Third Coast Bancshares, Inc. Reports 2025 Third Quarter Financial Results

Rhea-AI Summary

Third Coast Bancshares (NYSE:TCBX) reported record third quarter 2025 results: net income $18.1M, basic EPS $1.22 and diluted EPS $1.03. Return on average assets was 1.41% annualized and net interest margin was 4.10%. Gross loans rose to $4.17B and deposits to $4.37B. Efficiency ratio improved to 53.03% and book value per share increased to $32.25 (tangible book value $30.91). Provision for credit losses was $2.8M and allowance for credit losses was $42.6M (1.02% of loans). The company completed a transfer of its common stock listing to the New York Stock Exchange and NYSE Texas.

Positive

• Record basic EPS of $1.22 in Q3 2025
• Net income +41.4% YoY to $18.1M (Q3 2024 $12.8M)
• Gross loans +7.1% YoY to $4.17B (Sept 30, 2025)
• Deposits +9.5% YoY to $4.37B (Sept 30, 2025)
• Efficiency ratio improved to 53.03% from 59.57% YoY
• Tangible book value per share +15.6% YoY to $30.91

Negative

• Provision for credit losses increased to $2.8M in Q3 2025 from $2.1M in Q2 2025
• Increase in >90-days-past-due loans of ~$4.3M, driven by four borrowers totaling ~$3.9M

Insights

Bank Financial Analyst

Third Coast delivered record quarterly EPS, asset and deposit growth with improving efficiency and stable asset quality.

The company reported net income of $18.1 million and record basic EPS of $1.22 ($1.03 diluted) for the third quarter, driven by higher net interest income of $50.8 million and loan growth to $4.17 billion. The net interest margin was 4.10% while the efficiency ratio improved to 53.03%, indicating the franchise is generating more income per dollar of expense.

Key dependencies and risks include credit trends and funding costs. Nonperforming loans were $21.7 million (nonperforming loans-to-loans ratio 0.52%) and the allowance covered 1.02% of loans; the company increased the provision to $2.8 million this quarter. The average cost of deposits eased to 3.56%, which supports margins but remains a material sensitivity to interest-rate moves and deposit behavior.

Watchables over the next 1-4 quarters: quarterly loan growth and composition (commercial and real estate growth currently driving gains), changes in provision expense and nonperforming loan movements (notably the four borrowers noted totaling about $3.9 million), and any shifts in deposit costs that would affect net interest margin. The recent transfer of listing to the New York Stock Exchange and NYSE Texas may affect liquidity and investor visibility in the near term.

10/22/2025 - 04:15 PM

Record EPS of $1.22 and Diluted EPS of $1.03 in Latest Quarterly Results

HOUSTON, Oct. 22, 2025 /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 third quarter financial results.

Financial Highlights

• Return on average assets of 1.41% annualized for the third quarter of 2025 compared to 1.38% annualized for the second quarter of 2025 and 1.14% annualized for the third quarter of 2024.
• Net interest margin of 4.10% for the third quarter of 2025 compared to 4.22% for the second quarter of 2025 and 3.73% for the third quarter of 2024.
• Net income for the third quarter of 2025 totaled $18.1 million, or $1.22 and $1.03 per basic and diluted share, respectively, compared to $16.7 million, or $1.12 and $0.96 per basic and diluted share, respectively, for the second quarter of 2025 and $12.8 million, or $0.85 and $0.74 per basic and diluted share, respectively, for the third quarter of 2024.
• Efficiency ratio continues to improve from 55.45% for the second quarter of 2025 to 53.03% for the third quarter of 2025.
• Gross loans grew to $4.17 billion as of September 30, 2025, from $4.08 billion reported as of June 30, 2025.
• Book value per share and tangible book value per share⁽¹⁾ increased to $32.25 and $30.91, respectively, as of September 30, 2025, compared to $31.04 and $29.69, respectively, as of June 30, 2025 and $28.13 and $26.75, respectively, as of September 30, 2024.
• Transfer of listing of common stock to the New York Stock Exchange and NYSE Texas.

(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.

