CORRECTING and REPLACING LOGO CoastalSouth Bancshares, Inc. Reports Earnings for Third Quarter 2025

CORRECTING and REPLACING LOGO CoastalSouth Bancshares, Inc. Reports Earnings for Third Quarter 2025 Please replace the logo with the accompanying corrected logo. The release reads: COASTALSOUTH BANCSHARES, INC. REPORTS EARNINGS FOR THIRD QUARTER 2025 CoastalSouth Bancshares, Inc. (“CoastalSouth” or the “Company”) (NYSE: COSO), the holding company for Coastal States Bank (the “Bank”), today reported net income of $6.7 million, or $0.54 per diluted share, for the third quarter of 2025, compared to approximately $6.0 million, or $0.57 per diluted share, for the second quarter of 2025, and $7.9 million, or $0.75 per diluted share, for the third quarter of 2024. For the year-to-date period ending September 30, 2025, the Company reported net income of $17.8 million, or $1.58 per diluted share, compared with $16.2 million, or $1.55 per diluted share, for the same period in 2024. Commenting on the Company’s results, President and Chief Executive Officer, Stephen R. Stone stated, “Following the completion of our initial public offering on July 2, 2025, the Company continued to deliver excellent financial performance through the third quarter of 2025. Loan production continued to be robust with over $137.3 million in new commitments originated during the third quarter of 2025 while maintaining strong asset quality metrics. Given the recent acceleration of mergers and acquisition activity in our markets, we continue to focus on recruiting new bankers to expand our presence within our markets and grow new relationships." Third Quarter 2025 Performance Highlights: Net income of $6.7 million or $0.54 per diluted shareReturn on average assets ("ROAA") of 1.20%Return on average equity ("ROAE") of 10.84%; Return on average tangible common equity ("ROATCE") of 11.07% 1Net interest margin of 3.58%, an increase of 12 basis points from the second quarter of 2025Efficiency ratio of 55.69% for the third quarter of 2025Loans held for investment ("LHFI") production of $137.3 million in commitments led to LHFI growth of $25.8 million, up 6.7% annualized from the second quarter of 2025Book value per share growth of $0.54, or 10.5% annualized, to $20.91 at September 30, 2025; Tangible book value 1 per share growth of $0.61, or 12.2% annualized, to $20.49 at September 30, 2025 from the second quarter of 2025Total shareholders' equity to total assets of 11.10%, compared to 9.43% at June 30, 2025; Tangible common equity 1 to tangible assets 1 of 10.91%, compared to 9.22% at June 30, 2025Net charge-offs to average loans held for investment of 0.03%Nonperforming assets to total assets of 0.63%; adjusted nonperforming assets to total assets 1 of 0.43%Allowance for credit losses ("ACL") on LHFI to total LHFI of 1.16%; ACL on LHFI to nonperforming loans of 127.03%Completed initial public offering of 2,035,000 shares on July 2, 2025 with an initial offering price of $21.50. The Company issued 1,700,000 shares for net proceeds of $30.2 million following discounts, commissions, and expensesRedeemed $15.0 million of subordinated debt; recognized $236 thousand of accelerated debt issuance expense Operating Highlights Net interest income totaled $19.2 million for the third quarter of 2025, an increase of $1.1 million, or 6.2%, from $18.1 million for the second quarter of 2025 and an increase of $2.2 million, or 13.1% from the third quarter of 2024. The Company’s net interest margin expanded to 3.58% for the third quarter of 2025, a 12 basis point increase from the second quarter of 2025 and a 26 basis point increase from the third quarter of 2024. The yield on average interest-earning assets for the third quarter of 2025 increased to 6.14% from 6.08% for the second quarter of 2025. This increase was primarily related to an overall yield increase in all categories except a 2 basis point decrease in yield on LHFI albeit with an increased average volume of approximately $37.2 million in the LHFI portfolio quarter over quarter. The yield on available-for-sale securities was positively impacted by $225 thousand of premium recognized on corporate bonds that were called ahead of maturity. Compared to the third quarter of 2024, yields on earning assets decreased 23 basis points to 6.14% from 6.37%. The decrease was primarily attributable to a 37 basis point decrease in LHFI, a 26 basis point decrease in the yield on the loans held for sale ("LHFS") portfolio, and a net decrease in other earning assets categories. ____________________ 1 Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of GAAP to non-GAAP financial measures in tables 10A - 10I. The Company’s total cost of funds was 2.79% for the third quarter of 2025, a decrease of 1 basis