CoastalSouth Bancshares (NASDAQ: COSO) is a community banking company that operates through its subsidiary Coastal States Bank, originating loans and accepting deposits primarily within its local market area. The company makes money on the spread between interest earned on loans and investments and interest paid on deposits and borrowings, supplemented by noninterest income from mortgage originations, gain on sale of government guaranteed loans, interchange and card fees, and service charges. Gross loans held for investment totaled $1.617B as of December 31, 2025, up from $1.409B as of December 31, 2024, with commercial loans representing 61.5% and retail loans 38.5% of the portfolio. Net income was $24.9M for FY2025, compared to $21.9M for FY2024. The bank carries a relationship-driven model, with key employees maintaining direct customer ties. Total capital ratio at Coastal States Bank was 13.31% as of December 31, 2025, well above the 10% minimum for well-capitalized depository institutions.

Revenue model

Net interest income from loans and investments, with noninterest income from mortgage originations, gain on sale of government guaranteed loans, interchange and card fees, bank-owned life insurance, and service charges on deposit accounts.

Products and services

Commercial loans (acquisition, development and construction; income-producing CRE; owner-occupied CRE; senior housing; commercial and industrial); retail loans (marine vessel loans, residential mortgages, cash value life insurance lines of credit, other consumer); deposit accounts (time deposits, money market, savings, demand); mortgage origination; government guaranteed loan sales.

Customers and end markets

Small and medium-sized enterprises; commercial real estate owners and developers; senior housing facility operators; individual consumers including marine vessel buyers and residential mortgage borrowers; local businesses and residents within the company's primary market area.

Value-chain role

Direct lender and deposit-taking community bank; relationship-driven origination model with key employees holding primary customer relationships.

Geographic exposure

Primary market area of the bank's local footprint, with limited exposure to out-of-market properties; specific states or metropolitan areas not enumerated in the filing excerpts.

Source: SEC 10-K, filed 2026-03-12

Industry: State Commercial Banks