Third Coast Bancshares, Inc. Reports 2025 Second Quarter Financial Results

Record EPS of $1.12 and Diluted EPS of $0.96 in Latest Quarterly Results

Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the “Company,” “Third Coast,” “we,” “us,” or “our”), the bank holding company for Third Coast Bank (the “Bank”), today reported its 2025 second quarter financial results.

Year to Date Financial Highlights

— Return on average assets of 1.38% annualized for the second quarter of 2025 compared to 1.17% annualized for the first quarter of 2025 and 0.97% annualized for the second quarter of 2024.

— Net interest margin of 4.22% for the second quarter of 2025 compared to 3.80% for the first quarter of 2025 and 3.62% for the second quarter of 2024.

— Net income for the second quarter of 2025 totaled $16.7 million, or $1.12 and $0.96 per basic and diluted share, respectively, compared to $13.6 million, or $0.90 and $0.78 per basic and diluted share, respectively, for the first quarter of 2025 and $10.8 million, or $0.70 and $0.63 per basic and diluted share, respectively, for the second quarter of 2024.

— Efficiency ratio continues to improve from 61.23% for the first quarter of 2025 to 55.45% for the second quarter of 2025.

— Gross loans grew to $4.08 billion as of June 30, 2025, from $3.99 billion reported as of March 31, 2025.

— Book value per share and tangible book value per share(1) increased to $31.04 and $29.69, respectively, as of June 30, 2025, compared to $29.92 and $28.56, respectively, as of March 31, 2025 and $26.99 and $25.60, respectively, as of June 30, 2024.

— Completed two securitizations of $100 million and $150 million of commercial real estate loans during the second quarter of 2025.

(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 news release for a reconciliation of these non-GAAP financial measures.

Bart Caraway, Founder, Chairman, President & CEO of Third Coast, said, “We've achieved another record-breaking quarter, setting a new high for earnings per share in the second quarter. This marks a 15.4% increase in Net Interest Income from the sequential first quarter and a 27.1% increase from the second quarter of 2024.

“Since Third Coast's IPO in November 2021, we have consistently delivered exceptional performance and sustained value creation. Total assets have grown by 98% from $2.49 billion in December 2021 to $4.94 billion today. In parallel, we've improved our efficiency ratio by an impressive 25%, moving from 74.43% in 2021 to 55.45% this quarter-a clear indicator of operational discipline. Additionally, our return on assets has increased 150% in this short period of time, climbing from 0.55% in 2021 to 1.38% in the current quarter – another milestone that underscores the steep and steady trajectory of our profitability.

“With a team that continues to execute at a high level and a track record of outperforming our peers, we believe Third Coast is well positioned to remain in the top tier of bank performers. Backed by a strong Texas-based franchise and a scalable platform-demonstrated by our successful securitizations this quarter-Third Coast intends to thrive in a consolidating industry while continuing to attract long-term investors.”

Operating Results

Net Income and Earnings Per Share

Net income totaled $16.7 million for the second quarter of 2025, compared to $13.6 million for the first quarter of 2025 and $10.8 million for the second quarter of 2024. Net income available to common shareholders totaled $15.6 million for the second quarter of 2025, compared to $12.4 million for the first quarter of 2025 and $9.6 million for the second quarter of 2024. The quarter-over-quarter increase was primarily due to an increase in net interest income, resulting from an increase in loans, a portion of which were securitized, and the purchase of associated securities resulted in an increase in investment yields during the second quarter of 2025. Dividends on our Series A Convertible Non-Cumulative Preferred Stock (“Series A Preferred Stock”) totaled $1.2 million for each of the quarters ended June 30, 2025 and March 31, 2025.

Basic and diluted earnings per share were $1.12 per share and $0.96 per share, respectively, in the second quarter of 2025, compared to $0.90 per share and $0.78 per share, respectively, in the first quarter of 2025 and $0.70 per share and $0.63 per share, respectively, in the second quarter of 2024.

Net Interest Margin and Net Interest Income

The net interest margin for the second quarter of 2025 was 4.22%, compared to 3.80% for the first quarter of 2025 and 3.62% for the second quarter of 2024. The yield on loans for the second quarter of 2025 was 7.95%, compared to 7.45% for the first quarter of 2025 and 6.07% for the second quarter of 2024. The cost of interest-bearing deposits for the second quarter of 2025 was 4.00%, compared to 4.02% for the first quarter of 2025 and 4.76% for the second quarter of 2024.

