Financial Performance - For the three months ended September 30, 2025, net interest income increased by $10.5 million, or 25.9%, compared to the same period in 2024, reaching $50.8 million[290]. - The company's net income for the three months ended September 30, 2025, was $18.06 million, representing a 41.3% increase compared to $12.78 million in the same period of 2024[290]. - For the nine months ended September 30, 2025, net interest income increased to $143.0 million, up from $117.3 million in 2024, representing a growth of 21.9%[295]. - Total noninterest income for the nine months ended September 30, 2025, was $9.4 million, an increase of $1.6 million, or 21.2%, compared to $7.7 million for the same period in 2024[311]. - Total noninterest expense for the nine months ended September 30, 2025, was $85.8 million, an increase of $8.7 million, or 11.3%, compared to $77.1 million for the same period in 2024[314]. Asset and Loan Growth - As of September 30, 2025, the company reported total assets of $5.06 billion, total loans of $4.17 billion, total deposits of $4.37 billion, and total shareholders' equity of $513.8 million[280]. - The average loans increased from $3.74 billion for the nine months ended September 30, 2024, to $4.06 billion for the same period in 2025, primarily driven by growth in commercial loans[292]. - Average loans increased from $3.80 billion in Q3 2024 to $4.18 billion in Q3 2025, primarily driven by growth in commercial loans[299]. - Total assets as of September 30, 2025, were $4.89 billion, compared to $4.45 billion in 2024, marking an increase of 9.9%[295]. - Total loans as of September 30, 2025, were $4.17 billion, an increase of $198.7 million, or 5.0%, compared to $3.97 billion as of December 31, 2024[322]. Credit Losses and Provisions - The provision for credit losses for the three months ended September 30, 2025, was $2.76 million, a significant increase of 154.7% from $1.08 million in the same period in 2024[290]. - The provision for credit losses for the nine months ended September 30, 2025, was $5.3 million, an increase from $4.5 million for the same period in 2024[307]. - The allowance for credit losses for loans totaled $42.6 million, or 1.02% of total loans, compared to $40.3 million, or 1.02% of total loans, as of December 31, 2024[308]. - The ratio of nonaccrual loans to total loans improved to 0.26% as of September 30, 2025, down from 0.67% as of December 31, 2024[334]. - The allowance for credit losses to nonaccrual loans ratio was 396.93% as of September 30, 2025, indicating strong coverage for potential losses[334]. Deposits and Funding - Total deposits as of September 30, 2025, were $4.37 billion, an increase of $62.2 million, or 1.4%, compared to $4.31 billion as of December 31, 2024[350]. - Noninterest-bearing deposits decreased by $152.1 million, or 25.3%, to $450.0 million as of September 30, 2025[350]. - Total interest-bearing account balances increased by $214.3 million, or 5.8%, to $3.92 billion as of September 30, 2025[350]. - The average total loans to average deposits ratio was 96.5% for the nine months ended September 30, 2025, slightly down from 96.6% for the year ended December 31, 2024[363]. - The borrowing capacity under FHLB advances was $524.5 million as of September 30, 2025, down from $623.7 million as of December 31, 2024[353]. Mergers and Acquisitions - The company entered into a merger agreement on October 22, 2025, to merge with Keystone, which is expected to close in the first quarter of 2026[283]. Interest Rate Management - The company manages interest rate risk through a measurement system for monitoring net interest rate sensitivity, with a goal to minimize risk while maximizing income[381]. - Under various interest rate shock scenarios, a 200 basis point increase in rates is estimated to result in a 3.15% increase in net interest income[387]. - The cost of senior debt and note payable was 6.17% for the nine months ended September 30, 2025, compared to 6.66% for the same period in 2024[356]. Regulatory Compliance - The Company was classified as "well capitalized" under FDIC regulations as of September 30, 2025, meeting all applicable regulatory capital requirements[368]. - The company qualifies as an "emerging growth company," allowing it to take advantage of reduced reporting requirements until certain thresholds are met[395].