Bart Caraway, Founder, Chairman, President & CEO of Third Coast, said, "This was a defining quarter for TCBX, showcasing our team's relentless focus through the Company's outstanding achievements and financial performance. The recent transfer of our stock to both the New York Stock Exchange and NYSE Texas signifies a strategic transition designed to boost market visibility and offer shareholders increased liquidity. Our total assets, loans, and deposits grew steadily, a true testament to our relationship-banking strategy. By optimizing operating leverage, we not only increased interest and non-interest income but also maintained stable expenses. Our unwavering commitment to delivering exceptional value is highlighted by our record-breaking earnings per share and enhanced returns on average assets. The results of this quarter vibrantly demonstrate the long-standing commitment and passion of the entire TCBX team."

Operating Results

Net Income and Earnings Per Share

Net income totaled $18.1 million for the third quarter of 2025, compared to $16.7 million for the second quarter of 2025 and $12.8 million for the third quarter of 2024. Net income available to common shareholders totaled $16.9 million for the third quarter of 2025, compared to $15.6 million for the second quarter of 2025 and $11.6 million for the third quarter of 2024. The quarter-over-quarter increase was primarily due to an increase in net interest income and an increase in non-margin loan fees, partially offset by an increase in provision for credit losses. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended September 30, 2025 and June 30, 2025.

Basic and diluted earnings per share were $1.22 per share and $1.03 per share, respectively, in the third quarter of 2025, compared to $1.12 per share and $0.96 per share, respectively, in the second quarter of 2025 and $0.85 per share and $0.74 per share, respectively, in the third quarter of 2024.

Net Interest Margin and Net Interest Income

The net interest margin for the third quarter of 2025 was 4.10%, compared to 4.22% for the second quarter of 2025 and 3.73% for the third quarter of 2024. The yield on loans for the third quarter of 2025 was 7.79%, compared to 7.95% for the second quarter of 2025 and 7.90% for the third quarter of 2024. The cost of interest-bearing deposits for the third quarter of 2025 was 3.98%, compared to 4.00% for the second quarter of 2025 and 4.75% for the third quarter of 2024.

Net interest income totaled $50.8 million for the third quarter of 2025, an increase of 3.0% from $49.4 million for the second quarter of 2025 and an increase of 25.9% from $40.4 million for the third quarter of 2024. Interest income totaled $92.5 million for the third quarter of 2025, an increase of 4.3% from $88.7 million for the second quarter of 2025 and an increase of 11.8% from $82.7 million for the third quarter of 2024. The quarter-over-quarter increase in net interest income primarily resulted from an increase in loans and the purchase of investment securities. Interest expense was $41.7 million for the third quarter of 2025, an increase of $2.4 million, or 6.0%, from $39.3 million for the second quarter of 2025 and a decrease of $682,000, or 1.6%, from $42.3 million for the third quarter of 2024, primarily resulting from an increase in interest-bearing deposits.

Noninterest Income and Noninterest Expense

Noninterest income totaled $3.6 million for the third quarter of 2025, compared to $2.7 million for the second quarter of 2025 and $2.5 million for the third quarter of 2024. The increase in noninterest income was primarily due to an increase in loan fees during the third quarter of 2025.

Noninterest expense increased to $28.9 million for the third quarter of 2025, compared to $28.8 million for the second quarter of 2025 and $25.6 million for the third quarter of 2024. The quarter-over-quarter increase in noninterest expense was primarily due to an increase in salaries and employee benefits, offset by a decrease in legal and professional expenses and a decrease in loan operations and other real estate owned expenses compared to the second quarter of 2025. At September 30, 2025, the number of employees was 398, compared to 388 at June 30, 2025.

The efficiency ratio was 53.03% for the third quarter of 2025, compared to 55.45% for the second quarter of 2025 and 59.57% for the third quarter of 2024.

Balance Sheet Highlights

Loan Portfolio and Composition

For the quarter ended September 30, 2025, gross loans increased to $4.17 billion, an increase of $85.4 million, or 2.1%, from $4.08 billion as of June 30, 2025, and an increase of $275.3 million, or 7.1%, from $3.89 billion as of September 30, 2024. Commercial and industrial loans and real estate loans accounted for the majority of the loan growth for the third quarter of 2025, offset by slight decreases in municipal and other loans from the second quarter of 2025.

