THIRD COAST BANCSHARES, INC. REPORTS 2024 THIRD QUARTER FINANCIAL RESULTS
Record Basic EPS of $0.85 and Diluted EPS of $0.74
HOUSTON, Oct. 23, 2024 /PRNewswire/ -- Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank, today reported its 2024 third quarter financial results.
2024 Third Quarter Financial and Operational Highlights
- Net income totaled $12.8 million, or $0.85 and $0.74 per basic and diluted share, respectively, compared to $10.8 million, or $0.70 and $0.63 per basic and diluted share, respectively, for the second quarter of 2024.
- Return on average assets increased to 1.14% annualized compared to 0.97% annualized for the second quarter of 2024 and 0.56% annualized for the third quarter of 2023.
- Efficiency Ratio improved to 59.57% for the third quarter of 2024 from 61.39% for the second quarter of 2024.
- Gross loans grew $131.7 million to $3.89 billion, 3.5% more than the $3.76 billion reported as of June 30, 2024.
- Noninterest-bearing demand deposits increased $25.3 million, or 5.5%, to $489.8 million from $464.5 million as of June 30, 2024, and represented 12.3% of total deposits as of September 30, 2024, compared to 12.0% of total deposits as of June 30, 2024.
- Book value per share and tangible book value per share(1) increased to $28.13 and $26.75, respectively, compared to $26.99 and $25.60, respectively, as of June 30, 2024.
- Opened our 19th branch location with a de novo branch located in Houston, Texas.
"We are pleased to report another quarter of record-setting earnings, with diluted earnings per share reaching 74 cents," said Bart Caraway, Chairman, President, and Chief Executive Officer of Third Coast. "This performance reflects our continued execution of our strategic plan, resulting in significant improvements across key metrics, including improving our loan and deposit mix, expanding our net interest margin, and achieving our goal of bringing the efficiency ratio below 60% ahead of schedule. Our team's efforts have led to an impressive 13 consecutive quarters of net interest income growth, demonstrating the sustainability of our approach. Finally, our results highlight our ability to successfully manage expenses while driving revenue growth, all while maintaining strong asset quality.
"Looking ahead, we remain confident in our ability to deliver high-performing results. Our 1% improvement initiative continues to enhance operational efficiency, positioning us well to navigate the evolving interest rate environment. With our robust Texas markets and the right team in place, we are focused on maintaining this momentum and creating long-term value for our shareholders."
____________________________
(1)
Non-GAAP financial measure. Please refer to the table titled "GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures" at the end of this press release for a reconciliation of these non-GAAP financial measures.
Operating Results
Net Income and Earnings Per Share
Net income totaled $12.8 million for the third quarter of 2024, compared to $10.8 million for the second quarter of 2024 and $5.6 million for the third quarter of 2023. Net income available to common shareholders totaled $11.6 million for the third quarter of 2024, compared to $9.6 million for the second quarter of 2024 and $4.4 million for the third quarter of 2023. The quarter-over-quarter increase was primarily due to an increase in net interest income, resulting from loan growth and higher rates on loans, and a slightly lower provision for credit loss during the third quarter of 2024. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended September 30, 2024 and June 30, 2024.
Basic and diluted earnings per share were $0.85 per share and $0.74 per share, respectively, in the third quarter of 2024 compared to $0.70 per share and $0.63 per share, respectively, in the second quarter of 2024 and $0.32 per share for both basic and diluted in the third quarter of 2023.
Net Interest Margin and Net Interest Income
The net interest margin for the third quarter of 2024 was 3.73%, compared to 3.62% for the second quarter of 2024 and 3.71% for the third quarter of 2023. The yield on loans for the third quarter of 2024 was 7.90%, compared to 7.86% for the second quarter of 2024 and 7.57% for the third quarter of 2023.
Net interest income totaled $40.4 million for the third quarter of 2024, an increase of 3.9% from $38.9 million for the second quarter of 2024 and an increase of 14.5% from $35.3 million for the third quarter of 2023. Interest income totaled $82.7 million for the third quarter of 2024, an increase of 1.8% from $81.2 million for the second quarter of 2024 and an increase of 19.2% from $69.4 million for the third quarter of 2023. Interest and fees on loans increased $2.4 million, or 3.2%, compared to the second quarter of 2024, and increased $10.1 million, or 15.4%, compared to the third quarter of 2023. Interest expense in the third quarter of 2024 remained consistent with the second quarter of 2024 at $42.3 million and $42.4 million, respectively.
Noninterest Income and Noninterest Expense
Noninterest income totaled $2.5 million for the third quarter of 2024, compared to $2.9 million for the second quarter of 2024 and $1.9 million for the third quarter of 2023. The sequential decrease in noninterest income was primarily due to losses recorded on the sale of a corporate bond and two mortgage-backed securities during the third quarter of 2024.
Noninterest expense remained consistent at $25.6 million for the second and third quarters of 2024, and down from $27.5 million for the third quarter of 2023.
The efficiency ratio improved to 59.57% for the third quarter of 2024, compared to 61.39% for the second quarter of 2024 and 74.07% for the third quarter of 2023.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended September 30, 2024, gross loans increased to $3.89 billion, an increase of $131.7 million, or 3.5%, from $3.76 billion as of June 30, 2024, and an increase of $329.9 million, or 9.3%, from $3.56 billion as of September 30, 2023. Commercial and industrial and real estate loans accounted for the majority of the loan growth for the third quarter of 2024, with commercial and industrial loans increasing $137.9 million and real estate loans increasing $33.0 million from the second quarter of 2024. The growth was partially offset by a $39.0 million decrease in municipal loans from June 30, 2024.
Asset Quality
Nonperforming loans at September 30, 2024 were comparable to June 30, 2024 at $24.0 million and $24.4 million, respectively. As of September 30, 2024, the nonperforming loans to total loans ratio was 0.62%, compared to 0.65% as of June 30, 2024.
The provision for credit loss recorded for the third quarter of 2024 was $1.1 million and the allowance for credit losses of $39.7 million represented 1.02% of the $3.89 billion in gross loans outstanding as of September 30, 2024.
The Company recorded net recoveries of $57,000 and net charge-offs of $24,000 for the third quarter of 2024 and 2023, respectively.
Deposits and Composition
Deposits totaled $3.99 billion as of September 30, 2024, an increase of 3.6% from $3.86 billion as of June 30, 2024, and an increase of 9.5% from $3.65 billion as of September 30, 2023. Noninterest-bearing demand deposits increased from $464.5 million as of June 30, 2024, to $489.8 million as of September 30, 2024 and represented 12.3% of total deposits as of September 30, 2024, compared to 12.0% of total deposits as of June 30, 2024. As of September 30, 2024, interest-bearing demand deposits decreased $62.3 million, or 2.2%, time deposits increased $177.9 million, or 36.2%, and savings accounts decreased $2.1 million, or 6.2%, respectively, from June 30, 2024.
The average cost of deposits was 4.18% for the third quarter of 2024, representing a 4-basis point decrease from the second quarter of 2024 and a 45-basis point increase from the third quarter of 2023. The year-over-year increase was due to interest-bearing demand deposit growth and the increase in rates paid on interest-bearing demand deposits.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss its 2024 third quarter results, which will be broadcast live over the Internet, on Thursday, October 24, 2024, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate in the call, dial 201-389-0869 and ask for the Third Coast Bancshares, Inc. call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through October 31, 2024, and may be accessed by dialing 201-612-7415 and using passcode 13748897#. Also, an archive of the webcast will be available shortly after the call at https://ir.thirdcoast.bank/events-and-presentations/events/ for 90 days.
