0001781730false00017817302025-01-222025-01-22

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 22, 2025

 

 

THIRD COAST BANCSHARES, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Texas

001-41028

46-2135597

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

20202 Highway 59 North

Suite 190

 

Humble, Texas

 

77338

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 281 446-7000

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common stock, par value $1.00 per share

 

TCBX

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 


Item 2.02 Results of Operations and Financial Condition.

On January 22, 2025, Third Coast Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2024. A copy of the Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit

Number

Description of Exhibit

99.1

Press Release dated January 22, 2025

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

THIRD COAST BANCSHARES, INC.

 

 

 

 

Date:

January 22, 2025

By:

/s/ R. John McWhorter

 

 

 

R. John McWhorter
Chief Financial Officer

 


Exhibit 99.1

 

img69977408_0.jpg

News Release

Contact:

Ken Dennard / Natalie Hairston

Dennard Lascar Investor Relations

(713) 529-6600

TCBX@dennardlascar.com

FOR IMMEDIATE RELEASE

 

Third Coast Bancshares, Inc. Reports

2024 Fourth Quarter and Full Year Financial Results

Year Over Year Book Value grew 12.8% and Tangible Book Value(1) grew 13.6%

 

HOUSTON – January 22, 2025 – Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the “Company,” “Third Coast,” “we,” “us,” or “our”), the bank holding company for Third Coast Bank, today reported its 2024 fourth quarter and full year financial results.

2024 Fourth Quarter Financial Highlights

Net income totaled $13.7 million, or $0.92 and $0.79 per basic and diluted share, respectively, compared to $12.8 million, or $0.85 and $0.74 per basic and diluted share, respectively, for the third quarter of 2024.
Net interest income totaled $43.4 million, representing an increase of 7.6% from $40.4 million in the third quarter of 2024.
Return on average assets of 1.13% annualized for the quarter compared to 1.14% annualized for the third quarter of 2024 and 0.90% annualized for the fourth quarter of 2023.
Efficiency Ratio improved to 58.80% for the fourth quarter of 2024 from 59.57% for the third quarter of 2024.
Gross loans grew $76.6 million to $3.97 billion, 2.0% more than the $3.89 billion reported as of September 30, 2024.
Book value per share and tangible book value per share(1) increased to $28.65 and $27.29, respectively, compared to $28.13 and $26.75, respectively, as of September 30, 2024.

2024 Full Year Financial and Operational Highlights

Net income totaled $47.7 million, or $3.14 and $2.78 per basic and diluted share, respectively, for the year ended December 31, 2024, compared to $33.4 million, or $2.11 and $1.98 per basic and diluted share, respectively, for the year ended December 31, 2023.
Total assets increased $546.4 million to $4.94 billion as of December 31, 2024, or 12.4% over the $4.40 billion reported as of December 31, 2023.
Gross loans grew $327.6 million to $3.97 billion as of December 31, 2024, 9.0% more than the $3.64 billion reported as of December 31, 2023.

____________________________

(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.


 

Deposits increased $507.4 million to $4.31 billion as of December 31, 2024, or 13.3% over the $3.80 billion reported as of December 31, 2023.
Opened three de novo branches in Austin, The Woodlands, and Houston, Texas.

Bart Caraway, Founder, Chairman, President & Chief Executive Officer of Third Coast, said, “I take tremendous pride in our remarkable team. Third Coast has exceptionally talented and dedicated bankers who consistently achieve outstanding results. For example, our fourth quarter net interest income was $43.4 million, reflecting robust growth over the past 14 quarters. This impressive milestone is just one of the noteworthy metrics that reflect our core values and underscore our commitment to operational efficiency and profitability. We delivered many other positive metrics that highlight not only our strategic initiatives, but also the unwavering loyalty and tireless work of our entire team.

“Looking ahead, we are excited about the potential to further strengthen our position and continue producing outstanding results. Third Coast remains focused on sustaining this momentum by innovating and adapting to evolving market conditions. We continue to explore new opportunities that align with our growth objectives while staying true to our mission of delivering exceptional value to our stakeholders,” Mr. Caraway concluded.

Operating Results

Net Income and Earnings Per Share

Net income totaled $13.7 million for the fourth quarter of 2024, compared to $12.8 million for the third quarter of 2024 and $9.7 million for the fourth quarter of 2023. Net income available to common shareholders totaled $12.5 million for the fourth quarter of 2024, compared to $11.6 million for the third quarter of 2024 and $8.5 million for the fourth quarter of 2023. The quarter-over-quarter increase was primarily due to an increase in net interest income, resulting from loan growth and additional investments in federal funds sold and interest-bearing deposits with correspondent banks, offset by a slightly higher provision for credit loss and an increase in salary and employee benefit expenses during the fourth quarter of 2024. 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, 2024 and September 30, 2024.

Basic and diluted earnings per share were $0.92 per share and $0.79 per share, respectively, in the fourth quarter of 2024, compared to $0.85 per share and $0.74 per share, respectively, in the third quarter of 2024 and $0.62 per share and $0.57 per share, respectively, in the fourth quarter of 2023.

Net Interest Margin and Net Interest Income

The net interest margin for the fourth quarter of 2024 was 3.71%, compared to 3.73% for the third quarter of 2024 and 3.61% for the fourth quarter of 2023. The yield on loans for the fourth quarter of 2024 was 7.68%, compared to 7.90% for the third quarter of 2024 and 7.75% for the fourth quarter of 2023. The cost of interest-bearing deposits for the fourth quarter of 2024 was 4.33%, compared to 4.75% for the third quarter of 2024 and 4.67% for the fourth quarter of 2023.

