Continued Growth Results in Record EPS of
$0.68 and Diluted EPS of $0.61
HOUSTON,
April 24,
2024 /PRNewswire/ -- Third Coast Bancshares,
Inc. (NASDAQ: TCBX) (the "Company," "Third Coast," "we," "us,"
or "our"), the bank holding company for Third Coast Bank, today
reported its 2024 first quarter financial results.
2024 First Quarter Financial and Operational
Highlights
- Net income for the first quarter of 2024 totaled $10.4 million, or $0.68 and $0.61 per
basic and diluted share, respectively, compared to $9.7 million, or $0.62 and $0.57 per
basic and diluted share, respectively, for the fourth quarter of
2023.
- Total assets increased $264.3
million to a record $4.66
billion as of March 31, 2024,
or 6.0% over the $4.40 billion
reported as of December 31,
2023.
- Gross loans grew $107.4 million
to $3.75 billion as of March 31, 2024, 3.0% more than the $3.64 billion reported as of December 31, 2023.
- Deposits increased $247.5 million
to $4.05 billion as of March 31, 2024, or 6.5% over the $3.80 billion reported as of December 31, 2023.
- Book value per share and tangible book value per
share(1) increased to $26.18 and $24.79,
respectively, as of March 31, 2024,
compared to $25.41 and $24.02, respectively, as of December 31, 2023.
- Opened our 17th location in April 2024 with a de novo branch located
in Austin, 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.
|
"Third Coast's first quarter results delivered
impressive growth across various performance indicators, including
the expansion of our balance sheet, improved profitability, and
increased operational efficiencies, through prudent expense
management," said Bart Caraway,
Chairman, President, and CEO of Third Coast. "Growth in assets,
loans, and deposits represented records for the Company, ending the
quarter at $4.66 billion in total
assets. These results underscore the dedication and hard work of
our team as well as our success in aligning the Company's growth
initiatives with strategic vision and investor objectives."
"As we look ahead, our steadfast focus remains on
steering the Company towards its strategic goals within the context
of the 2024 economic and operational environment. We will continue
to execute on a well-balanced business model by generating strong
asset growth and maintaining solid credit quality, while improving
our efficiency ratio. We have full confidence in the adaptability
and proficiency of our team to navigate challenges and capitalize
on opportunities as we advance through the year. Through a culture
that prioritizes innovation and collaboration, Third Coast is
committed to offering a high-quality product portfolio, pursuing an
excellent customer experience and delivering shareholder value,"
Mr. Caraway concluded.
Operating Results
Net Income and Earnings Per Share
Net income totaled $10.4
million for the first quarter of 2024, compared to
$9.7 million for the fourth quarter
of 2023 and $9.2 million for the
first quarter of 2023. Net income available to common shareholders
totaled $9.2 million for the
first quarter of 2024, compared to $8.5
million for the fourth quarter of 2023 and $8.1 million for the first quarter of 2023. The
quarter-over-quarter increase was primarily due to an increase in
net interest income resulting from higher rates on investments and
other interest earning assets and savings on noninterest expenses
related to the implementation of cost reduction initiatives in
prior quarters. Additionally, the increase in net income was offset
by a slightly higher provision for credit losses for the quarter.
Dividends on our Series A Convertible Non-Cumulative Preferred
Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended
March 31, 2024 and December 31, 2023. Basic and diluted earnings per
share were $0.68 per share and
$0.61 per share, respectively, in the
first quarter of 2024 compared to $0.62 per share and $0.57 per share, respectively, in the fourth
quarter of 2023 and $0.60 per share
and $0.55 per share, respectively, in
the first quarter of 2023.
Net Interest Margin and Net Interest
Income
The net interest margin for the first quarter of
2024 was 3.60%, compared to 3.61% for the fourth quarter of 2023
and 3.79% for the first quarter of 2023. The yield on loans for the
first quarter of 2024 was consistent with the fourth quarter of
2023 at 7.75% and up from 6.90% for the first quarter of 2023.
Net interest income totaled $38.1 million for the first quarter of 2024, an
increase of 2.0% from $37.3 million
for the fourth quarter of 2023 and an increase of 16.0% from
$32.8 million for the first quarter
of 2023. Interest income totaled $78.9
million for the first quarter of 2024, an increase of 2.3%
from $77.1 million for the fourth
quarter of 2023 and an increase of 37.5% from $57.4 million for the first quarter of 2023.
Interest and fees on loans increased $346,000, or 0.5%, compared to the fourth quarter
of 2023, and increased $16.8 million,
or 31.1%, compared to the first quarter of 2023. Interest expense
was $40.8 million for the first
quarter of 2024, an increase of $1.1
million, or 2.7%, from $39.7
million for the fourth quarter of 2023 and an increase of
$16.2 million, or 66.2%, from
$24.5 million for the first quarter
of 2023.
Noninterest Income and Noninterest
Expense
Noninterest income totaled $2.3 million for the first quarter of 2024,
compared to $2.2 million for the
fourth quarter of 2023 and $1.9
million for the first quarter of 2023. The sequential
increase in noninterest income was primarily due to increased fees
from service charges and other fees that were offset by a decrease
in fees from derivative transactions.
Noninterest expense totaled $25.9 million for the first quarter of 2024, down
from $26.4 million for the fourth
quarter of 2023 and up from $22.0
million for the first quarter of 2023. The year-over-year
increase was primarily attributed to increased salary expenses,
investment in new technology and software, increase in regulatory
assessments, increase in data processing expenses related to growth
and new products, increased expenses related to new offices, and
increased other expenses such as franchise taxes, fraud losses, and
deposit related fees.
