Third Coast Bancshares, Inc. Reports 2025 Fourth Quarter and Full Year Financial Results
Record Annual Net Income of $66.3 million
Record Annual Diluted Earnings Per Share of $3.79
Year Over Year Book Value grew 16.8% and Tangible Book Value(1) grew 17.7%
HOUSTON, Jan. 21, 2026 /PRNewswire/ -- Third Coast Bancshares, Inc. (NYSE & NYSE Texas: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank (the "Bank"), today reported its 2025 fourth quarter and full year financial results.
2025 Fourth Quarter Financial Highlights
- Return on average assets of 1.36% annualized for the fourth quarter of 2025 compared to 1.41% annualized for the third quarter of 2025 and 1.13% annualized for the fourth quarter of 2024.
- Net interest margin remained consistent at 4.10% for the fourth quarter of 2025 and the third quarter of 2025, compared to 3.71% for the fourth quarter of 2024.
- Net income for the fourth quarter of 2025 totaled $17.9 million, or $1.21 and $1.02 per basic and diluted share, respectively, compared to $18.1 million, or $1.22 and $1.03 per basic and diluted share, respectively, for the third quarter of 2025 and $13.7 million, or $0.92 and $0.79 per basic and diluted share, respectively, for the fourth quarter of 2024.
- Efficiency ratio of 57.90% for the fourth quarter of 2025 compared to 53.03% for the third quarter of 2025 and 58.80% for the fourth quarter of 2024.
- Gross loans grew to $4.39 billion as of December 31, 2025, from $4.17 billion reported as of September 30, 2025.
- Book value per share and tangible book value per share(1) increased to $33.47 and $32.12, respectively, as of December 31, 2025, compared to $32.25 and $30.91, respectively, as of September 30, 2025 and $28.65 and $27.29, respectively, as of December 31, 2024.
2025 Full Year Financial and Operational Highlights
- Net income totaled $66.3 million, or $4.45 and $3.79 per basic and diluted share, respectively, for the year ended December 31, 2025, compared to $47.7 million, or $3.14 and $2.78 per basic and diluted share, respectively, for the year ended December 31, 2024.
- Total assets increased $398.3 million to $5.34 billion as of December 31, 2025, or 8.1% over the $4.94 billion reported as of December 31, 2024.
- Gross loans grew $428.3 million to $4.39 billion as of December 31, 2025, 10.8% more than the $3.97 billion reported as of December 31, 2024.
- Deposits increased $316.4 million to $4.63 billion as of December 31, 2025, or 7.3% over the $4.31 billion reported as of December 31, 2024.
- Transfer of listing of common stock to the New York Stock Exchange and NYSE Texas.
"We are very pleased with our fourth-quarter and full-year 2025 performance, which delivered exceptional loan growth, materially higher fee income than previously guided, and a stable net interest margin that outperformed expectations," said Bart Caraway, Founder, Chairman, President & Chief Executive Officer of Third Coast. "These strong results reflect record net income of $66.3 million and record annual diluted earnings per share of $3.79. It demonstrates our consistent execution and the transformation of our company into a high-performing institution that is doing exactly what we said we would do."
Operating Results
Net Income and Earnings Per Share
Net income totaled $17.9 million for the fourth quarter of 2025, compared to $18.1 million for the third quarter of 2025 and $13.7 million for the fourth quarter of 2024. Net income available to common shareholders totaled $16.7 million for the fourth quarter of 2025, compared to $16.9 million for the third quarter of 2025 and $12.5 million for the fourth quarter of 2024. The quarter-over-quarter decrease from the third quarter of 2025 was primarily due to merger-related expenses attributing to an increase in legal and professional expenses, and an increase in salaries and employee benefits related to sign on bonuses and severance expenses, partially offset by an increase in net interest income and an increase in non-margin loan fees. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended December 31, 2025, September 30, 2025 and December 31, 2024.
Basic and diluted earnings per share were $1.21 per share and $1.02 per share, respectively, in the fourth quarter of 2025, compared to $1.22 per share and $1.03 per share, respectively, in the third quarter of 2025 and $0.92 per share and $0.79 per share, respectively, in the fourth quarter of 2024.
Net Interest Margin and Net Interest Income
The net interest margin for the fourth quarter of 2025 remained consistent with the third quarter of 2025 at 4.10%, compared to 3.71% for the fourth quarter of 2024. The yield on loans for the fourth quarter of 2025 was 7.52%, compared to 7.79% for the third quarter of 2025 and 7.68% for the fourth quarter of 2024. The cost of interest-bearing deposits for the fourth quarter of 2025 was 3.73%, compared to 3.98% for the third quarter of 2025 and 4.33% for the fourth quarter of 2024.
Net interest income totaled $52.2 million for the fourth quarter of 2025, an increase of 2.7% from $50.8 million for the third quarter of 2025 and an increase of 20.2% from $43.4 million for the fourth quarter of 2024. Interest income totaled $92.1 million for the fourth quarter of 2025, a decrease of 0.4% from $92.5 million for the third quarter of 2025 and an increase of 7.7% from $85.5 million for the fourth quarter of 2024. The quarter-over-quarter increase in net interest income primarily resulted from a decrease in interest expense. Interest expense was $39.9 million for the fourth quarter of 2025, a decrease of $1.8 million, or 4.2%, from $41.7 million for the third quarter of 2025 and a decrease of $2.2 million, or 5.2%, from $42.1 million for the fourth quarter of 2024, primarily resulting from an reduction in rates paid on interest-bearing demand deposits.
Noninterest Income and Noninterest Expense
Noninterest income totaled $4.3 million for the fourth quarter of 2025, compared to $3.6 million for the third quarter of 2025 and $2.9 million for the fourth quarter of 2024. The increase in noninterest income was primarily due to an increase in non-margin loan fees during the fourth quarter of 2025.
Noninterest expense increased to $32.7 million for the fourth quarter of 2025, compared to $28.9 million for the third quarter of 2025 and $27.2 million for the fourth quarter of 2024. The quarter-over-quarter increase in noninterest expense was primarily due to merger-related expenses. During the fourth quarter of 2025, the Company recorded merger-related expenses of $1.0 million in legal and professional expenses. Additionally, the Company recorded $1.5 million in salaries and employee benefits attributable to sign on bonuses and severance expenses during the fourth quarter of 2025. At December 31, 2025, the number of employees was 412, compared to 398 at September 30, 2025.
The efficiency ratio was 57.90% for the fourth quarter of 2025, compared to 53.03% for the third quarter of 2025 and 58.80% for the fourth quarter of 2024.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended December 31, 2025, gross loans increased to $4.39 billion, an increase of $229.6 million, or 5.5%, from $4.17 billion as of September 30, 2025, and an increase of $428.3 million, or 10.8%, from $3.97 billion as of December 31, 2024. Commercial and industrial loans, real estate loans and municipal and other loans accounted for the majority of the loan growth for the fourth quarter of 2025, with commercial and industrial loans increasing $134.6 million, real estate loans increasing $44.8 million and municipal loans increasing $50.0 million from the third quarter of 2025.
Asset Quality
Nonperforming loans at December 31, 2025 were $21.5 million, compared to $21.7 million at September 30, 2025 and $27.9 million at December 31, 2024. As of December 31, 2025, the nonperforming loans to total loans ratio was 0.49%, compared to 0.52% as of September 30, 2025 and 0.70% as of December 31, 2024.
The provision for credit loss recorded for the fourth quarter of 2025 was $2.2 million, and the allowance for credit losses of $43.9 million represented 1.00% of the $4.39 billion in gross loans outstanding as of December 31, 2025. The provision for credit loss recorded for the third quarter of 2025 was $2.8 million, and the allowance for credit losses of $42.6 million represented 1.02% of the $4.17 billion in gross loans outstanding as of September 30, 2025.
The Company recorded net charge-offs of $844,000 and $879,000 for the three months ended December 31, 2025 and December 31, 2024, respectively. On a full year basis, net charge-offs were $3.6 million and $3.4 million in 2025 and 2024, respectively.
Deposits and Composition
Deposits totaled $4.63 billion as of December 31, 2025, an increase of 5.8% from $4.37 billion as of September 30, 2025, and an increase of 7.3% from $4.31 billion as of December 31, 2024. Noninterest-bearing demand deposits increased from $450.0 million as of September 30, 2025, to $495.0 million as of December 31, 2025 and represented 10.7% and 10.3% of total deposits as of December 31, 2025 and September 30, 2025, respectively. As of December 31, 2025, interest-bearing demand deposits increased $235.5 million, or 7.5%, partially offset by a decrease in time deposits of $25.7 million, or 3.3%, and a decrease in savings accounts of $573,000, or 2.6%, respectively, from September 30, 2025.
