Third Coast Bancshares, Inc. Reports 2025 Second Quarter Financial Results
Record EPS of $1.12 and Diluted EPS of $0.96 in Latest Quarterly Results
HOUSTON, July 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 second quarter financial results.
Year to Date Financial Highlights
- Return on average assets of 1.38% annualized for the second quarter of 2025 compared to 1.17% annualized for the first quarter of 2025 and 0.97% annualized for the second quarter of 2024.
- Net interest margin of 4.22% for the second quarter of 2025 compared to 3.80% for the first quarter of 2025 and 3.62% for the second quarter of 2024.
- Net income for the second quarter of 2025 totaled $16.7 million, or $1.12 and $0.96 per basic and diluted share, respectively, compared to $13.6 million, or $0.90 and $0.78 per basic and diluted share, respectively, for the first quarter of 2025 and $10.8 million, or $0.70 and $0.63 per basic and diluted share, respectively, for the second quarter of 2024.
- Efficiency ratio continues to improve from 61.23% for the first quarter of 2025 to 55.45% for the second quarter of 2025.
- Gross loans grew to $4.08 billion as of June 30, 2025, from $3.99 billion reported as of March 31, 2025.
- Book value per share and tangible book value per share(1) increased to $31.04 and $29.69, respectively, as of June 30, 2025, compared to $29.92 and $28.56, respectively, as of March 31, 2025 and $26.99 and $25.60, respectively, as of June 30, 2024.
- Completed two securitizations of $100 million and $150 million of commercial real estate loans during the second quarter of 2025.
(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've achieved another record–breaking quarter, setting a new high for earnings per share in the second quarter. This marks a 15.4% increase in Net Interest Income from the sequential first quarter and a 27.1% increase from the second quarter of 2024.
"Since Third Coast's IPO in November 2021, we have consistently delivered exceptional performance and sustained value creation. Total assets have grown by 98% from $2.49 billion in December 2021 to $4.94 billion today. In parallel, we've improved our efficiency ratio by an impressive 25%, moving from 74.43% in 2021 to 55.45% this quarter—a clear indicator of operational discipline. Additionally, our return on assets has increased 150% in this short period of time, climbing from 0.55% in 2021 to 1.38% in the current quarter – another milestone that underscores the steep and steady trajectory of our profitability.
"With a team that continues to execute at a high level and a track record of outperforming our peers, we believe Third Coast is well positioned to remain in the top tier of bank performers. Backed by a strong Texas-based franchise and a scalable platform—demonstrated by our successful securitizations this quarter—Third Coast intends to thrive in a consolidating industry while continuing to attract long-term investors."
Operating Results
Net Income and Earnings Per Share
Net income totaled $16.7 million for the second quarter of 2025, compared to $13.6 million for the first quarter of 2025 and $10.8 million for the second quarter of 2024. Net income available to common shareholders totaled $15.6 million for the second quarter of 2025, compared to $12.4 million for the first quarter of 2025 and $9.6 million for the second quarter of 2024. The quarter-over-quarter increase was primarily due to an increase in net interest income, resulting from an increase in loans, a portion of which were securitized, and the purchase of associated securities resulted in an increase in investment yields during the second 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 June 30, 2025 and March 31, 2025.
Basic and diluted earnings per share were $1.12 per share and $0.96 per share, respectively, in the second quarter of 2025, compared to $0.90 per share and $0.78 per share, respectively, in the first quarter of 2025 and $0.70 per share and $0.63 per share, respectively, in the second quarter of 2024.
Net Interest Margin and Net Interest Income
The net interest margin for the second quarter of 2025 was 4.22%, compared to 3.80% for the first quarter of 2025 and 3.62% for the second quarter of 2024. The yield on loans for the second quarter of 2025 was 7.95%, compared to 7.45% for the first quarter of 2025 and 6.07% for the second quarter of 2024. The cost of interest-bearing deposits for the second quarter of 2025 was 4.00%, compared to 4.02% for the first quarter of 2025 and 4.76% for the second quarter of 2024.
Net interest income totaled $49.4 million for the second quarter of 2025, an increase of 15.4% from $42.8 million for the first quarter of 2025 and an increase of 27.1% from $38.9 million for the second quarter of 2024. Interest income totaled $88.7 million for the second quarter of 2025, an increase of 9.8% from $80.8 million for the first quarter of 2025 and an increase of 9.2% from $81.2 million for the second quarter of 2024. The quarter-over-quarter increase in interest income resulted from an increase in loans, a portion of which were securitized, and the purchase of associated securities resulted in an increase in investment yields during the second quarter of 2025. Interest expense was $39.3 million for the second quarter of 2025, an increase of $1.3 million, or 3.5%, from $38.0 million for the first quarter of 2025 and a decrease of $3.1 million, or 7.3%, from $42.4 million for the second quarter of 2024.
Noninterest Income and Noninterest Expense
Noninterest income totaled $2.7 million for the second quarter of 2025, compared to $3.1 million for the first quarter of 2025 and $2.9 million for the second quarter of 2024. The decrease in other noninterest income was primarily due to changes in the first quarter valuation estimates of other real estate owned during the second quarter of 2025.
Noninterest expense increased to $28.8 million for the second quarter of 2025, compared to $28.1 million for the first quarter of 2025 and $25.6 million for the second quarter of 2024. The quarter-over-quarter increase in noninterest expense was primarily due to increased legal and professional expenses related to the securitization of loans and increased other expenses due to higher letter of credit costs during the second quarter of 2025. At June 30, 2025, the number of employees was 388, compared to 383 at March 31, 2025.
The efficiency ratio was 55.45% for the second quarter of 2025, compared to 61.23% for the first quarter of 2025 and 61.39% for the second quarter of 2024.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended June 30, 2025, gross loans increased to $4.08 billion, an increase of $91.7 million, or 2.3%, from $3.99 billion as of March 31, 2025, and an increase of $321.6 million, or 8.6%, from $3.76 billion as of June 30, 2024. Commercial and industrial loans accounted for the majority of the loan growth for the second quarter of 2025, offset by slight decreases in real estate loans from the first quarter of 2025.
Asset Quality
Nonperforming loans at June 30, 2025 were $20.1 million, compared to $18.6 million at March 31, 2025 and $24.4 million at June 30, 2024. As of June 30, 2025, the nonperforming loans to total loans ratio was 0.49%, compared to 0.47% as of March 31, 2025 and 0.65% as of June 30, 2024. The increase in nonperforming loans during the second quarter of 2025 was primarily due to several factors. Loans greater than 90 days past due and still accruing increased by $5.2 million, primarily due to one commercial loan with a net book value of $4.2 million. This increase was partially offset by a decline in nonaccrual loans of $3.7 million, which was primarily attributed to the payoff of a $2.0 million loan and approximately $800,000 in loans placed back on accrual.
The provision for credit loss recorded for the second quarter of 2025 was $2.1 million, and the allowance for credit losses of $40.0 million represented 0.98% of the $4.08 billion in gross loans outstanding as of June 30, 2025. The 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 increase in the provision for credit loss recorded in the second quarter of 2025 compared to the first quarter of 2025 was primarily due to the charge-off of a factoring receivable facility.
The Company recorded net charge-offs of $2.4 million and $1.8 million for the three months ended June 30, 2025 and June 30, 2024, respectively.
Deposits and Composition
Deposits totaled $4.28 billion as of June 30, 2025, an increase of 0.8% from $4.25 billion as of March 31, 2025, and an increase of 11.0% from $3.86 billion as of June 30, 2024. Noninterest-bearing demand deposits decreased from $448.5 million as of March 31, 2025, to $441.0 million as of June 30, 2025 and represented 10.3% of total deposits as of June 30, 2025, compared to 10.6% of total deposits as of March 31, 2025. As of June 30, 2025, time deposits increased $130.7 million, or 20.1%, partially offset by a decrease in interest-bearing demand deposits of $89.1 million, or 2.9%, and a decrease in savings accounts of $1.7 million, or 6.7%, respectively, from March 31, 2025.
