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Completed Successful Merger with Keystone Bancshares, Inc.
HOUSTON, April 22, 2026 /PRNewswire/ -- Third Coast Bancshares, Inc. (NYSE & NYSE Texas: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank (the "Bank"), today reported its 2026 first quarter financial results.
2026 First Quarter Financial Highlights
"Our first quarter marked an important step for Third Coast with the successful merger with Keystone. This transaction meaningfully increased our balance sheet and capabilities, and we're already seeing strong momentum across our loan pipelines and core markets. As we move through the year, we remain focused on executing on our strategic objectives, building deeper relationships with clients, and translating our expanded platform into sustainable growth and shareholder value," said Bart Caraway, Founder, Chairman, President & Chief Executive Officer of Third Coast.
Operating Results
Net Income and Earnings Per Common Share
Net income totaled $16.4 million for the first quarter of 2026, compared to $17.9 million for the fourth quarter of 2025 and $13.6 million for the first quarter of 2025. Net income available to common shareholders totaled $15.2 million for the first quarter of 2026, compared to $16.7 million for the fourth quarter of 2025 and $12.4 million for the first quarter of 2025. The quarter-over-quarter decrease from the fourth quarter of 2025 was primarily due to merger-related expenses attributing to an increase in legal and professional expenses, and an increase in salaries and employee benefits related to sign-on bonuses, retention and additional bonuses. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025.
Basic and diluted earnings per common share were $1.03 per share and $0.88 per share, respectively, in the first quarter of 2026, compared to $1.21 per share and $1.02 per share, respectively, in the fourth quarter of 2025 and $0.90 per share and $0.78 per share, respectively, in the first quarter of 2025.
Net Interest Margin and Net Interest Income
The net interest margin for the first quarter of 2026 was 3.67%, compared to 4.10% for the fourth quarter of 2025 and 3.80% for the first quarter of 2025. The yield on loans for the first quarter of 2026 was 7.01%, compared to 7.52% for the fourth quarter of 2025 and 7.45% for the first quarter of 2025. The cost of interest-bearing deposits for the first quarter of 2026 was 3.53%, compared to 3.73% for the fourth quarter of 2025 and 4.02% for the first quarter of 2025.
Net interest income totaled $53.6 million for the first quarter of 2026, an increase of 2.8% from $52.2 million for the fourth quarter of 2025 and an increase of 25.3% from $42.8 million for the first quarter of 2025. Interest income totaled $97.4 million for the first quarter of 2026, an increase of 5.7% from $92.1 million for the fourth quarter of 2025 and an increase of 20.6% from $80.8 million for the first quarter of 2025. The quarter-over-quarter increase from the fourth quarter of 2025 in interest income primarily resulted from an increase in loans, slightly offset by a $1.0 million reversal of interest income on a loan placed on nonaccrual and a decrease in loan yields. Interest expense was $43.7 million for the first quarter of 2026, an increase of $3.8 million, or 9.6%, from $39.9 million for the fourth quarter of 2025 and an increase of $5.8 million, or 15.2%, from $38.0 million for the first quarter of 2025, primarily resulting from an increase in interest-bearing demand deposits slightly offset by a reduction in rates paid on interest-bearing demand deposits.
Noninterest Income and Noninterest Expense
Noninterest income totaled $4.0 million for the first quarter of 2026, compared to $4.3 million for the fourth quarter of 2025 and $3.1 million for the first quarter of 2025. The quarter-over-quarter decrease from the fourth quarter of 2025 in noninterest income was primarily due to a decrease in non-margin loan fees during the first quarter of 2026.
Noninterest expense increased to $38.1 million for the first quarter of 2026, compared to $32.7 million for the fourth quarter of 2025 and $28.1 million for the first quarter of 2025. The quarter-over-quarter increase from the fourth quarter of 2025 in noninterest expense was primarily due to merger-related expenses. During the first quarter of 2026, the Company recorded $3.3 million in Keystone merger-related noninterest expenses primarily attributable to $1.6 million in legal and professional expenses and $1.3 million in salaries and employee benefits. Additionally, the Company recorded $644,000 in salaries and employee benefits attributable to sign-on bonuses and additional discretionary bonuses during the first quarter of 2026. At March 31, 2026, the number of employees increased to 514, compared to 412 at December 31, 2025 primarily due to the Keystone merger.
