Form 8-K

8-K — CoastalSouth Bancshares, Inc.

Accession: 0001193125-26-425283

Filed: 2026-10-19

Period: 2026-10-19

CIK: 0001297107

SIC: 6022 (STATE COMMERCIAL BANKS)

Item: Results of Operations and Financial Condition

Item: Regulation FD Disclosure

Item: Financial Statements and Exhibits

Documents

8-K — coso-20261019.htm (Primary)

EX-99.1 (coso-ex99_1.htm)

EX-99.2 (coso-ex99_2.htm)

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8-K

8-K (Primary)

Filename: coso-20261019.htm · Sequence: 1

8-K

false000129710700012971072026-10-192026-10-19

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 19, 2026

COASTALSOUTH BANCSHARES, INC.

(Exact name of Registrant as Specified in Its Charter)

Georgia

001-42730

57-1184730

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

400 Galleria Parkway

Suite 1900

Atlanta, Georgia

30339

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (678) 396-4605

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, par value $1.00 per share

COSO

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 19, 2026, CoastalSouth Bancshares, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition for the third quarter ended September 30, 2026. A copy of the press release covering such announcement is attached hereto as Exhibit 99.1 and incorporated by reference herein.

In accordance with General Instruction B.2 of Form 8-K, the information furnished in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.

Item 7.01 Regulation FD Disclosure.

On October 19, 2026, the Company made available a copy of investor presentation material (the “Investor Presentation”) prepared for use with the press release. The Investor Presentation is attached to this Report as Exhibit 99.2. The Investor Presentation is also available on the “Investor Relations” page of the Company’s website (https://www.coastalstatesbank.com).

In accordance with General Instruction B.2 of Form 8-K, the information furnished in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing or other document pursuant to the Securities Act, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit

Number

Description

99.1

CoastalSouth Bancshares, Inc. Earnings Release dated October 19, 2026*

99.2

CoastalSouth Bancshares, Inc. Investor Presentation re: 3rd Quarter 2026 Results*

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CoastalSouth Bancshares, Inc.

Date: October 19, 2026

By:

/s/ Anthony P. Valduga

Anthony P. Valduga

Chief Financial Officer & Chief Operating Officer

EX-99.1

EX-99.1

Filename: coso-ex99_1.htm · Sequence: 2

EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

COASTALSOUTH BANCSHARES, INC. REPORTS EARNINGS FOR THIRD QUARTER 2026

ATLANTA, GA (October 19, 2026) – CoastalSouth Bancshares, Inc. (“CoastalSouth” or the “Company”) (NYSE: COSO), the holding company for Coastal States Bank (the “Bank” or "CSB"), today reported net income of $8.8 million, or $0.71 per diluted share, for the third quarter of 2026, compared to approximately $7.3 million, or $0.59 per diluted share, for the second quarter of 2026, and $6.7 million, or $0.54 per diluted share, for the third quarter of 2025. For the nine months ended September 30, 2026, the Company reported net income of $22.4 million, or $1.81 per diluted share, compared with $17.8 million, or $1.58 per diluted share, for the same period in 2025.

Additionally, on October 19, 2026, the Board of Directors of CoastalSouth Bancshares, Inc. declared a per share quarterly dividend of $0.06. The dividend will be paid to shareholders of record as of the close of business on November 10, 2026, the record date. The dividend shall be paid on November 24, 2026.

Commenting on the Company’s third quarter performance, President and Chief Executive Officer Stephen R. Stone stated, "We delivered record earnings of $0.71 per share in the third quarter, driven by strong loan production and robust gain-on-sale revenue from our government-guaranteed lending business. We saw outstanding loan production2 of $248.2 million during the third quarter, driving an $81.6 million increase in loans held-for-investment, or 19.0% annualized. The majority of production in the third quarter continued to come from the community bank, although our specialty lines of business also had a strong production quarter. As we head into the fourth quarter, we remain focused on building deep client relationships, maintaining disciplined underwriting, and investing in talented bankers across our footprint."

Third Quarter 2026 Performance Highlights:

•

Net income of $8.8 million or $0.71 per diluted share

•

Return on average assets ("ROAA") of 1.45%

•

Return on average equity ("ROAE") of 12.88%; Return on average tangible common equity1 ("ROATCE") of 13.12%

•

Net interest margin of 3.70%, an increase of 4 basis points from the second quarter of 2026

•

Total deposits increased $53.1 million, although core deposits1 were down quarter over quarter approximately $20.0 million which is primarily attributable to seasonal outflows associated with our property management clients

•

Loans held-for-investment ("LHFI") production2 of $248.2 million during the third quarter of 2026 led to LHFI growth of $81.6 million, up 19.0% annualized from the second quarter of 2026

•

Accumulated other comprehensive loss ("AOCL") increased by $8.3 million from prior quarter due to increased unrealized losses in our available-for-sale securities portfolio

•

Book value per share decreased $0.15, or 2.65% annualized, to $22.32 at September 30, 2026; Tangible book value1 per common share decreased $0.16, or 2.88% annualized, to $21.90 at September 30, 2026 from the second quarter of 2026

•

Share repurchase program launched May 1, 2026; 285,715 shares repurchased during the third quarter of 2026 with a weighted-average price of $27.10

•

Total shareholders' equity to total assets of 10.81%, compared to 11.14% as of the second quarter of 2026; Tangible common equity1 to tangible assets1 of 10.63%, compared to 10.96% as of June 30, 2026

•

Net charge-offs to average loans held for investment of 0.01%

•

Nonperforming assets to total assets of 0.62%; adjusted nonperforming assets to total assets1 of 0.45%

•

Allowance for credit losses ("ACL") on LHFI to total LHFI of 1.10%; total ACL on LHFI to nonperforming loans of 130.13%

1 Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10E.

2 The Company defines production as original loan commitment amount, which includes both funded and unfunded balances at the time of origination. As of September 30, 2026, these loans had funded balances of $148.9 million and unfunded commitments of $74.1 million.

1

Operating Highlights

Net interest income totaled $21.5 million for the third quarter of 2026, an increase of $862 thousand, or 4.2%, from $20.7 million for the second quarter of 2026, and an increase of $2.3 million, or 12.2% from the third quarter of 2025. The Company’s net interest margin increased by 4 basis points to 3.70% for the third quarter of 2026, compared to 3.66% for the second quarter of 2026, and increased 12 basis points from the third quarter of 2025.

The yield on average interest-earning assets for the third quarter of 2026 increased to 5.99% from 5.94% for the second quarter of 2026. This increase was primarily related to an overall yield increase in average interest-earning assets across the board, principally investment securities, LHFI and loans held-for-sale ("LHFS"). Compared to the third quarter of 2025, yields on earning assets decreased 15 basis points to 5.99% from 6.14%. The decrease was primarily attributable to interest rate cuts during 2025, notwithstanding $186.0 million of growth in average total earning assets.

The Company’s total cost of funds was 2.51% for the third quarter of 2026, an increase of 1 basis point compared to the second quarter of 2026, and a decrease of 28 basis points compared to the third quarter of 2025. Deposit costs were 2.48% for the third quarter of 2026, similar to 2.48% for the second quarter of 2026, and compared to 2.72% for the third quarter of 2025, a decrease of 24 basis points from the third quarter of 2025. The cost of interest-bearing deposits increased 2 basis points during the third quarter of 2026 to 2.97%, compared with 2.95% in the second quarter of 2026, reflecting continued repricing of our interest-bearing deposits to align with competitive rate pressure associated with the markets expectation of the Federal Reserve hiking rates during the third quarter of 2026.

Noninterest income totaled $3.3 million for the third quarter of 2026, an increase of $1.1 million, or 51.2%, from the second quarter of 2026, primarily attributable to an increase in gain on sale of government guaranteed loans by $1.3 million; offset by a net decrease in other categories within noninterest income. Noninterest expense totaled $13.7 million for the third quarter of 2026, an increase of $336 thousand, or 2.5%, from the second quarter of 2026. This increase was primarily due to higher salaries and employee benefits of $299 thousand, coupled with a net increase in other noninterest expense categories. The Company continues to focus on organic growth and expansion through banker recruiting across the franchise.