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a commercially focused, Texas-based bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 19 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; and changes in key management personnel. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the "SEC"), and our other filings with the SEC.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, including Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets and Return on Average Tangible Common Equity, which are supplemental measures that are not required by, or are not presented in accordance with GAAP. Please refer to the table titled "GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures" at the end of this press release for a reconciliation of these non-GAAP financial measures.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
2024
2023
(Dollars in thousands)
September 30
June 30
March 31
December 31
September 30
ASSETS
Cash and cash equivalents:
Cash and due from banks
$
258,191
$
241,809
$
367,831
$
296,926
$
142,122
Federal funds sold
12,265
12,088
130,429
114,919
144,408
Total cash and cash equivalents
270,456
253,897
498,260
411,845
286,530
Interest bearing time deposits in other banks
353
350
-
-
-
Investment securities available-for-sale
292,104
286,167
246,291
178,087
201,035
Loans held for investment
3,889,831
3,758,159
3,746,178
3,638,788
3,559,953
Less: allowance for credit losses
(39,683)
(38,211)
(38,140)
(37,022)
(38,067)
Loans, net
3,850,148
3,719,948
3,708,038
3,601,766
3,521,886
Accrued interest receivable
26,111
27,518
25,769
23,120
22,821
Premises and equipment, net
26,696
27,626
26,844
28,554
29,010
Other real estate owned
283
-
-
-
-
Bank-owned life insurance
67,679
67,030
66,443
65,861
65,303
Non-marketable securities, at cost
24,328
16,147
16,095
16,041
15,799
Deferred tax asset, net
8,654
8,972
8,712
9,227
8,335
Derivative assets
5,786
7,799
11,015
8,828
10,889
Right-of-use assets - operating leases
20,397
20,944
20,729
21,439
21,192
Goodwill and other intangible assets
18,882
18,922
18,963
19,003
19,043
Other assets
15,893
18,799
13,244
12,303
13,949
Total assets
$
4,627,770
$
4,474,119
$
4,660,403
$
4,396,074
$
4,215,792
LIABILITIES
Deposits:
Noninterest bearing
$
489,822
$
464,498
$
424,019
$
459,553
$
500,187
Interest bearing
3,504,616
3,391,093
3,626,653
3,343,595
3,146,635
Total deposits
3,994,438
3,855,591
4,050,672
3,803,148
3,646,822
Accrued interest payable
7,283
5,668
3,927
4,794
4,318
Derivative liabilities
6,874
7,626
8,253
10,687
10,519
Lease liability - operating leases
21,412
21,919
21,647
22,280
21,958
Other liabilities
34,632
30,786
27,806
23,763
15,467
Line of credit - Senior Debt
31,875
36,875
43,875
38,875
35,875
Note payable - Subordinated Debentures, net
80,708
80,656
80,605
80,553
80,502
Total liabilities
4,177,222
4,039,121
4,236,785
3,984,100
3,815,461
SHAREHOLDERS' EQUITY
Series A Convertible Non-Cumulative Preferred Stock
69
69
69
69
69
Series B Convertible Perpetual Preferred Stock
-
-
-
-
-
Common stock
13,746
13,744
13,731
13,683
13,679
Common stock - non-voting
-
-
-
-
-
Additional paid-in capital
320,871
320,496
320,077
319,613
319,134
Retained earnings
109,160
97,583
87,971
78,775
70,283
Accumulated other comprehensive income (loss)
7,801
4,205
2,869
933
(1,735)
Treasury stock, at cost
(1,099)
(1,099)
(1,099)
(1,099)
(1,099)
Total shareholders' equity
450,548
434,998
423,618
411,974
400,331
Total liabilities and shareholders' equity
$
4,627,770
$
4,474,119
$
4,660,403
$
4,396,074
$
4,215,792
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
Nine Months Ended
2024
2023
2024
2023
(Dollars in thousands, except per share data)
September
30
June 30
March 31
December
31
September
30
September
30
September
30
INTEREST INCOME:
Loans, including fees
$
75,468
$
73,103
$
70,671
$
70,325
$
65,380
$
219,242
$
178,586
Investment securities available-for-sale
4,532
4,491
3,093
2,746
1,990
12,116
5,567
Federal funds sold and other
2,719
3,631
5,112
3,996
2,015
11,462
5,324
Total interest income
82,719
81,225
78,876
77,067
69,385
242,820
189,477
INTEREST EXPENSE:
Deposit accounts
40,407
40,410
38,698
37,671
30,345
119,515
77,373
FHLB advances and other borrowings
1,929
1,957
2,099
2,065
3,772
5,985
9,910
Total interest expense
42,336
42,367
40,797
39,736
34,117
125,500
87,283
Net interest income
40,383
38,858
38,079
37,331
35,268
117,320
102,194
Provision for credit losses
1,085
1,900
1,560
1,100
2,620
4,545
5,220
Net interest income after credit loss expense
39,298
36,958
36,519
36,231
32,648
112,775
96,974
NONINTEREST INCOME:
Service charges and fees
2,143
1,515
1,505
850
884
5,163
2,383
Earnings on bank-owned life insurance
649
587
582
559
541
1,818
1,542
(Loss) gain on sale of investment securities
available-for-sale
(480)
123
157
21
364
(200)
461
Gain on sale of SBA loans
-
-
30
326
114
30
114
Derivative fees
101
28
66
358
159
195
405
Other
104
635
3
43
(196)
742
1,143
Total noninterest income
2,517
2,888
2,343
2,157
1,866
7,748
6,048
NONINTEREST EXPENSE:
Salaries and employee benefits
15,679
15,917
16,502
16,119
17,353
48,098
46,098
Occupancy and equipment expense
3,229
3,146
3,045
2,875
2,925
9,420
8,410
Legal and professional
1,037
1,621
1,385
2,305
2,001
4,043
5,478
Data processing and network expense
1,608
1,046
1,418
987
1,284
4,072
3,748
Regulatory assessments
1,249
1,005
980
942
532
3,234
1,656
Advertising and marketing
420
406
355
614
515
1,181
2,013
Software purchases and maintenance
854
828
817
839
729
2,499
1,536
Loan operations
227
262
226
134
272
715
539
Telephone and communications
166
141
134
125
117
441
385
Other
1,085
1,257
1,052
1,474
1,777
3,394
3,521
Total noninterest expense
25,554
25,629
25,914
26,414
27,505
77,097
73,384
NET INCOME BEFORE INCOME TAX
EXPENSE
16,261
14,217
12,948
11,974
7,009
43,426
29,638
Income tax expense
3,486
3,421
2,581
2,285
1,431
9,488
5,926
NET INCOME
12,775
10,796
10,367
9,689
5,578
33,938
23,712
Preferred stock dividends declared
1,198
1,184
1,171
1,197
1,184
3,553
3,539
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS
$
11,577
$
9,612
$
9,196
$
8,492
$
4,394
$
30,385
$
20,173
EARNINGS PER COMMON SHARE:
Basic earnings per share
$
0.85
$
0.70
$
0.68
$
0.62
$
0.32
$
2.23
$
1.49
Diluted earnings per share
$
0.74
$
0.63
$
0.61
$
0.57
$
0.32
$
1.99
$
1.41
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
Nine Months Ended
2024
2023
2024
2023
(Dollars in thousands, except share
and per share data)
September
30
June 30
March 31
December
31
September
30
September
30
September
30
Earnings per share, basic
$
0.85
$
0.70
$
0.68
$
0.62
$
0.32
$
2.23
$
1.49
Earnings per share, diluted
$
0.74
$
0.63
$
0.61
$
0.57
$
0.32
$
1.99
$
1.41
Dividends on common stock
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Dividends on Series A Convertible
Non-Cumulative Preferred Stock
$
17.25
$
17.06
$
16.88
$
17.25
$
17.06
$
51.19
$
51.00
Return on average assets (A)
1.14
%
0.97
%
0.95
%
0.90
%
0.56
%
1.02
%
0.84
%
Return on average common equity (A)
12.12
%
10.53
%
10.44
%
9.86
%
5.19
%
11.05
%
8.24
%
Return on average tangible common
equity (A) (B)
12.76
%
11.10
%
11.03
%
10.44
%
5.50
%
11.65
%
8.75
%
Net interest margin (A) (C)
3.73
%
3.62
%
3.60
%
3.61
%
3.71
%
3.65
%
3.77
%
Efficiency ratio (D)
59.57
%
61.39
%
64.11
%
66.89
%
74.07
%
61.64
%
67.80
%
Capital Ratios
Third Coast Bancshares, Inc.
(consolidated):
Total common equity to total assets
8.31
%
8.24
%
7.67
%
7.86
%
7.93
%
8.31
%
7.93
%
Tangible common equity to tangible
assets (B)
7.93
%
7.85
%
7.29
%
7.46
%
7.51
%
7.93
%
7.51
%
Common equity tier 1 (to risk weighted
assets)
8.38
%
8.29
%
7.97
%
8.06
%
8.01
%
8.38
%
8.01
%
Tier 1 capital (to risk weighted assets)
9.93
%
9.88
%
9.54
%
9.70
%
9.68
%
9.93
%
9.68
%
Total capital (to risk weighted assets)
12.80
%
12.78
%
12.41
%
12.66
%
12.72
%
12.80
%
12.72
%
Tier 1 capital (to average assets)
9.53
%
9.24
%
9.15
%
9.23
%
9.79
%
9.53
%
9.79
%
Third Coast Bank:
Common equity tier 1 (to risk weighted
assets)
12.45
%
12.52
%
12.32
%
12.52
%
12.48
%
12.45
%
12.48
%
Tier 1 capital (to risk weighted assets)
12.45
%
12.52
%
12.32
%
12.52
%
12.48
%
12.45
%
12.48
%
Total capital (to risk weighted assets)
13.42
%
13.49
%
13.28
%
13.49
%
13.49
%
13.42
%
13.49
%
Tier 1 capital (to average assets)
11.95
%
11.71
%
11.81
%
11.91
%
12.62
%
11.95
%
12.62
%
Other Data
Weighted average shares:
Basic
13,665,400
13,657,223
13,606,256
13,603,149
13,608,718
13,643,042
13,576,949
Diluted
17,184,991
17,018,680
16,936,003
16,890,381
13,873,187
17,046,640
16,872,035
Period end shares outstanding
13,667,591
13,665,505
13,652,888
13,604,665
13,600,211
13,667,591
13,600,211
Book value per share
$
28.13
$
26.99
$
26.18
$
25.41
$
24.57
$
28.13
$
24.57
Tangible book value per share (B)
$
26.75
$
25.60
$
24.79
$
24.02
$
23.17
$
26.75
$
23.17
___________
(A) Interim periods annualized.
(B) Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures on pages 11 and 12 of this News Release.
(C) Net interest margin represents net interest income divided by average interest-earning assets.
