Third Coast Bancshares, Inc. reported net income of $17.9 million for the fourth quarter of 2025, according to coverage updated by Stonegate Capital Partners. This represents a modest decline from $18.1 million in the third quarter of 2025 but shows improvement from $13.7 million in the same period a year earlier. The company's basic and diluted earnings per share were $1.21 and $1.02 respectively for the quarter.
The quarter-over-quarter decrease was primarily attributed to merger-related legal and professional expenses along with higher salaries and benefits costs. These expenses were partially offset by higher net interest income and an increase in non-margin loan fees. The company maintained a steady net interest margin of 4.10% during the quarter, indicating stability in its core lending operations despite the transitional period.
Third Coast Bancshares has increased the low end of its deposit growth range, signaling confidence in its funding base expansion. The merger with Keystone remains on track according to the company's reporting, though Stonegate anticipates that near-term expense levels may remain somewhat volatile through the early stages of Keystone's integration process. The company is expected to continue prioritizing operational efficiency as it navigates this transitional phase.
This financial reporting matters because it provides insight into how regional banks are managing post-merger integration while maintaining core profitability metrics. The stability of the net interest margin at 4.10% suggests Third Coast has maintained pricing discipline despite competitive pressures in the banking sector. For investors, the increased deposit growth range indicates potential for expanded lending capacity and revenue generation in future periods.
The implications extend beyond Third Coast Bancshares to the broader regional banking industry, which has seen significant consolidation activity. Successful integration of Keystone could position Third Coast for improved scale and efficiency, while challenges in managing merger-related expenses could signal difficulties other institutions might face during similar transitions. The company's performance during this period will be closely watched as an indicator of how well mid-sized banks can execute growth through acquisition strategies.
For more detailed financial information and analysis, Stonegate Capital Partners provides comprehensive coverage through their research platform at https://www.stonegateinc.com. The firm's affiliate, Stonegate Capital Markets, offers investment banking and equity research services for public and private companies across the financial sector.