Core Viewpoint - Third Coast Bancshares, Inc. (TCBX) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are strongly correlated with near-term stock price movements [2][4]. - The recent upgrade reflects an improvement in Third Coast Bancshares' underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. Earnings Estimate Revisions - Analysts have increased their earnings estimates for Third Coast Bancshares, with the Zacks Consensus Estimate rising by 9.3% over the past three months [8]. - The company is projected to earn $3.66 per share for the fiscal year ending December 2025, indicating no year-over-year change [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade places Third Coast Bancshares in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment based on recent earnings estimate increases Company Summaries - **Comfort Systems USA (FIX)**: A national provider of HVAC services, with a 5.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - **Third Coast Bancshares (TCBX)**: A bank holding company offering various financial services, with a 5.1% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - **Simulations Plus (SLP)**: A developer of drug discovery simulation software, with a 3% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - **Horizon Bancorp IN (HBNC)**: A full-service commercial bank, with a 2.7% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [4] - **Seagate Technology (STX)**: A provider of data storage technology, with a 2.4% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [5]

Accessibility StatementSkip Navigation NEW YORK, Oct. 28, 2025 /PRNewswire/ -- Class Action Attorney Juan Monteverde with Monteverde & Associates PC (the "M&A Class Action Firm"), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report. The firm is headquartered at the Empire State Building in New York City and is investigating Third Coast Bancshares, Inc. (NYSE: TCBX) related to its merger with Keystone Bancshares, Inc ...

Core Insights - Third Coast Bancshares, Inc. reported a net income of $18.1 million for Q3 2025, an increase from $16.7 million in Q3 2024, resulting in a basic EPS of $1.22 and a diluted EPS of $1.03 [1][7] - The increase in net income was primarily driven by stronger net interest income and higher non-margin loan fees, although it was partially offset by a higher provision for credit losses [1][7] - The company is expected to maintain operational efficiency through a 1% improvement initiative, with non-interest expenses projected to remain stable [1] Financial Performance - Net income for Q3 2025 rose to $18.1 million, with a return on average assets (ROAA) improving to 1.41% from 1.38% sequentially [7] - The net interest margin for Q3 2025 was reported at 4.10%, compared to 4.22% in Q2 2025 and 3.73% year-over-year [7] Strategic Developments - Third Coast Bancshares announced a definitive agreement to acquire Keystone Bancshares for approximately $123 million, with pro forma assets exceeding $6 billion and a targeted closing in Q1 2026 [7]

Financial Data and Key Metrics Changes - The company reported a net income of $16.9 million for Q3 2025, an increase of 8.3% compared to Q2 2025, resulting in a return on assets (ROA) of 1.41% and a return on equity (ROE) of 15.1% [8][9] - Total assets surpassed $5 billion for the first time, with a compound annual growth rate of 19.3% since the IPO in November 2021 [6] - The efficiency ratio improved to 53.05% for Q3 2025, indicating better operational efficiency [7] Business Line Data and Key Metrics Changes - Net interest income increased by $1.5 million, or 3%, primarily due to a better-than-expected net interest margin and growth in average earning assets of $229 million [9] - Average loans rose by $158 million compared to Q2 2025, while period-end loans increased by $85.4 million [9] Market Data and Key Metrics Changes - Deposits increased by $92 million for the quarter, resulting in a loan-to-deposit ratio of 95% [9] - The yield on the investment securities portfolio was 6.07% as of September 30, 2025, with total investment securities rising to $583 million [9] Company Strategy and Development Direction - The company announced a definitive merger agreement with Keystone Bancshares, expected to close in Q1 2026, which will create a combined entity with total assets exceeding $6 billion [14] - The merger aims to enhance market presence and leverage shared commitment to relationship banking and customer service [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting loan growth targets of $50 million to $100 million in Q4 2025, supported by strong loan pipelines [15] - The company remains disciplined in underwriting and portfolio management practices to ensure high-quality growth [15] Other Important Information - The company achieved new records in book value and tangible book value, reaching $32.25 and $30.91, respectively [6] - The successful completion of the bank's first and second securitization transactions received international recognition, winning the SCI Risk Sharing Award for North American Transaction of the Year [7] Q&A Session Summary Question: Integration process timeline for the Keystone merger - The integration is expected to be straightforward due to operational compatibility, with a core conversion planned for early Q2 2026 [19][20] Question: Loan growth expectations for Q4 - The company is comfortable with the $50 million to $100 million loan growth target, although year-end paydowns may affect final figures [21][22] Question: EPS accretion