point and 45 basis points compared with the second quarter of 2025 and third quarter of 2024, respectively. The cost of funds was impacted by the recognition of a $236 thousand debt issuance costs which were accelerated due to redemption of the Company's subordinated debt. Deposit costs decreased 3 basis points during the third quarter of 2025 to 2.72%, compared to 2.75% in the second quarter of 2025. The cost of interest-bearing deposits decreased 4 basis points during the third quarter of 2025 to 3.23%, compared with 3.27% in the second quarter of 2025, reflecting continued repricing of certificates of deposits in the third quarter of 2025. Noninterest income totaled $2.1 million for the third quarter of 2025, an increase of $305 thousand, or 17.0%, from the second quarter of 2025, primarily attributable to an increase in gain on sale of government guaranteed loans ("GGL"). Noninterest expense totaled $11.9 million for the third quarter of 2025, a decrease of $236 thousand, or 2.0%, from the second quarter of 2025, primarily due to lower other professional fees, offset by a net increase in other noninterest expense categories. The Company’s effective tax rate for the third quarter of 2025 was 23.2%, compared to 15.1% for the second quarter of 2025 and 22.1% for the third quarter of 2024. The increase in effective tax rate from the second quarter of 2025 was primarily due to a higher recognition of renewable energy tax credits in the second quarter of 2025. Balance Sheet Trends Total assets were $2.26 billion at September 30, 2025, an increase of $156.7 million, or 7.5%, from $2.10 billion at December 31, 2024. LHFS were $231.6 million at September 30, 2025, an increase of $57.6 million, or 33.1%, from $174.0 million at December 31, 2024. Gross LHFI were $1.55 billion at September 30, 2025, an increase of $143.5 million, or 10.2%, from $1.41 billion at December 31, 2024. Total deposits were $1.95 billion at September 30, 2025, an increase of $114.9 million, or 6.3%, from $1.83 billion at December 31, 2024. Noninterest-bearing deposits were $313.6 million at September 30, 2025, or 16.1% 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 $294.9 million at September 30, 2025, as compared to $274.9 million at December 31, 2024, an increase of $20.0 million, or 7.3%. Credit Quality During the third quarter of 2025, the Company recorded a provision (recovery) for credit losses of $653 thousand, compared to $752 thousand and ($1.0) million during the second quarter of 2025 and third quarter of 2024, respectively. The provision expense recorded during the third quarter of 2025 was primarily due to increased loan production and current period net charge-offs, offset by other changes in loss rates and economic factors. The Company's annualized net charge-offs to average LHFI ratio was 0.03% for the third quarter of 2025 as compared to 0.06% and 0.02% during the second quarter of 2025 and third quarter of 2024, respectively. Nonperforming assets totaled $14.2 million, or 0.63% of total assets, at September 30, 2025 compared to $15.9 million, or 0.76% of total assets at December 31, 2024. The $1.7 million decrease in nonperforming assets at September 30, 2025 from December 31, 2024 was due to the sale of other real estate owned and payments collected on nonaccrual loans during the period. Adjusted nonperforming assets2, which excludes the guaranteed portions of nonaccrual loans, was $9.7 million, or 0.43% of total assets, at September 30, 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. ____________________ 2 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 wards (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 Nine Months Ended (dollars in thousands except September 30, June 30, March 31, December 31, September 30, September 30, September 30, per share amounts) 2025 2025 2025 2024 2024 2025 2024 Selected Operating Data: Interest income $ 32,890 $ 31,793 $ 30,024 $ 30,537 $ 32,554 $ 94,707 $ 93,112 Interest expense 13,700 13,715 13,265 14,266 15,588 40,680 44,061 Net interest income 19,190 18,078 16,759 16,271 16,966 54,027 49,051 Provision (recovery) for credit losses 653 752 629 1,240 (1,023 ) 2,034 (687 ) Noninterest income 2,100 1,795 1,881 1,958 2,961 5,776 2,556 Noninterest expense 11,856 12,092 11,419 10,335 10,830 35,367 31,733 Income tax expense 2,040 1,064 1,542 950 2,236 4,646 4,361 Net income 6,741 5,965 5,050 5,704 7,884 17,756 16,200 Adjusted net income(1) 6,749 5,965 5,050 5,704 7,884 17,764 18,854 Share and Per Share Data: Basic earnings per share $ 0.57 $ 0.58 $ 0.49 $ 0.56 $ 0.77 $ 1.64 $ 1.59 Adjusted basic earnings per share(1) $ 0.57 $ 0.58 $ 0.49 $ 0.56 $ 0.77 $ 1.64 $ 1.85 Diluted earnings per share $ 0.54 $ 0.57 $ 0.47 $ 0.54 $ 0.75 $ 1.58 $ 1.55 Adjusted