Third Coast Bancshares reported third quarter 2026 results characterized by strong organic loan growth and an improved adjusted EPS of $1.06, which exceeded analyst expectations. However, total revenue of $65.8 million fell slightly short of estimates as net interest margin (NIM) compressed to 3.70% due to rising interest expenses and lower loan yields. Results were further impacted by $3.2 million in acquisition-related expenses tied to the recently announced merger with Great Plains Bancshares.
Key Highlights
- Net interest margin contracted to 3.70% from 3.83% in the prior quarter, driven by a 4 basis point increase in deposit costs and an 11 basis point decline in loan yields.
- Gross loans grew to $5.49 billion, representing a 31.9% increase year-over-year, supported by the securitization of $87.5 million in commercial real estate loans.
- Funding mix improved as noninterest-bearing demand deposits rose by $78.4 million to 12.2% of total deposits, up from 11.0% in the second quarter.
- The company announced a definitive $239.6 million all-stock merger with Great Plains Bancshares, expected to close in the first quarter of 2027.