Net interest income totaled $49.4 million for the second quarter of 2025, an increase of 15.4% from $42.8 million for the first quarter of 2025 and an increase of 27.1% from $38.9 million for the second quarter of 2024. Interest income totaled $88.7 million for the second quarter of 2025, an increase of 9.8% from $80.8 million for the first quarter of 2025 and an increase of 9.2% from $81.2 million for the second quarter of 2024. The quarter-over-quarter increase in interest income resulted from an increase in loans, a portion of which were securitized, and the purchase of associated securities resulted in an increase in investment yields during the second quarter of 2025. Interest expense was $39.3 million for the second quarter of 2025, an increase of $1.3 million, or 3.5%, from $38.0 million for the first quarter of 2025 and a decrease of $3.1 million, or 7.3%, from $42.4 million for the second quarter of 2024.

Noninterest Income and Noninterest Expense

Noninterest income totaled $2.7 million for the second quarter of 2025, compared to $3.1 million for the first quarter of 2025 and $2.9 million for the second quarter of 2024. The decrease in other noninterest income was primarily due to changes in the first quarter valuation estimates of other real estate owned during the second quarter of 2025.

Noninterest expense increased to $28.8 million for the second quarter of 2025, compared to $28.1 million for the first quarter of 2025 and $25.6 million for the second quarter of 2024. The quarter-over-quarter increase in noninterest expense was primarily due to increased legal and professional expenses related to the securitization of loans and increased other expenses due to higher letter of credit costs during the second quarter of 2025. At June 30, 2025, the number of employees was 388, compared to 383 at March 31, 2025.

The efficiency ratio was 55.45% for the second quarter of 2025, compared to 61.23% for the first quarter of 2025 and 61.39% for the second quarter of 2024.

Balance Sheet Highlights

Loan Portfolio and Composition

For the quarter ended June 30, 2025, gross loans increased to $4.08 billion, an increase of $91.7 million, or 2.3%, from $3.99 billion as of March 31, 2025, and an increase of $321.6 million, or 8.6%, from $3.76 billion as of June 30, 2024. Commercial and industrial loans accounted for the majority of the loan growth for the second quarter of 2025, offset by slight decreases in real estate loans from the first quarter of 2025.

Asset Quality

Nonperforming loans at June 30, 2025 were $20.1 million, compared to $18.6 million at March 31, 2025 and $24.4 million at June 30, 2024. As of June 30, 2025, the nonperforming loans to total loans ratio was 0.49%, compared to 0.47% as of March 31, 2025 and 0.65% as of June 30, 2024. The increase in nonperforming loans during the second quarter of 2025 was primarily due to several factors. Loans greater than 90 days past due and still accruing increased by $5.2 million, primarily due to one commercial loan with a net book value of $4.2 million. This increase was partially offset by a decline in nonaccrual loans of $3.7 million, which was primarily attributed to the payoff of a $2.0 million loan and approximately $800,000 in loans placed back on accrual.

The provision for credit loss recorded for the second quarter of 2025 was $2.1 million, and the allowance for credit losses of $40.0 million represented 0.98% of the $4.08 billion in gross loans outstanding as of June 30, 2025. The provision for credit loss recorded for the first quarter of 2025 was $450,000, and the allowance for credit losses of $40.5 million represented 1.01% of the $3.99 billion in gross loans outstanding as of March 31, 2025. The increase in the provision for credit loss recorded in the second quarter of 2025 compared to the first quarter of 2025 was primarily due to the charge-off of a factoring receivable facility.

The Company recorded net charge-offs of $2.4 million and $1.8 million for the three months ended June 30, 2025 and June 30, 2024, respectively.

Deposits and Composition

Deposits totaled $4.28 billion as of June 30, 2025, an increase of 0.8% from $4.25 billion as of March 31, 2025, and an increase of 11.0% from $3.86 billion as of June 30, 2024. Noninterest-bearing demand deposits decreased from $448.5 million as of March 31, 2025, to $441.0 million as of June 30, 2025 and represented 10.3% of total deposits as of June 30, 2025, compared to 10.6% of total deposits as of March 31, 2025. As of June 30, 2025, time deposits increased $130.7 million, or 20.1%, partially offset by a decrease in interest-bearing demand deposits of $89.1 million, or 2.9%, and a decrease in savings accounts of $1.7 million, or 6.7%, respectively, from March 31, 2025.

