Third Coast Bancshares (TCBX) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 reached $16.7 million, up 23% sequentially and 55% year-over-year, with record EPS and strong loan growth.

• Total assets were $4.94 billion, loans $4.08 billion, and deposits $4.28 billion as of June 30, 2025, reflecting continued organic growth.

• Achieved record profitability, improved efficiency, and robust capital, with tangible book value per share at $29.69.

• Completed two commercial real estate loan securitizations totaling $250 million, enhancing risk management and capital flexibility.

• Maintained high credit standards and strong asset quality, with a focus on operational discipline and value creation.

Financial highlights

• Net interest income grew 15.4% sequentially and 27.1% year-over-year to $49.4 million in Q2 2025.

• Net interest margin expanded to 4.22% in Q2 2025, up from 3.80% in Q1 and 3.62% in Q2 2024.

• Noninterest income rose 10.1% year-over-year for the first half, mainly from higher service charges and BOLI income.

• Noninterest expenses increased, with higher salaries, legal/professional fees, and $500,000 in securitization costs.

• Deposits grew by $32 million sequentially and 11% year-over-year, with a loan-to-deposit ratio of 95%.

Outlook and guidance

• Forecasting net interest margin of 3.90%-3.95% for Q3 and Q4, assuming no new securitizations.

• Projecting $50-$100 million in new loans per quarter, maintaining annualized growth near 8%.

• Expecting return on average assets between 1.25% and 1.30% for the remainder of the year.

• Management expects to maintain strong capital ratios and focus on organic growth and risk management.

• Anticipating two Federal Reserve rate cuts before year-end and prepared to manage margin accordingly.