Completed Successful Merger with Keystone Bancshares, Inc.
HOUSTON, April 22, 2026 /PRNewswire/ -- Third Coast Bancshares, Inc. (NYSE & NYSE Texas: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank (the "Bank"), today reported its 2026 first quarter financial results.
2026 First Quarter Financial Highlights
-- Completed successful merger with Keystone Bancshares, Inc. ("Keystone")
on February 1, 2026, which added approximately $812.0 million in loans,
$1 billion in assets, and $844.2 million in deposits.
-- Return on average assets of 1.08% annualized for the first quarter of
2026 compared to 1.36% annualized for the fourth quarter of 2025 and
1.17% annualized for the first quarter of 2025.
-- Net interest margin of 3.67% for the first quarter of 2026 compared to
4.10% for the fourth quarter of 2025 and 3.80% for the first quarter of
2025.
-- Net income for the first quarter of 2026 totaled $16.4 million, or $1.03
and $0.88 per basic and diluted share, respectively, compared to $17.9
million, or $1.21 and $1.02 per basic and diluted share, respectively,
for the fourth quarter of 2025 and $13.6 million, or $0.90 and $0.78 per
basic and diluted share, respectively, for the first quarter of 2025.
-- The first quarter of 2026 included non-recurring adjustments related to
the merger with Keystone that negatively impacted net income by
approximately $3.3 million pre-tax.
-- Efficiency ratio of 66.06% for the first quarter of 2026 compared to
57.90% for the fourth quarter of 2025 and 61.23% for the first quarter of
2025.
-- Gross loans grew to $5.25 billion as of March 31, 2026, from $4.39
billion reported as of December 31, 2025.
-- Book value per common share and tangible book value per common share(1)
increased to $35.28 and decreased to $31.97, respectively, as of March
31, 2026, compared to $33.47 and $32.12, respectively, as of December 31,
2025 and $29.92 and $28.56, respectively, as of March 31, 2025.
"Our first quarter marked an important step for Third Coast with the successful merger with Keystone. This transaction meaningfully increased our balance sheet and capabilities, and we're already seeing strong momentum across our loan pipelines and core markets. As we move through the year, we remain focused on executing on our strategic objectives, building deeper relationships with clients, and translating our expanded platform into sustainable growth and shareholder value," said Bart Caraway, Founder, Chairman, President & Chief Executive Officer of Third Coast.
Operating Results
Net Income and Earnings Per Common Share
Net income totaled $16.4 million for the first quarter of 2026, compared to $17.9 million for the fourth quarter of 2025 and $13.6 million for the first quarter of 2025. Net income available to common shareholders totaled $15.2 million for the first quarter of 2026, compared to $16.7 million for the fourth quarter of 2025 and $12.4 million for the first quarter of 2025. The quarter-over-quarter decrease from the fourth quarter of 2025 was primarily due to merger-related expenses attributing to an increase in legal and professional expenses, and an increase in salaries and employee benefits related to sign-on bonuses, retention and additional bonuses. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025.
Basic and diluted earnings per common share were $1.03 per share and $0.88 per share, respectively, in the first quarter of 2026, compared to $1.21 per share and $1.02 per share, respectively, in the fourth quarter of 2025 and $0.90 per share and $0.78 per share, respectively, in the first quarter of 2025.
Net Interest Margin and Net Interest Income
The net interest margin for the first quarter of 2026 was 3.67%, compared to 4.10% for the fourth quarter of 2025 and 3.80% for the first quarter of 2025. The yield on loans for the first quarter of 2026 was 7.01%, compared to 7.52% for the fourth quarter of 2025 and 7.45% for the first quarter of 2025. The cost of interest-bearing deposits for the first quarter of 2026 was 3.53%, compared to 3.73% for the fourth quarter of 2025 and 4.02% for the first quarter of 2025.