The Company’s effective tax rate for the third quarter of 2026 was 24.2%, compared to 17.0% for the second quarter of 2026, and 23.2% for the third quarter of 2025. The increase in effective tax rate from the second quarter of 2026 was primarily due to a reduction in the deferred tax asset related to state taxes during the third quarter of 2026 of approximately $641 thousand. Excluding discrete items related to this write-down and stock based compensation activity, the Company's effective tax rate at the end of the third quarter of 2026 was 20.05%.

Balance Sheet Trends

Total assets were $2.42 billion at September 30, 2026, an increase of approximately $117.2 million, or 5.1%, from $2.31 billion at December 31, 2025. LHFS were $142.4 million at September 30, 2026, a decrease of $28.5 million, or 16.7%, from $170.9 million at December 31, 2025. Gross LHFI were $1.79 billion at September 30, 2026, an increase of approximately $169.6 million, or 10.5%, from $1.62 billion at December 31, 2025.

Total deposits were $2.10 billion at September 30, 2026, an increase of $113.1 million, or 5.7%, from $1.99 billion at December 31, 2025. Noninterest-bearing deposits were $340.4 million at September 30, 2026, or 16.2% of total deposits, compared to $312.3 million, or 15.7% of total deposits, at December 31, 2025. Brokered certificates of deposit, a component of time deposits, were $257.0 million at September 30, 2026, as compared to $307.0 million at December 31, 2025, a decrease of $50.0 million, or 16.3%.

Credit Quality

During the third quarter of 2026, the Company recorded a recovery for credit losses of $429 thousand, compared to a provision for credit losses of $658 thousand and $653 thousand during the second quarter of 2026 and the third quarter of 2025, respectively. The recovery for credit losses recorded during the third quarter of 2026 was due to changes in the economic forecast and loan mix, offset by new loan production. The Company's annualized net charge-offs to average LHFI ratio was 0.01% for the third quarter of 2026 as compared to 0.01% and 0.03% during the second quarter of 2026 and the third quarter of 2025, respectively.

Nonperforming assets totaled $15.1 million, or 0.62% of total assets, at September 30, 2026 compared to $18.3 million, or 0.79% of total assets at December 31, 2025. The decrease in nonperforming loans was primarily due to a $4.2 million paydown of one nonaccrual senior housing loan, offset by modest additions to nonaccrual loans. Adjusted nonperforming assets3, which excludes the guaranteed portions of nonaccrual loans, was $10.9 million, or 0.45% of total assets, at September 30, 2026 compared to $14.2 million, or 0.62% of total assets, at December 31, 2025.

3 Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10E.

2

About CoastalSouth Bancshares, Inc.

CoastalSouth Bancshares, Inc. is a bank holding company headquartered in Atlanta, Georgia. Through our wholly owned subsidiary, Coastal States Bank, a South Carolina state-chartered commercial bank, we offer a full range of banking products and services designed for businesses, real estate professionals, and consumers looking for a deep and meaningful relationship with their bank. To learn more about Coastal States Bank, visit www.coastalstatesbank.com.

Contacts

Stephen R. Stone

Anthony P. Valduga

President and Chief Executive Officer

Chief Financial Officer / Chief Operating Officer

678-396-4605

investorrelations@coastalstatesbank.com

Forward-Looking Statements

Statements in this press release 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 meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans.

Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; potential impacts of any adverse developments in the banking industry, including any impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; changes in the interest rate environment, including changes to the federal funds rate; changes in prices, values and sales volumes of residential and commercial real estate; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; interest rate fluctuations, which could have an adverse effect on the Company’s profitability; a breach in security of our information systems, including the occurrence of cyber-attack incidents or deficiencies in cyber security; risks related to potential acquisitions; government actions or inactions, including a prolonged shutdown of the federal government, tariffs, or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; the effects of war or other conflicts, domestic civil unrest and tyranny, and changes in the overall geopolitical landscape; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized.

Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s 2025 Annual Report on Form 10-K under the Securities Exchange Act of 1934, as amended, filed with the Securities and Exchange Commission (the “SEC”) on March 12, 2026, and in other documents that we file with the SEC from time to time, which are available on the SEC’s website, http://www.sec.gov.

In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance.

Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement.

3

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Financial Highlights (unaudited)

Table 1A

As of and for the Three Months Ended

As of and for the Nine Months Ended

(dollars in thousands except

September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,

per share amounts)

2026

2026

2026

2025

2025

2026

2025

Selected Operating Data:

Interest income

$

34,878

$

33,558

$

32,568

$

33,006

$

32,890

$

101,004

$

94,707

Interest expense

13,351

12,893

12,824

13,143

13,700

39,068

40,680

Net interest income

21,527

20,665

19,744

19,863

19,190

61,936

54,027

(Recovery) provision for credit losses

(429

)

658

382

1,162

653

611

2,034

Noninterest income

3,329

2,202

1,967

2,295

2,100

7,498

5,776

Noninterest expense

13,710

13,374

13,044

12,262

11,856

40,128

35,367

Income tax expense

2,803

1,502

1,956

1,598

2,040

6,261

4,646

Net income

8,772

7,333

6,329

7,136

6,741

22,434

17,756

Share and Per Share Data:

Basic earnings per share

$

0.73

$

0.61

$

0.53

$

0.60

$

0.57

$

1.87

$

1.64

Diluted earnings per share

$

0.71

$

0.59

$

0.51

$

0.58

$

0.54

$

1.81

$

1.58

Dividends per share

$

0.05

$

0.05

$

0.05

$

n/a

$

n/a

$

0.15

$

n/a

Book value per share

$

22.32

$

22.47

$

21.94

$

21.66

$

20.91

$

22.32

$

20.91

Tangible book value per common share (1)

$

21.90

$

22.06

$

21.52

$

21.25

$

20.49

$

21.90

$

20.49

Shares of common stock outstanding

11,734,134

12,003,040

11,985,414

11,980,412

11,978,921

11,734,134

11,978,921

Weighted average diluted shares

outstanding

12,371,522

12,447,791

12,440,809

12,387,619

12,325,462

12,421,421

11,217,972

Selected Balance Sheet Data:

Total assets

$

2,423,766

$

2,420,993

$

2,348,547

$

2,306,586

$

2,255,389

$

2,423,766

$

2,255,389

Securities available-for-sale, at

fair value (2)

332,664

348,582

347,533

330,503

334,955

332,664

334,955

Gross loans held for investment

1,786,923

1,705,370

1,627,261

1,617,315

1,552,976

1,786,923

1,552,976

Loans held for sale

142,399

223,112

202,615

170,933

231,593

142,399

231,593

Allowance for credit losses

19,623

19,817

18,826

18,743

18,028

19,623

18,028

Goodwill and other intangible assets

6,307

6,246

6,243

6,262

6,186

6,307

6,186

Total deposits

2,100,746

2,047,671

2,057,144

1,987,684

1,949,672

2,100,746

1,949,672

Core deposits (1)

1,773,730

1,793,743

1,798,553

1,680,650

1,654,764

1,773,730

1,654,764

Other borrowings

30,000

75,000

-

30,000

25,000

30,000

25,000

Total shareholders' equity

261,920

269,703

262,923

259,529

250,438

261,920

250,438

(1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures” and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10E.

(2) The Company did not have securities held to maturity in any of the periods presented.

