Record EPS of $1.22 and Diluted EPS of $1.03 in Latest Quarterly Results
HOUSTON, Oct. 22, 2025 /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 2025 third quarter financial results.
Financial Highlights
-- Return on average assets of 1.41% annualized for the third quarter of
2025 compared to 1.38% annualized for the second quarter of 2025 and
1.14% annualized for the third quarter of 2024.
-- Net interest margin of 4.10% for the third quarter of 2025 compared to
4.22% for the second quarter of 2025 and 3.73% for the third quarter of
2024.
-- Net income for the third quarter of 2025 totaled $18.1 million, or $1.22
and $1.03 per basic and diluted share, respectively, compared to $16.7
million, or $1.12 and $0.96 per basic and diluted share, respectively,
for the second quarter of 2025 and $12.8 million, or $0.85 and $0.74 per
basic and diluted share, respectively, for the third quarter of 2024.
-- Efficiency ratio continues to improve from 55.45% for the second quarter
of 2025 to 53.03% for the third quarter of 2025.
-- Gross loans grew to $4.17 billion as of September 30, 2025, from $4.08
billion reported as of June 30, 2025.
-- Book value per share and tangible book value per share(1) increased to
$32.25 and $30.91, respectively, as of September 30, 2025, compared to
$31.04 and $29.69, respectively, as of June 30, 2025 and $28.13 and
$26.75, respectively, as of September 30, 2024.
-- Transfer of listing of common stock to the New York Stock Exchange and
NYSE Texas.
(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, "This was a defining quarter for TCBX, showcasing our team's relentless focus through the Company's outstanding achievements and financial performance. The recent transfer of our stock to both the New York Stock Exchange and NYSE Texas signifies a strategic transition designed to boost market visibility and offer shareholders increased liquidity. Our total assets, loans, and deposits grew steadily, a true testament to our relationship-banking strategy. By optimizing operating leverage, we not only increased interest and non-interest income but also maintained stable expenses. Our unwavering commitment to delivering exceptional value is highlighted by our record-breaking earnings per share and enhanced returns on average assets. The results of this quarter vibrantly demonstrate the long-standing commitment and passion of the entire TCBX team."
Operating Results
Net Income and Earnings Per Share
Net income totaled $18.1 million for the third quarter of 2025, compared to $16.7 million for the second quarter of 2025 and $12.8 million for the third quarter of 2024. Net income available to common shareholders totaled $16.9 million for the third quarter of 2025, compared to $15.6 million for the second quarter of 2025 and $11.6 million for the third quarter of 2024. The quarter-over-quarter increase was primarily due to an increase in net interest income and an increase in non-margin loan fees, partially offset by an increase in provision for credit losses. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended September 30, 2025 and June 30, 2025.
Basic and diluted earnings per share were $1.22 per share and $1.03 per share, respectively, in the third quarter of 2025, compared to $1.12 per share and $0.96 per share, respectively, in the second quarter of 2025 and $0.85 per share and $0.74 per share, respectively, in the third quarter of 2024.
Net Interest Margin and Net Interest Income
The net interest margin for the third quarter of 2025 was 4.10%, compared to 4.22% for the second quarter of 2025 and 3.73% for the third quarter of 2024. The yield on loans for the third quarter of 2025 was 7.79%, compared to 7.95% for the second quarter of 2025 and 7.90% for the third quarter of 2024. The cost of interest-bearing deposits for the third quarter of 2025 was 3.98%, compared to 4.00% for the second quarter of 2025 and 4.75% for the third quarter of 2024.
Net interest income totaled $50.8 million for the third quarter of 2025, an increase of 3.0% from $49.4 million for the second quarter of 2025 and an increase of 25.9% from $40.4 million for the third quarter of 2024. Interest income totaled $92.5 million for the third quarter of 2025, an increase of 4.3% from $88.7 million for the second quarter of 2025 and an increase of 11.8% from $82.7 million for the third quarter of 2024. The quarter-over-quarter increase in net interest income primarily resulted from an increase in loans and the purchase of investment securities. Interest expense was $41.7 million for the third quarter of 2025, an increase of $2.4 million, or 6.0%, from $39.3 million for the second quarter of 2025 and a decrease of $682,000, or 1.6%, from $42.3 million for the third quarter of 2024, primarily resulting from an increase in interest-bearing deposits.
