Record EPS of $0.70 and Diluted EPS of $0.63 in Latest Quarterly Results
HOUSTON, July 24,
2024 /PRNewswire/ -- 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 second quarter financial results.
2024 Second Quarter Financial and Operational
Highlights
- Net income for the second quarter of 2024 totaled $10.8 million, or $0.70 and $0.63 per
basic and diluted share, respectively, compared to $10.4 million, or $0.68 and $0.61 per
basic and diluted share, respectively, for the first quarter of
2024.
- Return on average assets of 0.97% annualized for the second
quarter of 2024 compared to 0.95% annualized for the first quarter
of 2024 and 0.96% annualized for the second quarter of 2023.
- Efficiency Ratio continues to improve from 64.11% for the first
quarter of 2024 to 61.39% for the second quarter of 2024.
- Gross loans grew $12.0 million to
$3.76 billion as of June 30, 2024, 0.3% more than the $3.75 billion reported as of March 31, 2024.
- Noninterest-bearing demand deposits increased $40.5 million, or 9.5%, from $424.0 million as of March
31, 2024, to $464.5 million as
of June 30, 2024 and represented
12.0% of total deposits as of June 30,
2024, compared to 10.5% of total deposits as of March 31, 2024.
- Book value per share and tangible book value per
share(1) increased to $26.99 and $25.60,
respectively, as of June 30, 2024,
compared to $26.18 and $24.79, respectively, as of March 31, 2024.
- Opened our 17th and 18th branch locations
during the second quarter of 2024 with de novo branches
located in Austin, Texas and
The Woodlands, Texas.
"Third Coast's second quarter performance highlights our
commitment to improving profitability through operational
efficiencies," said Bart Caraway,
Chairman, President, and CEO of Third Coast. "The Company's
focus on sustainable growth and operational excellence has played a
key role in driving positive results. Through strategic process
refinement and the adoption of advanced technologies, we have
streamlined operations, optimized resource management, and fostered
a stronger team dynamic. These efforts have resulted in
improved metrics, including increased margins, stabilized expenses,
and a more favorable deposit mix, as reported in the efficiency
ratio and pre-provision net revenue results.
"Moving forward, we remain dedicated to investing in internal
initiatives that drive long-term value creation. We appreciate the
continued support from our shareholders and are determined to build
upon this positive momentum through 2024. Together, we will deliver
sustainable growth, improve efficiencies, and strive towards even
greater profitability," Mr. Caraway concluded.
|
(1)
|
Non-GAAP financial
measure. Please refer to the table titled "GAAP Reconciliation and
Management's Explanation of Non-GAAP Financial Measures" at the end
of this press release for a reconciliation of these non-GAAP
financial measures.
|
Operating Results
Net Income and Earnings Per Share
Net income totaled $10.8 million
for the second quarter of 2024, compared to $10.4 million for the first quarter of 2024 and
$8.9 million for the second quarter
of 2023. Net income available to common shareholders totaled
$9.6 million for the second quarter
of 2024, compared to $9.2 million for
the first quarter of 2024 and $7.7
million for the second quarter of 2023. The
quarter-over-quarter increase was primarily due to an increase in
net interest income resulting from higher rates on loans, an
increase in noninterest income, and continued savings on
noninterest expenses related to the implementation of cost
reduction initiatives in prior quarters. The increase in net income
was partially offset by a slightly higher provision for credit
losses for the quarter. Dividends on our Series A Convertible
Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled
$1.2 million for each of the quarters
ended June 30, 2024 and March 31, 2024. Basic and diluted earnings per
share were $0.70 per share and
$0.63 per share, respectively, in the
second quarter of 2024 compared to $0.68 per share and $0.61 per share, respectively, in the first
quarter of 2024 and $0.57 per share
and $0.53 per share, respectively, in
the second quarter of 2023.
Net Interest Margin and Net Interest Income
The net interest margin for the second quarter of 2024 was
3.62%, compared to 3.60% for the first quarter of 2024 and 3.82%
for the second quarter of 2023. The yield on loans for the second
quarter of 2024 was 7.86%, compared to 7.75% for the first quarter
of 2024 and 7.29% for the second quarter of 2023.
Net interest income totaled $38.9
million for the second quarter of 2024, an increase of 2.0%
from $38.1 million for the first
quarter of 2024 and an increase of 14.0% from $34.1 million for the second quarter of 2023.
Interest income totaled $81.2 million
for the second quarter of 2024, an increase of 3.0% from
$78.9 million for the first quarter
of 2024 and an increase of 29.5% from $62.7
million for the second quarter of 2023. Interest and fees on
loans increased $2.4 million, or
3.4%, compared to the first quarter of 2024, and increased
$13.8 million, or 23.3%, compared to
the second quarter of 2023. Interest expense was $42.4 million for the second quarter of 2024, an
increase of $1.6 million, or 3.8%,
from $40.8 million for the first
quarter of 2024 and an increase of $13.8
million, or 48.0%, from $28.6
million for the second quarter of 2023.
Noninterest Income and Noninterest Expense
Noninterest income totaled $2.9
million for the second quarter of 2024, compared to
$2.3 million for the first quarter of
2024 and $2.3 million for the second
quarter of 2023. The sequential increase in noninterest income was
primarily due to the increase in Small Business Investment Company
income.
Noninterest expense totaled $25.6
million for the second quarter of 2024, down from
$25.9 million for the first quarter
of 2024 and up from $23.8 million for
the second quarter of 2023. The decrease from the first quarter of
2024 was primarily attributed to decreased salary and employee
benefit expenses resulting from operating efficiencies and
continued cost reduction measures.
The efficiency ratio was 61.39% for the second quarter of 2024,
compared to 64.11% for the first quarter of 2024 and 65.52% for the
second quarter of 2023.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended June 30,
2024, gross loans increased to $3.76
billion, a slight increase of $12.0
million, or 0.3%, from $3.75
billion as of March 31, 2024,
and an increase of $423.9 million, or
12.7%, from $3.33 billion as of
June 30, 2023. Commercial and
industrial and real estate loans accounted for most of the loan
growth for the second quarter of 2024, with commercial and
industrial loans increasing $11.1
million and real estate loans increasing $40.0 million from March
31, 2024. The increases were offset slightly by a decrease
in municipal loans of $39.0 million
from March 31, 2024.
