Continued progress results in 1.02% ROAA on
improved margins
HOUSTON, April 26,
2023 /PRNewswire/ -- Third Coast Bancshares,
Inc. (NASDAQ: TCBX) (the "Company," "Third Coast," "we," "us,"
or "our"), the bank holding company for Third Coast Bank, SSB,
today reported its 2023 first quarter financial results.
2023 First Quarter Financial Highlights
- Loans held for investment grew $105.8
million to $3.21 billion, or
3.4%, over the $3.11 billion reported
as of December 31, 2022 and 31.3%
over the $2.45 billion reported as of
March 31, 2022.
- Deposits reached $3.32 billion,
an increase of $86.4 million, or
2.7%, over the $3.24 billion reported
as of December 31, 2022 and 28.4%
over the $2.59 billion reported as of
March 31, 2022. Noninterest-bearing
deposits represented 15.6% of total deposits compared to 15.0% as
of December 31, 2022.
- Total assets reached $3.86
billion, an increase of $86.5
million, or 2.3%, over the $3.77
billion reported as of December 31,
2022 and 26.9% over the $3.04
billion reported as of March 31,
2022.
- Net income for the first quarter of 2023 totaled $9.2 million compared to $7.5 million for the fourth quarter of 2022 and
$2.1 million for the first quarter of
2022.
- Book value per share and tangible book value per
share(1) increased to $23.63 and $22.22,
respectively, as of March 31, 2023
compared to $23.32 and $21.90, respectively, as of December 31, 2022 and to $22.40 and $20.97,
respectively, as of March 31,
2022.
- Return on average assets increased to 1.02% annualized for the
first quarter of 2023 compared to 0.84% annualized for the fourth
quarter of 2022 and 0.32% annualized for the first quarter of
2022.
"Third Coast's first quarter performance underscores the many
positive trends from the preceding fourth quarter," said,
Bart Caraway, Third Coast's
Chairman, President and Chief Executive Officer. "The industry wide
liquidity crisis gave us the opportunity to reach out to both
customers and prospects, which resulted in deposit growth of
$86.4 million for the quarter with
$30.8 million being noninterest
bearing demand. We had no need to take on brokered deposits, or
public funds. At March 31, 2023, our
uninsured deposits were $932 million,
or 28% of total deposits, well below industry average.
_____________________________
|
(1)
Non-GAAP financial measure. Please refer to the table titled
"GAAP Reconciliation and Management's Explanation of Non-GAAP
Financial Measures" at the end of this press release for a
reconciliation of these non-GAAP financial measures.
|
|
"While no one is immune from market headwinds, Third Coast is
well positioned and is focused on improving performance. For the
quarter our net interest margin improved 4 basis points to 3.79%
and our noninterest expense was down $583,000. Non-performing assets declined 16.3%
and we delivered net recoveries of $364,000. We were especially pleased to report
$9.2 million in net income, or
$0.55 per diluted share, in the
quarter, representing a 25% increase from the sequential fourth
quarter.
"As we start the second quarter, we are optimistic regarding our
deposit opportunities. We expect another quarter of similar loan
growth as we navigate an increasingly uncertain environment. We
also expect our net interest margin to continue to improve in the
second quarter due to a recently purchased pay fixed SWAP. We will
continue to be prudent in our lending practices from a risk return
standpoint, conservative in our expenditures, and poised and ready
to take advantage of future growth opportunities," Caraway
concluded.
Loan Portfolio and Composition
For the quarter ended March 31,
2023, gross loans increased to $3.21
billion, an increase of $105.8
million, or 3.4%, from $3.11
billion as of December 31, 2022, and an increase of
$765.4 million, or 31.3%, from
$2.45 billion as of March 31,
2022. We believe the loan growth was well diversified with real
estate loans up $57.2 million and
commercial loans up $53.7 million
from December 31, 2022.
Asset Quality
Asset quality improved during the first quarter of 2023 with
non-performing assets decreasing to $10.3 million as of March 31, 2023, or
16.3%, from $12.3 million as of
December 31, 2022. On January 1,
2023, the Company adopted ASU 2016-13 Financial Instruments
– Credit Losses (Topic 326): Measurement of Credit Losses on
Financial Instruments ("ASC 326"), such that the allowance
calculation is based on current expected credit loss methodology
("CECL") and recorded an increase of $4.0
million to the allowance for credit losses for the
cumulative effect of adopting ASC 326 for its loans held for
investment portfolio. In addition, the provision for credit
loss recorded for the first quarter of 2023 was $1.2 million and related to provisioning for new
loans. The entries combined served to increase the allowance to
$35.9 million, or 1.12% of the
$3.21 billion in gross loans
outstanding as of March 31, 2023.
As of March 31, 2023, the nonperforming loans to loans held
for investment ratio remained low at 0.32%, a decrease from 0.39%
as of December 31, 2022 and 0.44% as of March 31, 2022.
During the three months ended March 31, 2023 and 2022, the
Company recorded net recoveries of $364,000 and $17,000, respectively.
Deposits and Composition
Deposits totaled $3.32 billion as
of March 31, 2023, an increase of 2.7% from $3.24 billion as of December 31, 2022, and
an increase of 28.4% from $2.59
billion as of March 31, 2022. Noninterest-bearing
demand deposits increased from $486.1
million as of December 31, 2022 to $516.9 million as of March 31, 2023.
Noninterest-bearing demand deposits represented 15.6% of total
deposits as of March 31, 2023, up from 15.0% of total
deposits as of December 31, 2022. As of March 31, 2023,
interest-bearing demand deposits increased $32.0 million, or 1.3%, time deposits increased
$23.1 million, or 10.7%, and savings
accounts increased $525,000, or 1.5%,
from December 31, 2022.
The average cost of deposits was 2.92% for the first quarter of
2023, representing a 75 basis point increase from the fourth
quarter of 2022 and a 259 basis point increase from the first
quarter of 2022 due primarily to the increase in rates paid on
interest-bearing demand deposits.
Net Interest Margin and Net Interest Income
The net interest margin for the first quarter of 2023 was 3.79%
compared to 3.75% for the fourth quarter of 2022 and 4.09% for the
first quarter of 2022. The yield on loans for the first quarter of
2023 was 6.90% compared to 6.27% for the fourth quarter of 2022 and
4.90% for the first quarter of 2022. The increase in yield on loans
during the first quarter of 2023 was primarily due to the increase
in the Prime Rate.
