Third Coast Bancshares, Inc.

Austin · 1508 W 5th Street, Suite 100, Austin, Texas 78703 · Leased

Austin · 507 Pressler Street, Suite 400, Austin, Texas 78703 · Leased

Ballinger · 900 Hutchins Avenue, Ballinger, Texas 76821 · Owned

Beaumont · 3650 North Major Drive, Suite D, Beaumont, Texas 77713 · Leased

Bee Cave · 13715 East Ladera Boulevard, Bee Cave, Texas 78738 · Leased

Conroe · 1336 League Line Road, Suite 100, Conroe, Texas 77304 · Leased

Dallas · 8235 Douglas Avenue, Suite 100, Dallas, Texas 75225 · Leased

Detroit · 12038 US Highway 82 West, Detroit, Texas 75436 · Owned

Fort Worth · 1400 W 7th Street, Suite 100, Fort Worth, Texas 76102 · Leased

Georgetown · 200 E 8th Street, Suite 102, Georgetown, Texas 78626 · Leased

Houston - Galleria · 1800 West Loop South, Suite 100, Houston, Texas 77027 · Leased

Houston - Memorial City · 800 Gessner, Suite 250, Houston, Texas 77024 · Leased

Humble · 20202 Highway 59 North, Humble, Texas 77338 · Owned

Kingwood · 1910 W Lake Houston Pkwy, Kingwood, Texas 77339 · Owned

La Vernia · 13809 West Highway 87, La Vernia, Texas 78121 · Owned

Lake Jackson · 85 Oak Drive, Lake Jackson, Texas 77566 · Owned

Nixon · 200 North Nixon Avenue, Nixon, Texas 78140 · Owned

Pearland · 1850 Pearland Parkway, Pearland, Texas, 77581 · Owned

Plano · 5000 Legacy, Suite 120, Plano, Texas 75024 · Leased

Port Arthur - Mid County · 3360 Jimmy Johnson Boulevard, Port Arthur, Texas 77642 · Leased

San Antonio · 420 Broadway, Suite 2101, San Antonio, Texas 78205 · Leased

The Woodlands · 9709 Lakeside Boulevard, Suite 117, The Woodlands, Texas 77381 · Leased

In addition, we lease non-branch offices in Bastrop, Beaumont, and Copperfield, Texas.