(D) Represents total noninterest expense divided by the sum of net interest income plus noninterest income. Taxes and provision for credit losses are not part of this calculation.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
September 30, 2024
June 30, 2024
September 30, 2023
(Dollars in thousands)
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate(4)
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate(4)
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate(4)
Assets
Interest-earnings assets:
Investment securities
$
300,969
$
4,532
5.99 %
$
297,653
$
4,491
6.07 %
$
198,305
$
1,990
3.98 %
Loans, gross
3,801,954
75,468
7.90 %
3,740,544
73,103
7.86 %
3,424,738
65,380
7.57 %
Federal funds sold and other
interest-earning assets
209,841
2,719
5.15 %
277,144
3,631
5.27 %
146,965
2,015
5.44 %
Total interest-earning assets
4,312,764
82,719
7.63 %
4,315,341
81,225
7.57 %
3,770,008
69,385
7.30 %
Less allowance for loan losses
(38,425)
(38,429)
(37,421)
Total interest-earning assets, net of
allowance
4,274,339
4,276,912
3,732,587
Noninterest-earning assets
195,681
195,193
190,670
Total assets
$
4,470,020
$
4,472,105
$
3,923,257
Liabilities and Shareholders'
Equity
Interest-bearing liabilities:
Interest-bearing deposits
$
3,383,897
$
40,407
4.75 %
$
3,411,592
$
40,410
4.76 %
$
2,756,305
$
30,345
4.37 %
Note payable and line of credit
113,536
1,853
6.49 %
121,275
1,957
6.49 %
112,765
1,919
6.75 %
FHLB advances
5,757
76
5.25 %
—
—
—
129,585
1,853
5.67 %
Total interest-bearing liabilities
3,503,190
42,336
4.81 %
3,532,867
42,367
4.82 %
2,998,655
34,117
4.51 %
Noninterest-bearing deposits
457,451
442,672
473,282
Other liabilities
63,255
63,056
49,271
Total liabilities
4,023,896
4,038,595
3,521,208
Shareholders' equity
446,124
433,510
402,049
Total liabilities and shareholders'
equity
$
4,470,020
$
4,472,105
$
3,923,257
Net interest income
$
40,383
$
38,858
$
35,268
Net interest spread (1)
2.82 %
2.75 %
2.79 %
Net interest margin (2)
3.73 %
3.62 %
3.71 %
___________
(1) Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average interest-earning assets.
(3) Interest earned/paid includes accretion of deferred loan fees, premiums and discounts.
(4) Annualized.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Nine Months Ended
September 30, 2024
September 30, 2023
(Dollars in thousands)
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate(4)
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate(4)
Assets
Interest-earnings assets:
Investment securities
$
267,091
$
12,116
6.06 %
$
195,234
$
5,567
3.81 %
Loans, gross
3,736,200
219,242
7.84 %
3,287,053
178,586
7.26 %
Federal funds sold and other interest-earning
assets
290,011
11,462
5.28 %
142,224
5,324
5.00 %
Total interest-earning assets
4,293,302
242,820
7.55 %
3,624,511
189,477
6.99 %
Less allowance for loan losses
(38,045)
(36,236)
Total interest-earning assets, net of allowance
4,255,257
3,588,275
Noninterest-earning assets
194,650
186,443
Total assets
$
4,449,907
$
3,774,718
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits
$
3,380,790
$
119,515
4.72 %
$
2,645,127
$
77,373
3.91 %
Note payable and line of credit
118,547
5,909
6.66 %
111,777
5,592
6.69 %
FHLB advances and other
1,933
76
5.25 %
106,353
4,318
5.43 %
Total interest-bearing liabilities
3,501,270
125,500
4.79 %
2,863,257
87,283
4.08 %
Noninterest-bearing deposits
452,411
473,834
Other liabilities
62,753
44,025
Total liabilities
4,016,434
3,381,116
Shareholders' equity
433,473
393,602
Total liabilities and shareholders' equity
$
4,449,907
$
3,774,718
Net interest income
$
117,320
$
102,194
Net interest spread (1)
2.76 %
2.91 %
Net interest margin (2)
3.65 %
3.77 %
___________
(1) Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average interest-earning assets.
(3) Interest earned/paid includes accretion of deferred loan fees, premiums and discounts.
(4) Annualized.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
2024
2023
(Dollars in thousands)
September
30
June 30
March 31
December 31
September 30
Period-end Loan Portfolio:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied
$
470,222
$
499,941
$
510,266
$
520,822
$
517,917
Non-farm non-residential non-owner occupied
611,617
612,268
598,311
586,626
566,973
Residential
339,558
349,461
345,890
342,589
326,354
Construction, development & other
825,302
756,646
725,176
693,553
655,822
Farmland
35,650
31,049
29,706
30,396
30,646
Commercial & industrial
1,499,302
1,361,401
1,350,289
1,263,077
1,288,320
Consumer
2,002
2,216
2,382
2,555
2,665
Municipal and other
106,178
145,177
184,158
199,170
171,256
Total loans
$
3,889,831
$
3,758,159
$
3,746,178
$
3,638,788
$
3,559,953
Asset Quality:
Nonaccrual loans
$
23,522
$
23,910
$
18,130
$
16,649
$
13,963
Loans > 90 days and still accruing
522
507
3,614
670
2,442
Total nonperforming loans
24,044
24,417
21,744
17,319
16,405
Other real estate owned
283
-
-
-
-
Total nonperforming assets
$
24,327
$
24,417
$
21,744
$
17,319
$
16,405
QTD Net charge-offs (recoveries)
$
(57)
$
1,829
$
742
$
1,505
$
24
Nonaccrual loans:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied
$
9,696
$
10,051
$
2,369
$
1,211
$
978
Non-farm non-residential non-owner occupied
68
74
1,225
1,235
1,235
Residential
2,664
2,767
2,837
2,938
3,058
Construction, development & other
1
301
406
247
567
Commercial & industrial
11,093
10,717
11,293
11,018
8,125
Total nonaccrual loans
$
23,522
$
23,910
$
18,130
$
16,649
$
13,963
Asset Quality Ratios:
Nonperforming assets to total assets
0.53
%
0.55
%
0.47
%
0.39
%
0.39
%
Nonperforming loans to total loans
0.62
%
0.65
%
0.58
%
0.48
%
0.46
%
Allowance for credit losses to total loans
1.02
%
1.02
%
1.02
%
1.02
%
1.07
%
QTD Net charge-offs (recoveries) to average loans
(annualized)
(0.01)
%
0.20
%
0.08
%
0.17
%
0.00
%
Third Coast Bancshares, Inc. and Subsidiary
GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
(unaudited)
Our accounting and reporting policies conform to GAAP (generally accepted accounting principles) and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional financial measures discussed in this earnings release as being non-GAAP financial measures. Specifically, we review Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Return on Average Tangible Common Equity for internal planning and forecasting purposes. We classify a financial measure as a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are not included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios, or statistical measures calculated using exclusively financial measures calculated in accordance with GAAP.
The non-GAAP financial measures that we discuss in this earnings release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this earnings release may differ from that of other companies reporting measures with similar names. It is important to understand how other banking organizations calculate their financial measures with names similar to the non-GAAP financial measures we have discussed in this earnings release when comparing such non-GAAP financial measures.
Management believes the following non-GAAP financial measures assist investors in understanding the financial condition of the company:
-
Tangible Common Equity. The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity.
-
Tangible Book Value Per Share. The most directly comparable GAAP financial measure for tangible book value per share is book value per share. We believe that the tangible book value per share measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value.
-
Tangible Common Equity to Tangible Assets. The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity, the most directly comparable GAAP financial measure for tangible assets is total assets, and the most directly comparable GAAP financial measure for tangible common equity to tangible assets is total shareholders' equity to total assets. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity to tangible assets, each exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing both total shareholders' equity and assets while not increasing our tangible common equity or tangible assets.
-
Return on Average Tangible Common Equity. The most directly comparable GAAP financial measure for average tangible common equity is average shareholders' equity, and the most directly comparable GAAP financial measure for return on average tangible common equity is return on average common equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of return on average tangible common equity, exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing average shareholders' equity while not increasing our tangible common equity.
