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

Solid 2026 Third Quarter Results While Advancing Long-Term Growth Strategy

HOUSTON, Oct. 21, 2026 /PRNewswire/ -- Third Coast Bancshares, Inc. (NYSE and 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 third quarter financial results.

2026 Third Quarter Financial and Operational Highlights

"The third quarter reflects the underlying strength of our franchise and our continued focus on disciplined, relationship-driven growth," said Bart Caraway, Founder, Chairman, President, and Chief Executive Officer of Third Coast. "We saw healthy loan activity, continued progress in our funding base, stable credit performance, and another high in tangible book value per share. Additionally, our agreement to merge with Great Plains builds on the progress of our strategy and brings together two organizations with complementary strengths and shared values. We believe the transaction positions us to build an even stronger franchise capable of producing durable earnings and long-term stakeholder value."

Operating Results

Net Income and Earnings Per Common Share

Net income totaled $19.0 million for the third quarter of 2026, compared to $22.0 million for the second quarter of 2026 and $18.1 million for the third quarter of 2025. Net income available to common shareholders totaled $17.8 million for the third quarter of 2026, compared to $20.8 million for the second quarter of 2026 and $16.9 million for the third quarter of 2025. The quarter-over-quarter decrease from the second quarter of 2026 was primarily due to the reduction of gain on sale of factored receivables from the second quarter of 2026 and an increase in merger and acquisition-related expenses during the third quarter of 2026. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended September 30, 2026, June 30, 2026 and September 30, 2025.

Basic and diluted earnings per common share were $1.07 per share and $0.93 per share, respectively, in the third quarter of 2026, compared to $1.25 per share and $1.08 per share, respectively, in the second quarter of 2026 and $1.22 per share and $1.03 per share, respectively, in the third quarter of 2025. In the third quarter of 2026, diluted earnings per common share as adjusted (non-GAAP) (1) was $1.06, compared to $0.98 diluted earnings per common share as adjusted (non-GAAP) (1) in the second quarter of 2026.

Net Interest Margin and Net Interest Income

The net interest margin for the third quarter of 2026 was 3.70%, compared to 3.83% for the second quarter of 2026 and 4.10% for the third quarter of 2025. The yield on loans for the third quarter of 2026 was 6.95%, compared to 7.06% for the second quarter of 2026 and 7.79% for the third quarter of 2025. The cost of interest-bearing deposits for the third quarter of 2026 was 3.49%, compared to 3.41% for the second quarter of 2026 and 3.98% for the third quarter of 2025.

Net interest income totaled $59.5 million for the third quarter of 2026, a decrease of 1.2% from $60.3 million for the second quarter of 2026 and an increase of 17.1% from $50.8 million for the third quarter of 2025. Interest income totaled $106.7 million for the third quarter of 2026, an increase of 0.7% from $106.0 million for the second quarter of 2026 and an increase of 15.4% from $92.5 million for the third quarter of 2025. Interest expense was $47.2 million for the third quarter of 2026, an increase of $1.5 million, or 3.2%, from $45.7 million for the second quarter of 2026, and an increase of $5.5 million, or 13.3%, from $41.7 million for the third quarter of 2025.

Noninterest Income and Noninterest Expense

Noninterest income totaled $6.3 million for the third quarter of 2026, compared to $7.7 million for the second quarter of 2026 and $3.6 million for the third quarter of 2025. The quarter-over-quarter decrease from the second quarter of 2026 was primarily due to the reduction of gain on sale of factored receivables from the second quarter of 2026 partially offset by increased service charges and fees during the third quarter of 2026. Noninterest expense increased to $41.6 million for the third quarter of 2026, compared to $38.4 million for the second quarter of 2026 and $28.9 million for the third quarter of 2025. The quarter-over-quarter increase from the second quarter of 2026 was primarily due to merger and acquisition-related costs of $3.2 million. At September 30, 2026, the number of employees decreased to 499, compared to 504 at June 30, 2026.

