Third Coast Q1 Net Interest Margin Falls to 3.67%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 22 2026
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Should l Buy TCBX?
Q1 net interest margin was 3.67% vs. 4.10% for 4Q25 and 3.80% last year. Tangible book value per common share was $31.97 vs. $32.12 at previous quarter end. Q1 NII totaled $53.6M, up 2.8% from $52.2M in the previous quarter and up 25.3% from $42.8M last year. "Our Q1 marked an important step for Third Coast with the successful merger with Keystone. This transaction meaningfully increased our balance sheet and capabilities, and we're already seeing strong momentum across our loan pipelines and core markets. As we move through the year, we remain focused on executing on our strategic objectives, building deeper relationships with clients, and translating our expanded platform into sustainable growth and shareholder value," said CEO Bart Caraway.
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Analyst Views on TCBX
Wall Street analysts forecast TCBX stock price to rise
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 38.480
Low
43.00
Averages
44.50
High
46.00
Current: 38.480
Low
43.00
Averages
44.50
High
46.00
About TCBX
Third Coast Bancshares, Inc. is a commercially focused bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank. It is engaged in traditional community banking activities, which include commercial and retail lending, deposit gathering, and investment and liquidity management activities. Its primary deposit products are demand deposits, money market accounts and certificates of deposit. Its primary lending products are commercial business and real estate, residential construction, real estate mortgage and consumer loans. The Company operates approximately 22 banking locations across various cities, including Austin, Ballinger, Beaumont, Conroe, Dallas, Detroit, Fort Worth, Georgetown, Houston, Humble, Kingwood, La Vernia, Lake Jackson, Nixon, Pearland, Plano, Port Arthur, San Antonio, and The Woodlands, Texas. It also operates a loan production office in Bastrop, Texas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Third Coast Bancshares Reports Significant Q1 Growth Driven by Keystone Acquisition
- Asset and Deposit Growth: Third Coast Bancshares reported a 23.2% increase in assets, a 19.5% rise in loans, and a 23.5% growth in deposits for Q1 2026, indicating a significant expansion in market share in Central Texas following the acquisition of Keystone Bancshares, which has driven robust overall business growth.
- Merger Impact: CFO John McWhorter highlighted that the Keystone transaction significantly influenced quarter-over-quarter financial results, contributing approximately 20% to both loans and deposits, while also incurring $3.3 million in merger-related noninterest expenses, reflecting the cost pressures during the integration process.
- Profitability Outlook: Management anticipates that the net interest margin will normalize to about 3.75%, down from 3.90% in the previous quarter, reflecting integration challenges and credit actions, although loan growth targets have been raised to a range of $75 million to $125 million per quarter.
- Expense Control and Integration: McWhorter indicated that most cost savings from the merger are expected to materialize in the third and fourth quarters, emphasizing that effective expense management during the integration process will positively impact future profitability and ensure the bank's competitiveness in the market.
See More
Third Coast (TCBX) Q1 2026 Earnings Transcript
See More
Third Coast Bancshares Q1 Earnings Beat Expectations
- Earnings Beat: Third Coast Bancshares reported a Q1 GAAP EPS of $0.88, exceeding expectations by $0.12, indicating stable profitability and increased market confidence.
- Revenue Miss: Despite a 25.5% year-over-year revenue growth to $57.6 million, the figure fell short of expectations by $0.4 million, reflecting challenges in the post-merger integration process that may impact future revenue growth potential.
- Significant Loan Growth: As of March 31, 2026, total loans reached $5.25 billion, up from $4.39 billion reported on December 31, 2025, demonstrating the company's success in market expansion and customer acquisition.
- Deteriorating Efficiency Ratio: The efficiency ratio for Q1 stood at 66.06%, up from 57.90% in Q4 2025 and 61.23% in Q1 2025, indicating pressure on cost control that could affect future profitability.
See More
Third Coast Bancshares to Announce Q1 Earnings on April 22
- Earnings Announcement Date: Third Coast Bancshares (TCBX) is set to release its Q1 2023 earnings on April 22 after market close, with a consensus EPS estimate of $0.92, reflecting a 17.9% year-over-year increase, indicating sustained profitability improvements.
- Revenue Growth Expectations: The anticipated revenue for Q1 is $58 million, representing a 26.4% year-over-year growth, showcasing the company's strong performance and business expansion capabilities, which further solidify its market position in Texas.
- Earnings Forecast Revisions: Over the past three months, EPS estimates have seen three upward revisions with no downward adjustments, indicating analysts' growing confidence in the company's future profitability and reflecting positive operational efficiency and market demand.
- Loan Growth Target: Third Coast Bancshares has set a quarterly loan growth target of $75 million to $100 million, which, as the Keystone merger integration progresses, will help enhance the company's market share and profitability.
See More
Third Coast Bancshares to Report Q1 2026 Financial Results
- Earnings Release Schedule: Third Coast Bancshares plans to announce its Q1 2026 financial results on April 22, 2026, after market close, reflecting the company's commitment to transparency and timely information dissemination.
- Conference Call Timing: Management has scheduled a conference call for April 23, 2026, at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss the financial results in depth, aiming to strengthen investor relations.
- Participation Methods: Investors can join the call by dialing 201-389-0869 or listen via a live webcast, providing multiple channels to accommodate diverse investor preferences.
- Replay Availability: For those unable to attend the live call, a replay will be accessible until April 30, 2026, ensuring all stakeholders can obtain critical information and further enhancing the company's transparency.
