Third Coast Bancshares, Inc. Reports 2024 Fourth Quarter and Full Year Financial Results
Year Over Year Book Value grew 12.8% and Tangible Book Value(1) grew 13.6%
HOUSTON, Jan. 22, 2025 /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 fourth quarter and full year financial results.
2024 Fourth Quarter Financial Highlights
- Net income totaled $13.7 million, or $0.92 and $0.79 per basic and diluted share, respectively, compared to $12.8 million, or $0.85 and $0.74 per basic and diluted share, respectively, for the third quarter of 2024.
- Net interest income totaled $43.4 million, representing an increase of 7.6% from $40.4 million in the third quarter of 2024.
- Return on average assets of 1.13% annualized for the quarter compared to 1.14% annualized for the third quarter of 2024 and 0.90% annualized for the fourth quarter of 2023.
- Efficiency Ratio improved to 58.80% for the fourth quarter of 2024 from 59.57% for the third quarter of 2024.
- Gross loans grew $76.6 million to $3.97 billion, 2.0% more than the $3.89 billion reported as of September 30, 2024.
- Book value per share and tangible book value per share(1) increased to $28.65 and $27.29, respectively, compared to $28.13 and $26.75, respectively, as of September 30, 2024.
2024 Full Year Financial and Operational Highlights
- Net income totaled $47.7 million, or $3.14 and $2.78 per basic and diluted share, respectively, for the year ended December 31, 2024, compared to $33.4 million, or $2.11 and $1.98 per basic and diluted share, respectively, for the year ended December 31, 2023.
- Total assets increased $546.4 million to $4.94 billion as of December 31, 2024, or 12.4% over the $4.40 billion reported as of December 31, 2023.
- Gross loans grew $327.6 million to $3.97 billion as of December 31, 2024, 9.0% more than the $3.64 billion reported as of December 31, 2023.
- Deposits increased $507.4 million to $4.31 billion as of December 31, 2024, or 13.3% over the $3.80 billion reported as of December 31, 2023.
- Opened three de novo branches in Austin, The Woodlands, and Houston, Texas.
(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.
Bart Caraway, Founder, Chairman, President & Chief Executive Officer of Third Coast, said, "I take tremendous pride in our remarkable team. Third Coast has exceptionally talented and dedicated bankers who consistently achieve outstanding results. For example, our fourth quarter net interest income was $43.4 million, reflecting robust growth over the past 14 quarters. This impressive milestone is just one of the noteworthy metrics that reflect our core values and underscore our commitment to operational efficiency and profitability. We delivered many other positive metrics that highlight not only our strategic initiatives, but also the unwavering loyalty and tireless work of our entire team.
"Looking ahead, we are excited about the potential to further strengthen our position and continue producing outstanding results. Third Coast remains focused on sustaining this momentum by innovating and adapting to evolving market conditions. We continue to explore new opportunities that align with our growth objectives while staying true to our mission of delivering exceptional value to our stakeholders," Mr. Caraway concluded.
Operating Results
Net Income and Earnings Per Share
Net income totaled $13.7 million for the fourth quarter of 2024, compared to $12.8 million for the third quarter of 2024 and $9.7 million for the fourth quarter of 2023. Net income available to common shareholders totaled $12.5 million for the fourth quarter of 2024, compared to $11.6 million for the third quarter of 2024 and $8.5 million for the fourth quarter of 2023. The quarter-over-quarter increase was primarily due to an increase in net interest income, resulting from loan growth and additional investments in federal funds sold and interest-bearing deposits with correspondent banks, offset by a slightly higher provision for credit loss and an increase in salary and employee benefit expenses during the fourth quarter of 2024. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended December 31, 2024 and September 30, 2024.
Basic and diluted earnings per share were $0.92 per share and $0.79 per share, respectively, in the fourth quarter of 2024, compared to $0.85 per share and $0.74 per share, respectively, in the third quarter of 2024 and $0.62 per share and $0.57 per share, respectively, in the fourth quarter of 2023.
Net Interest Margin and Net Interest Income
The net interest margin for the fourth quarter of 2024 was 3.71%, compared to 3.73% for the third quarter of 2024 and 3.61% for the fourth quarter of 2023. The yield on loans for the fourth quarter of 2024 was 7.68%, compared to 7.90% for the third quarter of 2024 and 7.75% for the fourth quarter of 2023. The cost of interest-bearing deposits for the fourth quarter of 2024 was 4.33%, compared to 4.75% for the third quarter of 2024 and 4.67% for the fourth quarter of 2023.
Net interest income totaled $43.4 million for the fourth quarter of 2024, an increase of 7.6% from $40.4 million for the third quarter of 2024 and an increase of 16.4% from $37.3 million for the fourth quarter of 2023. Interest income totaled $85.5 million for the fourth quarter of 2024, an increase of 3.4% from $82.7 million for the third quarter of 2024 and an increase of 11.0% from $77.1 million for the fourth quarter of 2023. The quarter-over-quarter increase in interest income was primarily due to the increase in interest income from federal funds sold and deposits in interest-bearing correspondent banks which increased $1.9 million, or 68.4%, compared to the third quarter of 2024. Interest expense in the fourth quarter of 2024 remained consistent with the third quarter of 2024 at $42.1 million and $42.3 million, respectively, and increased from $39.7 million for the fourth quarter of 2023.
Noninterest Income and Noninterest Expense
Noninterest income totaled $2.9 million for the fourth quarter of 2024, compared to $2.5 million for the third quarter of 2024 and $2.2 million for the fourth quarter of 2023. The sequential increase in noninterest income was primarily due to gains recorded on the sale of investment securities of $196,000 in the fourth quarter of 2024, compared to losses recorded on the sale of investment securities of $480,000 in the previous quarter, offset by a decrease in syndication fees during the fourth quarter of 2024.
Noninterest expense increased to $27.2 million for the fourth quarter of 2024, compared to $25.6 million for the third quarter of 2024 and $26.4 million for the fourth quarter of 2023. The quarter-over-quarter increase in noninterest expense was primarily due to increased salary expense resulting from new hires, increased bonus expense and a reduction in salary expense deferral related to loan fundings during the fourth quarter of 2024.
The efficiency ratio improved to 58.80% for the fourth quarter of 2024, compared to 59.57% for the third quarter of 2024 and 66.89% for the fourth quarter of 2023.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended December 31, 2024, gross loans increased to $3.97 billion, an increase of $76.6 million, or 2.0%, from $3.89 billion as of September 30, 2024, and an increase of $327.6 million, or 9.0%, from $3.64 billion as of December 31, 2023. Real estate and municipal loans accounted for the majority of the loan growth for the fourth quarter of 2024, with real estate loans increasing $56.9 million and municipal loans increasing $21.7 million from the third quarter of 2024.
Asset Quality
Nonperforming loans at December 31, 2024 were $27.9 million, compared to $24.0 million at September 30, 2024 and $17.3 million at December 31, 2023. As of December 31, 2024, the nonperforming loans to total loans ratio was 0.70%, compared to 0.62% as of September 30, 2024 and 0.48% as of December 31, 2023. The increase from September 30, 2024 was due primarily to $6.7 million in loans placed on nonaccrual during the quarter, partially offset by $1.7 million in paydowns, $1.1 million in loans returned to accrual status, and a $690,000 loan charged-off. Of the loans placed on nonaccrual during the quarter, one commercial loan relationship represented $5.4 million of the downgrades and has a loan-to-value ratio of 35%. We do not anticipate losses on these recent downgrades to nonaccrual.
The provision for credit loss recorded for the fourth quarter of 2024 was $1.2 million, and the allowance for credit losses of $40.3 million represented 1.02% of the $3.97 billion in gross loans outstanding as of December 31, 2024.
The Company recorded net charge-offs of $879,000 and $1.5 million for the fourth quarter of 2024 and 2023, respectively. On a full year basis, net charge-offs were $3.4 million and $1.2 million in 2024 and 2023, respectively.
Deposits and Composition
Deposits totaled $4.31 billion as of December 31, 2024, an increase of 7.9% from $3.99 billion as of September 30, 2024, and an increase of 13.3% from $3.80 billion as of December 31, 2023. Noninterest-bearing demand deposits increased from $489.8 million as of September 30, 2024, to $602.1 million as of December 31, 2024 and represented 14.0% of total deposits as of December 31, 2024, compared to 12.3% of total deposits as of September 30, 2024. As of December 31, 2024, interest-bearing demand deposits increased $296.7 million, or 10.6%, time deposits decreased $89.7 million, or 13.4%, and savings accounts decreased $3.2 million, or 10.3%, respectively, from September 30, 2024.
The average cost of deposits was 3.83% for the fourth quarter of 2024, representing a 35-basis point decrease from the third quarter of 2024 and a 24-basis point decrease from the fourth quarter of 2023. The decreases were due to noninterest-bearing demand deposit growth and the reduction in rates paid on interest-bearing demand deposits.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss its 2024 fourth quarter and fiscal year results, which will be broadcast live over the Internet, on Thursday, January 23, 2025, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate in the call, dial 201-389-0869 and ask for the Third Coast Bancshares, Inc. call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through January 28, 2025, and may be accessed by dialing 201-612-7415 and using passcode 13750591#. Also, an archive of the webcast will be available shortly after the call at https://ir.thirdcoast.bank/events-and-presentations/events/ for 90 days.
