Third Coast Bancshares Reports Significant Growth with $6.74 Billion in Assets and 31.3% Increase in Net Income

Third Coast Bancshares, Inc. reported significant financial growth in its latest quarterly filing, with total assets reaching $6.74 billion as of June 30, 2026, up from $5.34 billion at the end of 2025. This increase was primarily driven by the acquisition of Keystone Bancshares, which contributed approximately $1.04 billion to the loan portfolio, bringing total loans to $5.44 billion. The company also saw a substantial rise in total deposits, which increased by $1.23 billion, or 26.6%, to $5.86 billion, reflecting a strong demand for its banking services.

In terms of profitability, Third Coast Bancshares reported a net income of $21.99 million for the second quarter of 2026, a 31.3% increase from $16.75 million in the same period last year. For the first half of 2026, net income totaled $38.36 million, compared to $30.34 million for the first half of 2025. The company's net interest income also rose significantly, increasing by 22.1% to $60.28 million for the second quarter, driven by higher interest income from loans, which amounted to $94.58 million, up from $79.71 million a year earlier.

The acquisition of Keystone Bancshares, completed on February 1, 2026, marked a strategic expansion for Third Coast, adding four branches and enhancing its market presence in Texas. The merger resulted in the recognition of $28 million in goodwill and $8.18 million in core deposit intangibles. The company incurred approximately $4.1 million in acquisition-related expenses, primarily reflected in legal and professional fees, as well as salaries and employee benefits.

Operationally, the company reported an increase in its employee headcount, averaging 477 employees in the first half of 2026, compared to 380 in the same period of 2025. The growth in personnel aligns with the company's expansion strategy following the merger. Additionally, the company’s allowance for credit losses increased to $53.59 million, or 0.99% of total loans, reflecting a proactive approach to managing credit risk in light of the expanded loan portfolio.

Looking ahead, Third Coast Bancshares expressed optimism about its growth trajectory, supported by its expanded footprint and enhanced service offerings. The company aims to leverage its increased scale to improve operational efficiencies and drive further profitability, while remaining vigilant about market conditions and potential risks associated with interest rate fluctuations and credit quality.