EX-99.1 2 tcbx-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

 

img69977408_0.jpg

News Release

Contact:

Ken Dennard / Natalie Hairston

Dennard Lascar Investor Relations

(713) 529-6600

TCBX@dennardlascar.com

FOR IMMEDIATE RELEASE

 

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 – 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.

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

____________________________

(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.

 

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.

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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.

3

 

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

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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.

5

 

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

 

 

6

 

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

 

 

 

7

 

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.

 

8

 

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.

 

9

 

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.

 

10

 

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

%

 

 

11

 

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

12

 

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.

13