CoastalSouth Banchshares, Inc. Completes Acquisition of Cornerstone Bancshares, Inc.

Rhea-AI Summary

CoastalSouth Bancshares announced the successful acquisition of Cornerstone Bancshares, enhancing its presence in the Atlanta market. With Cornerstone's deposits around $201.5 million as of June 30, 2021, this transaction elevates CoastalSouth to the 25th largest bank by deposit market share in the Atlanta MSA, totaling over $550 million. CoastalSouth emphasizes commitment to local communities and exceptional customer experience during the integration process. As of October 1, 2021, CoastalSouth had approximately $1.6 billion in total assets.

Positive

• Acquisition increases CoastalSouth's deposits to over $550 million in the Atlanta MSA.
• Positions CSB as the 25th largest bank by deposit market share in Atlanta.
• Enhances community presence and service capabilities.

Negative

• None.

ATLANTA, Oct. 1, 2021 /PRNewswire/ -- CoastalSouth Bancshares, Inc. ("CoastalSouth"), the parent company of Coastal States Bank ("CSB"), announced today the completion of its acquisition of Cornerstone Bancshares, Inc. ("Cornerstone"), the parent company of Cornerstone Bank.

Cornerstone Bank, headquartered in Atlanta, had deposits of approximately $201.5 million as of June 30, 2021. The acquisition increases CSB's presence in the attractive Atlanta MSA and complements CSB's prior acquisitions and organic growth in the Atlanta market.

"Cornerstone Bank and CSB are committed to serving our local communities. Both institutions are passionate about delivering outstanding customer service and building meaningful relationships throughout our communities. Our acquisition of Cornerstone Bank will position CSB as the 25^th largest bank by deposit market share in the Atlanta MSA, with over $550 million in deposits, and will position us to continue to grow our presence in metro Atlanta," said Steve Stone, Chief Executive Officer of CoastalSouth and CSB.

"Both the CSB and Cornerstone teams are working hard to ensure an exceptional customer experience leading up to and following our systems integration. We are excited to complete this merger and welcome our new CSB clients and team members," Stone added.

Piper Sandler & Co. served as exclusive financial adviser to CoastalSouth, and Troutman Pepper served as its legal counsel. 

The Burke Group served as Cornerstone's financial adviser, and Alston & Bird LLP served as its legal counsel.

About CoastalSouth Bancshares, Inc.

Established in 2003, CoastalSouth Bancshares, Inc. (OTCQX: COSO) is a bank holding company headquartered in Hilton Head Island, South Carolina. CoastalSouth, through its wholly owned subsidiary, Coastal States Bank  builds relationships by providing a full range of banking services designed for businesses, their owners, and individuals looking for a local banking partner. CSB has a community banking presence in the Lowcountry of South Carolina (Hilton Head Island and Bluffton), Savannah, and Atlanta, and also serves communities across the country through its Government Guaranteed Lending, Seniors Housing, and Mortgage Banker Finance lines of business. As of October 1, 2021, CSB had approximately $1.6 billion in total assets.

Coastal States Bank – Local. And Proud of It.®

For additional information regarding the Company and CSB please visit www.coastalstatesbank.com.

Media Contact:  Stephen R. Stone
President and Chief Executive Officer
843.341.9937, sstone@coastalstatesbank.com

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SOURCE Coastal States Bank

FAQ

What was the purpose of CoastalSouth's acquisition of Cornerstone?

The acquisition aimed to enhance CoastalSouth's presence in the Atlanta market and increase its deposit base.

How much in deposits did Cornerstone Bank hold before the acquisition?

Cornerstone Bank had approximately $201.5 million in deposits as of June 30, 2021.

What is the significance of CoastalSouth acquiring Cornerstone?

This acquisition positions CoastalSouth as the 25th largest bank by deposit market share in the Atlanta MSA.

When was the acquisition of Cornerstone Bancshares completed?

The acquisition was completed on October 1, 2021.

What are CoastalSouth's total assets post-acquisition?

As of October 1, 2021, CoastalSouth had approximately $1.6 billion in total assets.