THIRD COAST BANCSHARES, INC. REPORTS STRONG 2021 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS

Completed successful IPO on November 12, 2021

Robust Fourth Quarter Loan Growth Exceeds Plan

PR Newswire

HUMBLE, Texas, Jan. 27, 2022 /PRNewswire/ — Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the “Company” or “Third Coast”), the bank holding company for Third Coast Bank, SSB, today reported its 2021 fourth quarter and full year financial results.

Fourth Quarter 2021 Financial and Operational Highlights

  • Completed successful initial public offering on November 12, 2021.
  • Loans held for investment increased $456.3 million, 28.3% from quarter to quarter, or 113.2% annualized, for the three months ended December 31, 2021.
  • Net interest margin for the fourth quarter of 2021 was 4.78%. The net interest margin was increased by 48 basis points from the accretion of Paycheck Protection Program (PPP) loan fees during the fourth quarter of 2021.
  • Book value per share and tangible book value per share(1) increased to $22.39 and $20.94, respectively, at December 31, 2021.
  • Noninterest-bearing demand deposits increased $167.0 million, or 45.8%, from September 30, 2021.
  • Due to the robust loan growth in the fourth quarter described above, a provision for loan loss of $6.1 million was recorded for the quarter resulting in an 110 basis point reduction in the return on average assets for the fourth quarter. Return on average assets was 0.06% for the fourth quarter on an annualized basis. 

“I would like to congratulate our Third Coast team on another outstanding quarter of impressive financial and operational results,” stated Bart Caraway, Third Coast’s President and Chief Executive Officer. “Our fourth quarter results represent significantly improved organic growth primarily due to the exceptional performance of our legacy producers, the hiring of approximately 50 financial professionals and the addition of new product lines during the second half of 2021. Due in part to our commitment to serving our communities through the Paycheck Protection Program during the COVID-19 pandemic, coupled with our recruiting efforts during the year 2021, we have continued to attract additional high quality producing talent in 2022, which we believe will translate into continued outsized organic growth.

“We believe we are well positioned to continue to gain market share through our robust organic loan growth as we develop relationships with prospects, deepen relationships with existing customers, and advance our internal platform and processes in anticipation of the future. We are excited about the operating leverage and consequential earnings power we expect to generate through the added scale that continues to be our focus in 2022,” added Mr. Caraway.

Loan Portfolio and Composition

During the fourth quarter of 2021, gross loans increased to $2.07 billion as of December 31, 2021, an increase of 28.3% from $1.61 billion as of September 30, 2021, and an increase of 32.9% from $1.56 billion as of December 31, 2020. PPP loans declined to $81.6 million at December 31, 2021 from $171.3 million at September 30, 2021. Excluding the effect of PPP loan forgiveness, the loan portfolio as of December 31, 2021 increased by $546.0 million, or 37.9% from quarter to quarter, or 151.5% annualized, from September 30, 2021. Strong loan demand has allowed the current loan pipeline to remain at historically elevated levels. 

Asset Quality

Asset quality improved during the fourth quarter of 2021 with non-performing loans declining $1.4 million, or 8.0%, from the third quarter of 2021. Economic activity continues to improve despite lingering inflationary pressures, including supply chain and labor shortages resulting from the COVID-19 pandemic. The provision for loan losses recorded for the fourth quarter of 2021 was $6.1 million, which served to increase the allowance to $19.3 million, or 0.9% of the $2.07 billion in gross loans outstanding as of December 31, 2021. Provision expense for the fourth quarter of 2021 related primarily to the provisioning for new loans.

As of December 31, 2021, the nonperforming loans to loans held for investment ratio remains low at 0.75%, which decreased from 1.05% at September 30, 2021, and decreased from 0.80% as of December 31, 2020. Net charge-offs were 16 basis points for the year ended December 31, 2021 compared to 26 basis points for the year ended December 31, 2020.

