THIRD COAST BANCSHARES, INC. REPORTS STRONG FIRST QUARTER 2022 FINANCIAL RESULTS

Strong First Quarter Loan & Deposit Growth Exceed Plan

HUMBLE, Texas, April 28, 2022 /PRNewswire/ -- Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the "Company" or "Third Coast"), the bank holding company for Third Coast Bank, SSB, today reported its 2022 first quarter financial results.

First Quarter 2022 Financial and Operational Highlights

  • Loans held for investment grew $379.2 million to $2.45 billion, or 18.3% over the fourth quarter of 2021 and a 44.6% increase over the first quarter of 2021.
  • Noninterest-bearing demand deposits reached $931.6 million, representing 36.0% of total deposits, and increased $400.2 million, or 75.3% over the fourth quarter of 2021, and increased $518.7 million, or 125.6% over the first quarter of 2021.
  • Book value per share and tangible book value per share(1) increased to $22.40 and $20.97, respectively, at March 31, 2022.
  • Acted as lead arranger and administrative agent bank for the successful closing of our first syndication of over $100 million made up of a revolving line of credit and term loan facilities in the industrial equipment rental industry, bringing in five financial institutions to take part as lenders of the syndicate.
  • Completed $82.3 million notes offering. The fixed-to-floating rate subordinated notes mature April 1, 2032, and initially bear interest at a fixed annual rate of 5.5%.
  • Opened our 13th de novo branch location in Fort Worth, Texas in February 2022.

"Third Coast delivered another outstanding quarter of strong financial and operational results, as we continue to pivot away from extraordinary pandemic-related activities and refocus our efforts towards our strategic growth plan," stated Bart Caraway, Third Coast's Chairman, President and Chief Executive Officer. "Our asset-sensitive balance sheet produced exceptional growth in the first quarter, with total deposits increasing 42.7% over the prior year quarter and total loans held for investment growing by 44.6% in that same comparable period in 2021.  First quarter loan growth was primarily driven by our Specialty Finance and Corporate Banking groups. Notably, despite first quarter loan growth of 18.3% from year end December 31, 2021, our noninterest expense remained flat for the quarter compared to the fourth quarter 2021.

"During the quarter, we were pleased to successfully complete our first loan syndicate as lead arranger and administrative agent. Third Coast Bank's first syndication is a major milestone, conveying a strong endorsement of our ability to raise senior debt in the capital market and enhancing the diversification of our financing sources. We expect the loan syndicate made up of a revolving line of credit and term loan facilities will help to further develop our presence and promote additional opportunities in the industrial equipment market.

"In addition to excellent credit quality, a hallmark of our bank is our stable, high-quality, and low-cost deposit base, reflecting the financial strength of our borrowers. We believe that Third Coast's team-based, relationship-oriented approach to banking, coupled with strong treasury management products and services, will allow us to build on our deposit mix and foster new sources of low-cost, core deposits. 

"As a rapidly growing private - and now publicly traded - financial institution, we are committed to pursuing strategic opportunities and establishing our reputation as one of the preeminent Texas-based banks. Benefiting from market disruption, we have been able to attract and recruit extremely talented lenders. The success of these lending teams is fueling profitability and providing new market opportunities. Due to their hard work and continued efforts to bring new customers into the Bank, we expect future growth within each of our Community, Corporate, and Specialty Finance business lines.

"Looking ahead, we are excited about the operating leverage and consequential earnings power we expect to generate. We continue to advance our internal infrastructure, including our platforms and processes in anticipation of future growth. We are optimistic about 2022, believing that our current momentum in the very strong urban markets of Texas puts us in a position to realize significant organic growth in revenue and earnings per share. We believe that Third Coast is well positioned to achieve higher profitability and to create additional shareholder value," concluded Caraway.

Loan Portfolio and Composition

During the first quarter of 2022, gross loans increased to $2.45 billion as of March 31, 2022, an increase of 18.3% from $2.07 billion as of December 31, 2021, and an increase of 44.6% from $1.69 billion as of March 31, 2021. PPP loans declined to $26.7 million at March 31, 2022 from $81.6 million at December 31, 2021. Excluding the effect of PPP loan forgiveness, the loan portfolio as of March 31, 2022 increased by $434.1 million, or 21.9% from quarter to quarter, or 87.4% annualized, from December 31, 2021. The loan growth was well diversified with Real Estate loans up $222.2 million and Commercial loans up $144.7 million from December 31, 2021.

