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Record EPS of $1.12 and Diluted EPS of $0.96 in Latest Quarterly Results
HOUSTON, July 23, 2025 /PRNewswire/ -- Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank (the "Bank"), today reported its 2025 second quarter financial results.
Year to Date Financial Highlights
(1) | Non-GAAP financial measure. Please refer to the table titled "GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures" at the end of this news release for a reconciliation of these non-GAAP financial measures. | |||||||||||
Bart Caraway, Founder, Chairman, President & CEO of Third Coast, said, "We've achieved another record–breaking quarter, setting a new high for earnings per share in the second quarter. This marks a 15.4% increase in Net Interest Income from the sequential first quarter and a 27.1% increase from the second quarter of 2024.
"Since Third Coast's IPO in November 2021, we have consistently delivered exceptional performance and sustained value creation. Total assets have grown by 98% from $2.49 billion in December 2021 to $4.94 billion today. In parallel, we've improved our efficiency ratio by an impressive 25%, moving from 74.43% in 2021 to 55.45% this quarter—a clear indicator of operational discipline. Additionally, our return on assets has increased 150% in this short period of time, climbing from 0.55% in 2021 to 1.38% in the current quarter – another milestone that underscores the steep and steady trajectory of our profitability.
"With a team that continues to execute at a high level and a track record of outperforming our peers, we believe Third Coast is well positioned to remain in the top tier of bank performers. Backed by a strong Texas-based franchise and a scalable platform—demonstrated by our successful securitizations this quarter—Third Coast intends to thrive in a consolidating industry while continuing to attract long-term investors."
Operating Results
Net Income and Earnings Per Share
Net income totaled $16.7 million for the second quarter of 2025, compared to $13.6 million for the first quarter of 2025 and $10.8 million for the second quarter of 2024. Net income available to common shareholders totaled $15.6 million for the second quarter of 2025, compared to $12.4 million for the first quarter of 2025 and $9.6 million for the second quarter of 2024. The quarter-over-quarter increase was primarily due to an increase in net interest income, resulting from an increase in loans, a portion of which were securitized, and the purchase of associated securities resulted in an increase in investment yields during the second quarter of 2025. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended June 30, 2025 and March 31, 2025.
Basic and diluted earnings per share were $1.12 per share and $0.96 per share, respectively, in the second quarter of 2025, compared to $0.90 per share and $0.78 per share, respectively, in the first quarter of 2025 and $0.70 per share and $0.63 per share, respectively, in the second quarter of 2024.
Net Interest Margin and Net Interest Income
The net interest margin for the second quarter of 2025 was 4.22%, compared to 3.80% for the first quarter of 2025 and 3.62% for the second quarter of 2024. The yield on loans for the second quarter of 2025 was 7.95%, compared to 7.45% for the first quarter of 2025 and 6.07% for the second quarter of 2024. The cost of interest-bearing deposits for the second quarter of 2025 was 4.00%, compared to 4.02% for the first quarter of 2025 and 4.76% for the second quarter of 2024.
Net interest income totaled $49.4 million for the second quarter of 2025, an increase of 15.4% from $42.8 million for the first quarter of 2025 and an increase of 27.1% from $38.9 million for the second quarter of 2024. Interest income totaled $88.7 million for the second quarter of 2025, an increase of 9.8% from $80.8 million for the first quarter of 2025 and an increase of 9.2% from $81.2 million for the second quarter of 2024. The quarter-over-quarter increase in interest income resulted from an increase in loans, a portion of which were securitized, and the purchase of associated securities resulted in an increase in investment yields during the second quarter of 2025. Interest expense was $39.3 million for the second quarter of 2025, an increase of $1.3 million, or 3.5%, from $38.0 million for the first quarter of 2025 and a decrease of $3.1 million, or 7.3%, from $42.4 million for the second quarter of 2024.
Noninterest Income and Noninterest Expense
Noninterest income totaled $2.7 million for the second quarter of 2025, compared to $3.1 million for the first quarter of 2025 and $2.9 million for the second quarter of 2024. The decrease in other noninterest income was primarily due to changes in the first quarter valuation estimates of other real estate owned during the second quarter of 2025.
Noninterest expense increased to $28.8 million for the second quarter of 2025, compared to $28.1 million for the first quarter of 2025 and $25.6 million for the second quarter of 2024. The quarter-over-quarter increase in noninterest expense was primarily due to increased legal and professional expenses related to the securitization of loans and increased other expenses due to higher letter of credit costs during the second quarter of 2025. At June 30, 2025, the number of employees was 388, compared to 383 at March 31, 2025.
The efficiency ratio was 55.45% for the second quarter of 2025, compared to 61.23% for the first quarter of 2025 and 61.39% for the second quarter of 2024.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended June 30, 2025, gross loans increased to $4.08 billion, an increase of $91.7 million, or 2.3%, from $3.99 billion as of March 31, 2025, and an increase of $321.6 million, or 8.6%, from $3.76 billion as of June 30, 2024. Commercial and industrial loans accounted for the majority of the loan growth for the second quarter of 2025, offset by slight decreases in real estate loans from the first quarter of 2025.
