Second Quarter Delivers Record EPS, Improved Margin Performance, and Double-Digit Increase in Net Interest Income
HOUSTON, July 22, 2026 /PRNewswire/ -- Third Coast Bancshares, Inc. (NYSE: TCBX) (and 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 second quarter financial results.
2026 Second Quarter Financial Highlights
-- Return on average assets of 1.34% annualized for the second quarter of
2026 compared to 1.08% annualized for the first quarter of 2026 and 1.38%
annualized for the second quarter of 2025.
-- Net interest margin of 3.83% for the second quarter of 2026 compared to
3.67% for the first quarter of 2026 and 4.22% for the second quarter of
2025.
-- Net income for the second quarter of 2026 totaled $22.0 million, or $1.25
and $1.08 per basic and diluted share, respectively, compared to $16.4
million, or $1.03 and $0.88 per basic and diluted share, respectively,
for the first quarter of 2026 and $16.7 million, or $1.12 and $0.96 per
basic and diluted share, respectively, for the second quarter of 2025.
-- Efficiency ratio of 56.51% for the second quarter of 2026 compared to
66.06% for the first quarter of 2026 and 55.45% for the second quarter of
2025.
-- Gross loans grew to $5.44 billion as of June 30, 2026, from $5.25 billion
reported as of March 31, 2026.
-- Book value per common share and tangible book value per common share(1)
increased to $36.34 and increased to $33.08, respectively, as of June 30,
2026, compared to $35.28 and $31.97, respectively, as of March 31, 2026
and $31.04 and $29.69, respectively, as of June 30, 2025.
-- Effective June 25, 2026, the Company sold substantially all of the assets
of Third Coast Commercial Capital, Inc., recognizing a gain of $3.5
million and entering into a structured ongoing revenue sharing
arrangement.
"Our second quarter results reflect continued execution across our core strategy, with record diluted earnings per share, a double-digit increase in net interest income, disciplined expense management and solid credit performance," said Bart Caraway, Founder, Chairman, President and CEO of Third Coast. "We remain focused on attracting top talent, growing high-quality loans and deposits, and sustaining this momentum through the second half of the year."
Operating Results
Net Income and Earnings Per Common Share
Net income totaled $22.0 million for the second quarter of 2026, compared to $16.4 million for the first quarter of 2026 and $16.7 million for the second quarter of 2025. Net income available to common shareholders totaled $20.8 million for the second quarter of 2026, compared to $15.2 million for the first quarter of 2026 and $15.6 million for the second quarter of 2025. The quarter-over-quarter increase from the first quarter of 2026 was primarily due to an increase in net interest income and the gain on sale of factored receivables. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended June 30, 2026, March 31, 2026 and June 30, 2025.
Basic and diluted earnings per common share were $1.25 per share and $1.08 per share, respectively, in the second quarter of 2026, compared to $1.03 per share and $0.88 per share, respectively, in the first quarter of 2026 and $1.12 per share and $0.96 per share, respectively, in the second quarter of 2025.
Net Interest Margin and Net Interest Income
The net interest margin for the second quarter of 2026 was 3.83%, compared to 3.67% for the first quarter of 2026 and 4.22% for the second quarter of 2025. The yield on loans for the second quarter of 2026 was 7.06%, compared to 7.01% for the first quarter of 2026 and 7.95% for the second quarter of 2025. The cost of interest-bearing deposits for the second quarter of 2026 was 3.41%, compared to 3.53% for the first quarter of 2026 and 4.00% for the second quarter of 2025.
Net interest income totaled $60.3 million for the second quarter of 2026, an increase of 12.4% from $53.6 million for the first quarter of 2026 and an increase of 22.1% from $49.4 million for the second quarter of 2025. Interest income totaled $106.0 million for the second quarter of 2026, an increase of 8.8% from $97.4 million for the first quarter of 2026 and an increase of 19.5% from $88.7 million for the second quarter of 2025. The quarter-over-quarter increase from the first quarter of 2026 in interest income primarily resulted from an increase in loans. Interest expense was $45.7 million for the second quarter of 2026, an increase of $2.0 million, or 4.5%, from $43.7 million for the first quarter of 2026 and an increase of $6.4 million, or 16.4%, from $39.3 million for the second 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 $7.7 million for the second quarter of 2026, compared to $4.0 million for the first quarter of 2026 and $2.7 million for the second quarter of 2025. The quarter-over-quarter increase from the first quarter of 2026 in noninterest income was primarily due to the gain on sale of factored receivables during the second quarter of 2026.