The efficiency ratio was 66.06% for the first quarter of 2026, compared to 57.90% for the fourth quarter of 2025 and 61.23% for the first quarter of 2025.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended March 31, 2026, gross loans increased to $5.25 billion, an increase of $856.7 million, or 19.5%, from $4.39 billion as of December 31, 2025, and an increase of $1.26 billion, or 31.7%, from $3.99 billion as of March 31, 2025. The increase in gross loans was impacted by the mid-quarter Keystone merger. Commercial and industrial loans and real estate loans accounted for the majority of the loan growth for the first quarter of 2026, with commercial and industrial loans increasing $276.2 million and real estate loans increasing $644.2 million from the fourth quarter of 2025, partially offset by municipal and other loans decreasing $64.4 million from the fourth quarter of 2025.
Asset Quality
Nonperforming loans at March 31, 2026 were $35.6 million, compared to $21.5 million at December 31, 2025 and $18.6 million at March 31, 2025. The increase in nonperforming loans during the first quarter of 2026 was primarily due to one loan for approximately $17.1 million that was placed on nonaccrual partially offset by a $5.0 million decline in loans over 90 days past due and still accruing. As of March 31, 2026, the nonperforming loans to total loans ratio was 0.68%, compared to 0.49% as of December 31, 2025 and 0.47% as of March 31, 2025.
The provision for credit loss recorded for the first quarter of 2026 was $580,000, and the allowance for credit losses of $51.5 million represented 0.98% of the $5.25 billion in gross loans outstanding as of March 31, 2026. The provision for credit loss recorded for the fourth quarter of 2025 was $2.2 million, and the allowance for credit losses of $43.9 million represented 1.00% of the $4.39 billion in gross loans outstanding as of December 31, 2025. The increase in the allowance for credit loss in the first quarter of 2026 compared to the fourth quarter of 2025 was primarily attributable to Day 1 allowance for credit losses related to the Keystone merger.
The Company recorded net recoveries of $4,000 and net charge-offs of $398,000 for the three months ended March 31, 2026 and March 31, 2025, respectively.
Deposits and Composition
Deposits totaled $5.72 billion as of March 31, 2026, an increase of 23.5% from $4.63 billion as of December 31, 2025, and an increase of 34.5% from $4.25 billion as of March 31, 2025. The increase in total deposits was impacted by the mid-quarter Keystone merger. Noninterest-bearing demand deposits increased from $495.0 million as of December 31, 2025, to $577.2 million as of March 31, 2026 and represented 10.1% and 10.7% of total deposits as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, interest-bearing demand deposits increased $912.1 million, or 27.1%, time deposits increased $90.0 million, or 12.0%, and savings accounts increased $3.8 million, or 17.6%, respectively, from December 31, 2025.