Asset Quality

Asset quality improved during the first quarter of 2022 with non-performing assets declining $4.9 million, or 28.3%, from the fourth quarter of 2021. Improvement was primarily the result of a decline in restructured loans.  The provision for loan losses recorded for the first quarter of 2022 was $4.0 million, which served to increase the allowance to $23.3 million, or 0.95% of the $2.45 billion in gross loans outstanding as of March 31, 2022. Provision expense for the first quarter of 2022 related primarily to provisioning for new loans.

As of March 31, 2022, the nonperforming loans to loans held for investment ratio remains low at 0.44%, which decreased from 0.75% at December 31, 2021 and 0.75% at March 31, 2021. During the three months ended March 31, 2022 and 2021, charge-offs and recoveries were minimal, representing a net recovery of $17,000 and a net charge-off of $8,000, respectively.

Deposits and Composition

Deposits totaled $2.59 billion as of March 31, 2022, an increase of 20.8% from $2.14 billion as of December 31, 2021, and an increase of 42.7% from $1.81 billion as of March 31, 2021. Noninterest-bearing demand deposits increased $400.2 million, or 75.3%, from December 31, 2021, and increased $518.7 million, or 125.6%, from March 31, 2021. Noninterest-bearing demand deposits represented 36.0% of total deposits as of March 31, 2022, up from 24.8% of total deposits as of December 31, 2021, and 22.8% of total deposits as of March 31, 2021.  Interest-bearing demand deposits as of March 31, 2022 increased $52.3 million, or 4.0%, from December 31, 2021 and savings accounts as of March 31, 2022 increased $1.3 million, or 3.8%, from December 31, 2021, due to our success in retaining and growing client relationships. These increases were partially offset by a decrease in time deposits of $7.8 million, or 2.8%. The average cost of deposits was 0.33% for the first quarter of 2022, representing a 7 basis point decrease from the fourth quarter of 2021 and a 23 basis point decrease from the first quarter of 2021. The decrease in average cost of deposits was due primarily to the significant increase in noninterest-bearing demand deposits.

Net Interest Margin and Net Interest Income

The net interest margin for the first quarter of 2022 was 4.09%, a decrease of 69 basis points from the fourth quarter of 2021 and a decrease of 88 basis points from the first quarter of 2021. The yield on loans for the first quarter of 2022 was 4.90% compared to 5.86% at December 31, 2021. The decrease was primarily due to a reduction from the fourth quarter of 2021 of $968,000 in loan fees, $1.1 million in PPP fees, and $1.0 million in PCI accretion.

Net interest income totaled $25.2 million for the first quarter of 2022, an increase of 2.4% from $24.6 million for the fourth quarter of 2021. Interest income totaled $27.2 million for the first quarter of 2022, an increase of 2.0% from $26.7 million for the fourth quarter of 2021. Interest and fees on loans increased $456,000, or 1.7%, compared to the fourth quarter of 2021, and increased by $1.5 million, or 5.9%, from the first quarter of 2021.  Interest expense was $2.0 million for each of the first quarter of 2022 and the fourth quarter of 2021 and a decrease of 32.1% from $2.9 million for the first quarter of 2021.

Noninterest Income and Noninterest Expense

Noninterest income totaled $1.7 million for the first quarter of 2022, compared to $2.1 million for the fourth quarter of 2021. This decrease was primarily due to $411,000 gain on sale of the guaranteed portion of SBA loans sold in the fourth quarter of 2021 and no sales of the guaranteed portion of SBA loans in the first quarter of 2022.

Noninterest expense totaled $20.2 million in the first quarter of 2022, an increase of 0.5% from $20.1 million in the fourth quarter of 2021, which was primarily due to increases in occupancy and network expenses related to the opening of our 13th branch and the new administrative office space leased to accommodate the increase in employees. We also incurred additional professional expenses related to required regulatory filings resulting from our IPO in the fourth quarter of 2021 and additional legal fees related to potential new products and services. The additional expenses were offset by a decrease in salary and employee benefits expense due to several large signing bonuses that were paid in the fourth quarter 2021. The employee headcount increased from 334 as of December 31, 2021 to 339 as of March 31, 2022.

The efficiency ratio was 75.09% in the first quarter of 2022, compared to 75.31% in the fourth quarter of 2021, and 66.12% in the first quarter of 2021. The slight improvement in the efficiency ratio from the fourth quarter of 2021 was due to the increase in interest and fees on loans.   