Asset Quality
Nonperforming loans at June 30, 2025 were $20.1 million, compared to $18.6 million at March 31, 2025 and $24.4 million at June 30, 2024. As of June 30, 2025, the nonperforming loans to total loans ratio was 0.49%, compared to 0.47% as of March 31, 2025 and 0.65% as of June 30, 2024. The increase in nonperforming loans during the second quarter of 2025 was primarily due to several factors. Loans greater than 90 days past due and still accruing increased by $5.2 million, primarily due to one commercial loan with a net book value of $4.2 million. This increase was partially offset by a decline in nonaccrual loans of $3.7 million, which was primarily attributed to the payoff of a $2.0 million loan and approximately $800,000 in loans placed back on accrual.
The provision for credit loss recorded for the second quarter of 2025 was $2.1 million, and the allowance for credit losses of $40.0 million represented 0.98% of the $4.08 billion in gross loans outstanding as of June 30, 2025. The provision for credit loss recorded for the first quarter of 2025 was $450,000, and the allowance for credit losses of $40.5 million represented 1.01% of the $3.99 billion in gross loans outstanding as of March 31, 2025. The increase in the provision for credit loss recorded in the second quarter of 2025 compared to the first quarter of 2025 was primarily due to the charge-off of a factoring receivable facility.
The Company recorded net charge-offs of $2.4 million and $1.8 million for the three months ended June 30, 2025 and June 30, 2024, respectively.
Deposits and Composition
Deposits totaled $4.28 billion as of June 30, 2025, an increase of 0.8% from $4.25 billion as of March 31, 2025, and an increase of 11.0% from $3.86 billion as of June 30, 2024. Noninterest-bearing demand deposits decreased from $448.5 million as of March 31, 2025, to $441.0 million as of June 30, 2025 and represented 10.3% of total deposits as of June 30, 2025, compared to 10.6% of total deposits as of March 31, 2025. As of June 30, 2025, time deposits increased $130.7 million, or 20.1%, partially offset by a decrease in interest-bearing demand deposits of $89.1 million, or 2.9%, and a decrease in savings accounts of $1.7 million, or 6.7%, respectively, from March 31, 2025.
The average cost of deposits was 3.59% for the second quarter of 2025, representing a 1-basis point decrease from the first quarter of 2025 and a 63-basis point decrease from the second quarter of 2024. The decreases were due to the reduction in rates paid on interest-bearing demand deposits.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss its 2025 second quarter results, which will be broadcast live over the Internet, on Thursday, July 24, 2025, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate in the call, dial 201-389-0869 and ask for the Third Coast Bancshares, Inc. call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through July 31, 2025, and may be accessed by dialing 201-612-7415 and using passcode 13752287#. Also, an archive of the webcast will be available shortly after the call at https://ir.thirdcoast.bank/events-and-presentations/events/ for 90 days.
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a commercially focused, Texas-based bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 19 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; economic conditions affecting the real estate market; prepayment risks associated with commercial real estate loans; liquidity risks in the securitization market; operational risks related to the administration of securitized assets; and changes in key management personnel. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission (the "SEC"), and our other filings with the SEC.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, including Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets and Return on Average Tangible Common Equity, which are supplemental measures that are not required by, or are not presented in accordance with GAAP. Please refer to the table titled "GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures" at the end of this press release for a reconciliation of these non-GAAP financial measures.
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) | ||||||||||||||||||||
2025 | 2024 | |||||||||||||||||||