The average cost of deposits was 3.33% for the fourth quarter of 2025, representing a 23-basis point decrease from the third quarter of 2025 and a 50-basis point decrease from the fourth quarter of 2024. The decreases were primarily 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 fourth quarter and fiscal year results, which will be broadcast live over the Internet, on Thursday, January 22, 2026, 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 January 29, 2026, and may be accessed by dialing 201-612-7415 and using passcode 13752290#. 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; changes in key management personnel; the occurrence of any event, change or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement providing for the acquisition of Keystone Bancshares, Inc. ("Keystone") by Third Coast; the outcome of any legal proceedings that may be instituted against Third Coast or Keystone; the possibility that the transaction does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction); the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Third Coast and Keystone operate; disruption to the parties' businesses as a result of the announcement and pendency of the transaction; the risk that the integration of each party's operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party's businesses into the other's businesses; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Third Coast's or Keystone's customers, suppliers, employees or other business partners, including those resulting from the announcement or completion of the transaction; the dilution caused by Third Coast's issuance of additional shares of its common stock in connection with the transaction; a material adverse change in the financial condition of Third Coast or Keystone; the diversion of management's attention and time from ongoing business operations and opportunities on merger-related matters; and other factors that may affect future results of Third Coast and Keystone including changes in asset quality and credit risk, the inability to sustain revenue and earnings growth, changes in interest rates and capital markets, inflation, customer borrowing, repayment, investment and deposit practices, the impact, extent and timing of technological changes, capital management activities and other actions of the Board of Governors of the Federal Reserve System and legislative and regulatory actions and reforms. 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.
____________________________
(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.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
2025
2024
(Dollars in thousands)
December 31
September 30
June 30
March 31
December 31
ASSETS
Cash and cash equivalents:
Cash and due from banks
$
175,202
$
116,383
$
113,141
$
218,990
$
371,157
Federal funds sold
6,027
6,629
5,815
110,379
50,045
Total cash and cash equivalents
181,229
123,012
118,956
329,369
421,202
Interest bearing time deposits in other banks
267
265
262
359
356
Investment securities available-for-sale
383,192
376,719
355,753
397,442
384,025
Investment securities held to maturity
192,008
206,037
206,065
-
-
Loans held for investment
4,394,751
4,165,116
4,079,736
3,988,039
3,966,425
Less: allowance for credit losses
(43,949)
(42,563)
(40,035)
(40,456)
(40,304)
Loans held for investment, net
4,350,802
4,122,553
4,039,701
3,947,583
3,926,121
Accrued interest receivable
29,236
29,537
27,736
26,752
25,820
Premises and equipment, net
24,789
24,718
24,908
25,669
26,230
Other real estate owned
8,388
8,388
8,580
8,752
862
Bank-owned life insurance
76,357
75,547
74,761
74,018
68,341
Non-marketable securities, at cost
16,424
26,157
18,761
15,994
15,980
Deferred tax asset, net
4,440
6,989
8,646
9,176
11,445
Derivative assets
2,544
2,803
3,059
3,052
6,479
Right-of-use assets - operating leases
17,066
17,677
18,769
19,370
19,863
Goodwill and other intangible assets
18,680
18,720
18,761
18,801
18,841
Other assets
35,337
22,686
19,053
20,652
16,881
Total assets
$
5,340,759
$
5,061,808
$
4,943,771
$
4,896,989
$
4,942,446
LIABILITIES
Deposits:
Noninterest bearing
$
495,000
$
450,013
$
440,964
$
448,542
$
602,082
Interest bearing
4,131,888
3,922,728
3,839,905
3,800,001
3,708,416
Total deposits
4,626,888
4,372,741
4,280,869
4,248,543
4,310,498
Accrued interest payable
5,957
7,153
6,691
7,044
6,281
Derivative liabilities
3,142
3,521
3,779
3,527
8,660
Lease liability - operating leases
18,130
18,735
19,835
20,425
20,900
Other liabilities
36,775
32,040
24,745
25,979
23,754
Line of credit - Senior Debt
37,875
32,875
30,875
30,875
30,875
Note payable - Subordinated Debentures, net
80,965
80,913
80,862
80,810
80,759
Total liabilities
4,809,732
4,547,978
4,447,656
4,417,203
4,481,727
SHAREHOLDERS' EQUITY
Series A Convertible Non-Cumulative Preferred Stock
69
69
69
69
69
Series B Convertible Perpetual Preferred Stock
-
-
-
-
-
Common stock
13,970
13,958
13,930
13,904
13,848
Common stock - non-voting
-
-
-
-
-
Additional paid-in capital
323,929
323,491
322,972
322,456
321,696
Retained earnings
183,238
166,537
149,677
134,115
121,697
Accumulated other comprehensive income
10,920
10,874
10,566
10,341
4,508
Treasury stock, at cost
(1,099)
(1,099)
(1,099)
(1,099)
(1,099)
Total shareholders' equity
531,027
513,830
496,115
479,786
460,719
Total liabilities and shareholders' equity
$
5,340,759
$
5,061,808
$
4,943,771
$
4,896,989
$
4,942,446
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
Years Ended
2025
2024
2025
2024
(Dollars in thousands, except per share data)
December 31
September 30
June 30
March 31
December 31
December 31
December 31
INTEREST INCOME:
Loans, including fees
$
81,368
$
82,054
$
79,706
$
73,087
$
76,017
$
316,215
$
295,259
Investment securities available-for-sale
6,464
6,289
5,505
5,693
4,939
23,951
17,055
Investment securities held-to-maturity
2,681
2,882
1,607
-
-
7,170
-
Federal funds sold and other
1,586
1,278
1,844
1,986
4,580
6,694
16,042
Total interest income
92,099
92,503
88,662
80,766
85,536
354,030
328,356
INTEREST EXPENSE:
Deposit accounts
37,530
39,030
37,535
36,226
40,233
150,321
159,748
FHLB advances and other borrowings
2,372
2,624
1,753
1,743
1,865
8,492
7,850
Total interest expense
39,902
41,654
39,288
37,969
42,098
158,813
167,598
Net interest income
52,197
50,849
49,374
42,797
43,438
195,217
160,758
Provision for credit losses
2,245
2,763
2,130
450
1,156
7,588
5,701
Net interest income after credit loss expense
49,952
48,086
47,244
42,347
42,282
187,629
155,057
NONINTEREST INCOME:
Service charges and fees
3,518
2,839
2,125
2,277
1,772
10,759
6,935
Earnings on bank-owned life insurance
811
786
743
677
662
3,017
2,480
(Loss) gain on sale of investment securities available-for-sale
(272)
-
(110)
(228)
196
(610)
(4)
Gain on sale of SBA loans
-
-
44
30
-
74
30
Other
204
10
(152)
351
243
413
1,180
Total noninterest income
4,261
3,635
2,650
3,107
2,873
13,653
10,621
NONINTEREST EXPENSE:
Salaries and employee benefits
21,109
19,560
18,179
18,341
17,018
77,189
65,116
Occupancy and equipment expense
2,845
2,861
2,783
2,834
2,856
11,323
11,093
Legal and professional
2,850
1,254
1,927
1,431
1,587
7,462
5,630
Data processing and network expense
1,087
1,203
1,162
1,120
1,182
4,572
5,254
Regulatory assessments
1,172
1,152
1,203
1,306
1,196
4,833
4,430
Advertising and marketing
733
499
503
409
526
2,144
1,707
Software purchases and maintenance
1,067
1,094
1,149
1,259
1,202
4,569
4,884
Loan operations and other real estate owned expense
397
29
439
269
189
1,134
904
Telephone and communications
126
134
115
175
144
550
585
Other
1,305
1,106
1,386
964
1,330
4,761
4,724
Total noninterest expense
32,691
28,892
28,846
28,108
27,230
118,537
104,327
NET INCOME BEFORE INCOME TAX
EXPENSE
21,522
22,829
21,048
17,346
17,925
82,745
61,351
Income tax expense
3,624
4,772
4,301
3,757
4,192
16,454
13,680
NET INCOME
17,898
18,057
16,747
13,589
13,733
66,291
47,671
Preferred stock dividends declared
1,197
1,197
1,185
1,171
1,196
4,750
4,749
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS
$
16,701
$
16,860
$
15,562
$
12,418
$
12,537
$
61,541
$
42,922
EARNINGS PER COMMON SHARE:
Basic earnings per share
$
1.21
$
1.22
$
1.12
$
0.90
$
0.92
$
4.45
$
3.14
Diluted earnings per share
$
1.02
$
1.03
$
0.96
$
0.78
$
0.79
$
3.79
$
2.78
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
Years Ended
2025
2024
2025
2024
(Dollars in thousands, except share and per share data)
December 31
September 30
June 30
March 31
December 31
December 31
December 31
Earnings per share, basic
$
1.21
$
1.22
$
1.12
$
0.90
$
0.92
$
4.45
$
3.14
Earnings per share, diluted
$
1.02
$
1.03
$
0.96
$
0.78
$
0.79
$
3.79
$
2.78
Dividends on common stock
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Dividends on Series A Convertible
Non-Cumulative Preferred Stock
