PROSPECTUS SUMMARY

This summary highlights selected information contained in greater detail elsewhere in this prospectus. This summary may not contain all of the information that you should consider before investing in our securities. You should carefully read this entire prospectus, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and the notes related thereto before making an investment decision. Some of the statements in this prospectus constitute forward-looking statements. See “Cautionary Note Regarding Forward-Looking Statements.”

Our Company

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.

Today, we have a community banking presence in some of the fastest growing and most business-friendly markets in the U.S., namely the Lowcountry of South Carolina (Hilton Head Island, Bluffton, and Beaufort), nearby Savannah, Georgia, and the Atlanta, Georgia market.

In addition to our traditional community banking operations, we operate four specialty lines of business that provide scalability and diversification:

By combining the relationship-based focus of a community bank with our specialty lines of business, we believe we can capitalize on the substantial growth opportunities available in our markets, particularly given the scarcity of community banks between $1.5 billion and $5.0 billion in total assets.

In 2017, the Company completed an offering (our "Recapitalization") to bolster our capital position, raising $62.0 million in common equity. Our Recapitalization was led by Messrs. Stephen Stone, President and Chief Executive Officer, and Tony Valduga, Chief Financial Officer and Chief Operating Officer, and well-respected institutional investors in the banking sector.

Our management team, comprised of 12 senior officers, has more than 200 years of combined experience in building and operating high performing banking franchises in our markets. Messrs. Stone and Valduga, along with other members of our management team, have deep and relevant experience with community bank acquisitions, having completed 16 acquisitions since 2010 (including two at CSB and 14 at a prior institution).

We believe the experience of our management team, the strength of our markets, the scalability of our business, and the scarcity of community banks like CSB in our markets will continue to fuel our financial success and drive strong shareholder returns.

Our Component Parts: Understanding Our Business and Our Performance

We believe that our historical success, and our expectations for continued strong future performance, centers on our ability to combine our traditional community banking operations with our four high-performing, specialty lines of business. This concept of integrated and relational component parts can be used to understand the makeup of our lines of business, our growth strategies, our performance ratios, and the ways our Company drives value for both our current and prospective shareholders.

Our Community Bank & Our Specialty Lines of Business

Our community bank is our first component part and the foundation of our Company. Through our community bank, we focus on commercial and retail clients doing business and/or residing in our local markets. We define our local markets as the communities, and surrounding areas, in which our branches are located. Today, our community bank operates in the vibrant markets of the Lowcountry of South Carolina, as well as the nearby Savannah, Georgia market. Our community bank also operates in the Atlanta, Georgia market, the largest MSA by population in the southeast region of the U.S. Community banking has been a core competency of CSB since our inception in 2004, driving attractively priced core deposit funding that supports growth in all of our specialty lines of business, while providing granular commercial and small business lending opportunities.

We supplement our community bank with four additional component parts, or specialty lines of business, which include Senior Housing Lending, Marine Lending, Government Guaranteed Lending, and Mortgage Banker Finance. These specialty lines of business, described in greater detail below on page 11, serve our clients across the Southeast and the U.S. without reliance on client sourcing within our community banking markets. We have grown these businesses over many years following our Recapitalization, through the hiring of highly experienced relationship managers, and with a focus on scalability, profitability, and strong credit quality. Each of these component parts is time tested and led by CSB team members with long and successful pedigrees in their respective fields. We utilize conservative underwriting methodologies and careful risk selection to deliver attractive risk-adjusted returns. As supplements to our community bank, these four specialty lines of business help to drive our earnings results and our capacity to grow earnings through efficient asset generation, while serving to diversify our balance sheet from both product and geographic perspectives. Although historically focused on asset generation, we expect that each of our lines of business can and will provide a meaningful source of deposit generation going forward.

Our Three Growth Strategies

We believe in the importance of community banking within the framework of the larger financial services sector and as a pivotal aspect of a vibrant economy. However, fundamental pressures have emerged over time related to the profitability of the financial services industry, broadly, and community banking, specifically. These pressures include compressing net interest margins and rising operating costs (which costs are related to items such as technology, regulatory compliance, and personnel, to name a few).

Due to these industry-wide profitability pressures, we believe the capacity to deliver robust balance sheet growth is a necessary attribute of a successful bank that produces attractive shareholder returns and performance metrics (described below on page 4). Our three component parts of growth - organic growth, acquisitive growth, and business line growth - effectively serve to drive our balance sheet growth and earnings results.

