THIRD COAST BANCSHARES, INC. REPORTS 2024 THIRD QUARTER FINANCIAL RESULTS
Third Coast Bancshares (TCBX) reported strong Q3 2024 financial results with record earnings. Net income reached $12.8 million, or $0.85 and $0.74 per basic and diluted share, up from $10.8 million in Q2 2024. The company showed impressive growth with gross loans increasing by $131.7 million to $3.89 billion, a 3.5% increase from Q2. The efficiency ratio improved to 59.57%, and noninterest-bearing deposits grew by $25.3 million to $489.8 million. The net interest margin expanded to 3.73%, while maintaining strong asset quality with nonperforming loans at 0.62% of total loans.
Third Coast Bancshares (TCBX) ha riportato risultati finanziari robusti per il terzo trimestre del 2024, con guadagni record. L'utile netto ha raggiunto 12,8 milioni di dollari, ovvero $0,85 e $0,74 per azione base e diluita, in aumento rispetto a 10,8 milioni di dollari nel secondo trimestre del 2024. L'azienda ha mostrato una crescita impressionante con prestiti lordi aumentati di 131,7 milioni di dollari, arrivando a 3,89 miliardi di dollari, con un incremento del 3,5% rispetto al secondo trimestre. Il rapporto di efficienza è migliorato al 59,57%, e i depositi non fruttiferi sono aumentati di 25,3 milioni di dollari, raggiungendo 489,8 milioni di dollari. Il margine di interesse netto si è espanso al 3,73%, mantenendo al contempo una solida qualità degli attivi, con i prestiti non performanti allo 0,62% dei prestiti totali.
Third Coast Bancshares (TCBX) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ganancias récord. El ingreso neto alcanzó $12.8 millones, o $0.85 y $0.74 por acción básica y diluida, un aumento respecto a $10.8 millones en el segundo trimestre de 2024. La compañía mostró un crecimiento impresionante con préstamos brutos que aumentaron en $131.7 millones, alcanzando $3.89 mil millones, un incremento del 3.5% con respecto al segundo trimestre. El ratio de eficiencia mejoró al 59.57%, y los depósitos no remunerados crecieron en $25.3 millones, alcanzando $489.8 millones. El margen de interés neto se expandió al 3.73%, manteniendo una sólida calidad de activos con préstamos no productivos al 0.62% del total de préstamos.
Third Coast Bancshares (TCBX)는 2024년 3분기에 기록적인 수익을 올리며 강력한 재무 결과를 보고했습니다. 순소득은 1,280만 달러에 달했으며, 기본 및 희석 주당 각각 $0.85 및 $0.74로, 2024년 2분기의 1,080만 달러에서 증가했습니다. 회사는 총 대출이 1억 3,170만 달러 증가하여 39억 8900만 달러에 이르는 인상적인 성장을 보여주었습니다. 효율성 비율은 59.57%로 개선되었고, 이자 없는 예금은 2,530만 달러 증가하여 4억 8,980만 달러에 달했습니다. 순이자 마진은 3.73%로 확대되었으며, 부실 대출 비율은 총 대출의 0.62%로 강력한 자산 품질을 유지했습니다.
Third Coast Bancshares (TCBX) a annoncé des résultats financiers solides pour le troisième trimestre de 2024, avec des bénéfices record. Le bénéfice net a atteint 12,8 millions de dollars, soit 0,85 $ et 0,74 $ par action de base et diluée, en hausse par rapport à 10,8 millions de dollars au deuxième trimestre 2024. L'entreprise a montré une croissance impressionnante avec un augmentation des prêts bruts de 131,7 millions de dollars, atteignant 3,89 milliards de dollars, soit une augmentation de 3,5 % par rapport au deuxième trimestre. Le ratio d'efficacité s'est amélioré à 59,57 %, et les dépôts non rémunérés ont augmenté de 25,3 millions de dollars pour atteindre 489,8 millions de dollars. La marge d'intérêt nette s'est élargie à 3,73 %, tout en maintenant une forte qualité d'actifs avec des prêts non performants représentant 0,62 % des prêts totaux.
Third Coast Bancshares (TCBX) berichtete über starke Finanzergebnisse für das 3. Quartal 2024 mit Rekordgewinnen. Der Nettogewinn erreichte 12,8 Millionen Dollar, oder 0,85 $ und 0,74 $ pro einfacher und verwässerter Aktie, ein Anstieg von 10,8 Millionen Dollar im 2. Quartal 2024. Das Unternehmen zeigte beeindruckendes Wachstum mit einem Anstieg der Bruttodarlehen um 131,7 Millionen Dollar auf 3,89 Milliarden Dollar, was einem Anstieg von 3,5 % im Vergleich zum 2. Quartal entspricht. Das Effizienzverhältnis verbesserte sich auf 59,57 %, und die nicht verzinslichen Einlagen wuchsen um 25,3 Millionen Dollar auf 489,8 Millionen Dollar. Die Nettomarge aus Zinsen weitete sich auf 3,73 % aus, während die Qualität der Vermögenswerte stark blieb, mit notleidenden Krediten von 0,62 % der Gesamtdarlehen.