Net interest income totaled $32.8
million for the first quarter of 2023, an increase of 2.1%
from $32.2 million for the fourth
quarter of 2022. Interest income totaled $57.4 million for the first quarter of 2023, an
increase of 12.2% from $51.2 million
for the fourth quarter of 2022. Interest and fees on loans
increased $5.8 million, or 12.1%,
compared to the fourth quarter of 2022, and increased $27.2 million, or 102.1%, from the first quarter
of 2022. Interest expense was $24.5
million for the first quarter of 2023, an increase of
$5.5 million, or 29.2% from
$19.0 million for the fourth quarter
of 2022 and an increase of $22.6
million, or 1,143.6%, from $2.0
million for the first quarter of 2022. The increase in
interest expense was primarily due to interest-bearing deposit
growth and increases in interest rates paid on interest-bearing
deposit accounts.
Noninterest Income and Noninterest Expense
Noninterest income totaled $1.9
million for the first quarter of 2023, compared to
$1.8 million for the fourth quarter
of 2022, and $1.7 million for the
first quarter of 2022.
Noninterest expense totaled $22.0
million for the first quarter of 2023, down from
$22.6 million for the fourth quarter
of 2022 and up from $20.2 million for
the first quarter of 2022. The year-over-year increase was
primarily attributed to increased salary expenses related to
additional employees hired in 2022 and administrative expenses
related to opening of four branches during 2022. The employee
headcount increased from 339 as of March 31, 2022 to
370 as of March 31, 2023.
The efficiency ratio improved to 63.47% for the first quarter of
2023, from 66.74% for the fourth quarter of 2022, and 75.09% for
the first quarter of 2022. The improvement was primarily due to the
increase in interest and fees on loans while maintaining
noninterest expense consistent with prior quarters.
Net Income and Earnings Per Share
Net income totaled $9.2 million
for the first quarter of 2023, compared to $7.5 million for the fourth quarter of 2022. Net
income available to common shareholders totaled $8.1 million for the first quarter of 2023
compared to $6.1 million for the
fourth quarter of 2022. Dividends on our Series A Convertible
Non-Cumulative Preferred Stock totaled $1.2
million for the first quarter of 2023 and $1.4 million for the fourth quarter of 2022.
Basic earnings per share and diluted earnings per share were
$0.60 per share and $0.55 per share, respectively, in the first
quarter of 2023 compared to $0.45 per
share and $0.44 per share,
respectively, in the fourth quarter of 2022.
Earnings Conference Call
Third Coast has scheduled a conference call to discuss 2023
first quarter results, which will be broadcast live over the
Internet, on Thursday, April 27,
2023, at 11:00 a.m. Eastern
Time / 10:00 a.m. Central
Time. To participate in the call, dial 201-389-0869 and ask
for the Third Coast Bancshares, Inc. call at least 10 minutes prior
to the start time, or access it live over the Internet at
https://ir.tcbssb.com/events-and-presentations/events. For those
who cannot listen to the live call, a replay will be available
through May 4, 2023, and may be
accessed by dialing 201-612-7415 and using passcode 13735405#.
Also, an archive of the webcast will be available shortly after the
call at
https://ir.tcbssb.com/events-and-presentations/events for 90
days.
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a commercially focused,
Texas-based bank holding company
operating primarily in the Greater
Houston, Dallas-Fort Worth,
and Austin-San Antonio markets
through its wholly owned subsidiary, Third Coast Bank, SSB. Founded
in 2008 in Humble, Texas, Third
Coast Bank, SSB conducts banking operations through 16 branches and
one loan production office encompassing the four largest
metropolitan areas in Texas.
Please visit https://www.tcbssb.com for more information.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are subject to risks and uncertainties and are made pursuant
to the safe harbor provisions of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements reflect
our current views with respect to, among other things, future
events and our financial performance. These statements are often,
but not always, made through the use of words or phrases such as
"may," "should," "could," "predict," "potential," "believe,"
"looking ahead," "will likely result," "expect," "continue,"
"will," "anticipate," "seek," "estimate," "intend," "plan,"
"projection," "would" and "outlook," or the negative version of
those words or other comparable words or phrases of a future or
forward-looking nature. These forward-looking statements are not
historical facts, and are based on current expectations, estimates
and projections about our industry, management's beliefs and
certain assumptions made by management, many of which, by their
nature, are inherently uncertain and beyond our control.
Accordingly, we caution you that any such forward-looking
statements are not guarantees of future performance and are subject
to risks, assumptions and uncertainties that are difficult to
predict. Although we believe that the expectations reflected in
these forward-looking statements are reasonable as of the date
made, actual results may prove to be materially different from the
results expressed or implied by the forward-looking statements.
There are or will be important factors that could cause our actual
results to differ materially from those indicated in these
forward-looking statements, including, but not limited to, the
following: interest rate risk and fluctuations in interest rates;
market conditions and economic trends generally and in the banking
industry; our ability to maintain important deposit relationships;
our ability to grow or maintain our deposit base; our ability to
implement our expansion strategy; credit risk associated with our
business; and changes in key management personnel. For a discussion
of additional factors that could cause our actual results to differ
materially from those described in the forward-looking statements,
please see the risk factors discussed in our Annual Report on Form
10-K for the year ended December 31,
2022 filed with the U.S. Securities and Exchange Commission
(the "SEC"), and our other filings with the SEC.
The foregoing factors should not be construed as exhaustive
and should be read together with the other cautionary statements
included in this press release. If one or more events related to
these or other risks or uncertainties materialize, or if our
underlying assumptions prove to be incorrect, actual results may
differ materially from what we anticipate. Accordingly, you should
not place undue reliance on any such forward-looking statements.
Any forward-looking statement speaks only as of the date on which
it is made, and we do not undertake any obligation to publicly
update or review any forward-looking statement, whether as a result
of new information, future developments or otherwise. New factors
emerge from time to time, and it is not possible for us to predict
which will arise. In addition, we cannot assess the impact of each
factor on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking
statements.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial
measures, including Tangible Common Equity, Tangible Book Value Per
Share, Tangible Common Equity to Tangible Assets and Return on
Average Tangible Common Equity, which are supplemental measures
that are not required by, or are not presented in accordance with
GAAP. Please refer to the table titled "GAAP Reconciliation and
Management's Explanation of Non-GAAP Financial Measures" at the end
of this press release for a reconciliation of these non-GAAP
financial measures.
