Third st Bancshares(TCBX) - 2024 Q4 - Annual Results

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]