The organic growth of our community bank stems from our ability to attract and expand client relationships, bringing core deposit balances, sourced through our branch system and local communities, and commercial loan balances sourced through our commercial bankers working in our Lowcountry, Savannah and Atlanta MSA markets. In the future, we may look to expand our branch network through de novo branching, which could include opening new branches in our current markets and/or in new markets located in Georgia, South Carolina, or contiguous states, such as Alabama, Florida, North Carolina, and Tennessee. The decision on when and where to expand our branch footprint turns first on our ability to identify and recruit experienced commercial bankers in these new markets.

We supplement our organic growth with carefully selected and financially disciplined acquisitions of other community banks, a strategy our executive team has successfully implemented at CSB and prior companies. Like our organic growth strategy, our M&A strategy is focused on our existing markets, as well as potential new metro markets on an opportunistic basis.

Our third growth strategy refers to both our scalable generation of assets and revenue through our four specialty lines of business (outside of our community bank), as well as our proven ability to establish new specialty lines of business over time while carefully balancing and driving the profitability of our existing lines of business. By way of example, we launched our Senior Housing and our Government Guaranteed Lending business lines in 2017 shortly after our Recapitalization, and later launched our Marine Lending business in 2022 after aggregating a portfolio of loans that were originated by the team that we eventually hired to lead this business. Our Mortgage Banker Finance business line was in existence prior to our Recapitalization, and our management team has overseen its development and expansion since 2017.

Our ability to produce both earnings and balance sheet expansion across these three component parts of our growth strategy, while avoiding over-reliance on any single growth strategy, helps us drive profitability and effectively manage risk.

(1) Financial data as of March 31, 2025; Community Bank and Specialty Lines of Business include loans from acquired companies after closing.

(2) Represents total loans of each respective acquired company at the time of transaction closing.

Our Focal Financial Metrics

We believe connections exist between the production of returns on average assets and average tangible common equity and our four focal financial metrics: (1) net interest margin, (2) credit metrics, (3) balance sheet and income statement growth, and (4) careful management of expenses as evidenced by our efficiency ratio. We believe the achievement of successful results in each component part is critical to both protecting the value of our bank, particularly during times of stress, and driving growth in shareholder value. When working in concert, these financial metrics have the potential to deliver strong results. When success in any single metric comes at the expense of another metric, the achievement of returns on average assets and average tangible common equity can be challenging.

As illustrated in the financial table below and on page 27, we produced increasing returns on average assets and average tangible common equity, as well as increasing returns on average assets and returns on average tangible common equity when adjusted for non-recurring items, as measured over the last five years. We assess both GAAP returns and adjusted returns (non-GAAP), which remove the impact of certain non-recurring items, such as losses on sales of available for sale securities (as described on page 28).

(1) See the section entitled "Non-GAAP Financial Measures Reconciliation" for a reconciliation of non-GAAP measures to their most comparable GAAP measures.

We believe we have succeeded in producing these returns over this five-year period by focusing on: (1) delivering a net interest margin above 3.28% throughout this timeframe, (2) maintaining low levels of net charge-offs, with aggregate net charge-offs totaling only $2.0 million, or an annual average of 0.04% of LHFI, (3) producing five-year compounded annual growth rates in total loans of 23.6%, deposits of 25.0%, revenue of 13.7%, net income of 53.1%, adjusted net income (non-GAAP) of 63.3%, fully diluted earnings per share of 42.2%, adjusted fully diluted earnings per share (non-GAAP) of 51.8%, book value per share of 10.4%, and tangible book value per share (non-GAAP) of 11.2%, and (4) managing our expenses as shown by an adjusted efficiency ratio (non-GAAP) of less than 60% over the last three years. See the section entitled “Non-GAAP Financial Measure Reconciliation” for a reconciliation of non-GAAP measures to their most comparable GAAP measures. We believe our ability to produce results related to each of our focal financial metrics without sacrificing results in any particular measure helps us manage risk.

(1) See the section entitled "Non-GAAP Financial Measures Reconciliation" for a reconciliation of non-GAAP measures to their most comparable GAAP measures.

While the above-mentioned financial metrics comprise our primary focal measures, we take great care to monitor and balance the management of other financial metrics, including, but not limited to:

Our Competitive Advantage - Our Six Non-Financial Value Drivers

We believe our non-financial value drivers are our competitive advantage. Much like our Focal Financial Measures, our non-financial attributes combine to help enhance our franchise value and drive returns for our shareholders.

