CoastalSouth Bancshares, Inc.
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
COSO$28.15-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-11.
0001297107-25-000006
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001193125-25-272276
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 308 previous paragraphs and 309 current paragraphs.
208 unchanged; 95 reworded; 5 added; 2 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 39 previous and 40 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Noninterest income for the three months ended September 30, 2025 was $2.1 million, a decrease of $861 thousand or 29.1%, compared to $3.0 million for the three months ended September 30, 2024. This decrease was primarily in gain on sale of GGL and a net decrease in other categories of noninterest income, primarily in other noninterest income.
Current report
BOLI income increased by $126 thousand to $1.4 million for the nine months ended September 30, 2025 compared to $1.2 million for the nine months ended September 30, 2024. This increase was primarily attributable to an overall increase in total cash surrender value over time.
Current report
Total assets increased $156.7 million, or 7.5%, to $2.26 billion at September 30, 2025 compared to $2.10 billion at December 31,
Current report
The following table reconciles total deposits, as of the dates set forth below, to the calculation of the Company's core deposits.
Current report
(1) The Company defines its core deposits as total deposits less brokered certificates of deposits.
Removed paragraphs (2)
Previous report
Noninterest income for the three months ended June 30, 2025 was $1.8 million, an increase of $206 thousand or 13.0%, compared to $1.6 million for the three months ended June 30, 2024. This increase was primarily due to gain on sale of government guaranteed loans ("GGL"), offset by a net decrease in other categories of noninterest income.
Previous report
BOLI income increased by $102 thousand to $889 thousand for the six months ended June 30, 2025 compared to $787 thousand for the six months ended June 30, 2024. This increase was primarily attributable to higher yield on BOLI during the current period.
Reworded paragraphs (95)
Previous wording
The purpose of this discussion and analysis of financial condition and results of operations, also referred to hereafter as this MD&A, is to aid in understanding significant changes in the financial condition of CoastalSouth Bancshares, Inc. and our wholly owned subsidiary, Coastal States Bank, from December 31, 2024 through June 30, 2025 and on our results of operations for the three and six months ended June 30, 2025 and 2024. This discussion and analysis should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended December 31, 2024 included in our Form S-1 that was declared effective by the Securities and Exchange Commission on July 1, 2025, relating to the IPO (the “Registration Statement”), and information presented elsewhere in this Quarterly Report on Form 10‑Q, particularly the unaudited consolidated financial statements and related notes appearing in Item 1.
Current wording
The purpose of this discussion and analysis of financial condition and results of operations, also referred to hereafter as this MD&A, is to aid in understanding significant changes in the financial condition of CoastalSouth Bancshares, Inc. and our wholly owned subsidiary, Coastal States Bank, from December 31, 2024 through September 30, 2025 and on our results of operations for the three and nine months ended September 30, 2025 and 2024. This discussion and analysis should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended December 31, 2024 included in our Form S-1 that was declared effective by the Securities and Exchange Commission on July 1, 2025, relating to the IPO (the “Registration Statement”), and information presented elsewhere in this Quarterly Report on Form 10‑Q, particularly the unaudited consolidated financial statements and related notes appearing in Item 1.
Previous wording
Credit Losses on Loans,” “Allowance for Credit Losses for Unfunded Commitments,” and “Nonperforming Loans.” Note 1 to the consolidated financial statements as of December 31, 2024 included our Registration Statement that was filed with the SEC includes additional information on accounting policies related to the ACL.
Current wording
Additional information on the loan portfolio and ACL can be found in the sections of this MD&A titled “Loans,” “Allowance for Credit Losses on Loans,” “Allowance for Credit Losses for Unfunded Commitments,” and “Nonperforming Loans.” Note 1 to the consolidated financial statements as of December 31, 2024 included our Registration Statement that was filed with the SEC includes additional information on accounting policies related to the ACL.
Previous wording
The following table sets forth unaudited selected financial data for the most recent five quarters and the six months ended June 30, 2025 and 2024. This data should be read in conjunction with the unaudited consolidated financial statements and accompanying notes included in Item 1 and the information contained in this Item 2.
Current wording
The following table sets forth unaudited selected financial data for the most recent five quarters and the nine months ended September 30, 2025 and 2024. This data should be read in conjunction with the unaudited consolidated financial statements and accompanying notes included in Item 1 and the information contained in this Item 2.