The efficiency ratio was 64.11% for the first
quarter of 2024, compared to 66.89% for the fourth quarter of 2023
and 63.47% for the first quarter of 2023.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended March 31, 2024, gross loans increased to
$3.75 billion, an increase of
$107.4 million, or 3.0%, from
$3.64 billion as of December 31, 2023, and an increase of
$532.9 million, or 16.6%, from
$3.21 billion as of March 31, 2023. Commercial and industrial and
real estate loans accounted for most of the loan growth for the
first quarter of 2024, with commercial and industrial loans
increasing $87.2 million and real
estate loans increasing $35.4 million
from December 31, 2023. The increases
were offset slightly by a decrease in municipal loans of
$15.0 million from December 31, 2023.
Asset Quality
Nonperforming loans were $21.7 million at March 31,
2024, compared to $17.3
million at December 31, 2023,
and $9.5 million at March 31, 2023. As of March 31, 2024, the nonperforming loans to total
loans ratio was 0.58%, compared to 0.48% as of December 31, 2023, and 0.30% as of March 31, 2023. The net increase in nonaccrual
loans from quarter-to-quarter of $1.5
million was primarily the result of three commercial and
industrial loans and a commercial real estate loan being placed on
nonaccrual totaling $3.0 million. The
increase was partially offset by nonaccrual loan charge-offs of
$549,000 and nonaccrual loan paydowns
of $629,000 during the quarter. The
increase in loans over 90 days and still accruing was primarily the
result of a $2.9 million commercial
real estate loan that matured and was pending renewal at the end of
the quarter.
The provision for credit loss recorded for the
first quarter of 2024 was $1.6
million and related to provisioning for new loans and
commitments. The allowance for credit losses of $38.1 million represented 1.02% of the
$3.75 billion in gross loans
outstanding as of March 31, 2024.
The Company recorded a net charge-off of
$742,000 for the three months ended
March 31, 2024 and a net recovery of
$364,000 for the three months ended
March 31, 2023.
Deposits and Composition
Deposits totaled $4.05
billion as of March 31, 2024,
an increase of 6.5% from $3.80
billion as of December 31, 2023, and an increase of
21.9% from $3.32 billion as of
March 31, 2023. Noninterest-bearing
demand deposits decreased from $459.6
million as of December 31,
2023, to $424.0 million as of
March 31, 2024 and represented 10.5%
of total deposits as of March 31,
2024, compared to 12.1% of total deposits as of December 31, 2023. As of March 31, 2024, interest-bearing demand deposits
increased $242.2 million, or 8.5%,
time deposits increased $25.2
million, or 5.3%, and savings accounts increased
$15.6 million, or 62.6%,
respectively, from December 31,
2023.
The average cost of deposits was 4.09% for the
first quarter of 2024, representing a 2-basis point increase from
the fourth quarter of 2023 and a 117-basis point increase from the
first 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 first quarter results, which will be broadcast
live over the Internet, on Thursday, April
25, 2024, at 11:00 a.m. Eastern
Time / 10:00 a.m. Central
Time. To participate in the call, dial 201-389-0869 and ask
for the Third Coast Bancshares, Inc. call at least 10 minutes prior
to the start time, or access it live over the Internet at
https://ir.thirdcoast.bank/events-and-presentations/events/. For
those who cannot listen to the live call, a replay will be
available through May 2, 2024, and
may be accessed by dialing 201-612-7415 and using passcode
13744292#. 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 17 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)
