Third Coast Bancshares, Inc. Reports 2024 First Quarter Financial Results
Continued Growth Results in Record EPS of $0.68 and Diluted EPS of $0.61
HOUSTON, April 24, 2024 /PRNewswire/ -- Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank, today reported its 2024 first quarter financial results.
2024 First Quarter Financial and Operational Highlights
- Net income for the first quarter of 2024 totaled $10.4 million, or $0.68 and $0.61 per basic and diluted share, respectively, compared to $9.7 million, or $0.62 and $0.57 per basic and diluted share, respectively, for the fourth quarter of 2023.
- Total assets increased $264.3 million to a record $4.66 billion as of March 31, 2024, or 6.0% over the $4.40 billion reported as of December 31, 2023.
- Gross loans grew $107.4 million to $3.75 billion as of March 31, 2024, 3.0% more than the $3.64 billion reported as of December 31, 2023.
- Deposits increased $247.5 million to $4.05 billion as of March 31, 2024, or 6.5% over the $3.80 billion reported as of December 31, 2023.
- Book value per share and tangible book value per share(1) increased to $26.18 and $24.79, respectively, as of March 31, 2024, compared to $25.41 and $24.02, respectively, as of December 31, 2023.
- Opened our 17th location in April 2024 with a de novo branch located in Austin, 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's first quarter results delivered impressive growth across various performance indicators, including the expansion of our balance sheet, improved profitability, and increased operational efficiencies, through prudent expense management," said Bart Caraway, Chairman, President, and CEO of Third Coast. "Growth in assets, loans, and deposits represented records for the Company, ending the quarter at $4.66 billion in total assets. These results underscore the dedication and hard work of our team as well as our success in aligning the Company's growth initiatives with strategic vision and investor objectives."
"As we look ahead, our steadfast focus remains on steering the Company towards its strategic goals within the context of the 2024 economic and operational environment. We will continue to execute on a well-balanced business model by generating strong asset growth and maintaining solid credit quality, while improving our efficiency ratio. We have full confidence in the adaptability and proficiency of our team to navigate challenges and capitalize on opportunities as we advance through the year. Through a culture that prioritizes innovation and collaboration, Third Coast is committed to offering a high-quality product portfolio, pursuing an excellent customer experience and delivering shareholder value," Mr. Caraway concluded.
Operating Results
Net Income and Earnings Per Share
Net income totaled $10.4 million for the first quarter of 2024, compared to $9.7 million for the fourth quarter of 2023 and $9.2 million for the first quarter of 2023. Net income available to common shareholders totaled $9.2 million for the first quarter of 2024, compared to $8.5 million for the fourth quarter of 2023 and $8.1 million for the first quarter of 2023. The quarter-over-quarter increase was primarily due to an increase in net interest income resulting from higher rates on investments and other interest earning assets and savings on noninterest expenses related to the implementation of cost reduction initiatives in prior quarters. Additionally, the increase in net income was offset by a slightly higher provision for credit losses for the quarter. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended March 31, 2024 and December 31, 2023. Basic and diluted earnings per share were $0.68 per share and $0.61 per share, respectively, in the first quarter of 2024 compared to $0.62 per share and $0.57 per share, respectively, in the fourth quarter of 2023 and $0.60 per share and $0.55 per share, respectively, in the first quarter of 2023.
Net Interest Margin and Net Interest Income
The net interest margin for the first quarter of 2024 was 3.60%, compared to 3.61% for the fourth quarter of 2023 and 3.79% for the first quarter of 2023. The yield on loans for the first quarter of 2024 was consistent with the fourth quarter of 2023 at 7.75% and up from 6.90% for the first quarter of 2023.
Net interest income totaled $38.1 million for the first quarter of 2024, an increase of 2.0% from $37.3 million for the fourth quarter of 2023 and an increase of 16.0% from $32.8 million for the first quarter of 2023. Interest income totaled $78.9 million for the first quarter of 2024, an increase of 2.3% from $77.1 million for the fourth quarter of 2023 and an increase of 37.5% from $57.4 million for the first quarter of 2023. Interest and fees on loans increased $346,000, or 0.5%, compared to the fourth quarter of 2023, and increased $16.8 million, or 31.1%, compared to the first quarter of 2023. Interest expense was $40.8 million for the first quarter of 2024, an increase of $1.1 million, or 2.7%, from $39.7 million for the fourth quarter of 2023 and an increase of $16.2 million, or 66.2%, from $24.5 million for the first quarter of 2023.
Noninterest Income and Noninterest Expense
Noninterest income totaled $2.3 million for the first quarter of 2024, compared to $2.2 million for the fourth quarter of 2023 and $1.9 million for the first quarter of 2023. The sequential increase in noninterest income was primarily due to increased fees from service charges and other fees that were offset by a decrease in fees from derivative transactions.
Noninterest expense totaled $25.9 million for the first quarter of 2024, down from $26.4 million for the fourth quarter of 2023 and up from $22.0 million for the first quarter of 2023. The year-over-year increase was primarily attributed to increased salary expenses, investment in new technology and software, increase in regulatory assessments, increase in data processing expenses related to growth and new products, increased expenses related to new offices, and increased other expenses such as franchise taxes, fraud losses, and deposit related fees.
The efficiency ratio was 64.11% for the first quarter of 2024, compared to 66.89% for the fourth quarter of 2023 and 63.47% for the first quarter of 2023.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended March 31, 2024, gross loans increased to $3.75 billion, an increase of $107.4 million, or 3.0%, from $3.64 billion as of December 31, 2023, and an increase of $532.9 million, or 16.6%, from $3.21 billion as of March 31, 2023. Commercial and industrial and real estate loans accounted for most of the loan growth for the first quarter of 2024, with commercial and industrial loans increasing $87.2 million and real estate loans increasing $35.4 million from December 31, 2023. The increases were offset slightly by a decrease in municipal loans of $15.0 million from December 31, 2023.
Asset Quality
Nonperforming loans were $21.7 million at March 31, 2024, compared to $17.3 million at December 31, 2023, and $9.5 million at March 31, 2023. As of March 31, 2024, the nonperforming loans to total loans ratio was 0.58%, compared to 0.48% as of December 31, 2023, and 0.30% as of March 31, 2023. The net increase in nonaccrual loans from quarter-to-quarter of $1.5 million was primarily the result of three commercial and industrial loans and a commercial real estate loan being placed on nonaccrual totaling $3.0 million. The increase was partially offset by nonaccrual loan charge-offs of $549,000 and nonaccrual loan paydowns of $629,000 during the quarter. The increase in loans over 90 days and still accruing was primarily the result of a $2.9 million commercial real estate loan that matured and was pending renewal at the end of the quarter.
The provision for credit loss recorded for the first quarter of 2024 was $1.6 million and related to provisioning for new loans and commitments. The allowance for credit losses of $38.1 million represented 1.02% of the $3.75 billion in gross loans outstanding as of March 31, 2024.
The Company recorded a net charge-off of $742,000 for the three months ended March 31, 2024 and a net recovery of $364,000 for the three months ended March 31, 2023.
Deposits and Composition
Deposits totaled $4.05 billion as of March 31, 2024, an increase of 6.5% from $3.80 billion as of December 31, 2023, and an increase of 21.9% from $3.32 billion as of March 31, 2023. Noninterest-bearing demand deposits decreased from $459.6 million as of December 31, 2023, to $424.0 million as of March 31, 2024 and represented 10.5% of total deposits as of March 31, 2024, compared to 12.1% of total deposits as of December 31, 2023. As of March 31, 2024, interest-bearing demand deposits increased $242.2 million, or 8.5%, time deposits increased $25.2 million, or 5.3%, and savings accounts increased $15.6 million, or 62.6%, respectively, from December 31, 2023.
The average cost of deposits was 4.09% for the first quarter of 2024, representing a 2-basis point increase from the fourth quarter of 2023 and a 117-basis point increase from the first quarter of 2023. The year-over-year increase was due to interest-bearing demand deposit growth and the increase in rates paid on interest-bearing demand deposits.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss its 2024 first quarter results, which will be broadcast live over the Internet, on Thursday, April 25, 2024, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate in the call, dial 201-389-0869 and ask for the Third Coast Bancshares, Inc. call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through May 2, 2024, and may be accessed by dialing 201-612-7415 and using passcode 13744292#. Also, an archive of the webcast will be available shortly after the call at https://ir.thirdcoast.bank/events-and-presentations/events/ for 90 days.
