Third Coast Bancshares, Inc. (The New York Stock Exchange and NYSE Texas: TCBX, hereinafter referred to as the "Company") today announced its financial results for the third quarter of 2026. Third Coast Bancshares is the bank holding company of Third Coast Bank.

Financial and Operational Highlights for the Third Quarter of 2026

• The average return on assets for the third quarter of 2026, when calculated on an annualized basis, was 1.13%, which is lower than 1.34% in the second quarter of 2026 and 1.41% in the third quarter of 2025. The adjusted average return on assets (excluding GAAP) was 1.29% when calculated on an annualized basis.
• The net interest margin for the third quarter of 2026 was 3.70%, which is lower than 3.83% in the second quarter of 2026 and 4.10% in the third quarter of 2025.
• Net profit for the third quarter of 2026 was $19 million, which corresponds to basic earnings per share of $1.07 and diluted earnings per share of $0.93; in the second quarter of the previous year, these figures were $22 million, $1.25, and $1.08 respectively, and for the third quarter of 2025, they were $18.1 million, $1.22, and $1.03 respectively. After excluding $3.2 million in merger and acquisition-related expenses for the third quarter of 2026, the adjusted net profit (non-GAAP) was $21.6 million, and the adjusted diluted earnings per share were $1.06.
• In the third quarter of 2026, the efficiency ratio was 63.10%, which is higher than 56.51% in the second quarter of 2026 and 53.03% in the third quarter of 2025.
• As of September 30, 2026, gross loans increased to $5.49 billion, higher than the $5.44 billion as of June 30, 2026.
• As of September 30, 2026, the book value per share and the tangible book value per share increased to $36.53 and $33.31 respectively, which is higher than $36.34 and $33.08 on June 30, 2026, as well as higher than $32.25 and $30.91 on September 30, 2025.
• Interest-free demand deposits increased by $78.4 million to $721.2 million, accounting for 12.2% of total deposits, which is higher than the 11.0% as of June 30, 2026.
• On October 7th, the company announced that it had reached a final merger agreement to acquire Great Plains Bancshares and Inc ("Great Plains"), with the latter being the parent company of Great Plains National Bank. Based on the company's closing price as of October 6, 2026, the transaction is valued at approximately $239.6 million. The completion of the transaction is expected in the first quarter of 2027.

Third Coast, founder, chairman, president, and CEO, Bart Caraway stated: "The third quarter reflects the inherent strength of our franchise business, as well as our continued focus on disciplined, customer relationship-driven growth. We have seen healthy lending activities, a continuous improvement in our capital base, stable credit performance, and a new high in tangible book value per share. In addition, the merger agreement with Great Plains is built on the foundation of our strategic advancement and brings together two organizations with complementary strengths and shared values. We believe that this transaction will enable us to create a stronger franchise platform that generates sustainable profitability and long-term value for stakeholders."

Operational Results

Net profit and earnings per share of common stock

In the third quarter of 2026, net profit was $19 million, which is lower than $22 million in the second quarter of 2026 but higher than $18.1 million in the third quarter of 2025. Net profit attributable to common stockholders was $17.8 million, which is lower than $20.8 million in the second quarter of 2026 but higher than $16.9 million in the third quarter of 2025. Compared to the second quarter of 2026, the decrease in net profit was mainly due to reduced earnings from the sale of factoring receivables in the second quarter, as well as increased merger and acquisition-related expenses in the third quarter of 2026. The company's Series A convertible non-cumulative preferred stock ("Series A Preferred Stock") distributed dividends of $1.2 million in each of the quarters ending September 30, 2026, June 30, 2026, and September 30, 2025.

In the third quarter of 2026, the basic earnings per share and diluted earnings per share for common stock were $1.07 and $0.93, respectively; in the second quarter of 2026, they were $1.25 and $1.08, respectively; and in the third quarter of 2025, they were $1.22 and $1.03, respectively. In the third quarter of 2026, the adjusted diluted earnings per share (excluding GAAP) were $1.06, which is higher than $0.98 in the second quarter of 2026.

Net interest yield and net interest income

In the third quarter of 2026, the net interest margin was 3.70%, which is lower than 3.83% in the second quarter of 2026 and 4.10% in the third quarter of 2025. The loan yield in the third quarter of 2026 was 6.95%, also lower than 7.06% in the second quarter of 2026 and 7.79% in the third quarter of 2025. The cost of interest-bearing deposits was 3.49%, which is higher than 3.41% in the second quarter of 2026 but lower than 3.98% in the third quarter of 2025.

