Q3 EPS Falls to $0.93 as Margin Compresses, Efficiency Ratio Jumps to 63%
TCBX is trading near its 52-week low of $35.73 (14% above the low).
Summary
Third Coast reported Q3 2026 net income of $19.0M, or $0.93 diluted EPS, down from $1.08 in Q2 and $1.03 a year ago. Net interest margin compressed to 3.70% from 3.83% in Q2 and 4.10% a year ago, and the efficiency ratio deteriorated sharply to 63.10% from 56.51%. Results included $3.2M of acquisition-related expenses tied to the pending Great Plains deal; excluding those, adjusted diluted EPS was $1.06. Asset quality softened modestly — nonperforming loans rose to $29.0M (0.53% of loans) on $2.3M of SBA loans placed on nonaccrual. Loan growth was thin at 1.1% sequentially, though deposits rose 1.2% and tangible book value per share edged up to $33.31. The margin and efficiency deterioration is the key negative against a stock trading near $40.76; the Q3 earnings call is scheduled for October 22 at 11:00 a.m. ET.
At the time of this announcement, TCBX was trading at $40.76 on NYSE in the Finance sector, with a market capitalization of approximately $678.9M. The 52-week trading range was $35.73 to $46.36. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: PR Newswire.