Third Coast
Bancshares, Inc. and Subsidiary
Financial
Highlights
(unaudited)
|
|
|
|
|
|
2023
|
|
|
2022
|
|
(Dollars in
thousands)
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
June
30
|
|
|
March
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
309,153
|
|
|
$
|
329,864
|
|
|
$
|
216,623
|
|
|
$
|
317,462
|
|
|
$
|
369,782
|
|
Federal funds
sold
|
|
|
1,789
|
|
|
|
2,150
|
|
|
|
1,225
|
|
|
|
2,741
|
|
|
|
1,538
|
|
Total cash and cash
equivalents
|
|
|
310,942
|
|
|
|
332,014
|
|
|
|
217,848
|
|
|
|
320,203
|
|
|
|
371,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing time
deposits in other banks
|
|
|
-
|
|
|
|
-
|
|
|
|
132
|
|
|
|
132
|
|
|
|
132
|
|
Investment securities
available-for-sale
|
|
|
180,376
|
|
|
|
176,067
|
|
|
|
160,437
|
|
|
|
157,261
|
|
|
|
126,218
|
|
Loans held for
investment
|
|
|
3,213,326
|
|
|
|
3,107,551
|
|
|
|
2,972,852
|
|
|
|
2,749,177
|
|
|
|
2,447,945
|
|
Less: allowance
for credit losses
|
|
|
(35,915)
|
|
|
|
(30,351)
|
|
|
|
(29,109)
|
|
|
|
(26,666)
|
|
|
|
(23,312)
|
|
Loans, net
|
|
|
3,177,411
|
|
|
|
3,077,200
|
|
|
|
2,943,743
|
|
|
|
2,722,511
|
|
|
|
2,424,633
|
|
Accrued interest
receivable
|
|
|
19,026
|
|
|
|
18,340
|
|
|
|
16,246
|
|
|
|
12,568
|
|
|
|
12,648
|
|
Premises and equipment,
net
|
|
|
28,504
|
|
|
|
28,662
|
|
|
|
25,449
|
|
|
|
22,888
|
|
|
|
20,846
|
|
Other real estate
owned
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,666
|
|
Bank-owned life
insurance
|
|
|
64,235
|
|
|
|
60,761
|
|
|
|
60,263
|
|
|
|
51,919
|
|
|
|
26,671
|
|
Non-marketable
securities, at cost
|
|
|
14,751
|
|
|
|
15,405
|
|
|
|
27,136
|
|
|
|
15,213
|
|
|
|
11,327
|
|
Deferred tax asset,
net
|
|
|
7,146
|
|
|
|
6,303
|
|
|
|
8,097
|
|
|
|
7,179
|
|
|
|
4,258
|
|
Fair value hedge
assets
|
|
|
8,793
|
|
|
|
9,213
|
|
|
|
11,508
|
|
|
|
6,892
|
|
|
|
3,873
|
|
Right-of-use
assets
|
|
|
19,328
|
|
|
|
17,872
|
|
|
|
18,266
|
|
|
|
12,648
|
|
|
|
10,697
|
|
Core Deposit
Intangible, net
|
|
|
1,090
|
|
|
|
1,131
|
|
|
|
1,171
|
|
|
|
1,211
|
|
|
|
1,252
|
|
Goodwill
|
|
|
18,034
|
|
|
|
18,034
|
|
|
|
18,034
|
|
|
|
18,034
|
|
|
|
18,034
|
|
Other assets
|
|
|
10,021
|
|
|
|
12,146
|
|
|
|
8,515
|
|
|
|
9,403
|
|
|
|
6,813
|
|
Total
assets
|
|
$
|
3,859,657
|
|
|
$
|
3,773,148
|
|
|
$
|
3,516,845
|
|
|
$
|
3,358,062
|
|
|
$
|
3,040,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
|
$
|
516,909
|
|
|
$
|
486,114
|
|
|
$
|
517,265
|
|
|
$
|
519,614
|
|
|
$
|
931,622
|
|
Interest
bearing
|
|
|
2,805,624
|
|
|
|
2,750,032
|
|
|
|
2,467,049
|
|
|
|
2,378,650
|
|
|
|
1,655,547
|
|
Total
deposits
|
|
|
3,322,533
|
|
|
|
3,236,146
|
|
|
|
2,984,314
|
|
|
|
2,898,264
|
|
|
|
2,587,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued interest
payable
|
|
|
1,636
|
|
|
|
2,545
|
|
|
|
2,925
|
|
|
|
1,683
|
|
|
|
387
|
|
Fair value hedge
liabilities
|
|
|
7,271
|
|
|
|
9,221
|
|
|
|
11,514
|
|
|
|
6,912
|
|
|
|
3,909
|
|
Lease liability -
operating leases
|
|
|
19,845
|
|
|
|
18,209
|
|
|
|
18,407
|
|
|
|
12,650
|
|
|
|
10,629
|
|
Other
liabilities
|
|
|
10,054
|
|
|
|
14,024
|
|
|
|
12,158
|
|
|
|
7,344
|
|
|
|
5,584
|
|
FHLB
advances
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
18,000
|
|
|
|
50,000
|
|
Note payable - Line of
Credit - Senior Debt
|
|
|
30,875
|
|
|
|
30,875
|
|
|
|
30,875
|
|
|
|
30,875
|
|
|
|
1,000
|
|
Note payable -
Subordinated Debentures, net
|
|
|
80,399
|
|
|
|
80,348
|
|
|
|
80,298
|
|
|
|
80,367
|
|
|
|
80,507
|
|
Total
liabilities
|
|
|
3,472,613
|
|
|
|
3,391,368
|
|
|
|
3,140,491
|
|
|
|
3,056,095
|
|
|
|
2,739,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A Convertible
Non-Cumulative Preferred Stock
|
|
|
69
|
|
|
|
69
|
|
|
|
69
|
|
|
|
-
|
|
|
|
-
|
|
Series B Convertible
Perpetual Preferred Stock
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Common stock
|
|
|
13,658
|
|
|
|
13,610
|
|
|
|
13,600
|
|
|
|
13,543
|
|
|
|
13,524
|
|
Additional paid-in
capital
|
|
|
318,350
|
|
|
|
318,033
|
|
|
|
317,798
|
|
|
|
250,413
|
|
|
|
249,775
|
|
Retained
earnings
|
|
|
58,182
|
|
|
|
53,270
|
|
|
|
47,163
|
|
|
|
40,393
|
|
|
|
38,116
|
|
Accumulated other
comprehensive (loss) income
|
|
|
(2,116)
|
|
|
|
(2,103)
|
|
|
|
(1,177)
|
|
|
|
(1,283)
|
|
|
|
887
|
|
Treasury stock, at
cost
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
|
|
(1,099)
|
|
Total shareholders'
equity
|
|
|
387,044
|
|
|
|
381,780
|
|
|
|
376,354
|
|
