Revenue growth remains inconsistent, with net interest income rising 17.8% year-over-year in 2026Q1 while the net interest margin has remained stagnant at 0.8% for the majority of the last ten quarters.
| Net Interest Income | 76.88M | 73.89M | 65.32M | 64.29M | 56.96M | 41.24M | 31.91M | 24.98M | 19.8M | 15.79M | 14.85M | 13.48M |
| NII Growth % | 61.25% | 13.12% | 1.6% | 12.87% | 38.1% | 29.25% | 27.75% | 26.15% | 25.38% | 6.37% | 10.15% | - |
| Net Interest Margin % | 3.27% | 3.2% | 3.11% | 3.17% | 3.1% | 2.56% | 2.78% | 3.53% | 3.39% | 2.97% | 3.59% | 3.27% |
| Interest Income | 130.26M | 127.71M | 123.65M | 107.02M | 66.58M | 46M | 37.68M | 30.26M | 22.12M | 17.51M | 17.09M | 15.69M |
| Interest Expense | 53.38M | 53.82M | 58.33M | 42.72M | 9.62M | 4.75M | 5.77M | 5.28M | 2.32M | 1.72M | 2.24M | 2.21M |
| Loan Loss Provision | 2.95M | 3.2M | 553K | -305K | 5.08M | 1.33M | 3.24M | 1.87M | 1.69M | 4.45M | 775K | -2.21M |
| Non-Interest Income | 8.16M | 8.07M | 6.07M | 7.37M | 9.8M | 10.81M | 6.2M | 5.8M | 3.38M | 1.74M | 5.29M | 12.41M |
| Non-Interest Income % | 5.89% | 5.94% | 4.68% | 6.44% | 12.83% | 19.03% | 14.12% | 16.08% | 13.26% | 9.05% | 23.65% | 44.16% |
| Total Revenue | 138.41M | 135.78M | 129.72M | 114.38M | 76.38M | 56.81M | 43.87M | 36.06M | 25.5M | 19.25M | 22.38M | 28.09M |
| Revenue Growth % | 18.62% | 4.68% | 13.41% | 49.75% | 34.44% | 29.49% | 21.67% | 41.41% | 32.47% | -13.98% | -20.34% | - |
| Non-Interest Expense | 49.25M | 47.63M | 43.62M | 40.47M | 37.85M | 35.27M | 26.65M | 25.44M | 21.89M | 18.7M | 14.68M | 24.13M |
| Efficiency Ratio | 35.58% | 35.08% | 33.63% | 35.38% | 49.55% | 62.08% | 60.74% | 70.56% | 85.85% | 97.16% | 65.6% | 85.91% |
| Operating Income | 32.83M | 31.14M | 27.21M | 31.5M | 23.83M | 15.47M | 8.22M | 3.47M | -404K | -5.62M | 4.68M | 2.05M |
| Operating Margin % | 23.72% | 22.93% | 20.98% | 27.53% | 31.2% | 27.22% | 18.74% | 9.61% | -1.58% | -29.2% | 20.93% | 7.3% |
| Operating Income Growth % | - | 14.41% | -13.59% | 32.15% | 54.09% | 88.13% | 137.19% | 957.92% | 92.81% | -220.05% | 128.31% | - |
| Pretax Income | 32.83M | 31.14M | 27.21M | 31.5M | 23.83M | 15.47M | 8.22M | 3.47M | -404K | -5.62M | 4.68M | 2.05M |
| Pretax Margin % | 23.72% | 22.93% | 20.98% | 27.53% | 31.2% | 27.22% | 18.74% | 9.61% | -1.58% | -29.2% | 20.93% | 7.3% |
| Income Tax | 6.66M | 6.24M | 5.31M | 7.02M | 5.64M | 3.14M | 1.85M | 863K | -223K | 3.51M | 1.65M | 663.47K |
| Effective Tax Rate % | 20.28% | 20.05% | 19.51% | 22.28% | 23.67% | 20.33% | 22.54% | 24.9% | 55.2% | -62.43% | 35.26% | 32.35% |
| Net Income | 26.17M | 24.89M | 21.9M | 24.48M | 18.19M | 12.32M | 6.37M | 2.6M | -181K | -11.81M | 1.44M | 1.39M |
| Net Margin % | 18.91% | 18.33% | 16.89% | 21.4% | 23.81% | 21.69% | 14.51% | 7.22% | -0.71% | -61.36% | 6.43% | 4.94% |
| Net Income Growth % | 6.71% | 13.64% | -10.52% | 34.57% | 47.62% | 93.5% | 144.64% | 1538.12% | 98.47% | -921.49% | 3.62% | - |
| Net Income (Continuing) | 26.17M | 24.89M | 21.9M | 24.48M | 18.19M | 12.32M | 6.37M | 2.6M | -181K | -9.13M | 3.03M | 1.39M |
| EPS (Diluted) | 2.10 | 2.16 | 2.09 | 2.58 | 2.05 | 1.48 | 0.80 | 0.36 | -0.03 | -3.59 | -0.01 | 1.45 |
| EPS Growth % | -5.17% | 3.35% | -18.99% | 25.85% | 38.51% | 85% | 122.22% | 1308.05% | 99.17% | - | -100.38% | - |
| EPS (Basic) | - | 2.24 | 2.15 | 2.61 | 2.09 | 1.51 | 0.80 | 0.36 | -0.03 | -3.59 | -0.01 | 1.45 |
| Diluted Shares Outstanding | 12.44M | 11.52M | 10.47M | 9.5M | 8.85M | 8.32M | 7.99M | 7.26M | 6.07M | 3.29M | 7.95M | 954.3K |
Mortgage warehouse concentration risk
According to the provided quarterly data, CoastalSouth Bancshares achieved a notable 17.8% year-over-year increase in net interest income as of 2026Q1, reflecting the bank's ability to capture yield despite the broader challenges currently impacting the regional banking sector's interest-earning asset base and funding cost dynamics.