The average cost of deposits was 3.17% for the first quarter of 2026, representing a 17-basis point decrease from the fourth quarter of 2025 and a 44-basis point decrease from the first quarter of 2025. The decreases were primarily 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 2026 first quarter results, which will be broadcast live over the Internet, on Thursday, April 23, 2026, 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 April 30, 2026, and may be accessed by dialing 201-612-7415 and using passcode 13757903#. 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 21 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; changes in key management personnel; the risk that the benefits from the transaction between Third Coast and Keystone may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Third Coast and Keystone operate; the risk that the integration of each party's operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party's businesses into the other's businesses; the possibility that the completion of the transaction may be more expensive than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Third Coast's or Keystone's customers, suppliers, employees or other business partners, including those resulting from the completion of the transaction; the dilution caused by Third Coast's issuance of additional shares of its common stock in connection with the transaction; and other factors that may affect future results of Third Coast and Keystone including changes in asset quality and credit risk, the inability to sustain revenue and earnings growth, changes in interest rates and capital markets, inflation, customer borrowing, repayment, investment and deposit practices, the impact, extent and timing of technological changes, capital management activities and other actions of the Board of Governors of the Federal Reserve System and legislative and regulatory actions and reforms. 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, 2025 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 Common 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) | ||||||||||||||||||||
2026 | 2025 | |||||||||||||||||||
(Dollars in thousands) | March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash and due from banks | $ | 425,174 | $ | 175,202 | $ | 116,383 | $ | 113,141 | $ | 218,990 | ||||||||||
Federal funds sold | 6,133 | 6,027 | 6,629 | 5,815 | 110,379 | |||||||||||||||
Total cash and cash equivalents | 431,307 | 181,229 | 123,012 | 118,956 | 329,369 | |||||||||||||||
Interest bearing time deposits in other banks | 270 | 267 | 265 | 262 | 359 | |||||||||||||||
Investment securities available-for-sale | 435,846 | 383,192 | 376,719 | 355,753 | 397,442 | |||||||||||||||
Investment securities held to maturity | 191,980 | 192,008 | 206,037 | 206,065 | - | |||||||||||||||
Loans held for investment | 5,251,458 | 4,394,751 | 4,165,116 | 4,079,736 | 3,988,039 | |||||||||||||||
Less: allowance for credit losses | (51,455) | (43,949) | (42,563) | (40,035) | (40,456) | |||||||||||||||
Loans held for investment, net | 5,200,003 | 4,350,802 | 4,122,553 | 4,039,701 | 3,947,583 | |||||||||||||||
Accrued interest receivable | 31,385 | 29,236 | 29,537 | 27,736 | 26,752 | |||||||||||||||
Premises and equipment, net | 40,558 | 24,789 | 24,718 | 24,908 | 25,669 | |||||||||||||||
Other real estate owned | 8,388 | 8,388 | 8,388 | 8,580 | 8,752 | |||||||||||||||
Bank-owned life insurance | 77,107 | 76,357 | 75,547 | 74,761 | 74,018 | |||||||||||||||
Non-marketable securities, at cost | 21,759 | 16,424 | 26,157 | 18,761 | 15,994 | |||||||||||||||
Deferred tax asset, net | 7,493 | 6,450 | 6,989 | 8,646 | 9,176 | |||||||||||||||
Derivative assets | 2,350 | 2,544 | 2,803 | 3,059 | 3,052 | |||||||||||||||
Right-of-use assets - operating leases | 17,615 | 17,066 | 17,677 | 18,769 | 19,370 | |||||||||||||||
Goodwill and other intangible assets | 54,883 | 18,680 | 18,720 | 18,761 | 18,801 | |||||||||||||||