Asset Quality
Nonperforming loans were $24.4
million at June 30, 2024,
compared to $21.7 million at
March 31, 2024, and $10.0 million at June 30,
2023. As of June 30, 2024, the
nonperforming loans to total loans ratio was 0.65%, compared to
0.58% as of March 31, 2024, and 0.30%
as of June 30, 2023. The net increase
in nonaccrual loans from quarter-to-quarter of $5.8 million was primarily the result of one
commercial real estate loan relationship consisting of five loans
totaling $7.9 million being placed on
nonaccrual during the second quarter of 2024. The loan to value on
the real estate supporting this relationship is 69% and management
does not anticipate a loss on these loans. In addition, the
increase in nonaccrual loans was partially offset by nonaccrual
loan charge-offs of $2.1 million
during the quarter. The decrease in loans over 90 days and still
accruing was primarily the result of a $2.9
million commercial real estate loan that matured and was
pending renewal at the end of the first quarter which was renewed
during the second quarter.
The provision for credit loss recorded for the second quarter of
2024 was $1.9 million and the
allowance for credit losses of $38.2
million represented 1.02% of the $3.76 billion in gross loans outstanding as of
June 30, 2024.
The Company recorded net charge-offs of $1.8 million and $72,000 for the three months ended June 30, 2024 and June 30,
2023, respectively.
Deposits and Composition
Deposits totaled $3.86 billion as
of June 30, 2024, a decrease of 4.8%
from $4.05 billion as of March 31, 2024, and an increase of 13.1% from
$3.41 billion as of June 30, 2023. Noninterest-bearing demand
deposits increased from $424.0
million as of March 31, 2024,
to $464.5 million as of June 30, 2024 and represented 12.0% of total
deposits as of June 30, 2024,
compared to 10.5% of total deposits as of March 31, 2024. As of June
30, 2024, interest-bearing demand deposits decreased
$218.1 million, or 7.1%, time
deposits decreased $9.9 million, or
2.0%, and savings accounts decreased $7.6
million, or 18.6%, respectively, from March 31, 2024.
The average cost of deposits was 4.22% for the second quarter of
2024, representing a 13-basis point increase from the first quarter
of 2024 and a 94-basis point increase from the second quarter of
2023. The year-over-year increase was due to interest-bearing
demand deposit growth and the increase in rates paid on
interest-bearing demand deposits.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss its 2024
second quarter results, which will be broadcast live over the
Internet, on Thursday, July 25, 2024,
at 11:00 a.m. Eastern Time /
10:00 a.m. Central Time. To
participate in the call, dial 201-389-0869 and ask for the Third
Coast Bancshares, Inc. call at least 10 minutes prior to the start
time, or access it live over the Internet at
https://ir.thirdcoast.bank/events-and-presentations/events/. For
those who cannot listen to the live call, a replay will be
available through August 1, 2024, and
may be accessed by dialing 201-612-7415 and using passcode
13746566#. 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 18 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, 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.
Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor
Relations
(713) 529-6600
TCBX@dennardlascar.com
|
Third Coast
Bancshares, Inc. and Subsidiary
|
|
Financial
Highlights
|
|
(unaudited)
|
|
|
|
2024
|
|
|
2023
|
|
|
(Dollars in
thousands)
|
|
June
30
|
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
June
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
241,809
|
|
|
$
|
367,831
|
|
|
$
|
296,926
|
|
|
$
|
142,122
|
|
|
$
|
244,813
|
|
|
Federal funds
sold
|
|
|
12,088
|
|
|
|
130,429
|
|
|
|
114,919
|
|
|
|
144,408
|
|
|
|
23,206
|
|
|
Total cash and cash
equivalents
|
|
|
253,897
|
|
|
|
498,260
|
|
|
|
411,845
|
|
|
|
286,530
|
|
|
|
268,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing time
deposits in other banks
|
|
|
350
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Investment securities
available-for-sale
|
|
|
286,167
|
|
|
|
246,291
|
|
|
|
178,087
|
|
|
|
201,035
|
|
|
|
194,467
|
|
|
Loans held for
investment
|
|
|
3,758,159
|
|
|
|
3,746,178
|
|
|
|
3,638,788
|
|
|
|
3,559,953
|
|
|
|
3,334,277
|
|
|
Less: allowance
for credit losses
|
|
|
(38,211)
|
|
|
|
