THIRD COAST BANCSHARES, INC. REPORTS THIRD QUARTER 2022 FINANCIAL RESULTS
Record Quarterly Net Income and Net Interest Income
HUMBLE, Texas, Oct. 26, 2022 /PRNewswire/ -- Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the "Company", "Third Coast", "we", "us", or "our"), the bank holding company for Third Coast Bank, SSB, today reported its third quarter 2022 financial results.
Third Quarter 2022 Financial and Operational Highlights
- Loans held for investment grew $223.7 million to $2.97 billion as of September 30, 2022, or 8.1%, over the $2.75 billion reported as of June 30, 2022, and increased $1.36 billion, or 84.4%, over the $1.61 billion reported as of September 30, 2021.
- Deposits reached $2.98 billion as of September 30, 2022, an increase of $86.1 million, or 3.0%, over the $2.90 billion reported as of June 30, 2022, and $1.17 billion, or 64.3%, over the $1.82 billion reported as of September 30, 2021. Noninterest-bearing deposits declined $2.3 million to $517.3 million and represent 17.3% of total deposits as of September 30, 2022.
- Total assets reached $3.52 billion as of September 30, 2022, an increase of $158.8 million, or 4.7%, over the $3.36 billion reported as of June 30, 2022, and $1.4 billion, or 68.9%, more than the $2.08 billion reported as of September 30, 2021.
- Net income totaled $6.8 million, or $0.49 per diluted common share, for the third quarter of 2022, compared to $2.3 million, or $0.16 per diluted common share, for the second quarter of 2022.
- Book value per share and tangible book value per share(1) increased to $22.93 and $21.51, respectively, at September 30, 2022 compared to $22.43 and $21.00, respectively, at June 30, 2022.
- Issued 69,400 shares of Series A Convertible Non-Cumulative Preferred Stock and 175,000 warrants to purchase shares of the Company's common stock for gross proceeds of $69.4 million.
- Opened 15th location in October 2022 with a de novo branch located in the Kingwood area, north of Houston, 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 press release for a reconciliation of these non-GAAP financial measures.
"Third Coast continues to track in the right direction, reporting another quarter of solid organic growth that demonstrates our well-executed strategy to invest in people that perform at a high level," stated Bart Caraway, Third Coast's Chairman, President and Chief Executive Officer. "Record net interest income of $31.4 million, and net income of $6.8 million, resulted from continued operating leverage. Third quarter loans and deposits are up $1.36 billion and $1.17 billion, respectively, over last year. Our asset quality, a key emphasis for our lending culture, remains strong, representing a significant year-over-year reduction in non-performing assets to 0.29% of total assets.
"As we approach our first anniversary as a publicly traded company, we are seeing more demand for our financial products that, in step with our strategic growth plan, advance our efforts to increase quality offerings, including investing in research and development to grow deposits and fee income. We intend to continue to enhance our diversified business model and invest in talent at all levels of the organization so that we can be the leading community bank in the markets we serve.
"Our people are critical to our success. Third Coast is committed to serving our customers, building relationships, cultivating technological evolution, and expanding our markets. Regarding our branch network, we recently opened our 15th branch in Kingwood, just north of Houston. Third Coast is focused on providing the highest quality service and financial products to commercial and retail clients through its 15 branches. I want to thank the expanding Third Coast team once again for their commitment to delivering excellence to our customers and shareholders.
"Looking ahead, we are very excited about the future. Third Coast is poised for growth, especially as we look to bring exciting and beneficial financial products to market. We remain intensely focused on operating performance, which is bolstered by the general health of the Texas economy and improving trends that we are experiencing in our lending portfolio," concluded Mr. Caraway.
Loan Portfolio and Composition
During the third quarter of 2022, gross loans increased to $2.97 billion as of September 30, 2022, an increase of $223.7 million, or 8.1%, from $2.75 billion as of June 30, 2022, and an increase of $1.36 billion, or 84.4%, from $1.61 billion as of September 30, 2021. The loan growth was well diversified with Real Estate loans up $115.0 million and Commercial loans up $114.4 million from June 30, 2022. PPP loans declined to $1.9 million as of September 30, 2022 from $8.8 million as of June 30, 2022.
Asset Quality
Asset quality improved during the third quarter of 2022 with non-performing assets decreasing to $10.3 million as of September 30, 2022, or 44.6%, from $18.6 million as of September 30, 2021 and down slightly from $11.0 million as of June 30, 2022. The provision for loan losses recorded for the third quarter of 2022 was $2.9 million, which served to increase the allowance to $29.1 million, or 0.98% of the $2.97 billion in gross loans outstanding as of September 30, 2022. Provision expense for the third quarter of 2022 related primarily to provisioning for new loans.
As of September 30, 2022, the nonperforming loans to loans held for investment ratio remains low at 0.35%, which decreased from 0.40% as of June 30, 2022 and 1.05% as of September 30, 2021. During the three months ended September 30, 2022 and 2021, net charge-offs were $457,000 and $146,000 respectively.
Deposits and Composition
Deposits totaled $2.98 billion as of September 30, 2022, an increase of 3.0% from $2.90 billion as of June 30, 2022, and an increase of 64.3% from $1.82 billion as of September 30, 2021. Noninterest-bearing demand deposits decreased from $519.6 million as of June 30, 2022 to $517.3 million as of September 30, 2022, and increased $152.8 million, or 41.9%, from September 30, 2021. Noninterest-bearing demand deposits represented 17.3% of total deposits as of September 30, 2022, down from 17.9% of total deposits as of June 30, 2022, and 20.1% of total deposits as of September 30, 2021. Interest-bearing demand deposits as of September 30, 2022 increased $120.4 million, or 5.7%, from June 30, 2022. The increase was offset by a decrease in savings accounts of $1.2 million, or 3.1%, from June 30, 2022, and decrease in time deposits of $30.8 million, or 13.3%, from June 30, 2022.
The average cost of deposits was 1.31% for the third quarter of 2022, representing a 79 basis point increase from the second quarter of 2022 due primarily to the increase in rates paid on interest-bearing demand deposits. The average cost of deposits for the third quarter of 2022 increased 87 basis points from the third quarter of 2021 due primarily to the increase in rates paid on interest-bearing demand deposits.
Net Interest Margin and Net Interest Income
The net interest margin for the third quarter of 2022 was 3.77% which was unchanged from the second quarter of 2022 and a decrease of 72 basis points from the third quarter of 2021. We recorded excess accretion on purchased loans of $665,000 during the third quarter which increased the net interest margin by approximately 8 basis points. The yield on loans for the third quarter of 2022 was 5.59% compared to 4.73% for the second quarter of 2022. The increase in yield on loans during the third quarter of 2022 was primarily due to increased rates on new loans and an increase of $1.1 million in loan fees during the third quarter.
Net interest income totaled $31.4 million for the third quarter of 2022, an increase of 13.0% from $27.7 million for the second quarter of 2022. Interest income totaled $43.1 million for the third quarter of 2022, an increase of 32.6% from $32.5 million for the second quarter of 2022. Interest and fees on loans increased $9.3 million, or 30.0%, compared to the second quarter of 2022, and increased $16.6 million, or 69.2%, from the third quarter of 2021. Interest expense was $11.7 million for the third quarter of 2022, an increase of $7.0 million, or 146.2% from $4.8 million for the second quarter of 2022 and an increase of 390.1% from $2.4 million for the third quarter of 2021. The increase in interest expense was primarily due to interest paid on interest-bearing deposit accounts, FHLB advances and subordinated debt issued in March 2022.
Noninterest Income and Noninterest Expense
Noninterest income totaled $2.5 million for the third quarter of 2022, compared to $1.3 million for the second quarter of 2022, and $964,000 for the third quarter of 2021. This increase was primarily due to $729,000 in gains on the sales of the guaranteed portions of SBA loans sold and increases in derivative income of $190,000, earnings on bank-owned life insurance of $176,000, and service charges and fees of $155,000 in the third quarter of 2022.
Noninterest expense totaled $22.7 million for the third quarter of 2022 down from $22.8 million for the second quarter of 2022 and up from $17.6 million for the third quarter of 2021. The year-over-year increases were attributed to salary expense related to additional employees hired in 2022 and administrative expenses related to opening of three branches in 2022. The employee headcount increased from 334 as of December 31, 2021 to 369 as of September 30, 2022.
The efficiency ratio was 67.06% for the third quarter of 2022, compared to 78.52% for the second quarter of 2022, and 76.81% for the third quarter of 2021. The improvement in the efficiency ratio was primarily due to the increase in interest and fees on loans.
