Financial Data and Key Metrics Changes - The company reported its Q4 and full year 2024 results during the conference call, indicating a focus on financial performance [2] - Specific financial metrics and changes were not detailed in the provided content [3] Business Line Data and Key Metrics Changes - No specific data or changes regarding individual business lines were mentioned in the provided content [3] Market Data and Key Metrics Changes - The conference call did not provide specific market data or changes in key metrics [3] Company Strategy and Development Direction and Industry Competition - The management team, including the CEO and CFO, was present to discuss the company's strategic direction, although specific strategies were not detailed in the provided content [2] Management's Comments on Operating Environment and Future Outlook - Management's comments included a reminder that the information discussed was as of January 23, 2025, and may not be accurate for future reference [3] Other Important Information - The call included housekeeping items such as the availability of a replay of the call and a reminder about forward-looking statements [2][3] Q&A Session All Questions and Answers Question: Inquiry about financial performance - Specific questions regarding financial performance were not included in the provided content [3]

Group 1: Earnings Performance - Third Coast Bancshares reported quarterly earnings of $0.79 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, and up from $0.57 per share a year ago, representing an earnings surprise of 14.49% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] - The revenue for the quarter ended December 2024 was $46.31 million, surpassing the Zacks Consensus Estimate by 6.43%, compared to $39.49 million in the same quarter last year [2] Group 2: Stock Performance and Outlook - Third Coast Bancshares shares have declined approximately 1% since the beginning of the year, while the S&P 500 has gained 2.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.68 on revenues of $44.1 million, and for the current fiscal year, it is $2.78 on revenues of $179.36 million [7] - The Zacks Industry Rank for Banks - Southeast is in the top 24% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] Group 3: Estimate Revisions and Future Expectations - The estimate revisions trend for Third Coast Bancshares is mixed, leading to a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for Q4 2024 totaled $13.7 million, an increase from $12.8 million in Q3 2024 and $9.7 million in Q4 2023[4] - Net interest income reached $43.4 million, up 7.6% from $40.4 million in Q3 2024 and 16.4% from $37.3 million in Q4 2023[10] - Noninterest income totaled $10,621,000 for the year ended December 31, 2024, up from $8,205,000 in 2023, representing a growth of 29.4%[29] - Net income available to common shareholders for the year ended December 31, 2024, was $42,922,000, compared to $28,665,000 in 2023, indicating a year-over-year increase of 49.8%[29] - Basic earnings per share for the year ended December 31, 2024, was $3.14, up from $2.11 in 2023, marking a significant increase of 48.8%[29] - Basic earnings per share increased to $0.92 for the three months ended December 31, 2024, compared to $0.85 for the same period in 2023, representing a growth of 8.24%[32] - The diluted earnings per share for the quarter was $0.79, an increase from $0.74 in the same quarter of 2023, reflecting a growth of 6.76%[32] - Net income for the three months ended December 31, 2024, was $13,733,000, compared to $12,775,000 in the previous quarter, indicating a quarter-over-quarter increase of 7.5%[29] Asset and Liability Growth - Total assets increased by $546.4 million to $4.94 billion, representing a 12.4% growth year-over-year[4] - Total assets reached $4,942,446 thousand as of December 31, 2024, up from $4,627,770 thousand in the previous quarter, representing a growth of 6.78%[27] - Total liabilities increased to $4,481,727 thousand, up from $4,177,222 thousand, reflecting a growth of 7.27%[27] - Total liabilities increased to $4,354.8 million as of December 31, 2024, from $4,023.8 million as of September 30, 2024, reflecting a growth of 8.2%[36] - Shareholders' equity grew to $460,719 thousand, up from $450,548 thousand, marking a 0.26% increase[27] - Shareholders' equity rose to $460.2 million as of December 31, 2024, compared to $446.1 million as of September 30, 2024, indicating an increase of 3.4%[36] Loan and Deposit Activity - Gross loans grew by $327.6 million to $3.97 billion, a 9.0% increase compared to $3.64 billion as of December 31, 2023[4] - Deposits rose by $507.4 million to $4.31 billion, reflecting a 13.3% increase from $3.80 billion as of December 31, 2023[10] - Total loans increased to $3,966,425 thousand in Q4 2024, up from $3,889,831 thousand in Q3 2024, representing a growth of 2.97%[43] - Nonperforming loans increased to $27.9 million, with a nonperforming loans to total loans ratio of 0.70% as of December 31, 2024[15] - Nonperforming loans rose to $27,946 thousand in Q4 2024, compared to $24,044 thousand in Q3 2024, indicating an increase of 12.06%[43] - Noninterest bearing deposits increased to $602,082 thousand, a significant rise of 22.91% from $489,822 thousand[27] - Interest bearing deposits also saw an increase to $3,708,416 thousand, up 5.8% from $3,504,616 thousand[27] Efficiency and Ratios - The efficiency ratio improved to 58.80% for Q4 2024, down from 59.57% in Q3 2024 and 66.89% in Q4 2023[13] - Return on average assets was 1.13% for the quarter ended December 31, 2024, slightly down from 1.14% in the previous year[32] - Return on average common equity improved to 12.66% in Q4 2024, up from 12.12% in Q4 2023, indicating a year-over-year increase of 4.46%[32] - Total capital to risk-weighted assets ratio was 12.68% as of December 31, 2024, slightly down from 12.80% in the previous year[32] - The allowance for credit losses was $40,304 thousand, slightly up from $39,683 thousand in the previous quarter[27] - The allowance for loan losses increased to $39.9 million as of December 31, 2024, from $38.4 million as of September 30, 2024[36] Future Outlook and Strategic Initiatives - The company opened three de novo branches in Austin, The Woodlands, and Houston, Texas[10] - Looking ahead, the company aims to sustain momentum by innovating and adapting to evolving market conditions[6] - Tangible Common Equity and related non-GAAP measures are used for internal planning and forecasting purposes, highlighting the company's focus on tangible financial metrics[44] - The company emphasizes the importance of understanding non-GAAP financial measures in comparison to GAAP measures for a clearer financial condition assessment[45]

