Third Coast Bancshares, Inc. Declares Quarterly Cash Dividend on its 6.75% Series A Convertible Non-Cumulative Preferred Stock
- None.
- None.
The declaration of a quarterly cash dividend by Third Coast Bancshares, Inc. (TCBX) represents a significant event for shareholders of the company's preferred stock. The dividend of $17.25 per share on the 6.75% Series A Convertible Non–Cumulative Preferred Stock indicates a maintained or potentially increased level of profitability and cash flow within the company, which can be seen as a positive indicator of the company's financial health.
Investors holding this class of stock are typically interested in the income-generating potential of their investments and the payment of a substantial dividend can act as an incentive for both current and prospective shareholders. It is also a signal to the market that the company is confident in its ability to generate sufficient earnings to cover the dividend payments.
However, it is important to assess the sustainability of these payments in the context of the company's overall financial performance, including its earnings, payout ratio and cash reserves. A high dividend yield can sometimes be a red flag if not supported by strong fundamentals, as it may not be sustainable in the long run.
From an industry perspective, the payment of dividends on preferred stock is a common practice, especially within the financial sector where Third Coast Bancshares operates. Preferred stock dividends are typically prioritized over common stock dividends, which provides an element of security to investors, but can also impact the company's financial flexibility.
The 6.75% yield on the Series A Convertible Non–Cumulative Preferred Stock is a critical figure, as it provides a benchmark for investors when comparing the company's performance to that of its peers. If this yield is significantly higher or lower than the industry average, it could suggest that Third Coast Bancshares is either more generous in its payouts or potentially taking on more risk to maintain investor appeal.
Additionally, the non-cumulative nature of the preferred stock means that if the company skips a dividend payment, it is not obliged to pay it in the future, which can be a double-edged sword for investors seeking reliable income streams.
Examining the macroeconomic context, the decision to pay dividends may be influenced by the current economic climate and interest rate environment. In a low-interest-rate environment, high dividend yields are particularly attractive to income-seeking investors. Conversely, in a scenario of rising interest rates, companies may face higher costs of debt, which could potentially pressure their ability to pay dividends or invest in growth.
The timing of the dividend payment, scheduled for January 16, 2024, could also have implications for investor decisions, as it may influence tax planning strategies or cash flow considerations for the beginning of the year. Moreover, the announcement close to the year-end may affect the stock's performance as investors adjust portfolios for tax purposes or rebalance holdings.
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a commercially focused,
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; 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, 2022 filed with the
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.
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-declares-quarterly-cash-dividend-on-its-6-75-series-a-convertible-non-cumulative-preferred-stock-302021184.html
SOURCE Third Coast Bancshares
FAQ
What did Third Coast Bancshares, Inc. (NASDAQ: TCBX) announce?
When is the dividend payable?
What is the record date for the dividend?
What is the ticker symbol for Third Coast Bancshares, Inc.?
