Third Coast Bancshares, Inc. Reports 2024 Fourth Quarter and Full Year Financial Results

Year Over Year Book Value grew 12.8% and Tangible Book Value(1) grew 13.6%

Third Coast Bancshares, Inc. (NASDAQ: TCBX)(the “Company,” “Third Coast,” “we,” “us,” or “our”), the bank holding company for Third Coast Bank, today reported its 2024 fourth quarter and full year financial results.

2024 Fourth Quarter Financial Highlights

— Net income totaled $13.7 million, or $0.92 and $0.79 per basic and diluted share, respectively, compared to $12.8 million, or $0.85 and $0.74 per basic and diluted share, respectively, for the third quarter of 2024.

— Net interest income totaled $43.4 million, representing an increase of 7.6% from $40.4 million in the third quarter of 2024.

— Return on average assets of 1.13% annualized for the quarter compared to 1.14% annualized for the third quarter of 2024 and 0.90% annualized for the fourth quarter of 2023.

— Efficiency Ratio improved to 58.80% for the fourth quarter of 2024 from 59.57% for the third quarter of 2024.

— Gross loans grew $76.6 million to $3.97 billion, 2.0% more than the $3.89 billion reported as of September 30, 2024.

— Book value per share and tangible book value per share(1) increased to $28.65 and $27.29, respectively, compared to $28.13 and $26.75, respectively, as of September 30, 2024.

2024 Full Year Financial and Operational Highlights

— Net income totaled $47.7 million, or $3.14 and $2.78 per basic and diluted share, respectively, for the year ended December 31, 2024, compared to $33.4 million, or $2.11 and $1.98 per basic and diluted share, respectively, for the year ended December 31, 2023.

— Total assets increased $546.4 million to $4.94 billion as of December 31, 2024, or 12.4% over the $4.40 billion reported as of December 31, 2023.

— Gross loans grew $327.6 million to $3.97 billion as of December 31, 2024, 9.0% more than the $3.64 billion reported as of December 31, 2023.

— Deposits increased $507.4 million to $4.31 billion as of December 31, 2024, or 13.3% over the $3.80 billion reported as of December 31, 2023.

— Opened three de novo branches in Austin, The Woodlands, and Houston, Texas.

(1) Non-GAAP financial measure. Please refer to the table titled “GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures” at the end of this press release for a reconciliation of these non-GAAP financial measures.

Bart Caraway, Founder, Chairman, President & Chief Executive Officer of Third Coast, said, “I take tremendous pride in our remarkable team. Third Coast has exceptionally talented and dedicated bankers who consistently achieve outstanding results. For example, our fourth quarter net interest income was $43.4 million, reflecting robust growth over the past 14 quarters. This impressive milestone is just one of the noteworthy metrics that reflect our core values and underscore our commitment to operational efficiency and profitability. We delivered many other positive metrics that highlight not only our strategic initiatives, but also the unwavering loyalty and tireless work of our entire team.

“Looking ahead, we are excited about the potential to further strengthen our position and continue producing outstanding results. Third Coast remains focused on sustaining this momentum by innovating and adapting to evolving market conditions. We continue to explore new opportunities that align with our growth objectives while staying true to our mission of delivering exceptional value to our stakeholders,” Mr. Caraway concluded.

Operating Results

Net Income and Earnings Per Share

Net income totaled $13.7 million for the fourth quarter of 2024, compared to $12.8 million for the third quarter of 2024 and $9.7 million for the fourth quarter of 2023. Net income available to common shareholders totaled $12.5 million for the fourth quarter of 2024, compared to $11.6 million for the third quarter of 2024 and $8.5 million for the fourth quarter of 2023. The quarter-over-quarter increase was primarily due to an increase in net interest income, resulting from loan growth and additional investments in federal funds sold and interest-bearing deposits with correspondent banks, offset by a slightly higher provision for credit loss and an increase in salary and employee benefit expenses during the fourth quarter of 2024. Dividends on our Series A Convertible Non-Cumulative Preferred Stock (“Series A Preferred Stock”) totaled $1.2 million for each of the quarters ended December 31, 2024 and September 30, 2024.