Management

Our management team, which is led by our President and Chief Executive Officer, Stephen Stone, has significant experience building and operating community banks in our markets while creating value for the shareholders of these companies. Our Chief Financial Officer and Chief Operating Officer, Tony Valduga, has worked alongside Mr. Stone for the past 14 years at both Community & Southern Bank and CSB.

Following an initial capitalization of Community & Southern Bank in 2010, Messrs. Stone and Valduga, as members of the executive management team, grew Community & Southern to $4.4 billion in assets through a combination of organic growth strategies, acquisitions and the introduction of business lines, similar to the three growth strategies described above. Community & Southern was sold in 2016 to a bank currently known as Bank OZK for a deal value of approximately $800 million. As leaders of our Company, Messrs. Stone and Valduga, along with the other members of our management team, have presided over our Recapitalization in 2017, the execution of two bank acquisitions, the growth of our four specialty lines of business, as described above, and the growth of our balance sheet to $2.2 billion in total assets.

In addition to Messrs. Stone and Valduga, our team of senior officers and business line leaders are equally focused on risk management as a fundamental governor of our expansion and the achievement of top tier profitability metrics, all while achieving our growth targets. Our leadership team has broad experience in critical tasks such as: 1) sourcing and executing acquisitions and other strategic transactions, 2) building a comprehensive risk management infrastructure, 3) hiring teams of bankers, 4) building specialty lines of business, 5) deploying new technology, 6) managing our balance sheet from interest rate risk, credit risk, liquidity, and capital perspectives, 7) instilling a common culture throughout our organization, 8) expanding into new markets and, 9) maintaining open and collaborative relationships with our regulators. Based on these skill sets and experiences, we believe our current leadership team has the capacity to more than double the asset size of our Company in the future.

We believe our management team’s long tenure of working together in our markets provides a strong familiarity with each other and with the markets we serve. Our management team is highly engaged in business development and community service initiatives, and they have proven to be proficient in recruiting talented bankers to join CSB, based, in part, on our reputation for developing high-performing and successful teams. While the Company has defined succession plans in place for its key management team members, the loss of one or more of these executives could have a material adverse effect on our business and our ability to execute our strategic plan.

Markets

The markets encompassing our branch footprint include the major Southeast MSAs of Atlanta, Savannah, and Hilton Head. We also view our markets in a more broadly defined geographic area to include the states of Georgia and South Carolina. We have grown to become one of the largest remaining independent bank holding companies headquartered in these two states through our progress in building a balance sheet of $2.2 billion in assets and due to merger activity in our markets reducing the number of our locally headquartered competitors as larger buyers located outside of our markets have acquired these banks.

The demographic strengths of our markets, including the size of these markets (as measured by population and numbers of operating businesses) and the growth attributes of these markets (as measured by the historical and projected population and economic growth), provides meaningful opportunities for CSB to aggregate clients and support our balance sheet and earnings growth goals.

We believe our Bank is poised to benefit from the demographic and business attributes of our three current markets based on our deposit market share position. The Atlanta MSA is the largest MSA in the southeast region of the U.S. as measured by population, while the populations of the Savannah and Hilton Head Island MSAs are expected to grow at rates more than double that of the U.S., according to the U.S. Census Bureau. Based on information provided by the FDIC as of June 30, 2024, we ranked as the largest headquartered bank by deposits in the Hilton Head Island-Bluffton-Port Royal MSA (the “Hilton Head MSA”), controlling 14.3% of total market deposits in the Hilton Head MSA.

Although we view our markets as one of the keys to our success, operating in these markets is not without risks. Given the size and scale of the Atlanta MSA, we face significant competition in this market from community banks as well as regional and national financial institutions. As of June 30, 2024, there were more than 111 banks and credit unions operating in the Atlanta MSA. In our Lowcountry and Savannah markets, the threat of hurricanes and other weather-related disasters present a significant seasonal threat to our business and operations.

