Third Coast Bancshares (TCBX) Q4 2024 earnings summary

Executive summary

• Achieved 14 consecutive quarters of net interest income growth, with Q4 net interest income up 7.6% sequentially and 16.4% year-over-year to $43.4 million.

• Full-year 2024 net income reached $47.7 million, a 42.8% increase from 2023, with EPS of $3.14 basic and $2.78 diluted.

• Loans grew by $327.6 million (9%) and deposits by $507.4 million (13.3%) for the year, with total assets up 12.4% to $4.94B.

• Book value per share grew 12.8% year-over-year to $28.65; tangible book value per share rose 13.6% to $27.29.

• Three new branches opened in Texas, supporting deposit growth.

Financial highlights

• Q4 net interest income: $43.4 million, up from $40.4 million in Q3 and $37.3 million in Q4 2023.

• Net interest margin for Q4 2024 was 3.71%, compared to 3.73% in Q3 2024 and 3.61% in Q4 2023.

• Noninterest income for Q4 2024 was $2.9M, up from $2.5M in Q3 and $2.2M in Q4 2023.

• Noninterest expenses rose to $27.2M in Q4 2024, mainly due to higher salary and bonus expenses.

• Efficiency ratio improved to 58.8% in Q4, below the 60% target.

Outlook and guidance

• 2025 loan growth expected at 8% (~$325 million), mirroring 2024.

• Return on average assets target remains at 1% or better.

• Deposit growth anticipated to continue, with some seasonal Q1 dip.

• Non-interest income expected to remain strong, with treasury and wealth management divisions contributing.

• Expense growth projected at roughly 4% for 2025, with technology savings expected post-July.

• Management remains focused on sustaining growth momentum, innovating, and adapting to evolving market conditions.