Previous wording
The following discussion of our results of operations compares the three months ended June 30, 2025 and 2024. We reported net income for the three months ended June 30, 2025 of $6.0 million compared to net income of $5.9 million for the three months ended June 30, 2024. The increase of $78 thousand was primarily attributable to a lower effective tax rate albeit with a lower taxable income.
Current wording
The following discussion of our results of operations compares the three months ended September 30, 2025 and 2024. We reported net income for the three months ended September 30, 2025 of $6.7 million compared to net income of approximately $7.9 million for the three months ended September 30, 2024. The decrease of approximately $1.1 million was principally attributable to a lower noninterest income, primarily gain on sale of government guaranteed loans ("GGL"), coupled with a higher effective tax rate albeit with a higher taxable income.
Previous wording
Net interest income for the three months ended June 30, 2025 was $18.1 million compared to $16.7 million for the three months ended June 30, 2024, an increase of $1.4 million, or 8.6%. This increase was primarily due to an increase in the average balance of our total interest-earning assets coupled with a decrease in the average rate paid on interest-bearing liabilities. The increase in the average balance for the interest-earning assets was primarily due to an increase in average loans outstanding. The yield on total earning assets and interest-bearing liabilities decreased by 31 and 49 basis points, respectively, during the same period.
Current wording
Net interest income for the three months ended September 30, 2025 was $19.2 million compared to $17.0 million for the three months ended September 30, 2024, an increase of $2.2 million, or 13.1%. This increase was primarily due to an increase in the average balance of our total interest-earning assets coupled with a decrease in the average rate paid on interest-bearing liabilities. The increase in the average balance for the interest-earning assets was primarily due to an increase in average loans outstanding. The yield on total earning assets and interest-bearing liabilities decreased by 23 and 58 basis points, respectively, during the same period.
Previous wording
Total interest income for the three months ended June 30, 2025 was $31.8 million compared to $31.2 million for the three months ended June 30, 2024, an increase of $623 thousand, or 2.0%. This increase was primarily due to growth in our loans portfolio albeit with lower yields.
Current wording
Total interest income for the three months ended September 30, 2025 was $32.9 million compared to $32.6 million for the three months ended September 30, 2024, an increase of $336 thousand, or 1.0%. This increase was primarily due to growth in our loans portfolio albeit with lower yields.
Previous wording
Interest and fees on LHFI were $23.8 million for the three months ended June 30, 2025 compared to $23.6 million for the three months ended June 30, 2024, an increase of $180 thousand, or 0.8%. This increase was primarily attributable to an increase in average LHFI of $81.8 million, or 5.7%, albeit with a decrease in yield. The yield on gross LHFI decreased by 33 basis points compared to the same period in 2024. Interest and fees on LHFS were $3.3 million for the three months ended June 30, 2025 compared to $2.3 million for the three months ended June 30, 2024. This increase was primarily due to an increase in the average balance of LHFS outstanding although the yield decreased by 84 basis points compared to the same period in 2024.
Current wording
Interest and fees on LHFI were $24.6 million for the three months ended September 30, 2025 compared to $24.2 million for the three months ended September 30, 2024, an increase of $384 thousand, or 1.6%. This increase was primarily attributable to an increase in average LHFI of $103.5 million, or 7.2%, albeit with a decrease in yield. The yield on gross LHFI decreased by 37 basis points compared to the same period in 2024. Interest and fees on LHFS were $3.4 million for the three months ended September 30, 2025 compared to $3.0 million for the three months ended September 30, 2024. This increase was primarily due to an increase in the average balance of LHFS outstanding although the yield decreased by 26 basis points compared to the same period in 2024.
Previous wording
Interest income on investment securities was $3.9 million for the three months ended June 30, 2025 compared to $4.2 million for the three months ended June 30, 2024. This decrease was primarily due to the fact that the yield on investment securities decreased by 30 basis points and the average balance decreased by $8.6 million during the period.
Current wording
Interest income on investment securities was $4.1 million for the three months ended September 30, 2025 compared to $4.2 million for the three months ended September 30, 2024. This decrease was primarily due to the fact that the average balance decreased by $13.5 million even though the the yield on investment securities increased by 12 basis points during the period.
