Coastal Carolina Bancshares Inc., the parent company of Coastal Carolina National Bank, and Beacon Holding Company Inc., the parent company of Beacon Community Bank, jointly announced they have entered into a definitive agreement pursuant to which the companies will combine in an all-stock transaction to create the third-largest publicly traded community bank holding company headquartered in South Carolina.

Transaction Highlights:

• Merger of Equals transaction creating a premier South Carolina bank holding company headquartered in Charleston with approximately $2.2 billion in consolidated assets and a market capitalization of approximately $200 million

• The combined company will have sixteen branches and a loan production office serving attractive markets throughout the coastal Carolinas from Wilmington, NC to Charleston, SC and inland to the upstate, some of the fastest growing and most demographically attractive markets in the country

• Closely aligned corporate cultures and operating philosophies with a continued focus on and presence in our combined communities

• Strong pro-forma profitability and enhanced trading liquidity create significant shareholder value

Transaction Details:

• The combined $2.2 billion holding company will remain Coastal Carolina Bancshares, Inc. and continue trading under the ticker symbol CCNB. The combined bank after the system conversion expected in early 2027 will be rebranded as Beacon Bank, N.A. and will be headquartered in Myrtle Beach.

• Tommy B. Baker will serve as Chairman and Benjy A. Hardee will serve as Vice Chairman of the holding company board. Dennis L. Wade will serve as Chairman and James P. Smith will serve as Vice Chairman of the bank board.

• Laurence S. Bolchoz will continue to serve as President and Chief Executive Officer of both the combined holding company and bank.

• Russell A. Vedder will continue to serve as Chief Financial Officer and Executive Vice President of both the combined holding company and bank.

• Brooks A. Melton, current Chief Executive Officer of Beacon, and William C. Heslop, current Chief Financial Officer of Beacon, will serve on the executive team of the combined company as Executive Vice President and Chief Risk Officer and Executive Vice President and Chief Accounting Officer, respectively.

• The combined boards of the holding company and the bank will consist of 15 members, of which eight will come from Coastal and seven from Beacon. Douglas P. Wendel will serve as Chairman Emeritus of the combined holding company and bank.

Baker expressed the ethos that will move the company forward. He said, "We're not just combining balance sheets; we're building something stronger with people who share our mindset and our work ethic. I'm proud of what we've built, and I'm even more energized to work alongside this team as we build momentum and take this to the next level."

"Our Board of Directors is extremely excited to join with Beacon to create a premier South Carolina community banking franchise", said Bolchoz, Coastal's Chief Executive Officer. "We believe the strong cultural and operational alignment of our organizations will drive profitability and enhance shareholder value, and benefit our customers, employees and the communities we serve".

Building on that shared foundation, leadership from both organizations emphasized the forward-looking opportunity. "By bringing together two strong, like-minded organizations, we are creating a company that is not only larger, but better - better equipped to invest in our people, elevate the client experience, and compete at a high level," stated Melton, Beacon's Chief Executive Officer. "I'm excited to team up with our new partners as we look ahead, confident that the best is yet to come."

Transaction Structure:

The all-stock transaction was unanimously approved by both Boards of Directors and under the terms of the definitive merger agreement each outstanding share of Beacon common stock will be exchanged for the right to receive 0.736 shares of Coastal common stock in an all-stock transaction. Closing is expected to occur in the third or fourth quarter of 2026.