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0 COASTALSOUTH BANCSHARES , INC . May 10 , 2021 To our Shareholders : CoastalSouth Bancshares , Inc. ( the " Company " ) is pleased to announce net income of $ 3.1 million , or $ 0.38 per diluted share , for the first quarter of 2021 , compared to $ 1.7 million net income , or $ 0.21 per diluted share , for the fourth quarter of 2020. With a strong first quarter , the Company is positioned to continue its growth trajectory with increased profitability . " Q1 was an outstanding quarter for CSB , " said Steve Stone , President and Chief Executive Officer of the Company and its wholly owned subsidiary , Coastal States Bank ( " CSB " ) . “ Our team members did an amazing job of assisting customers with second draw PPP loans , while building strong organic loan pipelines . Even more importantly , our customer acquisition and deposit growth were near record levels . With the recent announcement regarding our acquisition of Cornerstone Bank , CSB is off to a great start to 2021. The Cornerstone acquisition is expected to be accretive to our tangible book value , accretive to earnings , and accretive to franchise value . " Highlights for the First Quarter of 2021 • Net income of $ 3.1 million and $ 0.38 diluted earnings per share ( " Diluted EPS " ) • Net interest income of $ 9.8 million , a 5.5 % annualized increase from December 31 , 2020 Originated 347 Paycheck Protection Program ( “ PPP " ) loans totaling $ 78.3 million during the quarter • • Grew deposits by $ 128.9 million or 14.5 % from the fourth quarter of 2020 • • Efficiency ratio of 64.85 % compared to 70.13 % and 77.46 % in the fourth and first quarters of 2020 , respectively Tangible book value of $ 12.56 per share , a 4.0 % annualized increase from December 31 , 2020 On April 22 , 2021 announced the acquisition of Cornerstone Bancshares , Inc. During the first quarter , the Company's momentum continued as deposits grew $ 128.9 million to $ 1.02 billion . This growth was driven by deepening our relationships with existing customers and continuing to convert relationships with new customers that we assisted through the PPP . In the first quarter , our bankers continued to see loan pipelines rebound with commercial customers resuming projects that had been put on hold during 2020 , given the uncertainty of the COVID - 19 pandemic . While much focus was placed on ensuring our customers had access to the 2021 round of PPP loans , resulting in new gross originations of $ 78.3 million at March 31 , 2021 , core loans held for investment still grew by $ 13.6 million in the first quarter setting the stage for strong core loan growth in 2021 . Equal Housing Lender Member FDIC coastalstatesbank.com