Asset Quality

Nonperforming loans at September 30, 2025 were $21.7 million, compared to $20.1 million at June 30, 2025 and $24.0 million at September 30, 2024. As of September 30, 2025, the nonperforming loans to total loans ratio was 0.52%, compared to 0.49% as of June 30, 2025 and 0.62% as of September 30, 2024. The increase in nonperforming loans during the third quarter of 2025 was due to an increase in loans greater than 90 days past due and still accruing which increased by approximately $4.3 million, primarily due to four borrowers totaling approximately $3.9 million. Of the four borrowers, one totaling $1.1 million has a 75% SBA guaranty, two totaling $2.4 million are well secured and in the process of renewal, and one is a mortgage loan that is in modification. This increase was partially offset by a decline in nonaccrual loans of $2.6 million, which was primarily attributed to $2.0 million in payoffs and paydowns, the placement of a $337,000 loan placed back on accrual, and a $233,000 foreclosure.

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 provision for credit loss recorded for the second quarter of 2025 was $2.1 million, and the allowance for credit losses of $40.0 million represented 0.98% of the $4.08 billion in gross loans outstanding as of June 30, 2025.

The Company recorded net recoveries of $17,000 and $57,000 for the three months ended September 30, 2025 and September 30, 2024, respectively.

Deposits and Composition

Deposits totaled $4.37 billion as of September 30, 2025, an increase of 2.1% from $4.28 billion as of June 30, 2025, and an increase of 9.5% from $3.99 billion as of September 30, 2024. Noninterest-bearing demand deposits increased from $441.0 million as of June 30, 2025, to $450.0 million as of September 30, 2025 and represented 10.3% of total deposits as of both September 30, 2025 and June 30, 2025. As of September 30, 2025, interest-bearing demand deposits increased $91.6 million, or 3.0%, partially offset by a decrease in time deposits of $7.8 million, or 1.0%, and a decrease in savings accounts of $919,000, or 4.0%, respectively, from June 30, 2025.

The average cost of deposits was 3.56% for the third quarter of 2025, representing a 3-basis point decrease from the second quarter of 2025 and a 62-basis point decrease from the third quarter of 2024. The decreases were 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 third quarter results, which will be broadcast live over the Internet, on Thursday, October 23, 2025, 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 30, 2025, and may be accessed by dialing 201-612-7415 and using passcode 13752288#. 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; 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, 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.

Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
		2025												2024
(Dollars in thousands)		September 30				June 30				March 31				December 31				September 30
ASSETS
Cash and cash equivalents:
Cash and due from banks		$	116,383			$	113,141			$	218,990			$	371,157			$	258,191
Federal funds sold			6,629				5,815				110,379				50,045				12,265
Total cash and cash equivalents			123,012				118,956				329,369				421,202				270,456
Interest bearing time deposits in other banks			265				262				359				356				353
Investment securities available-for-sale			376,719				355,753				397,442				384,025				292,104
Investment securities held to maturity			206,037				206,065				-				-				-
Loans held for investment			4,165,116				4,079,736				3,988,039				3,966,425				3,889,831
Less:  allowance for credit losses			(42,563)				(40,035)				(40,456)				(40,304)				(39,683)
Loans held for investment, net			4,122,553				4,039,701				3,947,583				3,926,121				3,850,148
Accrued interest receivable			29,537				27,736				26,752				25,820				26,111
Premises and equipment, net			24,718				24,908				25,669				26,230				26,696
Bank-owned life insurance			75,547				74,761				74,018				68,341				67,679
Non-marketable securities, at cost			26,157				18,761				15,994				15,980				24,328
Deferred tax asset, net			6,989				8,646				9,176				11,445				8,654
Derivative assets			2,803				3,059				3,052				6,479				5,786
Right-of-use assets - operating leases			17,677				18,769				19,370				19,863				20,397
Goodwill and other intangible assets			18,720				18,761				18,801				18,841				18,882
Other assets			31,074				27,633				29,404				17,743				16,176
Total assets		$	5,061,808			$	4,943,771			$	4,896,989			$	4,942,446			$	4,627,770
LIABILITIES
Deposits:
Noninterest bearing		$	450,013			$	440,964			$	448,542			$	602,082			$	489,822
Interest bearing			3,922,728				3,839,905				3,800,001				3,708,416				3,504,616
Total deposits			4,372,741				4,280,869				4,248,543				4,310,498				3,994,438
Accrued interest payable			7,153				6,691				7,044				6,281				7,283
Derivative liabilities			3,521				3,779				3,527				8,660				6,874
Lease liability - operating leases			18,735				19,835				20,425				20,900				21,412
Other liabilities			32,040				24,745				25,979				23,754				34,632
Line of credit - Senior Debt			32,875				30,875				30,875				30,875				31,875
Note payable - Subordinated Debentures, net			80,913				80,862				80,810				80,759				80,708
Total liabilities			4,547,978				4,447,656				4,417,203				4,481,727				4,177,222
SHAREHOLDERS' EQUITY
Series A Convertible Non-Cumulative Preferred Stock			69				69				69				69				69
Series B Convertible Perpetual Preferred Stock			-				-				-				-				-
Common stock			13,958				13,930				13,904				13,848				13,746
Common stock - non-voting			-				-				-				-				-
Additional paid-in capital			323,491				322,972				322,456				321,696				320,871
Retained earnings			166,537				149,677				134,115				121,697				109,160
Accumulated other comprehensive income			10,874				10,566				10,341				4,508				7,801
Treasury stock, at cost			(1,099)				(1,099)				(1,099)				(1,099)				(1,099)
Total shareholders' equity			513,830				496,115				479,786				460,719				450,548
Total liabilities and shareholders' equity		$	5,061,808			$	4,943,771			$	4,896,989			$	4,942,446			$	4,627,770

 

Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
		Three Months Ended																				Nine Months Ended
		2025												2024								2025				2024
(Dollars in thousands, except per share data)		September 30				June 30				March 31				December 31				September 30				September 30				September 30
INTEREST INCOME:
Loans, including fees		$	82,054			$	79,706			$	73,087			$	76,017			$	75,468			$	234,847			$	219,242
Investment securities available-for-sale			6,289				5,505				5,693				4,939				4,532				17,487				12,116
Investment securities held-to-maturity			2,882				1,607				-				-				-				4,489				-
Federal funds sold and other			1,278				1,844				1,986				4,580				2,719				5,108				11,462
Total interest income			92,503				88,662				80,766				85,536				82,719				261,931				242,820
INTEREST EXPENSE:
Deposit accounts			39,030				37,535				36,226				40,233				40,407				112,791				119,515
FHLB advances and other borrowings			2,624				1,753				1,743				1,865				1,929				6,120				5,985
Total interest expense			41,654				39,288				37,969				42,098				42,336				118,911				125,500
Net interest income			50,849				49,374				42,797				43,438				40,383				143,020				117,320
Provision for credit losses			2,763				2,130				450				1,156				1,085				5,343				4,545
Net interest income after credit loss expense			48,086				47,244				42,347				42,282				39,298				137,677				112,775
NONINTEREST INCOME:
Service charges and fees			2,839				2,125				2,277				1,772				2,143				7,241				5,163
Earnings on bank-owned life insurance			786				743				677				662				649				2,206				1,818
(Loss) gain on sale of investment securities available-for-sale			-				(110)				(228)				196				(480)				(338)				(200)
Gain on sale of SBA loans			-				44				30				-				-				74				30
Other			10				(152)				351				243				205				209				937
Total noninterest income			3,635				2,650				3,107				2,873				2,517				9,392				7,748
NONINTEREST EXPENSE:
Salaries and employee benefits			19,560				18,179				18,341				17,018				15,679				56,080				48,098
Occupancy and equipment expense			2,861				2,783				2,834				2,856				2,817				8,478				9,420
Legal and professional			1,254				1,927				1,431				1,587				1,037				4,612				4,043
Data processing and network expense			1,203				1,162				1,120				1,182				1,608				3,485				4,072
Regulatory assessments			1,152				1,203				1,306				1,196				1,249				3,661				3,234
Advertising and marketing			499				503				409				526				420				1,411				1,181
Software purchases and maintenance			1,094				1,149				1,259				1,202				1,266				3,502				2,499
Loan operations and other real estate owned expense			29				439				269				189				227				737				715
Telephone and communications			134				115				175				144				166				424				441
Other			1,106				1,386				964				1,330				1,085				3,456				3,394
Total noninterest expense			28,892				28,846				28,108				27,230				25,554				85,846				77,097
NET INCOME BEFORE INCOME TAX         EXPENSE			22,829				21,048				17,346				17,925				16,261				61,223				43,426
Income tax expense			4,772				4,301				3,757				4,192				3,486				12,830				9,488
NET INCOME			18,057				16,747				13,589				13,733				12,775				48,393				33,938
Preferred stock dividends declared			1,197				1,185				1,171				1,196				1,198				3,553				3,553
NET INCOME AVAILABLE TO COMMON         SHAREHOLDERS		$	16,860			$	15,562			$	12,418			$	12,537			$	11,577			$	44,840			$	30,385
EARNINGS PER COMMON SHARE:
Basic earnings per share		$	1.22			$	1.12			$	0.90			$	0.92			$	0.85			$	3.24			$	2.23
Diluted earnings per share		$	1.03			$	0.96			$	0.78			$	0.79			$	0.74			$	2.77			$	1.99