Basic and diluted earnings per share were $0.92 per share and $0.79 per share, respectively, in the fourth quarter of 2024, compared to $0.85 per share and $0.74 per share, respectively, in the third quarter of 2024 and $0.62 per share and $0.57 per share, respectively, in the fourth quarter of 2023.

Net Interest Margin and Net Interest Income

The net interest margin for the fourth quarter of 2024 was 3.71%, compared to 3.73% for the third quarter of 2024 and 3.61% for the fourth quarter of 2023. The yield on loans for the fourth quarter of 2024 was 7.68%, compared to 7.90% for the third quarter of 2024 and 7.75% for the fourth quarter of 2023. The cost of interest-bearing deposits for the fourth quarter of 2024 was 4.33%, compared to 4.75% for the third quarter of 2024 and 4.67% for the fourth quarter of 2023.

Net interest income totaled $43.4 million for the fourth quarter of 2024, an increase of 7.6% from $40.4 million for the third quarter of 2024 and an increase of 16.4% from $37.3 million for the fourth quarter of 2023. Interest income totaled $85.5 million for the fourth quarter of 2024, an increase of 3.4% from $82.7 million for the third quarter of 2024 and an increase of 11.0% from $77.1 million for the fourth quarter of 2023. The quarter-over-quarter increase in interest income was primarily due to the increase in interest income from federal funds sold and deposits in interest-bearing correspondent banks which increased $1.9 million, or 68.4%, compared to the third quarter of 2024. Interest expense in the fourth quarter of 2024 remained consistent with the third quarter of 2024 at $42.1 million and $42.3 million, respectively, and increased from $39.7 million for the fourth quarter of 2023.

Noninterest Income and Noninterest Expense

Noninterest income totaled $2.9 million for the fourth quarter of 2024, compared to $2.5 million for the third quarter of 2024 and $2.2 million for the fourth quarter of 2023. The sequential increase in noninterest income was primarily due to gains recorded on the sale of investment securities of $196,000 in the fourth quarter of 2024, compared to losses recorded on the sale of investment securities of $480,000 in the previous quarter, offset by a decrease in syndication fees during the fourth quarter of 2024.

Noninterest expense increased to $27.2 million for the fourth quarter of 2024, compared to $25.6 million for the third quarter of 2024 and $26.4 million for the fourth quarter of 2023. The quarter-over-quarter increase in noninterest expense was primarily due to increased salary expense resulting from new hires, increased bonus expense and a reduction in salary expense deferral related to loan fundings during the fourth quarter of 2024.

The efficiency ratio improved to 58.80% for the fourth quarter of 2024, compared to 59.57% for the third quarter of 2024 and 66.89% for the fourth quarter of 2023.

Balance Sheet Highlights

Loan Portfolio and Composition

For the quarter ended December 31, 2024, gross loans increased to $3.97 billion, an increase of $76.6 million, or 2.0%, from $3.89 billion as of September 30, 2024, and an increase of $327.6 million, or 9.0%, from $3.64 billion as of December 31, 2023. Real estate and municipal loans accounted for the majority of the loan growth for the fourth quarter of 2024, with real estate loans increasing $56.9 million and municipal loans increasing $21.7 million from the third quarter of 2024.

Asset Quality

Nonperforming loans at December 31, 2024 were $27.9 million, compared to $24.0 million at September 30, 2024 and $17.3 million at December 31, 2023. As of December 31, 2024, the nonperforming loans to total loans ratio was 0.70%, compared to 0.62% as of September 30, 2024 and 0.48% as of December 31, 2023. The increase from September 30, 2024 was due primarily to $6.7 million in loans placed on nonaccrual during the quarter, partially offset by $1.7 million in paydowns, $1.1 million in loans returned to accrual status, and a $690,000 loan charged-off. Of the loans placed on nonaccrual during the quarter, one commercial loan relationship represented $5.4 million of the downgrades and has a loan-to-value ratio of 35%. We do not anticipate losses on these recent downgrades to nonaccrual.

The provision for credit loss recorded for the fourth quarter of 2024 was $1.2 million, and the allowance for credit losses of $40.3 million represented 1.02% of the $3.97 billion in gross loans outstanding as of December 31, 2024.

The Company recorded net charge-offs of $879,000 and $1.5 million for the fourth quarter of 2024 and 2023, respectively. On a full year basis, net charge-offs were $3.4 million and $1.2 million in 2024 and 2023, respectively.