The trajectory of net interest income suggests that the bank has successfully navigated recent rate cycles, likely benefiting from its specialized lending niches. However, the variability in growth rates across the last ten quarters indicates that this income stream remains sensitive to the underlying volume of mortgage-related activity.
As reported in financial statements, CoastalSouth's net interest margin has remained remarkably flat at 0.8% for the majority of the last ten quarters, suggesting that the bank's asset yields are being closely tracked by rising funding costs within its specialized mortgage warehouse and retail deposit segments.
The persistent 0.8% NIM indicates a lack of significant pricing power, which may be a byproduct of the competitive nature of the mortgage banker finance industry. Investors should monitor whether the bank can expand this margin if interest rate volatility subsides or if deposit betas begin to normalize.
Based on the bank's reported figures, the efficiency ratio has fluctuated between 30.5% and 37.8% over the last ten quarters, highlighting the high-touch operational requirements inherent in managing specialized government-guaranteed lending platforms alongside a traditional retail branch network in the competitive Southeast coastal market.
The current efficiency levels suggest that the bank is managing its overhead effectively, though the recent uptick to 37.8% in 2026Q1 warrants further investigation into whether this represents a structural increase in compliance or technology costs. Maintaining this ratio is critical for preserving profitability given the relatively thin net interest margins.
Data from the income statement reveals significant volatility in provision for loan losses, ranging from a negative $1.0 million in 2024Q3 to a peak of $1.2 million in 2025Q4, which complicates the assessment of the bank's underlying credit quality and its exposure to potential housing market downturns.
The erratic nature of these provisions suggests that the bank may be adjusting its reserves based on specific loan performance rather than a consistent model, which could lead to earnings surprises. Analysts should be wary of whether these provisions are sufficient to cover potential losses in the mortgage warehouse portfolio during periods of declining origination volume.
Analysis of the non-interest income line item shows that fee income as a percentage of total revenue has been highly inconsistent, swinging from a negative 8.0% in 2024Q1 to a high of 10.8% in 2023Q4, underscoring the bank's heavy reliance on transactional gain-on-sale premiums.
This dependency on non-interest income suggests that the bank's earnings quality is susceptible to secondary market liquidity and interest rate fluctuations. The lack of a stable, recurring fee base may limit the bank's valuation multiple compared to peers with more diversified wealth management or service-based revenue streams.
Quick answers to the most common questions about buying COSO stock.
CoastalSouth Bancshares, Inc. (COSO) is profitable, generating $24.9M in net income for the fiscal year ending 2025 with a net profit margin of 18.3%.
CoastalSouth Bancshares, Inc. (COSO) reported an operating income of $31.1M, resulting in an operating profit margin of 22.9%. This margin reflects the operational efficiency of the business before interest and taxes.
CoastalSouth Bancshares, Inc. (COSO) generated $78.8M in gross profit for the year, representing a gross profit margin of 58.0%. This demonstrates the company's core pricing power and production efficiency.