The average cost of deposits was 3.59% for the second quarter of 2025, representing a 1-basis point decrease from the first quarter of 2025 and a 63-basis point decrease from the second 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 second quarter results, which will be broadcast live over the Internet, on Thursday, July 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 July 31, 2025, and may be accessed by dialing 201-612-7415 and using passcode 13752287#. 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)
June 30
March 31
December 31
September 30
June 30
ASSETS
Cash and cash equivalents:
Cash and due from banks
$
113,141
$
218,990
$
371,157
$
258,191
$
241,809
Federal funds sold
5,815
110,379
50,045
12,265
12,088
Total cash and cash equivalents
118,956
329,369
421,202
270,456
253,897
Interest bearing time deposits in other banks
262
359
356
353
350
Investment securities available-for-sale
355,753
397,442
384,025
292,104
286,167
Investment securities held to maturity
206,065
-
-
-
-
Loans held for investment
4,079,736
3,988,039
3,966,425
3,889,831
3,758,159
Less: allowance for credit losses
(40,035)
(40,456)
(40,304)
(39,683)
(38,211)
Loans held for investment, net
4,039,701
3,947,583
3,926,121
3,850,148
3,719,948
Accrued interest receivable
27,736
26,752
25,820
26,111
27,518
Premises and equipment, net
24,908
25,669
26,230
26,696
27,626
Bank-owned life insurance
74,761
74,018
68,341
67,679
67,030
Non-marketable securities, at cost
18,761
15,994
15,980
24,328
16,147
Deferred tax asset, net
8,646
9,176
11,445
8,654
8,972
Derivative assets
3,059
3,052
6,479
5,786
7,799
Right-of-use assets - operating leases
18,769
19,370
19,863
20,397
20,944
Goodwill and other intangible assets
18,761
18,801
18,841
18,882
18,922
Other assets
27,633
29,404
17,743
16,176
18,799
Total assets
$
4,943,771
$
4,896,989
$
4,942,446
$
4,627,770
$
4,474,119
LIABILITIES
Deposits:
Noninterest bearing
$
440,964
$
448,542
$
602,082
$
489,822
$
464,498
Interest bearing
3,839,905
3,800,001
3,708,416
3,504,616
3,391,093
Total deposits
4,280,869
4,248,543
4,310,498
3,994,438
3,855,591
Accrued interest payable
6,691
7,044
6,281
7,283
5,668
Derivative liabilities
3,779
3,527
8,660
6,874
7,626
Lease liability - operating leases
19,835
20,425
20,900
21,412
21,919
Other liabilities
24,745
25,979
23,754
34,632
30,786
Line of credit - Senior Debt
30,875
30,875
30,875
31,875
36,875
Note payable - Subordinated Debentures, net
80,862
80,810
80,759
80,708
80,656
Total liabilities
4,447,656
4,417,203
4,481,727
4,177,222
4,039,121
SHAREHOLDERS' EQUITY
Series A Convertible Non-Cumulative Preferred Stock
69
69
69
69
69
Series B Convertible Perpetual Preferred Stock
-
-
-
-
-
Common stock
13,930
13,904
13,848
13,746
13,744
Common stock - non-voting
-
-
-
-
-
Additional paid-in capital
322,972
322,456
321,696
320,871
320,496
Retained earnings
149,677
134,115
121,697
109,160
97,583
Accumulated other comprehensive income
10,566
10,341
4,508
7,801
4,205
Treasury stock, at cost
(1,099)
(1,099)
(1,099)
(1,099)
(1,099)
Total shareholders' equity
496,115
479,786
460,719
450,548
434,998
Total liabilities and shareholders' equity
$
4,943,771
$
4,896,989
$
4,942,446
$
4,627,770
$
4,474,119
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
Six Months Ended
2025
2024
2025
2024
(Dollars in thousands, except per share data)
June 30
March 31
December
31
September
30
June 30
June 30
June 30
INTEREST INCOME:
Loans, including fees
$
79,706
$
73,087
$
76,017
$
75,468
$
73,103
$
152,793
$
143,774
Investment securities available-for-sale
5,505
5,693
4,939
4,532
4,491
11,198
7,584
Investment securities held-to-maturity
1,607
-
-
-
-
1,607
-
Federal funds sold and other
1,844
1,986
4,580
2,719
3,631
3,830
8,743
Total interest income
88,662
80,766
85,536
82,719
81,225
169,428
160,101
INTEREST EXPENSE:
Deposit accounts
37,535
36,226
40,233
40,407
40,410
73,761
79,108
FHLB advances and other borrowings
1,753
1,743
1,865
1,929
1,957
3,496
4,056
Total interest expense
39,288
37,969
42,098
42,336
42,367
77,257
83,164
Net interest income
49,374
42,797
43,438
40,383
38,858
92,171
76,937
Provision for credit losses
2,130
450
1,156
1,085
1,900
2,580
3,460
Net interest income after credit loss expense
47,244
42,347
42,282
39,298
36,958
89,591
73,477
NONINTEREST INCOME:
Service charges and fees
2,125
2,277
1,772
2,143
1,515
4,402
3,020
Earnings on bank-owned life insurance
743
677
662
649
587
1,420
1,169
(Loss) gain on sale of investment securities available-for-sale
(110)
(228)
196
(480)
123
(338)
280
Gain on sale of SBA loans
44
30
-
-
-
74
30
Other
(152)
351
243
205
663
199
732
Total noninterest income
2,650
3,107
2,873
2,517
2,888
5,757
5,231
NONINTEREST EXPENSE:
Salaries and employee benefits
18,179
18,341
17,018
15,679
15,917
36,520
32,419
Occupancy and equipment expense
2,783
2,834
2,856
2,817
2,763
5,617
5,420
Legal and professional
1,927
1,431
1,587
1,037
1,621
3,358
3,006
Data processing and network expense
1,162
1,120
1,182
1,608
1,046
2,282
2,464
Regulatory assessments
1,203
1,306
1,196
1,249
1,005
2,509
1,985
Advertising and marketing
503
409
526
420
406
912
761
Software purchases and maintenance
1,149
1,259
1,202
1,266
1,211
2,408
2,416
Loan operations and other real estate owned expense
439
269
189
227
262
708
488
Telephone and communications
115
175
144
166
141
290
275
Other
1,386
964
1,330
1,085
1,257
2,350
2,309
Total noninterest expense
28,846
28,108
27,230
25,554
25,629
56,954
51,543
NET INCOME BEFORE INCOME TAX
EXPENSE
21,048
17,346
17,925
16,261
14,217
38,394
27,165
Income tax expense
4,301
3,757
4,192
3,486
3,421
8,058
6,002
NET INCOME
16,747
13,589
13,733
12,775
10,796
30,336
21,163
Preferred stock dividends declared
1,185
1,171
1,196
1,198
1,184
2,356
2,355
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS
$
15,562
$
12,418
$
12,537
$
11,577
$
9,612
$
27,980
$
18,808
EARNINGS PER COMMON SHARE:
Basic earnings per share
$
1.12
$
0.90
$
0.92
$
0.85
$
0.70
$
2.03
$
1.38
Diluted earnings per share
$
0.96
$
0.78
$
0.79
$
0.74
$
0.63
$
1.74
$
1.25
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
Six Months Ended
2025
2024
2025
2024
(Dollars in thousands, except
share and per share data)
June 30
March 31
December
31
September
30
June 30
June 30
June 30
Earnings per share, basic
$
1.12
$
0.90
$
0.92
$
0.85
$
0.70
$
2.03
$
1.38
Earnings per share, diluted
$
0.96
$
0.78
$
0.79
$
0.74
$
0.63
$
1.74
$
1.25
Dividends on common stock
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Dividends on Series A Convertible
Non-Cumulative Preferred Stock
$
17.06
$
16.88
$
17.25
$
17.25
$
17.06
$
33.94
$
33.94
Return on average assets (A)
1.38
%
1.17
%
1.13
%
1.14
%
0.97
%
1.28
%
0.96
%
Return on average common equity (A)
14.70
%
12.41
%
12.66
%
12.12
%
10.53
%
13.59
%
10.48
%
Return on average tangible common
equity (A) (B)
15.38
%
13.01
%
13.29
%
12.76
%
11.10
%
14.23
%
11.06
%
Net interest margin (A) (C)
4.22
%
3.80
%
3.71
%
3.73
%
3.62
%
4.02
%
3.61
%
Efficiency ratio (D)
55.45
%
61.23
%
58.80
%
59.57
%
61.39
%
58.16
%
62.73
%
Capital Ratios
Third Coast Bancshares, Inc. (consolidated):
Total common equity to total assets
8.70
%
8.45
%
7.98
%
8.31
%
8.24
%
8.70
%
8.24
%
Tangible common equity to tangible
assets (B)
8.35
%
8.09
%
7.63
%
7.93
%
7.85
%
8.35
%
7.85
%
Estimated Common equity tier 1 (to risk
weighted assets)
8.75
%
8.70
%
8.41
%
8.38
%
8.29
%
8.75
%
8.29
%
Estimated Tier 1 capital (to risk weighted
assets)
10.20
%
10.19
%
9.90
%
9.93
%
9.88
%
10.20
%
9.88
%
Estimated Total capital (to risk weighted
assets)
12.87
%
12.97
%
12.68
%
12.80
%
12.78
%
12.87
%
12.78
%
Estimated Tier 1 capital (to average
assets)
9.65
%
9.58
%
9.12
%
9.53
%
9.24
%
9.65
%
9.24
%
Third Coast Bank:
Estimated Common equity tier 1 (to risk
weighted assets)
12.56
%
12.69
%
12.35
%
12.45
%
12.52
%
12.56
%
12.52
%
Estimated Tier 1 capital (to risk weighted
assets)
12.56
%
12.69
%
12.35
%
12.45
%
12.52
%
12.56
%
12.52
%
Estimated Total capital (to risk weighted
assets)
13.46
%
13.63
%
13.29
%
13.42
%
13.49
%
13.46
%
13.49
%
Estimated Tier 1 capital (to average
assets)
11.89
%
11.93
%
11.37
%
11.95
%
11.71
%
11.89
%
11.71
%
Other Data
Weighted average shares:
Basic
13,836,830
13,776,998
13,698,010
13,665,400
13,657,223
13,807,079
13,631,740
Diluted
17,391,128
17,440,826
17,394,884
17,184,991
17,018,680
17,416,142
16,977,342
