Third Coast Bancshares, Inc. · NYSE:TCBX
Third Coast Bancshares — Debt Investor Presentation (September 2022)
26 slides from Third Coast Bancshares's debt investor presentation, Sep 9, 2022
Slide 1: Investor Presentation: Preferred Stock Offering
Exhibit 99.2 Third Coast Bancshares, Inc. Investor Presentation Subordinated Debt Placement Non-Cumulative Convertible Perpetual Preferred Stock Offering February 2022 July 2022 Confidential Investor Presentation
Slide 2: Legal Disclaimer
Disclaimer Legal Disclaimer This confidential presentation (this “presentation”) has been prepared solely for general informational purposes by or on behalf of Third Coast Bancshares, Inc. (“Third Coast,” “TCBX,” the “Company,” the “holding company,” “we” or “our”), the registered bank holding compa
Slide 3: Disclaimer and Forward-Looking Statements
Disclaimer The information contained in this presentation is confidential and proprietary to the Company and its subsidiaries. By accepting delivery of this information, the intended recipient is deemed to have acknowledged and agreed that (i) the information contained herein will be used by the rec
Slide 4: Terms of the Proposed Offering
Terms of the Proposed Offering Third Coast Bancshares, Inc. Issuer Name Non-Cumulative Convertible Perpetual Preferred Stock Security Type Up to $100 Million Amount Regulation D Private Placement with Registration Rights Issuance Type 6.825% Non-Cumulative Dividend Convertible at any time into up to
Slide 5: Investment Highlights
Investment Highlights Emerging Community Bank in Key Texas Metropolitan Markets of Houston, Dallas-Fort Worth and Austin-San Antonio o Presence in Each of the Four Largest MSAs in Texas Well Capitalized Institution with Proven Ability to Attract Significant Equity Capital o $100M + Successful IPO Co
Slide 6: Third Coast Franchise Overview
Third Coast Franchise Overview Commercially focused bank founded in 2008, with headquarters Third Coast Branch Footprint in Humble, Texas Fourteen branches and one LPO located throughout Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets Completed $100.6M Initial Public Offering and
Slide 7: Track Record of Strong Growth Since Formation
Track Record of Strong Growth Since Formation Surpassed $3B in (Dollars in Millions) total assets Total Asset CAGR of 32% Since Inception Opened branches in Fort Worth, TX & Georgetown, TX Entity Formation Completed Initial Private Stock Offering Public Offering Branch Opening ($100.6M) Completed Gr
Slide 8: Consistent Growth Trends
Consistent Growth Trends (Dollars in millions, except per share amounts) Gross Loans HFI Total Deposits $2,898 $2,141 $2,749 $1,634 $2,069 $1,556 $807 $735 $809 $688 2018 2019 2020 2021 6/30/22 2018 2019 2020 2021 6/30/22 Net Income Tangible Book Value per Share¹ $12.1 $21.00 $20.87 $11.4 $16.29 $14
Slide 9: Dynamic Texas Markets of Operation
Dynamic Texas Markets of Operation ▪ The Houston MSA is projected to grow approximately 6.0% over the next five years, ranking fifth among the nation’s 10 largest MSAs ▪ Houston is the nation’s fourth most populous city and fifth most populous metro area, with approximately Greater 2.3 million and 7
Slide 10: Executive Management
Executive Management Bart Caraway - Chairman, President and Chief Executive Officer ▪ Founded Third Coast Bank in 2008; CEO, President and Chairman of Third Coast Bank since founding and of the Company since formation in 2013 ▪ Chairman and CEO of Third Coast Commercial Capital ▪ Texas licensed atto
Slide 11: Business Strategy
Business Strategy Strategic Initiative Execution and Implementation ▪ Continue to recruit strategic hires Continue Robust ▪ Evaluate future de novo branch opportunities Organic Growth ▪ Leverage experienced management team, board and relationship managers ▪ Encourage and incentivize relationship man
Slide 12: Diverse Lines of Business
Diverse Lines of Business ▪ Community banking, the foundation on which TCBX has been built, remains a core strength with over 40 lenders across the state ▪ Experienced bankers serving Austin, Dallas, Houston, and San Antonio, along with Southeast Texas Community ▪ Loan products offered include C&I,
Slide 13: Loan Portfolio Overview
Loan Portfolio Overview Loan Portfolio by Maturities Fixed / Floating by Maturity < 1 Year < 1 Year 25.0% 75.0% 23.7% 8.2% 1 to 5 Years 31.8% 68.2% 1 to 5 Years Total Loans: 5 to 15 Years 8.8% 91.2% 20.2% $2,749M 5 to 15 Years >15 Years 27.4% 72.6% 47.9% Total 24.8% 75.2% > 15 Years Loan Maturities