The average cost of deposits was 3.59% for the second quarter of 2025, representing a 1-basis point decrease from the first quarter of 2025 and a 63-basis point decrease from the second quarter of 2024. The decreases were due to the reduction in rates paid on interest-bearing demand deposits.

Earnings Conference Call

Third Coast has scheduled a conference call to discuss its 2025 second quarter results, which will be broadcast live over the Internet, on Thursday, July 24, 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 July 31, 2025, and may be accessed by dialing 201-612-7415 and using passcode 13752287#. 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; economic conditions affecting the real estate market; prepayment risks associated with commercial real estate loans; liquidity risks in the securitization market; operational risks related to the administration of securitized assets; 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, 2024 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 Coast Bancshares, Inc. and SubsidiaryFinancial Highlights(unaudited) 2025 2024(Dollars in thousands) June 30 March 31 December 31 September 30 June 30ASSETSCash and cash equivalents:Cash and due from banks $ 113,141 $ 218,990 $ 371,157 $ 258,191 $ 241,809Federal funds sold 5,815 110,379 50,045 12,265 12,088Total cash and cash equivalents 118,956 329,369 421,202 270,456 253,897Interest bearing time deposits in other banks 262 359 356 353 350Investment securities available-for-sale 355,753 397,442 384,025 292,104 286,167Investment securities held to maturity 206,065 – – – -Loans held for investment 4,079,736 3,988,039 3,966,425 3,889,831 3,758,159Less: allowance for credit losses (40,035) (40,456) (40,304) (39,683) (38,211)Loans held for investment, net 4,039,701 3,947,583 3,926,121 3,850,148 3,719,948Accrued interest receivable 27,736 26,752 25,820 26,111 27,518Premises and equipment, net 24,908 25,669 26,230 26,696 27,626Bank-owned life insurance 74,761 74,018 68,341 67,679 67,030Non-marketable securities, at cost 18,761 15,994 15,980 24,328 16,147Deferred tax asset, net 8,646 9,176 11,445 8,654 8,972Derivative assets 3,059 3,052 6,479 5,786 7,799Right-of-use assets – operating leases 18,769 19,370 19,863 20,397 20,944Goodwill and other intangible assets 18,761 18,801 18,841 18,882 18,922Other assets 27,633 29,404 17,743 16,176 18,799Total assets $ 4,943,771 $ 4,896,989 $ 4,942,446 $ 4,627,770 $ 4,474,119LIABILITIESDeposits:Noninterest bearing $ 440,964 $ 448,542 $ 602,082 $ 489,822 $ 464,498Interest bearing 3,839,905 3,800,001 3,708,416 3,504,616 3,391,093Total deposits 4,280,869 4,248,543 4,310,498 3,994,438 3,855,591Accrued interest payable 6,691 7,044 6,281 7,283 5,668Derivative liabilities 3,779 3,527 8,660 6,874 7,626Lease liability – operating leases 19,835 20,425 20,900 21,412 21,919Other liabilities 24,745 25,979 23,754 34,632 30,786Line of credit – Senior Debt 30,875 30,875 30,875 31,875 36,875Note payable – Subordinated Debentures, net 80,862 80,810 80,759 80,708 80,656Total liabilities 4,447,656 4,417,203 4,481,727 4,177,222 4,039,121SHAREHOLDERS' EQUITYSeries A Convertible Non-Cumulative Preferred Stock 69 69 69 69 69Series B Convertible Perpetual Preferred Stock – – – – -Common stock 13,930 13,904 13,848 13,746 13,744Common stock – non-voting – – – – -Additional paid-in capital 322,972 322,456 321,696 320,871 320,496Retained earnings 149,677 134,115 121,697 109,160 97,583Accumulated other comprehensive income 10,566 10,341 4,508 7,801 4,205Treasury stock, at cost (1,099) (1,099) (1,099) (1,099) (1,099)Total shareholders' equity 496,115 