 

Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
		Three Months Ended																				Nine Months Ended
		2025												2024								2025				2024
(Dollars in thousands, except share and per share data)		September 30				June 30				March 31				December 31				September 30				September 30				September 30
Earnings per share, basic		$	1.22			$	1.12			$	0.90			$	0.92			$	0.85			$	3.24			$	2.23
Earnings per share, diluted		$	1.03			$	0.96			$	0.78			$	0.79			$	0.74			$	2.77			$	1.99
Dividends on common stock		$	-			$	-			$	-			$	-			$	-			$	-			$	-
Dividends on Series A Convertible         Non-Cumulative Preferred Stock		$	17.25			$	17.06			$	16.88			$	17.25			$	17.25			$	51.19			$	51.19
Return on average assets (A)			1.41	%			1.38	%			1.17	%			1.13	%			1.14	%			1.32	%			1.02	%
Return on average common equity (A)			15.14	%			14.70	%			12.41	%			12.66	%			12.12	%			14.13	%			11.05	%
Return on average tangible common         equity (A) (B)			15.81	%			15.38	%			13.01	%			13.29	%			12.76	%			14.79	%			11.65	%
Net interest margin (A) (C)			4.10	%			4.22	%			3.80	%			3.71	%			3.73	%			4.05	%			3.65	%
Efficiency ratio (D)			53.03	%			55.45	%			61.23	%			58.80	%			59.57	%			56.32	%			61.64	%
Capital Ratios
Third Coast Bancshares, Inc. (consolidated):
Total common equity to total assets			8.84	%			8.70	%			8.45	%			7.98	%			8.31	%			8.84	%			8.31	%
Tangible common equity to tangible         assets (B)			8.51	%			8.35	%			8.09	%			7.63	%			7.93	%			8.51	%			7.93	%
Estimated Common equity tier 1 (to risk         weighted assets)			8.85	%			8.75	%			8.70	%			8.41	%			8.38	%			8.85	%			8.38	%
Estimated Tier 1 capital (to risk weighted         assets)			10.25	%			10.20	%			10.19	%			9.90	%			9.93	%			10.25	%			9.93	%
Estimated Total capital (to risk weighted         assets)			12.90	%			12.87	%			12.97	%			12.68	%			12.80	%			12.90	%			12.80	%
Estimated Tier 1 capital (to average         assets)			9.55	%			9.65	%			9.58	%			9.12	%			9.53	%			9.55	%			9.53	%
Third Coast Bank:
Estimated Common equity tier 1 (to risk         weighted assets)			12.59	%			12.56	%			12.69	%			12.35	%			12.45	%			12.59	%			12.45	%
Estimated Tier 1 capital (to risk weighted         assets)			12.59	%			12.56	%			12.69	%			12.35	%			12.45	%			12.59	%			12.45	%
Estimated Total capital (to risk weighted         assets)			13.53	%			13.46	%			13.63	%			13.29	%			13.42	%			13.53	%			13.42	%
Estimated Tier 1 capital (to average         assets)			11.75	%			11.89	%			11.93	%			11.37	%			11.95	%			11.75	%			11.95	%
Other Data
Weighted average shares:
Basic			13,860,149				13,836,830				13,776,998				13,698,010				13,665,400				13,824,963				13,643,042
Diluted			17,524,288				17,391,128				17,440,826				17,394,884				17,184,991				17,452,385				17,046,640
Period end shares outstanding			13,879,099				13,851,581				13,825,286				13,769,780				13,667,591				13,879,099				13,667,591
Book value per share		$	32.25			$	31.04			$	29.92			$	28.65			$	28.13			$	32.25			$	28.13
Tangible book value per share (B)		$	30.91			$	29.69			$	28.56			$	27.29			$	26.75			$	30.91			$	26.75