Previous wording
Interest expense for the three months ended June 30, 2025 was $13.7 million compared to $14.5 million for the three months ended June 30, 2024. This decrease was primarily attributable to lower average borrowings, specifically the payoff of a $70.0 million Bank Term Funding Program ("BTFP") that was outstanding during the second quarter of 2024, coupled with a 49 basis point decrease in the average cost of overall total interest-bearing liabilities, primarily in money market and time deposit accounts as the rates were adjusted to align with the market. Average borrowings outstanding decreased from June 30, 2024 to June 30, 2025 by $66.2 million, or 68.5%, primarily due to the aforementioned BTFP payoff, while the cost increased by 50 basis points during the same period.
Current wording
Interest expense for the three months ended September 30, 2025 was $13.7 million compared to $15.6 million for the three months ended September 30, 2024. This decrease was primarily attributable to lower average borrowings, specifically the payoff of a $70.0 million Bank Term Funding Program ("BTFP") that was outstanding during the third quarter of 2024, coupled with a 58 basis point decrease in the average cost of overall total interest-bearing liabilities, primarily in money market and time deposit accounts as the rates were adjusted to align with the market. Average borrowings outstanding decreased from September 30, 2024 to September 30, 2025 by $84.2 million, or 87.1%, primarily due to the aforementioned BTFP payoff, while the cost increased by 797 basis points during the same period, which was principally due to a $236 thousand debt issuance costs which were accelerated due to calling of the Company's subordinated debt.
Previous wording
Net interest margin for the three months ended June 30, 2025 and 2024 was 3.46% and 3.43%, respectively. Net interest margin and net interest income are influenced by internal and external factors. Internal factors include balance sheet changes on both volume and mix and pricing decisions, and external factors include changes in market interest rates, competition and the shape of the interest rate yield curve. This increase in our net interest margin is primarily due to a combination of average total earning assets growth and a decrease in average total interest-bearing liabilities. Average earning assets for the three months ended June 30, 2025 increased by $134.9 million compared to the three months ended June 30, 2024, principally due to growth of our loan portfolio. Average interest-bearing liabilities for the three months ended June 30, 2025 increased by $128.3 million compared to the three months ended June 30, 2024, driven by growth in average interest-bearing deposits.
Current wording
Net interest margin for the three months ended September 30, 2025 and 2024 was 3.58% and 3.32%, respectively. Net interest margin and net interest income are influenced by internal and external factors. Internal factors include balance sheet changes on both volume and mix and pricing decisions, and external factors include changes in market interest rates, competition and the shape of the interest rate yield curve. This increase in our net interest margin was primarily due to a combination of average total earning assets growth and a decrease in yield for average total interest-bearing liabilities. Average earning assets for the three months ended September 30, 2025 increased by $91.9 million compared to the three months ended September 30, 2024, principally due to growth of our loan portfolio. Average interest-bearing liabilities for the three months ended September 30, 2025 increased by $51.8 million compared to the three months ended September 30, 2024, driven by growth in average interest-bearing deposits.
Previous wording
Provision for credit losses for the three months ended June 30, 2025 was $752 thousand compared to $173 thousand for the three months ended June 30, 2024, an increase of $579 thousand. This increase was primarily due to increased production of LHFI and unfunded commitments, changes in economic factors, and current period net charge-offs, offset by other changes in loss rates. Our allowance for credit losses as a percentage of gross LHFI at June 30, 2025 and 2024 was 1.15% and 1.11%, respectively.
Current wording
Provision (recovery) for credit losses for the three months ended September 30, 2025 was $653 thousand compared to ($1.0) million for the three months ended September 30, 2024, an increase of $1.7 million. This increase was primarily due to a reduction in reserves on individually-analyzed collateral-dependent loans during three months ended September 30, 2024 coupled with provision for the three months ended September 30, 2025 driven by increased production of LHFI, current period net charge-offs, and changes to loan mix and other loss rate changes between the periods. Our allowance for credit losses as a percentage of gross LHFI at September 30, 2025 and 2024 was 1.16% and 1.11%, respectively.
Previous wording
Income from bank-owned life insurance policies ("BOLI") decreased by $42 thousand to $449 thousand for the three months ended June 30, 2025 compared to $491 thousand for the three months ended June 30, 2024. This decrease was primarily attributable to a lower yield on BOLI during the current period.
Current wording
Income from bank-owned life insurance policies ("BOLI") increased by $24 thousand to $461 thousand for the three months ended September 30, 2025 compared to $437 thousand for the three months ended September 30, 2024. This increase was primarily attributable to an overall increase in total cash surrender value over time.