|
|
301,967
|
|
|
|
301,203
|
|
Total liabilities and
shareholders' equity
|
|
$
|
3,859,657
|
|
|
$
|
3,773,148
|
|
|
$
|
3,516,845
|
|
|
$
|
3,358,062
|
|
|
$
|
3,040,388
|
|
Third Coast
Bancshares, Inc. and Subsidiary
Financial
Highlights
(unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
|
(Dollars in
thousands, except per share data)
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
June
30
|
|
|
March
31
|
|
|
December
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
53,911
|
|
|
$
|
48,081
|
|
|
$
|
40,498
|
|
|
$
|
31,164
|
|
|
$
|
26,682
|
|
|
$
|
146,425
|
|
|
Investment securities
available-for-sale
|
|
|
1,548
|
|
|
|
1,388
|
|
|
|
1,367
|
|
|
|
894
|
|
|
|
276
|
|
|
|
3,925
|
|
|
Federal funds sold and
deposits in other banks
|
|
|
1,920
|
|
|
|
1,682
|
|
|
|
1,237
|
|
|
|
451
|
|
|
|
226
|
|
|
|
3,596
|
|
|
Total interest
income
|
|
|
57,379
|
|
|
|
51,151
|
|
|
|
43,102
|
|
|
|
32,509
|
|
|
|
27,184
|
|
|
|
153,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
accounts
|
|
|
22,092
|
|
|
|
15,682
|
|
|
|
9,727
|
|
|
|
3,443
|
|
|
|
1,844
|
|
|
|
30,696
|
|
|
FHLB advances and notes
payable
|
|
|
2,457
|
|
|
|
3,318
|
|
|
|
2,020
|
|
|
|
1,328
|
|
|
|
130
|
|
|
|
6,796
|
|
|
Total interest
expense
|
|
|
24,549
|
|
|
|
19,000
|
|
|
|
11,747
|
|
|
|
4,771
|
|
|
|
1,974
|
|
|
|
37,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
32,830
|
|
|
|
32,151
|
|
|
|
31,355
|
|
|
|
27,738
|
|
|
|
25,210
|
|
|
|
116,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
|
1,200
|
|
|
|
1,950
|
|
|
|
2,900
|
|
|
|
3,350
|
|
|
|
4,000
|
|
|
|
12,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
after credit loss expense
|
|
|
31,630
|
|
|
|
30,201
|
|
|
|
28,455
|
|
|
|
24,388
|
|
|
|
21,210
|
|
|
|
104,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
|
779
|
|
|
|
706
|
|
|
|
772
|
|
|
|
617
|
|
|
|
619
|
|
|
|
2,714
|
|
|
Gain on sale of SBA
loans
|
|
|
-
|
|
|
|
123
|
|
|
|
729
|
|
|
|
98
|
|
|
|
-
|
|
|
|
950
|
|
|
Gain on sale of
securities
|
|
|
97
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Earnings on bank-owned
life insurance
|
|
|
475
|
|
|
|
497
|
|
|
|
424
|
|
|
|
248
|
|
|
|
143
|
|
|
|
1,312
|
|
|
Derivative
fees
|
|
|
(1)
|
|
|
|
117
|
|
|
|
313
|
|
|
|
123
|
|
|
|
706
|
|
|
|
1,259
|
|
|
Other
|
|
|
552
|
|
|
|
310
|
|
|
|
300
|
|
|
|
180
|
|
|
|
198
|
|
|
|
988
|
|
|
Total noninterest
income
|
|
|
1,902
|
|
|
|
1,753
|
|
|
|
2,538
|
|
|
|
1,266
|
|
|
|
1,666
|
|
|
|
7,223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
13,712
|
|
|
|
14,473
|
|
|
|
14,719
|
|
|
|
13,994
|
|
|
|
13,324
|
|
|
|
56,510
|
|
|
Data processing and
network expense
|
|
|
1,203
|
|
|
|
837
|
|
|
|
1,256
|
|
|
|
932
|
|
|
|
922
|
|
|
|
3,947
|
|
|
Occupancy and equipment
expense
|
|
|
2,633
|
|
|
|
2,591
|
|
|
|
2,232
|
|
|
|
1,830
|
|
|
|
1,873
|
|
|
|
8,526
|
|
|
Legal and
professional
|
|
|
1,930
|
|
|
|
1,887
|
|
|
|
1,353
|
|
|
|
2,001
|
|
|
|
1,746
|
|
|
|
6,987
|
|
|
Loan operations and
other real estate owned
|
|
|
(35)
|
|
|
|
144
|
|
|
|
284
|
|
|
|
282
|
|
|
|
278
|
|
|
|
988
|
|
|
Advertising and
marketing
|
|
|
686
|
|
|
|
580
|
|
|
|
438
|
|
|
|
467
|
|
|
|
427
|
|
|
|
1,912
|
|
|
Telephone and
communications
|
|
|
139
|
|
|
|
175
|
|
|
|
122
|
|
|
|
99
|
|
|
|
100
|
|
|
|
496
|
|
|
Software purchases and
maintenance
|
|
|
352
|
|
|
|
295
|
|
|
|
318
|
|
|
|
201
|
|
|
|
198
|
|
|
|
1,012
|
|
|
Regulatory
assessments
|
|
|
666
|
|
|
|
863
|
|
|
|
1,000
|
|
|
|
956
|
|
|
|
645
|
|
|
|
3,464
|
|
|
Loss on sale of other
real estate owned
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
350
|
|
|
|
-
|
|
|
|
350
|
|
|
Other
|
|
|
758
|
|
|
|
782
|
|
|
|
1,006
|
|
|
|
1,661
|
|
|
|
668
|
|
|
|
4,117
|
|
|
Total noninterest
expense
|
|
|
22,044
|
|
|
|
22,627
|
|
|
|
22,728
|
|
|
|
22,773
|
|
|
|
20,181
|
|
|
|
88,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME BEFORE
INCOME TAX EXPENSE
|
|
|
11,488
|
|
|
|
9,327
|
|
|
|
8,265
|
|
|
|
2,881
|
|
|
|
2,695
|
|
|
|
23,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
2,245
|
|
|
|
1,802
|
|
|
|
1,495
|
|
|
|
604
|
|
|
|
608
|
|
|
|
4,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
9,243
|
|
|
|
7,525
|
|
|
|
6,770
|
|
|
|
2,277
|
|
|
|
2,087
|
|
|
|
18,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends declared
|
|
|
1,171
|
|
|
|
1,418
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME AVAILABLE TO
COMMON SHAREHOLDERS