In the third quarter of 2026, net interest income amounted to 59.5 million US dollars, which represents a decrease of 1.2% compared to 60.3 million US dollars in the second quarter of 2026, but an increase of 17.1% compared to 50.8 million US dollars in the third quarter of 2025. Interest income for the third quarter of 2026 was 106.7 million US dollars, a 0.7% increase from 106 million US dollars in the second quarter of 2026, and a 15.4% increase from 92.5 million US dollars in the third quarter of 2025. Interest expenses in the third quarter of 2026 were 47.2 million US dollars, which is a rise of 1.5 million US dollars from 45.7 million US dollars in the second quarter of 2026, representing a 3.2% increase; compared to 41.7 million US dollars in the third quarter of 2025, there was a 5.5 million US dollar increase, or a 13.3% increase.

Non-interest income and non-interest expenses

In the third quarter of 2026, non-interest income amounted to $6.3 million, which is lower than $7.7 million in the second quarter of 2026 but higher than $3.6 million in the third quarter of 2025. Compared to the second quarter, the decrease in non-interest income was mainly due to reduced earnings from the sale of factoring receivables, although this was partially offset by an increase in service charges and expenses during the third quarter. Non-interest expenses in the third quarter of 2026 rose to $41.6 million, exceeding $38.4 million in the second quarter of 2026 and $28.9 million in the third quarter of 2025. The increase in expenses was primarily due to merger and acquisition-related costs amounting to $3.2 million. As of September 30, 2026, the company's workforce had decreased to 499 employees, down from 504 as of June 30, 2026.

In the third quarter of 2026, the efficiency ratio was 63.10%, which is higher than 56.51% in the second quarter of 2026 and 53.03% in the third quarter of 2025.

Highlights of the Balance Sheet

Loan Portfolio and Composition

For the quarter ending September 30, 2026, gross loans increased to $5.49 billion, an increase of $57.1 million from June 30, 2026, representing a growth rate of 1.1%; it also increased by $1.33 billion from $4.17 billion at the end of September 2025, with a growth rate of 31.9%. The company completed the securitization of $87.5 million in commercial real estate loans during the third quarter of 2026. Real estate loans were the main source of loan growth this quarter, with an increase of $67.1 million compared to the second quarter; whereas municipal and other loans decreased by $9.2 million from the second quarter.

Asset Quality

As of September 30, 2026, non-performing loans amounted to 29 million US dollars, which is higher than the 27.1 million US dollars on June 30, 2026, and 21.7 million US dollars on September 30, 2025. The increase in non-performing loans in the third quarter was mainly due to 2.3 million US dollars of SBA loans transitioning to a non-interest-bearing status. As of September 30, 2026, the proportion of non-performing loans to total loans was 0.53%, which is higher than 0.50% on June 30, 2026, and slightly higher than 0.52% on September 30, 2025.

In the third quarter of 2026, a credit loss provision of $540,000 was made; as of September 30, 2026, the credit loss provision amounted to $54.4 million, which represents 0.99% of $5.49 billion gross loans. In the second quarter of 2026, a credit loss provision of $2.1 million was made; as of June 30, 2026, the credit loss provision amounted to $53.6 million, which represents 0.99% of $5.44 billion gross loans.

The company recorded net recoveries of $27,000 and $17,000 respectively in the three months ending September 30, 2026, and September 30, 2025.

Deposits and Composition

As of September 30, 2026, the total deposits amounted to 5.92 billion US dollars, representing a 1.2% increase from 5.86 billion US dollars as of June 30, 2026, and a 35.5% increase from 4.37 billion US dollars as of September 30, 2025. The amount of interest-free demand deposits increased from 642.7 million US dollars on June 30, 2026, to 721.2 million US dollars on September 30, 2026, accounting for 12.2% and 11.0% of the total deposits respectively. As of September 30, 2026, demand deposits that earn interest decreased by 141.1 million US dollars compared to June 30, 2026, a decrease of 3.3%; time deposits increased by 126.1 million US dollars, an increase of 14.6%; savings accounts increased by 5.9 million US dollars, an increase of 21.1%.

In the third quarter of 2026, the average deposit cost was 3.09%, which is 4 basis points higher than in the second quarter and 47 basis points lower than in the third quarter of 2025. The increase from quarter to quarter was mainly due to the rise in the interest rate for demand deposits that earn interest.

