Third Coast Bancshares, Inc.

reported on this call speaks only as of today, January 22, 2026, and therefore you are advised that time-sensitive information may no longer be accurate as at the time of any replay listening or transcript reading. In addition, the comments made by management during this conference call may contain forward-looking statements within the meeting 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 founder, chairman, president, and CEO, Mr. Bart Carraway. Bart?

Good morning, everyone, and thank you, Natalie. I'm pleased to begin by highlighting our company's robust performance in the fourth quarter as well as the entire year. Following my remarks, John will discuss the financials. Audrey will provide an update on our credit quality. Finally, I will discuss the progress of our merger with Keystone and share management's outlook for 2026. Our recent results demonstrated the company's commitment to growth, profitability, and long-term shareholder value. This performance reaffirms our strategic priorities and highlights our ability to deliver lasting outcomes that benefit our customers, employees, and stockholders. First, we saw significant growth in our balance sheet in the fourth quarter and throughout the entire year. Gross loans increased by $230 million, or 5.5% compared to the third quarter, reaching $4.39 billion. This marks a 10.8% rise compared to the previous year, surpassing our targeted run rate of 8%. Total assets mirrored this upward trend, ending the year at 5.34 billion, reflecting a 5.5% increase over the third quarter and an 8.1% rise compared to the previous year end. Similarly, total deposits grew by over 254 million in the fourth quarter, reaching 4.6 billion, a 5.8% increase from the third quarter in a 7.3% rise compared to a year ago. Second, the increase in service charges and fees is noteworthy, with an approximately 24% increase over the third quarter and an impressive 55% year-over-year rise. This is due to the effectiveness of our relationship banking model and our appealing platform, which have resonated powerfully with our customers. Meanwhile, loan interest income and fees grew by about 7% compared to the previous year as we effectively expanded our overall loan portfolio through the hard work of our talented bankers. We were also able to lower our interest expense by approximately 4.2% from the third quarter and 5.2% when compared to a year ago. This was possible by dynamically pricing a portion of our deposit portfolio and capitalizing on the evolving interest rate landscape. Last but not least, we reached significant milestones. Book value and tangible book value rose to $33.47 and $32.12 respectively, reflecting a year-over-year increase of 16.8% and 17.7%. Our return on average assets remained robust. achieving an annualized 1.33% for the full year of 2025, returning a year-over-year enhancement of more than 26% as we continue to operate efficiently and serve our customers well. Overall, our 2025 performance reflects the incredible dedication and talent of our team and underscores the effectiveness of our strategy. These achievements go beyond mere figures. They embody our vision and passion. We outpaced our peers, exceeded expectations, and have set new standards for our company, all while sustaining growth and maintaining profitability to support long-term value for our stakeholders. With that, I'll turn the call over to John for the company's financial update. John? Thank you, Bart, and good morning, everyone. We provided the detailed financial tables in yesterday's earnings release, so today I'll provide some additional color around select balance sheet and profitability metrics from the fourth quarter and full year. We reported net income of $17.9 million for the fourth quarter, leading to a record total annual net income of $66.3 million, reflecting a 39% increase year over year. This resulted in an annual return on equity of 14%, marking a 24% increase from last year. As a result, our earnings per share exceeded expectations, reaching $1.02 per diluted share for the quarter and totaling $3.79 for the year, representing a 36% increase from the prior year and setting a record for the company. Net interest income was $52.2 million in the fourth quarter and $195.2 million for the year, an increase of 21% from the previous year. This increase was due primarily to an increase in earning assets. Investment securities decreased $7.5 million during the fourth quarter, ending the period at $575 million. This modest decline primarily reflects normal portfolio runoff and active balance sheet management, as the company continued to prioritize prudent liquidity, capital efficiency, and disciplined deployment of earning assets. Deposits rose by $254 million in the fourth quarter, totaling $4.6 billion, which marks a 7.3% increase compared to the previous year. This growth maintains our loan to deposit ratio of 95%. Our cost of funds stood at 3.33% in the fourth quarter, reflecting a 23 basis point improvement from the third quarter and a 50 basis point improvement from a year ago. And as Bart highlighted, we've surpassed expectations with our stable asset liability model, even during a fluctuating interest rate environment. Net interest margin remained consistent at 410 for the quarter, exceeding expectations. This performance resulted from higher than expected loan fees due primarily to robust loan growth. We believe the core net interest margin was 3.90% for the quarter, up about 10 basis points from the prior quarter. That completes the financial review. At this point, I'll pass the call to Audrey for our credit quality review.

Thank you, John, and good morning, everyone. The fourth quarter and full year credit performance highlights the strength and stability of our asset quality, a result of our disciplined risk management practices and underwriting standards. Non-accrual loans saw continued improvement for the fourth consecutive quarter, decreasing by $603,000 in the fourth quarter and $16.7 million for the full year. Loans over 90 days and still accruing totaled $11.36 million. However, subsequent to year end, a loan totaling approximately $5.5 million was renewed and is now current. Quarter over quarter non-performing loans saw an improvement of 259,000, contributing to a total annual improvement of 6.5 million when compared to the same period last year. The ratio of non-performing loans to total loans improved by three basis points from the prior quarter and improved by 21 basis points year over year. The allowance for credit losses represented 1% of total loans, which is a slight decline from 1.02% at the third quarter and previous year end. Net charge-offs were eight basis points for the year, representing a one basis point improvement over the same period last year. Our loan portfolio remains well diversified with allocations consistent with the previous quarter and throughout the year. Commercial and industrial loans were 43% of total loans, while construction development and land loans were 19%, owner-occupied CRE was 10%, and non-owner-occupied CRE was 16%. Overall, the quality of our assets is a key highlight. Our strategic blend of conservative credit underwriting and prudent risk management not only drives growth, but also ensures long-term value for our stakeholders. With that, I'll turn the call back to Bart. Bart?