Third Coast Bancshares, Inc. Reports 2026 First Quarter Financial Results

Completed Successful Merger with Keystone Bancshares, Inc.

HOUSTON, April 22, 2026 /PRNewswire/ -- Third Coast Bancshares, Inc. (NYSE & NYSE Texas: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank (the "Bank"), today reported its 2026 first quarter financial results.

2026 First Quarter Financial Highlights

"Our first quarter marked an important step for Third Coast with the successful merger with Keystone. This transaction meaningfully increased our balance sheet and capabilities, and we're already seeing strong momentum across our loan pipelines and core markets. As we move through the year, we remain focused on executing on our strategic objectives, building deeper relationships with clients, and translating our expanded platform into sustainable growth and shareholder value," said Bart Caraway, Founder, Chairman, President & Chief Executive Officer of Third Coast.

Operating Results

Net Income and Earnings Per Common Share

Net income totaled $16.4 million for the first quarter of 2026, compared to $17.9 million for the fourth quarter of 2025 and $13.6 million for the first quarter of 2025. Net income available to common shareholders totaled $15.2 million for the first quarter of 2026, compared to $16.7 million for the fourth quarter of 2025 and $12.4 million for the first quarter of 2025. The quarter-over-quarter decrease from the fourth quarter of 2025 was primarily due to merger-related expenses attributing to an increase in legal and professional expenses, and an increase in salaries and employee benefits related to sign-on bonuses, retention and additional bonuses. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025.

Basic and diluted earnings per common share were $1.03 per share and $0.88 per share, respectively, in the first quarter of 2026, compared to $1.21 per share and $1.02 per share, respectively, in the fourth quarter of 2025 and $0.90 per share and $0.78 per share, respectively, in the first quarter of 2025.

Net Interest Margin and Net Interest Income

The net interest margin for the first quarter of 2026 was 3.67%, compared to 4.10% for the fourth quarter of 2025 and 3.80% for the first quarter of 2025. The yield on loans for the first quarter of 2026 was 7.01%, compared to 7.52% for the fourth quarter of 2025 and 7.45% for the first quarter of 2025. The cost of interest-bearing deposits for the first quarter of 2026 was 3.53%, compared to 3.73% for the fourth quarter of 2025 and 4.02% for the first quarter of 2025.

Net interest income totaled $53.6 million for the first quarter of 2026, an increase of 2.8% from $52.2 million for the fourth quarter of 2025 and an increase of 25.3% from $42.8 million for the first quarter of 2025. Interest income totaled $97.4 million for the first quarter of 2026, an increase of 5.7% from $92.1 million for the fourth quarter of 2025 and an increase of 20.6% from $80.8 million for the first quarter of 2025. The quarter-over-quarter increase from the fourth quarter of 2025 in interest income primarily resulted from an increase in loans, slightly offset by a $1.0 million reversal of interest income on a loan placed on nonaccrual and a decrease in loan yields. Interest expense was $43.7 million for the first quarter of 2026, an increase of $3.8 million, or 9.6%, from $39.9 million for the fourth quarter of 2025 and an increase of $5.8 million, or 15.2%, from $38.0 million for the first quarter of 2025, primarily resulting from an increase in interest-bearing demand deposits slightly offset by a reduction in rates paid on interest-bearing demand deposits.

Noninterest Income and Noninterest Expense

Noninterest income totaled $4.0 million for the first quarter of 2026, compared to $4.3 million for the fourth quarter of 2025 and $3.1 million for the first quarter of 2025. The quarter-over-quarter decrease from the fourth quarter of 2025 in noninterest income was primarily due to a decrease in non-margin loan fees during the first quarter of 2026.

Noninterest expense increased to $38.1 million for the first quarter of 2026, compared to $32.7 million for the fourth quarter of 2025 and $28.1 million for the first quarter of 2025. The quarter-over-quarter increase from the fourth quarter of 2025 in noninterest expense was primarily due to merger-related expenses. During the first quarter of 2026, the Company recorded $3.3 million in Keystone merger-related noninterest expenses primarily attributable to $1.6 million in legal and professional expenses and $1.3 million in salaries and employee benefits. Additionally, the Company recorded $644,000 in salaries and employee benefits attributable to sign-on bonuses and additional discretionary bonuses during the first quarter of 2026. At March 31, 2026, the number of employees increased to 514, compared to 412 at December 31, 2025 primarily due to the Keystone merger.

