Third Coast Bancshares, Inc. Reports 2025 First Quarter Financial Results
Year-over-Year Net Income Improved 31% and Diluted EPS increased 28%
Net Interest Margin Expands to 3.80% and Book Value Per Share Increases
HOUSTON, April 23, 2025 /PRNewswire/ -- Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank (the "Bank"), today reported its 2025 first quarter financial results.
Year to Date Financial Highlights
- Return on average assets of 1.17% annualized for the first quarter of 2025 compared to 1.13% annualized for the fourth quarter of 2024 and 0.95% annualized for the first quarter of 2024.
- Net interest margin of 3.80% for the first quarter of 2025 compared to 3.71% for the fourth quarter of 2024 and 3.60% for the first quarter of 2024.
- Net income for the first quarter of 2025 totaled $13.6 million, or $0.90 and $0.78 per basic and diluted share, respectively, compared to $13.7 million, or $0.92 and $0.79 per basic and diluted share, respectively, for the fourth quarter of 2024.
- Gross loans grew to $3.99 billion as of March 31, 2025, from $3.97 billion reported as of December 31, 2024.
- Book value per share and tangible book value per share(1) increased to $29.92 and $28.56, respectively, as of March 31, 2025, compared to $28.65 and $27.29, respectively, as of December 31, 2024 and $26.18 and $24.79, respectively, as of March 31, 2024.
- On April 1, 2025, the Bank completed a $200 million commercial real estate loan securitization, reducing our risk-weighted assets and improving risk-weighted capital ratios. The transactions also strengthened our financial position by reducing construction and land development loan concentrations and mitigating credit risk.
______________
(1)
Non-GAAP financial measure. Please refer to the table titled "GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures" at the end of this news release for a reconciliation of these non-GAAP financial measures.
Bart Caraway, Founder, Chairman, President & CEO of Third Coast, said, "We delivered a solid first quarter, marked by continued expansion in our net interest margin and steady growth in our loan portfolio, while preserving strong asset quality. Our disciplined approach to managing deposit costs and thoughtful credit risk management enabled us to enhance shareholder value, as reflected in the increase in both book value and tangible book value per share. Despite some seasonal softness in deposits, our core profitability metrics improved, and our capital ratios strengthened, underscoring the resilience of our business model and our commitment to sustainable growth.
"Just following the quarter end, we successfully executed a significant commercial real estate loan securitization, which will provide us with additional flexibility to manage our balance sheet and capital ratios. We believe this transaction will not only reduce our CRE concentration and improve our risk-based capital, but also generate meaningful fee income that will benefit our results in the coming quarters. The securitization demonstrates our forward-thinking approach to capital management and positions us to support future loan growth while upholding a prudent risk profile.
"With a strong capital base, improved asset quality, and a focus on disciplined execution, Third Coast is well positioned to deliver continued value for our shareholders and to compete effectively in the dynamic Texas banking landscape," Mr. Caraway concluded.
Operating Results
Net Income and Earnings Per Share
Net income totaled $13.6 million for the first quarter of 2025, compared to $13.7 million for the fourth quarter of 2024 and $10.4 million for the first quarter of 2024. Net income available to common shareholders totaled $12.4 million for the first quarter of 2025, compared to $12.5 million for the fourth quarter of 2024 and $9.2 million for the first quarter of 2024. The year-over-year increase was primarily due to an increase in net interest income, resulting from loan growth and the purchase of investment securities, and an increase in service charges and fees, offset by an increase in salary and employee benefit expenses during the first quarter of 2025. 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, 2025 and December 31, 2024.
Basic and diluted earnings per share were $0.90 per share and $0.78 per share, respectively, in the first quarter of 2025, compared to $0.92 per share and $0.79 per share, respectively, in the fourth quarter of 2024 and $0.68 per share and $0.61 per share, respectively, in the first quarter of 2024.
Net Interest Margin and Net Interest Income
The net interest margin for the first quarter of 2025 was 3.80%, compared to 3.71% for the fourth quarter of 2024 and 3.60% for the first quarter of 2024. The yield on loans for the first quarter of 2025 was 7.45%, compared to 7.68% for the fourth quarter of 2024 and 7.75% for the first quarter of 2024. The cost of interest-bearing deposits for the first quarter of 2025 was 4.02%, compared to 4.33% for the fourth quarter of 2024 and 4.65% for the first quarter of 2024.
Net interest income totaled $42.8 million for the first quarter of 2025, a decrease of 1.5% from $43.4 million for the fourth quarter of 2024 and an increase of 12.4% from $38.1 million for the first quarter of 2024. Interest income totaled $80.8 million for the first quarter of 2025, a decrease of 5.6% from $85.5 million for the fourth quarter of 2024 and an increase of 2.4% from $78.9 million for the first quarter of 2024. The quarter-over-quarter decrease in interest income resulted from a decrease in loan yields and a decrease in interest income from federal funds sold and deposits in interest-bearing correspondent banks during the first quarter of 2025. Interest expense decreased from $42.1 million for the fourth quarter of 2024 and $40.8 million for the first quarter of 2024 to $38.0 million for the first quarter of 2025, primarily resulting from the reduction in rates paid on interest-bearing deposits.
Noninterest Income and Noninterest Expense
Noninterest income totaled $3.1 million for the first quarter of 2025, compared to $2.9 million for the fourth quarter of 2024 and $2.3 million for the first quarter of 2024. The sequential increase in noninterest income was primarily due to increased service charges and fees during the first quarter of 2025.
Noninterest expense increased to $28.1 million for the first quarter of 2025, compared to $27.2 million for the fourth quarter of 2024 and $25.9 million for the first quarter of 2024. The quarter-over-quarter increase in noninterest expense was primarily due to increased salary expense resulting from new hires, increased bonus expense and a reduction in salary expense deferral related to loan fundings during the first quarter of 2025. At March 31, 2025, the number of employees was 383, compared to 369 at December 31, 2024.
The efficiency ratio was 61.23% for the first quarter of 2025, compared to 58.80% for the fourth quarter of 2024 and 64.11% for the first quarter of 2024.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended March 31, 2025, gross loans increased to $3.99 billion, an increase of $21.6 million, or 0.5%, from $3.97 billion as of December 31, 2024, and an increase of $241.9 million, or 6.5%, from $3.75 billion as of March 31, 2024. Commercial and industrial loans accounted for the majority of the loan growth for the first quarter of 2025, offset by slight decreases in real estate loans and municipal loans from the fourth quarter of 2024.
Asset Quality
Nonperforming loans at March 31, 2025 were $18.6 million, compared to $27.9 million at December 31, 2024 and $21.7 million at March 31, 2024. As of March 31, 2025, the nonperforming loans to total loans ratio was 0.47%, compared to 0.70% as of December 31, 2024 and 0.58% as of March 31, 2024. The decrease in nonperforming loans during the first quarter of 2025 was primarily due to the foreclosure and transfer to OREO of three nonperforming loans for one relationship totaling $7.3 million, the payoff and paydown of five nonperforming loans totaling $1.9 million, and the charge-off of one relationship for $810,000.
The provision for credit loss recorded for the first quarter of 2025 was $450,000, and the allowance for credit losses of $40.5 million represented 1.01% of the $3.99 billion in gross loans outstanding as of March 31, 2025. The provision for credit loss recorded for the fourth quarter of 2024 was $1.2 million, and the allowance for credit losses of $40.3 million represented 1.02% of the $3.97 billion in gross loans outstanding as of December 31, 2024. The decrease in the provision for credit loss recorded in the first quarter of 2025 compared to the fourth quarter of 2024 is a reflection of the improvement in asset quality and loan growth.
The Company recorded net charge-offs of $398,000 and $742,000 for the three months ended March 31, 2025 and March 31, 2024, respectively.
Deposits and Composition
Deposits totaled $4.25 billion as of March 31, 2025, a decrease of 1.4% from $4.31 billion as of December 31, 2024, and an increase of 4.9% from $4.05 billion as of March 31, 2024. Noninterest-bearing demand deposits decreased from $602.1 million as of December 31, 2024, to $448.5 million as of March 31, 2025 and represented 10.6% of total deposits as of March 31, 2025, compared to 14.0% of total deposits as of December 31, 2024. As of March 31, 2025, interest-bearing demand deposits increased $23.5 million, or 0.8%, time deposits increased $71.2 million, or 12.3%, and savings accounts decreased $3.1 million, or 11.1%, respectively, from December 31, 2024.
