Core Viewpoint - Third Coast Bancshares, Inc. has announced a new share repurchase program allowing the company to buy up to $30 million of its common stock, set to expire on May 22, 2026, with non-objection from the Federal Reserve Bank of Dallas received on June 16, 2025 [1][2]. Group 1 - The Repurchase Program permits Third Coast to buy shares through various methods including open market transactions, privately negotiated deals, and block trades, compliant with federal securities laws [2]. - The program can be modified or halted at any time by the Board of Directors and does not obligate the company to repurchase its common stock [2]. - Specifics regarding each repurchase will depend on factors such as capital status, liquidity, financial performance, stock market price, and overall market conditions [2]. Group 2 - Third Coast Bancshares, Inc. operates primarily in Texas, focusing on commercial banking through its subsidiary, Third Coast Bank, with 19 branches in major metropolitan areas [4]. - The company was founded in 2008 in Humble, Texas, and serves the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets [4].

Core Viewpoint - Third Coast Bank has successfully completed a $150 million securitization transaction involving commercial real estate loans, which is expected to enhance the bank's capital structure and reduce risk-weighted assets [1][6]. Group 1: Transaction Details - The securitization transaction was arranged by EJF Capital, a global alternative asset management firm managing approximately $5.3 billion in assets as of March 31, 2025 [2]. - The Bank originated the Mortgage Loans and subsequently created participation interests, selling some to EJF CRT 2025-2 Depositor LLC, which then sold them to EJF CRT 2025-2 LLC [3]. - The Issuer issued Asset-Backed Notes, Series 2025-2, which included Class A-1 Notes sold to the Bank and Class M-1 Notes sold to affiliates of the Depositor [4]. Group 2: Impact on the Bank - The transactions are anticipated to lower the Bank's risk-weighted assets as per current risk-based capital regulations and reduce the ratio of loans for construction and land development to total capital [6]. - The Company believes these transactions will enhance the diversity of the Bank's on-balance sheet loan portfolio [6]. Group 3: Leadership Commentary - Bart Caraway, President & CEO of Third Coast Bank, expressed pride in the team's efforts in completing the securitization, emphasizing the synergy and commitment to delivering value to stakeholders [7].

Group 1 - Third Coast Bancshares (NASDAQ: TCBX) is identified as a worthy investment opportunity with a 'buy' rating [1] - The focus of Crude Value Insights is on cash flow and companies in the oil and natural gas sector, emphasizing value and growth prospects [1] - Subscribers benefit from a 50+ stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2] Group 2 - A two-week free trial is available for new subscribers, promoting engagement in the oil and gas investment community [3]