4

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Financial Highlights - continued (unaudited)

Table 1B

As of and for the Three Months Ended

As of and for the Nine Months Ended

September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,

(dollars in thousands)

2026

2026

2026

2025

2025

2026

2025

Performance Ratios:

Pre-tax, pre-provision net revenue

(PPNR) (1)

$

11,146

$

9,493

$

8,667

$

9,896

$

9,434

$

29,306

$

24,436

Return on average assets (ROAA) (2)

1.45

%

1.24

%

1.10

%

1.24

%

1.20

%

1.27

%

1.09

%

Return on average equity (2)

12.88

11.02

9.71

11.02

10.84

11.23

10.91

Return on average tangible common

equity (ROATCE) (1)(2)

13.12

11.23

9.90

11.24

11.07

11.44

11.17

Dividend payout ratio

6.92

8.33

9.69

n/a

n/a

8.16

n/a

Net interest rate spread (2)

2.99

2.97

2.90

2.87

2.83

2.95

2.76

Net interest margin (2)

3.70

3.66

3.59

3.60

3.58

3.65

3.48

Efficiency ratio

55.16

58.49

60.08

55.34

55.69

57.79

59.14

Noninterest income to average total

assets (2)

0.55

0.37

0.34

0.40

0.37

0.42

0.35

Noninterest expense to average total

assets (2)

2.26

2.27

2.27

2.13

2.11

2.27

2.17

Average interest-earning assets to average

interest-bearing liabilities

130.86

130.15

129.61

130.41

129.16

130.22

127.34

Average equity to average total assets

11.22

11.29

11.34

11.22

11.08

11.28

9.99

Asset Quality Data:

Net charge-offs to average LHFI (2)

0.01

%

0.01

%

0.01

%

0.00

%

0.03

%

0.01

%

0.03

%

Net charge-offs to total average loans (2)

0.01

0.01

0.01

0.00

0.03

0.01

0.03

Total allowance for credit losses

to total LHFI

1.10

1.16

1.16

1.16

1.16

1.10

1.16

Total allowance for credit losses

to total loans

1.02

1.03

1.03

1.05

1.01

1.02

1.01

Total allowance for credit losses

to nonperforming loans

130.13

108.16

103.54

102.39

127.03

130.13

127.03

Nonperforming loans to gross LHFI

0.84

1.07

1.12

1.13

0.91

0.84

0.91

Nonperforming assets to total assets

0.62

0.76

0.77

0.79

0.63

0.62

0.63

Adjusted nonperforming assets to total

assets (1)

0.45

0.61

0.62

0.62

0.43

0.45

0.43

Balance Sheet and Capital Ratios:

Loan-to-deposit ratio

91.84

%

94.18

%

88.95

%

89.97

%

91.53

%

91.84

%

91.53

%

Noninterest-bearing deposits to

total deposits

16.21

17.38

15.12

15.71

16.08

16.21

16.08

Total shareholders' equity to total assets

10.81

11.14

11.20

11.25

11.10

10.81

11.10

Tangible common equity to tangible

assets (1)

10.63

10.96

11.01

11.06

10.91

10.63

10.91

Tier 1 leverage ratio (3)

11.07

11.12

11.21

11.18

11.15

11.07

11.15

Common equity tier 1 ratio (3)

12.30

12.30

12.19

12.30

11.94

12.30

11.94

Tier 1 risk-based capital ratio (3)

12.30

12.30

12.19

12.30

11.94

12.30

11.94

Total risk-based capital ratio (3)

13.36

13.39

13.25

13.31

12.90

13.36

12.90

Other:

Number of branches

12

11

11

11

11

12

11

Number of full-time equivalent

employees

210

201

201

196

194

207

187

(1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures” and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10E.

(2) Represents annualized data.

(3) Ratios are for Coastal States Bank only. Ratios for September 30, 2026 are preliminary.

5

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Quarter End Balance Sheets (unaudited)

Table 2

September 30,

June 30,

March 31,

December 31,

September 30,

(dollars in thousands)

2026

2026

2026

2025

2025

Assets

Cash and due from banks

$

25,443

$

24,262

$

22,546

$

41,538

$

20,088

Federal funds sold

19,775

9,960

40,011

38,229

6,191

Investment securities (1)

341,590

359,635

355,014

339,262

342,990

Loans held for sale (LHFS)

142,399

223,112

202,615

170,933

231,593

Loans held for investment (LHFI)

1,786,923

1,705,370

1,627,261

1,617,315

1,552,976

Allowance for credit losses on LHFI

(19,623

)

(19,817

)

(18,826

)

(18,743

)

(18,028

)

Loans held for investment, net

1,767,300

1,685,553

1,608,435

1,598,572

1,534,948

Bank-owned life insurance

49,694

49,218

48,752

48,296

47,833

Premises, furniture and equipment, net

18,378

18,611

18,810

18,122

18,186

Deferred tax asset

17,613

15,740

16,910

16,370

16,262

Goodwill & intangible assets (2)

6,307

6,246

6,243

6,262

6,186

Other assets

35,267

28,656

29,211

29,002

31,112

Total assets

$

2,423,766

$

2,420,993

$

2,348,547

$

2,306,586

$

2,255,389

Liabilities and shareholders' equity

Liabilities

Deposits

Noninterest-bearing transaction accounts

$

340,427

$

355,941

$

311,054

$

312,251

$

313,604

Interest-bearing transaction accounts

213,146

194,896

235,422

214,620

198,753

Savings and money market

800,988

772,809

775,962

673,609

634,826

Time deposits

746,185

724,025

734,706

787,204

802,489

Total deposits

2,100,746

2,047,671

2,057,144

1,987,684

1,949,672

Federal Home Loan Bank of

Atlanta advances

30,000

75,000

-

30,000

25,000

Other liabilities

31,100

28,619

28,480

29,373

30,279

Total liabilities

2,161,846

2,151,290

2,085,624

2,047,057

2,004,951

Shareholders' equity

Voting common stock

11,734

12,003

11,853

10,868

10,449

Nonvoting common stock

-

-

132

1,112

1,530

Capital surplus

181,518

188,851

190,160

189,882

189,654

Accumulated income

87,489

79,324

72,602

66,886

59,750

Accumulated other comprehensive loss

(18,821

)

(10,475

)

(11,824

)

(9,219

)

(10,945

)

Total shareholders' equity

261,920

269,703

262,923

259,529

250,438

Total liabilities and shareholders' equity

$

2,423,766

$

2,420,993

$

2,348,547

$

2,306,586

$

2,255,389

(1) No ACL on investment securities was recognized for the periods presented; includes securities available-for-sale and non-marketable equity securities.

(2) Includes commercial mortgage servicing rights of approximately $1.4 million, $1.3 million, $1.3 million, $1.3 million, and $1.2 million at September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025, respectively.

6

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Statements of Operations (unaudited)

Table 3

Three Months Ended

Nine Months Ended

September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,

(dollars in thousands)

2026

2026

2026

2025

2025

2026

2025

Interest income

Interest on cash and due from banks

$

132

$

121

$

125

$

109

$

129

$

378

$

375

Interest on federal funds sold

486

409

792

624

616

1,687

2,277

Interest and dividends on investment

securities

4,066

3,892

3,611

3,734

4,125

11,569

11,800

Interest and fees on LHFS

2,781

3,162

2,915

3,771

3,422

8,858

9,537

Interest and fees on LHFI

27,413

25,974

25,125

24,768

24,598

78,512

70,718

Total interest income

34,878

33,558

32,568

33,006

32,890

101,004

94,707

Interest expense

Deposits

12,835

12,545

12,592

12,925

13,274

37,972

39,355

Other borrowings

516

348

232

218

426

1,096

1,325

Total interest expense

13,351

12,893

12,824

13,143

13,700

39,068

40,680

Net interest income

21,527

20,665

19,744

19,863

19,190

61,936

54,027

(Recovery) provision for credit losses

(429

)

