0001193125-26-091656
SEC filingThird Coast Bancshares, Inc. reported net income of $66.3 million for fiscal year 2025, with net income available to common shareholders of $61.5 million. The company generated total interest income of $354.0 million, primarily from loans including fees ($316.2 million), and total interest expense of $158.8 million, resulting in net interest income of $195.2 million. After a provision for credit losses of $7.6 million and noninterest income of $13.7 million, the company incurred noninterest expenses of $118.5 million, leading to net income before taxes of $82.7 million. The balance sheet shows total assets of $5.34 billion, with loans net of allowance for credit losses of $4.35 billion and total deposits of $4.63 billion. Cash flow from operations was $50.8 million, while investing activities used $610.2 million primarily for loan originations and securities purchases, and financing activities provided $319.4 million. The company's performance reflects strong loan growth and disciplined expense management.
Third Coast Bancshares, Inc. reported solid financial results for fiscal year 2025, ending December 31, 2025. The company achieved net income of $66.3 million, with net income available to common shareholders of $61.5 million after preferred stock dividends of $4.8 million. Total interest income reached $354.0 million, driven primarily by loans including fees of $316.2 million, investment securities available-for-sale of $24.0 million, investment securities held-to-maturity of $7.2 million, and federal funds sold and other interest income of $6.7 million. Interest expense totaled $158.8 million, resulting in net interest income of $195.2 million. After a provision for credit losses of $7.6 million, net interest income after provision stood at $187.6 million. Noninterest income contributed $13.7 million, while noninterest expenses totaled $118.5 million, leading to net income before income tax expense of $82.7 million and income tax expense of $16.5 million.
The company's revenue is primarily derived from interest income, which totaled $354.0 million for FY 2025. The largest component was loans including fees at $316.2 million, representing approximately 89% of total interest income. Investment securities available-for-sale contributed $24.0 million, investment securities held-to-maturity added $7.2 million, and federal funds sold and other interest income provided $6.7 million. Noninterest income sources included services charges and fees of $10.8 million, earnings on bank-owned life insurance of $3.0 million, a loss on sale of investment securities available-for-sale of $610,000, gain on sales of SBA loans of $74,000, and other noninterest income of $413,000. The company's revenue mix demonstrates heavy reliance on traditional banking activities with loan interest as the dominant driver.
The company's net interest margin can be inferred from the net interest income of $195.2 million relative to interest-earning assets, though specific margin percentages are not provided in the data. Noninterest expenses totaled $118.5 million, with the largest components being salaries and employee benefits at $77.2 million (65% of noninterest expenses), occupancy and equipment expense at $11.3 million, legal and professional expenses at $7.5 million, data processing and network expense at $4.6 million, regulatory assessments at $4.8 million, software purchases and maintenance at $4.6 million, and other expenses totaling $8.4 million. The efficiency ratio (noninterest expenses divided by total revenue) would be approximately 32.2%, indicating reasonable expense control relative to revenue generation.
Operating activities generated $50.8 million in cash flow, starting with net income of $66.3 million and adjusting for various non-cash items including provision for credit losses of $7.6 million, accretion of loan fees of $17.0 million, and depreciation and amortization of $4.7 million. Investing activities used $610.2 million, primarily for net loan originations of $422.5 million, purchases of investment securities available-for-sale of $5.23 billion (partially offset by sales of $74.0 million and maturities of $5.17 billion), and purchases of investment securities held-to-maturity of $192.1 million. Financing activities provided $319.4 million, driven by a net increase in deposits of $316.4 million. The balance sheet shows total assets of $5.34 billion, with loans net of allowance for credit losses of $4.35 billion, investment securities available for sale of $383.2 million, and cash and cash equivalents of $181.2 million. Total liabilities were $4.81 billion, primarily consisting of total deposits of $4.63 billion, with shareholders' equity of $531.0 million.
The filing includes standard risk factor disclosures noting that an investment in the company's common stock is not an insured deposit and is subject to risk of loss, with the possibility that an investor could lose their entire investment. The document references management's discussion of interest rate sensitivity and market risk in Item 7, though specific forward-looking guidance or strategic priorities are not detailed in the provided content. Investors should review the complete risk factors section and management discussion for comprehensive understanding of the company's outlook and potential challenges.