Noninterest expense remained flat at $38.4 million for the second quarter of 2026, compared to $38.1 million for the first quarter of 2026 and $28.8 million for the second quarter of 2025. At June 30, 2026, the number of employees decreased to 504, compared to 514 at March 31, 2026.
The efficiency ratio was 56.51% for the second quarter of 2026, compared to 66.06% for the first quarter of 2026 and 55.45% for the second quarter of 2025.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended June 30, 2026, gross loans increased to $5.44 billion, an increase of $185.0 million, or 3.5%, from $5.25 billion as of March 31, 2026, and an increase of $1.36 billion, or 33.3%, from $4.08 billion as of June 30, 2025. Commercial and industrial loans accounted for the majority of the loan growth for the second quarter of 2026, with commercial and industrial loans increasing $186.7 million from the first quarter of 2026.
Asset Quality
Nonperforming loans at June 30, 2026 were $30.0 million, compared to $35.6 million at March 31, 2026 and $20.1 million at June 30, 2025. The decrease in nonperforming loans during the second quarter of 2026 was primarily due to the transfer of a $17.1 million loan to other real estate owned, offset by the placement on nonaccrual of three relationships totaling $10.1 million and an increase of $2.1 million in loans over 90 days past due and still accruing. As of June 30, 2026, the nonperforming loans to total loans ratio was 0.55%, compared to 0.68% as of March 31, 2026 and 0.49% as of June 30, 2025.
The provision for credit loss recorded for the second quarter of 2026 was $2.1 million, and the allowance for credit losses of $53.6 million represented 0.99% of the $5.44 billion in gross loans outstanding as of June 30, 2026. 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 Company recorded net recoveries of $150,000 and net charge-offs of $2.4 million for the three months ended June 30, 2026 and June 30, 2025, respectively.
Deposits and Composition
Deposits totaled $5.86 billion as of June 30, 2026, an increase of 2.5% from $5.72 billion as of March 31, 2026, and an increase of 36.8% from $4.28 billion as of June 30, 2025. Noninterest-bearing demand deposits increased from $577.2 million as of March 31, 2026, to $642.7 million as of June 30, 2026 and represented 11.0% and 10.1% of total deposits as of June 30, 2026 and March 31, 2026, respectively. As of June 30, 2026, interest-bearing demand deposits increased $44.2 million, or 1.0%, time deposits increased $28.1 million, or 3.4%, and savings accounts increased $2.5 million, or 9.9%, respectively, from March 31, 2026.
The average cost of deposits was 3.05% for the second quarter of 2026, representing a 12-basis point decrease from the first quarter of 2026 and a 54-basis point decrease from the second 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 second quarter results, which will be broadcast live over the Internet, on Thursday, July 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 July 30, 2026, and may be accessed by dialing 201-612-7415 and using passcode 13757904#. 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 Bancshares, Inc. ("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) June 30 March 31 31 30 June 30
----------------------- ---------- ---------- ---------- ---------- ----------
ASSETS
Cash and cash
equivalents:
Cash and due from banks $ 404,165 $ 425,174 $ 175,202 $ 116,383 $ 113,141
Federal funds sold 6,732 6,133 6,027 6,629 5,815
--------- --------- --------- --------- ---------
Total cash and cash
equivalents 410,897 431,307 181,229 123,012 118,956
Interest bearing time
deposits in other
banks 273 270 267 265 262
Investment securities
available-for-sale 405,251 435,846 383,192 376,719 355,753
Investment securities
held to maturity 191,952 191,980 192,008 206,037 206,065
Loans held for
