Third Coast Bancshares (TCBX) AI Stock Analysis

• Market Cap: $513.49M
• Dividend Yield: N/A
• Average Volume (3M): 66.36K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.07
• Revenue Growth: 10.44%
• EPS Growth: 62.82%
• Country: US
• Employees: 376
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.96
• Shares Outstanding: 13,833,289
• 10 Day Avg. Volume: 67,256
• 30 Day Avg. Volume: 66,363
• PEG Ratio: 1.43
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.07
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 2.48
• Enterprise Value/Ebitda: 1.81
• 1Y Price Target: $42.00
• Price Target Upside: 7.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: $42.00 ▲(7.69%Upside)

Third Coast Bancshares shows strength in financial performance and strategic corporate actions, supporting a positive outlook. Technical indicators suggest bullish momentum but caution due to potential overbought conditions. Valuation is reasonable, though the lack of dividends might limit appeal for some investors. Earnings call insights reinforce the company's growth potential, despite noted credit quality challenges.

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 showcases strong financial health with robust revenue growth, solid profitability, and effective cost management. The stable balance sheet and manageable debt levels, alongside reasonable equity capitalization, underpin its strong financial position. However, there is room for improvement in cash flow growth, which slightly tempers the overall financial performance score.

Income Statement

Third Coast Bancshares displays strong financial health with improving revenue and profitability. The TTM (Trailing-Twelve-Months) gross profit margin stands at 50.22%, and the net profit margin is 14.91%. The company achieved a notable revenue growth rate of 24.50% from 2023 to 2024, demonstrating robust operational performance. EBIT and EBITDA margins are solid at 19.27% and 20.66% respectively, indicating effective cost management and operational efficiency.

Balance Sheet

The balance sheet of Third Coast Bancshares is stable, with a debt-to-equity ratio of 0.28, highlighting a conservative leverage approach. Return on equity (ROE) is a healthy 10.60%, reflecting strong profitability relative to shareholder equity. The equity ratio is 9.80%, which is reasonable, though there might be room for improvement in terms of equity capitalization. Overall, the company maintains a strong financial position with manageable debt levels.

Cash Flow

Cash flow management is sound, with operating cash flow covering net income, resulting in an operating cash flow to net income ratio of 0.71. The free cash flow to net income ratio is 0.67, indicating effective cash generation from operations. Free cash flow growth has been positive, although not exceedingly high. The company must continue to focus on enhancing free cash flow to ensure long-term financial stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	338.07M	274.08M	160.18M	103.19M	83.55M
Gross Profit	164.77M	140.74M	110.49M	83.20M	61.64M
EBITDA	65.97M	45.56M	25.72M	14.21M	15.69M
Net Income	47.67M	33.40M	18.66M	11.42M	12.12M
Balance Sheet
Total Assets	4.94B	4.40B	3.77B	2.50B	1.87B
Cash, Cash Equivalents and Short-Term Investments	755.54M	475.01M	505.93M	353.30M	226.99M
Total Debt	132.53M	141.71M	129.43M	1.00M	33.88M
Total Liabilities	4.48B	3.98B	3.39B	2.20B	1.75B
Stockholders Equity	460.72M	411.97M	381.78M	299.01M	121.72M
Cash Flow
Free Cash Flow	33.37M	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

• Technical Analysis Sentiment: Positive
• Last Price: 39.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 is above the 20-day moving average (MA) of 35.65, above the 50-day MA of 32.97, and above the 200-day MA of 33.04, indicating a bullish trend. The MACD of 1.17 indicates Positive momentum. The RSI at 65.12 is Neutral, neither overbought nor oversold. The STOCH value of 77.71 is Neutral, 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
FBIZ	78 Outperform	$406.19M	8.68	14.31%	2.21%	8.45%	21.74%
TCBX	77 Outperform	$513.49M	12.72	12.21%	―	10.44%	62.82%
NRIM	73 Outperform	$474.19M	10.74	16.69%	2.93%	27.34%	39.43%
COFS	69 Neutral	$452.82M	24.41	4.37%	3.67%	38.01%	-58.08%
FFIC	60 Neutral	$421.54M	16.43	-5.24%	7.10%	-6.64%	-233.17%
Sector *	58 Neutral	HK$92.81B	5.77	-3.20%	4.92%	5.50%	-56.25%
FFWM	53 Neutral	$411.11M	―	-8.68%	0.20%	3.61%	65.61%

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.

The most recent analyst rating on (TCBX) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Third Coast Bancshares stock, see the TCBX Stock Forecast page.

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.

The most recent analyst rating on (TCBX) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Third Coast Bancshares stock, see the TCBX Stock Forecast page.

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.

The most recent analyst rating on (TCBX) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Third Coast Bancshares stock, see the TCBX Stock Forecast page.

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.

The most recent analyst rating on (TCBX) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Third Coast Bancshares stock, see the TCBX Stock Forecast page.