Stonegate Capital Partners has updated its coverage on Third Coast Bancshares, Inc. following the company's fourth quarter 2025 financial results. For the quarter, Third Coast reported net income of $17.9 million, compared to $18.1 million in the third quarter of 2025 and $13.7 million in the fourth quarter of 2024. This translated to basic earnings per share of $1.21 and diluted earnings per share of $1.02.
The modest quarter-over-quarter decline was primarily driven by merger-related legal and professional expenses along with higher salaries and benefits costs. These increases were partially offset by higher net interest income and an increase in non-margin loan fees. Stonegate anticipates that Third Coast will continue prioritizing operational efficiency, though near-term expense levels may remain somewhat volatile through the early stages of Keystone's integration. The merger remains on track according to the update.
Third Coast maintained a steady net interest margin of 4.10% during the quarter, indicating stability in the company's core lending profitability despite the integration challenges. The company also increased the low end of its deposit growth range, suggesting confidence in its ability to gather customer deposits in a competitive banking environment. For business and technology leaders monitoring financial sector performance, these metrics provide insight into how regional banks are managing both organic growth and strategic acquisitions.
The full announcement, including downloadable images and additional materials, is available through Stonegate's coverage portal. Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Their affiliate, Stonegate Capital Markets, provides investment banking, equity research and capital raising services for both public and private companies.
For banking industry observers, Third Coast's performance illustrates the balancing act regional financial institutions face when pursuing growth through acquisition while maintaining operational efficiency. The company's ability to maintain its net interest margin during integration suggests effective management of its core lending operations. The increased deposit growth target indicates strategic focus on funding stability as the company expands its footprint and service offerings through the Keystone integration.
