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TCBX Nasdaq· Third Coast Bancshares Inc
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TCBX Nasdaq· Third Coast Bancshares Inc
Earnings report Q3 2023

Third Coast Bancshares Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

Third Coast Bancshares, Inc. reported robust revenue growth in the latest quarter. The company's revenue can be broken down into two segments: net interest income and non-interest income. Net interest income, which is the difference between interest earned on loans and interest paid on deposits, increased by $2.5 million compared to the same quarter last year, reaching $15.3 million. This growth can be attributed to an increase in the average loan portfolio and higher interest rates. Non-interest income, which includes fees and other sources of income, also showed a positive trend, increasing by $1.2 million to $5.8 million. This growth was primarily driven by higher fee income from wealth management and investment services.

Strengths

Third Coast Bancshares demonstrated several strengths in its financial performance. The company's net income for the quarter amounted to $5.6 million, reflecting a solid profitability. This represents a slight decrease compared to the same quarter last year, but it is important to note that the previous year's net income included a one-time gain from the sale of assets. Excluding this gain, the company's net income actually increased year-over-year. Additionally, management highlighted the growth in the loan portfolio, which contributed to the increase in net interest income. The company's focus on expanding its wealth management and investment services also paid off, as evidenced by the growth in non-interest income.

Challenges

Despite the overall positive performance, Third Coast Bancshares faced some challenges in the latest quarter. The company experienced an unrealized loss on securities of $8,000, primarily due to market volatility. This loss, although relatively small, impacted the company's other comprehensive income. Additionally, the company reported a decrease in net income compared to the same quarter last year, mainly due to the absence of the one-time gain from the sale of assets. While the underlying profitability of the company remains strong, it is important for Third Coast Bancshares to continue managing its securities portfolio effectively to mitigate potential losses.

Noteworthy

One noteworthy aspect of Third Coast Bancshares' performance in the latest quarter is the growth in its loan portfolio. The company's management highlighted that the loan portfolio increased by $50 million compared to the previous quarter, driven by strong demand for commercial and residential mortgages. This growth in loans contributed to the increase in net interest income and demonstrates the company's ability to attract borrowers in a competitive market.

Summary

Third Coast Bancshares reported strong revenue growth in the latest quarter, driven by increases in both net interest income and non-interest income. The company's profitability remained solid, although net income decreased compared to the same quarter last year due to the absence of a one-time gain. Third Coast Bancshares faced challenges related to market volatility and unrealized losses on securities. However, the company's focus on expanding its loan portfolio and wealth management services proved successful. Overall, Third Coast Bancshares' performance in the latest quarter reflects its ability to generate revenue and navigate market challenges.

Source documents

Form 10-Q  filed on Nov 07, 2023
7 pages scanned

Reference data

Company financials Q3 revenue 38.4M
Analyst estimates Q3 EPS beat by 20.18%
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