Net interest income totaled $53.6 million for the first quarter of 2026, an increase of 2.8% from $52.2 million for the fourth quarter of 2025 and an increase of 25.3% from $42.8 million for the first quarter of 2025. Interest income totaled $97.4 million for the first quarter of 2026, an increase of 5.7% from $92.1 million for the fourth quarter of 2025 and an increase of 20.6% from $80.8 million for the first quarter of 2025. The quarter-over-quarter increase from the fourth quarter of 2025 in interest income primarily resulted from an increase in loans, slightly offset by a $1.0 million reversal of interest income on a loan placed on nonaccrual and a decrease in loan yields. Interest expense was $43.7 million for the first quarter of 2026, an increase of $3.8 million, or 9.6%, from $39.9 million for the fourth quarter of 2025 and an increase of $5.8 million, or 15.2%, from $38.0 million for the first quarter of 2025, primarily resulting from an increase in interest-bearing demand deposits slightly offset by a reduction in rates paid on interest-bearing demand deposits.
Noninterest Income and Noninterest Expense
Noninterest income totaled $4.0 million for the first quarter of 2026, compared to $4.3 million for the fourth quarter of 2025 and $3.1 million for the first quarter of 2025. The quarter-over-quarter decrease from the fourth quarter of 2025 in noninterest income was primarily due to a decrease in non-margin loan fees during the first quarter of 2026.
Noninterest expense increased to $38.1 million for the first quarter of 2026, compared to $32.7 million for the fourth quarter of 2025 and $28.1 million for the first quarter of 2025. The quarter-over-quarter increase from the fourth quarter of 2025 in noninterest expense was primarily due to merger-related expenses. During the first quarter of 2026, the Company recorded $3.3 million in Keystone merger-related noninterest expenses primarily attributable to $1.6 million in legal and professional expenses and $1.3 million in salaries and employee benefits. Additionally, the Company recorded $644,000 in salaries and employee benefits attributable to sign-on bonuses and additional discretionary bonuses during the first quarter of 2026. At March 31, 2026, the number of employees increased to 514, compared to 412 at December 31, 2025 primarily due to the Keystone merger.
The efficiency ratio was 66.06% for the first quarter of 2026, compared to 57.90% for the fourth quarter of 2025 and 61.23% for the first quarter of 2025.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended March 31, 2026, gross loans increased to $5.25 billion, an increase of $856.7 million, or 19.5%, from $4.39 billion as of December 31, 2025, and an increase of $1.26 billion, or 31.7%, from $3.99 billion as of March 31, 2025. The increase in gross loans was impacted by the mid-quarter Keystone merger. Commercial and industrial loans and real estate loans accounted for the majority of the loan growth for the first quarter of 2026, with commercial and industrial loans increasing $276.2 million and real estate loans increasing $644.2 million from the fourth quarter of 2025, partially offset by municipal and other loans decreasing $64.4 million from the fourth quarter of 2025.
Asset Quality
Nonperforming loans at March 31, 2026 were $35.6 million, compared to $21.5 million at December 31, 2025 and $18.6 million at March 31, 2025. The increase in nonperforming loans during the first quarter of 2026 was primarily due to one loan for approximately $17.1 million that was placed on nonaccrual partially offset by a $5.0 million decline in loans over 90 days past due and still accruing. As of March 31, 2026, the nonperforming loans to total loans ratio was 0.68%, compared to 0.49% as of December 31, 2025 and 0.47% as of March 31, 2025.
The provision for credit loss recorded for the first quarter of 2026 was $580,000, and the allowance for credit losses of $51.5 million represented 0.98% of the $5.25 billion in gross loans outstanding as of March 31, 2026. The provision for credit loss recorded for the fourth quarter of 2025 was $2.2 million, and the allowance for credit losses of $43.9 million represented 1.00% of the $4.39 billion in gross loans outstanding as of December 31, 2025. The increase in the allowance for credit loss in the first quarter of 2026 compared to the fourth quarter of 2025 was primarily attributable to Day 1 allowance for credit losses related to the Keystone merger.
The Company recorded net recoveries of $4,000 and net charge-offs of $398,000 for the three months ended March 31, 2026 and March 31, 2025, respectively.
Deposits and Composition
Deposits totaled $5.72 billion as of March 31, 2026, an increase of 23.5% from $4.63 billion as of December 31, 2025, and an increase of 34.5% from $4.25 billion as of March 31, 2025. The increase in total deposits was impacted by the mid-quarter Keystone merger. Noninterest-bearing demand deposits increased from $495.0 million as of December 31, 2025, to $577.2 million as of March 31, 2026 and represented 10.1% and 10.7% of total deposits as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, interest-bearing demand deposits increased $912.1 million, or 27.1%, time deposits increased $90.0 million, or 12.0%, and savings accounts increased $3.8 million, or 17.6%, respectively, from December 31, 2025.
