Third Coast Bancshares Stock Earnings Reports

Third Coast reported a quarter materially impacted by the Keystone Bank acquisition. Pro forma effects from the acquisition drove a larger balance sheet: assets +23.2%, loans +19.5% and deposits +23.5% vs. year-end. Reported net interest income was $53.6 million and diluted EPS was $0.88; management noted that merger-related, nonrecurring expenses meaningfully reduced reported results. Management recorded $3.3 million of Keystone-related noninterest expense (legal/professional, salary/benefits, misc.) plus ~$644k of sign-on bonuses for new senior hires. Excluding those merger items, management said core profitability metrics would have been materially stronger. Asset quality: nonperforming assets rose due to a $17.1 million CRE loan placed on nonaccrual (foreclosed April 7; LTV ~70% per a 2026 appraisal) and $1.8 million of purchased credit impaired loans from Keystone; allowance for credit losses was $51.5 million (0.98% of gross loans). Loan pipelines are described as robust, with April-to-date loan growth already +$100M and management raising their target quarterly loan growth range to $75M–$125M as new producers and strategic product additions ramp. Management expects most cost saves from the Keystone integration to be realized later in the year (data processing savings begin in August; many savings realized by year-end and fully realized by next January), and guided net interest margin to roughly 3.75% in the near term after merger mix and a one-time accrued-interest reversal. Key near-term items for investors: 1) integration of Keystone (core conversion in July), 2) timing and resolution of the $17.1M CRE nonaccrual, 3) realization of merger cost saves (late 3Q/4Q into next year), and 4) execution on loan growth pipeline and newly hired producers.