investment 5,436,414 5,251,458 4,394,751 4,165,116 4,079,736
Less: allowance for
credit losses (53,591) (51,455) (43,949) (42,563) (40,035)
--------- --------- --------- --------- ---------
Loans held for
investment, net 5,382,823 5,200,003 4,350,802 4,122,553 4,039,701
Accrued interest
receivable 30,306 31,385 29,236 29,537 27,736
Premises and equipment,
net 40,178 40,558 24,789 24,718 24,908
Other real estate owned 27,321 8,388 8,388 8,388 8,580
Bank-owned life
insurance 77,856 77,107 76,357 75,547 74,761
Non-marketable
securities, at cost 23,538 21,759 16,424 26,157 18,761
Deferred tax asset, net 23,843 7,493 6,450 6,989 8,646
Derivative assets 2,594 2,350 2,544 2,803 3,059
Right-of-use assets -
operating leases 16,953 17,615 17,066 17,677 18,769
Core deposit
intangibles, net 8,081 8,516 646 686 727
Goodwill 46,079 46,367 18,034 18,034 18,034
Other assets 47,556 61,129 33,327 22,686 19,053
--------- --------- --------- --------- ---------
Total assets $6,735,501 $6,582,073 $5,340,759 $5,061,808 $4,943,771
========= ========= ========= ========= =========
LIABILITIES
Deposits:
Noninterest bearing $ 642,748 $ 577,217 $ 495,000 $ 450,013 $ 440,964
Interest bearing 5,212,718 5,137,860 4,131,888 3,922,728 3,839,905
--------- --------- --------- --------- ---------
Total deposits 5,855,466 5,715,077 4,626,888 4,372,741 4,280,869
Accrued interest payable 5,872 7,205 5,957 7,153 6,691
Derivative liabilities 4,289 3,517 3,142 3,521 3,779
Lease liability -
operating leases 18,011 18,676 18,130 18,735 19,835
Other liabilities 39,647 48,177 36,775 32,040 24,745
Line of credit - Senior
Debt 60,375 57,875 37,875 32,875 30,875
Note payable -
Subordinated
Debentures, net 81,068 81,016 80,965 80,913 80,862
--------- --------- --------- --------- ---------
Total liabilities 6,064,728 5,931,543 4,809,732 4,547,978 4,447,656
SHAREHOLDERS' EQUITY
Series A Convertible
Non-Cumulative
Preferred Stock 69 69 69 69 69
Series B Convertible
Perpetual Preferred
Stock - - - - -
Common stock 16,718 16,641 13,970 13,958 13,930
Common stock -
non-voting - - - - -
Additional paid-in
capital 429,931 428,815 323,929 323,491 322,972
Retained earnings 219,238 198,435 183,238 166,537 149,677
Accumulated other
comprehensive income 5,916 7,669 10,920 10,874 10,566
Treasury stock, at cost (1,099) (1,099) (1,099) (1,099) (1,099)
--------- --------- --------- --------- ---------
Total shareholders'
equity 670,773 650,530 531,027 513,830 496,115
--------- --------- --------- --------- ---------
Total liabilities and
shareholders' equity $6,735,501 $6,582,073 $5,340,759 $5,061,808 $4,943,771
========= ========= ========= ========= =========
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended Six Months Ended
------------------------------------------------- ------------------
2026 2025 2026 2025
----------------- ------------------------------ -------- --------
(Dollars in thousands, March December September
except per share data) June 30 31 31 30 June 30 June 30 June 30
----------------------- -------- ------- --------- ---------- ------- -------- --------
INTEREST INCOME:
Loans, including fees $ 94,584 $85,893 $ 81,368 $ 82,054 $79,706 $180,477 $152,793
Investment securities
available-for-sale 6,482 6,107 6,464 6,289 5,505 12,589 11,198
Investment securities
held-to-maturity 2,549 2,398 2,681 2,882 1,607 4,947 1,607
Federal funds sold and
other 2,374 2,988 1,586 1,278 1,844 5,362 3,830
Total interest income 105,989 97,386 92,099 92,503 88,662 203,375 169,428
INTEREST EXPENSE:
Deposit accounts 43,384 41,484 37,530 39,030 37,535 84,868 73,761
FHLB advances and other
borrowings 2,329 2,257 2,372 2,624 1,753 4,586 3,496
Total interest expense 45,713 43,741 39,902 41,654 39,288 89,454 77,257
------- ------ -------- --------- ------ ------- -------
Net interest income 60,276 53,645 52,197 50,849 49,374 113,921 92,171
Provision for credit
losses 2,069 580 2,245 2,763 2,130 2,649 2,580