Deposits and Composition

Deposits totaled $2.14 billion as of December 31, 2021, an increase of 17.9% from $1.82 billion as of September 30, 2021, and an increase of 31.1% from $1.63 billion as of December 31, 2020. Noninterest-bearing demand deposits increased $167.0 million, or 45.8%, from September 30, 2021, and increased $204.0 million, or 62.3%, from December 31, 2020. Noninterest-bearing demand deposits represented 24.8% of total deposits as of December 31, 2021, up from 20.1% of total deposits as of September 30, 2021, and 20.0% of total deposits as of December 31, 2020.  Interest-bearing demand deposits as of December 31, 2021 increased $176.9 million, or 15.8%, from September 30, 2021 and savings accounts as of December 31, 2021 increased $3.4 million, or 11.2%, from September 30, 2021, due to our success in retaining and growing client relationships. These increases were partially offset by a decrease in time deposits of $22.0 million, or 7.35%. The average cost of deposits was 0.40% for the fourth quarter of 2021, representing a 4 basis point decrease from the third quarter of 2021 and a 24 basis point decrease from the fourth quarter of 2020. The decrease in average cost of deposits was due primarily to the continued repricing of certificates of deposit and rate reductions in money market accounts.

Net Interest Margin and Net Interest Income

The net interest margin for the fourth quarter of 2021 was 4.78%, an increase of 29 basis points from the third quarter of 2021 and an increase of 40 basis points from the fourth quarter of 2020.  Approximately $2.06 million of net deferred fees related to PPP loans remain unamortized at December 31, 2021. The yield on loans for the fourth quarter of 2021 was 5.86% compared to 6.11% at September 30, 2021.

Net interest income totaled $24.6 million for the fourth quarter of 2021, an increase of 11.9% from $22.0 million for the third quarter of 2021. Interest income totaled $26.7 million for the fourth quarter of 2021, an increase of 9.3% from $24.4 million for the third quarter of 2021.  Interest and fees on loans increased $2.3 million, or 9.5%, compared to the third quarter of 2021, and increased by $4.1 million, or 18.3%, from the fourth quarter of 2020.  Interest expense was $2.0 million for the fourth quarter of 2021, a decrease of 14.9% from $2.4 million for the third quarter of 2021 and a decrease of 35.9% from $3.2 million for the fourth quarter of 2020.

Noninterest Income and Noninterest Expense

Noninterest income totaled $2.1 million for the fourth quarter of 2021, compared to $964,000 for the third quarter of 2021.  This increase was primarily driven by a $820,000 increase in other non-loan related fee income.

Noninterest expense totaled $20.1 million in the fourth quarter of 2021, an increase of 13.9% from $17.6 million in the third quarter of 2021, which was primarily due to increases in salaries and benefits expense.

The efficiency ratio was 75.31% in the fourth quarter of 2021, compared to 76.81% in the third quarter of 2021, and 58.11% in the fourth quarter of 2020. The fourth quarter of 2021 efficiency ratio continues to be assisted by the accelerated accretion of deferred PPP loan origination fees immediately recognized at the time of forgiveness by the SBA.

Net Income and Earnings Per Share

Net income totaled $354,000 for the fourth quarter of 2021, compared to $2.4 million for the third quarter of 2021. Basic earnings per share and diluted earnings per share each decreased to $0.03 per share from $0.29 per share and $0.28 per share, respectively, in the third quarter of 2021. The decreases are primarily due to the $6.1 million provision for loan loss expense recorded in the fourth quarter of 2021 relating to our robust loan growth during the quarter.


(1)


Non-GAAP financial measure. Please refer to the table titled “GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures” at the end of this press release for a reconciliation of these non-GAAP financial measures.

About Third Coast Bancshares, Inc.

Third Coast Bancshares, Inc. is a commercially focused, Texas-based bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank, SSB. Founded in 2008 in Humble, Texas, Third Coast Bank, SSB conducts banking operations through 12 branches and one loan production office encompassing the four largest metropolitan areas in Texas. Please visit https://www.tcbssb.com for more information.


Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended.  These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.  There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: the impact of COVID-19 on our business, including the impact of the actions taken by governmental authorities to try and contain the virus or address the impact of the virus on the United States economy; interest rate risk and fluctuations in interest rates; our ability to maintain our largest deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; changes in key management personnel; credit risk associated with our business; market conditions and economic trends generally and in the banking industry; and other market conditions and economic trends generally and in the banking industry. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our prospectus, dated November 8, 2021, filed pursuant to Rule 424, filed with the U.S. Securities and Exchange Commission (the “SEC”), and our other filings with the SEC.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.


Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures, including “Tangible Book Value Per Share and Tangible Shareholders’ Equity to Tangible Assets Ratio, which are supplemental measures that are not required by, or are not presented in accordance with, GAAP. Please refer to the table titled “GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures” at the end of this press release for a reconciliation of these non-GAAP financial measures.

 


Third Coast Bancshares, Inc. and Subsidiary


Financial Highlights


(unaudited)


2021


2020


(Dollars in thousands)


December 31


September 30


June 30


March 31


December 31

ASSETS

Cash and cash equivalents:

Cash and due from banks

$

326,733

$

359,888

$

352,544

$

238,107

$

201,270

Federal funds sold

292

696

1,228

741

2,290

Total cash and cash equivalents

327,025

360,584

353,772

238,848

203,560

Interest bearing time deposits in other banks

131

131

131

131

129

Investment securities available-for-sale

26,432

26,431

25,991

24,680

25,595

Loans held for sale

2,345

Loans held for investment

2,068,724

1,612,394

1,551,722

1,692,806

1,556,092

Less:  allowance for loan and lease loss

(19,295)

(15,571)

(13,394)

(13,471)

(11,979)

Loans, net

2,049,429

1,596,823

1,538,328

1,679,335

1,544,113

Accrued interest receivable

10,228

10,238

11,350

13,375

13,676

Premises and equipment, net

19,045

18,364

15,859

15,154

15,156

Other real estate owned

1,676

1,676

1,686

3,066

3,367

Bank-owned life insurance

26,528

26,382

26,237

26,088

25,961

Non-marketable securities, at cost

7,527

10,905

8,032

4,424

4,407

Deferred tax asset, net

4,088

4,456

3,836

3,903

4,039

Core Deposit Intangible, net

1,292

1,332

1,373

1,413

1,454

Goodwill

18,034

18,034

18,034

18,034

18,034

Other assets

7,977

6,815

8,671

5,365

5,457

Total assets

$

2,499,412

$

2,082,171

$

2,013,300

$

2,033,816

$

1,867,293

LIABILITIES

Deposits:

Noninterest bearing

$

531,401

$

364,418

$

374,942

$

412,932

$

327,361

Interest bearing

1,609,798

1,451,533

1,408,326

1,400,262

1,306,470

Total deposits

2,141,199

1,815,951

1,783,268

1,813,194

1,633,831

Accrued interest payable

437

477

866

896

1,215

Other liabilities

7,769

8,291

7,845

8,056

6,654

FHLB advances

50,000

50,250

50,000

50,000

70,000

Note Payable – Senior Debt

1,000

1,000

20,500

20,500

20,875

Note Payable – Subordinated Debt

13,000

13,000

13,000

Total liabilities

2,200,405

1,875,969

1,875,479

1,905,646

1,745,575

Commitments and contingencies – ESOP-owned shares

2,060

1,876

1,778

1,302

SHAREHOLDERS’ EQUITY

Common stock

13,432

9,387

6,647

6,402

6,350

Additional paid-in capital

249,252

160,725

97,821

92,254

91,462

Retained earnings

36,029

35,675

33,290

29,701

24,605

Accumulated other comprehensive income

1,394

1,394

1,042

792

280

Treasury stock, at cost

(1,100)

(979)

(979)

(979)

(979)

299,007

206,202

137,821

128,170

121,718

Less:  ESOP-owned shares

(2,060)

(1,876)

(1,778)

(1,302)

Total shareholders’ equity

299,007

204,142

135,945

126,392

120,416

Total liabilities and shareholders’ equity

$

2,499,412

$

2,082,171

$

2,013,300

$

2,033,816

$

1,867,293

 