(38,140)
|
|
|
|
(37,022)
|
|
|
|
(38,067)
|
|
|
|
(37,243)
|
|
|
Loans, net
|
|
|
3,719,948
|
|
|
|
3,708,038
|
|
|
|
3,601,766
|
|
|
|
3,521,886
|
|
|
|
3,297,034
|
|
|
Accrued interest
receivable
|
|
|
27,518
|
|
|
|
25,769
|
|
|
|
23,120
|
|
|
|
22,821
|
|
|
|
19,579
|
|
|
Premises and equipment,
net
|
|
|
27,626
|
|
|
|
26,844
|
|
|
|
28,554
|
|
|
|
29,010
|
|
|
|
28,720
|
|
|
Bank-owned life
insurance
|
|
|
67,030
|
|
|
|
66,443
|
|
|
|
65,861
|
|
|
|
65,303
|
|
|
|
64,762
|
|
|
Non-marketable
securities, at cost
|
|
|
16,147
|
|
|
|
16,095
|
|
|
|
16,041
|
|
|
|
15,799
|
|
|
|
20,687
|
|
|
Deferred tax asset,
net
|
|
|
8,972
|
|
|
|
8,712
|
|
|
|
9,227
|
|
|
|
8,335
|
|
|
|
7,808
|
|
|
Derivative
assets
|
|
|
7,799
|
|
|
|
11,015
|
|
|
|
8,828
|
|
|
|
10,889
|
|
|
|
9,372
|
|
|
Right-of-use assets -
operating leases
|
|
|
20,944
|
|
|
|
20,729
|
|
|
|
21,439
|
|
|
|
21,192
|
|
|
|
21,778
|
|
|
Goodwill and other
intangible assets
|
|
|
18,922
|
|
|
|
18,963
|
|
|
|
19,003
|
|
|
|
19,043
|
|
|
|
19,084
|
|
|
Other assets
|
|
|
18,799
|
|
|
|
13,244
|
|
|
|
12,303
|
|
|
|
13,949
|
|
|
|
12,172
|
|
|
Total
assets
|
|
$
|
4,474,119
|
|
|
$
|
4,660,403
|
|
|
$
|
4,396,074
|
|
|
$
|
4,215,792
|
|
|
$
|
3,963,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
|
$
|
464,498
|
|
|
$
|
424,019
|
|
|
$
|
459,553
|
|
|
$
|
500,187
|
|
|
$
|
529,474
|
|
|
Interest
bearing
|
|
|
3,391,093
|
|
|
|
3,626,653
|
|
|
|
3,343,595
|
|
|
|
3,146,635
|
|
|
|
2,878,807
|
|
|
Total
deposits
|
|
|
3,855,591
|
|
|
|
4,050,672
|
|
|
|
3,803,148
|
|
|
|
3,646,822
|
|
|
|
3,408,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued interest
payable
|
|
|
5,668
|
|
|
|
3,927
|
|
|
|
4,794
|
|
|
|
4,318
|
|
|
|
3,522
|
|
|
Derivative
liabilities
|
|
|
7,626
|
|
|
|
8,253
|
|
|
|
10,687
|
|
|
|
10,519
|
|
|
|
9,177
|
|
|
Lease liability -
operating leases
|
|
|
21,919
|
|
|
|
21,647
|
|
|
|
22,280
|
|
|
|
21,958
|
|
|
|
22,439
|
|
|
Other
liabilities
|
|
|
30,786
|
|
|
|
27,806
|
|
|
|
23,763
|
|
|
|
15,467
|
|
|
|
12,792
|
|
|
Line of credit - Senior
Debt
|
|
|
36,875
|
|
|
|
43,875
|
|
|
|
38,875
|
|
|
|
35,875
|
|
|
|
30,875
|
|
|
Note payable -
Subordinated Debentures, net
|
|
|
80,656
|
|
|
|
80,605
|
|
|
|
80,553
|
|
|
|
80,502
|
|
|
|
80,451
|
|
|
Total
liabilities
|
|
|
4,039,121
|
|
|
|
4,236,785
|
|
|
|
3,984,100
|
|
|
|
3,815,461
|
|
|
|
3,567,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A Convertible
Non-Cumulative Preferred Stock
|
|
|
69
|
|
|
|
69
|
|
|
|
69
|
|
|
|
69
|
|
|
|
69
|
|
|
Series B Convertible
Perpetual Preferred Stock
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Common stock
|
|
|
13,744
|
|
|
|
13,731
|
|
|
|
13,683
|
|
|
|
13,679
|
|
|
|
13,688
|
|
|
Common stock -
non-voting
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Additional paid-in
capital
|
|
|
320,496
|
|
|
|
320,077
|
|
|
|
319,613
|
|
|
|
319,134
|
|
|
|
318,769
|
|
|
Retained
earnings
|
|
|
97,582
|
|
|
|
87,971
|
|
|
|
78,775
|
|
|
|
70,283
|
|
|
|
65,889
|
|
|
Accumulated other
comprehensive income (loss)
|
|
|
4,206
|
|
|
|
2,869
|
|
|
|
933
|
|
|
|
(1,735)
|
|
|
|
(1,371)
|
|
|
Treasury stock, at
cost
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
|
Total shareholders'
equity
|
|
|
434,998
|
|
|
|
423,618
|
|
|
|
411,974
|
|
|
|
400,331
|
|
|
|
395,945
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
4,474,119
|
|
|
$
|
4,660,403
|
|
|
$
|
4,396,074
|
|
|
$
|
4,215,792
|
|
|
$
|
3,963,482
|
|
|
Third Coast
Bancshares, Inc. and Subsidiary
|
|
Financial
Highlights
|
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
|
(Dollars in
thousands, except per share data)
|
|
June
30
|
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
June
30
|
|
|
June
30
|
|
|
June
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
73,103
|
|
|
$
|
70,671
|
|
|
$
|
70,325
|
|
|
$
|
65,380
|
|
|
$
|
59,295
|
|
|
$
|
143,774
|
|
|
$
|
113,206
|
|
|
|
Investment securities
available-for-sale
|
|
|
4,491
|
|
|
|
3,093
|
|
|
|
2,746
|
|
|
|
1,990
|
|
|
|
2,029
|
|
|
|
7,584
|
|
|
|
3,577
|
|
|
|
Federal funds sold and
other
|
|
|
3,631
|
|
|
|
5,112
|
|
|
|
3,996
|
|
|
|
2,015
|
|
|
|
1,389
|
|
|
|
8,743
|
|
|
|
3,309
|
|
|
|
Total interest
income
|
|
|
81,225
|
|
|
|
78,876
|
|
|
|
77,067
|
|
|
|
69,385
|
|
|
|
62,713
|
|
|
|
160,101
|
|
|
|
120,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