Period end shares outstanding
13,851,581
13,825,286
13,769,780
13,667,591
13,665,505
13,851,581
13,665,505
Book value per share
$
31.04
$
29.92
$
28.65
$
28.13
$
26.99
$
31.04
$
26.99
Tangible book value per share (B)
$
29.69
$
28.56
$
27.29
$
26.75
$
25.60
$
29.69
$
25.60
(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
June 30, 2025
March 31, 2025
June 30, 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
$
4,020,771
$
79,706
7.95 %
$
3,979,859
$
73,087
7.45 %
$
3,740,544
$
73,103
7.86 %
Investment securities available-for-sale
382,439
5,505
5.77 %
398,115
5,693
5.80 %
297,653
4,491
6.07 %
Investment securities held-to-maturity
117,407
1,607
5.49 %
—
—
—
—
—
—
Federal funds sold and other
interest-earning assets
169,943
1,844
4.35 %
186,893
1,986
4.31 %
277,144
3,631
5.27 %
Total interest-earning assets
4,690,560
88,662
7.58 %
4,564,867
80,766
7.18 %
4,315,341
81,225
7.57 %
Less: allowance for loan losses
(40,631)
(40,595)
(38,429)
Total interest-earning assets, net of
allowance
4,649,929
4,524,272
4,276,912
Noninterest-earning assets
210,170
198,522
195,193
Total assets
$
4,860,099
$
4,722,794
$
4,472,105
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits
$
3,766,801
$
37,535
4.00 %
$
3,652,006
$
36,226
4.02 %
$
3,411,592
$
40,410
4.76 %
Note payable and line of credit
111,712
1,719
6.17 %
111,661
1,713
6.22 %
121,275
1,957
6.49 %
FHLB advances
2,916
34
4.68 %
2,551
30
4.77 %
—
—
—
Total interest-bearing liabilities
3,881,429
39,288
4.06 %
3,766,218
37,969
4.09 %
3,532,867
42,367
4.82 %
Noninterest-bearing deposits
431,144
423,780
442,672
Other liabilities
56,785
60,755
63,056
Total liabilities
4,369,358
4,250,753
4,038,595
Shareholders' equity
490,741
472,041
433,510
Total liabilities and shareholders'
equity
$
4,860,099
$
4,722,794
$
4,472,105
Net interest income
$
49,374
$
42,797
$
38,858
Net interest spread (1)
3.52 %
3.09 %
2.75 %
Net interest margin (2)
4.22 %
3.80 %
3.62 %
(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)
Six Months Ended
June 30, 2025
June 30, 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)
Assets
Interest-earnings assets:
Loans, gross
$
4,000,428
$
152,793
7.70 %
$
3,702,960
$
143,774
7.81 %
Investment securities available-for-sale
390,233
11,198
5.79 %
249,965
7,584
6.10 %
Investment securities held-to-maturity
59,028
1,607
5.49 %
—
—
—
Federal funds sold and other interest-earning
assets
178,372
3,830
4.33 %
330,536
8,743
5.32 %
Total interest-earning assets
4,628,061
169,428
7.38 %
4,283,461
160,101
7.52 %
Less: allowance for loan losses
(40,613)
(37,853)
Total interest-earning assets, net of allowance
4,587,448
4,245,608
Noninterest-earning assets
204,378
194,133
Total assets
$
4,791,826
$
4,439,741
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits
$
3,709,721
$
73,761
4.01 %
$
3,379,219
$
79,108
4.71 %
Note payable and line of credit
111,687
3,432
6.20 %
121,080
4,056
6.74 %
FHLB advances and other
2,735
64
4.72 %
—
—
—
Total interest-bearing liabilities
3,824,143
77,257
4.07 %
3,500,299
83,164
4.78 %
Noninterest-bearing deposits
427,482
449,863
Other liabilities
58,758
62,501
Total liabilities
4,310,383
4,012,663
Shareholders' equity
481,443
427,078
Total liabilities and shareholders' equity
$
4,791,826
$
4,439,741
Net interest income
$
92,171
$
76,937
Net interest spread (1)
3.31 %
2.74 %
Net interest margin (2)
4.02 %
3.61 %
(1)
Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities.
(2)
Net interest margin represents net interest income divided by average interest-earning assets.
(3)
Interest earned/paid includes accretion of deferred loan fees, premiums and discounts.
(4)
Annualized.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
2025
2024
(Dollars in thousands)
June 30
March 31
December 31
September 30
June 30
Period-end Loan Portfolio:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied
$
423,959
$
420,902
$
448,134
$
470,222
$
499,941
Non-farm non-residential non-owner occupied
666,840
633,227
652,119
611,617
612,268
Residential
323,898
335,285
336,736
339,558
349,461
Construction, development & other
784,364
846,166
871,373
825,302
756,646
Farmland
28,013
30,783
30,915
35,650
31,049
Commercial & industrial
1,724,583
1,605,243
1,497,408
1,499,302
1,361,401
Consumer
1,206
1,443
1,859
2,002
2,216
Municipal and other
126,873
114,990
127,881
106,178
145,177
Total loans
$
4,079,736
$
3,988,039
$
3,966,425
$
3,889,831
$
3,758,159
Asset Quality:
Nonaccrual loans
$
13,358
$
17,066
$
26,773
$
23,522
$
23,910
Loans > 90 days and still accruing
6,755
1,503
1,173
522
507
Total nonperforming loans
20,113
18,569
27,946
24,044
24,417
Other real estate owned
8,580
8,752
862
283
-
Total nonperforming assets
$
28,693
$
27,321
$
28,808
$
24,327
$
24,417
QTD Net charge-offs (recoveries)
$
2,376
$
398
$
879
$
(57)
$
1,829
Nonaccrual loans:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied
$
2,191
$
3,100
$
10,433
$
9,696
$
10,051
Non-farm non-residential non-owner occupied
111
-
-
68
74
Residential
637
2,616
2,226
2,664
2,767
Construction, development & other
344
358
400
1
301
Commercial & industrial
10,075
10,992
13,714
11,093
10,717
Total nonaccrual loans
$
13,358
$
17,066
$
26,773
$
23,522
$
23,910
Asset Quality Ratios:
Nonperforming assets to total assets
0.58
%
0.56
%
0.58
%
0.53
%
0.55
%
Nonperforming loans to total loans
0.49
%
0.47
%
0.70
%
0.62
%
0.65
%
Allowance for credit losses to total loans
0.98
%
1.01
%
1.02
%
1.02
%
1.02
%
QTD Net charge-offs (recoveries) to average loans
(annualized)
0.24
%
0.04
%
0.09
%
(0.01)
%
0.20
%
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
Six Months Ended
2025
2024
2025
2024
(Dollars in thousands, except
share and per share data)
June 30
March 31
December
31
September
30
June 30
June 30
June 30
Tangible Common Equity:
Total shareholders' equity
$
496,115
$
479,786
$
460,719
$
450,548
$
434,998
$
496,115
$
434,998
Less: Preferred stock including additional
paid in capital
66,160
66,160
66,160
66,117
66,225
66,160
66,225
Total common equity
429,955
413,626
394,559
384,431
368,773
429,955
368,773
Less: Goodwill and core deposit intangibles,
net
18,761
18,801
18,841
18,882
18,922
18,761
18,922
Tangible common equity
$
411,194
$
394,825
$
375,718
$
365,549
$
349,851
$
411,194
$
349,851
Common shares outstanding at end of period
13,851,581
13,825,286
13,769,780
13,667,591
13,665,505
13,851,581
13,665,505
Book Value Per Share
$
31.04
$
29.92
$
28.65
$
28.13
$
26.99
$
31.04
$
26.99
Tangible Book Value Per Share
$
29.69
$
28.56
$
27.29
$
26.75
$
25.60
$
29.69
$
25.60
Tangible Assets:
Total assets
$
4,943,771
$
4,896,989
$
4,942,446
$
4,627,770
$
4,474,119
$
4,943,771
$
4,474,119
Adjustments: Goodwill and core deposit
intangibles, net
18,761
18,801
18,841
18,882
18,922
18,761
18,922
Tangible assets
$
4,925,010
$
4,878,188
$
4,923,605
$
4,608,888
$
4,455,197
$
4,925,010
$
4,455,197
Total Common Equity to Total Assets
8.70
%
8.45
%
7.98
%
8.31
%
8.24
%
8.70
%
8.24
%
Tangible Common Equity to Tangible Assets
8.35
%
8.09
%
7.63
%
7.93
%
7.85
%
8.35
%
7.85
%
Average Tangible Common Equity:
Average shareholders' equity
$
490,741
$
472,041
$
460,169
$
446,124
$
433,510
$
481,443
$
427,078
Less: Average preferred stock including
additional paid in capital
66,160
66,160
66,121
66,223
66,225
66,160
66,225
Average common equity
424,581
405,881
394,048
379,901
367,285
415,283
360,853
Less: Average goodwill and core deposit
intangibles, net
18,784
18,826
18,865
18,906
18,946
18,805
18,967
Average tangible common equity
$
405,797
$
387,055
$
375,183
$
360,995
$
348,339
$
396,478
$
341,886
Net Income
$
16,747
$
13,589
$
13,733
$
12,775
$
10,796
$
30,336
$
21,163
Less: Dividends declared on preferred stock
1,185
1,171
1,196
1,198
1,184
2,356
2,355
Net Income Available to Common Shareholders
$
15,562
$
12,418
$
12,537
$
11,577
$
9,612
$
27,980
$
18,808
Return on Average Common Equity(A)
14.70
%
12.41
%
12.66
%
12.12
%
10.53
%
13.59
%
10.48
%
Return on Average Tangible Common Equity(A)
15.38
%
13.01
%
13.29
%
12.76
%
11.10
%
14.23
%
11.06
%
(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-second-quarter-financial-results-302512310.html
SOURCE Third Coast Bancshares
Record EPS of $1.12 and Diluted EPS of $0.96 in Latest Quarterly Results
HOUSTON, July 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 second quarter financial results.