Noninterest Income and Noninterest Expense
Noninterest income totaled $3.6 million for the third quarter of 2025, compared to $2.7 million for the second quarter of 2025 and $2.5 million for the third quarter of 2024. The increase in noninterest income was primarily due to an increase in loan fees during the third quarter of 2025.
Noninterest expense increased to $28.9 million for the third quarter of 2025, compared to $28.8 million for the second quarter of 2025 and $25.6 million for the third quarter of 2024. The quarter-over-quarter increase in noninterest expense was primarily due to an increase in salaries and employee benefits, offset by a decrease in legal and professional expenses and a decrease in loan operations and other real estate owned expenses compared to the second quarter of 2025. At September 30, 2025, the number of employees was 398, compared to 388 at June 30, 2025.
The efficiency ratio was 53.03% for the third quarter of 2025, compared to 55.45% for the second quarter of 2025 and 59.57% for the third quarter of 2024.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended September 30, 2025, gross loans increased to $4.17 billion, an increase of $85.4 million, or 2.1%, from $4.08 billion as of June 30, 2025, and an increase of $275.3 million, or 7.1%, from $3.89 billion as of September 30, 2024. Commercial and industrial loans and real estate loans accounted for the majority of the loan growth for the third quarter of 2025, offset by slight decreases in municipal and other loans from the second quarter of 2025.
Asset Quality
Nonperforming loans at September 30, 2025 were $21.7 million, compared to $20.1 million at June 30, 2025 and $24.0 million at September 30, 2024. As of September 30, 2025, the nonperforming loans to total loans ratio was 0.52%, compared to 0.49% as of June 30, 2025 and 0.62% as of September 30, 2024. The increase in nonperforming loans during the third quarter of 2025 was due to an increase in loans greater than 90 days past due and still accruing which increased by approximately $4.3 million, primarily due to four borrowers totaling approximately $3.9 million. Of the four borrowers, one totaling $1.1 million has a 75% SBA guaranty, two totaling $2.4 million are well secured and in the process of renewal, and one is a mortgage loan that is in modification. This increase was partially offset by a decline in nonaccrual loans of $2.6 million, which was primarily attributed to $2.0 million in payoffs and paydowns, the placement of a $337,000 loan placed back on accrual, and a $233,000 foreclosure.
The provision for credit loss recorded for the third quarter of 2025 was $2.8 million, and the allowance for credit losses of $42.6 million represented 1.02% of the $4.17 billion in gross loans outstanding as of September 30, 2025. 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 Company recorded net recoveries of $17,000 and $57,000 for the three months ended September 30, 2025 and September 30, 2024, respectively.
Deposits and Composition
Deposits totaled $4.37 billion as of September 30, 2025, an increase of 2.1% from $4.28 billion as of June 30, 2025, and an increase of 9.5% from $3.99 billion as of September 30, 2024. Noninterest-bearing demand deposits increased from $441.0 million as of June 30, 2025, to $450.0 million as of September 30, 2025 and represented 10.3% of total deposits as of both September 30, 2025 and June 30, 2025. As of September 30, 2025, interest-bearing demand deposits increased $91.6 million, or 3.0%, partially offset by a decrease in time deposits of $7.8 million, or 1.0%, and a decrease in savings accounts of $919,000, or 4.0%, respectively, from June 30, 2025.
