Coastal Carolina Bancshares, Inc. Announces Second Quarter Results

Myrtle Beach, South Carolina – July 28, 2026 – Coastal Carolina Bancshares, Inc. (the “Company”) (OTCQX: CCNB), parent of Coastal Carolina National Bank (the “Bank”), reported unaudited financial results for the second quarter of 2026.

The Company reported net income for the three months ended June 30, 2026, of $2,935,412, or $0.39 per diluted share, compared to $2,515,712, or $0.40 per diluted share, for the same period in the prior year and $3,268,701, or $0.43 per diluted share, for the prior quarter ended March 31, 2026. Net income excluding the after-tax effect of merger expenses totaled $3,348,322, or $0.44 per diluted share, for the three months ended June 30, 2026.

The Company reported net income of $6,204,113, or $0.82 per diluted share, for the six months ended June 30, 2026, compared to $4,893,001, or $0.78 per diluted share, for the same period ended June 30, 2025. Net income excluding the after-tax effect of merger expenses totaled $6,617,023, or $0.88 per diluted share, for the six months ended June 30, 2026.

Second Quarter Financial Highlights

Quarterly net income of $2.9 million ($3.3 million excluding the after-tax effect of merger expenses), an increase of 33% over the second quarter of 2025
Net income for the six months ended June 30, 2026 increased 27% (35% excluding merger expenses) when compared to the same period in 2025.
Quarterly diluted earnings per share of $0.39 ($0.44 per share excluding the after-tax effect of merger expenses), compared to $0.40 for the second quarter of 2025
Quarterly Return on Average Equity of 10.90%; Return on Average Equity excluding the after-tax effect of merger expenses of 12.44%
Bank-level Net Interest Margin of 3.59% for the quarter ended June 30, 2026 compared to 3.66% for the prior quarter ended March 31, 2026 and 3.59% for the quarter ended June 30, 2025

Tangible book value per share increased 14% year-over-year and 6% year-to-date to $14.09
Total assets increased 14% compared to June 30, 2025, to $1.351 billion.
Quarterly deposit growth of $70 million or 6% (25% annualized) from $1.142 billion at March 31, 2026 to $1.212 billion at June 30, 2026

Quarterly loan growth of $19 million or 2% (8% annualized) during the second quarter, and $43 million or 5% (9% annualized) year-to-date, to $988 million at June 30, 2026
Continued strong credit quality with no net charge-offs during the first six months of the year and no outstanding OREO property at June 30, 2026

President and CEO of the Company and Bank, Laurence S. Bolchoz, Jr. commented, “Our second quarter results demonstrate the strength of our franchise and the momentum we continue to build across our markets. We delivered strong deposit and loan growth, maintained excellent asset quality, and produced solid earnings despite merger-related expenses incurred during the quarter. As we continue to work toward the completion of our recently announced merger transaction with Beacon Community Bank, we remain focused on serving our customers, supporting our communities, and creating value for our shareholders.”

Capital

At June 30, 2026, the Bank remained well-capitalized under regulatory capital requirements with leverage, Tier 1, and Total Risk-Based capital ratios of 9.38%, 12.99%, and 14.21%, respectively. Consolidated Shareholders’ equity totaled $109.3 million, an increase of $3.2 million from March 31, 2026, and an increase of $6.3 million year-to-date.

The Company reported book value per share and tangible book value per share at June 30, 2026, of $14.50 and $14.09, respectively, compared to $14.13 and $13.72 at March 31, 2026. 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

Total assets increased by 6% during the quarter to $1.351 billion at June 30, 2026. Asset growth was driven by significant deposit growth during the quarter supporting increased loan balances and resulting in increased cash and cash equivalents.

The Company experienced considerable deposit growth during the quarter, reporting $1.212 billion in total deposits at June 30, 2026, compared to $1.142 billion at March 31, 2026, an increase of $70 million or 6%. At quarter end, checking and savings accounts represented approximately 33% of the Bank’s total deposit balances while money market accounts and time deposits represented approximately 49% and 19% of total deposits, respectively.

President and CEO of the Company and Bank, Laurence S. Bolchoz, Jr., commented:

“The Bank delivered exceptional deposit growth during the second quarter, with total deposits increasing $70 million. While seasonal factors contributed to growth during the quarter, the increase reflects the strength of our customer relationships, the dedication of our team, and our continued emphasis on core deposit acquisition and retention.”