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a commercially focused, Texas-based bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 19 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; and changes in key management personnel. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, 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)
December 31
September 30
June 30
March 31
December 31
ASSETS
Cash and cash equivalents:
Cash and due from banks
$
371,157
$
258,191
$
241,809
$
367,831
$
296,926
Federal funds sold
50,045
12,265
12,088
130,429
114,919
Total cash and cash equivalents
421,202
270,456
253,897
498,260
411,845
Interest bearing time deposits in other banks
356
353
350
-
-
Investment securities available-for-sale
384,025
292,104
286,167
246,291
178,087
Loans held for investment
3,966,425
3,889,831
3,758,159
3,746,178
3,638,788
Less: allowance for credit losses
(40,304)
(39,683)
(38,211)
(38,140)
(37,022)
Loans, net
3,926,121
3,850,148
3,719,948
3,708,038
3,601,766
Accrued interest receivable
25,820
26,111
27,518
25,769
23,120
Premises and equipment, net
26,230
26,696
27,626
26,844
28,554
Bank-owned life insurance
68,341
67,679
67,030
66,443
65,861
Non-marketable securities, at cost
15,980
24,328
16,147
16,095
16,041
Deferred tax asset, net
11,445
8,654
8,972
8,712
9,227
Derivative assets
6,479
5,786
7,799
11,015
8,828
Right-of-use assets - operating leases
19,863
20,397
20,944
20,729
21,439
Goodwill and other intangible assets
18,841
18,882
18,922
18,963
19,003
Other assets
17,743
16,176
18,799
13,244
12,303
Total assets
$
4,942,446
$
4,627,770
$
4,474,119
$
4,660,403
$
4,396,074
LIABILITIES
Deposits:
Noninterest bearing
$
602,082
$
489,822
$
464,498
$
424,019
$
459,553
Interest bearing
3,708,416
3,504,616
3,391,093
3,626,653
3,343,595
Total deposits
4,310,498
3,994,438
3,855,591
4,050,672
3,803,148
Accrued interest payable
6,281
7,283
5,668
3,927
4,794
Derivative liabilities
8,660
6,874
7,626
8,253
10,687
Lease liability - operating leases
20,900
21,412
21,919
21,647
22,280
Other liabilities
23,754
34,632
30,786
27,806
23,763
Line of credit - Senior Debt
30,875
31,875
36,875
43,875
38,875
Note payable - Subordinated Debentures, net
80,759
80,708
80,656
80,605
80,553
Total liabilities
4,481,727
4,177,222
4,039,121
4,236,785
3,984,100
SHAREHOLDERS' EQUITY
Series A Convertible Non-Cumulative Preferred Stock
69
69
69
69
69
Series B Convertible Perpetual Preferred Stock
-
-
-
-
-
Common stock
13,848
13,746
13,744
13,731
13,683
Common stock - non-voting
-
-
-
-
-
Additional paid-in capital
321,696
320,871
320,496
320,077
319,613
Retained earnings
121,697
109,160
97,583
87,971
78,775
Accumulated other comprehensive income
4,508
7,801
4,205
2,869
933
Treasury stock, at cost
(1,099)
(1,099)
(1,099)
(1,099)
(1,099)
Total shareholders' equity
460,719
450,548
434,998
423,618
411,974
Total liabilities and shareholders' equity
$
4,942,446
$
4,627,770
$
4,474,119
$
4,660,403
$
4,396,074
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
Years Ended
2024
2023
2024
2023
(Dollars in thousands, except per share data)
December
31
September
30
June 30
March
31
December
31
December
31
December
31
INTEREST INCOME:
Loans, including fees
$
76,017
$
75,468
$
73,103
$
70,671
$
70,325
$
295,259
$
248,911
Investment securities available-for-sale
4,939
4,532
4,491
3,093
2,746
17,055
8,313
Federal funds sold and other
4,580
2,719
3,631
5,112
3,996
16,042
9,320
Total interest income
85,536
82,719
81,225
78,876
77,067
328,356
266,544
INTEREST EXPENSE:
Deposit accounts
40,233
40,407
40,410
38,698
37,671
159,748
115,044
FHLB advances and other borrowings
1,865
1,929
1,957
2,099
2,065
7,850
11,975
Total interest expense
42,098
42,336
42,367
40,797
39,736
167,598
127,019
Net interest income
43,438
40,383
38,858
38,079
37,331
160,758
139,525
Provision for credit losses
1,156
1,085
1,900
1,560
1,100
5,701
6,320
Net interest income after credit loss expense
42,282
39,298
36,958
36,519
36,231
155,057
133,205
NONINTEREST INCOME:
Service charges and fees
1,772
2,143
1,515
1,505
850
6,935
3,233
Earnings on bank-owned life insurance
662
649
587
582
559
2,480
2,101
Gain (loss) on sale of investment securities available-for-sale
196
(480)
123
157
21
(4)
482
Gain on sale of SBA loans
-
-
-
30
326
30
440
Other
243
205
663
69
401
1,180
1,949
Total noninterest income
2,873
2,517
2,888
2,343
2,157
10,621
8,205
NONINTEREST EXPENSE:
Salaries and employee benefits
17,018
15,679
15,917
16,502
16,119
65,116
62,217
Occupancy and equipment expense
3,292
3,229
3,146
3,045
2,875
12,712
11,285
Legal and professional
1,587
1,037
1,621
1,385
2,305
5,630
7,783
Data processing and network expense
1,182
1,608
1,046
1,418
987
5,254
4,735
Regulatory assessments
1,196
1,249
1,005
980
942
4,430
2,598
Advertising and marketing
526
420
406
355
614
1,707
2,627
Software purchases and maintenance
766
854
828
817
839
3,265
2,375
Loan operations
189
227
262
226
134
904
673
Telephone and communications
144
166
141
134
125
585
510
Other
1,330
1,085
1,257
1,052
1,474
4,724
4,995
Total noninterest expense
27,230
25,554
25,629
25,914
26,414
104,327
99,798
NET INCOME BEFORE INCOME TAX
EXPENSE
17,925
16,261
14,217
12,948
11,974
61,351
41,612
Income tax expense
4,192
3,486
3,421
2,581
2,285
13,680
8,211
NET INCOME
13,733
12,775
10,796
10,367
9,689
47,671
33,401
Preferred stock dividends declared
1,196
1,198
1,184
1,171
1,197
4,749
4,736
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS
$
12,537
$
11,577
$
9,612
$
9,196
$
8,492
$
42,922
$
28,665
EARNINGS PER COMMON SHARE:
Basic earnings per share
$
0.92
$
0.85
$
0.70
$
0.68
$
0.62
$
3.14
$
2.11
Diluted earnings per share
$
0.79
$
0.74
$
0.63
$
0.61
$
0.57
$
2.78
$
1.98
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
Years Ended
2024
2023
2024
2023
(Dollars in thousands, except share and per share data)
December
31
September
30
June 30
March 31
December
31
December
31
December
31
Earnings per share, basic
$
0.92
$
0.85
$
0.70
$
0.68
$
0.62
$
3.14
$
2.11
Earnings per share, diluted
$
0.79
$
0.74
$
0.63
$
0.61
$
0.57
$
2.78
$
1.98
Dividends on common stock
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Dividends on Series A Convertible
Non-Cumulative Preferred Stock
$
17.25
$
17.25
$
17.06
$
16.88
$
17.25
$
68.44
$
68.25
Return on average assets (A)
1.13
%
1.14
%
0.97
%
0.95
%
0.90
%
1.05
%
0.86
%
Return on average common equity (A)
12.66
%
12.12
%
10.53
%
10.44
%
9.86
%
11.48
%
8.66
%
Return on average tangible common
equity (A) (B)
13.29
%
12.76
%
11.10
%
11.03
%
10.44
%
12.09
%
9.19
%
Net interest margin (A) (C)
3.71
%
3.73
%
3.62
%
3.60
%
3.61
%
3.67
%
3.73
%
Efficiency ratio (D)
58.80
%
59.57
%
61.39
%
64.11
%
66.89
%
60.88
%
67.55
%
Capital Ratios
Third Coast Bancshares, Inc. (consolidated):
Total common equity to total assets
7.98
%
8.31
%
8.24
%
7.67
%
7.86
%
7.98
%
7.86
%
Tangible common equity to tangible
assets (B)
7.63
%
7.93
%
7.85
%
7.29
%
7.46
%
7.63
%
7.46
%
Common equity tier 1 (to risk weighted
assets)
8.41
%
8.38
%
8.29
%
7.97
%
8.06
%
8.41
%
8.06
%
Tier 1 capital (to risk weighted assets)
9.90
%
9.93
%
9.88
%
9.54
%
9.70
%
9.90
%
9.70
%
Total capital (to risk weighted assets)
12.68
%
12.80
%
12.78
%
12.41
%
12.66
%
12.68
%
12.66
%
Tier 1 capital (to average assets)
9.12
%
9.53
%
9.24
%
9.15
%
9.23
%
9.12
%
9.23
%
Third Coast Bank:
Common equity tier 1 (to risk weighted
assets)
12.35
%
12.45
%
12.52
%
12.32
%
12.52
%
12.35
%
12.52
%
Tier 1 capital (to risk weighted assets)
12.35
%
12.45
%
12.52
%
12.32
%
12.52
%
12.35
%
12.52
%
Total capital (to risk weighted assets)
13.29
%
13.42
%
13.49
%
13.28
%
13.49
%
13.29
%
13.49
%
Tier 1 capital (to average assets)
11.37
%
11.95
%
11.71
%
11.81
%
11.91
%
11.37
%
11.91
%
Other Data
Weighted average shares:
Basic
13,698,010
13,665,400
13,657,223
13,606,256
13,603,149
13,656,859
13,583,553
Diluted
17,394,884
17,184,991
17,018,680
16,936,003
16,890,381
17,133,845
16,877,891
Period end shares outstanding
13,769,780
13,667,591
13,665,505
13,652,888
13,604,665
13,769,780
13,604,665
Book value per share
$
28.65
$
28.13
$
26.99
$
26.18
$
25.41
$
28.65
$
25.41
Tangible book value per share (B)
$
27.29
$
26.75
$
25.60
$
24.79
$
24.02
$
27.29
$
24.02
___________
(A)
Interim periods annualized.
