Year-over-Year Net Income Improved 31% and Diluted EPS increased 28%

Net Interest Margin Expands to 3.80% and Book Value Per Share Increases

HOUSTON, April 23, 2025 /PRNewswire/ -- Third Coast Bancshares, Inc. (NASDAQ:TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank (the "Bank"), today reported its 2025 first quarter financial results.

Year to Date Financial Highlights

Return on average assets of 1.17% annualized for the first quarter of 2025 compared to 1.13% annualized for the fourth quarter of 2024 and 0.95% annualized for the first quarter of 2024.
Net interest margin of 3.80% for the first quarter of 2025 compared to 3.71% for the fourth quarter of 2024 and 3.60% for the first quarter of 2024.
Net income for the first quarter of 2025 totaled $13.6 million, or $0.90 and $0.78 per basic and diluted share, respectively, compared to $13.7 million, or $0.92 and $0.79 per basic and diluted share, respectively, for the fourth quarter of 2024.
Gross loans grew to $3.99 billion as of March 31, 2025, from $3.97 billion reported as of December 31, 2024.
Book value per share and tangible book value per share⁽¹⁾increased to $29.92 and $28.56, respectively, as of March 31, 2025, compared to $28.65 and $27.29, respectively, as of December 31, 2024 and $26.18 and $24.79, respectively, as of March 31, 2024.
On April 1, 2025, the Bank completed a $200 million commercial real estate loan securitization, reducing our risk-weighted assets and improving risk-weighted capital ratios. The transactions also strengthened our financial position by reducing construction and land development loan concentrations and mitigating credit risk.

______________
(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 news release for a reconciliation of these non-GAAP financial measures.

Bart Caraway, Founder, Chairman, President & CEO of Third Coast, said, "We delivered a solid first quarter, marked by continued expansion in our net interest margin and steady growth in our loan portfolio, while preserving strong asset quality. Our disciplined approach to managing deposit costs and thoughtful credit risk management enabled us to enhance shareholder value, as reflected in the increase in both book value and tangible book value per share. Despite some seasonal softness in deposits, our core profitability metrics improved, and our capital ratios strengthened, underscoring the resilience of our business model and our commitment to sustainable growth.

"Just following the quarter end, we successfully executed a significant commercial real estate loan securitization, which will provide us with additional flexibility to manage our balance sheet and capital ratios. We believe this transaction will not only reduce our CRE concentration and improve our risk-based capital, but also generate meaningful fee income that will benefit our results in the coming quarters. The securitization demonstrates our forward-thinking approach to capital management and positions us to support future loan growth while upholding a prudent risk profile.

"With a strong capital base, improved asset quality, and a focus on disciplined execution, Third Coast is well positioned to deliver continued value for our shareholders and to compete effectively in the dynamic Texas banking landscape," Mr. Caraway concluded.

Operating Results

Net Income and Earnings Per Share

Net income totaled $13.6 million for the first quarter of 2025, compared to $13.7 million for the fourth quarter of 2024 and $10.4 million for the first quarter of 2024. Net income available to common shareholders totaled $12.4 million for the first quarter of 2025, compared to $12.5 million for the fourth quarter of 2024 and $9.2 million for the first quarter of 2024. The year-over-year increase was primarily due to an increase in net interest income, resulting from loan growth and the purchase of investment securities, and an increase in service charges and fees, offset by an increase in salary and employee benefit expenses during the first quarter of 2025. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended March 31, 2025 and December 31, 2024.

Basic and diluted earnings per share were $0.90 per share and $0.78 per share, respectively, in the first quarter of 2025, compared to $0.92 per share and $0.79 per share, respectively, in the fourth quarter of 2024 and $0.68 per share and $0.61 per share, respectively, in the first quarter of 2024.

Net Interest Margin and Net Interest Income

The net interest margin for the first quarter of 2025 was 3.80%, compared to 3.71% for the fourth quarter of 2024 and 3.60% for the first quarter of 2024. The yield on loans for the first quarter of 2025 was 7.45%, compared to 7.68% for the fourth quarter of 2024 and 7.75% for the first quarter of 2024. The cost of interest-bearing deposits for the first quarter of 2025 was 4.02%, compared to 4.33% for the fourth quarter of 2024 and 4.65% for the first quarter of 2024.

