CoastalSouth Bancshares, Inc. Reports Earnings for Fourth Quarter 2025

CoastalSouth Bancshares, Inc. Reports Earnings for Fourth Quarter 2025 CoastalSouth Bancshares, Inc. (“CoastalSouth” or the “Company”) (NYSE: COSO), the holding company for Coastal States Bank (the “Bank” or "CSB"), today reported net income of $7.1 million, or $0.58 per diluted share, for the fourth quarter of 2025, compared to approximately $6.7 million, or $0.54 per diluted share, for the third quarter of 2025, and $5.7 million, or $0.54 per diluted share, for the fourth quarter of 2024. For the year ended December 31, 2025, the Company reported net income of $24.9 million, or $2.16 per diluted share, compared with $21.9 million, or $2.09 per diluted share, for the year ended December 31, 2024. Commenting on the Company’s results, President and Chief Executive Officer, Stephen R. Stone stated, “We are pleased to report record net income for the year of $24.9 million and pre-tax pre-provision net revenue1 ("PPNR") of $34.3 million, which is an increase of 23.6% compared to December 31, 2024. We also produced over $776.0 million in loan commitments and grew core deposits1 by over $120.7 million." Mr. Stone also announced the Company's strategic expansion into the Charleston, SC market. "This expansion builds upon the strong foundation we have established in the Lowcountry and reflects our continued investment in this dynamic region,” said Stone. "CSB has assembled a locally based commercial banking team with extensive experience serving businesses throughout Charleston and the broader Lowcountry market. The team we have assembled, led by Edward Vaughan, Charleston Market President, will help us continue to drive strong loan and deposit growth." Fourth Quarter 2025 Performance Highlights: Net income of $7.1 million or $0.58 per diluted shareReturn on average assets ("ROAA") of 1.24%Return on average equity ("ROAE") of 11.02%; Return on average tangible common equity 1("ROATCE") of 11.24%Net interest margin of 3.60%, an increase of 2 basis points from the third quarter of 2025Efficiency ratio of 55.34% for the fourth quarter of 2025Loans held for investment ("LHFI") production 2 of $225.1 million during the fourth quarter of 2025 led to LHFI growth of $64.3 million, up 16.4% annualized from the third quarter of 2025Book value per share growth of $0.75, or 14.23% annualized, to $21.66 at December 31, 2025; Tangible book value 1 per share growth of $0.76, or 14.72% annualized, to $21.25 at December 31, 2025 from the third quarter of 2025Total shareholders' equity to total assets of 11.25%, compared to 11.10% as of the third quarter of 2025; Tangible common equity 1 to tangible assets 1 of 11.06%, compared to 10.91% at September 30, 2025Net charge-offs to average loans held for investment of 0.00%Nonperforming assets to total assets of 0.79%; adjusted nonperforming assets to total assets 1 of 0.62%Allowance for credit losses ("ACL") on LHFI to total LHFI of 1.16%; ACL on LHFI to nonperforming loans of 102.39% Operating Highlights Net interest income totaled $19.9 million for the fourth quarter of 2025, an increase of $673 thousand, or 3.5%, from $19.2 million for the third quarter of 2025 and an increase of $3.6 million, or 22.1% from the fourth quarter of 2024. The Company’s net interest margin expanded to 3.60% for the fourth quarter of 2025, a 2 basis point increase from the third quarter of 2025 and a 39 basis point increase from the fourth quarter of 2024. The yield on average interest-earning assets for the fourth quarter of 2025 decreased to 5.98% from 6.14% for the third quarter of 2025. This decrease was primarily related to an overall yield decrease in all interest-earning assets, primarily due to the recent interest rate cuts, albeit a significant growth in average total earning assets. Compared to the fourth quarter of 2024, yields on earning assets decreased 4 basis points to 5.98% from 6.02%. The decrease was primarily attributable to the aforementioned interest rate cuts during 2025, offset by significant growth of $171.9 million in average total earning assets, primarily in LHFI. The Company’s total cost of funds was 2.60% for the fourth quarter of 2025, a decrease of 19 basis points and 39 basis points compared with the third quarter of 2025 and fourth quarter of 2024, respectively. Deposit costs decreased 13 basis points during the fourth quarter of 2025 to 2.59%, compared to 2.72% in the third quarter of 2025. The cost of interest-bearing deposits decreased 14 basis points during the fourth quarter of 2025 to 3.09%, compared with 3.23% in the third quarter of 2025, reflecting continued repricing of certificates of deposits in the fourth quarter of 2025. Noninterest income totaled $2.3 million for the fourth quarter of 2025, an increase of $195 thousand, or 9.3%, from the third quarter of 2025, primarily attributable to an increase in gain on sale of government guaranteed loans ("GGL"), service charges on deposits, mortgage banking related income and other noninterest income. Noninterest expense totaled $12.3 million for the fourth quarter of 2025, an increase of $406 thousand, or 3.4%, from the third quarter of 2025, primarily due to higher salaries and employee benefits; offset by decreases in other categories, primarily other professional services. The Company’s effective tax rate for the fourth quarter of 2025 was 18.3%, compared to 23.2% for the third quarter of 2025 and 