Other assets | 61,129 | 33,327 | 22,686 | 19,053 | 20,652 | |||||||||||||||
Total assets | $ | 6,582,073 | $ | 5,340,759 | $ | 5,061,808 | $ | 4,943,771 | $ | 4,896,989 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest bearing | $ | 577,217 | $ | 495,000 | $ | 450,013 | $ | 440,964 | $ | 448,542 | ||||||||||
Interest bearing | 5,137,860 | 4,131,888 | 3,922,728 | 3,839,905 | 3,800,001 | |||||||||||||||
Total deposits | 5,715,077 | 4,626,888 | 4,372,741 | 4,280,869 | 4,248,543 | |||||||||||||||
Accrued interest payable | 7,205 | 5,957 | 7,153 | 6,691 | 7,044 | |||||||||||||||
Derivative liabilities | 3,517 | 3,142 | 3,521 | 3,779 | 3,527 | |||||||||||||||
Lease liability - operating leases | 18,676 | 18,130 | 18,735 | 19,835 | 20,425 | |||||||||||||||
Other liabilities | 48,177 | 36,775 | 32,040 | 24,745 | 25,979 | |||||||||||||||
Line of credit - Senior Debt | 57,875 | 37,875 | 32,875 | 30,875 | 30,875 | |||||||||||||||
Note payable - Subordinated Debentures, net | 81,016 | 80,965 | 80,913 | 80,862 | 80,810 | |||||||||||||||
Total liabilities | 5,931,543 | 4,809,732 | 4,547,978 | 4,447,656 | 4,417,203 | |||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Series A Convertible Non-Cumulative Preferred Stock | 69 | 69 | 69 | 69 | 69 | |||||||||||||||
Series B Convertible Perpetual Preferred Stock | - | - | - | - | - | |||||||||||||||
Common stock | 16,641 | 13,970 | 13,958 | 13,930 | 13,904 | |||||||||||||||
Common stock - non-voting | - | - | - | - | - | |||||||||||||||
Additional paid-in capital | 428,815 | 323,929 | 323,491 | 322,972 | 322,456 | |||||||||||||||
Retained earnings | 198,435 | 183,238 | 166,537 | 149,677 | 134,115 | |||||||||||||||
Accumulated other comprehensive income | 7,669 | 10,920 | 10,874 | 10,566 | 10,341 | |||||||||||||||
Treasury stock, at cost | (1,099) | (1,099) | (1,099) | (1,099) | (1,099) | |||||||||||||||
Total shareholders' equity | 650,530 | 531,027 | 513,830 | 496,115 | 479,786 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 6,582,073 | $ | 5,340,759 | $ | 5,061,808 | $ | 4,943,771 | $ | 4,896,989 | ||||||||||
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
2026 | 2025 | ||||||||||||||||||||
(Dollars in thousands, except per share data) | March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
INTEREST INCOME: | |||||||||||||||||||||
Loans, including fees | $ | 85,893 | $ | 81,368 | $ | 82,054 | $ | 79,706 | $ | 73,087 | |||||||||||
Investment securities available-for-sale | 6,107 | 6,464 | 6,289 | 5,505 | 5,693 | ||||||||||||||||
Investment securities held-to-maturity | 2,398 | 2,681 | 2,882 | 1,607 | - | ||||||||||||||||
Federal funds sold and other | 2,988 | 1,586 | 1,278 | 1,844 | 1,986 | ||||||||||||||||
Total interest income | 97,386 | 92,099 | 92,503 | 88,662 | 80,766 | ||||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||||
Deposit accounts | 41,484 | 37,530 | 39,030 | 37,535 | 36,226 | ||||||||||||||||
FHLB advances and other borrowings | 2,257 | 2,372 | 2,624 | 1,753 | 1,743 | ||||||||||||||||
Total interest expense | 43,741 | 39,902 | 41,654 | 39,288 | 37,969 | ||||||||||||||||
Net interest income | 53,645 | 52,197 | 50,849 | 49,374 | 42,797 | ||||||||||||||||
Provision for credit losses | 580 | 2,245 | 2,763 | 2,130 | 450 | ||||||||||||||||
Net interest income after credit loss expense | 53,065 | 49,952 | 48,086 | 47,244 | 42,347 | ||||||||||||||||
NONINTEREST INCOME: | |||||||||||||||||||||