Core Insights - Third Coast Bancshares, Inc. reported a year-over-year growth in Book Value of 12.8% and Tangible Book Value of 13.6% for 2024 [1] Financial Highlights - For Q4 2024, net income was $13.7 million, up from $12.8 million in Q3 2024 and $9.7 million in Q4 2023 [6][8] - Basic and diluted earnings per share for Q4 2024 were $0.92 and $0.79, respectively, compared to $0.85 and $0.74 in Q3 2024 and $0.62 and $0.57 in Q4 2023 [7][8] - Net interest income for Q4 2024 was $43.4 million, a 7.6% increase from $40.4 million in Q3 2024 and a 16.4% increase from $37.3 million in Q4 2023 [10] - Total assets increased by $546.4 million to $4.94 billion, representing a 12.4% growth year-over-year [8] - Deposits rose by $507.4 million to $4.31 billion, a 13.3% increase from $3.80 billion as of December 31, 2023 [8] Operational Metrics - The efficiency ratio improved to 58.80% in Q4 2024 from 59.57% in Q3 2024 and 66.89% in Q4 2023 [13] - Return on average assets was 1.13% annualized for Q4 2024, compared to 1.14% in Q3 2024 and 0.90% in Q4 2023 [8][27] - The net interest margin for Q4 2024 was 3.71%, slightly down from 3.73% in Q3 2024 but up from 3.61% in Q4 2023 [9][27] Loan and Deposit Composition - Gross loans increased to $3.97 billion, up $76.6 million or 2.0% from Q3 2024 and $327.6 million or 9.0% from Q4 2023 [14] - Noninterest-bearing demand deposits increased to $602.1 million, representing 14.0% of total deposits as of December 31, 2024 [17] - The average cost of deposits decreased to 3.83% for Q4 2024, down 35 basis points from Q3 2024 [18] Asset Quality - Nonperforming loans increased to $27.9 million, with a nonperforming loans to total loans ratio of 0.70% as of December 31, 2024 [15][16] - The provision for credit loss for Q4 2024 was $1.2 million, with an allowance for credit losses of $40.3 million, representing 1.02% of gross loans [16]

Core Points - Third Coast Bancshares, Inc. will report its 2024 fourth quarter and full year financial results on January 22, 2025, after market close [1] - A conference call and webcast to discuss these financial results is scheduled for January 23, 2025, at 11:00 a.m. Eastern Time [1][2] - The company operates primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank [3] Company Overview - Third Coast Bancshares, Inc. is a Texas-based bank holding company founded in 2008, with operations through 19 branches in the four largest metropolitan areas in Texas [3] - The company focuses on commercial banking services [3]

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Third Coast Bancshares, Inc. (TCBX) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings est ...

