Third Coast Bancshares (TCBX) Q2 2026 earnings summary

Executive summary

• Achieved record diluted EPS and net income of $22.0 million in Q2 2026, driven by double-digit net interest income growth, disciplined expense management, and the successful Keystone Bancshares acquisition.

• Completed the sale of substantially all assets of Third Coast Commercial Capital, Inc., recognizing a $3.5 million gain and entering a revenue sharing arrangement.

• Attracted experienced commercial bankers and completed the Keystone conversion, supporting long-term growth and reinforcing the merger's strategic rationale.

• Commercially focused bank with 21 branches across major Texas markets, emphasizing relationship-driven banking and diversified product offerings.

• Strategic initiatives include market expansion, product innovation, and disciplined underwriting to drive growth and shareholder value.

Financial highlights

• Total assets reached $6.74 billion as of June 30, 2026, up 26% year-over-year; loans grew to $5.44 billion and deposits to $5.86 billion.

• 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 improved to 3.83% from 3.67% in Q1 2026, though down from 4.22% in Q2 2025.

• Noninterest income surged to $7.7 million, mainly due to the $3.5 million gain on the TCC asset sale.

• Efficiency ratio improved to 56.51% from 66.06% in Q1 2026.

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.

• Management expects continued integration of Keystone, focus on organic growth, and aims for consistent top-quartile financial performance among peers.