The efficiency ratio was 66.06% for the first quarter of 2026, compared to 57.90% for the fourth quarter of 2025 and 61.23% for the first quarter of 2025.

Balance Sheet Highlights

Loan Portfolio and Composition

For the quarter ended March 31, 2026, gross loans increased to $5.25 billion, an increase of $856.7 million, or 19.5%, from $4.39 billion as of December 31, 2025, and an increase of $1.26 billion, or 31.7%, from $3.99 billion as of March 31, 2025. The increase in gross loans was impacted by the mid-quarter Keystone merger. Commercial and industrial loans and real estate loans accounted for the majority of the loan growth for the first quarter of 2026, with commercial and industrial loans increasing $276.2 million and real estate loans increasing $644.2 million from the fourth quarter of 2025, partially offset by municipal and other loans decreasing $64.4 million from the fourth quarter of 2025.

Asset Quality

Nonperforming loans at March 31, 2026 were $35.6 million, compared to $21.5 million at December 31, 2025 and $18.6 million at March 31, 2025. The increase in nonperforming loans during the first quarter of 2026 was primarily due to one loan for approximately $17.1 million that was placed on nonaccrual partially offset by a $5.0 million decline in loans over 90 days past due and still accruing. As of March 31, 2026, the nonperforming loans to total loans ratio was 0.68%, compared to 0.49% as of December 31, 2025 and 0.47% as of March 31, 2025.

The provision for credit loss recorded for the first quarter of 2026 was $580,000, and the allowance for credit losses of $51.5 million represented 0.98% of the $5.25 billion in gross loans outstanding as of March 31, 2026. The provision for credit loss recorded for the fourth quarter of 2025 was $2.2 million, and the allowance for credit losses of $43.9 million represented 1.00% of the $4.39 billion in gross loans outstanding as of December 31, 2025. The increase in the allowance for credit loss in the first quarter of 2026 compared to the fourth quarter of 2025 was primarily attributable to Day 1 allowance for credit losses related to the Keystone merger.

The Company recorded net recoveries of $4,000 and net charge-offs of $398,000 for the three months ended March 31, 2026 and March 31, 2025, respectively.

Deposits and Composition

Deposits totaled $5.72 billion as of March 31, 2026, an increase of 23.5% from $4.63 billion as of December 31, 2025, and an increase of 34.5% from $4.25 billion as of March 31, 2025. The increase in total deposits was impacted by the mid-quarter Keystone merger. Noninterest-bearing demand deposits increased from $495.0 million as of December 31, 2025, to $577.2 million as of March 31, 2026 and represented 10.1% and 10.7% of total deposits as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, interest-bearing demand deposits increased $912.1 million, or 27.1%, time deposits increased $90.0 million, or 12.0%, and savings accounts increased $3.8 million, or 17.6%, respectively, from December 31, 2025.

The average cost of deposits was 3.17% for the first quarter of 2026, representing a 17-basis point decrease from the fourth quarter of 2025 and a 44-basis point decrease from the first quarter of 2025. The decreases were primarily due to the reduction in rates paid on interest-bearing demand deposits.

