Third Coast Bancshares, Inc. reported fourth quarter 2025 net income of $17.9 million, according to coverage updated by Stonegate Capital Partners. This represents a modest decline from $18.1 million in the third quarter of 2025 but shows improvement from $13.7 million in the fourth quarter of 2024. The company's basic earnings per share stood at $1.21, with diluted earnings per share at $1.02 for the quarter.
The sequential decline in net income 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 Capital Partners anticipates that the company will continue prioritizing operational efficiency, though near-term expense levels may remain somewhat volatile during the early stages of Keystone's integration process.
Third Coast Bancshares maintained a steady net interest margin of 4.10% during the quarter, indicating stability in the company's core lending operations. The company also increased the low end of its deposit growth range, suggesting confidence in its ability to attract and retain customer deposits despite the ongoing integration challenges. According to Stonegate's analysis, the merger remains on track, with the firm providing ongoing coverage of the company's performance through its research services.
For investors and industry observers, these results highlight the financial impact of merger integration activities on regional banking institutions. The modest decline in quarterly earnings despite increased expenses demonstrates Third Coast's ability to generate revenue growth through net interest income and fee-based services. The steady net interest margin suggests the company has maintained pricing discipline in its lending operations, which is particularly important in the current interest rate environment.
The increased deposit growth expectations indicate management's confidence in the company's ability to fund future lending activities, a critical factor for regional banks competing in today's financial landscape. As Third Coast continues integrating Keystone, market participants will be watching for improvements in operational efficiency and expense management. The full announcement, including downloadable images and additional information, is available through Stonegate Capital Partners' website.
