Second Quarter Delivers Record EPS, Improved Margin Performance, and Double-Digit Increase in Net Interest Income

HOUSTON, July 22, 2026 /PRNewswire/ -- Third Coast Bancshares, Inc. (NYSE:TCBX) (and NYSE Texas: TCBX) (the "Company," "Third Coast," "we," "us," or "our"), the bank holding company for Third Coast Bank (the "Bank"), today reported its 2026 second quarter financial results.

2026 Second Quarter Financial Highlights

Return on average assets of 1.34% annualized for the second quarter of 2026 compared to 1.08% annualized for the first quarter of 2026 and 1.38% annualized for the second quarter of 2025.
Net interest margin of 3.83% for the second quarter of 2026 compared to 3.67% for the first quarter of 2026 and 4.22% for the second quarter of 2025.
Net income for the second quarter of 2026 totaled $22.0 million, or $1.25 and $1.08 per basic and diluted share, respectively, compared to $16.4 million, or $1.03 and $0.88 per basic and diluted share, respectively, for the first quarter of 2026 and $16.7 million, or $1.12 and $0.96 per basic and diluted share, respectively, for the second quarter of 2025.
Efficiency ratio of 56.51% for the second quarter of 2026 compared to 66.06% for the first quarter of 2026 and 55.45% for the second quarter of 2025.
Gross loans grew to $5.44 billion as of June 30, 2026, from $5.25 billion reported as of March 31, 2026.
Book value per common share and tangible book value per common share⁽¹⁾increased to $36.34 and increased to $33.08, respectively, as of June 30, 2026, compared to $35.28 and $31.97, respectively, as of March 31, 2026 and $31.04 and $29.69, respectively, as of June 30, 2025.
Effective June 25, 2026, the Company sold substantially all of the assets of Third Coast Commercial Capital, Inc., recognizing a gain of $3.5 million and entering into a structured ongoing revenue sharing arrangement.

"Our second quarter results reflect continued execution across our core strategy, with record diluted earnings per share, a double-digit increase in net interest income, disciplined expense management and solid credit performance," said Bart Caraway, Founder, Chairman, President and CEO of Third Coast. "We remain focused on attracting top talent, growing high-quality loans and deposits, and sustaining this momentum through the second half of the year."

Operating Results

Net Income and Earnings Per Common Share

Net income totaled $22.0 million for the second quarter of 2026, compared to $16.4 million for the first quarter of 2026 and $16.7 million for the second quarter of 2025. Net income available to common shareholders totaled $20.8 million for the second quarter of 2026, compared to $15.2 million for the first quarter of 2026 and $15.6 million for the second quarter of 2025. The quarter-over-quarter increase from the first quarter of 2026 was primarily due to an increase in net interest income and the gain on sale of factored receivables. Dividends on our Series A Convertible Non-Cumulative Preferred Stock ("Series A Preferred Stock") totaled $1.2 million for each of the quarters ended June 30, 2026, March 31, 2026 and June 30, 2025.

Basic and diluted earnings per common share were $1.25 per share and $1.08 per share, respectively, in the second quarter of 2026, compared to $1.03 per share and $0.88 per share, respectively, in the first quarter of 2026 and $1.12 per share and $0.96 per share, respectively, in the second quarter of 2025.

Net Interest Margin and Net Interest Income

The net interest margin for the second quarter of 2026 was 3.83%, compared to 3.67% for the first quarter of 2026 and 4.22% for the second quarter of 2025. The yield on loans for the second quarter of 2026 was 7.06%, compared to 7.01% for the first quarter of 2026 and 7.95% for the second quarter of 2025. The cost of interest-bearing deposits for the second quarter of 2026 was 3.41%, compared to 3.53% for the first quarter of 2026 and 4.00% for the second quarter of 2025.

