on average tangible common** <sup>(1)</sup>**<br> shareholders' equity** | 11.92% | 10.52% | 11.97% | 17.40% | 13.94% | 11.23% | 10.09% |
| Net income | $5965 | $5050 | $5704 | $7884 | $5887 | $11015 | $8316 |
| &nbsp;&nbsp;&nbsp;Adjusted for: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of AFS <br> securities, net of tax <sup>(2)</sup> | - | - | - | - | - | - | 2654 |
| Adjusted net income | $5965 | $5050 | $5704 | $7884 | $5887 | $11015 | $10970 |
| Average tangible common equity | $200751 | $194633 | $189555 | $180218 | $169870 | $197709 | $165787 |
| Adjusted return on average tangible<br> common equity <sup>(1)</sup> | 11.92% | 10.52% | 11.97% | 17.40% | 13.94% | 11.23% | 13.31% |

---

<sup>(1)</sup> Represents annualized data.

<sup>(2)</sup> 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)** | **Efficiency Ratio, as Adjusted / Noninterest Income to Total Revenue (unaudited)** | **Efficiency Ratio, as Adjusted / Noninterest Income to Total Revenue (unaudited)** | **Efficiency Ratio, as Adjusted / Noninterest Income to Total Revenue (unaudited)** | **Efficiency Ratio, as Adjusted / Noninterest Income to Total Revenue (unaudited)** | **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 Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** |
|  | **June 30,** | **March 31,** | **December 31,** | **September 30,** | **June 30,** | **June 30,** | **June 30,** |
| <u>(dollars in thousands)</u> | **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% |
| &nbsp;&nbsp;&nbsp;Net interest income | $18078 | $16759 | $16271 | $16966 | $16700 | $34837 | $32085 |
| &nbsp;&nbsp;&nbsp;Noninterest income (loss) | 1795 | 1881 | 1958 | 2961 | 1589 | 3676 | (405) |
| &nbsp;&nbsp;&nbsp;Adjusted for: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of AFS<br> securities <sup>(1)</sup> | - | - | - | - | - | - | 3465 |
| &nbsp;&nbsp;&nbsp;Adjusted revenue | $19873 | $18640 | $18229 | $19927 | $18289 | $38513 | $35145 |
| &nbsp;&nbsp;&nbsp;Total noninterest expense | 12092 | 11419 | 10335 | 10830 | 10652 | 23511 | 20903 |
| &nbsp;&nbsp;&nbsp;Adjusted noninterest expense | $12092 | $11419 | $10335 | $10830 | $10652 | $23511 | $20903 |
| &nbsp;&nbsp;&nbsp;Efficiency ratio, as adjusted | 60.85% | 61.26% | 56.70% | 54.35% | 58.24% | 61.05% | 59.48% |
| &nbsp;&nbsp;&nbsp;Noninterest income to total revenue | 9.03% | 10.09% | 10.74% | 14.86% | 8.69% | 9.54% | -1.28% |
| &nbsp;&nbsp;&nbsp;Adjusted noninterest income to<br> total adjusted revenue | 9.03% | 10.09% | 10.74% | 14.86% | 8.69% | 9.54% | 8.71% |

