Total loans grow $225.7 million to $3.56
billion
Book Value grows 1.4% and Tangible Book
Value(1) grows 1.5%
HOUSTON, Oct. 25,
2023 /PRNewswire/ -- Third Coast Bancshares, Inc.
(NASDAQ: TCBX) (the "Company," "Third Coast," "we," "us," or
"our"), the bank holding company for Third Coast Bank, SSB, today
reported its 2023 third quarter financial results.
Third Quarter Financial and Operational Highlights
- Total assets reached $4.22
billion, an increase of $252.3
million, or 6.4%, over the $3.96
billion reported as of June 30,
2023, and 19.9% over the $3.52
billion reported as of September 30,
2022.
- Loans held for investment grew $225.7
million to $3.56 billion, or
6.8%, over the $3.33 billion reported
as of June 30, 2023, and 19.7% over
the $2.97 billion reported as of
September 30, 2022.
- Deposits reached $3.65 billion,
an increase of $238.5 million, or
7.0%, over the $3.41 billion reported
as of June 30, 2023, and 22.2% over
the $2.98 billion reported as of
September 30, 2022.
- Book value per share and tangible book value per
share(1) increased to $24.57 and $23.17,
respectively, as of September 30,
2023, compared to $24.23 and
$22.82, respectively, as of
June 30, 2023 and to $22.93 and $21.51,
respectively, as of September 30,
2022.
- Implemented a cost reduction plan to proactively align with
current market demands.
Bart Caraway, Chairman,
President, and CEO of Third Coast, stated, "Third quarter growth
was impressive with sequential and year over year increases in
total assets, loans, and deposits. Book value per share growth
continued at 1.4% and tangible book value per share growth
continued at 1.5%, demonstrating a positive sign to investors and
the overall financial health of the Company.
"To better align with current market conditions, we recently
took some deliberate actions to reduce our operating expenses and
other overhead costs. This included the previously announced
winding down of our auto-finance division and a 5% reduction in
workforce. Combined, this should allow us to immediately
re-position Third Coast for continued growth over the next several
quarters.
"Looking ahead, we expect to maintain our strong asset quality
metrics, and we continue to be laser focused on credit quality
across all lending verticals. Our ability to remain well
capitalized despite market fluctuations is a testament to our
dedication to our customers and shareholders. We believe our
above–average industry performance and strong asset portfolio
position us to perform in any economic environment, invest in
strategic initiatives, and drive shareholder returns over the long
term," Caraway concluded.
Operating Results
Net Income and Earnings Per Share
Net income totaled $5.6 million
for the third quarter of 2023, compared to $8.9 million for the second quarter of 2023 and
$6.8 million for the third quarter of
2022. Net income available to common shareholders totaled
$4.4 million for the third quarter of
2023, compared to $7.7 million for
the second quarter of 2023 and $6.8
million for the third quarter of 2022. The
quarter-over-quarter decrease was primarily due to higher provision
for credit losses of $1.2 million,
higher salary expense which included $460,000 in severance costs, and $400,000 in fraud losses.
Dividends on our Series A Convertible Non-Cumulative
Preferred Stock totaled $1.2 million
for each of the quarters ended September 30,
2023 and June 30, 2023. Basic
earnings per share and diluted earnings per share were each
$0.32 per share in the third quarter
of 2023 compared to $0.57 per share
and $0.53 per share, respectively, in
the second quarter of 2023 and $0.50
per share and $0.49 per share,
respectively, in the third quarter of 2022.
Net Interest Margin and Net Interest Income
The net interest margin for the third quarter of 2023 was 3.71%
compared to 3.82% for the second quarter of 2023 and 3.77% for the
third quarter of 2022. The yield on loans for the third quarter of
2023 was 7.57% compared to 7.29% for the second quarter of 2023 and
5.59% for the third quarter of 2022. The increase in yield on loans
during the third quarter of 2023 was primarily due to the increase
in the Prime Rate.
Net interest income totaled $35.3
million for the third quarter of 2023, an increase of 3.4%
from $34.1 million for the
second quarter of 2023 and an increase of 12.5% from $31.4 million for the third quarter of 2022.
Interest income totaled $69.4 million
for the third quarter of 2023, an increase of 10.6% from
$62.7 million for the second quarter
of 2023 and an increase of 61.0 % from $43.1
million for the third quarter of 2022. Interest and fees on
loans increased $6.1 million, or
10.3%, compared to the second quarter of 2023, and increased
$24.9 million, or 61.4%, from the
third quarter of 2022. Interest expense was $34.1 million for the third quarter of 2023, an
increase of $5.5 million, or 19.2%,
from $28.6 million for the second
quarter of 2023 and an increase of $22.4
million, or 190.4%, from $11.7
million for the third quarter of 2022.
Noninterest Income and Noninterest Expense
Noninterest income totaled $1.9
million for the third quarter of 2023, compared to
$2.3 million for the second quarter
of 2023 and $2.5 million for the
third quarter of 2022. The decrease in noninterest income from the
second quarter of 2023 was primarily due to the decrease in Small
Business Investment Company income.
Noninterest expense totaled $27.5
million for the third quarter of 2023, up from $23.8 million for the second quarter of 2023 and
up from $22.7 million for the third
quarter of 2022. The year-over-year increase was primarily
attributed to increased salary expenses related to additional
employees during the nine months ended September 30, 2023, and administrative expenses
related to opening new branches and administrative offices.
The efficiency ratio was 74.07% for the third quarter of 2023,
compared to 65.52% for the second quarter of 2023 and 67.06% for
the third quarter of 2022.
Balance Sheet Highlights
Loan Portfolio and Composition
For the quarter ended September 30, 2023, gross loans
increased to $3.56 billion, an
increase of $225.7 million, or 6.8%,
from $3.33 billion as of
June 30, 2023, and an increase of $587.1 million, or 19.7%, from $2.97 billion as of September 30, 2022. We
believe the loan growth was well diversified with real estate loans
up $106.0 million and commercial
loans up $123.7 million from
June 30, 2023.