658

382

1,162

653

611

2,034

Net interest income after provision for

credit losses

21,956

20,007

19,362

18,701

18,537

61,325

51,993

Noninterest income

Mortgage banking related income

375

403

394

330

299

1,172

846

Interchange and card fee income

244

256

273

230

238

773

761

Service charges on deposit accounts

268

236

232

256

208

736

634

Bank-owned life insurance

476

466

456

462

461

1,398

1,349

Gain on sale of government guaranteed

loans

1,558

307

337

682

613

2,202

878

Other noninterest income

408

534

275

335

281

1,217

1,308

Total noninterest income

3,329

2,202

1,967

2,295

2,100

7,498

5,776

Noninterest expense

Salaries and employee benefits

8,613

8,314

8,046

7,644

6,985

24,973

20,676

Occupancy and equipment

944

875

886

864

850

2,705

2,452

Data processing

560

682

655

640

647

1,897

1,924

Other professional services

503

632

595

391

571

1,730

2,237

Software and other technology expense

894

861

826

808

788

2,581

2,210

Regulatory assessment

353

308

371

369

419

1,032

1,124

Other noninterest expense

1,843

1,702

1,665

1,546

1,596

5,210

4,744

Total noninterest expense

13,710

13,374

13,044

12,262

11,856

40,128

35,367

Net income before taxes

11,575

8,835

8,285

8,734

8,781

28,695

22,402

Income tax expense

2,803

1,502

1,956

1,598

2,040

6,261

4,646

Net income

$

8,772

$

7,333

$

6,329

$

7,136

$

6,741

$

22,434

$

17,756

7

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

QTD Average Balances and Yields/Rates (unaudited)

Table 4

Three Months Ended

September 30, 2026

June 30, 2026

September 30, 2025

Average

Yield/

Average

Yield/

Average

Yield/

(dollars in thousands)

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Interest

Rate

Earning assets:

Cash and due from banks

$

23,841

$

132

2.20

%

$

23,889

$

121

2.03

%

$

21,058

$

129

2.43

%

Federal funds sold

51,509

486

3.74

%

44,172

409

3.71

%

52,240

616

4.68

%

Investment securities

356,044

4,066

4.53

%

358,658

3,892

4.35

%

339,619

4,125

4.82

%

Loans held for sale

145,169

2,781

7.60

%

170,135

3,162

7.45

%

167,424

3,422

8.11

%

Loans held for investment

1,733,109

27,413

6.28

%

1,668,045

25,974

6.25

%

1,543,363

24,598

6.32

%

Total earning assets

2,309,672

34,878

5.99

%

2,264,899

33,558

5.94

%

2,123,704

32,890

6.14

%

Noninterest-earning assets:

Allowance for credit losses on LHFI

(19,815

)

(18,834

)

(17,504

)

Bank-owned life insurance

49,414

48,944

47,569

Premises, furniture and equipment, net

18,538

18,760

18,241

Deferred tax asset

16,226

16,702

17,159

Goodwill & intangible assets

6,235

6,229

6,176

Other assets

27,919

27,734

30,633

Total noninterest-earning assets

98,517

99,535

102,274

Total assets

$

2,408,189

$

2,364,434

$

2,225,978

Interest-bearing liabilities:

Interest-bearing deposits

$

1,712,756

$

12,835

2.97

%

$

1,704,027

$

12,545

2.95

%

$

1,631,767

$

13,274

3.23

%

Federal Home Loan Bank of

Atlanta advances

52,175

516

3.92

%

36,209

348

3.85

%

272

3

4.38

%

Subordinated debt, net

-

-

0.00

%

-

-

0.00

%

12,191

423

13.77

%

Total interest-bearing liabilities

1,764,931

13,351

3.00

%

1,740,236

12,893

2.97

%

1,644,230

13,700

3.31

%

Noninterest-bearing liabilities:

Noninterest-bearing deposits

343,110

328,644

306,133

Other liabilities

29,996

28,580

28,927

Total noninterest-bearing liabilities

373,106

357,224

335,060

Shareholders' equity

270,152

266,974

246,688

Total liabilities and shareholders' equity

$

2,408,189

$

2,364,434

$

2,225,978

Net interest income

$

21,527

$

20,665

$

19,190

Net interest spread

2.99

%

2.97

%

2.83

%

Net interest margin

3.70

%

3.66

%

3.58

%

Cost of total deposits (1)

2.48

%

2.48

%

2.72

%

Cost of total funding (1)

2.51

%

2.50

%

2.79

%

(1) Includes noninterest-bearing deposits.

8

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

YTD Average Balances and Yields/Rates (unaudited)

Table 5

Nine Months Ended

September 30, 2026

September 30, 2025

Average

Yield/

Average

Yield/

(dollars in thousands)

Balance

Interest

Rate

Balance

Interest

Rate

Earning assets:

Cash and due from banks

$

24,180

$

378

2.09

%

$

21,509

$

375

2.33

%

Federal funds sold

60,421

1,687

3.73

%

67,659

2,277

4.50

%

Investment securities

352,870

11,569

4.38

%

337,852

11,800

4.67

%

Loans held for sale

157,918

8,858

7.50

%

157,409

9,537

8.10

%

Loans held for investment

1,673,572

78,512

6.27

%

1,493,081

70,718

6.33

%

Total earning assets

2,268,961

101,004

5.95

%

2,077,510

94,707

6.09

%

Noninterest-earning assets:

Allowance for credit losses on LHFI

(19,136

)

(17,245

)

Bank-owned life insurance

48,952

47,123

Premises, furniture and equipment, net

18,586

18,044

Deferred tax asset

16,367

17,379

Goodwill & intangible assets

6,245

6,224

Other assets

27,641

29,935

Total noninterest-earning assets

98,655

101,460

Total assets

$

2,367,616

$

2,178,970

Interest-bearing liabilities:

Interest-bearing deposits

$

1,704,661

$

37,972

2.98

%

$

1,608,583

$

39,355

3.27

%

Federal funds purchased

-

-

0.00

%

13

1

10.28

%

Federal Home Loan Bank of

Atlanta advances

37,784

1,096

3.88

%

3,809

131

4.60

%

Revolving commercial line of credit, net

-

-

0.00

%

5,141

300

7.80

%

Subordinated debt, net

-

-

0.00

%

13,882

893

8.60

%

Total interest-bearing liabilities

1,742,445

39,068

3.00

%

1,631,428

40,680

3.33

%

Noninterest-bearing liabilities:

Noninterest-bearing deposits

329,028

301,997

Other liabilities

29,002

27,944

Total noninterest-bearing liabilities

358,030

329,941

Shareholders' equity

267,141

217,601

Total liabilities and shareholders' equity

$

2,367,616

$

2,178,970

Net interest income

$

61,936

$

54,027

Net interest spread

2.95

%

2.76

%

Net interest margin

3.65

%

3.48

%

Cost of total deposits (1)

2.50

%

2.75

%

Cost of total funding (1)

2.52

%

2.81

%

(1) Includes noninterest-bearing deposits.

9

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Loan Data (unaudited)

Table 6

As of the Quarter Ended

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

(dollars in thousands)

Amount

% of Total

Amount

% of Total

Amount

% of Total

Amount

% of Total

Amount

% of Total

Loans held for investment ("LHFI"):

Commercial Loans

Acquisition, development and

construction

$

134,395

7.5

%

$

144,436

8.5

%

$

130,398

8.0

%

$

119,352

7.4

%

$

106,787

6.9

%

Income producing commercial real

estate ("CRE")

449,103

25.1

416,965

24.5

376,260

23.1

378,179

23.4

371,670

23.9

Owner-occupied CRE

140,420

7.9

127,285

7.5

107,344

6.6

92,787

5.7

96,287

6.2

Senior housing

308,295

17.3

248,282

14.5

254,445

15.6

259,529

16.0

223,719

14.4

Commercial and industrial

113,656

6.4

139,313

8.1

138,964

8.6

145,380

9.0

135,039

8.7

Retail Loans

Marine vessels

320,682

17.9

313,230

18.4

307,746

18.9

312,096

19.3

318,246

20.5

Residential mortgages

203,476

11.4

202,768

11.9

202,503

12.5

199,991

12.4

190,220

12.2

Cash value life insurance line

of credit ("LOC")

93,210

5.2

89,305

5.2

86,610

5.3

87,172

5.4

90,115

5.8

Other consumer

23,686

1.3

23,786

1.4

22,991

1.4

22,829

1.4

20,893

1.4

Gross loans held for investment

$

1,786,923

100.0

%

$

1,705,370

100.0

%

$

1,627,261

100.0

%

$

1,617,315

100.0

%

$

1,552,976

100.0

%

Core LHFI

1,743,128

1,657,581

1,573,972

1,561,791

1,492,992

Acquired LHFI (1)

43,795

47,789

53,289

55,524

59,984

Gross loans held for investment

$

1,786,923

$

1,705,370

$

1,627,261

$

1,617,315

$

1,552,976

Allowance for credit losses on LHFI

19,623

19,817

18,826

18,743

18,028

Net loans held for investment

$

1,767,300

$

1,685,553

$

1,608,435

$

1,598,572

$

1,534,948

Total loans held-for-sale

142,399

223,112

202,615

170,933

231,593

Total loans

$

1,929,322

$

1,928,482

$

1,829,876

$

1,788,248

$

1,784,569

(1) Includes loans acquired through business combinations.

