Third Coast Bancshares has significantly expanded its scale, surpassing $6 billion in total assets following the successful completion of its merger with Keystone Bancshares. This strategic move consolidates the bank’s position in the high-growth Austin, Texas market. Coming off a record performance in 2025, the institution is now positioned to pursue continued organic expansion.
Robust Financial Performance Provides Foundation
The merger was executed against a backdrop of substantially improved profitability. For the full year 2025, Third Coast reported a net income of $66.3 million, a notable increase of approximately 39% from the prior year’s $47.7 million. The fourth quarter alone yielded earnings of $17.9 million, equivalent to diluted earnings per share of $1.02.
A key driver was the net interest margin, which remained stable at 4.10% in the final quarter. Operational efficiency also remained solid, with a cost-income ratio of 57.90%. Management has indicated that future profitability will be supported by a continuation of disciplined lending practices. These were reinforced in 2025 by strategic measures to mitigate risk within the commercial real estate portfolio.
Key Financial Metrics:
* Total Assets Post-Merger: Over $6 billion
* Loan Portfolio: $4.39 billion (a 10.8% year-over-year increase)
* 2025 Net Income: $66.3 million
* Q4 Net Interest Margin: 4.10%
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Integration Focuses on Austin and Central Texas
Effective February 1, the operational business of Keystone Bank has been fully integrated into Third Coast’s structure. The acquisition adds three new branches, targeting the growth corridors around Austin, Ballinger, and Bastrop.
The leadership team reflects this expansion. Jeffrey A. Wilkinson, former CEO of Keystone, has joined the Third Coast Bancshares board and will assume the role of Chairman for the Austin market. The board itself has been expanded to 16 members to incorporate the new expertise. The complete technical migration of customer accounts is scheduled for finalization by summer 2026.
Outlook for 2026: Steady Growth and Integration Milestones
For the current fiscal year, Third Coast is planning for moderate but consistent growth. Management is targeting quarterly loan growth in the range of $75 to $100 million. A core focus will be maintaining conservative underwriting standards to preserve a stable capital base throughout this expansion phase.
The upcoming technical system conversion for acquired customers, set for completion in the summer of 2026, represents the next critical milestone in the integration process. This step will finalize the operational merger and fully unite the customer bases under the Third Coast brand.
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