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Third Coast Bancshares (TCBX)
NASDAQ:TCBX
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Third Coast Bancshares
(NASDAQ:TCBX)
68Neutral
Third Coast Bancshares (TCBX) vs. S&P 500 (SPY)
Market Cap
$457.66M
Dividend YieldN/A
Average Volume (3M)66.96K
Price to Earnings (P/E)13.3
Beta (1Y)1.02
Revenue Growth23.29%
EPS Growth48.86%
CountryUS
Employees369
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.50
Shares Outstanding13,788,945
10 Day Avg. Volume66,419
30 Day Avg. Volume66,960
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)N/A
Price to Sales (P/S)2.70
Price to Cash Flow (P/CF)-31.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.50Price Target Upside22.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Third Coast Bancshares Business Overview & Revenue Model
Company DescriptionThird Coast Bancshares, Inc. (TCBX) is a financial holding company based in Texas, primarily engaged in providing a range of banking products and services. The company operates through its subsidiary, Third Coast Bank, SSB, which offers commercial and retail banking services. The bank serves a diverse client base, including small and medium-sized businesses, professionals, and individuals, with a focus on personalized customer service. Its core offerings include loans, deposits, treasury management, and other financial services catering to the needs of the local communities it serves.
How the Company Makes MoneyThird Coast Bancshares generates revenue primarily through interest income derived from its lending activities. The bank provides various types of loans, including commercial, industrial, and real estate loans, which contribute significantly to its interest earnings. Additionally, the company earns non-interest income through fees and commissions from services such as treasury management, deposit account services, and other financial products. The bank's strategic focus on relationship banking helps it maintain strong customer ties, which in turn supports its revenue growth. Third Coast Bancshares may also engage in partnerships with other financial institutions to enhance its service offerings and expand its market reach, although specific partnership details are not disclosed.
Third Coast Bancshares Financial Statement Overview
Summary
Third Coast Bancshares exhibits strong revenue and net income growth, supported by a solid balance sheet with no debt in 2024. While cash flow is positive, negative investing cash flows point to substantial capital investments. The company balances growth and stability, although operational and capital structure improvements could further enhance financial health.Income Statement
The company has demonstrated strong revenue growth, rising from $34.3M in 2019 to $328.4M in 2024. The Net Profit Margin is solid at 14.5% for 2024, showing efficient cost management. However, the EBIT margin has fluctuated, with a decrease in 2023, indicating some operational challenges.72
Positive
Balance Sheet
The balance sheet is robust with no total debt in 2024, reflecting a strong equity position. The Equity Ratio is moderate, at 9.3%, which suggests a balanced approach to leveraging assets. However, the Stockholders' Equity has not grown proportionally to total assets, indicating potential capital structure issues.68
Positive
Cash Flow
The Free Cash Flow has shown positive growth, with a significant increase from negative figures in previous years to $35.1M in 2024. The Operating Cash Flow to Net Income ratio is 0.74, indicating good cash generation relative to earnings. However, cash flow from investing activities remains negative, suggesting heavy investment or asset acquisition.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 328.36M | 141.41M | 122.34M | 93.12M | 69.19M | Gross Profit |
| 328.36M | 141.41M | 122.34M | 93.12M | 69.19M | EBIT |
| 326.65M | 0.00 | 60.27M | 14.48M | 15.61M | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 17.28M | Net Income Common Stockholders |
| 47.67M | 33.40M | 18.66M | 11.42M | 12.12M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 755.18M | 411.85M | 176.07M | 353.30M | 226.99M | Total Assets |
| 4.94B | 4.40B | 3.77B | 2.50B | 1.87B | Total Debt |
| 132.53M | 141.71M | 129.43M | 1.00M | 33.88M | Net Debt |
| -371.16M | -155.22M | -200.43M | -325.86M | -167.52M | Total Liabilities |
| 4.48B | 3.98B | 3.39B | 1.44M | 1.75B | Stockholders Equity |
| 460.72M | 411.97M | 381.78M | 299.01M | 121.72M |
| Cash Flow | Free Cash Flow | |||
| 35.14M | 35.64M | 9.60M | -1.04M | -5.01M | Operating Cash Flow |
| 35.14M | 39.08M | 21.79M | 4.58M | -3.65M | Investing Cash Flow |
| -520.93M | -529.53M | -1.24B | -500.06M | -500.01M | Financing Cash Flow |
| 495.15M | 570.29M | 1.22B | 618.94M | 611.16M |
Third Coast Bancshares Technical Analysis
Negative
33.19
Price Trends
35.13
Negative
34.83
Negative
29.60
Positive
Market Momentum
-0.36
Negative
43.27
Neutral
63.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCBX, the sentiment is Negative. The current price of 33.19 is below the 20-day moving average (MA) of 33.44, below the 50-day MA of 35.13, and above the 200-day MA of 29.60, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 43.27 is Neutral, neither overbought nor oversold. The STOCH value of 63.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TCBX.