Year to Date Financial Highlights
- Return on average assets of 1.38% annualized for the second quarter of 2025 compared to 1.17% annualized for the first quarter of 2025 and 0.97% annualized for the second quarter of 2024.
- Net interest margin of 4.22% for the second quarter of 2025 compared to 3.80% for the first quarter of 2025 and 3.62% for the second quarter of 2024.
- Net income for the second quarter of 2025 totaled $16.7 million, or $1.12 and $0.96 per basic and diluted share, respectively, compared to $13.6 million, or $0.90 and $0.78 per basic and diluted share, respectively, for the first quarter of 2025 and $10.8 million, or $0.70 and $0.63 per basic and diluted share, respectively, for the second quarter of 2024.
- Efficiency ratio continues to improve from 61.23% for the first quarter of 2025 to 55.45% for the second quarter of 2025.
- Gross loans grew to $4.08 billion as of June 30, 2025, from $3.99 billion reported as of March 31, 2025.
- Book value per share and tangible book value per share(1) increased to $31.04 and $29.69, respectively, as of June 30, 2025, compared to $29.92 and $28.56, respectively, as of March 31, 2025 and $26.99 and $25.60, respectively, as of June 30, 2024.
- Completed two securitizations of $100 million and $150 million of commercial real estate loans during the second quarter of 2025.
|
(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've achieved another record–breaking quarter, setting a new high for earnings per share in the second quarter. This marks a 15.4% increase in Net Interest Income from the sequential first quarter and a 27.1% increase from the second quarter of 2024.
"Since Third Coast's IPO in November 2021, we have consistently delivered exceptional performance and sustained value creation. Total assets have grown by 98% from $2.49 billion in December 2021 to $4.94 billion today. In parallel, we've improved our efficiency ratio by an impressive 25%, moving from 74.43% in 2021 to 55.45% this quarter—a clear indicator of operational discipline. Additionally, our return on assets has increased 150% in this short period of time, climbing from 0.55% in 2021 to 1.38% in the current quarter – another milestone that underscores the steep and steady trajectory of our profitability.
"With a team that continues to execute at a high level and a track record of outperforming our peers, we believe Third Coast is well positioned to remain in the top tier of bank performers. Backed by a strong Texas-based franchise and a scalable platform—demonstrated by our successful securitizations this quarter—Third Coast intends to thrive in a consolidating industry while continuing to attract long-term investors."
Operating Results
Net Income and Earnings Per Share
Net income totaled $16.7 million for the second quarter of 2025, compared to $13.6 million for the first quarter of 2025 and $10.8 million for the second quarter of 2024. Net income available to common shareholders totaled $15.6 million for the second quarter of 2025, compared to $12.4 million for the first quarter of 2025 and $9.6 million for the second quarter of 2024. The quarter-over-quarter increase was primarily due to an increase in net interest income, resulting from an increase in loans, a portion of which were securitized, and the purchase of associated securities resulted in an increase in investment yields during the second 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 June 30, 2025 and March 31, 2025.
Basic and diluted earnings per share were $1.12 per share and $0.96 per share, respectively, in the second quarter of 2025, compared to $0.90 per share and $0.78 per share, respectively, in the first quarter of 2025 and $0.70 per share and $0.63 per share, respectively, in the second quarter of 2024.
Net Interest Margin and Net Interest Income
The net interest margin for the second quarter of 2025 was 4.22%, compared to 3.80% for the first quarter of 2025 and 3.62% for the second quarter of 2024. The yield on loans for the second quarter of 2025 was 7.95%, compared to 7.45% for the first quarter of 2025 and 6.07% for the second quarter of 2024. The cost of interest-bearing deposits for the second quarter of 2025 was 4.00%, compared to 4.02% for the first quarter of 2025 and 4.76% for the second quarter of 2024.
Net interest income totaled $49.4 million for the second quarter of 2025, an increase of 15.4% from $42.8 million for the first quarter of 2025 and an increase of 27.1% from $38.9 million for the second quarter of 2024. Interest income totaled $88.7 million for the second quarter of 2025, an increase of 9.8% from $80.8 million for the first quarter of 2025 and an increase of 9.2% from $81.2 million for the second quarter of 2024. The quarter-over-quarter increase in interest income resulted from an increase in loans, a portion of which were securitized, and the purchase of associated securities resulted in an increase in investment yields during the second quarter of 2025. Interest expense was $39.3 million for the second quarter of 2025, an increase of $1.3 million, or 3.5%, from $38.0 million for the first quarter of 2025 and a decrease of $3.1 million, or 7.3%, from $42.4 million for the second quarter of 2024.
Noninterest Income and Noninterest Expense
Noninterest income totaled $2.7 million for the second quarter of 2025, compared to $3.1 million for the first quarter of 2025 and $2.9 million for the second quarter of 2024. The decrease in other noninterest income was primarily due to changes in the first quarter valuation estimates of other real estate owned during the second quarter of 2025.
Noninterest expense increased to $28.8 million for the second quarter of 2025, compared to $28.1 million for the first quarter of 2025 and $25.6 million for the second quarter of 2024. The quarter-over-quarter increase in noninterest expense was primarily due to increased legal and professional expenses related to the securitization of loans and increased other expenses due to higher letter of credit costs during the second quarter of 2025. At June 30, 2025, the number of employees was 388, compared to 383 at March 31, 2025.
The efficiency ratio was 55.45% for the second quarter of 2025, compared to 61.23% for the first quarter of 2025 and 61.39% for the second quarter of 2024.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended June 30, 2025, gross loans increased to $4.08 billion, an increase of $91.7 million, or 2.3%, from $3.99 billion as of March 31, 2025, and an increase of $321.6 million, or 8.6%, from $3.76 billion as of June 30, 2024. Commercial and industrial loans accounted for the majority of the loan growth for the second quarter of 2025, offset by slight decreases in real estate loans from the first quarter of 2025.
Asset Quality
Nonperforming loans at June 30, 2025 were $20.1 million, compared to $18.6 million at March 31, 2025 and $24.4 million at June 30, 2024. As of June 30, 2025, the nonperforming loans to total loans ratio was 0.49%, compared to 0.47% as of March 31, 2025 and 0.65% as of June 30, 2024. The increase in nonperforming loans during the second quarter of 2025 was primarily due to several factors. Loans greater than 90 days past due and still accruing increased by $5.2 million, primarily due to one commercial loan with a net book value of $4.2 million. This increase was partially offset by a decline in nonaccrual loans of $3.7 million, which was primarily attributed to the payoff of a $2.0 million loan and approximately $800,000 in loans placed back on accrual.
The provision for credit loss recorded for the second quarter of 2025 was $2.1 million, and the allowance for credit losses of $40.0 million represented 0.98% of the $4.08 billion in gross loans outstanding as of June 30, 2025. The 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 increase in the provision for credit loss recorded in the second quarter of 2025 compared to the first quarter of 2025 was primarily due to the charge-off of a factoring receivable facility.
The Company recorded net charge-offs of $2.4 million and $1.8 million for the three months ended June 30, 2025 and June 30, 2024, respectively.