- Record quarterly earnings with net income of $12.8 million, up from $10.8 million in Q2 2024
- Gross loans grew by $131.7 million (3.5%) to $3.89 billion
- Return on average assets increased to 1.14% from 0.97% in Q2 2024
- Efficiency ratio improved to 59.57% from 61.39% in Q2 2024
- Net interest margin expanded to 3.73% from 3.62% in Q2 2024
- Noninterest-bearing deposits increased by $25.3 million (5.5%)
- Noninterest income decreased from $2.9 million in Q2 to $2.5 million in Q3 2024
- Average cost of deposits remained elevated at 4.18%
Insights
Third Coast Bancshares delivered impressive Q3 2024 results with notable improvements across key metrics. Net income reached
Record Basic EPS of
2024 Third Quarter Financial and Operational Highlights
- Net income totaled
$12.8 million $0.85 $0.74 $10.8 million $0.70 $0.63 - Return on average assets increased to
1.14% annualized compared to0.97% annualized for the second quarter of 2024 and0.56% annualized for the third quarter of 2023. - Efficiency Ratio improved to
59.57% for the third quarter of 2024 from61.39% for the second quarter of 2024. - Gross loans grew
$131.7 million $3.89 billion 3.5% more than the$3.76 billion - Noninterest-bearing demand deposits increased
$25.3 million 5.5% , to$489.8 million $464.5 million 12.3% of total deposits as of September 30, 2024, compared to12.0% of total deposits as of June 30, 2024. - Book value per share and tangible book value per share(1) increased to
$28.13 $26.75 $26.99 $25.60 - Opened our 19th branch location with a de novo branch located in
Houston, Texas .
"We are pleased to report another quarter of record-setting earnings, with diluted earnings per share reaching
"Looking ahead, we remain confident in our ability to deliver high-performing results. Our
____________________________ | |
(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 press release for a reconciliation of these non-GAAP financial measures. |
Operating Results
Net Income and Earnings Per Share
Net income totaled
Basic and diluted earnings per share were
Net Interest Margin and Net Interest Income
The net interest margin for the third quarter of 2024 was
Net interest income totaled
Noninterest Income and Noninterest Expense
Noninterest income totaled
Noninterest expense remained consistent at
The efficiency ratio improved to
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended September 30, 2024, gross loans increased to
Asset Quality
Nonperforming loans at September 30, 2024 were comparable to June 30, 2024 at
The provision for credit loss recorded for the third quarter of 2024 was
The Company recorded net recoveries of
Deposits and Composition
Deposits totaled
The average cost of deposits was
Earnings Conference Call
Third Coast has scheduled a conference call to discuss its 2024 third quarter results, which will be broadcast live over the Internet, on Thursday, October 24, 2024, 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 October 31, 2024, and may be accessed by dialing 201-612-7415 and using passcode 13748897#. Also, an archive of the webcast will be available shortly after the call at https://ir.thirdcoast.bank/events-and-presentations/events/ for 90 days.
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a commercially focused,
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; and changes in key management personnel. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, including Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets and Return on Average Tangible Common Equity, which are supplemental measures that are not required by, or are not presented in accordance with GAAP. Please refer to the table titled "GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures" at the end of this press release for a reconciliation of these non-GAAP financial measures.
Third Coast Bancshares, Inc. and Subsidiary | ||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(Dollars in thousands) | September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash and due from banks | $ | 258,191 | $ | 241,809 | $ | 367,831 | $ | 296,926 | $ | 142,122 | ||||||||||
Federal funds sold | 12,265 | 12,088 | 130,429 | 114,919 | 144,408 | |||||||||||||||
Total cash and cash equivalents | 270,456 | 253,897 | 498,260 | 411,845 | 286,530 | |||||||||||||||
