Third Coast Bancshares, Inc. Reports 2025 Fourth Quarter and Full Year Financial Results
Rhea-AI Summary
Third Coast Bancshares (NYSE: TCBX) reported record 2025 results with net income $66.3M and diluted EPS $3.79. For Q4 2025, net income was $17.9M and diluted EPS $1.02. Gross loans rose to $4.39B (+10.8% YoY) and total assets reached $5.34B (+8.1% YoY). Net interest margin held at 4.10% in Q4. Book value per share increased to $33.47 and tangible book to $32.12. Company completed transfer of its common stock listing to the NYSE and NYSE Texas.
Positive
- Net income +39% YoY to $66.3M
- Record diluted EPS of $3.79 for 2025
- Gross loans +10.8% YoY to $4.39B
- Book value per share +16.8% and tangible book +17.7% YoY
Negative
- Noninterest expense Q4 2025 $32.7M, ~20% higher YoY
- Merger-related expenses of $2.5M recorded in Q4 2025
Key Figures
Market Reality Check
Peers on Argus
TCBX was up 0.42% while peers showed mixed moves: PFIS +1.87%, NFBK +1.29%, GBFH +0.87%, but GNTY -1.46% and BHB -0.58%, pointing to stock-specific drivers.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 31 | Earnings call schedule | Neutral | -1.5% | Announced timing of Q4 and full-year 2025 earnings release and call. |
| Dec 18 | Preferred dividend | Neutral | -2.5% | Declared quarterly cash dividend on 6.75% Series A preferred stock. |
| Oct 24 | Q3 update & M&A | Positive | +0.9% | Highlighted stronger Q3 2025 results and Keystone acquisition update. |
| Oct 22 | Keystone merger deal | Positive | -3.0% | Announced definitive stock-and-cash merger agreement with Keystone Bancshares. |
| Oct 22 | Q3 2025 earnings | Positive | -3.0% | Reported record Q3 2025 earnings, strong NIM and balance sheet growth. |
Recent positive earnings and M&A news have often seen muted or negative next-day moves, with two divergences versus one alignment on clearly positive items.
Over the last few quarters, Third Coast has reported steadily improving results, including record Q3 2025 earnings and ongoing loan and deposit growth, while advancing its Keystone Bancshares merger. Book value and tangible book value per share have trended higher, supported by solid net interest margins and stable asset quality. Despite this, several earnings and deal updates around Apr–Oct 2025 were followed by short-term share price declines, suggesting a pattern of cautious market reactions to fundamentally strong updates that today’s record 2025 results continue.
Market Pulse Summary
This announcement highlights record $66.3 million 2025 net income, diluted EPS of $3.79, and balance sheet growth to $5.34 billion in assets, $4.39B in loans, and $4.63B in deposits. Net interest margin held at 4.10% with improving nonperforming loan metrics. Compared with earlier 2025 earnings, it extends a trend of rising profitability and book value. Investors may monitor merger-related expenses, efficiency ratio movements, and credit quality metrics like the 0.49% nonperforming loan ratio in upcoming quarters.
Key Terms
net interest margin financial
efficiency ratio financial
nonperforming loans financial
allowance for credit losses financial
net charge-offs financial
noninterest income financial
AI-generated analysis. Not financial advice.
Record Annual Net Income of
Record Annual Diluted Earnings Per Share of
Year Over Year Book Value grew
2025 Fourth Quarter Financial Highlights
- Return on average assets of
1.36% annualized for the fourth quarter of 2025 compared to1.41% annualized for the third quarter of 2025 and1.13% 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 to3.71% for the fourth quarter of 2024. - Net income for the fourth quarter of 2025 totaled
$17.9 million $1.21 $1.02 $18.1 million $1.22 $1.03 $13.7 million $0.92 $0.79 - Efficiency ratio of
57.90% for the fourth quarter of 2025 compared to53.03% for the third quarter of 2025 and58.80% for the fourth quarter of 2024. - Gross loans grew to
$4.39 billion $4.17 billion - Book value per share and tangible book value per share(1) increased to
$33.47 $32.12 $32.25 $30.91 $28.65 $27.29
2025 Full Year Financial and Operational Highlights
- Net income totaled
$66.3 million $4.45 $3.79 $47.7 million $3.14 $2.78 - Total assets increased
$398.3 million $5.34 billion 8.1% over the$4.94 billion - Gross loans grew
$428.3 million $4.39 billion 10.8% more than the$3.97 billion - Deposits increased
$316.4 million $4.63 billion 7.3% over the$4.31 billion - 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
Operating Results
Net Income and Earnings Per Share
Net income totaled
Basic and diluted earnings per share were
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
Net interest income totaled
Noninterest Income and Noninterest Expense
Noninterest income totaled
Noninterest expense increased to
The efficiency ratio was
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended December 31, 2025, gross loans increased to
Asset Quality
Nonperforming loans at December 31, 2025 were
The provision for credit loss recorded for the fourth quarter of 2025 was
The Company recorded net charge-offs of
Deposits and Composition
Deposits totaled
The average cost of deposits was
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,
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
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 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
FAQ
What were Third Coast Bancshares (TCBX) full-year 2025 net income and diluted EPS?
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