Previous wording
Mortgage banking related income increased by $27 thousand to $326 thousand for the three months ended June 30, 2025 compared to $299 thousand for the three months ended June 30, 2024. This increase was primarily due to slightly higher secondary market mortgage production which is comprised primarily of activity related to the sale of consumer mortgage loans as well as loan origination fees such as closing charges, document review fees, application fees, other loan origination fees, and loan processing fees.
Current wording
Mortgage banking related income increased by $23 thousand to $299 thousand for the three months ended September 30, 2025 compared to $276 thousand for the three months ended September 30, 2024. This increase was primarily due to slightly higher secondary market mortgage production which is comprised primarily of activity related to the sale of consumer mortgage loans as well as loan origination fees such as closing charges, document review fees, application fees, other loan origination fees, and loan processing fees.
Previous wording
Gain on sale of GGL increased by $230 thousand to $265 thousand for the three months ended June 30, 2025 compared to $35 thousand for the three months ended June 30, 2024. The Company had more GGL that was able to be sold during the second quarter of 2025 than in the second quarter of 2024.
Current wording
Gain on sale of GGL decreased by $698 thousand to $613 thousand for the three months ended September 30, 2025 compared to $1.3 million for the three months ended September 30, 2024. The Company had fewer GGL that were able to be sold during the three months ended September 30, 2025 than during the three months ended September 30, 2024.
Previous wording
Interchange and card fee income increased by $31 thousand to $257 thousand for the three months ended June 30, 2025 compared to $226 thousand for the three months ended June 30, 2024. This increase was attributable to interchange fees from debit cardholder transactions conducted through a payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are earned on a daily basis.
Current wording
Interchange and card fee income increased by $22 thousand to $238 thousand for the three months ended September 30, 2025 compared to $216 thousand for the three months ended September 30, 2024. This increase was attributable to interchange fees from debit cardholder transactions conducted through a payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are earned on a daily basis.
Previous wording
Service charges on deposit accounts were $215 thousand and $198 thousand for the three months ended June 30, 2025 and 2024, respectively. These service charges are mostly comprised of wire, NSF, and overdraft fees.
Current wording
Service charges on deposit accounts were flat at $208 thousand for the three months ended September 30, 2025 and 2024. These service charges are mostly comprised of wire, non-sufficient funds ("NSF"), and overdraft fees.
Previous wording
Other noninterest income decreased by $57 thousand to $283 thousand for the three months ended June 30, 2025 compared to $340 thousand for the three months ended June 30, 2024. This decrease was primarily due to lower miscellaneous income, offset by a net increase in other categories within other noninterest income.
Current wording
Other noninterest income decreased by $222 thousand to $291 thousand for the three months ended September 30, 2025 compared to $513 thousand for the three months ended September 30, 2024. This decrease was primarily due to a nonrecurring $186.8 thousand other gain on OREO during three months ended September 30, 2024 and a net decrease in other categories within other noninterest income.
Previous wording
Noninterest expense for the three months ended June 30, 2025 was $12.1 million compared to $10.7 million for the three months ended June 30, 2024, an increase of 1.4 million, or 13.5%. This increase was across all noninterest expense categories primarily in other professional fees, salaries and employee benefits, and other noninterest expense.
Current wording
Noninterest expense for the three months ended September 30, 2025 was $11.9 million compared to $10.8 million for the three months ended September 30, 2024, an increase of $1.0 million, or 9.5%. This increase was across all noninterest expense categories primarily in salaries and employee benefits, other professional services, software and other technology expense, and other noninterest expense.
Previous wording
Salaries and employee benefits expense for the three months ended June 30, 2025 was $7.0 million compared to $6.7 million for the three months ended June 30, 2024, an increase of $343 thousand, or 5.2%. This increase was attributable to hiring new employees with skills and experience necessary to support our strategic goals. The average number of full-time equivalent employees was 188 for the three months ended June 30, 2025 compared to 178 for three months ended June 30, 2024.
Current wording
Salaries and employee benefits expense for the three months ended September 30, 2025 was $7.0 million compared to $6.7 million for the three months ended September 30, 2024, an increase of $258 thousand, or 3.8%. This increase was attributable to hiring new employees with skills and experience necessary to support our strategic goals. The average number of full-time equivalent employees was 194 for the three months ended September 30, 2025 compared to 181 for three months ended September 30, 2024.
