Third Coast Bancshares Q2 EPS hits record on sale gains

Overview

• Texas commercial bank's Q2 diluted EPS rose to record high, net income increased yr/yr

• Net interest income for Q2 climbed 22% yr/yr, net interest margin improved from prior quarter

• Company booked $3.5 mln gain from sale of Third Coast Commercial Capital assets

Outlook

• Company did not provide specific guidance or forecasts for the current or future periods

Result Drivers

• LOAN GROWTH - Net interest income rose due to an increase in loans, particularly commercial and industrial loans

• GAIN ON ASSET SALE - Noninterest income increased mainly from a $3.5 mln gain on sale of factored receivables

• LOWER DEPOSIT COSTS - Cost of interest-bearing deposits declined, supporting net interest margin improvement

Company press release: ID:nPn79H1NPa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Third Coast Bancshares Inc is $44.00, about 9.8% above its July 21 closing price of $40.07

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

• July 21 - KeyCorp Q2 net interest income rises on lower deposit costs

• July 21 - Southern First Bancshares' Q2 profit rises on loan growth and margin expansion

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)