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 local market knowledge and scalable specialty lines.

• Management team has over 200 years of combined experience and a strong track record in organic and acquisitive growth, with 16 acquisitions since 2010.

• Emphasizes a culture of service, community engagement, and a differentiated brand, with a mission to build meaningful relationships and support local communities.

• Scarcity value as one of the few independent banks in its asset range ($1.5B–$5B) in Georgia and South Carolina, positioned for further growth amid market consolidation.

Financial performance and metrics

• Total assets grew from $413.5M (2016) to $2.2B (Q1 2025); total loans reached $1.47B and deposits $1.94B 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%, tangible book value per share 11.2%.

• Q1 2025 net income was $5.05M, with ROAA of 0.97% and ROATCE of 10.52%.

• Net interest margin for Q1 2025 was 3.38%; efficiency ratio was 61.26%.

• Nonperforming assets to total assets at 0.70% (Q1 2025); net charge-offs averaged 0.04% over five years.

Use of proceeds and capital allocation

• Net proceeds of ~$33.7M (or ~$41.9M if underwriters' option exercised) to be used for working capital, organic growth, strategic acquisitions, branch expansion, and debt repayment.

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