Net interest income totaled $43.4 million for the fourth quarter of 2024, an increase of 7.6% from $40.4 million for the third quarter of 2024 and an increase of 16.4% from $37.3 million for the fourth quarter of 2023. Interest income totaled $85.5 million for the fourth quarter of 2024, an increase of 3.4% from $82.7 million for the third quarter of 2024 and an increase of 11.0% from $77.1 million for the fourth quarter of 2023. The quarter-over-quarter increase in interest income was primarily due to the increase in interest income from federal funds sold and deposits in interest-bearing correspondent banks which increased $1.9 million, or 68.4%, compared to the third quarter of 2024. Interest expense in the fourth quarter of 2024 remained consistent with the third quarter of 2024 at $42.1 million and $42.3 million, respectively, and increased from $39.7 million for the fourth quarter of 2023.

2


 

Noninterest Income and Noninterest Expense

Noninterest income totaled $2.9 million for the fourth quarter of 2024, compared to $2.5 million for the third quarter of 2024 and $2.2 million for the fourth quarter of 2023. The sequential increase in noninterest income was primarily due to gains recorded on the sale of investment securities of $196,000 in the fourth quarter of 2024, compared to losses recorded on the sale of investment securities of $480,000 in the previous quarter, offset by a decrease in syndication fees during the fourth quarter of 2024.

Noninterest expense increased to $27.2 million for the fourth quarter of 2024, compared to $25.6 million for the third quarter of 2024 and $26.4 million for the fourth quarter of 2023. The quarter-over-quarter increase in noninterest expense was primarily due to increased salary expense resulting from new hires, increased bonus expense and a reduction in salary expense deferral related to loan fundings during the fourth quarter of 2024.

The efficiency ratio improved to 58.80% for the fourth quarter of 2024, compared to 59.57% for the third quarter of 2024 and 66.89% for the fourth quarter of 2023.

Balance Sheet Highlights

Loan Portfolio and Composition

For the quarter ended December 31, 2024, gross loans increased to $3.97 billion, an increase of $76.6 million, or 2.0%, from $3.89 billion as of September 30, 2024, and an increase of $327.6 million, or 9.0%, from $3.64 billion as of December 31, 2023. Real estate and municipal loans accounted for the majority of the loan growth for the fourth quarter of 2024, with real estate loans increasing $56.9 million and municipal loans increasing $21.7 million from the third quarter of 2024.

Asset Quality

Nonperforming loans at December 31, 2024 were $27.9 million, compared to $24.0 million at September 30, 2024 and $17.3 million at December 31, 2023. As of December 31, 2024, the nonperforming loans to total loans ratio was 0.70%, compared to 0.62% as of September 30, 2024 and 0.48% as of December 31, 2023. The increase from September 30, 2024 was due primarily to $6.7 million in loans placed on nonaccrual during the quarter, partially offset by $1.7 million in paydowns, $1.1 million in loans returned to accrual status, and a $690,000 loan charged-off. Of the loans placed on nonaccrual during the quarter, one commercial loan relationship represented $5.4 million of the downgrades and has a loan-to-value ratio of 35%. We do not anticipate losses on these recent downgrades to nonaccrual.

The provision for credit loss recorded for the fourth quarter of 2024 was $1.2 million, and the allowance for credit losses of $40.3 million represented 1.02% of the $3.97 billion in gross loans outstanding as of December 31, 2024.

The Company recorded net charge-offs of $879,000 and $1.5 million for the fourth quarter of 2024 and 2023, respectively. On a full year basis, net charge-offs were $3.4 million and $1.2 million in 2024 and 2023, respectively.

Deposits and Composition

Deposits totaled $4.31 billion as of December 31, 2024, an increase of 7.9% from $3.99 billion as of September 30, 2024, and an increase of 13.3% from $3.80 billion as of December 31, 2023. Noninterest-bearing demand deposits increased from $489.8 million as of September 30, 2024, to $602.1 million as of December 31, 2024 and represented 14.0% of total deposits as of December 31, 2024, compared to 12.3% of total deposits as of September 30, 2024. As of December 31, 2024, interest-bearing demand deposits increased $296.7 million, or 10.6%, time

3


 

deposits decreased $89.7 million, or 13.4%, and savings accounts decreased $3.2 million, or 10.3%, respectively, from September 30, 2024.

The average cost of deposits was 3.83% for the fourth quarter of 2024, representing a 35-basis point decrease from the third quarter of 2024 and a 24-basis point decrease from the fourth quarter of 2023. The decreases were due to noninterest-bearing demand deposit growth and the reduction in rates paid on interest-bearing demand deposits.

Earnings Conference Call

Third Coast has scheduled a conference call to discuss its 2024 fourth quarter and fiscal year results, which will be broadcast live over the Internet, on Thursday, January 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 January 28, 2025, and may be accessed by dialing 201-612-7415 and using passcode 13750591#. 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; 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,

4


 

please see the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2023 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.

