CoastalSouth Bancshares, Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a net income of $6.7 million for the quarter, down from $7.9 million in the same period last year. For the nine months ended September 30, 2025, net income increased to $17.8 million from $16.2 million in 2024. The decrease in quarterly net income was attributed to lower noninterest income, particularly a significant drop in gains from the sale of government guaranteed loans, alongside a higher effective tax rate despite an increase in taxable income.
Total assets rose to $2.26 billion as of September 30, 2025, marking a 7.5% increase from $2.10 billion at the end of 2024. This growth was primarily driven by an increase in loans held for investment, which reached $1.55 billion, up 10.2% from $1.41 billion at year-end 2024. The company also reported a significant increase in loans held for sale, which grew to $231.6 million from $174.0 million, reflecting heightened mortgage refinance activity. The total loan portfolio composition included a mix of commercial and retail loans, with notable increases in marine vessel and residential mortgage loans.
In terms of operational metrics, CoastalSouth Bancshares saw its total deposits increase by $114.9 million, or 6.3%, to $1.95 billion. The company maintained a strong deposit base, with noninterest-bearing deposits accounting for 16.1% of total deposits. The allowance for credit losses on loans was $18.0 million, representing 1.16% of loans held for investment, slightly up from 1.21% at the end of 2024. Nonperforming loans decreased to $14.2 million, or 0.91% of gross loans, down from $15.0 million, or 1.06%, at year-end 2024.
Strategically, the company has focused on expanding its loan offerings and enhancing its operational efficiency. The average number of full-time equivalent employees increased to 194 from 181 year-over-year, reflecting the company's growth initiatives. CoastalSouth Bancshares continues to manage its interest rate risk through various hedging strategies, including interest rate swaps, to mitigate potential impacts on net interest income. The company remains optimistic about its growth trajectory, supported by a solid capital position and a diversified loan portfolio, while also navigating the challenges posed by changing economic conditions and interest rate environments.
About CoastalSouth Bancshares, Inc.
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