Earnings Conference Call

Third Coast has scheduled a conference call to discuss its 2026 first quarter results, which will be broadcast live over the Internet, on Thursday, April 23, 2026, 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.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through April 30, 2026, and may be accessed by dialing 201-612-7415 and using passcode 13757903#. Also, an archive of the webcast will be available shortly after the call at https://ir.thirdcoast.bank/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. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 21 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank 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; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; economic conditions affecting the real estate market; prepayment risks associated with commercial real estate loans; liquidity risks in the securitization market; operational risks related to the administration of securitized assets; changes in key management personnel; the risk that the benefits from the transaction between Third Coast and Keystone may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Third Coast and Keystone operate; the risk that the integration of each party's operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party's businesses into the other's businesses; the possibility that the completion of the transaction may be more expensive than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Third Coast's or Keystone's customers, suppliers, employees or other business partners, including those resulting from the completion of the transaction; the dilution caused by Third Coast's issuance of additional shares of its common stock in connection with the transaction; and other factors that may affect future results of Third Coast and Keystone including changes in asset quality and credit risk, the inability to sustain revenue and earnings growth, changes in interest rates and capital markets, inflation, customer borrowing, repayment, investment and deposit practices, the impact, extent and timing of technological changes, capital management activities and other actions of the Board of Governors of the Federal Reserve System and legislative and regulatory actions and reforms. 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, 2025 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 Common 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.

____________________________

(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 news release for a reconciliation of these non-GAAP financial measures.

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)

2026

2025

(Dollars in thousands)

March 31

December 31

September 30

June 30

March 31

ASSETS

Cash and cash equivalents:

Cash and due from banks

425,174

175,202

116,383

113,141

218,990

Federal funds sold

6,133

6,027

6,629

5,815

110,379

Total cash and cash equivalents

431,307

181,229

123,012

118,956

329,369

Interest bearing time deposits in other banks

270

267

265

262

359

Investment securities available-for-sale

435,846

383,192

376,719

355,753

397,442

Investment securities held to maturity

191,980

192,008

206,037

206,065

Loans held for investment

5,251,458

4,394,751

4,165,116

4,079,736

3,988,039

Less: allowance for credit losses

(51,455)

(43,949)

(42,563)

(40,035)

(40,456)

Loans held for investment, net

5,200,003

4,350,802

4,122,553

4,039,701

3,947,583

Accrued interest receivable

31,385

29,236

29,537

27,736

26,752

Premises and equipment, net

40,558

24,789

24,718

24,908

25,669

Other real estate owned

8,388

8,580

8,752

Bank-owned life insurance

77,107

76,357

75,547

74,761

74,018

Non-marketable securities, at cost

21,759

16,424

26,157

18,761

15,994

Deferred tax asset, net

7,493

6,450

6,989

8,646

9,176

Derivative assets

2,350

2,544

2,803

3,059

3,052

Right-of-use assets - operating leases

17,615

17,066

17,677

18,769

19,370

Goodwill and other intangible assets

54,883

18,680

18,720

18,761

18,801

Other assets

61,129

33,327

22,686

19,053

20,652

Total assets

6,582,073

5,340,759

5,061,808

4,943,771

4,896,989

LIABILITIES

Deposits:

Noninterest bearing

577,217

495,000

450,013

440,964

448,542

Interest bearing

5,137,860

4,131,888

3,922,728

3,839,905

3,800,001

Total deposits

5,715,077

4,626,888

4,372,741

4,280,869

4,248,543

Accrued interest payable

7,205

5,957

7,153

6,691

7,044

Derivative liabilities

3,517

3,142

3,521

3,779

3,527

Lease liability - operating leases

18,676

18,130

18,735

19,835

20,425

Other liabilities

48,177

36,775

32,040

24,745

25,979

Line of credit - Senior Debt

57,875

37,875

32,875

30,875

Note payable - Subordinated Debentures, net

81,016

80,965

80,913

80,862

80,810

Total liabilities

5,931,543

4,809,732

4,547,978

4,447,656

4,417,203

SHAREHOLDERS' EQUITY

Series A Convertible Non-Cumulative Preferred Stock

Series B Convertible Perpetual Preferred Stock

Common stock

16,641

13,970

13,958

13,930

13,904

Common stock - non-voting

Additional paid-in capital

428,815

323,929

323,491

322,972

322,456

Retained earnings

198,435

183,238

166,537

149,677

134,115

Accumulated other comprehensive income

7,669

10,920

10,874

10,566

10,341

Treasury stock, at cost

(1,099)

Total shareholders' equity

650,530

531,027

513,830

496,115

479,786

Total liabilities and shareholders' equity

6,582,073

5,340,759

5,061,808

4,943,771

4,896,989

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)