Net interest income totaled $60.3 million for the second quarter of 2026, an increase of 12.4% from $53.6 million for the first quarter of 2026 and an increase of 22.1% from $49.4 million for the second quarter of 2025. Interest income totaled $106.0 million for the second quarter of 2026, an increase of 8.8% from $97.4 million for the first quarter of 2026 and an increase of 19.5% from $88.7 million for the second quarter of 2025. The quarter-over-quarter increase from the first quarter of 2026 in interest income primarily resulted from an increase in loans. Interest expense was $45.7 million for the second quarter of 2026, an increase of $2.0 million, or 4.5%, from $43.7 million for the first quarter of 2026 and an increase of $6.4 million, or 16.4%, from $39.3 million for the second quarter of 2025, primarily resulting from an increase in interest-bearing demand deposits slightly offset by a reduction in rates paid on interest-bearing demand deposits.

Noninterest Income and Noninterest Expense

Noninterest income totaled $7.7 million for the second quarter of 2026, compared to $4.0 million for the first quarter of 2026 and $2.7 million for the second quarter of 2025. The quarter-over-quarter increase from the first quarter of 2026 in noninterest income was primarily due to the gain on sale of factored receivables during the second quarter of 2026.

Noninterest expense remained flat at $38.4 million for the second quarter of 2026, compared to $38.1 million for the first quarter of 2026 and $28.8 million for the second quarter of 2025. At June 30, 2026, the number of employees decreased to 504, compared to 514 at March 31, 2026.

The efficiency ratio was 56.51% for the second quarter of 2026, compared to 66.06% for the first quarter of 2026 and 55.45% for the second quarter of 2025.

Balance Sheet Highlights

Loan Portfolio and Composition

For the quarter ended June 30, 2026, gross loans increased to $5.44 billion, an increase of $185.0 million, or 3.5%, from $5.25 billion as of March 31, 2026, and an increase of $1.36 billion, or 33.3%, from $4.08 billion as of June 30, 2025. Commercial and industrial loans accounted for the majority of the loan growth for the second quarter of 2026, with commercial and industrial loans increasing $186.7 million from the first quarter of 2026.

Asset Quality

Nonperforming loans at June 30, 2026 were $30.0 million, compared to $35.6 million at March 31, 2026 and $20.1 million at June 30, 2025. The decrease in nonperforming loans during the second quarter of 2026 was primarily due to the transfer of a $17.1 million loan to other real estate owned, offset by the placement on nonaccrual of three relationships totaling $10.1 million and an increase of $2.1 million in loans over 90 days past due and still accruing. As of June 30, 2026, the nonperforming loans to total loans ratio was 0.55%, compared to 0.68% as of March 31, 2026 and 0.49% as of June 30, 2025.

The provision for credit loss recorded for the second quarter of 2026 was $2.1 million, and the allowance for credit losses of $53.6 million represented 0.99% of the $5.44 billion in gross loans outstanding as of June 30, 2026. The provision for credit loss recorded for the first quarter of 2026 was $580,000, and the allowance for credit losses of $51.5 million represented 0.98% of the $5.25 billion in gross loans outstanding as of March 31, 2026.

The Company recorded net recoveries of $150,000 and net charge-offs of $2.4 million for the three months ended June 30, 2026 and June 30, 2025, respectively.

Deposits and Composition

Deposits totaled $5.86 billion as of June 30, 2026, an increase of 2.5% from $5.72 billion as of March 31, 2026, and an increase of 36.8% from $4.28 billion as of June 30, 2025. Noninterest-bearing demand deposits increased from $577.2 million as of March 31, 2026, to $642.7 million as of June 30, 2026 and represented 11.0% and 10.1% of total deposits as of June 30, 2026 and March 31, 2026, respectively. As of June 30, 2026, interest-bearing demand deposits increased $44.2 million, or 1.0%, time deposits increased $28.1 million, or 3.4%, and savings accounts increased $2.5 million, or 9.9%, respectively, from March 31, 2026.