(Dollars in thousands) | June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash and due from banks | $ | 113,141 | $ | 218,990 | $ | 371,157 | $ | 258,191 | $ | 241,809 | ||||||||||
Federal funds sold | 5,815 | 110,379 | 50,045 | 12,265 | 12,088 | |||||||||||||||
Total cash and cash equivalents | 118,956 | 329,369 | 421,202 | 270,456 | 253,897 | |||||||||||||||
Interest bearing time deposits in other banks | 262 | 359 | 356 | 353 | 350 | |||||||||||||||
Investment securities available-for-sale | 355,753 | 397,442 | 384,025 | 292,104 | 286,167 | |||||||||||||||
Investment securities held to maturity | 206,065 | - | - | - | - | |||||||||||||||
Loans held for investment | 4,079,736 | 3,988,039 | 3,966,425 | 3,889,831 | 3,758,159 | |||||||||||||||
Less: allowance for credit losses | (40,035) | (40,456) | (40,304) | (39,683) | (38,211) | |||||||||||||||
Loans held for investment, net | 4,039,701 | 3,947,583 | 3,926,121 | 3,850,148 | 3,719,948 | |||||||||||||||
Accrued interest receivable | 27,736 | 26,752 | 25,820 | 26,111 | 27,518 | |||||||||||||||
Premises and equipment, net | 24,908 | 25,669 | 26,230 | 26,696 | 27,626 | |||||||||||||||
Bank-owned life insurance | 74,761 | 74,018 | 68,341 | 67,679 | 67,030 | |||||||||||||||
Non-marketable securities, at cost | 18,761 | 15,994 | 15,980 | 24,328 | 16,147 | |||||||||||||||
Deferred tax asset, net | 8,646 | 9,176 | 11,445 | 8,654 | 8,972 | |||||||||||||||
Derivative assets | 3,059 | 3,052 | 6,479 | 5,786 | 7,799 | |||||||||||||||
Right-of-use assets - operating leases | 18,769 | 19,370 | 19,863 | 20,397 | 20,944 | |||||||||||||||
Goodwill and other intangible assets | 18,761 | 18,801 | 18,841 | 18,882 | 18,922 | |||||||||||||||
Other assets | 27,633 | 29,404 | 17,743 | 16,176 | 18,799 | |||||||||||||||
Total assets | $ | 4,943,771 | $ | 4,896,989 | $ | 4,942,446 | $ | 4,627,770 | $ | 4,474,119 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest bearing | $ | 440,964 | $ | 448,542 | $ | 602,082 | $ | 489,822 | $ | 464,498 | ||||||||||
Interest bearing | 3,839,905 | 3,800,001 | 3,708,416 | 3,504,616 | 3,391,093 | |||||||||||||||
Total deposits | 4,280,869 | 4,248,543 | 4,310,498 | 3,994,438 | 3,855,591 | |||||||||||||||
Accrued interest payable | 6,691 | 7,044 | 6,281 | 7,283 | 5,668 | |||||||||||||||
Derivative liabilities | 3,779 | 3,527 | 8,660 | 6,874 | 7,626 | |||||||||||||||
Lease liability - operating leases | 19,835 | 20,425 | 20,900 | 21,412 | 21,919 | |||||||||||||||
Other liabilities | 24,745 | 25,979 | 23,754 | 34,632 | 30,786 | |||||||||||||||
Line of credit - Senior Debt | 30,875 | 30,875 | 30,875 | 31,875 | 36,875 | |||||||||||||||
Note payable - Subordinated Debentures, net | 80,862 | 80,810 | 80,759 | 80,708 | 80,656 | |||||||||||||||
Total liabilities | 4,447,656 | 4,417,203 | 4,481,727 | 4,177,222 | 4,039,121 | |||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Series A Convertible Non-Cumulative Preferred Stock | 69 | 69 | 69 | 69 | 69 | |||||||||||||||
Series B Convertible Perpetual Preferred Stock | - | - | - | - | - | |||||||||||||||
Common stock | 13,930 | 13,904 | 13,848 | 13,746 | 13,744 | |||||||||||||||
Common stock - non-voting | - | - | - | - | - | |||||||||||||||
Additional paid-in capital | 322,972 | 322,456 | 321,696 | 320,871 | 320,496 | |||||||||||||||
Retained earnings | 149,677 | 134,115 | 121,697 | 109,160 | 97,583 | |||||||||||||||
Accumulated other comprehensive income | 10,566 | 10,341 | 4,508 | 7,801 | 4,205 | |||||||||||||||
Treasury stock, at cost | (1,099) | (1,099) | (1,099) | (1,099) | (1,099) | |||||||||||||||
Total shareholders' equity | 496,115 | 479,786 | 460,719 | 450,548 | 434,998 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 4,943,771 | $ | 4,896,989 | $ | 4,942,446 | $ | 4,627,770 | $ | 4,474,119 | ||||||||||
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | June 30 | March 31 | December | September | June 30 | June 30 | June 30 | ||||||||||||||||||||||
INTEREST INCOME: | |||||||||||||||||||||||||||||
Loans, including fees | $ | 79,706 | $ | 73,087 | $ | 76,017 | $ | 75,468 | $ | 73,103 | $ | 152,793 | $ | 143,774 | |||||||||||||||
Investment securities available-for-sale | 5,505 | 5,693 | 4,939 | 4,532 | 4,491 | 11,198 | 7,584 | ||||||||||||||||||||||
Investment securities held-to-maturity | 1,607 | - | - | - | - | 1,607 | - | ||||||||||||||||||||||
