MYRTLE BEACH, SC / ACCESS Newswire / April 24, 2026 / Coastal Carolina Bancshares, Inc. (the "Company") (OTCQX:CCNB), parent company of Coastal Carolina National Bank (the "Bank"), reported unaudited financial results for the three months ended March 31, 2026.
For the first quarter of 2026, the Company reported net income of $3.3 million, or $0.43 per diluted share, compared to net income of $3.1 million, or $0.47 per diluted share, for the linked quarter ended December 31, 2025, and net income of $2.4 million, or $0.38 per diluted share, for the first quarter of 2025. Quarterly performance reflected continued loan growth, expansion in net interest margin, and disciplined expense management, while maintaining strong capital and credit quality metrics.
First Quarter 2026 Financial Highlights
Net income of $3.3 million, an increase of 6% over the prior quarter and 38% over the first quarter of 2025
Diluted earnings per share of $0.43
Bank level net interest margin of 3.66%, compared to 3.55% for the fourth quarter of 2025
Return on average assets of 1.02% and return on average equity of 12.5%
Loan growth of $23 million, or 2.5%, during the quarter (10% annualized)
Deposits declined $5 million (0.4%), reflecting anticipated runoff of temporary fourth‑quarter balances
Book value per share and tangible book value per share increased to $14.13 and $13.72, respectively well-positioned
Strong credit quality metrics with a non‑performing assets ratio of 0.02%, no OREO, and no net charge‑offs
President and CEO of the Company and Bank, Laurence S. Bolchoz, Jr. commented, "We are pleased with our strong start to 2026. Continued loan growth, disciplined expense control, and improving funding costs drove solid earnings and margin expansion during the quarter. Just as important, our credit metrics remain exceptionally strong, and our balance sheet is well-positioned to support continued growth throughout the year."
Coastal Carolina Bancshares, Inc.
Selected Financial Highlights
(unaudited)
Mar 31, 2026 | Dec 31, 2025 | Sept 30, 2025 | June 30, 2025 | Mar 31, 2025 | |||||||||||
| Balance Sheet (In Thousands) | |||||||||||||||
| Total Assets | $ | 1,278,045 | $ | 1,279,007 | $ | 1,209,800 | $ | 1,187,475 | $ | 1,107,714 | |||||
| Investment Securities | 82,869 | 85,921 | 88,226 | 84,969 | 89,543 | ||||||||||
| Loans, excluding loans HFS | 968,292 | 944,842 | 911,160 | 879,627 | 862,605 | ||||||||||
| Deposits | 1,142,317 | 1,147,072 | 1,096,364 | 1,079,874 | 1,002,265 | ||||||||||
| Shareholders' Equity | 106,099 | 103,032 | 85,191 | 80,705 | 78,700 | ||||||||||
| Total Shares Outstanding (1) | 7,506,222 | 7,503,722 | 6,303,722 | 6,302,722 | 6,262,886 | ||||||||||
| Book Value per Share | $ | 14.13 | $ | 13.73 | $ | 13.51 | $ | 12.80 | $ | 12.57 | |||||
| Tangible Book Value Per Share | $ | 13.72 | $ | 13.32 | $ | 13.02 | $ | 12.31 | $ | 12.07 | |||||
| Selected % Increases | 1st Qtr 2026 | 4th Qtr 2025 | 3rd Qtr 2025 | 2nd Qtr 2025 | 1st Qtr 2025 | ||||||||||
| Total Assets | 0 | % | 6 | % | 2 | % | 7 | % | 2 | % | |||||
| Total Loans | 2 | % | 4 | % | 4 | % | 2 | % | 3 | % | |||||
| Total Deposits | 0 | % | 5 | % | 2 | % | 8 | % | 1 | % | |||||
| Selected Ratios | |||||||||||||||
| Loan Loss Reserve to Total Loans | 1.11 | % | 1.08 | % | 1.07 | % | 1.06 | % | 1.03 | % | |||||
| Non-Performing Assets (excl TDRs) to Total Assets | 0.02 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||
| Net Charge-Offs to Avg Total Loans (annualized) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||
For the | For the | For the | For the | ||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | Twelve Months Ended | ||||||||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | December 31, 2025 | ||||||||||||