Financial Performance - For the three months ended March 31, 2025, net interest income increased by $4.7 million, or 12.4%, compared to the same period in 2024, primarily due to increased interest income from loans and investment securities [256]. - The company reported net income of $13.59 million for the three months ended March 31, 2025, representing a 31.1% increase from $10.37 million in the same period in 2024 [254]. - Noninterest income for the three months ended March 31, 2025, was $3.1 million, an increase of 32.6% from $2.34 million in the same period in 2024 [254]. - The net interest margin for the three months ended March 31, 2025, was 3.80%, up from 3.60% for the same period in 2024 [256]. - Noninterest expense increased by $2.2 million, or 8.5%, to $28.1 million for the three months ended March 31, 2025, compared to $25.9 million in the same period of 2024, mainly due to higher salaries and employee benefits [270]. Asset and Loan Portfolio - As of March 31, 2025, the company had total assets of $4.90 billion, total loans of $3.99 billion, total deposits of $4.25 billion, and total shareholders' equity of $479.8 million [248]. - The average loans increased from $3.67 billion for the three months ended March 31, 2024, to $3.98 billion for the same period in 2025, with a diversified growth in real estate and commercial loans [256]. - Total loans increased by $251.6 million, or 0.5%, to $3.99 billion as of March 31, 2025, compared to $3.97 billion as of December 31, 2024 [279]. - The total loan portfolio as of March 31, 2025, was $3,988.0 million, with fixed-rate loans amounting to $885.4 million and floating-rate loans totaling $3,102.6 million [290]. - As of March 31, 2025, total commercial real estate loans amounted to $1,054.1 million, with warehouse/industrial loans representing 30.5% of the total [283]. Credit Quality - The provision for credit losses decreased to $450,000 for the three months ended March 31, 2025, down from $1.6 million in the same period of 2024, reflecting improved asset quality [264]. - Nonperforming assets decreased to $27.3 million as of March 31, 2025, from $28.8 million as of December 31, 2024 [292]. - The ratio of nonaccrual loans to total loans improved to 0.43% as of March 31, 2025, down from 0.67% [292]. - The allowance for credit losses for loans was $40.5 million, or 1.01% of total loans, compared to $40.3 million, or 1.02% as of December 31, 2024 [265]. - The provision for credit losses on loans for the three months ended March 31, 2025 was $550,000, down from $1.86 million for the same period in 2024 [299]. Deposits and Funding - Total deposits as of March 31, 2025 were $4.25 billion, a decrease of $62.0 million, or 1.4%, from $4.31 billion as of December 31, 2024 [308]. - Noninterest-bearing deposits decreased by $153.5 million, or 25.5%, to $448.5 million as of March 31, 2025 [308]. - Total interest-bearing account balances increased by $91.6 million, or 2.5%, to $3.80 billion as of March 31, 2025 [309]. - The total interest-bearing deposits represented 89.4% of total deposits as of March 31, 2025, up from 86.0% as of December 31, 2024 [309]. - The Company had total borrowings of $111.7 million, slightly increasing from $111.6 million as of December 31, 2024 [311]. Regulatory and Compliance - The company completed its conversion from a Texas state savings bank to a Texas banking association on March 13, 2024, with the Texas Department of Banking as its primary state regulator [252]. - The Company maintained compliance with all applicable regulatory capital requirements, classified as "well capitalized" under FDIC regulations [329]. - The effective tax rate increased to 21.7% for the three months ended March 31, 2025, compared to 19.9% for the same period in 2024 [276]. Interest Rate Risk Management - The company manages interest rate risk through its Asset Liability and Investment Committee, which formulates strategies based on various economic factors [344]. - The simulation models indicate that a 200 basis point increase in interest rates could lead to a 0.83% increase in net interest income and a 3.35% decrease in fair value of equity as of December 31, 2024 [347]. - The company does not engage in leveraged derivatives or financial options to manage interest rate risk [343]. - The impact of interest rate changes on net interest income is tested under various scenarios, including stress tests and deposit decay rates [346]. Miscellaneous - The company qualifies as an "emerging growth company" and benefits from reduced reporting requirements until it exceeds $1.235 billion in annual revenues or other specified thresholds [357]. - Goodwill is evaluated for impairment at least annually, with no amortization applied [355].

Core Insights - Third Coast Bancshares, Inc. reported a net income of $13.6 million for Q1 2025, nearly unchanged from $13.7 million in Q4 2024, resulting in basic and diluted EPS of $0.90 and $0.78 respectively [1][7] - The stability in net income was primarily due to higher net interest income, supported by steady loan growth and strong asset quality, although this was partially offset by increased provisions for credit losses and rising operational expenses [1][7] - The company is expected to continue focusing on operational efficiency through a 1% improvement initiative, despite anticipated impacts from securitization [1] Financial Metrics - The net interest margin for Q1 2025 was reported at 3.80%, an increase from 3.71% in Q4 2024 [7] - Gross loans reached $3.99 billion as of March 31, 2025 [7] - The efficiency ratio for the quarter was 61.23%, up from 58.80% in the previous quarter [7]

Third Coast Bancshares, Inc. (NASDAQ:TCBX) Q1 2025 Results Conference Call April 24, 2025 11:00 AM ET Company Participants Natalie Hairston - IR Bart Caraway - Chairman, President & Chief Executive Officer John McWhorter - Chief Financial Officer Audrey Duncan - Chief Credit Officer Conference Call Participants Woody Lay - KBW Bernard Von Gizycki - Deutsche Bank Michael Rose - Raymond James Matt Olney - Stephens Dave Storms - Stonegate Operator Greetings, and welcome to the Third Coast Bancshares First Quar ...

