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- **Record Earnings Growth**: 39% YoY net income increase to $66.3M, EPS up 36% to $3.79.
- **Strategic Expansion**: Q4 2026 loan growth target of $75-100M, 8% annualized, supported by Texas market and Keystone merger.
- **Profitability Strength**: NIM 4.10%, 55% YoY fee income growth, and 16.8% YoY book value expansion.
- **Credit Resilience**: Nonperforming loans down 21bp YoY, 8bp net charge-offs, and 1% ACL coverage.
- **Merger Impact**: $6B combined entity post-Keystone close, enhancing Texas presence with 22 locations.

**【CEO Opening Remarks】**
- **Record Financial Performance**: Q4 net income of $17.9M, annualized ROE of 14%, and EPS of $1.02 (up 36% YoY). Total assets reached $5.34B, with loans up 10.8% YoY to $4.39B.
- **Revenue Growth Drivers**: Service charges and fees rose 55% YoY, driven by relationship banking. Loan interest income grew 7% YoY, offset by 5.2% interest expense decline.
- **Key Milestones**: Book value of $33.47 (16.8% YoY), ROA of 1.33%, and $17.9M Q4 net income (39% YoY growth).

**【CFO Financial Commentary】**
- **Profitability Highlights**: Annual net income $66.3M (39% YoY), NIM 4.10% (vs. 3.90% core), and $5.3M in one-time loan fees.
- **Balance Sheet Strength**: Deposits up $254M Q4 to $4.6B (7.3% YoY), cost of funds 3.33% (50bp YoY decline). Loan-to-deposit ratio maintained at 95%.
- **Efficiency Metrics**: Operating expenses up 5-7% YoY, offset by 21% YoY net interest income growth.

**【Credit Officer Update】**
- **Asset Quality Improvements**: Nonperforming loans down $6.5M YoY, NPL ratio 0.98% (21bp YoY decline). Net charge-offs 8bp (1bp YoY improvement).
- **Portfolio Diversification**: C&I loans 43%, CRE 26%, with 1% ACL coverage.

**【Q&A Highlights】**
- **Expense Outlook**: $5M merger-related costs expected in 2026, with ongoing hiring for growth support.
- **Loan Growth Targets**: Q4 2026 target $75-100M, annualized 8% growth, driven by Texas expansion and Keystone merger.
- **Margin Dynamics**: Core NIM expected to stabilize at 3.90%, with potential volatility from one-time fee income.
- **Merger Update**: Keystone deal on track to close by end-Q1, creating $6B combined entity with 22 Texas locations.
- **Capital Management**: Preferred convertible instrument to convert to common in 2027, adding 150bp to CET1 ratio.

Third Coast Bancshares, Inc. (TCBX) Q4 2025 Earnings Call Transcript

- **$5B Asset Milestone**: 19.3% CAGR since IPO, record ROA 1.41% and book value $32.25.
- **$6B Merger**: Keystone deal to close Q1 2026, targeting 3.90-3.95% NIM in Q4.
- **Loan Growth**: $50-100M Q4 target, $50M+ October, 8% annualized growth.
- **Credit Strength**: Nonperforming loans down 10 bps Y/Y, diversified portfolio.
- **Strategic Wins**: SCI Risk Sharing award, third securitization planned Q1 2026.
- **Efficiency**: 53.05% ratio, $18.1M net income with stable expenses.

**【CEO Summary Section】**
- Achieved $5 billion in total assets, up 19.3% CAGR since IPO, with record book value of $32.25 and ROA of 1.41%.
- Announced merger with Keystone Bancshares, targeting $6 billion pro forma assets and Q1 2026 close.
- Efficiency ratio improved to 53.05%, driven by $18.1 million net income and stable expenses.
- Loan pipeline strong, with $50 million+ growth in October and $50-100 million Q4 target.
- Securitization wins SCI Risk Sharing award, demonstrating risk management leadership.

**【CFO Financial Commentary】**
- Q3 net income $16.9 million (+8.3% vs. Q2), ROA 1.41%, ROE 15.1%.
- Net interest income up $15 million (3%), driven by $229 million earning asset growth.
- Noninterest expenses flat, with salary up but legal fees down post-securitization.
- Loan growth $158 million QoQ, $50 million+ October, targeting $50-100 million Q4.
- Net interest margin 4.10% Q3, guided to 3.90-3.95% Q4 due to declining loan fees.
- Deposit growth $92 million, loan-to-deposit ratio 95%, cost of funds decline.