The calculations of these non-GAAP financial measures are as follows:
Three Months Ended
Nine Months Ended
2024
2023
2024
2023
(Dollars in thousands, except share and per
share data)
September
30
June 30
March 31
December
31
September
30
September
30
September
30
Tangible Common Equity:
Total shareholders' equity
$
450,548
$
434,998
$
423,618
$
411,974
$
400,331
$
450,548
$
400,331
Less: Preferred stock including additional
paid in capital
66,117
66,225
66,225
66,225
66,225
66,117
66,225
Total common equity
384,431
368,773
357,393
345,749
334,106
384,431
334,106
Less: Goodwill and core deposit intangibles,
net
18,882
18,922
18,963
19,003
19,043
18,882
19,043
Tangible common equity
$
365,549
$
349,851
$
338,430
$
326,746
$
315,063
$
365,549
$
315,063
Common shares outstanding at end of period
13,667,591
13,665,505
13,652,888
13,604,665
13,600,211
13,667,591
13,600,211
Book Value Per Share
$
28.13
$
26.99
$
26.18
$
25.41
$
24.57
$
28.13
$
24.57
Tangible Book Value Per Share
$
26.75
$
25.60
$
24.79
$
24.02
$
23.17
$
26.75
$
23.17
Tangible Assets:
Total assets
$
4,627,770
$
4,474,119
$
4,660,403
$
4,396,074
$
4,215,792
$
4,627,770
$
4,215,792
Adjustments: Goodwill and core deposit
intangibles, net
18,882
18,922
18,963
19,003
19,043
18,882
19,043
Tangible assets
$
4,608,888
$
4,455,197
$
4,641,440
$
4,377,071
$
4,196,749
$
4,608,888
$
4,196,749
Total Common Equity to Total Assets
8.31
%
8.24
%
7.67
%
7.86
%
7.93
%
8.31
%
7.93
%
Tangible Common Equity to Tangible Assets
7.93
%
7.85
%
7.29
%
7.46
%
7.51
%
7.93
%
7.51
%
Average Tangible Common Equity:
Average shareholders' equity
$
446,124
$
433,510
$
420,646
$
407,972
$
402,049
$
433,473
$
393,602
Less: Average preferred stock including
additional paid in capital
66,223
66,225
66,225
66,225
66,225
66,224
66,225
Average common equity
379,901
367,285
354,421
341,747
335,824
367,249
327,377
Less: Average goodwill and core deposit
intangibles, net
18,906
18,946
18,987
19,027
19,068
18,946
19,108
Average tangible common equity
$
360,995
$
348,339
$
335,434
$
322,720
$
316,756
$
348,303
$
308,269
Net Income
$
12,775
$
10,796
$
10,367
$
9,689
$
5,578
$
33,938
$
23,712
Less: Dividends declared on preferred stock
1,198
1,184
1,171
1,197
1,184
3,553
3,539
Net Income Available to Common
Shareholders
$
11,577
$
9,612
$
9,196
$
8,492
$
4,394
$
30,385
$
20,173
Return on Average Common Equity(A)
12.12
%
10.53
%
10.44
%
9.86
%
5.19
%
11.05
%
8.24
%
Return on Average Tangible Common
Equity(A)
12.76
%
11.10
%
11.03
%
10.44
%
5.50
%
11.65
%
8.75
%
___________
(A) Interim periods annualized.
Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
(713) 529-6600
TCBX@dennardlascar.com
View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-2024-third-quarter-financial-results-302284912.html
SOURCE Third Coast Bancshares
Record Basic EPS of $0.85 and Diluted EPS of $0.74
HOUSTON, Oct. 23, 2024 /PRNewswire/ -- Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank, today reported its 2024 third quarter financial results.
2024 Third Quarter Financial and Operational Highlights
- Net income totaled $12.8 million, or $0.85 and $0.74 per basic and diluted share, respectively, compared to $10.8 million, or $0.70 and $0.63 per basic and diluted share, respectively, for the second quarter of 2024.
- Return on average assets increased to 1.14% annualized compared to 0.97% annualized for the second quarter of 2024 and 0.56% annualized for the third quarter of 2023.
- Efficiency Ratio improved to 59.57% for the third quarter of 2024 from 61.39% for the second quarter of 2024.
- Gross loans grew $131.7 million to $3.89 billion, 3.5% more than the $3.76 billion reported as of June 30, 2024.
- Noninterest-bearing demand deposits increased $25.3 million, or 5.5%, to $489.8 million from $464.5 million as of June 30, 2024, and represented 12.3% of total deposits as of September 30, 2024, compared to 12.0% of total deposits as of June 30, 2024.
- Book value per share and tangible book value per share(1) increased to $28.13 and $26.75, respectively, compared to $26.99 and $25.60, respectively, as of June 30, 2024.
- Opened our 19th branch location with a de novo branch located in Houston, Texas.
"We are pleased to report another quarter of record-setting earnings, with diluted earnings per share reaching 74 cents," said Bart Caraway, Chairman, President, and Chief Executive Officer of Third Coast. "This performance reflects our continued execution of our strategic plan, resulting in significant improvements across key metrics, including improving our loan and deposit mix, expanding our net interest margin, and achieving our goal of bringing the efficiency ratio below 60% ahead of schedule. Our team's efforts have led to an impressive 13 consecutive quarters of net interest income growth, demonstrating the sustainability of our approach. Finally, our results highlight our ability to successfully manage expenses while driving revenue growth, all while maintaining strong asset quality.
"Looking ahead, we remain confident in our ability to deliver high-performing results. Our 1% improvement initiative continues to enhance operational efficiency, positioning us well to navigate the evolving interest rate environment. With our robust Texas markets and the right team in place, we are focused on maintaining this momentum and creating long-term value for our shareholders."
|
____________________________ | |
|
(1) |
Non-GAAP financial measure. Please refer to the table titled "GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures" at the end of this press release for a reconciliation of these non-GAAP financial measures. |
Operating Results
Net Income and Earnings Per Share
Net income totaled $12.8 million for the third quarter of 2024, compared to $10.8 million for the second quarter of 2024 and $5.6 million for the third quarter of 2023. Net income available to common shareholders totaled $11.6 million for the third quarter of 2024, compared to $9.6 million for the second quarter of 2024 and $4.4 million for the third quarter of 2023. The quarter-over-quarter increase was primarily due to an increase in net interest income, resulting from loan growth and higher rates on loans, and a slightly lower provision for credit loss during the third quarter of 2024. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended September 30, 2024 and June 30, 2024.
Basic and diluted earnings per share were $0.85 per share and $0.74 per share, respectively, in the third quarter of 2024 compared to $0.70 per share and $0.63 per share, respectively, in the second quarter of 2024 and $0.32 per share for both basic and diluted in the third quarter of 2023.
Net Interest Margin and Net Interest Income
The net interest margin for the third quarter of 2024 was 3.73%, compared to 3.62% for the second quarter of 2024 and 3.71% for the third quarter of 2023. The yield on loans for the third quarter of 2024 was 7.90%, compared to 7.86% for the second quarter of 2024 and 7.57% for the third quarter of 2023.
Net interest income totaled $40.4 million for the third quarter of 2024, an increase of 3.9% from $38.9 million for the second quarter of 2024 and an increase of 14.5% from $35.3 million for the third quarter of 2023. Interest income totaled $82.7 million for the third quarter of 2024, an increase of 1.8% from $81.2 million for the second quarter of 2024 and an increase of 19.2% from $69.4 million for the third quarter of 2023. Interest and fees on loans increased $2.4 million, or 3.2%, compared to the second quarter of 2024, and increased $10.1 million, or 15.4%, compared to the third quarter of 2023. Interest expense in the third quarter of 2024 remained consistent with the second quarter of 2024 at $42.3 million and $42.4 million, respectively.
Noninterest Income and Noninterest Expense
Noninterest income totaled $2.5 million for the third quarter of 2024, compared to $2.9 million for the second quarter of 2024 and $1.9 million for the third quarter of 2023. The sequential decrease in noninterest income was primarily due to losses recorded on the sale of a corporate bond and two mortgage-backed securities during the third quarter of 2024.
Noninterest expense remained consistent at $25.6 million for the second and third quarters of 2024, and down from $27.5 million for the third quarter of 2023.
The efficiency ratio improved to 59.57% for the third quarter of 2024, compared to 61.39% for the second quarter of 2024 and 74.07% for the third quarter of 2023.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended September 30, 2024, gross loans increased to $3.89 billion, an increase of $131.7 million, or 3.5%, from $3.76 billion as of June 30, 2024, and an increase of $329.9 million, or 9.3%, from $3.56 billion as of September 30, 2023. Commercial and industrial and real estate loans accounted for the majority of the loan growth for the third quarter of 2024, with commercial and industrial loans increasing $137.9 million and real estate loans increasing $33.0 million from the second quarter of 2024. The growth was partially offset by a $39.0 million decrease in municipal loans from June 30, 2024.
Asset Quality
Nonperforming loans at September 30, 2024 were comparable to June 30, 2024 at $24.0 million and $24.4 million, respectively. As of September 30, 2024, the nonperforming loans to total loans ratio was 0.62%, compared to 0.65% as of June 30, 2024.
The provision for credit loss recorded for the third quarter of 2024 was $1.1 million and the allowance for credit losses of $39.7 million represented 1.02% of the $3.89 billion in gross loans outstanding as of September 30, 2024.
The Company recorded net recoveries of $57,000 and net charge-offs of $24,000 for the third quarter of 2024 and 2023, respectively.
Deposits and Composition
Deposits totaled $3.99 billion as of September 30, 2024, an increase of 3.6% from $3.86 billion as of June 30, 2024, and an increase of 9.5% from $3.65 billion as of September 30, 2023. Noninterest-bearing demand deposits increased from $464.5 million as of June 30, 2024, to $489.8 million as of September 30, 2024 and represented 12.3% of total deposits as of September 30, 2024, compared to 12.0% of total deposits as of June 30, 2024. As of September 30, 2024, interest-bearing demand deposits decreased $62.3 million, or 2.2%, time deposits increased $177.9 million, or 36.2%, and savings accounts decreased $2.1 million, or 6.2%, respectively, from June 30, 2024.