Deposits and Composition

Deposits totaled $4.31 billion as of December 31, 2024, an increase of 7.9% from $3.99 billion as of September 30, 2024, and an increase of 13.3% from $3.80 billion as of December 31, 2023. Noninterest-bearing demand deposits increased from $489.8 million as of September 30, 2024, to $602.1 million as of December 31, 2024 and represented 14.0% of total deposits as of December 31, 2024, compared to 12.3% of total deposits as of September 30, 2024. As of December 31, 2024, interest-bearing demand deposits increased $296.7 million, or 10.6%, time deposits decreased $89.7 million, or 13.4%, and savings accounts decreased $3.2 million, or 10.3%, respectively, from September 30, 2024.

The average cost of deposits was 3.83% for the fourth quarter of 2024, representing a 35-basis point decrease from the third quarter of 2024 and a 24-basis point decrease from the fourth quarter of 2023. The decreases were due to noninterest-bearing demand deposit growth and the reduction in rates paid on interest-bearing demand deposits.

Earnings Conference Call

Third Coast has scheduled a conference call to discuss its 2024 fourth quarter and fiscal year results, which will be broadcast live over the Internet, on Thursday, January 23, 2025, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate in the call, dial 201-389-0869 and ask for the Third Coast Bancshares, Inc. call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.thirdcoast.bank/events-and-presentations/events/. For those who cannot listen to the live call, a replay will be available through January 28, 2025, and may be accessed by dialing 201-612-7415 and using passcode 13750591#. Also, an archive of the webcast will be available shortly after the call at https://ir.thirdcoast.bank/events-and-presentations/events/for 90 days.

About Third Coast Bancshares, Inc.

Third Coast Bancshares, Inc. is a commercially focused, Texas-based bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets through its wholly owned subsidiary, Third Coast Bank. Founded in 2008 in Humble, Texas, Third Coast Bank conducts banking operations through 19 branches encompassing the four largest metropolitan areas in Texas. Please visit https://www.thirdcoast.bankfor more information.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “looking ahead,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Preferred Stock; credit risk associated with our business; and changes in key management personnel. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the “SEC”), and our other filings with the SEC.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures, including Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets and Return on Average Tangible Common Equity, which are supplemental measures that are not required by, or are not presented in accordance with GAAP. Please refer to the table titled “GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures” at the end of this press release for a reconciliation of these non-GAAP financial measures.