(B)
Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures at the end of this news release.
(C)
Net interest margin represents net interest income divided by average interest-earning assets.
(D)
Represents total noninterest expense divided by the sum of net interest income plus noninterest income. Taxes and provision for credit losses are not part of this calculation.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
December 31, 2024
September 30, 2024
December 31, 2023
(Dollars in thousands)
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate(4)
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate(4)
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate(4)
Assets
Interest-earnings assets:
Loans, gross
$
3,937,405
$
76,017
7.68 %
$
3,801,954
$
75,468
7.90 %
$
3,600,980
$
70,325
7.75 %
Investment securities
342,474
4,939
5.74 %
300,969
4,532
5.99 %
203,376
2,746
5.36 %
Federal funds sold and other
interest-earning assets
379,836
4,580
4.80 %
209,841
2,719
5.15 %
299,165
3,996
5.30 %
Total interest-earning assets
4,659,715
85,536
7.30 %
4,312,764
82,719
7.63 %
4,103,521
77,067
7.45 %
Less allowance for loan losses
(39,855)
(38,425)
(38,274)
Total interest-earning assets, net of
allowance
4,619,860
4,274,339
4,065,247
Noninterest-earning assets
195,143
195,681
194,659
Total assets
$
4,815,003
$
4,470,020
$
4,259,906
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits
$
3,692,533
$
40,233
4.33 %
$
3,383,897
$
40,407
4.75 %
$
3,202,462
$
37,671
4.67 %
Note payable and line of credit
109,294
1,708
6.22 %
113,536
1,853
6.49 %
118,816
2,065
6.90 %
FHLB advances
11,900
157
5.25 %
5,757
76
5.25 %
—
—
—
Total interest-bearing liabilities
3,813,727
42,098
4.39 %
3,503,190
42,336
4.81 %
3,321,278
39,736
4.75 %
Noninterest-bearing deposits
484,738
457,451
472,738
Other liabilities
56,369
63,255
57,918
Total liabilities
4,354,834
4,023,896
3,851,934
Shareholders' equity
460,169
446,124
407,972
Total liabilities and shareholders'
equity
$
4,815,003
$
4,470,020
$
4,259,906
Net interest income
$
43,438
$
40,383
$
37,331
Net interest spread (1)
2.91 %
2.82 %
2.70 %
Net interest margin (2)
3.71 %
3.73 %
3.61 %
___________
(1)
Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities.
(2)
Net interest margin represents net interest income divided by average interest-earning assets.
(3)
Interest earned/paid includes accretion of deferred loan fees, premiums and discounts.
(4)
Annualized.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Years Ended
December 31, 2024
December 31, 2023
(Dollars in thousands)
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate
Average
Outstanding
Balance
Interest
Earned/
Paid(3)
Average
Yield/
Rate
Assets
Interest-earnings assets:
Loans, gross
$
3,786,776
$
295,259
7.80 %
$
3,366,180
$
248,911
7.39 %
Investment securities
286,039
17,055
5.96 %
197,286
8,313
4.21 %
Federal funds sold and other interest-earning
assets
312,590
16,042
5.13 %
181,782
9,320
5.13 %
Total interest-earning assets
4,385,405
328,356
7.49 %
3,745,248
266,544
7.12 %
Less allowance for loan losses
(38,500)
(36,750)
Total interest-earning assets, net of allowance
4,346,905
3,708,498
Noninterest-earning assets
194,775
188,514
Total assets
$
4,541,680
$
3,897,012
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits
$
3,459,151
$
159,748
4.62 %
$
2,785,605
$
115,044
4.13 %
Note payable and line of credit
116,222
7,617
6.55 %
113,552
7,657
6.74 %
FHLB advances and other
4,438
233
5.25 %
79,546
4,318
5.43 %
Total interest-bearing liabilities
3,579,811
167,598
4.68 %
2,978,703
127,019
4.26 %
Noninterest-bearing deposits
460,537
473,558
Other liabilities
61,148
47,527
Total liabilities
4,101,496
3,499,788
Shareholders' equity
440,184
397,224
Total liabilities and shareholders' equity
$
4,541,680
$
3,897,012
Net interest income
$
160,758
$
139,525
Net interest spread (1)
2.81 %
2.86 %
Net interest margin (2)
3.67 %
3.73 %
___________
(1)
Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities.
(2)
Net interest margin represents net interest income divided by average interest-earning assets.
(3)
Interest earned/paid includes accretion of deferred loan fees, premiums and discounts.
Third Coast Bancshares, Inc. and Subsidiary
Financial Highlights
(unaudited)
Three Months Ended
2024
2023
(Dollars in thousands)
December
31
September
30
June 30
March 31
December 31
Period-end Loan Portfolio:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied
$
448,134
$
470,222
$
499,941
$
510,266
$
520,822
Non-farm non-residential non-owner occupied
652,119
611,617
612,268
598,311
586,626
Residential
336,736
339,558
349,461
345,890
342,589
Construction, development & other
871,373
825,302
756,646
725,176
693,553
Farmland
30,915
35,650
31,049
29,706
30,396
Commercial & industrial
1,497,408
1,499,302
1,361,401
1,350,289
1,263,077
Consumer
1,859
2,002
2,216
2,382
2,555
Municipal and other
127,881
106,178
145,177
184,158
199,170
Total loans
$
3,966,425
$
3,889,831
$
3,758,159
$
3,746,178
$
3,638,788
Asset Quality:
Nonaccrual loans
$
26,773
$
23,522
$
23,910
$
18,130
$
16,649
Loans > 90 days and still accruing
1,173
522
507
3,614
670
Total nonperforming loans
27,946
24,044
24,417
21,744
17,319
Other real estate owned
862
283
-
-
-
Total nonperforming assets
$
28,808
$
24,327
$
24,417
$
21,744
$
17,319
QTD Net charge-offs (recoveries)
$
879
$
(57)
$
1,829
$
742
$
1,505
Nonaccrual loans:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied
$
10,433
$
9,696
$
10,051
$
2,369
$
1,211
Non-farm non-residential non-owner occupied
-
68
74
1,225
1,235
Residential
2,226
2,664
2,767
2,837
2,938
Construction, development & other
400
1
301
406
247
Commercial & industrial
13,714
11,093
10,717
11,293
11,018
Total nonaccrual loans
$
26,773
$
23,522
$
23,910
$
18,130
$
16,649
Asset Quality Ratios:
Nonperforming assets to total assets
0.58
%
0.53
%
0.55
%
0.47
%
0.39
%
Nonperforming loans to total loans
0.70
%
0.62
%
0.65
%
0.58
%
0.48
%
Allowance for credit losses to total loans
1.02
%
1.02
%
1.02
%
1.02
%
1.02
%
QTD Net charge-offs (recoveries) to average loans
(annualized)
0.09
%
(0.01)
%
0.20
%
0.08
%
0.17
%
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
Years Ended
2024
2023
2024
2023
(Dollars in thousands, except share and per share data)
December
31
September
30
June 30
March 31
December
31
December
31
December
31
Tangible Common Equity:
Total shareholders' equity
$
460,719
$
450,548
$
434,998
$
423,618
$
411,974
$
460,719
$
411,974
Less: Preferred stock including additional
paid in capital
66,160
66,117
66,225
66,225
66,225
66,160
66,225
Total common equity
394,559
384,431
368,773
357,393
345,749
394,559
345,749
Less: Goodwill and core deposit intangibles,
net
18,841
18,882
18,922
18,963
19,003
18,841
19,003
Tangible common equity
$
375,718
$
365,549
$
349,851
$
338,430
$
326,746
$
375,718
$
326,746
Common shares outstanding at end of period
13,769,780
13,667,591
13,665,505
13,652,888
13,604,665
13,769,780
13,604,665
Book Value Per Share
$
28.65
$
28.13
$
26.99
$
26.18
$
25.41
$
28.65
$
25.41
Tangible Book Value Per Share
$
27.29
$
26.75
$
25.60
$
24.79
$
24.02
$
27.29
$
24.02
Tangible Assets:
Total assets
$
4,942,446
$
4,627,770
$
4,474,119
$
4,660,403
$
4,396,074
$
4,942,446
$
4,396,074
Adjustments: Goodwill and core deposit
intangibles, net
18,841
18,882
18,922
18,963
19,003
18,841
19,003
Tangible assets
$
4,923,605
$
4,608,888
$
4,455,197
$
4,641,440
$
4,377,071
$
4,923,605
$
4,377,071
Total Common Equity to Total Assets
7.98
%
8.31
%
8.24
%
7.67
%
7.86
%
7.98
%
7.86
%
Tangible Common Equity to Tangible Assets
7.63
%
7.93
%
7.85
%
7.29
%
7.46
%
7.63
%
7.46
%
Average Tangible Common Equity:
Average shareholders' equity
$
460,169
$
446,124
$
433,510
$
420,646
$
407,972
$
440,184
$
397,224
Less: Average preferred stock including
additional paid in capital
66,121
66,223
66,225
66,225
66,225
66,198
66,225
Average common equity
394,048
379,901
367,285
354,421
341,747
373,986
330,999
Less: Average goodwill and core deposit
intangibles, net
18,865
18,906
18,946
18,987
19,027
18,926
19,088
Average tangible common equity
$
375,183
$
360,995
$
348,339
$
335,434
$
322,720
$
355,060
$
311,911
Net Income
$
13,733
$
12,775
$
10,796
$
10,367
$
9,689
$
47,671
$
33,401
Less: Dividends declared on preferred stock
1,196
1,198
1,184
1,171
1,197
4,749
4,736
Net Income Available to Common Shareholders
$
12,537
$
11,577
$
9,612
$
9,196
$
8,492
$
42,922
$
28,665
Return on Average Common Equity(A)
12.66
%
12.12
%
10.53
%
10.44
%
9.86
%
11.48
%
8.66
%
Return on Average Tangible Common Equity(A)
13.29
%
12.76
%
11.10
%
11.03
%
10.44
%
12.09
%
9.19
%
___________
(A)
Interim periods annualized.