Net Income and Earnings Per Share

Net income totaled $2.1 million for the first quarter of 2022, compared to $354,000 for the fourth quarter of 2021. Basic earnings per share and diluted earnings per share increased to $0.16 per share and $0.15 per share, respectively, in the first quarter of 2022 from $0.03 per share and $0.03 per share, respectively, in the fourth quarter of 2021. The increases were primarily a result of the decrease in the provision for loan loss expense recorded in the first quarter 2022 as compared to the fourth quarter of 2021 due to a reduction in the factor related to COVID-19 in the allowance for loan loss methodology which management uses to evaluate the adequacy of the reserve for loan losses and determine the necessary provision.

_______________________________

(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 press release for a reconciliation of these non-GAAP financial measures.

Earnings Conference Call

Third Coast has scheduled a conference call to discuss first quarter 2022 results, which will be broadcast live over the Internet, on Friday, April 29, 2022 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 call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.tcbssb.com/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through May 5, 2022 and may be accessed by dialing 201-612-7415 and using passcode 13729245#. Also, an archive of the webcast will be available shortly  after the call at  https://ir.tcbssb.com/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, SSB. Founded in 2008 in Humble, Texas, Third Coast Bank, SSB conducts banking operations through 13 branches and one loan production office encompassing the four largest metropolitan areas in Texas. Please visit https://www.tcbssb.com 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.  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," "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: the impact of COVID-19 on our business, including the impact of the actions taken by governmental authorities to try and contain the virus or address the impact of the virus on the United States economy; interest rate risk and fluctuations in interest rates; our ability to maintain our largest deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; changes in key management personnel; credit risk associated with our business; and other market conditions and economic trends generally and in the banking industry. 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, 2021 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 Book Value Per Share and Tangible Common Equity to Tangible Assets Ratio," 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.

Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
(713) 529-6600
TCBX@dennardlascar.com

 

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)




2022



2021


(Dollars in thousands)


March 31



December 31



September 30



June 30



March 31


ASSETS
















Cash and cash equivalents:
















     Cash and due from banks


$

369,782



$

326,733



$

359,888



$

352,544



$

238,107


     Federal funds sold



1,538




292




696




1,228




741


          Total cash and cash equivalents



371,320




327,025




360,584




353,772




238,848


















Interest bearing time deposits in other banks



132




131




131




131




131


Investment securities available-for-sale



126,218




26,432




26,431




25,991




24,680


Loans held for investment



2,447,945




2,068,724




1,612,394




1,551,722




1,692,806


     Less:  allowance for loan and lease loss



(23,312)




(19,295)




(15,571)




(13,394)




(13,471)


          Loans, net



2,424,633




2,049,429




1,596,823




1,538,328




1,679,335


Accrued interest receivable



12,648




10,228




10,238




11,350




13,375


Premises and equipment, net



20,846




19,045




18,364




15,859




15,154


Other real estate owned



1,666




1,676




1,676




1,686




3,066


Bank-owned life insurance



26,671




26,528




26,382




26,237




26,088


Non-marketable securities, at cost



11,327




7,527




10,905




8,032




4,424


Deferred tax asset, net



4,258




4,123




4,456




3,836




3,903


Core Deposit Intangible, net



1,252




1,292




1,332




1,373




1,413


Goodwill



18,034




18,034




18,034




18,034




18,034


Other assets



21,383




7,942




6,815




8,671




5,365


     Total assets


$

3,040,388



$

2,499,412



$

2,082,171



$

2,013,300



$

2,033,816


















LIABILITIES
















Deposits:
















     Noninterest bearing


$

931,622



$

531,401



$

364,418



$

374,942



$

412,932


     Interest bearing



1,655,547




1,609,798




1,451,533




1,408,326




1,400,262


          Total deposits



2,587,169




2,141,199




1,815,951




1,783,268




1,813,194


















Accrued interest payable



387




437




477




866




896


Other liabilities



20,122




7,769




8,291




7,845




8,056


FHLB advances



50,000




50,000




50,250




50,000




50,000


Note Payable - Line of Credit



1,000




1,000




1,000




20,500




20,500


Note Payable - Subordinated Debentures



80,507




-




-




13,000




13,000


     Total liabilities



2,739,185




2,200,405




1,875,969




1,875,479




1,905,646


















Commitments and contingencies - ESOP-owned shares



-




-




2,060




1,876




1,778


















SHAREHOLDERS' EQUITY
















Common stock



13,524




13,482




9,387




6,647




6,402


Additional paid-in capital



249,775




249,202




160,725




97,821




92,254


Retained earnings



38,116




36,029




35,675




33,290




29,701


Accumulated other comprehensive income



887




1,393




1,394




1,042




792


Treasury stock, at cost



(1,099)