**【Credit Quality Review】**
- Nonperforming loans down $2.6 million QoQ, 10 bps improvement vs. 1Y ago.
- Loan portfolio diversified: 43% C&I, 20% construction, 16% non-owner CRE.
- Provisions up 4 bps due to loan growth, net recoveries $17,000.
- Stable credit metrics with disciplined underwriting.

**【Q&A Highlights】**
- **Merger Integration:** Core conversion by Q2 2026, cultural alignment, $19.9M capitalized loan fees.
- **Loan Growth:** $50-100M Q4 target, $50M+ October, cautious on Q4 volatility.
- **EPS Accretion:** Based on consensus, expects material synergies (e.g., branch consolidation, derivative income).
- **Securitization:** Third transaction likely Q1 2026, expanding balance sheet flexibility.
- **Market Position:** Talent magnet attracting top bankers, punching above weight class in Austin market.
- **Rate Sensitivity:** Asset-sensitive with $200M variable securities, deposit cost control.


Third Coast Bancshares, Inc. (TCBX) Q3 2025 Earnings Call Transcript

- **Securitization Success**: 2 deals completed, reducing risk-weighted assets and earning North American transaction awards. Third+ deals may involve selling A1 paper.
- **Financial Strength**: Q2 net income $15.6M (+25% QoQ), ROA 1.38%, NIM 4.22%. Core NIM guided to 3.90-3.95%.
- **Loan Growth**: $91.7M Q2 growth, 8% annualized target. Pipeline robust with C&I as key driver.
- **Credit Quality**: Nonperforming loans -16bps YoY. Disciplined underwriting maintained despite market loosening.
- **Efficiency**: Efficiency ratio 55.45% (vs. 61.39% YoY), capitalized fees at all-time high ($18M).

**【CEO Summary Section】**
- Completed 2 securitization deals in Q2, reducing risk-weighted assets and improving competitive positioning. Nominated for 2025 SCI Risk Sharing Awards.
- Net interest income grew at 21.7% CAGR vs. 10.7% expense growth, driving tangible book value per share to $29.69 (up $8.75 since 2021).
- Q2 loans grew $91.7M, annualized 21.1% since IPO, with ROA improving to 1.38% (top quartile).
- Maintained high credit standards with disciplined underwriting and prudent portfolio management.

**【CFO Financial Commentary】**
- Q2 net income: $15.6M (+25% vs. Q1), ROA 1.38%, ROE 14.7%.
- Net interest income +15.4% QoQ ($6.6M), driven by $2M fee income from securitizations.
- Noninterest expenses +2.6% ($738K), with $500K attributed to securitizations.
- Investment securities +$164M to $562M, yielding 5.63%. AOCI +$10.6M.
- Deposits +$32M, loan-to-deposit ratio 95%. NIM 4.22%, guided to 3.90-3.95% for Q3/Q4.

**【CCO Credit Quality Review】**
- Nonaccrual loans -3.7% QoQ, nonperforming loans +$1.5M but -$4.3M YoY.
- Net charge-offs to loans +20bps QoQ due to $1.7M factoring client write-off.
- Loan portfolio diversified: 42% C&I, 19% construction, 11% owner-occupied CRE, 16% nonowner-occupied CRE.
- Multifamily exposure reduced; no material changes to office/medical office exposure.

**【CEO Forward-Looking Statements】**
- Operational efficiency: Efficiency ratio 55.45% (vs. 61.39% YoY), targeting further improvement.
- Loan growth: $50-100M/Q, 8% annualized, supported by robust pipeline and customer retention.
- NIM preservation: Expecting 2 Fed rate cuts; managing asset/liability mix with variable-rate deposits and swaps.
- Credit quality: Conservative underwriting maintained; no loosening of standards despite macro stabilization.

**【Q&A Highlights】**
- **Securitization Appetite**: 1 likely in Q1'26, possible 1 in Q4'25. Third+ transactions may involve selling A1 paper at par.
- **NIM Guidance**: Core NIM 3.95% excluding securitization impact; $18M capitalized fees (all-time high) provide tailwind.
- **Expense Run Rate**: Flat QoQ at ~$28M, no material increases expected. FIS conversion costs minimal.
- **Capital Deployment**: Prioritize loan growth over buybacks; may buyback if loan growth slows. Texas M&A activity monitored.
- **Credit Standards**: No loosening; maintaining high LTV, DSCR standards despite market loosening. Growth sufficient without compromising quality.


