TCBX

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record EPS and net interest income were driven by strong organic loan production and the successful integration of the Keystone merger. The bank achieved significant positive operating leverage as revenue growth outpaced flat expenses, improving the efficiency ratio to 56.5%. Management completed the sale of Third Coast Commercial Capital assets to sharpen focus on core banking while retaining a revenue-sharing interest. Strategic talent acquisition remains a primary growth engine, with five experienced commercial bankers added in Q2 and five more expected in Q3. Deposit growth of $140.4 million was supported by a $65.5 million increase in non-interest-bearing deposits, reflecting a focus on relationship-based funding. The average cost of deposits declined by 12 basis points due to improved pricing discipline and a more favorable funding mix. Management expects the net interest margin to remain flat or slightly increase in Q3, aided by upcoming loan securitizations. A third securitization closed on July 15th, with a fourth likely to close in August to manage balance sheet growth and capital. Cost savings from the Keystone systems integration are projected at $100,000 per month starting August 1st, increasing by another $150,000 per month in February 2027. Quarterly loan growth is expected to return to a normalized range of $75 million to $125 million following an exceptional Q2. Non-interest expense is projected to remain flat in Q3 as merger-related savings are offset by the onboarding costs of new senior lenders. Non-performing loans decreased by $5.6 million, though this was primarily due to a $17.1 million loan transfer to other real estate owned (OREO). The disposition of Third Coast Commercial Capital is expected to improve future credit metrics, as the subsidiary historically accounted for 44% of total net charge-offs. Management noted emerging stress in the small SBA-guaranteed portfolio, though 44% of total non-accruals remain SBA-guaranteed. A $17.1 million OREO medical office building in Southeast Texas is currently being marketed for sale following successful restrictive covenant modifications. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that $200 million growth quarters are the exception and they will use securitizations to manage the balance sheet when growth spikes. The bank maintains a tight credit box and will pass on deals that do not meet specific rate, return on capital, or structural hurdles. NIM exceeded targets due to a 50% year-over-year increase in non-interest-bearing demand deposits. Securitizations are expected to provide a margin tailwind similar to previous years when the bank maintained a 4%+ margin. Internal goals aim to drive the efficiency ratio below 55% through scale and the maturation of recently hired lending teams. Management expects the absolute expense number to increase over time, but to decrease as a percentage of average earning assets.

Interested in Third Coast Bancshares, Inc.? Here are five stocks we like better. Third Coast Bancshares posted a strong second quarter with record diluted EPS, net interest income up 12.4% to $60.3 million, and net interest margin expanding to 3.83%, above management’s post-Keystone target. Loan and deposit growth remained healthy, with total loans up about $185 million and total deposits up $140.4 million, while the average cost of deposits fell 12 basis points as the bank continued to benefit from improved funding mix. Credit quality and efficiency improved as non-performing loans fell to 0.55% of total loans and the efficiency ratio improved sharply to 56.5% from 66.1%; management also completed the sale of Third Coast Commercial Capital to simplify operations and focus on core banking. Regional Bank Buybacks: 5 Institutions Making Big Moves Third Coast Bancshares (NASDAQ:TCBX) reported what executives described as another strong quarter, citing record diluted earnings per share, higher net interest income, disciplined loan growth and stable credit trends during the company’s second quarter 2026 earnings call. Founder, Chairman, President and Chief Executive Officer Bart Caraway said the results reflected the bank’s long-running priorities of “disciplined growth, relationship-based funding, positive operating leverage, and consistent credit execution.” He said the quarter showed progress in loan and deposit growth, profitability and balance sheet management, while the company continued to invest in its commercial banking team. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Chief Financial Officer John McWhorter said net interest income rose to $60.3 million, up 12.4% from the first quarter. He attributed the increase to organic loan production, balance sheet optimization following the Keystone merger and expansion in lower-cost funding sources. Total loans increased by approximately $185 million, or 3.5%, during the quarter. McWhorter said commercial and industrial lending accounted for substantially all of that increase, rising approximately $187 million from the prior quarter. → 3 Photonics Companies Making Quantum Tech Possible Deposit trends also improved. Non-interest-bearing deposits increased by $65.5 million, while total deposits rose $140.4 million from the first quarter. McWhorter said the bank’s average cost of deposits declined 12 basis points, reflecting improvements in pricing and mix. Net interest margin expanded to 3.83%, above the 3.75% target management had set after the Keystone merger. McWhorter said the result reflected disciplined loan and deposit pricing, better funding trends and execution on Keystone integration. In response to an analyst question, he said the margin could be “flat to maybe up just a little bit” in the third quarter before considering the impact of securitizations, which he said should provide additional support. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Third Coast also reported stronger operating leverage. McWhorter said total non-interest expense was essentially flat compared with the prior quarter, while the efficiency ratio improved to 56.5% from 66.1% in the first quarter. He said the company expects cost savings related to systems integration of $100,000 per month beginning Aug. 1 and an additional $150,000 per month beginning Feb. 1, 2027. The bank completed its Keystone core conversion during the weekend before the call, which Caraway said “went very smoothly.” Management also discussed the impact of hiring on expenses. Caraway said the company added five experienced commercial banking professionals during the second quarter and expects to hire a similar number in the third quarter. McWhorter said expenses are likely to be roughly flat in the third quarter, as integration-related savings are expected to be offset by the cost of new hires. Caraway said the company’s internal goal is to lower the efficiency ratio below 55 over time, while McWhorter said non-interest expense as a percentage of average earning assets should improve as the bank scales. The company completed the sale of substantially all of the assets of Third Coast Commercial Capital, or TCC, effective June 25. McWhorter said the transaction generated total consideration of approximately $27.5 million and a gain of $3.5 million at closing. The sale also includes an ongoing revenue-sharing arrangement. Caraway said the transaction simplifies the organization and sharpens its focus on core banking platforms, while still allowing the company to serve factoring clients through a strategic partnership. Chief Credit Officer Audrey Duncan said the disposition was viewed favorably from a credit standpoint, noting that over the last five and a half years, 44% of the company’s total net charge-offs came from Third Coast Commercial Capital. Duncan said credit fundamentals remained healthy in the second quarter. Non-performing loans declined by approximately $5.6 million and improved to 0.55% of total loans, compared with 0.68% in the prior quarter. The decline was primarily driven by the transfer of a $17.1 million loan to other real estate owned, partially offset by three relationships totaling $10.1 million being placed on non-accrual and a $2.1 million increase in loans more than 90 days past due and still accruing. Duncan said the three non-accrual relationships are well secured and that the company does not anticipate losses on them. She also noted that 44% of total non-accruals are SBA guaranteed. The company recorded net recoveries of $150,000 in the quarter, marking a second consecutive quarter of net recoveries. Provision for credit losses totaled $2.1 million, and the allowance for credit losses increased to $53.6 million, or 0.99% of total loans, compared with 0.98% in the prior quarter. As of June 30, total loans were $5.44 billion. Duncan said the portfolio remained diversified, with C&I loans representing 44% of total loans, construction, development and land loans at 16%, owner-occupied commercial real estate at 11% and non-owner occupied commercial real estate at 17%. During the question-and-answer session, analysts asked about the $17.1 million OREO property. Duncan said it was a medical office building in Southeast Texas that was foreclosed in April. She said the company is working on leases to increase occupancy, has listed the property for sale and successfully modified a restrictive covenant that should help broaden leasing and marketing options. Caraway said the company remains optimistic heading into the second half of 2026, citing strong customer activity, healthy loan pipelines, improving funding trends and a resilient Texas economy. Asked about the pace of loan growth, Caraway emphasized that Third Coast is maintaining “a pretty tight credit box” and is focused on loan pricing, structure and return on capital. He said loan growth can vary by quarter because of paydowns and timing, but described the overall trajectory as positive. McWhorter added that quarters with about $200 million in loan growth are “probably going to be more the exception than the rule.” He said a quarterly loan growth pace of $75 million to $125 million remains a reasonable guide, though securitizations can affect reported loan balances. The company closed its third securitization on July 15, and McWhorter said another securitization in August looked likely at the time of the call. Caraway also highlighted the bank’s deposit strategy, including growth in rural markets acquired through the 2019 Heritage Bank merger. He said deposits in those markets have grown approximately 90%, representing an 11.3% compound annual growth rate, compared with roughly 3.1% growth in the underlying markets. Management said the company remains focused on profitable growth, funding discipline and credit quality. Caraway said the quarter’s results were driven not only by the level of earnings, but by the “quality and durability” of those earnings. Third Coast Bancshares, Inc operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Third Coast Bancshares Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Second Quarter Delivers Record EPS, Improved Margin Performance, and Double-Digit Increase in Net Interest Income HOUSTON, July 22, 2026 /PRNewswire/ -- Third Coast Bancshares, Inc. (NYSE: TCBX) (and NYSE Texas: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank (the "Bank"), today reported its 2026 second quarter financial results. 