Nonperforming Assets (unaudited)

Table 7

As of the Quarter Ended

(dollars in thousands)

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

Nonaccrual loans

$

15,055

$

18,322

$

18,183

$

18,306

$

14,171

Past due loans 90 days and still accruing

25

-

-

-

21

Total nonperforming loans

$

15,080

$

18,322

$

18,183

$

18,306

$

14,192

Other real estate owned

-

-

-

-

-

Total nonperforming assets

$

15,080

$

18,322

$

18,183

$

18,306

$

14,192

Nonperforming loans to gross LHFI

0.84

%

1.07

%

1.12

%

1.13

%

0.91

%

Nonaccrual loans to total assets

0.62

%

0.76

%

0.77

%

0.79

%

0.63

%

Nonperforming assets to total assets

0.62

%

0.76

%

0.77

%

0.79

%

0.63

%

10

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Allowance for Credit Losses (unaudited)

Table 8

As of and for the Three Months Ended

As of and for the Nine Months Ended

September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,

(dollars in thousands)

2026

2026

2026

2025

2025

2026

2025

Allowance for credit losses on LHFI

Balance, beginning of period

$

19,817

$

18,826

$

18,743

$

18,028

$

17,497

$

18,743

$

17,118

Net charge-offs/(recoveries):

Commercial Loans

Acquisition, development and

construction

-

-

-

-

-

-

-

Income producing CRE

-

-

-

-

-

-

-

Owner-occupied CRE

-

-

-

-

-

-

-

Senior housing

-

-

-

-

-

-

-

Commercial and industrial

(5

)

4

(6

)

(4

)

(29

)

(7

)

(9

)

Retail Loans

Marine vessels

-

27

-

-

162

27

162

Residential mortgages

(1

)

(2

)

-

(29

)

(2

)

(3

)

(6

)

Cash value life insurance LOC

-

-

-

-

-

-

-

Other consumer

35

(4

)

47

20

(6

)

78

201

Total net charge-offs/(recoveries)

$

29

$

25

$

41

$

(13

)

$

125

$

95

$

348

(Recovery) provision for loan credit losses

(165

)

1,016

124

702

656

975

1,258

Balance, ending of period

$

19,623

$

19,817

$

18,826

$

18,743

$

18,028

$

19,623

$

18,028

Allowance for credit losses for unfunded commitments

Period beginning balance

$

3,856

$

4,214

$

3,956

$

3,496

$

3,499

$

3,956

$

2,720

(Recovery) provision for credit losses

(264

)

(358

)

258

460

(3

)

(364

)

776

Period ending balance

$

3,592

$

3,856

$

4,214

$

3,956

$

3,496

$

3,592

$

3,496

Balance, end of period - Allowance for credit

losses: LHFI and unfunded commitments

$

23,215

$

23,673

$

23,040

$

22,699

$

21,524

$

23,215

$

21,524

Total loans held for investment

$

1,786,923

$

1,705,370

$

1,627,261

$

1,617,315

$

1,552,976

$

1,786,923

$

1,552,976

Credit Analysis

Net charge-offs to average LHFI

0.01

%

0.01

%

0.01

%

0.00

%

0.03

%

0.01

%

0.03

%

Total allowance for credit losses on LHFI to

total LHFI

1.10

%

1.16

%

1.16

%

1.16

%

1.16

%

1.10

%

1.16

%

Total allowance for credit losses on LHFI to

nonaccrual loans

130.34

%

108.16

%

103.54

%

102.39

%

127.22

%

130.34

%

127.22

%

Total allowance for credit losses on LHFI to

total nonperforming loans

130.13

%

108.16

%

103.54

%

102.39

%

127.03

%

130.13

%

127.03

%

11

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Loan Risk Ratings (1) (2) (unaudited)

Table 9

As of the Quarter Ended

(dollars in thousands)

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

Acquisition, development and

construction (1)

Pass

$

134,395

$

144,436

$

130,398

$

119,352

$

106,787

Special mention

-

-

-

-

-

Substandard

-

-

-

-

-

Total acquisition, development

and construction

$

134,395

$

144,436

$

130,398

$

119,352

$

106,787

Income producing CRE (1)

Pass

$

448,028

$

416,501

$

375,791

$

377,711

$

370,788

Special mention

-

-

-

-

-

Substandard

1,075

464

469

468

882

Total income producing CRE

$

449,103

$

416,965

$

376,260

$

378,179

$

371,670

Owner-occupied CRE (1)

Pass

$

129,245

$

116,429

$

97,706

$

82,959

$

86,533

Special mention

2,461

2,485

2,509

2,739

3,579

Substandard

8,714

8,371

7,129

7,089

6,175

Total owner-occupied CRE

$

140,420

$

127,285

$

107,344

$

92,787

$

96,287

Senior housing (1)

Pass

$

297,434

$

233,501

$

239,788

$

236,816

$

205,330

Special mention

-

-

3,940

11,934

12,006

Substandard

10,861

14,781

10,717

10,779

6,383

Total senior housing

$

308,295

$

248,282

$

254,445

$

259,529

$

223,719

Commercial and industrial (1)

Pass

$

109,955

$

135,851

$

135,295

$

141,020

$

128,468

Special mention

-

-

141

212

2,402

Substandard

3,701

3,462

3,528

4,148

4,169

Total commercial and industrial

$

113,656

$

139,313

$

138,964

$

145,380

$

135,039

Marine vessels (2)

Performing

$

320,682

$

313,230

$

307,746

$

312,096

$

318,246

Nonperforming

-

-

-

-

-

Total marine vessels

$

320,682

$

313,230

$

307,746

$

312,096

$

318,246

Residential mortgages (2)

Performing

$

203,088

$

202,380

$

202,114

$

199,601

$

190,059

Nonperforming

388

388

389

390

161

Total residential mortgages

$

203,476

$

202,768

$

202,503

$

199,991

$

190,220

Cash value life insurance LOC (2)

Performing

$

93,210

$

89,305

$

86,610

$

87,172

$

90,115

Nonperforming

-

-

-

-

-

Total cash value life insurance

LOC

$

93,210

$

89,305

$

86,610

$

87,172

$

90,115

Other consumer (2)

Performing

$

23,661

$

23,786

$

22,991

$

22,829

$

20,872

Nonperforming

25

-

-

-

21

Total other consumer

$

23,686

$

23,786

$

22,991

$

22,829

$

20,893

Gross loans held for investment

$

1,786,923

$

1,705,370

$

1,627,261

$

1,617,315

$

1,552,976

(1) There were no commercial loans classified as doubtful.

(2) Retail loans are classified as either performing or nonperforming.

12

Non-GAAP Financial Measures

The measures entitled return on average tangible common equity, tangible book value per common share, tangible common equity, tangible assets, adjusted nonperforming assets to total assets, adjusted nonperforming assets, pre-tax, pre-provision net revenue ("PPNR"), tangible common equity to tangible assets and core deposits are not measures recognized under accounting principles generally accepted in the United States of America (“GAAP”) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are return on average shareholders’ equity, book value per share, total shareholders’ equity, total assets, total nonperforming assets to total assets, total nonperforming assets, net income, total common equity to total assets, and total deposits, respectively.