The average cost of deposits was 3.56% for the third quarter of 2025, representing a 3-basis point decrease from the second quarter of 2025 and a 62-basis point decrease from the third 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 third quarter results, which will be broadcast live over the Internet, on Thursday, October 23, 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 October 30, 2025, and may be accessed by dialing 201-612-7415 and using passcode 13752288#. 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
---------------------------------- ----------------------
September December September
(Dollars in thousands) 30 June 30 March 31 31 30
----------------------- ---------- ---------- ---------- ---------- ----------
ASSETS
Cash and cash
equivalents:
Cash and due from banks $ 116,383 $ 113,141 $ 218,990 $ 371,157 $ 258,191
Federal funds sold 6,629 5,815 110,379 50,045 12,265
--------- --------- --------- --------- ---------
Total cash and cash
equivalents 123,012 118,956 329,369 421,202 270,456
Interest bearing time
deposits in other
banks 265 262 359 356 353
Investment securities
available-for-sale 376,719 355,753 397,442 384,025 292,104
Investment securities
held to maturity 206,037 206,065 - - -
Loans held for
investment 4,165,116 4,079,736 3,988,039 3,966,425 3,889,831
Less: allowance for
credit losses (42,563) (40,035) (40,456) (40,304) (39,683)
--------- --------- --------- --------- ---------
Loans held for
investment, net 4,122,553 4,039,701 3,947,583 3,926,121 3,850,148
Accrued interest
receivable 29,537 27,736 26,752 25,820 26,111
Premises and equipment,
net 24,718 24,908 25,669 26,230 26,696
Bank-owned life
insurance 75,547 74,761 74,018 68,341 67,679
Non-marketable
securities, at cost 26,157 18,761 15,994 15,980 24,328
Deferred tax asset, net 6,989 8,646 9,176 11,445 8,654
Derivative assets 2,803 3,059 3,052 6,479 5,786
Right-of-use assets -
operating leases 17,677 18,769 19,370 19,863 20,397
Goodwill and other
intangible assets 18,720 18,761 18,801 18,841 18,882
Other assets 31,074 27,633 29,404 17,743 16,176
--------- --------- --------- --------- ---------
Total assets $5,061,808 $4,943,771 $4,896,989 $4,942,446 $4,627,770
========= ========= ========= ========= =========
LIABILITIES
Deposits:
Noninterest bearing $ 450,013 $ 440,964 $ 448,542 $ 602,082 $ 489,822
Interest bearing 3,922,728 3,839,905 3,800,001 3,708,416 3,504,616
--------- --------- --------- --------- ---------
Total deposits 4,372,741 4,280,869 4,248,543 4,310,498 3,994,438
Accrued interest payable 7,153 6,691 7,044 6,281 7,283
Derivative liabilities 3,521 3,779 3,527 8,660 6,874
Lease liability -
operating leases 18,735 19,835 20,425 20,900 21,412
Other liabilities 32,040 24,745 25,979 23,754 34,632
Line of credit - Senior
Debt 32,875 30,875 30,875 30,875 31,875
Note payable -
Subordinated
Debentures, net 80,913 80,862 80,810 80,759 80,708
--------- --------- --------- --------- ---------
Total liabilities 4,547,978 4,447,656 4,417,203 4,481,727 4,177,222
SHAREHOLDERS' EQUITY
Series A Convertible
Non-Cumulative
Preferred Stock 69 69 69 69 69
Series B Convertible
Perpetual Preferred
Stock - - - - -
Common stock 13,958 13,930 13,904 13,848 13,746
Common stock -
non-voting - - - - -
Additional paid-in
capital 323,491 322,972 322,456 321,696 320,871
Retained earnings 166,537 149,677 134,115 121,697 109,160
Accumulated other
comprehensive income 10,874 10,566 10,341 4,508 7,801
Treasury stock, at cost (1,099) (1,099) (1,099) (1,099) (1,099)
--------- --------- --------- --------- ---------
Total shareholders'
equity 513,830 496,115 479,786 460,719 450,548
--------- --------- --------- --------- ---------
Total liabilities and
shareholders' equity $5,061,808 $4,943,771 $4,896,989 $4,942,446 $4,627,770
========= ========= ========= ========= =========
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended Nine Months Ended