14.3% for the fourth quarter of 2024. The decrease in effective tax rate from the third quarter of 2025 was primarily due to a higher recognition of benefits from tax credits in the fourth quarter of 2025. Balance Sheet Trends Total assets were $2.31 billion at December 31, 2025, an increase of $207.9 million, or 9.9%, from $2.10 billion at December 31, 2024. Loans held for sale ("LHFS") were $170.9 million at December 31, 2025, a decrease of $3.1 million, or 1.8%, from $174.0 million at December 31, 2024. Gross LHFI were $1.62 billion at December 31, 2025, an increase of $207.9 million, or 14.7%, from $1.41 billion at December 31, 2024. Total deposits were $1.99 billion at December 31, 2025, an increase of $152.9 million, or 8.3%, from $1.83 billion at December 31, 2024. Noninterest-bearing deposits were $312.3 million at December 31, 2025, or 15.7% of total deposits, compared to $302.9 million, or 16.5% of total deposits, at December 31, 2024. Brokered certificates of deposits, a component of time deposits, were $307.0 million at December 31, 2025, as compared to $274.9 million at December 31, 2024, an increase of $32.1 million, or 11.7%. Credit Quality During the fourth quarter of 2025, the Company recorded a provision for credit losses of $1.2 million, compared to $653 thousand and $1.2 million during the third quarter of 2025 and fourth quarter of 2024, respectively. The provision expense recorded during the fourth quarter of 2025 was due to increased loan production and other changes in loss rates and economic factors. The Company's annualized net charge-offs (recoveries) to average LHFI ratio was 0.00% for the fourth quarter of 2025 as compared to 0.03% and (0.02)% during the third quarter of 2025 and fourth quarter of 2024, respectively. Nonperforming assets totaled $18.3 million, or 0.79% of total assets, at December 31, 2025 compared to $15.9 million, or 0.76% of total assets at December 31, 2024. The $2.4 million increase in nonperforming assets at December 31, 2025 from December 31, 2024 was primarily due to the transfer of one senior housing loan to nonaccrual. This is a construction loan for an assisted living facility that is approximately 92% complete and has a current loan-to-value of 55%. Adjusted nonperforming assets3, which excludes the guaranteed portions of nonaccrual loans, was $14.2 million, or 0.62% of total assets, at December 31, 2025 compared to $11.1 million, or 0.53% of total assets, at December 31, 2024. About CoastalSouth Bancshares, Inc. CoastalSouth Bancshares, Inc. is a bank holding company headquartered in Atlanta, Georgia. Through our wholly owned subsidiary, Coastal States Bank, a South Carolina state-chartered commercial bank, we offer a full range of banking products and services designed for businesses, real estate professionals, and consumers looking for a deep and meaningful relationship with their bank. To learn more about Coastal States Bank, visit www.coastalstatesbank.com. _________________________ 1 Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10I. 2 The Company defines production as original loan commitment, which includes both funded and unfunded balances. 3 Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10I. Forward-Looking Statements Statements in this press release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this press release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this press release and could cause us to make changes to our future plans. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; potential impacts of any adverse developments in the banking industry, including any impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; changes in the interest rate environment, including changes to the federal funds rate; changes in prices, values and sales volumes of residential and commercial real estate; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; interest rate fluctuations, which could have an adverse effect on the Company’s profitability; a breach in security of our information systems, including the occurrence of a cyber-attack incidents or a deficiencies in cyber security; risks related to potential acquisitions; government actions or inactions, including a prolonged shutdown of the federal government, tariffs, or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; the effects of war or other conflicts, domestic civil unrest and tyranny, and changes in the overall geopolitical landscape; and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s final prospectus filed pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, filed with the Securities and Exchange Commission (the “SEC”) on July 2, 2025 (Registration No. 333-287854), relating to our initial public offering, and in other documents that we file with the SEC from time to time, which are available on the SEC’s website, http://www.sec.gov. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this press release are qualified in their entirety by this cautionary statement. COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY FINANCIAL TABLES Financial Highlights (unaudited) Table 1A As of and for the Three Months Ended As of and for the Year Ended (dollars in thousands except December 31, September 30, June 30, March 31, December 31, December 31, December 31, per share amounts) 2025 2025 2025 2025 2024 2025 2024 Selected Operating Data: Interest income $ 33,006 $ 32,890 $ 31,793 $ 30,024 $ 30,537 $ 127,713 $ 123,649 Interest expense 13,143 13,700 13,715 13,265 14,266 53,823 58,327 Net interest income 19,863 19,190 18,078 16,759 16,271 73,890 65,322 Provision for credit losses 1,162 653 752 629 1,240 3,196 553 Noninterest income 2,295 2,100 1,795 1,881 1,958 8,071 4,514 Noninterest expense 12,262 11,856 12,092 11,419 10,335 47,629 42,068 Income tax expense 1,598 2,040 1,064 1,542 950 6,244 5,311 Net income 7,136 6,741 5,965 5,050 5,704 24,892 21,904 Adjusted net income(1) 7,136 6,749 5,965 5,050 5,704 24,900 24,558 Share and Per Share Data: Basic earnings per share $ 0.60 $ 0.57 $ 0.58 $ 0.49 $ 0.56 $ 2.24 $ 2.15 Adjusted basic earnings per share(1) $ 0.60 $ 0.57 $ 0.58 $ 0.49 $ 0.56 $ 2.24 $ 2.41 Diluted earnings per share $ 0.58 $ 0.54 $ 0.57 $ 0.47 $ 0.54 $ 2.16 $ 2.09 Adjusted diluted earnings per share(1) $ 0.58 $ 0.54 $ 0.57 $ 0.47 $ 0.54 $ 2.16 $ 2.35 Book value per share $ 21.66 $ 20.91 $ 20.37 $ 19.67 $ 19.01 $ 21.66 $ 19.01 Tangible book value per share(1) $ 21.25 $ 20.49 $ 19.88 $ 19.17 $ 18.51 $ 21.25 $ 18.51 Shares of common stock outstanding 11,980,412 11,978,921 10,278,921 10,274,271 10,270,146 11,980,412 10,270,146 Weighted average diluted shares outstanding 12,387,619 12,325,462 10,612,255 10,642,078 10,596,364 11,520,215 10,470,633 Selected Balance Sheet Data: Total assets $ 2,306,586 $ 2,255,389 $ 2,221,245 $ 2,190,391 $ 2,098,712 $ 2,306,586 $ 2,098,712 Securities available-for-sale, at fair value(2) 330,503 334,955 331,760 325,478 335,267 330,503 335,267 Gross loans held for investment 1,617,315 1,552,976 1,527,199 1,472,232 1,409,443 1,617,315 1,409,443 Loans held for sale 170,933 231,593 209,101 187,481 174,033 170,933 174,033 Allowance for credit losses 18,743 18,028 17,497 17,104 17,118 18,743 17,118 Goodwill and other intangible assets 6,262 6,186 6,190 6,199 6,386 6,262 6,386 Total deposits 1,987,684 1,949,672 1,968,301 1,937,693 1,834,802 1,987,684 1,834,802 Core deposits(1) 1,680,650 1,654,764 1,660,409 1,650,358 1,559,904 1,680,650 1,559,904 Other borrowings 30,000 25,000 14,753 20,738 41,725 30,000 41,725 Total Shareholders' equity 259,529 250,438 209,365 202,104 195,232 259,529 195,232 (1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures” and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10I. (2) The Company did not have securities held to maturity in any of the periods presented. Financial Highlights - continued (unaudited) Table 1B As of and for the Three Months Ended As of and for the Year Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 2025 2024 Performance Ratios: Pre-tax, pre-provision net revenue (PPNR)(1) $ 9,896 $ 9,434 $ 7,781 $ 7,221 $ 7,894 $ 34,332 $ 27,768 Return on average assets (ROAA)(2) 1.24 % 1.20 % 1.09 % 0.97 % 1.07 % 1.13 % 1.05 % Adjusted return on average assets (Adj. ROAA)(1)(2) 1.24 1.20 1.09 0.97 1.07 1.13 1.18 Return on average equity(2) 11.02 10.84 11.62 10.25 11.65 10.94 12.13 Adjusted return on average equity(1)(2) 11.02 10.85 11.62 10.25 11.65 10.95 13.60 Return on average tangible common equity (ROATCE)(1)(2) 11.24 11.07 11.92 10.52 11.97 11.19 12.49 Adjusted return on average tangible common equity (Adj. ROATCE)(1)(2) 11.24 11.08 11.92 10.52 11.97 11.20 14.00 Net interest rate spread(2) 2.87 2.83 2.76 2.67 2.42 2.79 2.48 Net interest margin(2) 3.60 3.58 3.46 3.38 3.21 3.51 3.29 Efficiency ratio 55.34 55.69 60.85 61.26 56.70 58.11 60.24 Efficiency ratio, as adjusted(1) 55.34 55.66 60.85 61.26 56.70 58.10 57.39 Noninterest income to average total assets(2) 0.40 0.37 0.33 0.36 0.37 0.37 0.22 Noninterest income to total revenue 10.36 9.86 9.03 10.09 10.74 9.85 6.46 Adjusted noninterest income to total adjusted revenue(1) 10.36 9.91 9.03 10.09 10.74 9.86 10.89 Noninterest expense to average total assets(2) 2.13 2.11 2.21 2.19 1.94 2.16 2.02 Average interest-earning assets to average interest-bearing liabilities 130.41 129.16 126.50 126.31 127.90 128.13 127.70 Average equity to average total assets 11.22 11.08 9.37 9.46 9.20 10.31 8.65 Asset Quality Data: Net charge-offs to average LHFI(2) 0.00 % 0.03 % 0.06 % 0.00 % (0.02 ) % 0.02 % 0.01 % Net charge-offs to total average loans(2) 0.00 0.03 0.05 0.00 (0.02 ) 0.02 0.01 Total allowance for credit losses to total LHFI 1.16 1.16 1.15 1.16 1.21 1.16 1.21 Total allowance for credit losses to total loans 1.05 1.01 1.01 1.03 1.08 1.05 1.08 Total allowance for credit losses to nonperforming loans 102.39 127.03 118.99 117.11 114.07 102.39 114.07 Nonperforming loans to gross LHFI 1.13 0.91 0.96 0.99 1.06 1.13 1.06 Nonperforming assets to total assets 0.79 0.63 0.66 0.70 0.76 0.79 0.76 Adjusted nonperforming assets to total assets(1) 0.62 0.43 0.46 0.49 0.53 0.62 0.53 Balance Sheet and Capital Ratios: Loan-to-deposit ratio 89.97 % 91.53 % 88.21 % 85.65 % 86.30 % 89.97 % 86.30 % Noninterest-bearing deposits to total deposits 15.71 16.08 15.92 15.52 16.51 15.71 16.51 Total shareholders' equity to total assets 11.25 11.10 9.43 9.23 9.30 11.25 9.30 Tangible common equity to tangible assets(1) 11.06 10.91 9.22 9.01 9.08 11.06 9.08 Tier 1 leverage ratio(3) 11.18 11.15 10.22 10.62 10.64 11.18 10.64 Common equity tier 1 ratio(3) 12.30 11.94 11.09 11.55 12.07 12.30 12.07 Tier 1 risk-based capital ratio(3) 12.30 11.94 11.09 11.55 12.07 12.30 12.07 Total risk-based capital ratio(3) 13.31 12.90 12.04 12.52 12.97 13.31 12.97 Other: Number of branches 11 11 11 11 11 11 11 Number of full-time equivalent employees 196 194 188 180 181 189 180 (1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10I. (2) Represents annualized data. (3) Ratios are for Coastal States Bank only. Ratios for December 31, 2025 are preliminary. Quarter End Balance Sheets (unaudited) Table 2 December 31, September 30, June 30, March 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 Assets Cash and due from banks $ 41,538 $ 20,088 $ 23,245 $ 19,380 $ 37,320 Federal funds sold 38,229 6,191 20,045 79,153 30,641 Investment securities(1) 339,262 342,990 338,601 332,312 342,750 Loans held for sale (LHFS) 170,933 231,593 209,101 187,481 174,033 Loans held for investment (LHFI) 1,617,315 1,552,976 1,527,199 1,472,232 1,409,443 Allowance for credit losses on LHFI (18,743 ) (18,028 ) (17,497 ) (17,104 ) (17,118 ) Loans held for investment, net 1,598,572 1,534,948 1,509,702 1,455,128 1,392,325 Bank-owned life insurance 48,296 47,833 47,373 46,924 46,484 Premises, furniture and equipment, net 18,122 18,186 18,166 17,837 17,796 Deferred tax asset 16,370 16,262 17,211 17,123 18,148 Goodwill & intangible assets(2) 6,262 6,186 6,190 6,199 6,386 Other assets 29,002 31,112 31,611 28,854 32,829 Total assets $ 2,306,586 $ 2,255,389 $ 2,221,245 $ 2,190,391 $ 2,098,712 Liabilities and shareholders' equity Liabilities Deposits Noninterest-bearing transaction accounts $ 312,251 $ 313,604 $ 313,386 $ 300,678 $ 302,907 Interest-bearing transaction accounts 214,620 198,753 209,816 191,452 181,068 Savings and money market 673,609 634,826 628,729 650,050 591,626 Time deposits 787,204 802,489 816,370 795,513 759,201 Total deposits 1,987,684 1,949,672 1,968,301 1,937,693 1,834,802 Federal Home Loan Bank of Atlanta advances 30,000 25,000 - - 15,000 Subordinated debt, net - - 14,753 14,741 14,730 Revolving commercial line of credit, net - - - 5,997 11,995 Other liabilities 29,373 30,279 28,826 29,856 26,953 Total liabilities 2,047,057 2,004,951 2,011,880 1,988,287 1,903,480 Shareholders' equity Voting common stock 10,868 10,449 8,107 8,102 8,098 Nonvoting common stock 1,112 1,530 2,172 2,172 2,172 Capital surplus 189,882 189,654 159,267 158,997 158,755 Accumulated income 66,886 59,750 53,009 47,044 41,994 Accumulated other comprehensive loss (9,219 ) (10,945 ) (13,190 ) (14,211 ) (15,787 ) Total shareholders' equity 259,529 250,438 209,365 202,104 195,232 Total liabilities and shareholders' equity $ 2,306,586 $ 2,255,389 $ 2,221,245 $ 2,190,391 $ 2,098,712 (1) No ACL on investment securities was recognized for the periods presented; includes securities available-for-sale and non-marketable equity securities. (2) Includes commercial mortgage servicing rights of $1.3 million, $1.2 million, $1.1 million, $1.1 million, and $1.2 million for December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025 and December 31, 2024, respectively. Statements of Operations (unaudited) Table 3 Three Months Ended Twelve Months Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 2025 2024 Interest income Interest on cash and due from banks $ 109 $ 129 $ 111 $ 135 $ 122 $ 484 $ 534 Interest on federal funds sold 624 616 698 963 870 2,901 3,751 Interest and dividends on investment securities 3,734 4,125 3,875 3,800 3,994 15,534 16,046 Interest and fees on LHFS 3,771 3,422 3,296 2,819 3,404 13,308 10,272 Interest and fees on LHFI 24,768 24,598 23,813 22,307 22,147 95,486 93,046 Total interest income 33,006 32,890 31,793 30,024 30,537 127,713 123,649 Interest expense Deposits 12,925 13,274 13,251 12,830 13,498 52,280 53,443 Other borrowings 218 426 464 435 768 1,543 4,884 Total interest expense 13,143 13,700 13,715 13,265 14,266 53,823 58,327 Net interest income 19,863 19,190 18,078 16,759 16,271 73,890 65,322 Provision for credit losses 1,162 653 752 629 1,240 3,196 553 Net interest income after provision for credit losses 18,701 18,537 17,326 16,130 15,031 70,694 64,769 Noninterest income Mortgage banking related income 330 299 326 221 391 1,176 1,204 Interchange and card fee income 230 238 257 266 210 991 868 Service charges on deposit accounts 256 208 215 211 230 890 846 Bank-owned life insurance 462 461 449 440 440 1,812 1,664 Gain on sale of government guaranteed loans 682 613 265 - 151 1,560 1,818 Losses on sale of available-for-sale securities - (10 ) - - - (10 ) (3,465 ) Other noninterest income 335 291 283 743 536 1,652 1,579 Total noninterest income 2,295 2,100 1,795 1,881 1,958 8,071 4,514 Noninterest expense Salaries and employee benefits 7,644 6,985 6,997 6,694 6,759 28,320 26,187 Occupancy and equipment 864 850 814 788 762 3,316 2,995 Data processing 640 647 653 624 605 2,564 2,213 Other professional services 391 571 973 693 496 2,628 2,046 Software and other technology expense 808 788 719 703 774 3,018 2,742 Regulatory assessment 369 419 344 361 336 1,493 1,291 Other noninterest expense 1,546 1,596 1,592 1,556 603 6,290 4,594 Total noninterest expense 12,262 11,856 12,092 11,419 10,335 47,629 42,068 Net income before taxes 8,734 8,781 7,029 6,592 6,654 31,136 27,215 Income tax expense 1,598 2,040 1,064 1,542 950 6,244 5,311 Net income $ 7,136 $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 24,892 $ 21,904 QTD Average Balances and Yields/Rates (unaudited) Table 4 Three Months Ended December 31, 2025 September 30, 2025 December 31, 2024 Average Yield/ Average Yield/ Average Yield/ (dollars in thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate Earning assets: Cash and due from banks $ 21,271 $ 109 2.03 % $ 21,058 $ 129 2.43 % $ 19,900 $ 122 2.44 % Federal funds sold 