expectations from the merger - EPS accretion estimates are based on consensus, with expectations that the number may change following the current earnings report [29][30] Question: Near-term securitization strategy - A third securitization is being considered, likely in Q1 2026, but it will depend on customer demand [33] Question: Future M&A opportunities - The company is open to additional deals but will maintain a high bar for any future acquisitions, focusing on cultural fit and financial rewards [50][51] Question: Fee income growth and expectations - Fee income has shown strong momentum, with expectations for a slight step down in Q4 due to seasonal factors [42][44] Question: Hiring efforts to support loan growth - The company is selectively hiring top talent to support growth, focusing on high productivity and quality candidates [46][48] Question: Geographic expansion plans - The company aims to build around the Texas Triangle and is open to opportunities that enhance shareholder value [73][75]

Financial Data and Key Metrics Changes - The company reported a net income of $16.9 million for Q3 2025, an increase of 8.3% compared to Q2 2025, resulting in a return on average assets (ROAA) of 1.41% and a return on equity (ROE) of 15.1% [8][9] - Net interest income rose by $1.5 million, or 3%, primarily due to an improved net interest margin and growth in average earning assets of $229 million [9] - The efficiency ratio improved to 53.05% for the third quarter, indicating better operational efficiency [7] Business Line Data and Key Metrics Changes - Average loans increased by $158 million compared to Q2 2025, while period-end loans rose by $85.4 million [9] - Deposits increased by $92 million for the quarter, resulting in a loan-to-deposit ratio of 95% [9] - The company achieved record book value and tangible book value, reaching $32.25 and $30.91, respectively [6] Market Data and Key Metrics Changes - The company surpassed the $5 billion threshold in total assets for the first time, with a compound annual growth rate of 19.3% since its IPO in November 2021 [6] - The company’s investment securities increased by $21 million to $583 million, with a yield on the portfolio at 6.07% [9] Company Strategy and Development Direction - The company announced a definitive merger agreement with Keystone Bancshares, expected to close in Q1 2026, which will create a combined entity with pro forma total assets exceeding $6 billion [14][15] - The merger aims to enhance market presence and leverage shared commitment to relationship banking and customer service [15] - The company remains focused on organic growth, targeting loan growth of $50 to $100 million in Q4 2025 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting loan growth targets, citing strong demand and a robust loan pipeline [15] - The company anticipates that the remainder of 2025 will be consistent with prior quarters, with a disciplined approach to underwriting and portfolio management [15] - Management highlighted the importance of maintaining strong credit quality and risk management practices [11] Other Important Information - The company received international recognition for its securitization transactions, winning the SCI Risk Sharing Award for North American Transaction of the Year [6] - Non-accrual loans declined by $2.6 million, indicating stability in credit quality [11] Q&A Session Summary Question: Integration process timeline for the merger with Keystone - The integration is expected to be straightforward, with a core conversion planned for early Q2 2026 due to operational compatibility [19][20] Question: Loan growth expectations for Q4 - The company is comfortable with the $50 million to $100 million loan growth target, although year-end paydowns may affect final figures [21][22] Question: EPS accretion expectations from the merger - EPS accretion is based on consensus estimates, but management believes it will be more accretive than initially projected due to potential synergies [29][31] Question: Near-term securitization strategy - A third securitization is likely in Q1 2026, although it may not occur this year [33] Question: Future M&A opportunities - Future deals must be financially rewarding and culturally aligned, with a high bar set for any potential acquisitions [50][51] Question: Fee income and service charges - Fee income has shown strong momentum, with expectations for a slight step down in Q4 due to seasonal factors [41][43] Question: Hiring efforts to support loan growth - The company is selectively hiring top talent to support growth, focusing on high productivity and quality [45][46] Question: Geographic expansion plans - The company aims to build around the Texas Triangle and is open to opportunities that enhance shareholder value [72][74] Question: Keystone's credit profile and potential improvements - The credit profile of Keystone is strong, and management believes additional tools can enhance underwriting and asset quality [75][78]