2026 Second Quarter Financial Highlights Return on average assets of 1.34% annualized for the second quarter of 2026 compared to 1.08% annualized for the first quarter of 2026 and 1.38% annualized for the second quarter of 2025. Net interest margin of 3.83% for the second quarter of 2026 compared to 3.67% for the first quarter of 2026 and 4.22% for the second quarter of 2025. Net income for the second quarter of 2026 totaled $22.0 million, or $1.25 and $1.08 per basic and diluted share, respectively, compared to $16.4 million, or $1.03 and $0.88 per basic and diluted share, respectively, for the first quarter of 2026 and $16.7 million, or $1.12 and $0.96 per basic and diluted share, respectively, for the second quarter of 2025. Efficiency ratio of 56.51% for the second quarter of 2026 compared to 66.06% for the first quarter of 2026 and 55.45% for the second quarter of 2025. Gross loans grew to $5.44 billion as of June 30, 2026, from $5.25 billion reported as of March 31, 2026. Book value per common share and tangible book value per common share(1) increased to $36.34 and increased to $33.08, respectively, as of June 30, 2026, compared to $35.28 and $31.97, respectively, as of March 31, 2026 and $31.04 and $29.69, respectively, as of June 30, 2025. Effective June 25, 2026, the Company sold substantially all of the assets of Third Coast Commercial Capital, Inc., recognizing a gain of $3.5 million and entering into a structured ongoing revenue sharing arrangement. "Our second quarter results reflect continued execution across our core strategy, with record diluted earnings per share, a double-digit increase in net interest income, disciplined expense management and solid credit performance," said Bart Caraway, Founder, Chairman, President and CEO of Third Coast. "We remain focused on attracting top talent, growing high-quality loans and deposits, and sustaining this momentum through the second half of the year." Operating Results Net Income and Earnings Per Common Share Net income totaled $22.0 million for the second quarter of 2026, compared to $16.4 million for the first quarter of 2026 and $16.7 million for the second quarter of 2025. Net income available to common shareholders totaled $20.8 million for the second quarter of 2026, compared to $15.2 million for the first quarter of 2026 and $15.6 million for the second quarter of 2025. The quarter-over-quarter increase from the first quarter of 2026 was primarily due to an increase in net interest income and the gain on sale of factored receivables. 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, 2026, March 31, 2026 and June 30, 2025. Basic and diluted earnings per common share were $1.25 per share and $1.08 per share, respectively, in the second quarter of 2026, compared to $1.03 per share and $0.88 per share, respectively, in the first quarter of 2026 and $1.12 per share and $0.96 per share, respectively, in the second quarter of 2025. Net Interest Margin and Net Interest Income The net interest margin for the second quarter of 2026 was 3.83%, compared to 3.67% for the first quarter of 2026 and 4.22% for the second quarter of 2025. The yield on loans for the second quarter of 2026 was 7.06%, compared to 7.01% for the first quarter of 2026 and 7.95% for the second quarter of 2025. The cost of interest-bearing deposits for the second quarter of 2026 was 3.41%, compared to 3.53% for the first quarter of 2026 and 4.00% for the second quarter of 2025. Net interest income totaled $60.3 million for the second quarter of 2026, an increase of 12.4% from $53.6 million for the first quarter of 2026 and an increase of 22.1% from $49.4 million for the second quarter of 2025. Interest income totaled $106.0 million for the second quarter of 2026, an increase of 8.8% from $97.4 million for the first quarter of 2026 and an increase of 19.5% from $88.7 million for the second quarter of 2025. The quarter-over-quarter increase from the first quarter of 2026 in interest income primarily resulted from an increase in loans. Interest expense was $45.7 million for the second quarter of 2026, an increase of $2.0 million, or 4.5%, from $43.7 million for the first quarter of 2026 and an increase of $6.4 million, or 16.4%, from $39.3 million for the second quarter of 2025, primarily resulting from an increase in interest-bearing demand deposits slightly offset by a reduction in rates paid on interest-bearing demand deposits. Noninterest Income and Noninterest Expense Noninterest income totaled $7.7 million for the second quarter of 2026, compared to $4.0 million for the first quarter of 2026 and $2.7 million for the second quarter of 2025. The quarter-over-quarter increase from the first quarter of 2026 in noninterest income was primarily due to the gain on sale of factored receivables during the second quarter of 2026. Noninterest expense remained flat at $38.4 million for the second quarter of 2026, compared to $38.1 million for the first quarter of 2026 and $28.8 million for the second quarter of 2025. At June 30, 2026, the number of employees decreased to 504, compared to 514 at March 31, 2026. The efficiency ratio was 56.51% for the second quarter of 2026, compared to 66.06% for the first quarter of 2026 and 55.45% for the second quarter of 2025. Balance Sheet Highlights Loan Portfolio and Composition For the quarter ended June 30, 2026, gross loans increased to $5.44 billion, an increase of $185.0 million, or 3.5%, from $5.25 billion as of March 31, 2026, and an increase of $1.36 billion, or 33.3%, from $4.08 billion as of June 30, 2025. Commercial and industrial loans accounted for the majority of the loan growth for the second quarter of 2026, with commercial and industrial loans increasing $186.7 million from the first quarter of 2026. Asset Quality Nonperforming loans at June 30, 2026 were $30.0 million, compared to $35.6 million at March 31, 2026 and $20.1 million at June 30, 2025. The decrease in nonperforming loans during the second quarter of 2026 was primarily due to the transfer of a $17.1 million loan to other real estate owned, offset by the placement on nonaccrual of three relationships totaling $10.1 million and an increase of $2.1 million in loans over 90 days past due and still accruing. As of June 30, 2026, the nonperforming loans to total loans ratio was 0.55%, compared to 0.68% as of March 31, 2026 and 0.49% as of June 30, 2025. The provision for credit loss recorded for the second quarter of 2026 was $2.1 million, and the allowance for credit losses of $53.6 million represented 0.99% of the $5.44 billion in gross loans outstanding as of June 30, 2026. The provision for credit loss recorded for the first quarter of 2026 was $580,000, and the allowance for credit losses of $51.5 million represented 0.98% of the $5.25 billion in gross loans outstanding as of March 31, 2026. The Company recorded net recoveries of $150,000 and net charge-offs of $2.4 million for the three months ended June 30, 2026 and June 30, 2025, respectively. Deposits and Composition Deposits totaled $5.86 billion as of June 30, 2026, an increase of 2.5% from $5.72 billion as of March 31, 2026, and an increase of 36.8% from $4.28 billion as of June 30, 2025. Noninterest-bearing demand deposits increased from $577.2 million as of March 31, 2026, to $642.7 million as of June 30, 2026 and represented 11.0% and 10.1% of total deposits as of June 30, 2026 and March 31, 2026, respectively. As of June 30, 2026, interest-bearing demand deposits increased $44.2 million, or 1.0%, time deposits increased $28.1 million, or 3.4%, and savings accounts increased $2.5 million, or 9.9%, respectively, from March 31, 2026. The average cost of deposits was 3.05% for the second quarter of 2026, representing a 12-basis point decrease from the first quarter of 2026 and a 54-basis point decrease from the second quarter of 2025. The decreases were primarily due to the reduction in rates paid on interest-bearing demand deposits. Earnings Conference Call Third Coast has scheduled a conference call to discuss its 2026 second quarter results, which will be broadcast live over the Internet, on Thursday, July 23, 2026, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate in the call, dial 201-389-0869 and ask for the Third Coast Bancshares, Inc. call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through July 30, 2026, and may be accessed by dialing 201-612-7415 and using passcode 13757904#. 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 21 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information. Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; economic conditions affecting the real estate market; prepayment risks associated with commercial real estate loans; liquidity risks in the securitization market; operational risks related to the administration of securitized assets; changes in key management personnel; the risk that the benefits from the transaction between Third Coast and Keystone Bancshares, Inc. ("Keystone") may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Third Coast and Keystone operate; the risk that the integration of each party's operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party's businesses into the other's businesses; the possibility that the completion of the transaction may be more expensive than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Third Coast's or Keystone's customers, suppliers, employees or other business partners, including those resulting from the completion of the transaction; the dilution caused by Third Coast's issuance of additional shares of its common stock in connection with the transaction; and other factors that may affect future results of Third Coast and Keystone including changes in asset quality and credit risk, the inability to sustain revenue and earnings growth, changes in interest rates and capital markets, inflation, customer borrowing, repayment, investment and deposit practices, the impact, extent and timing of technological changes, capital management activities and other actions of the Board of Governors of the Federal Reserve System and legislative and regulatory actions and reforms. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2025 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 Common 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. 