$COSO

CoastalSouth Bancshares, Inc.

CIK:0001297107|SEC Filings

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Loans, including fees
Loans held for investment	$ 25,974	$ 23,813	$ 51,099	$ 46,120
Loans held for sale	3,162	3,296	6,077	6,115
Investments
Taxable	3,624	3,666	6,983	7,269
Non-taxable	125	94	251	188
Non-marketable equity securities	143	114	269	218
Federal funds sold	409	699	1,201	1,661
Other earning assets from banks	121	111	246	246
Total interest income	33,558	31,793	66,126	61,817
Interest expense
Interest-bearing deposits	12,545	13,251	25,137	26,081
Other borrowings	348	464	580	899
Total interest expense	12,893	13,715	25,717	26,980
Net interest income	20,665	18,078	40,409	34,837
Provision for credit losses	658	752	1,040	1,381
Net interest income after provision for credit losses	20,007	17,326	39,369	33,456
Noninterest income
Bank-owned life insurance	466	449	922	889
Income from mortgage originations	403	326	797	547
Gain on sale of government guaranteed loans	307	265	644	265
Noninterest income	509	487	1,028	984
Other noninterest income	534	283	809	1,026
Total noninterest income	2,202	1,795	4,169	3,676
Noninterest expense
Salaries and employee benefits	8,314	6,997	16,360	13,691
Occupancy and equipment	875	814	1,761	1,602
Software and other technology expense	861	719	1,687	1,422
Other professional services	632	973	1,227	1,666
Data processing	682	652	1,337	1,277
Regulatory assessment	308	344	679	705
Other noninterest expense	1,702	1,593	3,367	3,148
Total noninterest expense	13,374	12,092	26,418	23,511
Income before taxes	8,835	7,029	17,120	13,621
Income tax provision	1,502	1,064	3,458	2,606
Net income (loss)	$ 7,333	$ 5,965	$ 13,662	$ 11,015
Net income per common share:
Basic	$ 0.61	$ 0.58	$ 1.14	$ 1.07
Diluted	$ 0.59	$ 0.57	$ 1.1	$ 1.04
Interchange Income and Card Fees
Noninterest income
Noninterest income	$ 256	$ 257	$ 529	$ 523
Service Charges on Deposit Accounts
Noninterest income
Noninterest income	$ 236	$ 215	$ 468	$ 426

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net Income (Loss)	$ 13,662	$ 11,015
Adjustments to reconcile net income to net cash (used) provided by operating activities:
Provision for credit losses	1,040	1,381
Depreciation expense and software amortization	841	722
Increase in cash value of bank-owned life insurance	(922)	(889)
Stock-based compensation expense	636	479
Amortization of operating lease right-of-use assets	429	416
Amortization of debt issuance costs	0	28
Write-down on other real estate owned	0	99
Write-down on repossessed assets	0	104
Net gain on sale of other real estate owned	0	(64)
Gain on sale of government guaranteed loans, including originations of servicing rights	(644)	(265)
Gain on sale of other loans	(230)	0
Income from mortgage operations	(797)	(547)
Discount accretion and premium amortization on securities available-for-sale	(274)	(369)
Amortization of intangible assets	210	291
Deferred income tax expense	1,016	153
Originations of loans held for sale	(3,327,341)	(3,010,117)
Proceeds from loans held for sale	3,302,671	2,980,351
Increase in other assets	(439)	(1,507)
(Decrease) increase in other liabilities	(671)	1,873
Net cash used by operating activities	(10,813)	(16,846)
Investing activities
Purchase of securities available-for-sale	(48,492)	(20,925)
Proceeds from paydowns, calls, and maturities on securities available-for-sale	29,401	29,523
Net (purchase) sale of non-marketable equity securities	(2,294)	642
Loan originations and principal collections, net	(114,153)	(123,343)
Net purchase of premises, furniture and equipment	(1,330)	(1,092)
Proceeds from sales of other real estate owned	0	829
Net cash used by investing activities	(136,868)	(114,366)
Financing activities
Dividends paid on common stock	(1,207)	0
Net increase in deposits	59,987	133,499
Net proceeds (repayment) of Federal Home Loan Bank of Atlanta borrowings	45,000	(15,000)
Proceeds from issuance of common stock under incentive plan	223	42
Repurchase of common stock	(1,235)	0
Net repayment of commercial line of credit	0	(12,000)
Net cash provided by financing activities	102,136	106,541
Net decrease in cash and cash equivalents	(45,545)	(24,671)
Cash and cash equivalents, beginning of year	79,767	67,961
Cash and cash equivalents, end of period	34,222	43,290
Cash paid during the period for:
Interest	26,488	25,022
Income taxes	550	1,368
Noncash investing and financing activities:
Unrealized (loss) gain on securities available-for-sale, net	(868)	2,927
Unrealized loss on derivatives, net	(388)	(330)
Transfers from loans held for investment to loans held for sale	25,814	4,496
Right-of-use assets obtained in exchange for new operating lease liabilities	2,075	535
Lease liabilities arising from obtaining right-of-use assets	2,902	535
Employee Stock Option
Financing activities
Taxes paid in net settlement of tax obligation upon settlement of restricted stock units	(35)	0
Restricted Stock Units
Financing activities
Taxes paid in net settlement of tax obligation upon settlement of restricted stock units	$ (597)	$ 0

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Cash and cash equivalents
Cash and due from banks	$ 13,609	$ 11,218
Interest-bearing accounts with other banks	10,653	30,320
Federal funds sold	9,960	38,229
Total cash and cash equivalents	34,222	79,767
Investments
Securities available-for-sale, at fair value	348,582	330,503
Non-marketable equity securities	11,053	8,759
Total investments	359,635	339,262
Loans held for sale	223,112	170,933
Loans held for investment	1,705,370	1,617,315
Allowance for credit losses on loans	(19,817)	(18,743)
Loans held for investment, net	1,685,553	1,598,572
Bank-owned life insurance	49,218	48,296
Premises, furniture and equipment, net	18,611	18,122
Deferred tax asset	15,740	16,370
Goodwill	4,708	4,708
Intangible assets	1,538	1,554
Other assets	28,656	29,002
Total assets	2,420,993	2,306,586
Deposits
Non-interest bearing transaction accounts	355,941	312,251
Interest-bearing transaction accounts	194,896	214,620
Savings and money market	772,809	673,609
Time deposits	724,025	787,204
Total deposits	2,047,671	1,987,684
Other borrowings	75,000	30,000
Other liabilities	28,619	29,373
Total liabilities	2,151,290	2,047,057
Commitments and Contingencies (Note 4)
Shareholders' Equity
Preferred stock, $1.00 par value, 10,000,000 shares authorized, no shares issued or outstanding	0	0
Capital surplus	188,851	189,882
Retained earnings	79,324	66,886
Accumulated other comprehensive loss	(10,475)	(9,219)
Total shareholders' equity	269,703	259,529
Total liabilities and shareholders' equity	2,420,993	2,306,586
Voting Common Stock
Shareholders' Equity
Common stock	12,003	10,868
Non-voting Common Stock
Shareholders' Equity
Common stock	$ 0	$ 1,112