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a commercially focused, Texas-based bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 17 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; and changes in key management personnel. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the "SEC"), and our other filings with the SEC.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, including Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets and Return on Average Tangible Common Equity, which are supplemental measures that are not required by, or are not presented in accordance with GAAP. Please refer to the table titled "GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures" at the end of this press release for a reconciliation of these non-GAAP financial measures.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
2024
2023
(Dollars in thousands)
March 31
December 31
September 30
June 30
March 31
ASSETS
Cash and cash equivalents:
Cash and due from banks
$
367,831
$
296,926
$
142,122
$
244,813
$
309,153
Federal funds sold
130,429
114,919
144,408
23,206
1,789
Total cash and cash equivalents
498,260
411,845
286,530
268,019
310,942
Investment securities available-for-sale
246,291
178,087
201,035
194,467
180,376
Loans held for investment
3,746,178
3,638,788
3,559,953
3,334,277
3,213,326
Less: allowance for credit losses
(38,140)
(37,022)
(38,067)
(37,243)
(35,915)
Loans, net
3,708,038
3,601,766
3,521,886
3,297,034
3,177,411
Accrued interest receivable
25,769
23,120
22,821
19,579
19,026
Premises and equipment, net
26,844
28,554
29,010
28,720
28,504
Bank-owned life insurance
66,443
65,861
65,303
64,762
64,235
Non-marketable securities, at cost
16,095
16,041
15,799
20,687
14,751
Deferred tax asset, net
8,712
9,227
8,335
7,808
7,146
Derivative assets
11,015
8,828
10,889
9,372
8,793
Right-of-use assets - operating leases
20,729
21,439
21,192
21,778
19,328
Core Deposit Intangible, net
929
969
1,009
1,050
1,090
Goodwill
18,034
18,034
18,034
18,034
18,034
Other assets
13,244
12,303
13,949
12,172
10,021
Total assets
$
4,660,403
$
4,396,074
$
4,215,792
$
3,963,482
$
3,859,657
LIABILITIES
Deposits:
Noninterest bearing
$
424,019
$
459,553
$
500,187
$
529,474
$
516,909
Interest bearing
3,626,653
3,343,595
3,146,635
2,878,807
2,805,624
Total deposits
4,050,672
3,803,148
3,646,822
3,408,281
3,322,533
Accrued interest payable
3,927
4,794
4,318
3,522
1,636
Derivative liabilities
8,253
10,687
10,519
9,177
7,271
Lease liability - operating leases
21,647
22,280
21,958
22,439
19,845
Other liabilities
27,806
23,763
15,467
12,792
10,054
Line of credit - Senior Debt
43,875
38,875
35,875
30,875
30,875
Note payable - Subordinated Debentures, net
80,605
80,553
80,502
80,451
80,399
Total liabilities
4,236,785
3,984,100
3,815,461
3,567,537
3,472,613
SHAREHOLDERS' EQUITY
Series A Convertible Non-Cumulative Preferred Stock
69
69
69
69
69
Series B Convertible Perpetual Preferred Stock
-
-
-
-
-
Common stock
13,731
13,683
13,679
13,688
13,658
Common stock - non-voting
-
-
-
-
-
Additional paid-in capital
320,077
319,613
319,134
318,769
318,350
Retained earnings
87,971
78,775
70,283
65,889
58,182
Accumulated other comprehensive income (loss)
2,869
933
(1,735)
(1,371)
(2,116)
Treasury stock, at cost
(1,099)
(1,099)
(1,099)
(1,099)
(1,099)
Total shareholders' equity
423,618
411,974
400,331
395,945
387,044
Total liabilities and shareholders' equity
$
4,660,403
$
4,396,074
$
4,215,792
$
3,963,482
$
3,859,657
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
Year Ended
2024
2023
2023
(Dollars in thousands, except per share data)
March 31
December 31
September 30
June 30
March 31
December 31
INTEREST INCOME:
Loans, including fees
$
70,671
$
70,325
$
65,380
$
59,295
$
53,911
$
248,911
Investment securities available-for-sale
3,093
2,746
1,990
2,029
1,548
8,313
Federal funds sold and other
5,112
3,996
2,015
1,389
1,920
9,320
Total interest income
78,876
77,067
69,385
62,713
57,379
266,544
INTEREST EXPENSE:
Deposit accounts
38,698
37,671
30,345
24,936
22,092
115,044
FHLB advances and other borrowings
2,099
2,065
3,772
3,681
2,457
11,975
Total interest expense
40,797
39,736
34,117
28,617
24,549
127,019
Net interest income
38,079
37,331
35,268
34,096
32,830
139,525
Provision for credit losses
1,560
1,100
2,620
1,400
1,200
6,320
Net interest income after credit loss expense
36,519
36,231
32,648
32,696
31,630
133,205
NONINTEREST INCOME:
Service charges and fees
1,505
850
884
720
779
3,233
Earnings on bank-owned life insurance
582
559
541
526
475
2,101
Gain on sale of investment securities available-for-sale
157
21
364
-
97
482
Gain on sale of SBA loans
30
326
114
-
-
440
Derivative fees
66
358
159
247
(1)
763
Other
3
43
(196)
787
552
1,186
Total noninterest income
2,343
2,157
1,866
2,280
1,902
8,205
NONINTEREST EXPENSE:
Salaries and employee benefits
16,502
16,119
17,353
15,033
13,712
62,217
Occupancy and equipment expense
3,045
2,875
2,925
2,852
2,633
11,285
Legal and professional
1,385
2,305
2,001
1,547
1,930
7,783
Data processing and network expense
1,418
987
1,284
1,261
1,203
4,735
Regulatory assessments
980
942
532
458
666
2,598
Advertising and marketing
355
614
515
812
686
2,627
Software purchases and maintenance
817
839
729
455
352
2,375
Loan operations
226
134
272
302
(35)
673
Telephone and communications
134
125
117
129
139
510
Other
1,052
1,474
1,777
986
758
4,995
Total noninterest expense
25,914
26,414
27,505
23,835
22,044
99,798
NET INCOME BEFORE INCOME TAX
EXPENSE
12,948
11,974
7,009
11,141
11,488
41,612
Income tax expense
2,581
2,285
1,431
2,250
2,245
8,211
NET INCOME
10,367
9,689
5,578
8,891
9,243
33,401
Preferred stock dividends declared
1,171
1,197
1,184
1,184
1,171
4,736
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS
$
9,196
$
8,492
$
4,394
$
7,707
$
8,072
$
28,665
EARNINGS PER COMMON SHARE:
Basic earnings per share
$
0.68
$
0.62
$
0.32
$
0.57
$
0.60
$
2.11
Diluted earnings per share
$
0.61
$
0.57
$
0.32
$
0.53
$
0.55
$
1.98
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
Year Ended
2024
2023
2023
(Dollars in thousands, except share and per share data)
March 31
December 31
September 30
June 30
March 31
December 31
Earnings per share, basic
$
0.68
$
0.62
$
0.32
$
0.57
$
0.60
$
2.11
Earnings per share, diluted
$
0.61
$
0.57
$
0.32
$
0.53
$
0.55
$
1.98
Dividends on common stock
$
-
$
-
$
-
$
-
$
-
$
-
Dividends on Series A Convertible
Non-Cumulative Preferred Stock
$
16.88
$
17.25
$
17.06
$
17.06
$
16.88
$
68.25
Return on average assets (A)
0.95
%
0.90
%
0.56
%
0.96
%
1.02
%
0.86
%
Return on average common equity (A)
10.44
%
9.86
%
5.19
%
9.44
%
10.28
%
8.66
%
Return on average tangible common
equity (A) (B)
11.03
%
10.44
%
5.50
%
10.02
%
10.93
%
9.19
%
Net interest margin (A) (C)
3.60
%
3.61
%
3.71
%
3.82
%
3.79
%
3.73
%
Efficiency ratio (D)
64.11
%
66.89
%
74.07
%
65.52
%
63.47
%
67.55
%
Capital Ratios
Third Coast Bancshares, Inc. (consolidated):
Total common equity to total assets
7.67
%
7.86
%
7.93
%
8.32
%
8.31
%
7.86
%
Tangible common equity to tangible
assets (B)
7.29
%
7.46
%
7.51
%
7.88
%
7.86
%
7.46
%
Common equity tier 1 (to risk weighted
assets)
7.97
%
8.06
%
8.01
%
7.75
%
7.89
%
8.06
%
Tier 1 capital (to risk weighted assets)
9.54
%
9.70
%
9.68
%
9.39
%
9.61
%
9.70
%
Total capital (to risk weighted assets)
12.41
%
12.66
%
12.72
%
12.31
%
12.63
%
12.66
%
Tier 1 capital (to average assets)
9.15
%
9.23
%
9.79
%
10.17
%
10.14
%
9.23
%
Third Coast Bank:
Common equity tier 1 (to risk weighted
assets)
12.32
%
12.52
%
12.48
%
12.06
%
12.32
%
12.52
%
Tier 1 capital (to risk weighted assets)
12.32
%
12.52
%
12.48
%
12.06
%
12.32
%
12.52
%
Total capital (to risk weighted assets)
13.28
%
13.49
%
13.49
%
12.99
%
13.25
%
13.49
%
Tier 1 capital (to average assets)
11.81
%
11.91
%
12.62
%
13.06
%
13.00
%
11.91
%
Other Data
Weighted average shares:
Basic
13,606,256
13,603,149
13,608,718
13,588,747
13,532,545
13,583,553
Diluted
16,936,003
16,890,381
13,873,187
16,855,822
16,801,815
16,877,891
Period end shares outstanding
13,652,888
13,604,665
13,600,211
13,609,697
13,579,498
13,604,665
Book value per share
$
26.18
$
25.41
$
24.57
$
24.23
$
23.63
$
25.41
Tangible book value per share (B)
$
24.79
$
24.02
$
23.17
$
22.82
$
22.22
$
24.02
___________
(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 11 and 12 of this News Release.