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-fourth-quarter-and-full-year-financial-results-302357711.html
SOURCE Third Coast Bancshares
Year Over Year Book Value grew 12.8% and Tangible Book Value(1) grew 13.6%
HOUSTON, Jan. 22, 2025 /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 fourth quarter and full year financial results.
2024 Fourth Quarter Financial Highlights
- Net income totaled $13.7 million, or $0.92 and $0.79 per basic and diluted share, respectively, compared to $12.8 million, or $0.85 and $0.74 per basic and diluted share, respectively, for the third quarter of 2024.
- Net interest income totaled $43.4 million, representing an increase of 7.6% from $40.4 million in the third quarter of 2024.
- Return on average assets of 1.13% annualized for the quarter compared to 1.14% annualized for the third quarter of 2024 and 0.90% annualized for the fourth quarter of 2023.
- Efficiency Ratio improved to 58.80% for the fourth quarter of 2024 from 59.57% for the third quarter of 2024.
- Gross loans grew $76.6 million to $3.97 billion, 2.0% more than the $3.89 billion reported as of September 30, 2024.
- Book value per share and tangible book value per share(1) increased to $28.65 and $27.29, respectively, compared to $28.13 and $26.75, respectively, as of September 30, 2024.
2024 Full Year Financial and Operational Highlights
- Net income totaled $47.7 million, or $3.14 and $2.78 per basic and diluted share, respectively, for the year ended December 31, 2024, compared to $33.4 million, or $2.11 and $1.98 per basic and diluted share, respectively, for the year ended December 31, 2023.
- Total assets increased $546.4 million to $4.94 billion as of December 31, 2024, or 12.4% over the $4.40 billion reported as of December 31, 2023.
- Gross loans grew $327.6 million to $3.97 billion as of December 31, 2024, 9.0% more than the $3.64 billion reported as of December 31, 2023.
- Deposits increased $507.4 million to $4.31 billion as of December 31, 2024, or 13.3% over the $3.80 billion reported as of December 31, 2023.
- Opened three de novo branches in Austin, The Woodlands, and Houston, Texas.
|
(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. |
|||
Bart Caraway, Founder, Chairman, President & Chief Executive Officer of Third Coast, said, "I take tremendous pride in our remarkable team. Third Coast has exceptionally talented and dedicated bankers who consistently achieve outstanding results. For example, our fourth quarter net interest income was $43.4 million, reflecting robust growth over the past 14 quarters. This impressive milestone is just one of the noteworthy metrics that reflect our core values and underscore our commitment to operational efficiency and profitability. We delivered many other positive metrics that highlight not only our strategic initiatives, but also the unwavering loyalty and tireless work of our entire team.
"Looking ahead, we are excited about the potential to further strengthen our position and continue producing outstanding results. Third Coast remains focused on sustaining this momentum by innovating and adapting to evolving market conditions. We continue to explore new opportunities that align with our growth objectives while staying true to our mission of delivering exceptional value to our stakeholders," Mr. Caraway concluded.
Operating Results
Net Income and Earnings Per Share
Net income totaled $13.7 million for the fourth quarter of 2024, compared to $12.8 million for the third quarter of 2024 and $9.7 million for the fourth quarter of 2023. Net income available to common shareholders totaled $12.5 million for the fourth quarter of 2024, compared to $11.6 million for the third quarter of 2024 and $8.5 million for the fourth quarter of 2023. The quarter-over-quarter increase was primarily due to an increase in net interest income, resulting from loan growth and additional investments in federal funds sold and interest-bearing deposits with correspondent banks, offset by a slightly higher provision for credit loss and an increase in salary and employee benefit expenses during the fourth quarter of 2024. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended December 31, 2024 and September 30, 2024.
Basic and diluted earnings per share were $0.92 per share and $0.79 per share, respectively, in the fourth quarter of 2024, compared to $0.85 per share and $0.74 per share, respectively, in the third quarter of 2024 and $0.62 per share and $0.57 per share, respectively, in the fourth quarter of 2023.
Net Interest Margin and Net Interest Income
The net interest margin for the fourth quarter of 2024 was 3.71%, compared to 3.73% for the third quarter of 2024 and 3.61% for the fourth quarter of 2023. The yield on loans for the fourth quarter of 2024 was 7.68%, compared to 7.90% for the third quarter of 2024 and 7.75% for the fourth quarter of 2023. The cost of interest-bearing deposits for the fourth quarter of 2024 was 4.33%, compared to 4.75% for the third quarter of 2024 and 4.67% for the fourth quarter of 2023.
Net interest income totaled $43.4 million for the fourth quarter of 2024, an increase of 7.6% from $40.4 million for the third quarter of 2024 and an increase of 16.4% from $37.3 million for the fourth quarter of 2023. Interest income totaled $85.5 million for the fourth quarter of 2024, an increase of 3.4% from $82.7 million for the third quarter of 2024 and an increase of 11.0% from $77.1 million for the fourth quarter of 2023. The quarter-over-quarter increase in interest income was primarily due to the increase in interest income from federal funds sold and deposits in interest-bearing correspondent banks which increased $1.9 million, or 68.4%, compared to the third quarter of 2024. Interest expense in the fourth quarter of 2024 remained consistent with the third quarter of 2024 at $42.1 million and $42.3 million, respectively, and increased from $39.7 million for the fourth quarter of 2023.
Noninterest Income and Noninterest Expense
Noninterest income totaled $2.9 million for the fourth quarter of 2024, compared to $2.5 million for the third quarter of 2024 and $2.2 million for the fourth quarter of 2023. The sequential increase in noninterest income was primarily due to gains recorded on the sale of investment securities of $196,000 in the fourth quarter of 2024, compared to losses recorded on the sale of investment securities of $480,000 in the previous quarter, offset by a decrease in syndication fees during the fourth quarter of 2024.
Noninterest expense increased to $27.2 million for the fourth quarter of 2024, compared to $25.6 million for the third quarter of 2024 and $26.4 million for the fourth quarter of 2023. The quarter-over-quarter increase in noninterest expense was primarily due to increased salary expense resulting from new hires, increased bonus expense and a reduction in salary expense deferral related to loan fundings during the fourth quarter of 2024.
The efficiency ratio improved to 58.80% for the fourth quarter of 2024, compared to 59.57% for the third quarter of 2024 and 66.89% for the fourth quarter of 2023.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended December 31, 2024, gross loans increased to $3.97 billion, an increase of $76.6 million, or 2.0%, from $3.89 billion as of September 30, 2024, and an increase of $327.6 million, or 9.0%, from $3.64 billion as of December 31, 2023. Real estate and municipal loans accounted for the majority of the loan growth for the fourth quarter of 2024, with real estate loans increasing $56.9 million and municipal loans increasing $21.7 million from the third quarter of 2024.
Asset Quality
Nonperforming loans at December 31, 2024 were $27.9 million, compared to $24.0 million at September 30, 2024 and $17.3 million at December 31, 2023. As of December 31, 2024, the nonperforming loans to total loans ratio was 0.70%, compared to 0.62% as of September 30, 2024 and 0.48% as of December 31, 2023. The increase from September 30, 2024 was due primarily to $6.7 million in loans placed on nonaccrual during the quarter, partially offset by $1.7 million in paydowns, $1.1 million in loans returned to accrual status, and a $690,000 loan charged-off. Of the loans placed on nonaccrual during the quarter, one commercial loan relationship represented $5.4 million of the downgrades and has a loan-to-value ratio of 35%. We do not anticipate losses on these recent downgrades to nonaccrual.
