10-Q · May 5, 2026
Third Coast Bancshares, Inc. (TCBX) reported Q1 2026 with revenue reaching $57.68 million, surpassing consensus estimates of $56.48 million, and achieving an adjusted EPS of $0.88, matching analyst forecasts. The…
Earnings analysis · 10-Q
TCBX earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Third Coast delivered Q2 revenue of $67.993 million and diluted EPS of $1.08, with net income increasing 31.3% year over year to $21.987 million. Keystone merger-related scale drove a 22.1% increase in net interest…
Read full summary
Third Coast delivered Q2 revenue of $67.993 million and diluted EPS of $1.08, with net income increasing 31.3% year over year to $21.987 million. Keystone merger-related scale drove a 22.1% increase in net interest income, but Q2 net interest margin declined to 3.83% from 4.22% and nonperforming assets rose to $54.433 million. The filing contains no numerical earnings outlook, and Item 1A states that there were no material changes to risk factors disclosed in the March 4, 2026 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.08
- Segment
- Community banking (single reportable segment): $67.993 million of Q2 revenue, comprising $60.276 million of net interest income and $7.717 million of noninterest income.
What stood out
-
Revenue accelerated year over year and sequentially
Q2 revenue was $67.993 million, up $15.969 million, or 30.7%, from $52.024 million in Q2 2025. It also increased $10.315 million, or 17.9%, from the implied Q1 2026 level of $57.678 million.
-
EPS and earnings improved
Diluted EPS of $1.08 increased from $0.96 in Q2 2025 and $0.88 in Q1 2026. Net income rose 31.3% year over year to $21.987 million.
-
Loan scale lifted net interest income
Net interest income grew $10.902 million, or 22.1%, year over year to $60.276 million, supported by average loans increasing to $5.372 billion from $4.021 billion, largely following the Keystone merger.
-
Fee income benefited from asset sale
Noninterest income increased $5.067 million to $7.717 million, led by a $3.463 million gain on the sale of factored receivables and a $1.049 million increase in service charges and fees.
-
Liquidity and deposits expanded
Cash and cash equivalents rose to $410.9 million at June 30, 2026 from $181.2 million at December 31, 2025. Total deposits increased $1.229 billion, or 26.6%, to $5.855 billion.
-
Capital remained above regulatory thresholds
The Bank remained well capitalized, with a 12.91% total capital ratio versus its 10.00% well-capitalized threshold. Total shareholders' equity increased $139.7 million, or 26.3%, to $670.8 million.
What to watch
-
Margin contracted despite net interest income growth
Net interest margin compressed 39 basis points year over year to 3.83% in Q2 2026 from 4.22% in Q2 2025, as the loan yield fell to 7.06% from 7.95%, despite the interest-bearing deposit rate declining to 3.41% from 4.00%.
-
Nonperforming assets and OREO increased
Nonperforming assets increased to $54.433 million at June 30, 2026 from $29.868 million at December 31, 2025; other real estate owned rose to $27.321 million from $8.388 million, including a $17.1 million loan transferred to OREO.
-
Merger-related cost growth remained elevated
Q2 noninterest expense increased $9.578 million, or 33.2%, to $38.424 million. Salaries and benefits rose 36.4% to $24.804 million, driven by merger costs, new hires, and higher bonus expense.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management stated it does not expect its primary funding source (deposits) or primary use of funds (loans) to change in the foreseeable future; at June 30, 2026, available liquidity capacity included $870.3 million of FHLB capacity and $1.9 billion at the Federal Reserve Discount Window.
Earlier filings 4
10-K · March 4, 2026
Third Coast Bancshares reports a 2025 year with expanding margins and higher quarterly EPS alongside continued balance-sheet growth and a post-period acquisition. As of December 31, 2025, the Company had $5.34 billion…
10-Q · May 6, 2025
Third Coast Bancshares reported a quarter of improved profitability driven by higher net interest income and lower credit provisioning. Diluted EPS rose to $0.78 and net income increased to $13,589,000 versus…
10-K · March 7, 2024
Third Coast Bancshares positions itself as a relationship-driven commercial bank focused on small- and medium-sized businesses across three Texas metropolitan markets. The 2023 filing shows scale and lending growth with…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.