diluted earnings per share(1) $ 0.54 $ 0.57 $ 0.47 $ 0.54 $ 0.75 $ 1.58 $ 1.81 Book value per share $ 20.91 $ 20.37 $ 19.67 $ 19.01 $ 18.86 $ 20.91 $ 18.86 Tangible book value per share(1) $ 20.49 $ 19.88 $ 19.17 $ 18.51 $ 18.35 $ 20.49 $ 18.35 Shares of common stock outstanding 11,978,921 10,278,921 10,274,271 10,270,146 10,250,446 11,978,921 10,250,446 Weighted average diluted shares outstanding 12,325,462 10,612,255 10,642,078 10,596,364 10,544,087 11,217,972 10,420,646 Selected Balance Sheet Data: Total assets $ 2,255,389 $ 2,221,245 $ 2,190,391 $ 2,098,712 $ 2,129,346 $ 2,255,389 $ 2,129,346 Securities available-for-sale, at fair value(2) 334,955 331,760 325,478 335,267 355,174 334,955 355,174 Gross loans held for investment 1,552,976 1,527,199 1,472,232 1,409,443 1,409,913 1,552,976 1,409,913 Loans held for sale 231,593 209,101 187,481 174,033 193,938 231,593 193,938 Allowance for credit losses 18,028 17,497 17,104 17,118 15,615 18,028 15,615 Goodwill and other intangible assets 6,186 6,190 6,199 6,386 6,451 6,186 6,451 Total deposits 1,949,672 1,968,301 1,937,693 1,834,802 1,807,315 1,949,672 1,807,315 Core deposits(1) 1,654,764 1,660,409 1,650,358 1,559,904 1,628,706 1,654,764 1,628,706 Other borrowings 25,000 14,753 20,738 41,725 96,712 25,000 96,712 Total Shareholders' equity 250,438 209,365 202,104 195,232 193,303 250,438 193,303 (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 Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2025 2025 2025 2024 2024 2025 2024 Performance Ratios: Pre-tax pre-provision net revenue (PPNR)(1) $ 9,434 $ 7,781 $ 7,221 $ 7,894 $ 9,097 $ 24,436 $ 19,874 Return on average assets (ROAA)(2) 1.20 % 1.09 % 0.97 % 1.07 % 1.47 % 1.09 % 1.04 % Adjusted return on average assets (Adj. ROAA)(1)(2) 1.20 1.09 0.97 1.07 1.47 1.09 1.21 Return on average equity(2) 10.84 11.62 10.25 11.65 16.91 10.91 12.30 Adjusted return on average equity(1)(2) 10.85 11.62 10.25 11.65 16.91 10.91 14.32 Return on average tangible common equity (ROATCE)(1)(2) 11.07 11.92 10.52 11.97 17.40 11.17 12.68 Adjusted return on average tangible common equity (Adj. ROATCE)(1)(2) 11.08 11.92 10.52 11.97 17.40 11.18 14.76 Net interest rate spread(2) 2.83 2.76 2.67 2.42 2.48 2.76 2.50 Net interest margin(2) 3.58 3.46 3.38 3.21 3.32 3.48 3.32 Efficiency ratio 55.69 60.85 61.26 56.70 54.35 59.14 61.49 Efficiency ratio, as adjusted(1) 55.66 60.85 61.26 56.70 54.35 59.13 57.62 Noninterest income to average total assets(2) 0.37 0.33 0.36 0.37 0.55 0.35 0.16 Noninterest income to total revenue 9.86 9.03 10.09 10.74 14.86 9.66 4.95 Adjusted noninterest income to total adjusted revenue(1) 9.91 9.03 10.09 10.74 14.86 9.67 10.93 Noninterest expense to average total assets(2) 2.11 2.21 2.19 1.94 2.02 2.17 2.04 Average interest-earning assets to average interest-bearing liabilities 129.16 126.50 126.31 127.90 127.59 127.34 127.63 Average equity to average total assets 11.08 9.37 9.46 9.20 8.70 9.99 8.47 Asset Quality Data: Net charge-offs to average LHFI(2) 0.03 % 0.06 % 0.00 % (0.02 ) % 0.02 % 0.03 % 0.02 % Net charge-offs to total average loans(2) 0.03 0.05 0.00 (0.02 ) 0.02 0.03 0.02 Total allowance for credit losses to total LHFI 1.16 1.15 1.16 1.21 1.11 1.16 1.11 Total allowance for credit losses to total loans 1.01 1.01 1.03 1.08 0.97 1.01 0.97 Total allowance for credit losses to nonperforming loans 127.03 118.99 117.11 114.07 184.64 127.03 184.64 Nonperforming loans to gross LHFI 0.91 0.96 0.99 1.06 0.60 0.91 0.60 Nonperforming assets to total assets 0.63 0.66 0.70 0.76 0.44 0.63 0.44 Adjusted nonperforming assets to total assets(1) 0.43 0.46 0.49 0.53 0.21 0.43 0.21 Balance Sheet and Capital Ratios: Loan-to-deposit ratio 91.53 % 88.21 % 85.65 % 86.30 % 88.74 % 91.53 % 88.74 % Noninterest bearing deposits to total deposits 16.08 15.92 15.52 16.51 17.28 16.08 17.28 Total shareholders' equity to total assets 11.10 9.43 9.23 9.30 9.08 11.10 9.08 Tangible common equity to tangible assets(1) 10.91 9.22 9.01 9.08 8.86 10.91 8.86 Tier 1 leverage ratio(3) 11.15 10.22 10.62 10.64 10.26 11.15 10.26 Common equity tier 1 ratio(3) 11.94 11.09 11.55 12.07 11.72 11.94 11.72 Tier 1 risk-based capital ratio(3) 11.94 11.09 11.55 12.07 11.72 11.94 11.72 Total risk-based capital ratio(3) 12.90 12.04 12.52 12.97 12.55 12.90 12.55 Other: Number of branches 11 11 11 11 11 11 11 Number of full-time equivalent employees 194 188 180 181 181 187 180 (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 September 30, 2025 are preliminary. Quarter End Balance Sheets (unaudited) Table 2 September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2025 2025 2025 2024 2024 Assets Cash and due from banks $ 20,088 $ 23,245 $ 19,380 $ 37,320 $ 17,722 Federal funds sold 6,191 20,045 79,153 30,641 43,602 Investment securities(1) 