(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
		September 30, 2025										June 30, 2025										September 30, 2024
(Dollars in thousands)		Average Outstanding Balance				Interest Earned/ Paid(3)				Average Yield/ Rate(4)		Average Outstanding Balance				Interest Earned/ Paid(3)				Average Yield/ Rate(4)		Average Outstanding Balance				Interest Earned/ Paid(3)				Average Yield/ Rate(4)
Assets
Interest-earnings assets:
Loans, gross		$	4,179,027			$	82,054			7.79 %		$	4,020,771			$	79,706			7.95 %		$	3,801,954			$	75,468			7.90 %
Investment securities available-for-sale			410,073				6,289			6.08 %			382,439				5,505			5.77 %			300,969				4,532			5.99 %
Investment securities held-to-maturity			206,055				2,882			5.55 %			117,407				1,607			5.49 %			—				—				—
Federal funds sold and other         interest-earning assets			123,680				1,278			4.10 %			169,943				1,844			4.35 %			209,841				2,719			5.15 %
Total interest-earning assets			4,918,835				92,503			7.46 %			4,690,560				88,662			7.58 %			4,312,764				82,719			7.63 %
Less:  allowance for loan losses			(40,427)										(40,631)										(38,425)
Total interest-earning assets, net of         allowance			4,878,408										4,649,929										4,274,339
Noninterest-earning assets			213,210										210,170										195,681
Total assets		$	5,091,618									$	4,860,099									$	4,470,020
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits		$	3,892,726			$	39,030			3.98 %		$	3,766,801			$	37,535			4.00 %		$	3,383,897			$	40,407			4.75 %
Note payable and line of credit			113,560				1,754			6.13 %			111,712				1,719			6.17 %			113,536				1,853			6.49 %
FHLB advances			73,476				870			4.70 %			2,916				34			4.68 %			5,757				76			5.25 %
Total interest-bearing liabilities			4,079,762				41,654			4.05 %			3,881,429				39,288			4.06 %			3,503,190				42,336			4.81 %
Noninterest-bearing deposits			453,980										431,144										457,451
Other liabilities			49,842										56,785										63,255
Total liabilities			4,583,584										4,369,358										4,023,896
Shareholders' equity			508,034										490,741										446,124
Total liabilities and shareholders'         equity		$	5,091,618									$	4,860,099									$	4,470,020
Net interest income						$	50,849									$	49,374									$	40,383
Net interest spread (1)										3.41 %										3.52 %										2.82 %
Net interest margin (2)										4.10 %										4.22 %										3.73 %

