Coastalsouth Bancshares, Inc. · NYSE:COSO
Coastalsouth Bancshares — IPO Roadshow (June 2025)
46 slides from Coastalsouth Bancshares's IPO roadshow presentation, Jun 24, 2025
Slide 1: CoastalSouth Bancshares, Inc. Investor Presentation June 2025
COASTALSOUTH BANCSHARES, INC. Investor Presentation June 2025
Slide 2: Disclaimer
Disclaimer Disclaimer CoastalSouth Bancshares, Inc. (the “Company,” “COSO”, “we,” “our” or “us”) has filed a registration statement on Form S-1 (including a preliminary prospectus) with the Securities and Exchange Commission (the “SEC”) for the offering to which this presentation relates. The regist
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) Industry Information Certain of the information contained in this Investor Presentation may be derived from information provided by industry sources. The Company believes that such information is accurate and that the sources from which it has been obtained are reliable. The Compa
Slide 4: Offering Summary
Offering Summary Issuer CoastalSouth Bancshares, Inc. Exchange / Ticker NYSE / “COSO” Base Shares Offered 2,600,000 shares (1,700,000 primary / 900,000 secondary) Underwriters’ Option 15% Filing Range $21.50 to $23.50 per share Base Offering Size $58.5 million gross proceeds1 Use of Proceeds Working
Slide 5: Franchise Overview
Franchise Overview General Corporate Information Company Name CoastalSouth Bancshares, Inc. Bank Name Coastal States Bank Current OTCQX Ticker COSO Headquarters Atlanta, GA Founded 2004 Total Branches 11 Employees (FTE) 180 President & CEO Stephen "Steve" R. Stone CFO & COO Anthony "Tony" P. Valduga
Slide 6: Investment Highlights
Investment Highlights Logo Best-in-Class Management Experienced management team with a lengthy track record of high performance Favorable Demographic Trends 1 Projected population growth of 6.3% in COSO’s markets compared to the national average of 2.4% Strong Core Funding Profile Consistent core de
Slide 7: Community Bank Markets
Community Bank Markets Atlanta, GA Hilton Head Island, SC Savannah, GA Coastal States Bank Branch (11 total) Metropolitan Statistical Area (MSA) ’25 – ’30 Projected Population Growth (%) Atlanta, GA MSA 8thlargest MSA in the United States by population Home to 17 Fortune 500 and 31 Fortune 1000 comp
Slide 8: Our Executive Management Team
Our Executive Management Team Steve Stone President, Chief Executive Officer and Director Led the recapitalization of COSO in 2017 and has overseen the Company’s growth to over $2 billion in assets Prior to joining COSO, held various positions at Community & Southern Holdings, Inc. (“C&S”) including
Slide 9: Management Organizational Chart
Management Organizational Chart Steve Stone President, CEO and Director Tony Valduga CFO & COO Brad Turner Chief Credit Officer Brian Smith Regional President: Savannah Diana McDougall Regional President: Lowcountry Gary Dowell Regional President: Atlanta Richard Spiehs President & CEO, Mortgage Spe
Slide 10: Business Evolution & Milestones
Business Evolution & Milestones Early History & Recapitalization Expansion in Key Southeast MSAs Positioning for Future Growth 2004 2017 2018 2019 2020 2021 2022 2023 2024 Founded in August 2004 in Hilton Head Island, SC Hired new management team (formerly of C&S) in conjunction with $62 million rec
Slide 11: 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
Slide 12: Growth Strategies
Growth Strategies Organic Source loans through our experienced commercial bankers Source core deposits through our branch system and commercial relationships Acquisitive Execute carefully selected and financially disciplined acquisitions Pursue team lift-outs as a corollary “acquisition” strategy Sp
Slide 13: One of Few Sizable Community Banks in Our Markets
One of Few Sizable Community Banks in Our Markets 1 The Atlanta MSA ($1.5B - $5B in Assets) 1 The Lowcountry & Savannah ($1.5B - $5B in Assets) Total Assets Institution ($M) Total Deposits ($M) Market Share (%) Total Assets Total Deposits Market Share Institution ($M) ($M) (%) MetroCity Bankshares,