The average cost of deposits was 3.17% for the first quarter of 2026, representing a 17-basis point decrease from the fourth quarter of 2025 and a 44-basis point decrease from the first quarter of 2025. The decreases were primarily due to the reduction in rates paid on interest-bearing demand deposits.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss its 2026 first quarter results, which will be broadcast live over the Internet, on Thursday, April 23, 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 April 30, 2026, and may be accessed by dialing 201-612-7415 and using passcode 13757903#. 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 21 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; economic conditions affecting the real estate market; prepayment risks associated with commercial real estate loans; liquidity risks in the securitization market; operational risks related to the administration of securitized assets; changes in key management personnel; the risk that the benefits from the transaction between Third Coast and Keystone 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; 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 completion of the transaction may be more expensive 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 completion of the transaction; the dilution caused by Third Coast's issuance of additional shares of its common stock in connection with the transaction; 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, 2025 filed with the U.S. Securities and Exchange Commission (the "SEC"), and our other filings with the SEC.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, including Tangible Common Equity, Tangible Book Value Per Common 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)
2026 2025
---------- ----------------------------------------------
December September
(Dollars in thousands) March 31 31 30 June 30 March 31
----------------------- ---------- ---------- ---------- ---------- ----------
ASSETS
Cash and cash
equivalents:
Cash and due from banks $ 425,174 $ 175,202 $ 116,383 $ 113,141 $ 218,990
Federal funds sold 6,133 6,027 6,629 5,815 110,379
--------- --------- --------- --------- ---------
Total cash and cash
equivalents 431,307 181,229 123,012 118,956 329,369
Interest bearing time
deposits in other
banks 270 267 265 262 359
Investment securities
available-for-sale 435,846 383,192 376,719 355,753 397,442
Investment securities
held to maturity 191,980 192,008 206,037 206,065 -
Loans held for
investment 5,251,458 4,394,751 4,165,116 4,079,736 3,988,039
Less: allowance for
credit losses (51,455) (43,949) (42,563) (40,035) (40,456)
--------- --------- --------- --------- ---------
Loans held for
investment, net 5,200,003 4,350,802 4,122,553 4,039,701 3,947,583
Accrued interest
receivable 31,385 29,236 29,537 27,736 26,752
Premises and equipment,
net 40,558 24,789 24,718 24,908 25,669
Other real estate owned 8,388 8,388 8,388 8,580 8,752
Bank-owned life
insurance 77,107 76,357 75,547 74,761 74,018
Non-marketable
securities, at cost 21,759 16,424 26,157 18,761 15,994
Deferred tax asset, net 7,493 6,450 6,989 8,646 9,176
Derivative assets 2,350 2,544 2,803 3,059 3,052
Right-of-use assets -
operating leases 17,615 17,066 17,677 18,769 19,370
Goodwill and other
intangible assets 54,883 18,680 18,720 18,761 18,801
Other assets 61,129 33,327 22,686 19,053 20,652
--------- --------- --------- --------- ---------
Total assets $6,582,073 $5,340,759 $5,061,808 $4,943,771 $4,896,989
========= ========= ========= ========= =========
LIABILITIES
Deposits:
Noninterest bearing $ 577,217 $ 495,000 $ 450,013 $ 440,964 $ 448,542
Interest bearing 5,137,860 4,131,888 3,922,728 3,839,905 3,800,001
--------- --------- --------- --------- ---------