|
|
$
|
8,072
|
|
|
$
|
6,107
|
|
|
$
|
6,770
|
|
|
$
|
2,277
|
|
|
$
|
2,087
|
|
|
$
|
17,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.60
|
|
|
$
|
0.45
|
|
|
$
|
0.50
|
|
|
$
|
0.17
|
|
|
$
|
0.16
|
|
|
$
|
1.28
|
|
|
Diluted earnings per
share
|
|
$
|
0.55
|
|
|
$
|
0.44
|
|
|
$
|
0.49
|
|
|
$
|
0.16
|
|
|
$
|
0.15
|
|
|
$
|
1.25
|
|
|
Third Coast
Bancshares, Inc. and Subsidiary
Financial
Highlights
(unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
(Dollars in
thousands, except share and
per share data)
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
June
30
|
|
|
March
31
|
|
|
December
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
basic
|
|
$
|
0.60
|
|
|
$
|
0.45
|
|
|
$
|
0.50
|
|
|
$
|
0.17
|
|
|
$
|
0.16
|
|
|
$
|
1.28
|
|
Earnings per share,
diluted
|
|
$
|
0.55
|
|
|
$
|
0.44
|
|
|
$
|
0.49
|
|
|
$
|
0.16
|
|
|
$
|
0.15
|
|
|
$
|
1.25
|
|
Dividends on common
stock
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Dividends on Series A
Convertible
Non-Cumulative Preferred Stock
|
|
$
|
16.88
|
|
|
$
|
20.44
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
20.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (A)
|
|
|
1.02
|
%
|
|
|
0.84
|
%
|
|
|
0.78
|
%
|
|
|
0.29
|
%
|
|
|
0.32
|
%
|
|
|
0.58
|
%
|
Return on average
common equity (A)
|
|
|
10.28
|
%
|
|
|
7.69
|
%
|
|
|
8.74
|
%
|
|
|
3.01
|
%
|
|
|
2.81
|
%
|
|
|
5.62
|
%
|
Return on average
tangible common
equity (A)
(B)
|
|
|
10.93
|
%
|
|
|
8.19
|
%
|
|
|
9.32
|
%
|
|
|
3.22
|
%
|
|
|
3.00
|
%
|
|
|
6.00
|
%
|
Net interest margin
(A) (C)
|
|
|
3.79
|
%
|
|
|
3.75
|
%
|
|
|
3.77
|
%
|
|
|
3.77
|
%
|
|
|
4.09
|
%
|
|
|
3.82
|
%
|
Efficiency ratio
(D)
|
|
|
63.47
|
%
|
|
|
66.74
|
%
|
|
|
67.06
|
%
|
|
|
78.52
|
%
|
|
|
75.09
|
%
|
|
|
71.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Coast Bancshares,
Inc. (consolidated):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common equity to
total assets
|
|
|
8.31
|
%
|
|
|
8.36
|
%
|
|
|
8.82
|
%
|
|
|
8.99
|
%
|
|
|
9.91
|
%
|
|
|
8.36
|
%
|
Tangible common equity
to tangible
assets
(B)
|
|
|
7.86
|
%
|
|
|
7.90
|
%
|
|
|
8.32
|
%
|
|
|
8.47
|
%
|
|
|
9.33
|
%
|
|
|
7.90
|
%
|
Common equity tier 1
(to risk weighted assets)
|
|
|
7.89
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Tier 1 capital (to risk
weighted assets)
|
|
|
9.61
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Total capital (to risk
weighted assets)
|
|
|
12.63
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Tier 1 capital (to
average assets)
|
|
|
10.14
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Coast Bank,
SSB:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
(to risk weighted assets)
|
|
|
12.32
|
%
|
|
|
12.95
|
%
|
|
|
13.04
|
%
|
|
|
11.60
|
%
|
|
|
12.36
|
%
|
|
|
12.95
|
%
|
Tier 1 capital (to risk
weighted assets)
|
|
|
12.32
|
%
|
|
|
12.95
|
%
|
|
|
13.04
|
%
|
|
|
11.60
|
%
|
|
|
12.36
|
%
|
|
|
12.95
|
%
|
Total capital (to risk
weighted assets)
|
|
|
13.25
|
%
|
|
|
13.79
|
%
|
|
|
13.87
|
%
|
|
|
12.40
|
%
|
|
|
13.17
|
%
|
|
|
13.79
|
%
|
Tier 1 capital (to
average assets)
|
|
|
13.00
|
%
|
|
|
13.11
|
%
|
|
|
13.29
|
%
|
|
|
12.47
|
%
|
|
|
13.66
|
%
|
|
|
13.11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
13,532,545
|
|
|
|
13,528,504
|
|
|
|
13,490,680
|
|
|
|
13,454,423
|
|
|
|
13,385,324
|
|
|
|
13,465,196
|
|
Diluted
|
|
|
16,801,815
|
|
|
|
13,760,076
|
|
|
|
13,678,962
|
|
|
|
13,822,522
|
|
|
|
13,755,026
|
|
|
|
13,754,610
|
|
Period end shares
outstanding
|
|
|
13,579,498
|
|
|
|
13,531,736
|
|
|
|
13,521,826
|
|
|
|
13,464,093
|
|
|
|
13,445,782
|
|
|
|
13,531,736
|
|
Book value per
share
|
|
$
|
23.63
|
|
|
$
|
23.32
|
|
|
$
|
22.93
|
|
|
$
|
22.43
|
|
|
$
|
22.40
|
|
|
$
|
23.32
|
|
Tangible book value per
share (B)
|
|
$
|
22.22
|
|
|
$
|
21.90
|
|
|
$
|
21.51
|
|
|
$
|
21.00
|
|
|
$
|
20.97
|
|
|
$
|
21.90
|
|
___________
|
(A)
|
Interim periods
annualized.
|
(B)
|
Refer to the
calculation of these non-GAAP financial measures and a
reconciliation to their most directly comparable GAAP financial
measures on pages 11 and 12 of this
News Release.
|
(C)
|
Net interest margin
represents net interest income divided by average interest-earning
assets.
|
(D)
|
Represents total
noninterest expense divided by the sum of net interest income plus
noninterest income. Taxes and provision for credit losses are not
part of this calculation.