(1,099)




(979)




(979)




(979)





301,203




299,007




206,202




137,821




128,170


Less:  ESOP-owned shares



-




-




(2,060)




(1,876)




(1,778)


     Total shareholders' equity



301,203




299,007




204,142




135,945




126,392


     Total liabilities and shareholders' equity


$

3,040,388



$

2,499,412



$

2,082,171



$

2,013,300



$

2,033,816


 

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)




Three Months Ended



Year Ended





2022



2021



2021



(Dollars in thousands, except per share data)


March 31



December 31



September 30



June 30



March 31



December 31



INTEREST INCOME:




















     Loans, including fees


$

26,682



$

26,226



$

23,940



$

23,522



$

25,198



$

98,886



     Investment securities available-for-sale



276




265




265




261




252




1,043



     Federal funds sold and other



226




169




194




148




175




686



          Total interest income



27,184




26,660




24,399




23,931




25,625




100,615























INTEREST EXPENSE:




















     Deposit accounts



1,844




1,913




2,023




2,213




2,377




8,526



     FHLB advances and notes payable



130




128




374




504




530




1,536



          Total interest expense



1,974




2,041




2,397




2,717




2,907




10,062























Net interest income



25,210




24,619




22,002




21,214




22,718




90,553























Provision for loan losses



4,000




6,100




2,323




-




1,500




9,923























Net interest income after provision for loan losses



21,210




18,519




19,679




21,214




21,218




80,630























NONINTEREST INCOME:




















     Service charges and fees



619




566




559




770




472




2,367



     Gain on sale of SBA loans



-




411




175




-




-




586



     Other



1,047




1,078




230




339




278




1,925



          Total noninterest income



1,666




2,055




964




1,109




750




4,878























NONINTEREST EXPENSE:




















     Salaries and employee benefits



13,324




14,029




12,138




12,512




9,963




48,642



     Data processing and network expense



922




786




844




820




610




3,060



     Occupancy and equipment expense



1,873




1,557




1,419




1,195




1,196




5,367



     Legal and professional



1,746




1,450




1,164




1,564




1,115




5,293



     Loan operations and other real estate owned expense



278




275




495




170




1,023




1,963



     Advertising and marketing



427




657




422




406




404




1,889



     Telephone and communications



100




115




119




168




193




595



     Software purchases and maintenance



198




248




261




192




151




852



     Regulatory assessments



645




506




252




294




49




1,101



     Loss (gain) on sale of other real estate owned



-




-




-




(31)




375




344



     Other



668




464




527




489




439




1,919



          Total noninterest expense



20,181




20,087




17,641




17,779




15,518




71,025























NET INCOME BEFORE INCOME TAX EXPENSE



2,695




487




3,002




4,544




6,450




14,483























Income tax expense



608




133




617




955




1,354




3,059























NET INCOME


$

2,087



$

354



$

2,385



$

3,589



$

5,096



$

11,424























EARNINGS PER COMMON SHARE:




















Basic earnings per share


$

0.16



$

0.03



$

0.29



$

0.57



$

0.81



$

1.45



Diluted earnings per share


$

0.15



$

0.03



$

0.28



$

0.55



$

0.80



$

1.40



 

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)




Three Months Ended



Year Ended




2022



2021



2021


(Dollars in thousands, except share and per share data)


March 31



December 31



September 30



June 30



March 31



December 31


Net Income


$

2,087



$

354



$

2,385



$

3,589



$

5,096



$

11,424








































Earnings per share, basic


$

0.16



$

0.03



$

0.29



$

0.57



$

0.81



$

1.45


Earnings per share, diluted


$

0.15



$

0.03



$

0.28



$

0.55



$

0.80



$

1.40


Dividends per share


$

-



$

-



$

-



$

-



$

-



$

-





















Return on average assets (A)



0.32

%



0.06

%



0.46

%



0.71

%



1.06

%



0.55

%

Return on average equity (A)