Culture and Differentiated Brand

The culture we have developed, which permeates all our client interactions and operational functions, provides continuity of purpose and a guide for our team members’ activities across our Bank. We are committed to hiring client facing team members with extensive experience in the local communities we serve and a willingness to embrace our client-focused approach to doing business. We encourage clear and open communications between our team members, as well as between our clients and our team members. Our team members view the bedrock responsibilities of their roles in serving our clients as providing exceptional service while identifying and implementing innovative solutions to our clients’ financial services needs. We believe our culture gives us a significant advantage in hiring productive team members from other banks and attracting clients from other financial institutions.

At CSB, we believe our Company builds strength through relationships. We exist to build meaningful relationships with our team members, our clients, and our communities. Our mission is to: 1) provide tailored advice and banking solutions to our clients to help them achieve financial success, 2) provide our team members the opportunity to achieve personal, professional, and financial success, and 3) make a positive impact on our communities. We believe that by focusing on the five core values described below we can create meaningful relationships between our team members, between our Bank and our clients, and between our Bank and our communities. Each of these relationships is critical to our financial success and supports our capacity to drive shareholder value. Our five core values include:

Our company motto, “Local. And proud of it.”, is representative of our brand in the markets we serve. We believe this motto speaks to our commitment to relationships and communities. We believe our team members embrace their standing as local bankers in their communities, striving to develop deep and meaningful relationships with their clients. We believe our relationship-oriented approach to banking resonates with our team members and our clients. Additionally, by nurturing a high-performance culture where success is rewarded and recognized, we believe we are well positioned to attract talented bankers to join our Company.

The culture we have built at CSB also focuses on our communities and our standing as a trusted financial resource to the members of our communities. We encourage our team members to get involved in their communities outside of their work at our Company, as an example, through involvement in community, charitable and non-profit organizations.

Following our Recapitalization in 2017, we established the CSB Community Commitment, a donor advised fund administered through the Community Foundation of the Lowcountry. The CSB Community Commitment is funded by our team members and our Board, and it is overseen by an advisory board comprised of CSB team members from every region and every level throughout the Bank. Over 65% of our team members contributed to the CSB Community Commitment in 2024 and our goal is to increase the participation level to 75% in 2025. The CSB Community Commitment provides direct financial support to charitable organizations in our markets, with a particular emphasis on veterans and childhood development.

Scarcity Value

In the State of South Carolina, our Bank is the third largest headquartered bank as measured by total assets as of March 31, 2025. Further, while the list of our competitors in our Georgia and South Carolina markets includes many of the largest banks in the U.S., as well as many large regional banks with assets in excess of $10 billion, we remain one of only 16 banks with total assets between $1.5 billion and $5 billion as of March 31, 2025 headquartered in these states. We believe this scarcity of similarly sized banks in this $1.5 billion to $5 billion asset range positions us favorably to attract commercial and retail clients in our markets, as we compete effectively with our smaller competitors with lower levels of lending capacity and less robust product offerings, as well as our larger competitors with less capacity to deliver customized and attentive client experiences.

Note: Market analysis includes banks with $1.5 - $5.0 billion in assets operating in the Company's markets. Financial data is as of the quarter ended March 31, 2025. Deposit information is as of June 30, 2024.

(1) Excludes Southern States Bancshares, Inc. as it is a recent acquisition target.

Source: S&P Capital IQ Pro

Note: Market analysis includes banks with $1.5 - $5.0 billion in assets operating in the Company's markets. Financial data is as of the quarter ended March 31, 2025. Deposit information is as of June 30, 2024.

Source: S&P Capital IQ Pro

Our community bank market areas have undergone significant consolidation over the past few decades. Consolidation activity in our markets has significantly reduced the number of community banks similar to our size, and we believe the limited number of similarly situated competitors presents us with an opportunity to produce profitable growth in the years ahead. At March 31, 2025, there were only four publicly traded companies listed on a major exchanges and headquartered in either Georgia or South Carolina with total assets between $1.5 billion and $5.0 billion: Southern First Bancshares, Inc. ($4.3 billion in assets), MetroCity Bankshares, Inc. ($3.7 billion in total assets), Colony Bankcorp Inc. ($3.2 billion in total assets), and First Community Corp. ($2.0 billion in total assets).

We believe we have benefited from market dislocation caused by bank mergers and acquisitions in our markets, as clients have chosen to move their banking relationships from acquired banks in the aftermath of a sale, and bankers have chosen to move, or have been forced to move due to terminations, from banks in the aftermath of a sale. We have successfully employed this strategy of pursuing bankers and clients since 2017, hiring commercial bankers from merged institutions and drawing clients from merged institutions, which strategy has helped fuel our growth. We anticipate there will be further consolidation of both larger and smaller banks than our Bank with operations or headquarters in our current markets, as well as other nearby Southeast markets, which will create additional opportunities for us to grow.