Slide 14: Overview of Specialty Lines of Business
Overview of Specialty Lines of Business Community Banking 1 Commercially focused banking teams in each of our core banking markets Primary target customers are small to medium sized businesses Marine Lending Direct super-prime lending to private banking-type customers Focused on high-end yachts and
Slide 15: Key Statistics: Specialty Lines of Business
Key Statistics: Specialty Lines of Business Senior Community Banking 1 Marine Housing Mortgage Banker Government Guaranteed 1 Lending Lending Finance Lending $73.6M Loans $73.7M Loans $376M Loans Originated in '24 8.32% WAC2 on '24 Originations $1.5B Community Bank Deposits $132M Community Bank Depo
Slide 16: Disciplined M&A Strategy
Disciplined M&A Strategy Potential target screening focuses on: Strength of deposits, both type and cost Credit profile and underwriting methodology Earnings profile, strength and composition Franchise position within operating markets Culture and talent base Diversification (across revenue, loans,
Slide 17: History of Successful Mergers
History of Successful Mergers The M&A approach at senior management’s previous bank, C&S, resulted in the successful completion of fourteen acquisitions over five years and contributed to growth from de novo to over $4B in assets at the time of C&S’s sale COSO has approached M&A with a similar strat
Slide 18: COSO Financial Metrics vs. Selected Southeast Peers
COSO Financial Metrics vs. Selected Southeast Peers Peer Selection Filtering Methodology 1 Major exchange-traded nationwide banks and thrifts with total assets $1.0B to $10.0B 2 Headquartered in the Southeast 1 3 MRQ total assets between $1.5B to $5.0B 4 Excluding banks with non-traditional business
Slide 19: Non-Financial Value Drivers
Non-Financial Value Drivers Senior management has worked together for over 15 years, completing 16 acquisitions in total, executing numerous debt and equity capital raises, and expanding through de novo branching activities Our markets demonstrate growth trends well above national averages; we are t
Slide 20: Q1 2025 Results Summary
Q1 2025 Results Summary Financial Snapshot (dollars in thousands except per share amounts) Results as of and for Q1 2025 Q4 2024 Selected Operating Data: Net interest income $16,759 $16,271 Provision for credit losses 629 1,240 Noninterest income 1,881 1,958 Noninterest expense 11,419 10,335 Income
Slide 21: Strategic Growth History
Strategic Growth History Asset Growth ($M) CAGR: 23% $ 1,148 $1,612 $ 1,835 $2,029 $2,099 $2,190 2020 2021 2022 2023 2024 2025Q1 Tangible Book Value Per Share (“TBVPS”) Growth 1 CAGR: 12% $12.08 $13.84 $12.64 $15.80 $18.51 $19.17 2020 2021 2022 2023 2024 2025Q1 Loan Growth ($M) CAGR: 22% $816 $1,020
Slide 22: Profitability and Earnings History
Profitability and Earnings History ROAA (%) 0.67% 0.94% 1.07% 1.26% 1.18% 1 1.05% 0.97% 2020 2021 2022 2023 2024 2025Q1 ROAE (%) 6.6% 11.0% 15.5% 18.0% 13.6% 1 12.1% 10.3% 2020 2021 2022 2023 2024 2025Q1 Net Income ($M) $6.4 $12.3 $18.2 $24.5 $24.6 1 $21.9 $5.1 2020 2021 2022 2023 2024 2025Q1 Dilute
Slide 23: Other Key Operating Metrics
Other Key Operating Metrics Net Interest Margin (%) 3.54% 3.28% 3.53% 3.46% 3.29% 3.38% 2020 2021 2022 2023 2024 2025Q1 Noninterest Income / Average Assets (%) 0.68% 0.85% 0.42% 0.44% 0.38% 1 0.22% 0.36% 2020 2021 2022 2023 2024 2025Q1 Noninterest Expense / Average Assets (%) 2.83% 2.71% 2.08% 2.04%
Slide 24: Loan Portfolio & Deposit Composition
Loan Portfolio & Deposit Composition Loan Portfolio 1 LHFS, 11% other Consumer, 1% Cash Value Life Insurance LOC, 5% Residential Mortgage, 11% Marine, 17% C&I, 9% Senior Housing, 15% Owner-Occupied CRE, 5% Income Producing CRE, 21% ADC, 5% $1.7B CRE and C&D Concentration 2 CRE Concentration C&D Conc
Slide 25: Asset Quality Highlights
Asset Quality Highlights Underwriting Methodology Following its recapitalization, COSO made significant investments in risk management personnel, systems, and third-party advisors Underwriting processes are tailored to each product and specialty line of business Sophisticated portfolio monitoring an