The provision for credit loss recorded for the fourth quarter of 2024 was $1.2 million, and the allowance for credit losses of $40.3 million represented 1.02% of the $3.97 billion in gross loans outstanding as of December 31, 2024.
The Company recorded net charge-offs of $879,000 and $1.5 million for the fourth quarter of 2024 and 2023, respectively. On a full year basis, net charge-offs were $3.4 million and $1.2 million in 2024 and 2023, respectively.
Deposits and Composition
Deposits totaled $4.31 billion as of December 31, 2024, an increase of 7.9% from $3.99 billion as of September 30, 2024, and an increase of 13.3% from $3.80 billion as of December 31, 2023. Noninterest-bearing demand deposits increased from $489.8 million as of September 30, 2024, to $602.1 million as of December 31, 2024 and represented 14.0% of total deposits as of December 31, 2024, compared to 12.3% of total deposits as of September 30, 2024. As of December 31, 2024, interest-bearing demand deposits increased $296.7 million, or 10.6%, time deposits decreased $89.7 million, or 13.4%, and savings accounts decreased $3.2 million, or 10.3%, respectively, from September 30, 2024.
The average cost of deposits was 3.83% for the fourth quarter of 2024, representing a 35-basis point decrease from the third quarter of 2024 and a 24-basis point decrease from the fourth quarter of 2023. The decreases were due to noninterest-bearing demand deposit growth and the reduction in rates paid on interest-bearing demand deposits.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss its 2024 fourth quarter and fiscal year results, which will be broadcast live over the Internet, on Thursday, January 23, 2025, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate in the call, dial 201-389-0869 and ask for the Third Coast Bancshares, Inc. call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through January 28, 2025, and may be accessed by dialing 201-612-7415 and using passcode 13750591#. Also, an archive of the webcast will be available shortly after the call at https://ir.thirdcoast.bank/events-and-presentations/events/ for 90 days.
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a commercially focused, Texas-based bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 19 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank for more information.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; and changes in key management personnel. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, 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) |
December 31 |
September 30 |
June 30 |
March 31 |
December 31 |
|||||||||||||||
|
ASSETS |
||||||||||||||||||||
|
Cash and cash equivalents: |
||||||||||||||||||||
|
Cash and due from banks |
$ |
371,157 |
$ |
258,191 |
$ |
241,809 |
$ |
367,831 |
$ |
296,926 |
||||||||||
|
Federal funds sold |
50,045 |
12,265 |
12,088 |
130,429 |
114,919 |
|||||||||||||||
|
Total cash and cash equivalents |
421,202 |
270,456 |
253,897 |
498,260 |
411,845 |
|||||||||||||||
|
Interest bearing time deposits in other banks |
356 |
353 |
350 |
- |
- |
|||||||||||||||
|
Investment securities available-for-sale |
384,025 |
292,104 |
286,167 |
246,291 |
178,087 |
|||||||||||||||
|
Loans held for investment |
3,966,425 |
3,889,831 |
3,758,159 |
3,746,178 |
3,638,788 |
|||||||||||||||
|
Less: allowance for credit losses |
(40,304) |
(39,683) |
(38,211) |
(38,140) |
(37,022) |
|||||||||||||||
|
Loans, net |
3,926,121 |
3,850,148 |
3,719,948 |
3,708,038 |
3,601,766 |
|||||||||||||||
|
Accrued interest receivable |
25,820 |
26,111 |
27,518 |
25,769 |
23,120 |
|||||||||||||||
|
Premises and equipment, net |
26,230 |
26,696 |
27,626 |
26,844 |
28,554 |
|||||||||||||||
|
Bank-owned life insurance |
68,341 |
67,679 |
67,030 |
66,443 |
65,861 |
|||||||||||||||
|
Non-marketable securities, at cost |
15,980 |
24,328 |
16,147 |
16,095 |
16,041 |
|||||||||||||||
|
Deferred tax asset, net |
11,445 |
8,654 |
8,972 |
8,712 |
9,227 |
|||||||||||||||
|
Derivative assets |
6,479 |
5,786 |
7,799 |
11,015 |
8,828 |
|||||||||||||||
|
Right-of-use assets - operating leases |
19,863 |
20,397 |
20,944 |
20,729 |
21,439 |
|||||||||||||||
|
Goodwill and other intangible assets |
18,841 |
18,882 |
18,922 |
18,963 |
19,003 |
|||||||||||||||
|
Other assets |
17,743 |
16,176 |
18,799 |
13,244 |
12,303 |
|||||||||||||||
|
Total assets |
$ |
4,942,446 |
$ |
4,627,770 |
$ |
4,474,119 |
$ |
4,660,403 |
$ |
4,396,074 |
||||||||||
|
LIABILITIES |
||||||||||||||||||||
|
Deposits: |
||||||||||||||||||||
|
Noninterest bearing |
$ |
602,082 |
$ |
489,822 |
$ |
464,498 |
$ |
424,019 |
$ |
459,553 |
||||||||||
|
Interest bearing |
3,708,416 |
3,504,616 |
3,391,093 |
3,626,653 |
3,343,595 |
|||||||||||||||
|
Total deposits |
4,310,498 |
3,994,438 |
3,855,591 |
4,050,672 |
3,803,148 |
|||||||||||||||
|
Accrued interest payable |
6,281 |
7,283 |
5,668 |
3,927 |
4,794 |
|||||||||||||||
|
Derivative liabilities |
8,660 |
6,874 |
7,626 |
8,253 |
10,687 |
|||||||||||||||
|
Lease liability - operating leases |
20,900 |
21,412 |
21,919 |
21,647 |
22,280 |
|||||||||||||||
|
Other liabilities |
23,754 |
34,632 |
30,786 |
27,806 |
23,763 |
|||||||||||||||
|
Line of credit - Senior Debt |
30,875 |
31,875 |
36,875 |
43,875 |
38,875 |
|||||||||||||||
|
Note payable - Subordinated Debentures, net |
80,759 |
80,708 |
80,656 |
80,605 |
80,553 |
|||||||||||||||
|
Total liabilities |
4,481,727 |
4,177,222 |
4,039,121 |
4,236,785 |
3,984,100 |
|||||||||||||||
|
SHAREHOLDERS' EQUITY |
||||||||||||||||||||
|
Series A Convertible Non-Cumulative Preferred Stock |
69 |
69 |
69 |
69 |
69 |
|||||||||||||||
|
Series B Convertible Perpetual Preferred Stock |
- |
- |
- |
- |
- |
|||||||||||||||
|
Common stock |
13,848 |
13,746 |
13,744 |
13,731 |
13,683 |
|||||||||||||||
|
Common stock - non-voting |
- |
- |
- |
- |
- |
|||||||||||||||
|
Additional paid-in capital |
321,696 |
320,871 |
320,496 |
320,077 |
319,613 |
|||||||||||||||
|
Retained earnings |
121,697 |
109,160 |
97,583 |
87,971 |
78,775 |
|||||||||||||||
|
Accumulated other comprehensive income |
4,508 |
7,801 |
4,205 |
2,869 |
933 |
|||||||||||||||
|
Treasury stock, at cost |
(1,099) |
(1,099) |
(1,099) |
(1,099) |
(1,099) |
|||||||||||||||
|
Total shareholders' equity |
460,719 |
450,548 |
434,998 |
423,618 |
411,974 |
|||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
4,942,446 |
$ |
4,627,770 |
$ |
4,474,119 |
$ |
4,660,403 |
$ |
4,396,074 |
||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary | |||||||||||||||||||||||||||||
|
Financial Highlights | |||||||||||||||||||||||||||||
|
(unaudited) | |||||||||||||||||||||||||||||
|
Three Months Ended |
Years Ended |
||||||||||||||||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||||||||||||||||
|
(Dollars in thousands, except per share data) |
December |
September |
June 30 |
March |
December |
December |
December |
||||||||||||||||||||||
|
INTEREST INCOME: |
|||||||||||||||||||||||||||||