accounts
|
|
|
40,410
|
|
|
|
38,698
|
|
|
|
37,671
|
|
|
|
30,345
|
|
|
|
24,936
|
|
|
|
79,108
|
|
|
|
47,028
|
|
|
|
FHLB advances and other
borrowings
|
|
|
1,957
|
|
|
|
2,099
|
|
|
|
2,065
|
|
|
|
3,772
|
|
|
|
3,681
|
|
|
|
4,056
|
|
|
|
6,138
|
|
|
|
Total interest
expense
|
|
|
42,367
|
|
|
|
40,797
|
|
|
|
39,736
|
|
|
|
34,117
|
|
|
|
28,617
|
|
|
|
83,164
|
|
|
|
53,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
38,858
|
|
|
|
38,079
|
|
|
|
37,331
|
|
|
|
35,268
|
|
|
|
34,096
|
|
|
|
76,937
|
|
|
|
66,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
|
1,900
|
|
|
|
1,560
|
|
|
|
1,100
|
|
|
|
2,620
|
|
|
|
1,400
|
|
|
|
3,460
|
|
|
|
2,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
after credit loss expense
|
|
|
36,958
|
|
|
|
36,519
|
|
|
|
36,231
|
|
|
|
32,648
|
|
|
|
32,696
|
|
|
|
73,477
|
|
|
|
64,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
|
1,515
|
|
|
|
1,505
|
|
|
|
850
|
|
|
|
884
|
|
|
|
720
|
|
|
|
3,020
|
|
|
|
1,499
|
|
|
|
Earnings on bank-owned
life insurance
|
|
|
587
|
|
|
|
582
|
|
|
|
559
|
|
|
|
541
|
|
|
|
526
|
|
|
|
1,169
|
|
|
|
1,001
|
|
|
|
Gain on sale of
investment securities available-for-sale
|
|
|
123
|
|
|
|
157
|
|
|
|
21
|
|
|
|
364
|
|
|
|
-
|
|
|
|
280
|
|
|
|
97
|
|
|
|
Gain on sale of SBA
loans
|
|
|
-
|
|
|
|
30
|
|
|
|
326
|
|
|
|
114
|
|
|
|
-
|
|
|
|
30
|
|
|
|
-
|
|
|
|
Derivative
fees
|
|
|
28
|
|
|
|
66
|
|
|
|
358
|
|
|
|
159
|
|
|
|
247
|
|
|
|
94
|
|
|
|
246
|
|
|
|
Other
|
|
|
635
|
|
|
|
3
|
|
|
|
43
|
|
|
|
(196)
|
|
|
|
787
|
|
|
|
638
|
|
|
|
1,339
|
|
|
|
Total noninterest
income
|
|
|
2,888
|
|
|
|
2,343
|
|
|
|
2,157
|
|
|
|
1,866
|
|
|
|
2,280
|
|
|
|
5,231
|
|
|
|
4,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
15,917
|
|
|
|
16,502
|
|
|
|
16,119
|
|
|
|
17,353
|
|
|
|
15,033
|
|
|
|
32,419
|
|
|
|
28,745
|
|
|
|
Occupancy and equipment
expense
|
|
|
3,146
|
|
|
|
3,045
|
|
|
|
2,875
|
|
|
|
2,925
|
|
|
|
2,852
|
|
|
|
6,191
|
|
|
|
5,485
|
|
|
|
Legal and
professional
|
|
|
1,621
|
|
|
|
1,385
|
|
|
|
2,305
|
|
|
|
2,001
|
|
|
|
1,547
|
|
|
|
3,006
|
|
|
|
3,477
|
|
|
|
Data processing and
network expense
|
|
|
1,046
|
|
|
|
1,418
|
|
|
|
987
|
|
|
|
1,284
|
|
|
|
1,261
|
|
|
|
2,464
|
|
|
|
2,464
|
|
|
|
Regulatory
assessments
|
|
|
1,005
|
|
|
|
980
|
|
|
|
942
|
|
|
|
532
|
|
|
|
458
|
|
|
|
1,985
|
|
|
|
1,124
|
|
|
|
Advertising and
marketing
|
|
|
406
|
|
|
|
355
|
|
|
|
614
|
|
|
|
515
|
|
|
|
812
|
|
|
|
761
|
|
|
|
1,498
|
|
|
|
Software purchases and
maintenance
|
|
|
828
|
|
|
|
817
|
|
|
|
839
|
|
|
|
729
|
|
|
|
455
|
|
|
|
1,645
|
|
|
|
807
|
|
|
|
Loan
operations
|
|
|
262
|
|
|
|
226
|
|
|
|
134
|
|
|
|
272
|
|
|
|
302
|
|
|
|
488
|
|
|
|
267
|
|
|
|
Telephone and
communications
|
|
|
141
|
|
|
|
134
|
|
|
|
125
|
|
|
|
117
|
|
|
|
129
|
|
|
|
275
|
|
|
|
268
|
|
|
|
Other
|
|
|
1,257
|
|
|
|
1,052
|
|
|
|
1,474
|
|
|
|
1,777
|
|
|
|
986
|
|
|
|
2,309
|
|
|
|
1,744
|
|
|
|
Total noninterest
expense
|
|
|
25,629
|
|
|
|
25,914
|
|
|
|
26,414
|
|
|
|
27,505
|
|
|
|
23,835
|
|
|
|
51,543
|
|
|
|
45,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME BEFORE
INCOME TAX
EXPENSE
|
|
|
14,217
|
|
|
|
12,948
|
|
|
|
11,974
|
|
|
|
7,009
|
|
|
|
11,141
|
|
|
|
27,165
|
|
|
|
22,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
3,421
|
|
|
|
2,581
|
|
|
|
2,285
|
|
|
|
1,431
|
|
|
|
2,250
|
|
|
|
6,002
|
|
|
|
4,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
10,796
|
|
|
|
10,367
|
|
|
|
9,689
|
|
|
|
5,578
|
|
|
|
8,891
|
|
|
|
21,163
|
|
|
|
18,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends declared
|
|
|
1,184
|
|
|
|
1,171
|
|
|
|
1,197
|
|
|
|
1,184
|
|
|
|
1,184
|
|
|
|
2,355
|
|
|
|
2,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME AVAILABLE TO
COMMON
SHAREHOLDERS
|
|
$
|
9,612
|
|
|
$
|
9,196
|
|
|
$
|
8,492
|
|
|
$
|
4,394
|
|
|
$
|
7,707
|
|
|
$
|
18,808
|
|
|
$
|
15,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.70
|
|
|
$
|
0.68
|
|
|
$
|
0.62
|
|
|
$
|
0.32
|
|
|
$
|
0.57
|
|
|
$
|
1.38
|
|
|
$
|
1.16
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.63
|
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
|
$
|
0.32
|
|
|
$
|
0.53
|
|
|
$
|
1.25
|
|
|
$
|
1.08
|
|
|
|
Third Coast
Bancshares, Inc. and Subsidiary
|
|
Financial
Highlights
|
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
|
(Dollars in
