Key Points
Noninterest-bearing deposits grew 60.3% over the past 12 months.
Third Coast Bancshares announced a merger with Great Plains Bancshares.
Management sold $87 million of loans through its securitization program.
On its third-quarter 2026 earnings call, held on Oct. 22, 2026, Third Coast Bancshares (NYSE:TCBX) reported adjusted net income, which excludes one-time merger expenses, of $21.6 million. The bank continues to shift toward low-cost core deposits. It is expanding into new regional markets to build long-term earning power.
Three things management said stand out for long-term investors.
1. Core Deposit Growth Is Driving Lower Funding Costs
Noninterest-bearing demand deposits, which are customer checking accounts that pay no interest, grew sharply over the past year and ended the quarter at $721 million. Building low-cost core funding improves net interest margins and reduces reliance on expensive wholesale deposits.
Over the past 12 months, noninterest-bearing deposits increased 60.3% compared with 35.5% growth in total deposits. For us, that's really about continuing to deepen customer relationships and build a stronger core funding base.
-- Bart Caraway, Founder, Chairman, President and Chief Executive Officer
2. Pending Great Plains Merger Creates a $9 Billion Regional Footprint
Third Coast Bancshares agreed to merge with Great Plains Bancshares to gain branch locations across Dallas and Oklahoma. The transaction expands the bank's scale and creates cross-selling opportunities for commercial banking products.
The combination will expand our presence in Dallas, establish our entry into Oklahoma and is expected to create a franchise of approximately $9 billion in assets.
-- Bart Caraway, Founder, Chairman, President and Chief Executive Officer
3. Loan Securitizations Optimize Balance Sheet Capital and Liquidity
The bank sold $87 million in loans through its securitization program, a process of packaging and selling loans to outside investors to free up balance sheet capacity, during the quarter. This program helps management control credit risk while funding organic loan growth.
As we discussed last quarter, securitization has become a part of our broader balance sheet and capital management strategy, and we expect to close a new securitization in the fourth quarter as well.
-- John McWhorter, Chief Financial Officer
Looking Ahead
Core momentum is accelerating across commercial markets as deposit growth reduces funding friction.
We feel good about the progress we're making, both in performance of the core bank today and in what we're building for the future.
-- Bart Caraway, Founder, Chairman, President and Chief Executive Officer
Targeted hiring and the Great Plains integration offer scale and core deposit stability, with leadership focused on pricing discipline and asset quality.
And as the banking landscape continues to evolve, we believe there is meaningful value in building a Texas-headquartered bank of scale with the talent, capabilities and relationship banking culture to compete.
-- Bart Caraway, Founder, Chairman, President and Chief Executive Officer
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.