Service charges and fees | 3,175 | 3,518 | 2,839 | 2,125 | 2,277 | ||||||||||||||||
Earnings on bank-owned life insurance | 750 | 811 | 786 | 743 | 677 | ||||||||||||||||
Loss on sale of investment securities available-for-sale | (11) | (272) | - | (110) | (228) | ||||||||||||||||
Gain on sale of SBA loans | - | - | - | 44 | 30 | ||||||||||||||||
Other | 119 | 204 | 10 | (152) | 351 | ||||||||||||||||
Total noninterest income | 4,033 | 4,261 | 3,635 | 2,650 | 3,107 | ||||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||||
Salaries and employee benefits | 24,808 | 21,109 | 19,560 | 18,179 | 18,341 | ||||||||||||||||
Occupancy and equipment expense | 3,349 | 2,845 | 2,861 | 2,783 | 2,834 | ||||||||||||||||
Legal and professional | 3,221 | 2,850 | 1,254 | 1,927 | 1,431 | ||||||||||||||||
Data processing and network expense | 1,414 | 1,087 | 1,203 | 1,162 | 1,120 | ||||||||||||||||
Regulatory assessments | 1,210 | 1,172 | 1,152 | 1,203 | 1,306 | ||||||||||||||||
Advertising and marketing | 639 | 733 | 499 | 503 | 409 | ||||||||||||||||
Software purchases and maintenance | 1,419 | 1,067 | 1,094 | 1,149 | 1,259 | ||||||||||||||||
Loan operations and other real estate owned expense | 537 | 397 | 29 | 439 | 269 | ||||||||||||||||
Telephone and communications | 144 | 126 | 134 | 115 | 175 | ||||||||||||||||
Other | 1,362 | 1,305 | 1,106 | 1,386 | 964 | ||||||||||||||||
Total noninterest expense | 38,103 | 32,691 | 28,892 | 28,846 | 28,108 | ||||||||||||||||
NET INCOME BEFORE INCOME TAX | 18,995 | 21,522 | 22,829 | 21,048 | 17,346 | ||||||||||||||||
Income tax expense | 2,627 | 3,624 | 4,772 | 4,301 | 3,757 | ||||||||||||||||
NET INCOME | 16,368 | 17,898 | 18,057 | 16,747 | 13,589 | ||||||||||||||||
Preferred stock dividends declared | 1,171 | 1,197 | 1,197 | 1,185 | 1,171 | ||||||||||||||||
NET INCOME AVAILABLE TO COMMON | $ | 15,197 | $ | 16,701 | $ | 16,860 | $ | 15,562 | $ | 12,418 | |||||||||||
EARNINGS PER COMMON SHARE: | |||||||||||||||||||||
Basic earnings per share | $ | 1.03 | $ | 1.21 | $ | 1.22 | $ | 1.12 | $ | 0.90 | |||||||||||
Diluted earnings per share | $ | 0.88 | $ | 1.02 | $ | 1.03 | $ | 0.96 | $ | 0.78 | |||||||||||
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
2026 | 2025 | ||||||||||||||||||||
(Dollars in thousands, except share and per share data) | March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
Earnings per common share, basic | $ | 1.03 | $ | 1.21 | $ | 1.22 | $ | 1.12 | $ | 0.90 | |||||||||||
Earnings per common share, diluted | $ | 0.88 | $ | 1.02 | $ | 1.03 | $ | 0.96 | $ | 0.78 | |||||||||||
Dividends on common stock | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Dividends on Series A Convertible | $ | 16.88 | $ | 17.25 | $ | 17.25 | $ | 17.06 | $ | 16.88 | |||||||||||
Return on average assets (A) | 1.08 | % | 1.36 | % | 1.41 | % | 1.38 | % | 1.17 | % | |||||||||||
Return on average common equity (A) | 11.29 | % | 14.42 | % | 15.14 | % | 14.70 | % | 12.41 | % | |||||||||||
Return on average tangible common | 12.23 | % | 15.03 | % | 15.81 | % | 15.38 | % | 13.01 | % | |||||||||||
Net interest margin (A) (C) | 3.67 | % | 4.10 | % | 4.10 | % | 4.22 | % | 3.80 | % | |||||||||||
Efficiency ratio (D) | 66.06 | % | 57.90 | % | 53.03 | % | 55.45 | % | 61.23 | % | |||||||||||
Capital Ratios | |||||||||||||||||||||
Third Coast Bancshares, Inc. (consolidated): | |||||||||||||||||||||
Total common equity to total assets | 8.88 | % | 8.70 | % | 8.84 | % | 8.70 | % | 8.45 | % | |||||||||||