thousands, except share and per share data)
|
|
June
30
|
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
June
30
|
|
|
June
30
|
|
|
June
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
basic
|
|
$
|
0.70
|
|
|
$
|
0.68
|
|
|
$
|
0.62
|
|
|
$
|
0.32
|
|
|
$
|
0.57
|
|
|
$
|
1.38
|
|
|
$
|
1.16
|
|
|
|
Earnings per share,
diluted
|
|
$
|
0.63
|
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
|
$
|
0.32
|
|
|
$
|
0.53
|
|
|
$
|
1.25
|
|
|
$
|
1.08
|
|
|
|
Dividends on common
stock
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
Dividends on Series A
Convertible
Non-Cumulative Preferred
Stock
|
|
$
|
17.06
|
|
|
$
|
16.88
|
|
|
$
|
17.25
|
|
|
$
|
17.06
|
|
|
$
|
17.06
|
|
|
$
|
33.94
|
|
|
$
|
33.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (A)
|
|
|
0.97
|
%
|
|
|
0.95
|
%
|
|
|
0.90
|
%
|
|
|
0.56
|
%
|
|
|
0.96
|
%
|
|
|
0.96
|
%
|
|
|
0.99
|
%
|
|
|
Return on average
common equity (A)
|
|
|
10.53
|
%
|
|
|
10.44
|
%
|
|
|
9.86
|
%
|
|
|
5.19
|
%
|
|
|
9.44
|
%
|
|
|
10.48
|
%
|
|
|
9.85
|
%
|
|
|
Return on average
tangible common
equity (A)
(B)
|
|
|
11.10
|
%
|
|
|
11.03
|
%
|
|
|
10.44
|
%
|
|
|
5.50
|
%
|
|
|
10.02
|
%
|
|
|
11.06
|
%
|
|
|
10.47
|
%
|
|
|
Net interest margin
(A) (C)
|
|
|
3.62
|
%
|
|
|
3.60
|
%
|
|
|
3.61
|
%
|
|
|
3.71
|
%
|
|
|
3.82
|
%
|
|
|
3.61
|
%
|
|
|
3.80
|
%
|
|
|
Efficiency ratio
(D)
|
|
|
61.39
|
%
|
|
|
64.11
|
%
|
|
|
66.89
|
%
|
|
|
74.07
|
%
|
|
|
65.52
|
%
|
|
|
62.73
|
%
|
|
|
64.52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Coast Bancshares,
Inc. (consolidated):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common equity to
total assets
|
|
|
8.24
|
%
|
|
|
7.67
|
%
|
|
|
7.86
|
%
|
|
|
7.93
|
%
|
|
|
8.32
|
%
|
|
|
8.24
|
%
|
|
|
8.32
|
%
|
|
|
Tangible common equity
to tangible
assets
(B)
|
|
|
7.85
|
%
|
|
|
7.29
|
%
|
|
|
7.46
|
%
|
|
|
7.51
|
%
|
|
|
7.88
|
%
|
|
|
7.85
|
%
|
|
|
7.88
|
%
|
|
|
Common equity tier 1
(to risk weighted
assets)
|
|
|
8.29
|
%
|
|
|
7.97
|
%
|
|
|
8.06
|
%
|
|
|
8.01
|
%
|
|
|
7.75
|
%
|
|
|
8.29
|
%
|
|
|
7.75
|
%
|
|
|
Tier 1 capital (to risk
weighted assets)
|
|
|
9.88
|
%
|
|
|
9.54
|
%
|
|
|
9.70
|
%
|
|
|
9.68
|
%
|
|
|
9.39
|
%
|
|
|
9.88
|
%
|
|
|
9.39
|
%
|
|
|
Total capital (to risk
weighted assets)
|
|
|
12.78
|
%
|
|
|
12.41
|
%
|
|
|
12.66
|
%
|
|
|
12.72
|
%
|
|
|
12.31
|
%
|
|
|
12.78
|
%
|
|
|
12.31
|
%
|
|
|
Tier 1 capital (to
average assets)
|
|
|
9.24
|
%
|
|
|
9.15
|
%
|
|
|
9.23
|
%
|
|
|
9.79
|
%
|
|
|
10.17
|
%
|
|
|
9.24
|
%
|
|
|
10.17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Coast
Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
(to risk weighted
assets)
|
|
|
12.52
|
%
|
|
|
12.32
|
%
|
|
|
12.52
|
%
|
|
|
12.48
|
%
|
|
|
12.06
|
%
|
|
|
12.52
|
%
|
|
|
12.06
|
%
|
|
|
Tier 1 capital (to risk
weighted assets)
|
|
|
12.52
|
%
|
|
|
12.32
|
%
|
|
|
12.52
|
%
|
|
|
12.48
|
%
|
|
|
12.06
|
%
|
|
|
12.52
|
%
|
|
|
12.06
|
%
|
|
|
Total capital (to risk
weighted assets)
|
|
|
13.49
|
%
|
|
|
13.28
|
%
|
|
|
13.49
|
%
|
|
|
13.49
|
%
|
|
|
12.99
|
%
|
|
|
13.49
|
%
|
|
|
12.99
|
%
|
|
|
Tier 1 capital (to
average assets)
|
|
|
11.71
|
%
|
|
|
11.81
|
%
|
|
|
11.91
|
%
|
|
|
12.62
|
%
|
|
|
13.06
|
%
|
|
|
11.71
|
%
|
|
|
13.06
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
13,657,223
|
|
|
|
13,606,256
|
|
|
|
13,603,149
|
|
|
|
13,608,718
|
|
|
|
13,588,747
|
|
|
|
13,631,740
|
|
|
|
13,560,802
|
|
|
|
Diluted
|
|
|
17,018,680
|
|
|
|
16,936,003
|
|
|
|
16,890,381
|
|
|
|
13,873,187
|
|
|
|
16,855,822
|
|
|
|
16,977,342
|
|
|
|
16,828,974
|
|
|
|
Period end shares
outstanding
|
|
|
13,665,505
|
|
|
|
13,652,888
|
|
|
|
13,604,665
|
|
|
|
13,600,211
|
|
|
|
13,609,697
|
|
|
|
13,665,505
|
|
|
|
13,609,697
|
|
|
|
Book value per
share
|
|
$
|
26.99
|
|
|
$
|
26.18
|
|
|
$
|
25.41
|
|
|
$
|
24.57
|
|
|
$
|
24.23
|
|
|
$
|
26.99
|
|
|
$
|
24.23
|
|
|
|
Tangible book value per
share (B)
|
|
$
|
25.60
|
|
|
$
|
24.79
|
|
|
$
|
24.02
|
|
|
$
|
23.17
|
|
|
$
|
22.82
|
|
|
$
|
25.60
|
|
|
$
|
22.82
|
|
|
___________
|
(A) Interim periods
annualized.
|
|
(B) Refer to the
calculation of these non-GAAP financial measures and a
reconciliation to their most directly comparable GAAP financial
measures on pages 12 and 13 of this News Release.
|
|
(C) Net interest margin
represents net interest income divided by average interest-earning
assets.