|
Loans, including fees |
$ |
76,017 |
$ |
75,468 |
$ |
73,103 |
$ |
70,671 |
$ |
70,325 |
$ |
295,259 |
$ |
248,911 |
|||||||||||||||
|
Investment securities available-for-sale |
4,939 |
4,532 |
4,491 |
3,093 |
2,746 |
17,055 |
8,313 |
||||||||||||||||||||||
|
Federal funds sold and other |
4,580 |
2,719 |
3,631 |
5,112 |
3,996 |
16,042 |
9,320 |
||||||||||||||||||||||
|
Total interest income |
85,536 |
82,719 |
81,225 |
78,876 |
77,067 |
328,356 |
266,544 |
||||||||||||||||||||||
|
INTEREST EXPENSE: |
|||||||||||||||||||||||||||||
|
Deposit accounts |
40,233 |
40,407 |
40,410 |
38,698 |
37,671 |
159,748 |
115,044 |
||||||||||||||||||||||
|
FHLB advances and other borrowings |
1,865 |
1,929 |
1,957 |
2,099 |
2,065 |
7,850 |
11,975 |
||||||||||||||||||||||
|
Total interest expense |
42,098 |
42,336 |
42,367 |
40,797 |
39,736 |
167,598 |
127,019 |
||||||||||||||||||||||
|
Net interest income |
43,438 |
40,383 |
38,858 |
38,079 |
37,331 |
160,758 |
139,525 |
||||||||||||||||||||||
|
Provision for credit losses |
1,156 |
1,085 |
1,900 |
1,560 |
1,100 |
5,701 |
6,320 |
||||||||||||||||||||||
|
Net interest income after credit loss expense |
42,282 |
39,298 |
36,958 |
36,519 |
36,231 |
155,057 |
133,205 |
||||||||||||||||||||||
|
NONINTEREST INCOME: |
|||||||||||||||||||||||||||||
|
Service charges and fees |
1,772 |
2,143 |
1,515 |
1,505 |
850 |
6,935 |
3,233 |
||||||||||||||||||||||
|
Earnings on bank-owned life insurance |
662 |
649 |
587 |
582 |
559 |
2,480 |
2,101 |
||||||||||||||||||||||
|
Gain (loss) on sale of investment securities available-for-sale |
196 |
(480) |
123 |
157 |
21 |
(4) |
482 |
||||||||||||||||||||||
|
Gain on sale of SBA loans |
- |
- |
- |
30 |
326 |
30 |
440 |
||||||||||||||||||||||
|
Other |
243 |
205 |
663 |
69 |
401 |
1,180 |
1,949 |
||||||||||||||||||||||
|
Total noninterest income |
2,873 |
2,517 |
2,888 |
2,343 |
2,157 |
10,621 |
8,205 |
||||||||||||||||||||||
|
NONINTEREST EXPENSE: |
|||||||||||||||||||||||||||||
|
Salaries and employee benefits |
17,018 |
15,679 |
15,917 |
16,502 |
16,119 |
65,116 |
62,217 |
||||||||||||||||||||||
|
Occupancy and equipment expense |
3,292 |
3,229 |
3,146 |
3,045 |
2,875 |
12,712 |
11,285 |
||||||||||||||||||||||
|
Legal and professional |
1,587 |
1,037 |
1,621 |
1,385 |
2,305 |
5,630 |
7,783 |
||||||||||||||||||||||
|
Data processing and network expense |
1,182 |
1,608 |
1,046 |
1,418 |
987 |
5,254 |
4,735 |
||||||||||||||||||||||
|
Regulatory assessments |
1,196 |
1,249 |
1,005 |
980 |
942 |
4,430 |
2,598 |
||||||||||||||||||||||
|
Advertising and marketing |
526 |
420 |
406 |
355 |
614 |
1,707 |
2,627 |
||||||||||||||||||||||
|
Software purchases and maintenance |
766 |
854 |
828 |
817 |
839 |
3,265 |
2,375 |
||||||||||||||||||||||
|
Loan operations |
189 |
227 |
262 |
226 |
134 |
904 |
673 |
||||||||||||||||||||||
|
Telephone and communications |
144 |
166 |
141 |
134 |
125 |
585 |
510 |
||||||||||||||||||||||
|
Other |
1,330 |
1,085 |
1,257 |
1,052 |
1,474 |
4,724 |
4,995 |
||||||||||||||||||||||
|
Total noninterest expense |
27,230 |
25,554 |
25,629 |
25,914 |
26,414 |
104,327 |
99,798 |
||||||||||||||||||||||
|
NET INCOME BEFORE INCOME TAX |
17,925 |
16,261 |
14,217 |
12,948 |
11,974 |
61,351 |
41,612 |
||||||||||||||||||||||
|
Income tax expense |
4,192 |
3,486 |
3,421 |
2,581 |
2,285 |
13,680 |
8,211 |
||||||||||||||||||||||
|
NET INCOME |
13,733 |
12,775 |
10,796 |
10,367 |
9,689 |
47,671 |
33,401 |
||||||||||||||||||||||
|
Preferred stock dividends declared |
1,196 |
1,198 |
1,184 |
1,171 |
1,197 |
4,749 |
4,736 |
||||||||||||||||||||||
|
NET INCOME AVAILABLE TO COMMON |
$ |
12,537 |
$ |
11,577 |
$ |
9,612 |
$ |
9,196 |
$ |
8,492 |
$ |
42,922 |
$ |
28,665 |
|||||||||||||||
|
EARNINGS PER COMMON SHARE: |
|||||||||||||||||||||||||||||
|
Basic earnings per share |
$ |
0.92 |
$ |
0.85 |
$ |
0.70 |
$ |
0.68 |
$ |
0.62 |
$ |
3.14 |
$ |
2.11 |
|||||||||||||||
|
Diluted earnings per share |
$ |
0.79 |
$ |
0.74 |
$ |
0.63 |
$ |
0.61 |
$ |
0.57 |
$ |
2.78 |
$ |
1.98 |
|||||||||||||||
|
Third Coast Bancshares, Inc. and Subsidiary | |||||||||||||||||||||||||||||
|
Financial Highlights | |||||||||||||||||||||||||||||
|
(unaudited) | |||||||||||||||||||||||||||||
|
Three Months Ended |
Years Ended |
||||||||||||||||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||||||||||||||||
|
(Dollars in thousands, except share and per share data) |
December |
September |
June 30 |
March 31 |
December |
December |
December |
||||||||||||||||||||||
|
Earnings per share, basic |
$ |
0.92 |
$ |
0.85 |
$ |
0.70 |
$ |
0.68 |
$ |
0.62 |
$ |
3.14 |
$ |
2.11 |
|||||||||||||||
|
Earnings per share, diluted |
$ |
0.79 |
$ |
0.74 |
$ |
0.63 |
$ |
0.61 |
$ |
0.57 |
$ |
2.78 |
$ |
1.98 |
|||||||||||||||
|
Dividends on common stock |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
|||||||||||||||
|
Dividends on Series A Convertible |
$ |
17.25 |
$ |
17.25 |
$ |
17.06 |
$ |
16.88 |
$ |
17.25 |
$ |
68.44 |
$ |
68.25 |
|||||||||||||||
|
Return on average assets (A) |
1.13 |
% |
1.14 |
% |
0.97 |
% |
0.95 |
% |
0.90 |
% |
1.05 |
% |
0.86 |
% |
|||||||||||||||
|
Return on average common equity (A) |
12.66 |
% |
12.12 |
% |
10.53 |
% |
10.44 |
% |
9.86 |
% |
11.48 |
% |
8.66 |
% |
|||||||||||||||
|
Return on average tangible common |
13.29 |
% |
12.76 |
% |
11.10 |
% |
11.03 |
% |
10.44 |
% |
12.09 |
% |
9.19 |
% |
|||||||||||||||
|
Net interest margin (A) (C) |
3.71 |
% |
3.73 |
% |
3.62 |
% |
3.60 |
% |
3.61 |
% |
3.67 |
% |
3.73 |
% |
|||||||||||||||
|
Efficiency ratio (D) |
58.80 |
% |
59.57 |
% |
61.39 |
% |
64.11 |
% |
66.89 |
% |
60.88 |
% |
67.55 |
% |
|||||||||||||||
|
Capital Ratios |
|||||||||||||||||||||||||||||
|
Third Coast Bancshares, Inc. (consolidated): |
|||||||||||||||||||||||||||||
|
Total common equity to total assets |
7.98 |
% |
8.31 |
% |
8.24 |
% |
7.67 |
% |
7.86 |
% |
7.98 |
% |
7.86 |
% |
|||||||||||||||
|
Tangible common equity to tangible |
7.63 |
% |
7.93 |
% |
7.85 |
% |
7.29 |
% |
7.46 |
% |
7.63 |
% |
7.46 |
% |
|||||||||||||||
|
Common equity tier 1 (to risk weighted |
8.41 |
% |
8.38 |
% |
8.29 |
% |
7.97 |
% |
8.06 |
% |
8.41 |
% |
8.06 |
% |
|||||||||||||||
|
Tier 1 capital (to risk weighted assets) |
9.90 |
% |
9.93 |
% |
9.88 |
% |
9.54 |
% |
9.70 |
% |
9.90 |
% |
9.70 |
% |
|||||||||||||||
|
Total capital (to risk weighted assets) |
12.68 |
% |
12.80 |
% |
12.78 |
% |
12.41 |
% |
12.66 |
% |
12.68 |
% |
12.66 |
% |
|||||||||||||||
|
Tier 1 capital (to average assets) |
9.12 |
% |
9.53 |
% |
9.24 |
% |
9.15 |
% |
9.23 |
% |
9.12 |
% |
9.23 |
% |
|||||||||||||||
|
Third Coast Bank: |
|||||||||||||||||||||||||||||
|
Common equity tier 1 (to risk weighted |
12.35 |
% |
12.45 |
% |
12.52 |
% |
12.32 |
% |
12.52 |
% |
12.35 |
% |
12.52 |
% |
|||||||||||||||
|
Tier 1 capital (to risk weighted assets) |
12.35 |
% |
12.45 |
% |
12.52 |
% |
12.32 |
% |
12.52 |
% |
12.35 |
% |
12.52 |
% |
|||||||||||||||
|
Total capital (to risk weighted assets) |
13.29 |
