Stonegate Updates Coverage on Third Coast Bancshares, Inc. (TCBX) Q1 2025

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]