5


 

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)

 

 

 

2024

 

 

2023

 

(Dollars in thousands)

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

371,157

 

 

$

258,191

 

 

$

241,809

 

 

$

367,831

 

 

$

296,926

 

Federal funds sold

 

 

50,045

 

 

 

12,265

 

 

 

12,088

 

 

 

130,429

 

 

 

114,919

 

Total cash and cash equivalents

 

 

421,202

 

 

 

270,456

 

 

 

253,897

 

 

 

498,260

 

 

 

411,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing time deposits in other banks

 

 

356

 

 

 

353

 

 

 

350

 

 

 

-

 

 

 

-

 

Investment securities available-for-sale

 

 

384,025

 

 

 

292,104

 

 

 

286,167

 

 

 

246,291

 

 

 

178,087

 

Loans held for investment

 

 

3,966,425

 

 

 

3,889,831

 

 

 

3,758,159

 

 

 

3,746,178

 

 

 

3,638,788

 

Less: allowance for credit losses

 

 

(40,304

)

 

 

(39,683

)

 

 

(38,211

)

 

 

(38,140

)

 

 

(37,022

)

Loans, net

 

 

3,926,121

 

 

 

3,850,148

 

 

 

3,719,948

 

 

 

3,708,038

 

 

 

3,601,766

 

Accrued interest receivable

 

 

25,820

 

 

 

26,111

 

 

 

27,518

 

 

 

25,769

 

 

 

23,120

 

Premises and equipment, net

 

 

26,230

 

 

 

26,696

 

 

 

27,626

 

 

 

26,844

 

 

 

28,554

 

Bank-owned life insurance

 

 

68,341

 

 

 

67,679

 

 

 

67,030

 

 

 

66,443

 

 

 

65,861

 

Non-marketable securities, at cost

 

 

15,980

 

 

 

24,328

 

 

 

16,147

 

 

 

16,095

 

 

 

16,041

 

Deferred tax asset, net

 

 

11,445

 

 

 

8,654

 

 

 

8,972

 

 

 

8,712

 

 

 

9,227

 

Derivative assets

 

 

6,479

 

 

 

5,786

 

 

 

7,799

 

 

 

11,015

 

 

 

8,828

 

Right-of-use assets - operating leases

 

 

19,863

 

 

 

20,397

 

 

 

20,944

 

 

 

20,729

 

 

 

21,439

 

Goodwill and other intangible assets

 

 

18,841

 

 

 

18,882

 

 

 

18,922

 

 

 

18,963

 

 

 

19,003

 

Other assets

 

 

17,743

 

 

 

16,176

 

 

 

18,799

 

 

 

13,244

 

 

 

12,303

 

Total assets

 

$

4,942,446

 

 

$

4,627,770

 

 

$

4,474,119

 

 

$

4,660,403

 

 

$

4,396,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing

 

$

602,082

 

 

$

489,822

 

 

$

464,498

 

 

$

424,019

 

 

$

459,553

 

Interest bearing

 

 

3,708,416

 

 

 

3,504,616

 

 

 

3,391,093

 

 

 

3,626,653

 

 

 

3,343,595

 

Total deposits

 

 

4,310,498

 

 

 

3,994,438

 

 

 

3,855,591

 

 

 

4,050,672

 

 

 

3,803,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued interest payable

 

 

6,281

 

 

 

7,283

 

 

 

5,668

 

 

 

3,927

 

 

 

4,794

 

Derivative liabilities

 

 

8,660

 

 

 

6,874

 

 

 

7,626

 

 

 

8,253

 

 

 

10,687

 

Lease liability - operating leases

 

 

20,900

 

 

 

21,412

 

 

 

21,919

 

 

 

21,647

 

 

 

22,280

 

Other liabilities

 

 

23,754

 

 

 

34,632

 

 

 

30,786

 

 

 

27,806

 

 

 

23,763

 

Line of credit - Senior Debt

 

 

30,875

 

 

 

31,875

 

 

 

36,875

 

 

 

43,875

 

 

 

38,875

 

Note payable - Subordinated Debentures, net

 

 

80,759

 

 

 

80,708

 

 

 

80,656

 

 

 

80,605

 

 

 

80,553

 

  Total liabilities

 

 

4,481,727

 

 

 

4,177,222

 

 

 

4,039,121

 

 

 

4,236,785

 

 

 

3,984,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A Convertible Non-Cumulative Preferred Stock

 

 

69

 

 

 

69

 

 

 

69

 

 

 

69

 

 

 

69

 

Series B Convertible Perpetual Preferred Stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Common stock

 

 

13,848

 

 

 

13,746

 

 

 

13,744

 

 

 

13,731

 

 

 

13,683

 

Common stock - non-voting

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Additional paid-in capital

 

 

321,696

 

 

 

320,871

 

 

 

320,496

 

 

 

320,077

 

 

 

319,613

 

Retained earnings

 

 

121,697

 

 

 

109,160

 

 

 

97,583

 

 

 

87,971

 

 

 

78,775

 

Accumulated other comprehensive income

 

 

4,508

 

 

 

7,801

 

 

 

4,205

 

 

 

2,869

 

 

 

933

 

Treasury stock, at cost

 

 

(1,099

)

 

 

(1,099

)

 

 

(1,099

)

 

 

(1,099

)

 

 

(1,099

)

Total shareholders' equity

 

 

460,719

 

 

 

450,548

 

 

 

434,998

 

 

 

423,618

 

 

 

411,974

 

Total liabilities and shareholders' equity

 

$

4,942,446

 

 

$

4,627,770

 

 

$

4,474,119

 

 

$

4,660,403

 

 

$

4,396,074

 

 

6


 

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)

 

 

 

Three Months Ended

 

 

Years Ended

 

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

(Dollars in thousands, except per share data)

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

 

December 31

 

 

December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

76,017

 

 

$

75,468

 

 

$

73,103

 

 

$

70,671

 

 

$

70,325

 

 

$

295,259

 

 

$

248,911

 

 

Investment securities available-for-sale

 

 

4,939

 

 

 

4,532

 

 

 

4,491

 

 

 

3,093

 

 

 

2,746

 

 

 

17,055

 

 

 

8,313

 

 