|
|
(D) Represents total
noninterest expense divided by the sum of net interest income plus
noninterest income. Taxes and provision for credit losses are not
part of this calculation.
|
|
Third Coast
Bancshares, Inc. and Subsidiary
|
|
Financial
Highlights
|
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
June 30,
2024
|
|
March 31,
2024
|
|
June 30,
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
$
|
297,653
|
|
|
$
|
4,491
|
|
|
6.07 %
|
|
$
|
202,277
|
|
|
$
|
3,093
|
|
|
6.15 %
|
|
$
|
208,980
|
|
|
$
|
2,029
|
|
|
3.89 %
|
|
Loans, gross
|
|
|
3,740,544
|
|
|
|
73,103
|
|
|
7.86 %
|
|
|
3,665,378
|
|
|
|
70,671
|
|
|
7.75 %
|
|
|
3,262,804
|
|
|
|
59,295
|
|
|
7.29 %
|
|
Federal funds sold and
other
interest-earning
assets
|
|
|
277,144
|
|
|
|
3,631
|
|
|
5.27 %
|
|
|
383,929
|
|
|
|
5,112
|
|
|
5.36 %
|
|
|
112,239
|
|
|
|
1,389
|
|
|
4.96 %
|
|
Total interest-earning
assets
|
|
|
4,315,341
|
|
|
|
81,225
|
|
|
7.57 %
|
|
|
4,251,584
|
|
|
|
78,876
|
|
|
7.46 %
|
|
|
3,584,023
|
|
|
|
62,713
|
|
|
7.02 %
|
|
Less allowance for loan
losses
|
|
|
(38,429)
|
|
|
|
|
|
|
|
|
(37,278)
|
|
|
|
|
|
|
|
|
(36,381)
|
|
|
|
|
|
|
|
Total interest-earning
assets, net of
allowance
|
|
|
4,276,912
|
|
|
|
|
|
|
|
|
4,214,306
|
|
|
|
|
|
|
|
|
3,547,642
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
195,193
|
|
|
|
|
|
|
|
|
193,070
|
|
|
|
|
|
|
|
|
185,705
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
4,472,105
|
|
|
|
|
|
|
|
$
|
4,407,376
|
|
|
|
|
|
|
|
$
|
3,733,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
$
|
3,411,592
|
|
|
$
|
40,410
|
|
|
4.76 %
|
|
$
|
3,346,847
|
|
|
$
|
38,698
|
|
|
4.65 %
|
|
$
|
2,581,560
|
|
|
$
|
24,936
|
|
|
3.87 %
|
|
Note payable and line
of credit
|
|
|
121,275
|
|
|
|
1,957
|
|
|
6.49 %
|
|
|
120,884
|
|
|
|
2,099
|
|
|
6.98 %
|
|
|
111,301
|
|
|
|
1,858
|
|
|
6.70 %
|
|
FHLB
advances
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
135,826
|
|
|
|
1,823
|
|
|
5.38 %
|
|
Total interest-bearing
liabilities
|
|
|
3,532,867
|
|
|
|
42,367
|
|
|
4.82 %
|
|
|
3,467,731
|
|
|
|
40,797
|
|
|
4.73 %
|
|
|
2,828,687
|
|
|
|
28,617
|
|
|
4.06 %
|
|
Noninterest-bearing
deposits
|
|
|
442,672
|
|
|
|
|
|
|
|
|
457,054
|
|
|
|
|
|
|
|
|
470,564
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
63,056
|
|
|
|
|
|
|
|
|
61,945
|
|
|
|
|
|
|
|
|
40,323
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
4,038,595
|
|
|
|
|
|
|
|
|
3,986,730
|
|
|
|
|
|
|
|
|
3,339,574
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
433,510
|
|
|
|
|
|
|
|
|
420,646
|
|
|
|
|
|
|
|
|
393,773
|
|
|
|
|
|
|
|
Total liabilities and
shareholders'
equity
|
|
$
|
4,472,105
|
|
|
|
|
|
|
|
$
|
4,407,376
|
|
|
|
|
|
|
|
$
|
3,733,347
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
38,858
|
|
|
|
|
|
|
|
$
|
38,079
|
|
|
|
|
|
|
|
$
|
34,096
|
|
|
|
|
Net interest spread
(1)
|
|
|
|
|
|
|
|
2.75 %
|
|
|
|
|
|
|
|
2.73 %
|
|
|
|
|
|
|
|
2.96 %
|
|
Net interest margin
(2)
|
|
|
|
|
|
|
|
3.62 %
|
|
|
|
|
|
|
|
3.60 %
|
|
|
|
|
|
|
|
3.82 %
|
___________
|
(1) Net interest spread
is the average yield on interest earning assets minus the average
rate on interest-bearing liabilities.
|
|
(2) Net interest margin
represents net interest income divided by average interest-earning
assets.
|
|
(3) Interest
earned/paid includes accretion of deferred loan fees, premiums and
discounts.
|
|
(4)
Annualized.