Total deposits 5,715,077 4,626,888 4,372,741 4,280,869 4,248,543
Accrued interest payable 7,205 5,957 7,153 6,691 7,044
Derivative liabilities 3,517 3,142 3,521 3,779 3,527
Lease liability -
operating leases 18,676 18,130 18,735 19,835 20,425
Other liabilities 48,177 36,775 32,040 24,745 25,979
Line of credit - Senior
Debt 57,875 37,875 32,875 30,875 30,875
Note payable -
Subordinated
Debentures, net 81,016 80,965 80,913 80,862 80,810
--------- --------- --------- --------- ---------
Total liabilities 5,931,543 4,809,732 4,547,978 4,447,656 4,417,203
SHAREHOLDERS' EQUITY
Series A Convertible
Non-Cumulative
Preferred Stock 69 69 69 69 69
Series B Convertible
Perpetual Preferred
Stock - - - - -
Common stock 16,641 13,970 13,958 13,930 13,904
Common stock -
non-voting - - - - -
Additional paid-in
capital 428,815 323,929 323,491 322,972 322,456
Retained earnings 198,435 183,238 166,537 149,677 134,115
Accumulated other
comprehensive income 7,669 10,920 10,874 10,566 10,341
Treasury stock, at cost (1,099) (1,099) (1,099) (1,099) (1,099)
--------- --------- --------- --------- ---------
Total shareholders'
equity 650,530 531,027 513,830 496,115 479,786
--------- --------- --------- --------- ---------
Total liabilities and
shareholders' equity $6,582,073 $5,340,759 $5,061,808 $4,943,771 $4,896,989
========= ========= ========= ========= =========
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
------------------------------------------------
2026 2025
------- ---------------------------------------
(Dollars in thousands, March December September March
except per share data) 31 31 30 June 30 31
----------------------- ------- --------- ---------- ------- -------
INTEREST INCOME:
Loans, including fees $85,893 $ 81,368 $ 82,054 $79,706 $73,087
Investment securities
available-for-sale 6,107 6,464 6,289 5,505 5,693
Investment securities
held-to-maturity 2,398 2,681 2,882 1,607 -
Federal funds sold and
other 2,988 1,586 1,278 1,844 1,986
Total interest income 97,386 92,099 92,503 88,662 80,766
INTEREST EXPENSE:
Deposit accounts 41,484 37,530 39,030 37,535 36,226
FHLB advances and other
borrowings 2,257 2,372 2,624 1,753 1,743
Total interest expense 43,741 39,902 41,654 39,288 37,969
------ -------- --------- ------ ------
Net interest income 53,645 52,197 50,849 49,374 42,797
Provision for credit
losses 580 2,245 2,763 2,130 450
------ -------- --------- ------ ------
Net interest income
after credit loss
expense 53,065 49,952 48,086 47,244 42,347
NONINTEREST INCOME:
Service charges and
fees 3,175 3,518 2,839 2,125 2,277
Earnings on bank-owned
life insurance 750 811 786 743 677
Loss on sale of
investment securities
available-for-sale (11) (272) - (110) (228)
Gain on sale of SBA
loans - - - 44 30
Other 119 204 10 (152) 351
------ -------- --------- ------ ------
Total noninterest
income 4,033 4,261 3,635 2,650 3,107
NONINTEREST EXPENSE:
Salaries and employee
benefits 24,808 21,109 19,560 18,179 18,341
Occupancy and equipment
expense 3,349 2,845 2,861 2,783 2,834
Legal and professional 3,221 2,850 1,254 1,927 1,431
Data processing and
network expense 1,414 1,087 1,203 1,162 1,120
Regulatory assessments 1,210 1,172 1,152 1,203 1,306
Advertising and
marketing 639 733 499 503 409
Software purchases and
maintenance 1,419 1,067 1,094 1,149 1,259
Loan operations and
other real estate
owned expense 537 397 29 439 269
Telephone and
communications 144 126 134 115 175
Other 1,362 1,305 1,106 1,386 964
Total noninterest
expense 38,103 32,691 28,892 28,846 28,108
------ -------- --------- ------ ------
NET INCOME BEFORE INCOME
TAX EXPENSE 18,995 21,522 22,829 21,048 17,346
Income tax expense 2,627 3,624 4,772 4,301 3,757
------ -------- --------- ------ ------
NET INCOME 16,368 17,898 18,057 16,747 13,589
Preferred stock