Performance Teleconference

Third Coast has scheduled a teleconference for Thursday, October 22, 2026, at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time to discuss the third-quarter results of 2026, which will also be broadcast live over the internet. To participate in the teleconference, please call 201-389-0869 at least 10 minutes before it begins and request to be connected to Third Coast Bancshares, Inc. You can also listen online via https :// ir.thirdcoast.bank / events-and-presentations / events. Investors who are unable to listen to the live broadcast can watch the replay before October 29, 2026; the replay number is 201-612-7415 with the password 13757906#. A recording of the webcast will be available on the aforementioned website shortly after the meeting ends and will be stored for 90 days.

Regarding Third Coast Bancshares, Inc.

Third Coast Bancshares, Inc is a bank holding company headquartered in Texas that focuses on commercial banking services. It primarily operates through its wholly-owned subsidiary, Third Coast Bank, in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets. Third Coast Bank was established in 2008 in Hemburgh, Texas, and has 20 branches in the state's four major metropolitan areas. For more information, please visit https:// www.thirdcoast.bank.

Forward-looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, which are subject to risk and uncertainty and are made under the safe harbor provisions of Section 27A of the Revised Securities Act of 1933 and Section 21E of the Revised Securities Exchange Act of 1934. These forward-looking statements reflect the company's current views regarding future events and financial performance, among other matters. The statements frequently use words such as “may,” “should,” “can,” “predict,” “potential,” “believe,” “look forward to,” “is likely to result in,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “forecast,” “will,” and “prospects” or their negative forms, or other similar expressions with future or forward-looking nature. Forward-looking statements are not historical facts, but are based on the company's current expectations, estimates, and forecasts, management's judgment, and certain assumptions, many of which are inherently uncertain and beyond the company's control. Therefore, the company reminds readers that such forward-looking statements do not guarantee future performance and are subject to unpredictable risks, assumptions, and uncertainties. Although the company believes that the expectations reflected in these forward-looking statements as of the date of issuance are reasonable, actual results may differ significantly from those expressed or implied in the forward-looking statements.Important factors that could lead to significant differences between actual results and forward-looking statements include, but are not limited to: interest rate risk and interest rate volatility; overall market conditions and economic trends, as well as the banking industry situation; the company's ability to maintain important deposit relationships; the company's ability to expand or maintain its deposit base; the company's ability to implement expansion strategies; the company's ability to pay dividends on Series A preferred stock; credit risks related to the company's business; economic conditions affecting the real estate market; prepayment risks associated with commercial real estate loans; liquidity risks in the securitization market; operational risks related to securitization asset management; changes in key management personnel; any events, changes, or other circumstances that could cause the final merger agreement between Third Coast and Great Plains to be terminated by one or both parties; the outcome of any legal proceedings that may be initiated against Third Coast or Great Plains; the possibility that the transaction may not be completed as expected due to the failure to obtain required regulatory, shareholder, or other approvals in a timely manner, or at all, as well as other closing conditions (and the risk that such approvals may come with conditions that could adversely affect the expected benefits of the merged company or the transaction); the risk that the benefits resulting from the transaction may not be fully realized or may be realized later than expected, including due to overall economic and market conditions, interest rates and exchange rates, monetary policy, laws and regulations and their enforcement, as well as changes in the competitive environment in the regions and business sectors where Third Coast and Great Plains operate or issues arising therefrom; disruptions to the businesses of both parties during the transaction announcement and completion period; the risk that the integration of the businesses of the parties may be significantly delayed, more costly than expected, or more difficult than expected, or that the parties may not be able to successfully integrate their businesses; the possibility that the transaction completion costs may be higher than expected, including due to unexpected factors or events; reputational risk; and customers of Third Coast or Great Plains.Possible negative reactions from suppliers, employees, or other business partners, including those arising from transaction announcements or completions; Third Coast dilution due to the issuance of additional common shares in connection with the transaction; Third Coast or Great Plains significant adverse changes in financial conditions; management's attention and time being diverted from daily operations and opportunities due to merger and acquisition-related matters; as well as other factors that may affect the future results of Third Coast and Great Plains, including changes in asset quality and credit risk, inability to maintain revenue and profit growth, changes in interest rates and capital markets, inflation, customer borrowing, repayment, investment, and deposit behavior, impacts of technological changes, the extent and timing of such changes, capital management activities, and other actions and reforms by the Federal Reserve Board and legislative and regulatory authorities. For other factors that could lead to significant differences between actual results and those stated in the forward-looking statements, please refer to the company's risk factors contained in the annual 10-K report for the period ending December 31, 2025, filed with the U.S. Securities and Exchange Commission (SEC) on March 4, 2026, as well as other documents submitted by the company to SEC.