The average cost of deposits was 3.60% for the first quarter of 2025, representing a 23-basis point decrease from the fourth quarter of 2024 and a 49-basis point decrease from the first quarter of 2024. The decreases were due to the reduction in rates paid on interest-bearing demand deposits.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss its 2025 first quarter results, which will be broadcast live over the Internet, on Thursday, April 24, 2025, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate in the call, dial 201-389-0869 and ask for the Third Coast Bancshares, Inc. call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through May 1, 2025, and may be accessed by dialing 201-612-7415 and using passcode 13752283#. Also, an archive of the webcast will be available shortly after the call at https://ir.thirdcoast.bank/events-and-presentations/events/ for 90 days.
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a commercially focused, Texas-based bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 19 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; economic conditions affecting the real estate market; prepayment risks associated with commercial real estate loans; liquidity risks in the securitization market; operational risks related to the administration of securitized assets; and changes in key management personnel. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission (the "SEC"), and our other filings with the SEC.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, including Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets and Return on Average Tangible Common Equity, which are supplemental measures that are not required by, or are not presented in accordance with GAAP. Please refer to the table titled "GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures" at the end of this press release for a reconciliation of these non-GAAP financial measures.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
2025
2024
(Dollars in thousands)
March 31
December 31
September 30
June 30
March 31
ASSETS
Cash and cash equivalents:
Cash and due from banks
$
218,990
$
371,157
$
258,191
$
241,809
$
367,831
Federal funds sold
110,379
50,045
12,265
12,088
130,429
Total cash and cash equivalents
329,369
421,202
270,456
253,897
498,260
Interest bearing time deposits in other banks
359
356
353
350
-
Investment securities available-for-sale
397,442
384,025
292,104
286,167
246,291
Loans held for investment
3,988,039
3,966,425
3,889,831
3,758,159
3,746,178
Less: allowance for credit losses
(40,456)
(40,304)
(39,683)
(38,211)
(38,140)
Loans, net
3,947,583
3,926,121
3,850,148
3,719,948
3,708,038
Accrued interest receivable
26,752
25,820
26,111
27,518
25,769
Premises and equipment, net
25,669
26,230
26,696
27,626
26,844
Bank-owned life insurance
74,018
68,341
67,679
67,030
66,443
Non-marketable securities, at cost
15,994
15,980
24,328
16,147
16,095
Deferred tax asset, net
9,176
11,445
8,654
8,972
8,712
Derivative assets
3,052
6,479
5,786
7,799
11,015
Right-of-use assets - operating leases
19,370
19,863
20,397
20,944
20,729
Goodwill and other intangible assets
18,801
18,841
18,882
18,922
18,963
Other assets
29,404
17,743
16,176
18,799
13,244
Total assets
$
4,896,989
$
4,942,446
$
4,627,770
$
4,474,119
$
4,660,403
LIABILITIES
Deposits:
Noninterest bearing
$
448,542
$
602,082
$
489,822
$
464,498
$
424,019
Interest bearing
3,800,001
3,708,416
3,504,616
3,391,093
3,626,653
Total deposits
4,248,543
4,310,498
3,994,438
3,855,591
4,050,672
Accrued interest payable
7,044
6,281
7,283
5,668
3,927
Derivative liabilities
3,527
8,660
6,874
7,626
8,253
Lease liability - operating leases
20,425
20,900
21,412
21,919
21,647
Other liabilities
25,979
23,754
34,632
30,786
27,806
Line of credit - Senior Debt
30,875
30,875
31,875
36,875
43,875
Note payable - Subordinated Debentures, net
80,810
80,759
80,708
80,656
80,605
Total liabilities
4,417,203
4,481,727
4,177,222
4,039,121
4,236,785
SHAREHOLDERS' EQUITY
Series A Convertible Non-Cumulative Preferred Stock
69
69
69
69
69
Series B Convertible Perpetual Preferred Stock
-
-
-
-
-
Common stock
13,904
13,848
13,746
13,744
13,731
Common stock - non-voting
-
-
-
-
-
Additional paid-in capital
322,456
321,696
320,871
320,496
320,077
Retained earnings
134,115
121,697
109,160
97,583
87,971
Accumulated other comprehensive income
10,341
4,508
7,801
4,205
2,869
Treasury stock, at cost
(1,099)
(1,099)
(1,099)
(1,099)
(1,099)
Total shareholders' equity
479,786
460,719
450,548
434,998
423,618
Total liabilities and shareholders' equity
$
4,896,989
$
4,942,446
$
4,627,770
$
4,474,119
$
4,660,403
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
Year Ended
2025
2024
2024
(Dollars in thousands, except per share data)
March 31
December 31
September 30
June 30
March 31
December 31
INTEREST INCOME:
Loans, including fees
$
73,087
$
76,017
$
75,468
$
73,103
$
70,671
$
295,259
Investment securities available-for-sale
5,693
4,939
4,532
4,491
3,093
17,055
Federal funds sold and other
1,986
4,580
2,719
3,631
5,112
16,042
Total interest income
80,766
85,536
82,719
81,225
78,876
328,356
INTEREST EXPENSE:
Deposit accounts
36,226
40,233
40,407
40,410
38,698
159,748
FHLB advances and other borrowings
1,743
1,865
1,929
1,957
2,099
7,850
Total interest expense
37,969
42,098
42,336
42,367
40,797
167,598
Net interest income
42,797
43,438
40,383
38,858
38,079
160,758
Provision for credit losses
450
1,156
1,085
1,900
1,560
5,701
Net interest income after credit loss expense
42,347
42,282
39,298
36,958
36,519
155,057
NONINTEREST INCOME:
Service charges and fees
2,277
1,772
2,143
1,515
1,505
6,935
Earnings on bank-owned life insurance
677
662
649
587
582
2,480
(Loss) gain on sale of investment securities available-for-sale
(228)
196
(480)
123
157
(4)
Gain on sale of SBA loans
30
-
-
-
30
30
Other
351
243
205
663
69
1,180
Total noninterest income
3,107
2,873
2,517
2,888
2,343
10,621
NONINTEREST EXPENSE:
Salaries and employee benefits
18,341
17,018
15,679
15,917
16,502
65,116
Occupancy and equipment expense
3,282
3,292
3,229
3,146
3,045
12,712
Legal and professional
1,431
1,587
1,037
1,621
1,385
5,630
Data processing and network expense
1,120
1,182
1,608
1,046
1,418
5,254
Regulatory assessments
1,306
1,196
1,249
1,005
980
4,430
Advertising and marketing
409
526
420
406
355
1,707
Software purchases and maintenance
811
766
854
828
817
3,265
Loan operations
269
189
227
262
226
904
Telephone and communications
175
144
166
141
134
585
Other
964
1,330
1,085
1,257
1,052
4,724
Total noninterest expense
28,108
27,230
25,554
25,629
25,914
104,327
NET INCOME BEFORE INCOME TAX
EXPENSE
17,346
17,925
16,261
14,217
12,948
61,351
Income tax expense
3,757
4,192
3,486
3,421
2,581
13,680
NET INCOME
13,589
13,733
12,775
10,796
10,367
47,671
Preferred stock dividends declared
1,171
1,196
1,198
1,184
1,171
4,749
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS
$
12,418
$
12,537
$
11,577
$
9,612
$
9,196
$
42,922
EARNINGS PER COMMON SHARE:
Basic earnings per share
$
0.90
$
0.92
$
0.85
$
0.70
$
0.68
$
3.14
Diluted earnings per share
$
0.78
$
0.79
$
0.74
$
0.63
$
0.61
$
2.78
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
Year Ended
2025
2024
2024
(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
$
0.90
$
0.92
$
0.85
$
0.70
$
0.68
$
3.14
Earnings per share, diluted
$
0.78
$
0.79
$
0.74
$
0.63
$
0.61
$
2.78
Dividends on common stock
$
-
$
-
$
-
$
-
$
-
$
-
Dividends on Series A Convertible
Non-Cumulative Preferred Stock
$
16.88
$
17.25
$
17.25
$
17.06
$
16.88
$
68.44
Return on average assets (A)
1.17
%
1.13
%
1.14
%
0.97
%
0.95
%
1.05
%
Return on average common equity (A)
12.41
%
12.66
%
12.12
%
10.53
%
10.44
%
11.48
%
Return on average tangible common
equity (A) (B)
13.01
%
