Third Coast Bancshares (TCBX) Q4 2024 earnings summary

Executive summary

• Achieved 14 consecutive quarters of net interest income growth, with Q4 2024 net interest income up 7.6% sequentially and 16.4% year-over-year to $43.4 million.

• Full-year 2024 net income rose 42.8% to $47.7 million, with Q4 net income at $13.7 million.

• Loans grew by $327.6 million (9%) for the year, and deposits increased by $507.4 million (13.3%), with three new Texas branches opened.

• Book value per share grew 12.8% year-over-year to $28.65; tangible book value per share rose 13.6% to $27.29.

• Total assets increased 12.4% year-over-year to $4.94 billion.

Financial highlights

• Q4 2024 net interest income reached $43.4 million, up from $40.4 million in Q3 and $37.3 million in Q4 2023.

• Net interest margin for Q4 2024 was 3.71%, compared to 3.73% in Q3 and 3.61% in Q4 2023.

• Noninterest income for Q4 2024 was $2.9 million, up from $2.5 million in Q3 and $2.2 million in Q4 2023.

• Noninterest expenses rose in Q4 due to new hires, increased bonuses, and higher salary expenses.

• Efficiency ratio improved to 58.8% in Q4 2024 from 59.57% in Q3 and 66.89% in Q4 2023.

Outlook and guidance

• Targeting 2025 loan growth of approximately 8% (~$325 million), similar to 2024.

• Expecting deposit growth to mirror loan growth, maintaining a loan-to-deposit ratio around 95%.

• Anticipate continued improvement in efficiency ratio, with further cost savings from a core system conversion in the second half of 2025.

• Projecting stable margins and ongoing earnings growth, with non-interest income expected to remain strong.

• Management remains focused on sustaining growth momentum, innovating, and adapting to evolving market conditions.