Loan of the Week Snapshot #124

👓At a Glance

Borrower: Coastalsouth Bancshares, Inc.

Lender: ServisFirst Bank

Deal Size: $24.0 million

Structure: Senior secured revolving line of credit

Rate: Variable - Prime Rate + 0.00% ; floor of 5.25%

Term: ~24 months from date of ARLSA

Use of Proceeds: Support general corporate purposes

Source: SEC S-1

📷Borrower Snapshot

Sector: Financials

Subsector: Banks

Ownership: Public

Commercial Stage: Commercial Revenue; Profitable

Business Overview: CoastalSouth Bancshares, Inc. is the bank holding company for Coastal States Bank (CSB), a full-service commercial bank headquartered on Hilton Head Island, South Carolina. Founded in 2003, the bank serves fast-growing Southeastern markets with a blend of community banking and specialized lending. Its geographic footprint spans the South Carolina Lowcountry, Savannah, and Metro Atlanta, with a focus on relationship-driven service for small businesses and middle-market clients. In addition to traditional banking, CSB operates distinct lending verticals—including SBA/USDA government-guaranteed loans, senior housing finance, marine lending, and mortgage banker lines—that add scale and diversification to its balance sheet.

⚙️Structure & Terms

Source: SEC S-1

Commitment: $24.0 million

Maturity: December 10, 2025

Rate: Variable - Prime + 0.00% ; Floor of 5.25%

Facility Fee: 10 bps of increased commitment amount, or $6k

Non-Use Fee: 10 bps ; waived if loan balance exceeds $9 million during first 12 consecutive calendar months

Covenants:

• Minimum balances
  • Borrower to maintain min. cash balance of $6.0 million in one or more accounts with lender
• Interest reserve
  • Borrower to maintain an interest reserve of $1.5 million at all times
• Performancemaintain
  • “Well-capitalized” status according to federal bank regulatory agency
  • Tier 1 leverage ratio greater than 8%
  • Non-performing asset ratio less than 25%
  • Return on assets ratio greater than 0.40%

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