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what it is
Third Coast lends money to small and mid-sized businesses, gathers deposits, and sells the basic banking tools companies need to function.
how it gets paid
Last year Third Coast Banc made $195M in revenue. commercial and industrial loans was the main engine at $76M, or 39% of sales.
why it's growing
Revenue grew 21.4% last year. Revenue rose 181% vs. prior year to $143 million.
what just happened
The quarter that mattered showed revenue hitting $143M and EPS reaching $2.77, which is huge growth against a much smaller base.
At a glance
B balance sheet — gets the job done, barely
65/100 earnings predictability — reasonably predictable
11.4x trailing p/e — the market's not buying it — or you found a deal
$2.78 fy2024 eps est
$6M fy2024 rev est
xvary composite: 62/100 — average
What they do
Third Coast lends money to small and mid-sized businesses, gathers deposits, and sells the basic banking tools companies need to function.
This is a relationship bank, not an app with a logo. It has 18 branches across Greater Houston, Dallas-Fort Worth, and Austin-San Antonio, plus 1 in Detroit, Texas, serving local businesses that usually want a banker who answers the phone. With 369 employees and a footprint built since 2008, your edge here is proximity: bigger banks have scale, but local lenders can move faster when a business needs a working-capital line.
How they make money
$195M
annual revenue · their business grew +21.4% last year
commercial and industrial loans
$76M
commercial finance and equipment loans
$43M
deposit and treasury services
$29M
consumer and online banking fees
$20M
other banking services
$27M
The products that matter
business loans and operating accounts
Commercial Banking
core engine behind a $201.3M revenue bank
this is the main earning machine. the public snapshot does not give you a clean standalone revenue line here, but the bank-level profit tells you the core franchise is doing the heavy lifting.
core driver
lending to larger business clients
Corporate Banking
expansion push after oct 2025
management added Houston corporate banking leadership after the Oct 2025 Keystone deal. if that move works, you should see better loan growth without worse credit quality. you want both, not just the first one.
execution watch
consumer deposits and branch relationships
Retail Banking
funding base behind $166M net interest income
deposits are the raw material. a bank that earns $166M of net interest income lives and dies by what those deposits cost versus what its loans earn.
funding matters
Key numbers
$2.78
fy2024 eps est
$6M
fy2024 rev est
11.4x
trailing p/e
n/a
dividend yield
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 55 / 100
- long-term debt $112M (15% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for TCBX right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The quarter that mattered showed revenue hitting $143M and EPS reaching $2.77, which is huge growth against a much smaller base.
Revenue rose 181% vs. prior year to $143 million, while EPS climbed 169% to $2.77, based on the SEC-sourced figures provided. Quarterly EPS also improved through 2024 from $0.62 in Q1 to $0.79 in Q4, which says the year got stronger as it went.
$143M
revenue
$2.77
eps
+181%
revenue growth
the number that mattered
$143 million matters because it is 73% of the company's full-year $195 million revenue, which tells you the reported quarter was unusually large and worth checking closely.
source: company earnings report, 2026
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What could go wrong
the risk is not abstract. this stock is leaning on one fact — a 30.6% net margin at a bank whose revenue is still mostly spread income. the Keystone deal adds another moving part right when that margin has to stay convincing.
med
margin compression
A 30.6% net margin is doing a lot of work here. If deposit costs rise, loan yields fall, or both, the whole premium story weakens quickly.
Impact: if net margin falls from 30.6% to 25% on the same $201.3M revenue base, annual profit drops from $61.5M to about $50M. That is the kind of math that rerates bank stocks.
med
Keystone integration execution
The Oct 2025 Keystone merger can add scale or add friction. If costs stay elevated, systems do not settle, or customers walk, the deal turns into dilution wearing a tie.
Impact: the market will not wait for a long post-merger grace period. If you do not see cleaner earnings power from here, the acquisition case starts to unravel.
med
too much dependence on spread income
$166M of net interest income versus $29M of non-interest income tells you diversification is limited. When the spread business gets squeezed, there is not much else here to carry the quarter.
Impact: you are not buying a bank with a large fee cushion. You are buying a lender that still lives mostly on its balance-sheet economics.
med
valuation premium without structural protection
The stock trades at 14.4x cash flow versus 12.8x for peers. That is not wild. It does mean you are already paying for better-than-average economics to stay better than average.
Impact: if the bank starts looking ordinary, the multiple has room to look ordinary too.
So what: this is not a balance-sheet survival story. It is a profitability durability story. If you held through the Keystone deal, that is the lens to keep using.
source: institutional data · regulatory filings · risk analysis
Pay attention to
key metric
net margin versus last 12 months
30.6% is the number holding this story together. If that starts sliding toward 25%, the valuation argument gets thinner fast.
calendar
Q1 2026 earnings
Estimated report date: Apr 22, 2026. Watch net interest income, funding costs, and whether post-merger expenses start coming down.
trend
Keystone merger follow-through
The first full stretch after the Oct 2025 deal should tell you whether management bought scale or bought itself more operational work.
risk
loan growth quality in Houston
A new corporate banking push can lift revenue. It can also hide looser lending if growth becomes the headline management wants you to notice.
Analyst rankings
earnings predictability
65 / 100
in human-speak, analysts think the earnings base is decent but not clean enough for you to trust blindly.
risk rank
2
That puts it on the safer side of the market. Safe does not mean protected if bank spreads roll over after a merger.
source: institutional data
Institutional activity
institutional ownership data for TCBX is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$38
current price
n/a
target midpoint · n/a from current
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