The average cost of deposits was 3.05% for the second quarter of 2026, representing a 12-basis point decrease from the first quarter of 2026 and a 54-basis point decrease from the second quarter of 2025. The decreases were primarily 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 2026 second quarter results, which will be broadcast live over the Internet, on Thursday, July 23, 2026, 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 July 30, 2026, and may be accessed by dialing 201-612-7415 and using passcode 13757904#. 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 21 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; changes in key management personnel; the risk that the benefits from the transaction between Third Coast and Keystone Bancshares, Inc. ("Keystone") may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Third Coast and Keystone operate; the risk that the integration of each party's operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party's businesses into the other's businesses; the possibility that the completion of the transaction may be more expensive than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Third Coast's or Keystone's customers, suppliers, employees or other business partners, including those resulting from the completion of the transaction; the dilution caused by Third Coast's issuance of additional shares of its common stock in connection with the transaction; and other factors that may affect future results of Third Coast and Keystone including changes in asset quality and credit risk, the inability to sustain revenue and earnings growth, changes in interest rates and capital markets, inflation, customer borrowing, repayment, investment and deposit practices, the impact, extent and timing of technological changes, capital management activities and other actions of the Board of Governors of the Federal Reserve System and legislative and regulatory actions and reforms. 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, 2025 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 Common 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.

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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.

Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited)

	2026				2025
(Dollars in thousands)	June 30		March 31		December 31		September 30		June 30

ASSETS
Cash and cash equivalents:
Cash and due from banks	$	404,165	$	425,174	$	175,202	$	116,383	$	113,141
Federal funds sold		6,732		6,133		6,027		6,629		5,815
Total cash and cash equivalents		410,897		431,307		181,229		123,012		118,956

Interest bearing time deposits in other banks		273		270		267		265		262
Investment securities available-for-sale		405,251		435,846		383,192		376,719		355,753
Investment securities held to maturity		191,952		191,980		192,008		206,037		206,065
Loans held for investment		5,436,414		5,251,458		4,394,751		4,165,116		4,079,736
Less: allowance for credit losses		(53,591)		(51,455)		(43,949)		(42,563)		(40,035)
Loans held for investment, net		5,382,823		5,200,003		4,350,802		4,122,553		4,039,701
Accrued interest receivable		30,306		31,385		29,236		29,537		27,736
Premises and equipment, net		40,178		40,558		24,789		24,718		24,908
Other real estate owned		27,321		8,388		8,388		8,388		8,580
Bank-owned life insurance		77,856		77,107		76,357		75,547		74,761
Non-marketable securities, at cost		23,538		21,759		16,424		26,157		18,761
Deferred tax asset, net		23,843		7,493		6,450		6,989		8,646
Derivative assets		2,594		2,350		2,544		2,803		3,059
Right-of-use assets - operating leases		16,953		17,615		17,066		17,677		18,769
Core deposit intangibles, net		8,081		8,516		646		686		727
Goodwill		46,079		46,367		18,034		18,034		18,034
Other assets		47,556		61,129		33,327		22,686		19,053
Total assets	$	6,735,501	$	6,582,073	$	5,340,759	$	5,061,808	$	4,943,771

LIABILITIES
Deposits:
Noninterest bearing	$	642,748	$	577,217	$	495,000	$	450,013	$	440,964
Interest bearing		5,212,718		5,137,860		4,131,888		3,922,728		3,839,905
Total deposits		5,855,466		5,715,077		4,626,888		4,372,741		4,280,869

Accrued interest payable		5,872		7,205		5,957		7,153		6,691
Derivative liabilities		4,289		3,517		3,142		3,521		3,779
Lease liability - operating leases		18,011		18,676		18,130		18,735		19,835
Other liabilities		39,647		48,177		36,775		32,040		24,745
Line of credit - Senior Debt		60,375		57,875		37,875		32,875		30,875
Note payable - Subordinated Debentures, net		81,068		81,016		80,965		80,913		80,862
Total liabilities		6,064,728		5,931,543		4,809,732		4,547,978		4,447,656