Financial Data and Key Metrics Changes - The company reported first quarter net income of $12.4 million, essentially flat compared to the fourth quarter of 2024, resulting in a return on assets (ROA) of 1.17% and a return on equity (ROE) of 12.4% [11] - Net interest income grew by 12.4% year-over-year but declined slightly from the fourth quarter due to a decrease in Fed funds sold and other interest-earning assets [12] - Non-interest expenses increased by 3.2% or $878,000 in the first quarter, and were up 8.5% or $2.2 million from the same quarter last year [12] - The net interest margin improved by nine basis points to 3.8% [9][12] Business Line Data and Key Metrics Changes - The company successfully executed a significant commercial real estate loan securitization, enhancing balance sheet management and generating fee income that will positively impact the net interest margin in the second quarter [6][7] - Loan growth in April was reported at over $50 million, indicating a positive trend following a modest growth in the first quarter [13][20] Market Data and Key Metrics Changes - Deposits declined by $62 million for the quarter, resulting in a loan-to-deposit ratio of 93.9% [12] - The company anticipates some seasonal roll-off in deposits, which typically occurs in the first quarter [20] Company Strategy and Development Direction - The company is focused on disciplined loan growth, robust credit management practices, and improving operational efficiencies to enhance shareholder value [5][6] - The management is evaluating additional securitizations as a tool to manage concentrations and support sustainable profitable growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's credit risk strategies and the overall economic outlook, noting that borrowers remain cautious but optimistic [28][29] - The company aims for $325 million in loan growth for the year, translating to an 8% annual run rate compared to the prior year [20] Other Important Information - The company achieved growth in book value and tangible book value of 4.4% and 4.7% respectively over the prior quarter, and 14.3% and 15.2% compared to the same period last year [9] - The management is considering a share buyback program due to capital accretion and the current stock price being attractive [13][55] Q&A Session Summary Question: Impact of securitization on net interest margin - Management confirmed that the securitization will primarily flow through the margin, providing a five basis point benefit for the next quarter [24] Question: Loan growth confidence amid macro uncertainty - Management indicated that the loan growth in April was primarily due to fundings on revolving lines rather than new deals, and expressed optimism about the pipeline [26][28] Question: Fee income increase drivers - The increase in fee income was attributed to the treasury management division, which has seen significant growth in recent years [34] Question: Expectations for non-interest expenses - Management expects non-interest expenses to remain flat in the second quarter, around $28 million [37] Question: Future loan growth expectations - Management remains confident in achieving the loan growth target of $325 million, despite potential fluctuations due to economic conditions [51]

Financial Data and Key Metrics Changes - The first quarter net income was $12.4 million, essentially flat compared to the fourth quarter of 2024, resulting in a return on assets (ROA) of 1.17% and a return on equity (ROE) of 12.4% [11] - Net interest income grew by 12.4% year-over-year but declined slightly from the previous quarter due to a decrease in Fed funds sold and other interest-earning assets [12] - Non-interest expenses increased by 3.2% or $878,000 in the first quarter, and were up 8.5% or $2.2 million compared to the same quarter last year [12] - The net interest margin improved by nine basis points to 3.8% [9][12] Business Line Data and Key Metrics Changes - The bank successfully executed a significant commercial real estate loan securitization, enhancing balance sheet management and generating fee income that will positively impact the net interest margin in the second quarter [7][8] - Loan growth in April was reported at over $50 million, with a quarterly average growth of $42.5 million [13] - Nonperforming loans declined by $9.3 million, improving the nonperforming loans to total loans ratio by 23 basis points from the prior quarter [15] Market Data and Key Metrics Changes - Deposits declined by $62 million for the quarter, resulting in a loan to deposit ratio of 93.9% [12] - The bank's investment securities increased by $13.4 million to $397 million, with an accumulated other comprehensive income (AOCI) gain of $10.3 million [12] Company Strategy and Development Direction - The company is focused on disciplined loan growth, robust credit management, and improving operational efficiencies while increasing shareholder value [6][9] - The management emphasized the importance of maintaining a healthy balance sheet and promoting long-term sustainable growth through proactive asset management strategies [8][20] - The bank is evaluating additional securitizations as a tool for managing concentrations and supporting sustainable profitable growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's credit risk strategies and the overall economic outlook, noting that borrowers remain cautious but optimistic [27][29] - The company anticipates achieving $325 million in loan growth for the year, translating to an 8% annual run rate compared to the prior year [19][49] - Management acknowledged the potential for rate cuts and their impact on loan growth and customer behavior [48][49] Other Important Information - The bank's book value and tangible book value grew by 4.4% and 4.7% respectively over the prior quarter, and by 14.3% and 15.2% compared to the same period last year [9] - The company is considering a share buyback program due to capital accretion and stock price levels [13][51] Q&A Session Summary Question: Impact of securitization on net interest margin - Management confirmed that the securitization will primarily impact the margin, providing a five basis point benefit for the next quarter [23] Question: Loan growth confidence amid macro uncertainty - Management indicated that the loan growth in April was primarily due to fundings on revolving lines rather than new deals, and expressed optimism about the pipeline [25][26] Question: Fee income increase drivers - The increase in fee income was attributed to the treasury management division, which has seen significant growth in recent years [32][33] Question: Expectations for non-interest expenses - Management expects non-interest expenses to remain flat in the second quarter, around $28 million [36] Question: Outlook on loan production yields and margin - Management anticipates a stable margin around 3.75% to 3.8%, with the potential for improvement depending on interest rate movements [40][42] Question: Consideration of share buybacks - Management is seriously considering a buyback program due to attractive stock levels and capital accretion [51][52]

