Coastal Carolina Bancshares reported third-quarter 2026 results, including $3,208,598 in net income, loan and deposit growth, credit-quality data and updates on its completed Beacon merger.
Coastal Carolina Bancshares, Inc. (OTCQX:CCNB), the parent company of Coastal Carolina National Bank, reported unaudited results for the three months and nine months ended September 30, 2026. The announcement also covered the company’s October 1, 2026 completion of its merger of equals with Beacon Holding Company, Inc. (OTCQB:BCON).
Net income for the three months ended September 30, 2026 was $3,208,598, or $0.42 per diluted share. That compared with $2,959,053, or $0.47 per diluted share, in the same period of the prior year and $2,935,412, or $0.39 per diluted share, in the quarter ended June 30, 2026.
After excluding the after-tax effect of merger expenses, third-quarter net income was $3,427,398, or $0.45 per diluted share. The company reported Return on Average Equity of 11.61%, or 12.41% excluding the after-tax effect of merger expenses.
For the nine months ended September 30, 2026, net income was $9,412,711, or $1.24 per diluted share, compared with $7,852,054, or $1.24 per diluted share, for the same period in 2025. Excluding the after-tax effect of merger expenses, nine-month net income was $10,045,421, or $1.32 per diluted share.
Total assets stood at $1.355 billion at September 30, 2026, an increase of $76 million or 6% from December 31, 2025. Total deposits were $1.214 billion, compared with $1.147 billion at December 31, 2025, representing year-to-date growth of $67 million or 6%.
Net loans reached $1.004 billion at quarter end, up $17 million or 2% during the third quarter and $60 million or 6% year-to-date. The company said growth during the first nine months was led by owner-occupied commercial real estate, other construction and land development, and one-to-four family residential loans, which increased $20 million, $15 million, and $12 million, respectively. This was partly offset by a $15 million decline in non-owner-occupied commercial real estate loans.
Bank-level net interest margin was 3.50%, compared with 3.59% in the prior quarter and 3.46% in the third quarter of 2025. The company attributed the quarterly decline primarily to higher deposit costs and a higher average balance of lower-yielding interest-bearing deposits held at other institutions. The cost of interest-bearing deposits rose from 2.59% to 2.71%, while the yield on earning assets decreased to 5.55% from 5.59%.
Net charge-offs were approximately $1.46 million during the quarter and related to one loan relationship. Coastal Carolina National Bank reported $1.2 million in non-accrual loans at quarter end, equal to 0.13% of total loans. Past-due loans in the 30-89-day category totalled $0.2 million, while there was no outstanding OREO property.
The allowance for credit losses on loans was $10.3 million, or 1.02% of total loans outstanding. The bank recorded a provision for credit losses of $680 thousand during the quarter, bringing the year-to-date provision to $1.5 million. Its reserve on unfunded commitments was $472 thousand, producing a total CECL reserve of $10.7 million.
At September 30, 2026, the bank remained well-capitalized under applicable regulatory capital requirements. Its leverage, tier 1 risk-based and total risk-based capital ratios were 9.28%, 13.12%, and 14.24%, respectively. Consolidated shareholders’ equity was $111.7 million.
Coastal Carolina Bancshares completed its merger with Beacon Holding Company on October 1, 2026. Beacon merged with and into Coastal, which continued as the surviving corporation.
Beacon branches are operating as “Beacon Community Bank, a division of Coastal Carolina National Bank.” The core systems and operations of Beacon are scheduled to be converted to those of Coastal Carolina National Bank in early 2027. At that time, the bank is scheduled to be rebranded as Beacon Bank, N.A. Coastal Carolina Bancshares said it will continue trading under the ticker symbol “CCNB.”
Because the merger was completed after September 30, 2026, the reported financial results and financial position for periods ended September 30, 2026 do not include Beacon’s operations or financial position.
On a pro forma basis, the combined organisation has approximately $2.3 billion in total assets, $2.0 billion in total deposits and $1.8 billion in total loans. Its footprint includes sixteen branches and one loan production office serving markets from Charleston, South Carolina, to Wilmington, North Carolina, and inland to the Upstate of South Carolina.
Net interest income was $11.2 million for the quarter, compared with $11.1 million in the prior quarter and $9.8 million in the third quarter of 2025. Total noninterest income was $739 thousand, up from $604 thousand in the prior quarter and $657 thousand in the comparable period of 2025.
Noninterest expense was $7.5 million, compared with $7.5 million in the prior quarter and $6.3 million in the third quarter of 2025. The company said the year-over-year increase primarily reflected merger-related expenses and investments in personnel, technology and infrastructure. The quarter included approximately $0.2 million of merger-related expenses.
Third-quarter net income was $3,208,598, or $0.42 per diluted share.
