Third Coast completes $1B Keystone merger; Q1 net income $16.4M, margin falls 43bp

Filed April 22, 2026 · Period ending April 22, 2026 · ~2 min read

Key Changes

• high

  Closed Keystone Bancshares acquisition Feb 1, adding ~$1B in assets, $812M in loans, $844M in deposits; merger costs of $3.3M pre-tax reduced Q1 net income to $16.4M from $17.9M in Q4 2025.

  Exhibit 99.1 view on EDGAR →
• high

  Net interest margin compressed 43bp sequentially to 3.67% as loan yields fell 51bp to 7.01%, driven by lower-yielding Keystone portfolio; deposit costs declined 20bp to 3.53%, partially offsetting pressure.

  Exhibit 99.1 view on EDGAR →
• medium

  Nonperforming loans rose to $35.6M (0.68% of loans) from $21.5M (0.49%) at year-end, driven by one $17.1M loan placed on nonaccrual; allowance for credit losses remains 0.98% of gross loans.

  Exhibit 99.1 view on EDGAR →