Previous wording
Occupancy and equipment expense for the three months ended June 30, 2025 was $814 thousand compared to $736 thousand for the three months ended June 30, 2024, an increase of $78 thousand, or 10.6%. This increase was primarily due to new leases and rental increases, property taxes and depreciation, and upkeep related to the properties.
Current wording
Occupancy and equipment expense for the three months ended September 30, 2025 was $850 thousand compared to $754 thousand for the three months ended September 30, 2024, an increase of $96 thousand, or 12.7%. This increase was primarily due to new leases and rental increases, property taxes and depreciation, and upkeep related to the properties.
Previous wording
Software and technology expense for the three months ended June 30, 2025 was $719 thousand compared to $631 thousand for the three months ended June 30, 2024, an increase of $88 thousand, or 13.9%. This expense was primarily comprised of our information technology services, software licenses and maintenance and commensurate with the Company growth.
Current wording
Software and technology expense for the three months ended September 30, 2025 was $788 thousand compared to $671 thousand for the three months ended September 30, 2024, an increase of $117 thousand, or 17.4%. This expense was primarily comprised of our information technology services, software licenses and maintenance and commensurate with the Company growth.
Previous wording
Other professional services expense for the three months ended June 30, 2025 was $973 thousand compared to $501 thousand for the three months ended June 30, 2024, an increase of $472 thousand, or 94.2%. This increase was primarily due to higher recruiting fees and loan collection related expense.
Current wording
Other professional services expense for the three months ended September 30, 2025 was $571 thousand compared to $358 thousand for the three months ended September 30, 2024, an increase of $213 thousand, or 59.5%. This increase was across multiple categories, primarily due to higher accounting fees, recruiting fees and consultant fees; offset by a net decrease in other categories, primarily loan collection related expense.
Previous wording
Data processing expense for the three months ended June 30, 2025 was $652 thousand compared to $534 thousand for the three months ended June 30, 2024, an increase of $118 thousand, or 22.1%. The data processing expense increase was due to increased wire and account processing volumes and other processing costs and is commensurate with growth, generally.
Current wording
Data processing expense for the three months ended September 30, 2025 was $647 thousand compared to $548 thousand for the three months ended September 30, 2024, an increase of $99 thousand, or 18.1%. The data processing expense increase was due to increased wire and account processing volumes and other processing costs and is commensurate with growth, generally.
Previous wording
FDIC insurance and regulatory assessment expense for the three months ended June 30, 2025 was $344 thousand compared to $318 thousand for the three months ended June 30, 2024, an increase of $26 thousand, or 8.2%. This increase was primarily attributable to changes in the Bank's asset mix and growth rates.
Current wording
FDIC insurance and regulatory assessment expense for the three months ended September 30, 2025 was $419 thousand compared to $344 thousand for the three months ended September 30, 2024, an increase of $75 thousand, or 21.8%. This increase was primarily attributable to changes in the Bank's asset mix and growth rates.
Previous wording
Marketing and advertising expense for the three months ended June 30, 2025 was $269 thousand compared to $197 thousand for the three months ended June 30, 2024, an increase of $72 thousand, or 36.5%. This increase was primarily attributable to higher marketing and advertising costs associated with increased digital advertising, mailings, and sponsorships during the three months ended June 30, 2025 as compared to the same period last year. Marketing and advertising expense is included in Other noninterest expenses in our Company’s Consolidated Statements of Operations.
Current wording
Marketing and advertising expense for the three months ended September 30, 2025 was $245 thousand compared to $243 thousand for the three months ended September 30, 2024 and remained relatively flat. Marketing and advertising costs are associated with digital advertising, mailings, and sponsorship. Marketing and advertising expense is included in Other noninterest expenses in our Company’s Consolidated Statements of Operations.
Previous wording
Other noninterest expenses, excluding marketing and advertising expense, for the three months ended June 30, 2025 were $1.3 million compared to $1.1 million for the three months ended June 30, 2024, an increase of $243 thousand, or 22.5%. This increase was primarily attributable to increases in board of directors fees paid in cash, as no equity awards were granted to the Board of Directors in 2025, general and administrative expense and other noninterest expense. Included in other noninterest expense for the three months ended June 30, 2025 and 2024 were directors’ fees paid in cash of $176 thousand and $79 thousand, respectively.
