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William Bobbora, Executive Vice President and Chief Banking Officer at Third Coast Bancshares , Inc. (NASDAQ:TCBX), a $524 million market cap financial institution, has made a significant acquisition of the company’s common stock. The purchase comes as the bank demonstrates strong momentum, with InvestingPro data showing a 93% return over the past year and an impressive Financial Health Score of "GREAT." According to a recent SEC filing, Bobbora purchased 800 shares at a price of $35.635 per share, totaling approximately $28,508. This transaction increases his indirect ownership, held by an IRA, to 6,850 shares. The purchase reflects Bobbora’s continued investment in the Texas-based financial institution, which trades at a modest P/E ratio of 12 and is currently trading near its InvestingPro Fair Value. Discover more insights about TCBX and access comprehensive analysis of 1,400+ stocks with an InvestingPro subscription.
In other recent news, Third Coast Bancshares reported a strong financial performance for the fourth quarter of 2024, exceeding analyst expectations with an earnings per share (EPS) of $0.79, compared to the forecasted $0.68. The company’s revenue also surpassed projections, reaching $46.31 million against an anticipated $43.79 million. This performance was supported by a significant 16.4% year-over-year increase in net interest income, highlighting the bank’s strategic focus on loan pricing and market expansion. Following these results, Raymond (NSE:RYMD) James raised its price target for Third Coast Bancshares to $39.00, maintaining an Outperform rating, citing continued positive operating leverage and stable net interest margins.
Meanwhile, Keefe, Bruyette & Woods downgraded Third Coast Bancshares from "Outperform" to "Market Perform," despite raising the price target to $42.00. This downgrade reflects the stock’s valuation aligning more closely with the bank’s improved fundamentals. The analysts acknowledged the company’s strong execution, noting substantial EPS growth and profitability improvements. Third Coast Bancshares also demonstrated robust growth in loans and deposits, with loans increasing by 8% on a linked quarter annualized basis and deposits surging by 31%.
Despite some challenges, such as higher core noninterest expenses and a slight decline in most capital ratios, the bank maintained a core efficiency ratio below 60% for the second consecutive quarter. Looking forward, Raymond James anticipates sustained momentum in fees and a larger balance sheet for Third Coast Bancshares. The bank’s management continues to focus on operational excellence and strategic growth, aiming for an 8% loan growth in 2025.
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