Coastal Carolina Bancshares, Inc. Reports Record Third Quarter Results

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Coastal Carolina Bancshares (OTCQX: CCNB) reported record Q3 2025 results with net income $2.96M ($0.47/share), up 18% vs. Q2 2025 and 32% vs. Q3 2024. YTD net income $7.85M ($1.24/share), up 34% YoY.

Key balance-sheet highlights at September 30, 2025: total assets $1.21B, loans $911M, deposits $1.096B, and book value/share $13.51 (tangible $13.02). Capital ratios remain above well-capitalized thresholds: Tier 1 11.85%, Total 12.98%.

Credit metrics: non-performing assets 0.00%, no OREO, allowance for credit losses 1.07% of loans. Net interest margin was 3.46% and net interest income was $9.85M for the quarter.

Positive

• Net income Q3 2025 of $2.96M (18% linked-quarter increase)
• Year-to-date net income of $7.85M (34% YoY)
• Loans grew $32M in Q3 to $911M
• Deposits increased $16M in Q3 to $1.096B and +11% YTD
• Book value per share rose to $13.51 and tangible book to $13.02
• Capital ratios exceed well-capitalized levels: Tier 1 11.85%, Total 12.98%

Negative

• Net interest margin compressed to 3.46% from 3.59% sequentially
• Provision for loan losses of $430K in Q3 increased CECL reserve to $10.2M
• Total noninterest expense remained elevated at $6.35M for the quarter

MYRTLE BEACH, SC / ACCESS Newswire / October 20, 2025 / Coastal Carolina Bancshares, Inc. (the "Company") (OTCQX:CCNB), parent of Coastal Carolina National Bank (the "Bank"), reported unaudited financial results for the third quarter of 2025. The Company reported net income for the three months ended September 30, 2025, of $2,959,053 or $0.47 per share, compared to $2,235,070 or $0.36 per share for the same period in the prior year and $2,515,712 or $0.40 per share for the prior quarter ended June 30, 2025. The Company reported net income of $7,852,054 or $1.24 per share for the nine months ended September 30, 2025, compared to $5,842,714 or $0.94 per share for the same period ended September 30, 2024.

2025 Third Quarter Financial Highlights

• Quarterly net income of $3.0 million, an increase of 18% over the most recent linked quarter and 32% over the third quarter of 2024

• Net income for the nine months ended September 30, 2025, of $7.9 million, an increase of 34% over the same period in 2024

• Quarterly and Year-To-Date Return on Average Equity of 14.27% and 13.11%, respectively

• Increased book value per share and tangible book value per share to $13.51 and $13.02 at September 30, 2025, from $12.07 and $11.56 at December 31, 2024

• Quarterly deposit growth of $16 million or 2% (6% annualized) from $1,080 million at June 30, 2025, to $1,096 million at September 30, 2025

• Year-To-Date deposit growth of $108 million or 11% (14% annualized)

• Quarterly loan growth of $32 million or 4% (14% annualized) from $880 million at June 30, 2025, to $911 million at September 30, 2025

• Year-To-Date loan growth of $74 million or 9% (12% annualized)

• Exceptional credit quality metrics with a non-performing assets ratio of 0.0% and no OREO

Coastal Carolina Bancshares, Inc.
Selected Financial Highlights
(unaudited)

		Sept 30, 2025				June 30, 2025				Mar 31, 2025				Dec 31, 2024				Sept 30, 2024
Balance Sheet (In Thousands)
Total Assets		$	1,209,800			$	1,187,475			$	1,107,714			$	1,090,310			$	1,100,242
Investment Securities			88,226				84,969				89,543				95,786				93,790
Loans, excluding loans HFS			911,427				879,837				862,802				837,325				816,470
Deposits			1,096,364				1,079,874				1,002,265				988,838				998,895
Shareholders' Equity			85,191				80,705				78,700				75,309				74,110
Total Shares Outstanding (1)			6,303,722				6,302,722				6,262,886				6,241,589				6,241,589
Book Value per Share		$	13.51			$	12.80			$	12.57			$	12.07			$	11.87
Tangible Book Value Per Share		$	13.02			$	12.31			$	12.07			$	11.56			$	11.37

Selected % Increases		3rd Qtr 2025				2nd Qtr 2025				1st Qtr 2025				4th Qtr 2024				3rd Qtr 2024
Total Assets			2	%			7	%			2	%			-1	%			3	%
Total Loans			4	%			2	%			3	%			3	%			3	%
Total Deposits			2	%			8	%			1	%			-1	%			3	%
Selected Ratios
Loan Loss Reserve to Total Loans			1.07	%			1.06	%			1.03	%			1.02	%			1.02	%
Non-Performing Assets (excl TDRs) to Total Assets			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
Net Charge-Offs to Avg Total Loans (annualized)			0.00	%			0.00	%			0.00	%			0.00	%			0.01	%