Financial Data and Key Metrics Changes - The company reported a net income of $16,900,000 for Q3 2025, an increase of 8.3% compared to the previous year, resulting in a return on assets (ROA) of 1.41% and a return on equity (ROE) of 15.1% [9][10] - Net interest income rose by $15,000,000 or 3% from the previous quarter, primarily due to an improved net interest margin and growth in average earning assets of $229,000,000 [10] - The efficiency ratio improved to 53.05% for the third quarter, indicating enhanced operational efficiency [8] Business Line Data and Key Metrics Changes - Average loans increased by $158,000,000 compared to Q2 2025, with period-end loans up by $85,400,000 [10] - Deposits increased by $92,000,000 for the quarter, resulting in a loan-to-deposit ratio of 95% [10] - Capitalized loan fees reached a record $19,900,000, contributing to the overall loan growth [11] Market Data and Key Metrics Changes - The company surpassed $5,000,000,000 in total assets for the first time, achieving a compound annual growth rate of 19.3% since its IPO in November 2021 [6] - The yield on the investment securities portfolio was reported at 6.07% as of September 30, 2025 [10] Company Strategy and Development Direction - The company announced a definitive merger agreement with Keystone Bancshares, expected to close in 2026, which will create a combined entity with total assets exceeding $6,000,000,000 [16][17] - The merger aims to enhance market presence and operational efficiency, leveraging shared commitment to relationship banking and customer service [17][18] - The company remains focused on organic growth while being opportunistic in pursuing additional M&A opportunities that align with its strategic goals [59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting loan growth targets of $50,000,000 to $100,000,000 in Q4 2025, supported by a strong loan pipeline [17][29] - The company anticipates continued strong performance in the remainder of 2025, with a disciplined approach to underwriting and portfolio management [18] - Management highlighted the stability of credit quality, with non-accrual loans declining for the second consecutive quarter [13] Other Important Information - The company received international recognition for its securitization transactions, winning the SCI Risk Sharing Award for North American Transaction of the Year [7] - The efficiency improvements and stable expenses contributed to a total net income of $18,100,000 for the quarter [8] Q&A Session Summary Question: Integration process timeline for the Keystone merger - Management expects a straightforward integration process with core conversion planned for early Q2 2026 due to operational compatibility [21][22] Question: Loan growth expectations for Q4 - Management remains comfortable with the loan growth target of $50,000,000 to $100,000,000, citing strong demand and quality of the loan pipeline [24][29] Question: EPS accretion expectations from the merger - EPS accretion estimates are based on consensus, with management confident that synergies will enhance the financial benefits of the merger [33][36] Question: Near-term securitization strategy - A third securitization is being considered for Q1 2026, with the timing dependent on customer demand [37] Question: Future M&A opportunities - The company will remain disciplined in pursuing M&A, focusing on cultural fit and financial rewards, while continuing to execute its organic growth strategy [56][59] Question: Fee income outlook - Management anticipates a potential step down in fee income for Q4 due to seasonal factors, but remains optimistic about ongoing fee income initiatives [48] Question: Hiring efforts to support growth - The company is selectively hiring top talent to support growth, focusing on high productivity and cultural fit [52]

Financial Data and Key Metrics Changes - The company surpassed $5 billion in total assets for the first time, achieving a compound annual growth rate of 19.3% since its IPO in November 2021 [5] - Net income for the third quarter was $16.9 million, an increase of 8.3% compared to the second quarter of 2025, resulting in a return on average assets (ROAA) of 1.41% and a return on equity (ROE) of 15.1% [8][9] - The efficiency ratio improved to 53.05% for the third quarter, indicating better operational efficiency [6][7] Business Line Data and Key Metrics Changes - Net interest income increased by $1.5 million, or 3%, primarily due to a better-than-expected net interest margin and growth in average earning assets of $229 million [9] - Average loans rose by $158 million compared to the second quarter, while period-end loans increased by $85.4 million [9] - Non-interest expenses remained stable, with salary and employee benefits rising but legal and professional expenses declining [9] Market Data and Key Metrics Changes - Deposits increased by $92 million for the quarter, resulting in a loan-to-deposit ratio of 95% [9] - The yield on the investment securities portfolio was 6.07%, with total investment securities rising to $583 million [9] Company Strategy and Development Direction - The company announced a definitive merger agreement with Keystone Bancshares, expected to close in the first quarter of 2026, which will create a combined entity with total assets exceeding $6 billion [14] - The merger aims to enhance market presence and leverage shared commitment to relationship banking and customer service [15] - The company remains focused on organic growth, targeting loan growth of $50 to $100 million in the fourth quarter [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting loan growth targets, citing strong demand and a robust loan pipeline [15][21] - The company anticipates that the remainder of 2025 will be consistent with prior quarters, with a disciplined approach to underwriting and portfolio management [15] - Management highlighted the importance of maintaining strong credit quality and risk management practices [11] Other Important Information - The company received international recognition