13.29
%
12.76
%
11.10
%
11.03
%
12.09
%
Net interest margin (A) (C)
3.80
%
3.71
%
3.73
%
3.62
%
3.60
%
3.67
%
Efficiency ratio (D)
61.23
%
58.80
%
59.57
%
61.39
%
64.11
%
60.88
%
Capital Ratios
Third Coast Bancshares, Inc. (consolidated):
Total common equity to total assets
8.45
%
7.98
%
8.31
%
8.24
%
7.67
%
7.98
%
Tangible common equity to tangible
assets (B)
8.09
%
7.63
%
7.93
%
7.85
%
7.29
%
7.63
%
Common equity tier 1 (to risk weighted
assets)
8.70
%
8.41
%
8.38
%
8.29
%
7.97
%
8.41
%
Tier 1 capital (to risk weighted assets)
10.19
%
9.90
%
9.93
%
9.88
%
9.54
%
9.90
%
Total capital (to risk weighted assets)
12.97
%
12.68
%
12.80
%
12.78
%
12.41
%
12.68
%
Tier 1 capital (to average assets)
9.58
%
9.12
%
9.53
%
9.24
%
9.15
%
9.12
%
Third Coast Bank:
Common equity tier 1 (to risk weighted
assets)
12.69
%
12.35
%
12.45
%
12.52
%
12.32
%
12.35
%
Tier 1 capital (to risk weighted assets)
12.69
%
12.35
%
12.45
%
12.52
%
12.32
%
12.35
%
Total capital (to risk weighted assets)
13.63
%
13.29
%
13.42
%
13.49
%
13.28
%
13.29
%
Tier 1 capital (to average assets)
11.93
%
11.37
%
11.95
%
11.71
%
11.81
%
11.37
%
Other Data
Weighted average shares:
Basic
13,776,998
13,698,010
13,665,400
13,657,223
13,606,256
13,656,859
Diluted
17,440,826
17,394,884
17,184,991
17,018,680
16,936,003
17,133,845
Period end shares outstanding
13,825,286
13,769,780
13,667,591
13,665,505
13,652,888
13,769,780
Book value per share
$
29.92
$
28.65
$
28.13
$
26.99
$
26.18
$
28.65
Tangible book value per share (B)
$
28.56
$
27.29
$
26.75
$
25.60
$
24.79
$
27.29
___________
(A) Interim periods annualized.
(B) Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures at the end of this news release.
(C) Net interest margin represents net interest income divided by average interest-earning assets.
(D) Represents total noninterest expense divided by the sum of net interest income plus noninterest income. Taxes and provision for credit losses are not part of this calculation.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
March 31, 2025
December 31, 2024
March 31, 2024
(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:
Loans, gross
$
3,979,859
$
73,087
7.45 %
$
3,937,405
$
76,017
7.68 %
$
3,665,378
$
70,671
7.75 %
Investment securities
398,115
5,693
5.80 %
342,474
4,939
5.74 %
202,277
3,093
6.15 %
Federal funds sold and other
interest-earning assets
186,893
1,986
4.31 %
379,836
4,580
4.80 %
383,929
5,112
5.36 %
Total interest-earning assets
4,564,867
80,766
7.18 %
4,659,715
85,536
7.30 %
4,251,584
78,876
7.46 %
Less allowance for loan losses
(40,595)
(39,855)
(37,278)
Total interest-earning assets, net of
allowance
4,524,272
4,619,860
4,214,306
Noninterest-earning assets
198,522
195,143
193,070
Total assets
$
4,722,794
$
4,815,003
$
4,407,376
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits
$
3,652,006
$
36,226
4.02 %
$
3,692,533
$
40,233
4.33 %
$
3,346,847
$
38,698
4.65 %
Note payable and line of credit
111,661
1,713
6.22 %
109,294
1,708
6.22 %
120,884
2,099
6.98 %
FHLB advances
2,551
30
4.77 %
11,900
157
5.25 %
—
—
—
Total interest-bearing liabilities
3,766,218
37,969
4.09 %
3,813,727
42,098
4.39 %
3,467,731
40,797
4.73 %
Noninterest-bearing deposits
423,780
484,738
457,054
Other liabilities
60,755
56,369
61,945
Total liabilities
4,250,753
4,354,834
3,986,730
Shareholders' equity
472,041
460,169
420,646
Total liabilities and shareholders'
equity
$
4,722,794
$
4,815,003
$
4,407,376
Net interest income
$
42,797
$
43,438
$
38,079
Net interest spread (1)
3.09 %
2.91 %
2.73 %
Net interest margin (2)
3.80 %
3.71 %
3.60 %
___________
(1) Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average interest-earning assets.
(3) Interest earned/paid includes accretion of deferred loan fees, premiums and discounts.
(4) Annualized.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
2025
2024
(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
$
420,902
$
448,134
$
470,222
$
499,941
$
510,266
Non-farm non-residential non-owner occupied
633,227
652,119
611,617
612,268
598,311
Residential
335,285
336,736
339,558
349,461
345,890
Construction, development & other
846,166
871,373
825,302
756,646
725,176
Farmland
30,783
30,915
35,650
31,049
29,706
Commercial & industrial
1,605,243
1,497,408
1,499,302
1,361,401
1,350,289
Consumer
1,443
1,859
2,002
2,216
2,382
Municipal and other
114,990
127,881
106,178
145,177
184,158
Total loans
$
3,988,039
$
3,966,425
$
3,889,831
$
3,758,159
$
3,746,178
Asset Quality:
Nonaccrual loans
$
17,066
$
26,773
$
23,522
$
23,910
$
18,130
Loans > 90 days and still accruing
1,503
1,173
522
507
3,614
Total nonperforming loans
18,569
27,946
24,044
24,417
21,744
Other real estate owned
8,752
862
283
-
-
Total nonperforming assets
$
27,321
$
28,808
$
24,327
$
24,417
$
21,744
QTD Net charge-offs (recoveries)
$
398
$
879
$
(57)
$
1,829
$
742
Nonaccrual loans:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied
$
3,100
$
10,433
$
9,696
$
10,051
$
2,369
Non-farm non-residential non-owner occupied
-
-
68
74
1,225
Residential
2,616
2,226
2,664
2,767
2,837
Construction, development & other
358
400
1
301
406
Commercial & industrial
10,992
13,714
11,093
10,717
11,293
Total nonaccrual loans
$
17,066
$
26,773
$
23,522
$
23,910
$
18,130
Asset Quality Ratios:
Nonperforming assets to total assets
0.56
%
0.58
%
0.53
%
0.55
%
0.47
%
Nonperforming loans to total loans
0.47
%
0.70
%
0.62
%
0.65
%
0.58
%
Allowance for credit losses to total loans
1.01
%
1.02
%
1.02
%
1.02
%
1.02
%
QTD Net charge-offs (recoveries) to average loans
(annualized)
0.04
%
0.09
%
(0.01)
%
0.20
%
0.08
%
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
2025
2024
2024
(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
$
479,786
$
460,719
$
450,548
$
434,998
$
423,618
$
460,719
Less: Preferred stock including additional
paid in capital
66,160
66,160
66,117
66,225
66,225
66,160
Total common equity
413,626
394,559
384,431
368,773
357,393
394,559
Less: Goodwill and core deposit intangibles,
net
18,801
18,841
18,882
18,922
18,963
18,841
Tangible common equity
$
394,825
$
375,718
$
365,549
$
349,851
$
338,430
$
375,718
Common shares outstanding at end of period
13,825,286
13,769,780
13,667,591
13,665,505
13,652,888
13,769,780
Book Value Per Share
$
29.92
$
28.65
$
28.13
$
26.99
$
26.18
$
28.65
Tangible Book Value Per Share
$
28.56
$
27.29
$
26.75
$
25.60
$
24.79
$
27.29
Tangible Assets:
Total assets
$
4,896,989
$
4,942,446
$
4,627,770
$
4,474,119
$
4,660,403
$
4,942,446
Adjustments: Goodwill and core deposit
intangibles, net
18,801
18,841
18,882
18,922
18,963
18,841
Tangible assets
$
4,878,188
$
4,923,605
$
4,608,888
$
4,455,197
$
4,641,440
$
4,923,605
Total Common Equity to Total Assets
8.45
%
7.98
%
8.31
%
8.24
%
7.67
%
7.98
%
Tangible Common Equity to Tangible Assets
8.09
%
7.63
%
7.93
%
7.85
%
7.29
%
7.63
%
Average Tangible Common Equity:
Average shareholders' equity
$
472,041
$
460,169
$
446,124
$
433,510
$
420,646
$
440,184
Less: Average preferred stock including
additional paid in capital
66,160
66,121
66,223
66,225
66,225
66,198
Average common equity
405,881
394,048
379,901
367,285
354,421
373,986
Less: Average goodwill and core deposit
intangibles, net
18,826
18,865
18,906
18,946
18,987
18,926
Average tangible common equity
$
387,055
$
375,183
$
360,995
$
348,339
$
335,434
$
355,060
Net Income
$
13,589
$
13,733
$
12,775
$
10,796
$
10,367
$
47,671
Less: Dividends declared on preferred stock
1,171
1,196
1,198
1,184
1,171
4,749
Net Income Available to Common Shareholders
$
12,418
$
12,537
$
11,577
$
9,612
$
9,196
$
42,922
Return on Average Common Equity(A)
12.41
%
12.66
%
12.12
%
10.53
%
10.44
%
11.48
%
Return on Average Tangible Common Equity(A)
13.01
%
13.29
%
12.76
%
11.10
%
11.03
%
12.09
%
___________
(A) Interim periods annualized.
Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
(713) 529-6600
TCBX@dennardlascar.com
View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-2025-first-quarter-financial-results-302436199.html
SOURCE Third Coast Bancshares
Year-over-Year Net Income Improved 31% and Diluted EPS increased 28%
Net Interest Margin Expands to 3.80% and Book Value Per Share Increases
HOUSTON, April 23, 2025 /PRNewswire/ -- Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank (the "Bank"), today reported its 2025 first quarter financial results.
Year to Date Financial Highlights
- Return on average assets of 1.17% annualized for the first quarter of 2025 compared to 1.13% annualized for the fourth quarter of 2024 and 0.95% annualized for the first quarter of 2024.
- Net interest margin of 3.80% for the first quarter of 2025 compared to 3.71% for the fourth quarter of 2024 and 3.60% for the first quarter of 2024.
- Net income for the first quarter of 2025 totaled $13.6 million, or $0.90 and $0.78 per basic and diluted share, respectively, compared to $13.7 million, or $0.92 and $0.79 per basic and diluted share, respectively, for the fourth quarter of 2024.
- Gross loans grew to $3.99 billion as of March 31, 2025, from $3.97 billion reported as of December 31, 2024.
- Book value per share and tangible book value per share(1) increased to $29.92 and $28.56, respectively, as of March 31, 2025, compared to $28.65 and $27.29, respectively, as of December 31, 2024 and $26.18 and $24.79, respectively, as of March 31, 2024.
- On April 1, 2025, the Bank completed a $200 million commercial real estate loan securitization, reducing our risk-weighted assets and improving risk-weighted capital ratios. The transactions also strengthened our financial position by reducing construction and land development loan concentrations and mitigating credit risk.
|
______________ | |
|
(1) |
Non-GAAP financial measure. Please refer to the table titled "GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures" at the end of this news release for a reconciliation of these non-GAAP financial measures. |
Bart Caraway, Founder, Chairman, President & CEO of Third Coast, said, "We delivered a solid first quarter, marked by continued expansion in our net interest margin and steady growth in our loan portfolio, while preserving strong asset quality. Our disciplined approach to managing deposit costs and thoughtful credit risk management enabled us to enhance shareholder value, as reflected in the increase in both book value and tangible book value per share. Despite some seasonal softness in deposits, our core profitability metrics improved, and our capital ratios strengthened, underscoring the resilience of our business model and our commitment to sustainable growth.
"Just following the quarter end, we successfully executed a significant commercial real estate loan securitization, which will provide us with additional flexibility to manage our balance sheet and capital ratios. We believe this transaction will not only reduce our CRE concentration and improve our risk-based capital, but also generate meaningful fee income that will benefit our results in the coming quarters. The securitization demonstrates our forward-thinking approach to capital management and positions us to support future loan growth while upholding a prudent risk profile.
"With a strong capital base, improved asset quality, and a focus on disciplined execution, Third Coast is well positioned to deliver continued value for our shareholders and to compete effectively in the dynamic Texas banking landscape," Mr. Caraway concluded.
Operating Results
Net Income and Earnings Per Share
Net income totaled $13.6 million for the first quarter of 2025, compared to $13.7 million for the fourth quarter of 2024 and $10.4 million for the first quarter of 2024. Net income available to common shareholders totaled $12.4 million for the first quarter of 2025, compared to $12.5 million for the fourth quarter of 2024 and $9.2 million for the first quarter of 2024. The year-over-year increase was primarily due to an increase in net interest income, resulting from loan growth and the purchase of investment securities, and an increase in service charges and fees, offset by an increase in salary and employee benefit expenses during the first quarter of 2025. 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, 2025 and December 31, 2024.
Basic and diluted earnings per share were $0.90 per share and $0.78 per share, respectively, in the first quarter of 2025, compared to $0.92 per share and $0.79 per share, respectively, in the fourth quarter of 2024 and $0.68 per share and $0.61 per share, respectively, in the first quarter of 2024.
Net Interest Margin and Net Interest Income
The net interest margin for the first quarter of 2025 was 3.80%, compared to 3.71% for the fourth quarter of 2024 and 3.60% for the first quarter of 2024. The yield on loans for the first quarter of 2025 was 7.45%, compared to 7.68% for the fourth quarter of 2024 and 7.75% for the first quarter of 2024. The cost of interest-bearing deposits for the first quarter of 2025 was 4.02%, compared to 4.33% for the fourth quarter of 2024 and 4.65% for the first quarter of 2024.
Net interest income totaled $42.8 million for the first quarter of 2025, a decrease of 1.5% from $43.4 million for the fourth quarter of 2024 and an increase of 12.4% from $38.1 million for the first quarter of 2024. Interest income totaled $80.8 million for the first quarter of 2025, a decrease of 5.6% from $85.5 million for the fourth quarter of 2024 and an increase of 2.4% from $78.9 million for the first quarter of 2024. The quarter-over-quarter decrease in interest income resulted from a decrease in loan yields and a decrease in interest income from federal funds sold and deposits in interest-bearing correspondent banks during the first quarter of 2025. Interest expense decreased from $42.1 million for the fourth quarter of 2024 and $40.8 million for the first quarter of 2024 to $38.0 million for the first quarter of 2025, primarily resulting from the reduction in rates paid on interest-bearing deposits.
Noninterest Income and Noninterest Expense
Noninterest income totaled $3.1 million for the first quarter of 2025, compared to $2.9 million for the fourth quarter of 2024 and $2.3 million for the first quarter of 2024. The sequential increase in noninterest income was primarily due to increased service charges and fees during the first quarter of 2025.
Noninterest expense increased to $28.1 million for the first quarter of 2025, compared to $27.2 million for the fourth quarter of 2024 and $25.9 million for the first quarter of 2024. The quarter-over-quarter increase in noninterest expense was primarily due to increased salary expense resulting from new hires, increased bonus expense and a reduction in salary expense deferral related to loan fundings during the first quarter of 2025. At March 31, 2025, the number of employees was 383, compared to 369 at December 31, 2024.