Net interest income totaled $42.8 million for the first quarter of 2025, a decrease of 1.5% from $43.4 million for the fourth quarter of 2024 and an increase of 12.4% from $38.1 million for the first quarter of 2024. Interest income totaled $80.8 million for the first quarter of 2025, a decrease of 5.6% from $85.5 million for the fourth quarter of 2024 and an increase of 2.4% from $78.9 million for the first quarter of 2024. The quarter-over-quarter decrease in interest income resulted from a decrease in loan yields and a decrease in interest income from federal funds sold and deposits in interest-bearing correspondent banks during the first quarter of 2025. Interest expense decreased from $42.1 million for the fourth quarter of 2024 and $40.8 million for the first quarter of 2024 to $38.0 million for the first quarter of 2025, primarily resulting from the reduction in rates paid on interest-bearing deposits.

Noninterest Income and Noninterest Expense

Noninterest income totaled $3.1 million for the first quarter of 2025, compared to $2.9 million for the fourth quarter of 2024 and $2.3 million for the first quarter of 2024. The sequential increase in noninterest income was primarily due to increased service charges and fees during the first quarter of 2025.

Noninterest expense increased to $28.1 million for the first quarter of 2025, compared to $27.2 million for the fourth quarter of 2024 and $25.9 million for the first quarter of 2024. The quarter-over-quarter increase in noninterest expense was primarily due to increased salary expense resulting from new hires, increased bonus expense and a reduction in salary expense deferral related to loan fundings during the first quarter of 2025. At March 31, 2025, the number of employees was 383, compared to 369 at December 31, 2024.

The efficiency ratio was 61.23% for the first quarter of 2025, compared to 58.80% for the fourth quarter of 2024 and 64.11% for the first quarter of 2024.

Balance Sheet Highlights

Loan Portfolio and Composition

For the quarter ended March 31, 2025, gross loans increased to $3.99 billion, an increase of $21.6 million, or 0.5%, from $3.97 billion as of December 31, 2024, and an increase of $241.9 million, or 6.5%, from $3.75 billion as of March 31, 2024. Commercial and industrial loans accounted for the majority of the loan growth for the first quarter of 2025, offset by slight decreases in real estate loans and municipal loans from the fourth quarter of 2024.

Asset Quality

Nonperforming loans at March 31, 2025 were $18.6 million, compared to $27.9 million at December 31, 2024 and $21.7 million at March 31, 2024. As of March 31, 2025, the nonperforming loans to total loans ratio was 0.47%, compared to 0.70% as of December 31, 2024 and 0.58% as of March 31, 2024. The decrease in nonperforming loans during the first quarter of 2025 was primarily due to the foreclosure and transfer to OREO of three nonperforming loans for one relationship totaling $7.3 million, the payoff and paydown of five nonperforming loans totaling $1.9 million, and the charge-off of one relationship for $810,000.

The provision for credit loss recorded for the first quarter of 2025 was $450,000, and the allowance for credit losses of $40.5 million represented 1.01% of the $3.99 billion in gross loans outstanding as of March 31, 2025. The provision for credit loss recorded for the fourth quarter of 2024 was $1.2 million, and the allowance for credit losses of $40.3 million represented 1.02% of the $3.97 billion in gross loans outstanding as of December 31, 2024. The decrease in the provision for credit loss recorded in the first quarter of 2025 compared to the fourth quarter of 2024 is a reflection of the improvement in asset quality and loan growth.

The Company recorded net charge-offs of $398,000 and $742,000 for the three months ended March 31, 2025 and March 31, 2024, respectively.

Deposits and Composition

Deposits totaled $4.25 billion as of March 31, 2025, a decrease of 1.4% from $4.31 billion as of December 31, 2024, and an increase of 4.9% from $4.05 billion as of March 31, 2024. Noninterest-bearing demand deposits decreased from $602.1 million as of December 31, 2024, to $448.5 million as of March 31, 2025 and represented 10.6% of total deposits as of March 31, 2025, compared to 14.0% of total deposits as of December 31, 2024. As of March 31, 2025, interest-bearing demand deposits increased $23.5 million, or 0.8%, time deposits increased $71.2 million, or 12.3%, and savings accounts decreased $3.1 million, or 11.1%, respectively, from December 31, 2024.

