CoastalSouth Bancshares (COSO) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $7.9 million ($0.75 per diluted share), up from $5.9 million ($0.56) in Q2 2024 and $4.8 million ($0.49) in Q3 2023.

• For the nine months ended September 30, 2024, net income was $16.2 million ($1.55 per diluted share), compared to $17.3 million ($1.83) for the same period in 2023; adjusted EPS was $1.81 excluding a $2.7 million AFS securities loss in Q1 2024.

• Quarterly annualized ROAA was 1.47%, up from 1.15% in Q2 2024.

• Opened a new branch in Beaufort, SC, marking expansion into northern Beaufort County.

Financial highlights

• Net interest income for Q3 2024 was $17.0 million, up from $16.7 million in Q2 2024 and $15.8 million in Q3 2023.

• Net interest margin was 3.32% in Q3 2024, down from 3.43% in Q2 2024 and 3.36% in Q3 2023.

• Efficiency ratio improved to 54.35% from 58.24% in Q2 2024 and 58.39% in Q3 2023.

• Noninterest income rose to $3.0 million in Q3 2024, driven by a $1.3 million gain on sale of GGL loans.

• Total assets reached $2.129 billion at September 30, 2024, up from $2.116 billion at June 30, 2024, and $1.998 billion at September 30, 2023.

Outlook and guidance

• Management remains focused on profitable growth and maintaining earnings momentum despite a competitive environment for loans and deposits.

• The FOMC has begun lowering rates, which has slowed the decline in fair value of AFS securities, though market volatility persists.