Interest bearing time deposits in other banks | 353 | 350 | - | - | - | |||||||||||||||
Investment securities available-for-sale | 292,104 | 286,167 | 246,291 | 178,087 | 201,035 | |||||||||||||||
Loans held for investment | 3,889,831 | 3,758,159 | 3,746,178 | 3,638,788 | 3,559,953 | |||||||||||||||
Less: allowance for credit losses | (39,683) | (38,211) | (38,140) | (37,022) | (38,067) | |||||||||||||||
Loans, net | 3,850,148 | 3,719,948 | 3,708,038 | 3,601,766 | 3,521,886 | |||||||||||||||
Accrued interest receivable | 26,111 | 27,518 | 25,769 | 23,120 | 22,821 | |||||||||||||||
Premises and equipment, net | 26,696 | 27,626 | 26,844 | 28,554 | 29,010 | |||||||||||||||
Other real estate owned | 283 | - | - | - | - | |||||||||||||||
Bank-owned life insurance | 67,679 | 67,030 | 66,443 | 65,861 | 65,303 | |||||||||||||||
Non-marketable securities, at cost | 24,328 | 16,147 | 16,095 | 16,041 | 15,799 | |||||||||||||||
Deferred tax asset, net | 8,654 | 8,972 | 8,712 | 9,227 | 8,335 | |||||||||||||||
Derivative assets | 5,786 | 7,799 | 11,015 | 8,828 | 10,889 | |||||||||||||||
Right-of-use assets - operating leases | 20,397 | 20,944 | 20,729 | 21,439 | 21,192 | |||||||||||||||
Goodwill and other intangible assets | 18,882 | 18,922 | 18,963 | 19,003 | 19,043 | |||||||||||||||
Other assets | 15,893 | 18,799 | 13,244 | 12,303 | 13,949 | |||||||||||||||
Total assets | $ | 4,627,770 | $ | 4,474,119 | $ | 4,660,403 | $ | 4,396,074 | $ | 4,215,792 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest bearing | $ | 489,822 | $ | 464,498 | $ | 424,019 | $ | 459,553 | $ | 500,187 | ||||||||||
Interest bearing | 3,504,616 | 3,391,093 | 3,626,653 | 3,343,595 | 3,146,635 | |||||||||||||||
Total deposits | 3,994,438 | 3,855,591 | 4,050,672 | 3,803,148 | 3,646,822 | |||||||||||||||
Accrued interest payable | 7,283 | 5,668 | 3,927 | 4,794 | 4,318 | |||||||||||||||
Derivative liabilities | 6,874 | 7,626 | 8,253 | 10,687 | 10,519 | |||||||||||||||
Lease liability - operating leases | 21,412 | 21,919 | 21,647 | 22,280 | 21,958 | |||||||||||||||
Other liabilities | 34,632 | 30,786 | 27,806 | 23,763 | 15,467 | |||||||||||||||
Line of credit - Senior Debt | 31,875 | 36,875 | 43,875 | 38,875 | 35,875 | |||||||||||||||
Note payable - Subordinated Debentures, net | 80,708 | 80,656 | 80,605 | 80,553 | 80,502 | |||||||||||||||
Total liabilities | 4,177,222 | 4,039,121 | 4,236,785 | 3,984,100 | 3,815,461 | |||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Series A Convertible Non-Cumulative Preferred Stock | 69 | 69 | 69 | 69 | 69 | |||||||||||||||
Series B Convertible Perpetual Preferred Stock | - | - | - | - | - | |||||||||||||||
Common stock | 13,746 | 13,744 | 13,731 | 13,683 | 13,679 | |||||||||||||||
Common stock - non-voting | - | - | - | - | - | |||||||||||||||
Additional paid-in capital | 320,871 | 320,496 | 320,077 | 319,613 | 319,134 | |||||||||||||||
Retained earnings | 109,160 | 97,583 | 87,971 | 78,775 | 70,283 | |||||||||||||||
Accumulated other comprehensive income (loss) | 7,801 | 4,205 | 2,869 | 933 | (1,735) | |||||||||||||||
Treasury stock, at cost | (1,099) | (1,099) | (1,099) | (1,099) | (1,099) | |||||||||||||||
Total shareholders' equity | 450,548 | 434,998 | 423,618 | 411,974 | 400,331 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 4,627,770 | $ | 4,474,119 | $ | 4,660,403 | $ | 4,396,074 | $ | 4,215,792 | ||||||||||
Third Coast Bancshares, Inc. and Subsidiary | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | September | June 30 | March 31 | December | September | September | September | ||||||||||||||||||||||
INTEREST INCOME: | |||||||||||||||||||||||||||||
Loans, including fees | $ | 75,468 | $ | 73,103 | $ | 70,671 | $ | 70,325 | $ | 65,380 | $ | 219,242 | $ | 178,586 | |||||||||||||||
Investment securities available-for-sale | 4,532 | 4,491 | 3,093 | 2,746 | 1,990 | 12,116 | 5,567 | ||||||||||||||||||||||
Federal funds sold and other | 2,719 | 3,631 | 5,112 | 3,996 | 2,015 | 11,462 | 5,324 | ||||||||||||||||||||||
Total interest income | 82,719 | 81,225 | 78,876 | 77,067 | 69,385 | 242,820 | 189,477 | ||||||||||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||||||||||||
Deposit accounts | 40,407 | 40,410 | 38,698 | 37,671 | 30,345 | 119,515 | 77,373 | ||||||||||||||||||||||