479,786 460,719 450,548 434,998Total liabilities and shareholders' equity $ 4,943,771 $ 4,896,989 $ 4,942,446 $ 4,627,770 $ 4,474,119Third Coast Bancshares, Inc. and SubsidiaryFinancial Highlights(unaudited) Three Months Ended Six Months Ended 2025 2024 2025 2024(Dollars in thousands, except per share data) June 30 March 31 December September June 30 June 30 June 30 31 30INTEREST INCOME:Loans, including fees $ 79,706 $ 73,087 $ 76,017 $ 75,468 $ 73,103 $ 152,793 $ 143,774Investment securities available-for-sale 5,505 5,693 4,939 4,532 4,491 11,198 7,584Investment securities held-to-maturity 1,607 – – – – 1,607 -Federal funds sold and other 1,844 1,986 4,580 2,719 3,631 3,830 8,743 Total interest income 88,662 80,766 85,536 82,719 81,225 169,428 160,101INTEREST EXPENSE:Deposit accounts 37,535 36,226 40,233 40,407 40,410 73,761 79,108FHLB advances and other borrowings 1,753 1,743 1,865 1,929 1,957 3,496 4,056 Total interest expense 39,288 37,969 42,098 42,336 42,367 77,257 83,164Net interest income 49,374 42,797 43,438 40,383 38,858 92,171 76,937Provision for credit losses 2,130 450 1,156 1,085 1,900 2,580 3,460Net interest income after credit loss expense 47,244 42,347 42,282 39,298 36,958 89,591 73,477NONINTEREST INCOME:Service charges and fees 2,125 2,277 1,772 2,143 1,515 4,402 3,020Earnings on bank-owned life insurance 743 677 662 649 587 1,420 1,169(Loss) gain on sale of investment securities available-for-sale (110) (228) 196 (480) 123 (338) 280Gain on sale of SBA loans 44 30 – – – 74 30Other (152) 351 243 205 663 199 732 Total noninterest income 2,650 3,107 2,873 2,517 2,888 5,757 5,231NONINTEREST EXPENSE:Salaries and employee benefits 18,179 18,341 17,018 15,679 15,917 36,520 32,419Occupancy and equipment expense 2,783 2,834 2,856 2,817 2,763 5,617 5,420Legal and professional 1,927 1,431 1,587 1,037 1,621 3,358 3,006Data processing and network expense 1,162 1,120 1,182 1,608 1,046 2,282 2,464Regulatory assessments 1,203 1,306 1,196 1,249 1,005 2,509 1,985Advertising and marketing 503 409 526 420 406 912 761Software purchases and maintenance 1,149 1,259 1,202 1,266 1,211 2,408 2,416Loan operations and other real estate owned expense 439 269 189 227 262 708 488Telephone and communications 115 175 144 166 141 290 275Other 1,386 964 1,330 1,085 1,257 2,350 2,309 Total noninterest expense 28,846 28,108 27,230 25,554 25,629 56,954 51,543NET INCOME BEFORE INCOME TAX 21,048 17,346 17,925 16,261 14,217 38,394 27,165EXPENSEIncome tax expense 4,301 3,757 4,192 3,486 3,421 8,058 6,002NET INCOME 16,747 13,589 13,733 12,775 10,796 30,336 21,163Preferred stock dividends declared 1,185 1,171 1,196 1,198 1,184 2,356 2,355NET INCOME AVAILABLE TO COMMON $ 15,562 $ 12,418 $ 12,537 $ 11,577 $ 9,612 $ 27,980 $ 18,808SHAREHOLDERSEARNINGS PER COMMON SHARE:Basic earnings per share $ 1.12 $ 0.90 $ 0.92 $ 0.85 $ 0.70 $ 2.03 $ 1.38Diluted earnings per share $ 0.96 $ 0.78 $ 0.79 $ 0.74 $ 0.63 $ 1.74 $ 1.25Third Coast Bancshares, Inc. and SubsidiaryFinancial Highlights(unaudited) Three Months Ended Six Months Ended 2025 2024 2025 2024(Dollars in thousands, except June 30 March 31 December September June 30 June 30 June 30share and per share data) 31 30Earnings per share, basic $ 1.12 $ 0.90 $ 0.92 $ 0.85 $ 0.70 $ 2.03 $ 1.38Earnings per share, diluted $ 0.96 $ 0.78 $ 0.79 $ 0.74 $ 0.63 $ 1.74 $ 1.25Dividends on common stock $ – $ – $ – $ – $ – $ – $ -Dividends on Series A Convertible $ 17.06 $ 16.88 $ 17.25 $ 17.25 $ 17.06 $ 33.94 $ 33.94Non-Cumulative Preferred StockReturn on average assets (A) 1.38 % 1.17 % 1.13 % 1.14 % 0.97 % 1.28 % 0.96 %Return on average common equity (A) 