$
17.25
$
17.25
$
17.06
$
16.88
$
17.25
$
68.44
$
68.44
Return on average assets (A)
1.36
%
1.41
%
1.38
%
1.17
%
1.13
%
1.33
%
1.05
%
Return on average common equity (A)
14.42
%
15.14
%
14.70
%
12.41
%
12.66
%
14.21
%
11.48
%
Return on average tangible common
equity (A) (B)
15.03
%
15.81
%
15.38
%
13.01
%
13.29
%
14.85
%
12.09
%
Net interest margin (A) (C)
4.10
%
4.10
%
4.22
%
3.80
%
3.71
%
4.06
%
3.67
%
Efficiency ratio (D)
57.90
%
53.03
%
55.45
%
61.23
%
58.80
%
56.75
%
60.88
%
Capital Ratios
Third Coast Bancshares, Inc. (consolidated):
Total common equity to total assets
8.70
%
8.84
%
8.70
%
8.45
%
7.98
%
8.70
%
7.98
%
Tangible common equity to tangible
assets (B)
8.38
%
8.51
%
8.35
%
8.09
%
7.63
%
8.38
%
7.63
%
Estimated Common equity tier 1 (to risk
weighted assets)
8.65
%
8.85
%
8.75
%
8.70
%
8.41
%
8.65
%
8.41
%
Estimated Tier 1 capital (to risk weighted
assets)
9.97
%
10.25
%
10.20
%
10.19
%
9.90
%
9.97
%
9.90
%
Estimated Total capital (to risk weighted
assets)
12.48
%
12.90
%
12.87
%
12.97
%
12.68
%
12.48
%
12.68
%
Estimated Tier 1 capital (to average
assets)
9.65
%
9.55
%
9.65
%
9.58
%
9.12
%
9.65
%
9.12
%
Third Coast Bank:
Estimated Common equity tier 1 (to risk
weighted assets)
12.23
%
12.59
%
12.56
%
12.69
%
12.35
%
12.23
%
12.35
%
Estimated Tier 1 capital (to risk weighted
assets)
12.23
%
12.59
%
12.56
%
12.69
%
12.35
%
12.23
%
12.35
%
Estimated Total capital (to risk weighted
assets)
13.14
%
13.53
%
13.46
%
13.63
%
13.29
%
13.14
%
13.29
%
Estimated Tier 1 capital (to average
assets)
11.84
%
11.75
%
11.89
%
11.93
%
11.37
%
11.84
%
11.37
%
Other Data
Weighted average shares:
Basic
13,889,497
13,860,149
13,836,830
13,776,998
13,698,010
13,841,230
13,656,859
Diluted
17,552,204
17,524,288
17,391,128
17,440,826
17,394,884
17,477,207
17,133,845
Period end shares outstanding
13,891,055
13,879,099
13,851,581
13,825,286
13,769,780
13,891,055
13,769,780
Book value per share
$
33.47
$
32.25
$
31.04
$
29.92
$
28.65
$
33.47
$
28.65
Tangible book value per share (B)
$
32.12
$
30.91
$
29.69
$
28.56
$
27.29
$
32.12
$
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
December 31, 2025
September 30, 2025
December 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
$
4,294,376
$
81,368
7.52 %
$
4,179,027
$
82,054
7.79 %
$
3,937,405
$
76,017
7.68 %
Investment securities available-for-sale
399,694
6,464
6.42 %
410,073
6,289
6.08 %
342,474
4,939
5.74 %
Investment securities held-to-maturity
196,309
2,681
5.42 %
206,055
2,882
5.55 %
—
—
—
Federal funds sold and other interest-earning
assets
164,928
1,586
3.82 %
123,680
1,278
4.10 %
379,836
4,580
4.80 %
Total interest-earning assets
5,055,307
92,099
7.23 %
4,918,835
92,503
7.46 %
4,659,715
85,536
7.30 %
Less: allowance for loan losses
(42,984)
(40,427)
(39,855)
Total interest-earning assets, net of
allowance
5,012,323
4,878,408
4,619,860
Noninterest-earning assets
209,215
213,210
195,143
Total assets
$
5,221,538
$
5,091,618
$
4,815,003
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits
$
3,989,201
$
37,530
3.73 %
$
3,892,726
$
39,030
3.98 %
$
3,692,533
$
40,233
4.33 %
Note payable and line of credit
118,807
1,801
6.01 %
113,560
1,754
6.13 %
109,294
1,708
6.22 %
FHLB advances
56,483
571
4.01 %
73,476
870
4.70 %
11,900
157
5.25 %
Total interest-bearing liabilities
4,164,491
39,902
3.80 %
4,079,762
41,654
4.05 %
3,813,727
42,098
4.39 %
Noninterest-bearing deposits
477,198
453,980
484,738
Other liabilities
54,090
49,842
56,369
Total liabilities
4,695,779
4,583,584
4,354,834
Shareholders' equity
525,759
508,034
460,169
Total liabilities and shareholders'
equity
$
5,221,538
$
5,091,618
$
4,815,003
Net interest income
$
52,197
$
50,849
$
43,438
Net interest spread (1)
3.43 %
3.41 %
2.91 %
Net interest margin (2)
4.10 %
4.10 %
3.71 %
___________
(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)
Years Ended
December 31, 2025
December 31, 2024
(Dollars in thousands)
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate
Assets
Interest-earnings assets:
Loans, gross
$
4,119,536
$
316,215
7.68 %
$
3,786,776
$
295,259
7.80 %
Investment securities available-for-sale
397,618
23,951
6.02 %
286,039
17,055
5.96 %
Investment securities held-to-maturity
130,689
7,170
5.49 %
—
—
—
Federal funds sold and other interest-earning assets
161,198
6,694
4.15 %
312,590
16,042
5.13 %
Total interest-earning assets
4,809,041
354,030
7.36 %
4,385,405
328,356
7.49 %
Less: allowance for loan losses
(41,164)
(38,500)
Total interest-earning assets, net of allowance
4,767,877
4,346,905
Noninterest-earning assets
207,824
194,775
Total assets
$
4,975,701
$
4,541,680
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits
$
3,826,293
$
150,321
3.93 %
$
3,459,151
$
159,748
4.62 %
Note payable and line of credit
113,953
6,987
6.13 %
116,222
7,617
6.55 %
FHLB advances and other
34,113
1,505
4.41 %
4,438
233
5.25 %
Total interest-bearing liabilities
3,974,359
158,813
4.00 %
3,579,811
167,598
4.68 %
Noninterest-bearing deposits
446,692
460,537
Other liabilities
55,335
61,148
Total liabilities
4,476,386
4,101,496
Shareholders' equity
499,315
440,184
Total liabilities and shareholders' equity
$
4,975,701
$
4,541,680
Net interest income
$
195,217
$
160,758
Net interest spread (1)
3.36 %
2.81 %
Net interest margin (2)
4.06 %
3.67 %
___________
(1) Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average interest-earning assets.
(3) Interest earned/paid includes accretion of deferred loan fees, premiums and discounts.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
2025
2024
(Dollars in thousands)
December 31
September 30
June 30
March 31
December 31
Period-end Loan Portfolio:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied
$
434,715
$
408,996
$
423,959
$
420,902
$
448,134
Non-farm non-residential non-owner occupied
710,401
687,924
666,840
633,227
652,119
Residential
333,419
334,583
323,898
335,285
336,736
Construction, development & other
823,353
826,566
784,364
846,166
871,373
Farmland
26,485
25,549
28,013
30,783
30,915
Commercial & industrial
1,906,616
1,772,045
1,724,583
1,605,243
1,497,408
Consumer
1,576
1,291
1,206
1,443
1,859
Municipal and other
158,186
108,162
126,873
114,990
127,881
Total loans
$
4,394,751
$
4,165,116
$
4,079,736
$
3,988,039
$
3,966,425
Asset Quality:
Nonaccrual loans
$
10,120
$
10,723
$
13,358
$
17,066
$
26,773
Loans > 90 days and still accruing
11,360
11,016
6,755
1,503
1,173
Total nonperforming loans
21,480
21,739
20,113
18,569
27,946
Other real estate owned
8,388
8,388
8,580
8,752
862
Total nonperforming assets
$
29,868
$
30,127
$
28,693
$
27,321
$
28,808
QTD Net charge-offs (recoveries)
$
844
$
(17)
$
2,376
$
398
$
879
Nonaccrual loans:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied
$
1,235
$
1,237
$
2,191
$
3,100
$
10,433
Non-farm non-residential non-owner occupied
99
111
111
-
-
Residential
387
214
637
2,616
2,226
Construction, development & other
-
6
344
358
400
Commercial & industrial
8,399
9,155
10,075
10,992
13,714
Total nonaccrual loans
$
10,120
$
10,723
$
13,358
$
17,066
$
26,773
Asset Quality Ratios:
Nonperforming assets to total assets
0.56
%
0.60
%
0.58
%
0.56
%
0.58
%
Nonperforming loans to total loans
0.49
%
0.52
%
0.49
%
0.47
%
0.70
%
Allowance for credit losses to total loans
1.00
%
1.02
%
0.98
%
1.01
%
1.02
%
QTD Net charge-offs (recoveries) to average loans
(annualized)
0.08
%
(0.00)
%
0.24
%
0.04
%
0.09
%
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
Years Ended
2025
2024
2025
2024
(Dollars in thousands, except share and per share data)
December 31
September 30
June 30
March 31
December 31
December 31
December 31
Tangible Common Equity:
Total shareholders' equity
$
531,027
$
513,830
$
496,115
$
479,786
$
460,719
$
531,027
$
460,719
Less: Preferred stock including additional
paid in capital
66,160
66,160
66,160
66,160
66,160
66,160
66,160
Total common equity
464,867
447,670
429,955
413,626
394,559
464,867
394,559
Less: Goodwill and core deposit intangibles,
net
18,680
18,720
18,761
18,801
18,841
18,680
18,841
Tangible common equity
$
446,187
$
428,950
$
411,194
$
394,825
$
375,718
$
446,187
$
375,718
Common shares outstanding at end of period
13,891,055
13,879,099
13,851,581
13,825,286
13,769,780
13,891,055
13,769,780
Book Value Per Share
$
33.47
$
32.25
$
31.04
$
29.92
$
28.65
$
33.47
$
28.65
Tangible Book Value Per Share
$
32.12
$
30.91
$
29.69
$
28.56
$
27.29
$
32.12
$
27.29
Tangible Assets:
Total assets
$
5,340,759
$
5,061,808
$
4,943,771
$
4,896,989
$
4,942,446
$
5,340,759
$
4,942,446
Adjustments: Goodwill and core deposit
intangibles, net
18,680
18,720
18,761
18,801
18,841
18,680
18,841
Tangible assets
$
5,322,079
$
5,043,088
$
4,925,010
$
4,878,188
$
4,923,605
$
5,322,079
$
4,923,605
Total Common Equity to Total Assets
8.70
%
8.84
%
8.70
%
8.45
%
7.98
%
8.70
%
7.98
%
Tangible Common Equity to Tangible Assets