------------------------------------------------------ ------------------------
2025 2024 2025 2024
----------------------------- ----------------------- ----------- -----------
(Dollars in thousands, September March December September September September
except per share data) 30 June 30 31 31 30 30 30
----------------------- ----------- ------- ------- ---------- ----------- ----------- -----------
INTEREST INCOME:
Loans, including fees $ 82,054 $79,706 $73,087 $ 76,017 $ 75,468 $ 234,847 $ 219,242
Investment securities
available-for-sale 6,289 5,505 5,693 4,939 4,532 17,487 12,116
Investment securities
held-to-maturity 2,882 1,607 - - - 4,489 -
Federal funds sold and
other 1,278 1,844 1,986 4,580 2,719 5,108 11,462
Total interest income 92,503 88,662 80,766 85,536 82,719 261,931 242,820
INTEREST EXPENSE:
Deposit accounts 39,030 37,535 36,226 40,233 40,407 112,791 119,515
FHLB advances and other
borrowings 2,624 1,753 1,743 1,865 1,929 6,120 5,985
Total interest expense 41,654 39,288 37,969 42,098 42,336 118,911 125,500
------- ------ ------ ------ ------- ------- -------
Net interest income 50,849 49,374 42,797 43,438 40,383 143,020 117,320
Provision for credit
losses 2,763 2,130 450 1,156 1,085 5,343 4,545
------- ------ ------ ------ ------- ------- -------
Net interest income
after credit loss
expense 48,086 47,244 42,347 42,282 39,298 137,677 112,775
NONINTEREST INCOME:
Service charges and
fees 2,839 2,125 2,277 1,772 2,143 7,241 5,163
Earnings on bank-owned
life insurance 786 743 677 662 649 2,206 1,818
(Loss) gain on sale of
investment securities
available-for-sale - (110) (228) 196 (480) (338) (200)
Gain on sale of SBA
loans - 44 30 - - 74 30
Other 10 (152) 351 243 205 209 937
------- ------ ------ ------ ------- ------- -------
Total noninterest
income 3,635 2,650 3,107 2,873 2,517 9,392 7,748
NONINTEREST EXPENSE:
Salaries and employee
benefits 19,560 18,179 18,341 17,018 15,679 56,080 48,098
Occupancy and equipment
expense 2,861 2,783 2,834 2,856 2,817 8,478 9,420
Legal and professional 1,254 1,927 1,431 1,587 1,037 4,612 4,043
Data processing and
network expense 1,203 1,162 1,120 1,182 1,608 3,485 4,072
Regulatory assessments 1,152 1,203 1,306 1,196 1,249 3,661 3,234
Advertising and
marketing 499 503 409 526 420 1,411 1,181
Software purchases and
maintenance 1,094 1,149 1,259 1,202 1,266 3,502 2,499
Loan operations and
other real estate
owned expense 29 439 269 189 227 737 715
Telephone and
communications 134 115 175 144 166 424 441
Other 1,106 1,386 964 1,330 1,085 3,456 3,394
Total noninterest
expense 28,892 28,846 28,108 27,230 25,554 85,846 77,097
------- ------ ------ ------ ------- ------- -------
NET INCOME BEFORE INCOME
TAX EXPENSE 22,829 21,048 17,346 17,925 16,261 61,223 43,426
Income tax expense 4,772 4,301 3,757 4,192 3,486 12,830 9,488
------- ------ ------ ------ ------- ------- -------
NET INCOME 18,057 16,747 13,589 13,733 12,775 48,393 33,938
Preferred stock
dividends declared 1,197 1,185 1,171 1,196 1,198 3,553 3,553
------- ------ ------ ------ ------- ------- -------
NET INCOME AVAILABLE TO
COMMON
SHAREHOLDERS $ 16,860 $15,562 $12,418 $ 12,537 $ 11,577 $ 44,840 $ 30,385
======= ====== ====== ====== ======= ======= =======
EARNINGS PER COMMON
SHARE:
Basic earnings per share $ 1.22 $ 1.12 $ 0.90 $ 0.92 $ 0.85 $ 3.24 $ 2.23
Diluted earnings per
share $ 1.03 $ 0.96 $ 0.78 $ 0.79 $ 0.74 $ 2.77 $ 1.99
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended Nine Months Ended
------------------------------------------------------------------------------- ----------------------------
2025 2024 2025 2024
--------------------------------------------- ---------------------------- ----------- -----------
(Dollars in thousands,
except share and per September December September September September
share data) 30 June 30 March 31 31 30 30 30
----------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Earnings per share,