Slide 14: Loan Portfolio Overview (Continued)
Loan Portfolio Overview (Continued) Top 20 Loan Relationships Loan Composition Committed Balance % of Total Relationship Type ($M) ($M) (%) Owner-Occ CRE Relationship 1 C&I - Financing $53.3 $47.6 1.7% 18.5% 5.3% Relationship 2 Real Estate - C&D $50.0 $17.4 0.6% Nonowner-Occ CRE Relationship 3 Real
Slide 15: Specialty Lending Verticals
Specialty Lending Verticals (Dollars in Millions) Third Coast offers SBA, factoring, auto finance and builder finance loans in addition to conventional commercial and consumer lending products These verticals augment traditional product offerings, diversify revenue streams and in some cases provide
Slide 16: Commitment to Sound Underwriting
Commitment to Sound Underwriting Efficient and disciplined credit approval process differentiates Third Coast ‒ Credit professionals are located in-market and regularly accompany relationship managers to client meetings ‒ Independent Officers’ Loan Committees that meet separately for the loan office
Slide 17: Asset Quality Trends
Asset Quality Trends NPAs Excl. TDRs / Assets Reserve / Loans 1.01% 1.00% 0.97% 0.93% 0.84% 0.65% 0.61% 0.77% 0.48% 0.30% 2018 2019 2020 2021 6/30/22 2018 2019 2020 2021 6/30/22 Reserve / NPAs Excl. TDRs Noncurrent Loans¹ / Loans 261.6% 161.0% 134.5% 0.73% 105.3% 97.6% 0.53% 0.51% 0.50% 0.37% 2018 2
Slide 18: Deposit Composition
Deposit Composition Top 10 Deposit Relationships Deposit Composition Balance % of Int. Rate Depositor Type ($000s) Total (%) 0.5% Noninterest-Bearing Depositor 1 Demand $300,009 10.4% 1.66% 1.3% 7.5% Depositor 2 Demand $275,207 9.5% 0.43% 17.9% Interest-Bearing Demand Depositor 3 Demand $190,090 6.6
Slide 19: Funding and Liquidity
Funding and Liquidity (Dollars in Thousands) Funding and Liquidity as of June 30, 2022 Funding Source Available Balance Total % Available Cash & Cash Equivalents $320,203 – $320,203 100.0% Securities (Available for Sale) – 157,261 157,261 - Brokered Deposits¹ 612,505 227,011 839,516 73.0% Public Fun
Slide 20: Net Interest Income and Economic Value of Equity Sensitivity
Net Interest Income Economic Value of Equity Interest Rate Spread & Sensitivity Change Over 12-Month Horizon¹ 12.9% 9.9% 8.9% 6.5% 4.7% 3.2% –– (3.5%) (4.3%) -100 bps Base +100 bps +200 bps +300 bps The Company remains in compliance with internal policies in all stressed scenarios Holding less than
Slide 21: Pro Forma Capital Position
Holding Company Bank Level Pro Forma Capital Position Third Coast has not paid and does not intend to pay a common dividend while it continues to reinvest earnings into capital to support organic growth Tang. Common Equity / Tang. Assets¹ 14.2% 11.6% 11.3% 10.9% 9.0% 8.5% 8.2% 7.0% 6.2% 5.5% 19YE 20
Slide 22: Appendix – Board of Directors
Appendix – Board of Directors Hold Co. Director Summary Biography Name Age Since ● Serves as Chairman, President and Chief Executive Officer of Third Coast ● Has over 29 years of banking and public accounting experience and is a Texas licensed attorney and CPA Bart O. Caraway 51 2013 ● Served as CFO
Slide 23: Appendix – Historical Financial Highlights
Appendix – Historical Financial Highlights (Dollars in thousands, except per share amounts) As of and for the Years ended December 31, YTD 2018 2019 2020 2021 6/30/2022 Balance Sheet Total Assets $845,983 $928,337 $1,867,293 $2,499,412 $3,358,062 Gross Loans HFI $688,359 $808,606 $1,556,092 $2,068,7
Slide 24: Appendix – Non-GAAP Reconciliations
Appendix – Non-GAAP Reconciliations (Dollars in thousands, except per share amounts) As of and for the Years ended December 31, YTD 2018 2019 2020 2021 6/30/2022 Tangible Book Value Per Share Total Shareholders Equity $54,452 $57,304 $121,718 $299,007 $301,967 (-) Goodwill – – 18,034 18,034 18,034 (
Slide 25: Contact Information
Contact Information Corporate Headquarters Contact Information Bart Caraway Chairman, President & Chief Executive Officer bcaraway@tcbssb.com Third Coast Bancshares, Inc. 20202 Highway 59 North, Suite 190 John McWhorter Humble, TX 77338 Chief Financial Officer jmcwhorter@tcbssb.com 25
Slide 26: Building Relationships. Growing Communities. Doing Good.
Building Relationships. Growing Communities. Doing Good. 26
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