Third Coast Bancshares (TCBX) AI Stock Analysis

• Market Cap: $554.17M
• Dividend Yield: N/A
• Average Volume (3M): 70.30K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.04
• Revenue Growth: 10.44%
• EPS Growth: 62.82%
• Country: US
• Employees: 376
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.96
• Shares Outstanding: 13,861,173
• 10 Day Avg. Volume: 71,578
• 30 Day Avg. Volume: 70,304
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: 7.29
• 1Y Price Target: $43.00
• Price Target Upside: 7.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 79 Outperform
• Price Target: $44.00 ▲(10.06% Upside)

Third Coast Bancshares is well-positioned for continued growth, driven by strong financial performance and strategic initiatives like securitization deals. The stock's technical indicators suggest a positive trend, and the valuation is reasonable. While the earnings call was largely positive, concerns about nonperforming loans and net charge-offs warrant attention.

Third Coast Bancshares Business Overview & Revenue Model

Company Description

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, such as equipment loans, working capital, auto finance, and commercial finance. In addition, the company provides treasury management consumer and commercial online banking services, mobile applications, safe deposit boxes, and wire transfer services, as well as debit cards. It operates through eleven branches in Greater Houston, Dallas-Fort Worth, and Austin-San Antonio; and one branch in Detroit, Texas. The company was founded in 2008 and is headquartered in Humble, Texas.

How the Company Makes Money

Third Coast Bancshares generates revenue primarily through interest income from its lending activities. This includes interest earned on loans such as commercial and industrial loans, real estate loans, and consumer loans. Additionally, the company earns non-interest income through fees and services associated with its deposit products, treasury management services, and other financial services. The bank also benefits from strategic partnerships and local market penetration, which enhance its ability to attract deposits and lend to a diversified client base. By maintaining a strong focus on local businesses and individuals, Third Coast Bancshares leverages its community relationships to drive growth and profitability.

Third Coast Bancshares Financial Statement Overview

Summary

Third Coast Bancshares demonstrates strong financial performance with robust revenue growth, improving profitability, and stable financial leverage. The income statement highlights efficient operations and cost management, while the balance sheet reflects a solid equity base and prudent leverage. Cash flow is on an upward trajectory, although there is room for improvement in operating cash generation.

Income Statement

Third Coast Bancshares shows strong revenue growth with a TTM increase of 1.98% and consistent profitability. The gross profit margin improved to 52.07% in TTM, indicating efficient cost management. Net profit margin also increased to 16.34%, reflecting solid bottom-line performance. EBIT and EBITDA margins are healthy at 20.86% and 23.14% respectively, showcasing operational efficiency. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The balance sheet is stable with a manageable debt-to-equity ratio of 0.27 in TTM, indicating prudent leverage. Return on equity improved to 12.05%, demonstrating effective use of equity to generate profits. The equity ratio stands at 10.04%, suggesting a solid equity base relative to total assets. While the company maintains a healthy financial position, further improvement in equity ratio could enhance financial stability.

Cash Flow

Cash flow analysis reveals a positive trend with a 21.78% growth in free cash flow in TTM. The operating cash flow to net income ratio is low at 0.99%, indicating potential room for improvement in cash generation relative to net income. The free cash flow to net income ratio is strong at 96.63%, reflecting efficient cash conversion. Overall, cash flow is improving, but further enhancement in operating cash flow is desirable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	347.98M	338.07M	274.08M	160.18M	103.19M	83.55M
Gross Profit	181.19M	164.77M	140.74M	110.49M	83.20M	61.64M
EBITDA	80.51M	65.97M	45.56M	25.72M	14.21M	15.69M
Net Income	56.84M	47.67M	33.40M	18.66M	11.42M	12.12M
Balance Sheet
Total Assets	4.94B	4.94B	4.40B	3.77B	2.50B	1.87B
Cash, Cash Equivalents and Short-Term Investments	468.89M	755.54M	475.01M	505.93M	353.30M	226.99M
Total Debt	131.57M	132.53M	141.71M	129.43M	1.00M	33.88M
Total Liabilities	4.45B	4.48B	3.98B	3.39B	2.20B	1.75B
Stockholders Equity	496.12M	460.72M	411.97M	381.78M	299.01M	121.72M
Cash Flow
Free Cash Flow	41.32M	33.37M	35.64M	9.60M	-1.04M	-5.01M
Operating Cash Flow	42.76M	35.14M	39.08M	21.79M	4.58M	-3.65M
Investing Cash Flow	-593.24M	-520.93M	-529.53M	-1.24B	-500.06M	-500.01M
Financing Cash Flow	415.54M	495.15M	570.29M	1.22B	618.94M	611.16M

Third Coast Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCBX, the sentiment is Positive. The current price of 39.98 is above the 20-day moving average (MA) of 38.04, above the 50-day MA of 36.08, and above the 200-day MA of 33.97, indicating a bullish trend. The MACD of 1.05 indicates Negative momentum. The RSI at 66.38 is Neutral, neither overbought nor oversold. The STOCH value of 81.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TCBX.

Third Coast Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCBX	79 Outperform	$554.17M	13.32	12.21%	―	10.44%	62.82%
FBIZ	76 Outperform	$433.32M	9.17	14.31%	2.15%	8.45%	21.74%
NRIM	74 Outperform	$524.21M	11.81	16.69%	2.65%	27.34%	39.43%
COFS	69 Neutral	$465.77M	24.61	4.37%	3.58%	38.01%	-58.08%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
FFIC	62 Neutral	$458.71M	16.43	-5.27%	6.48%	-7.00%	-233.54%
FFWM	52 Neutral	$487.73M	―	-9.79%	0.20%	-1.29%	-1023.82%

Third Coast Bancshares Corporate Events

Third Coast Bancshares Declares Quarterly Cash Dividend

On June 26, 2025, Third Coast Bancshares, Inc. announced that its Board of Directors declared a quarterly cash dividend of $17.0625 per share on its 6.75% Series A Convertible Non-Cumulative Preferred Stock. The dividend, payable on July 15, 2025, reflects the company’s ongoing commitment to providing returns to its shareholders and may impact its financial strategy and stakeholder relations.

Third Coast Bancshares Announces New Share Repurchase Program

On June 17, 2025, Third Coast Bancshares, Inc. announced a new share repurchase program authorized by its Board of Directors, allowing the company to buy back up to $30 million of its common stock by May 22, 2026. The program, which received non-objection from the Federal Reserve Bank of Dallas, offers flexibility in repurchase methods and is subject to various factors, potentially impacting the company’s capital strategy and shareholder value.

Third Coast Bancshares Completes $150M Securitization Deal

On June 3, 2025, Third Coast Bank, a subsidiary of Third Coast Bancshares, Inc., entered into a $150 million securitization transaction involving commercial real estate loans. This transaction, sponsored by EJF Capital LLC, is expected to reduce the Bank’s risk-weighted assets and loan concentration risk, while diversifying its loan portfolio. The transaction highlights the Bank’s strategic efforts to enhance its financial stability and operational efficiency.

Third Coast Bancshares Holds Annual Shareholder Meeting

On May 22, 2025, Third Coast Bancshares, Inc. held its Annual Meeting of Shareholders, where key decisions were made regarding the company’s governance and financial oversight. The shareholders elected new members to the board of directors across different classes, with terms extending to the 2026, 2027, and 2028 annual meetings, respectively. Additionally, the shareholders ratified the appointment of Whitley Penn LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.