|
|
March 31
|
|
|
December 31
|
|
|
September 30
|
|
|
June 30
|
|
|
March 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
367,831
|
|
|
$
|
296,926
|
|
|
$
|
142,122
|
|
|
$
|
244,813
|
|
|
$
|
309,153
|
|
Federal funds
sold
|
|
|
130,429
|
|
|
|
114,919
|
|
|
|
144,408
|
|
|
|
23,206
|
|
|
|
1,789
|
|
Total cash and cash
equivalents
|
|
|
498,260
|
|
|
|
411,845
|
|
|
|
286,530
|
|
|
|
268,019
|
|
|
|
310,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
available-for-sale
|
|
|
246,291
|
|
|
|
178,087
|
|
|
|
201,035
|
|
|
|
194,467
|
|
|
|
180,376
|
|
Loans held for
investment
|
|
|
3,746,178
|
|
|
|
3,638,788
|
|
|
|
3,559,953
|
|
|
|
3,334,277
|
|
|
|
3,213,326
|
|
Less: allowance
for credit losses
|
|
|
(38,140)
|
|
|
|
(37,022)
|
|
|
|
(38,067)
|
|
|
|
(37,243)
|
|
|
|
(35,915)
|
|
Loans, net
|
|
|
3,708,038
|
|
|
|
3,601,766
|
|
|
|
3,521,886
|
|
|
|
3,297,034
|
|
|
|
3,177,411
|
|
Accrued interest
receivable
|
|
|
25,769
|
|
|
|
23,120
|
|
|
|
22,821
|
|
|
|
19,579
|
|
|
|
19,026
|
|
Premises and equipment,
net
|
|
|
26,844
|
|
|
|
28,554
|
|
|
|
29,010
|
|
|
|
28,720
|
|
|
|
28,504
|
|
Bank-owned life
insurance
|
|
|
66,443
|
|
|
|
65,861
|
|
|
|
65,303
|
|
|
|
64,762
|
|
|
|
64,235
|
|
Non-marketable
securities, at cost
|
|
|
16,095
|
|
|
|
16,041
|
|
|
|
15,799
|
|
|
|
20,687
|
|
|
|
14,751
|
|
Deferred tax asset,
net
|
|
|
8,712
|
|
|
|
9,227
|
|
|
|
8,335
|
|
|
|
7,808
|
|
|
|
7,146
|
|
Derivative
assets
|
|
|
11,015
|
|
|
|
8,828
|
|
|
|
10,889
|
|
|
|
9,372
|
|
|
|
8,793
|
|
Right-of-use assets -
operating leases
|
|
|
20,729
|
|
|
|
21,439
|
|
|
|
21,192
|
|
|
|
21,778
|
|
|
|
19,328
|
|
Core Deposit
Intangible, net
|
|
|
929
|
|
|
|
969
|
|
|
|
1,009
|
|
|
|
1,050
|
|
|
|
1,090
|
|
Goodwill
|
|
|
18,034
|
|
|
|
18,034
|
|
|
|
18,034
|
|
|
|
18,034
|
|
|
|
18,034
|
|
Other assets
|
|
|
13,244
|
|
|
|
12,303
|
|
|
|
13,949
|
|
|
|
12,172
|
|
|
|
10,021
|
|
Total
assets
|
|
$
|
4,660,403
|
|
|
$
|
4,396,074
|
|
|
$
|
4,215,792
|
|
|
$
|
3,963,482
|
|
|
$
|
3,859,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
|
$
|
424,019
|
|
|
$
|
459,553
|
|
|
$
|
500,187
|
|
|
$
|
529,474
|
|
|
$
|
516,909
|
|
Interest
bearing
|
|
|
3,626,653
|
|
|
|
3,343,595
|
|
|
|
3,146,635
|
|
|
|
2,878,807
|
|
|
|
2,805,624
|
|
Total
deposits
|
|
|
4,050,672
|
|
|
|
3,803,148
|
|
|
|
3,646,822
|
|
|
|
3,408,281
|
|
|
|
3,322,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued interest
payable
|
|
|
3,927
|
|
|
|
4,794
|
|
|
|
4,318
|
|
|
|
3,522
|
|
|
|
1,636
|
|
Derivative
liabilities
|
|
|
8,253
|
|
|
|
10,687
|
|
|
|
10,519
|
|
|
|
9,177
|
|
|
|
7,271
|
|
Lease liability -
operating leases
|
|
|
21,647
|
|
|
|
22,280
|
|
|
|
21,958
|
|
|
|
22,439
|
|
|
|
19,845
|
|
Other
liabilities
|
|
|
27,806
|
|
|
|
23,763
|
|
|
|
15,467
|
|
|
|
12,792
|
|
|
|
10,054
|
|
Line of credit - Senior
Debt
|
|
|
43,875
|
|
|
|
38,875
|
|
|
|
35,875
|
|
|
|
30,875
|
|
|
|
30,875
|
|
Note payable -
Subordinated Debentures, net
|
|
|
80,605
|
|
|
|
80,553
|
|
|
|
80,502
|
|
|
|
80,451
|
|
|
|
80,399
|
|
Total
liabilities
|
|
|
4,236,785
|
|
|
|
3,984,100
|
|
|
|
3,815,461
|
|
|
|
3,567,537
|
|
|
|
3,472,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A Convertible
Non-Cumulative Preferred Stock
|
|
|
69
|
|
|
|
69
|
|
|
|
69
|
|
|
|
69
|
|
|
|
69
|
|
Series B Convertible
Perpetual Preferred Stock
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Common stock
|
|
|
13,731
|
|
|
|
13,683
|
|
|
|
13,679
|
|
|
|
13,688
|
|
|
|
13,658
|
|
Common stock -
non-voting
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
320,077
|
|
|
|
319,613
|
|
|
|
319,134
|
|
|
|
318,769
|
|
|
|
318,350
|
|
Retained
earnings
