Record Annual Net Income of $66.3 million
Record Annual Diluted Earnings Per Share of $3.79
Year Over Year Book Value grew 16.8% and Tangible Book Value(1) grew 17.7%
HOUSTON, Jan. 21, 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 2025 fourth quarter and full year financial results.
2025 Fourth Quarter Financial Highlights
-- Return on average assets of 1.36% annualized for the fourth quarter of
2025 compared to 1.41% annualized for the third quarter of 2025 and 1.13%
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 to 3.71% for the fourth
quarter of 2024.
-- Net income for the fourth quarter of 2025 totaled $17.9 million, or $1.21
and $1.02 per basic and diluted share, respectively, compared to $18.1
million, or $1.22 and $1.03 per basic and diluted share, respectively,
for the third quarter of 2025 and $13.7 million, or $0.92 and $0.79 per
basic and diluted share, respectively, for the fourth quarter of 2024.
-- Efficiency ratio of 57.90% for the fourth quarter of 2025 compared to
53.03% for the third quarter of 2025 and 58.80% for the fourth quarter of
2024.
-- Gross loans grew to $4.39 billion as of December 31, 2025, from $4.17
billion reported as of September 30, 2025.
-- Book value per share and tangible book value per share(1) increased to
$33.47 and $32.12, respectively, as of December 31, 2025, compared to
$32.25 and $30.91, respectively, as of September 30, 2025 and $28.65 and
$27.29, respectively, as of December 31, 2024.
2025 Full Year Financial and Operational Highlights
-- Net income totaled $66.3 million, or $4.45 and $3.79 per basic and
diluted share, respectively, for the year ended December 31, 2025,
compared to $47.7 million, or $3.14 and $2.78 per basic and diluted share,
respectively, for the year ended December 31, 2024.
-- Total assets increased $398.3 million to $5.34 billion as of December 31,
2025, or 8.1% over the $4.94 billion reported as of December 31, 2024.
-- Gross loans grew $428.3 million to $4.39 billion as of December 31, 2025,
10.8% more than the $3.97 billion reported as of December 31, 2024.
-- Deposits increased $316.4 million to $4.63 billion as of December 31,
2025, or 7.3% over the $4.31 billion reported as of December 31, 2024.
-- 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 $66.3 million and record annual diluted earnings per share of $3.79. It demonstrates our consistent execution and the transformation of our company into a high-performing institution that is doing exactly what we said we would do."
Operating Results
Net Income and Earnings Per Share
Net income totaled $17.9 million for the fourth quarter of 2025, compared to $18.1 million for the third quarter of 2025 and $13.7 million for the fourth quarter of 2024. Net income available to common shareholders totaled $16.7 million for the fourth quarter of 2025, compared to $16.9 million for the third quarter of 2025 and $12.5 million for the fourth quarter of 2024. The quarter-over-quarter decrease from the third 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 and severance expenses, partially offset by an increase in net interest income and an increase in non-margin loan fees. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended December 31, 2025, September 30, 2025 and December 31, 2024.
Basic and diluted earnings per share were $1.21 per share and $1.02 per share, respectively, in the fourth quarter of 2025, compared to $1.22 per share and $1.03 per share, respectively, in the third quarter of 2025 and $0.92 per share and $0.79 per share, respectively, in the fourth quarter of 2024.
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 4.10%, compared to 3.71% for the fourth quarter of 2024. The yield on loans for the fourth quarter of 2025 was 7.52%, compared to 7.79% for the third quarter of 2025 and 7.68% for the fourth quarter of 2024. The cost of interest-bearing deposits for the fourth quarter of 2025 was 3.73%, compared to 3.98% for the third quarter of 2025 and 4.33% for the fourth quarter of 2024.
Net interest income totaled $52.2 million for the fourth quarter of 2025, an increase of 2.7% from $50.8 million for the third quarter of 2025 and an increase of 20.2% from $43.4 million for the fourth quarter of 2024. Interest income totaled $92.1 million for the fourth quarter of 2025, a decrease of 0.4% from $92.5 million for the third quarter of 2025 and an increase of 7.7% from $85.5 million for the fourth quarter of 2024. The quarter-over-quarter increase in net interest income primarily resulted from a decrease in interest expense. Interest expense was $39.9 million for the fourth quarter of 2025, a decrease of $1.8 million, or 4.2%, from $41.7 million for the third quarter of 2025 and a decrease of $2.2 million, or 5.2%, from $42.1 million for the fourth quarter of 2024, primarily resulting from an reduction in rates paid on interest-bearing demand deposits.
Noninterest Income and Noninterest Expense
Noninterest income totaled $4.3 million for the fourth quarter of 2025, compared to $3.6 million for the third quarter of 2025 and $2.9 million for the fourth quarter of 2024. The increase in noninterest income was primarily due to an increase in non-margin loan fees during the fourth quarter of 2025.