The average cost of deposits was 3.60% for the first quarter of 2025, representing a 23-basis point decrease from the fourth quarter of 2024 and a 49-basis point decrease from the first quarter of 2024. The decreases were due to the reduction in rates paid on interest-bearing demand deposits.

Earnings Conference Call

Third Coast has scheduled a conference call to discuss its 2025 first quarter results, which will be broadcast live over the Internet, on Thursday, April 24, 2025, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate in the call, dial 201-389-0869 and ask for the Third Coast Bancshares, Inc. call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through May 1, 2025, and may be accessed by dialing 201-612-7415 and using passcode 13752283#. Also, an archive of the webcast will be available shortly after the call at https://ir.thirdcoast.bank/events-and-presentations/events/ for 90 days.

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. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 19 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bank 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, and Section 21E of the Securities Exchange Act of 1934, 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," "looking ahead," "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: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; economic conditions affecting the real estate market; prepayment risks associated with commercial real estate loans; liquidity risks in the securitization market; operational risks related to the administration of securitized assets; and changes in key management personnel. 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 Annual Report on Form 10-K for the year ended December 31, 2024 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 Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets and Return on Average Tangible Common Equity, 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)
	2025		2024
(Dollars in thousands)	March 31		December 31		September 30		June 30		March 31

ASSETS
Cash and cash equivalents:
Cash and due from banks	$	218,990	$	371,157	$	258,191	$	241,809	$	367,831
Federal funds sold		110,379		50,045		12,265		12,088		130,429
Total cash and cash equivalents		329,369		421,202		270,456		253,897		498,260

Interest bearing time deposits in other banks		359		356		353		350		-
Investment securities available-for-sale		397,442		384,025		292,104		286,167		246,291
Loans held for investment		3,988,039		3,966,425		3,889,831		3,758,159		3,746,178
Less: allowance for credit losses		(40,456)		(40,304)		(39,683)		(38,211)		(38,140)
Loans, net		3,947,583		3,926,121		3,850,148		3,719,948		3,708,038
Accrued interest receivable		26,752		25,820		26,111		27,518		25,769
Premises and equipment, net		25,669		26,230		26,696		27,626		26,844
Bank-owned life insurance		74,018		68,341		67,679		67,030		66,443
Non-marketable securities, at cost		15,994		15,980		24,328		16,147		16,095
Deferred tax asset, net		9,176		11,445		8,654		8,972		8,712
Derivative assets		3,052		6,479		5,786		7,799		11,015
Right-of-use assets - operating leases		19,370		19,863		20,397		20,944		20,729
Goodwill and other intangible assets		18,801		18,841		18,882		18,922		18,963
Other assets		29,404		17,743		16,176		18,799		13,244
Total assets	$	4,896,989	$	4,942,446	$	4,627,770	$	4,474,119	$	4,660,403

LIABILITIES
Deposits:
Noninterest bearing	$	448,542	$	602,082	$	489,822	$	464,498	$	424,019
Interest bearing		3,800,001		3,708,416		3,504,616		3,391,093		3,626,653
Total deposits		4,248,543		4,310,498		3,994,438		3,855,591		4,050,672

Accrued interest payable		7,044		6,281		7,283		5,668		3,927
Derivative liabilities		3,527		8,660		6,874		7,626		8,253
Lease liability - operating leases		20,425		20,900		21,412		21,919		21,647
Other liabilities		25,979		23,754		34,632		30,786		27,806
Line of credit - Senior Debt		30,875		30,875		31,875		36,875		43,875
Note payable - Subordinated Debentures, net		80,810		80,759		80,708		80,656		80,605
Total liabilities		4,417,203		4,481,727		4,177,222		4,039,121		4,236,785