Have you been paying attention to shares of Third Coast Bancshares, Inc. (TCBX) ? Shares have been on the move with the stock up 22.5% over the past month. The stock hit a new 52-week high of $33.42 in the previous session. Third Coast Bancshares, Inc. has gained 65.1% since the start of the year compared to the 20.6% move for the Zacks Finance sector and the 16.5% return for the Zacks Banks - Southeast industry. What's Driving the Outperformance? The stock has an impressive record of positive earnings surp ...

Third Coast Bancshares, Inc. (TCBX) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 39.62%. A quarter ago, it was expected that this company would post earnings of $0.55 per share when it actually produced earnings of $0.63, delivering a surprise of 14.55%.Over the last four quarters, ...

[Q3 2024 Financial and Operational Highlights](index=1&type=section&id=Q3_2024_Financial_and_Operational_Highlights) Third Coast Bancshares achieved record Q3 2024 earnings, driven by **$12.8 million** net income, **$0.74** diluted EPS, and improved efficiency Q3 2024 Key Performance Indicators | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Net Income | $12.8 million | $10.8 million | $5.6 million | | Diluted EPS | $0.74 | $0.63 | $0.32 | | Basic EPS | $0.85 | $0.70 | $0.32 | | Return on Average Assets (annualized) | 1.14% | 0.97% | 0.56% | | Efficiency Ratio | 59.57% | 61.39% | 74.07% | - Gross loans grew by **$131.7 million**, or **3.5%**, to **$3.89 billion** compared to Q2 2024[3](index=3&type=chunk) - Noninterest-bearing demand deposits increased by **$25.3 million**, or **5.5%**, representing **12.3%** of total deposits[3](index=3&type=chunk) - The company opened its **19th branch**, a de novo location in Houston, Texas, continuing its expansion[4](index=4&type=chunk) [Operating Results](index=2&type=section&id=Operating_Results) Operating results for Q3 2024 showed a **3.9%** sequential increase in net interest income to **$40.4 million**, improving net income and efficiency [Net Income and Earnings Per Share](index=2&type=section&id=Net_Income_and_Earnings_Per_Share) Q3 2024 net income reached **$12.8 million**, a significant increase from prior periods, resulting in diluted EPS of **$0.74** Net Income and EPS Comparison | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Net Income | $12.8 million | $10.8 million | $5.6 million | | Net Income Available to Common Shareholders | $11.6 million | $9.6 million | $4.4 million | | Basic EPS | $0.85 | $0.70 | $0.32 | | Diluted EPS | $0.74 | $0.63 | $0.32 | [Net Interest Margin and Net Interest Income](index=2&type=section&id=Net_Interest_Margin_and_Net_Interest_Income) Net interest income increased to **$40.4 million** in Q3 2024, with net interest margin expanding to **3.73%** due to higher loan yields Net Interest Income and Margin Analysis | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Net Interest Income | $40.4 million | $38.9 million | $35.3 million | | Net Interest Margin | 3.73% | 3.62% | 3.71% | | Yield on Loans | 7.90% | 7.86% | 7.57% | - The increase in net interest income was driven by a **$2.4 million** (**3.2%**) quarter-over-quarter increase in interest and fees on loans[8](index=8&type=chunk) [Noninterest Income and Noninterest Expense](index=2&type=section&id=Noninterest_Income_and_Noninterest_Expense) Noninterest income decreased to **$2.5 million** in Q3 2024, while stable noninterest expense led to an improved efficiency ratio of **59.57%** Noninterest Income and Expense Summary | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Noninterest Income | $2.5 million | $2.9 million | $1.9 million | | Noninterest Expense | $25.6 million | $25.6 million | $27.5 million | | Efficiency Ratio | 59.57% | 61.39% | 74.07% | [Balance Sheet Highlights](index=2&type=section&id=Balance_Sheet_Highlights) The balance sheet showed healthy Q3 2024 growth, with gross loans up **3.5%** to **$3.89 billion** and total deposits up **3.6%** [Loan Portfolio and Composition](index=2&type=section&id=Loan_Portfolio_and_Composition) Gross loans increased by **$131.7 million** (**3.5%**) to **$3.89 billion**, driven by commercial and industrial and real estate loans Loan Portfolio Growth | Date | Gross Loans | QoQ Growth | YoY Growth | | :--- | :--- | :--- | :--- | | Sep 30, 2024 | $3.89 billion | 3.5% | 9.3% | | Jun 30, 2024 | $3.76 billion | - | - | | Sep 30, 2023 | $3.56 billion | - | - | [Asset