The efficiency ratio was 63.10% for the third quarter of 2026, compared to 56.51% for the second quarter of 2026 and 53.03% for the third quarter of 2025.

Balance Sheet Highlights

Loan Portfolio and Composition

For the quarter ended September 30, 2026, gross loans increased to $5.49 billion, an increase of $57.1 million, or 1.1%, from $5.44 billion as of June 30, 2026, and an increase of $1.33 billion, or 31.9%, from $4.17 billion as of September 30, 2025. The Bank completed a securitization of $87.5 million of commercial real estate loans during the third quarter of 2026. Real estate loans accounted for the majority of the loan growth for the third quarter of 2026, with real estate loans increasing $67.1 million from the second quarter of 2026, partially offset by municipal and other loans decreasing $9.2 million from the second quarter of 2026.

Asset Quality

Nonperforming loans at September 30, 2026 were $29.0 million, compared to $27.1 million at June 30, 2026 and $21.7 million at September 30, 2025. The increase in nonperforming loans during the third quarter of 2026 was primarily due to $2.3 million in SBA loans placed on nonaccrual. As of September 30, 2026, the nonperforming loans to total loans ratio was 0.53%, compared to 0.50% as of June 30, 2026 and 0.52% as of September 30, 2025.

The provision for credit losses recorded for the third quarter of 2026 was $540,000, and the allowance for credit losses of $54.4 million represented 0.99% of the $5.49 billion in gross loans outstanding as of September 30, 2026. The provision for credit losses recorded for the second quarter of 2026 was $2.1 million, and the allowance for credit losses of $53.6 million represented 0.99% of the $5.44 billion in gross loans outstanding as of June 30, 2026.

The Company recorded net recoveries of $27,000 and $17,000 for the three months ended September 30, 2026 and September 30, 2025, respectively.

Deposits and Composition

Deposits totaled $5.92 billion as of September 30, 2026, an increase of 1.2% from $5.86 billion as of June 30, 2026, and an increase of 35.5% from $4.37 billion as of September 30, 2025. Noninterest-bearing demand deposits increased from $642.7 million as of June 30, 2026 to $721.2 million as of September 30, 2026 and represented 12.2% and 11.0% of total deposits as of September 30, 2026 and June 30, 2026, respectively. As of September 30, 2026, interest-bearing demand deposits decreased $141.1 million, or 3.3%, time deposits increased $126.1 million, or 14.6%, and savings accounts increased $5.9 million, or 21.1%, respectively, from June 30, 2026.

The average cost of deposits was 3.09% for the third quarter of 2026, representing a 4-basis point increase from the second quarter of 2026 and a 47-basis point decrease from the third quarter of 2025. The quarter-over-quarter increase was primarily due to the increase in rates paid on interest-bearing demand deposits.

Earnings Conference Call

Third Coast has scheduled a conference call to discuss its 2026 third quarter results, which will be broadcast live over the Internet, on Thursday, October 22, 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 October 29, 2026, and may be accessed by dialing 201-612-7415 and using passcode 13757906#. 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 20 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 (the "Securities Act"), 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 occurrence of any event, change or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement providing for the acquisition of Great Plains by Third Coast; the outcome of any legal proceedings that may be instituted against Third Coast or Great Plains; the possibility that the transaction does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction); the risk that the benefits from the transaction 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 Great Plains operate; disruption to the parties' businesses as a result of the announcement and pendency of the transaction; 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 transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Third Coast's or Great Plains' customers, suppliers, employees or other business partners, including those resulting from the announcement or completion of the transaction; the dilution caused by Third Coast's issuance of additional shares of its common stock in connection with the transaction; a material adverse change in the financial condition of Third Coast or Great Plains; the diversion of management's attention and time from ongoing business operations and opportunities on merger-related matters; and other factors that may affect future results of Third Coast and Great Plains 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, Return on Average Tangible Common Equity, Return on Average Assets as Adjusted (Non-GAAP), Return on Average Common Equity as Adjusted (Non-GAAP), Return on Average Tangible Common Equity as Adjusted (Non-GAAP), Net Income as Adjusted (Non-GAAP), and Diluted Earnings Per Common Share as Adjusted (Non-GAAP), 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)