(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)
		Nine Months Ended
		September 30, 2025										September 30, 2024
(Dollars in thousands)		Average Outstanding Balance				Interest Earned/ Paid(3)				Average Yield/ Rate(4)		Average Outstanding Balance				Interest Earned/ Paid(3)				Average Yield/ Rate(4)
Assets
Interest-earnings assets:
Loans, gross		$	4,060,615			$	234,847			7.73 %		$	3,736,200			$	219,242			7.84 %
Investment securities available-for-sale			396,919				17,487			5.89 %			267,091				12,116			6.06 %
Investment securities held-to-maturity			108,575				4,489			5.53 %			—				—				—
Federal funds sold and other interest-earning            assets			159,941				5,108			4.27 %			290,011				11,462			5.28 %
Total interest-earning assets			4,726,050				261,931			7.41 %			4,293,302				242,820			7.55 %
Less:  allowance for loan losses			(40,550)										(38,045)
Total interest-earning assets, net of allowance			4,685,500										4,255,257
Noninterest-earning assets			207,355										194,650
Total assets		$	4,892,855									$	4,449,907
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits		$	3,771,393			$	112,791			4.00 %		$	3,380,790			$	119,515			4.72 %
Note payable and line of credit			112,318				5,186			6.17 %			118,547				5,909			6.66 %
FHLB advances and other			26,574				934			4.70 %			1,933				76			5.25 %
Total interest-bearing liabilities			3,910,285				118,911			4.07 %			3,501,270				125,500			4.79 %
Noninterest-bearing deposits			436,412										452,411
Other liabilities			55,754										62,753
Total liabilities			4,402,451										4,016,434
Shareholders' equity			490,404										433,473
Total liabilities and shareholders' equity		$	4,892,855									$	4,449,907
Net interest income						$	143,020									$	117,320
Net interest spread (1)										3.34 %										2.76 %
Net interest margin (2)										4.05 %										3.65 %

(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
		2025												2024
(Dollars in thousands)		September 30				June 30				March 31				December 31				September 30
Period-end Loan Portfolio:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied		$	408,996			$	423,959			$	420,902			$	448,134			$	470,222
Non-farm non-residential non-owner occupied			687,924				666,840				633,227				652,119				611,617
Residential			334,583				323,898				335,285				336,736				339,558
Construction, development & other			826,566				784,364				846,166				871,373				825,302
Farmland			25,549				28,013				30,783				30,915				35,650
Commercial & industrial			1,772,045				1,724,583				1,605,243				1,497,408				1,499,302
Consumer			1,291				1,206				1,443				1,859				2,002
Municipal and other			108,162				126,873				114,990				127,881				106,178
Total loans		$	4,165,116			$	4,079,736			$	3,988,039			$	3,966,425			$	3,889,831
Asset Quality:
Nonaccrual loans		$	10,723			$	13,358			$	17,066			$	26,773			$	23,522
Loans > 90 days and still accruing			11,016				6,755				1,503				1,173				522
Total nonperforming loans			21,739				20,113				18,569				27,946				24,044
Other real estate owned			8,388				8,580				8,752				862				283
Total nonperforming assets		$	30,127			$	28,693			$	27,321			$	28,808			$	24,327
QTD Net (recoveries) charge-offs		$	(17)			$	2,376			$	398			$	879			$	(57)
Nonaccrual loans:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied		$	1,237			$	2,191			$	3,100			$	10,433			$	9,696
Non-farm non-residential non-owner occupied			111				111				-				-				68
Residential			214				637				2,616				2,226				2,664
Construction, development & other			6				344				358				400				1
Commercial & industrial			9,155				10,075				10,992				13,714				11,093
Total nonaccrual loans		$	10,723			$	13,358			$	17,066			$	26,773			$	23,522
Asset Quality Ratios:
Nonperforming assets to total assets			0.60	%			0.58	%			0.56	%			0.58	%			0.53	%
Nonperforming loans to total loans			0.52	%			0.49	%			0.47	%			0.70	%			0.62	%
Allowance for credit losses to total loans			1.02	%			0.98	%			1.01	%			1.02	%			1.02	%
QTD Net (recoveries) charge-offs to average loans         (annualized)			(0.00)	%			0.24	%			0.04	%			0.09	%			(0.01)	%