2,1256,3494,402Earnings on bank-owned life insurance7487508117867431,4981,420Loss on sale of investment securitiesavailable-for-sale(93)(11)(272)-(110)(104)(338)Gain on sale of factored receivables3,463----3,463-Gain on sale of SBA loans----44-74Other42511920410(152)544199Total noninterest income7,7174,0334,2613,6352,65011,7505,757NONINTEREST EXPENSE:Salaries and employee benefits24,80424,80821,10919,56018,17949,61236,520Occupancy and equipment expense3,2593,3492,8452,8612,7836,6085,617Legal and professional2,2713,2212,8501,2541,9275,4923,358Data processing and network expense1,5951,4141,0871,2031,1623,0092,282Regulatory assessments1,3311,2101,1721,1521,2032,5412,509Advertising and marketing7376397334995031,376912Software purchases and maintenance1,4211,4191,0671,0941,1492,8402,408Loan operations and other real estate owned expense656537397294391,193708Telephone and communications158144126134115302290Other2,1921,3621,3051,1061,3863,5542,350Total noninterest expense38,42438,10332,69128,89228,84676,52756,954NET INCOME BEFORE INCOME TAX EXPENSE27,50018,99521,52222,82921,04846,49538,394Income tax expense5,5132,6273,6244,7724,3018,1408,058NET INCOME21,98716,36817,89818,05716,74738,35530,336Preferred stock dividends declared1,1841,1711,1971,1971,1852,3552,356NET INCOME AVAILABLE TO COMMON SHAREHOLDERS$20,803$15,197$16,701$16,860$15,562$36,000$27,980EARNINGS PER COMMON SHARE:Basic earnings per share$1.25$1.03$1.21$1.22$1.12$2.29$2.03Diluted earnings per share$1.08$0.88$1.02$1.03$0.96$1.97$1.74 Third Coast Bancshares, Inc. and SubsidiaryGAAP 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 Common 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 Common Share. The most directly comparable GAAP financial measure for tangible book value per common share is book value per common share. We believe that the tangible book value per common share measure is important to many investors in the marketplace who are interested in changes from period to period in book value per common 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: Contact:Ken Dennard / Natalie HairstonDennard Lascar Investor Relations(713) [email protected] View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-2026-second-quarter-financial-results-302832510.html

Third Coast Bancshares, Inc. (TCBX) came out with quarterly earnings of $1.08 per share, beating the Zacks Consensus Estimate of $0.88 per share. This compares to earnings of $0.96 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +22.73%. A quarter ago, it was expected that this company would post earnings of $0.84 per share when it actually produced earnings of $0.88, delivering a surprise of +4.76%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Third Coast Bancshares, which belongs to the Zacks Banks - Southeast industry, posted revenues of $67.99 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 11.65%. This compares to year-ago revenues of $52.02 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Third Coast Bancshares shares have added about 5.4% since the beginning of the year versus the S&P 500's gain of 9.7%. While Third Coast Bancshares has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Third Coast Bancshares was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.01 on $63 million in revenues for the coming quarter and $3.89 on $245.43 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. First Guaranty Bancshares (FGBI), another stock in the same industry, has yet to report results for the quarter ended June 2026. This bank holding company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +114.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. First Guaranty Bancshares' revenues are expected to be $21.66 million, down 11.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Third Coast Bancshares, Inc. (TCBX) : Free Stock Analysis Report First Guaranty Bancshares, Inc. (FGBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

HOUSTON, June 18, 2026 /PRNewswire/ -- Third Coast Bancshares, Inc. (NYSE & NYSE Texas: TCBX), the holding company of Third Coast Bank, today announced that its Board of Directors has declared a quarterly cash dividend of $17.0625 per share on its 6.75% Series A Convertible Non–Cumulative Preferred Stock. The dividend is payable on July 15, 2026 to holders of record at the close of business on June 30, 2026. About Third Coast Bancshares, Inc. Third Coast Bancshares, Inc. is a commercially focused, Texas-based bank holding company operating primarily in the Austin, Dallas-Fort Worth, Greater Houston, and San Antonio markets through its wholly owned subsidiary, Third Coast Bank. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 21 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information. Forward Looking StatementsThis 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, 2025 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. View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-declares-quarterly-cash-dividend-on-its-6-75-series-a-convertible-non-cumulative-preferred-stock-302804710.html

The Keystone acquisition materially expanded Third Coast’s balance sheet (assets +23.2%, loans +19.5%, deposits +23.5%) but added about $3.3M of nonrecurring merger expenses; diluted EPS was $0.88 or $1.02 excluding those costs, and management expects most cost saves by Q3–Q4 2026 with full run-rate by Jan. 1, 2027. Management sees a blended net interest margin near 3.75% going forward (3.90% standalone vs. 3.50% Keystone), with potential upside from stronger loan fees and a likely Q2 securitization; fee income is running near guidance of about $4M and could rise to $4–4.5M. Credit quality was affected by one large CRE loan moving to nonaccrual—$17.1 million (foreclosed April 7; LTV ~70%)—which modestly raised nonperforming assets, while management says the broader, diversified portfolio remains stable. Interested in Third Coast Bancshares, Inc.? Here are five stocks we like better. Regional Bank Buybacks: 5 Institutions Making Big Moves Third Coast Bancshares (NASDAQ:TCBX) used its first-quarter 2026 earnings call to highlight the early impact of its Keystone Bancshares acquisition, along with management’s outlook for loan growth, expenses, net interest margin and credit quality as the combined company begins integration. Founder, Chairman, President and CEO Bart Caraway said the quarter marked “a significant milestone” with the addition of Keystone, which he said expanded Third Coast’s presence in key Central Texas markets and “translated into an expanded balance sheet.” Caraway said that from year-end, assets increased 23.2%, loans rose 19.5% and deposits grew 23.5%. → Credo Stock Flashes Strong Bullish Signal—Upswing Just Starting Beyond the merger-related lift, Caraway said underlying business activity remained healthy, citing “robust” pipelines and continued strategic investments in the platform. He detailed additions of relationship banking teams in Houston and Dallas, including lenders focused on “select dedicated verticals,” and the launch of an asset-based lending platform intended to broaden the credit suite and contribute to both loan growth and fee income. Third Coast also expanded its public funds and correspondent banking teams, which Caraway said should further diversify funding sources. Chief Financial Officer John McWhorter said the Keystone transaction was the main driver of quarter-over-quarter changes. He said Keystone added roughly 20% to loans and deposits and resulted in approximately $3.3 million in merger-related, non-recurring non-interest expense during the quarter. → Allbirds Exits Shoes, Pivots to AI With NewBird Rebrand McWhorter broke out the merger-related expenses as primarily: $1.6 million in legal and professional costs $1.3 million in salaries and benefits $400,000 in miscellaneous items McWhorter also cited $644,000 in salary and benefits tied to sign-on bonuses during the quarter, noting it was the second consecutive quarter of above-average hiring. He characterized both merger expenses and the bonuses as non-recurring items tied to integration and onboarding. → Amazon Stock Up 30%: Is AMZN Still a Buy Before Earnings? Diluted earnings per share were $0.88, McWhorter said, but excluding merger expenses would have been $1.02. Excluding merger expenses, return on average assets would have been 1.25%, according to the CFO. On the timing of expense savings, McWhorter said most savings should be realized in the third and fourth quarters of 2026, and later added that he expects 100% of cost saves to be in place by Jan. 1 of next year. In response to questions about whether deal assumptions remained intact, McWhorter said the company is currently operating “two different banks today on two different systems,” which is “more expensive,” and that savings from data processing should begin in August following a core conversion planned for July. He also referenced expectations for savings related to professional fees, including audit and other categories, reiterating that “most of the expense saves are still to come.” McWhorter also pointed to tangible book value of $31.97 at quarter end, comparing it favorably to the $31.69 guidance the company provided in October when the acquisition was announced. Net interest income totaled $53.6 million in the first quarter, up 2.7% from the prior quarter, which McWhorter attributed to higher-than-average earning assets after the merger, partially offset by a lower net interest margin. McWhorter said the margin decline was driven primarily by the Keystone merger as well as the reversal of $996,000 in accrued interest from two loans placed on nonaccrual, which he said was worth about four basis points of margin. In response to analyst questions, he said Third Coast “standalone” prior to the interest reversal was around the 3.90% range, consistent with his prior-quarter guidance, while Keystone’s margin was about 3.50%. “You average all that out,” he said, and assuming nothing unusual, “we’re about 3.75% for the margin going forward.” In a follow-up, McWhorter said additional support for margin could come from better loan fees, which he said were “a little light this quarter” but appear to be running heavier. He also said the company did not complete a securitization in the first quarter, but noted management is “always looking at it” and said it was “more likely than not” another securitization could occur in the second quarter. He added that he was not including any potential securitization benefit in the 3.75% margin expectation. Regarding fee income, McWhorter said the company guided to $4 million for the quarter and came in “almost exactly” at that level. He said he expects fee income to be “a little bit higher going forward,” but emphasized Third Coast is “not a huge fee income shop,” and suggested a range of $4 million to $4.5 million. McWhorter said that excluding Keystone, loans grew by approximately $45 million in the quarter, while quarterly average balances rose by more than $100 million. He also said the second quarter started “even stronger,” with April month-to-date loans up over $100 million. Caraway attributed the momentum to a mix of new and recently hired producers, as well as “opportunities from some of the disruption in the market,” which management said has also enabled the bank to recruit talent. Caraway said first-quarter net growth was held back by an “exceptional number of payoffs,” adding that early in the quarter the company expected to be “above budget” on loan growth before the paydowns came through. He told analysts he does not expect that level of payoff