Three Months Ended

2026

2025

(Dollars in thousands, except per share data)

March 31

December 31

September 30

June 30

March 31

INTEREST INCOME:

Loans, including fees

85,893

81,368

82,054

79,706

73,087

Investment securities available-for-sale

6,107

6,464

6,289

5,505

5,693

Investment securities held-to-maturity

2,398

2,681

2,882

1,607

Federal funds sold and other

2,988

1,586

1,278

1,844

1,986

Total interest income

97,386

92,099

92,503

88,662

80,766

INTEREST EXPENSE:

Deposit accounts

41,484

37,530

39,030

37,535

36,226

FHLB advances and other borrowings

2,257

2,372

2,624

1,753

1,743

Total interest expense

43,741

39,902

41,654

39,288

37,969

Net interest income

53,645

52,197

50,849

49,374

42,797

Provision for credit losses

580

2,245

2,763

2,130

450

Net interest income after credit loss expense

53,065

49,952

48,086

47,244

42,347

NONINTEREST INCOME:

Service charges and fees

3,175

3,518

2,839

2,125

2,277

Earnings on bank-owned life insurance

750

811

786

743

677

Loss on sale of investment securities available-for-sale

(11)

(272)

(110)

(228)

Gain on sale of SBA loans

Other

119

204

(152)

351

Total noninterest income

4,033

4,261

3,635

2,650

3,107

NONINTEREST EXPENSE:

Salaries and employee benefits

24,808

21,109

19,560

18,179

18,341

Occupancy and equipment expense

3,349

2,845

2,861

2,783

2,834

Legal and professional

3,221

2,850

1,254

1,927

1,431

Data processing and network expense

1,414

1,087

1,203

1,162

1,120

Regulatory assessments

1,210

1,172

1,152

1,203

1,306

Advertising and marketing

639

733

499

503

409

Software purchases and maintenance

1,419

1,067

1,094

1,149

1,259

Loan operations and other real estate owned expense

537

397

439

269

Telephone and communications

144

126

134

115

175

Other

1,362

1,305

1,106

1,386

964

Total noninterest expense

38,103

32,691

28,892

28,846

28,108

NET INCOME BEFORE INCOME TAX

EXPENSE

18,995

21,522

22,829

21,048

17,346

Income tax expense

2,627

3,624

4,772

4,301

3,757

NET INCOME

16,368

17,898

18,057

16,747

13,589

Preferred stock dividends declared

1,171

1,197

1,185

1,171

NET INCOME AVAILABLE TO COMMON

SHAREHOLDERS

15,197

16,701

16,860

15,562

12,418

EARNINGS PER COMMON SHARE:

Basic earnings per share

1.03

1.21

1.22

1.12

0.90

Diluted earnings per share

0.88

1.02

1.03

0.96

0.78

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)

Three Months Ended

2026

2025

(Dollars in thousands, except share and per share data)

March 31

December 31

September 30

June 30

March 31

Earnings per common share, basic

1.03

1.21

1.22

1.12

0.90

Earnings per common share, diluted

0.88

1.02

1.03

0.96

0.78

Dividends on common stock

Dividends on Series A Convertible

Non-Cumulative Preferred Stock

16.88

17.25

17.06

16.88

Return on average assets (A)

1.08

1.36

1.41

1.38

1.17

Return on average common equity (A)

11.29

14.42

15.14

14.70

12.41

Return on average tangible common

equity (A) (B)

12.23

15.03

15.81

15.38

13.01

Net interest margin (A) (C)

3.67

4.10

4.22

3.80

Efficiency ratio (D)

66.06

57.90

53.03

55.45

61.23

Capital Ratios

Third Coast Bancshares, Inc. (consolidated):

Total common equity to total assets

8.88

8.70

8.84

8.70

8.45

Tangible common equity to tangible

assets (B)

8.11

8.38

8.51

8.35

8.09

Estimated Common equity tier 1 (to risk

weighted assets)

8.84

8.65

8.85

8.75

8.70

Estimated Tier 1 capital (to risk weighted

assets)