Net Income and Earnings Per Share
Net income totaled $6.8 million for the third quarter of 2022, compared to $2.3 million for the second quarter of 2022. Basic earnings per share and diluted earnings per share increased to $0.50 per share and $0.49 per share, respectively, in the third quarter of 2022 from $0.17 per share and $0.16 per share, respectively, in the second quarter of 2022.
Private Placement of $69.4 Million of Convertible Preferred Stock
As previously reported, the Company issued 69,400 shares of Series A Convertible Non-Cumulative Preferred Stock at a purchase price of $1,000 per share for aggregate gross proceeds of $69.4 million on September 30, 2022. In addition, the Company issued 175,000 warrants to purchase shares of the Company's common stock, par value $1.00 per share, in connection with the private placement offering.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss third quarter 2022 results, which will be broadcast live over the Internet, on Thursday, October 27, 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 November 3, 2022, and may be accessed by dialing 201-612-7415 and using passcode 13733542#. 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 15 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, 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," "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, Tangible Common Equity to Tangible Assets Ratio 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.
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)
September 30
June 30
March 31
December 31
September 30
ASSETS
Cash and cash equivalents:
Cash and due from banks
$
216,623
$
317,462
$
369,782
$
326,733
$
359,888
Federal funds sold
1,225
2,741
1,538
292
696
Total cash and cash equivalents
217,848
320,203
371,320
327,025
360,584
Interest bearing time deposits in other banks
132
132
132
131
131
Investment securities available-for-sale
160,437
157,261
126,218
26,432
26,431
Loans held for investment
2,972,852
2,749,177
2,447,945
2,068,724
1,612,394
Less: allowance for loan and lease loss
(29,109)
(26,666)
(23,312)
(19,295)
(15,571)
Loans, net
2,943,743
2,722,511
2,424,633
2,049,429
1,596,823
Accrued interest receivable
16,246
12,568
12,648
10,228
10,238
Premises and equipment, net
25,449
22,888
20,846
19,045
18,364
Other real estate owned
-
-
1,666
1,676
1,676
Bank-owned life insurance
60,263
51,919
26,671
26,528
26,382
Non-marketable securities, at cost
27,136
15,213
11,327
7,527
10,905
Deferred tax asset, net
8,097
7,179
4,258
4,123
4,456
Core Deposit Intangible, net
1,171
1,211
1,252
1,292
1,332
Goodwill
18,034
18,034
18,034
18,034
18,034
Other assets
38,289
28,943
21,383
7,942
6,815
Total assets
$
3,516,845
$
3,358,062
$
3,040,388
$
2,499,412
$
2,082,171
LIABILITIES
Deposits:
Noninterest bearing
$
517,265
$
519,614
$
931,622
$
531,401
$
364,418
Interest bearing
2,467,049
2,378,650
1,655,547
1,609,798
1,451,533
Total deposits
2,984,314
2,898,264
2,587,169
2,141,199
1,815,951
Accrued interest payable
2,925
1,683
387
437
477
Other liabilities
42,079
26,906
20,122
7,769
8,291
FHLB advances
-
18,000
50,000
50,000
50,250
Note payable - Line of Credit
30,875
30,875
1,000
1,000
1,000
Note payable - Subordinated Debentures, net
80,298
80,367
80,507
-
-
Total liabilities
3,140,491
3,056,095
2,739,185
2,200,405
1,875,969
Commitments and contingencies - ESOP-owned shares
-
-
-
-
2,060
SHAREHOLDERS' EQUITY
Preferred Stock - Series A
69
-
-
-
-
Common stock
13,600
13,543
13,524
13,482
9,387
Additional paid-in capital
317,798
250,413
249,775
249,202
160,725
Retained earnings
47,163
40,393
38,116
36,029
35,675
Accumulated other comprehensive income
(1,177)
(1,283)
887
1,393
1,394
Treasury stock, at cost
(1,099)
(1,099)
(1,099)
(1,099)
(979)
376,354
301,967
301,203
299,007
206,202
Less: ESOP-owned shares
-
-
-
-
(2,060)
Total shareholders' equity
376,354
301,967
301,203
299,007
204,142
Total liabilities and shareholders' equity
$
3,516,845
$
3,358,062
$
3,040,388
$
2,499,412
$
2,082,171
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
Year Ended
2022
2021
2021
(Dollars in thousands, except per share data)
September 30
June 30
March 31
December 31
September 30
December 31
INTEREST INCOME:
Loans, including fees
$
40,498
$
31,164
$
26,682
$
26,226
$
23,940
$
98,886
Investment securities available-for-sale
1,367
894
276
265
265
1,043
Federal funds sold and other
1,237
451
226
169
194
686
Total interest income
43,102
32,509
27,184
26,660
24,399
100,615
INTEREST EXPENSE:
Deposit accounts
9,727
3,443
1,844
1,913
2,023
8,526
FHLB advances and notes payable
2,020
1,328
130
128
374
1,536
Total interest expense
11,747
4,771
1,974
2,041
2,397
10,062
Net interest income
31,355
27,738
25,210
24,619
22,002
90,553
Provision for loan losses
2,900
3,350
4,000
6,100
2,323
9,923
Net interest income after provision for loan losses
28,455
24,388
21,210
18,519
19,679
80,630
NONINTEREST INCOME:
Service charges and fees
772
617
619
566
559
2,367
Gain on sale of SBA loans
729
98
-
411
175
586
Earnings on bank-owned life insurance
424
248
143
146
145
567
Derivative fees
313
123
706
820
-
820
Other
300
180
198
112
85
538
Total noninterest income
2,538
1,266
1,666
2,055
964
4,878
NONINTEREST EXPENSE:
Salaries and employee benefits
14,719
13,994
13,324
14,029
12,138
48,642
Data processing and network expense
1,256
932
922
786
844
3,060
Occupancy and equipment expense
2,232
1,830
1,873
1,557
1,419
5,367
Legal and professional
1,353
2,001
1,746
1,450
1,164
5,293
Loan operations and other real estate owned expense
284
282
278
275
495
1,963
Advertising and marketing
438
467
427
657
422
1,889
Telephone and communications
122
99
100
115
119
595
Software purchases and maintenance
318
201
198
248
261
852
Regulatory assessments
1,000
956
645
506
252
1,101
Loss on sale of other real estate owned
-
350
-
-
-
344
Other
1,006
1,661
668
464
527
1,919
Total noninterest expense
22,728
22,773
20,181
20,087
17,641
71,025
NET INCOME BEFORE INCOME TAX EXPENSE
8,265
2,881
2,695
487
3,002
14,483
Income tax expense
1,495
604
608
133
617
3,059
NET INCOME
$
6,770
$
2,277
$
2,087
$
354
$
2,385
$
11,424
EARNINGS PER COMMON SHARE:
Basic earnings per share
$
0.50
$
0.17
$
0.16
$
0.03
$
0.29
$
1.45
Diluted earnings per share
$
0.49
$
0.16
$
0.15
$
0.03
$
0.28
$
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)
September 30
June 30
March 31
December 31
September 30
December 31
Net Income
$
6,770
$
2,277
$
2,087
$
354
$
2,385
$
11,424
Earnings per share, basic
$
0.50
$
0.17
$
0.16
$
0.03
$
0.29
$
1.45
Earnings per share, diluted
$
0.49
$
0.16
$
0.15
$
0.03
$
0.28
$
1.40
Dividends per share
$
-
$
-
$
-
$
-
$
-
$
-
Return on average assets (A)
