- Net income for Third Coast Bancshares (TCBX, Financial) in Q1 2025 increased by 31% year-over-year to $13.6 million, with diluted EPS at $0.78.
- Net interest margin expanded to 3.80%, and gross loans grew 6.5% year-over-year to $3.99 billion.
- Nonperforming loans decreased significantly to $18.6 million, improving asset quality.
Third Coast Bancshares, Inc. (TCBX) reported strong financial results for the first quarter of 2025. The bank's net income reached $13.6 million, reflecting a 31% improvement from the previous year, translating to a diluted earnings per share of $0.78. Despite this increase, net income saw a slight decrease from $13.7 million in the fourth quarter of 2024.
The bank's net interest margin expanded to 3.80% in Q1 2025, up from 3.71% in the previous quarter and 3.60% in Q1 2024. Gross loans increased to $3.99 billion, marking a 6.5% rise year-over-year, as the bank managed to maintain robust loan portfolio growth.
Asset quality improved with nonperforming loans decreasing to $18.6 million, or 0.47% of total loans, down from $27.9 million in Q4 2024. This decline in nonperforming loans contributed to a reduced provision for credit losses, which stood at $450,000 for the quarter.
On April 1, 2025, the bank completed a $200 million commercial real estate loan securitization aimed at reducing risk-weighted assets, enhancing capital ratios, and generating fee income in future periods. This strategic move is expected to strengthen the bank's financial stability further.
Despite an increase in noninterest expenses to $28.1 million due to higher personnel costs and bonus accruals, Third Coast Bancshares continues to focus on enhancing shareholder value, as evidenced by the increase in book value per share to $29.92.
Overall, Third Coast Bancshares demonstrates a focused approach to capital management, exhibiting resilience in a dynamic banking environment and positioning itself for continued value delivery to shareholders.