Financial Performance - Year-over-year net income improved by 31% to $13.6 million for Q1 2025, with diluted EPS increasing by 28% to $0.78[2][9] - Net interest income for Q1 2025 was $42.797 million, compared to $38.079 million in Q1 2024, reflecting a year-over-year increase of 12.66%[39] - Net income for the three months ended March 31, 2025, was $13,589 thousand, slightly down from $13,733 thousand in the previous quarter[32] - Basic earnings per share for the three months ended March 31, 2025, were $0.90, compared to $0.92 for the previous quarter[32] - The diluted earnings per share for Q1 2025 was $0.78, compared to $0.63 in Q2 2024, marking a 23.81% increase[35] Asset and Loan Growth - Gross loans increased to $3.99 billion, a growth of $21.6 million or 0.5% from Q4 2024, and up 6.5% from $3.75 billion in Q1 2024[5][16] - Total loans increased to $3,988,039 thousand in Q1 2025, up from $3,966,425 thousand in Q4 2024, representing a growth of 0.03%[43] - Loans held for investment increased to $3,988,039 thousand as of March 31, 2025, compared to $3,966,425 thousand as of December 31, 2024, representing a growth of 0.5%[31] Asset Quality - Nonperforming loans decreased to $18.6 million, with a nonperforming loans to total loans ratio of 0.47% as of March 31, 2025[17][18] - Nonperforming loans decreased to $18,569 thousand in Q1 2025, down from $27,946 thousand in Q4 2024, a reduction of 33.6%[43] - Nonaccrual loans dropped to $17,066 thousand in Q1 2025, down from $26,773 thousand in Q4 2024, a decrease of 36.4%[43] - The allowance for credit losses to total loans remained stable at 1.01% in Q1 2025, consistent with Q4 2024[43] Deposits and Funding - Deposits totaled $4.25 billion, a decrease of 1.4% from $4.31 billion in Q4 2024, but an increase of 4.9% from $4.05 billion in Q1 2024[20] - Total deposits as of March 31, 2025, were $4,248,543 thousand, a decrease from $4,310,498 thousand as of December 31, 2024[31] - The average cost of deposits was 3.60%, down 23 basis points from Q4 2024 and 49 basis points from Q1 2024[21] Efficiency and Ratios - The efficiency ratio was 61.23%, compared to 58.80% in Q4 2024 and 64.11% in Q1 2024[15] - The efficiency ratio for Q1 2025 was 61.23%, slightly higher than 58.80% in Q4 2024, suggesting a need for cost management[35] - Total common equity to total assets ratio improved to 8.45% in Q1 2025 from 7.98% in Q4 2024, indicating stronger capital position[35] - Common equity tier 1 ratio to risk-weighted assets was 8.70% in Q1 2025, up from 8.41% in Q4 2024, indicating improved capital adequacy[35] Other Financial Metrics - Book value per share rose to $29.92, compared to $28.65 in Q4 2024 and $26.18 in Q1 2024[5][9] - Tangible common equity rose to $394,825 thousand in Q1 2025, compared to $375,718 thousand in Q4 2024, reflecting an increase of 5.4%[47] - Tangible book value per share improved to $28.56 in Q1 2025, up from $27.29 in Q4 2024, an increase of 4.7%[47] - Retained earnings increased to $134,115 thousand as of March 31, 2025, compared to $121,697 thousand as of December 31, 2024[31]

Year-over-Year Net Income Improved 31% and Diluted EPS increased 28% Net Interest Margin Expands to 3.80% and Book Value Per Share IncreasesHOUSTON, April 23, 2025 /PRNewswire/ -- Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank (the "Bank"), today reported its 2025 first quarter financial results.Year to Date Financial Highlights Return on average assets of 1.17% annualized for the first quarter of 2025 compared ...