Third Coast Bancshares posted a strong second quarter with record diluted earnings per share, net interest income rising 12.4% to $60.3 million, and net interest margin expanding to 3.83%, above management's post-Keystone target. Total loans increased by approximately $185 million, driven almost entirely by a $187 million rise in commercial and industrial lending, while total deposits grew $140.4 million and the average cost of deposits fell 12 basis points. The efficiency ratio improved sharply to 56.5% from 66.1%, and the company completed the sale of Third Coast Commercial Capital for total consideration of about $27.5 million, generating a $3.5 million gain. Credit quality remained healthy, with non-performing loans declining to 0.55% of total loans and the allowance for credit losses edging up to 0.99% of total loans. Management guided for quarterly loan growth of $75 million to $125 million and indicated the net interest margin could be flat to slightly higher in the third quarter before securitization benefits.
Third Coast Bancshares, Inc.Record Q2 earnings, margin expansion, loan growth, deposit cost reduction, and efficiency improvement all point to strong financial performance.