|
|
|
87,971
|
|
|
|
78,775
|
|
|
|
70,283
|
|
|
|
65,889
|
|
|
|
58,182
|
|
Accumulated other
comprehensive income (loss)
|
|
|
2,869
|
|
|
|
933
|
|
|
|
(1,735)
|
|
|
|
(1,371)
|
|
|
|
(2,116)
|
|
Treasury stock, at
cost
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
Total shareholders'
equity
|
|
|
423,618
|
|
|
|
411,974
|
|
|
|
400,331
|
|
|
|
395,945
|
|
|
|
387,044
|
|
Total liabilities and
shareholders' equity
|
|
$
|
4,660,403
|
|
|
$
|
4,396,074
|
|
|
$
|
4,215,792
|
|
|
$
|
3,963,482
|
|
|
$
|
3,859,657
|
|
Third Coast
Bancshares, Inc. and Subsidiary
Financial
Highlights
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
2024
|
|
|
2023
|
|
|
2023
|
|
|
(Dollars in thousands, except per share
data)
|
|
March 31
|
|
|
December 31
|
|
|
September 30
|
|
|
June 30
|
|
|
March 31
|
|
|
December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
70,671
|
|
|
$
|
70,325
|
|
|
$
|
65,380
|
|
|
$
|
59,295
|
|
|
$
|
53,911
|
|
|
$
|
248,911
|
|
|
Investment securities
available-for-sale
|
|
|
3,093
|
|
|
|
2,746
|
|
|
|
1,990
|
|
|
|
2,029
|
|
|
|
1,548
|
|
|
|
8,313
|
|
|
Federal funds sold and
other
|
|
|
5,112
|
|
|
|
3,996
|
|
|
|
2,015
|
|
|
|
1,389
|
|
|
|
1,920
|
|
|
|
9,320
|
|
|
Total interest
income
|
|
|
78,876
|
|
|
|
77,067
|
|
|
|
69,385
|
|
|
|
62,713
|
|
|
|
57,379
|
|
|
|
266,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
accounts
|
|
|
38,698
|
|
|
|
37,671
|
|
|
|
30,345
|
|
|
|
24,936
|
|
|
|
22,092
|
|
|
|
115,044
|
|
|
FHLB advances and other
borrowings
|
|
|
2,099
|
|
|
|
2,065
|
|
|
|
3,772
|
|
|
|
3,681
|
|
|
|
2,457
|
|
|
|
11,975
|
|
|
Total interest
expense
|
|
|
40,797
|
|
|
|
39,736
|
|
|
|
34,117
|
|
|
|
28,617
|
|
|
|
24,549
|
|
|
|
127,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
38,079
|
|
|
|
37,331
|
|
|
|
35,268
|
|
|
|
34,096
|
|
|
|
32,830
|
|
|
|
139,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
|
1,560
|
|
|
|
1,100
|
|
|
|
2,620
|
|
|
|
1,400
|
|
|
|
1,200
|
|
|
|
6,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
after credit loss expense
|
|
|
36,519
|
|
|
|
36,231
|
|
|
|
32,648
|
|
|
|
32,696
|
|
|
|
31,630
|
|
|
|
133,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
|
1,505
|
|
|
|
850
|
|
|
|
884
|
|
|
|
720
|
|
|
|
779
|
|
|
|
3,233
|
|
|
Earnings on bank-owned
life insurance
|
|
|
582
|
|
|
|
559
|
|
|
|
541
|
|
|
|
526
|
|
|
|
475
|
|
|
|
2,101
|
|
|
Gain on sale of
investment securities available-for-sale
|
|
|
157
|
|
|
|
21
|
|
|
|
364
|
|
|
|
-
|
|
|
|
97
|
|
|
|
482
|
|
|
Gain on sale of SBA
loans
|
|
|
30
|
|
|
|
326
|
|
|
|
114
|
|
|
|
-
|
|
|
|
-
|
|
|
|
440
|
|
|
Derivative
fees
|
|
|
66
|
|
|
|
358
|
|
|
|
159
|
|
|
|
247
|
|
|
|
(1)
|
|
|
|
763
|
|
|
Other
|
|
|
3
|
|
|
|
43
|
|
|
|
(196)
|
|
|
|
787
|
|
|
|
552
|
|
|
|
1,186
|
|
|
Total noninterest
income
|
|
|
2,343
|
|
|
|
2,157
|
|
|
|
1,866
|
|
|
|
2,280
|
|
|
|
1,902
|
|
|
|
8,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
16,502
|
|
|
|
16,119
|
|
|
|
17,353
|
|
|
|
15,033
|
|
|
|
13,712
|
|
|
|
62,217
|
|
|
Occupancy and equipment
expense
|
|
|
3,045
|
|
|
|
2,875
|
|
|
|
2,925
|
|
|
|
2,852
|
|
|
|
2,633
|
|
|
|
11,285
|
|
|
Legal and
professional
|
|
|
1,385
|
|
|
|
2,305
|
|
|
|
2,001
|
|
|
|
1,547
|
|
|
|
1,930
|
|
|
|
7,783
|
|
|
Data processing and
network expense
|
|
|
1,418
|
|
|
|
987
|
|
|
|
1,284
|
|
|
|
1,261
|
|
|
|
1,203
|
|
|
|
4,735
|
|
|
Regulatory
assessments
|
|
|
980
|
|
|
|
942
|
|
|
|
532
|
|
|
|
458
|
|
|
|
666
|
|
|
|
2,598
|
|
|
Advertising and
marketing
|
|
|
355
|
|
|
|
614
|
|
|
|
515
|
|
|
|
812
|
|
|
|
686
|
|
|
|
2,627
|
|
|
Software purchases and
maintenance
|
|
|
817
|
|
|
|
839
|
|
|
|
729
|
|
|
|
455
|
|
|
|
352
|
|
|
