Third Coast Bancshares (TCBX) investor relations material

Executive summary

• Achieved record diluted EPS in Q2 2026, driven by double-digit net interest income growth, disciplined expense management, and strong core profitability.

• Net income for Q2 2026 was $22.0 million, up from $16.4 million in Q1 2026 and $16.7 million in Q2 2025.

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

• Successfully completed the Keystone conversion, exceeding previous guidance for NIM and reinforcing confidence in the merger's strategic rationale.

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.

• Net interest margin expanded to 3.83%, surpassing the 3.75% post-merger target and improving from 3.67% in Q1 2026.

• 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 $140.4 million from Q1 and 36.8% year-over-year; non-interest-bearing deposits grew by $65.5 million.

• Noninterest income increased to $7.7 million, mainly due to the 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 remains focused on attracting talent, growing high-quality loans and deposits, and sustaining momentum through the second half of 2026.