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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number: 001-42730

COASTALSOUTH BANCSHARES, INC.

(Exact Name of Registrant as Specified in its Charter)


Georgia	57-1184730
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
400 Galleria Parkway, Suite 1900 Atlanta, GA	30339
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (678) 396-4605

Securities registered pursuant to Section 12(b) of the Act:

      Title of each class

      Trading
Symbol(s)

      Name of each exchange on which registered

      Common Stock, par value $1.00 per share

      COSO

      New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 5, 2025, the registrant had 11,978,921 shares of common stock, $1.00 par value per share, outstanding.

Table of Contents


		Page

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	1
	Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024	1
	Consolidated Statements of Operations (unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024	2
	Consolidated Statements of Comprehensive Income (unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024	3
	Consolidated Statements of Shareholders' Equity (unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024	4
	Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended September 30, 2025 and 2024	5
	Notes to Consolidated Financial Statements (unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	63
Item 4.	Controls and Procedures	64

PART II.	OTHER INFORMATION	64

Item 1.	Legal Proceedings	64
Item 1A.	Risk Factors	64
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	65
Item 3.	Defaults Upon Senior Securities	65
Item 4.	Mine Safety Disclosures	65
Item 5.	Other Information	65
Item 6.	Exhibits	66
Signatures		67

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share and per share data)


	September 30,			December 31,
	2025			2024
	(Unaudited)
Assets
Cash and cash equivalents
Cash and due from banks	$	11,145		$	8,391
Interest-bearing accounts with other banks		8,943			28,929
Federal funds sold		6,191			30,641
Total cash and cash equivalents		26,279			67,961
Investments
Securities available-for-sale, at fair value		334,955			335,267
Non-marketable equity securities		8,035			7,483
Total investments		342,990			342,750
Loans held for sale		231,593			174,033
Loans held for investment		1,552,976			1,409,443
Allowance for credit losses on loans		(18,028	)		(17,118	)
Loans held for investment, net		1,534,948			1,392,325
Bank-owned life insurance		47,833			46,484
Premises, furniture and equipment, net		18,186			17,796
Deferred tax asset		16,262			18,148
Goodwill		4,708			4,708
Intangible assets		1,478			1,678
Other assets		31,112			32,829
Total assets	$	2,255,389		$	2,098,712
Liabilities
Deposits
Non-interest bearing transaction accounts	$	313,604		$	302,907
Interest-bearing transaction accounts		198,753			181,068
Savings and money market		634,826			591,626
Time deposits		802,489			759,201
Total deposits		1,949,672			1,834,802
Other borrowings		25,000			41,725
Other liabilities		30,279			26,953
Total liabilities		2,004,951			1,903,480
Commitments and Contingencies (Note 4)
Shareholders' Equity
Preferred stock, $1.00 par value, 10,000,000 shares authorized, no shares issued or outstanding	—			—
Voting common stock, $1.00 par value, 50,000,000 shares authorized, 10,448,892 and 8,098,117 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively.		10,449			8,098
Non-voting common stock, $1.00 par value, 10,000,000 shares authorized, 1,530,029 and 2,172,029 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively		1,530			2,172
Capital surplus		189,654			158,755
Retained earnings		59,750			41,994
Accumulated other comprehensive loss		(10,945	)		(15,787	)
Total shareholders' equity		250,438			195,232
Total liabilities and shareholders' equity	$	2,255,389		$	2,098,712

The accompanying notes are an integral part of these consolidated financial statements.