62,215 624 3.98 % 52,240 616 4.68 % 71,061 870 4.87 % Investment securities 340,416 3,734 4.35 % 339,619 4,125 4.82 % 355,832 3,994 4.47 % Loans held for sale 198,119 3,771 7.55 % 167,424 3,422 8.11 % 171,457 3,404 7.90 % Loans held for investment 1,567,471 24,768 6.27 % 1,543,363 24,598 6.32 % 1,399,357 22,147 6.30 % Total earning assets 2,189,492 33,006 5.98 % 2,123,704 32,890 6.14 % 2,017,607 30,537 6.02 % Noninterest-earning assets: Allowance for credit losses on LHFI (18,034 ) (17,504 ) (15,655 ) Bank-owned life insurance 48,038 47,569 46,243 Premises, furniture and equipment, net 18,160 18,241 17,854 Deferred tax asset 15,841 17,159 17,393 Goodwill & intangible assets 6,166 6,176 6,432 Other assets 28,695 30,633 27,483 Total noninterest-earning assets 98,866 102,274 99,750 Total assets $ 2,288,358 $ 2,225,978 $ 2,117,357 Interest-bearing liabilities: Interest-bearing deposits $ 1,658,037 $ 12,925 3.09 % $ 1,631,767 $ 13,274 3.23 % $ 1,526,968 $ 13,498 3.52 % Federal Reserve Bank - BTFP - - 0.00 % - - 0.00 % 10,652 132 4.93 % Federal funds purchased 8 - 0.00 % - - 0.00 % - - 0.00 % Federal Home Loan Bank of Atlanta advances 20,924 218 4.13 % 272 3 4.38 % 13,098 161 4.89 % Revolving commercial line of credit, net - - 0.00 % - - 0.00 % 11,995 241 7.99 % Subordinated debt, net - - 0.00 % 12,191 423 13.77 % 14,724 235 6.35 % Total interest-bearing liabilities 1,678,969 13,143 3.11 % 1,644,230 13,700 3.31 % 1,577,437 14,267 3.60 % Noninterest-bearing liabilities: Noninterest-bearing deposits 323,687 306,133 318,071 Other liabilities 28,888 28,927 27,125 Total noninterest-bearing liabilities 352,575 335,060 345,196 Shareholders' equity 256,814 246,688 194,724 Total liabilities and shareholders' equity $ 2,288,358 $ 2,225,978 $ 2,117,357 Net interest income $ 19,863 $ 19,190 $ 16,270 Net interest spread 2.87 % 2.83 % 2.42 % Net interest margin 3.60 % 3.58 % 3.21 % Cost of total deposits(1) 2.59 % 2.72 % 2.91 % Cost of total funding(1) 2.60 % 2.79 % 2.99 % (1) Includes noninterest-bearing deposits. YTD Average Balances and Yields/Rates (unaudited) Table 5 Twelve Months Ended December 31, 2025 December 31, 2024 Average Yield/ Average Yield/ (dollars in thousands) Balance Interest Rate Balance Interest Rate Earning assets: Cash and due from banks $ 21,449 $ 484 2.26 % $ 20,546 $ 534 2.60 % Federal funds sold 66,287 2,901 4.38 % 69,490 3,751 5.40 % Investment securities 338,498 15,534 4.59 % 352,681 16,046 4.55 % Loans held for sale 167,670 13,308 7.94 % 123,310 10,272 8.33 % Loans held for investment 1,511,831 95,486 6.32 % 1,418,022 93,046 6.56 % Total earning assets 2,105,735 127,713 6.07 % 1,984,049 123,649 6.23 % Noninterest-earning assets: Allowance for credit losses on LHFI (17,444 ) (15,865 ) Bank-owned life insurance 47,354 45,597 Premises, furniture and equipment, net 18,073 17,725 Deferred tax asset 16,991 19,023 Goodwill & intangible assets 6,209 6,372 Other assets 29,624 30,352 Total noninterest-earning assets 100,807 103,204 Total assets $ 2,206,542 $ 2,087,253 Interest-bearing liabilities: Interest-bearing deposits $ 1,621,049 $ 52,280 3.23 % $ 1,468,164 $ 53,443 3.64 % Federal Reserve Bank - BTFP - - 0.00 % 53,361 2,616 4.90 % Federal funds purchased 11 1 9.09 % - - 0.00 % Federal Home Loan Bank of Atlanta advances 8,123 350 4.31 % 4,658 238 5.11 % Revolving commercial line of credit, net 3,845 300 7.80 % 12,780 1,090 8.53 % Subordinated debt, net 10,383 892 8.59 % 14,706 940 6.39 % Total interest-bearing liabilities 1,643,411 53,823 3.28 % 1,553,669 58,327 3.75 % Noninterest-bearing liabilities: Noninterest-bearing deposits 307,464 323,949 Other liabilities 28,182 29,007 Total noninterest-bearing liabilities 335,646 352,956 Shareholders' equity 227,485 180,628 Total liabilities and shareholders' equity $ 2,206,542 $ 2,087,253 Net interest income $ 73,890 $ 65,322 Net interest spread 2.79 % 2.48 % Net interest margin 3.51 % 3.29 % Cost of total deposits(1) 2.71 % 2.98 % Cost of total funding (1) 2.76 % 3.11 % (1) Includes noninterest-bearing deposits. Loan Data (unaudited) Table 6 As of the Quarter Ended December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 (dollars in thousands) Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total Loans held for investment ("LHFI"): Commercial Loans Acquisition, development and construction $ 119,352 7.4 % $ 106,787 6.9 % $ 100,528 6.6 % $ 76,453 5.2 % $ 72,520 5.2 % Income producing CRE 378,179 23.4 371,670 23.9 372,142 24.4 352,693 24.0 321,558 22.8 Owner-occupied CRE 92,787 5.7 96,287 6.2 91,147 6.0 90,204 6.1 94,573 6.7 Senior housing 259,529 16.1 223,719 14.4 236,474 15.5 245,292 16.7 234,081 16.6 Commercial and industrial 145,380 9.0 135,039 8.7 131,716 8.6 145,784 9.8 141,626 10.0 Retail Loans Marine vessels 312,096 19.3 318,246 20.5 301,327 19.7 284,305 19.3 263,657 18.6 Residential mortgages 199,991 12.4 190,220 12.3 185,527 12.1 176,794 12.1 174,099 12.5 Cash value life insurance LOC 87,172 5.4 90,115 5.8 87,135 5.7 80,503 5.5 86,844 6.2 Other consumer 22,829 1.4 20,893 1.4 21,203 1.4 20,204 1.4 20,485 1.5 Gross loans held for investment $ 1,617,315 100.0 % $ 1,552,976 100.0 % $ 1,527,199 100.0 % $ 1,472,232 100.0 % $ 1,409,443 100.0 % Core LHFI 1,561,791 1,492,992 1,464,200 1,406,199 1,342,073 Acquired LHFI(1) 55,524 59,984 62,999 66,033 67,370 Gross loans held for investment $ 1,617,315 $ 1,552,976 $ 1,527,199 $ 1,472,232 $ 1,409,443 Allowance for credit losses on LHFI 18,743 18,028 17,497 17,104 