CoastalSouth Bancshares (COSO) investor relations material

Executive summary

• Record Q3 2026 net income was $8.772 million, or $0.71 per diluted share, versus $7.333 million in Q2 2026 and $6.7 million in Q3 2025.

• Nine-month net income was $22.4 million, or $1.81 per diluted share, versus $17.8 million and $1.58 per diluted share in 9M 2025.

• Total assets were $2.42 billion, deposits $2.10 billion and gross loans $1.93 billion at September 30, 2026.

• Strong loan production and government-guaranteed loan sale gains supported earnings; Q4 priorities included relationship-building, disciplined underwriting and investment in bankers.

Financial highlights

• Net interest income was $21.5 million, up $862,000 QoQ and 12.2% YoY; net interest margin was 3.70%, versus 3.58% a year earlier.

• Noninterest income rose 58.5% YoY to $3.3 million, led by $1.6 million in government-guaranteed loan sale gains; noninterest expense increased 15.6% to $13.7 million.

• Pre-tax, pre-provision net revenue was $11.146 million; PPNR is a non-GAAP measure.

• Q3 diluted EPS was $0.71 versus $0.54 in Q3 2025; nine-month diluted EPS was $1.81 versus $1.58.

• Q3 effective tax rate was 24.2%; excluding the state deferred tax asset write-down and stock-based compensation items, it was 20.05%.

Outlook and guidance

• Management cited potential Q4 loan-production moderation amid interest-rate conditions; Q3 new-loan weighted average coupon was 6.93%, 65 bps above the portfolio’s 6.28% weighted average yield.

• Q4 priorities included deepening client relationships, maintaining disciplined underwriting and recruiting and investing in bankers; no numerical guidance was stated.

• Rate modeling showed projected 12-month net interest income changes of +4.09% for +100 bps and -3.36% for -100 bps; management expects NII to respond to rate changes, though actual results may differ from simulations.