SHAREHOLDERS' EQUITY
Series A Convertible Non-Cumulative Preferred Stock		69		69		69		69		69
Series B Convertible Perpetual Preferred Stock		-		-		-		-		-
Common stock		13,904		13,848		13,746		13,744		13,731
Common stock - non-voting		-		-		-		-		-
Additional paid-in capital		322,456		321,696		320,871		320,496		320,077
Retained earnings		134,115		121,697		109,160		97,583		87,971
Accumulated other comprehensive income		10,341		4,508		7,801		4,205		2,869
Treasury stock, at cost		(1,099)		(1,099)		(1,099)		(1,099)		(1,099)
Total shareholders' equity		479,786		460,719		450,548		434,998		423,618
Total liabilities and shareholders' equity	$	4,896,989	$	4,942,446	$	4,627,770	$	4,474,119	$	4,660,403

Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited)
	Three Months Ended										Year Ended
	2025		2024								2024
(Dollars in thousands, except per share data)	March 31		December 31		September 30		June 30		March 31		December 31

INTEREST INCOME:
Loans, including fees	$	73,087	$	76,017	$	75,468	$	73,103	$	70,671	$	295,259
Investment securities available-for-sale		5,693		4,939		4,532		4,491		3,093		17,055
Federal funds sold and other		1,986		4,580		2,719		3,631		5,112		16,042
Total interest income		80,766		85,536		82,719		81,225		78,876		328,356

INTEREST EXPENSE:
Deposit accounts		36,226		40,233		40,407		40,410		38,698		159,748
FHLB advances and other borrowings		1,743		1,865		1,929		1,957		2,099		7,850
Total interest expense		37,969		42,098		42,336		42,367		40,797		167,598

Net interest income		42,797		43,438		40,383		38,858		38,079		160,758

Provision for credit losses		450		1,156		1,085		1,900		1,560		5,701

Net interest income after credit loss expense		42,347		42,282		39,298		36,958		36,519		155,057

NONINTEREST INCOME:
Service charges and fees		2,277		1,772		2,143		1,515		1,505		6,935
Earnings on bank-owned life insurance		677		662		649		587		582		2,480
(Loss) gain on sale of investment securities available-for-sale		(228)		196		(480)		123		157		(4)
Gain on sale of SBA loans		30		-		-		-		30		30
Other		351		243		205		663		69		1,180
Total noninterest income		3,107		2,873		2,517		2,888		2,343		10,621

NONINTEREST EXPENSE:
Salaries and employee benefits		18,341		17,018		15,679		15,917		16,502		65,116
Occupancy and equipment expense		3,282		3,292		3,229		3,146		3,045		12,712
Legal and professional		1,431		1,587		1,037		1,621		1,385		5,630
Data processing and network expense		1,120		1,182		1,608		1,046		1,418		5,254
Regulatory assessments		1,306		1,196		1,249		1,005		980		4,430
Advertising and marketing		409		526		420		406		355		1,707
Software purchases and maintenance		811		766		854		828		817		3,265
Loan operations		269		189		227		262		226		904
Telephone and communications		175		144		166		141		134		585
Other		964		1,330		1,085		1,257		1,052		4,724
Total noninterest expense		28,108		27,230		25,554		25,629		25,914		104,327

NET INCOME BEFORE INCOME TAX EXPENSE		17,346		17,925		16,261		14,217		12,948		61,351

Income tax expense		3,757		4,192		3,486		3,421		2,581		13,680

NET INCOME		13,589		13,733		12,775		10,796		10,367		47,671

Preferred stock dividends declared		1,171		1,196		1,198		1,184		1,171		4,749

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	12,418	$	12,537	$	11,577	$	9,612	$	9,196	$	42,922

EARNINGS PER COMMON SHARE:
Basic earnings per share	$	0.90	$	0.92	$	0.85	$	0.70	$	0.68	$	3.14
Diluted earnings per share	$	0.78	$	0.79	$	0.74	$	0.63	$	0.61	$	2.78

Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited)
	Three Months Ended															Year Ended
	2025			2024												2024
(Dollars in thousands, except share and per share data)	March 31			December 31			September 30			June 30			March 31			December 31