------- ------ -------- --------- ------ ------- -------
Net interest income
after credit loss
expense 58,207 53,065 49,952 48,086 47,244 111,272 89,591
NONINTEREST INCOME:
Service charges and
fees 3,174 3,175 3,518 2,839 2,125 6,349 4,402
Earnings on bank-owned
life insurance 748 750 811 786 743 1,498 1,420
Loss on sale of
investment securities
available-for-sale (93) (11) (272) - (110) (104) (338)
Gain on sale of
factored receivables 3,463 - - - - 3,463 -
Gain on sale of SBA
loans - - - - 44 - 74
Other 425 119 204 10 (152) 544 199
------- ------ -------- --------- ------ ------- -------
Total noninterest
income 7,717 4,033 4,261 3,635 2,650 11,750 5,757
NONINTEREST EXPENSE:
Salaries and employee
benefits 24,804 24,808 21,109 19,560 18,179 49,612 36,520
Occupancy and equipment
expense 3,259 3,349 2,845 2,861 2,783 6,608 5,617
Legal and professional 2,271 3,221 2,850 1,254 1,927 5,492 3,358
Data processing and
network expense 1,595 1,414 1,087 1,203 1,162 3,009 2,282
Regulatory assessments 1,331 1,210 1,172 1,152 1,203 2,541 2,509
Advertising and
marketing 737 639 733 499 503 1,376 912
Software purchases and
maintenance 1,421 1,419 1,067 1,094 1,149 2,840 2,408
Loan operations and
other real estate
owned expense 656 537 397 29 439 1,193 708
Telephone and
communications 158 144 126 134 115 302 290
Other 2,192 1,362 1,305 1,106 1,386 3,554 2,350
Total noninterest
expense 38,424 38,103 32,691 28,892 28,846 76,527 56,954
------- ------ -------- --------- ------ ------- -------
NET INCOME BEFORE INCOME
TAX EXPENSE 27,500 18,995 21,522 22,829 21,048 46,495 38,394
Income tax expense 5,513 2,627 3,624 4,772 4,301 8,140 8,058
------- ------ -------- --------- ------ ------- -------
NET INCOME 21,987 16,368 17,898 18,057 16,747 38,355 30,336
Preferred stock
dividends declared 1,184 1,171 1,197 1,197 1,185 2,355 2,356
------- ------ -------- --------- ------ ------- -------
NET INCOME AVAILABLE TO
COMMON
SHAREHOLDERS $ 20,803 $15,197 $ 16,701 $ 16,860 $15,562 $ 36,000 $ 27,980
======= ====== ======== ========= ====== ======= =======
EARNINGS PER COMMON
SHARE:
Basic earnings per share $ 1.25 $ 1.03 $ 1.21 $ 1.22 $ 1.12 $ 2.29 $ 2.03
Diluted earnings per
share $ 1.08 $ 0.88 $ 1.02 $ 1.03 $ 0.96 $ 1.97 $ 1.74
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended Six Months Ended
------------------------------------------------------------------------------- ----------------------------
2026 2025 2026 2025
---------------------------- --------------------------------------------- ----------- -----------
(Dollars in thousands,
except share and per September
share data) June 30 March 31 December 31 30 June 30 June 30 June 30
----------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Earnings per common
share, basic $ 1.25 $ 1.03 $ 1.21 $ 1.22 $ 1.12 $ 2.29 $ 2.03
Earnings per common
share, diluted $ 1.08 $ 0.88 $ 1.02 $ 1.03 $ 0.96 $ 1.97 $ 1.74
Dividends on common
stock $ - $ - $ - $ - $ - $ - $ -
Dividends on Series A
Convertible
Non-Cumulative
Preferred Stock $ 17.06 $ 16.88 $ 17.25 $ 17.25 $ 17.06 $ 33.94 $ 33.94
Return on average assets
$(A)$ 1.34% 1.08% 1.36% 1.41% 1.38% 1.21% 1.28%
Return on average common
equity (A) 13.96% 11.29% 14.42% 15.14% 14.70% 12.69% 13.59%
Return on average
tangible common
equity (A) $(B)$ 15.36% 12.23% 15.03% 15.81% 15.38% 13.86% 14.23%
Net interest margin (A)
$(CUL3)$ 3.83% 3.67% 4.10% 4.10% 4.22% 3.75% 4.02%