Tangible common equity to tangible | 8.11 | % | 8.38 | % | 8.51 | % | 8.35 | % | 8.09 | % | |||||||||||
Estimated Common equity tier 1 (to risk | 8.84 | % | 8.65 | % | 8.85 | % | 8.75 | % | 8.70 | % | |||||||||||
Estimated Tier 1 capital (to risk weighted | 9.96 | % | 9.97 | % | 10.25 | % | 10.20 | % | 10.19 | % | |||||||||||
Estimated Total capital (to risk weighted | 12.13 | % | 12.48 | % | 12.90 | % | 12.87 | % | 12.97 | % | |||||||||||
Estimated Tier 1 capital (to average | 9.65 | % | 9.65 | % | 9.55 | % | 9.65 | % | 9.58 | % | |||||||||||
Third Coast Bank: | |||||||||||||||||||||
Estimated Common equity tier 1 (to risk | 12.23 | % | 12.23 | % | 12.59 | % | 12.56 | % | 12.69 | % | |||||||||||
Estimated Tier 1 capital (to risk weighted | 12.23 | % | 12.23 | % | 12.59 | % | 12.56 | % | 12.69 | % | |||||||||||
Estimated Total capital (to risk weighted | 13.02 | % | 13.14 | % | 13.53 | % | 13.46 | % | 13.63 | % | |||||||||||
Estimated Tier 1 capital (to average | 11.84 | % | 11.84 | % | 11.75 | % | 11.89 | % | 11.93 | % | |||||||||||
Other Data | |||||||||||||||||||||
Weighted average common shares: | |||||||||||||||||||||
Basic | 14,814,661 | 13,889,497 | 13,860,149 | 13,836,830 | 13,776,998 | ||||||||||||||||
Diluted | 18,560,056 | 17,552,204 | 17,524,288 | 17,391,128 | 17,440,826 | ||||||||||||||||
Period end common shares outstanding | 16,562,268 | 13,891,055 | 13,879,099 | 13,851,581 | 13,825,286 | ||||||||||||||||
Book value per common share | $ | 35.28 | $ | 33.47 | $ | 32.25 | $ | 31.04 | $ | 29.92 | |||||||||||
Tangible book value per common share (B) | $ | 31.97 | $ | 32.12 | $ | 30.91 | $ | 29.69 | $ | 28.56 | |||||||||||
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(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 | ||||||||||||||||||||||||||||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Interest-earnings assets: | ||||||||||||||||||||||||||||||||
Loans, gross | $ | 4,972,780 | $ | 85,893 | 7.01 % | $ | 4,294,376 | $ | 81,368 | 7.52 % | $ | 3,979,859 | $ | 73,087 | 7.45 % | |||||||||||||||||
Investment securities available-for-sale | 402,372 | 6,107 | 6.16 % | 399,694 | 6,464 | 6.42 % | 398,115 | 5,693 | 5.80 % | |||||||||||||||||||||||
Investment securities held-to-maturity | 191,998 | 2,398 | 5.07 % | 196,309 | 2,681 | 5.42 % | — | — | — | |||||||||||||||||||||||
Federal funds sold and other interest-earning | 364,681 | 2,988 | 3.32 % | 164,928 | 1,586 | 3.82 % | 186,893 | 1,986 | 4.31 % | |||||||||||||||||||||||
Total interest-earning assets | 5,931,831 | 97,386 | 6.66 % | 5,055,307 | 92,099 | 7.23 % | 4,564,867 | 80,766 | 7.18 % | |||||||||||||||||||||||
Less: allowance for loan losses | (48,822) | (42,984) | (40,595) | |||||||||||||||||||||||||||||
Total interest-earning assets, net of | 5,883,009 | 5,012,323 | 4,524,272 | |||||||||||||||||||||||||||||
Noninterest-earning assets | 270,433 | 209,215 | 198,522 | |||||||||||||||||||||||||||||
Total assets | $ | 6,153,442 | $ | 5,221,538 | $ | 4,722,794 | ||||||||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 4,761,641 | $ | 41,484 | 3.53 % | $ | 3,989,201 | $ | 37,530 | 3.73 % | $ | 3,652,006 | $ | 36,226 | 4.02 % | |||||||||||||||||
Note payable and line of credit | 130,737 | 1,944 | 6.03 % | 118,807 | 1,801 | 6.01 % | 111,661 | 1,713 | 6.22 % | |||||||||||||||||||||||
FHLB advances | 40,155 | 313 | 3.16 % | 56,483 | 571 | 4.01 % | 2,551 | 30 | 4.77 % | |||||||||||||||||||||||