headwinds to continue, while also cautioning that growth can be “lumpy” depending on closing timing. On deposits and liquidity, Caraway said Third Coast ended the quarter with more cash because it sold “100%” of Keystone’s investment portfolio, which he said was roughly $75 million, expecting to redeploy proceeds into loan fundings that did not materialize before quarter end due to the payoffs. He said that as loans rebuild—pointing to April’s growth—the loan-to-deposit ratio should “creep up” and benefit margin. Chief Credit Officer Audrey Spaulding said non-performing assets as a percentage of total assets increased 11 basis points from the prior quarter, driven mainly by a single commercial real estate loan of approximately $17.1 million moving to nonaccrual, plus the addition of $1.8 million in purchased credit-impaired loans from the Keystone acquisition that are also on nonaccrual. The increase was partially offset by a $5 million decline in loans 90 days past due and still accruing. Spaulding said that when the $17.1 million loan and a separate $602,000 loan were placed on nonaccrual, the bank reversed $996,000 in accrued interest, which impacted margin. She also said the bank foreclosed on the property securing the $17.1 million loan on April 7, and that the loan-to-value based on a 2026 appraisal is just under 70%. In the Q&A, Spaulding said the company had not previously discussed the loan. She described it as a seasoned credit originated in 2021 that experienced a “significant decline in occupancy due to a tenant bankruptcy.” She said the appraisal was completed within the prior 90 days and reflected “as-is value on the current occupancy.” The bank is preparing to list the property with a national broker and is working on leasing to increase occupancy, and Spaulding said resolution will likely take “a couple of quarters.” She also noted $5.3 million of nonaccrual loans are fully guaranteed by the SBA. The allowance for credit losses totaled $51.5 million, or 0.98% of gross loans as of March 31, 2026, compared with $43.9 million, or 1.0%, at the previous quarter end. Spaulding said the increase was primarily due to the “day one allowance” related to the Keystone acquisition. The company recorded net recoveries of $4,000 in the quarter, she added. Management said the broader portfolio remains diversified, with Spaulding outlining the mix as 42% commercial and industrial, 17% construction/development/land, 11% owner-occupied CRE and 18% non-owner occupied CRE. In discussing criticized and classified trends, Spaulding said the $17.1 million credit was the primary driver of an increase in classifieds, while two other CRE loans were downgraded but remained current with loan-to-value ratios closer to 50% to 60%. Caraway said that excluding the $17 million credit, trends were “pretty moderate,” adding that management was not seeing broader macro or micro deterioration in the portfolio. Looking ahead, Caraway said the company is “increasingly confident” in its trajectory and expects its expanded capabilities in corporate banking, asset-based lending, public funds and correspondent banking to support disciplined growth. He also said that as newer teams scale, they have the “potential to generate over $1 million in fees per month” and could extend the company’s quarterly loan growth target range to $75 million to $125 million. Third Coast Bancshares, Inc operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. The article "Third Coast Bancshares Q1 Earnings Call Highlights" was originally published by MarketBeat.

Image source: The Motley Fool. Thursday, April 23, 2026 at 11 a.m. ET Founder, Chairman, President, and Chief Executive Officer — Bart O. Caraway Chief Financial Officer — R. John McWhorter Chief Credit Officer — Audrey A. Duncan SVP, Investor Relations — Natalie S. Hairston Need a quote from a Motley Fool analyst? Email [email protected] Natalie S. Hairston: Thank you, operator, and good morning, everyone. We appreciate you joining us for Third Coast Bancshares, Inc. conference call and webcast to review our first quarter 2026 results. With me today is Bart O. Caraway, Founder, Chairman, President and Chief Executive Officer; R. John McWhorter, Chief Financial Officer; and Audrey A. Duncan, Chief Credit [inaudible]. First, a few housekeeping items. There will be a replay of today's call, and it will be available by webcast on the Investors section of our website at ir.thirdcoast.bank. There will also be a telephonic replay available until April 30, 2026, and more information on how to access these replay features was included in yesterday's earnings release. Please note that the information reported on this call speaks only as of today, 04/23/2026, and therefore, you are advised that time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading. In addition, the comments made by management during this conference call may contain forward-looking statements within the meaning of the United States federal securities laws. These forward-looking statements reflect the current views of management. However, various risks, uncertainties, and contingencies could cause actual results, performance, or achievements to differ materially from those expressed in the statements made by management. The listener or reader is encouraged to read the annual report on Form 10-Ks to better understand those risks, uncertainties, and contingencies. The comments made today will also include certain non-GAAP financial measures. Additional details and reconciliations to the directly comparable GAAP financial measures included in yesterday's earnings release can be found on the Third Coast Bancshares, Inc. website. Now I would like to turn the call over to Third Coast Bancshares, Inc. founder, chairman, president, and CEO, Mr. Bart O. Caraway. Bart? Bart O. Caraway: Good morning, everyone, and thank you, Natalie. Welcome to the TCBX First Quarter 2026 Earnings Call. I will begin by discussing the company's progress in the quarter. John will cover the financial performance in more detail. Then Audrey will provide a credit quality update. Then I will close with a few thoughts on management's outlook. As we look at our first quarter, let us start with the broader context. This quarter marked a significant milestone for Third Coast Bancshares, Inc., highlighted by a successful addition of Keystone Bank shares to our platform. The Keystone merger and acquisition had a substantial impact on our results this quarter, driving solid growth in loans and deposits, expanding our customer base, and strengthening our presence in key markets in Central Texas, which translated into an expanded balance sheet. Specifically, assets increased by 23.2%, loans by 19.5%, and deposits by 23.5% from year-end. Equally important is the strength of our underlying business. Our loan pipelines are robust, customer activity is healthy, and the strategic investments we continue to make in our platform are already gaining traction. This includes enhancements to our leadership team and the purposeful build-out of several key divisions. Within our corporate banking group, we have added seasoned, best-in-class relationship bankers in Houston and Dallas, including experienced teams focused on select dedicated verticals. We also launched our asset-based lending platform, adding to our credit product suite. We believe these will be an important contributor to our loan growth and fee income. In addition, we have expanded our public funds and correspondent banking teams, further diversifying our funding base and expanding our reach across Texas and beyond. While many of these teams are still early in the ramp-up, we believe these combined investments position us to drive organic growth at meaningful levels, reinforcing our long-term goals of scalability, disciplined growth, and sustainable profitability. Overall, we believe the first quarter demonstrates headway in building a stronger franchise while staying true to our fundamentals that have consistently driven our success and performance. With that, I will turn the call over to John to walk through the financial results and provide additional details on the quarter. John? R. John McWhorter: Thank you, Bart, and good morning, everyone. As Bart mentioned, the Keystone transaction is the primary factor influencing the quarter-over-quarter changes in our financial results. Keystone added roughly 20% to our loans and deposits and roughly $3.3 million in merger-related nonrecurring noninterest expense. I will focus my comments on providing clarity around those impacts along with our underlying trends. Starting with expenses, our noninterest expenses were higher during the quarter, largely due to Keystone-related items as well as sign-on bonuses for several recent senior-level hires. During 2026, the company recorded $3.3 million in Keystone merger-related noninterest expenses, primarily consisting of $1.6 million in legal and professional, $1.3 million of salary and benefits, and $400 thousand miscellaneous. Additionally, the company recorded $644 thousand in salary and benefits attributable to sign-on bonuses during the first quarter. This is the second consecutive quarter of above-average hiring. These expenses are nonrecurring and reflect the near-term cost of integrating Keystone and onboarding new talent. Diluted earnings per share for the quarter was $0.88, but excluding merger expenses would have been $1.02. Also excluding merger expenses, return on average assets would have been 1.25%. Net interest income was $53.6 million for the first quarter, marking a 2.7% increase from the previous quarter, driven by higher average earning assets following the merger and offset by a lower net interest margin. The margin decline resulted primarily from the merger but also from the reversal of $996 thousand in accrued interest from two loans placed on nonaccrual. Turning to loan growth, excluding Keystone, loans were up approximately $45 million for the quarter, while quarterly average balances were up over $100 million. The second quarter has started even stronger with April month-to-date loans already up over $100 million. Pipelines are full, and some of our new lenders are just getting started. Lastly, I might mention that tangible book value ended the quarter at $31.97, which compares favorably to $31.69, which was the guidance that we gave in October when we announced the acquisition. Most of our expense savings will be realized in the third and fourth quarters of this year. With that, I will turn the call over to Audrey to discuss asset quality. Audrey A. Duncan: Thank you, John, and good morning, everyone. I would like to provide a summary of asset quality for the first quarter. Nonperforming assets to total assets increased by 11 basis points from the prior quarter. The increase in nonperforming assets was primarily due to one CRE loan of approximately $17.1 million being placed on nonaccrual as well as the addition of $1.8 million in purchased credit impaired loans from the Keystone acquisition, which are on nonaccrual. This increase was partially offset by