Noninterest expense increased to $32.7 million for the fourth quarter of 2025, compared to $28.9 million for the third quarter of 2025 and $27.2 million for the fourth quarter of 2024. The quarter-over-quarter increase in noninterest expense was primarily due to merger-related expenses. During the fourth quarter of 2025, the Company recorded merger-related expenses of $1.0 million in legal and professional expenses. Additionally, the Company recorded $1.5 million in salaries and employee benefits attributable to sign on bonuses and severance expenses during the fourth quarter of 2025. At December 31, 2025, the number of employees was 412, compared to 398 at September 30, 2025.
The efficiency ratio was 57.90% for the fourth quarter of 2025, compared to 53.03% for the third quarter of 2025 and 58.80% for the fourth quarter of 2024.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended December 31, 2025, gross loans increased to $4.39 billion, an increase of $229.6 million, or 5.5%, from $4.17 billion as of September 30, 2025, and an increase of $428.3 million, or 10.8%, from $3.97 billion as of December 31, 2024. Commercial and industrial loans, real estate loans and municipal and other loans accounted for the majority of the loan growth for the fourth quarter of 2025, with commercial and industrial loans increasing $134.6 million, real estate loans increasing $44.8 million and municipal loans increasing $50.0 million from the third quarter of 2025.
Asset Quality
Nonperforming loans at December 31, 2025 were $21.5 million, compared to $21.7 million at September 30, 2025 and $27.9 million at December 31, 2024. As of December 31, 2025, the nonperforming loans to total loans ratio was 0.49%, compared to 0.52% as of September 30, 2025 and 0.70% as of December 31, 2024.
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 provision for credit loss recorded for the third quarter of 2025 was $2.8 million, and the allowance for credit losses of $42.6 million represented 1.02% of the $4.17 billion in gross loans outstanding as of September 30, 2025.
The Company recorded net charge-offs of $844,000 and $879,000 for the three months ended December 31, 2025 and December 31, 2024, respectively. On a full year basis, net charge-offs were $3.6 million and $3.4 million in 2025 and 2024, respectively.
Deposits and Composition
Deposits totaled $4.63 billion as of December 31, 2025, an increase of 5.8% from $4.37 billion as of September 30, 2025, and an increase of 7.3% from $4.31 billion as of December 31, 2024. Noninterest-bearing demand deposits increased from $450.0 million as of September 30, 2025, to $495.0 million as of December 31, 2025 and represented 10.7% and 10.3% of total deposits as of December 31, 2025 and September 30, 2025, respectively. As of December 31, 2025, interest-bearing demand deposits increased $235.5 million, or 7.5%, partially offset by a decrease in time deposits of $25.7 million, or 3.3%, and a decrease in savings accounts of $573,000, or 2.6%, respectively, from September 30, 2025.
The average cost of deposits was 3.33% for the fourth quarter of 2025, representing a 23-basis point decrease from the third quarter of 2025 and a 50-basis point decrease from the fourth quarter of 2024. 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 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, 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 19 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 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 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 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
---------------------------------------------- ----------
December September December
(Dollars in thousands) 31 30 June 30 March 31 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, December September March December December December
except per share data) 31 30 June 30 31 31 31 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 EXPENSE 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
SHAREHOLDERS $ 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 September
share data) December 31 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
Non-Cumulative
Preferred Stock $ 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
equity (A) $(B)$ 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
assets (B) 8.38% 8.51% 8.35% 8.09% 7.63% 8.38% 7.63%
Estimated Common equity
tier 1 (to risk
weighted
assets) 8.65% 8.85% 8.75% 8.70% 8.41% 8.65% 8.41%
Estimated Tier 1 capital
(to risk weighted
assets) 9.97% 10.25% 10.20% 10.19% 9.90% 9.97% 9.90%
Estimated Total capital
(to risk weighted
assets) 12.48% 12.90% 12.87% 12.97% 12.68% 12.48% 12.68%
Estimated Tier 1 capital
(to average
assets) 9.65% 9.55% 9.65% 9.58% 9.12% 9.65% 9.12%
Third Coast Bank:
Estimated Common equity
tier 1 (to risk
weighted
assets) 12.23% 12.59% 12.56% 12.69% 12.35% 12.23% 12.35%
Estimated Tier 1 capital
(to risk weighted
assets) 12.23% 12.59% 12.56% 12.69% 12.35% 12.23% 12.35%
Estimated Total capital
(to risk weighted
assets) 13.14% 13.53% 13.46% 13.63% 13.29% 13.14% 13.29%
Estimated Tier 1 capital
(to average
assets) 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
--------------------------------- --------------------------------- --------------------------------
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 $ 4,294,376 $ 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
assets 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
allowance 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'
equity $ 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
------------------------------ ------------------------------
Average Interest Average Average Interest Average
Outstanding Earned/ Yield/ Outstanding Earned/ Yield/
(Dollars in thousands) Balance Paid(3) Rate Balance Paid(3) Rate
----------------------- ----------- -------- ------- ----------- -------- -------
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
---------------------------------------------------------- ----------
December September December
(Dollars in thousands) 31 30 June 30 March 31 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
(annualized) 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 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 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 September
share data) December 31 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
paid in
capital 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,
net 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
intangibles,
net 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
additional paid
in capital 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
intangibles,
net 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
(END) Dow Jones Newswires
January 21, 2026 16:15 ET (21:15 GMT)