Third Coast Bancshares, Inc. (NASDAQ:TCBX) Q3 2023 Earnings Call Transcript

Matt Olney: Okay. And how would you characterize or describe the collateral on some of those loans relative to the cost per…

Audrey Duncan: Okay. So the increase in nonaccruals, we had a $4 million increase. One of them is a $2.3 million spec house and the LTV brand new appraisal is 64%. It’s in a great location and in new construction. So it’s — we’re not anticipating a loss on that, what was done in our community bank vertical. And then we also had a small builder in Southeast Texas that we’ve done, honestly, nearly 100 small homes for them over the past 8 to 10 years, and we’ve got a couple — that, that relationship is $1.1 million that we put on nonaccrual, 3 houses come in a couple of smaller loans, but have $160,000 specific reserve on that relationship that’s our estimate at this point. So not significant. And then the third nonaccrual was a $900,000 borrowing base line of credit.

We have a very strong guarantor with separate income on that. So we’re not anticipating a loss in the specific reserves on that either. And then on those past dues, we typically, you don’t see us with over 90 days past due and still occurring. We had a $2 million loan this quarter, but it is clear, it is renewed and current, and it’s not a credit problem. It’s also a real estate deal with an LTV in the 60% range. And then just 2 other smaller loans that are in the process of renewal and those aren’t credit concerns either.

Operator: Thank you. There are no further questions at this time. I would like to turn the floor back over to Bart Caraway for closing comments.

Bart Caraway: Yes. I just want to thank you, Ritu, for taking care of us as an operator. I want to thank everybody else for joining us and your continued support at Third Coast Bancshares. And we look forward to speaking to you next quarter. Thank you. Have a good evening.

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