|
2,375
|
|
|
Loan
operations
|
|
|
226
|
|
|
|
134
|
|
|
|
272
|
|
|
|
302
|
|
|
|
(35)
|
|
|
|
673
|
|
|
Telephone and
communications
|
|
|
134
|
|
|
|
125
|
|
|
|
117
|
|
|
|
129
|
|
|
|
139
|
|
|
|
510
|
|
|
Other
|
|
|
1,052
|
|
|
|
1,474
|
|
|
|
1,777
|
|
|
|
986
|
|
|
|
758
|
|
|
|
4,995
|
|
|
Total noninterest
expense
|
|
|
25,914
|
|
|
|
26,414
|
|
|
|
27,505
|
|
|
|
23,835
|
|
|
|
22,044
|
|
|
|
99,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME BEFORE
INCOME TAX
EXPENSE
|
|
|
12,948
|
|
|
|
11,974
|
|
|
|
7,009
|
|
|
|
11,141
|
|
|
|
11,488
|
|
|
|
41,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
2,581
|
|
|
|
2,285
|
|
|
|
1,431
|
|
|
|
2,250
|
|
|
|
2,245
|
|
|
|
8,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
10,367
|
|
|
|
9,689
|
|
|
|
5,578
|
|
|
|
8,891
|
|
|
|
9,243
|
|
|
|
33,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends declared
|
|
|
1,171
|
|
|
|
1,197
|
|
|
|
1,184
|
|
|
|
1,184
|
|
|
|
1,171
|
|
|
|
4,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME AVAILABLE TO
COMMON
SHAREHOLDERS
|
|
$
|
9,196
|
|
|
$
|
8,492
|
|
|
$
|
4,394
|
|
|
$
|
7,707
|
|
|
$
|
8,072
|
|
|
$
|
28,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.68
|
|
|
$
|
0.62
|
|
|
$
|
0.32
|
|
|
$
|
0.57
|
|
|
$
|
0.60
|
|
|
$
|
2.11
|
|
|
Diluted earnings per
share
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
|
$
|
0.32
|
|
|
$
|
0.53
|
|
|
$
|
0.55
|
|
|
$
|
1.98
|
|
|
Third Coast
Bancshares, Inc. and Subsidiary
Financial
Highlights
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
2024
|
|
|
2023
|
|
|
2023
|
|
|
(Dollars in thousands, except share and per share
data)
|
|
March 31
|
|
|
December 31
|
|
|
September 30
|
|
|
June 30
|
|
|
March 31
|
|
|
December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
basic
|
|
$
|
0.68
|
|
|
$
|
0.62
|
|
|
$
|
0.32
|
|
|
$
|
0.57
|
|
|
$
|
0.60
|
|
|
$
|
2.11
|
|
|
Earnings per share,
diluted
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
|
$
|
0.32
|
|
|
$
|
0.53
|
|
|
$
|
0.55
|
|
|
$
|
1.98
|
|
|
Dividends on common
stock
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Dividends on Series A
Convertible
Non-Cumulative Preferred
Stock
|
|
$
|
16.88
|
|
|
$
|
17.25
|
|
|
$
|
17.06
|
|
|
$
|
17.06
|
|
|
$
|
16.88
|
|
|
$
|
68.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (A)
|
|
|
0.95
|
%
|
|
|
0.90
|
%
|
|
|
0.56
|
%
|
|
|
0.96
|
%
|
|
|
1.02
|
%
|
|
|
0.86
|
%
|
|
Return on average
common equity (A)
|
|
|
10.44
|
%
|
|
|
9.86
|
%
|
|
|
5.19
|
%
|
|
|
9.44
|
%
|
|
|
10.28
|
%
|
|
|
8.66
|
%
|
|
Return on average
tangible common
equity (A)
(B)
|
|
|
11.03
|
%
|
|
|
10.44
|
%
|
|
|
5.50
|
%
|
|
|
10.02
|
%
|
|
|
10.93
|
%
|
|
|
9.19
|
%
|
|
Net interest margin
(A) (C)
|
|
|
3.60
|
%
|
|
|
3.61
|
%
|
|
|
3.71
|
%
|
|
|
3.82
|
%
|
|
|
3.79
|
%
|
|
|
3.73
|
%
|
|
Efficiency ratio
(D)
|
|
|
64.11
|
%
|
|
|
66.89
|
%
|
|
|
74.07
|
%
|
|
|
65.52
|
%
|
|
|
63.47
|
%
|
|
|
67.55
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Coast Bancshares,
Inc. (consolidated):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common equity to
total assets
|
|
|
7.67
|
%
|
|
|
7.86
|
%
|
|
|
7.93
|
%
|
|
|
8.32
|
%
|
|
|
8.31
|
%
|
|
|
7.86
|
%
|
|
Tangible common equity
to tangible
assets
(B)
|
|
|
7.29
|
%
|
|
|
7.46
|
%
|
|
|
7.51
|
%
|
|
|
7.88
|
%
|
|
|
7.86
|
%
|
|
|
7.46
|
%
|
|
Common equity tier 1
(to risk weighted
assets)
|
|
|
7.97
|
%
|
|
|
8.06
|
%
|
|
|
8.01
|
%
|
|
|
7.75
|
%
|
|
|
7.89
|
%
|
|
|
8.06
|
%
|
|
Tier 1 capital (to risk
weighted assets)
|
|
|
9.54
|
%
|
|
|
9.70
|
%
|
|
|
9.68
|
%
|
|
|
9.39
|
%
|
|
|
9.61
|
%
|
|
|
9.70
|
%
|
|
Total capital (to risk
weighted assets)
|
|
|
12.41
|
%
|
|
|
12.66
|
%
|
