CoastalSouth Bancshares (COSO) investor relations material

Executive summary

• Net income for Q2 2026 was $7.3 million ($0.59 per diluted share), up from $6.7 million in Q1 2026 and $6.0 million in Q2 2025, driven by higher net interest income and strong loan growth.

• For the six months ended June 30, 2026, net income was $13.7 million ($1.10 per diluted share), up from $11.0 million ($1.04) year-over-year.

• Achieved $0.59 diluted EPS for Q2 2026, with total assets reaching $2.42 billion and total loans at $1.93 billion.

• Annualized loan growth (LHFI) was 19.3% quarter-over-quarter, with strong loan production of $181.6 million in Q2 2026.

• Quarterly dividend of $0.05 per share declared, payable August 27, 2026.

Financial highlights

• Net interest income for Q2 2026 was $20.7 million, up 4.7% sequentially and 14.3% year-over-year; net interest margin increased to 3.66%.

• Efficiency ratio improved to 58.49% from 60.1% in Q1 2026.

• Tangible book value per share reached $22.06 at June 30, 2026, up from $21.52 in Q1 2026.

• Noninterest income for Q2 2026 was $2.2 million, up 22.7% year-over-year, with gains in mortgage originations and government guaranteed loan sales.

• Noninterest expense increased 10.6% to $13.4 million in Q2 2026, mainly due to higher salaries and benefits.

Outlook and guidance

• Management expects continued organic loan and deposit growth, with a focus on maintaining asset quality and capital strength.

• The company remains well-capitalized and anticipates maintaining strong liquidity and capital ratios.

• Continued focus on banker recruitment and expansion in key Southeast markets.

• Effective deposit repricing and risk management expected to support margins.