Federal funds sold and other | 1,844 | 1,986 | 4,580 | 2,719 | 3,631 | 3,830 | 8,743 | ||||||||||||||||||||||
Total interest income | 88,662 | 80,766 | 85,536 | 82,719 | 81,225 | 169,428 | 160,101 | ||||||||||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||||||||||||
Deposit accounts | 37,535 | 36,226 | 40,233 | 40,407 | 40,410 | 73,761 | 79,108 | ||||||||||||||||||||||
FHLB advances and other borrowings | 1,753 | 1,743 | 1,865 | 1,929 | 1,957 | 3,496 | 4,056 | ||||||||||||||||||||||
Total interest expense | 39,288 | 37,969 | 42,098 | 42,336 | 42,367 | 77,257 | 83,164 | ||||||||||||||||||||||
Net interest income | 49,374 | 42,797 | 43,438 | 40,383 | 38,858 | 92,171 | 76,937 | ||||||||||||||||||||||
Provision for credit losses | 2,130 | 450 | 1,156 | 1,085 | 1,900 | 2,580 | 3,460 | ||||||||||||||||||||||
Net interest income after credit loss expense | 47,244 | 42,347 | 42,282 | 39,298 | 36,958 | 89,591 | 73,477 | ||||||||||||||||||||||
NONINTEREST INCOME: | |||||||||||||||||||||||||||||
Service charges and fees | 2,125 | 2,277 | 1,772 | 2,143 | 1,515 | 4,402 | 3,020 | ||||||||||||||||||||||
Earnings on bank-owned life insurance | 743 | 677 | 662 | 649 | 587 | 1,420 | 1,169 | ||||||||||||||||||||||
(Loss) gain on sale of investment securities available-for-sale | (110) | (228) | 196 | (480) | 123 | (338) | 280 | ||||||||||||||||||||||
Gain on sale of SBA loans | 44 | 30 | - | - | - | 74 | 30 | ||||||||||||||||||||||
Other | (152) | 351 | 243 | 205 | 663 | 199 | 732 | ||||||||||||||||||||||
Total noninterest income | 2,650 | 3,107 | 2,873 | 2,517 | 2,888 | 5,757 | 5,231 | ||||||||||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||||||||||||
Salaries and employee benefits | 18,179 | 18,341 | 17,018 | 15,679 | 15,917 | 36,520 | 32,419 | ||||||||||||||||||||||
Occupancy and equipment expense | 2,783 | 2,834 | 2,856 | 2,817 | 2,763 | 5,617 | 5,420 | ||||||||||||||||||||||
Legal and professional | 1,927 | 1,431 | 1,587 | 1,037 | 1,621 | 3,358 | 3,006 | ||||||||||||||||||||||
Data processing and network expense | 1,162 | 1,120 | 1,182 | 1,608 | 1,046 | 2,282 | 2,464 | ||||||||||||||||||||||
Regulatory assessments | 1,203 | 1,306 | 1,196 | 1,249 | 1,005 | 2,509 | 1,985 | ||||||||||||||||||||||
Advertising and marketing | 503 | 409 | 526 | 420 | 406 | 912 | 761 | ||||||||||||||||||||||
Software purchases and maintenance | 1,149 | 1,259 | 1,202 | 1,266 | 1,211 | 2,408 | 2,416 | ||||||||||||||||||||||
Loan operations and other real estate owned expense | 439 | 269 | 189 | 227 | 262 | 708 | 488 | ||||||||||||||||||||||
Telephone and communications | 115 | 175 | 144 | 166 | 141 | 290 | 275 | ||||||||||||||||||||||
Other | 1,386 | 964 | 1,330 | 1,085 | 1,257 | 2,350 | 2,309 | ||||||||||||||||||||||
Total noninterest expense | 28,846 | 28,108 | 27,230 | 25,554 | 25,629 | 56,954 | 51,543 | ||||||||||||||||||||||
NET INCOME BEFORE INCOME TAX | 21,048 | 17,346 | 17,925 | 16,261 | 14,217 | 38,394 | 27,165 | ||||||||||||||||||||||
Income tax expense | 4,301 | 3,757 | 4,192 | 3,486 | 3,421 | 8,058 | 6,002 | ||||||||||||||||||||||
NET INCOME | 16,747 | 13,589 | 13,733 | 12,775 | 10,796 | 30,336 | 21,163 | ||||||||||||||||||||||
Preferred stock dividends declared | 1,185 | 1,171 | 1,196 | 1,198 | 1,184 | 2,356 | 2,355 | ||||||||||||||||||||||
NET INCOME AVAILABLE TO COMMON | $ | 15,562 | $ | 12,418 | $ | 12,537 | $ | 11,577 | $ | 9,612 | $ | 27,980 | $ | 18,808 | |||||||||||||||
EARNINGS PER COMMON SHARE: | |||||||||||||||||||||||||||||
Basic earnings per share | $ | 1.12 | $ | 0.90 | $ | 0.92 | $ | 0.85 | $ | 0.70 | $ | 2.03 | $ | 1.38 | |||||||||||||||
Diluted earnings per share | $ | 0.96 | $ | 0.78 | $ | 0.79 | $ | 0.74 | $ | 0.63 | $ | 1.74 | $ | 1.25 | |||||||||||||||
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||
(Dollars in thousands, except | June 30 | March 31 | December | September | June 30 | June 30 | June 30 | ||||||||||||||||||||||
Earnings per share, basic | $ | 1.12 | $ | 0.90 | $ | 0.92 | $ | 0.85 | $ | 0.70 | $ | 2.03 | $ | 1.38 | |||||||||||||||
Earnings per share, diluted | $ | 0.96 | $ | 0.78 | $ | 0.79 | $ | 0.74 | $ | 0.63 | $ | 1.74 | $ | 1.25 | |||||||||||||||
Dividends on common stock | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
Dividends on Series A Convertible | $ | 17.06 | $ | 16.88 | $ | 17.25 | $ | 17.25 | $ | 17.06 | $ | 33.94 | $ | 33.94 | |||||||||||||||