Asset Quality
Non-performing loans were $16.4
million at September 30, 2023, compared to $10.0 million at June 30, 2023, and
$10.3 million at September 30,
2022. The increase in non-performing loans was primarily due to the
placement of a $2.3 million loan on
nonaccrual and a $2.0 million loan
that is over 90 days matured and still accruing. Both of these
loans are well secured, and no losses are anticipated. In
October 2023, the $2.0 million loan was renewed and is current. The
remaining loans placed on nonaccrual this quarter consist of two
relationships totaling $2.0 million,
and minimal losses are expected as these loans are worked out. The
remaining loans that are over 90 days past due at quarter end are
well secured and in the process of renewal.
The provision for credit loss recorded for the third quarter of
2023 was $2.6 million and related to
provisioning for new loans and commitments. The allowance for
credit losses increased to $38.1
million, or 1.07% of the $3.56
billion in gross loans outstanding as of September 30,
2023.
As of September 30, 2023, the nonperforming loans to loans
held for investment ratio was 0.46%, compared to 0.30% as of
June 30, 2023, and 0.35% as of September 30, 2022. During
the three months ended September 30, 2023, and 2022, the
Company recorded net charge-offs of $24,000 and $457,000, respectively.
Deposits and Composition
Deposits totaled $3.65 billion as
of September 30, 2023, an increase of 7.0% from $3.41 billion as of June 30, 2023, and an
increase of 22.2% from $2.98 billion
as of September 30, 2022. Noninterest-bearing demand deposits
decreased from $529.5 million as of
June 30, 2023, to $500.2 million
as of September 30, 2023. Noninterest-bearing demand deposits
represented 13.7% of total deposits as of September 30, 2023,
compared to 15.5% of total deposits as of June 30, 2023. As of
September 30, 2023, interest-bearing demand deposits increased
$165.8 million, or 7.1%, time
deposits increased $102.8 million, or
20.5%, and savings accounts decreased $822,000, or 3.1%, from June 30, 2023.
The average cost of deposits was 3.73% for the third quarter of
2023, representing a 45-basis point increase from the second
quarter of 2023 and a 242-basis point increase from the third
quarter of 2022 due primarily to time deposit growth,
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 2023
third quarter results, which will be broadcast live over the
Internet, on Thursday, October 26,
2023, 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.tcbssb.com/events-and-presentations/events. For those
who cannot listen to the live call, a replay will be available
through November 3, 2023, and may be
accessed by dialing 201-612-7415 and using passcode 13735410#.
Also, an archive of the webcast will be available shortly after the
call at https://ir.tcbssb.com/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, SSB. Founded
in 2008 in Humble, Texas, Third
Coast Bank, SSB conducts banking operations through 16 branches and
one loan production office encompassing the four largest
metropolitan areas in Texas.
Please visit https://www.tcbssb.com 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; 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, 2022 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.
(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
Bancshares, Inc. and Subsidiary
Financial
Highlights
(unaudited)
|
|
|
|
2023
|
|
|
2022
|
|
(Dollars in
thousands)
|
|
September
30
|
|
|
June
30
|
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
142,122
|
|
|
$
|
244,813
|
|
|
$
|
309,153
|
|
|
$
|
329,864
|
|
|
$
|
216,623
|
|
Federal funds
sold
|
|
|
144,408
|
|
|
|
23,206
|
|
|
|
1,789
|
|
|
|
2,150
|
|
|
|
1,225
|
|
Total cash and cash
equivalents
|
|
|
286,530
|
|
|
|
268,019
|
|
|
|
310,942
|
|
|
|
332,014
|
|
|
|
217,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing time
deposits in other banks
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
132
|
|
Investment securities
available-for-sale
|
|
|
201,035
|
|
|
|
194,467
|
|
|
|
180,376
|
|
|
|
176,067
|
|
|
|
160,437
|
|
Loans held for
investment
|
|
|
3,559,953
|
|
|
|
3,334,277
|
|
|
|
3,213,326
|
|
|
|