Management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view the Company’s performance using the same tools that management uses to evaluate the Company’s past performance and prospects for future performance. While management believes that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures should be considered as additional views of the way the Company’s financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies.

13

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Non-GAAP Reconciliations

Tangible Book Value per Common Share / Tangible Common Equity to Tangible Assets (unaudited)

Table 10A

As of

September 30,

June 30,

March 31,

December 31,

September 30,

(dollars in thousands, except per share data)

2026

2026

2026

2025

2025

Tangible Common Equity:

Total shareholders' equity

$

261,920

$

269,703

$

262,923

$

259,529

$

250,438

Less: Goodwill and intangibles

(6,307

)

(6,246

)

(6,243

)

(6,262

)

(6,186

)

Adjusted for: Mortgage servicing

rights

1,402

1,313

1,280

1,266

1,156

Tangible Common Equity

$

257,015

$

264,770

$

257,960

$

254,533

$

245,408

Common shares outstanding

11,734,134

12,003,040

11,985,414

11,980,412

11,978,921

Book value per common share

22.32

22.47

21.94

21.66

20.91

Tangible book value per common

share

21.90

22.06

21.52

21.25

20.49

Tangible assets:

Total assets

$

2,423,766

$

2,420,993

$

2,348,547

$

2,306,586

$

2,255,389

Less: Goodwill and intangibles

(6,307

)

(6,246

)

(6,243

)

(6,262

)

(6,186

)

Adjusted for: Mortgage servicing

rights

1,402

1,313

1,280

1,266

1,156

Tangible assets

$

2,418,861

$

2,416,060

$

2,343,584

$

2,301,590

$

2,250,359

Tangible common equity to

tangible assets

10.63

%

10.96

%

11.01

%

11.06

%

10.91

%

ROATCE (unaudited)

Table 10B

As of and for the Three Months Ended

As of and for the Nine Months Ended

September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,

(dollars in thousands)

2026

2026

2026

2025

2025

2026

2025

Net income

$

8,772

$

7,333

$

6,329

$

7,136

$

6,741

$

22,434

$

17,756

Average shareholders' equity

270,152

266,974

264,232

256,814

246,688

267,141

217,601

Return on average shareholders'

equity (1)

12.88

%

11.02

%

9.71

%

11.02

%

10.84

%

11.23

%

10.91

%

Average Tangible Common Equity:

Average shareholders' equity

$

270,152

$

266,974

$

264,232

$

256,814

$

246,688

$

267,141

$

217,601

Less: Average goodwill and

intangibles

(6,235

)

(6,229

)

(6,270

)

(6,166

)

(6,176

)

(6,245

)

(6,224

)

Adjusted for: Average mortgage

servicing rights

1,315

1,281

1,291

1,155

1,128

1,296

1,136

Average tangible common equity

$

265,232

$

262,026

$

259,253

$

251,803

$

241,640

$

262,192

$

212,513

Return on average tangible common (1)

equity

13.12

%

11.23

%

9.90

%

11.24

%

11.07

%

11.44

%

11.17

%

(1) Represents annualized data.

Adjusted Nonperforming Assets to Total Assets (unaudited)

Table 10C

As of

September 30,

June 30,

March 31,

December 31,

September 30,

(dollars in thousands)

2026

2026

2026

2025

2025

Total nonperforming assets

$

15,080

$

18,322

$

18,183

$

18,306

$

14,192

Total assets

2,423,766

2,420,993

2,348,547

2,306,586

2,255,389

GAAP-based nonperforming assets

to total assets

0.62

%

0.76

%

0.77

%

0.79

%

0.63

%

Total nonperforming assets

$

15,080

$

18,322

$

18,183

$

18,306

$

14,192

Adjusted for:

Guaranteed portions of nonaccrual

loans

(4,217

)

(3,542

)

(3,657

)

(4,089

)

(4,457

)

Adjusted nonperforming assets

$

10,863

$

14,780

$

14,526

$

14,217

$

9,735

Total assets

$

2,423,766

$

2,420,993

$

2,348,547

$

2,306,586

$

2,255,389

Adjusted nonperforming assets to

total assets

0.45

%

0.61

%

0.62

%

0.62

%

0.43

%

14

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

FINANCIAL TABLES

Non-GAAP Reconciliations

PPNR (unaudited)

Table 10D

As of and for the Three Months Ended

As of and for the Nine Months Ended

September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,

(dollars in thousands)

2026

2026

2026

2025

2025

2026

2025

Net income (GAAP-based)

$

8,772

$

7,333

$

6,329

$

7,136

$

6,741

$

22,434

$

17,756

Plus:

Income tax expense

2,803

1,502

1,956

1,598

2,040

6,261

4,646

(Recovery) provision for credit losses

(429

)

658

382

1,162

653

611

2,034

Pre-tax, pre-provision net revenue

$

11,146

$

9,493

$

8,667

$

9,896

$

9,434

$

29,306

$

24,436

Core Deposits (unaudited)

Table 10E

As of

September 30,

June 30,

March 31,

December 31,

September 30,

(dollars in thousands)

2026

2026

2026

2025

2025

Total Deposits

$

2,100,746

$

2,047,671

$

2,057,144

$

1,987,684

$

1,949,672

Less:

Brokered CDs

257,016

253,928

258,591

307,034

294,908

ICS money market One-Way Buy

70,000

-

-

-

-

Core deposits (1)

$

1,773,730

$

1,793,743

$

1,798,553

$

1,680,650

$

1,654,764

(1) The Company defines its core deposits as total deposits, less brokered certificates of deposit and IntraFi Cash Service ("ICS") One-Way Buy demand and money market deposits.

15

EX-99.2

EX-99.2

Filename: coso-ex99_2.htm · Sequence: 3

CoastalSouth Bancshares, Inc. Third Quarter 2025 Investor Presentation October 20, 2025 October 19, 2026 Third Quarter 2026 Investor Presentation Exhibit 99.2

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 meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this Investor Presentation should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this Investor Presentation and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; potential impacts of any adverse developments in the banking industry, including any impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; changes in the interest rate environment, including changes to the federal funds rate; changes in prices, values and sales volumes of residential and commercial real estate; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; interest rate fluctuations, which could have an adverse effect on the Company’s profitability; a breach in security of our information systems, including the occurrence of cyber-attack incidents or deficiencies in cyber security; risks related to potential acquisitions; government actions or inactions, including a prolonged shutdown of the federal government, tariffs, or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; the effects of war or other conflicts, domestic civil unrest and tyranny, and changes in the overall geopolitical landscape; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s 2025 Annual Report on Form 10-K under the Securities Act of 1933, as amended, filed with the Securities and Exchange Commission (the “SEC”) on March 12, 2026 and in other documents that we file with the SEC from time to time, which are available on the SEC’s website, http://www.sec.gov. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this Investor Presentation or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this Investor Presentation are qualified in their entirety by this cautionary statement.

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 provides investors with information useful in understanding our financial performance, performance trends and financial position. Our management uses these measures for internal planning and forecasting purposes and we believe that our presentation and discussion, together with the accompanying reconciliations, allows investors, security analysts and other interested parties to view our performance and the factors and trends affecting our business in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP measures and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure to evaluate the Company. Non-GAAP financial measures have inherent limitations, are not uniformly applied and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. The measures entitled return on average tangible common shareholders' equity, tangible book value per common share, tangible common equity, tangible assets, adjusted nonperforming assets to total assets, adjusted nonperforming assets, pre-tax pre-provision net revenue ("PPNR"), tangible common equity to tangible assets, core deposits and average core deposits are not measures recognized under accounting principles generally accepted in the United States of America (“GAAP”) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are return on average shareholders’ equity, book value per share, total shareholders’ equity, total assets, total nonperforming assets to total assets, total nonperforming assets, net income, total common equity to total assets, and total deposits, respectively. The delivery of this Investor Presentation will not, under any circumstances, create an implication that there has been no change in the affairs of the Company since the date of this Investor Presentation. The Company is not making any implied or express representation or warranty as to the accuracy or completeness of the information summarized herein or made available in connection with any further investigation of the Company. The Company expressly disclaims any and all liability which may be based on such information, errors therein or omission therefrom.

