Record EPS driven by accelerating loan growth and expanding margins suggest positive momentum. Watch Q4 for potential tempering of loan production due to interest rate environment and any further share repurchase activity.
Price Chart
Executive Summary
CoastalSouth Bancshares reported record Q3 2026 diluted EPS of $0.71, a 16.4% beat vs consensus of $0.61, driven by strong loan production ($248.2M) and robust gain-on-sale revenue from government-guaranteed lending. Net interest margin expanded 4 bps QoQ to 3.70%, while ROAA improved to 1.45% and ROATCE to 13.12%. The company also declared a $0.06 quarterly dividend (up from $0.05) and repurchased 285,715 shares at a weighted-average price of $27.10.
Key Financial Metrics
Key Facts
- Q3 2026 diluted EPS of $0.71 vs consensus $0.61 (beat by 16.4%)
- Net income of $8.8M, up 20% QoQ from $7.3M and 30% YoY from $6.7M
- Net interest margin expanded 4 bps QoQ to 3.70%
- LHFI production of $248.2M drove 19.0% annualized LHFI growth
- Noninterest income surged 51.2% QoQ to $3.3M, led by $1.6M in GGL gains
- Quarterly dividend increased to $0.06 from $0.05
- 285,715 shares repurchased at weighted-average price of $27.10
- Nonperforming assets improved to 0.62% of total assets from 0.79% at year-end 2025
- Credit loss recovery of $429K vs provision of $658K in Q2 2026
- Efficiency ratio improved 333 bps QoQ to 55.16%
Financial Impact
EPS beat consensus by $0.10 (16.4%), net income up 20% QoQ to $8.8M, NIM +4 bps to 3.70%
Risk Factors
- Interest rate environment may temper loan production in Q4 as noted by management
- Core deposits declined ~$20M QoQ due to seasonal outflows from property management clients
- Accumulated other comprehensive loss increased $8.3M due to unrealized securities losses
- Competitive rate pressure could pressure interest-bearing deposit costs
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-425283 |
| Document: coso-20261019.htm | 0001193125-26-425283 |
| Document: coso-ex99_2.htm | 0001193125-26-425283 |
| Document: 0001193125-26-425283-index-headers.html | 0001193125-26-425283 |
| Document: 0001193125-26-425283-index.html | 0001193125-26-425283 |
| Document: 0001193125-26-425283.txt | 0001193125-26-425283 |
| 8-K Data (Synthetic) | 0001193125-26-425283 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 8d ago | 8-K | $27.10 $27.75 | ▲ +2.40% | ▲ +2.32% | $27.75 (+2.40%) |
Sep 22, 2026 5w ago | Institutional Cluster | $26.66 $26.33 | ▼ −1.24% | ▼ −0.05% | $27.75 (+4.09%) |
May 1, 2026 25w ago | 8-K | $25.61 $25.83 | ▲ +0.86% | ▼ −1.49% | $27.75 (+8.36%) |
Apr 20, 2026 27w ago | 8-K | $24.98 $25.66 | ▼ −2.72% | ▼ −1.64% | $27.75 (−11.09%) |
Mar 13, 2026 32w ago | DEFA14A | $23.90 $23.67 | ▼ −0.96% | ▲ +1.16% | $27.75 (+16.11%) |
Mar 4, 2026 33w ago | 8-K | $24.54 $23.91 | ▼ −2.57% | ▼ −0.33% | $27.75 (+13.08%) |
US Market Status
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