a $5 million decline in loans over 90 days past due and still accruing. When placing the $17.1 million loan on nonaccrual, as well as a $602 thousand loan, we reversed $996 thousand in accrued interest, which impacted our margin. On April 7, 2026, the bank foreclosed on the property securing the $17.1 million CRE loan. Our LTV on the property based upon a 2020 appraisal is just under 70%. It is also worth noting that $5.3 million of our nonaccrual loans are fully guaranteed by the SBA. The allowance for credit losses totaled $51.5 million, representing 0.98% of gross loans as of 03/31/2026, compared to $43.9 million, or 1%, as of the previous quarter-end. The increase was primarily due to the day-one allowance related to the Keystone acquisition. We recorded net recoveries of $4 thousand in the first quarter. Our loan portfolio remains well diversified and reflects organic production as well as contributions from the Keystone portfolio, with allocations consistent with the prior year. Commercial and industrial loans are 42% of total loans, while construction, development, and land loans were 17%. Owner-occupied CRE was 11%, and nonowner-occupied CRE was 18%. I would be happy to answer any questions regarding asset quality during our question-and-answer session. With that, I will turn the call back to Bart. Bart? Bart O. Caraway: Thank you, Audrey. As we move further into 2026, we are increasingly confident in the direction of the franchise and the strategic foundation we have put in place. We believe we are building one of the best platforms in the country and across our footprint. With our expanded corporate banking, including ABL, along with our public funds and correspondent banking capabilities, we are positioned to continue scaling the company in a disciplined and thoughtful way. We believe these groups, combined with our core teams, represent durable long-term growth engines that will drive organic growth, diversify our balance sheet, and deepen client relationships over time. We believe when these teams gain scale, they will drive even stronger pipelines and profitability, with the potential to generate over $1 million in fees per month and extend our quarterly loan growth target range to $75 million to $125 million. Underpinning all of this is our continuous improvement mindset, which is now deeply embedded across the organization. What started as a 1% improvement challenge has evolved into a culture centered on execution, accountability, and delivering consistency across outcomes for our stakeholders, and we believe that continues to be a key differentiator for Third Coast Bancshares, Inc. Ongoing consolidation across the banking sector continues to strengthen our scarcity value and positions us at the early stages of unlocking additional upside for our franchise. Finally, I want to thank our team for their exceptional work this quarter and extend a warm welcome to our Keystone customers and shareholders. We appreciate your continued support in Third Coast Bancshares, Inc. and look forward to building on this momentum. With that, I will turn the call back over to the operator to begin the question-and-answer session. Operator? Operator: Thank you. At this time, we will be conducting our question-and-answer session. If you would like to ask a question, please press 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press 2 if you would like to remove your question from the queue. Participants using speaker equipment, it may be necessary to pick up your handset before the star keys. One moment while we poll for questions. Your first question comes from Matt Olney with Stephens. Please state your question. Matt Olney: Hey, thanks, and good morning. I will start with net interest margin. As you guys mentioned, some noisy results this quarter with Keystone, and I heard the commentary about the nonaccrual impact of the margin as well. Any color you can give us as far as expectations for the margin in the near term? Thanks. R. John McWhorter: Sure. So, Matt, this is John. You know, last quarter we guided to a number in kind of the 3.90% range, and I think Third Coast Bancshares, Inc. standalone before this interest reversal, that is exactly where we were. The interest reversal is worth about 4 basis points, and then, of course, we merged with Keystone. Their margin was about 3.50%. So you average all that out and, assuming nothing unusual next quarter, I think we are about 3.75% for the margin going forward. Matt Olney: Okay. Perfect. Appreciate that, John. And then on the loan growth front, sounds like 2Q is off to a really strong start. Would love to hear more about the drivers of what you are seeing there. Any of this from the new producers hired or market disruption? Just more commentary on the pipeline would be helpful. Thanks. Bart O. Caraway: Yeah, that is very observational of you. I think it is both what you mentioned. One, we have both some new team members and some team members that we hired last year that obviously have some good volumes. And, at the same time, we are seeing some opportunities from some of the disruption in the market. And I think the combination has really got our really robust pipeline. As a matter of fact, I think the first quarter maybe masked a little bit of how good it was because we had an exceptional number of payoffs or otherwise our loans would have been up quite a bit more. We are still seeing the pipelines grow right now, and we feel pretty good about where we stand. The market is good. These producers that we are bringing are highly productive and have a loyal customer base. And at the same time, some of the disruption is starting to play out to where we are able to compete and win some business that we have been after for a while. So all in all, despite all the other macro headwinds, it is actually looking really good for us in terms of our growth and volumes. R. John McWhorter: And, Matt, I might add that, with the market disruption, that is really what has given us the opportunity to hire a lot of these people that we have talked about over the last couple of quarters. We have paid sign-on bonuses to some of these again, two quarters in a row. I do not necessarily envision that happening in the second quarter of this year, but many of the people that we hired were exceptional. They were great opportunities—just ones that we could not pass up—that will very much contribute to our growth going forward. But it is not an every-quarter sort of thing. I think I said the expenses related to that were about $650 thousand, and we likely—who knows, maybe we have other opportunities—but I do not think it will be of that magnitude. I think most of who we wanted to hire recently, we have hired in the last six months. Bart O. Caraway: And if I could add on to that, the folks that we have hired are people that have had long-term relationships with the existing leadership here. So these are not new people that are unknown to us. They are people that we either worked with before or had long-time relationships with that we have been after for a while, and, once again, similar to what happened right after the pandemic, there is a lot of dislocation and disruption that has allowed us to finally get them over the fence. Analyst: Yeah. Okay. Matt Olney: Makes sense. And you guys seem to be in a nice spot to take advantage of all the disruption. I will hop back in the queue. Thank you. Operator: Thank you. Your next question comes from Michael Rose with Raymond James. Please state your question. Michael Rose: Hey, good morning, guys. Thanks for taking my questions. Maybe just following up on Matt's loan growth question. It looks like in the quarter, if I exclude Keystone, you were kind of below that $75 million to $100 million range that you had talked about previously. Was there any sort of elevated paydowns or anything that may have impacted the organic growth? Or maybe if you can just parse out what it is. And then I think, Bart, I heard you say, given some of the hires that you made over the past couple of quarters, that maybe that range on a go-forward basis is $75 million to $125 million, so a nice kind of uptick there. I assume that there is some time that it will take for some of the newer hires to get ramped up. So should we expect an acceleration to kind of the mid to higher point of that range in the back half of the year? Just trying to frame out the loan growth outlook. Bart O. Caraway: Yeah, good comments. In the quarter, we actually had such strong loan growth that we thought we were going to be above budget on it. But then we had some significant paydowns that came through, and the timing of it, we thought, was going to be spread out over a few quarters, and it just happened to be kind of all in one quarter. They were significant enough that they offset a lot of that growth. So I do not expect that to continue. Those headwinds probably came first quarter. We will maybe have a few—you know, we always have a few—surprise paydowns as somebody sells or what have you, but I think the pipeline has grown such that even if we mirror what we did last quarter, we are going to have pretty strong net loan growth. That is why, you know, John and I and Audrey feel like this year is going to turn out to be a little better than what we even anticipated on the loan growth. Having said that, obviously, it is always lumpy. We cannot control the timing of when these loans close, but, prospectively, it looks like it is going to be a very strong loan year for us. Michael Rose: Very helpful. And then just as it relates to the $17.1 million credit that was added to nonaccrual. Is that a credit that you had previously talked about? I just do not remember or recall. And then it seems like you have an appraisal on the property. What is kind of the expectation here for resolution? Is it a couple of quarters? I know it is hard to parse out individual credits, but just given the magnitude of size here, just trying to better understand when it could eventually come out of the run rate. Audrey A. Duncan: Sure. I can give you some more color on that. I do not think we have talked about the loan previously, but it is a seasoned loan. We originated it in 2021, so it has been on the books and paying for many years. They had a significant decline in occupancy due to a tenant bankruptcy, so that precipitated the issue there. The LTV is just under 70% based on a new appraisal within the last 90 days, and that is the as-is value on the current occupancy. We are getting ready to list it with a national broker, and we are working on some additional leases to increase the occupancy. But, yes, I would think it is probably going to be a couple of quarters. Michael Rose: Okay. Perfect. I appreciate that, Audrey. Maybe if I could just slip in one more. It looks like on the deposit side, the growth on an organic basis was actually pretty strong. Obviously, some of the mix change was due to the acquisition. But just as we kind of think about deposit growth as we move forward, I think, Bart, you previously talked about it kind of somewhat matching loan growth. Is