Company Overview Total Assets $2.42 Billion Total Deposits $2.10 Billion Total Loans $1.93 Billion Tier 1 Leverage(1) 11.07% CET1(1) 12.30% # of Banking Offices 12 Best-in-class growth profile Strong risk management and unwavering focus on credit quality Established and efficient community banking franchise Diversified business lines Highly desirable community banking markets Capital ratios are for Coastal States Bank, a wholly-owned subsidiary of CoastalSouth Bancshares, Inc.; preliminary. CSB Strategic Expansion CSB Branch

Diluted EPS QoQ Annualized LHFI Growth Return on Average Tangible Common Equity(1) Return on Average Assets Net Interest Margin Quarterly Highlights: Q3 2026 Non-GAAP financial measure; for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measure see the Appendix. Billion in Total Assets Loan / Deposit Ratio QoQ TBV (1) per Share Annualized Growth Net Charge-Offs to Average LHFI Adj. Non-Performing Assets(1) / Total Assets $0.71 3.70% -2.88% $2.42 19.0% 91.84% 0.45% 13.12% 0.01% 1.45%

Loans Held for Investment Production $248.2 million in gross LHFI production for Q3 2026. As of September 30, 2026, these loans had a funded balance of $148.9 million and unfunded commitments of $74.1 million.(3) Community bank and senior housing (SHG) loan production was approximately 54% and 23% of total production for the quarter. SHG had no production in Q2 with deals pulling through in Q3. Interest rate environment may temper loan production in Q4. The weighted average coupon for new production was 6.93% for Q3 2026, 65 bps higher than the weighted average yield of 6.28% for the LHFI portfolio for Q3 2026. The Company defines production as original loan commitment, which includes both funded and unfunded loan commitments. Specialty LOBs within this chart include Marine Lending, Senior Housing Lending, and Government Guaranteed Lending. The balances as of the end of the quarter include subsequent loan activity, such as loan sales or payments, that occurred during the quarter.

Loan Portfolio Loan portfolio is well diversified across loan types and geographies and managed by a seasoned team of bankers and credit officers. Conservative underwriting guidelines and loan structures help to mitigate risk. CRE and ADC concentrations were 253% and 53% at the end of Q3 2026, still well below regulatory guidelines. Non-owner-occupied office loan balances totaled $45.0 million or 2.52% of total LHFI at the end of the Q3 2026.  There are also $39.0 million of unfunded commitments on this portfolio. For Q3 2026, there were no CRE charge-offs and CRE nonperforming loans were $11.0 million or 0.61% of total LHFI. Ratios are for Coastal States Bank. CRE Concentration ratio defined as Construction & Development, Multifamily, and Non-Owner Occupied CRE loans divided by Total Regulatory Capital. ADC concentration ratio is defined as Construction & Development loans divided by Total Regulatory Capital. Loan categories and total regulatory capital are determined using FFIEC call report guidelines. Ratios for the current quarter are preliminary. $1.9 B

Deposit Portfolio Reflects the effect of non-interest-bearing deposits. Non-GAAP financial measure; for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measure see the Appendix. Average total deposits increased $23.2 million compared to the prior quarter and increased $118.0 million compared to Q3 2025. Average core deposits(2) of $1.77 billion represented 86.4% of average total deposits at the end of Q3 2026. Average core deposits (2) decreased $13.3 million from Q2 2026 to Q3 2026 and grew $100.8 million since Q4 2025. Seasonal impact from property management customers drove decrease in core deposits. Interest-bearing deposit costs increased 2 bps compared to Q2 2026 and decreased 26 bps compared to Q3 2025.  Noninterest-bearing and interest-bearing transaction accounts were 27.5% of average total deposits during Q3 2026. MTD Average deposit balances sourced from Specialty Lines of Business totaled $59.0 million at the end of Q3 2026.

Investment Securities Metrics As of 9/30/2026 AFS Securities $ 332.7 Million Non-Marketable Equity Securities (1) $ 8.9 Million AFS as a % of portfolio 97.39% QTD Weighted Average Yield 4.53% Average Life 5.65 years Modified Duration 4.31     Securities Portfolio Key Metrics Estimated Short Term Cashflows   -100 Base 100 2026 $ 17.7 $ 15.4 $ 15.3 2027 $ 42.7 $ 39.1 $ 38.7 2028 $ 43.4 $ 47.3 $ 46.6 2029 $ 61.6 $ 54.4 $ 52.9 Total Cashflow $ 165.4 $ 156.2 $ 153.5 Total Cashflow / Total Portfolio 48% 46% 45%         Securities portfolio totaled $341.6 million at the end of Q3 2026 which represents approximately 14.1% of total assets. Portfolio is utilized to protect against lower rates but also provide sufficient cash flow activity to either reinvest into the portfolio or to deploy for other balance sheet needs. Primarily consists of liquid mortgage-backed securities that can be pledged to the Federal Home Loan Bank of Atlanta or Federal Reserve. Corporate exposure primarily consists of bank-level subordinated debt purchases. (1) Non-marketable equity securities includes stock from Federal Home Loan Bank of Atlanta and Federal Reserve Bank of Richmond.

Capital *Q3 2026 regulatory capital ratios are preliminary. (1) Capital ratios presented are for Coastal States Bank. (2) Non-GAAP financial measure; for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measure see the Appendix. Share repurchase program continued with 285,715 shares repurchased during Q3 with average price of $27.10. Paid quarterly dividend to shareholders in August 2026; declared a $0.06 quarterly dividend on October 19, 2026. Tier 1 leverage ratio decreased 5 bps to 11.07% as compared to Q2 2026; tangible common equity to tangible assets(2) decreased 33 bps to 10.63%, as compared to Q2 2026. Accumulated other comprehensive income decreased by $8.3 million to a loss of $18.8 million due to declines in securities valuations due to the interest rate environment. Regulatory capital ratios remain strong, providing opportunities for additional organic growth or potential acquisitions. CAGR 6.9%

Net Interest Margin (1) Annualized Net interest income increased $862 thousand compared to Q2 2026 and increased $2.3 million compared to Q3 2025. Net interest margin improved 4 bps due to a modest increase in yields on interest earning assets, offset by a slight increase in cost of interest-bearing liabilities. The yield on investment securities was positively impacted by $221 thousand related to a called corporate security.

Noninterest Income Gain on sale of government guaranteed loans (“GGL”) was $1.6 million for Q3 2026. QTD GGL loan production was $26.8 million. At the end of Q3 2026, there are approximately $10.3 million loans, including $9.8 million in multi-disbursement structures, that have been closed but have not been sold into the secondary market. The guaranteed portions of these loans may be saleable once fully funded. Other noninterest income revenue streams were stable compared to the prior quarter.

Noninterest Expense Salaries and benefits increased during the third quarter due to increased commissions payable on production, the impact of hiring new bankers, and other compensation accrual adjustments. The Company continues to focus on organic growth and expansion through banker recruitment, with a focus on strong local connections and deep client relationships. During the quarter, the Company added nine revenue producers across the franchise.  In total, the number of FTE’s increased 4% during the quarter. QTD efficiency ratio improved 333 bps since Q2 2026 to 55.2%.

Credit Quality NPAs decreased this quarter, due primarily to a paydown on one of our nonaccrual senior housing loans. NPAs consist of $7.0 million in senior housing loans, down from $10.8 million at Q2 2026, $6.3 million in government guaranteed loans (with approximately $4.2 million of guaranteed balances), and $1.8 million of other loan categories. The Company continues to pursue least-cost resolution strategies; Net charge-offs continue to be minimal. Higher risk loans, defined as special mention plus substandard accruing, were stable between Q2 2026 and Q3 2026.