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(Dollars in thousands, except per share data)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Interest income
Loans, including fees
Loans held for investment	$	24,598		$	24,214		$	70,718		$	70,899
Loans held for sale		3,422			2,993			9,537			6,868
Investments
Taxable		3,907			3,969			11,176			11,434
Non-taxable		114			94			302			300
Non-marketable equity securities		104			108			322			318
Federal funds sold		616			1,045			2,277			2,881
Other earning assets from banks		129			131			375			412
Total interest income		32,890			32,554			94,707			93,112
Interest expense
Interest-bearing deposits		13,274			14,230			39,355			39,945
Other borrowings		426			1,358			1,325			4,116
Total interest expense		13,700			15,588			40,680			44,061
Net interest income		19,190			16,966			54,027			49,051
Provision for credit losses		653			(1,023	)		2,034			(687	)
Net interest income after provision for credit losses		18,537			17,989			51,993			49,738
Noninterest income
Bank-owned life insurance		461			437			1,349			1,224
Income from mortgage originations		299			276			846			813
Gain on sale of government guaranteed loans		613			1,311			878			1,666
Interchange income and card fees		238			216			761			658
Service charges on deposit accounts		208			208			634			617
Losses on sale of available-for-sale securities		(10	)		-			(10	)		(3,465	)
Other noninterest income		291			513			1,318			1,043
Total noninterest income		2,100			2,961			5,776			2,556
Noninterest expense
Salaries and employee benefits		6,985			6,727			20,676			19,428
Occupancy and equipment		850			754			2,452			2,233
Software and other technology expense		788			671			2,210			1,968
Other professional services		571			358			2,237			1,550
Data processing		647			548			1,924			1,608
Regulatory assessment		419			344			1,124			955
Other noninterest expense		1,596			1,428			4,744			3,991
Total noninterest expense		11,856			10,830			35,367			31,733
Income before taxes		8,781			10,120			22,402			20,561
Income tax provision		2,040			2,236			4,646			4,361
Net income	$	6,741		$	7,884		$	17,756		$	16,200
Net income per common share:
Basic	$	0.57		$	0.77		$	1.64		$	1.59
Diluted	$	0.54		$	0.75		$	1.58		$	1.55

The accompanying notes are an integral part of these consolidated financial statements.

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(Dollars in thousands)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Net income	$	6,741		$	7,884		$	17,756		$	16,200
Other comprehensive income
Change in unrealized gain on available-for-sale securities		3,232			7,571			7,048			7,828
Reclassification adjustment for net loss on sale of securities included in net income		10			-			10			3,465
Income tax effect		(758	)		(1,766	)		(1,646	)		(2,640	)
Unrealized gain on available-for-sale securities, net of tax		2,484			5,805			5,412			8,653
Unrealized (loss) gains on derivatives
Change in unrealized loss on cash flow hedges		(355	)		(774	)		(649	)		(38	)
Reclassification adjustment for net gain (loss) included in net income		40			(400	)		(101	)		(1,044	)
Income tax effect		76			282			180			260
Unrealized loss on derivative instruments, net of tax		(239	)		(892	)		(570	)		(822	)
Other comprehensive income, net of tax		2,245			4,913			4,842			7,831
Comprehensive income	$	8,986		$	12,797		$	22,598		$	24,031

The accompanying notes are an integral part of these consolidated financial statements.

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

(Dollars in thousands)


																Accumulated
	Common Stock															Other
	Voting				Non-voting						Capital			Retained		Comprehensive
Three Months Ended:	Shares		Amount		Shares			Amount			Surplus			Earnings		Loss			Total
Balance, July 1, 2024		8,078,417	$	8,078		2,172,029		$	2,172		$	158,125		$	28,406	$	(16,613	)	$	180,168
Stock-based compensation expense		-		-		-			-			338			-		-			338
Net income		-		-		-			-			-			7,884		-			7,884
Other comprehensive income, net of tax		-		-		-			-			-			-		4,913			4,913
Balance as of September 30, 2024		8,078,417	$	8,078		2,172,029		$	2,172		$	158,463		$	36,290	$	(11,700	)	$	193,303

Balance, July 1, 2025		8,106,892	$	8,107		2,172,029		$	2,172		$	159,267		$	53,009	$	(13,190	)	$	209,365
Issuance of common stock under incentive plan		-		-		-			-			-			-		-			-
Issuance of common stock upon intial public offering		1,700,000		1,700		-			-			30,158			-		-			31,858
Transfer from nonvoting to voting common stock		642,000		642		(642,000	)		(642	)		-			-		-			-
Stock-based compensation expense		-		-		-			-			229			-		-			229
Net income		-		-		-			-			-			6,741		-			6,741
Other comprehensive income, net of tax		-		-		-			-			-			-		2,245			2,245
Balance as of September 30, 2025		10,448,892	$	10,449		1,530,029		$	1,530		$	189,654		$	59,750	$	(10,945	)	$	250,438

