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Get filing alertsThird Coast Bancshares reports record Q2 EPS of $1.08, sells factoring unit for $3.5M gain
Filed July 22, 2026 · Period ending July 22, 2026 · ~1 min read
Key Changes
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Net income rose to $22.0M with diluted EPS of $1.08, up from $0.88 in Q1 2026 and $0.96 in Q2 2025, described as record diluted EPS. Return on average assets improved to 1.34% annualized from 1.08% prior quarter.
Exhibit 99.1 view on EDGAR → -
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Net interest income increased 12.4% to $60.3M as net interest margin expanded 16 basis points to 3.83%. Cost of interest-bearing deposits declined 12 basis points to 3.41% while loan yields rose to 7.06%.
Exhibit 99.1 view on EDGAR → -
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Gross loans grew 3.5% to $5.44B, driven by $186.7M increase in commercial and industrial loans. Year-over-year loan growth was 33.3% from $4.08B in Q2 2025.
Exhibit 99.1 view on EDGAR → -
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Sold substantially all assets of factoring subsidiary Third Coast Commercial Capital on June 25, 2026, recognizing a $3.5M gain and entering into ongoing revenue-sharing arrangement with buyer.
Exhibit 99.1 view on EDGAR → -
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Nonperforming loans declined to $30.0M from $35.6M in Q1 2026, primarily due to $17.1M loan transferred to OREO, partially offset by three new nonaccrual relationships totaling $10.1M. Provision for credit losses was $2.1M.
Exhibit 99.1 view on EDGAR →
Summary
Third Coast Bancshares reported strong second quarter 2026 results, with net income of $22.0 million and diluted earnings per share of $1.08, representing the company's highest quarterly diluted EPS on record. The quarter benefited from robust net interest income growth of 12.4% to $60.3 million, driven by a 16-basis-point expansion in net interest margin to 3.83% as deposit costs declined while loan yields improved.
The company also completed the sale of its factoring subsidiary for a $3.5 million gain while maintaining an ongoing revenue-sharing arrangement. Loan growth remained strong at 3.5% for the quarter, reaching $5.44 billion, with commercial and industrial lending driving the expansion.
Asset quality showed mixed signals: nonperforming loans declined to $30.0 million from $35.6 million, but this improvement reflected a $17.1 million loan transferred to other real estate owned rather than resolution, and three new relationships totaling $10.1 million moved to nonaccrual status. The company recorded a $2.1 million provision for credit losses while maintaining its allowance ratio at 0.99% of gross loans. For retail holders, the record profitability and margin expansion demonstrate improving operating leverage, though the composition of the nonperforming loan decline and emergence of new problem credits warrant monitoring in coming quarters.
Section-by-Section Diff
Event · Item 7.01 — Regulation FD Disclosure
Third Coast Bancshares schedules Q2 2026 earnings call for July 23, 2026, and furnishes investor presentation.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
The Company intends to hold an investor call and webcast to discuss its financial results for the quarter ended June 30, 2026, on Thursday, July 23, 2026, at 10:00 a.m. Central Time.
Third Coast Bancshares announced it will hold an earnings call and webcast on July 23, 2026, at 10:00 a.m. Central Time to discuss second quarter 2026 financial results. The company furnished an investor presentation with additional information about the quarter's results.
Event · Exhibit 99.1
Third Coast Bancshares reported Q2 2026 record diluted EPS of $1.08, sold its factoring subsidiary for a $3.5M gain, and grew loans 3.5% to $5.44B.
Added in current filing · view on EDGAR →
Nonperforming loans at June 30, 2026 were $30.0 million, compared to $35.6 million at March 31, 2026 and $20.1 million at June 30, 2025. The decrease in nonperforming loans during the second quarter of 2026 was primarily due to the transfer of a $17.1 million loan to other real estate owned, offset by the placement on nonaccrual of three relationships totaling $10.1 million and an increase of $2.1 million in loans over 90 days past due and still accruing. ... The provision for credit loss recorded for the second quarter of 2026 was $2.1 million, and the allowance for credit losses of $53.6 million represented 0.99% of the $5.44 billion in gross loans outstanding as of June 30, 2026.