dividends declared 1,171 1,197 1,197 1,185 1,171
------ -------- --------- ------ ------
NET INCOME AVAILABLE TO
COMMON
SHAREHOLDERS $15,197 $ 16,701 $ 16,860 $15,562 $12,418
====== ======== ========= ====== ======
EARNINGS PER COMMON
SHARE:
Basic earnings per share $ 1.03 $ 1.21 $ 1.22 $ 1.12 $ 0.90
Diluted earnings per
share $ 0.88 $ 1.02 $ 1.03 $ 0.96 $ 0.78
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
-------------------------------------------------------------------------------
2026 2025
----------- --------------------------------------------------------------
(Dollars in thousands,
except share and per September
share data) March 31 December 31 30 June 30 March 31
----------------------- ----------- ----------- ----------- ----------- -----------
Earnings per common
share, basic $ 1.03 $ 1.21 $ 1.22 $ 1.12 $ 0.90
Earnings per common
share, diluted $ 0.88 $ 1.02 $ 1.03 $ 0.96 $ 0.78
Dividends on common
stock $ - $ - $ - $ - $ -
Dividends on Series A
Convertible
Non-Cumulative
Preferred Stock $ 16.88 $ 17.25 $ 17.25 $ 17.06 $ 16.88
Return on average assets
$(A)$ 1.08% 1.36% 1.41% 1.38% 1.17%
Return on average common
equity (A) 11.29% 14.42% 15.14% 14.70% 12.41%
Return on average
tangible common
equity (A) $(B)$ 12.23% 15.03% 15.81% 15.38% 13.01%
Net interest margin (A)
$(CUL3)$ 3.67% 4.10% 4.10% 4.22% 3.80%
Efficiency ratio $(D)$ 66.06% 57.90% 53.03% 55.45% 61.23%
Capital Ratios
-----------------------
Third Coast Bancshares,
Inc. (consolidated):
Total common equity to
total assets 8.88% 8.70% 8.84% 8.70% 8.45%
Tangible common equity
to tangible
assets (B) 8.11% 8.38% 8.51% 8.35% 8.09%
Estimated Common equity
tier 1 (to risk
weighted
assets) 8.84% 8.65% 8.85% 8.75% 8.70%
Estimated Tier 1 capital
(to risk weighted
assets) 9.96% 9.97% 10.25% 10.20% 10.19%
Estimated Total capital
(to risk weighted
assets) 12.13% 12.48% 12.90% 12.87% 12.97%
Estimated Tier 1 capital
(to average
assets) 9.65% 9.65% 9.55% 9.65% 9.58%
Third Coast Bank:
Estimated Common equity
tier 1 (to risk
weighted
assets) 12.23% 12.23% 12.59% 12.56% 12.69%
Estimated Tier 1 capital
(to risk weighted
assets) 12.23% 12.23% 12.59% 12.56% 12.69%
Estimated Total capital
(to risk weighted
assets) 13.02% 13.14% 13.53% 13.46% 13.63%
Estimated Tier 1 capital
(to average
assets) 11.84% 11.84% 11.75% 11.89% 11.93%
Other Data
-----------------------
Weighted average common
shares:
Basic 14,814,661 13,889,497 13,860,149 13,836,830 13,776,998
Diluted 18,560,056 17,552,204 17,524,288 17,391,128 17,440,826
Period end common shares
outstanding 16,562,268 13,891,055 13,879,099 13,851,581 13,825,286
Book value per common
share $ 35.28 $ 33.47 $ 32.25 $ 31.04 $ 29.92
Tangible book value per
common share (B) $ 31.97 $ 32.12 $ 30.91 $ 29.69 $ 28.56
___________
(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
-----------------------------------------------------------------------------------------------------
March 31, 2026 December 31, 2025 March 31, 2025
-------------------------------- --------------------------------- --------------------------------
Average Interest Average Average Interest Average Average Interest Average
Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Outstanding Earned/ Yield/
(Dollars in thousands) Balance Paid(3) Rate(4) Balance Paid(3) Rate(4) Balance Paid(3) Rate(4)
----------------------- ----------- ---------- ------- ----------- ---------- -------- ----------- ---------- -------
Assets
Interest-earnings
assets:
Loans, gross $ 4,972,780 $ 85,893 7.01 % $ 4,294,376 $ 81,368 7.52 % $ 3,979,859 $ 73,087 7.45 %
Investment securities
available-for-sale 402,372 6,107 6.16 % 399,694 6,464 6.42 % 398,115 5,693 5.80 %
Investment securities
held-to-maturity 191,998 2,398 5.07 % 196,309 2,681 5.42 % -- -- --
Federal funds sold and