17,118 Net loans held for investment $ 1,598,572 $ 1,534,948 $ 1,509,702 $ 1,455,128 $ 1,392,325 Total loans held-for-sale 170,933 231,593 209,101 187,481 174,033 Total loans $ 1,788,248 $ 1,784,569 $ 1,736,300 $ 1,659,713 $ 1,583,476 (1) Includes loans acquired through business combinations. Nonperforming Assets (unaudited) Table 7 As of the Quarter Ended (dollars in thousands) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Nonaccrual loans $ 18,306 $ 14,171 $ 14,611 $ 14,599 $ 14,957 Past due loans 90 days and still accruing - 21 93 6 49 Total nonperforming loans $ 18,306 $ 14,192 $ 14,704 $ 14,605 $ 15,006 Other real estate owned - - - 765 864 Total nonperforming assets $ 18,306 $ 14,192 $ 14,704 $ 15,370 $ 15,870 Nonperforming loans to gross LHFI 1.13 % 0.91 % 0.96 % 0.99 % 1.06 % Nonaccrual loans to total assets 0.79 % 0.63 % 0.66 % 0.67 % 0.71 % Nonperforming assets to total assets 0.79 % 0.63 % 0.66 % 0.70 % 0.76 % Allowance for Credit Losses (unaudited) Table 8 As of and for the Three Months Ended As of and for the Year Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 2025 2024 Allowance for credit losses on LHFI Balance, beginning of period $ 18,028 $ 17,497 $ 17,104 $ 17,118 $ 15,615 $ 17,118 $ 15,465 Net charge-offs/(recoveries): Commercial Loans Acquisition, development and construction - - - - - - - Income producing CRE - - - - - - - Owner-occupied CRE - - - - (53 ) - (53 ) Senior housing - - - - - - - Commercial and industrial (4 ) (29 ) 19 1 3 (13 ) 129 Retail Loans Marine vessels - 162 - - - 162 36 Residential mortgages (29 ) (2 ) (2 ) (2 ) (2 ) (35 ) (15 ) Cash value life insurance LOC - - - - - - - Other consumer 20 (6 ) 191 16 (25 ) 221 (1 ) Total net charge-offs/(recoveries) $ (13 ) $ 125 $ 208 $ 15 $ (77 ) $ 335 $ 96 Provision for loan credit losses 702 656 601 1 1,426 1,960 1,749 Balance, ending of period $ 18,743 $ 18,028 $ 17,497 $ 17,104 $ 17,118 $ 18,743 $ 17,118 Allowance for credit losses for unfunded commitments Period beginning balance $ 3,496 $ 3,499 $ 3,348 $ 2,720 $ 2,906 $ 2,720 $ 3,916 Provision (recovery) for credit losses 460 (3 ) 151 628 (186 ) 1,236 (1,196 ) Period ending balance $ 3,956 $ 3,496 $ 3,499 $ 3,348 $ 2,720 $ 3,956 $ 2,720 Balance, end of period - Allowance for credit losses: LHFI and unfunded commitments $ 22,699 $ 21,524 $ 20,996 $ 20,452 $ 19,838 $ 22,699 $ 19,838 Total loans held for investment $ 1,617,315 $ 1,552,976 $ 1,527,199 $ 1,472,232 $ 1,409,443 $ 1,617,315 $ 1,409,443 Credit Analysis Net charge-offs to average LHFI 0.00 % 0.03 % 0.06 % 0.00 % (0.02 )% 0.02 % 0.01 % Total allowance for credit losses on LHFI to total LHFI 1.16 % 1.16 % 1.15 % 1.16 % 1.21 % 1.16 % 1.21 % Total allowance for credit losses on LHFI to nonaccrual loans 102.39 % 127.22 % 119.75 % 117.16 % 114.45 % 102.39 % 114.45 % Total allowance for credit losses on LHFI to total nonperforming loans 102.39 % 127.03 % 118.99 % 117.11 % 114.07 % 102.39 % 114.07 % Loan Risk Ratings(1) (2) (unaudited) Table 9 As of the Quarter Ended (dollars in thousands) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Acquisition, development and construction(1) Pass $ 119,352 $ 106,787 $ 100,528 $ 76,453 $ 72,520 Special mention - - - - - Substandard - - - - - Total acquisition, development and construction $ 119,352 $ 106,787 $ 100,528 $ 76,453 $ 72,520 Income producing CRE(1) Pass $ 377,711 $ 370,788 $ 371,255 $ 352,281 $ 321,146 Special mention - - - - - Substandard 468 882 887 412 412 Total income producing $ 378,179 $ 371,670 $ 372,142 $ 352,693 $ 321,558 Owner-occupied CRE(1) Pass $ 82,959 $ 86,533 $ 81,244 $ 83,711 $ 87,906 Special mention 2,739 3,579 3,612 - - Substandard 7,089 6,175 6,291 6,493 6,667 Total owner-occupied $ 92,787 $ 96,287 $ 91,147 $ 90,204 $ 94,573 Senior housing(1) Pass $ 236,816 $ 205,330 $ 217,971 $ 208,922 $ 190,084 Special mention 11,934 12,006 12,078 24,814 25,025 Substandard 10,779 6,383 6,425 11,556 18,972 Total senior housing $ 259,529 $ 223,719 $ 236,474 $ 245,292 $ 234,081 Commercial and industrial(2) Pass $ 141,020 $ 128,468 $ 124,979 $ 141,202 $ 136,878 Special mention 212 2,402 2,199 - 36 Substandard 4,148 4,169 4,538 4,582 4,712 Total commercial and industrial $ 145,380 $ 135,039 $ 131,716 $ 145,784 $ 141,626 Marine vessels(2) Performing $ 312,096 $ 318,246 $ 301,327 $ 284,305 $ 263,657 Nonperforming - - - - - Total marine vessels $ 312,096 $ 318,246 $ 301,327 $ 284,305 $ 263,657 Residential mortgages(2) Performing $ 199,601 $ 190,059 $ 185,162 $ 176,633 $ 173,834 Nonperforming 390 161 365 161 265 Total residential mortgages $ 199,991 $ 190,220 $ 185,527 $ 176,794 $ 174,099 Cash value life insurance LOC(2) Performing $ 87,172 $ 90,115 $ 87,135 $ 80,503 $ 86,844 Nonperforming - - - - - Total cash value life insurance LOC $ 87,172 $ 90,115 $ 87,135 $ 80,503 $ 86,844 Other consumer(2) Performing $ 22,829 $ 20,872 $ 21,203 $ 20,204 $ 20,442 Nonperforming - 21 - - 43 Total other consumer $ 22,829 $ 20,893 $ 21,203 $ 20,204 $ 20,485 Gross loans held for investment $ 1,617,315 $ 1,552,976 $ 1,527,199 $ 1,472,232 $ 1,409,443 (1) There were no commercial loans classified as doubtful. (2) Retail loans are classified as either performing or nonperforming. Non-GAAP Financial Measures The measures entitled return on average tangible common equity, tangible book value per share, tangible common equity, tangible assets, adjusted nonperforming assets to total assets, adjusted nonperforming assets, adjusted net