Nonperforming loans declined to $30.0 million from $35.6 million in Q1 2026, primarily due to a $17.1 million loan transferred to OREO, partially offset by three new nonaccrual relationships totaling $10.1 million. The company recorded a $2.1 million provision for credit losses, and the allowance ratio remained stable at 0.99% of gross loans. Net recoveries of $150,000 were recorded in the quarter.
Event · Exhibit 99.2
Third Coast Bancshares filed an investor presentation disclosing Q2 2026 financial results and the completed Keystone Bancshares merger.
Added in current filing · view on EDGAR → · paraphrased
As of 6/30/2026 Total Assets $6,736 Total Loans $5,436 Total Deposits $5,855 ... YTD 6/30/2026 Return on Average Assets 1.21% Return on Average Tangible Common Equity 13.86% Yield on Loans 7.03% Cost of Deposits 3.11% Net Interest Margin 3.75% Efficiency Ratio 60.89%
Third Coast reported total assets of $6.7 billion, total loans of $5.4 billion, and total deposits of $5.9 billion as of June 30, 2026. Year-to-date return on average assets was 1.21%, return on average tangible common equity was 13.86%, and net interest margin was 3.75%. The efficiency ratio was 60.89%.
Added in current filing · view on EDGAR → · paraphrased
the risk that the benefits from the transaction between Third Coast and Keystone Bancshares, Inc ("Keystone") may not be fully realized or may take longer to realize than expected ... Common shares outstanding at end of period ... March 31 2026 16,562,268 June 30 2026 16,639,127 ... Goodwill and core deposit intangibles, net ... March 31 2026 54,883 June 30 2026 54,160
The presentation references the completed merger with Keystone Bancshares. Common shares outstanding increased from 13.9 million at December 31, 2025 to 16.6 million at March 31, 2026, reflecting the transaction. Goodwill and core deposit intangibles increased from $18.7 million to $54.9 million in Q1 2026, indicating the merger closed during that quarter.
Added in current filing · view on EDGAR →
Laura Rau EVP, Chief Risk Officer Serves as EVP Chief Risk Officer since January 2026 when she joined the bank. Most recently held the position of Chief Compliance Officer at a large regional bank. Expertise in regulatory compliance, including BSA/AML sanctions and counter-terrorist financing, consumer compliance, and compliance management systems.
Laura Rau joined Third Coast as Executive Vice President and Chief Risk Officer in January 2026. She brings expertise in regulatory compliance, BSA/AML, sanctions, and compliance management systems from her prior role as Chief Compliance Officer at a large regional bank.
Added in current filing · view on EDGAR →
Clint Greenleaf 50 2026 Prior board member of Keystone Bancshares which merged with Third Coast. Entrepreneur and senior executive with accounting and management experience. ... Jeffrey A. Wilkinson 59 2026 2018 founder of Keystone Bancshares which merged with Third Coast. Experience includes senior executive roles in the financial services industry and founder of other community banks such as Pioneer Bank.
Two new directors joined the board in 2026: Clint Greenleaf and Jeffrey A. Wilkinson, both former Keystone Bancshares board members. Wilkinson founded Keystone in 2018 and has extensive community banking experience. Their addition reflects the integration of the Keystone merger.
Added in current filing · view on EDGAR → · paraphrased
YTD 6/30/2026 NPAs to Total Assets 0.85% NCOs to Avg. Loans (0.01%)
Non-performing assets to total assets increased to 0.85% as of June 30, 2026, up from 0.56% at December 31, 2025. Net charge-offs to average loans were negative 0.01% year-to-date, indicating net recoveries. The NPA increase may reflect the Keystone portfolio integration.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 23, 2026 · How we verify