Third CoastBancshares, Inc. and SubsidiaryFinancial Highlights(unaudited) 2024 2023(Dollars in thousands) December 31 September 30 June 30 March 31 December 31ASSETSCash and cash equivalents:Cash and due from banks $ 371,157 $ 258,191 $ 241,809 $ 367,831 $ 296,926Federal funds sold 50,045 12,265 12,088 130,429 114,919Total cash and cash equivalents 421,202 270,456 253,897 498,260 411,845Interest bearing time deposits in other banks 356 353 350 – -Investment securities available-for-sale 384,025 292,104 286,167 246,291 178,087Loans held for investment 3,966,425 3,889,831 3,758,159 3,746,178 3,638,788Less: allowance for credit losses (40,304) (39,683) (38,211) (38,140) (37,022)Loans, net 3,926,121 3,850,148 3,719,948 3,708,038 3,601,766Accrued interest receivable 25,820 26,111 27,518 25,769 23,120Premises and equipment, net 26,230 26,696 27,626 26,844 28,554Bank-owned life insurance 68,341 67,679 67,030 66,443 65,861Non-marketable securities, at cost 15,980 24,328 16,147 16,095 16,041Deferred tax asset, net 11,445 8,654 8,972 8,712 9,227Derivative assets 6,479 5,786 7,799 11,015 8,828Right-of-use assets – operating leases 19,863 20,397 20,944 20,729 21,439Goodwill and other intangible assets 18,841 18,882 18,922 18,963 19,003Other assets 17,743 16,176 18,799 13,244 12,303Total assets $ 4,942,446 $ 4,627,770 $ 4,474,119 $ 4,660,403 $ 4,396,074LIABILITIESDeposits:Noninterest bearing $ 602,082 $ 489,822 $ 464,498 $ 424,019 $ 459,553Interest bearing 3,708,416 3,504,616 3,391,093 3,626,653 3,343,595Total deposits 4,310,498 3,994,438 3,855,591 4,050,672 3,803,148Accrued interest payable 6,281 7,283 5,668 3,927 4,794Derivative liabilities 8,660 6,874 7,626 8,253 10,687Lease liability – operating leases 20,900 21,412 21,919 21,647 22,280Other liabilities 23,754 34,632 30,786 27,806 23,763Line of credit – Senior Debt 30,875 31,875 36,875 43,875 38,875Note payable – Subordinated Debentures, net 80,759 80,708 80,656 80,605 80,553Total liabilities 4,481,727 4,177,222 4,039,121 4,236,785 3,984,100SHAREHOLDERS' EQUITYSeries A Convertible Non-Cumulative Preferred Stock 69 69 69 69 69Series B Convertible Perpetual Preferred Stock – – – – -Common stock 13,848 13,746 13,744 13,731 13,683Common stock – non-voting – – – – -Additional paid-in capital 321,696 320,871 320,496 320,077 319,613Retained earnings 121,697 109,160 97,583 87,971 78,775Accumulated other comprehensive income 4,508 7,801 4,205 2,869 933Treasury stock, at cost (1,099) (1,099) (1,099) (1,099) (1,099)Total shareholders' equity 460,719 450,548 434,998 423,618 411,974Total liabilities and shareholders' equity $ 4,942,446 $ 4,627,770 $ 4,474,119 $ 4,660,403 $ 4,396,074Third CoastBancshares, Inc. and SubsidiaryFinancial Highlights(unaudited) Three Months Ended Years Ended 2024 2023 2024 2023(Dollars in thousands, except per share data) December September June 30 March December December December 31 30 31 31 31 31INTEREST INCOME:Loans, including fees $ 76,017 $ 75,468 $ 73,103 $ 70,671 $ 70,325 $ 295,259 $ 248,911Investment securities available-for-sale 4,939 4,532 4,491 3,093 2,746 17,055 8,313Federal funds sold and other 4,580 2,719 3,631 5,112 3,996 16,042 9,320Total interest income 85,536 82,719 81,225 78,876 77,067 328,356 266,544INTEREST EXPENSE:Deposit accounts 40,233 40,407 40,410 38,698 37,671 159,748 115,044FHLB advances and other borrowings 1,865 1,929 1,957 2,099 2,065 7,850 11,975Total interest expense 42,098 42,336 42,367 40,797 39,736 167,598 127,019Net interest income 43,438 40,383 38,858 38,079 37,331 