basic $ 1.22 $ 1.12 $ 0.90 $ 0.92 $ 0.85 $ 3.24 $ 2.23
Earnings per share,
diluted $ 1.03 $ 0.96 $ 0.78 $ 0.79 $ 0.74 $ 2.77 $ 1.99
Dividends on common
stock $ - $ - $ - $ - $ - $ - $ -
Dividends on Series A
Convertible
Non-Cumulative
Preferred Stock $ 17.25 $ 17.06 $ 16.88 $ 17.25 $ 17.25 $ 51.19 $ 51.19
Return on average assets
$(A)$ 1.41% 1.38% 1.17% 1.13% 1.14% 1.32% 1.02%
Return on average common
equity (A) 15.14% 14.70% 12.41% 12.66% 12.12% 14.13% 11.05%
Return on average
tangible common
equity (A) $(B)$ 15.81% 15.38% 13.01% 13.29% 12.76% 14.79% 11.65%
Net interest margin (A)
(C) 4.10% 4.22% 3.80% 3.71% 3.73% 4.05% 3.65%
Efficiency ratio $(D)$ 53.03% 55.45% 61.23% 58.80% 59.57% 56.32% 61.64%
Capital Ratios
-----------------------
Third Coast Bancshares,
Inc. (consolidated):
Total common equity to
total assets 8.84% 8.70% 8.45% 7.98% 8.31% 8.84% 8.31%
Tangible common equity
to tangible
assets (B) 8.51% 8.35% 8.09% 7.63% 7.93% 8.51% 7.93%
Estimated Common equity
tier 1 (to risk
weighted
assets) 8.85% 8.75% 8.70% 8.41% 8.38% 8.85% 8.38%
Estimated Tier 1 capital
(to risk weighted
assets) 10.25% 10.20% 10.19% 9.90% 9.93% 10.25% 9.93%
Estimated Total capital
(to risk weighted
assets) 12.90% 12.87% 12.97% 12.68% 12.80% 12.90% 12.80%
Estimated Tier 1 capital
(to average
assets) 9.55% 9.65% 9.58% 9.12% 9.53% 9.55% 9.53%
Third Coast Bank:
Estimated Common equity
tier 1 (to risk
weighted
assets) 12.59% 12.56% 12.69% 12.35% 12.45% 12.59% 12.45%
Estimated Tier 1 capital
(to risk weighted
assets) 12.59% 12.56% 12.69% 12.35% 12.45% 12.59% 12.45%
Estimated Total capital
(to risk weighted
assets) 13.53% 13.46% 13.63% 13.29% 13.42% 13.53% 13.42%
Estimated Tier 1 capital
(to average
assets) 11.75% 11.89% 11.93% 11.37% 11.95% 11.75% 11.95%
Other Data
-----------------------
Weighted average
shares:
Basic 13,860,149 13,836,830 13,776,998 13,698,010 13,665,400 13,824,963 13,643,042
Diluted 17,524,288 17,391,128 17,440,826 17,394,884 17,184,991 17,452,385 17,046,640
Period end shares
outstanding 13,879,099 13,851,581 13,825,286 13,769,780 13,667,591 13,879,099 13,667,591
Book value per share $ 32.25 $ 31.04 $ 29.92 $ 28.65 $ 28.13 $ 32.25 $ 28.13
Tangible book value per
share (B) $ 30.91 $ 29.69 $ 28.56 $ 27.29 $ 26.75 $ 30.91 $ 26.75
(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
-----------------------------------------------------------------------------------------------------
September 30, 2025 June 30, 2025 September 30, 2024
--------------------------------- -------------------------------- --------------------------------
Average Interest Average Average Interest Average Average Interest Average
Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Outstanding Earned/ Yield/
(Dollars in thousands) Balance Paid(3) Rate(4) Balance Paid(3) Rate(4) Balance Paid(3) Rate(4)
------------------------- ----------- ---------- -------- ----------- ---------- ------- ----------- ---------- -------
Assets
Interest-earnings assets:
Loans, gross $ 4,179,027 $ 82,054 7.79 % $ 4,020,771 $ 79,706 7.95 % $ 3,801,954 $ 75,468 7.90 %
Investment securities
available-for-sale 410,073 6,289 6.08 % 382,439 5,505 5.77 % 300,969 4,532 5.99 %
Investment securities
held-to-maturity 206,055 2,882 5.55 % 117,407 1,607 5.49 % -- -- --
Federal funds sold and
other
interest-earning
assets 123,680 1,278 4.10 % 169,943 1,844 4.35 % 209,841 2,719 5.15 %
---------- ------ ---------- ------ ---------- ------
Total interest-earning
assets 4,918,835 92,503 7.46 % 4,690,560 88,662 7.58 % 4,312,764 82,719 7.63 %
------ ------ ------
Less: allowance for loan
losses (40,427) (40,631) (38,425)
---------- ---------- ----------
Total interest-earning
assets, net of
allowance 4,878,408 4,649,929 4,274,339
Noninterest-earning assets 213,210 210,170 195,681
---------- ---------- ----------
Total assets $ 5,091,618 $ 4,860,099 $ 4,470,020
========== ========== ==========