Earnings per share, basic	$	0.90		$	0.92		$	0.85		$	0.70		$	0.68		$	3.14
Earnings per share, diluted	$	0.78		$	0.79		$	0.74		$	0.63		$	0.61		$	2.78
Dividends on common stock	$	-		$	-		$	-		$	-		$	-		$	-
Dividends on Series A Convertible Non-Cumulative Preferred Stock	$	16.88		$	17.25		$	17.25		$	17.06		$	16.88		$	68.44

Return on average assets ^(A)		1.17	%		1.13	%		1.14	%		0.97	%		0.95	%		1.05	%
Return on average common equity ^(A)		12.41	%		12.66	%		12.12	%		10.53	%		10.44	%		11.48	%
Return on average tangible common equity ^{(A) (B)}		13.01	%		13.29	%		12.76	%		11.10	%		11.03	%		12.09	%
Net interest margin ^{(A) (C)}		3.80	%		3.71	%		3.73	%		3.62	%		3.60	%		3.67	%
Efficiency ratio ^(D)		61.23	%		58.80	%		59.57	%		61.39	%		64.11	%		60.88	%

Capital Ratios
Third Coast Bancshares, Inc. (consolidated):
Total common equity to total assets		8.45	%		7.98	%		8.31	%		8.24	%		7.67	%		7.98	%
Tangible common equity to tangible assets ^(B)		8.09	%		7.63	%		7.93	%		7.85	%		7.29	%		7.63	%
Common equity tier 1 (to risk weighted assets)		8.70	%		8.41	%		8.38	%		8.29	%		7.97	%		8.41	%
Tier 1 capital (to risk weighted assets)		10.19	%		9.90	%		9.93	%		9.88	%		9.54	%		9.90	%
Total capital (to risk weighted assets)		12.97	%		12.68	%		12.80	%		12.78	%		12.41	%		12.68	%
Tier 1 capital (to average assets)		9.58	%		9.12	%		9.53	%		9.24	%		9.15	%		9.12	%

Third Coast Bank:
Common equity tier 1 (to risk weighted assets)		12.69	%		12.35	%		12.45	%		12.52	%		12.32	%		12.35	%
Tier 1 capital (to risk weighted assets)		12.69	%		12.35	%		12.45	%		12.52	%		12.32	%		12.35	%
Total capital (to risk weighted assets)		13.63	%		13.29	%		13.42	%		13.49	%		13.28	%		13.29	%
Tier 1 capital (to average assets)		11.93	%		11.37	%		11.95	%		11.71	%		11.81	%		11.37	%

Other Data
Weighted average shares:
Basic		13,776,998			13,698,010			13,665,400			13,657,223			13,606,256			13,656,859
Diluted		17,440,826			17,394,884			17,184,991			17,018,680			16,936,003			17,133,845
Period end shares outstanding		13,825,286			13,769,780			13,667,591			13,665,505			13,652,888			13,769,780
Book value per share	$	29.92		$	28.65		$	28.13		$	26.99		$	26.18		$	28.65
Tangible book value per share ^(B)	$	28.56		$	27.29		$	26.75		$	25.60		$	24.79		$	27.29

___________

(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 at the end of this news release.

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

Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited)
	Three Months Ended
	March 31, 2025					December 31, 2024					March 31, 2024
(Dollars in thousands)	Average Outstanding Balance		Interest Earned/ Paid⁽³⁾		Average Yield/ Rate⁽⁴⁾	Average Outstanding Balance		Interest Earned/ Paid⁽³⁾		Average Yield/ Rate⁽⁴⁾	Average Outstanding Balance		Interest Earned/ Paid⁽³⁾		Average Yield/ Rate⁽⁴⁾