2.81

%



0.55

%



5.41

%



11.45

%



16.81

%



6.70

%

Net interest margin (A) (C)



4.09

%



4.78

%



4.49

%



4.39

%



4.97

%



4.65

%

Efficiency ratio (D)



75.09

%



75.31

%



76.81

%



79.64

%



66.12

%



74.43

%




















Capital Ratios



















Third Coast Bancshares, Inc. (consolidated):



















Total shareholders' equity to total assets



9.91

%



11.96

%



9.90

%



6.85

%



6.30

%



11.96

%

Tangible common equity to tangible assets (B)



9.33

%



11.28

%



9.06

%



5.94

%



5.40

%



11.28

%




















Third Coast Bank, SSB:



















Common equity tier 1 (to risk weighted assets)



12.35

%



12.63

%



11.89

%



11.24

%



11.76

%



12.63

%

Tier 1 capital (to risk weighted assets)



12.35

%



12.63

%



11.89

%



11.24

%



11.76

%



12.63

%

Total capital (to risk weighted assets)



13.16

%



13.54

%



12.96

%



12.32

%



12.93

%



13.54

%

Tier 1 capital (to average assets)



13.66

%



12.27

%



8.39

%



6.93

%



7.01

%



12.27

%




















Other Data



















Weighted average shares:



















     Basic



13,385,324




10,724,545




8,099,878




6,339,850




6,280,855




7,874,110


     Diluted



13,755,026




11,156,037




8,448,112




6,535,163




6,364,672




8,138,824


Period end shares outstanding



13,445,782




13,403,324




9,313,929




6,573,684




6,328,802




13,403,324


Book value per share


$

22.40



$

22.31



$

22.14



$

20.97



$

20.25



$

22.31


Tangible book value per share (B)


$

20.97



$

20.87



$

20.06



$

18.01



$

17.18



$

20.87



__________

(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 on page 11 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 loan losses are not part of this calculation.

 

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)




Three Months Ended




March 31, 2022



December 31, 2021



March 31, 2021


(Dollars in thousands)


Average
Outstanding
Balance



Interest
Earned/
Paid(3)



Average
Yield/
Rate



Average
Outstanding
Balance



Interest
Earned/
Paid(3)



Average
Yield/
Rate



Average
Outstanding
Balance



Interest
Earned/
Paid(3)



Average
Yield/
Rate


Assets




























Interest-earnings assets:




























     Investment securities


$

28,170



$

276




3.97

%


$

42,677



$

265




2.46

%


$

25,181



$

252




4.06

%

     Loans, gross



2,208,462




26,682




4.90

%



1,774,294




26,226




5.86

%



1,604,107




25,198




6.37

%

     Federal funds sold and other interest-earning assets



260,275




226




0.35

%



226,197




169




0.30

%



225,850




175




0.31

%

          Total interest-earning assets



2,496,907




27,184




4.42

%



2,043,168




26,660




5.18

%



1,855,138




25,625




5.60

%

Less allowance for loan losses



(20,395)










(17,130)










(12,626)








Total interest-earning assets, net of allowance



2,476,512










2,026,038










1,842,512








Noninterest-earning assets



150,871










187,770










101,177








          Total assets


$

2,627,383









$

2,213,808









$

1,943,689




































Liabilities and Shareholders' Equity




























Interest-bearing liabilities:




























     Interest-bearing deposits


$

1,640,273



$

1,844




0.46

%


$

1,485,059



$

1,913




0.51

%


$

1,356,885



$

2,377




0.71

%

     Notes payable



1,891




23




4.93

%



1,126




11




3.88

%



33,783




423




5.08

%

     FHLB advances



50,000




107




0.87

%



66,315




117




0.70

%



53,911




107




0.80

%

          Total interest-bearing liabilities



1,692,164




1,974




0.47

%



1,552,500




2,041




0.52

%



1,444,579




2,907




0.82

%

Noninterest-bearing deposits



620,900










392,955










368,413








Other liabilities



12,782










10,770










7,726








          Total liabilities



2,325,846










1,956,225










1,820,718








Shareholders' equity



301,537










257,583










122,971








          Total liabilities and shareholders' equity


$

2,627,383









$

2,213,808









$

1,943,689








Net interest income





$

25,210









$

24,619









$

22,718





Net interest spread (1)









3.95

%









4.66

%









4.78

%

Net interest margin (2)









4.09

%









4.78

%









4.97

%


__________

(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. 