that still the expectation there? R. John McWhorter: Yeah. So, Michael, one thing I wanted to point out there: we had a lot more cash at quarter-end, and the reason for that is we sold the Keystone portfolio—100% of it—thinking that we were going to fund up a bunch of loans and replace it before quarter-end. That did not happen because we had those big loan payoffs. Their investment portfolio was roughly $75 million. In April, our loans were up more than $100 million, so that is going to be a big help to the margin. And the fact that the loan-to-deposit ratio was lower for the quarter—well, we do try to fund, to the extent that we can, just-in-time funding, and we really thought we were going to have more loan fundings. We were not expecting the payoffs. They almost all came out of one lender's portfolio who is no longer with the bank, and we were not sad to see those loans pay off. Going forward, I would expect the loan-to-deposit ratio to creep up a little bit more, and we have already reallocated that cash into loans, so that should help the margin as well. Michael Rose: Okay. Yeah. That helps explain it. I appreciate the color and context. I will step back. Operator: Your next question comes from Wood Neblett Lay with KBW. Please state your question. Wood Neblett Lay: Hey. Thanks for taking my question. Had a couple follow-ups on credit. I was just curious, are there any trends to note in criticized or classified loans this quarter? Audrey A. Duncan: Well, obviously, the $17.1 million—that was an increase in classifieds for the quarter. We had a couple of CRE loans that were downgraded during the quarter, but they are both current now. We have low LTVs on current appraisals. Those LTVs are closer to 50% to 60%, and we are not expecting any issues there. Those are actually moving in the right direction. R. John McWhorter: And if you take out the $17 million, it really is pretty moderate. Wood Neblett Lay: Yeah. If you take out the $17 million, what does that look like? Audrey A. Duncan: If you exclude the $17 million, in fact, classifieds were up about $15 million. So we actually had some net reduction there if you excluded that $17 million. Our NPAs actually would have declined 15 basis points had it not been for the $17 million loan. Bart O. Caraway: I would comment that I still feel the portfolio looks really good. We are not seeing any macro trends or any micro trends on it. I think the story was the one property we took back. Other than that, we are seeing a really strong economic environment for us. We are seeing our customers very stable and navigating through all the chaos and disruption that is out there. Portfolio looks pretty good, I think. Audrey A. Duncan: I agree. Wood Neblett Lay: That is great to hear. And maybe just last for me was an update on how the integration of Keystone is going—when core conversion is scheduled—and do you still feel good about all the assumptions that were laid out at deal announcement? Bart O. Caraway: Yeah. I mean, I think it is actually going better than expected. It is a good cultural fit. We love the market. Thus far, the team has really rallied and worked well together. I would say the conversion is going to be in July, and thus far it has been going very, very well. If you remember, we did do a core conversion last summer, and so I guess everybody is already acclimated to change. We are very familiar with our system, so converting a bank onto our system versus doing a whole-bank conversion is a whole lot easier. By the way, we have a project management team that rides herd on this. It is very organized, and we feel like everybody has the up-to-date training to be able to make this pretty seamless. R. John McWhorter: And, Woody, as far as the assumptions and the cost saves, we are running two different banks today on two different systems, so obviously that is more expensive. We will not realize any of the cost saves from data processing until August will be the first month of savings there. Keystone needed a full-blown financial statement audit, so we did not have any savings there. Going forward, we do expect more. We obviously do not need auditors out there anymore. We will not have examiners, obviously. The data processing will happen in the third quarter. So most of the expense saves are still to come. I think we had forecast $6 million in savings, and a lot of it is those couple of categories: the professional fees and the data processing fees and things like that. Wood Neblett Lay: Got it. Alright. I appreciate you all taking my questions. R. John McWhorter: Thank you. Operator: Your next question comes from Bernard Von Gizycki with Deutsche Bank. Please state your question. Bernard Von Gizycki: Hey, guys. Good morning. Maybe just on expenses from here, how do we think about a quarterly run rate for the rest of the year, or how to think about it from here until the end of the year? Just given some of the lumpy M&A-related costs, which I believe are nonrecurring, that you have highlighted. Not sure if there is any spillover in other merger-related costs that you want to highlight. And then as cost saves come in, are they fully realized in 3Q and 4Q, or does that spill over into 2027? Any thoughts you can break out on expenses? R. John McWhorter: So the last thing first, I think by January 1, 2027, we will have 100% of the cost saves. But some of them we will not have until year-end. Some things that we are accruing for—some expenses. As far as expense run rate, it is hard to put a handle on. Obviously, you could take this quarter and mind out the $3.3 million and then maybe the extra bonuses that we paid out—that is another $650 thousand. That is a good starting point. But we are spending time and effort on conversion and merger-related stuff, so we are not quite to a point where I can give you a good run-rate number, but it is certainly this quarter minus the merger expenses and probably more than that. Bernard Von Gizycki: Okay. Got it. And then what about fee income? With the new hires and Keystone, any things we should be thinking about going forward or how we should think about the rest of the year in fee income? R. John McWhorter: We guided to $4 million for the quarter, and that is almost exactly where we were. I think it will be a little bit higher going forward, but, again, we are not a huge fee income shop, so it is not going to be materially different. I think it is going to be between that $4 million and $4.5 million range. Bernard Von Gizycki: Great. Thanks for taking my questions. R. John McWhorter: Thank you. Operator: Your next question comes from Matt Olney with Stephens. Please state your question. Matt Olney: Hey. Thanks for taking the follow-up. Just want to go back to the net interest margin outlook. John, I think you said that 3.75%. I was struggling to get to that number. I heard your commentary about the liquidity and the impact of that late in the quarter and so far early what you are seeing in April. Any other color that can help us get to that 3.75% number? Was there any impact of securitization or anything else that can help speak to the noise that we saw and moving from the results in the first quarter to that 3.75% in 2Q? R. John McWhorter: Yeah. I think if you add back the reversal of interest, that is going to be worth about 4 basis points. So it is not too terribly far from the 3.75% just to start with. I think the rest of where I am thinking we get there is through better loan fees. The loan fees were a little light this quarter. It looks like they are running heavier. We did not talk about securitizations. We obviously did not do one in the first quarter, but we are always looking at it, working on them. I cannot say for sure that we will do one in the second quarter, but I think the odds are probably more likely than not that we will be able to do another securitization this quarter. If we do, it will look similar to the last ones where there is a fair amount of fee income associated with it, and that goes into the margin. I am not considering that in the 3.75% number—that would push it even higher if we were able to do that. And when we start running a little bit higher loan-to-deposit ratio, that will certainly help. Again, had we not had the payoffs, I think that would have made somewhat of a difference on the margin as well. As we are able to dial that in a little bit, I think that is going to help our margin over the next couple of quarters. Matt Olney: Yeah. Definitely some noisy trends given all the moving parts, but I appreciate you walking through all the items. Thanks, guys. R. John McWhorter: Thank you. Operator: Your next question comes from David Joseph Storms with Stonegate. David Joseph Storms: Morning, and thank you for taking my questions. Just wanted to maybe start with some underwriting following the merger. Has there been anything that has been learned either from Keystone's way of doing things or the Third Coast Bancshares, Inc. way of doing things, or maybe any synergies that can be picked up in underwriting? Bart O. Caraway: I think it is all kind of in process. They had a few products a little different from ours that have been interesting and that we might be able to take and evolve. At the same time, I think being able to overlay our bigger legal lending limit and some of the things that we do, particularly on the corporate side, is going to open up some business for them on some bigger loans and bigger relationships. But it has only been a few weeks since we brought them on board, and I think that is going to play out as we get this integrated. It will be a lot easier when they are on our system as well. David Joseph Storms: Understood. And then just thinking about the long-term NIM trends. Before, you were in the 4% range. What would it take to get the portfolio back to that again, thinking over the longer term? R. John McWhorter: I am sorry, I did not follow the question, Dave. David Joseph Storms: Oh, sorry. Just long-term NIM trends. I know you are talking about maybe 3.75%. But, just before the merger, you were around 4%, a little north of that. Is it possible to get back to that range? And what would that take? R. John McWhorter: That is probably optimistic at this point because we have a relatively high cost of funds. The way we would get there would be through more loan fees, which we think is possible. That certainly would be a goal—an aspirational sort of goal number. We think as we get bigger and lead more deals, there will be more loan fees associated with it that will help the margin. But 4% is probably pretty optimistic for our way of doing business. And I think it is way up there anyway. David Joseph Storms: Really great. Thanks for taking my questions. Bart O. Caraway: Thank you. Operator: Thank you. There are no further questions at this time. I will hand the floor back to Mr. Caraway for closing remarks. Bart O. Caraway: Well, thank you, and thank you, everybody, for joining us for our earnings call—first one in 2026—and we look forward to talking to you all next quarter. Thank you for your support. Operator: Thank