342,990 338,601 332,312 342,750 361,935 Loans held for sale (LHFS) 231,593 209,101 187,481 174,033 193,938 Loans held for investment (LHFI) 1,552,976 1,527,199 1,472,232 1,409,443 1,409,913 Allowance for credit losses on LHFI (18,028 ) (17,497 ) (17,104 ) (17,118 ) (15,615 ) Loans held for investment, net 1,534,948 1,509,702 1,455,128 1,392,325 1,394,298 Bank-owned life insurance 47,833 47,373 46,924 46,484 46,044 Premises, furniture and equipment, net 18,186 18,166 17,837 17,796 17,882 Deferred tax asset 16,262 17,211 17,123 18,148 16,772 Goodwill & intangible assets(2) 6,186 6,190 6,199 6,386 6,451 Other assets 31,112 31,611 28,854 32,829 30,702 Total assets $ 2,255,389 $ 2,221,245 $ 2,190,391 $ 2,098,712 $ 2,129,346 Liabilities and shareholders' equity Liabilities Deposits Noninterest bearing transaction accounts $ 313,604 $ 313,386 $ 300,678 $ 302,907 $ 312,290 Interest-bearing transaction accounts 198,753 209,816 191,452 181,068 183,707 Savings and money market 634,826 628,729 650,050 591,626 654,192 Time deposits 802,489 816,370 795,513 759,201 657,126 Total deposits 1,949,672 1,968,301 1,937,693 1,834,802 1,807,315 Federal Home Loan Bank of Atlanta advances 25,000 - - 15,000 - Subordinated debt, net - 14,753 14,741 14,730 14,718 Revolving commercial line of credit, net - - 5,997 11,995 11,994 Federal Reserve Bank - Bank Term Funding Program ("BTFP") advances - - - - 70,000 Other liabilities 30,279 28,826 29,856 26,953 32,016 Total liabilities 2,004,951 2,011,880 1,988,287 1,903,480 1,936,043 Shareholders' equity Voting common stock 10,449 8,107 8,102 8,098 8,078 Nonvoting common stock 1,530 2,172 2,172 2,172 2,172 Capital surplus 189,654 159,267 158,997 158,755 158,463 Accumulated income 59,750 53,009 47,044 41,994 36,290 Accumulated other comprehensive loss (10,945 ) (13,190 ) (14,211 ) (15,787 ) (11,700 ) Total shareholders' equity 250,438 209,365 202,104 195,232 193,303 Total liabilities and shareholders' equity $ 2,255,389 $ 2,221,245 $ 2,190,391 $ 2,098,712 $ 2,129,346 (1) No ACL was recognized for the periods presented. (2) Includes commercial mortgage servicing rights of $1.2 million, $1.1 million, $1.1 million, $1.2 million, and $1.3 million for September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024, respectively. Statements of Operations (unaudited) Table 3 Three Months Ended Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2025 2025 2025 2024 2024 2025 2024 Interest income Interest on cash and due from banks $ 129 $ 111 $ 135 $ 122 $ 131 $ 375 $ 412 Interest on federal funds sold 616 698 963 870 1,045 2,277 2,881 Interest and dividends on investment securities 4,125 3,875 3,800 3,994 4,171 11,800 12,052 Interest and fees on LHFS 3,422 3,296 2,819 3,404 2,993 9,537 6,868 Interest and fees on LHFI 24,598 23,813 22,307 22,147 24,214 70,718 70,899 Total interest income 32,890 31,793 30,024 30,537 32,554 94,707 93,112 Interest expense Deposits 13,274 13,251 12,830 13,498 14,230 39,355 39,945 Other borrowings 426 464 435 768 1,358 1,325 4,116 Total interest expense 13,700 13,715 13,265 14,266 15,588 40,680 44,061 Net interest income 19,190 18,078 16,759 16,271 16,966 54,027 49,051 Provision (recovery) for credit losses 653 752 629 1,240 (1,023 ) 2,034 (687 ) Net interest income after provision for credit losses 18,537 17,326 16,130 15,031 17,989 51,993 49,738 Noninterest income Mortgage banking related income 299 326 221 391 276 846 813 Interchange and card fee income 238 257 266 210 216 761 658 Service charges on deposit accounts 208 215 211 230 207 634 617 Bank-owned life insurance 461 449 440 440 437 1,350 1,224 Gain on sale of government guaranteed loans 613 265 - 151 1,312 878 1,666 Losses on sale of available-for-sale securities (10 ) - - - - (10 ) (3,465 ) Other noninterest income 291 283 743 536 513 1,317 1,043 Total noninterest income 2,100 1,795 1,881 1,958 2,961 5,776 2,556 Noninterest expense Salaries and employee benefits 6,985 6,997 6,694 6,759 6,727 20,676 19,428 Occupancy and equipment 850 814 788 762 754 2,452 2,233 Data processing 647 653 624 605 548 1,924 1,608 Other professional services 571 973 693 496 358 2,237 1,550 Software and other technology expense 788 719 703 774 671 2,210 1,968 Regulatory assessment 419 344 361 336 344 1,124 955 Other noninterest expense 1,596 1,592 1,556 603 1,428 4,744 3,991 Total noninterest expense 11,856 12,092 11,419 10,335 10,830 35,367 31,733 Net income before taxes 8,781 7,029 6,592 6,654 10,120 22,402 20,561 Income tax expense 2,040 1,064 1,542 950 2,236 4,646 4,361 Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200 QTD Average Balances and Yields/Rates (unaudited) Table 4 Three Months Ended September 30, 2025 June 30, 2025 September 30, 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 $ 21,058 $ 129 