---

<sup>(1)</sup> 2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Adjusted Net Income / Adjusted Return on Average Assets (unaudited)** | **Adjusted Net Income / Adjusted Return on Average Assets (unaudited)** | **Adjusted Net Income / Adjusted Return on Average Assets (unaudited)** | **Adjusted Net Income / Adjusted Return on Average Assets (unaudited)** | **Adjusted Net Income / Adjusted Return on Average Assets (unaudited)** | **Adjusted Net Income / Adjusted Return on Average Assets (unaudited)** |  | **Table 10D** |
|  | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** |
|  | **June 30,** | **March 31,** | **December 31,** | **September 30,** | **June 30,** | **June 30,** | **June 30,** |
| <u>(dollars in thousands)</u> | **2025** | **2025** | **2024** | **2024** | **2024** | **2025** | **2024** |
| Net income | $5965 | $5050 | $5704 | $7884 | $5887 | $11015 | $8316 |
| Average assets | 2196716 | 2111196 | 2117357 | 2130485 | 2065502 | 2155077 | 2050183 |
| Return on average assets <sup>(1)</sup> | 1.09% | 0.97% | 1.07% | 1.47% | 1.15% | 1.03% | 0.82% |
| Net income | $5965 | $5050 | $5704 | $7884 | $5887 | $11015 | $8316 |
| &nbsp;&nbsp;&nbsp;Adjusted for: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of AFS <br> securities, net of tax <sup>(2)</sup> | - | - | - | - | - | - | 2654 |
| Adjusted net income | $5965 | $5050 | $5704 | $7884 | $5887 | $11015 | $10970 |
| Average assets | $2196716 | $2111196 | $2117357 | $2130485 | $2065502 | $2155077 | $2050183 |
| Adjusted return on average<br> assets <sup>(1)</sup> | 1.09% | 0.97% | 1.07% | 1.47% | 1.15% | 1.03% | 1.08% |

---

<sup>(1)</sup> Represents annualized data.

<sup>(2)</sup> 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)** | **Adjusted Net Income / Adjusted Return on Average Shareholders' Equity (unaudited)** | **Adjusted Net Income / Adjusted Return on Average Shareholders' Equity (unaudited)** | **Adjusted Net Income / Adjusted Return on Average Shareholders' Equity (unaudited)** | **Adjusted Net Income / Adjusted Return on Average Shareholders' Equity (unaudited)** | **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 Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** |
|  | **June 30,** | **March 31,** | **December 31,** | **September 30,** | **June 30,** | **June 30,** | **June 30,** |
| <u>(dollars in thousands)</u> | **2025** | **2025** | **2024** | **2024** | **2024** | **2025** | **2024** |
| Net income | $5965 | $5050 | $5704 | $7884 | $5887 | $11015 | $8316 |
| Average shareholders' equity | 205837 | 199763 | 194724 | 185434 | 175131 | 202817 | 171073 |
| Return on average<br> shareholders' equity <sup>(1)</sup> | 11.62% | 10.25% | 11.65% | 16.91% | 13.52% | 10.95% | 9.78% |
| Net income | $5965 | $5050 | $5704 | $7884 | $5887 | $11015 | $8316 |
| &nbsp;&nbsp;&nbsp;Adjusted for: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of AFS <br> securities, net of tax <sup>(2)</sup> | - | - | - | - | - | - | 2654 |
| Adjusted net income | $5965 | $5050 | $5704 | $7884 | $5887 | $11015 | $10970 |
| Average shareholders' equity | $205837 | $199763 | $194724 | $185434 | $175131 | $202817 | $171073 |
| Adjusted return on average<br> shareholders' equity <sup>(1)</sup> | 11.62% | 10.25% | 11.65% | 16.91% | 13.52% | 10.95% | 12.90% |

---

<sup>(1)</sup> Represents annualized data.

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

**15**

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**COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY**