0.78
%
0.29
%
0.32
%
0.06
%
0.46
%
0.55
%
Return on average common equity (A)
8.74
%
3.01
%
2.81
%
0.55
%
5.41
%
6.70
%
Return on average tangible common equity (A) (B)
9.32
%
3.22
%
3.00
%
0.59
%
6.09
%
7.55
%
Net interest margin (A) (C)
3.77
%
3.77
%
4.09
%
4.78
%
4.49
%
4.65
%
Efficiency ratio (D)
67.06
%
78.52
%
75.09
%
75.31
%
76.81
%
74.43
%
Capital Ratios
Third Coast Bancshares, Inc. (consolidated):
Total common equity to total assets
8.82
%
8.99
%
9.91
%
11.96
%
9.90
%
11.96
%
Tangible common equity to tangible assets (B)
8.32
%
8.47
%
9.33
%
11.28
%
9.06
%
11.28
%
Third Coast Bank, SSB:
Common equity tier 1 (to risk weighted assets)
13.04
%
11.60
%
12.36
%
12.63
%
11.89
%
12.63
%
Tier 1 capital (to risk weighted assets)
13.04
%
11.60
%
12.36
%
12.63
%
11.89
%
12.63
%
Total capital (to risk weighted assets)
13.87
%
12.40
%
13.17
%
13.54
%
12.96
%
13.54
%
Tier 1 capital (to average assets)
13.29
%
12.47
%
13.66
%
12.27
%
8.39
%
12.27
%
Other Data
Weighted average shares:
Basic
13,490,680
13,454,423
13,385,324
10,724,545
8,099,878
7,874,110
Diluted
13,678,962
13,822,522
13,755,026
11,156,037
8,448,112
8,138,824
Period end shares outstanding
13,521,826
13,464,093
13,445,782
13,403,324
9,313,929
13,403,324
Book value per share
$
22.93
$
22.43
$
22.40
$
22.31
$
22.14
$
22.31
Tangible book value per share (B)
$
21.51
$
21.00
$
20.97
$
20.87
$
20.06
$
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 pages 12 and 13 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
September 30, 2022
June 30, 2022
September 30, 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
$
180,701
$
1,367
3.00 %
$
112,793
$
894
3.18 %
$
31,588
$
265
3.33 %
Loans, gross
2,874,857
40,498
5.59 %
2,641,330
31,164
4.73 %
1,553,517
23,940
6.11 %
Federal funds sold and other interest-earning assets
243,471
1,237
2.02 %
200,801
451
0.90 %
360,723
194
0.21 %
Total interest-earning assets
3,299,029
43,102
5.18 %
2,954,924
32,509
4.41 %
1,945,828
24,399
4.97 %
Less allowance for loan losses
(27,504)
(24,818)
(13,466)
Total interest-earning assets, net of allowance
3,271,525
2,930,106
1,932,362
Noninterest-earning assets
184,514
201,734
138,687
Total assets
$
3,456,039
$
3,131,840
$
2,071,049
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits
$
2,446,443
$
9,727
1.58 %
$
2,222,677
$
3,443
0.62 %
$
1,423,418
$
2,023
0.56 %
Notes payable and fed funds sold
111,213
1,617
5.77 %
83,390
1,208
5.81 %
21,278
262
4.89 %
FHLB advances
60,176
403
2.66 %
46,319
120
1.04 %
55,418
112
0.80 %
Total interest-bearing liabilities
2,617,832
11,747
1.78 %
2,352,386
4,771
0.81 %
1,500,114
2,397
0.63 %
Noninterest-bearing deposits
498,408
453,936
386,727
Other liabilities
31,707
22,383
9,440
Total liabilities
3,147,947
2,828,705
1,896,281
Shareholders' equity
308,092
303,135
174,768
Total liabilities and shareholders' equity
$
3,456,039
$
3,131,840
$
2,071,049
Net interest income
$
31,355
$
27,738
$
22,002
Net interest spread (1)
3.40 %
3.60 %
4.34 %
Net interest margin (2)
3.77 %
3.77 %
4.49 %
(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)
Nine Months Ended
September 30, 2022
September 30, 2021
(Dollars in thousands)
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
$
115,705
$
2,537
2.93 %
$
27,400
$
778
3.80 %
Loans, gross
2,577,324
98,344
5.10 %
1,603,555
72,660
6.06 %
Federal funds sold and other interest-earning assets
236,552
1,914
1.08 %
282,065
517
0.25 %
Total interest-earning assets
2,929,581
102,795
4.69 %
1,913,020
73,955
5.17 %
Less allowance for loan losses
(24,265)
(13,211)
Total interest-earning assets, net of allowance
2,905,316
1,899,809
Noninterest-earning assets
169,473
114,310
Total assets
$
3,074,789
$
2,014,119
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits
$
2,279,048
$
15,014
0.88 %
$
1,400,424
$
6,613
0.63 %
Notes payable
65,898
2,848
5.78 %
29,475
1,080
4.90 %
FHLB advances
52,202
630
1.61 %
53,115
328
0.83 %
Total interest-bearing liabilities
2,397,148
18,492
1.03 %
1,483,014
8,021
0.72 %
Noninterest-bearing deposits
351,002
380,645
Other liabilities
22,361
9,134
Total liabilities
2,770,511
1,872,793
Shareholders' equity
304,278
141,326
Total liabilities and shareholders' equity
$
3,074,789
$
2,014,119
Net interest income
$
84,303
$
65,934
Net interest spread (1)
3.66 %
4.45 %
Net interest margin (2)
3.85 %
4.61 %
(1) Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average interest-earning assets.
(3) Interest earned/paid includes accretion of deferred loan fees, premiums and discounts.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
2022
2021
(Dollars in thousands)
September 30
June 30
March 31
December 31
September 30
Period-end Loan Portfolio:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied
$
529,046
$
508,864
$
477,573
$
383,941
$
361,467
Non-farm non-residential non-owner occupied
490,503
464,530
463,618
445,308
345,360
Residential
283,432
273,415
225,649
213,264
179,971
Construction, development & other
500,879
440,925
414,653
320,335
124,548
Farmland
22,770
23,895
13,467
9,934
8,309
Commercial & industrial
1,029,231
914,845
756,005
611,348
538,551
Consumer
3,728
3,706
3,304
4,001
4,417
Other
113,263
118,997
93,676
80,593
49,771
Total loans
$
2,972,852
$
2,749,177
$
2,447,945
$
2,068,724
$
1,612,394
Asset Quality:
Nonaccrual loans
$
9,439
$
9,806
$
9,896
$
10,030
$
11,077
Loans > 90 days and still accruing
98
387
40
278
561
Restructured loans--accruing
781
785
790
5,295
5,319
Total nonperforming loans
$
10,318
$
10,978
$
10,726
$
15,603
$
16,957
Other real estate owned
-
-
1,666
1,676
1,676
Total nonperforming assets
$
10,318
$
10,978
$
12,392
$
17,279
$
18,633
QTD Net charge-offs (recoveries)
$
457
$
(4)
$
(17)
$
2,376
$
146
Nonaccrual loans:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied
$
921
$
964
$
986
$
1,008
$
1,032
Non-farm non-residential non-owner occupied
309
323
334
346
353
Residential
111
116
121
127
133
Construction, development & other
227
232
238
244
251
Farmland
-
-
-
-
-
Commercial & industrial
7,846
8,165
8,210
8,297
9,162
Consumer
20
-
-
-
-
Other
-
-
-
-
-
Purchased credit impaired
5
6
7
8
146
Total nonaccrual loans
$
9,439
$
9,806
$
9,896
$
10,030
$
11,077
Asset Quality Ratios:
Nonperforming assets to total assets
0.29
%
0.33
%
0.41
%
0.69
%
0.89
%
Nonperforming loans to total loans
0.35
%
0.40
%
0.44
%
0.75
%
1.05
%
Allowance for loan losses to total loans
0.98
%
0.97
%
0.95
%
0.93
%
0.97
%
QTD Net charge-offs(recoveries) to average loans (annualized)
0.06
%
0.00
%
0.00
%
0.53
%
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 Book Value Per Share, Tangible Common Equity to Tangible Assets Ratio, 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.