Assets
Interest-earnings assets:
Loans, gross	$	3,979,859	$	73,087	7.45 %	$	3,937,405	$	76,017	7.68 %	$	3,665,378	$	70,671	7.75 %
Investment securities		398,115		5,693	5.80 %		342,474		4,939	5.74 %		202,277		3,093	6.15 %
Federal funds sold and other interest-earning assets		186,893		1,986	4.31 %		379,836		4,580	4.80 %		383,929		5,112	5.36 %
Total interest-earning assets		4,564,867		80,766	7.18 %		4,659,715		85,536	7.30 %		4,251,584		78,876	7.46 %
Less allowance for loan losses		(40,595)					(39,855)					(37,278)
Total interest-earning assets, net of allowance		4,524,272					4,619,860					4,214,306
Noninterest-earning assets		198,522					195,143					193,070
Total assets	$	4,722,794				$	4,815,003				$	4,407,376

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits	$	3,652,006	$	36,226	4.02 %	$	3,692,533	$	40,233	4.33 %	$	3,346,847	$	38,698	4.65 %
Note payable and line of credit		111,661		1,713	6.22 %		109,294		1,708	6.22 %		120,884		2,099	6.98 %
FHLB advances		2,551		30	4.77 %		11,900		157	5.25 %	—		—		—
Total interest-bearing liabilities		3,766,218		37,969	4.09 %		3,813,727		42,098	4.39 %		3,467,731		40,797	4.73 %
Noninterest-bearing deposits		423,780					484,738					457,054
Other liabilities		60,755					56,369					61,945
Total liabilities		4,250,753					4,354,834					3,986,730
Shareholders' equity		472,041					460,169					420,646
Total liabilities and shareholders' equity	$	4,722,794				$	4,815,003				$	4,407,376
Net interest income			$	42,797				$	43,438				$	38,079
Net interest spread ⁽¹⁾					3.09 %					2.91 %					2.73 %
Net interest margin ⁽²⁾					3.80 %					3.71 %					3.60 %

___________

(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.

(4) Annualized.

Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited)
	Three Months Ended
	2025			2024
(Dollars in thousands)	March 31			December 31			September 30			June 30			March 31

Period-end Loan Portfolio:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied	$	420,902		$	448,134		$	470,222		$	499,941		$	510,266
Non-farm non-residential non-owner occupied		633,227			652,119			611,617			612,268			598,311
Residential		335,285			336,736			339,558			349,461			345,890
Construction, development & other		846,166			871,373			825,302			756,646			725,176
Farmland		30,783			30,915			35,650			31,049			29,706
Commercial & industrial		1,605,243			1,497,408			1,499,302			1,361,401			1,350,289
Consumer		1,443			1,859			2,002			2,216			2,382
Municipal and other		114,990			127,881			106,178			145,177			184,158
Total loans	$	3,988,039		$	3,966,425		$	3,889,831		$	3,758,159		$	3,746,178

Asset Quality:
Nonaccrual loans	$	17,066		$	26,773		$	23,522		$	23,910		$	18,130
Loans > 90 days and still accruing		1,503			1,173			522			507			3,614
Total nonperforming loans		18,569			27,946			24,044			24,417			21,744
Other real estate owned		8,752			862			283			-			-
Total nonperforming assets	$	27,321		$	28,808		$	24,327		$	24,417		$	21,744

QTD Net charge-offs (recoveries)	$	398		$	879		$	(57)		$	1,829		$	742

Nonaccrual loans:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied	$	3,100		$	10,433		$	9,696		$	10,051		$	2,369
Non-farm non-residential non-owner occupied		-			-			68			74			1,225
Residential		2,616			2,226			2,664			2,767			2,837
Construction, development & other		358			400			1			301			406
Commercial & industrial		10,992			13,714			11,093			10,717			11,293
Total nonaccrual loans	$	17,066		$	26,773		$	23,522		$	23,910		$	18,130

Asset Quality Ratios:
Nonperforming assets to total assets		0.56	%		0.58	%		0.53	%		0.55	%		0.47	%
Nonperforming loans to total loans		0.47	%		0.70	%		0.62	%		0.65	%		0.58	%
Allowance for credit losses to total loans		1.01	%		1.02	%		1.02	%		1.02	%		1.02	%
QTD Net charge-offs (recoveries) to average loans (annualized)		0.04	%		0.09	%		(0.01)	%		0.20	%		0.08	%

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 Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Return on Average Tangible Common Equity 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.