% |
13.42 |
% |
13.49 |
% |
13.28 |
% |
13.49 |
% |
13.29 |
% |
13.49 |
% |
|||||||||||||||
|
Tier 1 capital (to average assets) |
11.37 |
% |
11.95 |
% |
11.71 |
% |
11.81 |
% |
11.91 |
% |
11.37 |
% |
11.91 |
% |
|||||||||||||||
|
Other Data |
|||||||||||||||||||||||||||||
|
Weighted average shares: |
|||||||||||||||||||||||||||||
|
Basic |
13,698,010 |
13,665,400 |
13,657,223 |
13,606,256 |
13,603,149 |
13,656,859 |
13,583,553 |
||||||||||||||||||||||
|
Diluted |
17,394,884 |
17,184,991 |
17,018,680 |
16,936,003 |
16,890,381 |
17,133,845 |
16,877,891 |
||||||||||||||||||||||
|
Period end shares outstanding |
13,769,780 |
13,667,591 |
13,665,505 |
13,652,888 |
13,604,665 |
13,769,780 |
13,604,665 |
||||||||||||||||||||||
|
Book value per share |
$ |
28.65 |
$ |
28.13 |
$ |
26.99 |
$ |
26.18 |
$ |
25.41 |
$ |
28.65 |
$ |
25.41 |
|||||||||||||||
|
Tangible book value per share (B) |
$ |
27.29 |
$ |
26.75 |
$ |
25.60 |
$ |
24.79 |
$ |
24.02 |
$ |
27.29 |
$ |
24.02 |
|||||||||||||||
|
___________ | |
|
(A) |
Interim periods annualized. |
|
(B) |
Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures at the end of this news release. |
|
(C) |
Net interest margin represents net interest income divided by average interest-earning assets. |
|
(D) |
Represents total noninterest expense divided by the sum of net interest income plus noninterest income. Taxes and provision for credit losses are not part of this calculation. |
|
Third Coast Bancshares, Inc. and Subsidiary | ||||||||||||||||||||||||||||||
|
Financial Highlights | ||||||||||||||||||||||||||||||
|
(unaudited) | ||||||||||||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||||||||||
|
December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
||||||||||||||||||||||||||||
|
(Dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||||||||||||
|
Assets |
||||||||||||||||||||||||||||||
|
Interest-earnings assets: |
||||||||||||||||||||||||||||||
|
Loans, gross |
$ |
3,937,405 |
$ |
76,017 |
7.68 % |
$ |
3,801,954 |
$ |
75,468 |
7.90 % |
$ |
3,600,980 |
$ |
70,325 |
7.75 % |
|||||||||||||||
|
Investment securities |
342,474 |
4,939 |
5.74 % |
300,969 |
4,532 |
5.99 % |
203,376 |
2,746 |
5.36 % |
|||||||||||||||||||||
|
Federal funds sold and other |
379,836 |
4,580 |
4.80 % |
209,841 |
2,719 |
5.15 % |
299,165 |
3,996 |
5.30 % |
|||||||||||||||||||||
|
Total interest-earning assets |
4,659,715 |
85,536 |
7.30 % |
4,312,764 |
82,719 |
7.63 % |
4,103,521 |
77,067 |
7.45 % |
|||||||||||||||||||||
|
Less allowance for loan losses |
(39,855) |
(38,425) |
(38,274) |
|||||||||||||||||||||||||||
|
Total interest-earning assets, net of |
4,619,860 |
4,274,339 |
4,065,247 |
|||||||||||||||||||||||||||
|
Noninterest-earning assets |
195,143 |
195,681 |
194,659 |
|||||||||||||||||||||||||||
|
Total assets |
$ |
4,815,003 |
$ |
4,470,020 |
$ |
4,259,906 |
||||||||||||||||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||||||||||
|
Interest-bearing deposits |
$ |
3,692,533 |
$ |
40,233 |
4.33 % |
$ |
3,383,897 |
$ |
40,407 |
4.75 % |
$ |
3,202,462 |
$ |
37,671 |
4.67 % |
|||||||||||||||
|
Note payable and line of credit |
109,294 |
1,708 |
6.22 % |
113,536 |
1,853 |
6.49 % |
118,816 |
2,065 |
6.90 % |
|||||||||||||||||||||
|
FHLB advances |
11,900 |
157 |
5.25 % |
5,757 |
76 |
5.25 % |
— |
— |
— |
|||||||||||||||||||||
|
Total interest-bearing liabilities |
3,813,727 |
42,098 |
4.39 % |
3,503,190 |
42,336 |
4.81 % |
3,321,278 |
39,736 |
4.75 % |
|||||||||||||||||||||
|
Noninterest-bearing deposits |
484,738 |
457,451 |
472,738 |
|||||||||||||||||||||||||||
|
Other liabilities |
56,369 |
63,255 |
57,918 |
|||||||||||||||||||||||||||
|
Total liabilities |
4,354,834 |
4,023,896 |
3,851,934 |
|||||||||||||||||||||||||||
|
Shareholders' equity |
460,169 |
446,124 |
407,972 |
|||||||||||||||||||||||||||
|
Total liabilities and shareholders' |
$ |
4,815,003 |
$ |
4,470,020 |
$ |
4,259,906 |
||||||||||||||||||||||||
|
Net interest income |
$ |
43,438 |
$ |
40,383 |
$ |
37,331 |
||||||||||||||||||||||||
|
Net interest spread (1) |
2.91 % |
2.82 % |
2.70 % |
|||||||||||||||||||||||||||
|
Net interest margin (2) |
3.71 % |
3.73 % |
3.61 % |
|||||||||||||||||||||||||||
|
___________ | |
|
(1) |
Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities. |
|
(2) |
Net interest margin represents net interest income divided by average interest-earning assets. |
|
(3) |
Interest earned/paid includes accretion of deferred loan fees, premiums and discounts. |
|
(4) |
Annualized. |
|
Third Coast Bancshares, Inc. and Subsidiary | ||||||||||||||||||||
|
Financial Highlights | ||||||||||||||||||||
|
(unaudited) | ||||||||||||||||||||
|
Years Ended |
||||||||||||||||||||
|
December 31, 2024 |
December 31, 2023 |
|||||||||||||||||||
|
(Dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
||||||||||||||
|
Assets |
||||||||||||||||||||
|
Interest-earnings assets: |
||||||||||||||||||||
|
Loans, gross |
$ |
3,786,776 |
$ |
295,259 |
7.80 % |
$ |
3,366,180 |
$ |
248,911 |
7.39 % |
||||||||||
|
Investment securities |
286,039 |
17,055 |
5.96 % |
197,286 |
8,313 |
4.21 % |
||||||||||||||
|
Federal funds sold and other interest-earning |
312,590 |
16,042 |
5.13 % |
181,782 |
9,320 |
5.13 % |
||||||||||||||
|
Total interest-earning assets |
4,385,405 |
328,356 |
7.49 % |
3,745,248 |
266,544 |
7.12 % |
||||||||||||||
|
Less allowance for loan losses |
(38,500) |
(36,750) |
||||||||||||||||||
|
Total interest-earning assets, net of allowance |
4,346,905 |
3,708,498 |
||||||||||||||||||
|
Noninterest-earning assets |
194,775 |
188,514 |
||||||||||||||||||
|
Total assets |
$ |
4,541,680 |
$ |
3,897,012 |
||||||||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||
|
Interest-bearing deposits |
$ |
3,459,151 |
$ |
159,748 |
4.62 % |
$ |
2,785,605 |
$ |
115,044 |
4.13 % |
||||||||||
|
Note payable and line of credit |
116,222 |
7,617 |
6.55 % |
113,552 |
7,657 |
6.74 % |
||||||||||||||
|
FHLB advances and other |
4,438 |
233 |
5.25 % |
79,546 |
4,318 |
5.43 % |
||||||||||||||
|
Total interest-bearing liabilities |
3,579,811 |
167,598 |
4.68 % |
2,978,703 |
127,019 |
4.26 % |
||||||||||||||
|
Noninterest-bearing deposits |
460,537 |
473,558 |
||||||||||||||||||
|
Other liabilities |
61,148 |
47,527 |
||||||||||||||||||
|
Total liabilities |
4,101,496 |
3,499,788 |
||||||||||||||||||
|
Shareholders' equity |
440,184 |
397,224 |
||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
4,541,680 |
$ |
3,897,012 |
||||||||||||||||
|
Net interest income |
$ |
160,758 |
$ |
139,525 |
||||||||||||||||
|
Net interest spread (1) |
2.81 % |
2.86 % |
||||||||||||||||||
|
Net interest margin (2) |
3.67 % |
3.73 % |
||||||||||||||||||
|
___________ | |
|
(1) |
Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities. |
|
(2) |
Net interest margin represents net interest income divided by average interest-earning assets. |
|
(3) |
Interest earned/paid includes accretion of deferred loan fees, premiums and discounts. |
|