Nine-month net income reached $9,412,711, or $1.24 per diluted share.
Total assets, deposits and loans were $1.355 billion, $1.214 billion and $1.004 billion, respectively, at September 30, 2026.
Net charge-offs of approximately $1.46 million were linked to one loan relationship, while the bank reported no outstanding OREO property.
The Beacon Holding Company merger was completed on October 1, 2026, but Beacon’s operations were not included in the September 30, 2026 financial results.
Coastal Carolina Bancshares, Inc. reported unaudited financial results for the third quarter of 2026. The results covered the three months and nine months ended September 30, 2026.
Coastal Carolina Bancshares, Inc. reported net income of $3,208,598, or $0.42 per diluted share, for the three months ended September 30, 2026. This compared with $2,959,053, or $0.47 per diluted share, for the same period in the prior year and $2,935,412, or $0.39 per diluted share, for the prior quarter ended June 30, 2026.
Coastal Carolina Bancshares, Inc. reported net income of $9,412,711, or $1.24 per diluted share, for the nine months ended September 30, 2026, compared with $7,852,054, or $1.24 per diluted share, for the same period ended September 30, 2025. Excluding the after-tax effect of merger expenses, nine-month net income was $10,045,421, or $1.32 per diluted share.
Coastal Carolina Bancshares, Inc. reported quarterly net income of $3.2 million, or $3.4 million excluding the after-tax effect of merger expenses, with quarterly diluted earnings per share of $0.42, or $0.45 excluding those expenses. Return on Average Equity was 11.61%, or 12.41% excluding merger expenses, while bank-level net interest margin was 3.50%.
Coastal Carolina Bancshares, Inc. reported total assets of $1.355 billion at September 30, 2026, up $76 million or 6% from December 31, 2025. Total deposits increased $67 million or 6% year-to-date to $1.214 billion, while loans increased $60 million or 6% year-to-date to $1.004 billion.
Coastal Carolina Bancshares, Inc. said year-to-date loan growth was led by owner-occupied commercial real estate, other construction and land development, and one-to-four family residential loans, which increased $20 million, $15 million, and $12 million, respectively. Growth was partially offset by a $15 million decline in non-owner-occupied commercial real estate loans.
Coastal Carolina Bancshares, Inc. said bank-level net interest margin declined to 3.50% from 3.59% in the prior quarter, primarily because of higher deposit costs and a higher average balance of lower-yielding interest-bearing deposits held at other institutions. The cost of interest-bearing deposits increased from 2.59% to 2.71%, while the yield on earning assets decreased to 5.55% from 5.59%.
Coastal Carolina Bancshares, Inc. reported approximately $1.46 million of net charge-offs during the quarter, related to one loan relationship, and $1.2 million in non-accrual loans at quarter end. Past-due loans of 30-89 days totalled $0.2 million, the allowance for credit losses on loans was $10.3 million or 1.02% of total loans outstanding, and there was no outstanding OREO property.
Coastal Carolina Bancshares, Inc. completed its merger of equals with Beacon Holding Company, Inc. on October 1, 2026. At the effective time, Beacon merged with and into Coastal, with Coastal continuing as the surviving corporation; Beacon Holding Company, Inc. was identified as OTCQB: BCON, while Coastal Carolina Bancshares, Inc. is identified as OTCQX:CCNB.
Following the merger, Beacon branch locations will operate as “Beacon Community Bank, a division of Coastal Carolina National Bank.” Coastal Carolina Bancshares, Inc. said the core systems and operations of Beacon are scheduled to be converted into those of Coastal Carolina National Bank in early 2027, when the bank is scheduled to be rebranded as Beacon Bank, N.A.
Coastal Carolina Bancshares, Inc. said the merger expands the combined company's footprint to sixteen branches and one loan production office serving markets across the coastal Carolinas, from Charleston, South Carolina, to Wilmington, North Carolina, and inland to the Upstate of South Carolina. On a pro forma basis, the combined organisation has approximately $2.3 billion in total assets, $2.0 billion in total deposits, and $1.8 billion in total loans.
Coastal Carolina Bancshares, Inc. said its reported financial results and financial position as of and for the periods ended September 30, 2026 do not include Beacon's operations or financial position. The merger was completed after September 30, 2026.
Coastal Carolina Bancshares, Inc. is the bank holding company of Coastal Carolina National Bank, a Myrtle Beach-based community bank. Coastal Carolina National Bank provides banking services for individuals and small and medium-sized businesses through branches and a loan production office in South Carolina and North Carolina.
Coastal Carolina Bancshares, Inc. is identified in the announcement as trading on OTCQX under the ticker symbol CCNB. The company said it will continue trading under the ticker symbol “CCNB” following the merger.