|
Third Coast
Bancshares, Inc. and Subsidiary
Financial
Highlights
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
December 31,
2022
|
|
March 31,
2022
|
(Dollars in
thousands)
|
|
Average
Outstanding
Balance
|
|
|
Interest
Earned/
Paid(3)
|
|
|
Average
Yield/
Rate
|
|
Average
Outstanding
Balance
|
|
|
Interest
Earned/
Paid(3)
|
|
|
Average
Yield/
Rate
|
|
Average
Outstanding
Balance
|
|
|
Interest
Earned/
Paid(3)
|
|
|
Average
Yield/
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earnings
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
$
|
178,197
|
|
|
$
|
1,548
|
|
|
3.52 %
|
|
$
|
170,463
|
|
|
$
|
1,388
|
|
|
3.23 %
|
|
$
|
28,170
|
|
|
$
|
276
|
|
|
3.97 %
|
Loans, gross
|
|
|
3,170,828
|
|
|
|
53,911
|
|
|
6.90 %
|
|
|
3,041,923
|
|
|
|
48,081
|
|
|
6.27 %
|
|
|
2,208,462
|
|
|
|
26,682
|
|
|
4.90 %
|
Federal funds sold and
other
interest-earning assets
|
|
|
167,694
|
|
|
|
1,920
|
|
|
4.64 %
|
|
|
185,887
|
|
|
|
1,682
|
|
|
3.59 %
|
|
|
260,275
|
|
|
|
226
|
|
|
0.35 %
|
Total interest-earning
assets
|
|
|
3,516,719
|
|
|
|
57,379
|
|
|
6.62 %
|
|
|
3,398,273
|
|
|
|
51,151
|
|
|
5.97 %
|
|
|
2,496,907
|
|
|
|
27,184
|
|
|
4.42 %
|
Less allowance for loan
losses
|
|
|
(34,879)
|
|
|
|
|
|
|
|
|
(29,563)
|
|
|
|
|
|
|
|
|
(20,395)
|
|
|
|
|
|
|
Total interest-earning
assets,
net of allowance
|
|
|
3,481,840
|
|
|
|
|
|
|
|
|
3,368,710
|
|
|
|
|
|
|
|
|
2,476,512
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
182,869
|
|
|
|
|
|
|
|
|
203,834
|
|
|
|
|
|
|
|
|
150,871
|
|
|
|
|
|
|
Total
assets
|
|
$
|
3,664,709
|
|
|
|
|
|
|
|
$
|
3,572,544
|
|
|
|
|
|
|
|
$
|
2,627,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
|
$
|
2,595,750
|
|
|
$
|
22,092
|
|
|
3.45 %
|
|
$
|
2,354,990
|
|
|
$
|
15,682
|
|
|
2.64 %
|
|
$
|
1,640,273
|
|
|
$
|
1,844
|
|
|
0.46 %
|
Notes
payable
|
|
|
111,250
|
|
|
|
1,814
|
|
|
6.61 %
|
|
|
111,199
|
|
|
|
1,761
|
|
|
6.28 %
|
|
|
1,891
|
|
|
|
23
|
|
|
4.93 %
|
FHLB
advances
|
|
|
52,803
|
|
|
|
643
|
|
|
4.94 %
|
|
|
166,783
|
|
|
|
1,557
|
|
|
3.70 %
|
|
|
50,000
|
|
|
|
107
|
|
|
0.87 %
|
Total interest-bearing
liabilities
|
|
|
2,759,803
|
|
|
|
24,549
|
|
|
3.61 %
|
|
|
2,632,972
|
|
|
|
19,000
|
|
|
2.86 %
|
|
|
1,692,164
|
|
|
|
1,974
|
|
|
0.47 %
|
Noninterest-bearing
deposits
|
|
|
477,706
|
|
|
|
|
|
|
|
|
517,075
|
|
|
|
|
|
|
|
|
620,900
|
|
|
|
|
|
|
Other
liabilities
|
|
|
42,406
|
|
|
|
|
|
|
|
|
41,226
|
|
|
|
|
|
|
|
|
12,782
|
|
|
|
|
|
|
Total
liabilities
|
|
|
3,279,915
|
|
|
|
|
|
|
|
|
3,191,273
|
|
|
|
|
|
|
|
|
2,325,846
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
384,794
|
|
|
|
|
|
|
|
|
381,271
|
|
|
|
|
|
|
|
|
301,537
|
|
|
|
|
|
|
Total liabilities
and
shareholders' equity
|
|
$
|
3,664,709
|
|
|
|
|
|
|
|
$
|
3,572,544
|
|
|
|
|
|
|
|
$
|
2,627,383
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
32,830
|
|
|
|
|
|
|
|
$
|
32,151
|
|
|
|
|
|
|
|
$
|
25,210
|
|
|
|
Net interest spread
(1)
|
|
|
|
|
|
|
|
3.01 %
|
|
|
|
|
|
|
|
3.11 %
|
|
|
|
|
|
|
|
3.95 %
|
Net interest margin
(2)
|
|
|
|
|
|
|
|
3.79 %
|
|
|
|
|
|
|
|
3.75 %
|
|
|
|
|
|
|
|
4.09 %
|
___________
|
(1)
|
Net interest spread is
the average yield on interest earning assets minus the average rate
on interest-bearing liabilities.
|
(2)
|
Net interest margin
represents net interest income divided by average interest-earning
assets.
|
(3)
|
Interest earned/paid
includes accretion of deferred loan fees, premiums and
discounts.