Federal funds sold and other

 

 

4,580

 

 

 

2,719

 

 

 

3,631

 

 

 

5,112

 

 

 

3,996

 

 

 

16,042

 

 

 

9,320

 

 

Total interest income

 

 

85,536

 

 

 

82,719

 

 

 

81,225

 

 

 

78,876

 

 

 

77,067

 

 

 

328,356

 

 

 

266,544

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit accounts

 

 

40,233

 

 

 

40,407

 

 

 

40,410

 

 

 

38,698

 

 

 

37,671

 

 

 

159,748

 

 

 

115,044

 

 

FHLB advances and other borrowings

 

 

1,865

 

 

 

1,929

 

 

 

1,957

 

 

 

2,099

 

 

 

2,065

 

 

 

7,850

 

 

 

11,975

 

 

Total interest expense

 

 

42,098

 

 

 

42,336

 

 

 

42,367

 

 

 

40,797

 

 

 

39,736

 

 

 

167,598

 

 

 

127,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

43,438

 

 

 

40,383

 

 

 

38,858

 

 

 

38,079

 

 

 

37,331

 

 

 

160,758

 

 

 

139,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

1,156

 

 

 

1,085

 

 

 

1,900

 

 

 

1,560

 

 

 

1,100

 

 

 

5,701

 

 

 

6,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after credit loss expense

 

 

42,282

 

 

 

39,298

 

 

 

36,958

 

 

 

36,519

 

 

 

36,231

 

 

 

155,057

 

 

 

133,205

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

1,772

 

 

 

2,143

 

 

 

1,515

 

 

 

1,505

 

 

 

850

 

 

 

6,935

 

 

 

3,233

 

 

Earnings on bank-owned life insurance

 

 

662

 

 

 

649

 

 

 

587

 

 

 

582

 

 

 

559

 

 

 

2,480

 

 

 

2,101

 

 

Gain (loss) on sale of investment securities available-for-sale

 

 

196

 

 

 

(480

)

 

 

123

 

 

 

157

 

 

 

21

 

 

 

(4

)

 

 

482

 

 

Gain on sale of SBA loans

 

 

-

 

 

 

-

 

 

 

-

 

 

 

30

 

 

 

326

 

 

 

30

 

 

 

440

 

 

Other

 

 

243

 

 

 

205

 

 

 

663

 

 

 

69

 

 

 

401

 

 

 

1,180

 

 

 

1,949

 

 

Total noninterest income

 

 

2,873

 

 

 

2,517

 

 

 

2,888

 

 

 

2,343

 

 

 

2,157

 

 

 

10,621

 

 

 

8,205

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

17,018

 

 

 

15,679

 

 

 

15,917

 

 

 

16,502

 

 

 

16,119

 

 

 

65,116

 

 

 

62,217

 

 

Occupancy and equipment expense

 

 

3,292

 

 

 

3,229

 

 

 

3,146

 

 

 

3,045

 

 

 

2,875

 

 

 

12,712

 

 

 

11,285

 

 

Legal and professional

 

 

1,587

 

 

 

1,037

 

 

 

1,621

 

 

 

1,385

 

 

 

2,305

 

 

 

5,630

 

 

 

7,783

 

 

Data processing and network expense

 

 

1,182

 

 

 

1,608

 

 

 

1,046

 

 

 

1,418

 

 

 

987

 

 

 

5,254

 

 

 

4,735

 

 

Regulatory assessments

 

 

1,196

 

 

 

1,249

 

 

 

1,005

 

 

 

980

 

 

 

942

 

 

 

4,430

 

 

 

2,598

 

 

Advertising and marketing

 

 

526

 

 

 

420

 

 

 

406

 

 

 

355

 

 

 

614

 

 

 

1,707

 

 

 

2,627

 

 

Software purchases and maintenance

 

 

766

 

 

 

854

 

 

 

828

 

 

 

817

 

 

 

839

 

 

 

3,265

 

 

 

2,375

 

 

Loan operations

 

 

189

 

 

 

227

 

 

 

262

 

 

 

226

 

 

 

134

 

 

 

904

 

 

 

673

 

 

Telephone and communications

 

 

144

 

 

 

166

 

 

 

141

 

 

 

134

 

 

 

125

 

 

 

585

 

 

 

510

 

 

Other

 

 

1,330

 

 

 

1,085

 

 

 

1,257

 

 

 

1,052

 

 

 

1,474

 

 

 

4,724

 

 

 

4,995

 

 

Total noninterest expense

 

 

27,230

 

 

 

25,554

 

 

 

25,629

 

 

 

25,914

 

 

 

26,414

 

 

 

104,327

 

 

 

99,798

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME BEFORE INCOME TAX
        EXPENSE

 

 

17,925

 

 

 

16,261

 

 

 

14,217

 

 

 

12,948

 

 

 

11,974

 

 

 

61,351

 

 

 

41,612

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

4,192

 

 

 

3,486

 

 

 

3,421

 

 

 

2,581

 

 

 

2,285

 

 

 

13,680

 

 

 

8,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

13,733

 

 

 

12,775

 

 

 

10,796

 

 

 

10,367

 

 

 

9,689

 

 

 

47,671

 

 

 

33,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends declared

 

 

1,196

 

 

 

1,198

 

 

 

1,184

 

 

 

1,171

 

 

 

1,197

 

 

 

4,749

 

 

 

4,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME AVAILABLE TO COMMON
        SHAREHOLDERS

 

$

12,537

 

 

$

11,577

 

 

$

9,612

 

 

$

9,196

 

 

$

8,492

 

 

$

42,922

 

 