Deposits and Composition
Deposits totaled $4.28 billion as of June 30, 2025, an increase of 0.8% from $4.25 billion as of March 31, 2025, and an increase of 11.0% from $3.86 billion as of June 30, 2024. Noninterest-bearing demand deposits decreased from $448.5 million as of March 31, 2025, to $441.0 million as of June 30, 2025 and represented 10.3% of total deposits as of June 30, 2025, compared to 10.6% of total deposits as of March 31, 2025. As of June 30, 2025, time deposits increased $130.7 million, or 20.1%, partially offset by a decrease in interest-bearing demand deposits of $89.1 million, or 2.9%, and a decrease in savings accounts of $1.7 million, or 6.7%, respectively, from March 31, 2025.
The average cost of deposits was 3.59% for the second quarter of 2025, representing a 1-basis point decrease from the first quarter of 2025 and a 63-basis point decrease from the second 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 second quarter results, which will be broadcast live over the Internet, on Thursday, July 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 July 31, 2025, and may be accessed by dialing 201-612-7415 and using passcode 13752287#. 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) |
June 30 |
March 31 |
December 31 |
September 30 |
June 30 |
|||||||||||||||
|
ASSETS |
||||||||||||||||||||
|
Cash and cash equivalents: |
||||||||||||||||||||
|
Cash and due from banks |
$ |
113,141 |
$ |
218,990 |
$ |
371,157 |
$ |
258,191 |
$ |
241,809 |
||||||||||
|
Federal funds sold |
5,815 |
110,379 |
50,045 |
12,265 |
12,088 |
|||||||||||||||
|
Total cash and cash equivalents |
118,956 |
329,369 |
421,202 |
270,456 |
253,897 |
|||||||||||||||
|
Interest bearing time deposits in other banks |
262 |
359 |
356 |
353 |
350 |
|||||||||||||||
|
Investment securities available-for-sale |
355,753 |
397,442 |
384,025 |
292,104 |
286,167 |
|||||||||||||||
|
Investment securities held to maturity |
206,065 |
- |
- |
- |
- |
|||||||||||||||
|
Loans held for investment |
4,079,736 |
3,988,039 |
3,966,425 |
3,889,831 |
3,758,159 |
|||||||||||||||
|
Less: allowance for credit losses |
(40,035) |
(40,456) |
(40,304) |
(39,683) |
(38,211) |
|||||||||||||||
|
Loans held for investment, net |
4,039,701 |
3,947,583 |
3,926,121 |
3,850,148 |
3,719,948 |
|||||||||||||||
|
Accrued interest receivable |
27,736 |
26,752 |
25,820 |
26,111 |
27,518 |
|||||||||||||||
|
Premises and equipment, net |
24,908 |
25,669 |
26,230 |
26,696 |
27,626 |
|||||||||||||||
|
Bank-owned life insurance |
74,761 |
74,018 |
68,341 |
67,679 |
67,030 |
|||||||||||||||
|
Non-marketable securities, at cost |
18,761 |
15,994 |
15,980 |
24,328 |
16,147 |
|||||||||||||||
|
Deferred tax asset, net |
8,646 |
9,176 |
11,445 |
8,654 |
8,972 |
|||||||||||||||
|
Derivative assets |
3,059 |
3,052 |
6,479 |
5,786 |
7,799 |
|||||||||||||||
|
Right-of-use assets - operating leases |
18,769 |
19,370 |
19,863 |
20,397 |
20,944 |
|||||||||||||||
|
Goodwill and other intangible assets |
18,761 |
18,801 |
18,841 |
18,882 |
18,922 |
|||||||||||||||
|
Other assets |
27,633 |
29,404 |
17,743 |
16,176 |
18,799 |
|||||||||||||||
|
Total assets |
$ |
4,943,771 |
$ |
4,896,989 |
$ |
4,942,446 |
$ |
4,627,770 |
$ |
4,474,119 |
||||||||||
|
LIABILITIES |
||||||||||||||||||||
|
Deposits: |
||||||||||||||||||||
|
Noninterest bearing |
$ |
440,964 |
$ |
448,542 |
$ |
602,082 |
$ |
489,822 |
$ |
464,498 |
||||||||||
|
Interest bearing |
3,839,905 |
3,800,001 |
3,708,416 |
3,504,616 |
3,391,093 |
|||||||||||||||
|
Total deposits |
4,280,869 |
4,248,543 |
4,310,498 |
3,994,438 |
3,855,591 |
|||||||||||||||
|
Accrued interest payable |
6,691 |
7,044 |
6,281 |
7,283 |
5,668 |
|||||||||||||||
|
Derivative liabilities |
3,779 |
3,527 |
8,660 |
6,874 |
7,626 |
|||||||||||||||
|
Lease liability - operating leases |
19,835 |
20,425 |
20,900 |
21,412 |
21,919 |
|||||||||||||||
|
Other liabilities |
24,745 |
25,979 |
23,754 |
34,632 |
30,786 |
|||||||||||||||
|
Line of credit - Senior Debt |
30,875 |
30,875 |
30,875 |
31,875 |
36,875 |
|||||||||||||||
|
Note payable - Subordinated Debentures, net |
80,862 |
80,810 |
80,759 |
80,708 |
80,656 |
|||||||||||||||
|
Total liabilities |
4,447,656 |
4,417,203 |
4,481,727 |
4,177,222 |
4,039,121 |
|||||||||||||||
|
SHAREHOLDERS' EQUITY |
||||||||||||||||||||
|
Series A Convertible Non-Cumulative Preferred Stock |
69 |
69 |
69 |
69 |
69 |
|||||||||||||||
|
Series B Convertible Perpetual Preferred Stock |
- |
- |
- |
- |
- |
|||||||||||||||
|
Common stock |
13,930 |
13,904 |
13,848 |
13,746 |
13,744 |
|||||||||||||||
|
Common stock - non-voting |
- |
- |
- |
- |
- |
|||||||||||||||
|
Additional paid-in capital |
322,972 |
322,456 |
321,696 |
320,871 |
320,496 |
|||||||||||||||
|
Retained earnings |
149,677 |
134,115 |
121,697 |
109,160 |
97,583 |
|||||||||||||||
|
Accumulated other comprehensive income |
10,566 |
10,341 |
4,508 |
7,801 |
4,205 |
|||||||||||||||
|
Treasury stock, at cost |
(1,099) |
(1,099) |
(1,099) |
(1,099) |
(1,099) |
|||||||||||||||
|
Total shareholders' equity |
496,115 |
479,786 |
460,719 |
450,548 |
434,998 |
|||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
4,943,771 |
$ |
4,896,989 |
$ |
4,942,446 |
$ |
4,627,770 |
$ |
4,474,119 |
||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) |
|||||||||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||||||
|
2025 |
2024 |
2025 |
2024 |
||||||||||||||||||||||||||
|
(Dollars in thousands, except per share data) |
June 30 |
March 31 |
December |
September |
June 30 |
June 30 |
June 30 |
||||||||||||||||||||||
|
INTEREST INCOME: |
|||||||||||||||||||||||||||||
|
Loans, including fees |
$ |
79,706 |
$ |
73,087 |
$ |
76,017 |
$ |
75,468 |
$ |
73,103 |
$ |
152,793 |
$ |
143,774 |
|||||||||||||||
|
Investment securities available-for-sale |
5,505 |
5,693 |
4,939 |
4,532 |
4,491 |
11,198 |
7,584 |
||||||||||||||||||||||
|
Investment securities held-to-maturity |
1,607 |
- |
- |
- |
- |
1,607 |
- |
||||||||||||||||||||||
|
Federal funds sold and other |
1,844 |
1,986 |
4,580 |
2,719 |
3,631 |
3,830 |
8,743 |
||||||||||||||||||||||
|
Total interest income |
88,662 |
80,766 |
85,536 |
82,719 |
81,225 |
169,428 |
160,101 |
||||||||||||||||||||||
|
INTEREST EXPENSE: |
|||||||||||||||||||||||||||||
|
Deposit accounts |
37,535 |
36,226 |
40,233 |
40,407 |
40,410 |
73,761 |
79,108 |
||||||||||||||||||||||
|
FHLB advances and other borrowings |
1,753 |
1,743 |
1,865 |
1,929 |
1,957 |