2.43 % $ 20,762 $ 111 2.14 % $ 20,317 $ 131 2.57 % Federal funds sold 52,240 616 4.68 % 62,656 698 4.47 % 76,290 1,045 5.45 % Investment securities 339,619 4,125 4.82 % 338,635 3,875 4.59 % 353,121 4,171 4.70 % Loans held for sale 167,424 3,422 8.11 % 167,617 3,296 7.89 % 142,205 2,993 8.37 % Loans held for investment 1,543,363 24,598 6.32 % 1,506,211 23,813 6.34 % 1,439,835 24,214 6.69 % Total earning assets 2,123,704 32,890 6.14 % 2,095,881 31,793 6.08 % 2,031,768 32,554 6.37 % Noninterest-earning assets: Allowance for credit losses on LHFI (17,504 ) (17,110 ) (15,992 ) Bank-owned life insurance 47,569 47,119 45,798 Premises, furniture and equipment, net 18,241 18,034 17,751 Deferred tax asset 17,159 17,182 18,255 Goodwill & intangible assets 6,176 6,168 6,257 Other assets 30,633 29,442 26,648 Total noninterest-earning assets 102,274 100,835 98,717 Total assets $ 2,225,978 $ 2,196,716 $ 2,130,485 Interest-bearing liabilities: Interest-bearing deposits $ 1,631,767 $ 13,274 3.23 % $ 1,626,415 $ 13,251 3.27 % $ 1,495,726 $ 14,230 3.78 % Federal Reserve Bank - BTFP - - 0.00 % - - 0.00 % 70,000 863 4.90 % Federal funds purchased - - 0.00 % 38 1 10.56 % - - 0.00 % Federal Home Loan Bank of Atlanta advances 272 3 4.38 % 10,000 116 4.65 % - - 0.00 % Revolving commercial line of credit, net - - 0.00 % 5,667 112 7.93 % 11,994 260 8.62 % Subordinated debt, net 12,191 423 13.77 % 14,747 235 6.39 % 14,712 235 6.35 % Total interest-bearing liabilities 1,644,230 13,700 3.31 % 1,656,867 13,715 3.32 % 1,592,432 15,588 3.89 % Noninterest-bearing liabilities: Noninterest-bearing deposits 306,133 306,330 323,377 Other liabilities 28,927 27,682 29,242 Total noninterest-bearing liabilities 335,060 334,012 352,619 Shareholders' equity 246,688 205,837 185,434 Total liabilities and shareholders' equity $ 2,225,978 $ 2,196,716 $ 2,130,485 Net interest income $ 19,190 $ 18,078 $ 16,966 Net interest spread 2.83 % 2.76 % 2.48 % Net interest margin 3.58 % 3.46 % 3.32 % Cost of total deposits(1) 2.72 % 2.75 % 3.11 % Cost of total funding(1) 2.79 % 2.80 % 3.24 % (1) Includes noninterest bearing deposits. YTD Average Balances and Yields/Rates (unaudited) Table 5 Nine Months Ended September 30, 2025 September 30, 2024 Average Yield/ Average Yield/ (dollars in thousands) Balance Interest Rate Balance Interest Rate Earning assets: Cash and due from banks $ 21,509 $ 375 2.33 % $ 20,762 $ 412 2.65 % Federal funds sold 67,659 2,277 4.50 % 68,963 2,881 5.58 % Investment securities 337,852 11,800 4.67 % 351,623 12,052 4.58 % Loans held for sale 157,409 9,537 8.10 % 107,145 6,868 8.56 % Loans held for investment 1,493,081 70,718 6.33 % 1,424,289 70,899 6.65 % Total earning assets 2,077,510 94,707 6.09 % 1,972,782 93,112 6.30 % Noninterest-earning assets: Allowance for credit losses on LHFI (17,245 ) (15,936 ) Bank-owned life insurance 47,123 45,380 Premises, furniture and equipment, net 18,044 17,682 Deferred tax asset 17,379 19,570 Goodwill & intangible assets 6,224 6,352 Other assets 29,935 31,315 Total noninterest-earning assets 101,460 104,363 Total assets $ 2,178,970 $ 2,077,145 Interest-bearing liabilities: Interest-bearing deposits $ 1,608,583 $ 39,355 3.27 % $ 1,448,419 $ 39,945 3.68 % Federal Reserve Bank - BTFP - - 0.00 % 67,701 2,485 4.90 % Federal funds purchased 13 1 10.28 % - - 0.00 % Federal Home Loan Bank of Atlanta advances 3,809 131 4.60 % 1,825 77 5.64 % Revolving commercial line of credit, net 5,141 300 7.80 % 13,043 849 8.69 % Subordinated debt, net 13,882 893 8.60 % 14,700 705 6.41 % Total interest-bearing liabilities 1,631,428 40,680 3.33 % 1,545,688 44,061 3.81 % Noninterest-bearing liabilities: Noninterest bearing deposits 301,997 325,923 Other liabilities 27,944 29,639 Total noninterest-bearing liabilities 329,941 355,562 Shareholders' equity 217,601 175,895 Total liabilities and shareholders' equity $ 2,178,970 $ 2,077,145 Net interest income $ 54,027 $ 49,051 Net interest spread 2.76 % 2.49 % Net interest margin 3.48 % 3.32 % Cost of total deposits(1) 2.75 % 3.01 % Cost of total funding (1) 2.81 % 3.14 % (1) Includes noninterest bearing deposits. Loan Data (unaudited) Table 6 As of the Quarter Ended September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 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 $ 106,787 6.9 % $ 100,528 6.6 % $ 76,453 5.2 % $ 72,520 5.2 % $ 112,275 8.0 % Income producing CRE 371,670 23.9 372,142 24.4 352,693 24.0 321,558 22.8 267,551 19.0 Owner-occupied CRE 96,287 6.2 91,147 6.0 90,204 6.1 94,573 6.7 95,789 6.8 Senior housing 223,719 14.4 236,474 15.5 245,292 16.7 234,081 16.6 231,260 16.4 Commercial and industrial 135,039 8.7 131,716 8.6 145,784 9.8 141,626 10.0 140,290 10.0 Retail Loans Marine vessels 318,246 20.5 301,327 19.7 284,305 19.3 263,657 18.6 279,689 