Third Coast Bancshares, Inc. reported significant financial growth for the fiscal year ending December 31, 2025, with total assets reaching $5.34 billion, a rise of 8.1% from $4.94 billion in 2024. The company’s total loans increased by 10.8% to $4.39 billion, driven primarily by growth in commercial and industrial loans. Net income for the year was $66.3 million, reflecting a 39.1% increase compared to $47.7 million in the previous year. This growth was attributed to a rise in net interest income, which increased by 21.4% to $195.2 million, supported by higher interest income from loans and a decrease in interest expenses on deposits.
The company also experienced a notable increase in noninterest income, which rose by 28.5% to $13.7 million, primarily due to higher service charges and earnings from bank-owned life insurance. However, noninterest expenses also increased by 13.6% to $118.5 million, largely driven by higher salaries and legal fees associated with merger activities. The provision for credit losses increased to $7.6 million from $5.7 million, reflecting the company’s proactive approach to managing credit risk amid economic uncertainties.
Strategically, Third Coast completed its merger with Keystone Bancshares, Inc. on February 1, 2026, enhancing its market presence with a total of 22 branches across Texas. This merger is expected to provide additional growth opportunities and operational efficiencies. The company also converted its banking operations from a Texas state savings bank to a Texas banking association in March 2024, which has resulted in heightened regulatory oversight and compliance requirements.
Operationally, the bank reported a decrease in noninterest-bearing deposits, which fell by 17.8% to $495 million, while interest-bearing deposits increased by 11.4% to $4.13 billion. The bank's loan-to-deposit ratio stood at 95.0%, indicating a strong reliance on loans for generating income. As of December 31, 2025, the bank maintained a well-capitalized status, with capital ratios exceeding regulatory requirements, positioning it favorably for future growth and stability.
Looking ahead, Third Coast anticipates continued growth driven by its strategic initiatives and market expansion. However, the company acknowledges potential risks, including interest rate fluctuations, economic conditions, and regulatory changes that could impact its operations and financial performance. The management remains focused on maintaining strong asset quality and effective risk management practices to navigate these challenges.
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a Texas-based bank holding company providing commercial banking services to small and medium-sized businesses. Through its subsidiary, Third Coast Bank, it offers lending, deposit, and digital banking solutions across Texas markets and Detroit. The company emphasizes relationship-driven, personalized service, risk management, and regulatory compliance, operating with a diversified product portfolio and a focus on organic growth within its regional markets.
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