Stonegate Capital Partners has updated its coverage on Third Coast Bancshares, Inc. (NYSE: TCBX), following the company's first quarter 2026 earnings report. The announcement provides key insights into the bank's performance amid the integration of its Keystone merger, which closed in the quarter.
For the first quarter of 2026, Third Coast reported net income of $16.4 million, or $1.03 per basic share and $0.88 per diluted share, compared to $17.9 million, or $1.21 per basic share and $1.02 per diluted share, in the fourth quarter of 2025. The linked-quarter decline was primarily driven by approximately $3.3 million in pre-tax Keystone-related merger expenses, including elevated legal and professional fees, as well as higher compensation tied to retention, sign-on, and discretionary bonuses.
Despite these costs, the company's profitability remained solid. Reported return on assets (ROA) was 1.08%, and return on tangible common equity (ROTCE) was 12.23%. Excluding merger expenses, management indicated that ROA would have been 1.25% and diluted earnings per share approximately $1.02. According to Stonegate, this points to better underlying earnings power than the headline EPS decline alone suggests.
The Keystone merger shifts the narrative from deal closure to execution, adding meaningful scale to Third Coast. Most cost savings from the merger are still ahead and are expected to materialize primarily in the second half of 2026. Organic loan growth also appears stronger than reported figures suggest. While Keystone drove balance sheet growth, ex-Keystone loan growth remained positive, with unusual early paydowns masking underlying momentum.
For more details, readers can view the full announcement, including downloadable images and bios, here.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), offers a full spectrum of investment banking, equity research, and capital raising for public and private companies.