SHAREHOLDERS' EQUITY
Series A Convertible Non-Cumulative Preferred Stock		69		69		69		69		69
Series B Convertible Perpetual Preferred Stock		-		-		-		-		-
Common stock		16,718		16,641		13,970		13,958		13,930
Common stock - non-voting		-		-		-		-		-
Additional paid-in capital		429,931		428,815		323,929		323,491		322,972
Retained earnings		219,238		198,435		183,238		166,537		149,677
Accumulated other comprehensive income		5,916		7,669		10,920		10,874		10,566
Treasury stock, at cost		(1,099)		(1,099)		(1,099)		(1,099)		(1,099)
Total shareholders' equity		670,773		650,530		531,027		513,830		496,115
Total liabilities and shareholders' equity	$	6,735,501	$	6,582,073	$	5,340,759	$	5,061,808	$	4,943,771

Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited)

	Three Months Ended										Six Months Ended
	2026				2025						2026		2025
(Dollars in thousands, except per share data)	June 30		March 31		December 31		September 30		June 30		June 30		June 30

INTEREST INCOME:
Loans, including fees	$	94,584	$	85,893	$	81,368	$	82,054	$	79,706	$	180,477	$	152,793
Investment securities available-for-sale		6,482		6,107		6,464		6,289		5,505		12,589		11,198
Investment securities held-to-maturity		2,549		2,398		2,681		2,882		1,607		4,947		1,607
Federal funds sold and other		2,374		2,988		1,586		1,278		1,844		5,362		3,830
Total interest income		105,989		97,386		92,099		92,503		88,662		203,375		169,428

INTEREST EXPENSE:
Deposit accounts		43,384		41,484		37,530		39,030		37,535		84,868		73,761
FHLB advances and other borrowings		2,329		2,257		2,372		2,624		1,753		4,586		3,496
Total interest expense		45,713		43,741		39,902		41,654		39,288		89,454		77,257

Net interest income		60,276		53,645		52,197		50,849		49,374		113,921		92,171

Provision for credit losses		2,069		580		2,245		2,763		2,130		2,649		2,580

Net interest income after credit loss expense		58,207		53,065		49,952		48,086		47,244		111,272		89,591

NONINTEREST INCOME:
Service charges and fees		3,174		3,175		3,518		2,839		2,125		6,349		4,402
Earnings on bank-owned life insurance		748		750		811		786		743		1,498		1,420
Loss on sale of investment securities available-for-sale		(93)		(11)		(272)		-		(110)		(104)		(338)
Gain on sale of factored receivables		3,463		-		-		-		-		3,463		-
Gain on sale of SBA loans		-		-		-		-		44		-		74
Other		425		119		204		10		(152)		544		199
Total noninterest income		7,717		4,033		4,261		3,635		2,650		11,750		5,757

NONINTEREST EXPENSE:
Salaries and employee benefits		24,804		24,808		21,109		19,560		18,179		49,612		36,520
Occupancy and equipment expense		3,259		3,349		2,845		2,861		2,783		6,608		5,617
Legal and professional		2,271		3,221		2,850		1,254		1,927		5,492		3,358
Data processing and network expense		1,595		1,414		1,087		1,203		1,162		3,009		2,282
Regulatory assessments		1,331		1,210		1,172		1,152		1,203		2,541		2,509
Advertising and marketing		737		639		733		499		503		1,376		912
Software purchases and maintenance		1,421		1,419		1,067		1,094		1,149		2,840		2,408
Loan operations and other real estate owned expense		656		537		397		29		439		1,193		708
Telephone and communications		158		144		126		134		115		302		290
Other		2,192		1,362		1,305		1,106		1,386		3,554		2,350
Total noninterest expense		38,424		38,103		32,691		28,892		28,846		76,527		56,954

NET INCOME BEFORE INCOME TAX EXPENSE		27,500		18,995		21,522		22,829		21,048		46,495		38,394

Income tax expense		5,513		2,627		3,624		4,772		4,301		8,140		8,058

NET INCOME		21,987		16,368		17,898		18,057		16,747		38,355		30,336

Preferred stock dividends declared		1,184		1,171		1,197		1,197		1,185		2,355		2,356