(C)
Net interest margin represents net interest income divided by average interest-earning assets.
(D)
Represents total noninterest expense divided by the sum of net interest income plus noninterest income. Taxes and provision for credit losses are not part of this calculation.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
(Dollars in thousands)
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate(4)
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate(4)
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate(4)
Assets
Interest-earnings assets:
Investment securities
$
202,277
$
3,093
6.15 %
$
203,376
$
2,746
5.36 %
$
178,197
$
1,548
3.52 %
Loans, gross
3,665,378
70,671
7.75 %
3,600,980
70,325
7.75 %
3,170,828
53,911
6.90 %
Federal funds sold and other
interest-earning assets
383,929
5,112
5.36 %
299,165
3,996
5.30 %
167,694
1,920
4.64 %
Total interest-earning assets
4,251,584
78,876
7.46 %
4,103,521
77,067
7.45 %
3,516,719
57,379
6.62 %
Less allowance for loan losses
(37,278)
(38,274)
(34,879)
Total interest-earning assets, net of
allowance
4,214,306
4,065,247
3,481,840
Noninterest-earning assets
193,070
194,659
182,869
Total assets
$
4,407,376
$
4,259,906
$
3,664,709
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits
$
3,346,847
$
38,698
4.65 %
$
3,202,462
$
37,671
4.67 %
$
2,595,750
$
22,092
3.45 %
Note payable and line of credit
120,884
2,099
6.98 %
118,816
2,065
6.90 %
111,250
1,814
6.61 %
FHLB advances
—
—
—
—
—
—
52,803
643
4.94 %
Total interest-bearing liabilities
3,467,731
40,797
4.73 %
3,321,278
39,736
4.75 %
2,759,803
24,549
3.61 %
Noninterest-bearing deposits
457,054
472,738
477,706
Other liabilities
61,945
57,918
42,406
Total liabilities
3,986,730
3,851,934
3,279,915
Shareholders' equity
420,646
407,972
384,794
Total liabilities and shareholders'
equity
$
4,407,376
$
4,259,906
$
3,664,709
Net interest income
$
38,079
$
37,331
$
32,830
Net interest spread (1)
2.73 %
2.70 %
3.01 %
Net interest margin (2)
3.60 %
3.61 %
3.79 %
___________
(1)
Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities.
(2)
Net interest margin represents net interest income divided by average interest-earning assets.
(3)
Interest earned/paid includes accretion of deferred loan fees, premiums and discounts.
(4)
Annualized.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
2024
2023
(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
$
510,266
$
520,822
$
517,917
$
513,934
$
508,936
Non-farm non-residential non-owner occupied
598,311
586,626
566,973
547,120
511,546
Residential
345,890
342,589
326,354
310,842
286,358
Construction, development & other
725,176
693,553
655,822
595,601
627,143
Farmland
29,706
30,396
30,646
24,219
22,512
Commercial & industrial
1,350,289
1,263,077
1,288,320
1,164,624
1,112,638
Consumer
2,382
2,555
2,665
2,891
3,280
Municipal and other
184,158
199,170
171,256
175,046
140,913
Total loans
$
3,746,178
$
3,638,788
$
3,559,953
$
3,334,277
$
3,213,326
Asset Quality:
Nonaccrual loans
$
18,130
$
16,649
$
13,963
$
9,968
$
9,482
Loans > 90 days and still accruing
3,614
670
2,442
-
-
Total nonperforming loans
21,744
17,319
16,405
9,968
9,482
Other real estate owned
-
-
-
-
-
Total nonperforming assets
$
21,744
$
17,319
$
16,405
$
9,968
$
9,482
QTD Net charge-offs (recoveries)
$
742
$
1,505
$
24
$
72
$
(364)
Nonaccrual loans:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied
$
2,369
$
1,211
$
978
$
832
$
855
Non-farm non-residential non-owner occupied
1,225
1,235
1,235
1,417
282
Residential
2,837
2,938
3,058
494
506
Construction, development & other
406
247
567
36
39
Commercial & industrial
11,293
11,018
8,125
7,189
7,800
Total nonaccrual loans
$
18,130
$
16,649
$
13,963
$
9,968
$
9,482
Asset Quality Ratios:
Nonperforming assets to total assets
0.47
%
0.39
%
0.39
%
0.25
%
0.25
%
Nonperforming loans to total loans
0.58
%
0.48
%
0.46
%
0.30
%
0.30
%
Allowance for credit losses to total loans
1.02
%
1.02
%
1.07
%
1.12
%
1.12
%
QTD Net charge-offs (recoveries) to average loans
(annualized)
0.08
%
0.17
%
0.00
%
0.01
%
(0.05)
%
Third Coast Bancshares, Inc. and Subsidiary
GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
(unaudited)
Our accounting and reporting policies conform to GAAP (generally accepted accounting principles) and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional financial measures discussed in this earnings release as being non-GAAP financial measures. Specifically, we review Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Return on Average Tangible Common Equity for internal planning and forecasting purposes. We classify a financial measure as a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are not included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios, or statistical measures calculated using exclusively financial measures calculated in accordance with GAAP.
The non-GAAP financial measures that we discuss in this earnings release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this earnings release may differ from that of other companies reporting measures with similar names. It is important to understand how other banking organizations calculate their financial measures with names similar to the non-GAAP financial measures we have discussed in this earnings release when comparing such non-GAAP financial measures.
Management believes the following non-GAAP financial measures assist investors in understanding the financial condition of the company:
-
Tangible Common Equity. The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity.
-
Tangible Book Value Per Share. The most directly comparable GAAP financial measure for tangible book value per share is book value per share. We believe that the tangible book value per share measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value.
-
Tangible Common Equity to Tangible Assets. The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity, the most directly comparable GAAP financial measure for tangible assets is total assets, and the most directly comparable GAAP financial measure for tangible common equity to tangible assets is total shareholders' equity to total assets. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity to tangible assets, each exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing both total shareholders' equity and assets while not increasing our tangible common equity or tangible assets.
-
Return on Average Tangible Common Equity. The most directly comparable GAAP financial measure for average tangible common equity is average shareholders' equity, and the most directly comparable GAAP financial measure for return on average tangible common equity is return on average common equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of return on average tangible common equity, exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing average shareholders' equity while not increasing our tangible common equity.