8.38
%
8.51
%
8.35
%
8.09
%
7.63
%
8.38
%
7.63
%
Average Tangible Common Equity:
Average shareholders' equity
$
525,759
$
508,034
$
490,741
$
472,041
$
460,169
$
499,315
$
440,184
Less: Average preferred stock including
additional paid in capital
66,160
66,160
66,160
66,160
66,121
66,160
66,198
Average common equity
459,599
441,874
424,581
405,881
394,048
433,155
373,986
Less: Average goodwill and core deposit
intangibles, net
18,705
18,746
18,784
18,826
18,865
18,765
18,926
Average tangible common equity
$
440,894
$
423,128
$
405,797
$
387,055
$
375,183
$
414,390
$
355,060
Net Income
$
17,898
$
18,057
$
16,747
$
13,589
$
13,733
$
66,291
$
47,671
Less: Dividends declared on preferred stock
1,197
1,197
1,185
1,171
1,196
4,750
4,749
Net Income Available to Common Shareholders
$
16,701
$
16,860
$
15,562
$
12,418
$
12,537
$
61,541
$
42,922
Return on Average Common Equity(A)
14.42
%
15.14
%
14.70
%
12.41
%
12.66
%
14.21
%
11.48
%
Return on Average Tangible Common Equity(A)
15.03
%
15.81
%
15.38
%
13.01
%
13.29
%
14.85
%
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-fourth-quarter-and-full-year-financial-results-302667013.html
SOURCE Third Coast Bancshares
Record Annual Net Income of $66.3 million
Record Annual Diluted Earnings Per Share of $3.79
Year Over Year Book Value grew 16.8% and Tangible Book Value(1) grew 17.7%
HOUSTON, Jan. 21, 2026 /PRNewswire/ -- Third Coast Bancshares, Inc. (NYSE & NYSE Texas: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank (the "Bank"), today reported its 2025 fourth quarter and full year financial results.
2025 Fourth Quarter Financial Highlights
- Return on average assets of 1.36% annualized for the fourth quarter of 2025 compared to 1.41% annualized for the third quarter of 2025 and 1.13% annualized for the fourth quarter of 2024.
- Net interest margin remained consistent at 4.10% for the fourth quarter of 2025 and the third quarter of 2025, compared to 3.71% for the fourth quarter of 2024.
- Net income for the fourth quarter of 2025 totaled $17.9 million, or $1.21 and $1.02 per basic and diluted share, respectively, compared to $18.1 million, or $1.22 and $1.03 per basic and diluted share, respectively, for the third quarter of 2025 and $13.7 million, or $0.92 and $0.79 per basic and diluted share, respectively, for the fourth quarter of 2024.
- Efficiency ratio of 57.90% for the fourth quarter of 2025 compared to 53.03% for the third quarter of 2025 and 58.80% for the fourth quarter of 2024.
- Gross loans grew to $4.39 billion as of December 31, 2025, from $4.17 billion reported as of September 30, 2025.
- Book value per share and tangible book value per share(1) increased to $33.47 and $32.12, respectively, as of December 31, 2025, compared to $32.25 and $30.91, respectively, as of September 30, 2025 and $28.65 and $27.29, respectively, as of December 31, 2024.
2025 Full Year Financial and Operational Highlights
- Net income totaled $66.3 million, or $4.45 and $3.79 per basic and diluted share, respectively, for the year ended December 31, 2025, compared to $47.7 million, or $3.14 and $2.78 per basic and diluted share, respectively, for the year ended December 31, 2024.
- Total assets increased $398.3 million to $5.34 billion as of December 31, 2025, or 8.1% over the $4.94 billion reported as of December 31, 2024.
- Gross loans grew $428.3 million to $4.39 billion as of December 31, 2025, 10.8% more than the $3.97 billion reported as of December 31, 2024.
- Deposits increased $316.4 million to $4.63 billion as of December 31, 2025, or 7.3% over the $4.31 billion reported as of December 31, 2024.
- Transfer of listing of common stock to the New York Stock Exchange and NYSE Texas.
"We are very pleased with our fourth-quarter and full-year 2025 performance, which delivered exceptional loan growth, materially higher fee income than previously guided, and a stable net interest margin that outperformed expectations," said Bart Caraway, Founder, Chairman, President & Chief Executive Officer of Third Coast. "These strong results reflect record net income of $66.3 million and record annual diluted earnings per share of $3.79. It demonstrates our consistent execution and the transformation of our company into a high-performing institution that is doing exactly what we said we would do."
Operating Results
Net Income and Earnings Per Share
Net income totaled $17.9 million for the fourth quarter of 2025, compared to $18.1 million for the third quarter of 2025 and $13.7 million for the fourth quarter of 2024. Net income available to common shareholders totaled $16.7 million for the fourth quarter of 2025, compared to $16.9 million for the third quarter of 2025 and $12.5 million for the fourth quarter of 2024. The quarter-over-quarter decrease from the third quarter of 2025 was primarily due to merger-related expenses attributing to an increase in legal and professional expenses, and an increase in salaries and employee benefits related to sign on bonuses and severance expenses, partially offset by an increase in net interest income and an increase in non-margin loan fees. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended December 31, 2025, September 30, 2025 and December 31, 2024.
Basic and diluted earnings per share were $1.21 per share and $1.02 per share, respectively, in the fourth quarter of 2025, compared to $1.22 per share and $1.03 per share, respectively, in the third quarter of 2025 and $0.92 per share and $0.79 per share, respectively, in the fourth quarter of 2024.
Net Interest Margin and Net Interest Income
The net interest margin for the fourth quarter of 2025 remained consistent with the third quarter of 2025 at 4.10%, compared to 3.71% for the fourth quarter of 2024. The yield on loans for the fourth quarter of 2025 was 7.52%, compared to 7.79% for the third quarter of 2025 and 7.68% for the fourth quarter of 2024. The cost of interest-bearing deposits for the fourth quarter of 2025 was 3.73%, compared to 3.98% for the third quarter of 2025 and 4.33% for the fourth quarter of 2024.
Net interest income totaled $52.2 million for the fourth quarter of 2025, an increase of 2.7% from $50.8 million for the third quarter of 2025 and an increase of 20.2% from $43.4 million for the fourth quarter of 2024. Interest income totaled $92.1 million for the fourth quarter of 2025, a decrease of 0.4% from $92.5 million for the third quarter of 2025 and an increase of 7.7% from $85.5 million for the fourth quarter of 2024. The quarter-over-quarter increase in net interest income primarily resulted from a decrease in interest expense. Interest expense was $39.9 million for the fourth quarter of 2025, a decrease of $1.8 million, or 4.2%, from $41.7 million for the third quarter of 2025 and a decrease of $2.2 million, or 5.2%, from $42.1 million for the fourth quarter of 2024, primarily resulting from an reduction in rates paid on interest-bearing demand deposits.
Noninterest Income and Noninterest Expense
Noninterest income totaled $4.3 million for the fourth quarter of 2025, compared to $3.6 million for the third quarter of 2025 and $2.9 million for the fourth quarter of 2024. The increase in noninterest income was primarily due to an increase in non-margin loan fees during the fourth quarter of 2025.
Noninterest expense increased to $32.7 million for the fourth quarter of 2025, compared to $28.9 million for the third quarter of 2025 and $27.2 million for the fourth quarter of 2024. The quarter-over-quarter increase in noninterest expense was primarily due to merger-related expenses. During the fourth quarter of 2025, the Company recorded merger-related expenses of $1.0 million in legal and professional expenses. Additionally, the Company recorded $1.5 million in salaries and employee benefits attributable to sign on bonuses and severance expenses during the fourth quarter of 2025. At December 31, 2025, the number of employees was 412, compared to 398 at September 30, 2025.
The efficiency ratio was 57.90% for the fourth quarter of 2025, compared to 53.03% for the third quarter of 2025 and 58.80% for the fourth quarter of 2024.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended December 31, 2025, gross loans increased to $4.39 billion, an increase of $229.6 million, or 5.5%, from $4.17 billion as of September 30, 2025, and an increase of $428.3 million, or 10.8%, from $3.97 billion as of December 31, 2024. Commercial and industrial loans, real estate loans and municipal and other loans accounted for the majority of the loan growth for the fourth quarter of 2025, with commercial and industrial loans increasing $134.6 million, real estate loans increasing $44.8 million and municipal loans increasing $50.0 million from the third quarter of 2025.
