CoastalSouth Bancshares, Inc.

CoastalSouth Bancshares, Inc. is a bank holding company headquartered in Atlanta that operates Coastal States Bank, a South Carolina-chartered commercial bank serving retail and business customers across the Lowcountry of South Carolina, Savannah, and metro Atlanta. It combines community banking with four specialty lending platforms—Senior Housing, Marine Lending, Government Guaranteed Lending, and Mortgage Banker Finance—plus a mortgage origination subsidiary focused on residential loans.

1 254,0 %

+6,4 %

— CoastalSouth Bancshares, Inc.
%
Community banking35% Deposit accounts, relationship banking, and everyday banking services for local businesses and individuals.
Commercial real estate and construction lending30% ADC, income-producing CRE, and owner-occupied CRE loans originated in local markets.
Specialty lending platforms20% National niche lending businesses including senior housing, marine, government-guaranteed, and MBF.
Residential mortgage banking10% Origination and sale of single-family residential mortgages, with some loans retained.
Other banking income5% Fee income and other noninterest revenue tied to banking services and loan activity.

The core customer base is small- to medium-sized businesses and individuals in the bank’s branch markets, where the...

  • Local small- and medium-sized businessesprimary

    Borrowers and depositors in the branch markets that use relationship banking, operating accounts, and tailored commercial loans.

  • Individuals and householdsprimary

    Retail customers using deposits and residential mortgage products, including loans originated through the mortgage subsidiary.

  • Commercial real estate borrowersprimary

    Developers and property owners seeking ADC, income-producing CRE, and owner-occupied CRE financing.

  • Specialty lending customerssecondary

    National borrowers in senior housing, marine, and government-guaranteed lending that need niche underwriting expertise.

  • Mortgage originatorssecondary

    Non-bank mortgage lenders that use MBF for short-term warehouse funding before secondary-market takeout.

The company’s branch-based franchise is concentrated in three primary markets: the Lowcountry of South Carolina,...

  • •11 retail branches across three primary Southeast markets
  • •Lowcountry of South Carolina is a core deposit and lending base
  • •Savannah, Georgia supports community banking and CRE activity
  • •Metro Atlanta, Georgia expands access to a larger commercial market
  • •Specialty lending platforms operate nationally beyond branch markets

The strategy is to grow through disciplined de novo branch openings and selective acquisitions while preserving a...

01
De novo branch expansionmedium-term

Adds deposits, loans, and local market presence while preserving the company’s community banking model.

02
Specialty lending growthmedium-term

Diversifies the loan book and creates national lending opportunities beyond the branch footprint.

03
Relationship-based customer retentionshort-term

Deep local relationships support deposit stickiness, cross-sell, and lower customer churn.

Credit quality is tied to local commercial real estate, construction, and specialty lending exposures, which can weaken...

high

Economic and market downturn

A weaker economy can reduce borrowing demand and increase credit losses across commercial and retail portfolios.

Scope
Local business borrowers, CRE, and specialty lending
Materiality
high
high

Commercial real estate and construction credit risk

ADC and CRE loans are exposed to project delays, valuation declines, and borrower refinancing risk.

Scope
Local markets and development lending
Materiality
high
high

Mortgage warehouse lending risk

MBF relies on short-term funding and secondary-market takeout for originated mortgages.

Scope
Nationwide non-bank mortgage originators
Materiality
medium
high

Cybersecurity and data breach risk

Banking operations depend on secure systems and customer data, making cyber incidents operationally disruptive.

Scope
Customer data, payments, and loan servicing
Materiality
medium
medium

Key-person and relationship concentration risk

Customer relationships are tied to experienced employees, so turnover can lead to lost business.

Scope
Local commercial and specialty relationships
Materiality
medium
Allowance for credit losses
Provision expense and net income
Fair value measurements
Balance sheet values and noninterest income/expense
Stock-based compensation
Operating expense and diluted EPS
Income tax estimates
Net income and effective tax rate

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: 28/04/2026