The average cost of deposits was 4.18% for the third quarter of 2024, representing a 4-basis point decrease from the second quarter of 2024 and a 45-basis point increase from the third quarter of 2023. The year-over-year increase was due to interest-bearing demand deposit growth and the increase in rates paid on interest-bearing demand deposits.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss its 2024 third quarter results, which will be broadcast live over the Internet, on Thursday, October 24, 2024, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate in the call, dial 201-389-0869 and ask for the Third Coast Bancshares, Inc. call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through October 31, 2024, and may be accessed by dialing 201-612-7415 and using passcode 13748897#. Also, an archive of the webcast will be available shortly after the call at https://ir.thirdcoast.bank/events-and-presentations/events/ for 90 days.
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a commercially focused, Texas-based bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 19 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; and changes in key management personnel. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the "SEC"), and our other filings with the SEC.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, including Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets and Return on Average Tangible Common Equity, which are supplemental measures that are not required by, or are not presented in accordance with GAAP. Please refer to the table titled "GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures" at the end of this press release for a reconciliation of these non-GAAP financial measures.
|
Third Coast Bancshares, Inc. and Subsidiary | ||||||||||||||||||||
|
2024 |
2023 |
|||||||||||||||||||
|
(Dollars in thousands) |
September 30 |
June 30 |
March 31 |
December 31 |
September 30 |
|||||||||||||||
|
ASSETS |
||||||||||||||||||||
|
Cash and cash equivalents: |
||||||||||||||||||||
|
Cash and due from banks |
$ |
258,191 |
$ |
241,809 |
$ |
367,831 |
$ |
296,926 |
$ |
142,122 |
||||||||||
|
Federal funds sold |
12,265 |
12,088 |
130,429 |
114,919 |
144,408 |
|||||||||||||||
|
Total cash and cash equivalents |
270,456 |
253,897 |
498,260 |
411,845 |
286,530 |
|||||||||||||||
|
Interest bearing time deposits in other banks |
353 |
350 |
- |
- |
- |
|||||||||||||||
|
Investment securities available-for-sale |
292,104 |
286,167 |
246,291 |
178,087 |
201,035 |
|||||||||||||||
|
Loans held for investment |
3,889,831 |
3,758,159 |
3,746,178 |
3,638,788 |
3,559,953 |
|||||||||||||||
|
Less: allowance for credit losses |
(39,683) |
(38,211) |
(38,140) |
(37,022) |
(38,067) |
|||||||||||||||
|
Loans, net |
3,850,148 |
3,719,948 |
3,708,038 |
3,601,766 |
3,521,886 |
|||||||||||||||
|
Accrued interest receivable |
26,111 |
27,518 |
25,769 |
23,120 |
22,821 |
|||||||||||||||
|
Premises and equipment, net |
26,696 |
27,626 |
26,844 |
28,554 |
29,010 |
|||||||||||||||
|
Other real estate owned |
283 |
- |
- |
- |
- |
|||||||||||||||
|
Bank-owned life insurance |
67,679 |
67,030 |
66,443 |
65,861 |
65,303 |
|||||||||||||||
|
Non-marketable securities, at cost |
24,328 |
16,147 |
16,095 |
16,041 |
15,799 |
|||||||||||||||
|
Deferred tax asset, net |
8,654 |
8,972 |
8,712 |
9,227 |
8,335 |
|||||||||||||||
|
Derivative assets |
5,786 |
7,799 |
11,015 |
8,828 |
10,889 |
|||||||||||||||
|
Right-of-use assets - operating leases |
20,397 |
20,944 |
20,729 |
21,439 |
21,192 |
|||||||||||||||
|
Goodwill and other intangible assets |
18,882 |
18,922 |
18,963 |
19,003 |
19,043 |
|||||||||||||||
|
Other assets |
15,893 |
18,799 |
13,244 |
12,303 |
13,949 |
|||||||||||||||
|
Total assets |
$ |
4,627,770 |
$ |
4,474,119 |
$ |
4,660,403 |
$ |
4,396,074 |
$ |
4,215,792 |
||||||||||
|
LIABILITIES |
||||||||||||||||||||
|
Deposits: |
||||||||||||||||||||
|
Noninterest bearing |
$ |
489,822 |
$ |
464,498 |
$ |
424,019 |
$ |
459,553 |
$ |
500,187 |
||||||||||
|
Interest bearing |
3,504,616 |
3,391,093 |
3,626,653 |
3,343,595 |
3,146,635 |
|||||||||||||||
|
Total deposits |
3,994,438 |
3,855,591 |
4,050,672 |
3,803,148 |
3,646,822 |
|||||||||||||||
|
Accrued interest payable |
7,283 |
5,668 |
3,927 |
4,794 |
4,318 |
|||||||||||||||
|
Derivative liabilities |
6,874 |
7,626 |
8,253 |
10,687 |
10,519 |
|||||||||||||||
|
Lease liability - operating leases |
21,412 |
21,919 |
21,647 |
22,280 |
21,958 |
|||||||||||||||
|
Other liabilities |
34,632 |
30,786 |
27,806 |
23,763 |
15,467 |
|||||||||||||||
|
Line of credit - Senior Debt |
31,875 |
36,875 |
43,875 |
38,875 |
35,875 |
|||||||||||||||
|
Note payable - Subordinated Debentures, net |
80,708 |
80,656 |
80,605 |
80,553 |
80,502 |
|||||||||||||||
|
Total liabilities |
4,177,222 |
4,039,121 |
4,236,785 |
3,984,100 |
3,815,461 |
|||||||||||||||
|
SHAREHOLDERS' EQUITY |
||||||||||||||||||||
|
Series A Convertible Non-Cumulative Preferred Stock |
69 |
69 |
69 |
69 |
69 |
|||||||||||||||
|
Series B Convertible Perpetual Preferred Stock |
- |
- |
- |
- |
- |
|||||||||||||||
|
Common stock |
13,746 |
13,744 |
13,731 |
13,683 |
13,679 |
|||||||||||||||
|
Common stock - non-voting |
- |
- |
- |
- |
- |
|||||||||||||||
|
Additional paid-in capital |
320,871 |
320,496 |
320,077 |
319,613 |
319,134 |
|||||||||||||||
|
Retained earnings |
109,160 |
97,583 |
87,971 |
78,775 |
70,283 |
|||||||||||||||
|
Accumulated other comprehensive income (loss) |
7,801 |
4,205 |
2,869 |
933 |
(1,735) |
|||||||||||||||
|
Treasury stock, at cost |
(1,099) |
(1,099) |
(1,099) |
(1,099) |
(1,099) |
|||||||||||||||
|
Total shareholders' equity |
450,548 |
434,998 |
423,618 |
411,974 |
400,331 |
|||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
4,627,770 |
$ |
4,474,119 |
$ |
4,660,403 |
$ |
4,396,074 |
$ |
4,215,792 |
||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary | |||||||||||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||||||||||||||||
|
(Dollars in thousands, except per share data) |
September |
June 30 |
March 31 |
December |
September |
September |
September |
||||||||||||||||||||||
|
INTEREST INCOME: |
|||||||||||||||||||||||||||||
|
Loans, including fees |
$ |
75,468 |
$ |
73,103 |
$ |
70,671 |
$ |
70,325 |
$ |
65,380 |
$ |
219,242 |
$ |
178,586 |
|||||||||||||||
|
Investment securities available-for-sale |
4,532 |
4,491 |
3,093 |
2,746 |
1,990 |
12,116 |
5,567 |
||||||||||||||||||||||
|
Federal funds sold and other |
2,719 |
3,631 |
5,112 |
3,996 |
2,015 |
11,462 |
5,324 |
||||||||||||||||||||||
|
Total interest income |
82,719 |
81,225 |
78,876 |
77,067 |
69,385 |
242,820 |
189,477 |
||||||||||||||||||||||
|
INTEREST EXPENSE: |
|||||||||||||||||||||||||||||
|
Deposit accounts |
40,407 |
40,410 |
38,698 |
37,671 |
30,345 |
119,515 |
77,373 |
||||||||||||||||||||||
|
FHLB advances and other borrowings |
1,929 |
1,957 |
2,099 |
2,065 |
3,772 |
5,985 |
9,910 |
||||||||||||||||||||||
|
Total interest expense |
42,336 |
42,367 |
40,797 |
39,736 |
34,117 |
125,500 |
87,283 |
||||||||||||||||||||||
|
Net interest income |
40,383 |
38,858 |
38,079 |
37,331 |
35,268 |
117,320 |
102,194 |
||||||||||||||||||||||
|
Provision for credit losses |
1,085 |
1,900 |
1,560 |
1,100 |
2,620 |
4,545 |
5,220 |
||||||||||||||||||||||
|
Net interest income after credit loss expense |
39,298 |
36,958 |
36,519 |
36,231 |
32,648 |
112,775 |
96,974 |
||||||||||||||||||||||
|
NONINTEREST INCOME: |
|||||||||||||||||||||||||||||
|
Service charges and fees |
2,143 |
1,515 |
1,505 |
850 |
884 |
5,163 |
2,383 |
||||||||||||||||||||||
|
Earnings on bank-owned life insurance |
649 |
587 |
582 |
559 |
541 |
1,818 |
1,542 |
||||||||||||||||||||||
|
(Loss) gain on sale of investment securities |
(480) |
123 |
157 |
21 |
364 |
(200) |
461 |
||||||||||||||||||||||
|
Gain on sale of SBA loans |
- |
- |
30 |
326 |
114 |
30 |
114 |