Asset Quality
Nonperforming loans at December 31, 2025 were $21.5 million, compared to $21.7 million at September 30, 2025 and $27.9 million at December 31, 2024. As of December 31, 2025, the nonperforming loans to total loans ratio was 0.49%, compared to 0.52% as of September 30, 2025 and 0.70% as of December 31, 2024.
The provision for credit loss recorded for the fourth quarter of 2025 was $2.2 million, and the allowance for credit losses of $43.9 million represented 1.00% of the $4.39 billion in gross loans outstanding as of December 31, 2025. The provision for credit loss recorded for the third quarter of 2025 was $2.8 million, and the allowance for credit losses of $42.6 million represented 1.02% of the $4.17 billion in gross loans outstanding as of September 30, 2025.
The Company recorded net charge-offs of $844,000 and $879,000 for the three months ended December 31, 2025 and December 31, 2024, respectively. On a full year basis, net charge-offs were $3.6 million and $3.4 million in 2025 and 2024, respectively.
Deposits and Composition
Deposits totaled $4.63 billion as of December 31, 2025, an increase of 5.8% from $4.37 billion as of September 30, 2025, and an increase of 7.3% from $4.31 billion as of December 31, 2024. Noninterest-bearing demand deposits increased from $450.0 million as of September 30, 2025, to $495.0 million as of December 31, 2025 and represented 10.7% and 10.3% of total deposits as of December 31, 2025 and September 30, 2025, respectively. As of December 31, 2025, interest-bearing demand deposits increased $235.5 million, or 7.5%, partially offset by a decrease in time deposits of $25.7 million, or 3.3%, and a decrease in savings accounts of $573,000, or 2.6%, respectively, from September 30, 2025.
The average cost of deposits was 3.33% for the fourth quarter of 2025, representing a 23-basis point decrease from the third quarter of 2025 and a 50-basis point decrease from the fourth quarter of 2024. The decreases were primarily 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 fourth quarter and fiscal year results, which will be broadcast live over the Internet, on Thursday, January 22, 2026, 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 January 29, 2026, and may be accessed by dialing 201-612-7415 and using passcode 13752290#. 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; changes in key management personnel; the occurrence of any event, change or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement providing for the acquisition of Keystone Bancshares, Inc. ("Keystone") by Third Coast; the outcome of any legal proceedings that may be instituted against Third Coast or Keystone; the possibility that the transaction does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction); the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Third Coast and Keystone operate; disruption to the parties' businesses as a result of the announcement and pendency of the transaction; the risk that the integration of each party's operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party's businesses into the other's businesses; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Third Coast's or Keystone's customers, suppliers, employees or other business partners, including those resulting from the announcement or completion of the transaction; the dilution caused by Third Coast's issuance of additional shares of its common stock in connection with the transaction; a material adverse change in the financial condition of Third Coast or Keystone; the diversion of management's attention and time from ongoing business operations and opportunities on merger-related matters; and other factors that may affect future results of Third Coast and Keystone including changes in asset quality and credit risk, the inability to sustain revenue and earnings growth, changes in interest rates and capital markets, inflation, customer borrowing, repayment, investment and deposit practices, the impact, extent and timing of technological changes, capital management activities and other actions of the Board of Governors of the Federal Reserve System and legislative and regulatory actions and reforms. 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.
____________________________ |
(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. |
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) | ||||||||||||||||||||
2025 |
2024 |
|||||||||||||||||||
(Dollars in thousands) |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
|||||||||||||||
ASSETS |
||||||||||||||||||||
Cash and cash equivalents: |
||||||||||||||||||||
Cash and due from banks |
$ |
175,202 |
$ |
116,383 |
$ |
113,141 |
$ |
218,990 |
$ |
371,157 |
||||||||||
Federal funds sold |
6,027 |
6,629 |
5,815 |
110,379 |
50,045 |
|||||||||||||||
Total cash and cash equivalents |
181,229 |
123,012 |
118,956 |
329,369 |
421,202 |
|||||||||||||||
Interest bearing time deposits in other banks |
267 |
265 |
262 |
359 |
356 |
|||||||||||||||
Investment securities available-for-sale |
383,192 |
376,719 |
355,753 |
397,442 |
384,025 |
|||||||||||||||
Investment securities held to maturity |
192,008 |
206,037 |
206,065 |
- |
- |
|||||||||||||||
Loans held for investment |
4,394,751 |
4,165,116 |
4,079,736 |
3,988,039 |
3,966,425 |
|||||||||||||||
Less: allowance for credit losses |
(43,949) |
(42,563) |
(40,035) |
(40,456) |
(40,304) |
|||||||||||||||
Loans held for investment, net |
4,350,802 |
4,122,553 |
4,039,701 |
3,947,583 |
3,926,121 |
|||||||||||||||
Accrued interest receivable |
29,236 |
29,537 |
27,736 |
26,752 |
25,820 |
|||||||||||||||
Premises and equipment, net |
24,789 |
24,718 |
24,908 |
25,669 |
26,230 |
|||||||||||||||
Other real estate owned |
8,388 |
8,388 |
8,580 |
8,752 |
862 |
|||||||||||||||
Bank-owned life insurance |
76,357 |
75,547 |
74,761 |
74,018 |
68,341 |
|||||||||||||||
Non-marketable securities, at cost |
16,424 |
26,157 |
18,761 |
15,994 |
15,980 |
|||||||||||||||
Deferred tax asset, net |
4,440 |
6,989 |
8,646 |
9,176 |
11,445 |
|||||||||||||||
Derivative assets |
2,544 |
2,803 |
3,059 |
3,052 |
6,479 |
|||||||||||||||
Right-of-use assets - operating leases |
17,066 |
17,677 |
18,769 |
19,370 |
19,863 |
|||||||||||||||
Goodwill and other intangible assets |
18,680 |
18,720 |
18,761 |
18,801 |
18,841 |
|||||||||||||||
Other assets |
35,337 |
22,686 |
19,053 |
20,652 |
16,881 |
|||||||||||||||
Total assets |
$ |
5,340,759 |
$ |
5,061,808 |
$ |
4,943,771 |
$ |
4,896,989 |
$ |
4,942,446 |
||||||||||
LIABILITIES |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Noninterest bearing |
$ |
495,000 |
$ |
450,013 |
$ |
440,964 |
$ |
448,542 |
$ |
602,082 |
||||||||||
Interest bearing |
4,131,888 |
3,922,728 |
3,839,905 |
3,800,001 |
3,708,416 |
|||||||||||||||
Total deposits |
4,626,888 |
4,372,741 |
4,280,869 |
4,248,543 |
4,310,498 |
|||||||||||||||
Accrued interest payable |
5,957 |
7,153 |
6,691 |
7,044 |
6,281 |
|||||||||||||||
Derivative liabilities |
3,142 |
3,521 |
3,779 |
3,527 |
8,660 |
|||||||||||||||
Lease liability - operating leases |
18,130 |
18,735 |
19,835 |
20,425 |
20,900 |
|||||||||||||||
Other liabilities |
36,775 |
32,040 |
24,745 |
25,979 |