The calculations of these non-GAAP financial measures are as follows:
Three Months Ended
Year Ended
2024
2023
2023
(Dollars in thousands, except share and per share data)
March 31
December 31
September 30
June 30
March 31
December 31
Tangible Common Equity:
Total shareholders' equity
$
423,618
$
411,974
$
400,331
$
395,945
$
387,044
$
411,974
Less: Preferred stock including additional
paid in capital
66,225
66,225
66,225
66,225
66,225
66,225
Total common equity
357,393
345,749
334,106
329,720
320,819
345,749
Less: Goodwill and core deposit intangibles,
net
18,963
19,003
19,043
19,084
19,124
19,003
Tangible common equity
$
338,430
$
326,746
$
315,063
$
310,636
$
301,695
$
326,746
Common shares outstanding at end of period
13,652,888
13,604,665
13,600,211
13,609,697
13,579,498
13,604,665
Book Value Per Share
$
26.18
$
25.41
$
24.57
$
24.23
$
23.63
$
25.41
Tangible Book Value Per Share
$
24.79
$
24.02
$
23.17
$
22.82
$
22.22
$
24.02
Tangible Assets:
Total assets
$
4,660,403
$
4,396,074
$
4,215,792
$
3,963,482
$
3,859,657
$
4,396,074
Adjustments: Goodwill and core deposit
intangibles, net
18,963
19,003
19,043
19,084
19,124
19,003
Tangible assets
$
4,641,440
$
4,377,071
$
4,196,749
$
3,944,398
$
3,840,533
$
4,377,071
Total Common Equity to Total Assets
7.67
%
7.86
%
7.93
%
8.32
%
8.31
%
7.86
%
Tangible Common Equity to Tangible Assets
7.29
%
7.46
%
7.51
%
7.88
%
7.86
%
7.46
%
Average Tangible Common Equity:
Average shareholders' equity
$
420,646
$
407,972
$
402,049
$
393,773
$
384,794
$
397,224
Less: Average preferred stock including
additional paid in capital
66,225
66,225
66,225
66,225
66,225
66,225
Average common equity
354,421
341,747
335,824
327,548
318,569
330,999
Less: Average goodwill and core deposit
intangibles, net
18,987
19,027
19,068
19,108
19,149
19,088
Average tangible common equity
$
335,434
$
322,720
$
316,756
$
308,440
$
299,420
$
311,911
Net Income
$
10,367
$
9,689
$
5,578
$
8,891
$
9,243
$
33,401
Less: Dividends declared on preferred stock
1,171
1,197
1,184
1,184
1,171
4,736
Net Income Available to Common Shareholders
$
9,196
$
8,492
$
4,394
$
7,707
$
8,072
$
28,665
Return on Average Common Equity(A)
10.44
%
9.86
%
5.19
%
9.44
%
10.28
%
8.66
%
Return on Average Tangible Common Equity(A)
11.03
%
10.44
%
5.50
%
10.02
%
10.93
%
9.19
%
___________
(A)
Interim periods annualized.
Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
(713) 529-6600
TCBX@dennardlascar.com
View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-2024-first-quarter-financial-results-302126511.html
SOURCE Third Coast Bancshares
Continued Growth Results in Record EPS of $0.68 and Diluted EPS of $0.61
HOUSTON, April 24, 2024 /PRNewswire/ -- Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank, today reported its 2024 first quarter financial results.
2024 First Quarter Financial and Operational Highlights
- Net income for the first quarter of 2024 totaled $10.4 million, or $0.68 and $0.61 per basic and diluted share, respectively, compared to $9.7 million, or $0.62 and $0.57 per basic and diluted share, respectively, for the fourth quarter of 2023.
- Total assets increased $264.3 million to a record $4.66 billion as of March 31, 2024, or 6.0% over the $4.40 billion reported as of December 31, 2023.
- Gross loans grew $107.4 million to $3.75 billion as of March 31, 2024, 3.0% more than the $3.64 billion reported as of December 31, 2023.
- Deposits increased $247.5 million to $4.05 billion as of March 31, 2024, or 6.5% over the $3.80 billion reported as of December 31, 2023.
- Book value per share and tangible book value per share(1) increased to $26.18 and $24.79, respectively, as of March 31, 2024, compared to $25.41 and $24.02, respectively, as of December 31, 2023.
- Opened our 17th location in April 2024 with a de novo branch located in Austin, 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's first quarter results delivered impressive growth across various performance indicators, including the expansion of our balance sheet, improved profitability, and increased operational efficiencies, through prudent expense management," said Bart Caraway, Chairman, President, and CEO of Third Coast. "Growth in assets, loans, and deposits represented records for the Company, ending the quarter at $4.66 billion in total assets. These results underscore the dedication and hard work of our team as well as our success in aligning the Company's growth initiatives with strategic vision and investor objectives."
"As we look ahead, our steadfast focus remains on steering the Company towards its strategic goals within the context of the 2024 economic and operational environment. We will continue to execute on a well-balanced business model by generating strong asset growth and maintaining solid credit quality, while improving our efficiency ratio. We have full confidence in the adaptability and proficiency of our team to navigate challenges and capitalize on opportunities as we advance through the year. Through a culture that prioritizes innovation and collaboration, Third Coast is committed to offering a high-quality product portfolio, pursuing an excellent customer experience and delivering shareholder value," Mr. Caraway concluded.
Operating Results
Net Income and Earnings Per Share
Net income totaled $10.4 million for the first quarter of 2024, compared to $9.7 million for the fourth quarter of 2023 and $9.2 million for the first quarter of 2023. Net income available to common shareholders totaled $9.2 million for the first quarter of 2024, compared to $8.5 million for the fourth quarter of 2023 and $8.1 million for the first quarter of 2023. The quarter-over-quarter increase was primarily due to an increase in net interest income resulting from higher rates on investments and other interest earning assets and savings on noninterest expenses related to the implementation of cost reduction initiatives in prior quarters. Additionally, the increase in net income was offset by a slightly higher provision for credit losses for the quarter. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended March 31, 2024 and December 31, 2023. Basic and diluted earnings per share were $0.68 per share and $0.61 per share, respectively, in the first quarter of 2024 compared to $0.62 per share and $0.57 per share, respectively, in the fourth quarter of 2023 and $0.60 per share and $0.55 per share, respectively, in the first quarter of 2023.
Net Interest Margin and Net Interest Income
The net interest margin for the first quarter of 2024 was 3.60%, compared to 3.61% for the fourth quarter of 2023 and 3.79% for the first quarter of 2023. The yield on loans for the first quarter of 2024 was consistent with the fourth quarter of 2023 at 7.75% and up from 6.90% for the first quarter of 2023.
Net interest income totaled $38.1 million for the first quarter of 2024, an increase of 2.0% from $37.3 million for the fourth quarter of 2023 and an increase of 16.0% from $32.8 million for the first quarter of 2023. Interest income totaled $78.9 million for the first quarter of 2024, an increase of 2.3% from $77.1 million for the fourth quarter of 2023 and an increase of 37.5% from $57.4 million for the first quarter of 2023. Interest and fees on loans increased $346,000, or 0.5%, compared to the fourth quarter of 2023, and increased $16.8 million, or 31.1%, compared to the first quarter of 2023. Interest expense was $40.8 million for the first quarter of 2024, an increase of $1.1 million, or 2.7%, from $39.7 million for the fourth quarter of 2023 and an increase of $16.2 million, or 66.2%, from $24.5 million for the first quarter of 2023.
Noninterest Income and Noninterest Expense
Noninterest income totaled $2.3 million for the first quarter of 2024, compared to $2.2 million for the fourth quarter of 2023 and $1.9 million for the first quarter of 2023. The sequential increase in noninterest income was primarily due to increased fees from service charges and other fees that were offset by a decrease in fees from derivative transactions.
Noninterest expense totaled $25.9 million for the first quarter of 2024, down from $26.4 million for the fourth quarter of 2023 and up from $22.0 million for the first quarter of 2023. The year-over-year increase was primarily attributed to increased salary expenses, investment in new technology and software, increase in regulatory assessments, increase in data processing expenses related to growth and new products, increased expenses related to new offices, and increased other expenses such as franchise taxes, fraud losses, and deposit related fees.
The efficiency ratio was 64.11% for the first quarter of 2024, compared to 66.89% for the fourth quarter of 2023 and 63.47% for the first quarter of 2023.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended March 31, 2024, gross loans increased to $3.75 billion, an increase of $107.4 million, or 3.0%, from $3.64 billion as of December 31, 2023, and an increase of $532.9 million, or 16.6%, from $3.21 billion as of March 31, 2023. Commercial and industrial and real estate loans accounted for most of the loan growth for the first quarter of 2024, with commercial and industrial loans increasing $87.2 million and real estate loans increasing $35.4 million from December 31, 2023. The increases were offset slightly by a decrease in municipal loans of $15.0 million from December 31, 2023.