The above factors should not be considered exhaustive and should be read in conjunction with other cautionary statements in this press release. If one or more events related to these or other risks and uncertainties occur, or if our underlying assumptions prove to be incorrect, the actual results may differ significantly from our expectations. Therefore, reliance on any such forward-looking statements should not be excessive. Any forward-looking statement is only valid as of the date it is made, and the company assumes no obligation to update or review any forward-looking statement due to new information, future developments, or other reasons. New factors may emerge from time to time, and the company cannot predict which factors will appear. In addition, the company is unable to assess the impact of each factor on its business, nor can it assess the extent to which a single factor or a combination of factors may cause the actual results to differ significantly from the forward-looking statements.

Non-GAAP financial indicators

This press release contains several non-GAAP financial indicators, including tangible common equity, tangible book value per share, ratio of tangible common equity to tangible assets, average return on tangible common equity, adjusted average return on assets (non-GAAP), adjusted average return on common equity (non-GAAP), adjusted average return on tangible common equity (non-GAAP), adjusted net profit (non-GAAP), and adjusted diluted earnings per share (non-GAAP). These supplementary indicators are not required by GAAP and are not presented in accordance with GAAP. For a reconciliation of these non-GAAP financial indicators, please refer to the table at the end of this press release titled “GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Indicators”.

Third Coast Bancshares, Inc and their subsidiaries

GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Indicators (Unaudited)

The company's accounting and reporting policies comply with GAAP (Generally Accepted Accounting Principles in the United States) as well as industry practices in the banking sector. However, the company also evaluates its performance based on certain additional financial indicators discussed in this press release, which are considered non-GAAP financial indicators. Specifically, for internal planning and forecasting purposes, the company examines tangible common equity, tangible book value per share, the ratio of tangible common equity to tangible assets, average return on tangible common equity, adjusted average return on assets (non-GAAP), adjusted average return on common equity (non-GAAP), adjusted average return on tangible common equity (non-GAAP), adjusted net profit (non-GAAP), and adjusted earnings per diluted share (non-GAAP). If a financial indicator excludes or includes amounts that are not accounted for, or that are not excluded or included from the most directly comparable indicators under current US GAAP, or if it is affected by such adjustments, then the company classifies it as a non-GAAP financial indicator. Non-GAAP financial indicators do not include operating and other statistical indicators or ratios, nor do they include statistical indicators that are calculated using solely GAAP financial indicators.

The non-GAAP financial indicators discussed in this press release should not be viewed in isolation, nor should they replace the most directly comparable or other financial indicators calculated according to GAAP. Furthermore, the methods by which the company calculates these non-GAAP financial indicators may differ from those of other companies that report on similarly named indicators. When comparing such non-GAAP financial indicators, it is important to understand how other banking institutions calculate similarly named financial indicators.

Management believes that the following non-GAAP financial indicators are helpful for investors to understand the company's financial condition and operating results:

• Tangible ordinary equity interest. The most directly comparable GAAP financial indicator is total shareholders' equity. The company believes that this indicator is very important for many investors who are concerned with the changes in tangible ordinary equity interest from period to period.
• Tangible book value per share. The most directly comparable GAAP financial indicator is the book value per share. The company believes that this indicator is very important for many investors who are concerned with the changes in book value per share after excluding the impact of intangible assets over time. Goodwill and other intangible assets will increase the total book value, but they will not increase the tangible book value.
• Ratio of tangible ordinary equity to tangible assets. The most directly comparable GAAP financial indicators are total shareholders' equity, total assets, and the ratio of total shareholders' equity to total assets. The company believes that this indicator is very important for many investors who are concerned with the period-over-period changes in tangible ordinary equity to tangible assets after excluding the impact of intangible assets. Goodwill and other intangible assets will increase both total shareholders' equity and assets, but they do not increase tangible ordinary equity or tangible assets.
• Average Return on Tangible Ordinary Equity. The most directly comparable financial indicator for GAAP is average shareholders' equity, and the most directly comparable return rate indicator is the average return on tangible ordinary equity. The company believes that this indicator is very important for many investors who are concerned with the period-to-period changes in the average return on tangible ordinary equity after excluding the impact of intangible assets. Goodwill and other intangible assets will increase average shareholders' equity, but they do not increase tangible ordinary equity.
• Adjusted average return on assets (not GAAP). The most directly comparable financial indicator to this is the average return on assets. The company believes that this indicator is important for many investors who are concerned with the changes in adjusted average return on assets from period to period. The purpose of the adjustment is to exclude unusual or unexpected recurring significant revenues or expenses within the year, in order to reduce distortions in the ratio.
• Adjusted average return on common equity (non-GAAP). The most directly comparable financial indicator for this is the average return on common equity. The company believes that this indicator is very important to many investors who are concerned with the changes in the adjusted average return on common equity from period to period. The purpose of the adjustment is to exclude unusual or unexpected recurring significant revenues or expenses during the year, in order to reduce distortions in the ratio.
• After adjustment, the average return on tangible common equity (excluding GAAP) is as follows. The most directly comparable financial indicator for this is the average return on common equity. The company believes that this indicator is very important to many investors who are concerned with the period-over-period changes in the adjusted average return on tangible common equity after excluding the impact of intangible assets. Goodwill and other intangible assets can increase average shareholders' equity, but they do not increase the adjusted tangible common equity. The purpose of this adjustment is also to exclude any unusual or unexpected recurring revenues or expenses during the year, in order to reduce distortions in the ratio.
• Adjusted net profit (non-GAAP). The most directly comparable financial indicator to this is GAAP, which is net profit. The company believes that this indicator is very important for many investors who are concerned with the changes in adjusted net profit from period to period. The purpose of the adjustment is to exclude unusual or unexpected recurring significant revenues or expenses within the year, in order to reduce distortions in the total amount.
• Adjusted diluted earnings per share (non-GAAP). The most directly comparable financial indicator for this is diluted earnings per share. The company believes that this indicator is important for many investors who are concerned with the changes in adjusted diluted earnings per share from period to period. The purpose of the adjustment is to exclude unusual or unexpected recurring significant revenues or expenses within the year, in order to reduce distortions in the ratios.