23,754 |
|||||||||||||||
Line of credit - Senior Debt |
37,875 |
32,875 |
30,875 |
30,875 |
30,875 |
|||||||||||||||
Note payable - Subordinated Debentures, net |
80,965 |
80,913 |
80,862 |
80,810 |
80,759 |
|||||||||||||||
Total liabilities |
4,809,732 |
4,547,978 |
4,447,656 |
4,417,203 |
4,481,727 |
|||||||||||||||
SHAREHOLDERS' EQUITY |
||||||||||||||||||||
Series A Convertible Non-Cumulative Preferred Stock |
69 |
69 |
69 |
69 |
69 |
|||||||||||||||
Series B Convertible Perpetual Preferred Stock |
- |
- |
- |
- |
- |
|||||||||||||||
Common stock |
13,970 |
13,958 |
13,930 |
13,904 |
13,848 |
|||||||||||||||
Common stock - non-voting |
- |
- |
- |
- |
- |
|||||||||||||||
Additional paid-in capital |
323,929 |
323,491 |
322,972 |
322,456 |
321,696 |
|||||||||||||||
Retained earnings |
183,238 |
166,537 |
149,677 |
134,115 |
121,697 |
|||||||||||||||
Accumulated other comprehensive income |
10,920 |
10,874 |
10,566 |
10,341 |
4,508 |
|||||||||||||||
Treasury stock, at cost |
(1,099) |
(1,099) |
(1,099) |
(1,099) |
(1,099) |
|||||||||||||||
Total shareholders' equity |
531,027 |
513,830 |
496,115 |
479,786 |
460,719 |
|||||||||||||||
Total liabilities and shareholders' equity |
$ |
5,340,759 |
$ |
5,061,808 |
$ |
4,943,771 |
$ |
4,896,989 |
$ |
4,942,446 |
||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) | |||||||||||||||||||||||||||||
Three Months Ended |
Years Ended |
||||||||||||||||||||||||||||
2025 |
2024 |
2025 |
2024 |
||||||||||||||||||||||||||
(Dollars in thousands, except per share data) |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
December 31 |
December 31 |
||||||||||||||||||||||
INTEREST INCOME: |
|||||||||||||||||||||||||||||
Loans, including fees |
$ |
81,368 |
$ |
82,054 |
$ |
79,706 |
$ |
73,087 |
$ |
76,017 |
$ |
316,215 |
$ |
295,259 |
|||||||||||||||
Investment securities available-for-sale |
6,464 |
6,289 |
5,505 |
5,693 |
4,939 |
23,951 |
17,055 |
||||||||||||||||||||||
Investment securities held-to-maturity |
2,681 |
2,882 |
1,607 |
- |
- |
7,170 |
- |
||||||||||||||||||||||
Federal funds sold and other |
1,586 |
1,278 |
1,844 |
1,986 |
4,580 |
6,694 |
16,042 |
||||||||||||||||||||||
Total interest income |
92,099 |
92,503 |
88,662 |
80,766 |
85,536 |
354,030 |
328,356 |
||||||||||||||||||||||
INTEREST EXPENSE: |
|||||||||||||||||||||||||||||
Deposit accounts |
37,530 |
39,030 |
37,535 |
36,226 |
40,233 |
150,321 |
159,748 |
||||||||||||||||||||||
FHLB advances and other borrowings |
2,372 |
2,624 |
1,753 |
1,743 |
1,865 |
8,492 |
7,850 |
||||||||||||||||||||||
Total interest expense |
39,902 |
41,654 |
39,288 |
37,969 |
42,098 |
158,813 |
167,598 |
||||||||||||||||||||||
Net interest income |
52,197 |
50,849 |
49,374 |
42,797 |
43,438 |
195,217 |
160,758 |
||||||||||||||||||||||
Provision for credit losses |
2,245 |
2,763 |
2,130 |
450 |
1,156 |
7,588 |
5,701 |
||||||||||||||||||||||
Net interest income after credit loss expense |
49,952 |
48,086 |
47,244 |
42,347 |
42,282 |
187,629 |
155,057 |
||||||||||||||||||||||
NONINTEREST INCOME: |
|||||||||||||||||||||||||||||
Service charges and fees |
3,518 |
2,839 |
2,125 |
2,277 |
1,772 |
10,759 |
6,935 |
||||||||||||||||||||||
Earnings on bank-owned life insurance |
811 |
786 |
743 |
677 |
662 |
3,017 |
2,480 |
||||||||||||||||||||||
(Loss) gain on sale of investment securities available-for-sale |
(272) |
- |
(110) |
(228) |
196 |
(610) |
(4) |
||||||||||||||||||||||
Gain on sale of SBA loans |
- |
- |
44 |
30 |
- |
74 |
30 |
||||||||||||||||||||||
Other |
204 |
10 |
(152) |
351 |
243 |
413 |
1,180 |
||||||||||||||||||||||
Total noninterest income |
4,261 |
3,635 |
2,650 |
3,107 |
2,873 |
13,653 |
10,621 |
||||||||||||||||||||||
NONINTEREST EXPENSE: |
|||||||||||||||||||||||||||||
Salaries and employee benefits |
21,109 |
19,560 |
18,179 |
18,341 |
17,018 |
77,189 |
65,116 |
||||||||||||||||||||||
Occupancy and equipment expense |
2,845 |
2,861 |
2,783 |
2,834 |
2,856 |
11,323 |
11,093 |
||||||||||||||||||||||
Legal and professional |
2,850 |
1,254 |
1,927 |
1,431 |
1,587 |
7,462 |
5,630 |
||||||||||||||||||||||
Data processing and network expense |
1,087 |
1,203 |
1,162 |
1,120 |
1,182 |
4,572 |
5,254 |
||||||||||||||||||||||
Regulatory assessments |
1,172 |
1,152 |
1,203 |
1,306 |
1,196 |
4,833 |
4,430 |
||||||||||||||||||||||
Advertising and marketing |
733 |
499 |
503 |
409 |
526 |
2,144 |
1,707 |
||||||||||||||||||||||
Software purchases and maintenance |
1,067 |
1,094 |
1,149 |
1,259 |
1,202 |
4,569 |
4,884 |
||||||||||||||||||||||
Loan operations and other real estate owned expense |
397 |
29 |
439 |
269 |
189 |
1,134 |
904 |
||||||||||||||||||||||
Telephone and communications |
126 |
134 |
115 |
175 |
144 |
550 |
585 |
||||||||||||||||||||||
Other |
1,305 |
1,106 |
1,386 |
964 |
1,330 |
4,761 |
4,724 |
||||||||||||||||||||||
Total noninterest expense |
32,691 |
28,892 |
28,846 |
28,108 |
27,230 |
118,537 |
104,327 |
||||||||||||||||||||||
NET INCOME BEFORE INCOME TAX |
21,522 |
22,829 |
21,048 |
17,346 |
17,925 |
82,745 |
61,351 |
||||||||||||||||||||||
Income tax expense |
3,624 |
4,772 |
4,301 |
3,757 |
4,192 |
16,454 |
13,680 |
||||||||||||||||||||||
NET INCOME |
17,898 |
18,057 |
16,747 |
13,589 |
13,733 |
66,291 |
47,671 |
||||||||||||||||||||||
Preferred stock dividends declared |
1,197 |
1,197 |
1,185 |
1,171 |
1,196 |
4,750 |
4,749 |
||||||||||||||||||||||
NET INCOME AVAILABLE TO COMMON |
$ |
16,701 |
$ |
16,860 |
$ |
15,562 |
$ |
12,418 |
$ |
12,537 |
$ |
61,541 |
$ |
42,922 |
|||||||||||||||
EARNINGS PER COMMON SHARE: |
|||||||||||||||||||||||||||||
Basic earnings per share |
$ |
1.21 |
$ |
1.22 |
$ |
1.12 |
$ |
0.90 |
$ |
0.92 |
$ |
4.45 |
$ |
3.14 |
|||||||||||||||
Diluted earnings per share |
$ |
1.02 |
$ |
1.03 |
$ |
0.96 |
$ |
0.78 |
$ |
0.79 |
$ |
3.79 |
$ |
2.78 |
|||||||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) | |||||||||||||||||||||||||||||
Three Months Ended |
Years Ended |
||||||||||||||||||||||||||||
2025 |
2024 |
2025 |
2024 |
||||||||||||||||||||||||||
(Dollars in thousands, except share and per share data) |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
December 31 |
December 31 |
||||||||||||||||||||||
Earnings per share, basic |
$ |
1.21 |
$ |
1.22 |
$ |
1.12 |
$ |
0.90 |
$ |
0.92 |
$ |
4.45 |
$ |
3.14 |
|||||||||||||||
Earnings per share, diluted |
$ |
1.02 |
$ |
1.03 |
$ |
0.96 |
$ |
0.78 |
$ |
0.79 |
$ |
3.79 |
$ |
2.78 |
|||||||||||||||
Dividends on common stock |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
|||||||||||||||
Dividends on Series A Convertible |
$ |
17.25 |
$ |
17.25 |
$ |
17.06 |
$ |
16.88 |
$ |
17.25 |
$ |
68.44 |
$ |
68.44 |
|||||||||||||||
Return on average assets (A) |
1.36 |
% |
1.41 |
% |
1.38 |
% |
1.17 |
% |
1.13 |
% |
1.33 |
% |
1.05 |
% |
|||||||||||||||
Return on average common equity (A) |
14.42 |
% |
15.14 |
% |
14.70 |
% |
12.41 |
% |
12.66 |
% |
14.21 |
% |
11.48 |
% |
|||||||||||||||
Return on average tangible common |
15.03 |
% |
15.81 |
% |
15.38 |
% |
13.01 |
% |
13.29 |
% |
14.85 |
% |
12.09 |
% |
|||||||||||||||
Net interest margin (A) (C) |
4.10 |
% |
4.10 |
% |
4.22 |
% |
3.80 |
% |
3.71 |
% |
4.06 |
% |
3.67 |
% |
|||||||||||||||
Efficiency ratio (D) |
57.90 |
% |
53.03 |
% |