Efficiency ratio $(D)$ 56.51% 66.06% 57.90% 53.03% 55.45% 60.89% 58.16% Capital Ratios ----------------------- Third Coast Bancshares, Inc. (consolidated): Total common equity to total assets 8.98% 8.88% 8.70% 8.84% 8.70% 8.98% 8.70% Tangible common equity to tangible assets (B) 8.24% 8.11% 8.38% 8.51% 8.35% 8.24% 8.35% Estimated Common equity tier 1 (to risk weighted assets) 8.82% 8.84% 8.65% 8.85% 8.75% 8.82% 8.75% Estimated Tier 1 capital (to risk weighted assets) 9.89% 9.96% 9.97% 10.25% 10.20% 9.89% 10.20% Estimated Total capital (to risk weighted assets) 12.01% 12.13% 12.48% 12.90% 12.87% 12.01% 12.87% Estimated Tier 1 capital (to average assets) 9.35% 9.65% 9.65% 9.55% 9.65% 9.35% 9.65% Third Coast Bank: Estimated Common equity tier 1 (to risk weighted assets) 12.10% 12.23% 12.23% 12.59% 12.56% 12.10% 12.56% Estimated Tier 1 capital (to risk weighted assets) 12.10% 12.23% 12.23% 12.59% 12.56% 12.10% 12.56% Estimated Total capital (to risk weighted assets) 12.91% 13.02% 13.14% 13.53% 13.46% 12.91% 13.46% Estimated Tier 1 capital (to average assets) 11.44% 11.84% 11.84% 11.75% 11.89% 11.44% 11.89% Other Data ----------------------- Weighted average common shares: Basic 16,591,144 14,814,661 13,889,497 13,860,149 13,836,830 15,707,810 13,807,079 Diluted 20,334,205 18,560,056 17,552,204 17,524,288 17,391,128 19,452,038 17,416,142 Period end common shares outstanding 16,639,127 16,562,268 13,891,055 13,879,099 13,851,581 16,639,127 13,851,581 Book value per common share $ 36.34 $ 35.28 $ 33.47 $ 32.25 $ 31.04 $ 36.34 $ 31.04 Tangible book value per common share (B) $ 33.08 $ 31.97 $ 32.12 $ 30.91 $ 29.69 $ 33.08 $ 29.69 (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 --------------------------------------------------------------------------------------------------- June 30, 2026 March 31, 2026 June 30, 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 $ 5,371,846 $ 94,584 7.06 % $ 4,972,780 $ 85,893 7.01 % $ 4,020,771 $ 79,706 7.95 % Investment securities available-for-sale 432,863 6,482 6.01 % 402,372 6,107 6.16 % 382,439 5,505 5.77 % Investment securities held-to-maturity 191,970 2,549 5.33 % 191,998 2,398 5.07 % 117,407 1,607 5.49 % Federal funds sold and other interest- earning assets 315,434 2,374 3.02 % 364,681 2,988 3.32 % 169,943 1,844 4.35 % ---------- ------- ---------- ------ ---------- ------ Total interest-earning assets 6,312,113 105,989 6.73 % 5,931,831 97,386 6.66 % 4,690,560 88,662 7.58 % ------- ------ ------ Less: allowance for credit losses (52,533) (48,822) (40,631) ---------- ---------- ---------- Total interest-earning assets, net of allowance 6,259,580 5,883,009 4,649,929 Noninterest-earning assets 330,121 270,433 210,170 ---------- ---------- ---------- Total assets $ 6,589,701 $ 6,153,442 $ 4,860,099 ========== ========== ========== Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing deposits $ 5,108,166 $ 43,384 3.41 % $ 4,761,641 $ 41,484 3.53 % $ 3,766,801 $ 37,535 4.00 % Note payable and line of credit 139,733 2,091 6.00 % 130,737 1,944 6.03 % 111,712 1,719 6.17 % FHLB advances 24,719 238 3.86 % 40,155 313 3.16 % 2,916 34 4.68 % ---------- ------- ---------- ------ ---------- ------ Total interest-bearing liabilities 5,272,618 45,713 3.48 % 4,932,533 43,741 3.60 % 3,881,429 39,288 4.06 % ------- ------ ------ Noninterest-bearing deposits 599,000 549,111 431,144 Other liabilities 54,236 59,628 56,785 ---------- ---------- ---------- Total liabilities 5,925,854 5,541,272 4,369,358 Shareholders' equity 663,847 612,170 490,741 ---------- ---------- ---------- Total liabilities and shareholders' equity $ 6,589,701 $ 6,153,442 $ 4,860,099 ========== ========== ========== Net interest income $ 60,276 $ 53,645 $ 49,374 ======= ====== ====== Net interest spread (1) 3.25 % 3.06 % 3.52 % Net interest margin (2) 3.83 % 3.67 % 4.22 % (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) Six Months Ended --------------------------------------------------------------- June 30, 2026 June 30, 2025 ------------------------------ ------------------------------- Average Interest Average Average Interest Average Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ (Dollars in thousands) Balance Paid(3) Rate(4) Balance Paid(3) Rate(4) ----------------------- ----------- -------- ------- ----------- -------- -------- Assets Interest-earnings assets: Loans, gross $ 5,173,415 $180,477 7.03 % $ 4,000,428 $152,793 7.70 % Investment securities
