CoastalSouth Bancshares (COSO) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $6.7 million ($0.54 per diluted share), down from $7.9 million in Q3 2024 but up from $6.0 million in Q2 2025.

• Year-to-date net income reached $17.8 million, up from $16.2 million in the same period of 2024, driven by improved performance and absence of prior year nonrecurring losses.

• Total assets grew 7.5% to $2.26 billion at September 30, 2025, primarily from loan portfolio growth.

• Completed IPO in July 2025, raising $43.8 million ($30.2 million net proceeds), with $16 million contributed to the bank.

• Diluted EPS was $0.54, ROAA at 1.20%, and ROATCE at 11.07% for Q3 2025.

Financial highlights

• Net interest income for Q3 2025 was $19.2 million, up 13.1% year-over-year and 6.2% sequentially, with net interest margin rising to 3.58%.

• Noninterest income for Q3 2025 was $2.1 million, down 29.1% year-over-year but up 17% sequentially, mainly due to gains on sale of government guaranteed loans.

• Noninterest expense for Q3 2025 was $11.9 million, up 9.5% year-over-year but down 2% sequentially.

• Efficiency ratio improved to 55.7%, down 516 bps from Q2 2025.

• Allowance for credit losses on loans was $18.0 million, stable over recent quarters, and 1.16% of total loans.

Outlook and guidance

• Management expects continued growth in loans and deposits, focusing on asset quality and capital adequacy.

• Regulatory capital ratios remain strong, supporting further balance sheet expansion.

• Management notes potential impacts from a protracted government shutdown on loan sales in Q4 2025.

• Management is expanding market presence and recruiting new bankers amid increased M&A activity.