ADDED
10,449 8,098 Non-voting common stock, $ 1.00 par value, 10,000,000 shares authorized, 1,530,029 and 2,172,029 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 1,530 2,172 Capital surplus 189,654 158,755 Retained earnings 59,750 41,994 Accumulated other comprehensive loss ( 10,945 ) ( 15,787 ) Total shareholders' equity 250,438 195,232 Total liabilities and shareholders' equity $ 2,255,389 $ 2,098,712 The accompanying notes are an integral part of these consolidated financial statements.
Accounting Pronouncements Not Yet Adopted In September 2025, the Financial Accounting Standards Board ("FASB") issued ASU 2025-06, Intangibles Goodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software .
This Update modernizes the accounting for software costs that are accounted for under Subtopic 350-40, Intangibles Goodwill and Other Internal-Use Software (referred to as internal-use software ).
The Update changes the cost capitalization threshold by: (a) eliminating accounting 6 CoastalSouth Bancshares, Inc.
and Subsidiary Notes to Consolidated Financial Statements (unaudited) - Continued consideration of software project development stages; cost capitalization would begin when (i) management has authorized and committed to funding the project and (ii) it is probable the project will be completed and the software used to perform its intended function (the probable-to-complete threshold); and (b) enhancing the guidance around the probable-to-complete threshold.
This Update also modifies the website development costs guidance by requiring entities to provide disclosures required under Subtopic 360-10 on property, plant equipment to capitalized internal-use software and related amortization, regardless of how the internal-use software is classified on the balance sheet or how it was acquired.
This Update is effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods with early adoption permitted as of the beginning of an annual reporting period.
The Company intends to adopt this Update on a prospective transition approach.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures .
These new enhancements are meant to better (1) understand an entity s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, (2) assess income tax information that affects cash flow forecasts and capital allocation decisions, and (3) identify potential opportunities to increase future cash flows.
REMOVED
8,107 8,098 Non-voting common stock, $ 1.00 par value, 10,000,000 shares authorized, 2,172,029 shares issued and outstanding at June 30, 2025 and December 31, 2024 2,172 2,172 Capital surplus 159,267 158,755 Retained earnings 53,009 41,994 Accumulated other comprehensive loss ( 13,190 ) ( 15,787 ) Total shareholders' equity 209,365 195,232 Total liabilities and shareholders' equity $ 2,221,245 $ 2,098,712 The accompanying notes are an integral part of these consolidated financial statements.
Accounting Pronouncements Not Yet Adopted In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures .
These new enhancements are meant to better (1) understand an entity s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, (2) assess income tax information that affects cash flow forecasts and capital allocation decisions, and (3) identify potential opportunities to 6 CoastalSouth Bancshares, Inc.
and Subsidiary Notes to Consolidated Financial Statements (unaudited) - Continued increase future cash flows.
Treasuries $ 5,993 $ - $ - $ 249 $ 5,744 Municipal obligations 62,163 - 18 8,293 53,888 Mortgage-backed securities 191,256 - 568 11,880 179,944 Asset-backed securities 33,608 - 222 186 33,644 Corporate debt securities 59,330 - 906 1,696 58,540 Total securities available-for-sale $ 352,350 $ - $ 1,714 $ 22,304 $ 331,760 December 31, 2024 (In thousands of dollars) Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S.
Treasuries $ - $ - $ 5,744 $ 249 $ 5,744 $ 249 Municipal obligations - - 53,118 8,293 53,118 8,293 Mortgage-backed securities 36,563 205 104,233 11,675 140,796 11,880 Asset-backed securities 1,532 10 7,395 176 8,927 186 Corporate debt securities 3,355 33 20,810 1,663 24,165 1,696 Total AFS securities $ 41,450 $ 248 $ 191,300 $ 22,056 $ 232,750 $ 22,304 7 CoastalSouth Bancshares, Inc.
and Subsidiary Notes to Consolidated Financial Statements (unaudited) - Continued The following table shows securities in unrealized loss position for which an ACL has not been recorded and the length of time they were in continuous loss positions as of December 31, 2024: Less than Twelve months Twelve months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands of dollars) Fair Value losses Fair Value losses Fair Value losses U.S.
Of the 144 securities in an unrealized loss position at June 30, 2025, 18 securities were in a continuous loss position for less than twelve months, and 126 securities were in a continuous loss position for twelve months or more.
Based on the results of management's review at June 30, 2025 , no ne of the unrealized loss was attributable to credit impairment and all $ 22.3 million in unrealized loss was determined to be from factors other than credit.
These risks include location, market conditions and price volatility, change in interest rates, demand for developed land, lots and buildings, desirability of features and styling of completed developments and buildings, competition from other developments and builders, traffic patterns, remote work patterns, governmental jurisdiction, tax structure, availability of utilities, roads, public transportation and schools, 8 CoastalSouth Bancshares, Inc.