FHLB advances and other borrowings | 1,929 | 1,957 | 2,099 | 2,065 | 3,772 | 5,985 | 9,910 | ||||||||||||||||||||||
Total interest expense | 42,336 | 42,367 | 40,797 | 39,736 | 34,117 | 125,500 | 87,283 | ||||||||||||||||||||||
Net interest income | 40,383 | 38,858 | 38,079 | 37,331 | 35,268 | 117,320 | 102,194 | ||||||||||||||||||||||
Provision for credit losses | 1,085 | 1,900 | 1,560 | 1,100 | 2,620 | 4,545 | 5,220 | ||||||||||||||||||||||
Net interest income after credit loss expense | 39,298 | 36,958 | 36,519 | 36,231 | 32,648 | 112,775 | 96,974 | ||||||||||||||||||||||
NONINTEREST INCOME: | |||||||||||||||||||||||||||||
Service charges and fees | 2,143 | 1,515 | 1,505 | 850 | 884 | 5,163 | 2,383 | ||||||||||||||||||||||
Earnings on bank-owned life insurance | 649 | 587 | 582 | 559 | 541 | 1,818 | 1,542 | ||||||||||||||||||||||
(Loss) gain on sale of investment securities | (480) | 123 | 157 | 21 | 364 | (200) | 461 | ||||||||||||||||||||||
Gain on sale of SBA loans | - | - | 30 | 326 | 114 | 30 | 114 | ||||||||||||||||||||||
Derivative fees | 101 | 28 | 66 | 358 | 159 | 195 | 405 | ||||||||||||||||||||||
Other | 104 | 635 | 3 | 43 | (196) | 742 | 1,143 | ||||||||||||||||||||||
Total noninterest income | 2,517 | 2,888 | 2,343 | 2,157 | 1,866 | 7,748 | 6,048 | ||||||||||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||||||||||||
Salaries and employee benefits | 15,679 | 15,917 | 16,502 | 16,119 | 17,353 | 48,098 | 46,098 | ||||||||||||||||||||||
Occupancy and equipment expense | 3,229 | 3,146 | 3,045 | 2,875 | 2,925 | 9,420 | 8,410 | ||||||||||||||||||||||
Legal and professional | 1,037 | 1,621 | 1,385 | 2,305 | 2,001 | 4,043 | 5,478 | ||||||||||||||||||||||
Data processing and network expense | 1,608 | 1,046 | 1,418 | 987 | 1,284 | 4,072 | 3,748 | ||||||||||||||||||||||
Regulatory assessments | 1,249 | 1,005 | 980 | 942 | 532 | 3,234 | 1,656 | ||||||||||||||||||||||
Advertising and marketing | 420 | 406 | 355 | 614 | 515 | 1,181 | 2,013 | ||||||||||||||||||||||
Software purchases and maintenance | 854 | 828 | 817 | 839 | 729 | 2,499 | 1,536 | ||||||||||||||||||||||
Loan operations | 227 | 262 | 226 | 134 | 272 | 715 | 539 | ||||||||||||||||||||||
Telephone and communications | 166 | 141 | 134 | 125 | 117 | 441 | 385 | ||||||||||||||||||||||
Other | 1,085 | 1,257 | 1,052 | 1,474 | 1,777 | 3,394 | 3,521 | ||||||||||||||||||||||
Total noninterest expense | 25,554 | 25,629 | 25,914 | 26,414 | 27,505 | 77,097 | 73,384 | ||||||||||||||||||||||
NET INCOME BEFORE INCOME TAX | 16,261 | 14,217 | 12,948 | 11,974 | 7,009 | 43,426 | 29,638 | ||||||||||||||||||||||
Income tax expense | 3,486 | 3,421 | 2,581 | 2,285 | 1,431 | 9,488 | 5,926 | ||||||||||||||||||||||
NET INCOME | 12,775 | 10,796 | 10,367 | 9,689 | 5,578 | 33,938 | 23,712 | ||||||||||||||||||||||
Preferred stock dividends declared | 1,198 | 1,184 | 1,171 | 1,197 | 1,184 | 3,553 | 3,539 | ||||||||||||||||||||||
NET INCOME AVAILABLE TO COMMON | $ | 11,577 | $ | 9,612 | $ | 9,196 | $ | 8,492 | $ | 4,394 | $ | 30,385 | $ | 20,173 | |||||||||||||||
EARNINGS PER COMMON SHARE: | |||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.85 | $ | 0.70 | $ | 0.68 | $ | 0.62 | $ | 0.32 | $ | 2.23 | $ | 1.49 | |||||||||||||||
Diluted earnings per share | $ | 0.74 | $ | 0.63 | $ | 0.61 | $ | 0.57 | $ | 0.32 | $ | 1.99 | $ | 1.41 | |||||||||||||||
Third Coast Bancshares, Inc. and Subsidiary | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||
(Dollars in thousands, except share | September | June 30 | March 31 | December | September | September | September | ||||||||||||||||||||||
Earnings per share, basic | $ | 0.85 | $ | 0.70 | $ | 0.68 | $ | 0.62 | $ | 0.32 | $ | 2.23 | $ | 1.49 | |||||||||||||||
Earnings per share, diluted | $ | 0.74 | $ | 0.63 | $ | 0.61 | $ | 0.57 | $ | 0.32 | $ | 1.99 | $ | 1.41 | |||||||||||||||
Dividends on common stock | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
Dividends on Series A Convertible | $ | 17.25 | $ | 17.06 | $ | 16.88 | $ | 17.25 | $ | 17.06 | $ | 51.19 | $ | 51.00 | |||||||||||||||
Return on average assets (A) | 1.14 | % | 0.97 | % | 0.95 | % | 0.90 | % | 0.56 | % | 1.02 | % | 0.84 | % | |||||||||||||||