3,107,551
|
|
|
|
2,972,852
|
|
Less: allowance
for credit losses
|
|
|
(38,067)
|
|
|
|
(37,243)
|
|
|
|
(35,915)
|
|
|
|
(30,351)
|
|
|
|
(29,109)
|
|
Loans, net
|
|
|
3,521,886
|
|
|
|
3,297,034
|
|
|
|
3,177,411
|
|
|
|
3,077,200
|
|
|
|
2,943,743
|
|
Accrued interest
receivable
|
|
|
22,821
|
|
|
|
19,579
|
|
|
|
19,026
|
|
|
|
18,340
|
|
|
|
16,246
|
|
Premises and equipment,
net
|
|
|
29,010
|
|
|
|
28,720
|
|
|
|
28,504
|
|
|
|
28,662
|
|
|
|
25,449
|
|
Bank-owned life
insurance
|
|
|
65,303
|
|
|
|
64,762
|
|
|
|
64,235
|
|
|
|
60,761
|
|
|
|
60,263
|
|
Non-marketable
securities, at cost
|
|
|
15,799
|
|
|
|
20,687
|
|
|
|
14,751
|
|
|
|
14,618
|
|
|
|
27,136
|
|
Deferred tax asset,
net
|
|
|
8,335
|
|
|
|
7,808
|
|
|
|
7,146
|
|
|
|
6,303
|
|
|
|
8,097
|
|
Fair value hedge
assets
|
|
|
10,889
|
|
|
|
9,372
|
|
|
|
8,793
|
|
|
|
9,213
|
|
|
|
11,508
|
|
Right-of-use assets -
operating leases
|
|
|
21,192
|
|
|
|
21,778
|
|
|
|
19,328
|
|
|
|
17,872
|
|
|
|
18,266
|
|
Core Deposit
Intangible, net
|
|
|
1,009
|
|
|
|
1,050
|
|
|
|
1,090
|
|
|
|
1,131
|
|
|
|
1,171
|
|
Goodwill
|
|
|
18,034
|
|
|
|
18,034
|
|
|
|
18,034
|
|
|
|
18,034
|
|
|
|
18,034
|
|
Other assets
|
|
|
13,949
|
|
|
|
12,172
|
|
|
|
10,021
|
|
|
|
12,933
|
|
|
|
8,515
|
|
Total
assets
|
|
$
|
4,215,792
|
|
|
$
|
3,963,482
|
|
|
$
|
3,859,657
|
|
|
$
|
3,773,148
|
|
|
$
|
3,516,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
|
$
|
500,187
|
|
|
$
|
529,474
|
|
|
$
|
516,909
|
|
|
$
|
486,114
|
|
|
$
|
517,265
|
|
Interest
bearing
|
|
|
3,146,635
|
|
|
|
2,878,807
|
|
|
|
2,805,624
|
|
|
|
2,750,032
|
|
|
|
2,467,049
|
|
Total
deposits
|
|
|
3,646,822
|
|
|
|
3,408,281
|
|
|
|
3,322,533
|
|
|
|
3,236,146
|
|
|
|
2,984,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued interest
payable
|
|
|
4,318
|
|
|
|
3,522
|
|
|
|
1,636
|
|
|
|
2,545
|
|
|
|
2,925
|
|
Fair value hedge
liabilities
|
|
|
10,519
|
|
|
|
9,177
|
|
|
|
7,271
|
|
|
|
9,221
|
|
|
|
11,514
|
|
Lease liability -
operating leases
|
|
|
21,958
|
|
|
|
22,439
|
|
|
|
19,845
|
|
|
|
18,209
|
|
|
|
18,407
|
|
Other
liabilities
|
|
|
15,467
|
|
|
|
12,792
|
|
|
|
10,054
|
|
|
|
14,024
|
|
|
|
12,158
|
|
Line of credit - Senior
Debt
|
|
|
35,875
|
|
|
|
30,875
|
|
|
|
30,875
|
|
|
|
30,875
|
|
|
|
30,875
|
|
Note payable -
Subordinated Debentures, net
|
|
|
80,502
|
|
|
|
80,451
|
|
|
|
80,399
|
|
|
|
80,348
|
|
|
|
80,298
|
|
Total
liabilities
|
|
|
3,815,461
|
|
|
|
3,567,537
|
|
|
|
3,472,613
|
|
|
|
3,391,368
|
|
|
|
3,140,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A Convertible
Non-Cumulative Preferred Stock
|
|
|
69
|
|
|
|
69
|
|
|
|
69
|
|
|
|
69
|
|
|
|
69
|
|
Series B Convertible
Perpetual Preferred Stock
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Common stock
|
|
|
13,679
|
|
|
|
13,688
|
|
|
|
13,658
|
|
|
|
13,610
|
|
|
|
13,600
|
|
Common stock -
non-voting
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
319,134
|
|
|
|
318,769
|
|
|
|
318,350
|
|
|
|
318,033
|
|
|
|
317,798
|
|
Retained
earnings
|
|
|
70,283
|
|
|
|
65,889
|
|
|
|
58,182
|
|
|
|
53,270
|
|
|
|
47,163
|
|
Accumulated other
comprehensive loss
|
|
|
(1,735)
|
|
|
|
(1,371)
|
|
|
|
(2,116)
|
|
|
|
(2,103)
|
|
|
|
(1,177)
|
|
Treasury stock, at
cost
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
Total shareholders'
equity
|
|
|
400,331
|
|
|
|
395,945
|
|
|
|
387,044
|
|
|
|
381,780
|
|
|
|
376,354
|
|
Total liabilities and
shareholders' equity
|
|
$
|
4,215,792
|
|
|
$
|
3,963,482
|
|
|
$
|
3,859,657
|
|
|
$
|
3,773,148
|
|
|
$
|
3,516,845
|
|
Third Coast
Bancshares, Inc. and Subsidiary
Financial
Highlights
(unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
(Dollars in
thousands, except per share data)
|
|
September
30
|
|
|
June
30
|
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
September
30
|
|
|
September
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
65,380
|
|
|
$
|
59,295
|
|
|
$
|
53,911
|
|
|
$
|
48,081
|
|
|
$
|
40,498
|
|
|
$
|
178,586
|
|
|
$
|
98,344
|
|
|
Investment securities
available-for-sale
|
|
|
1,990
|
|
|
|
2,029
|
|
|
|
1,548
|
|
|
|
1,388
|
|
|
|
1,367
|
|
|
|
5,567
|
|
|
|
2,537
|
|
|
Federal funds sold and
other
|
|
|
2,015
|