3,496 |
4,056 |
||||||||||||||||||||||
|
Total interest expense |
39,288 |
37,969 |
42,098 |
42,336 |
42,367 |
77,257 |
83,164 |
||||||||||||||||||||||
|
Net interest income |
49,374 |
42,797 |
43,438 |
40,383 |
38,858 |
92,171 |
76,937 |
||||||||||||||||||||||
|
Provision for credit losses |
2,130 |
450 |
1,156 |
1,085 |
1,900 |
2,580 |
3,460 |
||||||||||||||||||||||
|
Net interest income after credit loss expense |
47,244 |
42,347 |
42,282 |
39,298 |
36,958 |
89,591 |
73,477 |
||||||||||||||||||||||
|
NONINTEREST INCOME: |
|||||||||||||||||||||||||||||
|
Service charges and fees |
2,125 |
2,277 |
1,772 |
2,143 |
1,515 |
4,402 |
3,020 |
||||||||||||||||||||||
|
Earnings on bank-owned life insurance |
743 |
677 |
662 |
649 |
587 |
1,420 |
1,169 |
||||||||||||||||||||||
|
(Loss) gain on sale of investment securities available-for-sale |
(110) |
(228) |
196 |
(480) |
123 |
(338) |
280 |
||||||||||||||||||||||
|
Gain on sale of SBA loans |
44 |
30 |
- |
- |
- |
74 |
30 |
||||||||||||||||||||||
|
Other |
(152) |
351 |
243 |
205 |
663 |
199 |
732 |
||||||||||||||||||||||
|
Total noninterest income |
2,650 |
3,107 |
2,873 |
2,517 |
2,888 |
5,757 |
5,231 |
||||||||||||||||||||||
|
NONINTEREST EXPENSE: |
|||||||||||||||||||||||||||||
|
Salaries and employee benefits |
18,179 |
18,341 |
17,018 |
15,679 |
15,917 |
36,520 |
32,419 |
||||||||||||||||||||||
|
Occupancy and equipment expense |
2,783 |
2,834 |
2,856 |
2,817 |
2,763 |
5,617 |
5,420 |
||||||||||||||||||||||
|
Legal and professional |
1,927 |
1,431 |
1,587 |
1,037 |
1,621 |
3,358 |
3,006 |
||||||||||||||||||||||
|
Data processing and network expense |
1,162 |
1,120 |
1,182 |
1,608 |
1,046 |
2,282 |
2,464 |
||||||||||||||||||||||
|
Regulatory assessments |
1,203 |
1,306 |
1,196 |
1,249 |
1,005 |
2,509 |
1,985 |
||||||||||||||||||||||
|
Advertising and marketing |
503 |
409 |
526 |
420 |
406 |
912 |
761 |
||||||||||||||||||||||
|
Software purchases and maintenance |
1,149 |
1,259 |
1,202 |
1,266 |
1,211 |
2,408 |
2,416 |
||||||||||||||||||||||
|
Loan operations and other real estate owned expense |
439 |
269 |
189 |
227 |
262 |
708 |
488 |
||||||||||||||||||||||
|
Telephone and communications |
115 |
175 |
144 |
166 |
141 |
290 |
275 |
||||||||||||||||||||||
|
Other |
1,386 |
964 |
1,330 |
1,085 |
1,257 |
2,350 |
2,309 |
||||||||||||||||||||||
|
Total noninterest expense |
28,846 |
28,108 |
27,230 |
25,554 |
25,629 |
56,954 |
51,543 |
||||||||||||||||||||||
|
NET INCOME BEFORE INCOME TAX |
21,048 |
17,346 |
17,925 |
16,261 |
14,217 |
38,394 |
27,165 |
||||||||||||||||||||||
|
Income tax expense |
4,301 |
3,757 |
4,192 |
3,486 |
3,421 |
8,058 |
6,002 |
||||||||||||||||||||||
|
NET INCOME |
16,747 |
13,589 |
13,733 |
12,775 |
10,796 |
30,336 |
21,163 |
||||||||||||||||||||||
|
Preferred stock dividends declared |
1,185 |
1,171 |
1,196 |
1,198 |
1,184 |
2,356 |
2,355 |
||||||||||||||||||||||
|
NET INCOME AVAILABLE TO COMMON |
$ |
15,562 |
$ |
12,418 |
$ |
12,537 |
$ |
11,577 |
$ |
9,612 |
$ |
27,980 |
$ |
18,808 |
|||||||||||||||
|
EARNINGS PER COMMON SHARE: |
|||||||||||||||||||||||||||||
|
Basic earnings per share |
$ |
1.12 |
$ |
0.90 |
$ |
0.92 |
$ |
0.85 |
$ |
0.70 |
$ |
2.03 |
$ |
1.38 |
|||||||||||||||
|
Diluted earnings per share |
$ |
0.96 |
$ |
0.78 |
$ |
0.79 |
$ |
0.74 |
$ |
0.63 |
$ |
1.74 |
$ |
1.25 |
|||||||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) |
|||||||||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||||||
|
2025 |
2024 |
2025 |
2024 |
||||||||||||||||||||||||||
|
(Dollars in thousands, except |
June 30 |
March 31 |
December |
September |
June 30 |
June 30 |
June 30 |
||||||||||||||||||||||
|
Earnings per share, basic |
$ |
1.12 |
$ |
0.90 |
$ |
0.92 |
$ |
0.85 |
$ |
0.70 |
$ |
2.03 |
$ |
1.38 |
|||||||||||||||
|
Earnings per share, diluted |
$ |
0.96 |
$ |
0.78 |
$ |
0.79 |
$ |
0.74 |
$ |
0.63 |
$ |
1.74 |
$ |
1.25 |
|||||||||||||||
|
Dividends on common stock |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
|||||||||||||||
|
Dividends on Series A Convertible |
$ |
17.06 |
$ |
16.88 |
$ |
17.25 |
$ |
17.25 |
$ |
17.06 |
$ |
33.94 |
$ |
33.94 |
|||||||||||||||
|
Return on average assets (A) |
1.38 |
% |
1.17 |
% |
1.13 |
% |
1.14 |
% |
0.97 |
% |
1.28 |
% |
0.96 |
% |
|||||||||||||||
|
Return on average common equity (A) |
14.70 |
% |
12.41 |
% |
12.66 |
% |
12.12 |
% |
10.53 |
% |
13.59 |
% |
10.48 |
% |
|||||||||||||||
|
Return on average tangible common |
15.38 |
% |
13.01 |
% |
13.29 |
% |
12.76 |
% |
11.10 |
% |
14.23 |
% |
11.06 |
% |
|||||||||||||||
|
Net interest margin (A) (C) |
4.22 |
% |
3.80 |
% |
3.71 |
% |
3.73 |
% |
3.62 |
% |
4.02 |
% |
3.61 |
% |
|||||||||||||||
|
Efficiency ratio (D) |
55.45 |
% |
61.23 |
% |
58.80 |
% |
59.57 |
% |
61.39 |
% |
58.16 |
% |
62.73 |
% |
|||||||||||||||
|
Capital Ratios |
|||||||||||||||||||||||||||||
|
Third Coast Bancshares, Inc. (consolidated): |
|||||||||||||||||||||||||||||
|
Total common equity to total assets |
8.70 |
% |
8.45 |
% |
7.98 |
% |
8.31 |
% |
8.24 |
% |
8.70 |
% |
8.24 |
% |
|||||||||||||||
|
Tangible common equity to tangible |
8.35 |
% |
8.09 |
% |
7.63 |
% |
7.93 |
% |
7.85 |
% |
8.35 |
% |
7.85 |
% |
|||||||||||||||
|
Estimated Common equity tier 1 (to risk |
8.75 |
% |
8.70 |
% |
8.41 |
% |
8.38 |
% |
8.29 |
% |
8.75 |
% |
8.29 |
% |
|||||||||||||||
|
Estimated Tier 1 capital (to risk weighted |
10.20 |
% |
10.19 |
% |
9.90 |
% |
9.93 |
% |
9.88 |
% |
10.20 |
% |
9.88 |
% |
|||||||||||||||
|
Estimated Total capital (to risk weighted |
12.87 |
% |
12.97 |
% |
12.68 |
% |
12.80 |
% |
12.78 |
% |
12.87 |
% |
12.78 |
% |
|||||||||||||||
|
Estimated Tier 1 capital (to average |
9.65 |
% |
9.58 |
% |
9.12 |
% |
9.53 |
% |
9.24 |
% |
9.65 |
% |
9.24 |
% |
|||||||||||||||
|
Third Coast Bank: |
|||||||||||||||||||||||||||||
|
Estimated Common equity tier 1 (to risk |
12.56 |
% |
12.69 |
% |
12.35 |
% |
12.45 |
% |
12.52 |
% |
12.56 |
% |
12.52 |
% |
|||||||||||||||
|
Estimated Tier 1 capital (to risk weighted |
12.56 |
% |
12.69 |
% |
12.35 |
% |
12.45 |
% |
12.52 |
% |
12.56 |
% |
12.52 |
% |
|||||||||||||||
|
Estimated Total capital (to risk weighted |
13.46 |
% |
13.63 |
% |
13.29 |
% |
13.42 |
% |
13.49 |
% |
13.46 |
% |
13.49 |
% |
|||||||||||||||
|
Estimated Tier 1 capital (to average |
11.89 |
% |
11.93 |
% |
11.37 |
% |
11.95 |
% |
11.71 |
% |
11.89 |
% |
11.71 |
% |
|||||||||||||||
|
Other Data |
|||||||||||||||||||||||||||||
|
Weighted average shares: |