you. This concludes today's call. All parties may disconnect. Before you buy stock in Third Coast Bancshares, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Third Coast Bancshares wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Third Coast (TCBX) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Assets Increase: 23.2% increase from year-end. Loan Growth: 19.5% increase from year-end. Deposit Growth: 23.5% increase from year-end. Noninterest Expenses: $3.3 million in merger-related nonrecurring expenses. Diluted Earnings Per Share: $0.88; $1.02 excluding merger expenses. Net Interest Income: $53.6 million, a 2.7% increase from the previous quarter. Nonperforming Assets Increase: 11 basis points from the prior quarter. Allowance for Credit Losses: $51.5 million, representing 0.98% of gross loans. Tangible Book Value: Ended the quarter at $31.97. Warning! GuruFocus has detected 5 Warning Sign with FAF. Is TCBX fairly valued? Test your thesis with our free DCF calculator. Release Date: April 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Successful acquisition of Keystone Bancshares, leading to significant growth in loans, deposits, and assets. Expansion of customer base and strengthened presence in Central Texas markets. Robust loan pipelines and healthy customer activity, indicating strong future growth potential. Strategic investments in leadership and key divisions, including asset-based lending and public funds teams. Positive outlook for organic growth, scalability, and sustainable profitability, supported by new hires and market opportunities. Increased noninterest expenses due to merger-related costs and sign-on bonuses for new hires. Net interest margin impacted by merger and reversal of accrued interest from nonaccrual loans. Nonperforming assets increased due to a significant CRE loan being placed on nonaccrual. Integration of Keystone Bancshares still in progress, with full cost savings expected by year-end. Loan growth in the first quarter was offset by significant paydowns, affecting net growth figures. Q: Can you provide expectations for the net interest margin in the near term, considering the impact of the Keystone merger and nonaccrual loans? A: John McWhorter, CFO, stated that the net interest margin is expected to be around 3.75% going forward. This considers the reversal of interest worth about 4 basis points and the merger with Keystone, which had a margin of about 3.50%. Q: What are the drivers behind the strong loan growth in the second quarter, and how are new hires contributing to this? A: Bart Caraway, CEO, explained that the strong loan growth is driven by both new team members and existing ones hired last year, along with opportunities from market disruption. The combination has resulted in a robust pipeline, and despite macro headwinds, the outlook for growth and volumes is positive. Q: Can you provide more details on the $17.1 million credit added to nonaccrual and its expected resolution timeline? A: Audrey Duncan, Chief Credit Officer, noted that the $17.1 million loan was placed on nonaccrual due to a tenant bankruptcy affecting occupancy. The loan has an LTV of just under 70% based on a recent appraisal. The property is being listed with a national broker, and resolution is expected in a couple of quarters. Q: How is the integration of Keystone progressing, and are you on track with the assumptions made at the deal announcement? A: Bart Caraway, CEO, reported that the integration is going better than expected, with a good cultural fit and a scheduled core conversion in July. The team is organized, and the assumptions made at the deal announcement are still on track, with most expense savings expected in the third and fourth quarters. Q: What are the trends in criticized or classified loans this quarter? A: Audrey Duncan, Chief Credit Officer, mentioned that the $17.1 million loan increased classifieds for the quarter. However, excluding this, there was a net reduction in classified loans. The portfolio remains stable, with no significant macro or micro trends affecting it. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Completed Successful Merger with Keystone Bancshares, Inc. HOUSTON, April 22, 2026 /PRNewswire/ -- Third Coast Bancshares, Inc. (NYSE & NYSE Texas: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank (the "Bank"), today reported its 2026 first quarter financial results. 2026 First Quarter Financial Highlights Completed successful merger with Keystone Bancshares, Inc. ("Keystone") on February 1, 2026, which added approximately $812.0 million in loans, $1 billion in assets, and $844.2 million in deposits. Return on average assets of 1.08% annualized for the first quarter of 2026 compared to 1.36% annualized for the fourth quarter of 2025 and 1.17% annualized for the first quarter of 2025. Net interest margin of 3.67% for the first quarter of 2026 compared to 4.10% for the fourth quarter of 2025 and 3.80% for the first quarter of 2025. Net income for the first quarter of 2026 totaled $16.4 million, or $1.03 and $0.88 per basic and diluted share, respectively, compared to $17.9 million, or $1.21 and $1.02 per basic and diluted share, respectively, for the fourth quarter of 2025 and $13.6 million, or $0.90 and $0.78 per basic and diluted share, respectively, for the first quarter of 2025. The first quarter of 2026 included non-recurring adjustments related to the merger with Keystone that negatively impacted net income by approximately $3.3 million pre-tax. Efficiency ratio of 66.06% for the first quarter of 2026 compared to 57.90% for the fourth quarter of 2025 and 61.23% for the first quarter of 2025. Gross loans grew to $5.25 billion as of March 31, 2026, from $4.39 billion reported as of December 31, 2025. Book value per common share and tangible book value per common share(1) increased to $35.28 and decreased to $31.97, respectively, as of March 31, 2026, compared to $33.47 and $32.12, respectively, as of December 31, 2025 and $29.92 and $28.56, respectively, as of March 31, 2025. "Our first quarter marked an important step for Third Coast with the successful merger with Keystone. This transaction meaningfully increased our balance sheet and capabilities, and we're already seeing strong momentum across our loan pipelines and core markets. As we move through the year, we remain focused on executing on our strategic objectives, building deeper relationships with clients, and translating our expanded platform into sustainable growth and shareholder value," said Bart Caraway, Founder, Chairman, President & Chief Executive Officer of Third Coast. Operating Results Net Income and Earnings Per Common Share Net income totaled $16.4 million for the first quarter of 2026, compared to $17.9 million for the fourth quarter of 2025 and $13.6 million for the first quarter of 2025. Net income available to common shareholders totaled $15.2 million for the first quarter of 2026, compared to $16.7 million for the fourth quarter of 2025 and $12.4 million for the first quarter of 2025. The quarter-over-quarter decrease from the fourth quarter of 2025 was primarily due to merger-related expenses attributing to an increase in legal and professional expenses, and an increase in salaries and employee benefits related to sign-on bonuses, retention and additional bonuses. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025. Basic and diluted earnings per common share were $1.03 per share and $0.88 per share, respectively, in the first quarter of 2026, compared to $1.21 per share and $1.02 per share, respectively, in the fourth quarter of 2025 and $0.90 per share and $0.78 per share, respectively, in the first quarter of 2025. Net Interest Margin and Net Interest Income The net interest margin for the first quarter of 2026 was 3.67%, compared to 4.10% for the fourth quarter of 2025 and 3.80% for the first quarter of 2025. The yield on loans for the first quarter of 2026 was 7.01%, compared to 7.52% for the fourth quarter of 2025 and 7.45% for the first quarter of 2025. The cost of interest-bearing deposits for the first quarter of 2026 was 3.53%, compared to 3.73% for the fourth quarter of 2025 and 4.02% for the first quarter of 2025. Net interest income totaled $53.6 million for the first quarter of 2026, an increase of 2.8% from $52.2 million for the fourth quarter of 2025 and an increase of 25.3% from $42.8 million for the first quarter of 2025. Interest income totaled $97.4 million for the first quarter of 2026, an increase of 5.7% from $92.1 million for the fourth quarter of 2025 and an increase of 20.6% from $80.8 million for the first quarter of 2025. The quarter-over-quarter increase from the fourth quarter of 2025 in interest income primarily resulted from an increase in loans, slightly offset by a $1.0 million reversal of interest income on a loan placed on nonaccrual and a decrease in loan yields. Interest expense was $43.7 million for the first quarter of 2026, an increase of $3.8 million, or 9.6%, from $39.9 million for the fourth quarter of 2025 and an increase of $5.8 million, or 15.2%, from $38.0 million for the first quarter of 2025, primarily resulting from an increase in interest-bearing demand deposits slightly offset by a reduction in rates paid on interest-bearing demand deposits. Noninterest Income and Noninterest Expense Noninterest income totaled $4.0 million for the first quarter of 2026, compared to $4.3 million for the fourth quarter of 2025 and $3.1 million for the first quarter of 2025. The quarter-over-quarter decrease from the fourth quarter of 2025 in noninterest income was primarily due to a decrease in non-margin loan fees during the first quarter of 2026. Noninterest expense increased to $38.1 million for the first quarter of 2026, compared to $32.7 million for the fourth quarter of 2025 and $28.1 million for the first quarter of 2025. The quarter-over-quarter increase from the fourth quarter of 2025 in noninterest expense was primarily due to merger-related expenses. During the first quarter of 2026, the Company recorded $3.3 million in Keystone merger-related noninterest expenses primarily attributable to $1.6 million in legal and professional expenses and $1.3 million in salaries and employee benefits. Additionally, the Company recorded $644,000 in salaries and employee benefits attributable to sign-on bonuses and additional discretionary bonuses during the first quarter of 2026. At March 31, 2026, the number of employees increased to 514, compared to 412 at December 31, 2025 primarily due to the Keystone merger. The efficiency ratio was 66.06% for the first quarter of 2026, compared to 57.90% for the fourth quarter of 2025 and 61.23% for the first quarter of 2025. Balance Sheet Highlights Loan Portfolio and Composition For the quarter ended March 31, 2026, gross loans increased to $5.25 billion, an increase of $856.7 million, or 19.5%, from $4.39 billion as of December 31, 2025, and an increase of $1.26 billion, or 31.7%, from $3.99 billion as of March 31, 2025. The increase in gross loans was impacted by the mid-quarter Keystone merger. Commercial and industrial loans