In the table below, we illustrate a list of bank merger transactions announced and/or closed in Georgia and South Carolina since 2017 with the selling bank larger than $250 million in assets at time of transaction announcement:

Source: S&P Capital IQ Pro

Scalability

Since our Recapitalization in 2017 we have built our Company to achieve scalability. We have invested in hiring long-tenured executive officers and business producers whose backgrounds include prior experience at larger regional banks. We operate a strong information technology platform, which we believe provides us with capacity to support acquisitive growth and additions of new products and business lines. Our investments in systems, such as nCinoTM (a Salesforce based platform designed to automate and streamline the loan origination process), which we have implemented and customized, as well as the implementation of virtualization and cloud capabilities, have successfully enabled us to create a more efficient and integrated workflow while enhancing responsiveness and improving overall client experience. This scalability of people and operating systems helps us deliver efficient operating results and maintain a strong risk management infrastructure. However, in terms of total assets, we are currently a smaller bank as compared to the majority of the institutions listed in our “Comparable Companies” discussion beginning on page 17. As a result, we may not have similar economies of scale today as those larger institutions.

Our management team continues to focus on the careful evaluation and deployment of additional technology and infosecurity products and services, as well as the implementation of best practices regarding operations and risk management, which we believe will accelerate service delivery and strategic advancements.

Diversification

The diversification of our balance sheet, our revenue streams, and our geographies represent one of the most important tenets of our approach to risk management. The makeup of our loans held for investment includes commercial and industrial loans, owner-occupied and non-owner occupied commercial real estate loans, acquisition, ADC loans, single family residential mortgage loans, senior housing loans, marine loans, and various types of consumer loans. None of these loan types represent greater than 24.0% of our gross loan portfolio as of March 31, 2025. In addition to traditional ADC and CRE ratios, we measure and monitor concentration limitations with respect to our specialty lines of business as a percentage of both our LHFI portfolio and capital. While certain of our specialty lines of business, such as Marine Lending and Senior Housing, are highly scalable, the growth in these areas is governed by the growth of the overall CSB balance sheet.

At March 31, 2025, 52.0% of our LHFI portfolio was secured by commercial real estate. Decreases in real estate values could adversely affect the value of property used as collateral for those loans, which, in turn, can adversely affect the value of our loan portfolio secured by commercial real estate. Many of our commercial business and commercial real estate loans are made to small to medium sized businesses. These businesses generally have fewer financial resources in terms of capital or borrowing capacity than larger entities and have a heightened vulnerability if economic conditions were to deteriorate. If general economic conditions in the market areas in which we operate negatively impact this customer sector, our results of operations and financial condition may be adversely affected. This may impact our ability to compete with larger institutions in attracting new small to medium sized business clients.

In addition, within our deposit base, no client relationship represents more than 1.5% of total deposits, and the largest 20 deposit relationships comprise less than 12.9% of total deposits, each measured as of March 31, 2025. We generate revenue through our securities portfolio, representing 15.2% of our assets as of March 31, 2025, as well as our loans held for sale, and our noninterest income, which includes service charges on deposit accounts, interchange income, gains on sales of government guaranteed loans, investments in BOLI, and mortgage banking income. We also believe our geographic diversification across the coastal areas of South Carolina and Georgia, the Atlanta MSA, and, as it pertains to the geographic makeup of our specialty line of business clients, the U.S., provides us with additional risk mitigation attributes.

We believe these non-financial value drivers assist us in growing our Company while managing the risks inherent in running a financial services business. We further believe both our current shareholders and prospective shareholders benefit from the presence of these non-financial value drivers.

Summary of Our Component Parts Approach

Our use of a component parts approach to analyzing and building our Company has served to drive our financial success while helping us manage risks inherent in the banking industry. Our analysis of potential growth strategies interwoven with our current lines of business overlay our expectations related to both non-financial value drivers and our focal financial measures. We believe our future success in managing each of these component parts across our lines of business, our growth strategies, our non-financial value drivers, and our focal financial measures will result in positive outcomes for our shareholders.