Third Coast Bancshares, Inc. and Subsidiary


Financial Highlights


(unaudited)


Three Months Ended


Year Ended


2021


2020


2021


2020


(Dollars in thousands, except per share data)


December 31


September 30


June 30


March 31


December 31


December 31


December 31

INTEREST INCOME:

Loans, including fees

$

26,226

$

23,940

$

23,522

$

25,198

$

22,162

$

98,886

$

80,791

Investment securities available-for-sale

265

265

261

252

229

1,043

297

Federal funds sold and other

169

194

148

175

463

686

1,153

Total interest income

26,660

24,399

23,931

25,625

22,854

100,615

82,241

INTEREST EXPENSE:

Deposit accounts

1,913

2,023

2,213

2,377

2,616

8,526

12,302

FHLB advances and notes payable

128

374

504

530

566

1,536

2,058

Total interest expense

2,041

2,397

2,717

2,907

3,182

10,062

14,360

Net interest income

24,619

22,002

21,214

22,718

19,672

90,553

67,881

Provision for loan losses

6,100

2,323

1,500

5,000

9,923

7,550

Net interest income after provision for loan losses

18,519

19,679

21,214

21,218

14,672

80,630

60,331

NONINTEREST INCOME:

Service charges and fees

566

559

770

472

507

2,367

1,709

Gain on sale of SBA loans

411

175

586

266

Other

1,078

230

339

278

72

1,925

707

Total noninterest income

2,055

964

1,109

750

579

4,878

2,682

NONINTEREST EXPENSE:

Salaries and employee benefits

14,029

12,138

12,512

9,963

7,125

48,642

29,262

Data processing and network expense

786

844

820

610

688

3,060

3,184

Occupancy and equipment expense

1,557

1,419

1,195

1,196

1,105

5,367

4,127

Legal and professional

1,450

1,164

1,564

1,115

914

5,293

3,962

Loan operations and other real estate owned expense

275

495

170

1,023

208

1,963

1,369

Advertising and marketing

657

422

406

404

420

1,889

1,326

Telephone and communications

115

119

168

193

158

595

605

Software purchases and maintenance

248

261

192

151

122

852

420

Regulatory assessments

506

252

294

49

489

1,101

1,303

Loss (gain) on sale of other real estate owned

(31)

375

344

Other

464

527

489

439

539

1,919

1,845

Total noninterest expense

20,087

17,641

17,779

15,518

11,768

71,025

47,403

NET INCOME BEFORE INCOME TAX EXPENSE

487

3,002

4,544

6,450

3,483

14,483

15,610

Income tax expense

133

617

955

1,354

948

3,059

3,495

NET INCOME

$

354

$

2,385

$

3,589

$

5,096

$

2,535

$

11,424

$

12,115

EARNINGS PER COMMON SHARE:

Basic earnings per share

$

0.03

$

0.29

$

0.57

$

0.81

$

0.41

$

1.45

$

1.94

Diluted earnings per share

$

0.03

$

0.28

$

0.55

$

0.80

$

0.40

$

1.40

$

1.91

 


Third Coast Bancshares, Inc. and Subsidiary


Financial Highlights


(unaudited)


Three Months Ended


Year Ended


2021


2020


2021


2020


(Dollars in thousands, except per share data)


December 31


September 30


June 30


March 31


December 31


December 31


December 31

Net Income

$

354

$

2,385

$

3,589

$

5,096

$

2,535

$

11,424

$

12,115

Earnings per share, basic

$

0.03

$

0.29

$

0.57

$

0.81

$

0.41

$

1.45

$

1.94

Earnings per share, diluted

$

0.03

$

0.28

$

0.55

$

0.80

$

0.40

$

1.40

$

1.91

Dividends per share

$

$

$

$

$

$

$

Return on average assets (A)

0.06

%

0.46

%

0.71

%

1.06

%

0.54

%

0.55

%

0.73

%

Return on average equity (A)

0.55

%

5.41

%

11.45

%

16.81

%

8.48

%

6.70

%

10.74

%

Net interest margin (A) (C)