and real estate loans accounted for the majority of the loan growth for the first quarter of 2026, with commercial and industrial loans increasing $276.2 million and real estate loans increasing $644.2 million from the fourth quarter of 2025, partially offset by municipal and other loans decreasing $64.4 million from the fourth quarter of 2025. Asset Quality Nonperforming loans at March 31, 2026 were $35.6 million, compared to $21.5 million at December 31, 2025 and $18.6 million at March 31, 2025. The increase in nonperforming loans during the first quarter of 2026 was primarily due to one loan for approximately $17.1 million that was placed on nonaccrual partially offset by a $5.0 million decline in loans over 90 days past due and still accruing. As of March 31, 2026, the nonperforming loans to total loans ratio was 0.68%, compared to 0.49% as of December 31, 2025 and 0.47% as of March 31, 2025. The provision for credit loss recorded for the first quarter of 2026 was $580,000, and the allowance for credit losses of $51.5 million represented 0.98% of the $5.25 billion in gross loans outstanding as of March 31, 2026. The provision for credit loss recorded for the fourth quarter of 2025 was $2.2 million, and the allowance for credit losses of $43.9 million represented 1.00% of the $4.39 billion in gross loans outstanding as of December 31, 2025. The increase in the allowance for credit loss in the first quarter of 2026 compared to the fourth quarter of 2025 was primarily attributable to Day 1 allowance for credit losses related to the Keystone merger. The Company recorded net recoveries of $4,000 and net charge-offs of $398,000 for the three months ended March 31, 2026 and March 31, 2025, respectively. Deposits and Composition Deposits totaled $5.72 billion as of March 31, 2026, an increase of 23.5% from $4.63 billion as of December 31, 2025, and an increase of 34.5% from $4.25 billion as of March 31, 2025. The increase in total deposits was impacted by the mid-quarter Keystone merger. Noninterest-bearing demand deposits increased from $495.0 million as of December 31, 2025, to $577.2 million as of March 31, 2026 and represented 10.1% and 10.7% of total deposits as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, interest-bearing demand deposits increased $912.1 million, or 27.1%, time deposits increased $90.0 million, or 12.0%, and savings accounts increased $3.8 million, or 17.6%, respectively, from December 31, 2025. The average cost of deposits was 3.17% for the first quarter of 2026, representing a 17-basis point decrease from the fourth quarter of 2025 and a 44-basis point decrease from the first quarter of 2025. The decreases were primarily due to the reduction in rates paid on interest-bearing demand deposits. Earnings Conference Call Third Coast has scheduled a conference call to discuss its 2026 first quarter results, which will be broadcast live over the Internet, on Thursday, April 23, 2026, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate in the call, dial 201-389-0869 and ask for the Third Coast Bancshares, Inc. call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through April 30, 2026, and may be accessed by dialing 201-612-7415 and using passcode 13757903#. 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 21 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information. Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; economic conditions affecting the real estate market; prepayment risks associated with commercial real estate loans; liquidity risks in the securitization market; operational risks related to the administration of securitized assets; changes in key management personnel; the risk that the benefits from the transaction between Third Coast and Keystone may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Third Coast and Keystone operate; the risk that the integration of each party's operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party's businesses into the other's businesses; the possibility that the completion of the transaction may be more expensive than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Third Coast's or Keystone's customers, suppliers, employees or other business partners, including those resulting from the completion of the transaction; the dilution caused by Third Coast's issuance of additional shares of its common stock in connection with the transaction; and other factors that may affect future results of Third Coast and Keystone including changes in asset quality and credit risk, the inability to sustain revenue and earnings growth, changes in interest rates and capital markets, inflation, customer borrowing, repayment, investment and deposit practices, the impact, extent and timing of technological changes, capital management activities and other actions of the Board of Governors of the Federal Reserve System and legislative and regulatory actions and reforms. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2025 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 Common 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. 37,535 36,226 FHLB advances and other borrowings 2,257 2,372 2,624 1,753 1,743 Total interest expense 43,741 39,902 41,654 39,288 37,969 Net interest income 53,645 52,197 50,849 49,374 42,797 Provision for credit losses 580 2,245 2,763 2,130 450 Net interest income after credit loss expense 53,065 49,952 48,086 47,244 42,347 NONINTEREST INCOME: Service charges and fees 3,175 3,518 2,839 2,125 2,277 Earnings on bank-owned life insurance 750 811 786 743 677 Loss on sale of investment securities available-for-sale (11) (272) - (110) (228) Gain on sale of SBA loans - - - 44 30 Other 119 204 10 (152) 351 Total noninterest income 4,033 4,261 3,635 2,650 3,107 NONINTEREST EXPENSE: Salaries and employee benefits 24,808 21,109 19,560 18,179 18,341 Occupancy and equipment expense 3,349 2,845 2,861 2,783 2,834 Legal and professional 3,221 2,850 1,254 1,927 1,431 Data processing and network expense 1,414 1,087 1,203 1,162 1,120 Regulatory assessments 1,210 1,172 1,152 1,203 1,306 Advertising and marketing 639 733 499 503 409 Software purchases and maintenance 1,419 1,067 1,094 1,149 1,259 Loan operations and other real estate owned expense 537 397 29 439 269 Telephone and communications 144 126 134 115 175 Other 1,362 1,305 1,106 1,386 964 Total noninterest expense 38,103 32,691 28,892 28,846 28,108 NET INCOME BEFORE INCOME TAX EXPENSE 18,995 21,522 22,829 21,048 17,346 Income tax expense 2,627 3,624 4,772 4,301 3,757 NET INCOME 16,368 17,898 18,057 16,747 13,589 Preferred stock dividends declared 1,171 1,197 1,197 1,185 1,171 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 15,197 $ 16,701 $ 16,860 $ 15,562 $ 12,418 EARNINGS PER COMMON SHARE: Basic earnings per share $ 1.03 $ 1.21 $ 1.22 $ 1.12 $ 0.90 Diluted earnings per share $ 0.88 $ 1.02 $ 1.03 $ 0.96 $ 0.78 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 Common 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 Common Share. The most directly comparable GAAP financial measure for tangible book value per common share is book value per common share. We believe that the tangible book value per common share measure is important to many investors in the marketplace who are interested in changes from period to period in book value per common 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: Contact: Ken Dennard / Natalie Hairston Dennard Lascar Investor Relations (713) 529-6600 [email protected] View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-2026-first-quarter-financial-results-302750706.html

The Keystone Bankshares acquisition served as a primary growth catalyst, contributing approximately 20% to loan and deposit balances and significantly expanding the bank's Central Texas footprint. Management attributed the 23.2% increase in total assets to both the merger and robust underlying organic activity across core markets. Strategic investments in talent included onboarding seasoned relationship teams in Houston and Dallas to focus on dedicated verticals and the launch of an asset-based lending platform. A temporary decline in net interest margin was driven by the integration of Keystone's lower-margin portfolio and a one-time reversal of $996,000 in accrued interest from two nonaccrual loans. Management noted that while first-quarter organic loan growth was partially masked by significant, non-recurring payoffs, the underlying pipeline remains at record levels due to market disruption. The bank is evolving its '1% improvement challenge' into a permanent cultural framework focused on execution and accountability to drive sustainable profitability. Management raised the quarterly loan growth target range to $75 million–$125 million, citing the expected ramp-up of new lending teams and asset-based lending capabilities. The bank expects to realize approximately $6 million in annual cost savings from the Keystone merger, with the majority of impact occurring in the third and fourth quarters of 2026 following the July core conversion. Net interest margin is expected to be approximately 3.75% in the second quarter, supported by improved loan fees and a higher loan-to-deposit ratio. Fee income is anticipated to scale toward $1 million per month as new corporate banking, public funds, and correspondent banking teams reach full productivity. Guidance for noninterest expenses assumes a reduction in sign-on bonuses and merger-related professional fees starting in the second quarter. Recorded $3.3 million in merger-related expenses and $644,000 in sign-on bonuses for senior-level hires, both characterized as non-recurring near-term costs. A $17.1 million commercial real estate loan was placed on nonaccrual following a tenant bankruptcy, though management noted a conservative LTV of just under 70% based on a 2026 appraisal. The bank successfully foreclosed on the $17.1 million CRE property in April and plans to list it with a national broker to resolve the credit within a few quarters. The Keystone investment portfolio was entirely liquidated in the first quarter to provide liquidity for anticipated loan funding in the second quarter. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management stated that current market dislocation is allowing the bank to win long-term relationships and hire top-tier talent that was previously unavailable. The second quarter has started strong, with April month-to-date loan growth already exceeding $100 million. The margin was pressured by excess cash at quarter-end due to the timing of loan payoffs, but this liquidity has already begun being deployed into higher-yielding assets in April. Management indicated that while 4% NIM is an aspirational long-term goal, the current high cost of funds makes 3.75% a more realistic near-term expectation. Excluding the $17.1 million loan, nonperforming assets would have declined by 15 basis points during the quarter. Management emphasized that they see no broad macro or micro trends indicating systemic credit deterioration across the diversified portfolio. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.