CoastalSouth Bancshares (COSO) investor relations material

Executive summary

• Achieved total assets of $2.35 billion and total deposits of $2.06 billion as of Q1 2026, with a strong presence in the Southeast and diversified business lines.

• Net income for Q1 2026 was $6.3 million ($0.51 per diluted share), up from $5.1 million in Q1 2025, with book value per share rising to $21.94 and tangible book value per share up 12.3% year-over-year.

• Continued organic growth, highlighted by a 9.78% annualized loan growth, 31.65% annualized core deposit growth quarter-over-quarter, and a growing loan pipeline with new commercial bankers added.

• Paid first quarterly dividend in February 2026 and declared a $0.05 dividend for Q2 2026, payable May 28, 2026.

Financial highlights

• Net interest income was $19.7 million, up 17.8% year-over-year but down 0.6% sequentially; net interest margin remained stable at 3.59%.

• Noninterest income totaled $2.0 million, down 14.3% from Q4 2025 due to lower gains on sale of government guaranteed loans.

• Noninterest expense increased 6.4% sequentially, mainly from higher salaries and professional services.

• Core deposits reached $1.80 billion, representing 87.4% of total deposits, with deposit costs decreasing 8 bps sequentially and 31 bps year-over-year.

• Efficiency ratio increased to 60.1% in Q1 2026, up 4.7% from Q4 2025, driven by higher salaries, benefits, and professional fees.

Outlook and guidance

• Regulatory capital ratios remain strong, supporting further balance sheet expansion and continued loan growth, with ongoing banker recruitment.

• Focus remains on disciplined pricing for loans and deposits, with effective deposit repricing practices stabilizing margins.

• Continued emphasis on organic growth and expansion through banker recruitment and strategic market entry.