$

28,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.92

 

 

$

0.85

 

 

$

0.70

 

 

$

0.68

 

 

$

0.62

 

 

$

3.14

 

 

$

2.11

 

 

Diluted earnings per share

 

$

0.79

 

 

$

0.74

 

 

$

0.63

 

 

$

0.61

 

 

$

0.57

 

 

$

2.78

 

 

$

1.98

 

 

 

7


 

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)

 

 

 

Three Months Ended

 

 

Years Ended

 

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

(Dollars in thousands, except share and per share data)

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

 

December 31

 

 

December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share, basic

 

$

0.92

 

 

$

0.85

 

 

$

0.70

 

 

$

0.68

 

 

$

0.62

 

 

$

3.14

 

 

$

2.11

 

 

Earnings per share, diluted

 

$

0.79

 

 

$

0.74

 

 

$

0.63

 

 

$

0.61

 

 

$

0.57

 

 

$

2.78

 

 

$

1.98

 

 

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

 

 

$

68.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (A)

 

 

1.13

%

 

 

1.14

%

 

 

0.97

%

 

 

0.95

%

 

 

0.90

%

 

 

1.05

%

 

 

0.86

%

 

Return on average common equity (A)

 

 

12.66

%

 

 

12.12

%

 

 

10.53

%

 

 

10.44

%

 

 

9.86

%

 

 

11.48

%

 

 

8.66

%

 

Return on average tangible common
        equity
(A) (B)

 

 

13.29

%

 

 

12.76

%

 

 

11.10

%

 

 

11.03

%

 

 

10.44

%

 

 

12.09

%

 

 

9.19

%

 

Net interest margin (A) (C)

 

 

3.71

%

 

 

3.73

%

 

 

3.62

%

 

 

3.60

%

 

 

3.61

%

 

 

3.67

%

 

 

3.73

%

 

Efficiency ratio (D)

 

 

58.80

%

 

 

59.57

%

 

 

61.39

%

 

 

64.11

%

 

 

66.89

%

 

 

60.88

%

 

 

67.55

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Coast Bancshares, Inc. (consolidated):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total common equity to total assets

 

 

7.98

%

 

 

8.31

%

 

 

8.24

%

 

 

7.67

%

 

 

7.86

%

 

 

7.98

%

 

 

7.86

%

 

Tangible common equity to tangible
         assets
(B)

 

 

7.63

%

 

 

7.93

%

 

 

7.85

%

 

 

7.29

%

 

 

7.46

%

 

 

7.63

%

 

 

7.46

%

 

Common equity tier 1 (to risk weighted
        assets)

 

 

8.41

%

 

 

8.38

%

 

 

8.29

%

 

 

7.97

%

 

 

8.06

%

 

 

8.41

%

 

 

8.06

%

 

Tier 1 capital (to risk weighted assets)

 

 

9.90

%

 

 

9.93

%

 

 

9.88

%

 

 

9.54

%

 

 

9.70

%

 

 

9.90

%

 

 

9.70

%

 

Total capital (to risk weighted assets)

 

 

12.68

%

 

 

12.80

%

 

 

12.78

%

 

 

12.41

%

 

 

12.66

%

 

 

12.68

%

 

 

12.66

%

 

Tier 1 capital (to average assets)

 

 

9.12

%

 

 

9.53

%

 

 

9.24

%

 

 

9.15

%

 

 

9.23

%

 

 

9.12

%

 

 

9.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Coast Bank:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity tier 1 (to risk weighted
        assets)

 

 

12.35

%

 

 

12.45

%

 

 

12.52

%

 

 

12.32

%

 

 

12.52

%

 

 

12.35

%

 

 

12.52

%

 

Tier 1 capital (to risk weighted assets)

 

 

12.35

%

 

 

12.45

%

 

 

12.52

%

 

 

12.32

%

 

 

12.52

%

 

 

12.35

%

 

 

12.52

%

 

Total capital (to risk weighted assets)

 

 

13.29

%

 

 

13.42

%

 

 

13.49

%

 

 

13.28

%

 

 

13.49

%

 

 

13.29

%

 

 

13.49

%

 

Tier 1 capital (to average assets)

 

 

11.37

%

 

 

11.95

%

 

 

11.71

%

 

 

11.81

%

 

 

11.91

%

 

 

11.37

%

 

 

11.91

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

13,698,010

 

 

 

13,665,400

 

 

 

13,657,223

 

 

 

13,606,256

 

 

 

13,603,149

 

 

 

13,656,859

 

 

 

13,583,553

 

 

Diluted

 

 

17,394,884

 

 

 

17,184,991

 

 

 

17,018,680

 

 

 

16,936,003

 

 

 

16,890,381

 

 

 

17,133,845

 

 

 

16,877,891

 

 

Period end shares outstanding

 

 

13,769,780

 

 

 

13,667,591

 

 

 

13,665,505

 

 

 

13,652,888

 

 

 

13,604,665

 

 

 

13,769,780

 

 

 

13,604,665

 

 

Book value per share

 

$

28.65

 

 

$

28.13

 

 

$

26.99

 

 

$

26.18

 

 

$

25.41

 

 

$

28.65

 

 

$

25.41

 

 

Tangible book value per share (B)

 

$

27.29

 

 

$

26.75

 

 

$

25.60

 

 

$

24.79

 

 

$

24.02

 

 

$

27.29

 

 

$

24.02

 

 

___________

(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.