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	20,803	$	15,197	$	16,701	$	16,860	$	15,562	$	36,000	$	27,980

EARNINGS PER COMMON SHARE:
Basic earnings per share	$	1.25	$	1.03	$	1.21	$	1.22	$	1.12	$	2.29	$	2.03
Diluted earnings per share	$	1.08	$	0.88	$	1.02	$	1.03	$	0.96	$	1.97	$	1.74

Third Coast Bancshares, Inc. and Subsidiary Financial Highlights (unaudited)

	Three Months Ended															Six Months Ended
	2026						2025									2026			2025
(Dollars in thousands, except share and per share data)	June 30			March 31			December 31			September 30			June 30			June 30			June 30

Earnings per common share, basic	$	1.25		$	1.03		$	1.21		$	1.22		$	1.12		$	2.29		$	2.03
Earnings per common share, diluted	$	1.08		$	0.88		$	1.02		$	1.03		$	0.96		$	1.97		$	1.74
Dividends on common stock	$	-		$	-		$	-		$	-		$	-		$	-		$	-
Dividends on Series A Convertible Non-Cumulative Preferred Stock	$	17.06		$	16.88		$	17.25		$	17.25		$	17.06		$	33.94		$	33.94

Return on average assets ^(A)		1.34	%		1.08	%		1.36	%		1.41	%		1.38	%		1.21	%		1.28	%
Return on average common equity ^(A)		13.96	%		11.29	%		14.42	%		15.14	%		14.70	%		12.69	%		13.59	%
Return on average tangible common equity ^{(A) (B)}		15.36	%		12.23	%		15.03	%		15.81	%		15.38	%		13.86	%		14.23	%
Net interest margin ^{(A) (C)}		3.83	%		3.67	%		4.10	%		4.10	%		4.22	%		3.75	%		4.02	%
Efficiency ratio ^(D)		56.51	%		66.06	%		57.90	%		53.03	%		55.45	%		60.89	%		58.16	%

Capital Ratios
Third Coast Bancshares, Inc. (consolidated):
Total common equity to total assets		8.98	%		8.88	%		8.70	%		8.84	%		8.70	%		8.98	%		8.70	%
Tangible common equity to tangible assets ^(B)		8.24	%		8.11	%		8.38	%		8.51	%		8.35	%		8.24	%		8.35	%
Estimated Common equity tier 1 (to risk weighted assets)		8.82	%		8.84	%		8.65	%		8.85	%		8.75	%		8.82	%		8.75	%
Estimated Tier 1 capital (to risk weighted assets)		9.89	%		9.96	%		9.97	%		10.25	%		10.20	%		9.89	%		10.20	%
Estimated Total capital (to risk weighted assets)		12.01	%		12.13	%		12.48	%		12.90	%		12.87	%		12.01	%		12.87	%
Estimated Tier 1 capital (to average assets)		9.35	%		9.65	%		9.65	%		9.55	%		9.65	%		9.35	%		9.65	%

Third Coast Bank:
Estimated Common equity tier 1 (to risk weighted assets)		12.10	%		12.23	%		12.23	%		12.59	%		12.56	%		12.10	%		12.56	%
Estimated Tier 1 capital (to risk weighted assets)		12.10	%		12.23	%		12.23	%		12.59	%		12.56	%		12.10	%		12.56	%
Estimated Total capital (to risk weighted assets)		12.91	%		13.02	%		13.14	%		13.53	%		13.46	%		12.91	%		13.46	%
Estimated Tier 1 capital (to average assets)		11.44	%		11.84	%		11.84	%		11.75	%		11.89	%		11.44	%		11.89	%

