Earnings call transcript: Third Coast Bancshares tops Q3 2026 EPS forecast

Third Coast Bancshares reported adjusted third-quarter 2026 earnings of $1.06 per share, surpassing Wall Street's forecast of $1.00. Revenue stood at $65.86 million, slightly below the estimated $66.83 million. Net income was $19 million, or $0.93 per share, after $3.2 million in merger-related expenses. Shares traded at $40.10, down 1.62% from the prior close of $40.76.

Despite revenue missing forecasts by 1.45%, adjusted EPS of $1.06 beat estimates by 6%. Net interest income rose 17.1% to $59.5 million, while tangible book value per share hit a record $33.31. The company expects net interest margin to improve to about 3.80% in Q4. Management announced a merger with Great Plains Bancshares, which would create a $9 billion asset franchise.

The quarter reflected solid core growth, with net interest income up from $50.8 million a year earlier, driven by loan growth and a larger balance sheet. The bank's core business remained healthy, benefiting from a diversified customer base and strong credit quality. Non-performing loans were 0.53% of total loans, and net recoveries were solid for the third straight quarter.

Adjusted EPS of $1.06 was 6% above the forecast, while reported EPS fell to $0.93 due to merger-related costs. The company's merger with Great Plains Bancshares is expected to close between February 1 and April 1, 2027.