Three Months Ended
Year Ended
2022
2021
2021
(Dollars in thousands, except per share data)
September 30
June 30
March 31
December 31
September 30
December 31
Tangible Common Equity:
Total shareholders' equity
$
376,354
$
301,967
$
301,203
$
299,007
$
206,202
$
299,007
Less: Preferred stock including additional paid in capital
66,273
-
-
-
-
-
Total common equity
310,081
301,967
301,203
299,007
206,202
299,007
Less: Goodwill and core deposit intangibles, net
19,205
19,245
19,286
19,326
19,366
19,326
Tangible common equity
$
290,876
$
282,722
$
281,917
$
279,681
$
186,836
$
279,681
Common shares outstanding at end of period
13,521,826
13,464,093
13,445,782
13,403,324
9,313,929
13,403,324
Book Value Per Share
$
22.93
$
22.43
$
22.40
$
22.31
$
22.14
$
22.31
Tangible Book Value Per Share
$
21.51
$
21.00
$
20.97
$
20.87
$
20.06
$
20.87
Tangible Assets:
Total assets
$
3,516,845
$
3,358,062
$
3,040,388
$
2,499,412
$
2,082,171
$
2,499,412
Adjustments: Goodwill and core deposit intangibles, net
19,205
19,245
19,286
19,326
19,366
19,326
Tangible assets
$
3,497,640
$
3,338,817
$
3,021,102
$
2,480,086
$
2,062,805
$
2,480,086
Total Common Equity to Total Assets
8.82
%
8.99
%
9.91
%
11.96
%
9.90
%
11.96
%
Tangible Common Equity to Tangible Assets
8.32
%
8.47
%
9.33
%
11.28
%
9.06
%
11.28
%
Three Months Ended
Year Ended
2022
2021
2021
(Dollars in thousands, except per share data)
September 30
June 30
March 31
December 31
September 30
December 31
Average Tangible Common Equity:
Average shareholders' equity
$
308,092
$
303,135
$
301,537
$
257,583
$
174,768
$
170,630
Less: Average preferred stock including additional paid in capital
720
-
-
-
-
-
Average common equity
307,372
303,135
301,537
257,583
174,768
170,630
Less: Average goodwill and core deposit intangibles, net
19,225
19,265
19,306
19,343
19,383
19,404
Average tangible common equity
$
288,147
$
283,870
$
282,231
$
238,240
$
155,385
$
151,226
Net Income
$
6,770
$
2,277
$
2,087
$
354
$
2,385
$
11,424
Return on Average Common Equity
8.74
%
3.01
%
2.81
%
0.55
%
5.41
%
6.70
%
Return on Average Tangible Common Equity
9.32
%
3.22
%
3.00
%
0.59
%
6.09
%
7.55
%
View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-third-quarter-2022-financial-results-301660506.html
SOURCE Third Coast Bancshares
Record Quarterly Net Income and Net Interest Income
HUMBLE, Texas, Oct. 26, 2022 /PRNewswire/ -- Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the "Company", "Third Coast", "we", "us", or "our"), the bank holding company for Third Coast Bank, SSB, today reported its third quarter 2022 financial results.
Third Quarter 2022 Financial and Operational Highlights
- Loans held for investment grew $223.7 million to $2.97 billion as of September 30, 2022, or 8.1%, over the $2.75 billion reported as of June 30, 2022, and increased $1.36 billion, or 84.4%, over the $1.61 billion reported as of September 30, 2021.
- Deposits reached $2.98 billion as of September 30, 2022, an increase of $86.1 million, or 3.0%, over the $2.90 billion reported as of June 30, 2022, and $1.17 billion, or 64.3%, over the $1.82 billion reported as of September 30, 2021. Noninterest-bearing deposits declined $2.3 million to $517.3 million and represent 17.3% of total deposits as of September 30, 2022.
- Total assets reached $3.52 billion as of September 30, 2022, an increase of $158.8 million, or 4.7%, over the $3.36 billion reported as of June 30, 2022, and $1.4 billion, or 68.9%, more than the $2.08 billion reported as of September 30, 2021.
- Net income totaled $6.8 million, or $0.49 per diluted common share, for the third quarter of 2022, compared to $2.3 million, or $0.16 per diluted common share, for the second quarter of 2022.
- Book value per share and tangible book value per share(1) increased to $22.93 and $21.51, respectively, at September 30, 2022 compared to $22.43 and $21.00, respectively, at June 30, 2022.
- Issued 69,400 shares of Series A Convertible Non-Cumulative Preferred Stock and 175,000 warrants to purchase shares of the Company's common stock for gross proceeds of $69.4 million.
- Opened 15th location in October 2022 with a de novo branch located in the Kingwood area, north of Houston, 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 press release for a reconciliation of these non-GAAP financial measures. |
||||||||
"Third Coast continues to track in the right direction, reporting another quarter of solid organic growth that demonstrates our well-executed strategy to invest in people that perform at a high level," stated Bart Caraway, Third Coast's Chairman, President and Chief Executive Officer. "Record net interest income of $31.4 million, and net income of $6.8 million, resulted from continued operating leverage. Third quarter loans and deposits are up $1.36 billion and $1.17 billion, respectively, over last year. Our asset quality, a key emphasis for our lending culture, remains strong, representing a significant year-over-year reduction in non-performing assets to 0.29% of total assets.
"As we approach our first anniversary as a publicly traded company, we are seeing more demand for our financial products that, in step with our strategic growth plan, advance our efforts to increase quality offerings, including investing in research and development to grow deposits and fee income. We intend to continue to enhance our diversified business model and invest in talent at all levels of the organization so that we can be the leading community bank in the markets we serve.
"Our people are critical to our success. Third Coast is committed to serving our customers, building relationships, cultivating technological evolution, and expanding our markets. Regarding our branch network, we recently opened our 15th branch in Kingwood, just north of Houston. Third Coast is focused on providing the highest quality service and financial products to commercial and retail clients through its 15 branches. I want to thank the expanding Third Coast team once again for their commitment to delivering excellence to our customers and shareholders.
"Looking ahead, we are very excited about the future. Third Coast is poised for growth, especially as we look to bring exciting and beneficial financial products to market. We remain intensely focused on operating performance, which is bolstered by the general health of the Texas economy and improving trends that we are experiencing in our lending portfolio," concluded Mr. Caraway.
Loan Portfolio and Composition
During the third quarter of 2022, gross loans increased to $2.97 billion as of September 30, 2022, an increase of $223.7 million, or 8.1%, from $2.75 billion as of June 30, 2022, and an increase of $1.36 billion, or 84.4%, from $1.61 billion as of September 30, 2021. The loan growth was well diversified with Real Estate loans up $115.0 million and Commercial loans up $114.4 million from June 30, 2022. PPP loans declined to $1.9 million as of September 30, 2022 from $8.8 million as of June 30, 2022.
Asset Quality
Asset quality improved during the third quarter of 2022 with non-performing assets decreasing to $10.3 million as of September 30, 2022, or 44.6%, from $18.6 million as of September 30, 2021 and down slightly from $11.0 million as of June 30, 2022. The provision for loan losses recorded for the third quarter of 2022 was $2.9 million, which served to increase the allowance to $29.1 million, or 0.98% of the $2.97 billion in gross loans outstanding as of September 30, 2022. Provision expense for the third quarter of 2022 related primarily to provisioning for new loans.
As of September 30, 2022, the nonperforming loans to loans held for investment ratio remains low at 0.35%, which decreased from 0.40% as of June 30, 2022 and 1.05% as of September 30, 2021. During the three months ended September 30, 2022 and 2021, net charge-offs were $457,000 and $146,000 respectively.
Deposits and Composition
Deposits totaled $2.98 billion as of September 30, 2022, an increase of 3.0% from $2.90 billion as of June 30, 2022, and an increase of 64.3% from $1.82 billion as of September 30, 2021. Noninterest-bearing demand deposits decreased from $519.6 million as of June 30, 2022 to $517.3 million as of September 30, 2022, and increased $152.8 million, or 41.9%, from September 30, 2021. Noninterest-bearing demand deposits represented 17.3% of total deposits as of September 30, 2022, down from 17.9% of total deposits as of June 30, 2022, and 20.1% of total deposits as of September 30, 2021. Interest-bearing demand deposits as of September 30, 2022 increased $120.4 million, or 5.7%, from June 30, 2022. The increase was offset by a decrease in savings accounts of $1.2 million, or 3.1%, from June 30, 2022, and decrease in time deposits of $30.8 million, or 13.3%, from June 30, 2022.
The average cost of deposits was 1.31% for the third quarter of 2022, representing a 79 basis point increase from the second quarter of 2022 due primarily to the increase in rates paid on interest-bearing demand deposits. The average cost of deposits for the third quarter of 2022 increased 87 basis points from the third quarter of 2021 due primarily to the increase in rates paid on interest-bearing demand deposits.
Net Interest Margin and Net Interest Income
The net interest margin for the third quarter of 2022 was 3.77% which was unchanged from the second quarter of 2022 and a decrease of 72 basis points from the third quarter of 2021. We recorded excess accretion on purchased loans of $665,000 during the third quarter which increased the net interest margin by approximately 8 basis points. The yield on loans for the third quarter of 2022 was 5.59% compared to 4.73% for the second quarter of 2022. The increase in yield on loans during the third quarter of 2022 was primarily due to increased rates on new loans and an increase of $1.1 million in loan fees during the third quarter.