Return on average common equity (A) | 12.12 | % | 10.53 | % | 10.44 | % | 9.86 | % | 5.19 | % | 11.05 | % | 8.24 | % | |||||||||||||||
Return on average tangible common | 12.76 | % | 11.10 | % | 11.03 | % | 10.44 | % | 5.50 | % | 11.65 | % | 8.75 | % | |||||||||||||||
Net interest margin (A) (C) | 3.73 | % | 3.62 | % | 3.60 | % | 3.61 | % | 3.71 | % | 3.65 | % | 3.77 | % | |||||||||||||||
Efficiency ratio (D) | 59.57 | % | 61.39 | % | 64.11 | % | 66.89 | % | 74.07 | % | 61.64 | % | 67.80 | % | |||||||||||||||
Capital Ratios | |||||||||||||||||||||||||||||
Third Coast Bancshares, Inc. | |||||||||||||||||||||||||||||
Total common equity to total assets | 8.31 | % | 8.24 | % | 7.67 | % | 7.86 | % | 7.93 | % | 8.31 | % | 7.93 | % | |||||||||||||||
Tangible common equity to tangible | 7.93 | % | 7.85 | % | 7.29 | % | 7.46 | % | 7.51 | % | 7.93 | % | 7.51 | % | |||||||||||||||
Common equity tier 1 (to risk weighted | 8.38 | % | 8.29 | % | 7.97 | % | 8.06 | % | 8.01 | % | 8.38 | % | 8.01 | % | |||||||||||||||
Tier 1 capital (to risk weighted assets) | 9.93 | % | 9.88 | % | 9.54 | % | 9.70 | % | 9.68 | % | 9.93 | % | 9.68 | % | |||||||||||||||
Total capital (to risk weighted assets) | 12.80 | % | 12.78 | % | 12.41 | % | 12.66 | % | 12.72 | % | 12.80 | % | 12.72 | % | |||||||||||||||
Tier 1 capital (to average assets) | 9.53 | % | 9.24 | % | 9.15 | % | 9.23 | % | 9.79 | % | 9.53 | % | 9.79 | % | |||||||||||||||
Third Coast Bank: | |||||||||||||||||||||||||||||
Common equity tier 1 (to risk weighted | 12.45 | % | 12.52 | % | 12.32 | % | 12.52 | % | 12.48 | % | 12.45 | % | 12.48 | % | |||||||||||||||
Tier 1 capital (to risk weighted assets) | 12.45 | % | 12.52 | % | 12.32 | % | 12.52 | % | 12.48 | % | 12.45 | % | 12.48 | % | |||||||||||||||
Total capital (to risk weighted assets) | 13.42 | % | 13.49 | % | 13.28 | % | 13.49 | % | 13.49 | % | 13.42 | % | 13.49 | % | |||||||||||||||
Tier 1 capital (to average assets) | 11.95 | % | 11.71 | % | 11.81 | % | 11.91 | % | 12.62 | % | 11.95 | % | 12.62 | % | |||||||||||||||
Other Data | |||||||||||||||||||||||||||||
Weighted average shares: | |||||||||||||||||||||||||||||
Basic | 13,665,400 | 13,657,223 | 13,606,256 | 13,603,149 | 13,608,718 | 13,643,042 | 13,576,949 | ||||||||||||||||||||||
Diluted | 17,184,991 | 17,018,680 | 16,936,003 | 16,890,381 | 13,873,187 | 17,046,640 | 16,872,035 | ||||||||||||||||||||||
Period end shares outstanding | 13,667,591 | 13,665,505 | 13,652,888 | 13,604,665 | 13,600,211 | 13,667,591 | 13,600,211 | ||||||||||||||||||||||
Book value per share | $ | 28.13 | $ | 26.99 | $ | 26.18 | $ | 25.41 | $ | 24.57 | $ | 28.13 | $ | 24.57 | |||||||||||||||
Tangible book value per share (B) | $ | 26.75 | $ | 25.60 | $ | 24.79 | $ | 24.02 | $ | 23.17 | $ | 26.75 | $ | 23.17 | |||||||||||||||
___________ |
(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 on pages 11 and 12 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 | ||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Interest-earnings assets: | ||||||||||||||||||||||||||||||
Investment securities | $ | 300,969 | $ | 4,532 | 5.99 % | $ | 297,653 | $ | 4,491 | 6.07 % | $ | 198,305 | $ | 1,990 | 3.98 % | |||||||||||||||
Loans, gross | 3,801,954 | 75,468 | 7.90 % | 3,740,544 | 73,103 | 7.86 % | 3,424,738 | 65,380 | 7.57 % | |||||||||||||||||||||
Federal funds sold and other | 209,841 | 2,719 | 5.15 % | 277,144 | 3,631 | 5.27 % | 146,965 | 2,015 | 5.44 % | |||||||||||||||||||||
Total interest-earning assets | 4,312,764 | 82,719 | 7.63 % | 4,315,341 | 81,225 | 7.57 % | 3,770,008 | 69,385 | 7.30 % | |||||||||||||||||||||
Less allowance for loan losses | (38,425) | (38,429) | (37,421) | |||||||||||||||||||||||||||
Total interest-earning assets, net of | 4,274,339 | 4,276,912 | 3,732,587 | |||||||||||||||||||||||||||
Noninterest-earning assets | 195,681 | 195,193 | 190,670 | |||||||||||||||||||||||||||
Total assets | $ | 4,470,020 | $ | 4,472,105 | $ | 3,923,257 | ||||||||||||||||||||||||
Liabilities and Shareholders' | ||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 3,383,897 | $ | 40,407 | 4.75 % | $ | 3,411,592 | $ | 40,410 | 4.76 % | $ | 2,756,305 | $ | 30,345 | 4.37 % | |||||||||||||||
Note payable and line of credit | 113,536 | 1,853 | 6.49 % | 121,275 | 1,957 | 6.49 % | 112,765 | 1,919 | 6.75 % | |||||||||||||||||||||