Return on average assets (A) | 1.38 | % | 1.17 | % | 1.13 | % | 1.14 | % | 0.97 | % | 1.28 | % | 0.96 | % | |||||||||||||||
Return on average common equity (A) | 14.70 | % | 12.41 | % | 12.66 | % | 12.12 | % | 10.53 | % | 13.59 | % | 10.48 | % | |||||||||||||||
Return on average tangible common | 15.38 | % | 13.01 | % | 13.29 | % | 12.76 | % | 11.10 | % | 14.23 | % | 11.06 | % | |||||||||||||||
Net interest margin (A) (C) | 4.22 | % | 3.80 | % | 3.71 | % | 3.73 | % | 3.62 | % | 4.02 | % | 3.61 | % | |||||||||||||||
Efficiency ratio (D) | 55.45 | % | 61.23 | % | 58.80 | % | 59.57 | % | 61.39 | % | 58.16 | % | 62.73 | % | |||||||||||||||
Capital Ratios | |||||||||||||||||||||||||||||
Third Coast Bancshares, Inc. (consolidated): | |||||||||||||||||||||||||||||
Total common equity to total assets | 8.70 | % | 8.45 | % | 7.98 | % | 8.31 | % | 8.24 | % | 8.70 | % | 8.24 | % | |||||||||||||||
Tangible common equity to tangible | 8.35 | % | 8.09 | % | 7.63 | % | 7.93 | % | 7.85 | % | 8.35 | % | 7.85 | % | |||||||||||||||
Estimated Common equity tier 1 (to risk | 8.75 | % | 8.70 | % | 8.41 | % | 8.38 | % | 8.29 | % | 8.75 | % | 8.29 | % | |||||||||||||||
Estimated Tier 1 capital (to risk weighted | 10.20 | % | 10.19 | % | 9.90 | % | 9.93 | % | 9.88 | % | 10.20 | % | 9.88 | % | |||||||||||||||
Estimated Total capital (to risk weighted | 12.87 | % | 12.97 | % | 12.68 | % | 12.80 | % | 12.78 | % | 12.87 | % | 12.78 | % | |||||||||||||||
Estimated Tier 1 capital (to average | 9.65 | % | 9.58 | % | 9.12 | % | 9.53 | % | 9.24 | % | 9.65 | % | 9.24 | % | |||||||||||||||
Third Coast Bank: | |||||||||||||||||||||||||||||
Estimated Common equity tier 1 (to risk | 12.56 | % | 12.69 | % | 12.35 | % | 12.45 | % | 12.52 | % | 12.56 | % | 12.52 | % | |||||||||||||||
Estimated Tier 1 capital (to risk weighted | 12.56 | % | 12.69 | % | 12.35 | % | 12.45 | % | 12.52 | % | 12.56 | % | 12.52 | % | |||||||||||||||
Estimated Total capital (to risk weighted | 13.46 | % | 13.63 | % | 13.29 | % | 13.42 | % | 13.49 | % | 13.46 | % | 13.49 | % | |||||||||||||||
Estimated Tier 1 capital (to average | 11.89 | % | 11.93 | % | 11.37 | % | 11.95 | % | 11.71 | % | 11.89 | % | 11.71 | % | |||||||||||||||
Other Data | |||||||||||||||||||||||||||||
Weighted average shares: | |||||||||||||||||||||||||||||
Basic | 13,836,830 | 13,776,998 | 13,698,010 | 13,665,400 | 13,657,223 | 13,807,079 | 13,631,740 | ||||||||||||||||||||||
Diluted | 17,391,128 | 17,440,826 | 17,394,884 | 17,184,991 | 17,018,680 | 17,416,142 | 16,977,342 | ||||||||||||||||||||||
Period end shares outstanding | 13,851,581 | 13,825,286 | 13,769,780 | 13,667,591 | 13,665,505 | 13,851,581 | 13,665,505 | ||||||||||||||||||||||
Book value per share | $ | 31.04 | $ | 29.92 | $ | 28.65 | $ | 28.13 | $ | 26.99 | $ | 31.04 | $ | 26.99 | |||||||||||||||
Tangible book value per share (B) | $ | 29.69 | $ | 28.56 | $ | 27.29 | $ | 26.75 | $ | 25.60 | $ | 29.69 | $ | 25.60 | |||||||||||||||
(A) | Interim periods annualized. | |||||||||||
(B) | Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures at the end of this news release. | |||||||||||
(C) | Net interest margin represents net interest income divided by average interest-earning assets. | |||||||||||
(D) | Represents total noninterest expense divided by the sum of net interest income plus noninterest income. Taxes and provision for credit losses are not part of this calculation. | |||||||||||
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) | ||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||
June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||
Interest-earnings assets: | ||||||||||||||||||||||||||||||||||
Loans, gross | $ | 4,020,771 | $ | 79,706 | 7.95 % | $ | 3,979,859 | $ | 73,087 | 7.45 % | $ | 3,740,544 | $ | 73,103 | 7.86 % | |||||||||||||||||||
Investment securities available-for-sale | 382,439 | 5,505 | 5.77 % | 398,115 | 5,693 | 5.80 % | 297,653 | 4,491 | 6.07 % | |||||||||||||||||||||||||
Investment securities held-to-maturity | 117,407 | 1,607 | 5.49 % | — | — | — | — | — | — | |||||||||||||||||||||||||
Federal funds sold and other | 169,943 | 1,844 | 4.35 % | 186,893 | 1,986 | 4.31 % | 277,144 | 3,631 | 5.27 % | |||||||||||||||||||||||||
