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Third Coast Bancshares (TCBX)
NASDAQ:TCBX
US Market

Third Coast Bancshares (TCBX) AI Stock Analysis

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Third Coast Bancshares

(NASDAQ:TCBX)

68Neutral
Third Coast Bancshares is performing well, driven by strong financial metrics and a positive outlook from its latest earnings call. The stock's valuation is attractive, though technical indicators suggest caution due to recent bearish trends. Investors may find long-term potential, contingent on continued financial and operational improvements.

Third Coast Bancshares (TCBX) vs. S&P 500 (SPY)

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
72
Positive
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.
Balance Sheet
68
Positive
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.
Cash Flow
65
Positive
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
328.36M141.41M122.34M93.12M69.19M
Gross Profit
328.36M141.41M122.34M93.12M69.19M
EBIT
326.65M0.0060.27M14.48M15.61M
EBITDA
0.000.000.000.0017.28M
Net Income Common Stockholders
47.67M33.40M18.66M11.42M12.12M
Balance SheetCash, Cash Equivalents and Short-Term Investments
755.18M411.85M176.07M353.30M226.99M
Total Assets
4.94B4.40B3.77B2.50B1.87B
Total Debt
132.53M141.71M129.43M1.00M33.88M
Net Debt
-371.16M-155.22M-200.43M-325.86M-167.52M
Total Liabilities
4.48B3.98B3.39B1.44M1.75B
Stockholders Equity
460.72M411.97M381.78M299.01M121.72M
Cash FlowFree Cash Flow
35.14M35.64M9.60M-1.04M-5.01M
Operating Cash Flow
35.14M39.08M21.79M4.58M-3.65M
Investing Cash Flow
-520.93M-529.53M-1.24B-500.06M-500.01M
Financing Cash Flow
495.15M570.29M1.22B618.94M611.16M

Third Coast Bancshares Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price29.80
Price Trends
50DMA
32.23
Negative
100DMA
33.68
Negative
200DMA
30.55
Negative
Market Momentum
MACD
-0.88
Negative
RSI
47.32
Neutral
STOCH
50.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCBX, the sentiment is Neutral. The current price of 29.8 is above the 20-day moving average (MA) of 29.21, below the 50-day MA of 32.23, and below the 200-day MA of 30.55, indicating a neutral trend. The MACD of -0.88 indicates Negative momentum. The RSI at 47.32 is Neutral, neither overbought nor oversold. The STOCH value of 50.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$400.47M8.7514.36%2.14%12.02%26.09%
77
Outperform
$445.32M10.7116.22%3.10%23.96%47.39%
73
Outperform
$430.68M8.8511.72%3.87%21.70%15.99%
68
Neutral
$411.99M10.8811.27%15.07%53.76%
63
Neutral
$12.41B9.568.14%17059.43%12.62%-4.23%
49
Neutral
$413.58M-9.34%1.01%6.75%62.30%
48
Neutral
$404.31M16.43-6.53%7.07%-5.55%-242.78%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TCBX
Third Coast Bancshares
30.31
9.66
46.78%
FBIZ
First Business Financial
47.86
13.85
40.72%
FFIC
Flushing Financial
12.21
1.13
10.20%
NRIM
Northrim Bancorp
80.66
32.57
67.73%
FFWM
First Foundation
5.12
-0.35
-6.40%
COFS
ChoiceOne Financial Services
28.76
4.23
17.24%

Third Coast Bancshares Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q1-2025)
|
% Change Since: -2.33%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects a largely positive sentiment with significant highlights such as the successful execution of a commercial real estate loan securitization, improved credit quality, and increased net interest margin. However, there are some challenges, including a decline in deposits and an increase in non-interest expenses. Overall, the positive aspects outweigh the negatives, indicating a strong strategic direction and effective management.
Q1-2025 Updates
Positive Updates
Commercial Real Estate Loan Securitization
Third Coast executed a significant commercial real estate loan securitization, providing increased flexibility in managing the balance sheet and capital ratios, generating fee income, and positively impacting the net interest margin.
Improved Credit Quality
Non-performing loans declined by $9.3 million, improving the non-performing loans to total loans ratio by 23 basis points. Non-performing assets to total assets declined by two basis points to 0.56%.
Net Interest Margin Improvement
Net interest margin improved by nine basis points to 3.80% in the first quarter, demonstrating effective management of interest income and expenses.
Book Value and Tangible Book Value Growth
Book value and tangible book value grew by 4.4% and 4.7% respectively over the prior quarter, and by 14.3% and 15.2% compared to the same period last year.
Strong Loan Growth in April
Loan growth in April exceeded $50 million, indicating strong demand and effective management of loan portfolios.
Negative Updates
Decline in Deposits
Deposits declined by $62 million for the quarter, resulting in a loan-to-deposit ratio of 93.9%.
Increase in Non-Interest Expenses
Non-interest expenses increased by 3.2% or $878,000 in the first quarter and were up 8.5% or $2.2 million from the same quarter last year.
Flat Net Income
First-quarter net income was $12.4 million, essentially flat versus the fourth quarter of 2020.
Company Guidance
During the Third Coast Bancshares First Quarter 2025 Earnings Conference Call, the company provided several key metrics and guidance for the remainder of the year. The net interest margin improved by nine basis points to 3.80% in the first quarter, with expectations of an additional five basis points improvement in the second quarter due to a successful commercial real estate loan securitization. The bank reported a net income of $12.4 million, an ROA of 1.17%, and a return on equity of 12.4%. Non-interest expenses increased by 3.2% from the previous quarter. The loan-to-deposit ratio was 93.9%, and period-end loan growth was $21.6 million, with quarterly average growth better at $42.5 million. For the rest of 2025, Third Coast Bancshares aims for $325 million in loan growth and is considering a share buyback program due to strong capital positions. The company remains focused on disciplined loan growth, robust credit management, and enhancing shareholder value, with book value and tangible book value increasing by 4.4% and 4.7% respectively from the prior quarter.
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.