FAQ on Stonegate's Coverage Update of Third Coast Bancshares, Inc. (TCBX) Q2 2025

What was Third Coast Bancshares, Inc.’s net income in Q2 2025?

Third Coast Bancshares, Inc. reported a net income of $16.8M in Q2 2025, up from $13.6M in Q1 2025.

What contributed to the increase in net income for Third Coast Bancshares, Inc.?

The increase was primarily due to higher net interest income from opportunistic securitization of the portfolio and stable expenses, though partially offset by a higher provision for credit losses and securitization-related expenses.

What is Third Coast Bancshares, Inc.’s net interest margin for Q2 2025?

The net interest margin for Q2 2025 was 4.22%, up from 3.80% in Q1 2025, and remains elevated compared to the median comps NIM of 2.97%.

How did Third Coast Bancshares, Inc.’s loan portfolio and deposits perform year over year?

The gross loan portfolio increased by $319.8M year over year, and net deposits rose by $425.3M, representing an 11.0% increase.

What were the non-performing assets for Third Coast Bancshares, Inc. in Q2 2025?

Non-performing assets were $20.1M in Q2 2025, up from $18.6M in the previous quarter, with a nonperforming loan to total loans ratio of 0.49%.

What growth initiatives did Third Coast Bancshares, Inc. undertake in Q2 2025?

The Company completed $100.0M and $150.0M commercial real estate loan securitization transactions, aiming to reduce weighted assets, improve capital ratios, and boost NIM by increasing earning assets.

What is the valuation range for Third Coast Bancshares, Inc. based on forward P/E and P/TBV?

Using forward P/E, the valuation range is $40.00 to $44.21, and using P/TBV, it’s $40.08 to $43.05, with mid-points of $42.10 and $41.57, respectively.

Who provided the coverage update on Third Coast Bancshares, Inc.?

Stonegate Capital Partners updated their coverage on Third Coast Bancshares, Inc., providing insights into its Q2 2025 performance and future outlook.