9.96

9.97

10.25

10.20

10.19

Estimated Total capital (to risk weighted

assets)

12.13

12.48

12.90

12.87

12.97

Estimated Tier 1 capital (to average

assets)

9.65

9.55

9.65

9.58

Third Coast Bank:

Estimated Common equity tier 1 (to risk

weighted assets)

12.23

12.59

12.56

12.69

Estimated Tier 1 capital (to risk weighted

assets)

12.23

12.59

12.56

12.69

Estimated Total capital (to risk weighted

assets)

13.02

13.14

13.53

13.46

13.63

Estimated Tier 1 capital (to average

assets)

11.84

11.75

11.89

11.93

Other Data

Weighted average common shares:

Basic

14,814,661

13,889,497

13,860,149

13,836,830

13,776,998

Diluted

18,560,056

17,552,204

17,524,288

17,391,128

17,440,826

Period end common shares outstanding

16,562,268

13,891,055

13,879,099

13,851,581

13,825,286

Book value per common share

35.28

33.47

32.25

31.04

29.92

Tangible book value per common share (B)

31.97

32.12

30.91

29.69

28.56

___________

(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 at the end of this news release.

(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, 2026

December 31, 2025

March 31, 2025

(Dollars in thousands)

Average

Outstanding

Balance

Interest

Earned/

Paid (3)

Average

Yield/

Rate (4)

Average

Outstanding

Balance

Interest

Earned/

Paid (3)

Average

Yield/

Rate (4)

Average

Outstanding

Balance

Interest

Earned/

Paid (3)

Average

Yield/

Rate (4)

Assets

Interest-earnings assets:

Loans, gross

4,972,780

85,893

7.01 %

4,294,376

81,368

7.52 %

3,979,859

73,087

7.45 %

Investment securities available-for-sale

402,372

6,107

6.16 %

399,694

6,464

6.42 %

398,115

5,693

5.80 %

Investment securities held-to-maturity

191,998

2,398

5.07 %

196,309

2,681

5.42 %

—

Federal funds sold and other interest-earning

assets

364,681

2,988

3.32 %

164,928

1,586

3.82 %

186,893

1,986

4.31 %

Total interest-earning assets

5,931,831

97,386

6.66 %

5,055,307

92,099

7.23 %

4,564,867

80,766

7.18 %

Less: allowance for loan losses

(48,822)

(42,984)

(40,595)

Total interest-earning assets, net of

allowance

5,883,009

5,012,323

4,524,272

Noninterest-earning assets

270,433

209,215

198,522

Total assets

6,153,442

5,221,538

4,722,794

Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing deposits

4,761,641

41,484

3.53 %

3,989,201

37,530

3.73 %

3,652,006

36,226

4.02 %

Note payable and line of credit

130,737

1,944

6.03 %

118,807

1,801

6.01 %

111,661

1,713

6.22 %

FHLB advances

40,155

313

3.16 %

56,483

571

4.01 %

2,551

4.77 %

Total interest-bearing liabilities

4,932,533

43,741

3.60 %

4,164,491

39,902

3.80 %

3,766,218

37,969

4.09 %

Noninterest-bearing deposits

549,111

477,198

423,780

Other liabilities

59,628

54,090

60,755

Total liabilities

5,541,272

4,695,779

4,250,753

Shareholders' equity

612,170

525,759

472,041

Total liabilities and shareholders'

equity

6,153,442

5,221,538

4,722,794

Net interest income

53,645

52,197

42,797

Net interest spread (1)

3.06 %

3.43 %

3.09 %

Net interest margin (2)

3.67 %

4.10 %

3.80 %

___________

(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.

(4) Annualized.