Slide 26: Financial Highlights for the Two Month Period Ended May 31, 2025
Financial Highlights for the Two Month Period Ended May 31, 2025 Balance sheet highlights Total assets Gross loans held for investment Deposits Total shareholder's equity Asset quality Special mention loans Substandard loans, excluding nonaccrual loans Nonperforming assets Nonperforming assets / tot
Slide 27: Capitalization Table
Capitalization Table The following table shows our capitalization, including regulatory capital ratios, on a consolidated basis, as of March 31, 2025: on an actual basis; and on an as adjusted basis after giving effect to the sale and issuance by us of 1,700,000 shares of our common stock in this of
Slide 28: Investment Summary
Investment Summary Best-in-Class Management Favorable Demographic Trends Strong Core Funding Profile within Sizable and Growing Markets Established, Efficient and Growing Commercial Franchise Scalable Specialty Lines of Business Robust Risk Management Process 28
Slide 29: Appendix
COASTALSOUTH BANCSHARES, INC. Appendix
Slide 30: Non-Employee Members of the Board of Directors
Non-Employee Members of the Board of Directors James S. MacLeod Chairman; Founder, Coastal States Bank Boris M. Gutin Director; Co-Managing Partner, GCP Capital Ernst W. Bruderer Director; Founder, CoastalSouth Bancshares and Coastal States Bank John G. Aldridge, Jr. Director; Founder and Managing P
Slide 31: Marine Lending Overview
Marine Lending Overview Hired team of Marine Lending bankers to lead division in 2022 Business line leader and senior underwriter have five decades of cumulative consumer lending experience; COSO’s CEO and CFO worked with this team at C&S Direct super-prime lending to private banking-type customers
Slide 32: Senior Housing Lending Overview
Senior Housing Lending Overview Tenured Senior Housing team conducting low-leverage lending across spectrum of senior care with an emphasis on assisted living Senior Housing leader and senior credit officer each have over three decades of industry experience; COSO’s CEO and CFO worked with this team
Slide 33: Mortgage Banker Finance Overview
Mortgage Banker Finance Overview Mortgage banker finance (“MBF”) business line provides warehouse lending services to single family mortgage originators across the country MBF utilizes a “purchase and sale” form of warehousing; COSO purchases individual mortgages from its clients which have committe
Slide 34: Government Guaranteed Lending Overview
Government Guaranteed Lending Overview GGL focuses on the origination of loans through SBA programs, including 7(a) loans and 504 loans, as well as loans guaranteed by the USDA The team is led by a managing director and a national sales manager, each with over 30 years of SBA lending experience Pref
Slide 35: Asset / Liability Risk Management
Asset / Liability Risk Management Interest Rate Risk Management Our goal is to structure our asset/liability composition to maximize net interest income while managing interest rate risk so as to minimize the adverse impact of changes in interest rates on net interest income and capital in either a
Slide 36: Investment Securities Portfolio
Investment Securities Portfolio Investment Portfolio Information All of the securities in our investment portfolio were classified as available-for-sale as of March 31, 2025 Securities available-for-sale consist primarily of U.S. Treasuries, municipal obligations, mortgage-backed securities, asset-b
Slide 37: Summary Historical Financial Information
Summary Historical Financial Information As of and for the Three Months Ended March 31, As of and for the Year Ended December 31, 2025 2024 2024 2023 2022 2021 2020 (dollars in thousands except per share amounts) (unaudited) (audited) Selected Operating Data: Interest income $30,024 $29,388 $123,649
Slide 38: Summary Historical Financial Information (Cont.)