4.78

%

4.49

%

4.39

%

4.97

%

4.38

%

4.65

%

4.24

%

Efficiency ratio (D)

75.31

%

76.81

%

79.64

%

66.12

%

58.11

%

74.43

%

67.18

%



Capital Ratios

Third Coast Bancshares, Inc. (consolidated):

Equity to assets

11.96

%

9.90

%

6.85

%

6.30

%

6.52

%

11.96

%

6.52

%

Tangible equity to tangible assets (B)

11.28

%

9.06

%

5.94

%

5.40

%

5.53

%

11.28

%

5.53

%

Third Coast Bank, SSB:

Common equity tier 1 (to risk weighted assets)

12.63

%

11.89

%

11.24

%

11.76

%

11.51

%

12.63

%

11.51

%

Tier 1 capital (to risk weighted assets)

12.63

%

11.89

%

11.24

%

11.76

%

11.51

%

12.63

%

11.51

%

Total capital (to risk weighted assets)

13.54

%

12.96

%

12.32

%

12.93

%

12.54

%

13.54

%

12.54

%

Tier 1 capital (to average assets)

13.01

%

9.61

%

9.17

%

9.23

%

9.70

%

13.01

%

9.70

%



Other Data

Weighted average shares:

Basic

10,724,545

8,099,878

6,339,850

6,280,855

6,242,540

7,874,110

6,232,115

Diluted

11,156,037

8,448,112

6,535,163

6,364,672

6,334,839

8,138,824

6,329,760

Period end shares outstanding

13,353,572

9,313,929

6,573,684

6,328,802

6,276,759

13,353,572

6,276,759

Book value per share

$

22.39

$

22.14

$

20.97

$

20.25

$

19.39

$

22.39

$

19.39

Tangible book value per share (B)

$

20.94

$

20.06

$

18.01

$

17.18

$

16.29

$

20.94

$

16.29

(A) 

Interim periods annualized.

(B) 

Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures on page 11 of this News Release.

(C) 

Net interest margin represents net interest income divided by average interest-earning assets.

(D) 

Represents total noninterest expense divided by the sum of net interest income plus noninterest income. Taxes and provision for loan losses are not part of this calculation.

 


Third Coast Bancshares, Inc. and Subsidiary


Financial Highlights


(unaudited)


Three Months Ended


December 31, 2021


September 30, 2021


December 31, 2020


(Dollars in thousands)


Average
Outstanding
Balance


Interest
Earned/
Paid(3)


Average
Yield/
Rate


Average
Outstanding
Balance


Interest
Earned/
Paid(3)


Average
Yield/
Rate


Average
Outstanding
Balance


Interest
Earned/
Paid(3)


Average
Yield/
Rate


Assets

Interest-earnings assets:

Investment securities

$

42,677

$

265

2.46

%

$

31,588

$

265

3.33

%

$

45,136

$

229

2.02

%

Loans, gross

1,774,294

26,226

5.86

%

1,553,517

23,940

6.11

%

1,605,646

22,162

5.49

%

Federal funds sold and other interest-earning assets

226,197

169

0.30

%

360,723

194

0.21

%

135,344

463

1.36

%

Total interest-earning assets

2,043,168

26,660

5.18

%

1,945,828

24,399

4.97

%

1,786,126

22,854

5.09

%

Less allowance for loan losses

(17,130)

(13,466)

(11,555)

Total interest-earning assets, net of allowance

2,026,038

1,932,362

1,774,571

Noninterest-earning assets

187,770

138,687

93,209

Total assets

$

2,213,808

$

2,071,049

$

1,867,780


Liabilities and Shareholders’ Equity

Interest-bearing liabilities:

Interest-bearing deposits

$

1,485,059

$

1,913

0.51

%

$

1,423,418

$

2,023

0.56

%

$

1,301,862

$

2,616

0.80

%

Notes payable

1,126

11

3.88

%

21,278

262

4.89

%

34,164

443

5.16

%

FHLB advances

66,315

117

0.70

%

55,418

112

0.80

%

89,648

123

0.55

%

Total interest-bearing liabilities

1,552,500

2,041

0.52

%

1,500,114

2,397

0.63

%

1,425,674

3,182

0.89

%

Noninterest-bearing deposits

392,955

386,727

318,335

Other liabilities

10,770

9,440

4,807

Total liabilities

1,956,225

1,896,281

1,748,816

Shareholders’ equity

257,583

174,768

118,964

Total liabilities and shareholders’ equity

$

2,213,808

$

2,071,049

$

1,867,780

Net interest income

$

24,619

$

22,002

$

19,672

Net interest spread (1)

4.66

%

4.34

%

4.20

%

Net interest margin (2)

4.78

%

4.49

%

4.38

%

(1)

Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities.

(2)

Net interest margin represents net interest income divided by average interest-earning assets.

(3)

Interest earned/paid includes accretion of deferred loan fees, premiums and discounts. 

 


Third Coast Bancshares, Inc. and Subsidiary


Financial Highlights


(unaudited)


For the Year Ended


December 31, 2021


December 31, 2020


(Dollars in thousands)


Average
Outstanding
Balance


Interest
Earned/
Paid(3)


Average
Yield/
Rate


Average
Outstanding
Balance


Interest
Earned/
Paid(3)


Average
Yield/
Rate


Assets

Interest-earnings assets:

Investment securities

$

31,251

$

1,043

3.34

%

$

14,709

$

297

2.02

%

Loans, gross

1,646,591

98,886

6.01

%

1,433,412

80,791

5.64

%

Federal funds sold and other interest-earning assets

267,983

686

0.26

%

152,066

1,153

0.76

%

Total interest-earning assets

1,945,825

100,615

5.17

%

1,600,187

82,241

5.14

%

Less allowance for loan losses

(14,198)

(10,506)

Total interest-earning assets, net of allowance

1,931,627

1,589,681

Noninterest-earning assets

132,825

80,686

Total assets

$

2,064,452

$

1,670,367


Liabilities and Shareholders’ Equity

Interest-bearing liabilities:

Interest-bearing deposits

$

1,421,757

$

8,526

0.60

%

$

1,150,723

$

12,302

1.07

%

Notes payable

22,329

1,091

4.89

%

39,793

1,615

4.06

%

FHLB advances

56,442

445

0.79

%

50,000

443

0.89

%

Total interest-bearing liabilities

1,500,528

10,062

0.67

%

1,240,516

14,360

1.16

%

Noninterest-bearing deposits

383,747

310,357

Other liabilities

9,547

6,661

Total liabilities

1,893,822

1,557,534

Shareholders’ equity

170,630

112,833

Total liabilities and shareholders’ equity

$

2,064,452

$

1,670,367

Net interest income

$

90,553

$

67,881

Net interest spread (1)

4.50

%

3.98

%

Net interest margin (2)

4.65

%

4.24

%

(1)

Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities.

(2)

Net interest margin represents net interest income divided by average interest-earning assets.

(3)

Interest earned/paid includes accretion of deferred loan fees, premiums and discounts. 

 


Third Coast Bancshares, Inc. and Subsidiary


Financial Highlights


(unaudited)


Three Months Ended


2021


2020


(Dollars in thousands)


December 31


September 30


June 30


March 31


December 31


Period-end Loan Portfolio:

Real estate loans:

Commercial real estate:

Non-farm non-residential owner occupied

$

383,941

$

361,467

$

361,217

$

359,416

$

353,273

Non-farm non-residential non-owner occupied

445,308

345,360

286,533

276,174

277,804

Residential

213,264

179,971

165,890

137,201

140,622

Construction, development & other

320,335

124,548

80,400

85,398

98,207

Farmland

9,934

8,309

6,011

5,164

4,653

Commercial & industrial

611,348

538,551

612,306

792,270

645,928

Consumer

4,001

4,417

4,499

4,627

4,157

Other

80,593

49,771

34,866

32,556

31,448

Total loans

$

2,068,724

$

1,612,394

$

1,551,722

$

1,692,806

$

1,556,092


Asset Quality:

Nonaccrual loans

$

10,030

$

11,077

$

5,158

$

5,761

$

7,257

Loans > 90 days and still accruing

278

561

184

1,009

752

Restructured loans–accruing

5,295

5,319

5,924

5,946

4,395

Total nonperforming loans

$

15,603

$

16,957

$

11,266

$

12,716

$

12,404

Other real estate owned

1,676

1,676

1,686

3,066

3,367

Total nonperforming assets

$

17,279

$

18,633

$

12,952

$

15,782

$

15,771

QTD Net charge-offs

$

2,376

$

146

$

77

$

8

$

3,107

Nonaccrual loans:

Real estate loans:

Commercial real estate:

Non-farm non-residential owner occupied

$

1,008

$

1,032

$

1,058

$

1,081

$

1,944

Non-farm non-residential non-owner occupied

346

353

365

375

385

Residential

127

133

76

80

85

Construction, development & other

244

251

257

261

264

Farmland

Commercial & industrial

8,297

9,162

3,227

3,810

4,155

Consumer

Other

24

Purchased credit impaired

8

146

175

130

424

Total nonaccrual loans

$

10,030

$

11,077

$

5,158

$

5,761

$

7,257


Asset Quality Ratios:

Nonperforming assets to total assets

0.69

%

0.89

%

0.64

%

0.78

%

0.84

%

Nonperforming loans to total loans

0.75

%

1.05

%

0.73

%

0.75

%

0.80

%

Allowance for loan losses to total loans

0.93

%

0.97

%

0.86

%

0.80

%

0.77

%

QTD Net charge-offs to average loans (annualized)

0.53

%

0.04

%

0.02

%

0.00

%

0.77

%

Third Coast Bancshares, Inc. and Subsidiary

GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures

(unaudited)

Our accounting and reporting policies conform to GAAP (generally accepted accounting principles) and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional financial measures discussed in this earnings release as being non-GAAP financial measures. Specifically, we review “Tangible Book Value Per Share and Tangible Common Equity to Tangible Assets Ratio” for internal planning and forecasting purposes. We classify a financial measure as a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are not included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios or statistical measures calculated using exclusively financial measures calculated in accordance with GAAP.

The non-GAAP financial measures that we discuss in this earnings release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this earnings release may differ from that of other companies reporting measures with similar names. It is important to understand how other banking organizations calculate their financial measures with names similar to the non-GAAP financial measures we have discussed in this earnings release when comparing such non-GAAP financial measures. 


Three Months Ended


2021


2020


(Dollars in thousands, except per share data)


December 31


September 30


June 30


March 31


December 31


Tangible Common Equity:

   Total shareholders’ equity

$

299,007

$

206,202

$

137,821

$

128,170

$

121,718

   Less:  Goodwill and core deposit intangibles, net

19,326

19,366

19,407

19,447

19,488

   Tangible shareholders’ equity

$

279,681

$

186,836

$

118,414

$

108,723

$

102,230

Common shares outstanding at end of period

13,353,572

9,313,929

6,573,684

6,328,802

6,276,759

Book value per share

$

22.39

$

22.14

$

20.97

$

20.25

$

19.39


Tangible Book Value Per Share

$

20.94

$

20.06

$

18.01

$

17.18

$

16.29


Tangible Assets:

Total assets

$

2,499,412

$

2,082,171

$

2,013,300

$

2,033,816

$

1,867,293

   Adjustments:  Goodwill and core deposit intangibles, net

19,326

19,366

19,407

19,447

19,488


Tangible assets

$

2,480,086

$

2,062,805

$

1,993,893

$

2,014,369

$

1,847,805

Total Shareholders’ Equity to Total Assets

11.96

%

9.90

%

6.85

%

6.30

%

6.52

%


Tangible Common Equity to Tangible Assets

11.28

%

9.06

%

5.94

%

5.40

%

5.53

%

Contact:

Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
(713) 529-6600
[email protected] 

Cision View original content:https://www.prnewswire.com/news-releases/third-coast-bancshares-inc-reports-strong-2021-fourth-quarter-and-full-year-financial-results-301470172.html

SOURCE Third Coast Bancshares