Coastalsouth Bancshares, Inc. · NYSE:COSO

Coastalsouth Bancshares — Q1 2026 Earnings Presentation

22 slides from Coastalsouth Bancshares's earnings presentation, Apr 20, 2026

  1. Slide 1: First Quarter 2026 Investor Presentation

    CoastalSouth Bancshares, Inc. Third Quarter 2025 Investor Presentation October 20, 2025 First Quarter 2026 Investor Presentation April 20, 2026

  2. Slide 2: Disclosures: Forward Looking Statements

    Disclosures Forward Looking Statements Statements in this Investor Presentation regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute “forward-looking statements” within the m

  3. Slide 3: Disclosures: Non-GAAP Financial Measures

    Disclosures Non-GAAP Financial Measures In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this Investor Presentation contains certain non-GAAP financial measures. The Company believes that providing certain non-GAAP financial measures provide

  4. Slide 4: Company Overview

    Company Overview Total Assets $2.35 Billion Total Deposits $2.06 Billion Total Loans $1.83 Billion Tier 1 Leverage(1) CSB Strategic Expansion 11.21% CSB Branch CET1(1) • Best-in-class growth profile with 1-year CAGR for Total Loans of 13.5% and 12.19% 1-year CAGR for TBV(2)/Share of 12.3% • Strong r

  5. Slide 5: Quarterly Highlights: Q1 2026

    Quarterly Highlights: Q1 2026 Diluted Earnings Per Share Book Value Per Share $21.94 $0.58 $0.51 $2.35 $0.57 $21.66 $21.52 $0.54 $21.25 $0.51 $20.91 Diluted EPS Billion in Total Assets $20.37 $20.49 $0.47 31.65% 9.78% $19.67 $19.88 QoQ Annualized $19.17 Core Deposit(1) QoQ Annualized Growth Loan Gro

  6. Slide 6: Deposit Portfolio

    Deposit Portfolio • Average total deposits increased $30.3 million compared to the prior quarter and increased $151.8 million compared to Q1 2025. • Core deposits(2) of $1.799 billion represented 87.4% of total deposits at the end of Q1 2026. • Core deposits (2) increased $118 million and $148 milli

  7. Slide 7: Loans Held for Investment Production

    Loans Held for Investment Production LHFI Production (1) (in millions) $159.1 • $166.7 million in gross LHFI production for Q1 2026. As of March 31, 2026, these loans had a funded $131.6 balance of $99.5 million and unfunded commitments $124.2 $112.5 of $59.9 million. $81.2 $76.9 $84.8 • Community B

  8. Slide 8: Loan Portfolio

    Loan Portfolio Loan Portfolio Composition • Loan portfolio is well diversified across loan types and geographies and managed by a seasoned team of bankers Other Loans, 6% ADC, 7% and credit officers. Residential Mortgage, 11% • Conservative underwriting guidelines and loan structures help to mitigat

  9. Slide 9: Capital

    Capital • Paid first quarterly dividend to shareholders in Risk-Based Capital Ratios (1) February 2026; approved a $0.05 quarterly dividend on 13.25% 13.20% April 17, 2026. 12.91% 12.38% 0.95% 1.01% • Tier 1 leverage ratio increased 3 bps to 11.21% as 11.99% 0.97% compared to Q4 2025; tangible commo

  10. Slide 10: Net Interest Margin

    Net Interest Margin Net Interest Income / Margin (in millions) • Net interest income decreased $0.2 million 3.58% 3.60% 3.59% compared to the prior quarter and increased $3.0 million compared to Q1 2025. 3.46% 3.38% • Net interest margin has remained stable over the last few quarters as focus remain

  11. Slide 11: Interest Rate Sensitivity

    Interest Rate Sensitivity Cumulative Loan and Deposit Betas (1) • The cycle-to-date (1) beta on total loans, compared to the average Fed Funds Effective Target rate was 60.4% 27%. The cycle-to-date (1) total deposit beta was 35%. 41.6% • Approximately 44.5% of variable rate structures 35.2% 38.4% 36

  12. Slide 12: Noninterest Income

    Noninterest Income • Gain on sale of government guaranteed loans (“GGL”) Noninterest Income (in thousands) was $337 thousand for Q1 2026 compared to $682 $2,295 thousand in Q4 2025. $2,100 • QTD GGL loan production was $6.4 million. $1,967 • At the end of Q1 2026, there are approximately $1,881 $682

  13. Slide 13: Noninterest Expense

    Noninterest Expense Noninterest Expense (in thousands) Efficiency Ratio QTD $13,044 61.3% 60.8% $655 60.1% $12,262 $12,092 $11,856 $640 $826 $11,419 $653 $647 $624 $719 $808 $886 55.7% 55.3% $788 $703 $814 $864 $595 $850 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 $788 $391 $973 $571 $693 $2,036 $1,915

  14. Slide 14: Credit Quality

    Credit Quality Net Charge-Offs as a % of Total Average Loans • Net charge-offs (“NCO”) continue to be minimal. • Nonperforming assets decreased during the quarter primarily due to payments on nonaccrual assets, offset with other additions to nonaccrual assets. 0.08% • Higher risk loans, defined as s

  15. Slide 15: Allowance for Credit Losses

    Allowance for Credit Losses • The coverage level of the Allowance for Credit Losses (“ACL”) has remained stable for the last several quarters. • Net charge-off activity remains minimal. • Changes in the provision for ACL are driven by the impact of net charge-offs, loan production volume and mix, an

  16. Slide 16: Appendix

    COASTALSOUTH BANCSHARES, INC. Appendix

  17. Slide 17: Core Operating Principles

    Core Operating Principles We believe that by focusing on our five core values outlined below, we can create meaningful relationships between our Bank, team members, clients, and our communities Each of these relationships is critical to our financial success and supports our capacity to drive shareh

  18. Slide 18: Business Evolution & Milestones

    Business Evolution & Milestones 2004 Founded in August 2004 in Hilton Head Island, SC Early History & Recapitalization Hired new management team (formerly of C&S) in conjunction with $62 million 2017 recapitalization; added GGL (1) & Senior Housing businesses 2018 Acquired First Citizens Financial C

  19. Slide 19: Specialty Lines of Business

    Specialty Lines of Business Marine Lending (in millions) Senior Housing Lending (in millions) $259.5 $254.4 $318.2 $245.3 $312.1 $236.5 $307.7 $301.3 $223.7 $284.3 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Loan Balance Loan Balance Marine Lending Production (in

  20. Slide 20: Specialty Lines of Business

    Specialty Lines of Business Government Guaranteed Lending (in millions) Mortgage Banker Finance - LHFS (in millions) 8.35% 7.89% 8.11% 7.55% 7.45% $87.4 $90.2 $79.2 $82.6 $231.6 $69.6 $209.1 $202.2 $187.5 $170.9 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026* Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Loan Ba

  21. Slide 21: Non-GAAP Reconciliation

    Non-GAAP Reconciliation Tangible Book Value per Share / Tangible Common Equity to Tangible Assets (unaudited) As of and for the Three Months Ended As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, March 31, March 31, (dollars in thousands, except per share

  22. Slide 22: Non-GAAP Reconciliation (cont.)

    Non-GAAP Reconciliation (cont.) Adjusted Nonperforming Assets to Total Assets (unaudited) As of and for the Three Months Ended As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, March 31, March 31, (dollars in thousands) 2026 2025 2025 2025 2025 2026 2025 To

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