| Earnings Breakdown (In Thousands) | |||||||||||||||
| Total Interest Income | $ | 16,629 | $ | 16,570 | $ | 14,366 | $ | 62,514 | |||||||
| Total Interest Expense | 5,965 | 6,305 | 5,408 | 24,108 | |||||||||||
| Net Interest Income | 10,664 | 10,265 | 8,958 | 38,406 | |||||||||||
| Total Noninterest Income | 608 | 645 | 610 | 2,515 | |||||||||||
| Total Noninterest Expense | 6,606 | 6,462 | 6,249 | 25,312 | |||||||||||
| Provision for Loan Losses | 460 | 485 | 335 | 1,730 | |||||||||||
| Income Before Taxes | 4,206 | 3,963 | 2,984 | 13,879 | |||||||||||
| Taxes | 937 | 880 | 607 | 2,944 | |||||||||||
| Net Income | $ | 3,269 | $ | 3,083 | $ | 2,377 | $ | 10,935 | |||||||
| Basic Earnings Per Share | $ | 0.44 | $ | 0.48 | $ | 0.38 | $ | 1.73 | |||||||
| Diluted Earnings Per Share | $ | 0.43 | $ | 0.47 | $ | 0.38 | $ | 1.71 | |||||||
| Weighted Average Shares Outstanding - Basic | 7,505,611 | 6,460,244 | 6,256,902 | 6,325,040 | |||||||||||
| Weighted Average Shares Outstanding - Diluted | 7,613,794 | 6,538,705 | 6,332,640 | 6,388,691 | |||||||||||
| Selected Ratios | |||||||||||||||
| Return On Average Assets | 1.02 | % | 0.99 | % | 0.87 | % | 0.93 | % | |||||||
| Return On Average Equity | 12.51 | % | 13.10 | % | 12.35 | % | 13.10 | % | |||||||
| Efficiency Ratio | 58.54 | % | 59.17 | % | 65.23 | % | 61.78 | % | |||||||
| Net Interest Margin *Bank Level* | 3.66 | % | 3.55 | % | 3.55 | % | 3.54 | % | |||||||
(1) - Total shares outstanding excludes unvested restricted stock awards
Capital
At March 31, 2026, the Bank remained well-capitalized under regulatory capital requirements with Leverage, Tier 1, and Total Risk-Based capital ratios of 9.53%, 12.89%, and 14.09%, respectively. Consolidated Shareholders' equity totaled $106.1 million, an increase of $3.1 million from December 31, 2025, driven primarily by retained earnings.
Book value per share increased to $14.13 at March 31, 2026, compared to $13.73 at December 31, 2025, and tangible book value per share increased to $13.72, compared to $13.32 at December 31, 2025.
Balance Sheet and Credit Quality
Total assets were $1.28 billion at March 31, 2026, essentially flat compared to December 31, 2025.
Net loans increased $23 million, or 2.5% (10% annualized), during the quarter to $968 million, reflecting continued organic growth across our markets. First quarter growth was concentrated in commercial and industrial, owner occupied commercial real estate, and construction and development lending, which represented $12 million, $6 million, and 4.5 million in net growth, respectively. ,
Total deposits were $1.14 billion at quarter‑end, decreasing $5 million, or 0.4%, from December 31, 2025. The decline was primarily attributable to the expected runoff of several large, short‑term commercial deposits received late in the fourth quarter of 2025.
Asset quality metrics remained strong during the first quarter of 2026. Non‑performing assets represented 0.02% of total assets, and the Company reported no net charge‑offs during the quarter. Additionally, the Company had no other real estate owned at March 31, 2026.
Income Statement
Net Interest Income
Net interest income increased $0.4 million or 4% to $10.7 million for the quarter ended March 31, 2026, compared to $10.3 million during the most recent linked quarter, and increased 19% when compared to prior year's first quarter net interest income of $9.0 million. Bank level net interest margin was 3.66% for the quarter ended March 31, 2026, compared to 3.55% for the prior quarter ended December 31, 2025 and 3.55% during the first quarter of 2025. The Company's consolidated net interest margin was 3.55% for the quarter ended March 31, 2026, compared to 3.44% for the prior quarter ended December 31, 2025 and 3.45% during the first quarter of 2025.