income, adjusted basic earnings per share, adjusted diluted earnings per share, pre-tax, pre-provision net revenue ("PPNR"), adjusted return on average assets, adjusted return on average equity, efficiency ratio, as adjusted, adjusted return on average tangible common equity, adjusted noninterest income to total revenue, tangible common equity to tangible assets and core deposits are not measures recognized under accounting principles generally accepted in the United States of America (“GAAP”) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are return on average shareholders’ equity, book value per share, total shareholders’ equity, total assets, total nonperforming assets to total assets, total nonperforming assets, net income, basic earnings per share, diluted earnings per share, net income, return on average assets, return on average equity, the efficiency ratio, return on average equity, noninterest income to total revenue, total common equity to total assets, and total deposits, respectively. Management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view the Company’s performance using the same tools that management uses to evaluate the Company’s past performance and prospects for future performance. While management believes that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures should be considered as additional views of the way the Company’s financial measures are affected by significant items and other factors, and since they are not required to be uniformly applied, they may not be comparable to other similarly titled measures at other companies. Non-GAAP Reconciliations Tangible Book Value per Share / Tangible Common Equity to Tangible Assets (unaudited) Table 10A As of and for the Three Months Ended As of and for the Year Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, (dollars in thousands, except per share data) 2025 2025 2025 2025 2024 2025 2024 Tangible Common Equity: Total shareholders' equity $ 259,529 $ 250,438 $ 209,365 $ 202,104 $ 195,232 $ 259,529 $ 195,232 Less: Goodwill and intangibles (6,262 ) (6,186 ) (6,190 ) (6,199 ) (6,386 ) (6,262 ) (6,386 ) Adjusted for: Mortgage servicing rights 1,266 1,156 1,122 1,093 1,237 1,266 1,237 Tangible Common Equity $ 254,533 $ 245,408 $ 204,297 $ 196,998 $ 190,083 $ 254,533 $ 190,083 Common shares outstanding 11,980,412 11,978,921 10,278,921 10,274,271 10,270,146 11,980,412 10,270,146 Book value per common share 21.66 20.91 20.37 19.67 19.01 21.66 19.01 Tangible book value per common share 21.25 20.49 19.88 19.17 18.51 21.25 18.51 Tangible assets: Total assets $ 2,306,586 $ 2,255,389 $ 2,221,245 $ 2,190,391 $ 2,098,712 $ 2,306,586 $ 2,098,712 Less: Goodwill and intangibles (6,262 ) (6,186 ) (6,190 ) (6,199 ) (6,386 ) (6,262 ) (6,386 ) Adjusted for: Mortgage servicing rights 1,266 1,156 1,122 1,093 1,237 1,266 1,237 Tangible assets $ 2,301,590 $ 2,250,359 $ 2,216,177 $ 2,185,285 $ 2,093,563 $ 2,301,590 $ 2,093,563 Tangible common equity to tangible assets 11.06 % 10.91 % 9.22 % 9.01 % 9.08 % 11.06 % 9.08 % ROATCE / Adjusted ROATCE (unaudited) Table 10B As of and for the Three Months Ended As of and for the Year Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 2025 2024 Net income $ 7,136 $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 24,892 $ 21,904 Average shareholders' equity 256,814 246,688 205,837 199,763 194,724 227,485 180,628 Return on average shareholders' equity(1) 11.02 % 10.84 % 11.62 % 10.25 % 11.65 % 10.94 % 12.13 % Average Tangible Common Equity: Average shareholders' equity $ 256,814 $ 246,688 $ 205,837 $ 199,763 $ 194,724 $ 227,485 $ 180,628 Less: Average goodwill and intangibles (6,166 ) (6,176 ) (6,168 ) (6,328 ) (6,432 ) (6,209 ) (6,372 ) Adjusted for: Average mortgage servicing rights 1,155 1,128 1,082 1,198 1,263 1,141 1,133 Average tangible common equity $ 251,803 $ 241,640 $ 200,751 $ 194,633 $ 189,555 $ 222,417 $ 175,389 Return on average tangible common(1) shareholders' equity 11.24 % 11.07 % 11.92 % 10.52 % 11.97 % 11.19 % 12.49 % Net income $ 7,136 $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 24,892 $ 21,904 Adjusted for: Loss on sale of AFS securities, net of tax(2) - 8 - - - 8 2,654 Adjusted net income $ 7,136 $ 6,749 $ 5,965 $ 5,050 $ 5,704 $ 24,900 $ 24,558 Average tangible common equity $ 251,803 $ 241,640 $ 200,751 $ 194,633 $ 189,555 $ 222,417 $ 175,389 Adjusted return on average tangible common equity(1) 11.24 % 11.08 % 11.92 % 10.52 % 11.97 % 11.20 % 14.00 % (1) Represents annualized data (2) 2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring. Non-GAAP Reconciliations Efficiency Ratio, as Adjusted / Noninterest Income to Total Revenue (unaudited) Table 10C As of and for the Three Months Ended As of and for the Year Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 2025 2024 GAAP-based efficiency ratio 55.34 % 55.69 % 60.85 % 61.26 % 56.70 % 58.11 % 60.24 % Net interest income $ 19,863 $ 19,190 $ 18,078 $ 16,759 $ 16,271 $ 73,890 $ 65,322 Noninterest income 2,295 2,100 1,795 1,881 1,958 8,071 4,514 Adjusted for: Loss on sale of AFS securities(1) - 10 - - - 10 3,465 Adjusted revenue $ 22,158 $ 21,300 $ 19,873 $ 18,640 $ 18,229 $ 81,971 $ 73,301 Total noninterest expense 12,262 11,856 12,092 11,419 10,335 47,629 42,068 Adjusted noninterest expense $ 12,262 $ 11,856 $ 12,092 $ 11,419 $ 10,335 $ 47,629 $ 42,068 Efficiency ratio, as adjusted 55.34 % 55.66 % 60.85 % 61.26 % 56.70 % 58.10 % 57.39 % Noninterest income to total revenue 