Net interest income totaled $31.4 million for the third quarter of 2022, an increase of 13.0% from $27.7 million for the second quarter of 2022. Interest income totaled $43.1 million for the third quarter of 2022, an increase of 32.6% from $32.5 million for the second quarter of 2022. Interest and fees on loans increased $9.3 million, or 30.0%, compared to the second quarter of 2022, and increased $16.6 million, or 69.2%, from the third quarter of 2021. Interest expense was $11.7 million for the third quarter of 2022, an increase of $7.0 million, or 146.2% from $4.8 million for the second quarter of 2022 and an increase of 390.1% from $2.4 million for the third quarter of 2021. The increase in interest expense was primarily due to interest paid on interest-bearing deposit accounts, FHLB advances and subordinated debt issued in March 2022.
Noninterest Income and Noninterest Expense
Noninterest income totaled $2.5 million for the third quarter of 2022, compared to $1.3 million for the second quarter of 2022, and $964,000 for the third quarter of 2021. This increase was primarily due to $729,000 in gains on the sales of the guaranteed portions of SBA loans sold and increases in derivative income of $190,000, earnings on bank-owned life insurance of $176,000, and service charges and fees of $155,000 in the third quarter of 2022.
Noninterest expense totaled $22.7 million for the third quarter of 2022 down from $22.8 million for the second quarter of 2022 and up from $17.6 million for the third quarter of 2021. The year-over-year increases were attributed to salary expense related to additional employees hired in 2022 and administrative expenses related to opening of three branches in 2022. The employee headcount increased from 334 as of December 31, 2021 to 369 as of September 30, 2022.
The efficiency ratio was 67.06% for the third quarter of 2022, compared to 78.52% for the second quarter of 2022, and 76.81% for the third quarter of 2021. The improvement in the efficiency ratio was primarily due to the increase in interest and fees on loans.
Net Income and Earnings Per Share
Net income totaled $6.8 million for the third quarter of 2022, compared to $2.3 million for the second quarter of 2022. Basic earnings per share and diluted earnings per share increased to $0.50 per share and $0.49 per share, respectively, in the third quarter of 2022 from $0.17 per share and $0.16 per share, respectively, in the second quarter of 2022.
Private Placement of $69.4 Million of Convertible Preferred Stock
As previously reported, the Company issued 69,400 shares of Series A Convertible Non-Cumulative Preferred Stock at a purchase price of $1,000 per share for aggregate gross proceeds of $69.4 million on September 30, 2022. In addition, the Company issued 175,000 warrants to purchase shares of the Company's common stock, par value $1.00 per share, in connection with the private placement offering.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss third quarter 2022 results, which will be broadcast live over the Internet, on Thursday, October 27, 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 November 3, 2022, and may be accessed by dialing 201-612-7415 and using passcode 13733542#. 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 15 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, 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," "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, Tangible Common Equity to Tangible Assets Ratio 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.
Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
(713) 529-6600
TCBX@dennardlascar.com
|
Third Coast Bancshares, Inc. and Subsidiary | |||||||||||||||||||||
|
2022 |
2021 |
||||||||||||||||||||
|
(Dollars in thousands) |
September 30 |
June 30 |
March 31 |
December 31 |
September 30 |
||||||||||||||||
|
ASSETS |
|||||||||||||||||||||
|
Cash and cash equivalents: |
|||||||||||||||||||||
|
Cash and due from banks |
$ |
216,623 |
$ |
317,462 |
$ |
369,782 |
$ |
326,733 |
$ |
359,888 |
|||||||||||
|
Federal funds sold |
1,225 |
2,741 |
1,538 |
292 |
696 |
||||||||||||||||
|
Total cash and cash equivalents |
217,848 |
320,203 |
371,320 |
327,025 |
360,584 |
||||||||||||||||
|
Interest bearing time deposits in other banks |
132 |
132 |
132 |
131 |
131 |
||||||||||||||||
|
Investment securities available-for-sale |
160,437 |
157,261 |
126,218 |
26,432 |
26,431 |
||||||||||||||||
|
Loans held for investment |
2,972,852 |
2,749,177 |
2,447,945 |
2,068,724 |
1,612,394 |
||||||||||||||||
|
Less: allowance for loan and lease loss |
(29,109) |
(26,666) |
(23,312) |
(19,295) |
(15,571) |
||||||||||||||||
|
Loans, net |
2,943,743 |
2,722,511 |
2,424,633 |
2,049,429 |
1,596,823 |
||||||||||||||||
|
Accrued interest receivable |
16,246 |
12,568 |
12,648 |
10,228 |
10,238 |
||||||||||||||||
|
Premises and equipment, net |
25,449 |
22,888 |
20,846 |
19,045 |
18,364 |
||||||||||||||||
|
Other real estate owned |
- |
- |
1,666 |
1,676 |
1,676 |
||||||||||||||||
|
Bank-owned life insurance |
60,263 |
51,919 |
26,671 |
26,528 |
26,382 |
||||||||||||||||
|
Non-marketable securities, at cost |
27,136 |
15,213 |
11,327 |
7,527 |
10,905 |
||||||||||||||||
|
Deferred tax asset, net |
8,097 |
7,179 |
4,258 |
4,123 |
4,456 |
||||||||||||||||
|
Core Deposit Intangible, net |
1,171 |
1,211 |
1,252 |
1,292 |
1,332 |
||||||||||||||||
|
Goodwill |
18,034 |
18,034 |
18,034 |
18,034 |
18,034 |
||||||||||||||||
|
Other assets |
38,289 |
28,943 |
21,383 |
7,942 |
6,815 |
||||||||||||||||
|
Total assets |
$ |
3,516,845 |
$ |
3,358,062 |
$ |
3,040,388 |
$ |
2,499,412 |
$ |
2,082,171 |
|||||||||||
|
LIABILITIES |
|||||||||||||||||||||
|
Deposits: |
|||||||||||||||||||||
|
Noninterest bearing |
$ |
517,265 |
$ |
519,614 |
$ |
931,622 |
$ |
531,401 |
$ |
364,418 |
|||||||||||
|
Interest bearing |
2,467,049 |
2,378,650 |
1,655,547 |
1,609,798 |
1,451,533 |
||||||||||||||||
|
Total deposits |
2,984,314 |
2,898,264 |
2,587,169 |
2,141,199 |
1,815,951 |
||||||||||||||||
|
Accrued interest payable |
2,925 |
1,683 |
387 |
437 |
477 |
||||||||||||||||
|
Other liabilities |
42,079 |
26,906 |
20,122 |
7,769 |
8,291 |
||||||||||||||||
|
FHLB advances |
- |
18,000 |
50,000 |
50,000 |
50,250 |
||||||||||||||||
|
Note payable - Line of Credit |
30,875 |
30,875 |
1,000 |
1,000 |
1,000 |
||||||||||||||||
|
Note payable - Subordinated Debentures, net |
80,298 |
80,367 |
80,507 |
- |
- |
||||||||||||||||
|
Total liabilities |
3,140,491 |
3,056,095 |
2,739,185 |
2,200,405 |
1,875,969 |
||||||||||||||||