 

8


 

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)

 

 

 

Three Months Ended

 

 

December 31, 2024

 

September 30, 2024

 

December 31, 2023

(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

 

$

3,937,405

 

 

$

76,017

 

 

7.68%

 

$

3,801,954

 

 

$

75,468

 

 

7.90%

 

$

3,600,980

 

 

$

70,325

 

 

7.75%

Investment securities

 

 

342,474

 

 

 

4,939

 

 

5.74%

 

 

300,969

 

 

 

4,532

 

 

5.99%

 

 

203,376

 

 

 

2,746

 

 

5.36%

Federal funds sold and other
        interest-earning assets

 

 

379,836

 

 

 

4,580

 

 

4.80%

 

 

209,841

 

 

 

2,719

 

 

5.15%

 

 

299,165

 

 

 

3,996

 

 

5.30%

Total interest-earning assets

 

 

4,659,715

 

 

 

85,536

 

 

7.30%

 

 

4,312,764

 

 

 

82,719

 

 

7.63%

 

 

4,103,521

 

 

 

77,067

 

 

7.45%

Less allowance for loan losses

 

 

(39,855

)

 

 

 

 

 

 

 

(38,425

)

 

 

 

 

 

 

 

(38,274

)

 

 

 

 

 

Total interest-earning assets, net of
        allowance

 

 

4,619,860

 

 

 

 

 

 

 

 

4,274,339

 

 

 

 

 

 

 

 

4,065,247

 

 

 

 

 

 

Noninterest-earning assets

 

 

195,143

 

 

 

 

 

 

 

 

195,681

 

 

 

 

 

 

 

 

194,659

 

 

 

 

 

 

Total assets

 

$

4,815,003

 

 

 

 

 

 

 

$

4,470,020

 

 

 

 

 

 

 

$

4,259,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

3,692,533

 

 

$

40,233

 

 

4.33%

 

$

3,383,897

 

 

$

40,407

 

 

4.75%

 

$

3,202,462

 

 

$

37,671

 

 

4.67%

Note payable and line of credit

 

 

109,294

 

 

 

1,708

 

 

6.22%

 

 

113,536

 

 

 

1,853

 

 

6.49%

 

 

118,816

 

 

 

2,065

 

 

6.90%

FHLB advances

 

 

11,900

 

 

 

157

 

 

5.25%

 

 

5,757

 

 

 

76

 

 

5.25%

 

 

 

 

 

Total interest-bearing liabilities

 

 

3,813,727

 

 

 

42,098

 

 

4.39%

 

 

3,503,190

 

 

 

42,336

 

 

4.81%

 

 

3,321,278

 

 

 

39,736

 

 

4.75%

Noninterest-bearing deposits

 

 

484,738

 

 

 

 

 

 

 

 

457,451

 

 

 

 

 

 

 

 

472,738

 

 

 

 

 

 

Other liabilities

 

 

56,369

 

 

 

 

 

 

 

 

63,255

 

 

 

 

 

 

 

 

57,918

 

 

 

 

 

 

Total liabilities

 

 

4,354,834

 

 

 

 

 

 

 

 

4,023,896

 

 

 

 

 

 

 

 

3,851,934

 

 

 

 

 

 

Shareholders’ equity

 

 

460,169

 

 

 

 

 

 

 

 

446,124

 

 

 

 

 

 

 

 

407,972

 

 

 

 

 

 

Total liabilities and shareholders’
        equity

 

$

4,815,003

 

 

 

 

 

 

 

$

4,470,020

 

 

 

 

 

 

 

$

4,259,906

 

 

 

 

 

 

Net interest income

 

 

 

 

$

43,438

 

 

 

 

 

 

 

$

40,383

 

 

 

 

 

 

 

$

37,331

 

 

 

Net interest spread (1)

 

 

 

 

 

 

 

2.91%

 

 

 

 

 

 

 

2.82%

 

 

 

 

 

 

 

2.70%

Net interest margin (2)

 

 

 

 

 

 

 

3.71%

 

 

 

 

 

 

 

3.73%

 

 

 

 

 

 

 

3.61%

___________

(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.

9


 

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)

 

 

 

Years Ended

 

 

December 31, 2024

 

December 31, 2023

(Dollars in thousands)

 

Average
Outstanding
Balance

 

 

Interest
Earned/
Paid
(3)

 

 

Average
Yield/
Rate

 

Average
Outstanding
Balance

 

 

Interest
Earned/
Paid
(3)

 

 

Average
Yield/
Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earnings assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Loans, gross

 

$

3,786,776

 

 

$

295,259

 

 

7.80%

 

$

3,366,180

 

 

$

248,911

 

 

7.39%

   Investment securities

 

 

286,039

 

 

 

17,055

 

 

5.96%

 

 

197,286

 

 

 

8,313

 

 

4.21%

   Federal funds sold and other interest-earning
           assets

 

 

312,590

 

 

 

16,042

 

 

5.13%

 

 

181,782

 

 

 

9,320

 

 

5.13%

      Total interest-earning assets

 

 

4,385,405

 

 

 

328,356

 

 

7.49%

 

 

3,745,248

 

 

 

266,544

 

 

7.12%

Less allowance for loan losses

 

 

(38,500

)

 

 

 

 

 

 

 

(36,750

)

 

 

 

 

 

Total interest-earning assets, net of allowance

 

 

4,346,905

 

 

 

 

 

 

 

 

3,708,498

 

 

 

 

 

 

Noninterest-earning assets

 

 

194,775

 

 

 

 

 

 

 

 

188,514

 

 

 

 

 

 

      Total assets

 

$

4,541,680

 

 

 

 

 

 

 

$

3,897,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Interest-bearing deposits

 

$

3,459,151

 

 

$

159,748

 

 