**FINANCIAL TABLES**

**Non-GAAP Reconciliations (continued)**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Adjusted Net Income / Adjusted Basic EPS / Adjusted Diluted EPS (unaudited)** | **Adjusted Net Income / Adjusted Basic EPS / Adjusted Diluted EPS (unaudited)** | **Adjusted Net Income / Adjusted Basic EPS / Adjusted Diluted EPS (unaudited)** | **Adjusted Net Income / Adjusted Basic EPS / Adjusted Diluted EPS (unaudited)** | **Adjusted Net Income / Adjusted Basic EPS / Adjusted Diluted EPS (unaudited)** | **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 Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** |
|  | **June 30,** | **March 31,** | **December 31,** | **September 30,** | **June 30,** | **June 30,** | **June 30,** |
| <u>(dollars in thousands, except per share data)</u> | **2025** | **2025** | **2024** | **2024** | **2024** | **2025** | **2024** |
| Net income | $5965 | $5050 | $5704 | $7884 | $5887 | $11015 | $8316 |
| Average common shares<br> outstanding - basic | 10277721 | 10273125 | 10250446 | 10250446 | 10247201 | 10275436 | 10145576 |
| Basic earnings per share | $0.58 | $0.49 | $0.56 | $0.77 | $0.58 | $1.07 | $0.82 |
| Average common shares<br> outstanding - diluted | 10612255 | 10642078 | 10596364 | 10544087 | 10445144 | 10636997 | 10344815 |
| Diluted earnings per share | $0.57 | $0.47 | $0.54 | $0.75 | $0.56 | $1.04 | $0.80 |
| Net income | $5965 | $5050 | $5704 | $7884 | $5887 | $11015 | $8316 |
| &nbsp;&nbsp;&nbsp;Adjusted for: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of AFS securities,<br> net of tax <sup>(1)</sup> | - | - | - | - | - | - | 2654 |
| Adjusted net income | $5965 | $5050 | $5704 | $7884 | $5887 | $11015 | $10970 |
| 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 |

---

<sup>(1)</sup> 2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Adjusted Nonperforming Assets to Total Assets (unaudited)** | **Adjusted Nonperforming Assets to Total Assets (unaudited)** | **Adjusted Nonperforming Assets to Total Assets (unaudited)** | **Adjusted Nonperforming Assets to Total Assets (unaudited)** | **Adjusted Nonperforming Assets to Total Assets (unaudited)** | **Adjusted Nonperforming Assets to Total Assets (unaudited)** |  | **Table 10G** |
|  | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** |
|  | **June 30,** | **March 31,** | **December 31,** | **September 30,** | **June 30,** | **June 30,** | **June 30,** |
| <u>(dollars in thousands)</u> | **2025** | **2025** | **2024** | **2024** | **2024** | **2025** | **2024** |
| Total nonperforming assets | $14704 | $15370 | $15870 | $9321 | $8786 | $14704 | $8786 |
| Total assets | 2221245 | 2190391 | 2098712 | 2129346 | 2115547 | 2221245 | 2115547 |
| &nbsp;&nbsp;&nbsp;GAAP-based nonperforming assets<br> to total assets | 0.66% | 0.70% | 0.76% | 0.44% | 0.42% | 0.66% | 0.42% |
| Total nonperforming assets | $14704 | $15370 | $15870 | $9321 | $8786 | $14704 | $8786 |
| &nbsp;&nbsp;&nbsp;Adjusted for: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Guaranteed portions of nonaccrual<br> loans | 4583 | 4692 | 4811 | 4916 | 4910 | 4583 | 4910 |
| Adjusted total nonperforming assets | $10121 | $10678 | $11059 | $4405 | $3876 | $10121 | $3876 |
| Total assets | $2221245 | $2190391 | $2098712 | $2129346 | $2115547 | $2221245 | $2115547 |
| &nbsp;&nbsp;&nbsp;Adjusted nonperforming assets to <br> total assets | 0.46% | 0.49% | 0.53% | 0.21% | 0.18% | 0.46% | 0.18% |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **PPNR (unaudited)** | **PPNR (unaudited)** |  |  |  |  |  | **Table 10H** |
|  | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Six Months Ended** | **As of and for the Six Months Ended** |
|  | **June 30,** | **March 31,** | **December 31,** | **September 30,** | **June 30,** | **June 30,** | **June 30,** |
| <u>(dollars in thousands)</u> | **2025** | **2025** | **2024** | **2024** | **2024** | **2025** | **2024** |
| Net income (GAAP-based) | $5965 | $5050 | $5704 | $7884 | $5887 | $11015 | $8316 |
| Plus: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Income tax expense | 1064 | 1542 | 950 | 2236 | 1577 | 2606 | 2125 |
| &nbsp;&nbsp;&nbsp;Provision (recovery) for credit losses | 752 | 629 | 1240 | (1023) | 173 | 1381 | 336 |
| Pre-tax, pre-provision net revenue | $7781 | $7221 | $7894 | $9097 | $7637 | $15002 | $10777 |

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