|
|
|
1,389
|
|
|
|
1,920
|
|
|
|
1,682
|
|
|
|
1,237
|
|
|
|
5,324
|
|
|
|
1,914
|
|
|
Total interest
income
|
|
|
69,385
|
|
|
|
62,713
|
|
|
|
57,379
|
|
|
|
51,151
|
|
|
|
43,102
|
|
|
|
189,477
|
|
|
|
102,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
accounts
|
|
|
30,345
|
|
|
|
24,936
|
|
|
|
22,092
|
|
|
|
15,682
|
|
|
|
9,727
|
|
|
|
77,373
|
|
|
|
15,014
|
|
|
FHLB advances and other
borrowings
|
|
|
3,772
|
|
|
|
3,681
|
|
|
|
2,457
|
|
|
|
3,318
|
|
|
|
2,020
|
|
|
|
9,910
|
|
|
|
3,478
|
|
|
Total interest
expense
|
|
|
34,117
|
|
|
|
28,617
|
|
|
|
24,549
|
|
|
|
19,000
|
|
|
|
11,747
|
|
|
|
87,283
|
|
|
|
18,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
35,268
|
|
|
|
34,096
|
|
|
|
32,830
|
|
|
|
32,151
|
|
|
|
31,355
|
|
|
|
102,194
|
|
|
|
84,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
|
2,620
|
|
|
|
1,400
|
|
|
|
1,200
|
|
|
|
1,950
|
|
|
|
2,900
|
|
|
|
5,220
|
|
|
|
10,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
after credit loss expense
|
|
|
32,648
|
|
|
|
32,696
|
|
|
|
31,630
|
|
|
|
30,201
|
|
|
|
28,455
|
|
|
|
96,974
|
|
|
|
74,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
|
884
|
|
|
|
720
|
|
|
|
779
|
|
|
|
706
|
|
|
|
772
|
|
|
|
2,383
|
|
|
|
2,008
|
|
|
Gain on sale of SBA
loans
|
|
|
114
|
|
|
|
-
|
|
|
|
-
|
|
|
|
123
|
|
|
|
729
|
|
|
|
114
|
|
|
|
827
|
|
|
Gain on sale of
securities
|
|
|
364
|
|
|
|
-
|
|
|
|
97
|
|
|
|
-
|
|
|
|
-
|
|
|
|
461
|
|
|
|
-
|
|
|
Earnings on bank-owned
life insurance
|
|
|
541
|
|
|
|
526
|
|
|
|
475
|
|
|
|
497
|
|
|
|
424
|
|
|
|
1,542
|
|
|
|
815
|
|
|
Derivative
fees
|
|
|
159
|
|
|
|
247
|
|
|
|
(1)
|
|
|
|
117
|
|
|
|
313
|
|
|
|
405
|
|
|
|
1,142
|
|
|
Other
|
|
|
(196)
|
|
|
|
787
|
|
|
|
552
|
|
|
|
310
|
|
|
|
300
|
|
|
|
1,143
|
|
|
|
678
|
|
|
Total noninterest
income
|
|
|
1,866
|
|
|
|
2,280
|
|
|
|
1,902
|
|
|
|
1,753
|
|
|
|
2,538
|
|
|
|
6,048
|
|
|
|
5,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
17,353
|
|
|
|
15,033
|
|
|
|
13,712
|
|
|
|
14,473
|
|
|
|
14,719
|
|
|
|
46,098
|
|
|
|
42,037
|
|
|
Data processing and
network expense
|
|
|
1,284
|
|
|
|
1,261
|
|
|
|
1,203
|
|
|
|
837
|
|
|
|
1,256
|
|
|
|
3,748
|
|
|
|
3,110
|
|
|
Occupancy and equipment
expense
|
|
|
2,925
|
|
|
|
2,852
|
|
|
|
2,633
|
|
|
|
2,591
|
|
|
|
2,232
|
|
|
|
8,410
|
|
|
|
5,935
|
|
|
Legal and
professional
|
|
|
2,001
|
|
|
|
1,547
|
|
|
|
1,930
|
|
|
|
1,887
|
|
|
|
1,353
|
|
|
|
5,478
|
|
|
|
5,100
|
|
|
Loan operations and
other real estate owned
|
|
|
272
|
|
|
|
302
|
|
|
|
(35)
|
|
|
|
144
|
|
|
|
284
|
|
|
|
539
|
|
|
|
844
|
|
|
Advertising and
marketing
|
|
|
515
|
|
|
|
812
|
|
|
|
686
|
|
|
|
580
|
|
|
|
438
|
|
|
|
2,013
|
|
|
|
1,332
|
|
|
Telephone and
communications
|
|
|
117
|
|
|
|
129
|
|
|
|
139
|
|
|
|
175
|
|
|
|
122
|
|
|
|
385
|
|
|
|
321
|
|
|
Software purchases and
maintenance
|
|
|
729
|
|
|
|
455
|
|
|
|
352
|
|
|
|
295
|
|
|
|
318
|
|
|
|
1,536
|
|
|
|
717
|
|
|
Regulatory
assessments
|
|
|
532
|
|
|
|
458
|
|
|
|
666
|
|
|
|
863
|
|
|
|
1,000
|
|
|
|
1,656
|
|
|
|
2,601
|
|
|
Loss on sale of other
real estate owned
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
350
|
|
|
Other
|
|
|
1,777
|
|
|
|
986
|
|
|
|
758
|
|
|
|
782
|
|
|
|
1,006
|
|
|
|
3,521
|
|
|
|
3,335
|
|
|
Total noninterest
expense
|
|
|
27,505
|
|
|
|
23,835
|
|
|
|
22,044
|
|
|
|
22,627
|
|
|
|
22,728
|
|
|
|
73,384
|
|
|
|
65,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME BEFORE
INCOME TAX
EXPENSE
|
|
|
7,009
|
|
|
|
11,141
|
|
|
|
11,488
|
|
|
|
9,327
|
|
|
|
8,265
|
|
|
|
29,638
|
|
|
|
13,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
1,431
|
|
|
|
2,250
|
|
|
|
2,245
|
|
|
|
1,802
|
|
|
|
1,495
|
|
|
|
5,926
|
|
|
|
2,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
5,578
|
|
|
|
8,891
|
|
|
|
9,243
|
|
|
|
7,525
|
|
|
|
6,770
|
|
|
|
23,712
|
|
|
|
11,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends declared
|
|
|
1,184
|
|
|
|
1,184
|
|
|
|
1,171
|
|
|
|
1,418
|
|
|
|
-
|
|
|
|
3,539
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME AVAILABLE TO
COMMON
SHAREHOLDERS
|
|
$
|
4,394
|
|
|
$
|
7,707
|
|
|
$
|
8,072
|
|
|
$
|
6,107
|
|
|
$
|
6,770
|
|
|
$
|
20,173