Asset Quality
Nonperforming loans were $21.7 million at March 31, 2024, compared to $17.3 million at December 31, 2023, and $9.5 million at March 31, 2023. As of March 31, 2024, the nonperforming loans to total loans ratio was 0.58%, compared to 0.48% as of December 31, 2023, and 0.30% as of March 31, 2023. The net increase in nonaccrual loans from quarter-to-quarter of $1.5 million was primarily the result of three commercial and industrial loans and a commercial real estate loan being placed on nonaccrual totaling $3.0 million. The increase was partially offset by nonaccrual loan charge-offs of $549,000 and nonaccrual loan paydowns of $629,000 during the quarter. The increase in loans over 90 days and still accruing was primarily the result of a $2.9 million commercial real estate loan that matured and was pending renewal at the end of the quarter.
The provision for credit loss recorded for the first quarter of 2024 was $1.6 million and related to provisioning for new loans and commitments. The allowance for credit losses of $38.1 million represented 1.02% of the $3.75 billion in gross loans outstanding as of March 31, 2024.
The Company recorded a net charge-off of $742,000 for the three months ended March 31, 2024 and a net recovery of $364,000 for the three months ended March 31, 2023.
Deposits and Composition
Deposits totaled $4.05 billion as of March 31, 2024, an increase of 6.5% from $3.80 billion as of December 31, 2023, and an increase of 21.9% from $3.32 billion as of March 31, 2023. Noninterest-bearing demand deposits decreased from $459.6 million as of December 31, 2023, to $424.0 million as of March 31, 2024 and represented 10.5% of total deposits as of March 31, 2024, compared to 12.1% of total deposits as of December 31, 2023. As of March 31, 2024, interest-bearing demand deposits increased $242.2 million, or 8.5%, time deposits increased $25.2 million, or 5.3%, and savings accounts increased $15.6 million, or 62.6%, respectively, from December 31, 2023.
The average cost of deposits was 4.09% for the first quarter of 2024, representing a 2-basis point increase from the fourth quarter of 2023 and a 117-basis point increase from the first quarter of 2023. The year-over-year increase was due to interest-bearing demand deposit growth and the increase in rates paid on interest-bearing demand deposits.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss its 2024 first quarter results, which will be broadcast live over the Internet, on Thursday, April 25, 2024, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate in the call, dial 201-389-0869 and ask for the Third Coast Bancshares, Inc. call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through May 2, 2024, and may be accessed by dialing 201-612-7415 and using passcode 13744292#. Also, an archive of the webcast will be available shortly after the call at https://ir.thirdcoast.bank/events-and-presentations/events/ for 90 days.
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a commercially focused, Texas-based bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 17 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; and changes in key management personnel. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the "SEC"), and our other filings with the SEC.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, including Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets and Return on Average Tangible Common Equity, which are supplemental measures that are not required by, or are not presented in accordance with GAAP. Please refer to the table titled "GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures" at the end of this press release for a reconciliation of these non-GAAP financial measures.
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) |
||||||||||||||||||||
|
2024 |
2023 |
|||||||||||||||||||
|
(Dollars in thousands) |
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
|||||||||||||||
|
ASSETS |
||||||||||||||||||||
|
Cash and cash equivalents: |
||||||||||||||||||||
|
Cash and due from banks |
$ |
367,831 |
$ |
296,926 |
$ |
142,122 |
$ |
244,813 |
$ |
309,153 |
||||||||||
|
Federal funds sold |
130,429 |
114,919 |
144,408 |
23,206 |
1,789 |
|||||||||||||||
|
Total cash and cash equivalents |
498,260 |
411,845 |
286,530 |
268,019 |
310,942 |
|||||||||||||||
|
Investment securities available-for-sale |
246,291 |
178,087 |
201,035 |
194,467 |
180,376 |
|||||||||||||||
|
Loans held for investment |
3,746,178 |
3,638,788 |
3,559,953 |
3,334,277 |
3,213,326 |
|||||||||||||||
|
Less: allowance for credit losses |
(38,140) |
(37,022) |
(38,067) |
(37,243) |
(35,915) |
|||||||||||||||
|
Loans, net |
3,708,038 |
3,601,766 |
3,521,886 |
3,297,034 |
3,177,411 |
|||||||||||||||
|
Accrued interest receivable |
25,769 |
23,120 |
22,821 |
19,579 |
19,026 |
|||||||||||||||
|
Premises and equipment, net |
26,844 |
28,554 |
29,010 |
28,720 |
28,504 |
|||||||||||||||
|
Bank-owned life insurance |
66,443 |
65,861 |
65,303 |
64,762 |
64,235 |
|||||||||||||||
|
Non-marketable securities, at cost |
16,095 |
16,041 |
15,799 |
20,687 |
14,751 |
|||||||||||||||
|
Deferred tax asset, net |
8,712 |
9,227 |
8,335 |
7,808 |
7,146 |
|||||||||||||||
|
Derivative assets |
11,015 |
8,828 |
10,889 |
9,372 |
8,793 |
|||||||||||||||
|
Right-of-use assets - operating leases |
20,729 |
21,439 |
21,192 |
21,778 |
19,328 |
|||||||||||||||
|
Core Deposit Intangible, net |
929 |
969 |
1,009 |
1,050 |
1,090 |
|||||||||||||||
|
Goodwill |
18,034 |
18,034 |
18,034 |
18,034 |
18,034 |
|||||||||||||||
|
Other assets |
13,244 |
12,303 |
13,949 |
12,172 |
10,021 |
|||||||||||||||
|
Total assets |
$ |
4,660,403 |
$ |
4,396,074 |
$ |
4,215,792 |
$ |
3,963,482 |
$ |
3,859,657 |
||||||||||
|
LIABILITIES |
||||||||||||||||||||
|
Deposits: |
||||||||||||||||||||
|
Noninterest bearing |
$ |
424,019 |
$ |
459,553 |
$ |
500,187 |
$ |
529,474 |
$ |
516,909 |
||||||||||
|
Interest bearing |
3,626,653 |
3,343,595 |
3,146,635 |
2,878,807 |
2,805,624 |
|||||||||||||||
|
Total deposits |
4,050,672 |
3,803,148 |
3,646,822 |
3,408,281 |
3,322,533 |
|||||||||||||||
|
Accrued interest payable |
3,927 |
4,794 |
4,318 |
3,522 |
1,636 |
|||||||||||||||
|
Derivative liabilities |
8,253 |
10,687 |
10,519 |
9,177 |
7,271 |
|||||||||||||||
|
Lease liability - operating leases |
21,647 |
22,280 |
21,958 |
22,439 |
19,845 |
|||||||||||||||
|
Other liabilities |
27,806 |
23,763 |
15,467 |
12,792 |
10,054 |
|||||||||||||||
|
Line of credit - Senior Debt |
43,875 |
38,875 |
35,875 |
30,875 |
30,875 |
|||||||||||||||
|
Note payable - Subordinated Debentures, net |
80,605 |
80,553 |
80,502 |
80,451 |
80,399 |
|||||||||||||||
|
Total liabilities |
4,236,785 |
3,984,100 |
3,815,461 |
3,567,537 |
3,472,613 |
|||||||||||||||
|
SHAREHOLDERS' EQUITY |
||||||||||||||||||||
|
Series A Convertible Non-Cumulative Preferred Stock |
69 |
69 |
69 |
69 |
69 |
|||||||||||||||
|
Series B Convertible Perpetual Preferred Stock |
- |
- |
- |
- |
- |
|||||||||||||||
|
Common stock |
13,731 |
13,683 |
13,679 |
13,688 |
13,658 |
|||||||||||||||
|
Common stock - non-voting |
- |
- |
- |
- |
- |
|||||||||||||||
|
Additional paid-in capital |
320,077 |
319,613 |
319,134 |
318,769 |
318,350 |
|||||||||||||||
|
Retained earnings |
87,971 |
78,775 |
70,283 |
65,889 |
58,182 |
|||||||||||||||
|
Accumulated other comprehensive income (loss) |
2,869 |
