Stonegate Capital Partners has updated its coverage on Third Coast Bancshares, Inc. (NYSE: TCBX), following the company's first quarter 2026 earnings report. The Dallas-based bank holding company reported net income of $16.4 million, or $1.03 per diluted share, compared to $17.9 million, or $1.02 per diluted share, in the fourth quarter of 2025. The sequential decline was primarily driven by approximately $3.3 million in pre-tax merger expenses related to the Keystone acquisition, including elevated legal and professional fees, as well as higher compensation costs tied to retention and bonuses.
Despite these one-time costs, Stonegate notes that profitability remained strong, with a reported return on assets (ROA) of 1.08% and a return on tangible common equity (ROTCE) of 12.23%. Excluding the merger expenses, management estimates that ROA would have been 1.25% and diluted earnings per share approximately $1.02. According to Stonegate, this suggests that the underlying earnings power is stronger than the headline EPS decline might indicate.
The Keystone merger, which closed during the quarter, marks a strategic shift from deal execution to integration. Stonegate highlights that the merger added meaningful scale to Third Coast, while most cost savings are expected to materialize in the second half of 2026. Organic loan growth, excluding Keystone, remained positive, though it was partially masked by unusual early paydowns. Stonegate views this as a sign of underlying momentum that may not be immediately apparent from reported balance sheet figures.
For more details, the full announcement is available here.
Stonegate Capital Partners, headquartered in Dallas, Texas, is a capital markets advisory firm that provides investor relations, equity research, and institutional investor outreach services. Its affiliate, Stonegate Capital Markets, offers investment banking and capital raising services for public and private companies.