4.62%

 

$

2,785,605

 

 

$

115,044

 

 

4.13%

   Note payable and line of credit

 

 

116,222

 

 

 

7,617

 

 

6.55%

 

 

113,552

 

 

 

7,657

 

 

6.74%

   FHLB advances and other

 

 

4,438

 

 

 

233

 

 

5.25%

 

 

79,546

 

 

 

4,318

 

 

5.43%

      Total interest-bearing liabilities

 

 

3,579,811

 

 

 

167,598

 

 

4.68%

 

 

2,978,703

 

 

 

127,019

 

 

4.26%

Noninterest-bearing deposits

 

 

460,537

 

 

 

 

 

 

 

 

473,558

 

 

 

 

 

 

Other liabilities

 

 

61,148

 

 

 

 

 

 

 

 

47,527

 

 

 

 

 

 

      Total liabilities

 

 

4,101,496

 

 

 

 

 

 

 

 

3,499,788

 

 

 

 

 

 

Shareholders’ equity

 

 

440,184

 

 

 

 

 

 

 

 

397,224

 

 

 

 

 

 

      Total liabilities and shareholders’ equity

 

$

4,541,680

 

 

 

 

 

 

 

$

3,897,012

 

 

 

 

 

 

Net interest income

 

 

 

 

$

160,758

 

 

 

 

 

 

 

$

139,525

 

 

 

Net interest spread (1)

 

 

 

 

 

 

 

2.81%

 

 

 

 

 

 

 

2.86%

Net interest margin (2)

 

 

 

 

 

 

 

3.67%

 

 

 

 

 

 

 

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.

 

 

10


 

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)

 

 

 

Three Months Ended

 

 

 

 

2024

 

 

2023

 

 

(Dollars in thousands)

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period-end Loan Portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

448,134

 

 

$

470,222

 

 

$

499,941

 

 

$

510,266

 

 

$

520,822

 

 

Non-farm non-residential non-owner occupied

 

 

652,119

 

 

 

611,617

 

 

 

612,268

 

 

 

598,311

 

 

 

586,626

 

 

Residential

 

 

336,736

 

 

 

339,558

 

 

 

349,461

 

 

 

345,890

 

 

 

342,589

 

 

Construction, development & other

 

 

871,373

 

 

 

825,302

 

 

 

756,646

 

 

 

725,176

 

 

 

693,553

 

 

Farmland

 

 

30,915

 

 

 

35,650

 

 

 

31,049

 

 

 

29,706

 

 

 

30,396

 

 

Commercial & industrial

 

 

1,497,408

 

 

 

1,499,302

 

 

 

1,361,401

 

 

 

1,350,289

 

 

 

1,263,077

 

 

Consumer

 

 

1,859

 

 

 

2,002

 

 

 

2,216

 

 

 

2,382

 

 

 

2,555

 

 

Municipal and other

 

 

127,881

 

 

 

106,178

 

 

 

145,177

 

 

 

184,158

 

 

 

199,170

 

 

Total loans

 

$

3,966,425

 

 

$

3,889,831

 

 

$

3,758,159

 

 

$

3,746,178

 

 

$

3,638,788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

26,773

 

 

$

23,522

 

 

$

23,910

 

 

$

18,130

 

 

$

16,649

 

 

Loans > 90 days and still accruing

 

 

1,173

 

 

 

522

 

 

 

507

 

 

 

3,614

 

 

 

670

 

 

Total nonperforming loans

 

 

27,946

 

 

 

24,044

 

 

 

24,417

 

 

 

21,744

 

 

 

17,319

 

 

Other real estate owned

 

 

862

 

 

 

283

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Total nonperforming assets

 

$

28,808

 

 

$

24,327

 

 

$

24,417

 

 

$

21,744

 

 

$

17,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QTD Net charge-offs (recoveries)

 

$

879

 

 

$

(57

)

 

$

1,829

 

 

$

742

 

 

$

1,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

10,433

 

 

$

9,696

 

 

$

10,051

 

 

$

2,369

 

 

$

1,211

 

 

Non-farm non-residential non-owner occupied

 

 

-

 

 

 

68

 

 

 

74

 

 

 

1,225

 

 

 

1,235

 

 

Residential

 

 

2,226

 

 

 

2,664

 

 

 

2,767

 

 

 

2,837

 

 

 

2,938

 

 

Construction, development & other

 

 

400

 

 

 

1

 

 

 

301

 

 

 

406

 

 

 

247

 

 

Commercial & industrial

 

 

13,714

 

 

 

11,093

 

 

 

10,717

 

 

 

11,293

 

 

 

11,018

 

 

Total nonaccrual loans

 

$

26,773

 

 

$

23,522

 

 

$

23,910

 

 

$

18,130

 

 

$

16,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.58

%

 

 

0.53

%

 

 

0.55

%

 

 

0.47

%

 

 

0.39

%

 

Nonperforming loans to total loans

 

 

0.70

%

 

 

0.62

%

 

 

0.65

%

 

 

0.58

%

 

 

0.48

%

 

Allowance for credit losses to total loans

 

 

1.02

%

 

 

1.02

%

 

 

1.02

%

 

 

1.02

%

 

 

1.02

%

 

QTD Net charge-offs (recoveries) to average loans
        (annualized)

 

 

0.09

%

 

 

(0.01

%)

 

 

0.20

%

 

 

0.08

%

 

 

0.17

%

 

 

11


 

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

12


 

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

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

(Dollars in thousands, except share and per share data)

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

 

December 31

 

 

December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

$

460,719

 

 

$

450,548

 

 

$

434,998

 

 