available-for-sale 417,702 12,589 6.08 % 390,233 11,198 5.79 %
Investment securities
held-to-maturity 191,984 4,947 5.20 % 59,028 1,607 5.49 %
Federal funds sold and
other interest-earning
assets 339,200 5,362 3.19 % 178,372 3,830 4.33 %
---------- ------- ---------- -------
Total
interest-earning
assets 6,122,301 203,375 6.70 % 4,628,061 169,428 7.38 %
------- -------
Less: allowance for
credit losses (50,688) (40,613)
---------- ----------
Total interest-earning
assets, net of
allowance 6,071,613 4,587,448
Noninterest-earning
assets 301,164 204,378
---------- ----------
Total assets $ 6,372,777 $ 4,791,826
========== ==========
Liabilities and
Shareholders' Equity
Interest-bearing
liabilities:
Interest-bearing
deposits $ 4,935,861 $ 84,868 3.47 % $ 3,709,721 $ 73,761 4.01 %
Note payable and line
of credit 135,260 4,036 6.02 % 111,687 3,432 6.20 %
FHLB advances and
other 32,394 550 3.42 % 2,735 64 4.72 %
---------- ------- ---------- -------
Total
interest-bearing
liabilities 5,103,515 89,454 3.53 % 3,824,143 77,257 4.07 %
------- -------
Noninterest-bearing
deposits 574,193 427,482
Other liabilities 56,924 58,758
---------- ----------
Total liabilities 5,734,632 4,310,383
Shareholders' equity 638,145 481,443
---------- ----------
Total liabilities
and shareholders'
equity $ 6,372,777 $ 4,791,826
========== ==========
Net interest income $113,921 $ 92,171
======= =======
Net interest spread (1) 3.17 % 3.31 %
Net interest margin (2) 3.75 % 4.02 %
(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) June 30 March 31 31 30 June 30
----------------------- ---------- ---------- ---------- ---------- ----------
Period-end Loan
Portfolio:
Real estate loans:
Commercial real
estate:
Non-farm
non-residential owner
occupied $ 583,989 $ 572,037 $ 434,715 $ 408,996 $ 423,959
Non-farm
non-residential
non-owner occupied 932,147 929,598 710,401 687,924 666,840
Residential 530,189 543,804 333,419 334,583 323,898
Construction,
development & other 887,805 894,767 823,353 826,566 784,364
Farmland 32,898 32,379 26,485 25,549 28,013
Commercial & industrial 2,369,582 2,182,864 1,906,616 1,772,045 1,724,583
Consumer 1,871 2,265 1,576 1,291 1,206
Municipal and other 97,933 93,744 158,186 108,162 126,873
--------- --------- --------- --------- ---------
Total loans $5,436,414 $5,251,458 $4,394,751 $4,165,116 $4,079,736
========= ========= ========= ========= =========
Asset Quality:
Nonaccrual loans $ 21,557 $ 29,222 $ 10,120 $ 10,723 $ 13,358
Loans > 90 days and
still accruing 8,464 6,396 11,360 11,016 6,755
--------- --------- --------- --------- ---------
Total nonperforming
loans 30,021 35,618 21,480 21,739 20,113
Other real estate owned 27,321 8,388 8,388 8,388 8,580
Total nonperforming
assets $ 57,342 $ 44,006 $ 29,868 $ 30,127 $ 28,693
========= ========= ========= ========= =========
QTD Net (recoveries)
charge-offs $ (150) $ (5) $ 844 $ (17) $ 2,376
Nonaccrual loans:
Real estate loans:
Commercial real
estate:
Non-farm
non-residential owner
occupied $ 3,320 $ 618 $ 1,235 $ 1,237 $ 2,191
Non-farm
non-residential
non-owner occupied 5,584 17,140 99 111 111
Residential 198 374 387 214 637
Construction,
development & other - 603 - 6 344
Commercial & industrial 12,455 10,487 8,399 9,155 10,075
Total nonaccrual loans $ 21,557 $ 29,222 $ 10,120 $ 10,723 $ 13,358
========= ========= ========= ========= =========
Asset Quality Ratios:
Nonperforming assets to
total assets 0.85% 0.67% 0.56% 0.60% 0.58%
Nonperforming loans to
total loans 0.55% 0.68% 0.49% 0.52% 0.49%
Allowance for credit
losses to total loans 0.99% 0.98% 1.00% 1.02% 0.98%
QTD Net (recoveries)
charge-offs to average
loans
(annualized) (0.01)% (0.00)% 0.08% (0.00)% 0.24%
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.
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July 22, 2026 16:15 ET