Third Coast Bancshares, Inc. (NASDAQ:TCBX) Q2 2023 Earnings Call Transcript

Michael Rose: Okay. Thanks for taking all my questions. Appreciate it.

Bart Caraway: Thank you, Michael.

Operator: [Operator Instructions] Our next question comes from the line of [indiscernible] with KBW. Please proceed with your question.

Unidentified Analyst: Hey. Good morning everyone.

Bart Caraway: Hey. Good morning. Welcome.

Unidentified Analyst: Thank you. You all focused on the 1% ROA target for a while now and hit it in the first quarter, a little down this quarter, which is no surprise with all the expenses. Can you kind of frame your commitment in regards to that 1% as you divest that auto finance division and kind of work on – kind of making the balance sheet more efficient? Thanks.

John McWhorter: Yes. So, about a year ago, we were projecting that we would get to a 1% ROA by the third quarter of this year. So, we did it much sooner than we expected. So, we consider ourselves ahead of schedule. If you look at the year-to-date numbers, we are at 99 basis points year-to-date, so again, quite a bit ahead. And 1% isn’t our goal. I mean to be high performing is our goal. And if that means 1.25% or 1.35% or whatever the number is, we are certainly not satisfied with 1% being anything other than just a bare minimum.

Unidentified Analyst: Got it. That’s all my questions. Thank you.

Bart Caraway: Thank you.

Operator: Thank you. This concludes our question-and-answer session. I will turn the floor back to Mr. Caraway for any final comments.

Bart Caraway: Thank you, Melissa. I want to thank everybody that called in and participated. We appreciate you, and thank you for your support of Third Coast Bancshares. We look forward to seeing you next quarter. Thank you all.

Operator: Thank you. This concludes today’s conference call. You may disconnect your lines at this time. Thank you for your participation.