Third Coast Bancshares (TCBX) investor relations material

Executive summary

• Achieved record diluted EPS and strong core profitability in Q2 2026, driven by double-digit net interest income growth, disciplined loan and deposit growth, and solid credit performance.

• Net income for Q2 2026 rose 31.3% year-over-year to $22.0 million, with net income available to common shareholders at $20.8 million.

• Completed the acquisition of Keystone Bancshares, expanding presence in Austin and increasing total assets to $6.74 billion as of June 30, 2026.

• Completed sale of Third Coast Commercial Capital assets, recognizing a $3.5 million gain and entering a revenue sharing arrangement, simplifying the organization and focusing on core banking.

• Attracted experienced commercial bankers in Q2, with similar hiring expected in Q3, supporting long-term growth.

Financial highlights

• Net interest income rose to $60.3 million, up 12.4% sequentially and 22.1% year-over-year, driven by organic loan growth and improved funding mix.

• Gross loans grew to $5.44 billion, up 3.5% sequentially and 33.3% year-over-year, with commercial and industrial lending accounting for nearly all growth.

• Total deposits reached $5.86 billion, up 2.5% sequentially and 36.8% year-over-year; non-interest-bearing deposits grew by $65.5 million.

• Net interest margin improved to 3.83% from 3.67% in Q1 2026 but declined from 4.22% in Q2 2025.

• Noninterest income surged 191.2% to $7.7 million, mainly due to a $3.5 million gain on sale of factored receivables.

Outlook and guidance

• Loan growth guidance remains $75–$125 million per quarter, with securitizations expected to impact reported growth.

• Net interest margin expected to remain flat or slightly up in Q3, with further upside from additional securitizations.

• Fee income projected to remain in the $4–$4.5 million range per quarter.

• Efficiency ratio targeted to improve to below 55% over time, with current run rate in the mid-to-high 50s.

• Management expects continued integration of Keystone and focus on organic growth.