		For the				For the				For the				For the				For the
		Three Months Ended				Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
		September 30, 2025				June 30, 2025				September 30, 2024				September 30, 2025				September 30, 2024
Earnings Breakdown (In Thousands)
Total Interest Income		$	16,468			$	15,110			$	14,455			$	45,944			$	39,688
Total Interest Expense			6,620				5,775				6,259				17,803				17,083
Net Interest Income			9,848				9,335				8,196				28,141				22,605
Total Noninterest Income			657				602				655				1,869				1,721
Total Noninterest Expense			6,345				6,256				5,732				18,850				16,502
Provision for Loan Losses			430				480				305				1,245				495
Income Before Taxes			3,730				3,201				2,814				9,915				7,329
Taxes			771				685				579				2,063				1,486
Net Income		$	2,959			$	2,516			$	2,235			$	7,852			$	5,843
Basic Earnings Per Share		$	0.47			$	0.40			$	0.36			$	1.25			$	0.94
Diluted Earnings Per Share		$	0.47			$	0.40			$	0.36			$	1.24			$	0.94
Weighted Average Shares Outstanding - Basic			6,302,787				6,278,237				6,239,095				6,279,477				6,217,491
Weighted Average Shares Outstanding - Diluted			6,362,799				6,313,473				6,269,812				6,329,909				6,245,267
Selected Ratios
Return On Average Assets			0.99	%			0.88	%			0.82	%			0.91	%			0.76	%
Return On Average Equity			14.27	%			12.63	%			12.41	%			13.11	%			11.25	%
Efficiency Ratio			60.32	%			62.88	%			64.65	%			62.76	%			67.65	%
Net Interest Margin *Bank Level*			3.46	%			3.59	%			3.22	%			3.53	%			3.17	%

(1) - Total shares outstanding excludes unvested restricted stock awards

Capital

At September 30, 2025, the Bank's regulatory capital ratios (Leverage, Tier 1, and Total Risk-Based) were 8.67%, 11.85%, and 12.98%, respectively. Each of these ratios exceed the regulatory minimums to be considered well capitalized.

The Company reported book value per share and tangible book value per share at September 30, 2025 of $13.51 and $13.02, respectively, compared to $12.80 and $12.31 at June 30, 2025. Increased book value per share during the quarter resulted from retained earnings accumulation and changes in investment market valuations during the quarter.

Balance Sheet and Credit Quality

Net loans increased $32 million or 4% during the third quarter, and $74 million or 9% year-to-date to $911 million at September 30, 2025. Year-to-date loan growth was concentrated in owner occupied CRE, non-owner occupied CRE, and 1-4 family residential lending, which accounted for $16 million, $22 million, and $21 million in net growth, respectively. This growth was partially offset by a reduction in construction and land development lending of $5 million.

The Bank continued to experience solid deposit growth during the quarter, reporting $1,096 million in total deposits on September 30, 2025, compared to $1,080 million on June 30, 2025, and $989 million at December 31, 2024. Deposits increased 11% year-to-date and 2% on a linked quarter basis. The Bank's $16 million in quarterly deposit growth resulted primarily from growth in money market accounts which increased $24 million offset by a reduction in checking balances. At quarter end, checking and savings accounts represented 34% of the Bank's total deposit balances while money market accounts and time deposits represented 49% and 17% of total deposits, respectively.

Total Assets increased by 2% during the quarter and 11% year-to-date to $1,210 million at September 30, 2025. Asset growth was supported by deposit growth during the quarter and allocated primarily towards increased loan balances.

The Company continues to report excellent asset quality metrics with no loans classified as non-accrual, a non-performing asset ratio of 0.00%, and a past due ratio of 0.09%. There were no charge-offs during the quarter, and no outstanding OREO property at September 30, 2025.

President and CEO of the Company and Bank, Laurence S. Bolchoz, Jr. commented, "The Bank continues to report exceptional credit quality metrics with no non-accrual loans and no OREO properties at quarter end. This is a significant accomplishment and a reflection of the health of our local economies and our team's emphasis on credit quality."

Income Statement

Net Interest Income

Net interest income increased $0.5 million or 5% to $9.8 million for the quarter ended September 30, 2025, compared to $9.3 million during the most recent linked quarter, and increased 20% when compared to prior year's third quarter net interest income of $8.2 million. The Bank's net interest margin was 3.46% for the quarter ended September 30, 2025, compared to 3.59% for the prior quarter ended June 30, 2025 and 3.20% during the third quarter of 2024.