Allowance for Credit Losses The coverage level of the Allowance for Credit Losses (“ACL”) decreased during the last quarter due primarily to changes in the economic forecast assumptions and loan mix, offset by increases in loan volume. The Company carries an ACL on Loans for $19.6 million and an ACL for Unfunded Commitments of $3.6 million at September 30, 2026.

Appendix

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 shareholder value. Key drivers of COSO’s success include: Unwavering commitment to hiring the best local bankers. Valuing our entrepreneurial culture and ensuring our daily actions are aligned with vision and values. Communicating clearly and candidly. Providing exceptional service and innovative solutions.

Business Evolution & Milestones Government Guaranteed Lending business; loans made through U.S. Small Business Administration (“SBA”) and United States Department of Agriculture (“USDA”) programs As of March 31, 2018 As of March 31, 2021 Early History & Recapitalization Expansion in Key Southeast MSAs Positioning for Future Growth Founded in August 2004 in Hilton Head Island, SC Opened Savannah, GA branch; completed $15 million subordinated debt offering Hired new management team (formerly of C&S) in conjunction with $62 million recapitalization; added GGL (1) & Senior Housing businesses Acquired First Citizens Financial Corporation ($95 million in assets (2)) Completed $20 million common offering 2004 2017 2018 2019 2020 Acquired Cornerstone Bancshares, Inc. ($229 million in assets (3)); opened Alpharetta, GA and Sandy Springs, GA branches Repositioned Mt. Paran branch to Akers Mill, GA; added Marine Lending business 2021 2022 Completed $9 million common offering 2023 Opened Beaufort, SC branch; completed $12 million common offering 2024 Joined NYSE on July 2, 2025 with Initial Public Offering of $50.3 million, including underwriters' options 2025 2026 Expanded into Charleston, SC with addition of commercial banking team & new branch

Specialty Lines of Business Note: There was no senior housing production in Q2 2026.

Specialty Lines of Business * Includes $0.4 million of loans classified as held for sale at March 31, 2026.

Non-GAAP Reconciliation Annualized data. 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 Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands, except per share data) 2026 2026 2026 2025 2025 2026 2025 Tangible Common Equity:                             Total shareholders' equity $ 261,920 $ 269,703 $ 262,923 $ 259,529 $ 250,438 $ 261,920 $ 250,438 Less: Goodwill and intangibles (6,307) (6,246) (6,243) (6,262) (6,186) (6,307) (6,186) Adjusted for: Mortgage servicing rights 1,402 1,313 1,280 1,266 1,156 1,402 1,156 Tangible Common Equity $ 257,015 $ 264,770 $ 257,960 $ 254,533 $ 245,408 $ 257,015 $ 245,408 Common shares outstanding 11,734,134 12,003,040 11,985,414 11,980,412 11,978,921 11,734,134 11,978,921 Book value per common share 22.32 22.47 21.94 21.66 20.91 22.32 20.91 Tangible book value per common share 21.90 22.06 21.52 21.25 20.49 21.90 20.49 Tangible assets: Total assets $ 2,423,766 $ 2,420,993 $ 2,348,547 $ 2,306,586 $ 2,255,389 $ 2,423,766 $ 2,255,389 Less: goodwill and intangibles (6,307) (6,246) (6,243) (6,262) (6,186) (6,307) (6,186) Adjusted for: Mortgage servicing rights 1,402 1,313 1,280 1,266 1,156 1,402 1,156 Tangible assets $ 2,418,861 $ 2,416,060 $ 2,343,584 $ 2,301,590 $ 2,250,359 $ 2,418,861 $ 2,250,359 Tangible common equity to tangible assets 10.63% 10.96% 11.01% 11.06% 10.91% 10.63% 10.91% ROATCE / Adjusted ROATCE (unaudited)                   As of and for the Three Months Ended As of and for the Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 2026 2025 Net income $ 8,772 $ 7,333 $ 6,329 $ 7,136 $ 6,741 $ 22,434 $ 17,756 Average shareholders' equity 270,152 266,974 264,232 256,814 246,688 267,141 217,601 Return on average shareholders' equity (1) 12.88% 11.02% 9.71% 11.02% 10.84% 11.23% 10.91% Average Tangible Common Equity Average shareholders' equity $ 270,152 $ 266,974 $ 264,232 $ 256,814 $ 246,688 $ 267,141 $ 217,601 Less: Average goodwill and intangibles (6,235) (6,229) (6,270) (6,166) (6,176) (6,245) (6,224) Adjusted for: Average mortgage  servicing rights 1,315 1,281 1,291 1,155 1,128 1,296 1,136 Average tangible common equity $ 265,232 $ 262,026 $ 259,253 $ 251,803 $ 241,640 $ 262,192 $ 212,513 Return on average tangible common (1) shareholders' equity 13.12% 11.23% 9.90% 11.24% 11.07% 11.44% 11.17%

Non-GAAP Reconciliation (cont.) PPNR (unaudited)                       As of and for the Three Months Ended As of and for the Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 2026 2025 Net income (GAAP-based) $ 8,772 $ 7,333 $ 6,329 $ 7,136 $ 6,741 $ 22,434 $ 17,756 Plus: Income tax expense 2,803 1,502 1,956 1,598 2,040 6,261 4,646 Provision (recovery) for credit losses (429) 658 382 1,162 653 611 2,034 Pre-tax, pre-provision net revenue ("PPNR") $ 11,146 $ 9,493 $ 8,667 $ 9,896 $ 9,434 $ 29,306 $ 24,436 Core Deposits (unaudited)                       As of As of September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 2026 2025 Total Deposits $ 2,100,746 $ 2,047,671 $ 2,057,144 $ 1,987,684 $ 1,949,672 $ 2,100,746 $ 1,949,672 Less: Brokered CDs 257,016 253,928 258,591 307,034 294,908 257,016 294,908 One-way buy 70,000 - - - - 70,000 - Core deposits $ 1,773,730 $ 1,793,743 $ 1,798,553 $ 1,680,650 $ 1,654,764 $ 1,773,730 $ 1,654,764 Average Core Deposits (unaudited)                       As of As of September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 2026 2025 Average total deposits $ 1,712,756 $ 1,704,027 $ 1,697,024 $ 1,658,037 $ 1,631,767 $ 1,704,661 $ 1,608,583 Less: Average brokered CDs 256,382 243,992 281,752 307,213 291,011 260,616 285,269 Average one-way buy 24,131 - - - - 24,131 - Average core deposits $ 1,456,374 $ 1,460,035 $ 1,415,272 $ 1,350,824 $ 1,340,756 $ 1,444,045 $ 1,323,314 Adjusted Nonperforming Assets to Total Assets (unaudited)       As of and for the Three Months Ended As of and for the Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 2026 2025 Total nonperforming assets $ 15,080 $ 18,322 $ 18,183 $ 18,306 $ 14,192 $ 15,080 $ 14,192 Total assets 2,423,766 2,420,993 2,348,547 2,306,586 2,255,389 2,423,766 2,255,389 GAAP-based nonperforming assets to total assets 0.62% 0.76% 0.77% 0.79% 0.63% 0.62% 0.63% Total nonperforming assets $ 15,080 $ 18,322 $ 18,183 $ 18,306 $ 14,192 $ 15,080 $ 14,192 Adjusted for: Guaranteed portions of nonaccrual loans 4,217 3,542 3,657 4,089 4,457 4,217 4,457 Adjusted total nonperforming assets $ 10,863 $ 14,780 $ 14,526 $ 14,217 $ 9,735 $ 10,863 $ 9,735 Total assets $ 2,423,766 $ 2,420,993 $ 2,348,547 $ 2,306,586 $ 2,255,389 $ 2,423,766 $ 2,255,389 Adjusted nonperforming assets to total assets 0.45% 0.61% 0.62% 0.62% 0.43% 0.45% 0.43%

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