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)

Three Months Ended

2026

2025

(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

572,037

434,715

408,996

423,959

420,902

Non-farm non-residential non-owner occupied

929,598

710,401

687,924

666,840

633,227

Residential

543,804

333,419

334,583

323,898

335,285

Construction, development & other

894,767

823,353

826,566

784,364

846,166

Farmland

32,379

26,485

25,549

28,013

30,783

Commercial & industrial

2,182,864

1,906,616

1,772,045

1,724,583

1,605,243

Consumer

2,265

1,576

1,291

1,206

1,443

Municipal and other

93,744

158,186

108,162

126,873

114,990

Total loans

5,251,458

4,394,751

4,165,116

4,079,736

3,988,039

Asset Quality:

Nonaccrual loans

29,222

10,120

10,723

13,358

17,066

Loans > 90 days and still accruing

6,396

11,360

11,016

6,755

1,503

Total nonperforming loans

35,618

21,480

21,739

20,113

18,569

Other real estate owned

8,388

8,580

8,752

Total nonperforming assets

44,006

29,868

30,127

28,693

27,321

QTD Net (recoveries) charge-offs

(4)

844

(17)

2,376

398

Nonaccrual loans:

Real estate loans:

Commercial real estate:

Non-farm non-residential owner occupied

618

1,235

1,237

2,191

3,100

Non-farm non-residential non-owner occupied

17,140

111

Residential

374

387

214

637

2,616

Construction, development & other

603

344

358

Commercial & industrial

10,487

8,399

9,155

10,075

10,992

Total nonaccrual loans

29,222

10,120

10,723

13,358

17,066

Asset Quality Ratios:

Nonperforming assets to total assets

0.67

0.56

0.60

0.58

0.56

Nonperforming loans to total loans

0.68

0.49

0.52

0.49

0.47

Allowance for credit losses to total loans

0.98

1.00

1.02

0.98

1.01

QTD Net (recoveries) charge-offs to average loans

(annualized)

(0.00)

0.08

(0.00)

0.24

0.04

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 Common 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:

The calculations of these non-GAAP financial measures are as follows:

Three Months Ended

2026

2025

(Dollars in thousands, except share and per share data)

March 31

December 31

September 30

June 30

March 31

Tangible Common Equity:

Total shareholders' equity

650,530

531,027

513,830

496,115

479,786

Less: Preferred stock including additional

paid in capital

66,160

Total common equity

584,370

464,867

447,670

429,955

413,626

Less: Goodwill and core deposit intangibles,

net

54,883

18,680

18,720

18,761

18,801

Tangible common equity

529,487

446,187

428,950

411,194

394,825

Common shares outstanding at end of period

16,562,268

13,891,055

13,879,099

13,851,581

13,825,286

Book Value Per Common Share

35.28

33.47

32.25

31.04

29.92

Tangible Book Value Per Common Share

31.97

32.12

30.91

29.69

28.56

Tangible Assets:

Total assets

6,582,073

5,340,759

5,061,808

4,943,771

4,896,989

Adjustments: Goodwill and core deposit

intangibles, net

54,883

18,680

18,720

18,761

18,801

Tangible assets

6,527,190

5,322,079

5,043,088

4,925,010

4,878,188

Total Common Equity to Total Assets

8.88

8.70

8.84

8.70

8.45

Tangible Common Equity to Tangible Assets

8.11

8.38

8.51

8.35

8.09

Average Tangible Common Equity:

Average shareholders' equity

612,170

525,759

508,034

490,741

472,041

Less: Average preferred stock including

additional paid in capital

66,160

Average common equity

546,010

459,599

441,874

424,581

405,881

Less: Average goodwill and core deposit

intangibles, net

42,115

18,705

18,746

18,784

18,826

Average tangible common equity

503,895

440,894

423,128

405,797

387,055

Net Income

16,368

17,898

18,057

16,747

13,589

Less: Dividends declared on preferred stock

1,171

1,197

1,185

1,171

Net Income Available to Common Shareholders

15,197

16,701

16,860

15,562

12,418

Return on Average Common Equity (A)

11.29

14.42

15.14

14.70

12.41

Return on Average Tangible Common Equity (A)

12.23

15.03

15.81

15.38

13.01

___________

(A) Interim periods annualized.

Contact:

Ken Dennard / Natalie Hairston

Dennard Lascar Investor Relations

(713) 529-6600

[email protected]

SOURCE Third Coast Bancshares