14.70 % 12.41 % 12.66 % 12.12 % 10.53 % 13.59 % 10.48 %Return on average tangible common 15.38 % 13.01 % 13.29 % 12.76 % 11.10 % 14.23 % 11.06 %equity (A) (B)Net interest margin (A) (C) 4.22 % 3.80 % 3.71 % 3.73 % 3.62 % 4.02 % 3.61 %Efficiency ratio (D) 55.45 % 61.23 % 58.80 % 59.57 % 61.39 % 58.16 % 62.73 %Capital RatiosThird Coast Bancshares, Inc. (consolidated):Total common equity to total assets 8.70 % 8.45 % 7.98 % 8.31 % 8.24 % 8.70 % 8.24 %Tangible common equity to tangible 8.35 % 8.09 % 7.63 % 7.93 % 7.85 % 8.35 % 7.85 %assets (B)Estimated Common equity tier 1 (to risk 8.75 % 8.70 % 8.41 % 8.38 % 8.29 % 8.75 % 8.29 %weighted assets)Estimated Tier 1 capital (to risk weighted 10.20 % 10.19 % 9.90 % 9.93 % 9.88 % 10.20 % 9.88 %assets)Estimated Total capital (to risk weighted 12.87 % 12.97 % 12.68 % 12.80 % 12.78 % 12.87 % 12.78 %assets)Estimated Tier 1 capital (to average 9.65 % 9.58 % 9.12 % 9.53 % 9.24 % 9.65 % 9.24 %assets)Third Coast Bank:Estimated Common equity tier 1 (to risk 12.56 % 12.69 % 12.35 % 12.45 % 12.52 % 12.56 % 12.52 %weighted assets)Estimated Tier 1 capital (to risk weighted 12.56 % 12.69 % 12.35 % 12.45 % 12.52 % 12.56 % 12.52 %assets)Estimated Total capital (to risk weighted 13.46 % 13.63 % 13.29 % 13.42 % 13.49 % 13.46 % 13.49 %assets)Estimated Tier 1 capital (to average 11.89 % 11.93 % 11.37 % 11.95 % 11.71 % 11.89 % 11.71 %assets)Other DataWeighted average shares:Basic 13,836,830 13,776,998 13,698,010 13,665,400 13,657,223 13,807,079 13,631,740Diluted 17,391,128 17,440,826 17,394,884 17,184,991 17,018,680 17,416,142 16,977,342Period end shares outstanding 13,851,581 13,825,286 13,769,780 13,667,591 13,665,505 13,851,581 13,665,505Book value per share $ 31.04 $ 29.92 $ 28.65 $ 28.13 $ 26.99 $ 31.04 $ 26.99Tangible book value per share (B) $ 29.69 $ 28.56 $ 27.29 $ 26.75 $ 25.60 $ 29.69 $ 25.60(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 total noninterest 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 Coast Bancshares, Inc. and SubsidiaryFinancial Highlights(unaudited) Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024(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 $ 4,020,771 $ 79,706 7.95% $ 3,979,859 $ 73,087 7.45% $ 3,740,544 $ 73,103 7.86%Investment securities available-for-sale 382,439 5,505 5.77% 398,115 5,693 5.80% 297,653 4,491 6.07%Investment securities held-to-maturity 117,407 1,607 5.49% – – – – – -Federal funds sold and other 169,943 1,844 4.35% 186,893 1,986 4.31% 277,144 3,631 5.27%interest-earning assetsTotal interest-earning assets 4,690,560 88,662 7.58% 4,564,867 80,766 7.18% 4,315,341 81,225 7.57%Less: allowance for loan losses (40,631) (40,595) (38,429)Total interest-earning assets, net of 4,649,929 4,524,272 4,276,912allowanceNoninterest-earning assets 210,170 198,522 195,193Total assets $ 4,860,099 $ 4,722,794 $ 4,472,105Liabilities and Shareholders' EquityInterest-bearing liabilities:Interest-bearing deposits $ 3,766,801 $ 37,535 4.00% $ 3,652,006 $ 36,226 4.02% $ 3,411,592 $ 40,410 4.76%Note payable and line of credit 111,712 1,719 6.17% 111,661 1,713 6.22% 121,275 1,957 6.49%FHLB advances 2,916 34 4.68% 2,551 30 4.77% – – -Total interest-bearing liabilities 3,881,429 39,288 4.06% 3,766,218 37,969 4.09% 3,532,867 42,367 4.82%Noninterest-bearing deposits 431,144 423,780 442,672Other liabilities 56,785 60,755 63,056Total liabilities 4,369,358 4,250,753 4,038,595Shareholders' equity 490,741 472,041 433,510Total liabilities and shareholders' $ 4,860,099 $ 4,722,794 $ 4,472,105equityNet interest income $ 49,374 $ 42,797 $ 38,858Net interest spread (1) 3.52% 3.09% 2.75%Net interest