Third Coast Bancshares (TCBX) investor relations material

Executive summary

• Net income for Q2 2025 was $16.7 million, up 23% sequentially and 55% year-over-year, with record EPS and strong profitability.

• Total assets reached $4.94 billion, loans $4.08 billion, and deposits $4.28 billion as of June 30, 2025, reflecting continued organic loan growth and a shift in deposit mix.

• Achieved record profitability, improved efficiency, and maintained high credit standards with a diversified and expanding portfolio.

• Completed two commercial real estate loan securitizations totaling $250 million, enhancing risk management and competitive positioning.

• Shareholders' equity rose to $496.1 million, up 7.7% from year-end 2024.

Financial highlights

• Net interest income grew 15.4% sequentially and 27.1% year-over-year to $49.4 million in Q2 2025, aided by $2 million in securitization fee income.

• Net interest margin expanded to 4.22% in Q2 2025 from 3.80% in Q1 2025 and 3.62% in Q2 2024.

• Noninterest income rose 10.1% year-over-year for the first half, mainly from higher service charges and BOLI income, offset by securities losses.

• Noninterest expenses increased 10.5% year-over-year, with $500K tied to securitizations and higher salaries, legal/professional fees, and regulatory assessments.

• Deposits grew by $32 million sequentially and 11% year-over-year; loan-to-deposit ratio at 95%.

Outlook and guidance

• Projecting net interest margin of 3.90%–3.95% for Q3 and Q4, assuming no new securitizations.

• Loan growth guidance remains $50M–$100M per quarter, targeting 8% annualized growth.

• Management expects to maintain compliance with all regulatory capital standards and to monitor growth to remain well capitalized.

• Expecting two Fed rate cuts before year-end and prepared to manage margin accordingly.

• ROA expected to be in the 1.25%–1.30% range for the remainder of the year.