The efficiency ratio was 61.23% for the first quarter of 2025, compared to 58.80% for the fourth quarter of 2024 and 64.11% for the first quarter of 2024.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended March 31, 2025, gross loans increased to $3.99 billion, an increase of $21.6 million, or 0.5%, from $3.97 billion as of December 31, 2024, and an increase of $241.9 million, or 6.5%, from $3.75 billion as of March 31, 2024. Commercial and industrial loans accounted for the majority of the loan growth for the first quarter of 2025, offset by slight decreases in real estate loans and municipal loans from the fourth quarter of 2024.
Asset Quality
Nonperforming loans at March 31, 2025 were $18.6 million, compared to $27.9 million at December 31, 2024 and $21.7 million at March 31, 2024. As of March 31, 2025, the nonperforming loans to total loans ratio was 0.47%, compared to 0.70% as of December 31, 2024 and 0.58% as of March 31, 2024. The decrease in nonperforming loans during the first quarter of 2025 was primarily due to the foreclosure and transfer to OREO of three nonperforming loans for one relationship totaling $7.3 million, the payoff and paydown of five nonperforming loans totaling $1.9 million, and the charge-off of one relationship for $810,000.
The provision for credit loss recorded for the first quarter of 2025 was $450,000, and the allowance for credit losses of $40.5 million represented 1.01% of the $3.99 billion in gross loans outstanding as of March 31, 2025. The provision for credit loss recorded for the fourth quarter of 2024 was $1.2 million, and the allowance for credit losses of $40.3 million represented 1.02% of the $3.97 billion in gross loans outstanding as of December 31, 2024. The decrease in the provision for credit loss recorded in the first quarter of 2025 compared to the fourth quarter of 2024 is a reflection of the improvement in asset quality and loan growth.
The Company recorded net charge-offs of $398,000 and $742,000 for the three months ended March 31, 2025 and March 31, 2024, respectively.
Deposits and Composition
Deposits totaled $4.25 billion as of March 31, 2025, a decrease of 1.4% from $4.31 billion as of December 31, 2024, and an increase of 4.9% from $4.05 billion as of March 31, 2024. Noninterest-bearing demand deposits decreased from $602.1 million as of December 31, 2024, to $448.5 million as of March 31, 2025 and represented 10.6% of total deposits as of March 31, 2025, compared to 14.0% of total deposits as of December 31, 2024. As of March 31, 2025, interest-bearing demand deposits increased $23.5 million, or 0.8%, time deposits increased $71.2 million, or 12.3%, and savings accounts decreased $3.1 million, or 11.1%, respectively, from December 31, 2024.
The average cost of deposits was 3.60% for the first quarter of 2025, representing a 23-basis point decrease from the fourth quarter of 2024 and a 49-basis point decrease from the first quarter of 2024. The decreases were due to the reduction in rates paid on interest-bearing demand deposits.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss its 2025 first quarter results, which will be broadcast live over the Internet, on Thursday, April 24, 2025, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate in the call, dial 201-389-0869 and ask for the Third Coast Bancshares, Inc. call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through May 1, 2025, and may be accessed by dialing 201-612-7415 and using passcode 13752283#. Also, an archive of the webcast will be available shortly after the call at https://ir.thirdcoast.bank/events-and-presentations/events/ for 90 days.
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a commercially focused, Texas-based bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 19 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; economic conditions affecting the real estate market; prepayment risks associated with commercial real estate loans; liquidity risks in the securitization market; operational risks related to the administration of securitized assets; and changes in key management personnel. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission (the "SEC"), and our other filings with the SEC.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, including Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets and Return on Average Tangible Common Equity, which are supplemental measures that are not required by, or are not presented in accordance with GAAP. Please refer to the table titled "GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures" at the end of this press release for a reconciliation of these non-GAAP financial measures.
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited)
| ||||||||||||||||||||
|
2025 |
2024 |
|||||||||||||||||||
|
(Dollars in thousands) |
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
|||||||||||||||
|
ASSETS |
||||||||||||||||||||
|
Cash and cash equivalents: |
||||||||||||||||||||
|
Cash and due from banks |
$ |
218,990 |
$ |
371,157 |
$ |
258,191 |
$ |
241,809 |
$ |
367,831 |
||||||||||
|
Federal funds sold |
110,379 |
50,045 |
12,265 |
12,088 |
130,429 |
|||||||||||||||
|
Total cash and cash equivalents |
329,369 |
421,202 |
270,456 |
253,897 |
498,260 |
|||||||||||||||
|
Interest bearing time deposits in other banks |
359 |
356 |
353 |
350 |
- |
|||||||||||||||
|
Investment securities available-for-sale |
397,442 |
384,025 |
292,104 |
286,167 |
246,291 |
|||||||||||||||
|
Loans held for investment |
3,988,039 |
3,966,425 |
3,889,831 |
3,758,159 |
3,746,178 |
|||||||||||||||
|
Less: allowance for credit losses |
(40,456) |
(40,304) |
(39,683) |
(38,211) |
(38,140) |
|||||||||||||||
|
Loans, net |
3,947,583 |
3,926,121 |
3,850,148 |
3,719,948 |
3,708,038 |
|||||||||||||||
|
Accrued interest receivable |
26,752 |
25,820 |
26,111 |
27,518 |
25,769 |
|||||||||||||||
|
Premises and equipment, net |
25,669 |
26,230 |
26,696 |
27,626 |
26,844 |
|||||||||||||||
|
Bank-owned life insurance |
74,018 |
68,341 |
67,679 |
67,030 |
66,443 |
|||||||||||||||
|
Non-marketable securities, at cost |
15,994 |
15,980 |
24,328 |
16,147 |
16,095 |
|||||||||||||||
|
Deferred tax asset, net |
9,176 |
11,445 |
8,654 |
8,972 |
8,712 |
|||||||||||||||
|
Derivative assets |
3,052 |
6,479 |
5,786 |
7,799 |
11,015 |
|||||||||||||||
|
Right-of-use assets - operating leases |
19,370 |