Current wording
Other noninterest expenses, excluding marketing and advertising expense, for the three months ended September 30, 2025 were $1.4 million compared to $1.2 million for the three months ended September 30, 2024, an increase of $166 thousand, or 14.0%. This increase was primarily attributable to increases in board of directors fees paid in cash, as no equity awards were granted to the Board of Directors in 2025, and general and administrative expense. Included in other noninterest expense for the three months ended September 30, 2025 and 2024 were directors’ fees paid in cash of $176 thousand and $79 thousand, respectively.
Previous wording
Income tax expense for the three months ended June 30, 2025 and 2024 was $1.1 million and $1.6 million, respectively. Effective tax rates were 15.1% and 21.1% for the three months ended June 30, 2025 and 2024, respectively. The decrease in effective tax rate compared to the three months ended June 30, 2024 was due to higher recognition of solar tax credits during the three months ended June 30, 2025.
Current wording
Income tax expense for the three months ended September 30, 2025 and 2024 was $2.0 million and $2.2 million, respectively. Effective tax rates were 23.2% and 22.1% for the three months ended September 30, 2025 and 2024, respectively. The increase in effective tax rate compared to the three months ended September 30, 2024 was due to a lower recognition of low income housing tax credits during the three months ended September 30, 2025.
Previous wording
Results of Operations — Comparison of Results of Operations for the Six Months Ended June 30, 2025 and 2024
Current wording
Results of Operations — Comparison of Results of Operations for the Nine Months Ended September 30, 2025 and 2024
Previous wording
The following discussion of our results of operations compares the six months ended June 30, 2025 and 2024. We reported net income for the six months ended June 30, 2025 of $11.0 million compared to net income of $8.3 million for the six months ended June 30, 2024. The increase of $2.7 million was primarily due to a nonrecurring previously disclosed strategic repositioning of approximately $42.6 million of AFS securities that resulted in an approximately $2.7 million loss on sale, net of tax, during six months ended June 30, 2024.
Current wording
The following discussion of our results of operations compares the nine months ended September 30, 2025 and 2024. We reported net income for the nine months ended September 30, 2025 of $17.8 million compared to net income of $16.2 million for the nine months ended September 30, 2024. The increase of $1.6 million was primarily due to a nonrecurring previously disclosed strategic repositioning of approximately $42.6 million of AFS securities that resulted in an approximately $2.7 million loss on sale, net of tax, during the nine months ended September 30, 2024 and an overall better performance during the nine months ended September 30, 2025.
Previous wording
Net interest income for the six months ended June 30, 2025 was $34.8 million compared to $32.1 million for the six months ended June 30, 2024, an increase of $2.8 million, or 8.6%. This increase was primarily due to an increase in the average balance of our total interest-earning assets while the yield decreased at a lower rate compared the decrease in the average rate paid on interest-bearing liabilities despite a similar growth in average interest-bearing liabilities. The increase in the average balance for the total interest-earning assets was primarily due to an increase in average loans outstanding. The yield on total earning assets and interest-bearing liabilities decreased by 20 and 41 basis points, respectively, during the same period.
Current wording
Net interest income for the nine months ended September 30, 2025 was $54.0 million compared to $49.1 million for the nine months ended September 30, 2024, an increase of $5.0 million, or 10.1%. This increase was primarily due to an increase in the average balance of our total interest-earning assets while the yield decreased at a lower rate compared the decrease in the average rate paid on interest-bearing liabilities despite growth in average interest-bearing liabilities. The increase in the average balance for the total interest-earning assets was primarily due to an increase in average loans outstanding. The yield on total earning assets and interest-bearing liabilities decreased by 21 and 48 basis points, respectively, during the same period.
Previous wording
Total interest income for the six months ended June 30, 2025 was $61.8 million compared to $60.6 million for the six months ended June 30, 2024, an increase of $1.3 million, or 2.1%. This increase was primarily due to growth in our average total earning assets by $111.1 million principally in the average loans portfolio, notwithstanding a decrease in yields by 20 basis points from the comparable period.
Current wording
Total interest income for the nine months ended September 30, 2025 was $94.7 million compared to $93.1 million for the nine months ended September 30, 2024, an increase of $1.6 million, or 1.7%. This increase was primarily due to growth in our average total earning assets by $104.7 million principally in the average loans portfolio, notwithstanding a decrease in yields by 21 basis points from the comparable period.
