Third Coast Bancshares Reports Strong Second Quarter Financial Performance for 2025
Third Coast Bancshares Reports Strong Second Quarter Financial Performance for 2025
HOUSTON, July 23, 2025 – Third Coast Bancshares, Inc. (NASDAQ: TCBX), the parent company of Third Coast Bank, has released its financial results for the second quarter of 2025, revealing impressive growth across several key metrics.
During this quarter, the company achieved a record earnings per share (EPS) of $1.12 on a basic basis and $0.96 on a diluted basis. This represents a significant increase compared to $0.90 and $0.78 in the first quarter of the year and $0.70 and $0.63 in the same quarter last year. The net income for the second quarter totaled $16.7 million, showcasing a notable rise from the previous quarter's net income of $13.6 million and from $10.8 million a year ago.
Year-to-Date Financial Highlights
- - Return on Average Assets: Reached 1.38% annualized for this quarter, marking an improvement from 1.17% in Q1 2025 and 0.97% in Q2 2024.
- - Net Interest Margin: Increased to 4.22%, up from 3.80% in Q1 2025 and 3.62% in Q2 2024.
- - Gross Loans: Grew to $4.08 billion as of June 30, 2025, a rise from $3.99 billion on March 31, 2025.
Bart Caraway, Founder, Chairman, and CEO of Third Coast, expressed his optimism about the results: "This marks a record-breaking quarter for us, with a strong year-over-year performance. We've consistently improved our profitability, as reflected in our significant net interest income growth of 15.4% quarter-over-quarter and 27.1% year-over-year. The journey since our IPO in November 2021 has been remarkable, with our total assets nearly doubling."
Operational Efficiency and Growth
Third Coast Bancshares showed noteworthy improvements in its efficiency ratio, aiming for operational effectiveness. The efficiency ratio decreased from 61.23% in the first quarter to 55.45% in the second quarter, providing insights into the bank's cost management strategies.
In addition to robust earnings, the bank completed two securitizations totaling $250 million in commercial real estate loans during this quarter, illustrating its proactive approach to leverage market opportunities.
Strategic Expansion and Future Outlook
Looking ahead, Caraway stated, "Our execution abilities and strong Texas-based franchise put us on a solid path to continuously perform well within the banking industry. Our adeptness at attracting long-term investors and fostering relationships will be crucial as consolidation within the industry persists."
Despite taking on new loans, the bank maintained a commitment to asset quality, with nonperforming loans totaling $20.1 million as of the end of June. This was an increase from $18.6 million at the end of March, indicating the bank's proactive stance on credit management.
Deposits also saw an increase, totaling $4.28 billion, representing an 11% rise from $3.86 billion a year earlier. This solid growth further supports the bank's commendable balance sheet as it navigates through the evolving economic landscape.
Earnings Conference Call Information
Third Coast Bancshares has scheduled a conference call for July 24, 2025, at 11:00 AM ET to discuss its second-quarter financial results in detail. Interested parties may dial 201-389-0869 to participate or access the call via the company's investor relations website. The replay will be available until the end of July 31, 2025.
For more information about Third Coast Bancshares, visit www.thirdcoast.bank.
In summary, Third Coast Bancshares, Inc.’s impressive financial results from the second quarter of 2025 underscore its ongoing growth trajectory, focusing on enhancing shareholder value while exploring new avenues for expansion in a competitive industry.
Topics Financial Services & Investing）
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