19,863 |
20,397 |
20,944 |
20,729 |
|||||||||||||||
|
Goodwill and other intangible assets |
18,801 |
18,841 |
18,882 |
18,922 |
18,963 |
|||||||||||||||
|
Other assets |
29,404 |
17,743 |
16,176 |
18,799 |
13,244 |
|||||||||||||||
|
Total assets |
$ |
4,896,989 |
$ |
4,942,446 |
$ |
4,627,770 |
$ |
4,474,119 |
$ |
4,660,403 |
||||||||||
|
LIABILITIES |
||||||||||||||||||||
|
Deposits: |
||||||||||||||||||||
|
Noninterest bearing |
$ |
448,542 |
$ |
602,082 |
$ |
489,822 |
$ |
464,498 |
$ |
424,019 |
||||||||||
|
Interest bearing |
3,800,001 |
3,708,416 |
3,504,616 |
3,391,093 |
3,626,653 |
|||||||||||||||
|
Total deposits |
4,248,543 |
4,310,498 |
3,994,438 |
3,855,591 |
4,050,672 |
|||||||||||||||
|
Accrued interest payable |
7,044 |
6,281 |
7,283 |
5,668 |
3,927 |
|||||||||||||||
|
Derivative liabilities |
3,527 |
8,660 |
6,874 |
7,626 |
8,253 |
|||||||||||||||
|
Lease liability - operating leases |
20,425 |
20,900 |
21,412 |
21,919 |
21,647 |
|||||||||||||||
|
Other liabilities |
25,979 |
23,754 |
34,632 |
30,786 |
27,806 |
|||||||||||||||
|
Line of credit - Senior Debt |
30,875 |
30,875 |
31,875 |
36,875 |
43,875 |
|||||||||||||||
|
Note payable - Subordinated Debentures, net |
80,810 |
80,759 |
80,708 |
80,656 |
80,605 |
|||||||||||||||
|
Total liabilities |
4,417,203 |
4,481,727 |
4,177,222 |
4,039,121 |
4,236,785 |
|||||||||||||||
|
SHAREHOLDERS' EQUITY |
||||||||||||||||||||
|
Series A Convertible Non-Cumulative Preferred Stock |
69 |
69 |
69 |
69 |
69 |
|||||||||||||||
|
Series B Convertible Perpetual Preferred Stock |
- |
- |
- |
- |
- |
|||||||||||||||
|
Common stock |
13,904 |
13,848 |
13,746 |
13,744 |
13,731 |
|||||||||||||||
|
Common stock - non-voting |
- |
- |
- |
- |
- |
|||||||||||||||
|
Additional paid-in capital |
322,456 |
321,696 |
320,871 |
320,496 |
320,077 |
|||||||||||||||
|
Retained earnings |
134,115 |
121,697 |
109,160 |
97,583 |
87,971 |
|||||||||||||||
|
Accumulated other comprehensive income |
10,341 |
4,508 |
7,801 |
4,205 |
2,869 |
|||||||||||||||
|
Treasury stock, at cost |
(1,099) |
(1,099) |
(1,099) |
(1,099) |
(1,099) |
|||||||||||||||
|
Total shareholders' equity |
479,786 |
460,719 |
450,548 |
434,998 |
423,618 |
|||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
4,896,989 |
$ |
4,942,446 |
$ |
4,627,770 |
$ |
4,474,119 |
$ |
4,660,403 |
||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited)
| ||||||||||||||||||||||||
|
Three Months Ended |
Year Ended |
|||||||||||||||||||||||
|
2025 |
2024 |
2024 |
||||||||||||||||||||||
|
(Dollars in thousands, except per share data) |
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
||||||||||||||||||
|
INTEREST INCOME: |
||||||||||||||||||||||||
|
Loans, including fees |
$ |
73,087 |
$ |
76,017 |
$ |
75,468 |
$ |
73,103 |
$ |
70,671 |
$ |
295,259 |
||||||||||||
|
Investment securities available-for-sale |
5,693 |
4,939 |
4,532 |
4,491 |
3,093 |
17,055 |
||||||||||||||||||
|
Federal funds sold and other |
1,986 |
4,580 |
2,719 |
3,631 |
5,112 |
16,042 |
||||||||||||||||||
|
Total interest income |
80,766 |
85,536 |
82,719 |
81,225 |
78,876 |
328,356 |
||||||||||||||||||
|
INTEREST EXPENSE: |
||||||||||||||||||||||||
|
Deposit accounts |
36,226 |
40,233 |
40,407 |
40,410 |
38,698 |
159,748 |
||||||||||||||||||
|
FHLB advances and other borrowings |
1,743 |
1,865 |
1,929 |
1,957 |
2,099 |
7,850 |
||||||||||||||||||
|
Total interest expense |
37,969 |
42,098 |
42,336 |
42,367 |
40,797 |
167,598 |
||||||||||||||||||
|
Net interest income |
42,797 |
43,438 |
40,383 |
38,858 |
38,079 |
160,758 |
||||||||||||||||||
|
Provision for credit losses |
450 |
1,156 |
1,085 |
1,900 |
1,560 |
5,701 |
||||||||||||||||||
|
Net interest income after credit loss expense |
42,347 |
42,282 |
39,298 |
36,958 |
36,519 |
155,057 |
||||||||||||||||||
|
NONINTEREST INCOME: |
||||||||||||||||||||||||
|
Service charges and fees |
2,277 |
1,772 |
2,143 |
1,515 |
1,505 |
6,935 |
||||||||||||||||||
|
Earnings on bank-owned life insurance |
677 |
662 |
649 |
587 |
582 |
2,480 |
||||||||||||||||||
|
(Loss) gain on sale of investment securities available-for-sale |
(228) |
196 |
(480) |
123 |
157 |
(4) |
||||||||||||||||||
|
Gain on sale of SBA loans |
30 |
- |
- |
- |
30 |
30 |
||||||||||||||||||
|
Other |
351 |
243 |
205 |
663 |
69 |
1,180 |
||||||||||||||||||
|
Total noninterest income |
3,107 |
2,873 |
2,517 |
2,888 |
2,343 |
10,621 |
||||||||||||||||||
|
NONINTEREST EXPENSE: |
||||||||||||||||||||||||
|
Salaries and employee benefits |
18,341 |
17,018 |
15,679 |
15,917 |
16,502 |
65,116 |
||||||||||||||||||
|
Occupancy and equipment expense |
3,282 |
3,292 |
3,229 |
3,146 |
3,045 |
12,712 |
||||||||||||||||||
|
Legal and professional |
1,431 |
1,587 |
1,037 |
1,621 |
1,385 |
5,630 |
||||||||||||||||||
|
Data processing and network expense |
1,120 |
1,182 |
1,608 |
1,046 |
1,418 |
5,254 |
||||||||||||||||||
|
Regulatory assessments |
1,306 |
1,196 |
1,249 |
1,005 |
980 |
4,430 |
||||||||||||||||||
|
Advertising and marketing |
409 |
526 |
420 |
406 |
355 |
1,707 |
||||||||||||||||||
|
Software purchases and maintenance |
811 |
766 |
854 |
828 |
817 |
3,265 |
||||||||||||||||||
|
Loan operations |
269 |
189 |
227 |
262 |
226 |
904 |
||||||||||||||||||
|
Telephone and communications |
175 |
144 |
166 |
141 |
134 |
585 |
||||||||||||||||||
|
Other |
964 |
1,330 |
1,085 |
1,257 |
1,052 |
4,724 |
||||||||||||||||||
|
Total noninterest expense |
28,108 |
27,230 |
25,554 |
25,629 |
25,914 |
104,327 |
||||||||||||||||||
|
NET INCOME BEFORE INCOME TAX |
17,346 |
17,925 |
16,261 |
14,217 |
12,948 |
61,351 |
||||||||||||||||||
|
Income tax expense |
3,757 |
4,192 |
3,486 |
3,421 |
2,581 |
13,680 |
||||||||||||||||||
|
NET INCOME |
13,589 |
13,733 |
12,775 |
10,796 |
10,367 |
47,671 |
||||||||||||||||||
|
Preferred stock dividends declared |
1,171 |
1,196 |
1,198 |
1,184 |
1,171 |
4,749 |
||||||||||||||||||
|
NET INCOME AVAILABLE TO COMMON |
$ |
12,418 |
$ |
12,537 |
$ |
11,577 |
$ |
9,612 |
$ |
9,196 |
$ |
42,922 |
||||||||||||
|
EARNINGS PER COMMON SHARE: |
||||||||||||||||||||||||
|
Basic earnings per share |
$ |
0.90 |
$ |
0.92 |
$ |
0.85 |
$ |
0.70 |
$ |
0.68 |
$ |
3.14 |
||||||||||||
|
Diluted earnings per share |
$ |
0.78 |
$ |
0.79 |
$ |
0.74 |
$ |
0.63 |
$ |
0.61 |
$ |
2.78 |
||||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited)
| |||||||||||||||||||||||||
|
Three Months Ended |
Year Ended |