933 |
(1,735) |
(1,371) |
(2,116) |
|||||||||||||||
|
Treasury stock, at cost |
(1,099) |
(1,099) |
(1,099) |
(1,099) |
(1,099) |
|||||||||||||||
|
Total shareholders' equity |
423,618 |
411,974 |
400,331 |
395,945 |
387,044 |
|||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
4,660,403 |
$ |
4,396,074 |
$ |
4,215,792 |
$ |
3,963,482 |
$ |
3,859,657 |
||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) |
|||||||||||||||||||||||||
|
Three Months Ended |
Year Ended |
||||||||||||||||||||||||
|
2024 |
2023 |
2023 |
|||||||||||||||||||||||
|
(Dollars in thousands, except per share data) |
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
|||||||||||||||||||
|
INTEREST INCOME: |
|||||||||||||||||||||||||
|
Loans, including fees |
$ |
70,671 |
$ |
70,325 |
$ |
65,380 |
$ |
59,295 |
$ |
53,911 |
$ |
248,911 |
|||||||||||||
|
Investment securities available-for-sale |
3,093 |
2,746 |
1,990 |
2,029 |
1,548 |
8,313 |
|||||||||||||||||||
|
Federal funds sold and other |
5,112 |
3,996 |
2,015 |
1,389 |
1,920 |
9,320 |
|||||||||||||||||||
|
Total interest income |
78,876 |
77,067 |
69,385 |
62,713 |
57,379 |
266,544 |
|||||||||||||||||||
|
INTEREST EXPENSE: |
|||||||||||||||||||||||||
|
Deposit accounts |
38,698 |
37,671 |
30,345 |
24,936 |
22,092 |
115,044 |
|||||||||||||||||||
|
FHLB advances and other borrowings |
2,099 |
2,065 |
3,772 |
3,681 |
2,457 |
11,975 |
|||||||||||||||||||
|
Total interest expense |
40,797 |
39,736 |
34,117 |
28,617 |
24,549 |
127,019 |
|||||||||||||||||||
|
Net interest income |
38,079 |
37,331 |
35,268 |
34,096 |
32,830 |
139,525 |
|||||||||||||||||||
|
Provision for credit losses |
1,560 |
1,100 |
2,620 |
1,400 |
1,200 |
6,320 |
|||||||||||||||||||
|
Net interest income after credit loss expense |
36,519 |
36,231 |
32,648 |
32,696 |
31,630 |
133,205 |
|||||||||||||||||||
|
NONINTEREST INCOME: |
|||||||||||||||||||||||||
|
Service charges and fees |
1,505 |
850 |
884 |
720 |
779 |
3,233 |
|||||||||||||||||||
|
Earnings on bank-owned life insurance |
582 |
559 |
541 |
526 |
475 |
2,101 |
|||||||||||||||||||
|
Gain on sale of investment securities available-for-sale |
157 |
21 |
364 |
- |
97 |
482 |
|||||||||||||||||||
|
Gain on sale of SBA loans |
30 |
326 |
114 |
- |
- |
440 |
|||||||||||||||||||
|
Derivative fees |
66 |
358 |
159 |
247 |
(1) |
763 |
|||||||||||||||||||
|
Other |
3 |
43 |
(196) |
787 |
552 |
1,186 |
|||||||||||||||||||
|
Total noninterest income |
2,343 |
2,157 |
1,866 |
2,280 |
1,902 |
8,205 |
|||||||||||||||||||
|
NONINTEREST EXPENSE: |
|||||||||||||||||||||||||
|
Salaries and employee benefits |
16,502 |
16,119 |
17,353 |
15,033 |
13,712 |
62,217 |
|||||||||||||||||||
|
Occupancy and equipment expense |
3,045 |
2,875 |
2,925 |
2,852 |
2,633 |
11,285 |
|||||||||||||||||||
|
Legal and professional |
1,385 |
2,305 |
2,001 |
1,547 |
1,930 |
7,783 |
|||||||||||||||||||
|
Data processing and network expense |
1,418 |
987 |
1,284 |
1,261 |
1,203 |
4,735 |
|||||||||||||||||||
|
Regulatory assessments |
980 |
942 |
532 |
458 |
666 |
2,598 |
|||||||||||||||||||
|
Advertising and marketing |
355 |
614 |
515 |
812 |
686 |
2,627 |
|||||||||||||||||||
|
Software purchases and maintenance |
817 |
839 |
729 |
455 |
352 |
2,375 |
|||||||||||||||||||
|
Loan operations |
226 |
134 |
272 |
302 |
(35) |
673 |
|||||||||||||||||||
|
Telephone and communications |
134 |
125 |
117 |
129 |
139 |
510 |
|||||||||||||||||||
|
Other |
1,052 |
1,474 |
1,777 |
986 |
758 |
4,995 |
|||||||||||||||||||
|
Total noninterest expense |
25,914 |
26,414 |
27,505 |
23,835 |
22,044 |
99,798 |
|||||||||||||||||||
|
NET INCOME BEFORE INCOME TAX |
12,948 |
11,974 |
7,009 |
11,141 |
11,488 |
41,612 |
|||||||||||||||||||
|
Income tax expense |
2,581 |
2,285 |
1,431 |
2,250 |
2,245 |
8,211 |
|||||||||||||||||||
|
NET INCOME |
10,367 |
9,689 |
5,578 |
8,891 |
9,243 |
33,401 |
|||||||||||||||||||
|
Preferred stock dividends declared |
1,171 |
1,197 |
1,184 |
1,184 |
1,171 |
4,736 |
|||||||||||||||||||
|
NET INCOME AVAILABLE TO COMMON |
$ |
9,196 |
$ |
8,492 |
$ |
4,394 |
$ |
7,707 |
$ |
8,072 |
$ |
28,665 |
|||||||||||||
|
EARNINGS PER COMMON SHARE: |
|||||||||||||||||||||||||
|
Basic earnings per share |
$ |
0.68 |
$ |
0.62 |
$ |
0.32 |
$ |
0.57 |
$ |
0.60 |
$ |
2.11 |
|||||||||||||
|
Diluted earnings per share |
$ |
0.61 |
$ |
0.57 |
$ |
0.32 |
$ |
0.53 |
$ |
0.55 |
$ |
1.98 |
|||||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) |
|||||||||||||||||||||||||
|
Three Months Ended |
Year Ended |
||||||||||||||||||||||||
|
2024 |
2023 |
2023 |
|||||||||||||||||||||||
|
(Dollars in thousands, except share and per share data) |
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
|||||||||||||||||||
|
Earnings per share, basic |
$ |
0.68 |
$ |
0.62 |
$ |
0.32 |
$ |
0.57 |
$ |
0.60 |
$ |
2.11 |
|||||||||||||
|
Earnings per share, diluted |
$ |
0.61 |
$ |
0.57 |
$ |
0.32 |
$ |
0.53 |
$ |
0.55 |
$ |
1.98 |
|||||||||||||
|
Dividends on common stock |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
|||||||||||||
|
Dividends on Series A Convertible |
$ |
16.88 |
$ |
17.25 |
$ |
17.06 |
$ |
17.06 |
$ |
16.88 |
$ |
68.25 |
|||||||||||||
|
Return on average assets (A) |
0.95 |
% |
0.90 |
% |
0.56 |
% |
0.96 |
% |
1.02 |
% |
0.86 |
% |
|||||||||||||
|
Return on average common equity (A) |
10.44 |
% |
9.86 |
% |
5.19 |
% |
9.44 |
% |
10.28 |
% |
8.66 |
% |
|||||||||||||
|
Return on average tangible common |
11.03 |
% |
10.44 |
% |
5.50 |
% |
10.02 |
% |
10.93 |
% |
9.19 |
% |
|||||||||||||
|
Net interest margin (A) (C) |
3.60 |
% |
3.61 |
% |
3.71 |
% |
3.82 |
% |
3.79 |
% |
3.73 |
% |
|||||||||||||
|
Efficiency ratio (D) |
64.11 |
% |
66.89 |
% |
74.07 |
% |
65.52 |
% |
63.47 |
% |
67.55 |
% |
|||||||||||||
|
Capital Ratios |
|||||||||||||||||||||||||
|
Third Coast Bancshares, Inc. (consolidated): |
|||||||||||||||||||||||||
|
Total common equity to total assets |
7.67 |
% |
7.86 |
% |
7.93 |
% |
8.32 |
% |
8.31 |
% |
7.86 |
% |
|||||||||||||
|
Tangible common equity to tangible |
7.29 |
% |
7.46 |
% |
7.51 |
% |
7.88 |
% |
7.86 |
% |
7.46 |
% |
|||||||||||||
|
Common equity tier 1 (to risk weighted |
7.97 |
% |
8.06 |
% |
8.01 |
% |
7.75 |
% |
7.89 |
% |
8.06 |
% |
|||||||||||||
|
Tier 1 capital (to risk weighted assets) |
9.54 |
% |
9.70 |
% |
9.68 |
% |
9.39 |
% |
9.61 |
% |
9.70 |
% |
|||||||||||||
|
Total capital (to risk weighted assets) |
12.41 |
% |
12.66 |
% |
12.72 |
% |
12.31 |
% |
12.63 |
% |
12.66 |
% |
|||||||||||||
|
Tier 1 capital (to average assets) |
9.15 |
% |
9.23 |
% |
9.79 |
% |
10.17 |
% |
10.14 |
% |
9.23 |
% |
|||||||||||||
|
Third Coast Bank: |
|||||||||||||||||||||||||
|
Common equity tier 1 (to risk weighted |
12.32 |
% |
12.52 |
% |
12.48 |
% |
12.06 |
% |
12.32 |
% |
12.52 |
% |
|||||||||||||
|
Tier 1 capital (to risk weighted assets) |
12.32 |
% |
12.52 |
% |
12.48 |
% |
12.06 |
% |
12.32 |
% |
12.52 |
% |
|||||||||||||
|
Total capital (to risk weighted assets) |
13.28 |
% |
13.49 |
% |
13.49 |
% |
12.99 |
% |
13.25 |
% |
13.49 |
% |
|||||||||||||
|
Tier 1 capital (to average assets) |
11.81 |
% |
11.91 |
% |
12.62 |
% |
13.06 |
% |
13.00 |
% |
11.91 |
% |
|||||||||||||
|
Other Data |
|||||||||||||||||||||||||
|
Weighted average shares: |
|||||||||||||||||||||||||
|
Basic |
13,606,256 |
13,603,149 |
13,608,718 |
13,588,747 |
13,532,545 |
13,583,553 |
|||||||||||||||||||
|
Diluted |
16,936,003 |
16,890,381 |