Nine Months Ended:
Balance, January 1, 2024		7,367,900	$	7,368		2,172,029		$	2,172		$	145,944		$	20,090	$	(19,531	)	$	156,043
Issuance of common stock under incentive plan		9,075		9		-			-			(9	)		-		-			-
Issuance of common stock upon private placement		701,442		701		-			-			11,543			-		-			12,244
Stock-based compensation expense		-		-		-			-			985			-		-			985
Net income		-		-		-			-			-			16,200		-			16,200
Other comprehensive income, net of tax		-		-		-			-			-			-		7,831			7,831
Balance as of September 30, 2024		8,078,417	$	8,078		2,172,029		$	2,172		$	158,463		$	36,290	$	(11,700	)	$	193,303

Balance, January 1, 2025		8,098,117	$	8,098		2,172,029		$	2,172		$	158,755		$	41,994	$	(15,787	)	$	195,232
Issuance of common stock under incentive plan		8,775		9		-			-			33			-		-			42
Issuance of common stock upon intial public offering		1,700,000		1,700		-			-			30,158			-		-			31,858
Transfer from nonvoting to voting common stock		642,000		642		(642,000	)		(642	)		-			-		-			-
Stock-based compensation expense		-		-		-			-			708			-		-			708
Net income		-		-		-			-			-			17,756		-			17,756
Other comprehensive income, net of tax		-		-		-			-			-			-		4,842			4,842
Balance as of September 30, 2025		10,448,892	$	10,449		1,530,029		$	1,530		$	189,654		$	59,750	$	(10,945	)	$	250,438

The accompanying notes are an integral part of these consolidated financial statements.

COASTALSOUTH BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Dollars in thousands)


	Nine Months Ended
	September 30,
	2025			2024
Operating activities
Net income	$	17,756		$	16,200
Adjustments to reconcile net income to net cash (used) provided by operating activities:
Provision (recovery) for credit losses		2,034			(687	)
Depreciation expense and software amortization		1,114			978
Increase in cash value of bank-owned life insurance		(1,349	)		(1,157	)
Stock-based compensation expense		708			985
Net loss on sale of available-for-sale securities		10			3,465
Amortization of operating lease right-of-use assets		616			573
Amortization of debt issuance costs		275			40
Writedown on other real estate owned		99			-
Write down on repossessed assets		119			67
Net loss on sale of repossessed assets		17			-
Net gain on sale of other real estate owned		(64	)		-
Gain on sale of government guaranteed loans, including originations of servicing rights		(878	)		(1,666	)
Loss on sale of other loans		-			(31	)
Income from mortgage operations		(846	)		(813	)
Discount accretion and premium amortization on securities available-for-sale		(753	)		(437	)
Amortization of intangible assets		407			395
Deferred income tax expense		420			2,091
Originations of loans held for sale		(4,661,234	)		(3,360,597	)
Proceeds from loans held for sale		4,617,614			3,282,188
(Increase) decrease in other assets		(1,731	)		9,058
Increase (decrease) in other liabilities		3,326			(1,090	)
Net cash used by operating activities		(22,340	)		(50,438	)
Investing activities
Purchase of securities available-for-sale		(44,005	)		(75,393	)
Proceeds from sales of securities available-for-sale		4,956			39,100
Proceeds from paydowns, calls, and maturities on securities available-for-sale		48,244			44,694
Net (purchase) sale of non-marketable equity securities		(552	)		1,847
Loan originations and principal collections, net		(157,080	)		(22,792	)
Net purchase of premises, furniture and equipment		(1,504	)		(1,149	)
Proceeds from sales of other real estate owned		829			-
Net cash used by investing activities		(149,112	)		(13,693	)
Financing activities
Net increase in deposits		114,870			56,658
Net proceeds (repayment) of Federal Home Loan Bank of Atlanta borrowings		10,000			(50,000	)
Proceeds from Federal Reserve Bank advances		-			70,000
Proceeds from issuance of common stock under incentive plan		42			-
Proceeds from initial public offering, net		31,858			-
Proceeds from private placement capital raise		-			12,244
Net repayment of commercial line of credit		(12,000	)		(12,000	)
Net repayment of subordinated debt		(15,000	)		-
Net cash provided by financing activities		129,770			76,902
Net (decrease) increase in cash and cash equivalents		(41,682	)		12,771
Cash and cash equivalents, beginning of year		67,961			48,553
Cash and cash equivalents, end of period	$	26,279		$	61,324
Cash paid during the period for:
Interest	$	38,969		$	40,546
Income taxes		1,615			500
Noncash investing and financing activities:
Unrealized gain on securities available-for-sale, net		5,412			8,653
Unrealized loss on derivatives, net		(570	)		(822	)
Transfers of loans to other real estate owned		-			864
Transfers from loans held for investment to loans held for sale		12,157			30,828
Right-of-use assets obtained in exchange for new operating lease liabilities		669			323
Lease liabilities arising from obtaining right-of-use assets		666			323

The accompanying notes are an integral part of these consolidated financial statements.