55.45 |
% |
61.23 |
% |
58.80 |
% |
56.75 |
% |
60.88 |
% |
|||||||||||||||
Capital Ratios |
|||||||||||||||||||||||||||||
Third Coast Bancshares, Inc. (consolidated): |
|||||||||||||||||||||||||||||
Total common equity to total assets |
8.70 |
% |
8.84 |
% |
8.70 |
% |
8.45 |
% |
7.98 |
% |
8.70 |
% |
7.98 |
% |
|||||||||||||||
Tangible common equity to tangible |
8.38 |
% |
8.51 |
% |
8.35 |
% |
8.09 |
% |
7.63 |
% |
8.38 |
% |
7.63 |
% |
|||||||||||||||
Estimated Common equity tier 1 (to risk |
8.65 |
% |
8.85 |
% |
8.75 |
% |
8.70 |
% |
8.41 |
% |
8.65 |
% |
8.41 |
% |
|||||||||||||||
Estimated Tier 1 capital (to risk weighted |
9.97 |
% |
10.25 |
% |
10.20 |
% |
10.19 |
% |
9.90 |
% |
9.97 |
% |
9.90 |
% |
|||||||||||||||
Estimated Total capital (to risk weighted |
12.48 |
% |
12.90 |
% |
12.87 |
% |
12.97 |
% |
12.68 |
% |
12.48 |
% |
12.68 |
% |
|||||||||||||||
Estimated Tier 1 capital (to average |
9.65 |
% |
9.55 |
% |
9.65 |
% |
9.58 |
% |
9.12 |
% |
9.65 |
% |
9.12 |
% |
|||||||||||||||
Third Coast Bank: |
|||||||||||||||||||||||||||||
Estimated Common equity tier 1 (to risk |
12.23 |
% |
12.59 |
% |
12.56 |
% |
12.69 |
% |
12.35 |
% |
12.23 |
% |
12.35 |
% |
|||||||||||||||
Estimated Tier 1 capital (to risk weighted |
12.23 |
% |
12.59 |
% |
12.56 |
% |
12.69 |
% |
12.35 |
% |
12.23 |
% |
12.35 |
% |
|||||||||||||||
Estimated Total capital (to risk weighted |
13.14 |
% |
13.53 |
% |
13.46 |
% |
13.63 |
% |
13.29 |
% |
13.14 |
% |
13.29 |
% |
|||||||||||||||
Estimated Tier 1 capital (to average |
11.84 |
% |
11.75 |
% |
11.89 |
% |
11.93 |
% |
11.37 |
% |
11.84 |
% |
11.37 |
% |
|||||||||||||||
Other Data |
|||||||||||||||||||||||||||||
Weighted average shares: |
|||||||||||||||||||||||||||||
Basic |
13,889,497 |
13,860,149 |
13,836,830 |
13,776,998 |
13,698,010 |
13,841,230 |
13,656,859 |
||||||||||||||||||||||
Diluted |
17,552,204 |
17,524,288 |
17,391,128 |
17,440,826 |
17,394,884 |
17,477,207 |
17,133,845 |
||||||||||||||||||||||
Period end shares outstanding |
13,891,055 |
13,879,099 |
13,851,581 |
13,825,286 |
13,769,780 |
13,891,055 |
13,769,780 |
||||||||||||||||||||||
Book value per share |
$ |
33.47 |
$ |
32.25 |
$ |
31.04 |
$ |
29.92 |
$ |
28.65 |
$ |
33.47 |
$ |
28.65 |
|||||||||||||||
Tangible book value per share (B) |
$ |
32.12 |
$ |
30.91 |
$ |
29.69 |
$ |
28.56 |
$ |
27.29 |
$ |
32.12 |
$ |
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 |
||||||||||||||||||||||||||||||||
December 31, 2025 |
September 30, 2025 |
December 31, 2024 |
||||||||||||||||||||||||||||||
(Dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||
Interest-earnings assets: |
||||||||||||||||||||||||||||||||
Loans, gross |
$ |
4,294,376 |
$ |
81,368 |
7.52 % |
$ |
4,179,027 |
$ |
82,054 |
7.79 % |
$ |
3,937,405 |
$ |
76,017 |
7.68 % |
|||||||||||||||||
Investment securities available-for-sale |
399,694 |
6,464 |
6.42 % |
410,073 |
6,289 |
6.08 % |
342,474 |
4,939 |
5.74 % |
|||||||||||||||||||||||
Investment securities held-to-maturity |
196,309 |
2,681 |
5.42 % |
206,055 |
2,882 |
5.55 % |
— |
— |
— |
|||||||||||||||||||||||
Federal funds sold and other interest-earning |
164,928 |
1,586 |
3.82 % |
123,680 |
1,278 |
4.10 % |
379,836 |
4,580 |
4.80 % |
|||||||||||||||||||||||
Total interest-earning assets |
5,055,307 |
92,099 |
7.23 % |
4,918,835 |
92,503 |
7.46 % |
4,659,715 |
85,536 |
7.30 % |
|||||||||||||||||||||||
Less: allowance for loan losses |
(42,984) |
(40,427) |
(39,855) |
|||||||||||||||||||||||||||||
Total interest-earning assets, net of |
5,012,323 |
4,878,408 |
4,619,860 |
|||||||||||||||||||||||||||||
Noninterest-earning assets |
209,215 |
213,210 |
195,143 |
|||||||||||||||||||||||||||||
Total assets |
$ |
5,221,538 |
$ |
5,091,618 |
$ |
4,815,003 |
||||||||||||||||||||||||||
Liabilities and Shareholders' Equity |
||||||||||||||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||||||||||
Interest-bearing deposits |
$ |
3,989,201 |
$ |
37,530 |
3.73 % |
$ |
3,892,726 |
$ |
39,030 |
3.98 % |
$ |
3,692,533 |
$ |
40,233 |
4.33 % |
|||||||||||||||||
Note payable and line of credit |
118,807 |
1,801 |
6.01 % |
113,560 |
1,754 |
6.13 % |
109,294 |
1,708 |
6.22 % |
|||||||||||||||||||||||
FHLB advances |
56,483 |
571 |
4.01 % |
73,476 |
870 |
4.70 % |
11,900 |
157 |
5.25 % |
|||||||||||||||||||||||
Total interest-bearing liabilities |
4,164,491 |
39,902 |
3.80 % |
4,079,762 |
41,654 |
4.05 % |
3,813,727 |
42,098 |
4.39 % |
|||||||||||||||||||||||
Noninterest-bearing deposits |
477,198 |
453,980 |
484,738 |
|||||||||||||||||||||||||||||
Other liabilities |
54,090 |
49,842 |
56,369 |
|||||||||||||||||||||||||||||
Total liabilities |
4,695,779 |
4,583,584 |
4,354,834 |
|||||||||||||||||||||||||||||
Shareholders' equity |
525,759 |
508,034 |
460,169 |
|||||||||||||||||||||||||||||
Total liabilities and shareholders' |
$ |
5,221,538 |
$ |
5,091,618 |
$ |
4,815,003 |
||||||||||||||||||||||||||
Net interest income |
$ |
52,197 |
$ |
50,849 |
$ |
43,438 |
||||||||||||||||||||||||||
Net interest spread (1) |
3.43 % |
3.41 % |
2.91 % |
|||||||||||||||||||||||||||||
Net interest margin (2) |
4.10 % |
4.10 % |
3.71 % |
|||||||||||||||||||||||||||||
___________ |
(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) | ||||||||||||||||||||||
Years Ended |
||||||||||||||||||||||
December 31, 2025 |
December 31, 2024 |
|||||||||||||||||||||
(Dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
||||||||||||||||
Assets |
||||||||||||||||||||||
Interest-earnings assets: |
||||||||||||||||||||||
Loans, gross |
$ |
4,119,536 |
$ |
316,215 |
7.68 % |
$ |
3,786,776 |
$ |
295,259 |
7.80 % |
||||||||||||
Investment securities available-for-sale |
397,618 |
23,951 |
6.02 % |
286,039 |
17,055 |
5.96 % |
||||||||||||||||
Investment securities held-to-maturity |
130,689 |
7,170 |
5.49 % |
— |
— |
— |
||||||||||||||||
Federal funds sold and other interest-earning assets |
161,198 |
6,694 |
4.15 % |
312,590 |
16,042 |
5.13 % |
||||||||||||||||
Total interest-earning assets |
4,809,041 |
354,030 |
7.36 % |
4,385,405 |
328,356 |
7.49 % |
||||||||||||||||
Less: allowance for loan losses |
(41,164) |
(38,500) |
||||||||||||||||||||
Total interest-earning assets, net of allowance |
4,767,877 |
4,346,905 |
||||||||||||||||||||
Noninterest-earning assets |
207,824 |
194,775 |
||||||||||||||||||||
Total assets |
$ |
4,975,701 |
$ |
4,541,680 |
||||||||||||||||||
Liabilities and Shareholders' Equity |
||||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||
Interest-bearing deposits |
$ |
3,826,293 |
$ |
150,321 |
3.93 % |
$ |
3,459,151 |
$ |
159,748 |
4.62 % |
||||||||||||
Note payable and line of credit |
113,953 |
6,987 |
6.13 % |
116,222 |
7,617 |
6.55 % |
||||||||||||||||
FHLB advances and other |
34,113 |
1,505 |
4.41 % |
4,438 |
233 |
5.25 % |
||||||||||||||||
Total interest-bearing liabilities |
3,974,359 |
158,813 |
4.00 % |
3,579,811 |
167,598 |
4.68 % |
||||||||||||||||
Noninterest-bearing deposits |
446,692 |
460,537 |
||||||||||||||||||||
Other liabilities |
55,335 |
61,148 |
||||||||||||||||||||
Total liabilities |
4,476,386 |
4,101,496 |
||||||||||||||||||||
Shareholders' equity |
499,315 |
440,184 |
||||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
4,975,701 |
