Third Coast Bancshares, Inc.

Welcome to the Third Coast Bank Shares First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Natalie Harrison, Investor Relations for Third Coast Bank Shares. Thank you. You may begin.

Thank you, Operator, and good morning, everyone. We appreciate you joining us for Third Coast Bank Share's conference call and webcast to review our first quarter 2025 results. With me today is Bart Carraway, Chairman, President, and Chief Executive Officer, John McWhorter, Chief Financial Officer, and Audrey Duncan, Chief Credit Officer. First, a few housekeeping items. There will be a replay of today's call, and it will be available by webcast on the investor section of our website at ir.thirdcoast.bank. There will also be a telephonic replay available until May 1st, and more information on how to access these replay features was included in yesterday's earnings release. Please note that information reported on this call speaks only as of today, April 24th, 2025. and therefore you were advised that any time-sensitive information may no longer be accurate as of the time of any replay listing or transcript reading. In addition, the comments made by management during this conference call may contain forward-looking statements within the meaning of the United States federal securities laws. These forward-looking statements reflect the current views of management. However, various risks, uncertainties, and contingencies could cause actual results, performance, or achievements to differ materially from those expressed in the statements made by management. The listener or reader is encouraged to read the annual report on Form 10-K that was filed on March 5, 2025, to better understand those risks, uncertainties, and contingencies. The comments made today will also include certain non-GAAP financial measures, additional details and reconciliation to the most directly comparable GAAP financial measures, were included in yesterday's earnings release, which can be found on the Third Coast website. Now I would like to turn the call over to Third Coast Chairman, President, and CEO, Mr. Bart Carraway. Bart?

Good morning, everyone, and thank you, Natalie. I'll start by sharing the key points from our earnings release. Following my remarks, John will discuss the financials, and Audrey will review our credit quality. Finally, I'll provide our outlook for the remainder of 2025. The results of the first quarter showcase the strength of our team and the effectiveness of our strategic planning. This is largely due to our well-defined priorities, which include disciplined loan growth, robust credit management practices, improved operational efficiencies, and the ongoing commitment to increasing shareholder value. First, early in the second quarter, we announced that Third Coast, had successfully executed a significant commercial real estate loan securitization. This transaction provides us with increased flexibility in managing our balance sheet and capital ratios and generates fee income that will positively impact our net interest margin in the second quarter. We believe the securitization transaction exemplifies our forward-thinking approach to capital management by positioning the company to support future loan growth while maintaining a prudent risk profile. By converting a portion of our loan portfolio into marketable securities, we have not only reduced our concentration in commercial real estate, a key focus for regulators and source of potential risk, but also improved our risk-based capital ratios as the securitization allows us to redeploy capital more effectively into new lending opportunities. This proactive step enhances our liquidity and enables us to manage our loan portfolio dynamically, responding to shifts in loan demand or economic conditions without compromising our credit standards. Furthermore, the structure and ongoing management of the securitization ensure that we maintain rigorous oversight of our credit quality, as required by regulatory guidance, and that we continue to meet the evolving needs of our customers and communities. Additionally, our proactive asset management strategies focused on reducing non-performing loans and efficiently transitioning selected assets to other real estate owned continue to deliver positive results as evidenced by the ongoing improvement in our already strong credit quality. While Audrey will provide more specifics, I just want to emphasize our continued confidence in the company's credit risk strategies. We are committed to maintaining a healthy balance sheet while promoting long-term sustainable growth. Another high point is our net interest margin, which improved nine basis points in the first quarter to 3.80%. While John will provide more detailed financials, I want to underline that our commitment to maximizing returns through informed decision-making, cost awareness, and adaptability. Lastly, but certainly not least, We are committed to prioritizing enhanced shareholder value, which is demonstrated by our continuous rise in book value and tangible book value. We achieved growth of 4.4% and 4.7% respectively over the prior quarter. And when compared to the same period last year, we achieved growth of 14.3% and 15.2% respectively. Overall, I am very pleased with the results of the first quarter. Our team has continued to show remarkable focus and discipline in executing the company's strategic priorities, which has allowed us to sustain this upward momentum. With our clearly defined objectives and such a talented team, we are well positioned for future success. I'm confident that we will continue to deliver exceptional value in the upcoming quarters. With that, I'll turn it over to John.