September 30

June 30

March 31

December 31

September 30

ASSETS

Cash and cash equivalents:

Cash and due from banks

359,763

404,165

425,174

175,202

116,383

Federal funds sold

6,051

6,732

6,133

6,027

6,629

Total cash and cash equivalents

365,814

410,897

431,307

181,229

123,012

Interest bearing time deposits in other banks

276

273

270

267

265

Investment securities available-for-sale

461,524

405,251

435,846

383,192

376,719

Investment securities held to maturity

191,924

191,952

191,980

192,008

206,037

Loans held for investment

5,493,503

5,436,414

5,251,458

4,394,751

4,165,116

Less: allowance for credit losses

(54,418)

(53,591)

(51,455)

(43,949)

(42,563)

Loans held for investment, net

5,439,085

5,382,823

5,200,003

4,350,802

4,122,553

Accrued interest receivable

32,083

30,306

31,385

29,236

29,537

Premises and equipment, net

40,645

40,178

40,558

24,789

24,718

Other real estate owned

26,999

27,321

8,388

Bank-owned life insurance

77,100

77,856

77,107

76,357

75,547

Non-marketable securities, at cost

24,860

23,538

21,759

16,424

26,157

Deferred tax asset, net

26,644

23,843

7,493

6,450

6,989

Derivative assets

5,307

2,594

2,350

2,544

2,803

Right-of-use assets - operating leases

16,833

16,953

17,615

17,066

17,677

Core deposit intangibles, net

7,655

8,081

8,516

646

686

Goodwill

46,079

46,367

18,034

Other assets

42,792

47,556

61,129

33,327

22,686

Total assets

6,805,620

6,735,501

6,582,073

5,340,759

5,061,808

LIABILITIES

Deposits:

Noninterest bearing

721,194

642,748

577,217

495,000

450,013

Interest bearing

5,203,574

5,212,718

5,137,860

4,131,888

3,922,728

Total deposits

5,924,768

5,855,466

5,715,077

4,626,888

4,372,741

Accrued interest payable

6,910

5,872

7,205

5,957

7,153

Derivative liabilities

10,368

4,289

3,517

3,142

3,521

Lease liability - operating leases

17,887

18,011

18,676

18,130

18,735

Other liabilities

27,260

39,647

48,177

36,775

32,040

Line of credit - Senior Debt

62,375

60,375

57,875

37,875

32,875

Note payable - Subordinated Debentures, net

81,120

81,068

81,016

80,965

80,913

Total liabilities

6,130,688

6,064,728

5,931,543

4,809,732

4,547,978

SHAREHOLDERS' EQUITY

Series A Convertible Non-Cumulative Preferred

Stock

Series B Convertible Perpetual Preferred Stock

Common stock

16,742

16,718

16,641

13,970

13,958

Common stock - non-voting

Additional paid-in capital

431,086

429,931

428,815

323,929

323,491

Retained earnings

237,045

219,238

198,435

183,238

166,537

Accumulated other comprehensive (loss) income

(8,911)

5,916

7,669

10,920

10,874

Treasury stock, at cost

(1,099)

Total shareholders' equity

674,932

670,773

650,530

531,027

513,830

Total liabilities and shareholders' equity

6,805,620

6,735,501

6,582,073

5,340,759

5,061,808

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)

Three Months Ended

Nine Months Ended

2026

2025

2026

2025

(Dollars in thousands, except per share

data)

September

June 30

March 31

December

September

INTEREST INCOME:

Loans, including fees

94,593

94,584

85,893

81,368

82,054

275,070

234,847

Investment securities available-for-sale

7,020

6,482

6,107

6,464

6,289

19,609

17,487

Investment securities held-to-maturity

2,359

2,549

2,398

2,681

2,882

7,306

4,489

Federal funds sold and other

2,754

2,374

2,988

1,586

1,278

8,116

5,108

Total interest income

106,726

105,989

97,386

92,099

92,503

310,101

261,931

INTEREST EXPENSE:

Deposit accounts

44,709

43,384

41,484

37,530

39,030

129,577

112,791

FHLB advances and other borrowings

2,471

2,329

2,257

2,372

2,624

7,057

6,120

Total interest expense

47,180

45,713

43,741

39,902

41,654

136,634

118,911

Net interest income

59,546

60,276

53,645

52,197

50,849

173,467

143,020

Provision for credit losses

540

2,069

580

2,245

2,763

3,189

5,343

Net interest income after credit loss expense

59,006

58,207

53,065

49,952

48,086

170,278

137,677

NONINTEREST INCOME:

Service charges and fees

4,293

3,174

3,175

3,518

2,839

10,642

7,241

Earnings on bank-owned life insurance

797

748

750

811

786

2,295

2,206

Loss on sale of investment securities

available-for-sale

(93)

(11)

(272)

(104)

(338)

Gain on sale of factored receivables

3,463

Gain on sale of SBA loans

Other

1,231

425

119

204

1,775

209

Total noninterest income

6,321

7,717

4,033

4,261

3,635

18,071

9,392

NONINTEREST EXPENSE:

Salaries and employee benefits

24,981

24,804

24,808

21,109

19,560

74,593

56,080

Occupancy and equipment expense

3,414

3,259

3,349

2,845

2,861

10,022

8,478

Legal and professional

4,869

2,271

3,221

2,850

1,254

10,361

4,612

Data processing and network expense

1,578

1,595

1,414

1,087

1,203

4,587

3,485

Regulatory assessments

1,430

1,331

1,210

1,172

1,152

3,971

3,661

Advertising and marketing

799

737

639

733

499

2,175

1,411

Software purchases and maintenance

1,573

1,421

1,419

1,067

1,094

4,413

3,502

Loan operations and other real estate

owned expense

1,018

656

537

397

2,211

737

Telephone and communications

166

158

144

126

134

468

424

Other

1,733

2,192

1,362

1,305

1,106

5,287

3,456

Total noninterest expense

41,561

38,424

38,103

32,691

28,892

118,088

85,846

NET INCOME BEFORE INCOME TAX

EXPENSE

23,766

27,500

18,995

21,522

22,829

70,261

61,223

Income tax expense

4,762

5,513

2,627

3,624

4,772

12,902

12,830

NET INCOME

19,004

21,987

16,368

17,898

18,057

57,359

48,393

Preferred stock dividends declared

1,197

1,184

1,171

1,197

3,552

3,553

NET INCOME AVAILABLE TO

COMMON

SHAREHOLDERS

17,807

20,803

15,197

16,701

16,860

53,807

44,840

EARNINGS PER COMMON SHARE:

Basic earnings per share

1.07

1.25

1.03

1.21

1.22

3.36

3.24

Diluted earnings per share

0.93

1.08

0.88

1.02

1.03

2.90

2.77

Third Coast Bancshares, Inc. and Subsidiary

Financial Highlights

(unaudited)

Three Months Ended

Nine Months Ended

2026

2025

2026

2025

(Dollars in thousands, except

share and per share data)

September

June 30

March 31

December

September

Earnings per common share, basic

1.07

1.25

1.03

1.21

1.22

3.36

3.24

Earnings per common share, diluted

0.93

1.08

0.88

1.02

1.03

2.90

2.77

Dividends on common stock

Dividends on Series A Convertible

Non-Cumulative Preferred Stock

17.25

17.06

16.88

17.25

51.19

Return on average assets (A)

1.13

1.34

1.08

1.36

1.41

1.19

1.32

Return on average common equity (A)

11.49

13.96

11.29

14.42

15.14

12.27

14.13

Return on average tangible common

equity (A) (B)

12.59

15.36

12.23

15.03

15.81

13.42

14.79

Net interest margin (A) (C)

3.70

3.83

3.67

4.10

3.73

4.05

Efficiency ratio (D)

63.10

56.51

66.06

57.90

53.03

61.65

56.32

Capital Ratios

Third Coast Bancshares, Inc.