Total interest-earning assets | 4,690,560 | 88,662 | 7.58 % | 4,564,867 | 80,766 | 7.18 % | 4,315,341 | 81,225 | 7.57 % | |||||||||||||||||||||||||
Less: allowance for loan losses | (40,631) | (40,595) | (38,429) | |||||||||||||||||||||||||||||||
Total interest-earning assets, net of | 4,649,929 | 4,524,272 | 4,276,912 | |||||||||||||||||||||||||||||||
Noninterest-earning assets | 210,170 | 198,522 | 195,193 | |||||||||||||||||||||||||||||||
Total assets | $ | 4,860,099 | $ | 4,722,794 | $ | 4,472,105 | ||||||||||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 3,766,801 | $ | 37,535 | 4.00 % | $ | 3,652,006 | $ | 36,226 | 4.02 % | $ | 3,411,592 | $ | 40,410 | 4.76 % | |||||||||||||||||||
Note payable and line of credit | 111,712 | 1,719 | 6.17 % | 111,661 | 1,713 | 6.22 % | 121,275 | 1,957 | 6.49 % | |||||||||||||||||||||||||
FHLB advances | 2,916 | 34 | 4.68 % | 2,551 | 30 | 4.77 % | — | — | — | |||||||||||||||||||||||||
Total interest-bearing liabilities | 3,881,429 | 39,288 | 4.06 % | 3,766,218 | 37,969 | 4.09 % | 3,532,867 | 42,367 | 4.82 % | |||||||||||||||||||||||||
Noninterest-bearing deposits | 431,144 | 423,780 | 442,672 | |||||||||||||||||||||||||||||||
Other liabilities | 56,785 | 60,755 | 63,056 | |||||||||||||||||||||||||||||||
Total liabilities | 4,369,358 | 4,250,753 | 4,038,595 | |||||||||||||||||||||||||||||||
Shareholders' equity | 490,741 | 472,041 | 433,510 | |||||||||||||||||||||||||||||||
Total liabilities and shareholders' | $ | 4,860,099 | $ | 4,722,794 | $ | 4,472,105 | ||||||||||||||||||||||||||||
Net interest income | $ | 49,374 | $ | 42,797 | $ | 38,858 | ||||||||||||||||||||||||||||
Net interest spread (1) | 3.52 % | 3.09 % | 2.75 % | |||||||||||||||||||||||||||||||
Net interest margin (2) | 4.22 % | 3.80 % | 3.62 % | |||||||||||||||||||||||||||||||
(1) | Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities. | |||||||||||
(2) | Net interest margin represents net interest income divided by average interest-earning assets. | |||||||||||
(3) | Interest earned/paid includes accretion of deferred loan fees, premiums and discounts. | |||||||||||
(4) | Annualized. | |||||||||||
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) | ||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||
June 30, 2025 | June 30, 2024 | |||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Average | Interest | Average | ||||||||||||||||
Assets | ||||||||||||||||||||||
Interest-earnings assets: | ||||||||||||||||||||||
Loans, gross | $ | 4,000,428 | $ | 152,793 | 7.70 % | $ | 3,702,960 | $ | 143,774 | 7.81 % | ||||||||||||
Investment securities available-for-sale | 390,233 | 11,198 | 5.79 % | 249,965 | 7,584 | 6.10 % | ||||||||||||||||
Investment securities held-to-maturity | 59,028 | 1,607 | 5.49 % | — | — | — | ||||||||||||||||
Federal funds sold and other interest-earning | 178,372 | 3,830 | 4.33 % | 330,536 | 8,743 | 5.32 % | ||||||||||||||||
Total interest-earning assets | 4,628,061 | 169,428 | 7.38 % | 4,283,461 | 160,101 | 7.52 % | ||||||||||||||||
Less: allowance for loan losses | (40,613) | (37,853) | ||||||||||||||||||||
Total interest-earning assets, net of allowance | 4,587,448 | 4,245,608 | ||||||||||||||||||||
Noninterest-earning assets | 204,378 | 194,133 | ||||||||||||||||||||
Total assets | $ | 4,791,826 | $ | 4,439,741 | ||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing deposits | $ | 3,709,721 | $ | 73,761 | 4.01 % | $ | 3,379,219 | $ | 79,108 | 4.71 % | ||||||||||||
Note payable and line of credit | 111,687 | 3,432 | 6.20 % | 121,080 | 4,056 | 6.74 % | ||||||||||||||||
FHLB advances and other | 2,735 | 64 | 4.72 % | — | — | — | ||||||||||||||||
Total interest-bearing liabilities | 3,824,143 | 77,257 | 4.07 % | 3,500,299 | 83,164 | 4.78 % | ||||||||||||||||
Noninterest-bearing deposits | 427,482 | 449,863 | ||||||||||||||||||||
Other liabilities | 58,758 | 62,501 | ||||||||||||||||||||
Total liabilities | 4,310,383 | 4,012,663 | ||||||||||||||||||||
Shareholders' equity | 481,443 | 427,078 | ||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,791,826 | $ | 4,439,741 | ||||||||||||||||||
Net interest income | $ | 92,171 | $ | 76,937 | ||||||||||||||||||
Net interest spread (1) | 3.31 % | 2.74 % | ||||||||||||||||||||
Net interest margin (2) | 4.02 % | 3.61 % | ||||||||||||||||||||
(1) | Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities. | |||||||||||
