CoastalSouth Bancshares, Inc.

Analysis for Ticker: COSO

Coastalsouth Bancshares Inc is a banking company that makes money by lending to people for homes, businesses, senior living centers, and luxury boats in the American South. The math behind this business is a disaster because the people running it are losing real cash while their bad loans are growing. They are currently holding 18,3$ million in loans where people have simply stopped paying them back, and their commercial real estate bets are 230% of their total capital. The most dangerous part is a 15,0$ million debt that is tied directly to the heart of the bank; if they cannot pay it back, the lender takes the entire bank, leaving the public with nothing. They are paying out cash dividends to act like everything is fine, but they are actually missing their profit goals because the weight of these failing loans is starting to crush the balance sheet.