Fourth quarter margin improvement was driven primarily by continued loan growth and stable earning asset yields coupled with a reduction in the Company's funding costs following the recent Federal Reserve rate cuts during the third and fourth quarters of 2025. The Company's cost of deposits decreased to 2.04% for the first quarter of 2026 compared to 2.14% during the most recent linked quarter and first quarter of 2025.
Noninterest Income
Noninterest income was relatively stable 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 income totaled $608 thousand for the quarter ended March 31, 2026, compared to $645 thousand earned during the most recent quarter, and 610 thousand during the first quarter of 2025.
Noninterest Expense
Noninterest expense totaled $6.6 million for the quarter ended March 31, 2026, compared to $6.5 million for the prior quarter ended December 31, 2025, and $6.2 million for the comparative quarter ended March 31, 2025. Noninterest expense was relatively flat when compared to the most recent linked quarter, while year over year increases resulted primarily from higher compensation and benefits expense, increased business development costs and increased occupancy costs, supporting the Company's continued growth and expansion into new markets.
Provision for Loan Losses
During the quarter, the Bank recorded a provision of $460 thousand for changes in CECL allowance for credit losses. At March 31, 2026, the Bank's allowance for credit losses on loans increased to $10.7 million or 1.11% of loans outstanding. In addition, the Bank's reserve on unfunded commitments was $417 thousand for a total CECL reserve of $11.1 million.
Balance Sheet Data - Unaudited
(Dollars in thousands)
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | ||||||||||||||||
| Cash and Equivalents | $ | 194,821 | $ | 216,063 | $ | 177,859 | $ | 190,049 | $ | 124,210 | ||||||||||
| Securities | 82,869 | 85,921 | 88,226 | 84,969 | 89,543 | |||||||||||||||
| Loans | ||||||||||||||||||||
| Loans Held for Sale | 528 | 381 | 966 | 1,698 | 2,099 | |||||||||||||||
| Loans Held for Investment | 968,292 | 944,842 | 911,160 | 879,627 | 862,105 | |||||||||||||||
| Allowance for Credit Losses - Loans | (10,718 | ) | (10,238 | ) | (9,727 | ) | (9,292 | ) | (8,850 | ) | ||||||||||
| Net Loans | $ | 958,102 | $ | 934,986 | $ | 902,399 | $ | 872,034 | $ | 855,354 | ||||||||||
| Premises & Equipment | 14,976 | 14,763 | 14,522 | 13,649 | 11,835 | |||||||||||||||
| OREO | - | - | - | - | - | |||||||||||||||
| Goodwill | 2,992 | 2,992 | 2,992 | 2,992 | 2,992 | |||||||||||||||
| Core Deposit Intangible | 106 | 112 | 119 | 127 | 135 | |||||||||||||||
| Bank Owned Life Insurance | 12,073 | 11,972 | 11,872 | 11,773 | 11,675 | |||||||||||||||
| Other Assets | 12,106 | 12,199 | 11,811 | 11,884 | 11,971 | |||||||||||||||
| Total Assets | $ | 1,278,045 | $ | 1,279,007 | $ | 1,209,800 | $ | 1,187,475 | $ | 1,107,714 | ||||||||||
| Deposits | ||||||||||||||||||||
| Noninterest Bearing Deposits | $ | 180,269 | $ | 204,083 | $ | 165,538 | $ | 171,242 | $ | 168,160 | ||||||||||