$ |
4,541,680 |
||||||||||||||||||
Net interest income |
$ |
195,217 |
$ |
160,758 |
||||||||||||||||||
Net interest spread (1) |
3.36 % |
2.81 % |
||||||||||||||||||||
Net interest margin (2) |
4.06 % |
3.67 % |
||||||||||||||||||||
___________ |
(1) Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities. |
(2) Net interest margin represents net interest income divided by average interest-earning assets. |
(3) Interest earned/paid includes accretion of deferred loan fees, premiums and discounts. |
|
Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited) | |||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||
2025 |
2024 |
||||||||||||||||||||
(Dollars in thousands) |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
||||||||||||||||
Period-end Loan Portfolio: |
|||||||||||||||||||||
Real estate loans: |
|||||||||||||||||||||
Commercial real estate: |
|||||||||||||||||||||
Non-farm non-residential owner occupied |
$ |
434,715 |
$ |
408,996 |
$ |
423,959 |
$ |
420,902 |
$ |
448,134 |
|||||||||||
Non-farm non-residential non-owner occupied |
710,401 |
687,924 |
666,840 |
633,227 |
652,119 |
||||||||||||||||
Residential |
333,419 |
334,583 |
323,898 |
335,285 |
336,736 |
||||||||||||||||
Construction, development & other |
823,353 |
826,566 |
784,364 |
846,166 |
871,373 |
||||||||||||||||
Farmland |
26,485 |
25,549 |
28,013 |
30,783 |
30,915 |
||||||||||||||||
Commercial & industrial |
1,906,616 |
1,772,045 |
1,724,583 |
1,605,243 |
1,497,408 |
||||||||||||||||
Consumer |
1,576 |
1,291 |
1,206 |
1,443 |
1,859 |
||||||||||||||||
Municipal and other |
158,186 |
108,162 |
126,873 |
114,990 |
127,881 |
||||||||||||||||
Total loans |
$ |
4,394,751 |
$ |
4,165,116 |
$ |
4,079,736 |
$ |
3,988,039 |
$ |
3,966,425 |
|||||||||||
Asset Quality: |
|||||||||||||||||||||
Nonaccrual loans |
$ |
10,120 |
$ |
10,723 |
$ |
13,358 |
$ |
17,066 |
$ |
26,773 |
|||||||||||
Loans > 90 days and still accruing |
11,360 |
11,016 |
6,755 |
1,503 |
1,173 |
||||||||||||||||
Total nonperforming loans |
21,480 |
21,739 |
20,113 |
18,569 |
27,946 |
||||||||||||||||
Other real estate owned |
8,388 |
8,388 |
8,580 |
8,752 |
862 |
||||||||||||||||
Total nonperforming assets |
$ |
29,868 |
$ |
30,127 |
$ |
28,693 |
$ |
27,321 |
$ |
28,808 |
|||||||||||
QTD Net charge-offs (recoveries) |
$ |
844 |
$ |
(17) |
$ |
2,376 |
$ |
398 |
$ |
879 |
|||||||||||
Nonaccrual loans: |
|||||||||||||||||||||
Real estate loans: |
|||||||||||||||||||||
Commercial real estate: |
|||||||||||||||||||||
Non-farm non-residential owner occupied |
$ |
1,235 |
$ |
1,237 |
$ |
2,191 |
$ |
3,100 |
$ |
10,433 |
|||||||||||
Non-farm non-residential non-owner occupied |
99 |
111 |
111 |
- |
- |
||||||||||||||||
Residential |
387 |
214 |
637 |
2,616 |
2,226 |
||||||||||||||||
Construction, development & other |
- |
6 |
344 |
358 |
400 |
||||||||||||||||
Commercial & industrial |
8,399 |
9,155 |
10,075 |
10,992 |
13,714 |
||||||||||||||||
Total nonaccrual loans |
$ |
10,120 |
$ |
10,723 |
$ |
13,358 |
$ |
17,066 |
$ |
26,773 |
|||||||||||
Asset Quality Ratios: |
|||||||||||||||||||||
Nonperforming assets to total assets |
0.56 |
% |
0.60 |
% |
0.58 |
% |
0.56 |
% |
0.58 |
% |
|||||||||||
Nonperforming loans to total loans |
0.49 |
% |
0.52 |
% |
0.49 |
% |
0.47 |
% |
0.70 |
% |
|||||||||||
Allowance for credit losses to total loans |
1.00 |
% |
1.02 |
% |
0.98 |
% |
1.01 |
% |
1.02 |
% |
|||||||||||
QTD Net charge-offs (recoveries) to average loans |
0.08 |
% |
(0.00) |
% |
0.24 |
% |
0.04 |
% |
0.09 |
% |
|||||||||||
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 |
Years Ended |
|||||||||||||||||||||||||||
2025 |
2024 |
2025 |
2024 |
|||||||||||||||||||||||||
(Dollars in thousands, except share and per share data) |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
December 31 |
December 31 |
|||||||||||||||||||||
Tangible Common Equity: |
||||||||||||||||||||||||||||
Total shareholders' equity |
$ |
531,027 |
$ |
513,830 |
$ |
496,115 |
$ |
479,786 |
$ |
460,719 |
$ |
531,027 |
$ |
460,719 |
||||||||||||||
Less: Preferred stock including additional |
66,160 |
66,160 |
66,160 |
66,160 |
66,160 |
66,160 |
66,160 |
|||||||||||||||||||||
Total common equity |
464,867 |
447,670 |
429,955 |
413,626 |
394,559 |
464,867 |
394,559 |
|||||||||||||||||||||
Less: Goodwill and core deposit intangibles, |
18,680 |
18,720 |
18,761 |
18,801 |
18,841 |
18,680 |
18,841 |
|||||||||||||||||||||
Tangible common equity |
$ |
446,187 |
$ |
428,950 |
$ |
411,194 |
$ |
394,825 |
$ |
375,718 |
$ |
446,187 |
$ |
375,718 |
||||||||||||||
Common shares outstanding at end of period |
13,891,055 |
13,879,099 |
13,851,581 |
13,825,286 |
13,769,780 |
13,891,055 |
13,769,780 |
|||||||||||||||||||||
Book Value Per Share |
$ |
33.47 |
$ |
32.25 |
$ |
31.04 |
$ |
29.92 |
$ |
28.65 |
$ |
33.47 |
$ |
28.65 |
||||||||||||||
Tangible Book Value Per Share |
$ |
32.12 |
$ |
30.91 |
$ |
29.69 |
$ |
28.56 |
$ |
27.29 |
$ |
32.12 |
$ |
27.29 |
||||||||||||||
Tangible Assets: |
||||||||||||||||||||||||||||
Total assets |
$ |
5,340,759 |
$ |
5,061,808 |
$ |
4,943,771 |
$ |
4,896,989 |
$ |
4,942,446 |
$ |
5,340,759 |
$ |
4,942,446 |
||||||||||||||
Adjustments: Goodwill and core deposit |
18,680 |
18,720 |
18,761 |
18,801 |
18,841 |
18,680 |
18,841 |
|||||||||||||||||||||
Tangible assets |
$ |
5,322,079 |
$ |
5,043,088 |
$ |
4,925,010 |
$ |
4,878,188 |
$ |
4,923,605 |
$ |
5,322,079 |
$ |
4,923,605 |
||||||||||||||
Total Common Equity to Total Assets |
8.70 |
% |
8.84 |
% |
8.70 |
% |
8.45 |
% |
7.98 |
% |
8.70 |
% |
7.98 |
% |
||||||||||||||
Tangible Common Equity to Tangible Assets |
8.38 |
% |
8.51 |
% |
8.35 |
% |
8.09 |
% |
7.63 |
% |
8.38 |
% |
7.63 |
% |
||||||||||||||
Average Tangible Common Equity: |
||||||||||||||||||||||||||||
Average shareholders' equity |
$ |
525,759 |
$ |
508,034 |
$ |
490,741 |
$ |
472,041 |
$ |
460,169 |
$ |
499,315 |
$ |
440,184 |
||||||||||||||
Less: Average preferred stock including |
66,160 |
66,160 |
66,160 |
66,160 |
66,121 |
66,160 |
66,198 |
|||||||||||||||||||||
Average common equity |
459,599 |
441,874 |
424,581 |
405,881 |
394,048 |
433,155 |
373,986 |
|||||||||||||||||||||
Less: Average goodwill and core deposit |
18,705 |
18,746 |
18,784 |
18,826 |
18,865 |
18,765 |
18,926 |
|||||||||||||||||||||
Average tangible common equity |
$ |
440,894 |
$ |
423,128 |
$ |
405,797 |
$ |
387,055 |
$ |
375,183 |
$ |
414,390 |
$ |
355,060 |
||||||||||||||
Net Income |
$ |
17,898 |
$ |
18,057 |
$ |
16,747 |
$ |
13,589 |
$ |
13,733 |
$ |
66,291 |
$ |
47,671 |
||||||||||||||
Less: Dividends declared on preferred stock |
1,197 |
1,197 |
1,185 |
1,171 |
1,196 |
4,750 |
4,749 |
|||||||||||||||||||||
Net Income Available to Common Shareholders |
$ |
16,701 |
$ |
16,860 |
$ |
15,562 |
$ |
12,418 |
$ |
12,537 |
$ |
61,541 |
$ |
42,922 |
||||||||||||||
Return on Average Common Equity(A) |
14.42 |
% |
15.14 |
% |
14.70 |
% |
12.41 |
% |
12.66 |
% |
14.21 |
% |
11.48 |
% |
||||||||||||||
Return on Average Tangible Common Equity(A) |
15.03 |
% |
15.81 |
% |
15.38 |
% |
13.01 |
% |
13.29 |
% |
14.85 |
% |
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-fourth-quarter-and-full-year-financial-results-302667013.html
SOURCE Third Coast Bancshares