Third Coast Bancshares Reports $13.6 Million Net Income in Q1 2025, Up 31.1%

Third Coast Bancshares, Inc. reported a net income of $13.6 million for the first quarter of 2025, reflecting a 31.1% increase from $10.4 million in the same period of the previous year. This growth was driven by a 12.4% rise in net interest income, which reached $42.8 million, up from $38.1 million year-over-year. The increase in net interest income was attributed to higher interest income from loans and investment securities, despite a decrease in federal funds sold. The company’s total interest income rose to $80.8 million, a 2.4% increase from $78.9 million, while interest expense decreased by 6.9% to $38.0 million.

In terms of operational metrics, Third Coast Bancshares saw total loans increase to $3.99 billion, a 0.5% rise from $3.97 billion at the end of 2024. The growth was primarily in commercial and industrial loans, which increased by $107.8 million. However, real estate loans decreased by $72.9 million. The company’s total deposits decreased by 1.4% to $4.25 billion, with a notable drop in noninterest-bearing deposits, which fell by 25.5% to $448.5 million. The allowance for credit losses on loans was $40.5 million, or 1.01% of total loans, slightly up from $40.3 million, or 1.02%, at the end of the previous year.

Strategically, Third Coast Bancshares continues to focus on expanding its market presence, operating 19 branches across Texas, including key markets such as Greater Houston, Dallas-Fort Worth, and Austin-San Antonio. The company has also made efforts to enhance its product offerings, including the introduction of new loan products and services tailored to small and medium-sized businesses. The average employee count increased to 376, up from 363 in the previous year, reflecting the company's growth and expansion strategy.

Looking ahead, Third Coast Bancshares expressed optimism about its growth trajectory, citing a strong demand for loans and a commitment to maintaining a diversified loan portfolio. The company is also focused on managing interest rate risk and maintaining compliance with regulatory capital requirements, as it continues to be classified as "well capitalized" under regulatory standards. The management anticipates that ongoing economic conditions and strategic initiatives will support continued growth in both loans and deposits throughout 2025.