|
Third Coast
Bancshares, Inc. and Subsidiary
Financial
Highlights
(unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
2023
|
|
|
2022
|
|
|
(Dollars in
thousands)
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
June
30
|
|
|
March
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end Loan
Portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-farm
non-residential owner occupied
|
|
$
|
508,936
|
|
|
$
|
493,791
|
|
|
$
|
529,046
|
|
|
$
|
508,864
|
|
|
$
|
477,573
|
|
|
Non-farm
non-residential non-owner occupied
|
|
|
511,546
|
|
|
|
506,012
|
|
|
|
490,503
|
|
|
|
464,530
|
|
|
|
463,618
|
|
|
Residential
|
|
|
286,358
|
|
|
|
308,775
|
|
|
|
283,432
|
|
|
|
273,415
|
|
|
|
225,649
|
|
|
Construction,
development & other
|
|
|
627,143
|
|
|
|
567,851
|
|
|
|
500,879
|
|
|
|
440,925
|
|
|
|
414,653
|
|
|
Farmland
|
|
|
22,512
|
|
|
|
22,820
|
|
|
|
22,770
|
|
|
|
23,895
|
|
|
|
13,467
|
|
|
Commercial &
industrial
|
|
|
1,112,638
|
|
|
|
1,058,910
|
|
|
|
1,029,231
|
|
|
|
914,845
|
|
|
|
756,005
|
|
|
Consumer
|
|
|
3,280
|
|
|
|
3,872
|
|
|
|
3,728
|
|
|
|
3,706
|
|
|
|
3,304
|
|
|
Municipal and
other
|
|
|
140,913
|
|
|
|
145,520
|
|
|
|
113,263
|
|
|
|
118,997
|
|
|
|
93,676
|
|
|
Total loans
|
|
$
|
3,213,326
|
|
|
$
|
3,107,551
|
|
|
$
|
2,972,852
|
|
|
$
|
2,749,177
|
|
|
$
|
2,447,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
9,482
|
|
|
$
|
10,963
|
|
|
$
|
9,439
|
|
|
$
|
9,806
|
|
|
$
|
9,896
|
|
|
Loans > 90 days and
still accruing
|
|
|
-
|
|
|
|
518
|
|
|
|
98
|
|
|
|
387
|
|
|
|
40
|
|
|
Restructured
loans--accruing
|
|
|
780
|
|
|
|
780
|
|
|
|
781
|
|
|
|
785
|
|
|
|
790
|
|
|
Total nonperforming
loans
|
|
$
|
10,262
|
|
|
$
|
12,261
|
|
|
$
|
10,318
|
|
|
$
|
10,978
|
|
|
$
|
10,726
|
|
|
Other real estate
owned
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,666
|
|
|
Total nonperforming
assets
|
|
$
|
10,262
|
|
|
$
|
12,261
|
|
|
$
|
10,318
|
|
|
$
|
10,978
|
|
|
$
|
12,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QTD Net (recoveries)
charge-offs
|
|
$
|
(364)
|
|
|
$
|
708
|
|
|
$
|
457
|
|
|
$
|
(4)
|
|
|
$
|
(17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-farm
non-residential owner occupied
|
|
$
|
855
|
|
|
$
|
1,699
|
|
|
$
|
921
|
|
|
$
|
964
|
|
|
$
|
986
|
|
|
Non-farm
non-residential non-owner occupied
|
|
|
282
|
|
|
|
296
|
|
|
|
309
|
|
|
|
323
|
|
|
|
334
|
|
|
Residential
|
|
|
506
|
|
|
|
513
|
|
|
|
111
|
|
|
|
116
|
|
|
|
121
|
|
|
Construction,
development & other
|
|
|
39
|
|
|
|
40
|
|
|
|
227
|
|
|
|
232
|
|
|
|
238
|
|
|
Commercial &
industrial
|
|
|
7,800
|
|
|
|
8,390
|
|
|
|
7,846
|
|
|
|
8,165
|
|
|
|
8,210
|
|
|
Consumer
|
|
|
-
|
|
|
|
20
|
|
|
|
20
|
|
|
|
-
|
|
|
|
-
|
|
|
Purchased credit
impaired
|
|
|
-
|
|
|
|
5
|
|
|
|
5
|
|
|
|
6
|
|
|
|
7
|
|
|
Total nonaccrual
loans
|
|
$
|
9,482
|
|
|
$
|
10,963
|
|
|
$
|
9,439
|
|
|
$
|
9,806
|
|
|
$
|
9,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
total assets
|
|
|
0.27
|
%
|
|
|
0.32
|
%
|
|
|
0.29
|
%
|
|
|
0.33
|
%
|
|
|
0.41
|
%
|
|
Nonperforming loans to
total loans
|
|
|
0.32
|
%
|
|
|
0.39
|
%
|
|
|
0.35
|
%
|
|
|
0.40
|
%
|
|
|
0.44
|
%
|
|
Allowance for credit
losses to total loans
|
|
|
1.12
|
%
|
|
|
0.98
|
%
|
|
|
0.98
|
%
|
|
|
0.97
|
%
|
|
|
0.95
|
%
|
|
QTD Net (recoveries)
charge-offs to average loans (annualized)
|
|
|
(0.05)
|
%
|
|
|
0.09
|
%
|
|
|
0.06
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
Third Coast Bancshares, Inc. and
Subsidiary
GAAP Reconciliation and Management's
Explanation of Non-GAAP Financial
Measures
(unaudited)
Our accounting and reporting policies conform to GAAP (generally
accepted accounting principles) and the prevailing practices in the
banking industry. However, we also evaluate our performance based
on certain additional financial measures discussed in this earnings
release as being non-GAAP financial measures. Specifically, we
review Tangible Common Equity, Tangible Book Value Per Share,
Tangible Common Equity to Tangible Assets, and Return on Average
Tangible Common Equity for internal planning and forecasting
purposes. We classify a financial measure as a non-GAAP financial
measure if that financial measure excludes or includes amounts, or
is subject to adjustments that have the effect of excluding or
including amounts, that are not included or excluded, as the case
may be, in the most directly comparable measure calculated and
presented in accordance with GAAP as in effect from time to time in
the United States in our
statements of income, balance sheets or statements of cash flows.
Non-GAAP financial measures do not include operating and other
statistical measures or ratios or statistical measures calculated
using exclusively financial measures calculated in accordance with
GAAP.
The non-GAAP financial measures that we discuss in this earnings
release should not be considered in isolation or as a substitute
for the most directly comparable or other financial measures
calculated in accordance with GAAP. Moreover, the manner in which
we calculate the non-GAAP financial measures that we discuss in
this earnings release may differ from that of other companies
reporting measures with similar names. It is important to
understand how other banking organizations calculate their
financial measures with names similar to the non-GAAP financial
measures we have discussed in this earnings release when comparing
such non-GAAP financial measures.
Management believes the following non-GAAP financial measures
assist investors in understanding the financial condition of the
company:
- Tangible Common Equity. The most directly
comparable GAAP financial measure for tangible common equity is
total shareholders' equity. We believe that this measure is
important to many investors in the marketplace who are interested
in the relative changes from period to period of tangible common
equity.
- Tangible Book Value Per Share. The most directly
comparable GAAP financial measure for tangible book value per share
is book value per share. We believe that the tangible book value
per share measure is important to many investors in the marketplace
who are interested in changes from period to period in book value
per share exclusive of changes in intangible assets. Goodwill and
other intangible assets have the effect of increasing total book
value while not increasing our tangible book value.