|
|
12.72
|
%
|
|
|
12.31
|
%
|
|
|
12.63
|
%
|
|
|
12.66
|
%
|
|
Tier 1 capital (to
average assets)
|
|
|
9.15
|
%
|
|
|
9.23
|
%
|
|
|
9.79
|
%
|
|
|
10.17
|
%
|
|
|
10.14
|
%
|
|
|
9.23
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Coast
Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
(to risk weighted
assets)
|
|
|
12.32
|
%
|
|
|
12.52
|
%
|
|
|
12.48
|
%
|
|
|
12.06
|
%
|
|
|
12.32
|
%
|
|
|
12.52
|
%
|
|
Tier 1 capital (to risk
weighted assets)
|
|
|
12.32
|
%
|
|
|
12.52
|
%
|
|
|
12.48
|
%
|
|
|
12.06
|
%
|
|
|
12.32
|
%
|
|
|
12.52
|
%
|
|
Total capital (to risk
weighted assets)
|
|
|
13.28
|
%
|
|
|
13.49
|
%
|
|
|
13.49
|
%
|
|
|
12.99
|
%
|
|
|
13.25
|
%
|
|
|
13.49
|
%
|
|
Tier 1 capital (to
average assets)
|
|
|
11.81
|
%
|
|
|
11.91
|
%
|
|
|
12.62
|
%
|
|
|
13.06
|
%
|
|
|
13.00
|
%
|
|
|
11.91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
13,606,256
|
|
|
|
13,603,149
|
|
|
|
13,608,718
|
|
|
|
13,588,747
|
|
|
|
13,532,545
|
|
|
|
13,583,553
|
|
|
Diluted
|
|
|
16,936,003
|
|
|
|
16,890,381
|
|
|
|
13,873,187
|
|
|
|
16,855,822
|
|
|
|
16,801,815
|
|
|
|
16,877,891
|
|
|
Period end shares
outstanding
|
|
|
13,652,888
|
|
|
|
13,604,665
|
|
|
|
13,600,211
|
|
|
|
13,609,697
|
|
|
|
13,579,498
|
|
|
|
13,604,665
|
|
|
Book value per
share
|
|
$
|
26.18
|
|
|
$
|
25.41
|
|
|
$
|
24.57
|
|
|
$
|
24.23
|
|
|
$
|
23.63
|
|
|
$
|
25.41
|
|
|
Tangible book value per
share (B)
|
|
$
|
24.79
|
|
|
$
|
24.02
|
|
|
$
|
23.17
|
|
|
$
|
22.82
|
|
|
$
|
22.22
|
|
|
$
|
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 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
|
|
|
March 31, 2024
|
|
December 31, 2023
|
|
March 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
$
|
202,277
|
|
|
$
|
3,093
|
|
|
6.15 %
|
|
$
|
203,376
|
|
|
$
|
2,746
|
|
|
5.36 %
|
|
$
|
178,197
|
|
|
$
|
1,548
|
|
|
3.52 %
|
Loans, gross
|
|
|
3,665,378
|
|
|
|
70,671
|
|
|
7.75 %
|
|
|
3,600,980
|
|
|
|
70,325
|
|
|
7.75 %
|
|
|
3,170,828
|
|
|
|
53,911
|
|
|
6.90 %
|
Federal funds sold and
other
interest-earning
assets
|
|
|
383,929
|
|
|
|
5,112
|
|
|
5.36 %
|
|
|
299,165
|
|
|
|
3,996
|
|
|
5.30 %
|
|
|
167,694
|
|
|
|
1,920
|
|
|
4.64 %
|
Total interest-earning
assets
|
|
|
4,251,584
|
|
|
|
78,876
|
|
|
7.46 %
|
|
|
4,103,521
|
|
|
|
77,067
|
|
|
7.45 %
|
|
|
3,516,719
|
|
|
|
57,379
|
|
|
6.62 %
|
Less allowance for loan
losses
|
|
|
(37,278)
|
|
|
|
|
|
|
|
|
(38,274)
|
|
|
|
|
|
|
|
|
(34,879)
|
|
|
|
|
|
|
Total interest-earning
assets, net of
allowance
|
|
|
4,214,306
|
|
|
|
|
|
|
|
|
4,065,247
|
|
|
|
|
|
|
|
|
3,481,840
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
193,070
|
|
|
|
|
|
|
|
|
194,659
|
|
|
|
|
|
|
|
|
182,869
|
|
|
|
|
|
|
Total
assets
|
|
$
|
4,407,376
|
|
|
|
|
|
|
|
$
|
4,259,906
|
|
|
|
|
|
|
|
$
|
3,664,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
$
|
3,346,847
|
|
|
$
|
38,698
|
|
|
4.65 %
|
|
$
|
3,202,462
|
|
|
$
|
37,671
|
|
|
4.67 %
|
|
$
|
2,595,750
|
|
|
$
|
22,092
|
|
|
3.45 %
|
Note payable and line
of credit
|
|
|
120,884
|
|
|
|
2,099
|
|
|
6.98 %
|
|
|
118,816
|
|
|
|
2,065
|
|
|
6.90 %
|
|
|
111,250
|
|
|
|
1,814
|
|
|
6.61 %
|
FHLB
advances
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,803
|
|
|
|
643
|
|
|
4.94 %
|
Total interest-bearing
liabilities
|
|
|
3,467,731
|
|
|
|
40,797
|
|
|
4.73 %
|
|
|
3,321,278
|
|
|
|
39,736
|
|
|
4.75 %
|
|
|
2,759,803
|
|
|
|
24,549
|
|
|
3.61 %
|
Noninterest-bearing
deposits
|
|
|
457,054
|
|
|
|
|
|
|
|
|
472,738
|
|
|
|
|
|
|
|
|
477,706
|
|
|
|
|
|
|
Other
liabilities
|
|
|
61,945
|
|
|
|
|
|
|
|
|
57,918
|
|
|
|
|
|
|
|
|
42,406
|
|
|
|
|
|
|
Total
liabilities
|
|
|
3,986,730
|
|
|
|
|
|
|
|
|
3,851,934
|
|