(consolidated):

Total common equity to total assets

8.95

8.98

8.88

8.70

8.84

8.95

8.84

Tangible common equity to tangible

assets (B)

8.22

8.24

8.11

8.38

8.51

8.22

8.51

Estimated Common equity tier 1 (to risk

weighted assets)

9.20

8.82

8.84

8.65

8.85

9.20

8.85

Estimated Tier 1 capital (to risk weighted

assets)

10.28

9.89

9.96

9.97

10.25

10.28

10.25

Estimated Total capital (to risk weighted

assets)

12.45

12.01

12.13

12.48

12.90

12.45

12.90

Estimated Tier 1 capital (to average

assets)

9.55

9.35

9.65

9.55

Third Coast Bank:

Estimated Common equity tier 1 (to risk

weighted assets)

12.56

12.10

12.23

12.59

12.56

12.59

Estimated Tier 1 capital (to risk weighted

assets)

12.56

12.10

12.23

12.59

12.56

12.59

Estimated Total capital (to risk weighted

assets)

13.41

12.91

13.02

13.14

13.53

13.41

13.53

Estimated Tier 1 capital (to average

assets)

11.66

11.44

11.84

11.75

11.66

11.75

Other Data

Weighted average common shares:

Basic

16,655,357

16,591,144

14,814,661

13,889,497

13,860,149

16,027,130

13,824,963

Diluted

20,435,618

20,334,205

18,560,056

17,552,204

17,524,288

19,783,163

17,452,385

Period end common shares

outstanding

16,664,058

16,639,127

16,562,268

13,891,055

13,879,099

16,664,058

13,879,099

Book value per common share

36.53

36.34

35.28

33.47

32.25

36.53

32.25

Tangible book value per common

share (B)

33.31

33.08

31.97

32.12

30.91

33.31

30.91

(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

September 30, 2026

June 30, 2026

September 30, 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

5,396,683

94,593

6.95 %

5,371,846

94,584

7.06 %

4,179,027

82,054

7.79 %

Investment securities available-

for-sale

492,929

7,020

5.65 %

432,863

6,482

6.01 %

410,073

6,289

6.08 %

Investment securities held-to-

maturity

192,152

2,359

4.87 %

191,970

2,549

5.33 %

206,055

2,882

5.55 %

Federal funds sold and other

interest-

earning assets

299,444

2,754

3.65 %

315,434

2,374

3.02 %

123,680

1,278

4.10 %

Total interest-earning assets

6,381,208

106,726

6.64 %

6,312,113

105,989

6.73 %

4,918,835

92,503

7.46 %

Less: allowance for credit losses

(53,612)

(52,533)

(40,427)

Total interest-earning assets, net

allowance

6,327,596

6,259,580

4,878,408

Noninterest-earning assets

325,704

330,121

213,210

Total assets

6,653,300

6,589,701

5,091,618

Liabilities and Shareholders'

Equity

Interest-bearing liabilities:

Interest-bearing deposits

5,084,277

44,709

3.49 %

5,108,166

43,384

3.41 %

3,892,726

39,030

3.98 %

Note payable and line of credit

142,832

2,155

5.99 %

139,733

2,091

6.00 %

113,560

1,754

6.13 %

FHLB advances

31,986

316

3.92 %

24,719

238

3.86 %

73,476

870

4.70 %

Total interest-bearing liabilities

5,259,095

47,180

3.56 %

5,272,618

45,713

3.48 %

4,079,762

41,654

4.05 %

Noninterest-bearing deposits

654,281

599,000

453,980

Other liabilities

58,749

54,236

49,842

Total liabilities

5,972,125

5,925,854

4,583,584

Shareholders' equity

681,175

663,847

508,034

Total liabilities and

shareholders'

equity

6,653,300

6,589,701

5,091,618

Net interest income

59,546

60,276

50,849

Net interest spread (1)

