CoastalSouth Bancshares (COSO) investor relations material

Executive summary

• Net income for Q2 2025 was $6.0 million ($0.57 per diluted share), up from $5.9 million in Q2 2024 and $5.1 million in Q1 2025, driven by a lower effective tax rate and improved margins.

• Year-to-date net income reached $11.0 million, up from $8.3 million in the prior year period, aided by the absence of a prior year nonrecurring securities loss.

• Total assets grew 5.8% to $2.22 billion at June 30, 2025, primarily due to strong loan growth.

• The company completed its IPO in July 2025, raising $34.0 million in net proceeds; shares began trading on NYSE under "COSO."

• Growth in loans held for investment and sale, core deposits, and net interest margin, supported by strategic hires.

Financial highlights

• Net interest income for Q2 2025 was $18.1 million, up 8.6% year-over-year and 7.9% from Q1 2025; net interest margin increased to 3.46%.

• Noninterest income for Q2 2025 was $1.8 million, up 13.0% year-over-year but down 4.6% sequentially, mainly from higher gains on government guaranteed loan sales.

• Noninterest expense rose to $12.1 million in Q2 2025, up 13.5% year-over-year and 5.9% sequentially, driven by higher salaries, benefits, and professional fees.

• Provision for credit losses increased to $752 thousand in Q2 2025 from $173 thousand in Q2 2024, reflecting higher loan production and changes in economic factors.

• Book value per share rose to $20.37; tangible book value per share to $19.88 at June 30, 2025.

Outlook and guidance

• Management expects continued loan and deposit growth, stable asset quality, and a focus on core banking operations and efficiency, supported by recent hires.

• The company remains asset sensitive to interest rates and expects net interest income to benefit from rising rates, though a flat or inverted yield curve could pressure margins.