|
|
|
$
|
11,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.32
|
|
|
$
|
0.57
|
|
|
$
|
0.60
|
|
|
$
|
0.45
|
|
|
$
|
0.50
|
|
|
$
|
1.49
|
|
|
$
|
0.83
|
|
|
Diluted earnings per
share
|
|
$
|
0.32
|
|
|
$
|
0.53
|
|
|
$
|
0.55
|
|
|
$
|
0.44
|
|
|
$
|
0.49
|
|
|
$
|
1.41
|
|
|
$
|
0.81
|
|
|
Third Coast
Bancshares, Inc. and Subsidiary
Financial
Highlights
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
(Dollars in
thousands, except share and per share data)
|
|
September
30
|
|
|
June
30
|
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
September
30
|
|
|
September
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
basic
|
|
$
|
0.32
|
|
|
$
|
0.57
|
|
|
$
|
0.60
|
|
|
$
|
0.45
|
|
|
$
|
0.50
|
|
|
$
|
1.49
|
|
|
$
|
0.83
|
|
Earnings per share,
diluted
|
|
$
|
0.32
|
|
|
$
|
0.53
|
|
|
$
|
0.55
|
|
|
$
|
0.44
|
|
|
$
|
0.49
|
|
|
$
|
1.41
|
|
|
$
|
0.81
|
|
Dividends on common
stock
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Dividends on Series A
Convertible
Non-Cumulative Preferred
Stock
|
|
$
|
17.06
|
|
|
$
|
17.06
|
|
|
$
|
16.88
|
|
|
$
|
20.44
|
|
|
$
|
-
|
|
|
$
|
51.00
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (A)
|
|
|
0.56
|
%
|
|
|
0.96
|
%
|
|
|
1.02
|
%
|
|
|
0.84
|
%
|
|
|
0.78
|
%
|
|
|
0.84
|
%
|
|
|
0.48
|
%
|
Return on average
common equity (A)
|
|
|
5.19
|
%
|
|
|
9.44
|
%
|
|
|
10.28
|
%
|
|
|
7.69
|
%
|
|
|
8.74
|
%
|
|
|
8.24
|
%
|
|
|
4.90
|
%
|
Return on average
tangible common
equity (A)
(B)
|
|
|
5.50
|
%
|
|
|
10.02
|
%
|
|
|
10.93
|
%
|
|
|
8.19
|
%
|
|
|
9.32
|
%
|
|
|
8.75
|
%
|
|
|
5.23
|
%
|
Net interest margin
(A) (C)
|
|
|
3.71
|
%
|
|
|
3.82
|
%
|
|
|
3.79
|
%
|
|
|
3.75
|
%
|
|
|
3.77
|
%
|
|
|
3.77
|
%
|
|
|
3.85
|
%
|
Efficiency ratio
(D)
|
|
|
74.07
|
%
|
|
|
65.52
|
%
|
|
|
63.47
|
%
|
|
|
66.74
|
%
|
|
|
67.06
|
%
|
|
|
67.80
|
%
|
|
|
73.16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Coast Bancshares,
Inc. (consolidated):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common equity to
total assets
|
|
|
7.93
|
%
|
|
|
8.32
|
%
|
|
|
8.31
|
%
|
|
|
8.36
|
%
|
|
|
8.82
|
%
|
|
|
7.93
|
%
|
|
|
8.82
|
%
|
Tangible common equity
to tangible
assets
(B)
|
|
|
7.51
|
%
|
|
|
7.88
|
%
|
|
|
7.86
|
%
|
|
|
7.90
|
%
|
|
|
8.32
|
%
|
|
|
7.51
|
%
|
|
|
8.32
|
%
|
Common equity tier 1
(to risk weighted
assets)
|
|
|
8.01
|
%
|
|
|
7.75
|
%
|
|
|
7.89
|
%
|
|
N/A
|
|
|
N/A
|
|
|
|
8.01
|
%
|
|
N/A
|
|
Tier 1 capital (to risk
weighted assets)
|
|
|
9.68
|
%
|
|
|
9.39
|
%
|
|
|
9.61
|
%
|
|
N/A
|
|
|
N/A
|
|
|
|
9.68
|
%
|
|
N/A
|
|
Total capital (to risk
weighted assets)
|
|
|
12.72
|
%
|
|
|
12.31
|
%
|
|
|
12.63
|
%
|
|
N/A
|
|
|
N/A
|
|
|
|
12.72
|
%
|
|
N/A
|
|
Tier 1 capital (to
average assets)
|
|
|
9.79
|
%
|
|
|
10.17
|
%
|
|
|
10.14
|
%
|
|
N/A
|
|
|
N/A
|
|
|
|
9.79
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Coast Bank,
SSB:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
(to risk weighted
assets)
|
|
|
12.48
|
%
|
|
|
12.06
|
%
|
|
|
12.32
|
%
|
|
|
12.95
|
%
|
|
|
13.04
|
%
|
|
|
12.48
|
%
|
|
|
13.04
|
%
|
Tier 1 capital (to risk
weighted assets)
|
|
|
12.48
|
%
|
|
|
12.06
|
%
|
|
|
12.32
|
%
|
|
|
12.95
|
%
|
|
|
13.04
|
%
|
|
|
12.48
|
%
|
|
|
13.04
|
%
|
Total capital (to risk
weighted assets)
|
|
|
13.49
|
%
|
|
|
12.99
|
%
|
|
|
13.25
|
%
|
|
|
13.79
|
%
|
|
|
13.87
|
%
|
|
|
13.49
|
%
|
|
|
13.87
|
%
|
Tier 1 capital (to
average assets)
|
|
|
12.62
|
%
|
|
|
13.06
|
%
|
|
|
13.00
|
%
|
|
|
13.11
|
%
|
|
|
13.29
|
%
|
|
|
12.62
|
%
|
|
|
13.29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
13,608,718
|
|
|
|
13,588,747
|
|
|
|
13,532,545
|
|
|
|
13,528,504
|
|
|
|
13,490,680
|
|
|
|
13,576,949
|
|
|
|
13,443,862
|
|
Diluted
|
|
|
13,873,187
|
|
|
|
16,855,822
|
|
|
|
16,801,815
|
|
|
|
13,760,076
|
|
|
|
13,678,962
|
|
|
|
16,872,035
|
|
|
|
13,752,556
|
|
Period end shares
outstanding
|
|
|
13,600,211
|
|
|
|
13,609,697
|
|
|
|
13,579,498
|
|
|
|
13,531,736
|
|
|
|
13,521,826
|
|
|
|
13,600,211
|
|
|
|
13,521,826
|
|
Book value per
share
|
|
$
|
24.57
|
|
|
$
|
24.23
|
|
|
$
|
23.63
|
|
|
$
|
23.32
|
|
|
$
|
22.93
|
|
|
$
|
24.57
|
|
|
$
|
22.93
|
|
Tangible book value per
share (B)
|
|
$
|
23.17