||||||||||||||||||||||
|
Derivative fees |
101 |
28 |
66 |
358 |
159 |
195 |
405 |
||||||||||||||||||||||
|
Other |
104 |
635 |
3 |
43 |
(196) |
742 |
1,143 |
||||||||||||||||||||||
|
Total noninterest income |
2,517 |
2,888 |
2,343 |
2,157 |
1,866 |
7,748 |
6,048 |
||||||||||||||||||||||
|
NONINTEREST EXPENSE: |
|||||||||||||||||||||||||||||
|
Salaries and employee benefits |
15,679 |
15,917 |
16,502 |
16,119 |
17,353 |
48,098 |
46,098 |
||||||||||||||||||||||
|
Occupancy and equipment expense |
3,229 |
3,146 |
3,045 |
2,875 |
2,925 |
9,420 |
8,410 |
||||||||||||||||||||||
|
Legal and professional |
1,037 |
1,621 |
1,385 |
2,305 |
2,001 |
4,043 |
5,478 |
||||||||||||||||||||||
|
Data processing and network expense |
1,608 |
1,046 |
1,418 |
987 |
1,284 |
4,072 |
3,748 |
||||||||||||||||||||||
|
Regulatory assessments |
1,249 |
1,005 |
980 |
942 |
532 |
3,234 |
1,656 |
||||||||||||||||||||||
|
Advertising and marketing |
420 |
406 |
355 |
614 |
515 |
1,181 |
2,013 |
||||||||||||||||||||||
|
Software purchases and maintenance |
854 |
828 |
817 |
839 |
729 |
2,499 |
1,536 |
||||||||||||||||||||||
|
Loan operations |
227 |
262 |
226 |
134 |
272 |
715 |
539 |
||||||||||||||||||||||
|
Telephone and communications |
166 |
141 |
134 |
125 |
117 |
441 |
385 |
||||||||||||||||||||||
|
Other |
1,085 |
1,257 |
1,052 |
1,474 |
1,777 |
3,394 |
3,521 |
||||||||||||||||||||||
|
Total noninterest expense |
25,554 |
25,629 |
25,914 |
26,414 |
27,505 |
77,097 |
73,384 |
||||||||||||||||||||||
|
NET INCOME BEFORE INCOME TAX |
16,261 |
14,217 |
12,948 |
11,974 |
7,009 |
43,426 |
29,638 |
||||||||||||||||||||||
|
Income tax expense |
3,486 |
3,421 |
2,581 |
2,285 |
1,431 |
9,488 |
5,926 |
||||||||||||||||||||||
|
NET INCOME |
12,775 |
10,796 |
10,367 |
9,689 |
5,578 |
33,938 |
23,712 |
||||||||||||||||||||||
|
Preferred stock dividends declared |
1,198 |
1,184 |
1,171 |
1,197 |
1,184 |
3,553 |
3,539 |
||||||||||||||||||||||
|
NET INCOME AVAILABLE TO COMMON |
$ |
11,577 |
$ |
9,612 |
$ |
9,196 |
$ |
8,492 |
$ |
4,394 |
$ |
30,385 |
$ |
20,173 |
|||||||||||||||
|
EARNINGS PER COMMON SHARE: |
|||||||||||||||||||||||||||||
|
Basic earnings per share |
$ |
0.85 |
$ |
0.70 |
$ |
0.68 |
$ |
0.62 |
$ |
0.32 |
$ |
2.23 |
$ |
1.49 |
|||||||||||||||
|
Diluted earnings per share |
$ |
0.74 |
$ |
0.63 |
$ |
0.61 |
$ |
0.57 |
$ |
0.32 |
$ |
1.99 |
$ |
1.41 |
|||||||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary |
|||||||||||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||||||||||||||||
|
(Dollars in thousands, except share |
September |
June 30 |
March 31 |
December |
September |
September |
September |
||||||||||||||||||||||
|
Earnings per share, basic |
$ |
0.85 |
$ |
0.70 |
$ |
0.68 |
$ |
0.62 |
$ |
0.32 |
$ |
2.23 |
$ |
1.49 |
|||||||||||||||
|
Earnings per share, diluted |
$ |
0.74 |
$ |
0.63 |
$ |
0.61 |
$ |
0.57 |
$ |
0.32 |
$ |
1.99 |
$ |
1.41 |
|||||||||||||||
|
Dividends on common stock |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
|||||||||||||||
|
Dividends on Series A Convertible |
$ |
17.25 |
$ |
17.06 |
$ |
16.88 |
$ |
17.25 |
$ |
17.06 |
$ |
51.19 |
$ |
51.00 |
|||||||||||||||
|
Return on average assets (A) |
1.14 |
% |
0.97 |
% |
0.95 |
% |
0.90 |
% |
0.56 |
% |
1.02 |
% |
0.84 |
% |
|||||||||||||||
|
Return on average common equity (A) |
12.12 |
% |
10.53 |
% |
10.44 |
% |
9.86 |
% |
5.19 |
% |
11.05 |
% |
8.24 |
% |
|||||||||||||||
|
Return on average tangible common |
12.76 |
% |
11.10 |
% |
11.03 |
% |
10.44 |
% |
5.50 |
% |
11.65 |
% |
8.75 |
% |
|||||||||||||||
|
Net interest margin (A) (C) |
3.73 |
% |
3.62 |
% |
3.60 |
% |
3.61 |
% |
3.71 |
% |
3.65 |
% |
3.77 |
% |
|||||||||||||||
|
Efficiency ratio (D) |
59.57 |
% |
61.39 |
% |
64.11 |
% |
66.89 |
% |
74.07 |
% |
61.64 |
% |
67.80 |
% |
|||||||||||||||
|
Capital Ratios |
|||||||||||||||||||||||||||||
|
Third Coast Bancshares, Inc. |
|||||||||||||||||||||||||||||
|
Total common equity to total assets |
8.31 |
% |
8.24 |
% |
7.67 |
% |
7.86 |
% |
7.93 |
% |
8.31 |
% |
7.93 |
% |
|||||||||||||||
|
Tangible common equity to tangible |
7.93 |
% |
7.85 |
% |
7.29 |
% |
7.46 |
% |
7.51 |
% |
7.93 |
% |
7.51 |
% |
|||||||||||||||
|
Common equity tier 1 (to risk weighted |
8.38 |
% |
8.29 |
% |
7.97 |
% |
8.06 |
% |
8.01 |
% |
8.38 |
% |
8.01 |
% |
|||||||||||||||
|
Tier 1 capital (to risk weighted assets) |
9.93 |
% |
9.88 |
% |
9.54 |
% |
9.70 |
% |
9.68 |
% |
9.93 |
% |
9.68 |
% |
|||||||||||||||
|
Total capital (to risk weighted assets) |
12.80 |
% |
12.78 |
% |
12.41 |
% |
12.66 |
% |
12.72 |
% |
12.80 |
% |
12.72 |
% |
|||||||||||||||
|
Tier 1 capital (to average assets) |
9.53 |
% |
9.24 |
% |
9.15 |
% |
9.23 |
% |
9.79 |
% |
9.53 |
% |
9.79 |
% |
|||||||||||||||
|
Third Coast Bank: |
|||||||||||||||||||||||||||||
|
Common equity tier 1 (to risk weighted |
12.45 |
% |
12.52 |
% |
12.32 |
% |
12.52 |
% |
12.48 |
% |
12.45 |
% |
12.48 |
% |
|||||||||||||||
|
Tier 1 capital (to risk weighted assets) |
12.45 |
% |
12.52 |
% |
12.32 |
% |
12.52 |
% |
12.48 |
% |
12.45 |
% |
12.48 |
% |
|||||||||||||||
|
Total capital (to risk weighted assets) |
13.42 |
% |
13.49 |
% |
13.28 |
% |
13.49 |
% |
13.49 |
% |
13.42 |
% |
13.49 |
% |
|||||||||||||||
|
Tier 1 capital (to average assets) |
11.95 |
% |
11.71 |
% |
11.81 |
% |
11.91 |
% |
12.62 |
% |
11.95 |
% |
12.62 |
% |
|||||||||||||||
|
Other Data |
|||||||||||||||||||||||||||||
|
Weighted average shares: |
|||||||||||||||||||||||||||||
|
Basic |
13,665,400 |
13,657,223 |
13,606,256 |
13,603,149 |
13,608,718 |
13,643,042 |
13,576,949 |
||||||||||||||||||||||
|
Diluted |
17,184,991 |
17,018,680 |
16,936,003 |
16,890,381 |
13,873,187 |
17,046,640 |
16,872,035 |
||||||||||||||||||||||
|
Period end shares outstanding |
13,667,591 |
13,665,505 |
13,652,888 |
13,604,665 |
13,600,211 |
13,667,591 |
13,600,211 |
||||||||||||||||||||||
|
Book value per share |
$ |
28.13 |
$ |
26.99 |
$ |
26.18 |
$ |
25.41 |
$ |
24.57 |
$ |
28.13 |
$ |
24.57 |
|||||||||||||||
|
Tangible book value per share (B) |
$ |
26.75 |
$ |
25.60 |
$ |
24.79 |
$ |
24.02 |
$ |
23.17 |
$ |
26.75 |
$ |
23.17 |
|||||||||||||||
|
___________ |
|
(A) Interim periods annualized. |
|
(B) Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures on pages 11 and 12 of this News Release. |
|
(C) Net interest margin represents net interest income divided by average interest-earning assets. |
|
(D) Represents total noninterest expense divided by the sum of net interest income plus noninterest income. Taxes and provision for credit losses are not part of this calculation. |
|
Third Coast Bancshares, Inc. and Subsidiary | ||||||||||||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||||||||||
|
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
||||||||||||||||||||||||||||
|
(Dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||||||||||||
|
Assets |
||||||||||||||||||||||||||||||
|
Interest-earnings assets: |
||||||||||||||||||||||||||||||
|
Investment securities |
$ |
300,969 |
$ |
4,532 |
5.99 % |
$ |
297,653 |
$ |
4,491 |
6.07 % |
$ |
198,305 |
$ |
1,990 |
3.98 % |
|||||||||||||||
|
Loans, gross |
3,801,954 |
75,468 |
7.90 % |
3,740,544 |
73,103 |
7.86 % |
3,424,738 |
65,380 |
7.57 % |
|||||||||||||||||||||
|
Federal funds sold and other |
209,841 |
2,719 |
5.15 % |
277,144 |
3,631 |
5.27 % |
146,965 |
2,015 |
5.44 % |
|||||||||||||||||||||
|
Total interest-earning assets |
4,312,764 |
82,719 |
7.63 % |
4,315,341 |
81,225 |
7.57 % |
3,770,008 |
69,385 |
7.30 % |
|||||||||||||||||||||
|
Less allowance for loan losses |
(38,425) |
(38,429) |
(37,421) |
|||||||||||||||||||||||||||
|
Total interest-earning assets, net of |
4,274,339 |
4,276,912 |
3,732,587 |
|||||||||||||||||||||||||||
|
Noninterest-earning assets |
195,681 |
195,193 |
190,670 |
|||||||||||||||||||||||||||
|
Total assets |
$ |
4,470,020 |
$ |
4,472,105 |
$ |
3,923,257 |
||||||||||||||||||||||||
|
Liabilities and Shareholders' |