Other Data
Weighted average common shares:
Basic		16,591,144			14,814,661			13,889,497			13,860,149			13,836,830			15,707,810			13,807,079
Diluted		20,334,205			18,560,056			17,552,204			17,524,288			17,391,128			19,452,038			17,416,142
Period end common shares outstanding		16,639,127			16,562,268			13,891,055			13,879,099			13,851,581			16,639,127			13,851,581
Book value per common share	$	36.34		$	35.28		$	33.47		$	32.25		$	31.04		$	36.34		$	31.04
Tangible book value per common share ^(B)	$	33.08		$	31.97		$	32.12		$	30.91		$	29.69		$	33.08		$	29.69

(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
	June 30, 2026					March 31, 2026					June 30, 2025
(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	$	5,371,846	$	94,584	7.06 %	$	4,972,780	$	85,893	7.01 %	$	4,020,771	$	79,706	7.95 %
Investment securities available-for-sale		432,863		6,482	6.01 %		402,372		6,107	6.16 %		382,439		5,505	5.77 %
Investment securities held-to-maturity		191,970		2,549	5.33 %		191,998		2,398	5.07 %		117,407		1,607	5.49 %
Federal funds sold and other interest- earning assets		315,434		2,374	3.02 %		364,681		2,988	3.32 %		169,943		1,844	4.35 %
Total interest-earning assets		6,312,113		105,989	6.73 %		5,931,831		97,386	6.66 %		4,690,560		88,662	7.58 %
Less: allowance for credit losses		(52,533)					(48,822)					(40,631)
Total interest-earning assets, net of allowance		6,259,580					5,883,009					4,649,929
Noninterest-earning assets		330,121					270,433					210,170
Total assets	$	6,589,701				$	6,153,442				$	4,860,099

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits	$	5,108,166	$	43,384	3.41 %	$	4,761,641	$	41,484	3.53 %	$	3,766,801	$	37,535	4.00 %
Note payable and line of credit		139,733		2,091	6.00 %		130,737		1,944	6.03 %		111,712		1,719	6.17 %
FHLB advances		24,719		238	3.86 %		40,155		313	3.16 %		2,916		34	4.68 %
Total interest-bearing liabilities		5,272,618		45,713	3.48 %		4,932,533		43,741	3.60 %		3,881,429		39,288	4.06 %
Noninterest-bearing deposits		599,000					549,111					431,144
Other liabilities		54,236					59,628					56,785
Total liabilities		5,925,854					5,541,272					4,369,358
Shareholders' equity		663,847					612,170					490,741
Total liabilities and shareholders' equity	$	6,589,701				$	6,153,442				$	4,860,099
Net interest income			$	60,276				$	53,645				$	49,374
Net interest spread ⁽¹⁾					3.25 %					3.06 %					3.52 %
Net interest margin ⁽²⁾					3.83 %					3.67 %					4.22 %


(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)

	Six Months Ended
	June 30, 2026					June 30, 2025
(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⁾

Assets
Interest-earnings assets:
Loans, gross	$	5,173,415	$	180,477	7.03 %	$	4,000,428	$	152,793	7.70 %
Investment securities available-for-sale		417,702		12,589	6.08 %		390,233		11,198	5.79 %
Investment securities held-to-maturity		191,984		4,947	5.20 %		59,028		1,607	5.49 %
Federal funds sold and other interest-earning assets		339,200		5,362	3.19 %		178,372		3,830	4.33 %
Total interest-earning assets		6,122,301		203,375	6.70 %		4,628,061		169,428	7.38 %
Less: allowance for credit losses		(50,688)					(40,613)
Total interest-earning assets, net of allowance		6,071,613					4,587,448
Noninterest-earning assets		301,164					204,378
Total assets	$	6,372,777				$	4,791,826

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits	$	4,935,861	$	84,868	3.47 %	$	3,709,721	$	73,761	4.01 %
Note payable and line of credit		135,260		4,036	6.02 %		111,687		3,432	6.20 %
FHLB advances and other		32,394		550	3.42 %		2,735		64	4.72 %
Total interest-bearing liabilities		5,103,515		89,454	3.53 %		3,824,143		77,257	4.07 %
Noninterest-bearing deposits		574,193					427,482
Other liabilities		56,924					58,758
Total liabilities		5,734,632					4,310,383
Shareholders' equity		638,145					481,443
Total liabilities and shareholders' equity	$	6,372,777				$	4,791,826
Net interest income			$	113,921				$	92,171
Net interest spread ⁽¹⁾					3.17 %					3.31 %
Net interest margin ⁽²⁾					3.75 %					4.02 %