13,873,187 |
16,855,822 |
16,801,815 |
16,877,891 |
|||||||||||||||||||
|
Period end shares outstanding |
13,652,888 |
13,604,665 |
13,600,211 |
13,609,697 |
13,579,498 |
13,604,665 |
|||||||||||||||||||
|
Book value per share |
$ |
26.18 |
$ |
25.41 |
$ |
24.57 |
$ |
24.23 |
$ |
23.63 |
$ |
25.41 |
|||||||||||||
|
Tangible book value per share (B) |
$ |
24.79 |
$ |
24.02 |
$ |
23.17 |
$ |
22.82 |
$ |
22.22 |
$ |
24.02 |
|||||||||||||
___________
|
(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 11 and 12 of this News Release. |
|
(C) |
Net interest margin represents net interest income divided by average interest-earning assets. |
|
(D) |
Represents total noninterest expense divided by the sum of net interest income plus noninterest income. Taxes and provision for credit losses are not part of this calculation. |
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) | ||||||||||||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||||||||||
|
March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
||||||||||||||||||||||||||||
|
(Dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||||||||||||
|
Assets |
||||||||||||||||||||||||||||||
|
Interest-earnings assets: |
||||||||||||||||||||||||||||||
|
Investment securities |
$ |
202,277 |
$ |
3,093 |
6.15 % |
$ |
203,376 |
$ |
2,746 |
5.36 % |
$ |
178,197 |
$ |
1,548 |
3.52 % |
|||||||||||||||
|
Loans, gross |
3,665,378 |
70,671 |
7.75 % |
3,600,980 |
70,325 |
7.75 % |
3,170,828 |
53,911 |
6.90 % |
|||||||||||||||||||||
|
Federal funds sold and other |
383,929 |
5,112 |
5.36 % |
299,165 |
3,996 |
5.30 % |
167,694 |
1,920 |
4.64 % |
|||||||||||||||||||||
|
Total interest-earning assets |
4,251,584 |
78,876 |
7.46 % |
4,103,521 |
77,067 |
7.45 % |
3,516,719 |
57,379 |
6.62 % |
|||||||||||||||||||||
|
Less allowance for loan losses |
(37,278) |
(38,274) |
(34,879) |
|||||||||||||||||||||||||||
|
Total interest-earning assets, net of |
4,214,306 |
4,065,247 |
3,481,840 |
|||||||||||||||||||||||||||
|
Noninterest-earning assets |
193,070 |
194,659 |
182,869 |
|||||||||||||||||||||||||||
|
Total assets |
$ |
4,407,376 |
$ |
4,259,906 |
$ |
3,664,709 |
||||||||||||||||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||||||||||
|
Interest-bearing deposits |
$ |
3,346,847 |
$ |
38,698 |
4.65 % |
$ |
3,202,462 |
$ |
37,671 |
4.67 % |
$ |
2,595,750 |
$ |
22,092 |
3.45 % |
|||||||||||||||
|
Note payable and line of credit |
120,884 |
2,099 |
6.98 % |
118,816 |
2,065 |
6.90 % |
111,250 |
1,814 |
6.61 % |
|||||||||||||||||||||
|
FHLB advances |
— |
— |
— |
— |
— |
— |
52,803 |
643 |
4.94 % |
|||||||||||||||||||||
|
Total interest-bearing liabilities |
3,467,731 |
40,797 |
4.73 % |
3,321,278 |
39,736 |
4.75 % |
2,759,803 |
24,549 |
3.61 % |
|||||||||||||||||||||
|
Noninterest-bearing deposits |
457,054 |
472,738 |
477,706 |
|||||||||||||||||||||||||||
|
Other liabilities |
61,945 |
57,918 |
42,406 |
|||||||||||||||||||||||||||
|
Total liabilities |
3,986,730 |
3,851,934 |
3,279,915 |
|||||||||||||||||||||||||||
|
Shareholders' equity |
420,646 |
407,972 |
384,794 |
|||||||||||||||||||||||||||
|
Total liabilities and shareholders' |
$ |
4,407,376 |
$ |
4,259,906 |
$ |
3,664,709 |
||||||||||||||||||||||||
|
Net interest income |
$ |
38,079 |
$ |
37,331 |
$ |
32,830 |
||||||||||||||||||||||||
|
Net interest spread (1) |
2.73 % |
2.70 % |
3.01 % |
|||||||||||||||||||||||||||
|
Net interest margin (2) |
3.60 % |
3.61 % |
3.79 % |
|||||||||||||||||||||||||||
___________
|
(1) |
Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities. |
|
(2) |
Net interest margin represents net interest income divided by average interest-earning assets. |
|
(3) |
Interest earned/paid includes accretion of deferred loan fees, premiums and discounts. |
|
(4) |
Annualized. |
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) |
|||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||
|
2024 |
2023 |
||||||||||||||||||||
|
(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 |
$ |
510,266 |
$ |
520,822 |
$ |
517,917 |
$ |
513,934 |
$ |
508,936 |
|||||||||||
|
Non-farm non-residential non-owner occupied |
598,311 |
586,626 |
566,973 |
547,120 |
511,546 |
||||||||||||||||
|
Residential |
345,890 |
342,589 |
326,354 |
310,842 |
286,358 |
||||||||||||||||
|
Construction, development & other |
725,176 |
693,553 |
655,822 |
595,601 |
627,143 |
||||||||||||||||
|
Farmland |
29,706 |
30,396 |
30,646 |
24,219 |
22,512 |
||||||||||||||||
|
Commercial & industrial |
1,350,289 |
1,263,077 |
1,288,320 |
1,164,624 |
1,112,638 |
||||||||||||||||
|
Consumer |
2,382 |
2,555 |
2,665 |
2,891 |
3,280 |
||||||||||||||||
|
Municipal and other |
184,158 |
199,170 |
171,256 |
175,046 |
140,913 |
||||||||||||||||
|
Total loans |
$ |
3,746,178 |
$ |
3,638,788 |
$ |
3,559,953 |
$ |
3,334,277 |
$ |
3,213,326 |
|||||||||||
|
Asset Quality: |
|||||||||||||||||||||
|
Nonaccrual loans |
$ |
18,130 |
$ |
16,649 |
$ |
13,963 |
$ |
9,968 |
$ |
9,482 |
|||||||||||
|
Loans > 90 days and still accruing |
3,614 |
670 |
2,442 |
- |
- |
||||||||||||||||
|
Total nonperforming loans |
21,744 |
17,319 |
16,405 |
9,968 |
9,482 |
||||||||||||||||
|
Other real estate owned |
- |
- |
- |
- |
- |
||||||||||||||||
|
Total nonperforming assets |
$ |
21,744 |
$ |
17,319 |
$ |
16,405 |
$ |
9,968 |
$ |
9,482 |
|||||||||||
|
QTD Net charge-offs (recoveries) |
$ |
742 |
$ |
1,505 |
$ |
24 |
$ |
72 |
$ |
(364) |
|||||||||||
|
Nonaccrual loans: |
|||||||||||||||||||||
|
Real estate loans: |
|||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||
|
Non-farm non-residential owner occupied |
$ |
2,369 |
$ |
1,211 |
$ |
978 |
$ |
832 |
$ |
855 |
|||||||||||
|
Non-farm non-residential non-owner occupied |
1,225 |
1,235 |
1,235 |
1,417 |
282 |
||||||||||||||||
|
Residential |
2,837 |
2,938 |
3,058 |
494 |
506 |
||||||||||||||||
|
Construction, development & other |
406 |
247 |
567 |
36 |
39 |
||||||||||||||||
|
Commercial & industrial |
11,293 |
11,018 |
8,125 |
7,189 |
7,800 |
||||||||||||||||
|
Total nonaccrual loans |
$ |
18,130 |
$ |
16,649 |
$ |
13,963 |
$ |
9,968 |
$ |
9,482 |
|||||||||||
|
Asset Quality Ratios: |
|||||||||||||||||||||
|
Nonperforming assets to total assets |
0.47 |
% |
0.39 |
% |
0.39 |
% |
0.25 |
% |
0.25 |
% |
|||||||||||
|
Nonperforming loans to total loans |
0.58 |
% |
0.48 |
% |
0.46 |
% |
0.30 |
% |
0.30 |
% |
|||||||||||
|
Allowance for credit losses to total loans |
1.02 |
% |
1.02 |
% |
1.07 |
% |
1.12 |
% |
1.12 |
% |
|||||||||||
|
QTD Net charge-offs (recoveries) to average loans |
0.08 |
% |
0.17 |
% |
0.00 |
% |
0.01 |
% |
(0.05) |
% |
|||||||||||
Third Coast Bancshares, Inc. and Subsidiary
GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
(unaudited)
Our accounting and reporting policies conform to GAAP (generally accepted accounting principles) and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional financial measures discussed in this earnings release as being non-GAAP financial measures. Specifically, we review Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Return on Average Tangible Common Equity for internal planning and forecasting purposes. We classify a financial measure as a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are not included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios, or statistical measures calculated using exclusively financial measures calculated in accordance with GAAP.