|||||||||||||||||||||||||||||
|
Basic |
13,836,830 |
13,776,998 |
13,698,010 |
13,665,400 |
13,657,223 |
13,807,079 |
13,631,740 |
||||||||||||||||||||||
|
Diluted |
17,391,128 |
17,440,826 |
17,394,884 |
17,184,991 |
17,018,680 |
17,416,142 |
16,977,342 |
||||||||||||||||||||||
|
Period end shares outstanding |
13,851,581 |
13,825,286 |
13,769,780 |
13,667,591 |
13,665,505 |
13,851,581 |
13,665,505 |
||||||||||||||||||||||
|
Book value per share |
$ |
31.04 |
$ |
29.92 |
$ |
28.65 |
$ |
28.13 |
$ |
26.99 |
$ |
31.04 |
$ |
26.99 |
|||||||||||||||
|
Tangible book value per share (B) |
$ |
29.69 |
$ |
28.56 |
$ |
27.29 |
$ |
26.75 |
$ |
25.60 |
$ |
29.69 |
$ |
25.60 |
|||||||||||||||
|
(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 |
||||||||||||||||||||||||||||||||||
|
June 30, 2025 |
March 31, 2025 |
June 30, 2024 |
||||||||||||||||||||||||||||||||
|
(Dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||||||||||||||||
|
Assets |
||||||||||||||||||||||||||||||||||
|
Interest-earnings assets: |
||||||||||||||||||||||||||||||||||
|
Loans, gross |
$ |
4,020,771 |
$ |
79,706 |
7.95 % |
$ |
3,979,859 |
$ |
73,087 |
7.45 % |
$ |
3,740,544 |
$ |
73,103 |
7.86 % |
|||||||||||||||||||
|
Investment securities available-for-sale |
382,439 |
5,505 |
5.77 % |
398,115 |
5,693 |
5.80 % |
297,653 |
4,491 |
6.07 % |
|||||||||||||||||||||||||
|
Investment securities held-to-maturity |
117,407 |
1,607 |
5.49 % |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||
|
Federal funds sold and other |
169,943 |
1,844 |
4.35 % |
186,893 |
1,986 |
4.31 % |
277,144 |
3,631 |
5.27 % |
|||||||||||||||||||||||||
|
Total interest-earning assets |
4,690,560 |
88,662 |
7.58 % |
4,564,867 |
80,766 |
7.18 % |
4,315,341 |
81,225 |
7.57 % |
|||||||||||||||||||||||||
|
Less: allowance for loan losses |
(40,631) |
(40,595) |
(38,429) |
|||||||||||||||||||||||||||||||
|
Total interest-earning assets, net of |
4,649,929 |
4,524,272 |
4,276,912 |
|||||||||||||||||||||||||||||||
|
Noninterest-earning assets |
210,170 |
198,522 |
195,193 |
|||||||||||||||||||||||||||||||
|
Total assets |
$ |
4,860,099 |
$ |
4,722,794 |
$ |
4,472,105 |
||||||||||||||||||||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||||||||||||||
|
Interest-bearing deposits |
$ |
3,766,801 |
$ |
37,535 |
4.00 % |
$ |
3,652,006 |
$ |
36,226 |
4.02 % |
$ |
3,411,592 |
$ |
40,410 |
4.76 % |
|||||||||||||||||||
|
Note payable and line of credit |
111,712 |
1,719 |
6.17 % |
111,661 |
1,713 |
6.22 % |
121,275 |
1,957 |
6.49 % |
|||||||||||||||||||||||||
|
FHLB advances |
2,916 |
34 |
4.68 % |
2,551 |
30 |
4.77 % |
— |
— |
— |
|||||||||||||||||||||||||
|
Total interest-bearing liabilities |
3,881,429 |
39,288 |
4.06 % |
3,766,218 |
37,969 |
4.09 % |
3,532,867 |
42,367 |
4.82 % |
|||||||||||||||||||||||||
|
Noninterest-bearing deposits |
431,144 |
423,780 |
442,672 |
|||||||||||||||||||||||||||||||
|
Other liabilities |
56,785 |
60,755 |
63,056 |
|||||||||||||||||||||||||||||||
|
Total liabilities |
4,369,358 |
4,250,753 |
4,038,595 |
|||||||||||||||||||||||||||||||
|
Shareholders' equity |
490,741 |
472,041 |
433,510 |
|||||||||||||||||||||||||||||||
|
Total liabilities and shareholders' |
$ |
4,860,099 |
$ |
4,722,794 |
$ |
4,472,105 |
||||||||||||||||||||||||||||
|
Net interest income |
$ |
49,374 |
$ |
42,797 |
$ |
38,858 |
||||||||||||||||||||||||||||
|
Net interest spread (1) |
3.52 % |
3.09 % |
2.75 % |
|||||||||||||||||||||||||||||||
|
Net interest margin (2) |
4.22 % |
3.80 % |
3.62 % |
|||||||||||||||||||||||||||||||
|
(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) |
||||||||||||||||||||||
|
Six Months Ended |
||||||||||||||||||||||
|
June 30, 2025 |
June 30, 2024 |
|||||||||||||||||||||
|
(Dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
||||||||||||||||
|
Assets |
||||||||||||||||||||||
|
Interest-earnings assets: |
||||||||||||||||||||||
|
Loans, gross |
$ |
4,000,428 |
$ |
152,793 |
7.70 % |
$ |
3,702,960 |
$ |
143,774 |
7.81 % |
||||||||||||
|
Investment securities available-for-sale |
390,233 |
11,198 |
5.79 % |
249,965 |
7,584 |
6.10 % |
||||||||||||||||
|
Investment securities held-to-maturity |
59,028 |
1,607 |
5.49 % |
— |
— |
— |
||||||||||||||||
|
Federal funds sold and other interest-earning |
178,372 |
3,830 |
4.33 % |
330,536 |
8,743 |
5.32 % |
||||||||||||||||
|
Total interest-earning assets |
4,628,061 |
169,428 |
7.38 % |
4,283,461 |
160,101 |
7.52 % |
||||||||||||||||
|
Less: allowance for loan losses |
(40,613) |
(37,853) |
||||||||||||||||||||
|
Total interest-earning assets, net of allowance |
4,587,448 |
4,245,608 |
||||||||||||||||||||
|
Noninterest-earning assets |
204,378 |
194,133 |
||||||||||||||||||||
|
Total assets |
$ |
4,791,826 |
$ |
4,439,741 |
||||||||||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||
|
Interest-bearing deposits |
$ |
3,709,721 |
$ |
73,761 |
4.01 % |
$ |
3,379,219 |
$ |
79,108 |
4.71 % |
||||||||||||
|
Note payable and line of credit |
111,687 |
3,432 |
6.20 % |
121,080 |
4,056 |
6.74 % |
||||||||||||||||
|
FHLB advances and other |
2,735 |
64 |
4.72 % |
— |
— |
— |
||||||||||||||||
|
Total interest-bearing liabilities |
3,824,143 |
77,257 |
4.07 % |
3,500,299 |
83,164 |
4.78 % |
||||||||||||||||
|
Noninterest-bearing deposits |
427,482 |
449,863 |
||||||||||||||||||||
|
Other liabilities |
58,758 |
62,501 |
||||||||||||||||||||
|
Total liabilities |
4,310,383 |
4,012,663 |
||||||||||||||||||||
|
Shareholders' equity |
481,443 |
427,078 |
||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
4,791,826 |
$ |
4,439,741 |
||||||||||||||||||
|
Net interest income |
$ |
92,171 |
$ |
76,937 |
||||||||||||||||||
|
Net interest spread (1) |
3.31 % |
2.74 % |
||||||||||||||||||||
|
Net interest margin (2) |
4.02 % |
3.61 % |
||||||||||||||||||||
|
(1) |
Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities. |
|||||||||||
|
(2) |
Net interest margin represents net interest income divided by average interest-earning assets. |
|||||||||||
|
(3) |
Interest earned/paid includes accretion of deferred loan fees, premiums and discounts. |
|||||||||||
|
(4) |
Annualized. |
|||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) |
|||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||
|
2025 |
2024 |
||||||||||||||||||||
|
(Dollars in thousands) |
June 30 |
March 31 |
December 31 |
September 30 |
June 30 |
||||||||||||||||
|
Period-end Loan Portfolio: |
|||||||||||||||||||||
|
Real estate loans: |