Total interest-bearing liabilities | 4,932,533 | 43,741 | 3.60 % | 4,164,491 | 39,902 | 3.80 % | 3,766,218 | 37,969 | 4.09 % | |||||||||||||||||||||||
Noninterest-bearing deposits | 549,111 | 477,198 | 423,780 | |||||||||||||||||||||||||||||
Other liabilities | 59,628 | 54,090 | 60,755 | |||||||||||||||||||||||||||||
Total liabilities | 5,541,272 | 4,695,779 | 4,250,753 | |||||||||||||||||||||||||||||
Shareholders' equity | 612,170 | 525,759 | 472,041 | |||||||||||||||||||||||||||||
Total liabilities and shareholders' | $ | 6,153,442 | $ | 5,221,538 | $ | 4,722,794 | ||||||||||||||||||||||||||
Net interest income | $ | 53,645 | $ | 52,197 | $ | 42,797 | ||||||||||||||||||||||||||
Net interest spread (1) | 3.06 % | 3.43 % | 3.09 % | |||||||||||||||||||||||||||||
Net interest margin (2) | 3.67 % | 4.10 % | 3.80 % | |||||||||||||||||||||||||||||
___________ |
(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 | |||||||||||||||||||||
2026 | 2025 | ||||||||||||||||||||
(Dollars in thousands) | March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
Period-end Loan Portfolio: | |||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Non-farm non-residential owner occupied | $ | 572,037 | $ | 434,715 | $ | 408,996 | $ | 423,959 | $ | 420,902 | |||||||||||
Non-farm non-residential non-owner occupied | 929,598 | 710,401 | 687,924 | 666,840 | 633,227 | ||||||||||||||||
Residential | 543,804 | 333,419 | 334,583 | 323,898 | 335,285 | ||||||||||||||||
Construction, development & other | 894,767 | 823,353 | 826,566 | 784,364 | 846,166 | ||||||||||||||||
Farmland | 32,379 | 26,485 | 25,549 | 28,013 | 30,783 | ||||||||||||||||
Commercial & industrial | 2,182,864 | 1,906,616 | 1,772,045 | 1,724,583 | 1,605,243 | ||||||||||||||||
Consumer | 2,265 | 1,576 | 1,291 | 1,206 | 1,443 | ||||||||||||||||
Municipal and other | 93,744 | 158,186 | 108,162 | 126,873 | 114,990 | ||||||||||||||||
Total loans | $ | 5,251,458 | $ | 4,394,751 | $ | 4,165,116 | $ | 4,079,736 | $ | 3,988,039 | |||||||||||
Asset Quality: | |||||||||||||||||||||
Nonaccrual loans | $ | 29,222 | $ | 10,120 | $ | 10,723 | $ | 13,358 | $ | 17,066 | |||||||||||
Loans > 90 days and still accruing | 6,396 | 11,360 | 11,016 | 6,755 | 1,503 | ||||||||||||||||
Total nonperforming loans | 35,618 | 21,480 | 21,739 | 20,113 | 18,569 | ||||||||||||||||
Other real estate owned | 8,388 | 8,388 | 8,388 | 8,580 | 8,752 | ||||||||||||||||
Total nonperforming assets | $ | 44,006 | $ | 29,868 | $ | 30,127 | $ | 28,693 | $ | 27,321 | |||||||||||
QTD Net (recoveries) charge-offs | $ | (4) | $ | 844 | $ | (17) | $ | 2,376 | $ | 398 | |||||||||||
Nonaccrual loans: | |||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Non-farm non-residential owner occupied | $ | 618 | $ | 1,235 | $ | 1,237 | $ | 2,191 | $ | 3,100 | |||||||||||
Non-farm non-residential non-owner occupied | 17,140 | 99 | 111 | 111 | - | ||||||||||||||||
Residential | 374 | 387 | 214 | 637 | 2,616 | ||||||||||||||||
Construction, development & other | 603 | - | 6 | 344 | 358 | ||||||||||||||||
Commercial & industrial | 10,487 | 8,399 | 9,155 | 10,075 | 10,992 | ||||||||||||||||
Total nonaccrual loans | $ | 29,222 | $ | 10,120 | $ | 10,723 | $ | 13,358 | $ | 17,066 | |||||||||||
Asset Quality Ratios: | |||||||||||||||||||||
Nonperforming assets to total assets | 0.67 | % | 0.56 | % | 0.60 | % | 0.58 | % | 0.56 | % | |||||||||||
Nonperforming loans to total loans | 0.68 | % | 0.49 | % | 0.52 | % | 0.49 | % | 0.47 | % | |||||||||||