The third quarter's margin compression resulted from a decline in earning assets yield coupled with a moderate increase in cost of funds. The Bank's earning assets yield decreased to 5.59% from 5.63% for the quarters ended September 30, 2025, and June 30, 2025, respectively. The Bank's average loan yield increased to 6.11% from 6.07% over the quarters. This was offset the by increased average cash balances, stemming from significant deposit growth during the second and third quarters of 2025.

The Bank's cost of funds was 2.28% for the quarter and 2.20% year-to-date. The Federal Reserve lowered the fed funds rate by 0.25% in September which will have an impact on the Bank's cost of funds moving forward.

Mr. Bolchoz said, "We are very pleased with the Bank's earnings for the third quarter of 2025 with net income increasing 18% over the most recent linked quarter and 32% when compared to the third quarter of last year. These record earnings are a testament to our team and their unwavering commitment to establishing meaningful banking relationships with our customers".

Noninterest Income

Noninterest income totaled $657 thousand for the quarter ended September 30, 2025 compared to $602 thousand during the most recent quarter ended June 30, 2025 and $655 thousand in the third quarter of 2024. Non-interest income was relatively flat quarter over quarter and consisted primarily of service charges and fees on deposit accounts, interchange and merchant fee income, mortgage sales income, and earnings from bank owned life insurance.

Noninterest Expense

Noninterest expense totaled $6.3 million for the quarter ended September 30, 2025, compared to $6.3 million for the prior quarter ended June 30, 2025, and $5.7 million for the comparative quarter ended September 30, 2024. Non-interest income remained relatively flat in comparison to the prior quarter with minor increases in compensation and data processing expenses partially offset by reduced occupancy and marketing costs.

Provision for Loan Losses

During the quarter, the Bank recorded a provision of $430 thousand for changes in CECL allowance for credit losses. Year-to-date, the bank has provisioned $1.2 million. At quarter end, the Bank's allowance for credit losses on loans increased to $9.7 million and the reserve on unfunded commitments was $462 thousand for a total CECL reserve of $10.2 million. The Bank's allowance for credit losses was 1.07% of loans outstanding at September 30, 2025.

About Coastal Carolina Bancshares, Inc. Coastal Carolina Bancshares, Inc. is the Bank holding Company of Coastal Carolina National Bank, a Myrtle Beach-based community bank serving Horry, Georgetown, Aiken, Orangeburg, Richland, Greenville, Spartanburg, and Brunswick (NC) counties. Coastal Carolina National Bank is a locally operated financial institution focused on providing personalized service. It offers a full range of banking services designed to meet the specific needs of individuals and small and medium-sized businesses. Headquartered in Myrtle Beach, SC, the Bank also has branches in Garden City, North Myrtle Beach, Conway, Aiken, Orangeburg, Columbia, Greenville, and Spartanburg, South Carolina, and Ocean Isle Beach, North Carolina. Through the substantial experience of our local management and Board of Directors, Coastal Carolina Bancshares, Inc. seeks to enhance value for our shareholders, build lasting customer relationships, benefit our communities and give our employees a meaningful career opportunity. To learn more about the Company and its subsidiary bank, please visit our website at www.myccnb.com.

Forward-Looking Statements Except for historical information, all the statements, expectations, and assumptions contained in this press release are forward-looking statements. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include, without limitation: the effects of future economic conditions; governmental fiscal and monetary policies; legislative and regulatory changes; the risks of changes in interest rates; successful merger integration; management of growth; fluctuations in our financial results; reliance on key personnel; our ability to compete effectively; privacy, security and other risks associated with our business. Coastal Carolina Bancshares, Inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

SOURCE: Coastal Carolina Bancshares, Inc.

View the original press release on ACCESS Newswire

FAQ

What were Coastal Carolina Bancshares (CCNB) net income and EPS for Q3 2025?

Q3 2025 net income was $2.96M or $0.47 per diluted share.

How much did CCNB loans and deposits total at September 30, 2025?

Loans totaled $911.4M and deposits totaled $1.096B at 9/30/2025.

What is CCNB's asset quality as of Q3 2025 and are there any OREO properties?

Non-performing assets were 0.00%, there were no non-accrual loans and no OREO at quarter end.

How did CCNB's book value per share change in Q3 2025?

Book value per share increased to $13.51 and tangible book value to $13.02 at 9/30/2025.

What were CCNB's capital ratios at September 30, 2025?

The Bank reported a leverage 8.67%, Tier 1 11.85%, and Total risk-based 12.98%.

Why did CCNB's net interest margin compress in Q3 2025?

Margin compression reflected a slight decline in earning asset yields and a moderate rise in cost of funds, with NIM at 3.46%.