Quality](index=3&type=section&id=Asset_Quality) Asset quality remained stable in Q3 2024, with nonperforming loans at **$24.0 million** and the ratio to total loans improving to **0.62%** Key Asset Quality Metrics | Metric | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | | Nonperforming Loans | $24.0 million | $24.4 million | | Nonperforming Loans to Total Loans | 0.62% | 0.65% | | Allowance for Credit Losses | $39.7 million | $38.2 million | | Allowance to Gross Loans | 1.02% | 1.02% | | Provision for Credit Loss (Q3) | $1.1 million | - | - The company recorded net recoveries of **$57,000** for Q3 2024, compared to net charge-offs of **$24,000** in Q3 2023[10](index=10&type=chunk) [Deposits and Composition](index=3&type=section&id=Deposits_and_Composition) Total deposits grew **3.6%** to **$3.99 billion**, with noninterest-bearing deposits increasing **5.5%** to **$489.8 million** Deposit Composition and Cost | Metric | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | | Total Deposits | $3.99 billion | $3.86 billion | | Noninterest-bearing Deposits | $489.8 million | $464.5 million | | % of Noninterest-bearing | 12.3% | 12.0% | | Average Cost of Deposits (Q3) | 4.18% | 4.22% | [Financial Tables](index=4&type=section&id=Financial_Tables) This section provides detailed unaudited financial statements, including consolidated balance sheets, income statements, and key performance metrics [Consolidated Balance Sheets](index=5&type=section&id=Consolidated_Balance_Sheets) As of September 30, 2024, total assets reached **$4.63 billion**, driven by increased net loans and deposits, with equity at **$450.5 million** Selected Balance Sheet Data (in thousands) | Account | Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | :--- | | Total Assets | $4,627,770 | $4,474,119 | $4,215,792 | | Loans, net | $3,850,148 | $3,719,948 | $3,521,886 | | Total Deposits | $3,994,438 | $3,855,591 | $3,646,822 | | Total Liabilities | $4,177,222 | $4,039,121 | $3,815,461 | | Total Shareholders' Equity | $450,548 | $434,998 | $400,331 | [Consolidated Statements of Income](index=6&type=section&id=Consolidated_Statements_of_Income) Q3 2024 consolidated statements show **$40.4 million** net interest income, **$1.1 million** provision for credit losses, and **$12.8 million** net income Selected Income Statement Data (Q3 2024, in thousands) | Account | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Net Interest Income | $40,383 | $38,858 | $35,268 | | Provision for Credit Losses | $1,085 | $1,900 | $2,620 | | Total Noninterest Income | $2,517 | $2,888 | $1,866 | | Total Noninterest Expense | $25,554 | $25,629 | $27,505 | | Net Income | $12,775 | $10,796 | $5,578 | [Loan Portfolio and Asset Quality Details](index=10&type=section&id=Loan_Portfolio_and_Asset_Quality_Details) The **$3.89 billion** loan portfolio as of September 30, 2024, was led by Commercial & Industrial loans, with stable asset quality metrics Period-end Loan Portfolio (in thousands) | Loan Category | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | | Commercial & industrial | $1,499,302 | $1,361,401 | | Construction, development & other | $825,302 | $756,646 | | Non-farm non-residential (non-owner) | $611,617 | $612,268 | | Non-farm non-residential (owner occupied) | $470,222 | $499,941 | | Total Loans | $3,889,831 | $3,758,159 | Asset Quality Ratios | Ratio | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | | Nonperforming assets to total assets | 0.53% | 0.55% | | Nonperforming loans to total loans | 0.62% | 0.65% | | Allowance for credit losses to total loans | 1.02% | 1.02% | [Non-GAAP Financial Measures](index=11&type=section&id=Non-GAAP_Financial_Measures) The company provides non-GAAP measures like Tangible Book Value Per Share, which increased to **$26.75** in Q3 2024 - Management uses non-GAAP measures like Tangible Common Equity and Tangible Book Value Per Share for internal planning and forecasting[23](index=23&type=chunk) Tangible Book Value Per Share Reconciliation | Metric | Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | :--- | | Book Value Per Share (GAAP) | $28.13 | $26.99 | $24.57 | | Tangible Book Value Per Share (Non-GAAP) | $26.75 | $25.60 | $23.17 | Return on Equity Reconciliation (Annualized) | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Return on Average Common Equity (GAAP) | 12.12% | 10.53% | 5.19% | | Return on Average Tangible Common Equity (Non-GAAP) | 12.76% | 11.10% | 5.50% |