What is Third Coast's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Third Coast year over year?

What is the market's earnings forecast for Third Coast next quarter?

What factors drove the changes in Third Coast's revenue and profit?

Did Third Coast beat or miss consensus estimates last quarter?

What does Third Coast do and what are its main business segments?

What is Third Coast's gross profit margin?

What were the key takeaways from Third Coast's earnings call?

- **$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.


TCBX

TCBX fundamentals

Earnings Call

You can ask Aime