|
|
|
|
|
|
|
3,279,915
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
420,646
|
|
|
|
|
|
|
|
|
407,972
|
|
|
|
|
|
|
|
|
384,794
|
|
|
|
|
|
|
Total liabilities and
shareholders'
equity
|
|
$
|
4,407,376
|
|
|
|
|
|
|
|
$
|
4,259,906
|
|
|
|
|
|
|
|
$
|
3,664,709
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
38,079
|
|
|
|
|
|
|
|
$
|
37,331
|
|
|
|
|
|
|
|
$
|
32,830
|
|
|
|
Net interest spread
(1)
|
|
|
|
|
|
|
|
2.73 %
|
|
|
|
|
|
|
|
2.70 %
|
|
|
|
|
|
|
|
3.01 %
|
Net interest margin
(2)
|
|
|
|
|
|
|
|
3.60 %
|
|
|
|
|
|
|
|
3.61 %
|
|
|
|
|
|
|
|
3.79 %
|
___________
(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)
|
|
March 31
|
|
|
December 31
|
|
|
September 30
|
|
|
June 30
|
|
|
March 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end Loan Portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-farm
non-residential owner occupied
|
|
$
|
510,266
|
|
|
$
|
520,822
|
|
|
$
|
517,917
|
|
|
$
|
513,934
|
|
|
$
|
508,936
|
|
|
Non-farm
non-residential non-owner occupied
|
|
|
598,311
|
|
|
|
586,626
|
|
|
|
566,973
|
|
|
|
547,120
|
|
|
|
511,546
|
|
|
Residential
|
|
|
345,890
|
|
|
|
342,589
|
|
|
|
326,354
|
|
|
|
310,842
|
|
|
|
286,358
|
|
|
Construction,
development & other
|
|
|
725,176
|
|
|
|
693,553
|
|
|
|
655,822
|
|
|
|
595,601
|
|
|
|
627,143
|
|
|
Farmland
|
|
|
29,706
|
|
|
|
30,396
|
|
|
|
30,646
|
|
|
|
24,219
|
|
|
|
22,512
|
|
|
Commercial &
industrial
|
|
|
1,350,289
|
|
|
|
1,263,077
|
|
|
|
1,288,320
|
|
|
|
1,164,624
|
|
|
|
1,112,638
|
|
|
Consumer
|
|
|
2,382
|
|
|
|
2,555
|
|
|
|
2,665
|
|
|
|
2,891
|
|
|
|
3,280
|
|
|
Municipal and
other
|
|
|
184,158
|
|
|
|
199,170
|
|
|
|
171,256
|
|
|
|
175,046
|
|
|
|
140,913
|
|
|
Total loans
|
|
$
|
3,746,178
|
|
|
$
|
3,638,788
|
|
|
$
|
3,559,953
|
|
|
$
|
3,334,277
|
|
|
$
|
3,213,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
18,130
|
|
|
$
|
16,649
|
|
|
$
|
13,963
|
|
|
$
|
9,968
|
|
|
$
|
9,482
|
|
|
Loans > 90 days and
still accruing
|
|
|
3,614
|
|
|
|
670
|
|
|
|
2,442
|
|
|
|
-
|
|
|
|
-
|
|
|
Total nonperforming
loans
|
|
|
21,744
|
|
|
|
17,319
|
|
|
|
16,405
|
|
|
|
9,968
|
|
|
|
9,482
|
|
|
Other real estate
owned
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Total nonperforming
assets
|
|
$
|
21,744
|
|
|
$
|
17,319
|
|
|
$
|
16,405
|
|
|
$
|
9,968
|
|
|
$
|
9,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QTD Net charge-offs
(recoveries)
|
|
$
|
742
|
|
|
$
|
1,505
|
|
|
$
|
24
|
|
|
$
|
72
|
|
|
$
|
(364)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-farm
non-residential owner occupied
|
|
$
|
2,369
|
|
|
$
|
1,211
|
|
|
$
|
978
|
|
|
$
|
832
|
|
|
$
|
855
|
|
|
Non-farm
non-residential non-owner occupied
|
|
|
1,225
|
|
|
|
1,235
|
|
|
|
1,235
|
|
|
|
1,417
|
|
|
|
282
|
|
|
Residential
|
|
|
2,837
|
|
|
|
2,938
|
|
|
|
3,058
|
|
|
|
494
|
|
|
|
506
|
|
|
Construction,
development & other
|
|
|
406
|
|
|
|
247
|
|
|
|
567
|
|
|
|
36
|
|
|
|
39
|
|
|
Commercial &
industrial
|
|
|
11,293
|
|
|
|
11,018
|
|
|
|
8,125
|
|
|
|
7,189
|
|
|
|
7,800
|
|
|
Total nonaccrual
loans
|
|
$
|
18,130
|
|
|
$
|
16,649
|
|
|
$
|
13,963
|
|
|
$
|
9,968
|
|
|
$
|
9,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
total assets
|
|
|
0.47
|
%
|
|
|
0.39
|
%
|
|
|
0.39
|
%
|
|
|
0.25
|
%
|
|
|
0.25
|
%
|
|
Nonperforming loans to
total loans
|
|
|
0.58
|
%
|
|
|
0.48
|
%
|
|
|
0.46
|
%
|
|
|
0.30
|
%
|
|
|
0.30
|
%
|
|
Allowance for credit
losses to total loans
|
|
|
1.02
|
%
|
|
|
1.02
|
%
|
|
|
1.07
|
%
|
|
|
1.12
|
%
|
|
|
1.12
|
%
|
|
QTD Net charge-offs
(recoveries) to average loans
(annualized)
|
|
|
0.08
|
%
|
|
|
0.17
|
%
|
|
|
0.00
|
%
|
|
|
0.01
|
%
|
|
|
(0.05)
|
%
|
|
