Third Coast Q3 EPS Falls to $0.93 as Margin Compresses and Merger Costs Bite
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 on margin compression and $3.2M of merger costs; adjusted EPS was $1.06. Nonperforming loans ticked up to $29.0M.
Key Events · Earnings and Guidance · TCBX
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Q3 EPS Declines to $0.93
Net income of $19.0M, or $0.93 diluted EPS, versus $1.08 in Q2 2026 and $1.03 in Q3 2025; basic EPS was $1.07.
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Margin Compression and Merger Costs
Net interest margin fell to 3.70% from 3.83% in Q2, and $3.2M of acquisition-related expenses pushed the efficiency ratio to 63.10% from 56.51%; adjusted EPS was $1.06.
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Nonperforming Loans Rise
Nonperforming loans increased to $29.0M (0.53% of total loans) from $27.1M at June 30, 2026, primarily on $2.3M of SBA loans placed on nonaccrual; allowance held at 0.99% of loans.
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Balance Sheet Growth Continues
Gross loans grew to $5.49B and deposits to $5.92B as of September 30, 2026; tangible book value per share rose to $33.31 from $33.08.
Analysis · TCBX · Finance
Third Coast's Q3 net income of $19.0M ($0.93 diluted EPS) fell from $1.08 in Q2 and $1.03 a year ago, with the shortfall driven by a 13-basis-point net interest margin compression to 3.70% and $3.2M of acquisition-related expenses tied to the pending Great Plains deal. Excluding those costs, adjusted EPS was $1.06, so the core franchise held up better than the GAAP headline suggests. Credit quality is the item to track: nonperforming loans rose to $29.0M (0.53% of loans) from $27.1M, driven by $2.3M of SBA loans placed on nonaccrual, while the efficiency ratio jumped to 63.10% from 56.51%. The results land two weeks after the Great Plains merger announcement and ahead of the October 22 investor call, where management will likely be pressed on margin trajectory and merger integration costs.
How filings like this one have moved
In the 30 days to Oct 21, 2026, 28.9% of the 1511 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.54%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, 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 filing was assessed with negative market sentiment and an importance score of 7 out of 10.