The calculation of the aforementioned financial indicators that are not GAAP is as follows:

Does not constitute an offer or invitation

This communication is related to the proposed merger transaction between Third Coast and Great Plains. This communication does not constitute an offer to sell any securities, an invitation to purchase any securities, nor does it constitute a solicitation for any votes or approvals; securities sales shall not be conducted in any jurisdiction where such an offer, solicitation, or sale would be illegal prior to registration or qualification under the securities laws of that jurisdiction. Securities may not be offered unless through a prospectus that complies with the requirements of Article 10 of the Securities Law and in other ways permitted by applicable law.

Important supplementary information and methods of obtaining it

Third Coast intends to submit a registration statement for Form S to SEC, which will include a joint power of attorney from Great Plains and Third Coast. This document also constitutes the prospectus for Third Coast. Third Coast will also submit other documents to SEC regarding the proposed transaction. The final version of the joint power of attorney/prospectus will also be sent to the shareholders of Great Plains and Third Coast to seek their approval for the proposed transaction.

Investors and security holders are urged to read the registration statement dated Form S-4 and the accompanying power of attorney/prospectus as soon as they become available, as well as any other relevant SEC documents related to this transaction or incorporated by reference into the registration statement and power of attorney/prospectus dated Form S-4. These documents will contain important information regarding Third Coast, Great Plains, the transaction, and related matters.

The documents submitted by Third Coast to SEC can be obtained for free on the website SEC at www.sec.gov. In addition, the documents submitted by Third Coast can also be obtained for free on their website at https :// ir.thirdcoast.bank / financials / sec-filings. Alternatively, after the documents become available, they can be requested for free in writing from Third Coast Bancshares and Inc; the address is 1800 West Loop South Suite 875, Houston TX 77027, with Investor Relations as the recipient, or by calling (713) 960-1300.

Parties involved in this transaction

Third Coast, Great Plains and their respective directors and executives, as well as other management personnel and employees of both parties, may be considered participants in soliciting proxy votes from the shareholders of Great Plains and Third Coast in the proposed transaction. Information regarding the directors and executives of Third Coast can be found in the company's annual 10-K report for the year ending December 31, 2025, submitted to SEC on March 4, 2026, and in the proxy statement for the 2026 annual meeting of shareholders submitted to SEC on April 16, 2026. These documents are available for free from the websites of Third Coast or SEC in the manner mentioned above. If there have been any changes to the securities held by the directors and executives of Third Coast since the number specified in the company's 2026 annual meeting of shareholders proxy statement, such changes have been or will be reflected in the 4 Beneficial Ownership Change Statements submitted to SEC. Further information regarding the interests of these participants and other individuals who may be considered transaction participants will be listed when the joint proxy statement/prospectus and other relevant materials are submitted to SEC.

Contact Information

Ken Dennard / Natalie Hairston

Dennard Lascar Investor Relations

(713) 529-6600

info @ dennardlascar.com