(2) | Net interest margin represents net interest income divided by average interest-earning assets. | |||||||||||
(3) | Interest earned/paid includes accretion of deferred loan fees, premiums and discounts. | |||||||||||
(4) | Annualized. | |||||||||||
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
2025 | 2024 | ||||||||||||||||||||
(Dollars in thousands) | June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||||||
Period-end Loan Portfolio: | |||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Non-farm non-residential owner occupied | $ | 423,959 | $ | 420,902 | $ | 448,134 | $ | 470,222 | $ | 499,941 | |||||||||||
Non-farm non-residential non-owner occupied | 666,840 | 633,227 | 652,119 | 611,617 | 612,268 | ||||||||||||||||
Residential | 323,898 | 335,285 | 336,736 | 339,558 | 349,461 | ||||||||||||||||
Construction, development & other | 784,364 | 846,166 | 871,373 | 825,302 | 756,646 | ||||||||||||||||
Farmland | 28,013 | 30,783 | 30,915 | 35,650 | 31,049 | ||||||||||||||||
Commercial & industrial | 1,724,583 | 1,605,243 | 1,497,408 | 1,499,302 | 1,361,401 | ||||||||||||||||
Consumer | 1,206 | 1,443 | 1,859 | 2,002 | 2,216 | ||||||||||||||||
Municipal and other | 126,873 | 114,990 | 127,881 | 106,178 | 145,177 | ||||||||||||||||
Total loans | $ | 4,079,736 | $ | 3,988,039 | $ | 3,966,425 | $ | 3,889,831 | $ | 3,758,159 | |||||||||||
Asset Quality: | |||||||||||||||||||||
Nonaccrual loans | $ | 13,358 | $ | 17,066 | $ | 26,773 | $ | 23,522 | $ | 23,910 | |||||||||||
Loans > 90 days and still accruing | 6,755 | 1,503 | 1,173 | 522 | 507 | ||||||||||||||||
Total nonperforming loans | 20,113 | 18,569 | 27,946 | 24,044 | 24,417 | ||||||||||||||||
Other real estate owned | 8,580 | 8,752 | 862 | 283 | - | ||||||||||||||||
Total nonperforming assets | $ | 28,693 | $ | 27,321 | $ | 28,808 | $ | 24,327 | $ | 24,417 | |||||||||||
QTD Net charge-offs (recoveries) | $ | 2,376 | $ | 398 | $ | 879 | $ | (57) | $ | 1,829 | |||||||||||
Nonaccrual loans: | |||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Non-farm non-residential owner occupied | $ | 2,191 | $ | 3,100 | $ | 10,433 | $ | 9,696 | $ | 10,051 | |||||||||||
Non-farm non-residential non-owner occupied | 111 | - | - | 68 | 74 | ||||||||||||||||
Residential | 637 | 2,616 | 2,226 | 2,664 | 2,767 | ||||||||||||||||
Construction, development & other | 344 | 358 | 400 | 1 | 301 | ||||||||||||||||
Commercial & industrial | 10,075 | 10,992 | 13,714 | 11,093 | 10,717 | ||||||||||||||||
Total nonaccrual loans | $ | 13,358 | $ | 17,066 | $ | 26,773 | $ | 23,522 | $ | 23,910 | |||||||||||
Asset Quality Ratios: | |||||||||||||||||||||
Nonperforming assets to total assets | 0.58 | % | 0.56 | % | 0.58 | % | 0.53 | % | 0.55 | % | |||||||||||
Nonperforming loans to total loans | 0.49 | % | 0.47 | % | 0.70 | % | 0.62 | % | 0.65 | % | |||||||||||
Allowance for credit losses to total loans | 0.98 | % | 1.01 | % | 1.02 | % | 1.02 | % | 1.02 | % | |||||||||||
QTD Net charge-offs (recoveries) to average loans | 0.24 | % | 0.04 | % | 0.09 | % | (0.01) | % | 0.20 | % | |||||||||||
Third Coast Bancshares, Inc. and Subsidiary
GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
(unaudited)
Our accounting and reporting policies conform to GAAP (generally accepted accounting principles) and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional financial measures discussed in this earnings release as being non-GAAP financial measures. Specifically, we review Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Return on Average Tangible Common Equity for internal planning and forecasting purposes. We classify a financial measure as a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are not included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios, or statistical measures calculated using exclusively financial measures calculated in accordance with GAAP.
The non-GAAP financial measures that we discuss in this earnings release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this earnings release may differ from that of other companies reporting measures with similar names. It is important to understand how other banking organizations calculate their financial measures with names similar to the non-GAAP financial measures we have discussed in this earnings release when comparing such non-GAAP financial measures.