|
|
|
$
|
22.82
|
|
|
$
|
22.22
|
|
|
$
|
21.90
|
|
|
$
|
21.51
|
|
|
$
|
23.17
|
|
|
$
|
21.51
|
|
___________
|
(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 12 and 13 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
|
|
|
September 30,
2023
|
|
June 30,
2023
|
|
September 30,
2022
|
(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
|
|
$
|
198,305
|
|
|
$
|
1,990
|
|
|
3.98 %
|
|
$
|
208,980
|
|
|
$
|
2,029
|
|
|
3.89 %
|
|
$
|
180,701
|
|
|
$
|
1,367
|
|
|
3.00 %
|
Loans, gross
|
|
|
3,424,738
|
|
|
|
65,380
|
|
|
7.57 %
|
|
|
3,262,804
|
|
|
|
59,295
|
|
|
7.29 %
|
|
|
2,874,857
|
|
|
|
40,498
|
|
|
5.59 %
|
Federal funds sold and
other
interest-earning
assets
|
|
|
146,965
|
|
|
|
2,015
|
|
|
5.44 %
|
|
|
112,239
|
|
|
|
1,389
|
|
|
4.96 %
|
|
|
243,471
|
|
|
|
1,237
|
|
|
2.02 %
|
Total interest-earning
assets
|
|
|
3,770,008
|
|
|
|
69,385
|
|
|
7.30 %
|
|
|
3,584,023
|
|
|
|
62,713
|
|
|
7.02 %
|
|
|
3,299,029
|
|
|
|
43,102
|
|
|
5.18 %
|
Less allowance for loan
losses
|
|
|
(37,421)
|
|
|
|
|
|
|
|
|
(36,381)
|
|
|
|
|
|
|
|
|
(27,504)
|
|
|
|
|
|
|
Total interest-earning
assets, net of
allowance
|
|
|
3,732,587
|
|
|
|
|
|
|
|
|
3,547,642
|
|
|
|
|
|
|
|
|
3,271,525
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
190,670
|
|
|
|
|
|
|
|
|
185,705
|
|
|
|
|
|
|
|
|
184,514
|
|
|
|
|
|
|
Total
assets
|
|
$
|
3,923,257
|
|
|
|
|
|
|
|
$
|
3,733,347
|
|
|
|
|
|
|
|
$
|
3,456,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
$
|
2,756,305
|
|
|
$
|
30,345
|
|
|
4.37 %
|
|
$
|
2,581,560
|
|
|
$
|
24,936
|
|
|
3.87 %
|
|
$
|
2,446,443
|
|
|
$
|
9,727
|
|
|
1.58 %
|
Note payable and line
of credit
|
|
|
112,765
|
|
|
|
1,919
|
|
|
6.75 %
|
|
|
111,301
|
|
|
|
1,858
|
|
|
6.70 %
|
|
|
111,213
|
|
|
|
1,617
|
|
|
5.77 %
|
FHLB
advances
|
|
|
129,585
|
|
|
|
1,853
|
|
|
5.67 %
|
|
|
135,826
|
|
|
|
1,823
|
|
|
5.38 %
|
|
|
60,176
|
|
|
|
403
|
|
|
2.66 %
|
Total interest-bearing
liabilities
|
|
|
2,998,655
|
|
|
|
34,117
|
|
|
4.51 %
|
|
|
2,828,687
|
|
|
|
28,617
|
|
|
4.06 %
|
|
|
2,617,832
|
|
|
|
11,747
|
|
|
1.78 %
|
Noninterest-bearing
deposits
|
|
|
473,282
|
|
|
|
|
|
|
|
|
470,564
|
|
|
|
|
|
|
|
|
498,408
|
|
|
|
|
|
|
Other
liabilities
|
|
|
49,271
|
|
|
|
|
|
|
|
|
40,323
|
|
|
|
|
|
|
|
|
31,707
|
|
|
|
|
|
|
Total
liabilities
|
|
|
3,521,208
|
|
|
|
|
|
|
|
|
3,339,574
|
|
|
|
|
|
|
|
|
3,147,947
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
402,049
|
|
|
|
|
|
|
|
|
393,773
|
|
|
|
|
|
|
|
|
308,092
|
|
|
|
|
|
|
Total liabilities and
shareholders'
equity
|
|
$
|
3,923,257
|
|
|
|
|
|
|
|
$
|
3,733,347
|
|
|
|
|
|
|
|
$
|
3,456,039
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
35,268
|
|
|
|
|
|
|
|
$
|
34,096
|
|
|
|
|
|
|
|
$
|
31,355
|
|
|
|
Net interest spread
(1)
|
|
|
|
|
|
|
|
2.79 %
|
|
|
|
|
|
|
|
2.96 %
|
|
|
|
|
|
|
|
3.40 %
|
Net interest margin
(2)
|
|
|
|
|
|
|
|
3.71 %
|
|
|
|
|
|
|
|
3.82 %
|
|
|
|
|
|
|
|
3.77 %
|
___________
|
(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)
|
|
|
|
Nine Months
Ended
|
|
|
September 30,
2023
|
|
September 30,
2022
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earnings
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
$
|
195,234
|
|
|
$
|
5,567
|
|
|
3.81 %
|
|
$
|
115,705
|
|
|
$
|
2,537
|
|
|
2.93 %
|
Loans,
gross
|
|
|
3,287,053
|
|
|
|
178,586
|
|
|
7.26 %
|
|
|
2,577,324
|
|
|
|
98,344
|
|
|
5.10 %
|
Federal
funds sold and other interest-earning
assets
|
|
|
142,224
|
|
|
|
5,324
|
|
|
5.00 %
|
|
|
236,552
|
|
|
|
1,914
|
|
|
1.08 %
|
Total interest-earning
assets
|
|
|
3,624,511
|
|
|
|
189,477
|
|
|
6.99 %
|
|
|
2,929,581
|
|
|
|
102,795
|
|
|
4.69 %
|
Less allowance for loan
losses
|
|
|
(36,236)
|
|
|
|
|
|
|
|
|
(24,265)
|
|
|
|
|
|
|
Total interest-earning
assets, net of allowance
|
|
|
3,588,275
|
|
|
|
|
|
|
|
|
2,905,316
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
186,443
|
|
|
|
|
|
|
|
|
169,473
|
|
|
|
|
|
|
Total
assets
|
|
$
|
3,774,718
|
|
|
|
|
|
|
|
$
|
3,074,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
|
|
$
|
2,645,127
|
|
|
$
|
77,373
|
|
|
3.91 %
|
|
$
|
2,279,048
|
|
|
$
|
15,014
|
|
|
0.88 %
|
Note
payable and line of credit
|
|
|
111,777
|
|
|