Our Company History and Milestones

We were organized in 2004 in Hilton Head Island, South Carolina with a mission to create a locally owned and operated community bank. Members of the founding management team and board of directors recognized the value and importance a local community bank can provide to clients and communities within its markets. Through locally-sourced loans and deposits and expansion of our branch footprint in the Lowcountry of South Carolina, CSB grew to become the largest community bank operating in Beaufort County, South Carolina, with “community banks” defined as banks with assets less than $10 billion.

In 2017, we completed our Recapitalization. The proceeds from the Recapitalization allowed us to redeem high-cost preferred stock issued through the U.S. Treasury’s TARP in the aftermath of the economic downturn during 2007 through 2009 (the "Great Recession"), which TARP preferred stock was utilized to stabilize our capital position as the United States and local economies recovered. Upon closing of the Recapitalization and redemption of the TARP preferred stock, our Board of Directors adopted our strategic plan focused the three-pronged growth strategy described above.

As a result, we grew total assets from $413.5 million in assets as of December 31, 2016 to $2.2 billion in assets as of March 31, 2025 through the successful execution of our organic growth strategy, opportunistic community bank acquisitions, and introduction of specialty lines of business. We have demonstrated positive credit improvements since the years following the Great Recession, reducing non-performing assets from 3.09% of our assets at December 31, 2016 to 0.70% of our assets at March 31, 2025, and our ratio of non-performing assets excluding guaranteed loans to total assets (non-GAAP) was 0.49% at March 31, 2025. We have driven returns on our average assets and average tangible common equity (non-GAAP) from losses of (0.04)% and (0.31)% for the year ended December 31, 2018, respectively, to 1.16% and 13.36%, for the last twelve months ended March 31, 2025, respectively. See the section entitled “Non-GAAP Financial Measure Reconciliation” for a reconciliation of non-GAAP measures to their most comparable GAAP measures. Since our Recapitalization, we executed two acquisitions of community banks headquartered in the Atlanta MSA. Additionally, as of March 31, 2025, we have hired 34 commercial bankers since December 31, 2017. We view the hiring of commercial bankers focused on loan originations and deposit gathering as a subset of our acquisitive growth strategy and have sourced many of these bankers following the acquisitions of other banks in our markets.

The chart below highlights some of our accomplishments and key milestones since our Recapitalization in 2017.

(1) Our GGL line of business consists of loans made through SBA and USDA programs.

(2) As of March 31, 2018

(3) As of March 31, 2021

Additional Detail Regarding Our Community Bank and Our Lines of Business

In addition to our community bank, we operate four specialty lines of business. Each of these specialty lines of business operates on a national basis within the United States. The operation of specialty lines of business such is prevalent in larger regional or national banks, but less frequently part of product offerings of smaller banks with assets less than $10 billion. While the inclusion of these specialty lines of business is less common in a community bank of our asset size, we have developed a strong track record of performance and risk management.

We have built each of these four specialty lines of business through the hiring of experienced managers, business producers, and support personnel, in many cases known to us from previous financial institutions. While we have enjoyed success through organic growth and development of our specialty lines of business, in the future, we may consider acquisitions of additional lines of business on a stand alone basis or as part of the acquisition of whole banks.

A key tenet to our approach to building our specialty lines of business is that we “do not dabble”. Prior to launching any new line of business, we assess attributes of the potential new line of business, including our expected ability to scale the business, our profitability expectations for the new line of business, the historical and expected credit profile of the business, the manner in which a new line of business complements or enhances our current lines of business and our community bank, compliance requirements associated with the business, operational capacity for our Company to manage the business, and, our comfort with the leadership of the new line of business.

Our Community Bank

We view our community bank geographically through the lens of three separate markets: 1) the Lowcountry, 2) Savannah, and 3) the Atlanta MSA. Within these three vibrant markets, we house our 11 community bank branches: five are in our Lowcountry Region, including two on Hilton Head Island, two in Bluffton, and one in Beaufort, SC; one is in Savannah; and five are in the Atlanta MSA, including Sandy Springs, Alpharetta, Cumming, Dawsonville, and in Cobb County near The Battery.

Since 2017, we have grown from four bank branches to eleven. Five of these locations are de novo, opened by us as opposed to having been purchased through our two bank acquisitions. Our de novo branches look and operate differently than many traditional bank branches. Recognizing that client interactions, particularly with commercial clients, continue to migrate from in person to digital communications and transaction execution, our branches are designed to function as more than a transaction hub. In lieu of a traditional

teller line, we rely upon a smaller open office design staffed by bankers cross-trained to perform a variety of functions. Our branches typically house three to four full time employees, which differs from historical banking models whereby large numbers of employees occupy large bank facilities. In our branches with comparatively less square footage per branch, the balance of our space is devoted to our commercial banking team members and their support staff.