See More
Third Coast Bancshares Declares Quarterly Dividend
- Quarterly Dividend Announcement: Third Coast Bancshares (TCBX) declares a quarterly dividend of $16.875 per share, reflecting the company's strong cash flow and profitability, which is likely to attract more investor interest.
- High Yield: The forward yield of 185.08% associated with this dividend not only provides substantial returns for existing shareholders but may also draw in yield-seeking investors, potentially boosting the company's stock price.
- Shareholder Assurance: The dividend will be payable on April 15, with a record date of March 31 and an ex-dividend date also on March 31, ensuring shareholders receive their dividends promptly and enhancing investor confidence.
- Loan Growth Target: As Third Coast Bancshares integrates its Keystone merger, it has set a quarterly loan growth target of $75 million to $100 million, demonstrating its expansion potential and strategic planning in the Texas market.
See More
Third Coast Bancshares Reports Significant Q1 Growth Driven by Keystone Acquisition
- Asset and Deposit Growth: Third Coast Bancshares reported a 23.2% increase in assets, a 19.5% rise in loans, and a 23.5% growth in deposits for Q1 2026, indicating a significant expansion in market share in Central Texas following the acquisition of Keystone Bancshares, which has driven robust overall business growth.
- Merger Impact: CFO John McWhorter highlighted that the Keystone transaction significantly influenced quarter-over-quarter financial results, contributing approximately 20% to both loans and deposits, while also incurring $3.3 million in merger-related noninterest expenses, reflecting the cost pressures during the integration process.
- Profitability Outlook: Management anticipates that the net interest margin will normalize to about 3.75%, down from 3.90% in the previous quarter, reflecting integration challenges and credit actions, although loan growth targets have been raised to a range of $75 million to $125 million per quarter.
- Expense Control and Integration: McWhorter indicated that most cost savings from the merger are expected to materialize in the third and fourth quarters, emphasizing that effective expense management during the integration process will positively impact future profitability and ensure the bank's competitiveness in the market.
See More
Third Coast (TCBX) Q1 2026 Earnings Transcript
See More
Third Coast Bancshares Q1 Earnings Beat Expectations
- Earnings Beat: Third Coast Bancshares reported a Q1 GAAP EPS of $0.88, exceeding expectations by $0.12, indicating stable profitability and increased market confidence.
- Revenue Miss: Despite a 25.5% year-over-year revenue growth to $57.6 million, the figure fell short of expectations by $0.4 million, reflecting challenges in the post-merger integration process that may impact future revenue growth potential.
- Significant Loan Growth: As of March 31, 2026, total loans reached $5.25 billion, up from $4.39 billion reported on December 31, 2025, demonstrating the company's success in market expansion and customer acquisition.
- Deteriorating Efficiency Ratio: The efficiency ratio for Q1 stood at 66.06%, up from 57.90% in Q4 2025 and 61.23% in Q1 2025, indicating pressure on cost control that could affect future profitability.
See More
Third Coast Bancshares to Announce Q1 Earnings on April 22
- Earnings Announcement Date: Third Coast Bancshares (TCBX) is set to release its Q1 2023 earnings on April 22 after market close, with a consensus EPS estimate of $0.92, reflecting a 17.9% year-over-year increase, indicating sustained profitability improvements.
- Revenue Growth Expectations: The anticipated revenue for Q1 is $58 million, representing a 26.4% year-over-year growth, showcasing the company's strong performance and business expansion capabilities, which further solidify its market position in Texas.
- Earnings Forecast Revisions: Over the past three months, EPS estimates have seen three upward revisions with no downward adjustments, indicating analysts' growing confidence in the company's future profitability and reflecting positive operational efficiency and market demand.
- Loan Growth Target: Third Coast Bancshares has set a quarterly loan growth target of $75 million to $100 million, which, as the Keystone merger integration progresses, will help enhance the company's market share and profitability.
See More
Third Coast Bancshares to Report Q1 2026 Financial Results
- Earnings Release Schedule: Third Coast Bancshares plans to announce its Q1 2026 financial results on April 22, 2026, after market close, reflecting the company's commitment to transparency and timely information dissemination.
- Conference Call Timing: Management has scheduled a conference call for April 23, 2026, at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss the financial results in depth, aiming to strengthen investor relations.
- Participation Methods: Investors can join the call by dialing 201-389-0869 or listen via a live webcast, providing multiple channels to accommodate diverse investor preferences.
- Replay Availability: For those unable to attend the live call, a replay will be accessible until April 30, 2026, ensuring all stakeholders can obtain critical information and further enhancing the company's transparency.
See More
Third Coast Bancshares Declares Quarterly Dividend
- Quarterly Dividend Announcement: Third Coast Bancshares (TCBX) declares a quarterly dividend of $16.875 per share, reflecting the company's strong cash flow and profitability, which is likely to attract more investor interest.
- High Yield: The forward yield of 185.08% associated with this dividend not only provides substantial returns for existing shareholders but may also draw in yield-seeking investors, potentially boosting the company's stock price.
- Shareholder Assurance: The dividend will be payable on April 15, with a record date of March 31 and an ex-dividend date also on March 31, ensuring shareholders receive their dividends promptly and enhancing investor confidence.
- Loan Growth Target: As Third Coast Bancshares integrates its Keystone merger, it has set a quarterly loan growth target of $75 million to $100 million, demonstrating its expansion potential and strategic planning in the Texas market.
See More
