MYRTLE BEACH, SC AND CHARLESTON, SC / ACCESS Newswire / May 29, 2026 / Coastal Carolina Bancshares, Inc. ("Coastal") (OTCQX:CCNB), the parent company of Coastal Carolina National Bank, and Beacon Holding Company, Inc. ("Beacon") (OTCQB:BCON), the parent company of Beacon Community Bank, today 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 fifteen members, of which eight will come from Coastal and seven from Beacon. Mr. Douglas P. Wendel will serve as Chairman Emeritus of the combined holding company and bank.

Tommy 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 Laurence S. 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 Brooks A. 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.

Additional information regarding the proposed transaction is available in the investor presentation posted on Coastal's website at www.myccnb.com.

Advisors:

Raymond James & Associates, Inc. is serving as exclusive financial advisor and Wyrick Robbins Yates & Ponton LLP is serving as legal counsel to Coastal in the transaction. Keefe, Bruyette & Woods, A Stifel Company, is serving as exclusive financial advisor and Nelson Mullins Riley & Scarborough LLP is serving as legal counsel to Beacon in the transaction.

About Coastal Carolina Bancshares, Inc.

Coastal Carolina Bancshares, Inc. is the bank holding company of Coastal Carolina National Bank, a Myrtle Beach-based community bank serving Horry, Georgetown, Aiken, Orangeburg, Richland, Greenville, Spartanburg, and Brunswick (NC) counties. Coastal Carolina National Bank is a locally operated financial institution focused on providing personalized service. It offers a full range of banking services designed to meet the specific needs of individuals and small and medium-sized businesses. Headquartered in Myrtle Beach, SC, the Bank also has branches in Garden City, North Myrtle Beach, Conway, Aiken, Orangeburg, Columbia, Greenville, and Spartanburg, South Carolina, and Ocean Isle Beach, North Carolina. Through the substantial experience of local management and Board of Directors, Coastal Carolina Bancshares, Inc. seeks to enhance value for its shareholders, build lasting customer relationships, benefit its communities and give its employees a meaningful career opportunity. To learn more about Coastal and its subsidiary bank, please visit the website at www.myccnb.com.

About Beacon Holding Company, Inc.

Beacon Holding Company, Inc. stock trades on the OTCQB market under the symbol "BCON" and is the holding company for Beacon Community Bank, a local community bank based in Mt. Pleasant, SC and serving the greater Charleston, SC area. Beacon Community Bank is a full-service bank offering a range of deposit and loan products for consumer and commercial clients including SBA loans, residential mortgages, and treasury services. To learn more about Beacon and its subsidiary bank, please visit the website at www.beacon.bank.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements regarding Coastal Carolina Bancshares, Inc. ("Coastal Carolina") and its wholly owned subsidiary, Coastal Carolina National Bank, Beacon Holding Company, Inc. ("Beacon"), and its wholly owned subsidiary, Beacon Community Bank, and the proposed merger of Coastal Carolina and Beacon. In general, forward-looking statements usually use words such as "may," "believe," "expect," "anticipate," "intend," "would," "should," "plan," "estimate," "predict," "continue," "opportunity," "future," and "potential" or the negative of these terms or other comparable terminology. These statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors: the expected cost savings, synergies, and other financial benefits from the merger might not be realized within the expected time frames or at all; regulatory approvals of the merger may not be obtained or adverse regulatory conditions may be imposed in connection with regulatory approvals of the merger; the shareholders of Coastal Carolina and Beacon may fail to approve the merger; and other conditions relating to the closing of the merger may not be satisfied. Annualized, pro forma, projected, and estimated numbers in this press release are used for illustrative purposes only, are not forecasts, and may not reflect actual results. Any forward-looking statements speak only as of the date on which they are made. Factors or events that could cause actual results to differ may emerge from time to time, and it is not possible for Coastal Carolina or Beacon to predict all of them.

Coastal Carolina and Beacon undertake no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

Additional Information about the Merger and Where to Find It

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation or any vote or approval with respect to the proposed merger. Coastal Carolina and Beacon will prepare a joint proxy statement/offering circular for the special meetings of shareholders of Coastal Carolina and Beacon. The parties intend that Coastal Carolina will issue shares of its common stock in the merger in reliance upon an exemption from registration provided by Section 3(a)(10) of the Securities Act of 1933, as amended, following a fairness hearing to be convened by the South Carolina Office of the Attorney General - Securities Division. Details about the fairness hearing will be published and made available in accordance with the South Carolina Uniform Securities Act of 2005 and Chapter 13, Article 2 of the South Carolina Code of State Regulations.

SHAREHOLDERS ARE ADVISED TO READ THE JOINT PROXY STATEMENT/OFFERING CIRCULAR WHEN IT BECOMES AVAILABLE, AS WELL AS THE FAIRNESS HEARING NOTICE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SOUTH CAROLINA OFFICE OF THE ATTORNEY GENERAL - SECURITIES DIVISION, IN ADDITION TO ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

The joint proxy statement/offering circular, fairness hearing notice, and other relevant material may be obtained free of charge when they become available by directing a written request to Coastal Carolina Bancshares, Inc., 1012 38^th Avenue North, Myrtle Beach, South Carolina 29577, Attn: Terry Haight; or Beacon Holding Company, Inc., 2347 N. Highway 17, Mount Pleasant, South Carolina 29466, Attn: Rachel Juszkiewicz; Coastal Carolina's telephone number is (843) 839-2265 and Beacon's telephone number is (843) 936-5181.

SOURCE: Coastal Carolina Bancshares, Inc.