|
Commitments and contingencies - ESOP-owned shares |
- |
- |
- |
- |
2,060 |
||||||||||||||||
|
SHAREHOLDERS' EQUITY |
|||||||||||||||||||||
|
Preferred Stock - Series A |
69 |
- |
- |
- |
- |
||||||||||||||||
|
Common stock |
13,600 |
13,543 |
13,524 |
13,482 |
9,387 |
||||||||||||||||
|
Additional paid-in capital |
317,798 |
250,413 |
249,775 |
249,202 |
160,725 |
||||||||||||||||
|
Retained earnings |
47,163 |
40,393 |
38,116 |
36,029 |
35,675 |
||||||||||||||||
|
Accumulated other comprehensive income |
(1,177) |
(1,283) |
887 |
1,393 |
1,394 |
||||||||||||||||
|
Treasury stock, at cost |
(1,099) |
(1,099) |
(1,099) |
(1,099) |
(979) |
||||||||||||||||
|
376,354 |
301,967 |
301,203 |
299,007 |
206,202 |
|||||||||||||||||
|
Less: ESOP-owned shares |
- |
- |
- |
- |
(2,060) |
||||||||||||||||
|
Total shareholders' equity |
376,354 |
301,967 |
301,203 |
299,007 |
204,142 |
||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
3,516,845 |
$ |
3,358,062 |
$ |
3,040,388 |
$ |
2,499,412 |
$ |
2,082,171 |
|||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary |
|||||||||||||||||||||||||
|
Three Months Ended |
Year Ended |
||||||||||||||||||||||||
|
2022 |
2021 |
2021 |
|||||||||||||||||||||||
|
(Dollars in thousands, except per share data) |
September 30 |
June 30 |
March 31 |
December 31 |
September 30 |
December 31 |
|||||||||||||||||||
|
INTEREST INCOME: |
|||||||||||||||||||||||||
|
Loans, including fees |
$ |
40,498 |
$ |
31,164 |
$ |
26,682 |
$ |
26,226 |
$ |
23,940 |
$ |
98,886 |
|||||||||||||
|
Investment securities available-for-sale |
1,367 |
894 |
276 |
265 |
265 |
1,043 |
|||||||||||||||||||
|
Federal funds sold and other |
1,237 |
451 |
226 |
169 |
194 |
686 |
|||||||||||||||||||
|
Total interest income |
43,102 |
32,509 |
27,184 |
26,660 |
24,399 |
100,615 |
|||||||||||||||||||
|
INTEREST EXPENSE: |
|||||||||||||||||||||||||
|
Deposit accounts |
9,727 |
3,443 |
1,844 |
1,913 |
2,023 |
8,526 |
|||||||||||||||||||
|
FHLB advances and notes payable |
2,020 |
1,328 |
130 |
128 |
374 |
1,536 |
|||||||||||||||||||
|
Total interest expense |
11,747 |
4,771 |
1,974 |
2,041 |
2,397 |
10,062 |
|||||||||||||||||||
|
Net interest income |
31,355 |
27,738 |
25,210 |
24,619 |
22,002 |
90,553 |
|||||||||||||||||||
|
Provision for loan losses |
2,900 |
3,350 |
4,000 |
6,100 |
2,323 |
9,923 |
|||||||||||||||||||
|
Net interest income after provision for loan losses |
28,455 |
24,388 |
21,210 |
18,519 |
19,679 |
80,630 |
|||||||||||||||||||
|
NONINTEREST INCOME: |
|||||||||||||||||||||||||
|
Service charges and fees |
772 |
617 |
619 |
566 |
559 |
2,367 |
|||||||||||||||||||
|
Gain on sale of SBA loans |
729 |
98 |
- |
411 |
175 |
586 |
|||||||||||||||||||
|
Earnings on bank-owned life insurance |
424 |
248 |
143 |
146 |
145 |
567 |
|||||||||||||||||||
|
Derivative fees |
313 |
123 |
706 |
820 |
- |
820 |
|||||||||||||||||||
|
Other |
300 |
180 |
198 |
112 |
85 |
538 |
|||||||||||||||||||
|
Total noninterest income |
2,538 |
1,266 |
1,666 |
2,055 |
964 |
4,878 |
|||||||||||||||||||
|
NONINTEREST EXPENSE: |
|||||||||||||||||||||||||
|
Salaries and employee benefits |
14,719 |
13,994 |
13,324 |
14,029 |
12,138 |
48,642 |
|||||||||||||||||||
|
Data processing and network expense |
1,256 |
932 |
922 |
786 |
844 |
3,060 |
|||||||||||||||||||
|
Occupancy and equipment expense |
2,232 |
1,830 |
1,873 |
1,557 |
1,419 |
5,367 |
|||||||||||||||||||
|
Legal and professional |
1,353 |
2,001 |
1,746 |
1,450 |
1,164 |
5,293 |
|||||||||||||||||||
|
Loan operations and other real estate owned expense |
284 |
282 |
278 |
275 |
495 |
1,963 |
|||||||||||||||||||
|
Advertising and marketing |
438 |
467 |
427 |
657 |
422 |
1,889 |
|||||||||||||||||||
|
Telephone and communications |
122 |
99 |
100 |
115 |
119 |
595 |
|||||||||||||||||||
|
Software purchases and maintenance |
318 |
201 |
198 |
248 |
261 |
852 |
|||||||||||||||||||
|
Regulatory assessments |
1,000 |
956 |
645 |
506 |
252 |
1,101 |
|||||||||||||||||||
|
Loss on sale of other real estate owned |
- |
350 |
- |
- |
- |
344 |
|||||||||||||||||||
|
Other |
1,006 |
1,661 |
668 |
464 |
527 |
1,919 |
|||||||||||||||||||
|
Total noninterest expense |
22,728 |
22,773 |
20,181 |
20,087 |
17,641 |
71,025 |
|||||||||||||||||||
|
NET INCOME BEFORE INCOME TAX EXPENSE |
8,265 |
2,881 |
2,695 |
487 |
3,002 |
14,483 |
|||||||||||||||||||
|
Income tax expense |
1,495 |
604 |
608 |
133 |
617 |
3,059 |
|||||||||||||||||||
|
NET INCOME |
$ |
6,770 |
$ |
2,277 |
$ |
2,087 |
$ |
354 |
$ |
2,385 |
$ |
11,424 |
|||||||||||||
|
EARNINGS PER COMMON SHARE: |
|||||||||||||||||||||||||
|
Basic earnings per share |
$ |
0.50 |
$ |
0.17 |
$ |
0.16 |
$ |
0.03 |
$ |
0.29 |
$ |
1.45 |
|||||||||||||
|
Diluted earnings per share |
$ |
0.49 |
$ |
0.16 |
$ |
0.15 |
$ |
0.03 |
$ |
0.28 |
$ |
1.40 |
|||||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary | ||||||||||||||||||||||||
|
Three Months Ended |
Year Ended |
|||||||||||||||||||||||
|
2022 |
2021 |
2021 |
||||||||||||||||||||||
|
(Dollars in thousands, except share and per share data) |
September 30 |
June 30 |
March 31 |
December 31 |
September 30 |
December 31 |
||||||||||||||||||
|
Net Income |
$ |
6,770 |
$ |
2,277 |
$ |
2,087 |
$ |
354 |
$ |
2,385 |
$ |
11,424 |
||||||||||||
|
Earnings per share, basic |
$ |
0.50 |
$ |
0.17 |
$ |
0.16 |
$ |
0.03 |
$ |
0.29 |
$ |
1.45 |
||||||||||||
|
Earnings per share, diluted |
$ |
0.49 |
$ |
0.16 |
$ |
0.15 |
$ |
0.03 |
$ |
0.28 |
$ |
1.40 |
||||||||||||
|
Dividends per share |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
||||||||||||
|
Return on average assets (A) |
0.78 |
% |
0.29 |
% |
0.32 |
% |
0.06 |
% |
0.46 |
% |
0.55 |
% |
||||||||||||
|
Return on average common equity (A) |
8.74 |
% |
3.01 |
% |
2.81 |
% |
0.55 |
% |
5.41 |
% |
6.70 |
% |
||||||||||||
|
Return on average tangible common equity (A) (B) |
9.32 |
% |
3.22 |
% |
3.00 |
% |
0.59 |
% |
6.09 |
% |
7.55 |
% |
||||||||||||
|
Net interest margin (A) (C) |
3.77 |
% |
3.77 |
% |
4.09 |
% |
4.78 |
% |
4.49 |
% |
4.65 |
% |
||||||||||||
|
Efficiency ratio (D) |
67.06 |
% |
78.52 |
% |
75.09 |
% |
75.31 |
% |
76.81 |
% |
74.43 |
% |
||||||||||||
|
Capital Ratios |
||||||||||||||||||||||||
|
Third Coast Bancshares, Inc. (consolidated): |
||||||||||||||||||||||||
|
Total common equity to total assets |
8.82 |
% |
8.99 |
% |
9.91 |
% |
11.96 |
% |
9.90 |
% |
11.96 |
% |
||||||||||||
|
Tangible common equity to tangible assets (B) |
8.32 |
% |
8.47 |
% |
9.33 |
% |
11.28 |
% |
9.06 |
% |
11.28 |
% |
||||||||||||
|
Third Coast Bank, SSB: |
||||||||||||||||||||||||