3.08 %

3.25 %

3.41 %

Net interest margin (2)

3.70 %

3.83 %

4.10 %

(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)

Nine Months Ended

September 30, 2026

September 30, 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)

Assets

Interest-earnings assets:

Loans, gross

5,248,655

275,070

7.01 %

4,060,615

234,847

7.73 %

Investment securities available-for-sale

443,053

19,609

5.92 %

396,919

17,487

5.89 %

Investment securities held-to-maturity

192,041

7,306

5.09 %

108,575

4,489

5.53 %

Federal funds sold and other interest-earning

assets

325,802

8,116

3.33 %

159,941

5,108

4.27 %

Total interest-earning assets

6,209,551

310,101

6.68 %

4,726,050

261,931

7.41 %

Less: allowance for credit losses

(51,673)

(40,550)

Total interest-earning assets, net of allowance

6,157,878

4,685,500

Noninterest-earning assets

309,434

207,355

Total assets

6,467,312

4,892,855

Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing deposits

4,985,877

129,577

3.47 %

3,771,393

112,791

4.00 %

Note payable and line of credit

137,812

6,190

6.01 %

112,318

5,186

6.17 %

FHLB advances and other

32,257

867

3.59 %

26,574

934

4.70 %

Total interest-bearing liabilities

5,155,946

136,634

3.54 %

3,910,285

118,911

4.07 %

Noninterest-bearing deposits

601,182

436,412

Other liabilities

57,538

55,754

Total liabilities

5,814,666

4,402,451

Shareholders' equity

652,646

490,404

Total liabilities and shareholders' equity

6,467,312

4,892,855

Net interest income

173,467

143,020

Net interest spread (1)

3.14 %

3.34 %

Net interest margin (2)

3.73 %

4.05 %

(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)

September 30

June 30

March 31

December 31

September 30

Period-end Loan Portfolio:

Real estate loans:

Commercial real estate:

Non-farm non-residential owner occupied

609,699

583,989

572,037

434,715

408,996

Non-farm non-residential non-owner occupied

988,249

932,147

929,598

710,401

687,924

Residential

514,474

530,189

543,804

333,419

334,583

Construction, development & other

888,908

887,805

894,767

823,353

826,566

Farmland

32,841

32,898

32,379

26,485

25,549

Commercial & industrial

2,368,844

2,369,582

2,182,864

1,906,616

1,772,045

Consumer

1,715

1,871

2,265

1,576

1,291

Municipal and other

88,773

97,933

93,744

158,186

108,162

Total loans

5,493,503

5,436,414

5,251,458

4,394,751

4,165,116

Asset Quality:

Nonaccrual loans

23,050

21,557

29,222

10,120

10,723

Loans > 90 days and still accruing

5,929

5,555

6,396

11,360

11,016

Total nonperforming loans

28,979

27,112

35,618

21,480

21,739

Other real estate owned

26,999

27,321

8,388

Total nonperforming assets

55,978

54,433

44,006

29,868

30,127

QTD Net (recoveries) charge-offs

(27)

(150)

(5)

844

(17)

Nonaccrual loans:

Real estate loans:

Commercial real estate:

Non-farm non-residential owner occupied

5,129

3,320

618

1,235

1,237

Non-farm non-residential non-owner occupied

5,365

5,584

17,140

111

Residential

198

374

387

214

Construction, development & other

603

Commercial & industrial

12,556

12,455

10,487

8,399

9,155

Total nonaccrual loans

23,050

21,557

29,222

10,120

10,723

Asset Quality Ratios:

