TCBX earnings analysis
What we found in TCBX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- 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 they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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