||||||||||||||||||||||||
|
2025 |
2024 |
2024 |
|||||||||||||||||||||||
|
(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 |
$ |
0.90 |
$ |
0.92 |
$ |
0.85 |
$ |
0.70 |
$ |
0.68 |
$ |
3.14 |
|||||||||||||
|
Earnings per share, diluted |
$ |
0.78 |
$ |
0.79 |
$ |
0.74 |
$ |
0.63 |
$ |
0.61 |
$ |
2.78 |
|||||||||||||
|
Dividends on common stock |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
|||||||||||||
|
Dividends on Series A Convertible |
$ |
16.88 |
$ |
17.25 |
$ |
17.25 |
$ |
17.06 |
$ |
16.88 |
$ |
68.44 |
|||||||||||||
|
Return on average assets (A) |
1.17 |
% |
1.13 |
% |
1.14 |
% |
0.97 |
% |
0.95 |
% |
1.05 |
% |
|||||||||||||
|
Return on average common equity (A) |
12.41 |
% |
12.66 |
% |
12.12 |
% |
10.53 |
% |
10.44 |
% |
11.48 |
% |
|||||||||||||
|
Return on average tangible common |
13.01 |
% |
13.29 |
% |
12.76 |
% |
11.10 |
% |
11.03 |
% |
12.09 |
% |
|||||||||||||
|
Net interest margin (A) (C) |
3.80 |
% |
3.71 |
% |
3.73 |
% |
3.62 |
% |
3.60 |
% |
3.67 |
% |
|||||||||||||
|
Efficiency ratio (D) |
61.23 |
% |
58.80 |
% |
59.57 |
% |
61.39 |
% |
64.11 |
% |
60.88 |
% |
|||||||||||||
|
Capital Ratios |
|||||||||||||||||||||||||
|
Third Coast Bancshares, Inc. (consolidated): |
|||||||||||||||||||||||||
|
Total common equity to total assets |
8.45 |
% |
7.98 |
% |
8.31 |
% |
8.24 |
% |
7.67 |
% |
7.98 |
% |
|||||||||||||
|
Tangible common equity to tangible |
8.09 |
% |
7.63 |
% |
7.93 |
% |
7.85 |
% |
7.29 |
% |
7.63 |
% |
|||||||||||||
|
Common equity tier 1 (to risk weighted |
8.70 |
% |
8.41 |
% |
8.38 |
% |
8.29 |
% |
7.97 |
% |
8.41 |
% |
|||||||||||||
|
Tier 1 capital (to risk weighted assets) |
10.19 |
% |
9.90 |
% |
9.93 |
% |
9.88 |
% |
9.54 |
% |
9.90 |
% |
|||||||||||||
|
Total capital (to risk weighted assets) |
12.97 |
% |
12.68 |
% |
12.80 |
% |
12.78 |
% |
12.41 |
% |
12.68 |
% |
|||||||||||||
|
Tier 1 capital (to average assets) |
9.58 |
% |
9.12 |
% |
9.53 |
% |
9.24 |
% |
9.15 |
% |
9.12 |
% |
|||||||||||||
|
Third Coast Bank: |
|||||||||||||||||||||||||
|
Common equity tier 1 (to risk weighted |
12.69 |
% |
12.35 |
% |
12.45 |
% |
12.52 |
% |
12.32 |
% |
12.35 |
% |
|||||||||||||
|
Tier 1 capital (to risk weighted assets) |
12.69 |
% |
12.35 |
% |
12.45 |
% |
12.52 |
% |
12.32 |
% |
12.35 |
% |
|||||||||||||
|
Total capital (to risk weighted assets) |
13.63 |
% |
13.29 |
% |
13.42 |
% |
13.49 |
% |
13.28 |
% |
13.29 |
% |
|||||||||||||
|
Tier 1 capital (to average assets) |
11.93 |
% |
11.37 |
% |
11.95 |
% |
11.71 |
% |
11.81 |
% |
11.37 |
% |
|||||||||||||
|
Other Data |
|||||||||||||||||||||||||
|
Weighted average shares: |
|||||||||||||||||||||||||
|
Basic |
13,776,998 |
13,698,010 |
13,665,400 |
13,657,223 |
13,606,256 |
13,656,859 |
|||||||||||||||||||
|
Diluted |
17,440,826 |
17,394,884 |
17,184,991 |
17,018,680 |
16,936,003 |
17,133,845 |
|||||||||||||||||||
|
Period end shares outstanding |
13,825,286 |
13,769,780 |
13,667,591 |
13,665,505 |
13,652,888 |
13,769,780 |
|||||||||||||||||||
|
Book value per share |
$ |
29.92 |
$ |
28.65 |
$ |
28.13 |
$ |
26.99 |
$ |
26.18 |
$ |
28.65 |
|||||||||||||
|
Tangible book value per share (B) |
$ |
28.56 |
$ |
27.29 |
$ |
26.75 |
$ |
25.60 |
$ |
24.79 |
$ |
27.29 |
|||||||||||||
|
___________ |
|
(A) Interim periods annualized. |
|
(B) Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures at the end of this news release. |
|
(C) Net interest margin represents net interest income divided by average interest-earning assets. |
|
(D) Represents total noninterest expense divided by the sum of net interest income plus noninterest income. Taxes and provision for credit losses are not part of this calculation. |
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited)
| ||||||||||||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||||||||||
|
March 31, 2025 |
December 31, 2024 |
March 31, 2024 |
||||||||||||||||||||||||||||
|
(Dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||||||||||||
|
Assets |
||||||||||||||||||||||||||||||
|
Interest-earnings assets: |
||||||||||||||||||||||||||||||
|
Loans, gross |
$ |
3,979,859 |
$ |
73,087 |
7.45 % |
$ |
3,937,405 |
$ |
76,017 |
7.68 % |
$ |
3,665,378 |
$ |
70,671 |
7.75 % |
|||||||||||||||
|
Investment securities |
398,115 |
5,693 |
5.80 % |
342,474 |
4,939 |
5.74 % |
202,277 |
3,093 |
6.15 % |
|||||||||||||||||||||
|
Federal funds sold and other |
186,893 |
1,986 |
4.31 % |
379,836 |
4,580 |
4.80 % |
383,929 |
5,112 |
5.36 % |
|||||||||||||||||||||
|
Total interest-earning assets |
4,564,867 |
80,766 |
7.18 % |
4,659,715 |
85,536 |
7.30 % |
4,251,584 |
78,876 |
7.46 % |
|||||||||||||||||||||
|
Less allowance for loan losses |
(40,595) |
(39,855) |
(37,278) |
|||||||||||||||||||||||||||
|
Total interest-earning assets, net of |
4,524,272 |
4,619,860 |
4,214,306 |
|||||||||||||||||||||||||||
|
Noninterest-earning assets |
198,522 |
195,143 |
193,070 |
|||||||||||||||||||||||||||
|
Total assets |
$ |
4,722,794 |
$ |
4,815,003 |
$ |
4,407,376 |
||||||||||||||||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||||||||||
|
Interest-bearing deposits |
$ |
3,652,006 |
$ |
36,226 |
4.02 % |
$ |
3,692,533 |
$ |
40,233 |
4.33 % |
$ |
3,346,847 |
$ |
38,698 |
4.65 % |
|||||||||||||||
|
Note payable and line of credit |
111,661 |
1,713 |
6.22 % |
109,294 |
1,708 |
6.22 % |
120,884 |
2,099 |
6.98 % |
|||||||||||||||||||||
|
FHLB advances |
2,551 |
30 |
4.77 % |
11,900 |
157 |
5.25 % |
— |
— |
— |
|||||||||||||||||||||
|
Total interest-bearing liabilities |
3,766,218 |
37,969 |
4.09 % |
3,813,727 |
42,098 |
4.39 % |
3,467,731 |
40,797 |
4.73 % |
|||||||||||||||||||||
|
Noninterest-bearing deposits |
423,780 |
484,738 |
457,054 |
|||||||||||||||||||||||||||
|
Other liabilities |
60,755 |
56,369 |
61,945 |
|||||||||||||||||||||||||||
|
Total liabilities |
4,250,753 |
4,354,834 |
3,986,730 |
|||||||||||||||||||||||||||
|
Shareholders' equity |
472,041 |
460,169 |
420,646 |
|||||||||||||||||||||||||||
|
Total liabilities and shareholders' |
$ |
4,722,794 |
$ |
4,815,003 |
$ |
4,407,376 |
||||||||||||||||||||||||
|
Net interest income |
$ |
42,797 |
$ |
43,438 |
$ |
38,079 |
||||||||||||||||||||||||
|
Net interest spread (1) |
3.09 % |
2.91 % |
2.73 % |
|||||||||||||||||||||||||||
|
Net interest margin (2) |
3.80 % |
3.71 % |
3.60 % |
|||||||||||||||||||||||||||
|
___________ |
|
(1) Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities. |
|