19.8 Residential mortgages 190,220 12.2 185,527 12.1 176,794 12.0 174,099 12.4 173,392 12.3 Cash value life insurance LOC 90,115 5.8 87,135 5.7 80,503 5.5 86,844 6.2 87,968 6.2 Other consumer 20,893 1.4 21,203 1.4 20,204 1.4 20,485 1.5 21,699 1.5 Gross loans held for investment $ 1,552,976 100.0 % $ 1,527,199 100.0 % $ 1,472,232 100.0 % $ 1,409,443 100.0 % $ 1,409,913 100.0 % Core LHFI 1,492,992 1,464,200 1,406,199 1,342,073 1,341,135 Acquired LHFI(1) 59,984 62,999 66,033 67,370 68,778 Gross loans held for investment $ 1,552,976 $ 1,527,199 $ 1,472,232 $ 1,409,443 $ 1,409,913 Allowance for credit losses on LHFI 18,028 17,497 17,104 17,118 15,615 Net loans held for investment $ 1,534,948 $ 1,509,702 $ 1,455,128 $ 1,392,325 $ 1,394,298 Total loans held-for-sale 231,593 209,101 187,481 174,033 193,938 Total Loans $ 1,784,569 $ 1,736,300 $ 1,659,713 $ 1,583,476 $ 1,603,851 (1) Includes loans acquired through business combinations. Nonperforming Assets (unaudited) Table 7 As of the Quarter Ended (dollars in thousands) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Nonaccrual loans $ 14,171 $ 14,611 $ 14,599 $ 14,957 $ 8,408 Past due loans 90 days and still accruing 21 93 6 49 49 Total nonperforming loans $ 14,192 $ 14,704 $ 14,605 $ 15,006 $ 8,457 Other real estate owned - - 765 864 864 Total nonperforming assets $ 14,192 $ 14,704 $ 15,370 $ 15,870 $ 9,321 Nonperforming loans to gross LHFI 0.91 % 0.96 % 0.99 % 1.06 % 0.60 % Nonaccrual loans to total assets 0.63 % 0.66 % 0.67 % 0.71 % 0.39 % Nonperforming assets to total assets 0.63 % 0.66 % 0.70 % 0.76 % 0.44 % Allowance for Credit Losses (unaudited) Table 8 As of and for the Three Months Ended As of and for the Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2025 2025 2025 2024 2024 2025 2024 Allowance for credit losses on LHFI Balance, beginning of period $ 17,497 $ 17,104 $ 17,118 $ 15,615 $ 16,002 $ 17,118 $ 15,465 Net charge-offs/(recoveries): Commercial Loans Acquisition, development and construction - - - - - - - Income producing CRE - - - - - - - Owner-occupied CRE - - - (53 ) - - - Senior housing - - - - - - - Commercial and industrial (29 ) 19 1 3 30 (9 ) 126 Retail Loans Marine vessels - - - - 36 - 36 Residential mortgages (2 ) (2 ) (2 ) (2 ) (7 ) (6 ) (13 ) Cash value life insurance LOC - - - - - - - Other consumer 156 191 16 (25 ) 27 363 24 Total net charge-offs/(recoveries) $ 125 $ 208 $ 15 $ (77 ) $ 86 $ 348 $ 173 Provision (recovery) for loan credit losses 656 601 1 1,426 (301 ) 1,258 323 Balance, ending of period $ 18,028 $ 17,497 $ 17,104 $ 17,118 $ 15,615 $ 18,028 $ 15,615 Allowance for credit losses for unfunded commitments Period beginning balance $ 3,499 $ 3,348 $ 2,720 $ 2,906 $ 3,628 $ 2,720 $ 3,916 (Recovery) provision for credit losses (3 ) 151 628 (186 ) (722 ) 776 (1,010 ) Period ending balance $ 3,496 $ 3,499 $ 3,348 $ 2,720 $ 2,906 $ 3,496 $ 2,906 Balance, end of period - Allowance for credit losses: LHFI and unfunded commitments $ 21,524 $ 20,996 $ 20,452 $ 19,838 $ 18,521 $ 21,524 $ 18,521 Total loans held for investment $ 1,552,976 $ 1,527,199 $ 1,472,232 $ 1,409,443 $ 1,409,913 $ 1,552,976 $ 1,409,913 Credit Analysis Net charge-offs to average LHFI 0.03 % 0.06 % 0.00 % (0.02 )% 0.02 % 0.03 % 0.02 % Total allowance for credit losses on LHFI to total LHFI 1.16 % 1.15 % 1.16 % 1.21 % 1.11 % 1.16 % 1.11 % Total allowance for credit losses on LHFI to nonaccrual loans 127.22 % 119.75 % 117.16 % 114.45 % 185.72 % 127.22 % 185.72 % Total allowance for credit losses on LHFI to total nonperforming loans 127.03 % 118.99 % 117.11 % 114.07 % 184.64 % 127.03 % 184.64 % Loan Risk Ratings(1) (2) (unaudited) Table 9 As of the Quarter Ended (dollars in thousands) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Acquisition, development and construction(1) Pass $ 106,787 $ 100,528 $ 76,453 $ 72,520 $ 112,275 Special mention - - - - - Substandard - - - - - Total acquisition, development and construction $ 106,787 $ 100,528 $ 76,453 $ 72,520 $ 112,275 Income producing CRE(1) Pass $ 370,788 $ 371,255 $ 352,281 $ 321,146 $ 262,287 Special mention - - - - 4,852 Substandard 882 887 412 412 412 Total income producing $ 371,670 $ 372,142 $ 352,693 $ 321,558 $ 267,551 Owner-occupied CRE(1) Pass $ 86,533 $ 81,244 $ 83,711 $ 87,906 $ 89,133 Special mention 3,579 3,612 - - 1,838 Substandard 6,175 6,291 6,493 6,667 4,818 Total owner occupied $ 96,287 $ 91,147 $ 90,204 $ 94,573 $ 95,789 Senior housing(1) Pass $ 205,330 $ 217,971 $ 208,922 $ 190,084 $ 184,178 Special mention 12,006 12,078 24,814 25,025 17,493 Substandard 6,383 6,425 11,556 18,972 29,589 Total senior housing $ 223,719 $ 236,474 $ 245,292 $ 234,081 $ 231,260 Commercial and industrial(2) Pass $ 128,468 $ 124,979 $ 141,202 $ 136,878 $ 135,476 Special mention 2,402 2,199 - 