Third Coast Bancshares, Inc. · NYSE:TCBX
Third Coast Bancshares — IPO Roadshow (November 2021)
24 slides from Third Coast Bancshares's IPO roadshow presentation, Nov 1, 2021
Slide 1: Initial Public Offering
Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333-260291 Dated November 1, 2021 Initial Public Offering NASDAQ | TCBX November 2021
Slide 2: Disclaimer
Disclaimer Third Coast Bancshares, Inc. (“Third Coast,” “TCBX,” the “Company,” “we,” “us” or “our”), the holding company for Third Coast Bank, SSB (the “Bank”), has filed a registration statement (No. 333-260291) (including a prospectus, which is preliminary and subject to completion) with the U.S.
Slide 3: Offering Summary
Offering Summary Third Coast Bancshares, Inc. Issuer: Nasdaq Global Select: TCBX Exchange / Ticker: 3.0 million shares Base Shares Offered: $24.00 - $26.00 per share Price Range: $75 million (at the midpoint of the pricing range) Base Offering Size: 100% Primary Offering Structure: 15% Overallotment
Slide 4: Executive Management
Executive Management Bart Caraway John McWhorter Chairman, President and Chief Executive Officer Senior Executive Vice President and Chief Financial Officer § Founded Third Coast Bank in 2008; CEO, President and § Serves as Senior EVP and has served as Chief Financial Chairman of Third Coast Bank si
Slide 5: Third Coast Franchise Overview
Third Coast Franchise Overview Ø Commercially focused bank founded in 2008, with Third Coast Branch Footprint headquarters in Humble, Texas Ø Twelve branches and one LPO located throughout Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets Financial Highlights As of As of Balance She
Slide 6: Track Record of Strong Growth Since Formation
Track Record of Strong Growth Since Formation (Dollars in Millions) Total Asset CAGR of ~29% Since Inception Completed sixth stock offering (3) Completed fifth ($70.5M) Closed Entity Formation stock offering acquisition of Formation of ($8.4M) Heritage Bancorp Stock Offering Third Coast Surpassed $2
Slide 7: Investment Highlights
Investment Highlights Highly experienced management team – Over 100 years of combined financial services experience Dynamic markets of operation – Locations in or around Houston, Dallas-Fort Worth and Austin-San Antonio, encompassing the four largest metropolitan areas in Texas Diversified product o
Slide 8: Recent Developments
Recent Developments As of, Balance Sheet 6/30/21 9/30/21 Commentary Total Assets $2.01B $2.08B $68.9M increase primarily due to loan growth Driven by growth of non-PPP related loans totaling $216.1M during the quarter, offset by forgiveness payments received from the SBA for $155.4M of Total Loans $
Slide 9: 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 10: Transformation of Deposit Base
Transformation of Deposit Base Ø The funding base has been enhanced through organic sourcing of core deposits, active participation in PPP, and the strategic acquisition of Heritage Bancorp December 31, 2019 June 30, 2021 Noninterest Bearing: $128M Noninterest Bearing: $375M $1,783M 1.0% 18.3% 1.5%
Slide 11: Consistent Growth Trends
Consistent Growth Trends (Dollars in Millions, Except per Share) Total Loans HFI Deposits $1,783 $1,634 $1,556 $1,552 $809 $807 $735 $688 $600 $577 $469 $451 2016 2017 2018 2019 2020 6/30/21 2016 2017 2018 2019 2020 6/30/21 (1) Net Income Tangible Book Value per Share $12.1 $19.76 $18.01 $8.7 $16.29
Slide 12: Improved Profitability Trends
Improved Profitability Trends Net Interest Margin Efficiency Ratio 86.19% 80.47% 4.67% 4.36% 72.72% 4.24% 4.08% 67.18% 2018 2019 2020 6/30/21 2018 2019 2020 6/30/21 YTD YTD Return on Average Assets Return on Average Equity 0.88% 14.09% 0.73% 10.74% 0.52% 7.67% 0.27% 4.22% 2018 2019 2020 6/30/21 2018
Slide 13: Commitment to Sound Underwriting
Commitment to Sound Underwriting Ø 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 offi
Slide 14: Loan Composition
Loan Composition Ø The commercial loan book is well balanced between commercial and industrial, owner occupied commercial real estate, and non-owner occupied commercial real estate December 31, 2019 June 30, 2021 Farmland Consumer Farmland Consumer 0.9% Auto Leases 0.3% Other Auto Leases 0.5% 0.4% O
Slide 15: COVID-19 Response
COVID-19 Response Ø Third Coast was a Top 10 PPP lender in the Houston area for loans over $150k, according to the Houston Business Journal PPP Activity as of June 30, 2021 PPP Loans Aggregate PPP Average PPP PPP Fees Originated Funded Loan Size Generated $31.5M 5,774 $827.5M $143K (including $8.5M
Slide 16: Specialty Lending Verticals
Specialty Lending Verticals (Dollars in Millions) Ø Third Coast offers SBA, commercial finance, auto finance and builder finance loans in addition to conventional commercial and consumer lending products Ø These verticals augment traditional product offerings, diversify revenue streams and in some c
Slide 17: Pro Forma Capitalization
Pro Forma Capitalization (Dollars in Thousands, Except per Share) Ø Third Coast completed a private placement of common stock on August 27, 2021 (the “Private Placement”) consisting of ~2.9 million shares of common stock for aggregate proceeds of approximately $70.5 million ‒ 227,307 of the Private
Slide 18: Board of Directors
Board of Directors TCBX Age Director Name at 6/30/21 Since Summary Biography • 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 50 2013 • Served as CFO and
Slide 19: Dynamic Texas Markets of Operation
Dynamic Texas Markets of Operation § The Houston MSA is projected to grow approximately 7.6% over the next five years, ranking first among the nation’s 10 largest MSAs and more than double the nationwide projected growth § Houston is the nation’s fourth most populous city and fifth most populous met
Slide 20: Future Acquisition Opportunities
Future Acquisition Opportunities Ø General criteria for potential merger partnersØ Enhanced opportunity as a high growth Texas bank with approximately $2B in assets ‒ Headquartered in the Greater Houston, Dallas-Fort Worth and Austin-San Antonio markets, with an ‒ A more liquid currency and access t
Slide 21: Investment Highlights
Investment Highlights Highly experienced management team – Over 100 years of combined financial services experience Dynamic markets of operation – Locations in or around Houston, Dallas-Fort Worth and Austin-San Antonio, encompassing the four largest metropolitan areas in Texas Diversified product o
Slide 22: Building Relationships. Growing Communities. Doing Good.
Building Relationships. Growing Communities. Doing Good. 22
Slide 23: Appendix – Historical Financial Highlights
Appendix – Historical Financial Highlights (Dollars in Thousands, Except per Share) As of and for As of and for the Years Ended December 31, the Six Months Ended, 2016 2017 2018 2019 2020 6/30/20 6/30/21 Balance Sheet Total Assets $ 538,435 $ 672,729 $ 845,983 $ 928,337 $ 1,867,293 $ 1 ,829,842 $ 2
Slide 24: Appendix – Non-GAAP Reconciliations
Appendix – Non-GAAP Reconciliations (Dollars in Thousands, Except per Share) As of and for As of and for the Years Ended December 31, the Six Months Ended, As of (1) 2016 2017 2018 2019 2020 6/30/20 6/30/21 9/30/21 Tangible Book Value per Share (2) Total Shareholders Equity $ 37,898 $ 48,828 $ 54,45
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