Net loans increased $19 million or 2% during the second quarter, and $43 million or 5% year-to-date, to $988 million at June 30, 2026. Year-to-date loan growth was concentrated in construction and development lending, C&I lending, owner-occupied CRE, and 1-4 family residential, which accounted for $12 million, $9 million, $7 million, and $7 million in net growth, respectively. This growth was partially offset by a reduction in non-owner occupied CRE of $4 million.

The Company continues to report strong asset quality metrics. There were no net charge-offs during the quarter, and no outstanding OREO property at June 30, 2026. The Bank’s past due loans (30-89 days) totaled $3.4 million at quarter end, representing 0.26% of total assets. Past dues consisted predominantly of one loan relationship that received a payment shortly after quarter end. The allowance for credit losses on loans totaled $11.1 million, or 1.12% of total loans outstanding.

Mr. Bolchoz commented:

“We are pleased with the continued strength of our credit quality metrics. The loan portfolio performed exceptionally well during the quarter, with no net charge-offs and minimal levels of past-due loans. These results reflect our disciplined approach to risk management and the resilience of the markets we serve.”

Income Statement

Net Interest Income

Net interest income increased $0.4 million or 4% to $11.1 million for the quarter ended June 30, 2026, compared to $10.7 million during the most recent linked quarter, and increased 19% when compared to the prior year’s second quarter net interest income of $9.3 million. Bank-level net interest margin was 3.59% for the quarter ended June 30, 2026, compared to 3.66% for the prior quarter ended March 31, 2026 and 3.59% during the second quarter of 2025. The Company’s consolidated net interest margin was 3.49% for the quarter ended June 30, 2026, compared to 3.55% for the prior quarter ended March 31, 2026 and 3.48% during the second quarter of 2025.

Net interest income growth during the second quarter of 2026 was driven by continued loan growth and growth in earning assets. While net interest margin declined modestly from the linked quarter, the Company benefited from higher loan yields and strong balance sheet growth. The Company’s yield on earning assets increased to 5.59% for the quarter ended June 30, 2026, compared to 5.54% during the most recent linked quarter. The Company’s loan yields increased from 6.10% during the first quarter of 2026 to 6.22% during the second quarter of 2026.

Mr. Bolchoz said:

“We are very pleased with the Bank’s earnings for the second quarter of 2026. Net income, excluding the after-tax effect of merger expenses, increased 33% over the second quarter of last year. Earnings growth was driven by efficient balance sheet growth and continued expansion in net interest income.”

Noninterest Income

Noninterest income totaled $604 thousand for the quarter ended June 30, 2026, compared to $608 thousand earned during the most recent quarter ended March 31, 2026, and $602 thousand in the second quarter of 2025. Noninterest income remained relatively unchanged 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 $7.5 million for the quarter ended June 30, 2026, compared to $6.6 million for the prior quarter ended March 31, 2026, and $6.3 million for the comparative quarter ended June 30, 2025. The increase in noninterest expense was primarily attributable to merger-related expenses as well as continued investments in personnel, technology, and infrastructure to support the Company’s continued growth.

Noninterest expense during the quarter included approximately $0.5 million of merger-related expenses associated with the Company’s previously announced merger transaction. Additionally, data processing costs increased during the quarter primarily due to one-time implementation costs associated with the Bank’s recent online banking upgrades.

Provision for Credit Losses

During the quarter, the Bank recorded a provision for credit losses of $390 thousand, bringing the Bank’s year-to-date provision to $850 thousand. At quarter end, the Bank’s allowance for credit losses on loans increased to $11.1 million, equating to 1.12% of total loans outstanding at June 30, 2026. In addition, the Bank’s reserve on unfunded commitments was $460 thousand for a total CECL reserve of $11.5 million.

Non-GAAP Financial Measures

Management uses certain non-GAAP financial measures to evaluate the Company’s operating performance and financial condition. These measures should not be considered a substitute for, nor superior to, financial measures determined in accordance with U.S. generally accepted accounting principles (“GAAP”). Management believes that these non-GAAP measures provide investors with useful supplemental information regarding the Company’s core operating performance and tangible capital position. The tables below provide a reconciliation of GAAP to non-GAAP measures for the periods indicated:

(Dollars in thousands, except per share data)

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 provide our employees with meaningful career opportunities. 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 of 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.

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