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- **$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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TCBX

TCBX fundamentals

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