- Tangible Common Equity to Tangible Assets. The
most directly comparable GAAP financial measure for tangible common
equity is total shareholders' equity, the most directly comparable
GAAP financial measure for tangible assets is total assets, and the
most directly comparable GAAP financial measure for tangible common
equity to tangible assets is total shareholders' equity to total
assets. We believe that this measure is important to many investors
in the marketplace who are interested in the relative changes from
period to period of tangible common equity to tangible assets, each
exclusive of changes in intangible assets. Goodwill and other
intangible assets have the effect of increasing both total
shareholders' equity and assets while not increasing our tangible
common equity or tangible assets.
- Return on Average Tangible Common Equity. The
most directly comparable GAAP financial measure for average
tangible common equity is average shareholders' equity, and the
most directly comparable GAAP financial measure for return on
average tangible common equity is return on average common equity.
We believe that this measure is important to many investors in the
marketplace who are interested in the relative changes from period
to period of return on average tangible common equity, exclusive of
changes in intangible assets. Goodwill and other intangible assets
have the effect of increasing average shareholders' equity while
not increasing our tangible common equity.
The calculations of these non-GAAP financial measures are as
follows:
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
(Dollars in
thousands, except share and per share data)
|
|
March
31
|
|
|
December
31
|
|
|
September
30
|
|
|
June
30
|
|
|
March
31
|
|
|
December
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
$
|
387,044
|
|
|
$
|
381,780
|
|
|
$
|
376,354
|
|
|
$
|
301,967
|
|
|
$
|
301,203
|
|
|
$
|
381,780
|
|
Less: Preferred
stock including additional paid in capital
|
|
|
66,225
|
|
|
|
66,225
|
|
|
|
66,273
|
|
|
|
-
|
|
|
|
-
|
|
|
|
66,225
|
|
Total common
equity
|
|
|
320,819
|
|
|
|
315,555
|
|
|
|
310,081
|
|
|
|
301,967
|
|
|
|
301,203
|
|
|
|
315,555
|
|
Less: Goodwill
and core deposit intangibles, net
|
|
|
19,124
|
|
|
|
19,165
|
|
|
|
19,205
|
|
|
|
19,245
|
|
|
|
19,286
|
|
|
|
19,165
|
|
Tangible common
equity
|
|
$
|
301,695
|
|
|
$
|
296,390
|
|
|
$
|
290,876
|
|
|
$
|
282,722
|
|
|
$
|
281,917
|
|
|
$
|
296,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at end of period
|
|
|
13,579,498
|
|
|
|
13,531,736
|
|
|
|
13,521,826
|
|
|
|
13,464,093
|
|
|
|
13,445,782
|
|
|
|
13,531,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value Per
Share
|
|
$
|
23.63
|
|
|
$
|
23.32
|
|
|
$
|
22.93
|
|
|
$
|
22.43
|
|
|
$
|
22.40
|
|
|
$
|
23.32
|
|
Tangible Book Value
Per Share
|
|
$
|
22.22
|
|
|
$
|
21.90
|
|
|
$
|
21.51
|
|
|
$
|
21.00
|
|
|
$
|
20.97
|
|
|
$
|
21.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
3,859,657
|
|
|
$
|
3,773,148
|
|
|
$
|
3,516,845
|
|
|
$
|
3,358,062
|
|
|
$
|
3,040,388
|
|
|
$
|
3,773,148
|
|
Adjustments:
Goodwill and core deposit intangibles, net
|
|
|
19,124
|
|
|
|
19,165
|
|
|
|
19,205
|
|
|
|
19,245
|
|
|
|
19,286
|
|
|
|
19,165
|
|
Tangible
assets
|
|
$
|
3,840,533
|
|
|
$
|
3,753,983
|
|
|
$
|
3,497,640
|
|
|
$
|
3,338,817
|
|
|
$
|
3,021,102
|
|
|
$
|
3,753,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Equity to
Total Assets
|
|
|
8.31
|
%
|
|
|
8.36
|
%
|
|
|
8.82
|
%
|
|
|
8.99
|
%
|
|
|
9.91
|
%
|
|
|
8.36
|
%
|
Tangible Common
Equity to Tangible Assets
|
|
|
7.86
|
%
|
|
|
7.90
|
%
|
|
|
8.32
|
%
|
|
|
8.47
|
%
|
|
|
9.33
|
%
|
|
|
7.90
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Tangible
Common Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
$
|
384,794
|
|
|
$
|
381,271
|
|
|
$
|
308,092
|
|
|
$
|
303,135
|
|
|
$
|
301,537
|
|
|
$
|
323,685
|
|
Less: Average
preferred stock including additional paid in capital
|
|
|
66,225
|
|
|
|
66,329
|
|
|
|
720
|
|
|
|
-
|
|
|
|
-
|
|
|
|
16,900
|
|
Average common
equity
|
|
|
318,569
|
|
|
|
314,942
|
|
|
|
307,372
|
|
|
|
303,135
|
|
|
|
301,537
|
|
|
|
306,785
|
|
Less: Average
goodwill and core deposit intangibles, net
|
|
|
19,149
|
|
|
|
19,184
|
|
|
|
19,225
|
|
|
|
19,265
|
|
|
|
19,306
|
|
|
|
19,245
|
|
Average tangible common
equity
|
|
$
|
299,420
|
|
|
$
|
295,758
|
|
|
$
|
288,147
|
|
|
$
|
283,870
|
|
|
$
|
282,231
|
|
|
$
|
287,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
9,243
|
|
|
$
|
7,525
|
|
|
$
|
6,770
|
|
|
$
|
2,277
|
|
|
$
|
2,087
|
|
|
$
|
18,659
|
|
Less: Dividends paid on
preferred stock
|
|
|
1,171
|
|
|
|
1,418
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,418
|
|
Net Income Available to
Common Shareholders
|
|
$
|
8,072
|
|
|
$
|
6,107
|
|
|
$
|
6,770
|
|
|
$
|
2,277
|
|
|
$
|
2,087
|
|
|
$
|
17,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Common Equity
|
|
|
10.28
|
%
|
|
|
7.69
|
%
|
|
|
8.74
|
%
|
|
|
3.01
|
%
|
|
|
2.81
|
%
|
|
|
5.62
|
%
|
Return on Average
Tangible Common Equity
|
|
|
10.93
|
%
|
|
|
8.19
|
%
|
|
|
9.32
|
%
|
|
|
3.22
|
%
|
|
|
3.00
|
%
|
|
|
6.00
|
%
|
Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor
Relations
(713) 529-6600
TCBX@dennardlascar.com
View original
content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-2023-first-quarter-financial-results-301808605.html
SOURCE Third Coast Bancshares