CoastalSouth Bancshares Reports 25.3% Increase in Net Income to $6.3 Million for Q1 2026

CoastalSouth Bancshares, Inc. reported a net income of $6.3 million for the first quarter of 2026, reflecting an increase of approximately 25.3% from the $5.0 million recorded in the same period of 2025. This growth was primarily driven by a rise in net interest income, which reached $19.7 million, up from $16.8 million year-over-year. The increase in net interest income was attributed to a higher average balance of interest-earning assets, despite a slight decrease in the yield on these assets. Total interest income rose to $32.6 million, compared to $30.0 million in the prior year, while interest expense decreased to $12.8 million from $13.3 million, contributing to an improved net interest margin of 3.59%, up from 3.38%.

The company's total assets increased by $42.0 million, or 1.8%, to $2.35 billion as of March 31, 2026, compared to $2.31 billion at the end of 2025. This growth was primarily driven by an increase in the loan portfolio, which rose to $1.83 billion, a 2.3% increase from the previous quarter. Loans held for investment (LHFI) increased to $1.63 billion, while loans held for sale (LHFS) also saw growth, reaching $202.6 million, up from $170.9 million at the end of 2025. The allowance for credit losses on loans was $18.8 million, representing 1.16% of LHFI, consistent with the previous quarter.

In terms of operational developments, CoastalSouth Bancshares has maintained a focus on expanding its loan offerings, particularly in commercial real estate and marine lending. The company reported a notable increase in its acquisition, development, and construction loans, which rose to $130.4 million, up 9.3% from the previous quarter. Additionally, the bank's total deposits increased by $69.5 million, or 3.5%, to $2.06 billion, with noninterest-bearing deposits comprising 15.1% of total deposits.

Looking ahead, CoastalSouth Bancshares expressed optimism regarding its growth trajectory, supported by a strong loan demand and a strategic focus on enhancing its product offerings. The company is also actively managing its liquidity and capital positions to ensure compliance with regulatory requirements while pursuing profitable growth opportunities. The bank's capital ratios remain robust, with a total risk-based capital ratio of 13.25% as of March 31, 2026, exceeding the regulatory minimum for well-capitalized institutions.