for its securitization transactions, winning the SCI Risk Sharing Award for North American Transaction of the Year [5] - The company is positioned as a strong performer in the market, with a commitment to delivering sustained value for shareholders [8] Q&A Session Summary Question: Integration process timeline for the merger with Keystone - Management expects a straightforward integration process, targeting an early second quarter core conversion [18] Question: Loan growth expectations for Q4 - Management remains comfortable with the $50 million to $100 million loan growth target, despite potential volatility in paydowns [19][20] Question: EPS accretion expectations from the merger - EPS accretion is based on consensus estimates, with management believing the actual number may be more favorable due to potential synergies not included in initial projections [26][28] Question: Near-term securitization strategy - A third securitization is being considered, likely in the first quarter of the following year [30] Question: Future M&A opportunities - The company is open to future deals but emphasizes the need for financial rewards and cultural fit, maintaining a disciplined approach [45][47] Question: Fee income and growth initiatives - Fee income has shown strong momentum, with expectations for continued growth, although a slight step down is anticipated in the fourth quarter due to seasonal factors [36][38] Question: Hiring efforts to support loan growth - The company is selectively hiring top talent to support growth, focusing on high productivity and cultural fit [41][43] Question: Geographic expansion plans - The company aims to continue building around the Texas Triangle and is open to opportunities that enhance shareholder value [61][63]

Financial Performance - Record net income of $18.1 million for Q3 2025, up from $16.7 million in Q2 2025 and $12.8 million in Q3 2024[6] - Basic and diluted earnings per share reached $1.22 and $1.03, respectively, compared to $1.12 and $0.96 in Q2 2025 and $0.85 and $0.74 in Q3 2024[7] - Noninterest income increased to $3.6 million in Q3 2025, up from $2.7 million in Q2 2025 and $2.5 million in Q3 2024[10] - Net income for the nine months ended September 30, 2024, was $48,393,000, compared to $33,938,000 for the same period in 2023, marking a growth of 42.5%[27] - Basic earnings per share for the nine months ended September 30, 2024, was $2.23, compared to $1.12 for the same period in 2023, reflecting an increase of 99.1%[27] - Net income available to common shareholders for the nine months ended September 2025 was $44,840,000, up from $30,385,000 in the same period of 2024, reflecting a year-over-year increase of 47.5%[42] Asset and Liability Management - Total assets increased to $5,061,808 thousand as of September 30, 2025, up from $4,943,771 thousand in the previous quarter, representing a growth of 2.2%[25] - Total liabilities increased to $4,547,978 thousand, up from $4,447,656 thousand in the previous quarter, representing a growth of 2.3%[25] - Total deposits rose to $4.37 billion, a 2.1% increase from $4.28 billion in Q2 2025 and a 9.5% increase from $3.99 billion in Q3 2024[17] - Total shareholders' equity increased to $513,830 thousand, a rise of 3.4% from $496,115 thousand in the prior quarter[25] - Total common equity to total assets ratio improved to 8.84% as of September 30, 2025, compared to 8.70% a year earlier, showing enhanced asset utilization[29] Loan and Credit Quality - Gross loans increased to $4.17 billion, a 2.1% increase from $4.08 billion in Q2 2025 and a 7.1% increase from $3.89 billion in Q3 2024[13] - Provision for credit loss was $2.8 million, with an allowance for credit losses of $42.6 million representing 1.02% of gross loans[15] - Nonperforming loans to total loans ratio improved to 0.52% in September 2025 from 0.49% in June 2025[38] - Nonaccrual loans decreased to $10,723 thousand in September 2025, down from $13,358 thousand in June 2025, a reduction of 19.5%[38] - The allowance for credit losses was $42,563 thousand, compared to $40,035 thousand in the previous quarter, reflecting a 6.3% increase[25] Efficiency and Cost Management - Efficiency ratio improved to 53.03% in Q3 2025 from 55.45% in Q2 2025 and 59.57% in Q3 2024[12] - The average cost of deposits was 3.56%, a decrease of 3 basis points from Q2 2025 and 62 basis points from Q3 2024[18] - Total noninterest expense for the nine months ended September 30, 2024, was $61,223,000, compared to $22,829,000 for the same period in 2023, showing a significant increase of 168.5%[27] Capital Position - Estimated Tier 1 capital to risk-weighted assets was 10.25% as of September 30, 2025, slightly up from 10.20% in the previous year, indicating a strong capital position[29] - Estimated total capital to risk-weighted assets was 12.90% as of September 30, 2025, up from 12.87% in the previous year, reflecting a solid capital base[29] - Tangible common equity reached $428,950,000 in September 2025, compared to $365,549,000 in September 2024, marking an increase of 17.3%[42] Shareholder Value - Book value per share increased to $32.25 as of September 30, 2025, up from $31.04 a year earlier, reflecting a growth of 3.91%[29] - Common shares outstanding at the end of the period were 13,879,091 in September 2025, compared to 13,667,591 in September 2024, indicating a slight increase[42] - Return on average common equity improved to 15.14% in September 2025, up from 11.05% in September 2024, showing a significant increase of 37.5%[42]