36 189 Substandard 4,169 4,538 4,582 4,712 4,625 Total non-real estate $ 135,039 $ 131,716 $ 145,784 $ 141,626 $ 140,290 Marine vessels(2) Performing $ 318,246 $ 301,327 $ 284,305 $ 263,657 $ 279,689 Nonperforming - - - - - Total marine vessels $ 318,246 $ 301,327 $ 284,305 $ 263,657 $ 279,689 Residential mortgages(2) Performing $ 190,059 $ 185,162 $ 176,633 $ 173,834 $ 173,122 Nonperforming 161 365 161 265 270 Total residential mortgages $ 190,220 $ 185,527 $ 176,794 $ 174,099 $ 173,392 Cash value life insurance LOC(2) Performing $ 90,115 $ 87,135 $ 80,503 $ 86,844 $ 87,968 Nonperforming - - - - - Total cash value life insurance LOC $ 90,115 $ 87,135 $ 80,503 $ 86,844 $ 87,968 Other consumer(2) Performing $ 20,872 $ 21,203 $ 20,204 $ 20,442 $ 21,699 Nonperforming 21 - - 43 - Total other consumer $ 20,893 $ 21,203 $ 20,204 $ 20,485 $ 21,699 Gross loans held for investment $ 1,552,976 $ 1,527,199 $ 1,472,232 $ 1,409,443 $ 1,409,913 (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, 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, and tangible common equity to tangible assets 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, 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 Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands, except per share data) 2025 2025 2025 2024 2024 2025 2024 Tangible Common Equity: Total shareholders' equity $ 250,438 $ 209,365 $ 202,104 $ 195,232 $ 193,303 $ 250,438 $ 193,303 Less: Goodwill and intangibles (6,186 ) (6,190 ) (6,199 ) (6,386 ) (6,451 ) (6,186 ) (6,451 ) Adjusted for: Mortgage servicing rights 1,156 1,122 1,093 1,237 1,258 1,156 1,258 Tangible Common Equity $ 245,408 $ 204,297 $ 196,998 $ 190,083 $ 188,110 $ 245,408 $ 188,110 Common shares outstanding 11,978,921 $ 10,278,921 10,274,271 10,270,146 10,250,446 11,978,921 10,250,446 Book value per common share 20.91 20.37 19.67 19.01 18.86 20.91 18.86 Tangible book value per common share 20.49 19.88 19.17 18.51 18.35 20.49 18.35 Tangible assets: Total assets $ 2,255,389 $ 2,221,245 $ 2,190,391 $ 2,098,712 $ 2,129,346 $ 2,255,389 $ 2,129,346 Less: Goodwill and intangibles (6,186 ) (6,190 ) (6,199 ) (6,386 ) (6,451 ) (6,186 ) (6,451 ) Adjusted for: Mortgage servicing rights 1,156 1,122 1,093 1,237 1,258 1,156 1,258 Tangible assets $ 2,250,359 $ 2,216,177 $ 2,185,285 $ 2,093,563 $ 2,124,153 $ 2,250,359 $ 2,124,153 Tangible common equity to tangible assets 10.91 % 9.22 % 9.01 % 9.08 % 8.86 % 10.91 % 8.86 % ROATCE / Adjusted ROATCE (unaudited) Table 10B As of and for the Three Months Ended As of and for the Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2025 2025 2025 2024 2024 2025 2024 Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200 Average shareholders' equity 246,688 205,837 199,763 194,724 185,434 217,601 175,895 Return on average shareholders' equity(1) 10.84 % 11.62 % 10.25 % 11.65 % 16.91 % 10.91 % 12.30 % Average Tangible Common Equity: Average shareholders' equity $ 246,688 $ 205,837 $ 199,763 $ 194,724 $ 185,434 $ 217,601 $ 175,895 Less: Average goodwill and intangibles (6,176 ) (6,168 ) (6,328 ) (6,432 ) (6,257 ) (6,224 ) (6,352 ) Adjusted for: Average mortgage servicing rights 1,128 1,082 1,198 1,263 1,041 1,136 1,089 Average tangible common equity $ 241,640 $ 200,751 $ 194,633 $ 189,555 $ 180,218 $ 212,513 $ 170,632 Return on average tangible common(1) shareholders' equity 11.07 % 11.92 % 10.52 % 11.97 % 17.40 % 11.17 % 12.68 % Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200 Adjusted for: Loss on sale of AFS securities, net of tax(2) 8 - - - - 8 2,654 Adjusted net income $ 6,749 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,764 $ 18,854 Average tangible common equity $ 241,640 $ 200,751 $ 194,633 $ 189,555 $ 180,218 $ 212,513 $ 170,632 Adjusted return on average tangible common equity(1) 11.08 % 11.92 % 10.52 % 11.97 % 17.40 % 11.18 % 14.76 % (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 Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2025 2025 2025 2024 2024 2025 2024 GAAP-based efficiency ratio 55.69 % 60.85 % 61.26 % 56.70 % 54.35 % 59.14 % 61.49 % Net interest income $ 19,190 $ 18,078 $ 16,759 $ 16,271 $ 16,966 $ 54,027 $ 49,051 Noninterest income 2,100 1,795 1,881 1,958 2,961 5,776 2,556 Adjusted for: Loss on sale of AFS securities(1) 10 - - - - 10 3,465 Adjusted revenue $ 21,300 $ 19,873 $ 18,640 $ 18,229 $ 19,927 $ 59,813 $ 55,072 Total noninterest expense 11,856 12,092 11,419 10,335 10,830 35,367 31,733 Adjusted noninterest expense $ 11,856 $ 12,092 $ 11,419 $ 10,335 $ 10,830 $ 35,367 $ 31,733 Efficiency ratio, as adjusted 55.66 % 60.85 % 61.26 % 56.70 % 54.35 % 59.13 % 57.62 % Noninterest income to total revenue 9.86 % 9.03 % 10.09 % 10.74 % 14.86 % 9.66 % 4.95 % Adjusted noninterest income to total adjusted revenue 9.91 % 9.03 % 10.09 % 10.74 % 14.86 % 9.67 % 10.93 % (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 Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2025 2025 2025 2024 2024 2025 2024 Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200 Average assets 2,225,978 2,196,716 2,111,196 2,117,357 2,130,485 2,178,970 2,077,145 Return on average assets (1) 1.20 % 1.09 % 0.97 % 1.07 % 1.47 % 1.09 % 1.04 % Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200 Adjusted for: Loss on sale of AFS securities, net of tax(2) 8 - - - - 8 2,654 Adjusted net income $ 6,749 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,764 $ 18,854 Average assets $ 2,225,978 $ 2,196,716 $ 2,111,196 $ 2,117,357 $ 2,130,485 $ 2,178,970 $ 2,077,145 Adjusted return on average assets(1) 1.20 % 1.09 % 0.97 % 1.07 % 1.47 % 1.09 % 1.21 % (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 Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2025 2025 2025 2024 2024 2025 2024 Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200 Average shareholders' equity 246,688 205,837 199,763 194,724 185,434 217,601 175,895 Return on average shareholders' equity(1) 10.84 % 11.62 % 10.25 % 11.65 % 16.91 % 10.91 % 12.30 % Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200 Adjusted for: Loss on sale of AFS securities, net of tax(2) 8 - - - - 8 2,654 Adjusted net income $ 6,749 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,764 $ 18,854 Average shareholders' equity $ 246,688 $ 205,837 $ 199,763 $ 194,724 $ 185,434 $ 217,601 $ 175,895 Adjusted return on average shareholders' equity(1) 10.85 % 11.62 % 10.25 % 11.65 % 16.91 % 10.91 % 14.32 % (1) Represents annualized data. (2) 2024 consists of loss on sale of AFS securities due to non-routine portfolio restructuring. Non-GAAP Reconciliations 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 Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands, except per share data) 2025 2025 2025 2024 2024 2025 2024 Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200 Average common shares outstanding - basic 11,941,965 10,277,721 10,273,125 10,250,446 10,250,446 10,837,050 10,180,788 Basic earnings per share $ 0.57 $ 0.58 $ 0.49 $ 0.56 $ 0.77 $ 1.64 $ 1.59 Average common shares outstanding - diluted 12,325,462 10,612,255 10,642,078 10,596,364 10,544,087 11,217,972 10,420,646 Diluted earnings per share $ 0.54 $ 0.57 $ 0.47 $ 0.54 $ 0.75 $ 1.58 $ 1.55 Net income $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200 Adjusted for: Loss on sale of AFS securities, net of tax(1) 8 - - - - 8 2,654 Adjusted net income $ 6,749 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,764 $ 18,854 Adjusted basic earnings per share $ 0.57 $ 0.58 $ 0.49 $ 0.56 $ 0.77 $ 1.64 $ 1.85 Adjusted diluted earnings per share $ 0.54 $ 0.57 $ 0.47 $ 0.54 $ 0.75 $ 1.58 $ 1.81 (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 Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2025 2025 2025 2024 2024 2025 2024 Total nonperforming assets $ 14,192 $ 14,704 $ 15,370 $ 15,870 $ 9,321 $ 14,192 $ 9,321 Total assets 2,255,389 2,221,245 2,190,391 2,098,712 2,129,346 2,255,389 2,129,346 GAAP-based nonperforming assets to total assets 0.63 % 0.66 % 0.70 % 0.76 % 0.44 % 0.63 % 0.44 % Total nonperforming assets $ 14,192 $ 14,704 $ 15,370 $ 15,870 $ 9,321 $ 14,192 $ 9,321 Adjusted for: Guaranteed portions of nonaccrual loans 4,457 4,583 4,692 4,811 4,916 4,457 4,916 Adjusted total nonperforming assets $ 9,735 $ 10,121 $ 10,678 $ 11,059 $ 4,405 $ 9,735 $ 4,405 Total assets $ 2,255,389 $ 2,221,245 $ 2,190,391 $ 2,098,712 $ 2,129,346 $ 2,255,389 $ 2,129,346 Adjusted nonperforming assets to total assets 0.43 % 0.46 % 0.49 % 0.53 % 0.21 % 0.43 % 0.21 % PPNR (unaudited) Table 10H As of and for the Three Months Ended As of and for the Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2025 2025 2025 2024 2024 2025 2024 Net income (GAAP-based) $ 6,741 $ 5,965 $ 5,050 $ 5,704 $ 7,884 $ 17,756 $ 16,200 Plus: Income tax expense 2,040 1,064 1,542 950 2,236 4,646 4,361 Provision (recovery) for credit losses 653 752 629 1,240 (1,023 ) 2,034 (687 ) Pre-tax, pre-provision net revenue $ 9,434 $ 7,781 $ 7,221 $ 7,894 $ 9,097 $ 24,436 $ 19,874 Core Deposits (unaudited) Table 10I As of and for the Three Months Ended As of and for the Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2025 2025 2025 2024 2024 2025 2024 Total Deposits $ 1,949,672 $ 1,968,301 $ 1,937,693 $ 1,834,802 $ 1,807,315 $ 1,949,672 $ 1,807,315 Less: Brokered CDs 294,908 307,892 287,335 274,898 178,609 294,908 178,609 Core deposits(1) $ 1,654,764 $ 1,660,409 $ 1,650,358 $ 1,559,904 $ 1,628,706 $ 1,654,764 $ 1,628,706 (1) The Company defines its core deposits as total deposits, less brokered certificates of deposits. Source: CoastalSouth Bancshares