160,758 139,525Provision for credit losses 1,156 1,085 1,900 1,560 1,100 5,701 6,320Net interest income after credit loss expense 42,282 39,298 36,958 36,519 36,231 155,057 133,205NONINTEREST INCOME:Service charges and fees 1,772 2,143 1,515 1,505 850 6,935 3,233Earnings on bank-owned life insurance 662 649 587 582 559 2,480 2,101Gain (loss) on sale of investment securities available-for-sale 196 (480) 123 157 21 (4) 482Gain on sale of SBA loans – – – 30 326 30 440Other 243 205 663 69 401 1,180 1,949Total noninterest income 2,873 2,517 2,888 2,343 2,157 10,621 8,205NONINTEREST EXPENSE:Salaries and employee benefits 17,018 15,679 15,917 16,502 16,119 65,116 62,217Occupancy and equipment expense 3,292 3,229 3,146 3,045 2,875 12,712 11,285Legal and professional 1,587 1,037 1,621 1,385 2,305 5,630 7,783Data processing and network expense 1,182 1,608 1,046 1,418 987 5,254 4,735Regulatory assessments 1,196 1,249 1,005 980 942 4,430 2,598Advertising and marketing 526 420 406 355 614 1,707 2,627Software purchases and maintenance 766 854 828 817 839 3,265 2,375Loan operations 189 227 262 226 134 904 673Telephone and communications 144 166 141 134 125 585 510Other 1,330 1,085 1,257 1,052 1,474 4,724 4,995Total noninterest expense 27,230 25,554 25,629 25,914 26,414 104,327 99,798NET INCOME BEFORE INCOME TAX 17,925 16,261 14,217 12,948 11,974 61,351 41,612EXPENSEIncome tax expense 4,192 3,486 3,421 2,581 2,285 13,680 8,211NET INCOME 13,733 12,775 10,796 10,367 9,689 47,671 33,401Preferred stock dividends declared 1,196 1,198 1,184 1,171 1,197 4,749 4,736NET INCOME AVAILABLE TO COMMON $ 12,537 $ 11,577 $ 9,612 $ 9,196 $ 8,492 $ 42,922 $ 28,665SHAREHOLDERSEARNINGS PER COMMON SHARE:Basic earnings per share $ 0.92 $ 0.85 $ 0.70 $ 0.68 $ 0.62 $ 3.14 $ 2.11Diluted earnings per share $ 0.79 $ 0.74 $ 0.63 $ 0.61 $ 0.57 $ 2.78 $ 1.98Third CoastBancshares, Inc. and SubsidiaryFinancial Highlights(unaudited) Three Months Ended Years Ended 2024 2023 2024 2023(Dollars in thousands, except share and per share data) December September June 30 March 31 December December December 31 30 31 31 31Earnings per share, basic $ 0.92 $ 0.85 $ 0.70 $ 0.68 $ 0.62 $ 3.14 $ 2.11Earnings per share, diluted $ 0.79 $ 0.74 $ 0.63 $ 0.61 $ 0.57 $ 2.78 $ 1.98Dividends on common stock $ – $ – $ – $ – $ – $ – $ -Dividends on Series A Convertible $ 17.25 $ 17.25 $ 17.06 $ 16.88 $ 17.25 $ 68.44 $ 68.25Non-Cumulative Preferred StockReturn on average assets (A) 1.13 % 1.14 % 0.97 % 0.95 % 0.90 % 1.05 % 0.86 %Return on average common equity (A) 12.66 % 12.12 % 10.53 % 10.44 % 9.86 % 11.48 % 8.66 %Return on average tangible common 13.29 % 12.76 % 11.10 % 11.03 % 10.44 % 12.09 % 9.19 %equity (A) (B)Net interest margin (A) (C) 3.71 % 3.73 % 3.62 % 3.60 % 3.61 % 3.67 % 3.73 %Efficiency ratio (D) 58.80 % 59.57 % 61.39 % 64.11 % 66.89 % 60.88 % 67.55 %Capital RatiosThird Coast Bancshares, Inc. (consolidated):Total common equity to total assets 7.98 % 8.31 % 8.24 % 7.67 % 7.86 % 7.98 % 7.86 %Tangible common equity to tangible 7.63 % 7.93 % 7.85 % 7.29 % 7.46 % 7.63 % 7.46 %assets (B)Common equity tier 1 (to risk weighted 8.41 % 8.38 % 8.29 % 7.97 % 8.06 % 8.41 % 8.06 %assets)Tier 1 capital (to risk weighted assets) 9.90 % 9.93 % 9.88 % 9.54 % 9.70 % 9.90 % 9.70 %Total capital (to risk weighted assets) 12.68 % 12.80 % 12.78 % 12.41 % 12.66 % 12.68 % 12.66 %Tier 1 capital (to average assets) 9.12 % 9.53 % 9.24 % 9.15 % 9.23 % 9.12 % 9.23 %Third Coast Bank:Common equity tier 1 (to risk weighted 12.35 % 12.45 % 12.52 % 