For the three months ended March 31, 2025, and for the year ended December 31, 2024, loan commitment originations for the Community Bank were $126.5 million and $375.5 million, respectively, with a weighted average coupon at origination of 7.23% and 8.32%, respectively. At March 31, 2025 and December 31, 2024, total Community Bank deposits, which excludes Correspondent Banking deposits, were $1.58 billion and $1.45 billion, respectively, with an average of $144.0 million and $131.8 million, respectively, per branch.

Senior Housing Lending

Our Senior Housing business line is focused on lending across the spectrum of senior care, with an emphasis on assisted living. We focus on low leverage lending to experienced operators with strong track records. Our national platform provides a larger screening pool from which to source opportunities that meet our strict underwriting standards. The portfolio has experienced zero net charge-offs since inception in 2017. For the year ended December 31, 2024, the weighted average LTV ratio at origination within this portfolio was approximately 63.5% with a WAC at origination of 8.27%. As of December 31, 2024, the weighted average LTV of our Senior Housing portfolio was 62.4%. The senior housing industry has experienced some financial pressure since 2020 due to the impact of COVID-19, rising interest rates, and inflationary pressure on expenses. However, the mid- to long-term demographic trends in the U.S. cause us to believe this line of business will continue to provide attractive growth opportunities while maintaining our high level of credit-based selectivity.

Our Senior Housing team is comprised of veterans of the senior housing business. Our line of business leader has more than three decades of experience in this industry, as does our senior credit officer for this portfolio. Our Chief Executive Officer and Chief Operating Officer worked with our Senior Housing leadership at the bank they led prior to our Recapitalization, amounting to decades of experience working with our Senior Housing leadership team. Given the significant experience of this team, we have taken special care to plan for the eventual succession of management. Our current managing director of senior housing was hired in 2018 from a highly successful Southeastern regional bank and has worked side by side with our line of business leader on every deal since joining CSB.

Our Senior Housing portfolio is one of the most closely monitored portfolios in the Bank. Our team performs both regulatory and financial monitoring on the entire portfolio each quarter. Key financial metrics such as NOI, occupancy, and DSC are measured, and financial covenants are tested each quarter.

Although deposit generation was not a primary focus of our Senior Housing team prior to 2025, given our deep relationships with our clients and the operating nature of their business, we generally require the operating account for each of our clients, as well as any reserve accounts. Likewise, for construction loans, we will generally require that equity be held at CSB prior to funding. Over time, we expect the deposit contribution from the Senior Housing business line to continue to increase.

Marine Lending

In 2022, we hired a team of bankers to lead our Marine Lending line of business. Our Marine Lending leader and senior underwriter within Marine Lending have more than five decades of cumulative consumer lending experience. We operate a correspondent lending model within our Marine Lending business, whereby we originate direct super-prime consumer loans, defined as having a primary borrower with a strong repayment history and evidence of prior recreational ownership at the time of origination, through a network of twelve national correspondent lenders. Similar to the leadership of our Senior Housing business line, our Chief Executive Officer and Chief Operating Officer worked with our Marine Lending leadership at the bank they led prior to our Recapitalization, amounting to decades of experience working with our Marine Lending leadership team. This included our purchase of certain loans from this team from 2018 to 2022 prior to their onboarding at our Bank.

The primary collateral supporting loans we originate in this line of business are comprised generally of high-end yachts and sport fishing vessels. The loans are primarily made to high net worth clients with attractive, super-prime credit scores (averaging 808 for the year ended December 31, 2024) at time of origination. In addition, our Marine Lending business focuses on “lifestylers,” or those borrowers with at least 5 years of boat ownership experience of large vessels. As of December 31, 2024, we had $263.7 million of loans in our Marine Lending loan portfolio. For the year ended December 31, 2024, our average loan size in the portfolio at origination was $370 thousand and the average loan-to-value at time of origination was approximately 76.6%. Since inception, we have repossessed three vessels due to non-payment of borrowers’ loans out of 939 originations from the launch of the business through December 31, 2024, while net charge-offs in this portfolio since inception have totaled $41 thousand.