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																				Nine Months Ended
		2025												2024								2025				2024
(Dollars in thousands, except share and per share data)		September 30				June 30				March 31				December 31				September 30				September 30				September 30
Tangible Common Equity:
Total shareholders' equity		$	513,830			$	496,115			$	479,786			$	460,719			$	450,548			$	513,830			$	450,548
Less:  Preferred stock including additional         paid in capital			66,160				66,160				66,160				66,160				66,117				66,160				66,117
Total common equity			447,670				429,955				413,626				394,559				384,431				447,670				384,431
Less:  Goodwill and core deposit intangibles,         net			18,720				18,761				18,801				18,841				18,882				18,720				18,882
Tangible common equity		$	428,950			$	411,194			$	394,825			$	375,718			$	365,549			$	428,950			$	365,549
Common shares outstanding at end of period			13,879,099				13,851,581				13,825,286				13,769,780				13,667,591				13,879,099				13,667,591
Book Value Per Share		$	32.25			$	31.04			$	29.92			$	28.65			$	28.13			$	32.25			$	28.13
Tangible Book Value Per Share		$	30.91			$	29.69			$	28.56			$	27.29			$	26.75			$	30.91			$	26.75
Tangible Assets:
Total assets		$	5,061,808			$	4,943,771			$	4,896,989			$	4,942,446			$	4,627,770			$	5,061,808			$	4,627,770
Adjustments:  Goodwill and core deposit         intangibles, net			18,720				18,761				18,801				18,841				18,882				18,720				18,882
Tangible assets		$	5,043,088			$	4,925,010			$	4,878,188			$	4,923,605			$	4,608,888			$	5,043,088			$	4,608,888
Total Common Equity to Total Assets			8.84	%			8.70	%			8.45	%			7.98	%			8.31	%			8.84	%			8.31	%
Tangible Common Equity to Tangible Assets			8.51	%			8.35	%			8.09	%			7.63	%			7.93	%			8.51	%			7.93	%
Average Tangible Common Equity:
Average shareholders' equity		$	508,034			$	490,741			$	472,041			$	460,169			$	446,124			$	490,404			$	433,473
Less:  Average preferred stock including         additional paid in capital			66,160				66,160				66,160				66,121				66,223				66,160				66,224
Average common equity			441,874				424,581				405,881				394,048				379,901				424,244				367,249
Less:  Average goodwill and core deposit         intangibles, net			18,746				18,784				18,826				18,865				18,906				18,785				18,946
Average tangible common equity		$	423,128			$	405,797			$	387,055			$	375,183			$	360,995			$	405,459			$	348,303
Net Income		$	18,057			$	16,747			$	13,589			$	13,733			$	12,775			$	48,393			$	33,938
Less:  Dividends declared on preferred stock			1,197				1,185				1,171				1,196				1,198				3,553				3,553
Net Income Available to Common Shareholders		$	16,860			$	15,562			$	12,418			$	12,537			$	11,577			$	44,840			$	30,385
Return on Average Common Equity(A)			15.14	%			14.70	%			12.41	%			12.66	%			12.12	%			14.13	%			11.05	%
Return on Average Tangible Common Equity(A)			15.81	%			15.38	%			13.01	%			13.29	%			12.76	%			14.79	%			11.65	%

(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-third-quarter-financial-results-302591876.html

SOURCE Third Coast Bancshares

FAQ

What were Third Coast Bancshares (TCBX) Q3 2025 EPS and net income?

Third Coast reported basic EPS $1.22, diluted EPS $1.03, and net income $18.1M for Q3 2025.

How did Third Coast's loan and deposit balances change in Q3 2025 (TCBX)?

Gross loans rose to $4.17B (up 7.1% YoY) and deposits increased to $4.37B (up 9.5% YoY) as of Sept 30, 2025.

What happened to Third Coast's efficiency ratio and book value per share in Q3 2025 (TCBX)?

Efficiency ratio improved to 53.03%, and book value per share rose to $32.25 with tangible book value at $30.91 as of Sept 30, 2025.

Did Third Coast Bancshares (TCBX) report any notable credit trends in Q3 2025?

Yes. Nonperforming loans were $21.7M (0.52% of loans) and the provision for credit losses was $2.8M in Q3 2025.

How did Third Coast's net interest margin and net interest income perform in Q3 2025 (TCBX)?

Net interest margin was 4.10% and net interest income totaled $50.8M for Q3 2025.

When is Third Coast Bancshares (TCBX) holding its Q3 2025 earnings call and where can investors listen?

The earnings call is scheduled for Oct 23, 2025 at 11:00 AM ET and will be broadcast live on the company's investor website with a replay available through Oct 30, 2025.