(2) Net interest margin represents net interest income divided by average interest-earning assets. |
|
(3) Interest earned/paid includes accretion of deferred loan fees, premiums and discounts. |
|
(4) Annualized. |
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited)
| |||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||
|
2025 |
2024 |
||||||||||||||||||||
|
(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 |
$ |
420,902 |
$ |
448,134 |
$ |
470,222 |
$ |
499,941 |
$ |
510,266 |
|||||||||||
|
Non-farm non-residential non-owner occupied |
633,227 |
652,119 |
611,617 |
612,268 |
598,311 |
||||||||||||||||
|
Residential |
335,285 |
336,736 |
339,558 |
349,461 |
345,890 |
||||||||||||||||
|
Construction, development & other |
846,166 |
871,373 |
825,302 |
756,646 |
725,176 |
||||||||||||||||
|
Farmland |
30,783 |
30,915 |
35,650 |
31,049 |
29,706 |
||||||||||||||||
|
Commercial & industrial |
1,605,243 |
1,497,408 |
1,499,302 |
1,361,401 |
1,350,289 |
||||||||||||||||
|
Consumer |
1,443 |
1,859 |
2,002 |
2,216 |
2,382 |
||||||||||||||||
|
Municipal and other |
114,990 |
127,881 |
106,178 |
145,177 |
184,158 |
||||||||||||||||
|
Total loans |
$ |
3,988,039 |
$ |
3,966,425 |
$ |
3,889,831 |
$ |
3,758,159 |
$ |
3,746,178 |
|||||||||||
|
Asset Quality: |
|||||||||||||||||||||
|
Nonaccrual loans |
$ |
17,066 |
$ |
26,773 |
$ |
23,522 |
$ |
23,910 |
$ |
18,130 |
|||||||||||
|
Loans > 90 days and still accruing |
1,503 |
1,173 |
522 |
507 |
3,614 |
||||||||||||||||
|
Total nonperforming loans |
18,569 |
27,946 |
24,044 |
24,417 |
21,744 |
||||||||||||||||
|
Other real estate owned |
8,752 |
862 |
283 |
- |
- |
||||||||||||||||
|
Total nonperforming assets |
$ |
27,321 |
$ |
28,808 |
$ |
24,327 |
$ |
24,417 |
$ |
21,744 |
|||||||||||
|
QTD Net charge-offs (recoveries) |
$ |
398 |
$ |
879 |
$ |
(57) |
$ |
1,829 |
$ |
742 |
|||||||||||
|
Nonaccrual loans: |
|||||||||||||||||||||
|
Real estate loans: |
|||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||
|
Non-farm non-residential owner occupied |
$ |
3,100 |
$ |
10,433 |
$ |
9,696 |
$ |
10,051 |
$ |
2,369 |
|||||||||||
|
Non-farm non-residential non-owner occupied |
- |
- |
68 |
74 |
1,225 |
||||||||||||||||
|
Residential |
2,616 |
2,226 |
2,664 |
2,767 |
2,837 |
||||||||||||||||
|
Construction, development & other |
358 |
400 |
1 |
301 |
406 |
||||||||||||||||
|
Commercial & industrial |
10,992 |
13,714 |
11,093 |
10,717 |
11,293 |
||||||||||||||||
|
Total nonaccrual loans |
$ |
17,066 |
$ |
26,773 |
$ |
23,522 |
$ |
23,910 |
$ |
18,130 |
|||||||||||
|
Asset Quality Ratios: |
|||||||||||||||||||||
|
Nonperforming assets to total assets |
0.56 |
% |
0.58 |
% |
0.53 |
% |
0.55 |
% |
0.47 |
% |
|||||||||||
|
Nonperforming loans to total loans |
0.47 |
% |
0.70 |
% |
0.62 |
% |
0.65 |
% |
0.58 |
% |
|||||||||||
|
Allowance for credit losses to total loans |
1.01 |
% |
1.02 |
% |
1.02 |
% |
1.02 |
% |
1.02 |
% |
|||||||||||
|
QTD Net charge-offs (recoveries) to average loans |
0.04 |
% |
0.09 |
% |
(0.01) |
% |
0.20 |
% |
0.08 |
% |
|||||||||||
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 |
|||||||||||||||||||||||
|
2025 |
2024 |
2024 |
||||||||||||||||||||||
|
(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 |
$ |
479,786 |
$ |
460,719 |
$ |
450,548 |
$ |
434,998 |
$ |
423,618 |
$ |
460,719 |
||||||||||||
|
Less: Preferred stock including additional |
66,160 |
66,160 |
66,117 |
66,225 |
66,225 |
66,160 |
||||||||||||||||||
|
Total common equity |
413,626 |
394,559 |
384,431 |
368,773 |
357,393 |
394,559 |
||||||||||||||||||
|
Less: Goodwill and core deposit intangibles, |
18,801 |
18,841 |
18,882 |
18,922 |
18,963 |
18,841 |
||||||||||||||||||
|
Tangible common equity |
$ |
394,825 |
$ |
375,718 |
$ |
365,549 |
$ |
349,851 |
$ |
338,430 |
$ |
375,718 |
||||||||||||
|
Common shares outstanding at end of period |
13,825,286 |
13,769,780 |
13,667,591 |
13,665,505 |
13,652,888 |
13,769,780 |
||||||||||||||||||
|
Book Value Per Share |
$ |
29.92 |
$ |
28.65 |
$ |
28.13 |
$ |
26.99 |
$ |
26.18 |
$ |
28.65 |
||||||||||||
|
Tangible Book Value Per Share |
$ |
28.56 |
$ |
27.29 |
$ |
26.75 |
$ |
25.60 |
$ |
24.79 |
$ |
27.29 |
||||||||||||
|
Tangible Assets: |
||||||||||||||||||||||||
|
Total assets |
$ |
4,896,989 |
$ |
4,942,446 |
$ |
4,627,770 |
$ |
4,474,119 |
$ |
4,660,403 |
$ |
4,942,446 |
||||||||||||
|
Adjustments: Goodwill and core deposit |
18,801 |
18,841 |
18,882 |
18,922 |
18,963 |
18,841 |
||||||||||||||||||
|
Tangible assets |
$ |
4,878,188 |
$ |
4,923,605 |
$ |
4,608,888 |
$ |
4,455,197 |
$ |
4,641,440 |
$ |
4,923,605 |
||||||||||||
|
Total Common Equity to Total Assets |
8.45 |
% |
7.98 |
% |
8.31 |
% |
8.24 |
% |
7.67 |
% |
7.98 |
% |
||||||||||||
|
Tangible Common Equity to Tangible Assets |
8.09 |
% |
7.63 |
% |
7.93 |
% |
7.85 |
% |
7.29 |
% |
7.63 |
% |
||||||||||||
|
Average Tangible Common Equity: |
||||||||||||||||||||||||
|
Average shareholders' equity |
$ |
472,041 |
$ |
460,169 |
$ |
446,124 |
$ |
433,510 |
$ |
420,646 |
$ |
440,184 |
||||||||||||
|
Less: Average preferred stock including |
66,160 |
66,121 |
66,223 |
66,225 |
66,225 |
66,198 |
||||||||||||||||||
|
Average common equity |
405,881 |
394,048 |
379,901 |
367,285 |
354,421 |
373,986 |
||||||||||||||||||
|
Less: Average goodwill and core deposit |
18,826 |
18,865 |
18,906 |
18,946 |
18,987 |
18,926 |
||||||||||||||||||
|
Average tangible common equity |
$ |
387,055 |
$ |
375,183 |
$ |
360,995 |
$ |
348,339 |
$ |
335,434 |
$ |
355,060 |
||||||||||||
|
Net Income |
$ |
13,589 |
$ |
13,733 |
$ |
12,775 |
$ |
10,796 |
$ |
10,367 |
$ |
47,671 |
||||||||||||
|
Less: Dividends declared on preferred stock |
1,171 |
1,196 |
1,198 |
1,184 |
1,171 |
4,749 |
||||||||||||||||||
|
Net Income Available to Common Shareholders |
$ |
12,418 |
$ |
12,537 |
$ |
11,577 |
$ |
9,612 |
$ |
9,196 |
$ |
42,922 |
||||||||||||
|
Return on Average Common Equity(A) |
12.41 |
% |
12.66 |
% |
12.12 |
% |
10.53 |
% |
10.44 |
% |
11.48 |
% |
||||||||||||
|
Return on Average Tangible Common Equity(A) |
13.01 |
% |
13.29 |
% |
12.76 |
% |
11.10 |
% |
11.03 |
% |
12.09 |
% |
||||||||||||
|
___________ |
|
(A) Interim periods annualized. |
Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
(713) 529-6600
TCBX@dennardlascar.com
View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-2025-first-quarter-financial-results-302436199.html
SOURCE Third Coast Bancshares