|
|
Third Coast
Bancshares, Inc. and Subsidiary
|
|
Financial
Highlights
|
|
(unaudited)
|
|
|
|
Six Months
Ended
|
|
|
June 30,
2024
|
|
June 30,
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earnings
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
$
|
249,965
|
|
|
$
|
7,584
|
|
|
6.10 %
|
|
$
|
193,674
|
|
|
$
|
3,577
|
|
|
3.72 %
|
|
Loans,
gross
|
|
|
3,702,960
|
|
|
|
143,774
|
|
|
7.81 %
|
|
|
3,217,070
|
|
|
|
113,206
|
|
|
7.10 %
|
|
Federal
funds sold and other interest-earning
assets
|
|
|
330,536
|
|
|
|
8,743
|
|
|
5.32 %
|
|
|
139,813
|
|
|
|
3,309
|
|
|
4.77 %
|
|
Total interest-earning
assets
|
|
|
4,283,461
|
|
|
|
160,101
|
|
|
7.52 %
|
|
|
3,550,557
|
|
|
|
120,092
|
|
|
6.82 %
|
|
Less allowance for loan
losses
|
|
|
(37,853)
|
|
|
|
|
|
|
|
|
(35,634)
|
|
|
|
|
|
|
|
Total interest-earning
assets, net of allowance
|
|
|
4,245,608
|
|
|
|
|
|
|
|
|
3,514,923
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
194,133
|
|
|
|
|
|
|
|
|
184,294
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
4,439,741
|
|
|
|
|
|
|
|
$
|
3,699,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
|
|
$
|
3,379,219
|
|
|
$
|
79,108
|
|
|
4.71 %
|
|
$
|
2,588,616
|
|
|
$
|
47,028
|
|
|
3.66 %
|
|
Note
payable and line of credit
|
|
|
121,080
|
|
|
|
4,056
|
|
|
6.74 %
|
|
|
111,275
|
|
|
|
3,672
|
|
|
6.65 %
|
|
FHLB
advances and other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
94,544
|
|
|
|
2,466
|
|
|
5.26 %
|
|
Total interest-bearing
liabilities
|
|
|
3,500,299
|
|
|
|
83,164
|
|
|
4.78 %
|
|
|
2,794,435
|
|
|
|
53,166
|
|
|
3.84 %
|
|
Noninterest-bearing
deposits
|
|
|
449,863
|
|
|
|
|
|
|
|
|
474,115
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
62,501
|
|
|
|
|
|
|
|
|
41,359
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
4,012,663
|
|
|
|
|
|
|
|
|
3,309,909
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
427,078
|
|
|
|
|
|
|
|
|
389,308
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
4,439,741
|
|
|
|
|
|
|
|
$
|
3,699,217
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
76,937
|
|
|
|
|
|
|
|
$
|
66,926
|
|
|
|
|
Net interest spread
(1)
|
|
|
|
|
|
|
|
2.74 %
|
|
|
|
|
|
|
|
2.98 %
|
|
Net interest margin
(2)
|
|
|
|
|
|
|
|
3.61 %
|
|
|
|
|
|
|
|
3.80 %
|
___________
|
(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
|
|
|
|
|
2024
|
|
|
2023
|
|
|
|
(Dollars in
thousands)
|
|
June
30
|
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
June
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end Loan
Portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-farm
non-residential owner occupied
|
|
$
|
499,941
|
|
|
$
|
510,266
|
|
|
$
|
520,822
|
|
|
$
|
517,917
|
|
|
$
|
513,934
|
|
|
|
Non-farm
non-residential non-owner occupied
|
|
|
612,268
|
|
|
|
598,311
|
|
|
|
586,626
|
|
|
|
566,973
|
|
|
|
547,120
|
|
|
|
Residential
|
|
|
349,461
|
|
|
|
345,890
|
|
|
|
342,589
|
|
|
|
326,354
|
|
|
|
310,842
|
|
|
|
Construction,
development & other
|
|
|
756,646
|
|
|
|
725,176
|
|
|
|
693,553
|
|
|
|
655,822
|
|
|
|
595,601
|
|
|
|
Farmland
|
|
|
31,049
|
|
|
|
29,706
|
|
|
|
30,396
|
|
|
|
30,646
|
|
|
|
24,219
|
|
|
|
Commercial &
industrial
|
|
|
1,361,401
|
|
|
|
1,350,289
|
|
|
|
1,263,077
|
|
|
|
1,288,320
|
|
|
|
1,164,624
|
|
|
|
Consumer
|
|
|
2,216
|
|
|
|
2,382
|
|
|
|
2,555
|
|
|
|
2,665
|
|
|
|
2,891
|
|
|
|
Municipal and
other
|
|
|
145,177
|
|
|
|
184,158
|
|
|
|
199,170
|
|
|
|
171,256
|
|
|
|
175,046
|
|
|
|
Total loans
|
|
$
|
3,758,159
|
|
|
$
|
3,746,178
|
|
|
$
|
3,638,788
|
|
|
$
|
3,559,953
|
|
|
$
|
3,334,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
23,910
|
|
|
$
|
18,130
|
|
|
$
|
16,649
|
|
|
$
|
13,963
|
|
|
$
|
9,968
|
|
|
|
Loans > 90 days and
still accruing
|
|
|
507
|
|
|
|
3,614
|
|
|
|
670
|
|
|
|
2,442
|
|
|
|
-
|
|
|
|
Total nonperforming
loans
|
|
|
24,417
|
|
|
|
21,744
|
|
|
|
17,319
|
|
|
|
16,405
|
|
|
|
9,968
|
|
|
|
Other real estate
owned
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Total nonperforming
assets
|
|
$
|
24,417
|
|
|
$
|
21,744
|
|
|
$
|
17,319
|
|
|
$
|
16,405
|
|
|
$
|
9,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QTD Net charge-offs
(recoveries)
|
|
$
|
1,829
|
|
|
$
|
742
|
|
|
$
|
1,505
|
|
|
$
|
24
|
|
|
$
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-farm
non-residential owner occupied
|
|
$
|
10,051
|
|
|
$
|
2,369
|
|
|
$
|
1,211
|
|
|
$
|
978
|
|
|
$
|
832
|
|
|
|
Non-farm
non-residential non-owner occupied
|
|
|
74
|
|
|
|
1,225
|
|
|
|
1,235
|
|
|
|
1,235
|
|
|
|
1,417
|
|
|
|
Residential
|
|
|
2,767
|
|
|
|
2,837
|
|
|
|
2,938
|
|
|
|
3,058
|
|
|
|
494
|
|
|
|
Construction,
development & other
|
|
|
301
|
|
|
|
406
|
|
|
|
247
|
|
|
|
567
|
|
|
|
36
|
|
|
|
Commercial &
industrial
|
|
|
10,717
|
|
|
|
11,293
|
|
|
|
11,018
|
|
|
|
8,125
|
|
|
|
7,189
|