Management believes the following non-GAAP financial measures assist investors in understanding the financial condition of the company:

Tangible Common Equity. The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity.
Tangible Book Value Per Share. The most directly comparable GAAP financial measure for tangible book value per share is book value per share. We believe that the tangible book value per share measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value.
Tangible Common Equity to Tangible Assets. The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity, the most directly comparable GAAP financial measure for tangible assets is total assets, and the most directly comparable GAAP financial measure for tangible common equity to tangible assets is total shareholders' equity to total assets. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity to tangible assets, each exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing both total shareholders' equity and assets while not increasing our tangible common equity or tangible assets.
Return on Average Tangible Common Equity. The most directly comparable GAAP financial measure for average tangible common equity is average shareholders' equity, and the most directly comparable GAAP financial measure for return on average tangible common equity is return on average common equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of return on average tangible common equity, exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing average shareholders' equity while not increasing our tangible common equity.

The calculations of these non-GAAP financial measures are as follows:

	Three Months Ended															Year Ended
	2025			2024												2024
(Dollars in thousands, except share and per share data)	March 31			December 31			September 30			June 30			March 31			December 31

Tangible Common Equity:
Total shareholders' equity	$	479,786		$	460,719		$	450,548		$	434,998		$	423,618		$	460,719
Less: Preferred stock including additional paid in capital		66,160			66,160			66,117			66,225			66,225			66,160
Total common equity		413,626			394,559			384,431			368,773			357,393			394,559
Less: Goodwill and core deposit intangibles, net		18,801			18,841			18,882			18,922			18,963			18,841
Tangible common equity	$	394,825		$	375,718		$	365,549		$	349,851		$	338,430		$	375,718

Common shares outstanding at end of period		13,825,286			13,769,780			13,667,591			13,665,505			13,652,888			13,769,780

Book Value Per Share	$	29.92		$	28.65		$	28.13		$	26.99		$	26.18		$	28.65
Tangible Book Value Per Share	$	28.56		$	27.29		$	26.75		$	25.60		$	24.79		$	27.29

Tangible Assets:
Total assets	$	4,896,989		$	4,942,446		$	4,627,770		$	4,474,119		$	4,660,403		$	4,942,446
Adjustments: Goodwill and core deposit intangibles, net		18,801			18,841			18,882			18,922			18,963			18,841
Tangible assets	$	4,878,188		$	4,923,605		$	4,608,888		$	4,455,197		$	4,641,440		$	4,923,605

Total Common Equity to Total Assets		8.45	%		7.98	%		8.31	%		8.24	%		7.67	%		7.98	%
Tangible Common Equity to Tangible Assets		8.09	%		7.63	%		7.93	%		7.85	%		7.29	%		7.63	%

Average Tangible Common Equity:
Average shareholders' equity	$	472,041		$	460,169		$	446,124		$	433,510		$	420,646		$	440,184
Less: Average preferred stock including additional paid in capital		66,160			66,121			66,223			66,225			66,225			66,198
Average common equity		405,881			394,048			379,901			367,285			354,421			373,986
Less: Average goodwill and core deposit intangibles, net		18,826			18,865			18,906			18,946			18,987			18,926
Average tangible common equity	$	387,055		$	375,183		$	360,995		$	348,339		$	335,434		$	355,060

Net Income	$	13,589		$	13,733		$	12,775		$	10,796		$	10,367		$	47,671
Less: Dividends declared on preferred stock		1,171			1,196			1,198			1,184			1,171			4,749
Net Income Available to Common Shareholders	$	12,418		$	12,537		$	11,577		$	9,612		$	9,196		$	42,922

Return on Average Common Equity^(A)		12.41	%		12.66	%		12.12	%		10.53	%		10.44	%		11.48	%
Return on Average Tangible Common Equity^(A)		13.01	%		13.29	%		12.76	%		11.10	%		11.03	%		12.09	%

___________

(A) Interim periods annualized.

Contact:

Ken Dennard / Natalie Hairston

Dennard Lascar Investor Relations

(713) 529-6600

TCBX@dennardlascar.com

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SOURCE Third Coast Bancshares