FHLB advances | 5,757 | 76 | 5.25 % | — | — | — | 129,585 | 1,853 | 5.67 % | |||||||||||||||||||||
Total interest-bearing liabilities | 3,503,190 | 42,336 | 4.81 % | 3,532,867 | 42,367 | 4.82 % | 2,998,655 | 34,117 | 4.51 % | |||||||||||||||||||||
Noninterest-bearing deposits | 457,451 | 442,672 | 473,282 | |||||||||||||||||||||||||||
Other liabilities | 63,255 | 63,056 | 49,271 | |||||||||||||||||||||||||||
Total liabilities | 4,023,896 | 4,038,595 | 3,521,208 | |||||||||||||||||||||||||||
Shareholders' equity | 446,124 | 433,510 | 402,049 | |||||||||||||||||||||||||||
Total liabilities and shareholders' | $ | 4,470,020 | $ | 4,472,105 | $ | 3,923,257 | ||||||||||||||||||||||||
Net interest income | $ | 40,383 | $ | 38,858 | $ | 35,268 | ||||||||||||||||||||||||
Net interest spread (1) | 2.82 % | 2.75 % | 2.79 % | |||||||||||||||||||||||||||
Net interest margin (2) | 3.73 % | 3.62 % | 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 | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
September 30, 2024 | September 30, 2023 | |||||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Average | Interest | Average | ||||||||||||||
Assets | ||||||||||||||||||||
Interest-earnings assets: | ||||||||||||||||||||
Investment securities | $ | 267,091 | $ | 12,116 | 6.06 % | $ | 195,234 | $ | 5,567 | 3.81 % | ||||||||||
Loans, gross | 3,736,200 | 219,242 | 7.84 % | 3,287,053 | 178,586 | 7.26 % | ||||||||||||||
Federal funds sold and other interest-earning | 290,011 | 11,462 | 5.28 % | 142,224 | 5,324 | 5.00 % | ||||||||||||||
Total interest-earning assets | 4,293,302 | 242,820 | 7.55 % | 3,624,511 | 189,477 | 6.99 % | ||||||||||||||
Less allowance for loan losses | (38,045) | (36,236) | ||||||||||||||||||
Total interest-earning assets, net of allowance | 4,255,257 | 3,588,275 | ||||||||||||||||||
Noninterest-earning assets | 194,650 | 186,443 | ||||||||||||||||||
Total assets | $ | 4,449,907 | $ | 3,774,718 | ||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest-bearing deposits | $ | 3,380,790 | $ | 119,515 | 4.72 % | $ | 2,645,127 | $ | 77,373 | 3.91 % | ||||||||||
Note payable and line of credit | 118,547 | 5,909 | 6.66 % | 111,777 | 5,592 | 6.69 % | ||||||||||||||
FHLB advances and other | 1,933 | 76 | 5.25 % | 106,353 | 4,318 | 5.43 % | ||||||||||||||
Total interest-bearing liabilities | 3,501,270 | 125,500 | 4.79 % | 2,863,257 | 87,283 | 4.08 % | ||||||||||||||
Noninterest-bearing deposits | 452,411 | 473,834 | ||||||||||||||||||
Other liabilities | 62,753 | 44,025 | ||||||||||||||||||
Total liabilities | 4,016,434 | 3,381,116 | ||||||||||||||||||
Shareholders' equity | 433,473 | 393,602 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,449,907 | $ | 3,774,718 | ||||||||||||||||
Net interest income | $ | 117,320 | $ | 102,194 | ||||||||||||||||
Net interest spread (1) | 2.76 % | 2.91 % | ||||||||||||||||||
Net interest margin (2) | 3.65 % | 3.77 % | ||||||||||||||||||
___________ |
(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 | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||
(Dollars in thousands) | September | June 30 | March 31 | December 31 | September 30 | ||||||||||||||||
Period-end Loan Portfolio: | |||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Non-farm non-residential owner occupied | $ | 470,222 | $ | 499,941 | $ | 510,266 | $ | 520,822 | $ | 517,917 | |||||||||||
Non-farm non-residential non-owner occupied | 611,617 | 612,268 | 598,311 | 586,626 | 566,973 | ||||||||||||||||
Residential | 339,558 | 349,461 | 345,890 | 342,589 | 326,354 | ||||||||||||||||
Construction, development & other | 825,302 | 756,646 | 725,176 | 693,553 | 655,822 | ||||||||||||||||
Farmland | 35,650 | 31,049 | 29,706 | 30,396 | 30,646 | ||||||||||||||||
Commercial & industrial | 1,499,302 | 1,361,401 | 1,350,289 | 1,263,077 | 1,288,320 | ||||||||||||||||
Consumer | 2,002 | 2,216 | 2,382 | 2,555 | 2,665 | ||||||||||||||||
Municipal and other | 106,178 | 145,177 | 184,158 | 199,170 | 171,256 | ||||||||||||||||
Total loans | $ | 3,889,831 | $ | 3,758,159 | $ | 3,746,178 | $ | 3,638,788 | $ | 3,559,953 | |||||||||||
Asset Quality: | |||||||||||||||||||||
Nonaccrual loans | $ | 23,522 | $ | 23,910 | $ | 18,130 | $ | 16,649 | $ | 13,963 | |||||||||||
Loans > 90 days and still accruing | 522 | 507 | 3,614 | 670 | 2,442 | ||||||||||||||||
