#United States #Houston #Third Coast Bancshares #TCBX #Keystone Bancshares

Third Coast Bancshares, Inc. Reports Strong First Quarter Results for 2026

HOUSTON, April 22, 2026 – Third Coast Bancshares, Inc. (NYSE & NYSE Texas: TCBX) has disclosed its financial results for the first quarter of 2026, demonstrating robust growth and success following its merger with Keystone Bancshares, Inc. This strategic move, completed on February 1, 2026, significantly expanded Third Coast's assets and loan portfolio, providing a more robust foundation for future growth.

Key Highlights of Q1 2026

During this quarter, Third Coast Bancshares reported net income of $16.4 million, reflecting basic and diluted earnings per share of $1.03 and $0.88, respectively. This is compared to a net income of $17.9 million in the prior quarter, largely influenced by approximately $3.3 million in pre-tax adjustments related to the merger with Keystone. The return on average assets decreased to 1.08%, down from 1.36% in Q4 2025, while net interest margin for the quarter stood at 3.67%, lower than both the preceding quarter and the same quarter last year.

The completion of the merger contributed significantly to Third Coast's financial standing as it saw its loan portfolio grow to approximately $5.25 billion, an increase of 19.5% from the previous quarter. Total assets grew to about $6.58 billion, with total deposits reaching $5.72 billion.

Financial Operations Breakdown

Income and Expenses

Noninterest income decreased slightly to $4.0 million during the first quarter from $4.3 million the previous quarter, primarily due to reduced non-margin loan fees. However, noninterest expenses escalated to $38.1 million, reflecting costs associated with the merger. This led to an efficiency ratio of 66.06%, significantly higher than the 57.90% reported in Q4 2025.

Despite the rise in expenses due to merger costs, Third Coast remains optimistic about its strategic path. Bart Caraway, Founder and CEO, emphasized the importance of building deeper client relationships and leveraging their expanded operational capabilities to drive sustainable growth and increase shareholder value.

Asset Quality and Allowances

As for asset quality, nonperforming loans increased to $35.6 million, marking a rise from $21.5 million at the end of the previous quarter. The increase was attributed to one significant loan placed on nonaccrual. Moreover, the allowance for credit losses was approximately 0.98% of total loans outstanding, ensuring that the bank remains well-positioned to handle any future credit risks.

Future Outlook

Going forward, Third Coast Bancshares is focused on optimizing its lending processes and increasing market penetration across its operating regions: Greater Houston, Dallas-Fort Worth, Austin, and San Antonio. The management is keen on executing the strategic goals that arise from the merger, eyeing long-term growth.

Additionally, they will hold a conference call on April 23, 2026, at 11:00 AM ET to further discuss these financial results and future strategies. This will provide an insight into the bank's performance and strategic direction post-merger, reflecting its commitment to transparency and stakeholder engagement.

In conclusion, Third Coast Bancshares, Inc. is optimistic about its trajectory after a productive first quarter in 2026 and views the recent merger as a pivotal step towards a sustainable and prosperous future.