| Interest Checking | 179,422 | 187,892 | 184,463 | 191,145 | 195,702 | |||||||||||||||
| Savings | 17,737 | 17,285 | 17,999 | 17,491 | 17,885 | |||||||||||||||
| Money Markets | 557,260 | 543,678 | 539,993 | 515,903 | 446,647 | |||||||||||||||
| Certificates of Deposit | 207,629 | 194,134 | 188,371 | 184,092 | 173,870 | |||||||||||||||
| Total Deposits | $ | 1,142,317 | $ | 1,147,072 | $ | 1,096,364 | $ | 1,079,873 | $ | 1,002,265 | ||||||||||
| Subordinated Debentures | 22,000 | 22,000 | 20,000 | 20,000 | 20,000 | |||||||||||||||
| Borrowings | - | - | - | - | - | |||||||||||||||
| Accrued Expense & Other Liabilities | 7,628 | 6,902 | 8,244 | 6,897 | 6,749 | |||||||||||||||
| Total Liabilities | $ | 1,171,945 | $ | 1,175,974 | $ | 1,124,609 | $ | 1,106,770 | $ | 1,029,014 | ||||||||||
| Common Stock and Surplus | $ | 62,316 | $ | 62,224 | $ | 48,090 | $ | 48,009 | $ | 47,893 | ||||||||||
| Retained Earnings | 48,228 | 44,959 | 41,876 | 38,917 | 36,401 | |||||||||||||||
| AOCI | (4,444 | ) | (4,150 | ) | (4,774 | ) | (6,221 | ) | (5,594 | ) | ||||||||||
| Total Shareholders' Equity | $ | 106,099 | $ | 103,032 | $ | 85,191 | $ | 80,705 | $ | 78,700 | ||||||||||
| Total Liabilities & Shareholders' Equity | $ | 1,278,045 | $ | 1,279,007 | $ | 1,209,800 | $ | 1,187,475 | $ | 1,107,714 | ||||||||||
Income Statement Data - Unaudited
(Dollars in thousands)
Three Months Ended | ||||||||||||||||||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | ||||||||||||||||
| Interest Income | ||||||||||||||||||||
| Loans | $ | 14,411 | $ | 14,194 | $ | 13,803 | $ | 13,241 | $ | 12,548 | ||||||||||
| Securities | 2,217 | 2,377 | 2,665 | 1,869 | 1,818 | |||||||||||||||
| Total Interest Income | $ | 16,629 | $ | 16,571 | $ | 16,468 | $ | 15,110 | $ | 14,366 | ||||||||||
| Interest Expense | ||||||||||||||||||||
| Deposits | $ | 5,636 | $ | 5,960 | $ | 6,269 | $ | 5,460 | $ | 5,161 | ||||||||||
| Borrowings | 329 | 346 | 350 | 316 | 247 | |||||||||||||||
| Total Interest Expense | $ | 5,965 | $ | 6,305 | $ | 6,620 | $ | 5,775 | $ | 5,408 | ||||||||||
| Net Interest Income | $ | 10,664 | $ | 10,265 | $ | 9,848 | $ | 9,334 | $ | 8,958 | ||||||||||
| Provision for Credit Losses | $ | 460 | $ | 485 | $ | 430 | $ | 480 | $ | 335 | ||||||||||
| Noninterest Income | ||||||||||||||||||||
| Bank Owned Life Insurance | $ | 100 | $ | 100 | $ | 99 | $ | 97 | $ | 99 | ||||||||||
| ATM, Debit, and Merchant fees | 226 | 234 | 240 | 230 | 201 | |||||||||||||||
| Service Charge Revenue | 153 | 158 | 166 | 167 | 174 | |||||||||||||||
| Gain on Sale of Loans | 75 | 101 | 100 | 90 | 48 | |||||||||||||||
| Other | 54 | 51 | 51 | 18 | 88 | |||||||||||||||
| Total Noninterest Income | $ | 608 | $ | 645 | $ | 657 | $ | 602 | $ | 610 | ||||||||||
| Noninterest Expense | ||||||||||||||||||||
| Salaries and Employee Benefits | $ | 4,207 | $ | 4,128 | $ | 4,082 | $ | 4,004 | $ | 3,940 | ||||||||||
| Occupancy & Equipment | 639 | 610 | 574 | 591 | 594 | |||||||||||||||
| Data Processing | 738 | 724 | 687 | 665 | 730 | |||||||||||||||
