Stonegate Updates Coverage on Third Coast Bancshares, Inc. (TCBX) Q1 2025

Rhea-AI Summary

Third Coast Bancshares (NASDAQ: TCBX) reported Q1 2025 financial results with net income of $13.6M, slightly down from $13.7M in Q4 2024. The company achieved basic and diluted EPS of $0.90 and $0.78 respectively.

The quarterly performance was characterized by higher net interest income, supported by steady loan growth and strong asset quality. The net interest margin improved to 3.80% from 3.71% in Q4 2024, while gross loans reached $3.99 billion. However, the company faced headwinds from increased credit loss provisions and rising operational costs, particularly in salaries and employee benefits.

The efficiency ratio increased to 61.23% from 58.80% in the previous quarter. The company continues to focus on operational efficiency through its 1% improvement initiative, though this may be impacted by planned securitization.

Positive

• Net interest margin improved to 3.80% from 3.71% Q/Q
• Gross loans grew to $3.99 billion
• Strong asset quality maintained
• Steady loan growth achieved

Negative

• Net income slightly declined to $13.6M from $13.7M Q/Q
• Efficiency ratio deteriorated to 61.23% from 58.80%
• Increased provision for credit losses
• Rising operational costs in salaries and employee benefits

Dallas, Texas--(Newsfile Corp. - April 25, 2025) - Third Coast Bancshares, Inc. (NASDAQ: TCBX): Stonegate Capital Partners updates their coverage on Third Coast Bancshares, Inc. For 1Q25, Third Coast reported net income of $13.6M, virtually flat from $13.7M in 4Q24. This was equal to a basic and diluted EPS of $0.90 and $0.78, respectively. The Q/Q stability was primarily attributed to higher net interest income, driven by steady loan growth and strong asset quality. However, this increase was partially offset by a slightly higher provision for credit losses and rising expenses related to salaries, employee benefits, and seasonal expenses. We anticipate that the Company will continue prioritizing operational efficiency by sustaining its 1% improvement initiative, though the securitization is expected to impact this. This strategy is expected to support Third Coast in the current macroeconomic landscape.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• Net interest margin of 3.80% for the first quarter of 2025 compared to 3.71% for the fourth quarter of 2024.
• Gross loans grew to $3.99 billion as of March 31, 2025.
• The efficiency ratio for the quarter was 61.23%, an increase from 58.80% last quarter.

Click image above to view full announcement.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/249776

FAQ

What was Third Coast Bancshares (TCBX) net income for Q1 2025?

Third Coast Bancshares reported net income of $13.6 million in Q1 2025, slightly down from $13.7 million in Q4 2024.

How did TCBX's net interest margin perform in Q1 2025?

TCBX's net interest margin improved to 3.80% in Q1 2025, up from 3.71% in Q4 2024.

What was Third Coast Bancshares' loan portfolio size in Q1 2025?

Gross loans grew to $3.99 billion as of March 31, 2025.

How did TCBX's efficiency ratio change in Q1 2025?

The efficiency ratio increased to 61.23% in Q1 2025 from 58.80% in the previous quarter, indicating decreased operational efficiency.