Third Coast Bancshares, Inc. (TCBX) Q2 2025 Earnings Call Transcript

- **Strategic Securitization**: $78M CRE loan securitization improves capital ratios and adds 5 bps to Q2 NIM.
- **NIM Expansion**: 9 bps Q1 improvement to 3.80%, driven by fee income and cost control.
- **Loan Growth Momentum**: $50M+ April loan production, targeting $325M annual growth.
- **Credit Quality**: NPL ratio down to 0.56%, with conservative 60% LTV on office/medical loans.
- **Share Buyback Signal**: Considering repurchases at current price, reflecting confidence in intrinsic value.

**【CEO Opening Remarks】**
- Highlighted strategic priorities: disciplined loan growth, credit management, operational efficiency, and shareholder value.
- Announced a $78 million commercial real estate loan securitization, improving capital ratios and generating fee income.
- Net interest margin (NIM) increased 9 basis points to 3.80% in Q1.
- Book value grew 4.4% Q/Q and 14.3% Y/Y, driven by capital accretion.

**【CFO Financial Review】**
- Q1 net income: $12.4 million (flat vs. Q4 2024).
- NIM improved 9 bps to 3.80%, benefiting from securitization fee income.
- Loan growth: $21.6 million in period-end, $42.5 million in average growth.
- Deposits declined $62 million, leading to a 93.9% loan-to-deposit ratio.
- Noninterest expenses up 3.2% Q/Q, driven by headcount expansion and securitization costs.

**【CRO Credit Quality Update】**
- Nonperforming loans (NPLs) decreased $9.3 million, NPL ratio down 23 bps to 0.56%.
- Loan portfolio diversification: 40% C&amp;I, 21% construction, 16% CRE.
- Conservative underwriting: average LTV of 60% for office/medical office loans.

**【Q&A Key Takeaways】**
- **Securitization Impact**: 5 bps NIM boost in Q2, with ongoing fee income amortization.
- **Loan Growth Outlook**: $325M annual target (8% Y/Y), driven by revolving line utilization and customer migration.
- **Expense Management**: Noninterest expenses expected to stabilize at ~$28M/Q due to payroll tax normalization.
- **Share Buyback**: Considering at current price (~tangible book value), contingent on capital levels.
- **M&A Activity**: No immediate plans, but monitoring opportunities in frozen market.


Third Coast Bancshares (TCBX)-24 Apr 25-2025 Q1 Earnings call transcript

- **Record Q4 Growth**: Net interest income up 16.4% YoY, 14 straight quarters of growth.
- **Efficiency Breakthrough**: 58.8% efficiency ratio vs. 60% target, 1% improvement initiative driving savings.
- **Loan & Deposit Surge**: $327M loan growth (9%), $507M deposits (13.3%), NIBD +$600M.
- **Credit Resilience**: 0.7% NPL ratio, medical office & multi-family loans under 70% LTV.
- **2025 Ambitions**: $325M loan growth, 60%+ efficiency, FIS tech upgrade Q3 2025.

**【CEO Opening Remarks】**
- Q4 2024 net interest income reached $43.4 million, up 16.4% YoY, marking 14 consecutive quarters of growth.
- Full-year loan growth of $327.6 million (9%), deposit growth of $507.4 million (13.3%).
- Efficiency ratio improved to 58.8%, below the 60% target, driven by the 1% improvement initiative.

**【CFO Financial Highlights】**
- Q4 GAAP net income: $12.1 million ($0.85 per share), up 42.7% YoY to $47.7 million annually.
- Net interest margin (NIM) expanded due to 35bp cost of funds decline, offsetting 2bp NIM contraction.
- Non-interest expenses rose 4% YoY to $27 million, driven by hiring and bonus expenses.

**【CCO Credit Quality Update】**
- Non-performing loans (NPL) ratio: 0.7% (up from 0.62% Q3), with $6.7 million new NPLs offset by $1.7 million paydowns.
- Loan portfolio diversification: 38% C&amp;I, 22% construction, 11% owner-occupied CRE, 16% non-owner CRE.
- Medical office and multi-family loans at 1.3% and 3.3% of total, respectively, with LTVs under 70%.