|
5,592
|
|
|
6.69 %
|
|
|
65,898
|
|
|
|
2,848
|
|
|
5.78 %
|
FHLB
advances
|
|
|
106,353
|
|
|
|
4,318
|
|
|
5.43 %
|
|
|
52,202
|
|
|
|
630
|
|
|
1.61 %
|
Total interest-bearing
liabilities
|
|
|
2,863,257
|
|
|
|
87,283
|
|
|
4.08 %
|
|
|
2,397,148
|
|
|
|
18,492
|
|
|
1.03 %
|
Noninterest-bearing
deposits
|
|
|
473,834
|
|
|
|
|
|
|
|
|
351,002
|
|
|
|
|
|
|
Other
liabilities
|
|
|
44,025
|
|
|
|
|
|
|
|
|
22,361
|
|
|
|
|
|
|
Total
liabilities
|
|
|
3,381,116
|
|
|
|
|
|
|
|
|
2,770,511
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
393,602
|
|
|
|
|
|
|
|
|
304,278
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
3,774,718
|
|
|
|
|
|
|
|
$
|
3,074,789
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
102,194
|
|
|
|
|
|
|
|
$
|
84,303
|
|
|
|
Net interest spread
(1)
|
|
|
|
|
|
|
|
2.91 %
|
|
|
|
|
|
|
|
3.66 %
|
Net interest margin
(2)
|
|
|
|
|
|
|
|
3.77 %
|
|
|
|
|
|
|
|
3.85 %
|
___________
|
(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
|
|
|
|
|
2023
|
|
|
2022
|
|
|
(Dollars in
thousands)
|
|
September
30
|
|
|
June
30
|
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end Loan
Portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-farm
non-residential owner occupied
|
|
$
|
517,917
|
|
|
$
|
513,934
|
|
|
$
|
508,936
|
|
|
$
|
493,791
|
|
|
$
|
529,046
|
|
|
Non-farm
non-residential non-owner occupied
|
|
|
566,973
|
|
|
|
547,120
|
|
|
|
511,546
|
|
|
|
506,012
|
|
|
|
490,503
|
|
|
Residential
|
|
|
326,354
|
|
|
|
310,842
|
|
|
|
286,358
|
|
|
|
308,775
|
|
|
|
283,432
|
|
|
Construction,
development & other
|
|
|
655,822
|
|
|
|
595,601
|
|
|
|
627,143
|
|
|
|
567,851
|
|
|
|
500,879
|
|
|
Farmland
|
|
|
30,646
|
|
|
|
24,219
|
|
|
|
22,512
|
|
|
|
22,820
|
|
|
|
22,770
|
|
|
Commercial &
industrial
|
|
|
1,288,320
|
|
|
|
1,164,624
|
|
|
|
1,112,638
|
|
|
|
1,058,910
|
|
|
|
1,029,231
|
|
|
Consumer
|
|
|
2,665
|
|
|
|
2,891
|
|
|
|
3,280
|
|
|
|
3,872
|
|
|
|
3,728
|
|
|
Municipal and
other
|
|
|
171,256
|
|
|
|
175,046
|
|
|
|
140,913
|
|
|
|
145,520
|
|
|
|
113,263
|
|
|
Total loans
|
|
$
|
3,559,953
|
|
|
$
|
3,334,277
|
|
|
$
|
3,213,326
|
|
|
$
|
3,107,551
|
|
|
$
|
2,972,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
13,963
|
|
|
$
|
9,968
|
|
|
$
|
9,482
|
|
|
$
|
10,963
|
|
|
$
|
9,439
|
|
|
Loans > 90 days and
still accruing
|
|
|
2,442
|
|
|
|
-
|
|
|
|
-
|
|
|
|
518
|
|
|
|
98
|
|
|
Restructured
loans--accruing
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
780
|
|
|
|
781
|
|
|
Total nonperforming
loans
|
|
|
16,405
|
|
|
|
9,968
|
|
|
|
9,482
|
|
|
|
12,261
|
|
|
|
10,318
|
|
|
Other real estate
owned
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Total nonperforming
assets
|
|
$
|
16,405
|
|
|
$
|
9,968
|
|
|
$
|
9,482
|
|
|
$
|
12,261
|
|
|
$
|
10,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QTD Net charge-offs
(recoveries)
|
|
$
|
24
|
|
|
$
|
72
|
|
|
$
|
(364)
|
|
|
$
|
708
|
|
|
$
|
457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-farm
non-residential owner occupied
|
|
$
|
978
|
|
|
$
|
832
|
|
|
$
|
855
|
|
|
$
|
1,699
|
|
|
$
|
921
|
|
|
Non-farm
non-residential non-owner occupied
|
|
|
1,235
|
|
|
|
1,417
|
|
|
|
282
|
|
|
|
296
|
|
|
|
309
|
|
|
Residential
|
|
|
3,058
|
|
|
|
494
|
|
|
|
506
|
|
|
|
513
|
|
|
|
111
|
|
|
Construction,
development & other
|
|
|
567
|
|
|
|
36
|
|
|
|
39
|
|
|
|
45
|
|
|
|
232
|
|
|
Commercial &
industrial
|
|
|
8,125
|
|
|
|
7,189
|
|
|
|
7,800
|
|
|
|
8,390
|
|
|
|
7,846
|
|
|
Consumer
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
20
|
|
|
|
20
|
|
|
Total nonaccrual
loans
|
|
$
|
13,963
|
|
|
$
|
9,968
|
|
|
$
|
9,482
|
|
|
$
|
10,963
|
|
|
$
|
9,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
total assets
|
|
|
0.39
|
%
|
|
|
0.25
|
%
|
|
|
0.25
|
%
|
|
|
0.32
|
%
|
|
|
0.29
|
%
|
|
Nonperforming loans to
total loans
|
|
|
0.46
|
%
|
|
|
0.30
|
%
|
|
|
0.30
|
%
|
|
|
0.39
|
%
|
|
|
0.35
|
%
|
|
Allowance for credit
losses to total loans
|
|
|
1.07
|
%
|
|
|
1.12
|
%
|
|
|
1.12
|
%
|
|
|
0.98
|
%
|
|
|
0.98
|
%
|
|
QTD Net charge-offs
(recoveries) to average loans
(annualized)
|
|
|
0.00
|
%
|
|
|
0.01
|
%
|
|
|
(0.05)
|
%
|
|
|
0.09
|
%
|
|
|
0.06
|
%
|
|