other interest-earning
assets 364,681 2,988 3.32 % 164,928 1,586 3.82 % 186,893 1,986 4.31 %
---------- ------ ---------- ------ ---------- ------
Total interest-earning
assets 5,931,831 97,386 6.66 % 5,055,307 92,099 7.23 % 4,564,867 80,766 7.18 %
------ ------ ------
Less: allowance for loan
losses (48,822) (42,984) (40,595)
---------- ---------- ----------
Total interest-earning
assets, net of
allowance 5,883,009 5,012,323 4,524,272
Noninterest-earning
assets 270,433 209,215 198,522
---------- ---------- ----------
Total assets $ 6,153,442 $ 5,221,538 $ 4,722,794
========== ========== ==========
Liabilities and
Shareholders' Equity
Interest-bearing
liabilities:
Interest-bearing
deposits $ 4,761,641 $ 41,484 3.53 % $ 3,989,201 $ 37,530 3.73 % $ 3,652,006 $ 36,226 4.02 %
Note payable and line
of credit 130,737 1,944 6.03 % 118,807 1,801 6.01 % 111,661 1,713 6.22 %
FHLB advances 40,155 313 3.16 % 56,483 571 4.01 % 2,551 30 4.77 %
---------- ------ ---------- ------ ---------- ------
Total interest-bearing
liabilities 4,932,533 43,741 3.60 % 4,164,491 39,902 3.80 % 3,766,218 37,969 4.09 %
------ ------ ------
Noninterest-bearing
deposits 549,111 477,198 423,780
Other liabilities 59,628 54,090 60,755
---------- ---------- ----------
Total liabilities 5,541,272 4,695,779 4,250,753
Shareholders' equity 612,170 525,759 472,041
---------- ---------- ----------
Total liabilities and
shareholders'
equity $ 6,153,442 $ 5,221,538 $ 4,722,794
========== ========== ==========
Net interest income $ 53,645 $ 52,197 $ 42,797
====== ====== ======
Net interest spread (1) 3.06 % 3.43 % 3.09 %
Net interest margin (2) 3.67 % 4.10 % 3.80 %
___________
(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)
Three Months Ended
--------------------------------------------------------------------------
2026 2025
---------- ----------------------------------------------------------
December September
(Dollars in thousands) March 31 31 30 June 30 March 31
----------------------- ---------- ---------- ---------- ---------- ----------
Period-end Loan
Portfolio:
Real estate loans:
Commercial real
estate:
Non-farm
non-residential owner
occupied $ 572,037 $ 434,715 $ 408,996 $ 423,959 $ 420,902
Non-farm
non-residential
non-owner occupied 929,598 710,401 687,924 666,840 633,227
Residential 543,804 333,419 334,583 323,898 335,285
Construction,
development & other 894,767 823,353 826,566 784,364 846,166
Farmland 32,379 26,485 25,549 28,013 30,783
Commercial & industrial 2,182,864 1,906,616 1,772,045 1,724,583 1,605,243
Consumer 2,265 1,576 1,291 1,206 1,443
Municipal and other 93,744 158,186 108,162 126,873 114,990
--------- --------- --------- --------- ---------
Total loans $5,251,458 $4,394,751 $4,165,116 $4,079,736 $3,988,039
========= ========= ========= ========= =========
Asset Quality:
Nonaccrual loans $ 29,222 $ 10,120 $ 10,723 $ 13,358 $ 17,066
Loans > 90 days and
still accruing 6,396 11,360 11,016 6,755 1,503
--------- --------- --------- --------- ---------
Total nonperforming
loans 35,618 21,480 21,739 20,113 18,569
Other real estate owned 8,388 8,388 8,388 8,580 8,752
Total nonperforming
assets $ 44,006 $ 29,868 $ 30,127 $ 28,693 $ 27,321
========= ========= ========= ========= =========
QTD Net (recoveries)
charge-offs $ (4) $ 844 $ (17) $ 2,376 $ 398
Nonaccrual loans:
Real estate loans:
Commercial real
estate:
Non-farm
non-residential owner
occupied $ 618 $ 1,235 $ 1,237 $ 2,191 $ 3,100
Non-farm
non-residential
non-owner occupied 17,140 99 111 111 -
Residential 374 387 214 637 2,616
Construction,
development & other 603 - 6 344 358
Commercial & industrial 10,487 8,399 9,155 10,075 10,992
Total nonaccrual loans $ 29,222 $ 10,120 $ 10,723 $ 13,358 $ 17,066
========= ========= ========= ========= =========
Asset Quality Ratios:
Nonperforming assets to
total assets 0.67% 0.56% 0.60% 0.58% 0.56%
Nonperforming loans to
total loans 0.68% 0.49% 0.52% 0.49% 0.47%
Allowance for credit
losses to total loans 0.98% 1.00% 1.02% 0.98% 1.01%
QTD Net (recoveries)
charge-offs to average
loans
(annualized) (0.00)% 0.08% (0.00)% 0.24% 0.04%
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 Common 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 Common Share. The most directly comparable GAAP
financial measure for tangible book value per common share is book value
per common share. We believe that the tangible book value per common
share measure is important to many investors in the marketplace who are
interested in changes from period to period in book value per common
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
-------------------------------------------------------------------------------
2026 2025
----------- --------------------------------------------------------------
(Dollars in thousands,
except share and per September
share data) March 31 December 31 30 June 30 March 31
----------------------- ----------- ----------- ----------- ----------- -----------
Tangible Common Equity:
Total shareholders'
equity $ 650,530 $ 531,027 $ 513,830 $ 496,115 $ 479,786
Less: Preferred stock
including additional
paid in
capital 66,160 66,160 66,160 66,160 66,160
---------- ---------- ---------- ---------- ----------
Total common equity 584,370 464,867 447,670 429,955 413,626
Less: Goodwill and core
deposit intangibles,
net 54,883 18,680 18,720 18,761 18,801
---------- ---------- ---------- ---------- ----------
Tangible common equity $ 529,487 $ 446,187 $ 428,950 $ 411,194 $ 394,825
========== ========== ========== ========== ==========
Common shares
outstanding at end of
period 16,562,268 13,891,055 13,879,099 13,851,581 13,825,286
Book Value Per Common
Share $ 35.28 $ 33.47 $ 32.25 $ 31.04 $ 29.92
Tangible Book Value Per
Common Share $ 31.97 $ 32.12 $ 30.91 $ 29.69 $ 28.56
Tangible Assets:
Total assets $ 6,582,073 $ 5,340,759 $ 5,061,808 $ 4,943,771 $ 4,896,989
Adjustments: Goodwill
and core deposit
intangibles,
net 54,883 18,680 18,720 18,761 18,801
---------- ---------- ---------- ---------- ----------
Tangible assets $ 6,527,190 $ 5,322,079 $ 5,043,088 $ 4,925,010 $ 4,878,188
========== ========== ========== ========== ==========
Total Common Equity to
Total Assets 8.88% 8.70% 8.84% 8.70% 8.45%
Tangible Common Equity
to Tangible Assets 8.11% 8.38% 8.51% 8.35% 8.09%
Average Tangible Common
Equity:
Average shareholders'
equity $ 612,170 $ 525,759 $ 508,034 $ 490,741 $ 472,041
Less: Average preferred
stock including
additional paid
in capital 66,160 66,160 66,160 66,160 66,160
---------- ---------- ---------- ---------- ----------
Average common equity 546,010 459,599 441,874 424,581 405,881
Less: Average goodwill
and core deposit
intangibles,
net 42,115 18,705 18,746 18,784 18,826
---------- ---------- ---------- ---------- ----------
Average tangible common
equity $ 503,895 $ 440,894 $ 423,128 $ 405,797 $ 387,055
========== ========== ========== ========== ==========
Net Income $ 16,368 $ 17,898 $ 18,057 $ 16,747 $ 13,589
Less: Dividends
declared on preferred
stock 1,171 1,197 1,197 1,185 1,171
---------- ---------- ---------- ---------- ----------
Net Income Available to
Common Shareholders $ 15,197 $ 16,701 $ 16,860 $ 15,562 $ 12,418
========== ========== ========== ========== ==========
Return on Average Common
Equity(A) 11.29% 14.42% 15.14% 14.70% 12.41%
Return on Average
Tangible Common
Equity(A) 12.23% 15.03% 15.81% 15.38% 13.01%
___________
(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-2026-first-quarter-financial-results-302750706.html
SOURCE Third Coast Bancshares
(END) Dow Jones Newswires
April 22, 2026 16:15 ET (20:15 GMT)