CoastalSouth Bancshares, Inc. and Subsidiary

Notes to Consolidated Financial Statements (unaudited)

NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements include the accounts of CoastalSouth Bancshares, Inc. (the “Company”) and its wholly-owned subsidiary. The Company owns 100% of Coastal States Bank (the “Bank”). The Bank has one wholly owned subsidiary, Coastal States Mortgage, Inc., a mortgage company focused on originating and selling residential mortgages to investors and to retain in the portfolio. The "Company” or “our,” as used herein, includes Coastal States Bank and Coastal States Mortgage, Inc.

These unaudited Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) followed within the financial services industry for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all of the information or notes required for complete financial statements.

In the opinion of management, all adjustments, consisting of normal and recurring items, considered necessary for a fair presentation of the Consolidated Financial Statements for the interim periods have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts reported in prior periods have been reclassified to conform to the current year's presentation. These reclassifications did not have a material effect on previously reported net income, shareholders’ equity or cash flows.

Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. These statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended December 31, 2024 as filed with the Securities and Exchange Commission ("SEC") on Form S-1.

The Company’s significant accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements for the year ended December 31, 2024 as filed with the SEC on Form S-1. There were no new accounting policies or changes to existing policies adopted during the nine months ended September 30, 2025 which had a significant effect on the Company’s results of operations or statement of financial condition. For interim reporting purposes, the Company follows the same basic accounting policies and considers each interim period as an integral part of an annual period.

Operating Segments

The Company principally operates in one business segment, which is community banking.

Accounting standards require that information be reported about a company’s operating segments using a “management approach.” Reportable segments are identified in these standards as those revenue producing components for which separate financial information is produced internally and which are subject to evaluation by the Chief Operating Decision Maker ("CODM"). While the CODM monitors the revenue streams of the various products and services, operations are managed, and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable segment.

The Company's CODM is the chief executive officer. The segment measure of profit or loss is consolidated net income according to the Consolidated Statements of Operations, the measure of segment assets is total assets of the consolidated company according to the Consolidated Balance Sheets, and the accounting policies of the segment are the same as those described in the Consolidated Financial Statements within Note 1 for the year ended December 31, 2024 as filed with the SEC on Form S-1. The CODM monitors budgeted to actual results of net income to assess the company's performance, to make decisions on strategic initiatives, and to establish management's compensation. The segment's revenues are primarily derived from retail and commercial banking products and investment income.

Contingencies

Due to the nature of their activities, the Company and its subsidiary are at times engaged in various legal proceedings that arise in the course of normal business, some of which were outstanding as of September 30, 2025. Although the ultimate outcome of all claims and lawsuits outstanding as of September 30, 2025 cannot be ascertained at this time, it is the opinion of management that these matters, when resolved, will not have a material adverse effect on the Company’s results of operations or financial condition.

Accounting Pronouncements Not Yet Adopted

In September 2025, the Financial Accounting Standards Board ("FASB") issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This Update modernizes the accounting for software costs that are accounted for under Subtopic 350-40, Intangibles—Goodwill and Other—Internal-Use Software (referred to as “internal-use software”). The Update changes the cost capitalization threshold by: (a) eliminating accounting

CoastalSouth Bancshares, Inc. and Subsidiary
Notes to Consolidated Financial Statements (unaudited) - Continued