Liabilities and
Shareholders' Equity
Interest-bearing
liabilities:
Interest-bearing deposits $ 3,892,726 $ 39,030 3.98 % $ 3,766,801 $ 37,535 4.00 % $ 3,383,897 $ 40,407 4.75 %
Note payable and line of
credit 113,560 1,754 6.13 % 111,712 1,719 6.17 % 113,536 1,853 6.49 %
FHLB advances 73,476 870 4.70 % 2,916 34 4.68 % 5,757 76 5.25 %
---------- ------ ---------- ------ ---------- ------
Total interest-bearing
liabilities 4,079,762 41,654 4.05 % 3,881,429 39,288 4.06 % 3,503,190 42,336 4.81 %
------ ------ ------
Noninterest-bearing
deposits 453,980 431,144 457,451
Other liabilities 49,842 56,785 63,255
---------- ---------- ----------
Total liabilities 4,583,584 4,369,358 4,023,896
Shareholders' equity 508,034 490,741 446,124
---------- ---------- ----------
Total liabilities and
shareholders'
equity $ 5,091,618 $ 4,860,099 $ 4,470,020
========== ========== ==========
Net interest income $ 50,849 $ 49,374 $ 40,383
====== ====== ======
Net interest spread (1) 3.41 % 3.52 % 2.82 %
Net interest margin (2) 4.10 % 4.22 % 3.73 %
(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)
Nine Months Ended
---------------------------------------------------------------
September 30, 2025 September 30, 2024
------------------------------- ------------------------------
Average Interest Average Average Interest Average
Outstanding Earned/ Yield/ Outstanding Earned/ Yield/
(Dollars in thousands) Balance Paid(3) Rate(4) Balance Paid(3) Rate(4)
----------------------- ----------- -------- -------- ----------- -------- -------
Assets
Interest-earnings
assets:
Loans, gross $ 4,060,615 $234,847 7.73 % $ 3,736,200 $219,242 7.84 %
Investment securities
available-for-sale 396,919 17,487 5.89 % 267,091 12,116 6.06 %
Investment securities
held-to-maturity 108,575 4,489 5.53 % -- -- --
Federal funds sold and
other interest-earning
assets 159,941 5,108 4.27 % 290,011 11,462 5.28 %
---------- ------- ---------- -------
Total
interest-earning
assets 4,726,050 261,931 7.41 % 4,293,302 242,820 7.55 %
------- -------
Less: allowance for loan
losses (40,550) (38,045)
---------- ----------
Total interest-earning
assets, net of
allowance 4,685,500 4,255,257
Noninterest-earning
assets 207,355 194,650
---------- ----------
Total assets $ 4,892,855 $ 4,449,907
========== ==========
Liabilities and
Shareholders' Equity
Interest-bearing
liabilities:
Interest-bearing
deposits $ 3,771,393 $112,791 4.00 % $ 3,380,790 $119,515 4.72 %
Note payable and line
of credit 112,318 5,186 6.17 % 118,547 5,909 6.66 %
FHLB advances and
other 26,574 934 4.70 % 1,933 76 5.25 %
---------- ------- ---------- -------
Total
interest-bearing
liabilities 3,910,285 118,911 4.07 % 3,501,270 125,500 4.79 %
------- -------
Noninterest-bearing
deposits 436,412 452,411
Other liabilities 55,754 62,753
---------- ----------
Total liabilities 4,402,451 4,016,434
Shareholders' equity 490,404 433,473
---------- ----------
Total liabilities
and shareholders'
equity $ 4,892,855 $ 4,449,907
========== ==========
Net interest income $143,020 $117,320
======= =======
Net interest spread (1) 3.34 % 2.76 %
Net interest margin (2) 4.05 % 3.65 %
(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
------------------------------------------ --------------------------
September December September
(Dollars in thousands) 30 June 30 March 31 31 30
----------------------- ---------- ---------- ---------- ---------- ----------
Period-end Loan
Portfolio:
Real estate loans:
Commercial real
estate:
Non-farm
non-residential owner
occupied $ 408,996 $ 423,959 $ 420,902 $ 448,134 $ 470,222
Non-farm
non-residential
non-owner occupied 687,924 666,840 633,227 652,119 611,617
Residential 334,583 323,898 335,285 336,736 339,558
Construction,
development & other 826,566 784,364 846,166 871,373 825,302
Farmland 25,549 28,013 30,783 30,915 35,650
Commercial & industrial 1,772,045 1,724,583 1,605,243 1,497,408 1,499,302
