Third Coast Bancshares Reports Strong Growth in Q1 2025 Financial Results

Financial Performance Overview of Third Coast Bancshares, Inc. for Q1 2025

HOUSTON, April 23, 2025 – Third Coast Bancshares, Inc. (NASDAQ: TCBX), the holding company for Third Coast Bank, has announced its financial results for the first quarter of 2025, reporting robust performance metrics illustrating its continuous growth and stable operational health in the competitive Texas banking environment.

Key Financial Highlights

In the first quarter of 2025, Third Coast Bancshares demonstrated a year-over-year net income increase of 31%, totaling $13.6 million. The diluted earnings per share also saw a significant jump of 28%, arriving at $0.78. The company's net interest margin expanded to 3.80%, showcasing effective management of interest income and costs.

The balance sheet also exhibited strength, with gross loans increasing $21.6 million quarter-over-quarter, reaching $3.99 billion as of March 31, 2025. This rise is credited mainly to growth in commercial and industrial loan segments, while overall asset quality significantly improved, as evidenced by a reduction in nonperforming loans.

Alongside revenue growth, the book value per share increased to $29.92, an upward trend underscoring the bank's solid equity position. Contributing to this financial resilience was a successful $200 million commercial real estate loan securitization concluded on April 1, 2025, which reduced risk-weighted assets and enhanced overall capital ratios.

Operational Insights

Chairperson and CEO Bart Caraway expressed satisfaction with the results, stating, “We delivered a solid first quarter, marked by continuous expansion in our net interest margin. The improved asset quality reflects our commitment to prudent credit risk management and efficient deposit cost management.”

The net interest income totaled $42.8 million, slightly down from $43.4 million in the previous quarter, yet up nearly 12.4% compared to the $38.1 million earned in Q1 2024. A noteworthy aspect of these results was a decrease in the cost of interest-bearing deposits, averaging 4.02% for the current quarter compared to 4.33% in the previous quarter.

Third Coast's noninterest income also saw an increase, amounting to $3.1 million, driven by higher service charges and fees. Noninterest expenses rose to $28.1 million, primarily due to increased staffing costs as the bank expanded its workforce to support growth.

Future Directions

Caraway underlined the bank’s strategic plans, stating, “The recent securitization, alongside our robust capital base and improved asset quality, positions us strongly for competitive growth. We are optimistic about sustaining our momentum while managing risk prudently.”

Looking ahead, Third Coast Bancshares plans to continue its trajectory by strategically enhancing its loan offerings while maintaining a balanced risk profile, especially in the dynamic commercial real estate market.

Conclusion

The first quarter results of Third Coast Bancshares signal a favorable outlook amid a challenging economic landscape. The company's solid performance metrics reflect its operating efficiency, effective management strategies, and commitment to growth, making it well-equipped to meet future challenges and opportunities in the Texas banking sector. For more information on Third Coast Bancshares and its offerings, visit Third Coast Bank's website.