Third st Bancshares(TCBX) - 2024 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2024 was $10.4 million, or $0.68 and $0.61 per basic and diluted share, respectively, compared to $9.7 million, or $0.62 and $0.57 per share in Q4 2023[4] - Net income for the first quarter of 2024 was $10,367 thousand, up from $9,689 thousand in the previous quarter, marking a growth of 6.98%[26] - Net income available to common shareholders was $9,196,000 for the three months ended September 2024, an increase of 8.3% from $8,492,000 in June 2024[40] - Return on average common equity improved to 10.44% in Q1 2024, compared to 9.86% in Q4 2023[28] - Return on average common equity improved to 10.44% in September 2024, up from 9.86% in June 2024[40] Asset Growth - Total assets reached a record $4.66 billion, an increase of $264.3 million or 6.0% from $4.40 billion as of December 31, 2023[4] - Total assets increased to $4,660,403 thousand as of March 31, 2024, up from $4,396,074 thousand at December 31, 2023, representing a growth of 5.98%[24] - Total assets grew to $4,660,403,000 in September 2024, compared to $4,396,074,000 in June 2024, indicating an increase of 6.0%[40] Loan and Deposit Growth - Gross loans grew by $107.4 million to $3.75 billion, representing a 3.0% increase from $3.64 billion as of December 31, 2023[4] - Deposits increased by $247.5 million to $4.05 billion, a 6.5% rise from $3.80 billion as of December 31, 2023[4] - Total deposits rose to $4,050,672 thousand as of March 31, 2024, compared to $3,803,148 thousand at December 31, 2023, an increase of 6.50%[24] - Loans held for investment reached $3,746,178 thousand as of March 31, 2024, up from $3,638,788 thousand at December 31, 2023, indicating a growth of 2.97%[24] - Commercial and industrial loans increased to $1,350,289 thousand, up from $1,263,077 thousand, marking a growth of 6.9%[36] - Residential loans rose to $345,890 thousand, compared to $342,589 thousand in the previous quarter, reflecting a growth of 1.1%[36] Income and Expense Metrics - Noninterest income totaled $2.3 million, up from $2.2 million in Q4 2023 and $1.9 million in Q1 2023[9] - Noninterest income totaled $2,343 thousand for the first quarter of 2024, compared to $2,157 thousand in the previous quarter, an increase of 8.63%[26] - Noninterest expense decreased to $25.9 million from $26.4 million in Q4 2023, but increased from $22.0 million in Q1 2023[10] - The efficiency ratio improved to 64.11% from 66.89% in Q4 2023[11] - Efficiency ratio improved to 64.11% in Q1 2024, down from 66.89% in Q4 2023[28] Credit Quality - The provision for credit loss was $1.6 million, with an allowance for credit losses of $38.1 million, representing 1.02% of gross loans[14] - Provision for credit losses was $1,560 thousand for the first quarter of 2024, compared to $1,100 thousand in the previous quarter, reflecting an increase of 41.82%[26] - Nonperforming loans increased to $21,744 thousand, up from $17,319 thousand in the previous quarter, indicating a rise of 25.5%[36] - Nonperforming assets to total assets ratio rose to 0.47% from 0.39% in the previous quarter, reflecting a deterioration in asset quality[36] - QTD net charge-offs were $742 thousand, a decrease from $1,505 thousand in the previous quarter, showing an improvement in credit quality[36] - The allowance for credit losses to total loans ratio remained stable at 1.02% compared to the previous quarter[36] Capital and Equity - Common equity tier 1 capital ratio was 12.32% as of March 31, 2024, consistent with 12.52% in Q4 2023[32] - Total capital to risk-weighted assets ratio was 12.41% as of March 31, 2024, down from 12.66% in Q4 2023[28] - Total liabilities increased to $4,236,785 thousand as of March 31, 2024, from $3,984,100 thousand at December 31, 2023, reflecting a growth of 6.32%[24] - Retained earnings grew to $87,971 thousand as of March 31, 2024, compared to $78,775 thousand at December 31, 2023, an increase of 11.43%[24] - Total shareholders' equity increased to $423,618,000 in September 2024 from $411,974,000 in June 2024, representing a growth of 2.9%[40] - Tangible common equity rose to $338,430,000 in September 2024, up from $326,746,000 in June 2024, marking an increase of 3.1%[40] - Average tangible common equity increased to $335,434,000 in September 2024 from $322,720,000 in June 2024, a rise of 3.5%[40] Market Expansion - The company opened its 17th location in April 2024 in Austin, Texas, as part of its market expansion strategy[4] Non-GAAP Measures - The company emphasizes the importance of non-GAAP financial measures for investors to understand the financial condition, particularly tangible common equity and tangible book value per share[39] - Tangible common equity measures are being utilized for internal planning, with a focus on tangible book value per share and return on average tangible common equity[39]