Consumer 1,291 1,206 1,443 1,859 2,002
Municipal and other 108,162 126,873 114,990 127,881 106,178
--------- --------- --------- --------- ---------
Total loans $4,165,116 $4,079,736 $3,988,039 $3,966,425 $3,889,831
========= ========= ========= ========= =========
Asset Quality:
Nonaccrual loans $ 10,723 $ 13,358 $ 17,066 $ 26,773 $ 23,522
Loans > 90 days and
still accruing 11,016 6,755 1,503 1,173 522
--------- --------- --------- --------- ---------
Total nonperforming
loans 21,739 20,113 18,569 27,946 24,044
Other real estate owned 8,388 8,580 8,752 862 283
Total nonperforming
assets $ 30,127 $ 28,693 $ 27,321 $ 28,808 $ 24,327
========= ========= ========= ========= =========
QTD Net (recoveries)
charge-offs $ (17) $ 2,376 $ 398 $ 879 $ (57)
Nonaccrual loans:
Real estate loans:
Commercial real
estate:
Non-farm
non-residential owner
occupied $ 1,237 $ 2,191 $ 3,100 $ 10,433 $ 9,696
Non-farm
non-residential
non-owner occupied 111 111 - - 68
Residential 214 637 2,616 2,226 2,664
Construction,
development & other 6 344 358 400 1
Commercial & industrial 9,155 10,075 10,992 13,714 11,093
Total nonaccrual loans $ 10,723 $ 13,358 $ 17,066 $ 26,773 $ 23,522
========= ========= ========= ========= =========
Asset Quality Ratios:
Nonperforming assets to
total assets 0.60% 0.58% 0.56% 0.58% 0.53%
Nonperforming loans to
total loans 0.52% 0.49% 0.47% 0.70% 0.62%
Allowance for credit
losses to total loans 1.02% 0.98% 1.01% 1.02% 1.02%
QTD Net (recoveries)
charge-offs to average
loans
(annualized) (0.00)% 0.24% 0.04% 0.09% (0.01)%
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:
-- Tangible Common Equity. The most directly comparable GAAP financial
measure for tangible common equity is total shareholders' equity. We
believe that this measure is important to many investors in the
marketplace who are interested in the relative changes from period to
period of tangible common equity.
-- Tangible Book Value Per Share. The most directly comparable GAAP
financial measure for tangible book value per share is book value per
share. We believe that the tangible book value per share measure is
important to many investors in the marketplace who are interested in
changes from period to period in book value per share exclusive of
changes in intangible assets. Goodwill and other intangible assets have
the effect of increasing total book value while not increasing our
tangible book value.
-- Tangible Common Equity to Tangible Assets. The most directly comparable
GAAP financial measure for tangible common equity is total shareholders'
equity, the most directly comparable GAAP financial measure for tangible
assets is total assets, and the most directly comparable GAAP financial
measure for tangible common equity to tangible assets is total
shareholders' equity to total assets. We believe that this measure is
important to many investors in the marketplace who are interested in the
relative changes from period to period of tangible common equity to
tangible assets, each exclusive of changes in intangible assets. Goodwill
and other intangible assets have the effect of increasing both total
shareholders' equity and assets while not increasing our tangible common
equity or tangible assets.
-- Return on Average Tangible Common Equity. The most directly comparable
GAAP financial measure for average tangible common equity is average
shareholders' equity, and the most directly comparable GAAP financial
measure for return on average tangible common equity is return on average
common equity. We believe that this measure is important to many
investors in the marketplace who are interested in the relative changes
from period to period of return on average tangible common equity,
exclusive of changes in intangible assets. Goodwill and other intangible
assets have the effect of increasing average shareholders' equity while
not increasing our tangible common equity.
