COSO · CIK 1297107
What CoastalSouth Bancshares, Inc. told the SEC could break it.
CoastalSouth's register centers on a loan book concentrated in a few specialty niches and exposed to the coast. Income-producing commercial real estate, marine/watercraft and senior-housing loans make up roughly 22.8%, 18.6% and 16.6% of its portfolio respectively — with senior-housing repayment partly dependent on government reimbursements — and much of its collateral is watercraft or real estate in coastal geographies that bear disproportionate hurricane and natural-disaster risk. At the holding-company level it carries a $15 million revolving line of credit secured by a pledge of all of the Bank's stock, so an uncured default could mean losing its principal asset, and it depends on BSA/AML and OFAC compliance and on SBA Preferred Lender status whose loss could push customers to competitors.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Other disclosures
- loan-category concentration (income CRE 22.8%, marine 19.3%, senior housing 16.6%)high
CoastalSouth's loan book is concentrated in income-producing CRE (22.8%), marine/watercraft loans (~19.3%) and senior-housing loans (16.6%); senior-housing repayment depends partly on government reimbursements, concentrating credit risk in a few specialty categories.
“ion of income producing CRE, marine loans and Senior housing loans, respectively, which represented approximately 22.8%, 18.6% and 16.6% of the LHFI portfolio, respectively.”
SEC filing →As of 2026
Climate & physical
- coastal real estate and watercraft collateral exposed to hurricanes/natural disastersmedium
A large share of CoastalSouth's collateral is watercraft or real estate in coastal geographies, subjecting its loan portfolio to disproportionate risk from hurricanes and other natural disasters.
“Our loans that are collateralized by watercraft or by real estate located in coastal geographies are also subject to disproportionate risk caused by hurricanes and other natural disasters.”
SEC filing →As of 2026
Liquidity & debt
- $15M ServisFirst revolving LOC secured by pledge of all Bank stockmedium
The holding company's $15M revolving line of credit from ServisFirst Bank (maturing Dec 2027) is secured by a pledge of all of the Bank's outstanding common stock — its principal asset — so an uncured default could mean losing the Bank.
“The Company has a $15 million revolving line of credit from ServisFirst Bank. This revolving line of credit matures in December 2027, and is it is secured by the Company's pledge of all of the Bank's outstanding common stock.”
SEC filing →As of 2026
Regulatory & policy
- BSA/AML, OFAC sanctions and SBA Preferred Lender statusmedium
CoastalSouth faces BSA/AML and OFAC sanctions compliance (violations carry penalties up to twice the transaction or $1M) and depends on SBA Preferred Lender status, the loss of which could drive customers to competitors.
“If we lose our status as a Preferred Lender, we may lose some or all of our customers to lenders who are SBA Preferred Lenders, and as a result we could experience a material adverse effect on our financial results.”
SEC filing →As of 2026
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