Total nonperforming loans | 24,044 | 24,417 | 21,744 | 17,319 | 16,405 | ||||||||||||||||
Other real estate owned | 283 | - | - | - | - | ||||||||||||||||
Total nonperforming assets | $ | 24,327 | $ | 24,417 | $ | 21,744 | $ | 17,319 | $ | 16,405 | |||||||||||
QTD Net charge-offs (recoveries) | $ | (57) | $ | 1,829 | $ | 742 | $ | 1,505 | $ | 24 | |||||||||||
Nonaccrual loans: | |||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Non-farm non-residential owner occupied | $ | 9,696 | $ | 10,051 | $ | 2,369 | $ | 1,211 | $ | 978 | |||||||||||
Non-farm non-residential non-owner occupied | 68 | 74 | 1,225 | 1,235 | 1,235 | ||||||||||||||||
Residential | 2,664 | 2,767 | 2,837 | 2,938 | 3,058 | ||||||||||||||||
Construction, development & other | 1 | 301 | 406 | 247 | 567 | ||||||||||||||||
Commercial & industrial | 11,093 | 10,717 | 11,293 | 11,018 | 8,125 | ||||||||||||||||
Total nonaccrual loans | $ | 23,522 | $ | 23,910 | $ | 18,130 | $ | 16,649 | $ | 13,963 | |||||||||||
Asset Quality Ratios: | |||||||||||||||||||||
Nonperforming assets to total assets | 0.53 | % | 0.55 | % | 0.47 | % | 0.39 | % | 0.39 | % | |||||||||||
Nonperforming loans to total loans | 0.62 | % | 0.65 | % | 0.58 | % | 0.48 | % | 0.46 | % | |||||||||||
Allowance for credit losses to total loans | 1.02 | % | 1.02 | % | 1.02 | % | 1.02 | % | 1.07 | % | |||||||||||
QTD Net charge-offs (recoveries) to average loans | (0.01) | % | 0.20 | % | 0.08 | % | 0.17 | % | 0.00 | % | |||||||||||
Third Coast Bancshares, Inc. and Subsidiary
GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
(unaudited)
Our accounting and reporting policies conform to GAAP (generally accepted accounting principles) and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional financial measures discussed in this earnings release as being non-GAAP financial measures. Specifically, we review Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Return on Average Tangible Common Equity for internal planning and forecasting purposes. We classify a financial measure as a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are not included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in
The non-GAAP financial measures that we discuss in this earnings release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this earnings release may differ from that of other companies reporting measures with similar names. It is important to understand how other banking organizations calculate their financial measures with names similar to the non-GAAP financial measures we have discussed in this earnings release when comparing such non-GAAP financial measures.
Management believes the following non-GAAP financial measures assist investors in understanding the financial condition of the company:
- Tangible Common Equity. The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity.
- Tangible Book Value Per Share. The most directly comparable GAAP financial measure for tangible book value per share is book value per share. We believe that the tangible book value per share measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value.
- Tangible Common Equity to Tangible Assets. The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity, the most directly comparable GAAP financial measure for tangible assets is total assets, and the most directly comparable GAAP financial measure for tangible common equity to tangible assets is total shareholders' equity to total assets. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity to tangible assets, each exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing both total shareholders' equity and assets while not increasing our tangible common equity or tangible assets.
- Return on Average Tangible Common Equity. The most directly comparable GAAP financial measure for average tangible common equity is average shareholders' equity, and the most directly comparable GAAP financial measure for return on average tangible common equity is return on average common equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of return on average tangible common equity, exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing average shareholders' equity while not increasing our tangible common equity.