Previous wording
Interest and fees on LHFI were $46.1 million for the six months ended June 30, 2025 compared to $46.7 million for the six months ended June 30, 2024, a decrease of $565 thousand, or 1.2%. This decrease was primarily attributable to the yield decrease on gross LHFI by 29 basis points compared to the same period last year. Interest and fees on LHFS were $6.1 million for the six months ended June 30, 2025 compared to $3.9 million for the six months ended June 30, 2024. This increase was primarily due to an increase in the average balance of LHFS outstanding, notwithstanding a decrease in yields by 62 basis points.
Current wording
Interest and fees on LHFI were $70.7 million for the nine months ended September 30, 2025 compared to $70.9 million for the nine months ended September 30, 2024, a decrease of $181 thousand, or 0.3%. This decrease was primarily attributable to the yield decrease on gross LHFI by 32 basis points compared to the same period last year. Interest and fees on LHFS were $9.5 million for the nine months ended September 30, 2025 compared to $6.9 million for the nine months ended September 30, 2024. This increase was primarily due to an increase in the average balance of LHFS outstanding, notwithstanding a decrease in yields by 46 basis points.
Previous wording
Interest income on investment securities was $7.7 million for the six months ended June 30, 2025 compared to $7.9 million for the six months ended June 30, 2024, a decrease of $206 thousand, or 2.6%. This decrease was primarily due to a decrease in the average balance by $13.9 million despite the yield on investment securities increasing by 8 basis points.
Current wording
Interest income on investment securities was $11.8 million for the nine months ended September 30, 2025 compared to $12.1 million for the nine months ended September 30, 2024, a decrease of $252 thousand, or 2.1%. This decrease was primarily due to a decrease in the average balance by $13.8 million despite the yield on investment securities increasing by 9 basis points.
Previous wording
Interest expense for the six months ended June 30, 2025 was $27.0 million compared to $28.5 million for the six months ended June 30, 2024, a decrease of $1.5 million, or 5.2%. This decrease was primarily attributable to a 41 basis point decrease in the average yield on overall total interest-bearing liabilities, primarily in money markets and time deposits, due to rates adjustments. Average borrowings outstanding decreased from June 30, 2024 to June 30, 2025 by $69.4 million, or 71.2%, principally due to payoff of a $70.0 million Bank Term Funding Program ("BTFP") that was outstanding during the second half of 2024, while the yield increased by 76 basis points.
Current wording
Interest expense for the nine months ended September 30, 2025 was $40.7 million compared to $44.1 million for the nine months ended September 30, 2024, a decrease of $3.4 million, or 7.7%. This decrease was primarily attributable to a 48 basis point decrease in the average yield on overall total interest-bearing liabilities, primarily in money markets and time deposits, due to rates adjustments. Average borrowings outstanding decreased from September 30, 2024 to September 30, 2025 by $74.4 million, or 76.5%, principally due to payoff of a $70.0 million BTFP that was outstanding during the nine months ended September 30, 2024, while the yield increased by 210 basis points, primarily due to a $236 thousand debt issuance costs which were accelerated due to calling of the Company's subordinated debt.
Previous wording
Net interest margin for the six months ended June 30, 2025 and 2024 was 3.42% and 3.32%, respectively. Net interest margin and net interest income are influenced by internal and external factors. Internal factors include balance sheet changes on both volume and mix and pricing decisions, and external factors include changes in market interest rates, competition and the shape of the interest rate yield curve. This increase in our net interest margin was primarily due to the increase in average interest-earning assets coupled with a decrease in yield on total earning assets at a lower pace as compared the decrease in yield for total interest-earning liabilities as discussed above.
Current wording
Net interest margin for the nine months ended September 30, 2025 and 2024 was 3.48% and 3.32%, respectively. Net interest margin and net interest income are influenced by internal and external factors. Internal factors include balance sheet changes on both volume and mix and pricing decisions, and external factors include changes in market interest rates, competition and the shape of the interest rate yield curve. This increase in our net interest margin was primarily due to the increase in average interest-earning assets coupled with a decrease in yield on total earning assets at a lower pace as compared the decrease in yield for total interest-earning liabilities as discussed above.
Previous wording
Provision for credit losses for the six months ended June 30, 2025 was $1.4 million compared to $336 thousand for the six months ended June 30, 2024, an increase of $1.0 million. This increase was primarily attributable to increased production of LHFI and unfunded commitments, changes in economic factors, and current period net charge-offs, and an increase in reserves of individually analyzed collateral-dependent loans, offset by other changes in loss rates. Our allowance for credit losses as a percentage of gross LHFI at June 30, 2025 and 2024 was 1.15% and 1.11%, respectively.