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
|
|
|
Nine Months
Ended
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
(Dollars in
thousands, except share and per share data)
|
|
September
30
|
|
|
June
30
|
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
September
30
|
|
|
September
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
$
|
400,331
|
|
|
$
|
395,945
|
|
|
$
|
387,044
|
|
|
$
|
381,780
|
|
|
$
|
376,354
|
|
|
$
|
400,331
|
|
|
$
|
376,354
|
|
Less: Preferred
stock including additional paid in
capital
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,273
|
|
|
|
66,225
|
|
|
|
66,273
|
|
Total common
equity
|
|
|
334,106
|
|
|
|
329,720
|
|
|
|
320,819
|
|
|
|
315,555
|
|
|
|
310,081
|
|
|
|
334,106
|
|
|
|
310,081
|
|
Less: Goodwill
and core deposit intangibles, net
|
|
|
19,043
|
|
|
|
19,084
|
|
|
|
19,124
|
|
|
|
19,165
|
|
|
|
19,205
|
|
|
|
19,043
|
|
|
|
19,205
|
|
Tangible common
equity
|
|
$
|
315,063
|
|
|
$
|
310,636
|
|
|
$
|
301,695
|
|
|
$
|
296,390
|
|
|
$
|
290,876
|
|
|
$
|
315,063
|
|
|
$
|
290,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at end of period
|
|
|
13,600,211
|
|
|
|
13,609,697
|
|
|
|
13,579,498
|
|
|
|
13,531,736
|
|
|
|
13,521,826
|
|
|
|
13,600,211
|
|
|
|
13,521,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value Per
Share
|
|
$
|
24.57
|
|
|
$
|
24.23
|
|
|
$
|
23.63
|
|
|
$
|
23.32
|
|
|
$
|
22.93
|
|
|
$
|
24.57
|
|
|
$
|
22.93
|
|
Tangible Book Value
Per Share
|
|
$
|
23.17
|
|
|
$
|
22.82
|
|
|
$
|
22.22
|
|
|
$
|
21.90
|
|
|
$
|
21.51
|
|
|
$
|
23.17
|
|
|
$
|
21.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
4,215,792
|
|
|
$
|
3,963,482
|
|
|
$
|
3,859,657
|
|
|
$
|
3,773,148
|
|
|
$
|
3,516,845
|
|
|
$
|
4,215,792
|
|
|
$
|
3,516,845
|
|
Adjustments:
Goodwill and core deposit
intangibles,
net
|
|
|
19,043
|
|
|
|
19,084
|
|
|
|
19,124
|
|
|
|
19,165
|
|
|
|
19,205
|
|
|
|
19,043
|
|
|
|
19,205
|
|
Tangible
assets
|
|
$
|
4,196,749
|
|
|
$
|
3,944,398
|
|
|
$
|
3,840,533
|
|
|
$
|
3,753,983
|
|
|
$
|
3,497,640
|
|
|
$
|
4,196,749
|
|
|
$
|
3,497,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Equity to
Total Assets
|
|
|
7.93
|
%
|
|
|
8.32
|
%
|
|
|
8.31
|
%
|
|
|
8.36
|
%
|
|
|
8.82
|
%
|
|
|
7.93
|
%
|
|
|
8.82
|
%
|
Tangible Common
Equity to Tangible Assets
|
|
|
7.51
|
%
|
|
|
7.88
|
%
|
|
|
7.86
|
%
|
|
|
7.90
|
%
|
|
|
8.32
|
%
|
|
|
7.51
|
%
|
|
|
8.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Tangible
Common Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
$
|
402,049
|
|
|
$
|
393,773
|
|
|
$
|
384,794
|
|
|
$
|
381,271
|
|
|
$
|
308,092
|
|
|
$
|
393,602
|
|
|
$
|
304,278
|
|
Less: Average
preferred stock including
additional paid in
capital
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,329
|
|
|
|
720
|
|
|
|
66,225
|
|
|
|
243
|
|
Average common
equity
|
|
|
335,824
|
|
|
|
327,548
|
|
|
|
318,569
|
|
|
|
314,942
|
|
|
|
307,372
|
|
|
|
327,377
|
|
|
|
304,035
|
|
Less: Average
goodwill and core deposit
intangibles,
net
|
|
|
19,068
|
|
|
|
19,108
|
|
|
|
19,149
|
|
|
|
19,184
|
|
|
|
19,225
|
|
|
|
19,108
|
|
|
|
19,265
|
|
Average tangible common
equity
|
|
$
|
316,756
|
|
|
$
|
308,440
|
|
|
$
|
299,420
|
|
|
$
|
295,758
|
|
|
$
|
288,147
|
|
|
$
|
308,269
|
|
|
$
|
284,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
5,578
|
|
|
$
|
8,891
|
|
|
$
|
9,243
|
|
|
$
|
7,525
|
|
|
$
|
6,770
|
|
|
$
|
23,712
|
|
|
$
|
11,134
|
|
Less: Dividends
declared on preferred stock
|
|
|
1,184
|
|
|
|
1,184
|
|
|
|
1,171
|
|
|
|
1,418
|
|
|
|
-
|
|
|
|
3,539
|
|
|
|
-
|
|
Net Income Available to
Common Shareholders
|
|
$
|
4,394
|
|
|
$
|
7,707
|
|
|
$
|
8,072
|
|
|
$
|
6,107
|
|
|
$
|
6,770
|
|
|
$
|
20,173
|
|
|
$
|
11,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Common Equity(A)
|
|
|
5.19
|
%
|
|
|
9.44
|
%
|
|
|
10.28
|
%
|
|
|
7.69
|
%
|
|
|
8.74
|
%
|
|
|
8.24
|
%
|
|
|
4.90
|
%
|
Return on Average
Tangible Common Equity(A)
|
|
|
5.50
|
%
|
|
|
10.02
|
%
|
|
|
10.93
|
%
|
|
|
8.19
|
%
|
|
|
9.32
|
%
|
|
|
8.75
|
%
|
|
|
5.23
|
%
|
___________
|
(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-third-quarter-2023-financial-results-301967880.html
SOURCE Third Coast Bancshares