(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
	2026						2025
(Dollars in thousands)	June 30			March 31			December 31			September 30			June 30

Period-end Loan Portfolio:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied	$	583,989		$	572,037		$	434,715		$	408,996		$	423,959
Non-farm non-residential non-owner occupied		932,147			929,598			710,401			687,924			666,840
Residential		530,189			543,804			333,419			334,583			323,898
Construction, development & other		887,805			894,767			823,353			826,566			784,364
Farmland		32,898			32,379			26,485			25,549			28,013
Commercial & industrial		2,369,582			2,182,864			1,906,616			1,772,045			1,724,583
Consumer		1,871			2,265			1,576			1,291			1,206
Municipal and other		97,933			93,744			158,186			108,162			126,873
Total loans	$	5,436,414		$	5,251,458		$	4,394,751		$	4,165,116		$	4,079,736

Asset Quality:
Nonaccrual loans	$	21,557		$	29,222		$	10,120		$	10,723		$	13,358
Loans > 90 days and still accruing		8,464			6,396			11,360			11,016			6,755
Total nonperforming loans		30,021			35,618			21,480			21,739			20,113
Other real estate owned		27,321			8,388			8,388			8,388			8,580
Total nonperforming assets	$	57,342		$	44,006		$	29,868		$	30,127		$	28,693

QTD Net (recoveries) charge-offs	$	(150)		$	(5)		$	844		$	(17)		$	2,376

Nonaccrual loans:
Real estate loans:
Commercial real estate:
Non-farm non-residential owner occupied	$	3,320		$	618		$	1,235		$	1,237		$	2,191
Non-farm non-residential non-owner occupied		5,584			17,140			99			111			111
Residential		198			374			387			214			637
Construction, development & other		-			603			-			6			344
Commercial & industrial		12,455			10,487			8,399			9,155			10,075
Total nonaccrual loans	$	21,557		$	29,222		$	10,120		$	10,723		$	13,358

Asset Quality Ratios:
Nonperforming assets to total assets		0.85	%		0.67	%		0.56	%		0.60	%		0.58	%
Nonperforming loans to total loans		0.55	%		0.68	%		0.49	%		0.52	%		0.49	%
Allowance for credit losses to total loans		0.99	%		0.98	%		1.00	%		1.02	%		0.98	%
QTD Net (recoveries) charge-offs to average loans (annualized)		(0.01)	%		(0.00)	%		0.08	%		(0.00)	%		0.24	%

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 Common 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 Common Share. The most directly comparable GAAP financial measure for tangible book value per common share is book value per common share. We believe that the tangible book value per common share measure is important to many investors in the marketplace who are interested in changes from period to period in book value per common 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										Six Months Ended
	2026				2025						2026		2025
(Dollars in thousands, except share and per share data)	June 30		March 31		December 31		September 30		June 30		June 30		June 30

Tangible Common Equity:
Total shareholders' equity	$	670,773	$	650,530	$	531,027	$	513,830	$	496,115	$	670,773	$	496,115
Less: Preferred stock including additional paid in capital		66,160		66,160		66,160		66,160		66,160		66,160		66,160
Total common equity		604,613		584,370		464,867		447,670		429,955		604,613		429,955
Less: Goodwill and core deposit intangibles, net		54,160		54,883		18,680		18,720		18,761		54,160		18,761
Tangible common equity	$	550,453	$	529,487	$	446,187	$	428,950	$	411,194	$	550,453	$	411,194

Common shares outstanding at end of period		16,639,127		16,562,268		13,891,055		13,879,099		13,851,581		16,639,127		13,851,581