 

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)




Three Months Ended





2022



2021



(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


$

477,573



$

383,941



$

361,467



$

361,217



$

359,416



          Non-farm non-residential non-owner occupied



463,618




445,308




345,360




286,533




276,174



     Residential



225,649




213,264




179,971




165,890




137,201



     Construction, development & other



414,653




320,335




124,548




80,400




85,398



     Farmland



13,467




9,934




8,309




6,011




5,164



Commercial & industrial



756,005




611,348




538,551




612,306




792,270



Consumer



3,304




4,001




4,417




4,499




4,627



Other



93,676




80,593




49,771




34,866




32,556



          Total loans


$

2,447,945



$

2,068,724



$

1,612,394



$

1,551,722



$

1,692,806




















Asset Quality:

















Nonaccrual loans


$

9,896



$

10,030



$

11,077



$

5,158



$

5,761



Loans > 90 days and still accruing



40




278




561




184




1,009



Restructured loans--accruing



790




5,295




5,319




5,924




5,946



          Total nonperforming loans


$

10,726



$

15,603



$

16,957



$

11,266



$

12,716



Other real estate owned



1,666




1,676




1,676




1,686




3,066



          Total nonperforming assets


$

12,392



$

17,279



$

18,633



$

12,952



$

15,782




















QTD Net charge-offs (recoveries)


$

(17)



$

2,376



$

146



$

77



$

8




















Nonaccrual loans:

















Real estate loans:

















     Commercial real estate:

















          Non-farm non-residential owner occupied


$

986



$

1,008



$

1,032



$

1,058



$

1,081



          Non-farm non-residential non-owner occupied



334




346




353




365




375



     Residential



121




127




133




76




80



     Construction, development & other



238




244




251




257




261



     Farmland



-




-




-




-




-



Commercial & industrial



8,210




8,297




9,162




3,227




3,810



Consumer



-




-




-




-




-



Other



-




-




-




-




24



Purchased credit impaired



7




8




146




175




130



          Total nonaccrual loans


$

9,896



$

10,030



$

11,077



$

5,158



$

5,761




















Asset Quality Ratios:

















Nonperforming assets to total assets



0.41

%



0.69

%



0.89

%



0.64

%



0.78

%


Nonperforming loans to total loans



0.44

%



0.75

%



1.05

%



0.73

%



0.75

%


Allowance for loan losses to total loans



0.95

%



0.93

%



0.97

%



0.86

%



0.80

%


QTD Net charge-offs(recoveries) to average loans (annualized)



0.00

%



0.53

%



0.04

%



0.02

%



0.00

%


 

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 Book Value Per Share and Tangible Common Equity to Tangible Assets Ratio" 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.



Three Months Ended



Year Ended




2022



2021



2021


(Dollars in thousands, except per share data)


March 31



December 31



September 30



June 30



March 31



December 31


Tangible Common Equity:



















     Total shareholders' equity


$

301,203



$

299,007



$

206,202



$

137,821



$

128,170



$

299,007


     Less:  Goodwill and core deposit intangibles, net



19,286




19,326




19,366




19,407




19,447




19,326


     Tangible shareholders' equity


$

281,917



$

279,681



$

186,836



$

118,414



$

108,723



$

279,681





















     Common shares outstanding at end of period



13,445,782




13,403,324




9,313,929




6,573,684




6,328,802




13,403,324


Book Value Per Share


$

22.40



$

22.31



$

22.14



$

20.97



$

20.25



$

22.31


Tangible Book Value Per Share


$

20.97



$

20.87



$

20.06



$

18.01



$

17.18



$

20.87








































Tangible Assets:



















     Total assets


$

3,040,388



$

2,499,412



$

2,082,171



$

2,013,300



$

2,033,816



$

2,499,412


     Adjustments:  Goodwill and core deposit intangibles, net



19,286




19,326




19,366




19,407




19,447




19,326


     Tangible assets


$

3,021,102



$

2,480,086



$

2,062,805



$

1,993,893



$

2,014,369



$

2,480,086





















Total Shareholders' Equity to Total Assets



9.91

%



11.96

%



9.90

%



6.85

%



6.30

%



11.96

%

Tangible Common Equity to Tangible Assets



9.33

%



11.28

%



9.06

%



5.94

%



5.40

%



11.28

%

 

Cision View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-strong-first-quarter-2022-financial-results-301535759.html

SOURCE Third Coast Bancshares

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