| Other | 1,022 | 1,000 | 1,002 | 996 | 985 | |||||||||||||||
| Total Noninterest Expense | $ | 6,606 | $ | 6,462 | $ | 6,345 | $ | 6,256 | $ | 6,249 | ||||||||||
| Income Before Taxes | $ | 4,206 | $ | 3,964 | $ | 3,730 | $ | 3,200 | $ | 2,984 | ||||||||||
| Income Tax Expense | $ | 937 | $ | 880 | $ | 771 | $ | 685 | $ | 607 | ||||||||||
| Net Income | $ | 3,269 | $ | 3,083 | $ | 2,959 | $ | 2,516 | $ | 2,377 | ||||||||||
Yield Data - Unaudited
(Dollars in thousands)
Three Months Ended March 31, 2026 | Three Months Ended December 31, 2025 | Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||
Average | Interest | Yield/ | Average | Interest | Yield/ | Average | Interest | Yield/ | ||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||
| Earning Assets | ||||||||||||||||||||||||||||
| Interest Bearing Deposits | $ | 169,556 | $ | 1,539 | 3.68 | % | $ | 168,678 | $ | 1,670 | 3.93 | % | $ | 101,196 | $ | 1,097 | 4.40 | % | ||||||||||
| Securities | 90,001 | 679 | 3.02 | % | 92,888 | 706 | 3.04 | % | 98,479 | 720 | 2.93 | % | ||||||||||||||||
| Loans, incl. fees | 958,150 | 14,411 | 6.10 | % | 924,591 | 14,194 | 6.09 | % | 851,085 | 12,548 | 5.98 | % | ||||||||||||||||
| Total Earning Assets | $ | 1,217,708 | $ | 16,629 | 5.54 | % | $ | 1,186,157 | $ | 16,571 | 5.54 | % | $ | 1,050,759 | $ | 14,366 | 5.54 | % | ||||||||||
| Cash and Due From Banks | 10,193 | 9,477 | 9,691 | |||||||||||||||||||||||||
| Other Assets | 25,857 | 25,435 | 21,328 | |||||||||||||||||||||||||
| Total assets | $ | 1,253,758 | $ | 1,221,069 | $ | 1,081,779 | ||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||||||||||||
| Deposits | $ | 928,824 | 5,636 | 2.46 | % | $ | 928,244 | 5,960 | 2.55 | % | $ | 815,273 | 5,161 | 2.57 | % | |||||||||||||
| Borrowings | - | - | - | - | - | - | 1 | 0 | 5.35 | % | ||||||||||||||||||
| Subordinated Debentures | 22,000 | 329 | 6.06 | % | 21,761 | 345 | 6.30 | % | 20,000 | 247 | 5.01 | % | ||||||||||||||||
| Total Interest -Bearing Liabilities | $ | 950,824 | $ | 5,965 | 2.54 | % | $ | 950,005 | $ | 6,305 | 2.63 | % | $ | 835,274 | $ | 5,408 | 2.63 | % | ||||||||||
| Noninterest Bearing Deposits | 190,025 | 174,396 | 162,636 | |||||||||||||||||||||||||
| Other Liabilities | 6,949 | 8,324 | 6,327 | |||||||||||||||||||||||||
| Shareholders' Equity | 105,960 | 88,345 | 77,542 | |||||||||||||||||||||||||
| Total Liabilities & Shareholders' Equity | $ | 1,253,758 | $ | 1,221,069 | $ | 1,081,779 | ||||||||||||||||||||||
| Cost of Deposits, incl. noninterest deposits | 2.04 | % | 2.14 | % | 2.14 | % | ||||||||||||||||||||||
| Cost of Funds, incl. noninterest deposits | 2.12 | % | 2.22 | % | 2.20 | % | ||||||||||||||||||||||
| Net Interest Margin | 3.55 | % | 3.44 | % | 3.45 | % | ||||||||||||||||||||||
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 give our employees a meaningful career opportunity. 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
Contact:
Russell Vedder
Title: EVP/CFO
Phone: (843) 839-5662
Fax: (843) 839-5699
SOURCE: Coastal Carolina Bancshares, Inc.
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