|||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||
|
Non-farm non-residential owner occupied |
$ |
423,959 |
$ |
420,902 |
$ |
448,134 |
$ |
470,222 |
$ |
499,941 |
|||||||||||
|
Non-farm non-residential non-owner occupied |
666,840 |
633,227 |
652,119 |
611,617 |
612,268 |
||||||||||||||||
|
Residential |
323,898 |
335,285 |
336,736 |
339,558 |
349,461 |
||||||||||||||||
|
Construction, development & other |
784,364 |
846,166 |
871,373 |
825,302 |
756,646 |
||||||||||||||||
|
Farmland |
28,013 |
30,783 |
30,915 |
35,650 |
31,049 |
||||||||||||||||
|
Commercial & industrial |
1,724,583 |
1,605,243 |
1,497,408 |
1,499,302 |
1,361,401 |
||||||||||||||||
|
Consumer |
1,206 |
1,443 |
1,859 |
2,002 |
2,216 |
||||||||||||||||
|
Municipal and other |
126,873 |
114,990 |
127,881 |
106,178 |
145,177 |
||||||||||||||||
|
Total loans |
$ |
4,079,736 |
$ |
3,988,039 |
$ |
3,966,425 |
$ |
3,889,831 |
$ |
3,758,159 |
|||||||||||
|
Asset Quality: |
|||||||||||||||||||||
|
Nonaccrual loans |
$ |
13,358 |
$ |
17,066 |
$ |
26,773 |
$ |
23,522 |
$ |
23,910 |
|||||||||||
|
Loans > 90 days and still accruing |
6,755 |
1,503 |
1,173 |
522 |
507 |
||||||||||||||||
|
Total nonperforming loans |
20,113 |
18,569 |
27,946 |
24,044 |
24,417 |
||||||||||||||||
|
Other real estate owned |
8,580 |
8,752 |
862 |
283 |
- |
||||||||||||||||
|
Total nonperforming assets |
$ |
28,693 |
$ |
27,321 |
$ |
28,808 |
$ |
24,327 |
$ |
24,417 |
|||||||||||
|
QTD Net charge-offs (recoveries) |
$ |
2,376 |
$ |
398 |
$ |
879 |
$ |
(57) |
$ |
1,829 |
|||||||||||
|
Nonaccrual loans: |
|||||||||||||||||||||
|
Real estate loans: |
|||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||
|
Non-farm non-residential owner occupied |
$ |
2,191 |
$ |
3,100 |
$ |
10,433 |
$ |
9,696 |
$ |
10,051 |
|||||||||||
|
Non-farm non-residential non-owner occupied |
111 |
- |
- |
68 |
74 |
||||||||||||||||
|
Residential |
637 |
2,616 |
2,226 |
2,664 |
2,767 |
||||||||||||||||
|
Construction, development & other |
344 |
358 |
400 |
1 |
301 |
||||||||||||||||
|
Commercial & industrial |
10,075 |
10,992 |
13,714 |
11,093 |
10,717 |
||||||||||||||||
|
Total nonaccrual loans |
$ |
13,358 |
$ |
17,066 |
$ |
26,773 |
$ |
23,522 |
$ |
23,910 |
|||||||||||
|
Asset Quality Ratios: |
|||||||||||||||||||||
|
Nonperforming assets to total assets |
0.58 |
% |
0.56 |
% |
0.58 |
% |
0.53 |
% |
0.55 |
% |
|||||||||||
|
Nonperforming loans to total loans |
0.49 |
% |
0.47 |
% |
0.70 |
% |
0.62 |
% |
0.65 |
% |
|||||||||||
|
Allowance for credit losses to total loans |
0.98 |
% |
1.01 |
% |
1.02 |
% |
1.02 |
% |
1.02 |
% |
|||||||||||
|
QTD Net charge-offs (recoveries) to average loans |
0.24 |
% |
0.04 |
% |
0.09 |
% |
(0.01) |
% |
0.20 |
% |
|||||||||||
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 |
Six Months Ended |
|||||||||||||||||||||||||||
|
2025 |
2024 |
2025 |
2024 |
|||||||||||||||||||||||||
|
(Dollars in thousands, except |
June 30 |
March 31 |
December |
September |
June 30 |
June 30 |
June 30 |
|||||||||||||||||||||
|
Tangible Common Equity: |
||||||||||||||||||||||||||||
|
Total shareholders' equity |
$ |
496,115 |
$ |
479,786 |
$ |
460,719 |
$ |
450,548 |
$ |
434,998 |
$ |
496,115 |
$ |
434,998 |
||||||||||||||
|
Less: Preferred stock including additional |
66,160 |
66,160 |
66,160 |
66,117 |
66,225 |
66,160 |
66,225 |
|||||||||||||||||||||
|
Total common equity |
429,955 |
413,626 |
394,559 |
384,431 |
368,773 |
429,955 |
368,773 |
|||||||||||||||||||||
|
Less: Goodwill and core deposit intangibles, |
18,761 |
18,801 |
18,841 |
18,882 |
18,922 |
18,761 |
18,922 |
|||||||||||||||||||||
|
Tangible common equity |
$ |
411,194 |
$ |
394,825 |
$ |
375,718 |
$ |
365,549 |
$ |
349,851 |
$ |
411,194 |
$ |
349,851 |
||||||||||||||
|
Common shares outstanding at end of period |
13,851,581 |
13,825,286 |
13,769,780 |
13,667,591 |
13,665,505 |
13,851,581 |
13,665,505 |
|||||||||||||||||||||
|
Book Value Per Share |
$ |
31.04 |
$ |
29.92 |
$ |
28.65 |
$ |
28.13 |
$ |
26.99 |
$ |
31.04 |
$ |
26.99 |
||||||||||||||
|
Tangible Book Value Per Share |
$ |
29.69 |
$ |
28.56 |
$ |
27.29 |
$ |
26.75 |
$ |
25.60 |
$ |
29.69 |
$ |
25.60 |
||||||||||||||
|
Tangible Assets: |
||||||||||||||||||||||||||||
|
Total assets |
$ |
4,943,771 |
$ |
4,896,989 |
$ |
4,942,446 |
$ |
4,627,770 |
$ |
4,474,119 |
$ |
4,943,771 |
$ |
4,474,119 |
||||||||||||||
|
Adjustments: Goodwill and core deposit |
18,761 |
18,801 |
18,841 |
18,882 |
18,922 |
18,761 |
18,922 |
|||||||||||||||||||||
|
Tangible assets |
$ |
4,925,010 |
$ |
4,878,188 |
$ |
4,923,605 |
$ |
4,608,888 |
$ |
4,455,197 |
$ |
4,925,010 |
$ |
4,455,197 |
||||||||||||||
|
Total Common Equity to Total Assets |
8.70 |
% |
8.45 |
% |
7.98 |
% |
8.31 |
% |
8.24 |
% |
8.70 |
% |
8.24 |
% |
||||||||||||||
|
Tangible Common Equity to Tangible Assets |
8.35 |
% |
8.09 |
% |
7.63 |
% |
7.93 |
% |
7.85 |
% |
8.35 |
% |
7.85 |
% |
||||||||||||||
|
Average Tangible Common Equity: |
||||||||||||||||||||||||||||
|
Average shareholders' equity |
$ |
490,741 |
$ |
472,041 |
$ |
460,169 |
$ |
446,124 |
$ |
433,510 |
$ |
481,443 |
$ |
427,078 |
||||||||||||||
|
Less: Average preferred stock including |
66,160 |
66,160 |
66,121 |
66,223 |
66,225 |
66,160 |
66,225 |
|||||||||||||||||||||
|
Average common equity |
424,581 |
405,881 |
394,048 |
379,901 |
367,285 |
415,283 |
360,853 |
|||||||||||||||||||||
|
Less: Average goodwill and core deposit |
18,784 |
18,826 |
18,865 |
18,906 |
18,946 |
18,805 |
18,967 |
|||||||||||||||||||||
|
Average tangible common equity |
$ |
405,797 |
$ |
387,055 |
$ |
375,183 |
$ |
360,995 |
$ |
348,339 |
$ |
396,478 |
$ |
341,886 |
||||||||||||||
|
Net Income |
$ |
16,747 |
$ |
13,589 |
$ |
13,733 |
$ |
12,775 |
$ |
10,796 |
$ |
30,336 |
$ |
21,163 |
||||||||||||||
|
Less: Dividends declared on preferred stock |
1,185 |
1,171 |
1,196 |
1,198 |
1,184 |
2,356 |
2,355 |
|||||||||||||||||||||
|
Net Income Available to Common Shareholders |
$ |
15,562 |
$ |
12,418 |
$ |
12,537 |
$ |
11,577 |
$ |
9,612 |
$ |
27,980 |
$ |
18,808 |
||||||||||||||
|
Return on Average Common Equity(A) |
14.70 |
% |
12.41 |
% |
12.66 |
% |
12.12 |
% |
10.53 |
% |
13.59 |
% |
10.48 |
% |
||||||||||||||
|
Return on Average Tangible Common Equity(A) |
15.38 |
% |
13.01 |
% |
13.29 |
% |
12.76 |
% |
11.10 |
% |
14.23 |
% |
11.06 |
% |
||||||||||||||
|
(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-second-quarter-financial-results-302512310.html
SOURCE Third Coast Bancshares