10.36 % 9.86 % 9.03 % 10.09 % 10.74 % 9.85 % 6.46 % Adjusted noninterest income to total adjusted revenue 10.36 % 9.91 % 9.03 % 10.09 % 10.74 % 9.86 % 10.89 % (1) 2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring. Adjusted Net Income / Adjusted Return on Average Assets (unaudited) Table 10D As of and for the Three Months Ended As of and for the Year Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 2025 2024 Net income $ 7,136 $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 24,892 $ 21,904 Average assets 2,288,358 2,225,978 2,196,716 2,111,196 2,117,357 2,206,542 2,087,253 Return on average assets (1) 1.24 % 1.20 % 1.09 % 0.97 % 1.07 % 1.13 % 1.05 % Net income $ 7,136 $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 24,892 $ 21,904 Adjusted for: Loss on sale of AFS securities, net of tax(2) - 8 - - - 8 2,654 Adjusted net income $ 7,136 $ 6,749 $ 5,965 $ 5,050 $ 5,704 $ 24,900 $ 24,558 Average assets $ 2,288,358 $ 2,225,978 $ 2,196,716 $ 2,111,196 $ 2,117,357 $ 2,206,542 $ 2,087,253 Adjusted return on average assets(1) 1.24 % 1.20 % 1.09 % 0.97 % 1.07 % 1.13 % 1.18 (1) Represents annualized data (2) 2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring. Adjusted Net Income / Adjusted Return on Average Shareholders' Equity (unaudited) Table 10E As of and for the Three Months Ended As of and for the Year Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 2025 2024 Net income $ 7,136 $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 24,892 $ 21,904 Average shareholders' equity 256,814 246,688 205,837 199,763 194,724 227,485 180,628 Return on average shareholders' equity(1) 11.02 % 10.84 % 11.62 % 10.25 % 11.65 % 10.94 % 12.13 % Net income $ 7,136 $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 24,892 $ 21,904 Adjusted for: Loss on sale of AFS securities, net of tax(2) - 8 - - - 8 2,654 Adjusted net income $ 7,136 $ 6,749 $ 5,965 $ 5,050 $ 5,704 $ 24,900 $ 24,558 Average shareholders' equity $ 256,814 $ 246,688 $ 205,837 $ 199,763 $ 194,724 $ 227,485 $ 180,628 Adjusted return on average shareholders' equity(1) 11.02 % 10.85 % 11.62 % 10.25 % 11.65 % 10.95 % 13.60 % (1) Represents annualized data (2) 2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring. Adjusted Net Income / Adjusted Basic EPS / Adjusted Diluted EPS (unaudited) Table 10F As of and for the Three Months Ended As of and for the Year Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, (dollars in thousands, except per share data) 2025 2025 2025 2025 2024 2025 2024 Net income $ 7,136 $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 24,892 $ 21,904 Average common shares outstanding - basic 11,979,715 11,941,965 10,277,721 10,273,125 10,250,446 11,125,064 10,198,298 Basic earnings per share $ 0.60 $ 0.57 $ 0.58 $ 0.49 $ 0.56 $ 2.24 $ 2.15 Average common shares outstanding - diluted 12,387,619 12,325,462 10,612,255 10,642,078 10,596,364 11,520,215 10,470,633 Diluted earnings per share $ 0.58 $ 0.54 $ 0.57 $ 0.47 $ 0.54 $ 2.16 $ 2.09 Net income $ 7,136 $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 24,892 $ 21,904 Adjusted for: Loss on sale of AFS securities, net of tax(1) - 8 - - - 8 2,654 Adjusted net income $ 7,136 $ 6,749 $ 5,965 $ 5,050 $ 5,704 $ 24,900 $ 24,558 Adjusted basic earnings per share $ 0.60 $ 0.57 $ 0.58 $ 0.49 $ 0.56 $ 2.24 $ 2.41 Adjusted diluted earnings per share $ 0.58 $ 0.54 $ 0.57 $ 0.47 $ 0.54 $ 2.16 $ 2.35 (1) 2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring. Adjusted Nonperforming Assets to Total Assets (unaudited) Table 10G As of and for the Three Months Ended As of and for the Year Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 2025 2024 Total nonperforming assets $ 18,306 $ 14,192 $ 14,704 $ 15,370 $ 15,870 $ 18,306 $ 15,870 Total assets 2,306,586 2,255,389 2,221,245 2,190,391 2,098,712 2,306,586 2,098,712 GAAP-based nonperforming assets to total assets 0.79 % 0.63 % 0.66 % 0.70 % 0.76 % 0.79 % 0.76 % Total nonperforming assets $ 18,306 $ 14,192 $ 14,704 $ 15,370 $ 15,870 $ 18,306 $ 15,870 Adjusted for: Guaranteed portions of nonaccrual loans 4,089 4,457 4,583 4,692 4,811 4,089 4,811 Adjusted total nonperforming assets $ 14,217 $ 9,735 $ 10,121 $ 10,678 $ 11,059 $ 14,217 $ 11,059 Total assets $ 2,306,586 $ 2,255,389 $ 2,221,245 $ 2,190,391 $ 2,098,712 $ 2,306,586 $ 2,098,712 Adjusted nonperforming assets to total assets 0.62 % 0.43 % 0.46 % 0.49 % 0.53 % 0.62 % 0.53 % PPNR (unaudited) Table 10H As of and for the Three Months Ended As of and for the Year Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 2025 2024 Net income (GAAP-based) $ 7,136 $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 24,892 $ 21,904 Plus: Income tax expense 1,598 2,040 1,064 1,542 950 6,244 5,311 Provision (recovery) for credit losses 1,162 653 752 629 1,240 3,196 553 Pre-tax, pre-provision net revenue $ 9,896 $ 9,434 $ 7,781 $ 7,221 $ 7,894 $ 34,332 $ 27,768 Core Deposits (unaudited) Table 10I As of and for the Three Months Ended As of and for the Year Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 2025 2024 Total Deposits $ 1,987,684 $ 1,949,672 $ 1,968,301 $ 1,937,693 $ 1,834,802 $ 1,987,684 $ 1,834,802 Less: Brokered CDs 307,034 294,908 307,892 287,335 274,898 307,034 274,898 Core deposits(1) $ 1,680,650 $ 1,654,764 $ 1,660,409 $ 1,650,358 $ 1,559,904 $ 1,680,650 $ 1,559,904 (1) The Company defines its core deposits as total deposits, less brokered certificates of deposit. Source: CoastalSouth Bancshares