12.32 % 12.52 % 12.35 % 12.52 %assets)Tier 1 capital (to risk weighted assets) 12.35 % 12.45 % 12.52 % 12.32 % 12.52 % 12.35 % 12.52 %Total capital (to risk weighted assets) 13.29 % 13.42 % 13.49 % 13.28 % 13.49 % 13.29 % 13.49 %Tier 1 capital (to average assets) 11.37 % 11.95 % 11.71 % 11.81 % 11.91 % 11.37 % 11.91 %Other DataWeighted average shares:Basic 13,698,010 13,665,400 13,657,223 13,606,256 13,603,149 13,656,859 13,583,553Diluted 17,394,884 17,184,991 17,018,680 16,936,003 16,890,381 17,133,845 16,877,891Period end shares outstanding 13,769,780 13,667,591 13,665,505 13,652,888 13,604,665 13,769,780 13,604,665Book value per share $ 28.65 $ 28.13 $ 26.99 $ 26.18 $ 25.41 $ 28.65 $ 25.41Tangible book value per share (B) $ 27.29 $ 26.75 $ 25.60 $ 24.79 $ 24.02 $ 27.29 $ 24.02___________(A) Interim periods annualized.(B) Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures at the end of this news release.(C) Net interest margin represents net interest income divided by average interest-earning assets.(D) Represents totalnoninterest expense divided by the sum of net interest income plus noninterest income. Taxes and provision for credit losses are not part of this calculation.Third CoastBancshares, Inc. and SubsidiaryFinancial Highlights(unaudited) Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023(Dollars in thousands) Average Interest Average Average Interest Average Average Interest Average Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Balance Paid(3) Rate(4) Balance Paid(3) Rate(4) Balance Paid(3) Rate(4)AssetsInterest-earnings assets:Loans, gross $ 3,937,405 $ 76,017 7.68% $ 3,801,954 $ 75,468 7.90% $ 3,600,980 $ 70,325 7.75%Investment securities 342,474 4,939 5.74% 300,969 4,532 5.99% 203,376 2,746 5.36%Federal funds sold and other 379,836 4,580 4.80% 209,841 2,719 5.15% 299,165 3,996 5.30%interest-earning assetsTotal interest-earning assets 4,659,715 85,536 7.30% 4,312,764 82,719 7.63% 4,103,521 77,067 7.45%Less allowance for loan losses (39,855) (38,425) (38,274)Total interest-earning assets, net of 4,619,860 4,274,339 4,065,247allowanceNoninterest-earning assets 195,143 195,681 194,659Total assets $ 4,815,003 $ 4,470,020 $ 4,259,906Liabilities and Shareholders' EquityInterest-bearing liabilities:Interest-bearing deposits $ 3,692,533 $ 40,233 4.33% $ 3,383,897 $ 40,407 4.75% $ 3,202,462 $ 37,671 4.67%Note payable and line of credit 109,294 1,708 6.22% 113,536 1,853 6.49% 118,816 2,065 6.90%FHLB advances 11,900 157 5.25% 5,757 76 5.25% – – -Total interest-bearing liabilities 3,813,727 42,098 4.39% 3,503,190 42,336 4.81% 3,321,278 39,736 4.75%Noninterest-bearing deposits 484,738 457,451 472,738Other liabilities 56,369 63,255 57,918Total liabilities 4,354,834 4,023,896 3,851,934Shareholders' equity 460,169 446,124 407,972Total liabilities and shareholders' $ 4,815,003 $ 4,470,020 $ 4,259,906equityNet interest income $ 43,438 $ 40,383 $ 37,331Net interest spread (1) 2.91% 2.82% 2.70%Net interest margin (2) 3.71% 3.73% 3.61%___________(1) Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities.(2) Net interest margin represents net interest income divided by average interest-earning assets.(3) Interest earned/paid includes accretion of deferred loan fees, premiums and discounts.