Current wording
Provision (recovery) for credit losses for the nine months ended September 30, 2025 was $2.0 million compared to ($687) thousand for the nine months ended September 30, 2024, an increase of $2.7 million. This increase was primarily attributable to increased production of LHFI and unfunded commitments, changes in economic factors, and current period net charge-offs, and an increase in reserves of individually analyzed collateral-dependent loans, offset by other changes in loss rates, coupled with a nonrecurring recapture of $1.0 million of unfunded commitments ACL during nine months ended September 30, 2024. Our allowance for credit losses as a percentage of gross LHFI at September 30, 2025 and 2024 was 1.16% and 1.11%, respectively.
Previous wording
Noninterest income for the six months ended June 30, 2025 was $3.7 million, an increase of $4.1 million or 1,007.7%, compared to a loss of $405 thousand for the six months ended June 30, 2024. This increase was primarily attributable to the previously disclosed loss on sale of AFS securities of $3.5 million, pre-tax, due AFS portfolio strategic repositioning during the six months ended June 30, 2024 coupled with a net increase in other noninterest income categories, principally $438 thousand of income recognized from a Small Business Investment Company ("SBIC") partnership investment related to the sale of one of the fund's underlying investments.
Current wording
Noninterest income for the nine months ended September 30, 2025 was $5.8 million, an increase of $3.2 million or 126.0%, compared to $2.6 million for the nine months ended September 30, 2024. This increase was primarily attributable to the previously disclosed loss on sale of AFS securities of $3.5 million, pre-tax, due to an AFS portfolio strategic repositioning during the nine months ended September 30, 2024, offset by a net decrease in other noninterest income categories, principally in gain on sale of GGL.
Previous wording
Mortgage banking related income increased by $10 thousand to $547 thousand for the six months ended June 30, 2025 compared to $537 thousand for the six months ended June 30, 2024. This increase was primarily due to higher revenue from mortgage production which is comprised primarily of activity related to the sale of consumer mortgage loans as well as loan origination fees such as closing charges, document review fees, application fees, other loan origination fees, and loan processing fees, albeit slightly lower secondary market volume.
Current wording
Mortgage banking related income increased by $33 thousand to $846 thousand for the nine months ended September 30, 2025 compared to $813 thousand for the nine months ended September 30, 2024. This increase was primarily due to higher revenue from mortgage production which is comprised primarily of activity related to the sale of consumer mortgage loans as well as loan origination fees such as closing charges, document review fees, application fees, other loan origination fees, and loan processing fees, albeit slightly lower secondary market volume.
Previous wording
Gain on sale of GGL decreased by $90 thousand to $265 thousand for the six months ended June 30, 2025 compared to $355 thousand for the same period during 2024. The Company's gain on the sale of GGL volume increases or decreases based on the attractiveness of market premiums and the amount of inventory of loans that are saleable.
Current wording
Gain on sale of GGL decreased by $788 thousand to $878 thousand for the nine months ended September 30, 2025 compared to $1.7 million for the same period during 2024. The Company's gain on the sale of GGL volume increases or decreases based on the attractiveness of market premiums and the amount of inventory of loans that are saleable.
Previous wording
Interchange and card fee income increased by $81 thousand to $523 thousand for the six months ended June 30, 2025 compared to $442 thousand for the six months ended June 30, 2024. This increase was attributable to an increase in interchange fees from debit cardholder transactions conducted through a payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are earned on a daily basis.
Current wording
Interchange and card fee income increased by $103 thousand to $761 thousand for the nine months ended September 30, 2025 compared to $658 thousand for the nine months ended September 30, 2024. This increase was attributable to an increase in interchange fees from debit cardholder transactions conducted through a payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are earned on a daily basis.
Showing the first 40 of 95 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
(1) $25 million FHLB of Atlanta advance outstanding.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Additional information on the loan portfolio and ACL can be found in the sections of this MD&A titled “Loans,” “Allowance for
Previous report — wording carried elsewhere
Other available sources of liquidity include wholesale deposits, and additional borrowings from correspondent banks, FHLBA advances, and the Federal Reserve discount window.
Previous report — wording carried elsewhere
(1) $15 million due after five years represents gross subordinated debt outstanding.