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
|
|
|
Year Ended
|
|
|
|
2024
|
|
|
2023
|
|
|
2023
|
|
(Dollars in thousands, except share and per share
data)
|
|
March 31
|
|
|
December 31
|
|
|
September 30
|
|
|
June 30
|
|
|
March 31
|
|
|
December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
$
|
423,618
|
|
|
$
|
411,974
|
|
|
$
|
400,331
|
|
|
$
|
395,945
|
|
|
$
|
387,044
|
|
|
$
|
411,974
|
|
Less: Preferred
stock including additional
paid in
capital
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
Total common
equity
|
|
|
357,393
|
|
|
|
345,749
|
|
|
|
334,106
|
|
|
|
329,720
|
|
|
|
320,819
|
|
|
|
345,749
|
|
Less: Goodwill
and core deposit intangibles,
net
|
|
|
18,963
|
|
|
|
19,003
|
|
|
|
19,043
|
|
|
|
19,084
|
|
|
|
19,124
|
|
|
|
19,003
|
|
Tangible common equity
|
|
$
|
338,430
|
|
|
$
|
326,746
|
|
|
$
|
315,063
|
|
|
$
|
310,636
|
|
|
$
|
301,695
|
|
|
$
|
326,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at end of period
|
|
|
13,652,888
|
|
|
|
13,604,665
|
|
|
|
13,600,211
|
|
|
|
13,609,697
|
|
|
|
13,579,498
|
|
|
|
13,604,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value Per
Share
|
|
$
|
26.18
|
|
|
$
|
25.41
|
|
|
$
|
24.57
|
|
|
$
|
24.23
|
|
|
$
|
23.63
|
|
|
$
|
25.41
|
|
Tangible Book Value Per Share
|
|
$
|
24.79
|
|
|
$
|
24.02
|
|
|
$
|
23.17
|
|
|
$
|
22.82
|
|
|
$
|
22.22
|
|
|
$
|
24.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
4,660,403
|
|
|
$
|
4,396,074
|
|
|
$
|
4,215,792
|
|
|
$
|
3,963,482
|
|
|
$
|
3,859,657
|
|
|
$
|
4,396,074
|
|
Adjustments:
Goodwill and core deposit
intangibles,
net
|
|
|
18,963
|
|
|
|
19,003
|
|
|
|
19,043
|
|
|
|
19,084
|
|
|
|
19,124
|
|
|
|
19,003
|
|
Tangible
assets
|
|
$
|
4,641,440
|
|
|
$
|
4,377,071
|
|
|
$
|
4,196,749
|
|
|
$
|
3,944,398
|
|
|
$
|
3,840,533
|
|
|
$
|
4,377,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Equity to
Total Assets
|
|
|
7.67
|
%
|
|
|
7.86
|
%
|
|
|
7.93
|
%
|
|
|
8.32
|
%
|
|
|
8.31
|
%
|
|
|
7.86
|
%
|
Tangible Common Equity to Tangible
Assets
|
|
|
7.29
|
%
|
|
|
7.46
|
%
|
|
|
7.51
|
%
|
|
|
7.88
|
%
|
|
|
7.86
|
%
|
|
|
7.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Tangible Common Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
$
|
420,646
|
|
|
$
|
407,972
|
|
|
$
|
402,049
|
|
|
$
|
393,773
|
|
|
$
|
384,794
|
|
|
$
|
397,224
|
|
Less: Average
preferred stock including
additional paid in
capital
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
Average common
equity
|
|
|
354,421
|
|
|
|
341,747
|
|
|
|
335,824
|
|
|
|
327,548
|
|
|
|
318,569
|
|
|
|
330,999
|
|
Less: Average
goodwill and core deposit
intangibles,
net
|
|
|
18,987
|
|
|
|
19,027
|
|
|
|
19,068
|
|
|
|
19,108
|
|
|
|
19,149
|
|
|
|
19,088
|
|
Average tangible common
equity
|
|
$
|
335,434
|
|
|
$
|
322,720
|
|
|
$
|
316,756
|
|
|
$
|
308,440
|
|
|
$
|
299,420
|
|
|
$
|
311,911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
10,367
|
|
|
$
|
9,689
|
|
|
$
|
5,578
|
|
|
$
|
8,891
|
|
|
$
|
9,243
|
|
|
$
|
33,401
|
|
Less: Dividends
declared on preferred stock
|
|
|
1,171
|
|
|
|
1,197
|
|
|
|
1,184
|
|
|
|
1,184
|
|
|
|
1,171
|
|
|
|
4,736
|
|
Net Income Available to
Common Shareholders
|
|
$
|
9,196
|
|
|
$
|
8,492
|
|
|
$
|
4,394
|
|
|
$
|
7,707
|
|
|
$
|
8,072
|
|
|
$
|
28,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Common Equity(A)
|
|
|
10.44
|
%
|
|
|
9.86
|
%
|
|
|
5.19
|
%
|
|
|
9.44
|
%
|
|
|
10.28
|
%
|
|
|
8.66
|
%
|
Return on Average Tangible Common
Equity(A)
|
|
|
11.03
|
%
|
|
|
10.44
|
%
|
|
|
5.50
|
%
|
|
|
10.02
|
%
|
|
|
10.93
|
%
|
|
|
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-first-quarter-financial-results-302126511.html
SOURCE Third Coast Bancshares