Management believes the following non-GAAP financial measures assist investors in understanding the financial condition of the company:
The calculations of these non-GAAP financial measures are as follows:
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||
(Dollars in thousands, except | June 30 | March 31 | December | September | June 30 | June 30 | June 30 | |||||||||||||||||||||
Tangible Common Equity: | ||||||||||||||||||||||||||||
Total shareholders' equity | $ | 496,115 | $ | 479,786 | $ | 460,719 | $ | 450,548 | $ | 434,998 | $ | 496,115 | $ | 434,998 | ||||||||||||||
Less: Preferred stock including additional | 66,160 | 66,160 | 66,160 | 66,117 | 66,225 | 66,160 | 66,225 | |||||||||||||||||||||
Total common equity | 429,955 | 413,626 | 394,559 | 384,431 | 368,773 | 429,955 | 368,773 | |||||||||||||||||||||
Less: Goodwill and core deposit intangibles, | 18,761 | 18,801 | 18,841 | 18,882 | 18,922 | 18,761 | 18,922 | |||||||||||||||||||||
Tangible common equity | $ | 411,194 | $ | 394,825 | $ | 375,718 | $ | 365,549 | $ | 349,851 | $ | 411,194 | $ | 349,851 | ||||||||||||||
Common shares outstanding at end of period | 13,851,581 | 13,825,286 | 13,769,780 | 13,667,591 | 13,665,505 | 13,851,581 | 13,665,505 | |||||||||||||||||||||
Book Value Per Share | $ | 31.04 | $ | 29.92 | $ | 28.65 | $ | 28.13 | $ | 26.99 | $ | 31.04 | $ | 26.99 | ||||||||||||||
Tangible Book Value Per Share | $ | 29.69 | $ | 28.56 | $ | 27.29 | $ | 26.75 | $ | 25.60 | $ | 29.69 | $ | 25.60 | ||||||||||||||
Tangible Assets: | ||||||||||||||||||||||||||||
Total assets | $ | 4,943,771 | $ | 4,896,989 | $ | 4,942,446 | $ | 4,627,770 | $ | 4,474,119 | $ | 4,943,771 | $ | 4,474,119 | ||||||||||||||
Adjustments: Goodwill and core deposit | 18,761 | 18,801 | 18,841 | 18,882 | 18,922 | 18,761 | 18,922 | |||||||||||||||||||||
Tangible assets | $ | 4,925,010 | $ | 4,878,188 | $ | 4,923,605 | $ | 4,608,888 | $ | 4,455,197 | $ | 4,925,010 | $ | 4,455,197 | ||||||||||||||
Total Common Equity to Total Assets | 8.70 | % | 8.45 | % | 7.98 | % | 8.31 | % | 8.24 | % | 8.70 | % | 8.24 | % | ||||||||||||||
Tangible Common Equity to Tangible Assets | 8.35 | % | 8.09 | % | 7.63 | % | 7.93 | % | 7.85 | % | 8.35 | % | 7.85 | % | ||||||||||||||
Average Tangible Common Equity: | ||||||||||||||||||||||||||||
Average shareholders' equity | $ | 490,741 | $ | 472,041 | $ | 460,169 | $ | 446,124 | $ | 433,510 | $ | 481,443 | $ | 427,078 | ||||||||||||||
Less: Average preferred stock including | 66,160 | 66,160 | 66,121 | 66,223 | 66,225 | 66,160 | 66,225 | |||||||||||||||||||||
Average common equity | 424,581 | 405,881 | 394,048 | 379,901 | 367,285 | 415,283 | 360,853 | |||||||||||||||||||||
Less: Average goodwill and core deposit | 18,784 | 18,826 | 18,865 | 18,906 | 18,946 | 18,805 | 18,967 | |||||||||||||||||||||
Average tangible common equity | $ | 405,797 | $ | 387,055 | $ | 375,183 | $ | 360,995 | $ | 348,339 | $ | 396,478 | $ | 341,886 | ||||||||||||||
Net Income | $ | 16,747 | $ | 13,589 | $ | 13,733 | $ | 12,775 | $ | 10,796 | $ | 30,336 | $ | 21,163 | ||||||||||||||
Less: Dividends declared on preferred stock | 1,185 | 1,171 | 1,196 | 1,198 | 1,184 | 2,356 | 2,355 | |||||||||||||||||||||
Net Income Available to Common Shareholders | $ | 15,562 | $ | 12,418 | $ | 12,537 | $ | 11,577 | $ | 9,612 | $ | 27,980 | $ | 18,808 | ||||||||||||||
Return on Average Common Equity(A) | 14.70 | % | 12.41 | % | 12.66 | % | 12.12 | % | 10.53 | % | 13.59 | % | 10.48 | % | ||||||||||||||
Return on Average Tangible Common Equity(A) | 15.38 | % | 13.01 | % | 13.29 | % | 12.76 | % | 11.10 | % | 14.23 | % | 11.06 | % | ||||||||||||||
(A) | Interim periods annualized. | |||||||||||
Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
(713) 529-6600
[email protected]
SOURCE Third Coast Bancshares
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| Jul-17 | |
| Jul-16 | |
| Jul-02 | |
| Jun-26 | |
| Jun-24 | |
| Jun-17 | |
| Jun-04 | |
| Jun-04 | |
| Apr-25 |
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