margin (2) 4.22% 3.80% 3.62%(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 Coast Bancshares, Inc. and SubsidiaryFinancial Highlights(unaudited) Six Months Ended June 30, 2025 June 30, 2024(Dollars in thousands) Average Interest Average Average Interest Average Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Balance Paid(3) Rate(4) Balance Paid(3) Rate(4)AssetsInterest-earnings assets:Loans, gross $ 4,000,428 $ 152,793 7.70% $ 3,702,960 $ 143,774 7.81%Investment securities available-for-sale 390,233 11,198 5.79% 249,965 7,584 6.10%Investment securities held-to-maturity 59,028 1,607 5.49% – – -Federal funds sold and other interest-earning 178,372 3,830 4.33% 330,536 8,743 5.32%assetsTotal interest-earning assets 4,628,061 169,428 7.38% 4,283,461 160,101 7.52%Less: allowance for loan losses (40,613) (37,853)Total interest-earning assets, net of allowance 4,587,448 4,245,608Noninterest-earning assets 204,378 194,133Total assets $ 4,791,826 $ 4,439,741Liabilities and Shareholders' EquityInterest-bearing liabilities:Interest-bearing deposits $ 3,709,721 $ 73,761 4.01% $ 3,379,219 $ 79,108 4.71%Note payable and line of credit 111,687 3,432 6.20% 121,080 4,056 6.74%FHLB advances and other 2,735 64 4.72% – – -Total interest-bearing liabilities 3,824,143 77,257 4.07% 3,500,299 83,164 4.78%Noninterest-bearing deposits 427,482 449,863Other liabilities 58,758 62,501Total liabilities 4,310,383 4,012,663Shareholders' equity 481,443 427,078Total liabilities and shareholders' equity $ 4,791,826 $ 4,439,741Net interest income $ 92,171 $ 76,937Net interest spread (1) 3.31% 2.74%Net interest margin (2) 4.02% 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 Coast Bancshares, Inc. and SubsidiaryFinancial Highlights(unaudited) Three Months Ended 2025 2024(Dollars in thousands) June 30 March 31 December 31 September 30 June 30Period-end Loan Portfolio:Real estate loans:Commercial real estate:Non-farm non-residential owner occupied $ 423,959 $ 420,902 $ 448,134 $ 470,222 $ 499,941Non-farm non-residential non-owner occupied 666,840 633,227 652,119 611,617 612,268Residential 323,898 335,285 336,736 339,558 349,461Construction, development & other 784,364 846,166 871,373 825,302 756,646Farmland 28,013 30,783 30,915 35,650 31,049Commercial & industrial 1,724,583 1,605,243 1,497,408 1,499,302 1,361,401Consumer 1,206 1,443 1,859 2,002 2,216Municipal and other 126,873 114,990 127,881 106,178 145,177Total loans $ 4,079,736 $ 3,988,039 $ 3,966,425 $ 3,889,831 $ 3,758,159Asset Quality:Nonaccrual loans $ 13,358 $ 17,066 $ 26,773 $ 23,522 $ 23,910Loans > 90 days and still accruing 6,755 1,503 1,173 522 507Total nonperforming loans 20,113 18,569 27,946 24,044 24,417Other real estate owned 8,580 8,752 862 283 -Total nonperforming assets $ 28,693 $ 27,321 $ 28,808 $ 24,327 $ 24,417QTD Net charge-offs (recoveries) $ 2,376 $ 398 $ 879 $ (57) $ 1,829Nonaccrual loans:Real estate loans:Commercial real estate:Non-farm non-residential owner occupied $ 2,191 $ 3,100 $ 10,433 $ 9,696 $ 10,051Non-farm non-residential non-owner occupied 111 – – 68 74Residential 637 2,616 2,226 2,664 2,767Construction, development & other 344 358 400 1 301Commercial & industrial 10,075 10,992 13,714 11,093 10,717Total nonaccrual loans $ 13,358 $ 17,066 $ 26,773 $ 23,522 $ 23,910Asset Quality Ratios:Nonperforming assets to total assets 0.58 % 0.56 % 0.58 % 0.53 % 0.55 %Nonperforming loans to total loans 0.49 % 0.47 % 0.70 % 0.62 % 0.65 %Allowance for credit losses to total loans 0.98 % 1.01 % 1.02 % 1.02 % 1.02 %QTD Net charge-offs (recoveries) to average loans 0.24 % 0.04 % 0.09 % (0.01) % 0.20 %(annualized)

