Dallas, Texas--(Newsfile Corp. - April 24, 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.

To view the full announcement, including downloadable images, bios, and more, click here.

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.

Click image above to view full announcement.

About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/294215

Source: Reportable, Inc.