Third Coast Bancshares (TCBX) Q4 2025 earnings summary

Executive summary

• Achieved record annual net income of $66.3 million and diluted EPS of $3.79 for 2025, up from $47.7 million and $2.78 in 2024.

• Book value per share grew 16.8% year-over-year to $33.47; tangible book value per share rose 17.7% to $32.12.

• Total assets reached $5.34 billion, up 8.1% year-over-year; gross loans grew 10.8% to $4.39 billion; deposits rose 7.3% to $4.63 billion.

• Return on average assets for 2025 was 1.33%, a 26% year-over-year improvement.

• Transferred listing of common stock to the New York Stock Exchange and NYSE Texas.

Financial highlights

• Q4 2025 net income was $17.9 million, or $1.02 diluted EPS, compared to $13.7 million and $0.79 in Q4 2024.

• Net interest income for Q4 2025 was $52.2 million, up 20.2% year-over-year; annual net interest income was $195.2 million, up 21% year-over-year.

• Net interest margin was 4.10% for Q4 2025, up from 3.71% in Q4 2024; core NIM at 3.90%, up 10 basis points from Q3.

• Service charges and fees rose 24% sequentially and 55% year-over-year; noninterest income increased to $4.3 million in Q4 2025.

• Noninterest expense rose to $32.7 million in Q4 2025, mainly due to $1.0 million in merger-related expenses and $1.5 million in sign-on bonuses and severance.

Outlook and guidance

• Loan growth targets for 2026 are $75–$100 million per quarter, aiming for an annualized growth rate of ~8%.

• Expectation of continued strong non-interest income, with a $4 million quarterly run rate.

• Margin expected to normalize to 3.90% in Q1 2026 due to absence of one-time loan fees.

• Expense growth projected at 5–7% for 2026, with revenue growth expected to outpace expenses.

• Management highlighted exceptional loan growth, higher-than-expected fee income, and a stable net interest margin, positioning the company as a high-performing institution.