||||||||||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||||||||||
|
Interest-bearing deposits |
$ |
3,383,897 |
$ |
40,407 |
4.75 % |
$ |
3,411,592 |
$ |
40,410 |
4.76 % |
$ |
2,756,305 |
$ |
30,345 |
4.37 % |
|||||||||||||||
|
Note payable and line of credit |
113,536 |
1,853 |
6.49 % |
121,275 |
1,957 |
6.49 % |
112,765 |
1,919 |
6.75 % |
|||||||||||||||||||||
|
FHLB advances |
5,757 |
76 |
5.25 % |
— |
— |
— |
129,585 |
1,853 |
5.67 % |
|||||||||||||||||||||
|
Total interest-bearing liabilities |
3,503,190 |
42,336 |
4.81 % |
3,532,867 |
42,367 |
4.82 % |
2,998,655 |
34,117 |
4.51 % |
|||||||||||||||||||||
|
Noninterest-bearing deposits |
457,451 |
442,672 |
473,282 |
|||||||||||||||||||||||||||
|
Other liabilities |
63,255 |
63,056 |
49,271 |
|||||||||||||||||||||||||||
|
Total liabilities |
4,023,896 |
4,038,595 |
3,521,208 |
|||||||||||||||||||||||||||
|
Shareholders' equity |
446,124 |
433,510 |
402,049 |
|||||||||||||||||||||||||||
|
Total liabilities and shareholders' |
$ |
4,470,020 |
$ |
4,472,105 |
$ |
3,923,257 |
||||||||||||||||||||||||
|
Net interest income |
$ |
40,383 |
$ |
38,858 |
$ |
35,268 |
||||||||||||||||||||||||
|
Net interest spread (1) |
2.82 % |
2.75 % |
2.79 % |
|||||||||||||||||||||||||||
|
Net interest margin (2) |
3.73 % |
3.62 % |
3.71 % |
|||||||||||||||||||||||||||
|
___________ |
|
(1) Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities. |
|
(2) Net interest margin represents net interest income divided by average interest-earning assets. |
|
(3) Interest earned/paid includes accretion of deferred loan fees, premiums and discounts. |
|
(4) Annualized. |
|
Third Coast Bancshares, Inc. and Subsidiary | ||||||||||||||||||||
|
Nine Months Ended |
||||||||||||||||||||
|
September 30, 2024 |
September 30, 2023 |
|||||||||||||||||||
|
(Dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
||||||||||||||
|
Assets |
||||||||||||||||||||
|
Interest-earnings assets: |
||||||||||||||||||||
|
Investment securities |
$ |
267,091 |
$ |
12,116 |
6.06 % |
$ |
195,234 |
$ |
5,567 |
3.81 % |
||||||||||
|
Loans, gross |
3,736,200 |
219,242 |
7.84 % |
3,287,053 |
178,586 |
7.26 % |
||||||||||||||
|
Federal funds sold and other interest-earning |
290,011 |
11,462 |
5.28 % |
142,224 |
5,324 |
5.00 % |
||||||||||||||
|
Total interest-earning assets |
4,293,302 |
242,820 |
7.55 % |
3,624,511 |
189,477 |
6.99 % |
||||||||||||||
|
Less allowance for loan losses |
(38,045) |
(36,236) |
||||||||||||||||||
|
Total interest-earning assets, net of allowance |
4,255,257 |
3,588,275 |
||||||||||||||||||
|
Noninterest-earning assets |
194,650 |
186,443 |
||||||||||||||||||
|
Total assets |
$ |
4,449,907 |
$ |
3,774,718 |
||||||||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||
|
Interest-bearing deposits |
$ |
3,380,790 |
$ |
119,515 |
4.72 % |
$ |
2,645,127 |
$ |
77,373 |
3.91 % |
||||||||||
|
Note payable and line of credit |
118,547 |
5,909 |
6.66 % |
111,777 |
5,592 |
6.69 % |
||||||||||||||
|
FHLB advances and other |
1,933 |
76 |
5.25 % |
106,353 |
4,318 |
5.43 % |
||||||||||||||
|
Total interest-bearing liabilities |
3,501,270 |
125,500 |
4.79 % |
2,863,257 |
87,283 |
4.08 % |
||||||||||||||
|
Noninterest-bearing deposits |
452,411 |
473,834 |
||||||||||||||||||
|
Other liabilities |
62,753 |
44,025 |
||||||||||||||||||
|
Total liabilities |
4,016,434 |
3,381,116 |
||||||||||||||||||
|
Shareholders' equity |
433,473 |
393,602 |
||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
4,449,907 |
$ |
3,774,718 |
||||||||||||||||
|
Net interest income |
$ |
117,320 |
$ |
102,194 |
||||||||||||||||
|
Net interest spread (1) |
2.76 % |
2.91 % |
||||||||||||||||||
|
Net interest margin (2) |
3.65 % |
3.77 % |
||||||||||||||||||
|
___________ |
|
(1) Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities. |
|
(2) Net interest margin represents net interest income divided by average interest-earning assets. |
|
(3) Interest earned/paid includes accretion of deferred loan fees, premiums and discounts. |
|
(4) Annualized. |
|
Third Coast Bancshares, Inc. and Subsidiary | |||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||
|
2024 |
2023 |
||||||||||||||||||||
|
(Dollars in thousands) |
September |
June 30 |
March 31 |
December 31 |
September 30 |
||||||||||||||||
|
Period-end Loan Portfolio: |
|||||||||||||||||||||
|
Real estate loans: |
|||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||
|
Non-farm non-residential owner occupied |
$ |
470,222 |
$ |
499,941 |
$ |
510,266 |
$ |
520,822 |
$ |
517,917 |
|||||||||||
|
Non-farm non-residential non-owner occupied |
611,617 |
612,268 |
598,311 |
586,626 |
566,973 |
||||||||||||||||
|
Residential |
339,558 |
349,461 |
345,890 |
342,589 |
326,354 |
||||||||||||||||
|
Construction, development & other |
825,302 |
756,646 |
725,176 |
693,553 |
655,822 |
||||||||||||||||
|
Farmland |
35,650 |
31,049 |
29,706 |
30,396 |
30,646 |
||||||||||||||||
|
Commercial & industrial |
1,499,302 |
1,361,401 |
1,350,289 |
1,263,077 |
1,288,320 |
||||||||||||||||
|
Consumer |
2,002 |
2,216 |
2,382 |
2,555 |
2,665 |
||||||||||||||||
|
Municipal and other |
106,178 |
145,177 |
184,158 |
199,170 |
171,256 |
||||||||||||||||
|
Total loans |
$ |
3,889,831 |
$ |
3,758,159 |
$ |
3,746,178 |
$ |
3,638,788 |
$ |
3,559,953 |
|||||||||||
|
Asset Quality: |
|||||||||||||||||||||
|
Nonaccrual loans |
$ |
23,522 |
$ |
23,910 |
$ |
18,130 |
$ |
16,649 |
$ |
13,963 |
|||||||||||
|
Loans > 90 days and still accruing |
522 |
507 |
3,614 |
670 |
2,442 |
||||||||||||||||
|
Total nonperforming loans |
24,044 |
24,417 |
21,744 |
17,319 |
16,405 |
||||||||||||||||
|
Other real estate owned |
283 |
- |
- |
- |
- |
||||||||||||||||
|
Total nonperforming assets |
$ |
24,327 |
$ |
24,417 |
$ |
21,744 |
$ |
17,319 |
$ |
16,405 |
|||||||||||
|
QTD Net charge-offs (recoveries) |
$ |
(57) |
$ |
1,829 |
$ |
742 |
$ |
1,505 |
$ |
24 |
|||||||||||
|
Nonaccrual loans: |
|||||||||||||||||||||
|
Real estate loans: |
|||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||
|
Non-farm non-residential owner occupied |
$ |
9,696 |
$ |
10,051 |
$ |
2,369 |
$ |
1,211 |
$ |
978 |
|||||||||||
|
Non-farm non-residential non-owner occupied |
68 |
74 |
1,225 |
1,235 |
1,235 |
||||||||||||||||
|
Residential |
2,664 |
2,767 |
2,837 |
2,938 |
3,058 |
||||||||||||||||
|
Construction, development & other |
1 |
301 |
406 |
247 |
567 |
||||||||||||||||
|
Commercial & industrial |
11,093 |
10,717 |
11,293 |
11,018 |
8,125 |
||||||||||||||||
|
Total nonaccrual loans |
$ |
23,522 |
$ |
23,910 |
$ |
18,130 |
$ |
16,649 |
$ |
13,963 |
|||||||||||
|
Asset Quality Ratios: |
|||||||||||||||||||||
|
Nonperforming assets to total assets |
0.53 |
% |
0.55 |
% |
0.47 |
% |
0.39 |
% |
0.39 |
% |
|||||||||||
|
Nonperforming loans to total loans |
0.62 |
% |
0.65 |
% |
0.58 |
% |
0.48 |
% |
0.46 |
% |
|||||||||||
|
Allowance for credit losses to total loans |
1.02 |
% |
1.02 |
% |
1.02 |
% |
1.02 |
% |
1.07 |
% |
|||||||||||
|
QTD Net charge-offs (recoveries) to average loans |
(0.01) |
% |
0.20 |
% |
0.08 |
% |
0.17 |
% |
0.00 |
% |
|||||||||||
Third Coast Bancshares, Inc. and Subsidiary
GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures
(unaudited)
Our accounting and reporting policies conform to GAAP (generally accepted accounting principles) and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional financial measures discussed in this earnings release as being non-GAAP financial measures. Specifically, we review Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Return on Average Tangible Common Equity for internal planning and forecasting purposes. We classify a financial measure as a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are not included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios, or statistical measures calculated using exclusively financial measures calculated in accordance with GAAP.
