CoastalSouth Bancshares (COSO) Registration Filing summary

Company overview and business model

• Operates as a bank holding company with a community banking presence in high-growth Southeast markets and four national specialty lending lines: Senior Housing, Marine Lending, Government Guaranteed Lending, and Mortgage Banker Finance.

• Focuses on relationship-based banking for businesses, real estate professionals, and consumers, leveraging specialty lines for scalability and diversification.

• Management team has over 200 years of combined experience and a strong track record in acquisitions and organic growth.

• Branch network includes 11 locations across Atlanta, Savannah, and the South Carolina Lowcountry, with a strategy to expand through de novo branches and acquisitions.

Financial performance and metrics

• Total assets grew from $413.5 million in 2016 to $2.2 billion as of March 31, 2025.

• Five-year CAGR: loans 23.6%, deposits 25.0%, revenue 13.7%, net income 53.1%, adjusted net income 63.3%.

• ROAA increased from 0.67% (2020) to 1.16% (LTM March 2025); ROATCE from 6.97% to 13.36%.

• Net interest margin above 3.28% over five years; efficiency ratio below 60% for the last three years.

• Nonperforming assets reduced from 3.09% (2016) to 0.70% (March 2025); net charge-offs averaged 0.04% of loans over five years.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used for working capital and general corporate purposes, including organic growth, strategic acquisitions, branch expansion, and debt repayment.

• Management has broad discretion over capital allocation; a significant portion may be contributed to the Bank.