Third Coast Bancshares Risk Analysis
Third Coast Bancshares disclosed 1 risk factors in its most recent earnings report. Third Coast Bancshares reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Third Coast Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.59B | 14.00 | 10.38% | 2.72% | 8.83% | 3.77% | |
68 Neutral | $457.66M | 13.26 | 10.93% | ― | 23.29% | 48.86% | |
67 Neutral | $3.40B | 57.99 | 2.36% | ― | 8.15% | -64.06% | |
65 Neutral | $5.50B | 10.87 | 9.75% | 3.32% | 26.53% | ― | |
65 Neutral | $7.70B | 11.73 | 10.72% | 4.84% | -6.54% | -21.90% | |
64 Neutral | $14.25B | 10.26 | 8.97% | 4.33% | 16.33% | -11.91% |
* Financial Sector Average
Performance Comparison
TCBX
Third Coast Bancshares
33.19
13.98
72.77%
CADE
Cadence Bank
30.12
2.35
8.46%
CMA
Comerica
58.72
7.29
14.17%
HOMB
Home Bancshares
28.14
4.69
20.00%
TCBI
Texas Capital Bancshares
73.79
14.20
23.83%
Third Coast Bancshares Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -0.51% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The company's financial performance in Q4 2024 and throughout the year was strong, with impressive growth in net interest income, loans, and deposits. The efficiency ratio improvement and significant increase in net income highlight effective cost management and operational excellence. Despite a slight increase in nonperforming loans, the overall credit quality remains strong with low charge-offs. The bank is well-positioned for continued success in 2025.Highlights
Net Interest Income Growth
Achieved 14 consecutive positive quarters of net interest income growth, reaching $43.4 million in Q4 2024, a 7.6% increase from Q3 2024 and a 16.4% increase year-over-year.
Strong Loan and Deposit Growth
Fourth quarter loan growth rose by $76.6 million (2%) and deposits increased by $316 million (7.9%). Full-year loan growth was $327.6 million (9%) and deposit growth was $507.4 million (13.3%).
Efficiency Ratio Improvement
Improved the efficiency ratio to 58.8% in Q4 2024, marking the second consecutive quarter of exceeding the internal target of below 60%.
Net Income Increase
Net income for 2024 reached $47.7 million, marking a 42.7% increase from the previous year's total of $33.4 million.
Investment in Securities
Significant growth in investment securities by $91.9 million, with yields on purchased securities averaging 5.44% and total portfolio yield at 6.31%.
Low Charge-offs
Net charge-offs were $879,000 for Q4 2024 or 0.09% of average loans, compared to $1.5 million or 0.17% of average loans in Q4 2023.
Lowlights
Increase in Nonperforming Loans
Nonperforming loans to total loans ratio increased to 0.7% in Q4 2024 from 0.62% in Q3 2024, with $6.7 million in loans placed on nonaccrual.
Seasonal Deposit Variability
Acknowledged seasonal fluctuations in deposits, with a temporary large balance at year-end that left the bank shortly after.
Company Guidance
During the Fourth Quarter 2024 earnings call for Third Coast Bancshares, key metrics highlighted included a net interest income of $43.4 million, marking a 7.6% increase from the previous quarter and a 16.4% rise from the same period last year. Loan growth was reported at $76.6 million, or a 2% increase for the quarter, contributing to an annual growth of $327.6 million, equating to 9%. Deposits grew by $316 million in the fourth quarter, representing a 7.9% increase, with an annual rise of $507.4 million or 13.3%. The company achieved an improved efficiency ratio of 58.8%, surpassing their internal target of below 60% for the second consecutive quarter. Additionally, net income for the year reached $47.7 million, translating to $3.14 per basic share and $2.78 per diluted share, a 42.7% increase from the previous year. Nonperforming loans rose to 0.7%, but the company maintained a solid credit quality with net charge-offs at 0.09% of average loans. The strategic focus for 2025 includes sustaining loan growth of $50 to $100 million per quarter and maintaining a return on average assets target of 1% or better.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.