The non-GAAP financial measures that we discuss in this earnings release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this earnings release may differ from that of other companies reporting measures with similar names. It is important to understand how other banking organizations calculate their financial measures with names similar to the non-GAAP financial measures we have discussed in this earnings release when comparing such non-GAAP financial measures.
Management believes the following non-GAAP financial measures assist investors in understanding the financial condition of the company:
-
Tangible Common Equity. The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity.
-
Tangible Book Value Per Share. The most directly comparable GAAP financial measure for tangible book value per share is book value per share. We believe that the tangible book value per share measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value.
-
Tangible Common Equity to Tangible Assets. The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity, the most directly comparable GAAP financial measure for tangible assets is total assets, and the most directly comparable GAAP financial measure for tangible common equity to tangible assets is total shareholders' equity to total assets. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity to tangible assets, each exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing both total shareholders' equity and assets while not increasing our tangible common equity or tangible assets.
- Return on Average Tangible Common Equity. The most directly comparable GAAP financial measure for average tangible common equity is average shareholders' equity, and the most directly comparable GAAP financial measure for return on average tangible common equity is return on average common equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of return on average tangible common equity, exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing average shareholders' equity while not increasing our tangible common equity.
The calculations of these non-GAAP financial measures are as follows:
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
|||||||||||||||||||||||||
|
(Dollars in thousands, except share and per |
September |
June 30 |
March 31 |
December |
September |
September |
September |
|||||||||||||||||||||
|
Tangible Common Equity: |
||||||||||||||||||||||||||||
|
Total shareholders' equity |
$ |
450,548 |
$ |
434,998 |
$ |
423,618 |
$ |
411,974 |
$ |
400,331 |
$ |
450,548 |
$ |
400,331 |
||||||||||||||
|
Less: Preferred stock including additional |
66,117 |
66,225 |
66,225 |
66,225 |
66,225 |
66,117 |
66,225 |
|||||||||||||||||||||
|
Total common equity |
384,431 |
368,773 |
357,393 |
345,749 |
334,106 |
384,431 |
334,106 |
|||||||||||||||||||||
|
Less: Goodwill and core deposit intangibles, |
18,882 |
18,922 |
18,963 |
19,003 |
19,043 |
18,882 |
19,043 |
|||||||||||||||||||||
|
Tangible common equity |
$ |
365,549 |
$ |
349,851 |
$ |
338,430 |
$ |
326,746 |
$ |
315,063 |
$ |
365,549 |
$ |
315,063 |
||||||||||||||
|
Common shares outstanding at end of period |
13,667,591 |
13,665,505 |
13,652,888 |
13,604,665 |
13,600,211 |
13,667,591 |
13,600,211 |
|||||||||||||||||||||
|
Book Value Per Share |
$ |
28.13 |
$ |
26.99 |
$ |
26.18 |
$ |
25.41 |
$ |
24.57 |
$ |
28.13 |
$ |
24.57 |
||||||||||||||
|
Tangible Book Value Per Share |
$ |
26.75 |
$ |
25.60 |
$ |
24.79 |
$ |
24.02 |
$ |
23.17 |
$ |
26.75 |
$ |
23.17 |
||||||||||||||
|
Tangible Assets: |
||||||||||||||||||||||||||||
|
Total assets |
$ |
4,627,770 |
$ |
4,474,119 |
$ |
4,660,403 |
$ |
4,396,074 |
$ |
4,215,792 |
$ |
4,627,770 |
$ |
4,215,792 |
||||||||||||||
|
Adjustments: Goodwill and core deposit |
18,882 |
18,922 |
18,963 |
19,003 |
19,043 |
18,882 |
19,043 |
|||||||||||||||||||||
|
Tangible assets |
$ |
4,608,888 |
$ |
4,455,197 |
$ |
4,641,440 |
$ |
4,377,071 |
$ |
4,196,749 |
$ |
4,608,888 |
$ |
4,196,749 |
||||||||||||||
|
Total Common Equity to Total Assets |
8.31 |
% |
8.24 |
% |
7.67 |
% |
7.86 |
% |
7.93 |
% |
8.31 |
% |
7.93 |
% |
||||||||||||||
|
Tangible Common Equity to Tangible Assets |
7.93 |
% |
7.85 |
% |
7.29 |
% |
7.46 |
% |
7.51 |
% |
7.93 |
% |
7.51 |
% |
||||||||||||||
|
Average Tangible Common Equity: |
||||||||||||||||||||||||||||
|
Average shareholders' equity |
$ |
446,124 |
$ |
433,510 |
$ |
420,646 |
$ |
407,972 |
$ |
402,049 |
$ |
433,473 |
$ |
393,602 |
||||||||||||||
|
Less: Average preferred stock including |
66,223 |
66,225 |
66,225 |
66,225 |
66,225 |
66,224 |
66,225 |
|||||||||||||||||||||
|
Average common equity |
379,901 |
367,285 |
354,421 |
341,747 |
335,824 |
367,249 |
327,377 |
|||||||||||||||||||||
|
Less: Average goodwill and core deposit |
18,906 |
18,946 |
18,987 |
19,027 |
19,068 |
18,946 |
19,108 |
|||||||||||||||||||||
|
Average tangible common equity |
$ |
360,995 |
$ |
348,339 |
$ |
335,434 |
$ |
322,720 |
$ |
316,756 |
$ |
348,303 |
$ |
308,269 |
||||||||||||||
|
Net Income |
$ |
12,775 |
$ |
10,796 |
$ |
10,367 |
$ |
9,689 |
$ |
5,578 |
$ |
33,938 |
$ |
23,712 |
||||||||||||||
|
Less: Dividends declared on preferred stock |
1,198 |
1,184 |
1,171 |
1,197 |
1,184 |
3,553 |
3,539 |
|||||||||||||||||||||
|
Net Income Available to Common |
$ |
11,577 |
$ |
9,612 |
$ |
9,196 |
$ |
8,492 |
$ |
4,394 |
$ |
30,385 |
$ |
20,173 |
||||||||||||||
|
Return on Average Common Equity(A) |
12.12 |
% |
10.53 |
% |
10.44 |
% |
9.86 |
% |
5.19 |
% |
11.05 |
% |
8.24 |
% |
||||||||||||||
|
Return on Average Tangible Common |
12.76 |
% |
11.10 |
% |
11.03 |
% |
10.44 |
% |
5.50 |
% |
11.65 |
% |
8.75 |
% |
||||||||||||||
|
___________ |
|
(A) Interim periods annualized. |
Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
(713) 529-6600
TCBX@dennardlascar.com
View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-2024-third-quarter-financial-results-302284912.html
SOURCE Third Coast Bancshares