The non-GAAP financial measures that we discuss in this earnings release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this earnings release may differ from that of other companies reporting measures with similar names. It is important to understand how other banking organizations calculate their financial measures with names similar to the non-GAAP financial measures we have discussed in this earnings release when comparing such non-GAAP financial measures.
Management believes the following non-GAAP financial measures assist investors in understanding the financial condition of the company:
- Tangible Common Equity. The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity.
- Tangible Book Value Per Share. The most directly comparable GAAP financial measure for tangible book value per share is book value per share. We believe that the tangible book value per share measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value.
- Tangible Common Equity to Tangible Assets. The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity, the most directly comparable GAAP financial measure for tangible assets is total assets, and the most directly comparable GAAP financial measure for tangible common equity to tangible assets is total shareholders' equity to total assets. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity to tangible assets, each exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing both total shareholders' equity and assets while not increasing our tangible common equity or tangible assets.
- Return on Average Tangible Common Equity. The most directly comparable GAAP financial measure for average tangible common equity is average shareholders' equity, and the most directly comparable GAAP financial measure for return on average tangible common equity is return on average common equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of return on average tangible common equity, exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing average shareholders' equity while not increasing our tangible common equity.
The calculations of these non-GAAP financial measures are as follows:
|
Three Months Ended |
Year Ended |
|||||||||||||||||||||||
|
2024 |
2023 |
2023 |
||||||||||||||||||||||
|
(Dollars in thousands, except share and per share data) |
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
||||||||||||||||||
|
Tangible Common Equity: |
||||||||||||||||||||||||
|
Total shareholders' equity |
$ |
423,618 |
$ |
411,974 |
$ |
400,331 |
$ |
395,945 |
$ |
387,044 |
$ |
411,974 |
||||||||||||
|
Less: Preferred stock including additional |
66,225 |
66,225 |
66,225 |
66,225 |
66,225 |
66,225 |
||||||||||||||||||
|
Total common equity |
357,393 |
345,749 |
334,106 |
329,720 |
320,819 |
345,749 |
||||||||||||||||||
|
Less: Goodwill and core deposit intangibles, |
18,963 |
19,003 |
19,043 |
19,084 |
19,124 |
19,003 |
||||||||||||||||||
|
Tangible common equity |
$ |
338,430 |
$ |
326,746 |
$ |
315,063 |
$ |
310,636 |
$ |
301,695 |
$ |
326,746 |
||||||||||||
|
Common shares outstanding at end of period |
13,652,888 |
13,604,665 |
13,600,211 |
13,609,697 |
13,579,498 |
13,604,665 |
||||||||||||||||||
|
Book Value Per Share |
$ |
26.18 |
$ |
25.41 |
$ |
24.57 |
$ |
24.23 |
$ |
23.63 |
$ |
25.41 |
||||||||||||
|
Tangible Book Value Per Share |
$ |
24.79 |
$ |
24.02 |
$ |
23.17 |
$ |
22.82 |
$ |
22.22 |
$ |
24.02 |
||||||||||||
|
Tangible Assets: |
||||||||||||||||||||||||
|
Total assets |
$ |
4,660,403 |
$ |
4,396,074 |
$ |
4,215,792 |
$ |
3,963,482 |
$ |
3,859,657 |
$ |
4,396,074 |
||||||||||||
|
Adjustments: Goodwill and core deposit |
18,963 |
19,003 |
19,043 |
19,084 |
19,124 |
19,003 |
||||||||||||||||||
|
Tangible assets |
$ |
4,641,440 |
$ |
4,377,071 |
$ |
4,196,749 |
$ |
3,944,398 |
$ |
3,840,533 |
$ |
4,377,071 |
||||||||||||
|
Total Common Equity to Total Assets |
7.67 |
% |
7.86 |
% |
7.93 |
% |
8.32 |
% |
8.31 |
% |
7.86 |
% |
||||||||||||
|
Tangible Common Equity to Tangible Assets |
7.29 |
% |
7.46 |
% |
7.51 |
% |
7.88 |
% |
7.86 |
% |
7.46 |
% |
||||||||||||
|
Average Tangible Common Equity: |
||||||||||||||||||||||||
|
Average shareholders' equity |
$ |
420,646 |
$ |
407,972 |
$ |
402,049 |
$ |
393,773 |
$ |
384,794 |
$ |
397,224 |
||||||||||||
|
Less: Average preferred stock including |
66,225 |
66,225 |
66,225 |
66,225 |
66,225 |
66,225 |
||||||||||||||||||
|
Average common equity |
354,421 |
341,747 |
335,824 |
327,548 |
318,569 |
330,999 |
||||||||||||||||||
|
Less: Average goodwill and core deposit |
18,987 |
19,027 |
19,068 |
19,108 |
19,149 |
19,088 |
||||||||||||||||||
|
Average tangible common equity |
$ |
335,434 |
$ |
322,720 |
$ |
316,756 |
$ |
308,440 |
$ |
299,420 |
$ |
311,911 |
||||||||||||
|
Net Income |
$ |
10,367 |
$ |
9,689 |
$ |
5,578 |
$ |
8,891 |
$ |
9,243 |
$ |
33,401 |
||||||||||||
|
Less: Dividends declared on preferred stock |
1,171 |
1,197 |
1,184 |
1,184 |
1,171 |
4,736 |
||||||||||||||||||
|
Net Income Available to Common Shareholders |
$ |
9,196 |
$ |
8,492 |
$ |
4,394 |
$ |
7,707 |
$ |
8,072 |
$ |
28,665 |
||||||||||||
|
Return on Average Common Equity(A) |
10.44 |
% |
9.86 |
% |
5.19 |
% |
9.44 |
% |
10.28 |
% |
8.66 |
% |
||||||||||||
|
Return on Average Tangible Common Equity(A) |
11.03 |
% |
10.44 |
% |
5.50 |
% |
10.02 |
% |
10.93 |
% |
9.19 |
% |
||||||||||||
___________
|
(A) |
Interim periods annualized. |
Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
(713) 529-6600
TCBX@dennardlascar.com
View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-2024-first-quarter-financial-results-302126511.html
SOURCE Third Coast Bancshares