Nonperforming assets to total assets

0.82

0.81

0.67

0.56

0.60

Nonperforming loans to total loans

0.53

0.50

0.68

0.49

0.52

Allowance for credit losses to total loans

0.99

0.98

1.00

1.02

QTD Net (recoveries) charge-offs to average loans

(annualized)

(0.00)

(0.01)

(0.00)

0.08

(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 Common Share, Tangible Common Equity to Tangible Assets, Return on Average Tangible Common Equity, Return on Average Assets as Adjusted (Non-GAAP), Return on Average Common Equity as Adjusted (Non-GAAP), Return on Average Tangible Common Equity as Adjusted (Non-GAAP), Net Income as Adjusted (Non-GAAP), and Diluted Earnings Per Common Share as Adjusted (Non-GAAP) 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 and results of operations of the company:

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

Three Months Ended

Nine Months Ended

2026

2025

2026

2025

(Dollars in thousands, except

share and per share data)

September

June 30

March 31

December

September

Tangible Common Equity:

Total shareholders' equity

674,932

670,773

650,530

531,027

513,830

674,932

513,830

Less: Preferred stock including

additional

paid in capital

66,160

Total common equity

608,772

604,613

584,370

464,867

447,670

608,772

447,670

Less: Goodwill and core deposit

intangibles,

net

53,734

54,160

54,883

18,680

18,720

53,734

18,720

Tangible common equity

555,038

550,453

529,487

446,187

428,950

555,038

428,950

Common shares outstanding at end

of period

16,664,058

16,639,127

16,562,268

13,891,055

13,879,099

16,664,058

13,879,099

Book Value Per Common Share

36.53

36.34

35.28

33.47

32.25

36.53

32.25

Tangible Book Value Per

Common Share

33.31

33.08

31.97

32.12

30.91

33.31

30.91

Tangible Assets:

Total assets

6,805,620

6,735,501

6,582,073

5,340,759

5,061,808

6,805,620

5,061,808

Adjustments: Goodwill and core

deposit

intangibles, net

53,734

54,160

54,883

18,680

18,720

53,734

18,720

Tangible assets

6,751,886

6,681,341

6,527,190

5,322,079

5,043,088

6,751,886

5,043,088

Total Common Equity to Total

Assets

8.95

8.98

8.88

8.70

8.84

8.95

8.84

Tangible Common Equity to

Tangible Assets

8.22

8.24

8.11

8.38

8.51

8.22

8.51

Average Tangible Common

Equity:

Average shareholders' equity

681,175

663,847

612,170

525,759

508,034

652,646

490,404

Less: Average preferred stock

including

additional paid in capital

66,160

Average common equity

615,015

597,687

546,010

459,599

441,874

586,486

424,244

Less: Average goodwill and core

deposit

intangibles, net

54,007

54,580

42,115

18,705

18,746

50,277

18,785

Average tangible common equity

561,008

543,107

503,895

440,894

423,128

536,209

405,459

Net Income

19,004

21,987

16,368

17,898

18,057

57,359

48,393

Less: Dividends declared on

preferred stock

1,197

1,184

1,171

1,197

3,552

3,553

Net Income Available to Common

Shareholders

17,807

20,803

15,197

16,701

16,860

53,807

44,840

Return on Average Common

Equity (A)

11.49

13.96

11.29

14.42

15.14

12.27

14.13

Return on Average Tangible

Common Equity (A)

12.59

15.36

12.23

15.03

15.81

13.42

14.79

(A) Interim periods annualized.

Three Months Ended

Nine Months Ended

2026

2025

2026

2025

(Dollars in thousands, except share and

per share data)

September

June 30

March 31

December

September

Net Income as adjusted (non-GAAP)

Net income

19,004

21,987

16,368

17,898

18,057

57,359

48,393

Pre-tax adjustments:

Acquisition-related accelerated

amortization on

loan fair value marks

637

228

549

1,414

Gain on sale of factored receivables

(3,463)

Acquisition-related salaries and

employee

benefits

391

497

1,310

2,198

Acquisition-related other professional

expense

2,179

130

1,276

505

3,585

Total pre-tax adjustments

3,207

(2,608)

