L.O.T.W. #124 - Coastalsouth Bancshares - upsizes revolving loan to bolster short term liquidity
Correspondent bank revolving line of credit provided by ServisFirst Bank
👓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
Performance
maintain
“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%