|
Common equity tier 1 (to risk weighted assets) |
13.04 |
% |
11.60 |
% |
12.36 |
% |
12.63 |
% |
11.89 |
% |
12.63 |
% |
||||||||||||
|
Tier 1 capital (to risk weighted assets) |
13.04 |
% |
11.60 |
% |
12.36 |
% |
12.63 |
% |
11.89 |
% |
12.63 |
% |
||||||||||||
|
Total capital (to risk weighted assets) |
13.87 |
% |
12.40 |
% |
13.17 |
% |
13.54 |
% |
12.96 |
% |
13.54 |
% |
||||||||||||
|
Tier 1 capital (to average assets) |
13.29 |
% |
12.47 |
% |
13.66 |
% |
12.27 |
% |
8.39 |
% |
12.27 |
% |
||||||||||||
|
Other Data |
||||||||||||||||||||||||
|
Weighted average shares: |
||||||||||||||||||||||||
|
Basic |
13,490,680 |
13,454,423 |
13,385,324 |
10,724,545 |
8,099,878 |
7,874,110 |
||||||||||||||||||
|
Diluted |
13,678,962 |
13,822,522 |
13,755,026 |
11,156,037 |
8,448,112 |
8,138,824 |
||||||||||||||||||
|
Period end shares outstanding |
13,521,826 |
13,464,093 |
13,445,782 |
13,403,324 |
9,313,929 |
13,403,324 |
||||||||||||||||||
|
Book value per share |
$ |
22.93 |
$ |
22.43 |
$ |
22.40 |
$ |
22.31 |
$ |
22.14 |
$ |
22.31 |
||||||||||||
|
Tangible book value per share (B) |
$ |
21.51 |
$ |
21.00 |
$ |
20.97 |
$ |
20.87 |
$ |
20.06 |
$ |
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 pages 12 and 13 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 | ||||||||||||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||||||||||
|
September 30, 2022 |
June 30, 2022 |
September 30, 2021 |
||||||||||||||||||||||||||||
|
(Dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||||||||||||
|
Assets |
||||||||||||||||||||||||||||||
|
Interest-earnings assets: |
||||||||||||||||||||||||||||||
|
Investment securities |
$ |
180,701 |
$ |
1,367 |
3.00 % |
$ |
112,793 |
$ |
894 |
3.18 % |
$ |
31,588 |
$ |
265 |
3.33 % |
|||||||||||||||
|
Loans, gross |
2,874,857 |
40,498 |
5.59 % |
2,641,330 |
31,164 |
4.73 % |
1,553,517 |
23,940 |
6.11 % |
|||||||||||||||||||||
|
Federal funds sold and other interest-earning assets |
243,471 |
1,237 |
2.02 % |
200,801 |
451 |
0.90 % |
360,723 |
194 |
0.21 % |
|||||||||||||||||||||
|
Total interest-earning assets |
3,299,029 |
43,102 |
5.18 % |
2,954,924 |
32,509 |
4.41 % |
1,945,828 |
24,399 |
4.97 % |
|||||||||||||||||||||
|
Less allowance for loan losses |
(27,504) |
(24,818) |
(13,466) |
|||||||||||||||||||||||||||
|
Total interest-earning assets, net of allowance |
3,271,525 |
2,930,106 |
1,932,362 |
|||||||||||||||||||||||||||
|
Noninterest-earning assets |
184,514 |
201,734 |
138,687 |
|||||||||||||||||||||||||||
|
Total assets |
$ |
3,456,039 |
$ |
3,131,840 |
$ |
2,071,049 |
||||||||||||||||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||||||||||
|
Interest-bearing deposits |
$ |
2,446,443 |
$ |
9,727 |
1.58 % |
$ |
2,222,677 |
$ |
3,443 |
0.62 % |
$ |
1,423,418 |
$ |
2,023 |
0.56 % |
|||||||||||||||
|
Notes payable and fed funds sold |
111,213 |
1,617 |
5.77 % |
83,390 |
1,208 |
5.81 % |
21,278 |
262 |
4.89 % |
|||||||||||||||||||||
|
FHLB advances |
60,176 |
403 |
2.66 % |
46,319 |
120 |
1.04 % |
55,418 |
112 |
0.80 % |
|||||||||||||||||||||
|
Total interest-bearing liabilities |
2,617,832 |
11,747 |
1.78 % |
2,352,386 |
4,771 |
0.81 % |
1,500,114 |
2,397 |
0.63 % |
|||||||||||||||||||||
|
Noninterest-bearing deposits |
498,408 |
453,936 |
386,727 |
|||||||||||||||||||||||||||
|
Other liabilities |
31,707 |
22,383 |
9,440 |
|||||||||||||||||||||||||||
|
Total liabilities |
3,147,947 |
2,828,705 |
1,896,281 |
|||||||||||||||||||||||||||
|
Shareholders' equity |
308,092 |
303,135 |
174,768 |
|||||||||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
3,456,039 |
$ |
3,131,840 |
$ |
2,071,049 |
||||||||||||||||||||||||
|
Net interest income |
$ |
31,355 |
$ |
27,738 |
$ |
22,002 |
||||||||||||||||||||||||
|
Net interest spread (1) |
3.40 % |
3.60 % |
4.34 % |
|||||||||||||||||||||||||||
|
Net interest margin (2) |
3.77 % |
3.77 % |
4.49 % |
|||||||||||||||||||||||||||
|
(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 | ||||||||||||||||||||
|
Nine Months Ended |
||||||||||||||||||||
|
September 30, 2022 |
September 30, 2021 |
|||||||||||||||||||
|
(Dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
||||||||||||||
|
Assets |
||||||||||||||||||||
|
Interest-earnings assets: |
||||||||||||||||||||
|
Investment securities |
$ |
115,705 |
$ |
2,537 |
2.93 % |
$ |
27,400 |
$ |
778 |
3.80 % |
||||||||||
|
Loans, gross |
2,577,324 |
98,344 |
5.10 % |
1,603,555 |
72,660 |
6.06 % |
||||||||||||||
|
Federal funds sold and other interest-earning assets |
236,552 |
1,914 |
1.08 % |
282,065 |
517 |
0.25 % |
||||||||||||||
|
Total interest-earning assets |
2,929,581 |
102,795 |
4.69 % |
1,913,020 |
73,955 |
5.17 % |
||||||||||||||
|
Less allowance for loan losses |
(24,265) |
(13,211) |
||||||||||||||||||
|
Total interest-earning assets, net of allowance |
2,905,316 |
1,899,809 |
||||||||||||||||||
|
Noninterest-earning assets |
169,473 |
114,310 |
||||||||||||||||||
|
Total assets |
$ |
3,074,789 |
$ |
2,014,119 |
||||||||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||
|
Interest-bearing deposits |
$ |
2,279,048 |
$ |
15,014 |
0.88 % |
$ |
1,400,424 |
$ |
6,613 |
0.63 % |
||||||||||
|
Notes payable |
65,898 |
2,848 |
5.78 % |
29,475 |
1,080 |
4.90 % |
||||||||||||||
|
FHLB advances |
52,202 |
630 |
1.61 % |
53,115 |
328 |
0.83 % |
||||||||||||||
|
Total interest-bearing liabilities |
2,397,148 |
18,492 |
1.03 % |
1,483,014 |
8,021 |
0.72 % |
||||||||||||||
|
Noninterest-bearing deposits |
351,002 |
380,645 |
||||||||||||||||||
|
Other liabilities |
22,361 |
9,134 |
||||||||||||||||||
|
Total liabilities |
2,770,511 |
1,872,793 |
||||||||||||||||||
|
Shareholders' equity |
304,278 |
141,326 |
||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
3,074,789 |
$ |
2,014,119 |
||||||||||||||||
|
Net interest income |
$ |
84,303 |
$ |
65,934 |
||||||||||||||||
|
Net interest spread (1) |
3.66 % |
4.45 % |
||||||||||||||||||
|
Net interest margin (2) |
3.85 % |
4.61 % |
||||||||||||||||||
|
(1) Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities. | ||||||||
|
(2) Net interest margin represents net interest income divided by average interest-earning assets. | ||||||||
|
(3) Interest earned/paid includes accretion of deferred loan fees, premiums and discounts. | ||||||||
|
Third Coast Bancshares, Inc. and Subsidiary |
|||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||
|
2022 |
2021 |
||||||||||||||||||||
|
(Dollars in thousands) |
September 30 |
June 30 |
March 31 |
December 31 |
September 30 |
||||||||||||||||
|
Period-end Loan Portfolio: |