Third Coast Bancshares, 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 Six Months Ended 2025 2024 2025 2024(Dollars in thousands, except June 30 March 31 December September June 30 June 30 June 30share and per share data) 31 30Tangible Common Equity:Total shareholders' equity $ 496,115 $ 479,786 $ 460,719 $ 450,548 $ 434,998 $ 496,115 $ 434,998Less: Preferred stock including additional 66,160 66,160 66,160 66,117 66,225 66,160 66,225paid in capitalTotal common equity 429,955 413,626 394,559 384,431 368,773 429,955 368,773Less: Goodwill and core deposit intangibles, 18,761 18,801 18,841 18,882 18,922 18,761 18,922netTangible common equity $ 411,194 $ 394,825 $ 375,718 $ 365,549 $ 349,851 $ 411,194 $ 349,851Common shares outstanding at end of period 13,851,581 13,825,286 13,769,780 13,667,591 13,665,505 13,851,581 13,665,505Book Value Per Share $ 31.04 $ 29.92 $ 28.65 $ 28.13 $ 26.99 $ 31.04 $ 26.99Tangible Book Value Per Share $ 29.69 $ 28.56 $ 27.29 $ 26.75 $ 25.60 $ 29.69 $ 25.60Tangible Assets:Total assets $ 4,943,771 $ 4,896,989 $ 4,942,446 $ 4,627,770 $ 4,474,119 $ 4,943,771 $ 4,474,119Adjustments: Goodwill and core deposit 18,761 18,801 18,841 18,882 18,922 18,761 18,922intangibles, netTangible assets $ 4,925,010 $ 4,878,188 $ 4,923,605 $ 4,608,888 $ 4,455,197 $ 4,925,010 $ 4,455,197Total Common Equity to Total Assets 8.70 % 8.45 % 7.98 % 8.31 % 8.24 % 8.70 % 8.24 %Tangible Common Equity to Tangible Assets 8.35 % 8.09 % 7.63 % 7.93 % 7.85 % 8.35 % 7.85 %Average Tangible Common Equity:Average shareholders' equity $ 490,741 $ 472,041 $ 460,169 $ 446,124 $ 433,510 $ 481,443 $ 427,078Less: Average preferred stock including 66,160 66,160 66,121 66,223 66,225 66,160 66,225additional paid in capitalAverage common equity 424,581 405,881 394,048 379,901 367,285 415,283 360,853Less: Average goodwill and core deposit 18,784 18,826 18,865 18,906 18,946 18,805 18,967intangibles, netAverage tangible common equity $ 405,797 $ 387,055 $ 375,183 $ 360,995 $ 348,339 $ 396,478 $ 341,886Net Income $ 16,747 $ 13,589 $ 13,733 $ 12,775 $ 10,796 $ 30,336 $ 21,163Less: Dividends declared on preferred stock 1,185 1,171 1,196 1,198 1,184 2,356 2,355Net Income Available to Common Shareholders $ 15,562 $ 12,418 $ 12,537 $ 11,577 $ 9,612 $ 27,980 $ 18,808Return on Average Common Equity(A) 14.70 % 12.41 % 12.66 % 12.12 % 10.53 % 13.59 % 10.48 %Return on Average Tangible Common Equity(A) 15.38 % 13.01 % 13.29 % 12.76 % 11.10 % 14.23 % 11.06 %(A) Interim periods annualized.

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

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