3,135

505

3,734

Tax-effect of adjustments

589

(479)

576

686

Total adjustments after tax

2,618

(2,129)

2,559

420

3,048

Net income as adjusted (non-GAAP)

21,622

19,858

18,927

18,318

18,057

60,407

48,393

Preferred stock dividends

1,197

1,184

1,171

1,197

3,552

3,553

Net income available to common

shareholders

as adjusted (non-GAAP)

20,425

18,674

17,756

17,121

16,860

56,855

44,840

Diluted earnings per share

0.93

1.08

0.88

1.02

1.03

2.90

2.77

Adjustments after-tax

0.13

(0.10)

0.14

0.02

0.15

Diluted earnings per common share as

adjusted

(non-GAAP)

1.06

0.98

1.02

1.04

1.03

3.05

2.77

Return on average assets

1.13

1.34

1.08

1.36

1.41

1.19

1.32

Return on average assets as adjusted

(non-GAAP) (A)

1.29

1.21

1.25

1.39

1.41

1.25

1.32

Return on average common equity as

adjusted

(non-GAAP) (A)

13.18

12.53

13.19

14.78

15.14

12.96

14.13

Return on average tangible common

equity

as adjusted (non-GAAP) (A)

14.44

13.79

14.29

15.41

15.81

14.18

14.79

(A) Interim periods annualized.

No Offer or Solicitation

This communication is being made in respect of the proposed merger transaction involving Third Coast and Great Plains. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or the solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act and otherwise in accordance with applicable law.

Important Additional Information and Where to Find It

Third Coast intends to file a registration statement on Form S-4 with the SEC, which will include a joint proxy statement of Great Plains and Third Coast that also constitutes a prospectus of Third Coast, and Third Coast will file other documents regarding the proposed transaction with the SEC. A definitive joint proxy statement/prospectus will also be sent to Great Plains' and Third Coast's shareholders seeking the required shareholder approvals of the proposed transaction.

INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4 AND THE JOINT PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 WHEN THEY BECOME AVAILABLE, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT ON FORM S-4 AND THE JOINT PROXY STATEMENT/PROSPECTUS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING THIRD COAST, GREAT PLAINS, THE TRANSACTION AND RELATED MATTERS.

The documents filed by Third Coast with the SEC may be obtained free of charge at the SEC's website at www.sec.gov. In addition, the documents filed by Third Coast may be obtained free of charge at its website at https://ir.thirdcoast.bank/financials/sec-filings/. Alternatively, these documents, when available, can be obtained free of charge from Third Coast upon written request to Third Coast Bancshares, Inc., Attn: Investor Relations, 1800 West Loop South, Suite 875, Houston, TX 77027, or by calling (713) 960-1300.

Participants in this Transaction

Third Coast, Great Plains, their respective directors and executive officers and certain of their other members of management and employees may be deemed to be participants in the solicitation of proxies from Great Plains' shareholders and Third Coast's shareholders in connection with the proposed transaction. Information about the directors and executive officers of Third Coast may be found in Third Coast's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 4, 2026 and in Third Coast's proxy statement for its 2026 Annual Meeting of Shareholders, as filed with the SEC on April 16, 2026, copies of which can be obtained free of charge from Third Coast or from the SEC's website as indicated above. To the extent the holdings of Third Coast's securities by its directors and executive officers have changed since the amounts set forth in Third Coast's proxy statement for its 2026 Annual Meeting of Shareholders, such changes have been or will be reflected on Statements of Changes in Beneficial Ownership of Securities on Form 4 filed with the SEC. Additional information regarding the interests of these participants and other persons who may be deemed participants in the transaction will be included in the joint proxy statement/prospectus and other relevant materials when filed with the SEC.

Contact:

Ken Dennard / Natalie Hairston

Dennard Lascar Investor Relations

(713) 529-6600

[email protected]

SOURCE Third Coast Bancshares