|||||||||||||||||||||
|
Real estate loans: |
|||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||
|
Non-farm non-residential owner occupied |
$ |
529,046 |
$ |
508,864 |
$ |
477,573 |
$ |
383,941 |
$ |
361,467 |
|||||||||||
|
Non-farm non-residential non-owner occupied |
490,503 |
464,530 |
463,618 |
445,308 |
345,360 |
||||||||||||||||
|
Residential |
283,432 |
273,415 |
225,649 |
213,264 |
179,971 |
||||||||||||||||
|
Construction, development & other |
500,879 |
440,925 |
414,653 |
320,335 |
124,548 |
||||||||||||||||
|
Farmland |
22,770 |
23,895 |
13,467 |
9,934 |
8,309 |
||||||||||||||||
|
Commercial & industrial |
1,029,231 |
914,845 |
756,005 |
611,348 |
538,551 |
||||||||||||||||
|
Consumer |
3,728 |
3,706 |
3,304 |
4,001 |
4,417 |
||||||||||||||||
|
Other |
113,263 |
118,997 |
93,676 |
80,593 |
49,771 |
||||||||||||||||
|
Total loans |
$ |
2,972,852 |
$ |
2,749,177 |
$ |
2,447,945 |
$ |
2,068,724 |
$ |
1,612,394 |
|||||||||||
|
Asset Quality: |
|||||||||||||||||||||
|
Nonaccrual loans |
$ |
9,439 |
$ |
9,806 |
$ |
9,896 |
$ |
10,030 |
$ |
11,077 |
|||||||||||
|
Loans > 90 days and still accruing |
98 |
387 |
40 |
278 |
561 |
||||||||||||||||
|
Restructured loans--accruing |
781 |
785 |
790 |
5,295 |
5,319 |
||||||||||||||||
|
Total nonperforming loans |
$ |
10,318 |
$ |
10,978 |
$ |
10,726 |
$ |
15,603 |
$ |
16,957 |
|||||||||||
|
Other real estate owned |
- |
- |
1,666 |
1,676 |
1,676 |
||||||||||||||||
|
Total nonperforming assets |
$ |
10,318 |
$ |
10,978 |
$ |
12,392 |
$ |
17,279 |
$ |
18,633 |
|||||||||||
|
QTD Net charge-offs (recoveries) |
$ |
457 |
$ |
(4) |
$ |
(17) |
$ |
2,376 |
$ |
146 |
|||||||||||
|
Nonaccrual loans: |
|||||||||||||||||||||
|
Real estate loans: |
|||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||
|
Non-farm non-residential owner occupied |
$ |
921 |
$ |
964 |
$ |
986 |
$ |
1,008 |
$ |
1,032 |
|||||||||||
|
Non-farm non-residential non-owner occupied |
309 |
323 |
334 |
346 |
353 |
||||||||||||||||
|
Residential |
111 |
116 |
121 |
127 |
133 |
||||||||||||||||
|
Construction, development & other |
227 |
232 |
238 |
244 |
251 |
||||||||||||||||
|
Farmland |
- |
- |
- |
- |
- |
||||||||||||||||
|
Commercial & industrial |
7,846 |
8,165 |
8,210 |
8,297 |
9,162 |
||||||||||||||||
|
Consumer |
20 |
- |
- |
- |
- |
||||||||||||||||
|
Other |
- |
- |
- |
- |
- |
||||||||||||||||
|
Purchased credit impaired |
5 |
6 |
7 |
8 |
146 |
||||||||||||||||
|
Total nonaccrual loans |
$ |
9,439 |
$ |
9,806 |
$ |
9,896 |
$ |
10,030 |
$ |
11,077 |
|||||||||||
|
Asset Quality Ratios: |
|||||||||||||||||||||
|
Nonperforming assets to total assets |
0.29 |
% |
0.33 |
% |
0.41 |
% |
0.69 |
% |
0.89 |
% |
|||||||||||
|
Nonperforming loans to total loans |
0.35 |
% |
0.40 |
% |
0.44 |
% |
0.75 |
% |
1.05 |
% |
|||||||||||
|
Allowance for loan losses to total loans |
0.98 |
% |
0.97 |
% |
0.95 |
% |
0.93 |
% |
0.97 |
% |
|||||||||||
|
QTD Net charge-offs(recoveries) to average loans (annualized) |
0.06 |
% |
0.00 |
% |
0.00 |
% |
0.53 |
% |
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 Book Value Per Share, Tangible Common Equity to Tangible Assets Ratio, 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.
|
Three Months Ended |
Year Ended |
|||||||||||||||||||||||
|
2022 |
2021 |
2021 |
||||||||||||||||||||||
|
(Dollars in thousands, except per share data) |
September 30 |
June 30 |
March 31 |
December 31 |
September 30 |
December 31 |
||||||||||||||||||
|
Tangible Common Equity: |
||||||||||||||||||||||||
|
Total shareholders' equity |
$ |
376,354 |
$ |
301,967 |
$ |
301,203 |
$ |
299,007 |
$ |
206,202 |
$ |
299,007 |
||||||||||||
|
Less: Preferred stock including additional paid in capital |
66,273 |
- |
- |
- |
- |
- |
||||||||||||||||||
|
Total common equity |
310,081 |
301,967 |
301,203 |
299,007 |
206,202 |
299,007 |
||||||||||||||||||
|
Less: Goodwill and core deposit intangibles, net |
19,205 |
19,245 |
19,286 |
19,326 |
19,366 |
19,326 |
||||||||||||||||||
|
Tangible common equity |
$ |
290,876 |
$ |
282,722 |
$ |
281,917 |
$ |
279,681 |
$ |
186,836 |
$ |
279,681 |
||||||||||||
|
Common shares outstanding at end of period |
13,521,826 |
13,464,093 |
13,445,782 |
13,403,324 |
9,313,929 |
13,403,324 |
||||||||||||||||||
|
Book Value Per Share |
$ |
22.93 |
$ |
22.43 |
$ |
22.40 |
$ |
22.31 |
$ |
22.14 |
$ |
22.31 |
||||||||||||
|
Tangible Book Value Per Share |
$ |
21.51 |
$ |
21.00 |
$ |
20.97 |
$ |
20.87 |
$ |
20.06 |
$ |
20.87 |
||||||||||||
|
Tangible Assets: |
||||||||||||||||||||||||
|
Total assets |
$ |
3,516,845 |
$ |
3,358,062 |
$ |
3,040,388 |
$ |
2,499,412 |
$ |
2,082,171 |
$ |
2,499,412 |
||||||||||||
|
Adjustments: Goodwill and core deposit intangibles, net |
19,205 |
19,245 |
19,286 |
19,326 |
19,366 |
19,326 |
||||||||||||||||||
|
Tangible assets |
$ |
3,497,640 |
$ |
3,338,817 |
$ |
3,021,102 |
$ |
2,480,086 |
$ |
2,062,805 |
$ |
2,480,086 |
||||||||||||
|
Total Common Equity to Total Assets |
8.82 |
% |
8.99 |
% |
9.91 |
% |
11.96 |
% |
9.90 |
% |
11.96 |
% |
||||||||||||
|
Tangible Common Equity to Tangible Assets |
8.32 |
% |
8.47 |
% |
9.33 |
% |
11.28 |
% |
9.06 |
% |
11.28 |
% |
||||||||||||
|
Three Months Ended |
Year Ended |
|||||||||||||||||||||||
|
2022 |
2021 |
2021 |
||||||||||||||||||||||
|
(Dollars in thousands, except per share data) |
September 30 |
June 30 |
March 31 |
December 31 |
September 30 |
December 31 |
||||||||||||||||||
|
Average Tangible Common Equity: |
||||||||||||||||||||||||
|
Average shareholders' equity |
$ |
308,092 |
$ |
303,135 |
$ |
301,537 |
$ |
257,583 |
$ |
174,768 |
$ |
170,630 |
||||||||||||
|
Less: Average preferred stock including additional paid in capital |
720 |
- |
- |
- |
- |
- |
||||||||||||||||||
|
Average common equity |
307,372 |
303,135 |
301,537 |
257,583 |
174,768 |
170,630 |
||||||||||||||||||
|
Less: Average goodwill and core deposit intangibles, net |
19,225 |
19,265 |
19,306 |
19,343 |
19,383 |
19,404 |
||||||||||||||||||
|
Average tangible common equity |
$ |
288,147 |
$ |
283,870 |
$ |
282,231 |
$ |
238,240 |
$ |
155,385 |
$ |
151,226 |
||||||||||||
|
Net Income |
$ |
6,770 |
$ |
2,277 |
$ |
2,087 |
$ |
354 |
$ |
2,385 |
$ |
11,424 |
||||||||||||
|
Return on Average Common Equity |
8.74 |
% |
3.01 |
% |
2.81 |
% |
0.55 |
% |
5.41 |
% |
6.70 |
% |
||||||||||||
|
Return on Average Tangible Common Equity |
9.32 |
% |
3.22 |
% |
3.00 |
% |
0.59 |
% |
6.09 |
% |
7.55 |
% |
||||||||||||
View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-third-quarter-2022-financial-results-301660506.html
SOURCE Third Coast Bancshares