$

423,618

 

 

$

411,974

 

 

$

460,719

 

 

$

411,974

 

Less: Preferred stock including additional
        paid in capital

 

 

66,160

 

 

 

66,117

 

 

 

66,225

 

 

 

66,225

 

 

 

66,225

 

 

 

66,160

 

 

 

66,225

 

Total common equity

 

 

394,559

 

 

 

384,431

 

 

 

368,773

 

 

 

357,393

 

 

 

345,749

 

 

 

394,559

 

 

 

345,749

 

Less: Goodwill and core deposit intangibles,
        net

 

 

18,841

 

 

 

18,882

 

 

 

18,922

 

 

 

18,963

 

 

 

19,003

 

 

 

18,841

 

 

 

19,003

 

Tangible common equity

 

$

375,718

 

 

$

365,549

 

 

$

349,851

 

 

$

338,430

 

 

$

326,746

 

 

$

375,718

 

 

$

326,746

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding at end of period

 

 

13,769,780

 

 

 

13,667,591

 

 

 

13,665,505

 

 

 

13,652,888

 

 

 

13,604,665

 

 

 

13,769,780

 

 

 

13,604,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book Value Per Share

 

$

28.65

 

 

$

28.13

 

 

$

26.99

 

 

$

26.18

 

 

$

25.41

 

 

$

28.65

 

 

$

25.41

 

Tangible Book Value Per Share

 

$

27.29

 

 

$

26.75

 

 

$

25.60

 

 

$

24.79

 

 

$

24.02

 

 

$

27.29

 

 

$

24.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

4,942,446

 

 

$

4,627,770

 

 

$

4,474,119

 

 

$

4,660,403

 

 

$

4,396,074

 

 

$

4,942,446

 

 

$

4,396,074

 

Adjustments: Goodwill and core deposit
        intangibles, net

 

 

18,841

 

 

 

18,882

 

 

 

18,922

 

 

 

18,963

 

 

 

19,003

 

 

 

18,841

 

 

 

19,003

 

Tangible assets

 

$

4,923,605

 

 

$

4,608,888

 

 

$

4,455,197

 

 

$

4,641,440

 

 

$

4,377,071

 

 

$

4,923,605

 

 

$

4,377,071

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Common Equity to Total Assets

 

 

7.98

%

 

 

8.31

%

 

 

8.24

%

 

 

7.67

%

 

 

7.86

%

 

 

7.98

%

 

 

7.86

%

Tangible Common Equity to Tangible Assets

 

 

7.63

%

 

 

7.93

%

 

 

7.85

%

 

 

7.29

%

 

 

7.46

%

 

 

7.63

%

 

 

7.46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Tangible Common Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders' equity

 

$

460,169

 

 

$

446,124

 

 

$

433,510

 

 

$

420,646

 

 

$

407,972

 

 

$

440,184

 

 

$

397,224

 

Less: Average preferred stock including
        additional paid in capital

 

 

66,121

 

 

 

66,223

 

 

 

66,225

 

 

 

66,225

 

 

 

66,225

 

 

 

66,198

 

 

 

66,225

 

Average common equity

 

 

394,048

 

 

 

379,901

 

 

 

367,285

 

 

 

354,421

 

 

 

341,747

 

 

 

373,986

 

 

 

330,999

 

Less: Average goodwill and core deposit
        intangibles, net

 

 

18,865

 

 

 

18,906

 

 

 

18,946

 

 

 

18,987

 

 

 

19,027

 

 

 

18,926

 

 

 

19,088

 

Average tangible common equity

 

$

375,183

 

 

$

360,995

 

 

$

348,339

 

 

$

335,434

 

 

$

322,720

 

 

$

355,060

 

 

$

311,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

13,733

 

 

$

12,775

 

 

$

10,796

 

 

$

10,367

 

 

$

9,689

 

 

$

47,671

 

 

$

33,401

 

Less: Dividends declared on preferred stock

 

 

1,196

 

 

 

1,198

 

 

 

1,184

 

 

 

1,171

 

 

 

1,197

 

 

 

4,749

 

 

 

4,736

 

Net Income Available to Common Shareholders

 

$

12,537

 

 

$

11,577

 

 

$

9,612

 

 

$

9,196

 

 

$

8,492

 

 

$

42,922

 

 

$

28,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Common Equity(A)

 

 

12.66

%

 

 

12.12

%

 

 

10.53

%

 

 

10.44

%

 

 

9.86

%

 

 

11.48

%

 

 

8.66

%

Return on Average Tangible Common Equity(A)

 

 

13.29

%

 

 

12.76

%

 

 

11.10

%

 

 

11.03

%

 

 

10.44

%

 

 

12.09

%

 

 

9.19

%

___________

(A) Interim periods annualized.

13


v3.24.4
Document And Entity Information
Jan. 22, 2025
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Jan. 22, 2025
Entity Registrant Name THIRD COAST BANCSHARES, INC.
Entity Central Index Key 0001781730
Entity Emerging Growth Company true
Entity File Number 001-41028
Entity Incorporation, State or Country Code TX
Entity Tax Identification Number 46-2135597
Entity Address, Address Line One 20202 Highway 59 North
Entity Address, Address Line Two Suite 190
Entity Address, City or Town Humble
Entity Address, State or Province TX
Entity Address, Postal Zip Code 77338
City Area Code 281
Local Phone Number 446-7000
Entity Information, Former Legal or Registered Name Not Applicable
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Ex Transition Period false
Title of 12(b) Security Common stock, par value $1.00 per share
Trading Symbol TCBX
Security Exchange Name NASDAQ

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