Stonegate Updates Coverage on Third Coast Bancshares, Inc. (NYSE: TCBX) 1Q26
DALLAS, TX -- April 24, 2026
DALLAS, TX -- April 24th, 2026 -- Third Coast Bancshares, Inc. (NYSE: TCBX): Stonegate Capital Partners updates their coverage on Third Coast Bancshares, Inc. For 1Q26, Third Coast reported net income of $16.4M, or $1.03/$0.88 basic/diluted EPS, versus $17.9M and $1.21/$1.02 in 4Q25. The linked-quarter decline was primarily driven by approximately $3.3M of pre-tax Keystone-related merger expense, including elevated legal/professional fees and higher compensation tied to retention, sign-on, and discretionary bonuses. Even with that noise, profitability remained solid, with reported ROA of 1.08% and ROTCE of 12.23%; excluding merger expense, management indicated ROA would have been 1.25% and diluted EPS approximately $1.02. In our view, that points to better underlying earnings power than the headline EPS decline alone suggests.
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Key Takeaways:
- Keystone shifts the story from deal close to execution. The merger added meaningful scale, while most cost saves remain ahead and are expected to show up mainly in 2H26.
- Headline EPS was pressured by merger costs, but underlying earnings held up. 1Q26 EPS declined q/q, but excluding Keystone-related merger expense, ROA would have been 1.25% and diluted EPS roughly $1.02.
- Organic growth looks better than reported loan growth suggests. Keystone drove balance sheet growth, but ex-Keystone loan growth was still positive, with unusual early paydowns masking underlying momentum.
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Contacts:
Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com
Source: Stonegate, Inc.
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