The following is a summary of the Third Coast Bancshares, Inc. (TCBX) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Reported a quarterly net interest income of $38.9 million, up 57.8% from Q4 2021.

• Achieved a net income of $10.8 million for the second quarter.

• Delivered a record diluted earnings per share of $0.63 and a return on equity of 10.5%.

• Non-interest expenses continued to decrease for the third consecutive quarter; now at a non-interest expense to average earning asset ratio of 2.39%.

• Efficiency ratio improved to 61.4% from 75.3% in Q4 2021.

Business Progress:

• Opened new branch locations in Austin and the Woodlands, Texas, expanding to 18 branches in total.

• Moved from a 1.4% asset sensitive to a 0.9% liability sensitive position reflecting strategic balance sheet adjustments for anticipated rate movements.

• Improved the deposit mix by adding more non-interest bearing deposits, enhancing financial stability.

• Aided by employees' dedication and innovation, continuing an organizational focus on operational excellence and customer service quality.

Opportunities:

• Outlook for loans remains robust with expected growth in the $50 million to $100 million range per quarter, driving net interest income growth which should exceed 10%.

• Anticipate non-interest expense growth of less than 5%, suggesting increased operational leverage and profitability in upcoming quarters.

Risks:

• Following Hurricane Beryl, the bank faced operational disruptions, including power outages and communication difficulties in several Texas markets, raising near-term expense uncertainties and operational challenges.

More details: Third Coast Bancshares IR

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