Allowance for credit losses to total loans | 0.98 | % | 1.00 | % | 1.02 | % | 0.98 | % | 1.01 | % | |||||||||||
QTD Net (recoveries) charge-offs to average loans | (0.00) | % | 0.08 | % | (0.00) | % | 0.24 | % | 0.04 | % | |||||||||||
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 Common 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 | ||||||||||||||||||||
2026 | 2025 | |||||||||||||||||||
(Dollars in thousands, except share and per share data) | March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||||
Tangible Common Equity: | ||||||||||||||||||||
Total shareholders' equity | $ | 650,530 | $ | 531,027 | $ | 513,830 | $ | 496,115 | $ | 479,786 | ||||||||||
Less: Preferred stock including additional | 66,160 | 66,160 | 66,160 | 66,160 | 66,160 | |||||||||||||||
Total common equity | 584,370 | 464,867 | 447,670 | 429,955 | 413,626 | |||||||||||||||
Less: Goodwill and core deposit intangibles, | 54,883 | 18,680 | 18,720 | 18,761 | 18,801 | |||||||||||||||
Tangible common equity | $ | 529,487 | $ | 446,187 | $ | 428,950 | $ | 411,194 | $ | 394,825 | ||||||||||
Common shares outstanding at end of period | 16,562,268 | 13,891,055 | 13,879,099 | 13,851,581 | 13,825,286 | |||||||||||||||
Book Value Per Common Share | $ | 35.28 | $ | 33.47 | $ | 32.25 | $ | 31.04 | $ | 29.92 | ||||||||||
Tangible Book Value Per Common Share | $ | 31.97 | $ | 32.12 | $ | 30.91 | $ | 29.69 | $ | 28.56 | ||||||||||
Tangible Assets: | ||||||||||||||||||||
Total assets | $ | 6,582,073 | $ | 5,340,759 | $ | 5,061,808 | $ | 4,943,771 | $ | 4,896,989 | ||||||||||
Adjustments: Goodwill and core deposit | 54,883 | 18,680 | 18,720 | 18,761 | 18,801 | |||||||||||||||
Tangible assets | $ | 6,527,190 | $ | 5,322,079 | $ | 5,043,088 | $ | 4,925,010 | $ | 4,878,188 | ||||||||||
Total Common Equity to Total Assets | 8.88 | % | 8.70 | % | 8.84 | % | 8.70 | % | 8.45 | % | ||||||||||
Tangible Common Equity to Tangible Assets | 8.11 | % | 8.38 | % | 8.51 | % | 8.35 | % | 8.09 | % | ||||||||||
Average Tangible Common Equity: | ||||||||||||||||||||
Average shareholders' equity | $ | 612,170 | $ | 525,759 | $ | 508,034 | $ | 490,741 | $ | 472,041 | ||||||||||
Less: Average preferred stock including | 66,160 | 66,160 | 66,160 | 66,160 | 66,160 | |||||||||||||||
Average common equity | 546,010 | 459,599 | 441,874 | 424,581 | 405,881 | |||||||||||||||
Less: Average goodwill and core deposit | 42,115 | 18,705 | 18,746 | 18,784 | 18,826 | |||||||||||||||
Average tangible common equity | $ | 503,895 | $ | 440,894 | $ | 423,128 | $ | 405,797 | $ | 387,055 | ||||||||||
Net Income | $ | 16,368 | $ | 17,898 | $ | 18,057 | $ | 16,747 | $ | 13,589 | ||||||||||
Less: Dividends declared on preferred stock | 1,171 | 1,197 | 1,197 | 1,185 | 1,171 | |||||||||||||||
Net Income Available to Common Shareholders | $ | 15,197 | $ | 16,701 | $ | 16,860 | $ | 15,562 | $ | 12,418 | ||||||||||
Return on Average Common Equity(A) | 11.29 | % | 14.42 | % | 15.14 | % | 14.70 | % | 12.41 | % | ||||||||||
Return on Average Tangible Common Equity(A) | 12.23 | % | 15.03 | % | 15.81 | % | 15.38 | % | 13.01 | % | ||||||||||
___________ |
(A) Interim periods annualized. |
Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
(713) 529-6600
TCBX@dennardlascar.com
SOURCE Third Coast Bancshares
| Apr-22 | |
| Apr-08 | |
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| Feb-11 | |
| Feb-06 | |
| Feb-02 | |
| Jan-23 | |
| Jan-22 | |
| Jan-22 | |
| Jan-21 | |
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