The calculations of these non-GAAP financial measures are as follows:
Three Months Ended Nine Months Ended
------------------------------------------------------------------------------- ----------------------------
2025 2024 2025 2024
--------------------------------------------- ---------------------------- ----------- -----------
(Dollars in thousands,
except share and per September December September September September
share data) 30 June 30 March 31 31 30 30 30
----------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Tangible Common Equity:
Total shareholders'
equity $ 513,830 $ 496,115 $ 479,786 $ 460,719 $ 450,548 $ 513,830 $ 450,548
Less: Preferred stock
including additional
paid in
capital 66,160 66,160 66,160 66,160 66,117 66,160 66,117
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total common equity 447,670 429,955 413,626 394,559 384,431 447,670 384,431
Less: Goodwill and core
deposit intangibles,
net 18,720 18,761 18,801 18,841 18,882 18,720 18,882
---------- ---------- ---------- ---------- ---------- ---------- ----------
Tangible common equity $ 428,950 $ 411,194 $ 394,825 $ 375,718 $ 365,549 $ 428,950 $ 365,549
========== ========== ========== ========== ========== ========== ==========
Common shares
outstanding at end of
period 13,879,099 13,851,581 13,825,286 13,769,780 13,667,591 13,879,099 13,667,591
Book Value Per Share $ 32.25 $ 31.04 $ 29.92 $ 28.65 $ 28.13 $ 32.25 $ 28.13
Tangible Book Value Per
Share $ 30.91 $ 29.69 $ 28.56 $ 27.29 $ 26.75 $ 30.91 $ 26.75
Tangible Assets:
Total assets $ 5,061,808 $ 4,943,771 $ 4,896,989 $ 4,942,446 $ 4,627,770 $ 5,061,808 $ 4,627,770
Adjustments: Goodwill
and core deposit
intangibles,
net 18,720 18,761 18,801 18,841 18,882 18,720 18,882
---------- ---------- ---------- ---------- ---------- ---------- ----------
Tangible assets $ 5,043,088 $ 4,925,010 $ 4,878,188 $ 4,923,605 $ 4,608,888 $ 5,043,088 $ 4,608,888
========== ========== ========== ========== ========== ========== ==========
Total Common Equity to
Total Assets 8.84% 8.70% 8.45% 7.98% 8.31% 8.84% 8.31%
Tangible Common Equity
to Tangible Assets 8.51% 8.35% 8.09% 7.63% 7.93% 8.51% 7.93%
Average Tangible Common
Equity:
Average shareholders'
equity $ 508,034 $ 490,741 $ 472,041 $ 460,169 $ 446,124 $ 490,404 $ 433,473
Less: Average preferred
stock including
additional paid
in capital 66,160 66,160 66,160 66,121 66,223 66,160 66,224
---------- ---------- ---------- ---------- ---------- ---------- ----------
Average common equity 441,874 424,581 405,881 394,048 379,901 424,244 367,249
Less: Average goodwill
and core deposit
intangibles,
net 18,746 18,784 18,826 18,865 18,906 18,785 18,946
---------- ---------- ---------- ---------- ---------- ---------- ----------
Average tangible common
equity $ 423,128 $ 405,797 $ 387,055 $ 375,183 $ 360,995 $ 405,459 $ 348,303
========== ========== ========== ========== ========== ========== ==========
Net Income $ 18,057 $ 16,747 $ 13,589 $ 13,733 $ 12,775 $ 48,393 $ 33,938
Less: Dividends
declared on preferred
stock 1,197 1,185 1,171 1,196 1,198 3,553 3,553
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Income Available to
Common Shareholders $ 16,860 $ 15,562 $ 12,418 $ 12,537 $ 11,577 $ 44,840 $ 30,385
========== ========== ========== ========== ========== ========== ==========
Return on Average Common
Equity(A) 15.14% 14.70% 12.41% 12.66% 12.12% 14.13% 11.05%
Return on Average
Tangible Common
Equity(A) 15.81% 15.38% 13.01% 13.29% 12.76% 14.79% 11.65%
(A) Interim periods annualized.
Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
(713) 529-6600
TCBX@dennardlascar.com
View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-2025-third-quarter-financial-results-302591876.html
SOURCE Third Coast Bancshares
(END) Dow Jones Newswires
October 22, 2025 16:15 ET (20:15 GMT)