Third Coast Bancshares, Inc. and Subsidiary | |||||||||||||||||||||
|
Financial Highlights | |||||||||||||||||||||
|
(unaudited) | |||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||
|
2024 |
2023 |
||||||||||||||||||||
|
(Dollars in thousands) |
December |
September |
June 30 |
March 31 |
December 31 |
||||||||||||||||
|
Period-end Loan Portfolio: |
|||||||||||||||||||||
|
Real estate loans: |
|||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||
|
Non-farm non-residential owner occupied |
$ |
448,134 |
$ |
470,222 |
$ |
499,941 |
$ |
510,266 |
$ |
520,822 |
|||||||||||
|
Non-farm non-residential non-owner occupied |
652,119 |
611,617 |
612,268 |
598,311 |
586,626 |
||||||||||||||||
|
Residential |
336,736 |
339,558 |
349,461 |
345,890 |
342,589 |
||||||||||||||||
|
Construction, development & other |
871,373 |
825,302 |
756,646 |
725,176 |
693,553 |
||||||||||||||||
|
Farmland |
30,915 |
35,650 |
31,049 |
29,706 |
30,396 |
||||||||||||||||
|
Commercial & industrial |
1,497,408 |
1,499,302 |
1,361,401 |
1,350,289 |
1,263,077 |
||||||||||||||||
|
Consumer |
1,859 |
2,002 |
2,216 |
2,382 |
2,555 |
||||||||||||||||
|
Municipal and other |
127,881 |
106,178 |
145,177 |
184,158 |
199,170 |
||||||||||||||||
|
Total loans |
$ |
3,966,425 |
$ |
3,889,831 |
$ |
3,758,159 |
$ |
3,746,178 |
$ |
3,638,788 |
|||||||||||
|
Asset Quality: |
|||||||||||||||||||||
|
Nonaccrual loans |
$ |
26,773 |
$ |
23,522 |
$ |
23,910 |
$ |
18,130 |
$ |
16,649 |
|||||||||||
|
Loans > 90 days and still accruing |
1,173 |
522 |
507 |
3,614 |
670 |
||||||||||||||||
|
Total nonperforming loans |
27,946 |
24,044 |
24,417 |
21,744 |
17,319 |
||||||||||||||||
|
Other real estate owned |
862 |
283 |
- |
- |
- |
||||||||||||||||
|
Total nonperforming assets |
$ |
28,808 |
$ |
24,327 |
$ |
24,417 |
$ |
21,744 |
$ |
17,319 |
|||||||||||
|
QTD Net charge-offs (recoveries) |
$ |
879 |
$ |
(57) |
$ |
1,829 |
$ |
742 |
$ |
1,505 |
|||||||||||
|
Nonaccrual loans: |
|||||||||||||||||||||
|
Real estate loans: |
|||||||||||||||||||||
|
Commercial real estate: |
|||||||||||||||||||||
|
Non-farm non-residential owner occupied |
$ |
10,433 |
$ |
9,696 |
$ |
10,051 |
$ |
2,369 |
$ |
1,211 |
|||||||||||
|
Non-farm non-residential non-owner occupied |
- |
68 |
74 |
1,225 |
1,235 |
||||||||||||||||
|
Residential |
2,226 |
2,664 |
2,767 |
2,837 |
2,938 |
||||||||||||||||
|
Construction, development & other |
400 |
1 |
301 |
406 |
247 |
||||||||||||||||
|
Commercial & industrial |
13,714 |
11,093 |
10,717 |
11,293 |
11,018 |
||||||||||||||||
|
Total nonaccrual loans |
$ |
26,773 |
$ |
23,522 |
$ |
23,910 |
$ |
18,130 |
$ |
16,649 |
|||||||||||
|
Asset Quality Ratios: |
|||||||||||||||||||||
|
Nonperforming assets to total assets |
0.58 |
% |
0.53 |
% |
0.55 |
% |
0.47 |
% |
0.39 |
% |
|||||||||||
|
Nonperforming loans to total loans |
0.70 |
% |
0.62 |
% |
0.65 |
% |
0.58 |
% |
0.48 |
% |
|||||||||||
|
Allowance for credit losses to total loans |
1.02 |
% |
1.02 |
% |
1.02 |
% |
1.02 |
% |
1.02 |
% |
|||||||||||
|
QTD Net charge-offs (recoveries) to average loans |
0.09 |
% |
(0.01) |
% |
0.20 |
% |
0.08 |
% |
0.17 |
% |
|||||||||||
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 |
Years Ended |
|||||||||||||||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
|||||||||||||||||||||||||
|
(Dollars in thousands, except share and per share data) |
December |
September |
June 30 |
March 31 |
December |
December |
December |
|||||||||||||||||||||
|
Tangible Common Equity: |
||||||||||||||||||||||||||||
|
Total shareholders' equity |
$ |
460,719 |
$ |
450,548 |
$ |
434,998 |
$ |
423,618 |
$ |
411,974 |
$ |
460,719 |
$ |
411,974 |
||||||||||||||
|
Less: Preferred stock including additional |
66,160 |
66,117 |
66,225 |
66,225 |
66,225 |
66,160 |
66,225 |
|||||||||||||||||||||
|
Total common equity |
394,559 |
384,431 |
368,773 |
357,393 |
345,749 |
394,559 |
345,749 |
|||||||||||||||||||||
|
Less: Goodwill and core deposit intangibles, |
18,841 |
18,882 |
18,922 |
18,963 |
19,003 |
18,841 |
19,003 |
|||||||||||||||||||||
|
Tangible common equity |
$ |
375,718 |
$ |
365,549 |
$ |
349,851 |
$ |
338,430 |
$ |
326,746 |
$ |
375,718 |
$ |
326,746 |
||||||||||||||
|
Common shares outstanding at end of period |
13,769,780 |
13,667,591 |
13,665,505 |
13,652,888 |
13,604,665 |
13,769,780 |
13,604,665 |
|||||||||||||||||||||
|
Book Value Per Share |
$ |
28.65 |
$ |
28.13 |
$ |
26.99 |
$ |
26.18 |
$ |
25.41 |
$ |
28.65 |
$ |
25.41 |
||||||||||||||
|
Tangible Book Value Per Share |
$ |
27.29 |
$ |
26.75 |
$ |
25.60 |
$ |
24.79 |
$ |
24.02 |
$ |
27.29 |
$ |
24.02 |
||||||||||||||
|
Tangible Assets: |
||||||||||||||||||||||||||||
|
Total assets |
$ |
4,942,446 |
$ |
4,627,770 |
$ |
4,474,119 |
$ |
4,660,403 |
$ |
4,396,074 |
$ |
4,942,446 |
$ |
4,396,074 |
||||||||||||||
|
Adjustments: Goodwill and core deposit |
18,841 |
18,882 |
18,922 |
18,963 |
19,003 |
18,841 |
19,003 |
|||||||||||||||||||||
|
Tangible assets |
$ |
4,923,605 |
$ |
4,608,888 |
$ |
4,455,197 |
$ |
4,641,440 |
$ |
4,377,071 |
$ |
4,923,605 |
$ |
4,377,071 |
||||||||||||||
|
Total Common Equity to Total Assets |
7.98 |
% |
8.31 |
% |
8.24 |
% |
7.67 |
% |
7.86 |
% |
7.98 |
% |
7.86 |
% |
||||||||||||||
|
Tangible Common Equity to Tangible Assets |
7.63 |
% |
7.93 |
% |
7.85 |
% |
7.29 |
% |
7.46 |
% |
7.63 |
% |
7.46 |
% |
||||||||||||||
|
Average Tangible Common Equity: |
||||||||||||||||||||||||||||
|
Average shareholders' equity |
$ |
460,169 |
$ |
446,124 |
$ |
433,510 |
$ |
420,646 |
$ |
407,972 |
$ |
440,184 |
$ |
397,224 |
||||||||||||||
|
Less: Average preferred stock including |
66,121 |
66,223 |
66,225 |
66,225 |
66,225 |
66,198 |
66,225 |
|||||||||||||||||||||
|
Average common equity |
394,048 |
379,901 |
367,285 |
354,421 |
341,747 |
373,986 |
330,999 |
|||||||||||||||||||||
|
Less: Average goodwill and core deposit |
18,865 |
18,906 |
18,946 |
18,987 |
19,027 |
18,926 |
19,088 |
|||||||||||||||||||||
|
Average tangible common equity |
$ |
375,183 |
$ |
360,995 |
$ |
348,339 |
$ |
335,434 |
$ |
322,720 |
$ |
355,060 |
$ |
311,911 |
||||||||||||||
|
Net Income |
$ |
13,733 |
$ |
12,775 |
$ |
10,796 |
$ |
10,367 |
$ |
9,689 |
$ |
47,671 |
$ |
33,401 |
||||||||||||||
|
Less: Dividends declared on preferred stock |
1,196 |
1,198 |
1,184 |
1,171 |
1,197 |
4,749 |
4,736 |
|||||||||||||||||||||
|
Net Income Available to Common Shareholders |
$ |
12,537 |
$ |
11,577 |
$ |
9,612 |
$ |
9,196 |
$ |
8,492 |
$ |
42,922 |
$ |
28,665 |
||||||||||||||
|
Return on Average Common Equity(A) |
12.66 |
% |
12.12 |
% |
10.53 |
% |
10.44 |
% |
9.86 |
% |
11.48 |
% |
8.66 |
% |
||||||||||||||
|
Return on Average Tangible Common Equity(A) |
13.29 |
% |
12.76 |
% |
11.10 |
% |
11.03 |
% |
10.44 |
% |
12.09 |
% |
9.19 |
% |
||||||||||||||
|
___________ | |
|
(A) |
Interim periods annualized. |
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-fourth-quarter-and-full-year-financial-results-302357711.html
SOURCE Third Coast Bancshares