(4) Annualized.Third CoastBancshares, Inc. and SubsidiaryFinancial Highlights(unaudited) Years Ended December 31, 2024 December 31, 2023(Dollars in thousands) Average Interest Average Average Interest Average Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Balance Paid(3) Rate Balance Paid(3) RateAssetsInterest-earnings assets:Loans, gross $ 3,786,776 $ 295,259 7.80% $ 3,366,180 $ 248,911 7.39%Investment securities 286,039 17,055 5.96% 197,286 8,313 4.21%Federal funds sold and other interest-earning 312,590 16,042 5.13% 181,782 9,320 5.13%assetsTotal interest-earning assets 4,385,405 328,356 7.49% 3,745,248 266,544 7.12%Less allowance for loan losses (38,500) (36,750)Total interest-earning assets, net of allowance 4,346,905 3,708,498Noninterest-earning assets 194,775 188,514Total assets $ 4,541,680 $ 3,897,012Liabilities and Shareholders' EquityInterest-bearing liabilities:Interest-bearing deposits $ 3,459,151 $ 159,748 4.62% $ 2,785,605 $ 115,044 4.13%Note payable and line of credit 116,222 7,617 6.55% 113,552 7,657 6.74%FHLB advances and other 4,438 233 5.25% 79,546 4,318 5.43%Total interest-bearing liabilities 3,579,811 167,598 4.68% 2,978,703 127,019 4.26%Noninterest-bearing deposits 460,537 473,558Other liabilities 61,148 47,527Total liabilities 4,101,496 3,499,788Shareholders' equity 440,184 397,224Total liabilities and shareholders' equity $ 4,541,680 $ 3,897,012Net interest income $ 160,758 $ 139,525Net interest spread (1) 2.81% 2.86%Net interest margin (2) 3.67% 3.73%___________(1) Net interest spread is the average yield on interest earning assets minus the average rate on interest-bearing liabilities.(2) Net interest margin represents net interest income divided by average interest-earning assets.(3) Interest earned/paid includes accretion of deferred loan fees, premiums and discounts.Third CoastBancshares, Inc. and SubsidiaryFinancial Highlights(unaudited) Three Months Ended 2024 2023(Dollars in thousands) December September June 30 March 31 December 31 31 30Period-end Loan Portfolio:Real estate loans:Commercial real estate:Non-farm non-residential owner occupied $ 448,134 $ 470,222 $ 499,941 $ 510,266 $ 520,822Non-farm non-residential non-owner occupied 652,119 611,617 612,268 598,311 586,626Residential 336,736 339,558 349,461 345,890 342,589Construction, development & other 871,373 825,302 756,646 725,176 693,553Farmland 30,915 35,650 31,049 29,706 30,396Commercial & industrial 1,497,408 1,499,302 1,361,401 1,350,289 1,263,077Consumer 1,859 2,002 2,216 2,382 2,555Municipal and other 127,881 106,178 145,177 184,158 199,170Total loans $ 3,966,425 $ 3,889,831 $ 3,758,159 $ 3,746,178 $ 3,638,788Asset Quality:Nonaccrual loans $ 26,773 $ 23,522 $ 23,910 $ 18,130 $ 16,649Loans > 90 days and still accruing 1,173 522 507 3,614 670Total nonperforming loans 27,946 24,044 24,417 21,744 17,319Other real estate owned 862 283 – – -Total nonperforming assets $ 28,808 $ 24,327 $ 24,417 $ 21,744 $ 17,319QTD Net charge-offs (recoveries) $ 879 $ (57) $ 1,829 $ 742 $ 1,505Nonaccrual loans:Real estate loans:Commercial real estate:Non-farm non-residential owner occupied $ 10,433 $ 9,696 $ 10,051 $ 2,369 $ 1,211Non-farm non-residential non-owner occupied – 68 74 1,225 1,235Residential 2,226 2,664 2,767 2,837 2,938Construction, development & other 400 1 301 406 247Commercial & industrial 13,714 11,093 10,717 11,293 11,018Total nonaccrual loans $ 26,773 $ 23,522 $ 23,910 $ 18,130 $ 16,649Asset Quality Ratios:Nonperforming assets to total assets 0.58 % 0.53 % 0.55 % 0.47 % 0.39 %Nonperforming loans to total loans 0.70 % 0.62 % 0.65 % 0.58 % 0.48 %Allowance for credit losses to total loans 1.02 % 1.02 % 1.02 % 1.02 % 1.02 %QTD Net charge-offs (recoveries) to average loans 0.09 % (0.01) % 0.20 % 0.08 % 0.17 %(annualized)