|
|
|
Total nonaccrual
loans
|
|
$
|
23,910
|
|
|
$
|
18,130
|
|
|
$
|
16,649
|
|
|
$
|
13,963
|
|
|
$
|
9,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
total assets
|
|
|
0.55
|
%
|
|
|
0.47
|
%
|
|
|
0.39
|
%
|
|
|
0.39
|
%
|
|
|
0.25
|
%
|
|
|
Nonperforming loans to
total loans
|
|
|
0.65
|
%
|
|
|
0.58
|
%
|
|
|
0.48
|
%
|
|
|
0.46
|
%
|
|
|
0.30
|
%
|
|
|
Allowance for credit
losses to total loans
|
|
|
1.02
|
%
|
|
|
1.02
|
%
|
|
|
1.02
|
%
|
|
|
1.07
|
%
|
|
|
1.12
|
%
|
|
|
QTD Net charge-offs
(recoveries) to average loans
(annualized)
|
|
|
0.20
|
%
|
|
|
0.08
|
%
|
|
|
0.17
|
%
|
|
|
0.00
|
%
|
|
|
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
|
|
|
Six Months
Ended
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
(Dollars in
thousands, except share and per share data)
|
|
June
30
|
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
June
30
|
|
|
June
30
|
|
|
June
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
$
|
434,998
|
|
|
$
|
423,618
|
|
|
$
|
411,974
|
|
|
$
|
400,331
|
|
|
$
|
395,945
|
|
|
$
|
434,998
|
|
|
$
|
395,945
|
|
|
Less: Preferred
stock including additional
paid in
capital
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
Total common
equity
|
|
|
368,773
|
|
|
|
357,393
|
|
|
|
345,749
|
|
|
|
334,106
|
|
|
|
329,720
|
|
|
|
368,773
|
|
|
|
329,720
|
|
|
Less: Goodwill
and core deposit intangibles,
net
|
|
|
18,922
|
|
|
|
18,963
|
|
|
|
19,003
|
|
|
|
19,043
|
|
|
|
19,084
|
|
|
|
18,922
|
|
|
|
19,084
|
|
|
Tangible common
equity
|
|
$
|
349,851
|
|
|
$
|
338,430
|
|
|
$
|
326,746
|
|
|
$
|
315,063
|
|
|
$
|
310,636
|
|
|
$
|
349,851
|
|
|
$
|
310,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at end of period
|
|
|
13,665,505
|
|
|
|
13,652,888
|
|
|
|
13,604,665
|
|
|
|
13,600,211
|
|
|
|
13,609,697
|
|
|
|
13,665,505
|
|
|
|
13,609,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value Per
Share
|
|
$
|
26.99
|
|
|
$
|
26.18
|
|
|
$
|
25.41
|
|
|
$
|
24.57
|
|
|
$
|
24.23
|
|
|
$
|
26.99
|
|
|
$
|
24.23
|
|
|
Tangible Book Value
Per Share
|
|
$
|
25.60
|
|
|
$
|
24.79
|
|
|
$
|
24.02
|
|
|
$
|
23.17
|
|
|
$
|
22.82
|
|
|
$
|
25.60
|
|
|
$
|
22.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
4,474,119
|
|
|
$
|
4,660,403
|
|
|
$
|
4,396,074
|
|
|
$
|
4,215,792
|
|
|
$
|
3,963,482
|
|
|
$
|
4,474,119
|
|
|
$
|
3,963,482
|
|
|
Adjustments:
Goodwill and core deposit
intangibles,
net
|
|
|
18,922
|
|
|
|
18,963
|
|
|
|
19,003
|
|
|
|
19,043
|
|
|
|
19,084
|
|
|
|
18,922
|
|
|
|
19,084
|
|
|
Tangible
assets
|
|
$
|
4,455,197
|
|
|
$
|
4,641,440
|
|
|
$
|
4,377,071
|
|
|
$
|
4,196,749
|
|
|
$
|
3,944,398
|
|
|
$
|
4,455,197
|
|
|
$
|
3,944,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Equity to
Total Assets
|
|
|
8.24
|
%
|
|
|
7.67
|
%
|
|
|
7.86
|
%
|
|
|
7.93
|
%
|
|
|
8.32
|
%
|
|
|
8.24
|
%
|
|
|
8.32
|
%
|
|
Tangible Common
Equity to Tangible Assets
|
|
|
7.85
|
%
|
|
|
7.29
|
%
|
|
|
7.46
|
%
|
|
|
7.51
|
%
|
|
|
7.88
|
%
|
|
|
7.85
|
%
|
|
|
7.88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Tangible
Common Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
$
|
433,510
|
|
|
$
|
420,646
|
|
|
$
|
407,972
|
|
|
$
|
402,049
|
|
|
$
|
393,773
|
|
|
$
|
427,078
|
|
|
$
|
389,308
|
|
|
Less: Average
preferred stock including
additional paid in
capital
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
Average common
equity
|
|
|
367,285
|
|
|
|
354,421
|
|
|
|
341,747
|
|
|
|
335,824
|
|
|
|
327,548
|
|
|
|
360,853
|
|
|
|
323,083
|
|
|
Less: Average
goodwill and core deposit
intangibles,
net
|
|
|
18,946
|
|
|
|
18,987
|
|
|
|
19,027
|
|
|
|
19,068
|
|
|
|
19,108
|
|
|
|
18,967
|
|
|
|
19,128
|
|
|
Average tangible common
equity
|
|
$
|
348,339
|
|
|
$
|
335,434
|
|
|
$
|
322,720
|
|
|
$
|
316,756
|
|
|
$
|
308,440
|
|
|
$
|
341,886
|
|
|
$
|
303,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
10,796
|
|
|
$
|
10,367
|
|
|
$
|
9,689
|
|
|
$
|
5,578
|
|
|
$
|
8,891
|
|
|
$
|
21,163
|
|
|
$
|
18,134
|
|
|
Less: Dividends
declared on preferred stock
|
|
|
1,184
|
|
|
|
1,171
|
|
|
|
1,197
|
|
|
|
1,184
|
|
|
|
1,184
|
|
|
|
2,355
|
|
|
|
2,355
|
|
|
Net Income Available to
Common Shareholders
|
|
$
|
9,612
|
|
|
$
|
9,196
|
|
|
$
|
8,492
|
|
|
$
|
4,394
|
|
|
$
|
7,707
|
|
|
$
|
18,808
|
|
|
$
|
15,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Common Equity(A)
|
|
|
10.53
|
%
|
|
|
10.44
|
%
|
|
|
9.86
|
%
|
|
|
5.19
|
%
|
|
|
9.44
|
%
|
|
|
10.48
|
%
|
|
|
9.85
|
%
|
|
Return on Average
Tangible Common Equity(A)
|
|
|
11.10
|
%
|
|
|
11.03
|
%
|
|
|
10.44
|
%
|
|
|
5.50
|
%
|
|
|
10.02
|
%
|
|
|
11.06
|
%
|
|
|
10.47
|
%
|
___________
|
(A) Interim periods
annualized.
|
View original
content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-2024-second-quarter-financial-results-302205080.html
SOURCE Third Coast Bancshares