consideration of software project development stages; cost capitalization would begin when (i) management has authorized and committed to funding the project and (ii) it is ‘probable’ the project will be completed and the software used to perform its intended function (the ‘probable-to-complete’ threshold); and (b) enhancing the guidance around the ‘probable-to-complete’ threshold. This Update also modifies the website development costs guidance by requiring entities to provide disclosures required under Subtopic 360-10 on property, plant & equipment to capitalized internal-use software and related amortization, regardless of how the internal-use software is classified on the balance sheet or how it was acquired. This Update is effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods with early adoption permitted as of the beginning of an annual reporting period. The Company intends to adopt this Update on a prospective transition approach. The adoption of this standard is not expected to have a material effect on the Company’s Consolidated Financial Statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU enhances the transparency and decision usefulness of income tax disclosures for investors, lenders, creditors, and other allocators of capital (collectively, “investors”). These new enhancements are meant to better (1) understand an entity’s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, (2) assess income tax information that affects cash flow forecasts and capital allocation decisions, and (3) identify potential opportunities to increase future cash flows. For public business entities, these amendments are effective for annual periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis and retrospective application is permitted. The adoption of this standard is not expected to have a material effect on the Company’s Consolidated Financial Statements.

The Company has further evaluated other Accounting Standards Updates issued during 2025 but does not expect Updates other than those summarized above to have a material impact on the Consolidated Financial Statements.

NOTE 2 — INVESTMENT SECURITIES

The amortized cost and estimated fair values of securities available-for-sale along with allowance for credit losses, gross unrealized gains and losses at September 30, 2025 and December 31, 2024 are summarized in the tables below:


	September 30, 2025
(In thousands of dollars)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. Treasuries	$	5,994	$	-	$	-	$	195	$	5,799
Municipal obligations		64,868		-		72		7,096		57,844
Mortgage-backed securities		190,263		-		1,010		10,663		180,610
Asset-backed securities		29,723		-		232		149		29,806
Corporate debt securities		61,454		-		855		1,413		60,896
Total securities available-for-sale	$	352,302	$	-	$	2,169	$	19,516	$	334,955


	December 31, 2024
(In thousands of dollars)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. Treasuries	$	5,990	$	-	$	-	$	378	$	5,612
Municipal obligations		61,401		-		37		8,367		53,071
Mortgage-backed securities		181,242		-		211		15,361		166,092
Asset-backed securities		46,775		-		384		219		46,940
Corporate debt securities		64,264		-		963		1,675		63,552
Total securities available-for-sale	$	359,672	$	-	$	1,595	$	26,000	$	335,267

The following is a summary of maturities of available-for-sale ("AFS") securities as of September 30, 2025. The amortized cost and estimated fair values are based on the contractual maturity dates. Actual maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without penalty. Mortgaged-backed securities are not presented by maturity date because pay-downs are expected before contractual maturity dates.


	Amortized		Estimated
(In thousands of dollars)	Cost		Fair Value
Due in one year or less	$	4,995	$	4,858
Due after one year but within five years		24,486		24,487
Due after five years but within ten years		81,109		77,486
Due after ten years		51,449		47,514
Mortgage-backed securities		190,263		180,610
Total	$	352,302	$	334,955

CoastalSouth Bancshares, Inc. and Subsidiary
Notes to Consolidated Financial Statements (unaudited) - Continued

The following table shows securities in unrealized loss position for which an allowance for credit losses ("ACL") has not been recorded and the length of time they were in continuous loss positions as of September 30, 2025:


	Less than				Twelve months
	Twelve months				or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands of dollars)	Fair Value		losses		Fair Value		losses		Fair Value		losses
U.S. Treasuries	$	-	$	-	$	5,799	$	195	$	5,799	$	195
Municipal obligations		-		-		54,414		7,096		54,414		7,096
Mortgage-backed securities		6,910		52		111,095		10,611		118,005		10,663
Asset-backed securities		1,992		8		7,237		141		9,229		149
Corporate debt securities		7,395		41		19,102		1,372		26,497		1,413
Total AFS securities	$	16,297	$	101	$	197,647	$	19,415	$	213,944	$	19,516

The following table shows securities in unrealized loss position for which an ACL has not been recorded and the length of time they were in continuous loss positions as of December 31, 2024:


	Less than				Twelve months
	Twelve months				or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands of dollars)	Fair Value		losses		Fair Value		losses		Fair Value		losses
U.S. Treasuries	$	-	$	-	$	5,612	$	378	$	5,612	$	378
Municipal obligations		-		-		52,299		8,367		52,299		8,367
Mortgage-backed securities		36,742		610		108,435		14,751		145,177		15,361
Asset-backed securities		-		-		11,141		219		11,141		219
Corporate debt securities		1,245		5		20,801		1,670		22,046

CoastalSouth Bancshares, Inc. 10-Q