**【CEO 2025 Outlook】**
- Target loan growth: $50-100 million/Q, ~$325 million annually (8% growth).
- Maintain efficiency ratio below 60%, with tech upgrades (FIS core system) expected Q3 2025.
- Deposit strategy: balance seasonal fluctuations with new product launches.

**【Q&A Key Takeaways】**
- Loan yield strength: new loans priced at SOFR +300bp+, offsetting 5bp NIM drag from excess cash.
- Expense growth: ~4% YoY, with savings from tech upgrades expected H2.
- Deposit strategy: focus on non-interest-bearing demand (NIBD) growth (~$10-20 million/Q).
- Fed rate outlook: indifferent to cuts, balance sheet flexibility to capitalize on rate changes.


Third Coast Bancshares, Inc. (TCBX) Q4 2024 Earnings Call Transcript

Third Coast Bancshares (TCBX)-24 Oct 24-2024 Q3 Earnings call transcript

Third Coast Bancshares (TCBX)-25 Jul 24-2024 Q2 Earnings call transcript

Third Coast Bancshares (TCBX)-25 Apr 24-2024 Q1 Earnings call transcript

Third Coast Bancshares (TCBX)-26 Jan 24-2023 Q4 Earnings call transcript

- **Record Asset Growth**: Total assets hit $3.96 billion, up 18% Y/Y, driven by 21% Y/Y loan growth and 17.6% Y/Y deposit growth.
- **Margin Resilience**: Net interest margin improved to 3.82%, with 70 basis points of swap-related protection against rate declines.
- **Expense Discipline**: Non-interest expense up 8% Y/Y but guided to flat for 2023, with $500k+ savings from auto finance exit.
- **Credit Strength**: Non-performing assets at 25 basis points, ACL coverage at 1.12%, and net recoveries of $292k in first half.
- **Strategic Moves**: Exiting low-margin auto finance, partnering with fintechs to grow uninsured deposits, and reallocating $40 million in loans to higher-yield assets.

**【CEO Summary Section】**
- Total assets reached $3.96 billion, up 2.7% Q/Q and 18% Y/Y, driven by loan growth of $121 million (3.8% Q/Q) and deposit growth of $86 million (2.6% Q/Q).
- Net interest margin improved to 3.82%, up 3 basis points Q/Q and 5 basis points Y/Y, due to higher loan yields.
- Tangible book value increased to $22.82 per share, reflecting strong capital position with tangible common equity to tangible assets at 7.88%.
- Management emphasized disciplined growth, expense control, and strategic reallocation of assets (e.g., exiting auto finance division to save $500k+ in expenses).

**【CFO Financial Commentary】**
- Net income available to common shareholders: $7.7 million (Q2 2023) vs. $8.1 million (Q1 2023), with EPS of $0.53 vs. $0.55.
- Non-interest expense: $23.8 million (Q2) vs. $22 million (Q1), guided to $24 million per quarter for remainder of 2023.
- Swap unwind gains: $5 million (Q2 2023) accreted over 5 years, providing 38 basis points of offset to interest expense.
- Available borrowing capacity: $1.7 billion, coverage ratio 1.7:1.

**【Credit Quality Update】**
- Non-performing assets to total assets: 25 basis points (Q2 2023), stable Q/Q and down from 33 basis points (Q2 2022).
- ACL to total loans: 1.12% (Q2 2023) vs. 0.97% (Q2 2022), reflecting CECL methodology adoption.
- Net recoveries: $292k (6 months ended Q2 2023) vs. $21k (6 months ended Q2 2022).

**【Q&A Highlights】**
- **Loan Growth Outlook**: $100-200 million net growth for remainder of 2023, constrained by deposit growth and rate sensitivity.
- **Margin Pressure**: Expect 5 basis points of pressure in Q3 due to lower spread on new loans, offset by balance sheet growth.
- **Swap Impact**: Cumulative swap gains equivalent to 70 basis points of margin protection, with $85k/month accretion from recent unwind.
- **Expense Management**: Auto finance division exit to save $500k+ annually and redeploy $40 million in loans to higher-yielding assets.
- **Deposit Strategy**: Focus on uninsured deposits (30% of total) and partnerships with fintech companies to drive growth.


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