Summary Historical Financial Information (Cont.) As of and for the Three Months Ended March 31, As of and for the Year Ended December 31, 2025 2024 2024 2023 2022 2021 2020 (dollars in thousands) (unaudited) (audited) Performance Ratios: Pre tax pre provision net revenue (PPNR) $7,221 $3,140 $27,768
Slide 39: Summary Historical Financial Information (Cont.)
Summary Historical Financial Information (Cont.) As of and for the Three Months Ended March 31, As of and for the Year Ended December 31, , 2025 2024 2024 2023 2022 2021 2020 (dollars in thousands) (unaudited) (audited) Balance Sheet Ratios: Loan to deposit ratio 85.65 % 86.57 % 86.30 % 85.71 % 86.7
Slide 40: Non GAAP Reconciliation
Non GAAP Reconciliation Tangible Common Equity, Tangible Book Value Per Share, and Tangible Assets As of and for the Three Months Ended March 31, As of and for the Year Ended December 31, 2025 2024 2024 2023 2022 2021 2020 (dollars in thousands) (unaudited) (audited) Tangible Common Equity: Total sh
Slide 41: Non GAAP Reconciliation (Cont.)
Non GAAP Reconciliation (Cont.) Adjusted Efficiency Ratio and Adjusted Noninterest Income and Expense to Average Assets As of and for the Three Months Ended March 31, As of and for the Year Ended December 31, 2025 2024 2024 2023 2022 2021 2020 (dollars in thousands) (unaudited) (audited) GAAP based
Slide 42: Non GAAP Reconciliation (Cont.)
Non GAAP Reconciliation (Cont.) Adjusted Net Income and Adjusted Earnings Per Share As of and for the Three Months Ended March 31, As of and for the Year Ended December 31, 2025 2024 2024 2023 2022 2021 2020 (dollars in thousands) (unaudited) (audited) Net income $5,050 $2,429 $21,904 $24,478 $18,19
Slide 43: Non GAAP Reconciliation (Cont.)
Non GAAP Reconciliation (Cont.) Adjusted Return on Average Assets As of and for the Three Months Ended March 31, As of and for the Year Ended December 31, 2025 2024 2024 2023 2022 2021 2020 (dollars in thousands) (unaudited) (audited) Net income $5,050 $2,429 $21,904 $24,478 $18,190 $12,322 $6,368 A
Slide 44: Non GAAP Reconciliation (Cont.)
Non GAAP Reconciliation (Cont.) Adjusted Return on Average Tangible Common Equity (dollars in thousands) As of and for the Three Months Ended March 31, As of and for the Year Ended December 31, 2025 (unaudited) 2024 2024 2023 2022 (audited) 2021 2020 Net income $5,050 $2,429 $21,904 $24,478 $18,190
Slide 45: Non GAAP Reconciliation (Cont.)
Non GAAP Reconciliation (Cont.) Adjusted Nonperforming Assets to Total Assets Ratio Period Ended As of and for the Three May 31, Months Ended March 31, As of and for the Year Ended December 31, 2025 2025 2024 2024 2023 2022 2021 2020 (dollars in thousands) (unaudited) (audited) Total nonperforming a
Slide 46: Local. And Proud Of It.
logo Local. And Proud Of It.®