The calculations of these non-GAAP financial measures are as follows:
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||
(Dollars in thousands, except share and per | September | June 30 | March 31 | December | September | September | September | |||||||||||||||||||||
Tangible Common Equity: | ||||||||||||||||||||||||||||
Total shareholders' equity | $ | 450,548 | $ | 434,998 | $ | 423,618 | $ | 411,974 | $ | 400,331 | $ | 450,548 | $ | 400,331 | ||||||||||||||
Less: Preferred stock including additional | 66,117 | 66,225 | 66,225 | 66,225 | 66,225 | 66,117 | 66,225 | |||||||||||||||||||||
Total common equity | 384,431 | 368,773 | 357,393 | 345,749 | 334,106 | 384,431 | 334,106 | |||||||||||||||||||||
Less: Goodwill and core deposit intangibles, | 18,882 | 18,922 | 18,963 | 19,003 | 19,043 | 18,882 | 19,043 | |||||||||||||||||||||
Tangible common equity | $ | 365,549 | $ | 349,851 | $ | 338,430 | $ | 326,746 | $ | 315,063 | $ | 365,549 | $ | 315,063 | ||||||||||||||
Common shares outstanding at end of period | 13,667,591 | 13,665,505 | 13,652,888 | 13,604,665 | 13,600,211 | 13,667,591 | 13,600,211 | |||||||||||||||||||||
Book Value Per Share | $ | 28.13 | $ | 26.99 | $ | 26.18 | $ | 25.41 | $ | 24.57 | $ | 28.13 | $ | 24.57 | ||||||||||||||
Tangible Book Value Per Share | $ | 26.75 | $ | 25.60 | $ | 24.79 | $ | 24.02 | $ | 23.17 | $ | 26.75 | $ | 23.17 | ||||||||||||||
Tangible Assets: | ||||||||||||||||||||||||||||
Total assets | $ | 4,627,770 | $ | 4,474,119 | $ | 4,660,403 | $ | 4,396,074 | $ | 4,215,792 | $ | 4,627,770 | $ | 4,215,792 | ||||||||||||||
Adjustments: Goodwill and core deposit | 18,882 | 18,922 | 18,963 | 19,003 | 19,043 | 18,882 | 19,043 | |||||||||||||||||||||
Tangible assets | $ | 4,608,888 | $ | 4,455,197 | $ | 4,641,440 | $ | 4,377,071 | $ | 4,196,749 | $ | 4,608,888 | $ | 4,196,749 | ||||||||||||||
Total Common Equity to Total Assets | 8.31 | % | 8.24 | % | 7.67 | % | 7.86 | % | 7.93 | % | 8.31 | % | 7.93 | % | ||||||||||||||
Tangible Common Equity to Tangible Assets | 7.93 | % | 7.85 | % | 7.29 | % | 7.46 | % | 7.51 | % | 7.93 | % | 7.51 | % | ||||||||||||||
Average Tangible Common Equity: | ||||||||||||||||||||||||||||
Average shareholders' equity | $ | 446,124 | $ | 433,510 | $ | 420,646 | $ | 407,972 | $ | 402,049 | $ | 433,473 | $ | 393,602 | ||||||||||||||
Less: Average preferred stock including | 66,223 | 66,225 | 66,225 | 66,225 | 66,225 | 66,224 | 66,225 | |||||||||||||||||||||
Average common equity | 379,901 | 367,285 | 354,421 | 341,747 | 335,824 | 367,249 | 327,377 | |||||||||||||||||||||
Less: Average goodwill and core deposit | 18,906 | 18,946 | 18,987 | 19,027 | 19,068 | 18,946 | 19,108 | |||||||||||||||||||||
Average tangible common equity | $ | 360,995 | $ | 348,339 | $ | 335,434 | $ | 322,720 | $ | 316,756 | $ | 348,303 | $ | 308,269 | ||||||||||||||
Net Income | $ | 12,775 | $ | 10,796 | $ | 10,367 | $ | 9,689 | $ | 5,578 | $ | 33,938 | $ | 23,712 | ||||||||||||||
Less: Dividends declared on preferred stock | 1,198 | 1,184 | 1,171 | 1,197 | 1,184 | 3,553 | 3,539 | |||||||||||||||||||||
Net Income Available to Common | $ | 11,577 | $ | 9,612 | $ | 9,196 | $ | 8,492 | $ | 4,394 | $ | 30,385 | $ | 20,173 | ||||||||||||||
Return on Average Common Equity(A) | 12.12 | % | 10.53 | % | 10.44 | % | 9.86 | % | 5.19 | % | 11.05 | % | 8.24 | % | ||||||||||||||
Return on Average Tangible Common | 12.76 | % | 11.10 | % | 11.03 | % | 10.44 | % | 5.50 | % | 11.65 | % | 8.75 | % | ||||||||||||||
___________ |
(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-2024-third-quarter-financial-results-302284912.html
SOURCE Third Coast Bancshares
FAQ
What was Third Coast Bancshares (TCBX) earnings per share in Q3 2024?
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