Page 1

COASTALSOUTH BANCSHARES , INC . August 12 , 2021 To our Shareholders : CoastalSouth Bancshares , Inc. ( the " Company " ) is pleased to announce net income of $ 3.3 million , or $ 0.40 per diluted share , for the second quarter of 2021 , compared to $ 3.1 million net income , or $ 0.38 per diluted share , for the first quarter of 2021. With another strong quarter , the Company is positioned to continue its growth trajectory with increased profitability and balance sheet expansion . " Q2 was another strong quarter for CSB , " said Steve Stone , President and Chief Executive Officer of the Company and its wholly owned subsidiary , Coastal States Bank ( “ CSB ” ) . " During the quarter , we opened two new branches in the metro - Atlanta area in Sandy Springs and Alpharetta . The opening of these branches and recent hires of additional bankers in these markets demonstrates our commitment to our communities by establishing a physical presence to better serve our customers in these markets . Our pending acquisition of Cornerstone Bank will further expand our Atlanta market presence and deposit market share . " Highlights for the Second Quarter of 2021 ● Net income of $ 3.3 million , and $ 0.40 diluted earnings per share ( " Diluted EPS " ) • Total assets up by $ 81.4 million , a 6.9 % increase from March 31 , 2021 • Grew deposits by $ 89.4 million or 8.8 % from the first quarter of 2021 • Efficiency ratio of 64.69 % compared to 64.85 % and 68.88 % in the first quarter of 2021 and second quarter of 2020 , respectively • Tangible book value of $ 13.07 per share , a 4.1 % increase from March 31 , 2021 During the second quarter , the Company's momentum continued as deposits grew by $ 89.4 million to $ 1.11 billion . This growth was driven by deepening our relationships with existing customers and attracting new customers through our attractive product offerings and our team members ' commitments to a great customer experience . During the second 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 . The Company has continued to recruit and hire talented bankers within our markets to attract new customers . Notwithstanding improving loan demand , the Company continues to have a significant amount of liquidity as a result of strong deposit growth . As such , CSB continues to evaluate opportunities to prudently deploy liquidity into earning assets and , in the second quarter , completed several purchases of high end marine loans totaling approximately $ 28.2 million . Inclusive of these Equal Housing Lender Member FDIC coastalstatesbank.com