Third CoastBancshares, Inc. and Subsidiary GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures (unaudited)

Our accounting and reporting policies conform to GAAP (generally accepted accounting principles) and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional financial measures discussed in this earnings release as being non-GAAP financial measures. Specifically, we review Tangible Common Equity, Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Return on Average Tangible Common Equity for internal planning and forecasting purposes. We classify a financial measure as a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are not included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios, or statistical measures calculated using exclusively financial measures calculated in accordance with GAAP.

The non-GAAP financial measures that we discuss in this earnings release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this earnings release may differ from that of other companies reporting measures with similar names. It is important to understand how other banking organizations calculate their financial measures with names similar to the non-GAAP financial measures we have discussed in this earnings release when comparing such non-GAAP financial measures.

Management believes the following non-GAAP financial measures assist investors in understanding the financial condition of the company:

— Tangible Common Equity.The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity.

— Tangible Book Value Per Share.The most directly comparable GAAP financial measure for tangible book value per share is book value per share. We believe that the tangible book value per share measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value.

— Tangible Common Equity to Tangible Assets. The most directly comparable GAAP financial measure for tangible common equity is total shareholders' equity, the most directly comparable GAAP financial measure for tangible assets is total assets, and the most directly comparable GAAP financial measure for tangible common equity to tangible assets is total shareholders' equity to total assets. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of tangible common equity to tangible assets, each exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing both total shareholders' equity and assets while not increasing our tangible common equity or tangible assets.

— Return on Average Tangible Common Equity. The most directly comparable GAAP financial measure for average tangible common equity is average shareholders' equity, and the most directly comparable GAAP financial measure for return on average tangible common equity is return on average common equity. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period of return on average tangible common equity, exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing average shareholders' equity while not increasing our tangible common equity.

The calculations of these non-GAAP financial measures are as follows:

Three Months Ended Years Ended 2024 2023 2024 2023(Dollars in thousands, except share and per share data) December September June 30 March 31 December December December 31 30 31 31 31Tangible Common Equity:Total shareholders' equity $ 460,719 $ 450,548 $ 434,998 $ 423,618 $ 411,974 $ 460,719 $ 411,974Less: Preferred stock including additional 66,160 66,117 66,225 66,225 66,225 66,160 66,225paid in capitalTotal common equity 394,559 384,431 368,773 357,393 345,749 394,559 345,749Less: Goodwill and core deposit intangibles, 18,841 18,882 18,922 18,963 19,003 18,841 19,003netTangible common equity $ 375,718 $ 365,549 $ 349,851 $ 338,430 $ 326,746 $ 375,718 $ 326,746Common shares outstanding at end of period 13,769,780 13,667,591 13,665,505 13,652,888 13,604,665 13,769,780 13,604,665Book Value Per Share $ 28.65 $ 28.13 $ 26.99 $ 26.18 $ 25.41 $ 28.65 $ 25.41Tangible Book Value Per Share $ 27.29 $ 26.75 $ 25.60 $ 24.79 $ 24.02 $ 27.29 $ 24.02Tangible Assets:Total assets $ 4,942,446 $ 4,627,770 $ 4,474,119 $ 4,660,403 $ 4,396,074 $ 4,942,446 $ 4,396,074Adjustments: Goodwill and core deposit 18,841 18,882 18,922 18,963 19,003 18,841 19,003intangibles, netTangible assets $ 4,923,605 $ 4,608,888 $ 4,455,197 $ 4,641,440 $ 4,377,071 $ 4,923,605 $ 4,377,071Total Common Equity to Total Assets 7.98 % 8.31 % 8.24 % 7.67 % 7.86 % 7.98 % 7.86 %Tangible Common Equity to Tangible Assets 7.63 % 7.93 % 7.85 % 7.29 % 7.46 % 7.63 % 7.46 %Average Tangible Common Equity:Average shareholders' equity $ 460,169 $ 446,124 $ 433,510 $ 420,646 $ 407,972 $ 440,184 $ 397,224Less: Average preferred stock including 66,121 66,223 66,225 66,225 66,225 66,198 66,225additional paid in capitalAverage common equity 394,048 379,901 367,285 354,421 341,747 373,986 330,999Less: Average goodwill and core deposit 18,865 18,906 18,946 18,987 19,027 18,926 19,088intangibles, netAverage tangible common equity $ 375,183 $ 360,995 $ 348,339 $ 335,434 $ 322,720 $ 355,060 $ 311,911Net Income $ 13,733 $ 12,775 $ 10,796 $ 10,367 $ 9,689 $ 47,671 $ 33,401Less: Dividends declared on preferred stock 1,196 1,198 1,184 1,171 1,197 4,749 4,736Net Income Available to Common Shareholders $ 12,537 $ 11,577 $ 9,612 $ 9,196 $ 8,492 $ 42,922 $ 28,665Return on Average Common Equity(A) 12.66 % 12.12 % 10.53 % 10.44 % 9.86 % 11.48 % 8.66 %Return on Average Tangible Common Equity(A) 13.29 % 12.76 % 11.10 % 11.03 % 10.44 % 12.09 % 9.19 %___________(A) Interim periods annualized.

Contact:Ken Dennard / Natalie HairstonDennard Lascar Investor Relations(713) 529-6600TCBX@dennardlascar.com

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