• We rely heavily on our executive management team and other key employees, and we could be adversely affected by the unexpected loss of their services.
• We may not be able to adequately measure and limit our credit risk, which could lead to unexpected losses.
• Our allowance for credit losses may prove to be insufficient to absorb potential losses in our loan portfolio, which may adversely affect our business, financial condition and results of operations.
• The amount of nonperforming and classified assets may increase significantly, resulting in additional losses and costs and expenses that will negatively affect our operations and financial condition.
• Nonperforming assets take significant time and resources to resolve and adversely affect our results of operations and financial condition.
• The small- to medium-sized businesses that we lend to may have fewer resources to endure adverse business developments, which may impair our borrowers’ ability to repay loans.
• A portion of our loan portfolio is comprised of commercial loans secured by receivables, inventory, equipment or other commercial collateral, which we refer to generally as commercial and industrial loans, and the deterioration in value of which could expose us to credit losses.
• Our commercial real estate and real estate construction and development loan portfolio exposes us to credit risks that may be greater than the risks related to other types of loans.
• Because a significant portion of our loan portfolio is comprised of real estate loans, negative changes in the economy affecting real estate values and liquidity could impair the value of collateral securing our real estate loans and result in loan and other losses.
• Our largest loan relationships currently make up a material percentage of our total loan portfolio.
• Appraisals and other valuation techniques we use in evaluating and monitoring loans secured by real property, other real estate owned and repossessed personal property may not accurately describe the net value of the asset.
• We engage in lending secured by real estate and may be forced to foreclose on the collateral and own the underlying real estate, subjecting us to the costs and potential risks associated with the ownership of the real property, and consumer protection initiatives or changes in state or federal law may substantially raise the cost of foreclosure or prevent us from foreclosing at all.
• SBA lending is an important part of our business. Our SBA lending program is dependent upon the federal government and our status as a participant in the SBA’s Preferred Lenders Program, and we face specific risks associated with SBA loans.
• The SBA may not honor its guarantees if we do not originate loans in compliance with SBA guidelines.
• Our commercial finance clients, particularly with respect to our commercial finance and asset-based lending product lines, may lack the operating history, cash flows or balance sheet necessary to support other financing options and may expose us to additional credit risk, especially if our additional controls for such products are ineffective in mitigating such additional risks.
• Our asset-based lending and commercial finance products may expose us to an increased risk of fraud.
• New lines of business or new products and services may subject us to additional risks.
• If we fail to maintain effective internal control over financial reporting, we may not be able to report our financial results accurately and timely, in which case our business may be harmed, investors may lose confidence in the accuracy and completeness of our financial reports, we could be subject to regulatory penalties and the price of our common stock may decline.
• We are dependent on the use of data and modeling in our management’s decision-making, and faulty data or modeling approaches could negatively impact our decision-making ability or possibly subject us to regulatory scrutiny in the future.
• We have pledged all of the stock of the Bank as collateral for a loan and if the lender forecloses, you could lose your investment.
• A lack of liquidity could impair our ability to fund operations and could have a material adverse effect on our business, financial condition and results of operations.
• We may need to raise additional capital in the future, and such capital may not be available when needed or at all.
• The borrowing needs of our clients may increase, especially in a challenging economic environment, which could result in increased borrowing against our contractual obligations to extend credit.
• We face strong competition from financial services companies and other companies that offer banking services.
• We could be adversely affected by the soundness of other financial institutions.
• Negative public opinion regarding our company or failure to maintain our reputation in the communities we serve could adversely affect our business and prevent us from growing our business.
• We may not be able to overcome the integration and other risks associated with acquisitions, which could have a material adverse effect on our ability to implement our business strategy.
• The accuracy of our financial statements and related disclosures could be affected if the judgments, assumptions or estimates used in our critical accounting policies are inaccurate.
• There could be material changes to our financial statements and disclosures if there are changes in accounting standards or regulatory interpretations of existing standards.
• We are subject to certain operational risks, including, but not limited to, customer, employee or third-party fraud and data processing system failures and errors.
• We depend on the accuracy and completeness of information provided to us by our borrowers and counterparties and any misrepresented or fraudulent information could adversely affect our business, results of operations and financial condition.
• We may be subject to environmental liabilities in connection with the real properties we own and the foreclosure on real estate assets securing our loan portfolio.
• We are subject to claims and litigation pertaining to intellectual property in addition to other litigation in the ordinary course of business.
• Recent negative developments affecting the banking industry, and resulting media coverage, have eroded customer confidence in the banking system.
• Any regulatory examination scrutiny or new regulatory requirements arising from the recent events in the banking industry could increase the Company’s expenses and affect the Company’s operations.
• Risks Related to the Economy and Our Industry
• Inflationary pressures and rising prices may affect our results of operations and financial condition.
• Changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, may adversely impact our business,financial condition, and results of operations.
• Our business is concentrated in, and largely dependent upon, the continued growth and welfare of our primary markets of the Greater Houston market, Dallas-Fort Worth market, and Austin-San Antonio market, and adverse economic conditions in these markets could negatively impact our operations and customers.
• Our primary markets are susceptible to natural disasters and other catastrophes that could negatively impact the economies of our markets, our operations or our customers, any of which could have a material adverse effect on our business, financial condition and results of operations.
• Climate change, and related legislative and regulatory initiatives, have the potential to disrupt our business and adversely impact the operations and creditworthiness of our customers.
• Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks.
• We could recognize losses on investment securities held in our securities portfolio, particularly if interest rates increase or economic and market conditions deteriorate.
• Market conditions and economic trends may adversely affect the banking industry and could adversely affect our business, financial condition and results of operations in the future.
• We depend on our information technology and telecommunications systems of third parties, and any systems failures, interruptions or data breaches involving these systems could adversely affect our operations and financial condition.
• The occurrence of fraudulent activity, breaches of our information security, and cybersecurity attacks could adversely affect our ability to conduct our business, manage our exposure to risk or expand our businesses, result in the disclosure or misuse of confidential or proprietary information, increase our costs to maintain and update our operational and security systems and infrastructure, and adversely impact our results of operations, liquidity and financial condition, as well as cause legal or reputational harm.
• We have a continuing need for technological change and we may not have the resources to effectively implement new technology or we may experience operational challenges when implementing new technology or technology needed to compete effectively with larger institutions may not be available to us on a cost effective basis.
• The development and use of artificial intelligence presents risks and challenges that may adversely impact the Company’s business.
• We operate in a highly regulated environment and the laws and regulations that govern our operations, corporate governance, executive compensation and accounting principles, or changes in them, or our failure to comply with them, could adversely affect us.
• The ongoing implementation of the Dodd-Frank Act could adversely affect our business, financial condition, and results of operations.
• Banking agencies periodically conduct examinations of our business, including compliance with laws and regulations, and our failure to comply with any supervisory actions to which we are or become subject as a result of such examinations could adversely affect us.
• Conversion to a Texas banking association subjects the Bank to new and potentially heightened examination and reporting requirements that may increase our costs of operations and compliance.
• Many of our new activities and expansion plans require regulatory approvals, and failure to obtain them may restrict our growth.
• We are subject to laws regarding the privacy, information security and protection of personal information and any violation of these laws or another incident involving personal, confidential or proprietary information of individuals could damage our reputation and otherwise adversely affect our operations and financial condition.
• Financial institutions, such as the Bank, face a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.
• We are subject to numerous laws designed to protect consumers, including the Community Reinvestment Act and fair lending laws, and failure to comply with these laws could lead to a wide variety of sanctions.
• Failure to comply with economic and trade sanctions or with applicable anti-corruption laws could have a material adverse effect on our business, financial condition and results of operations.
• Federal, state and local consumer lending laws may restrict our ability to originate certain mortgage loans or increase our risk of liability with respect to such loans and could increase our cost of doing business.
• The expanding body of federal, state and local regulations and/or the licensing of loan servicing, collections or other aspects of our business and our sales of loans to third parties may increase the cost of compliance and the risks of noncompliance and subject us to litigation.
• The Federal Reserve may require us to commit capital resources to support the Bank.
• Monetary policies and regulations of the Federal Reserve could adversely affect our business, financial condition and results of operations.
• An active trading market for our common stock may not be sustained.
• The market price of our common stock may be subject to substantial fluctuations, which may make it difficult for you to sell your shares at the volume, prices and times desired.
• The market price of our common stock could decline significantly due to actual or anticipated issuances or sales of our common stock in the future.
• Our management and board of directors have significant control over our business.
• We may incur additional debt or issue new debt securities, which would be senior to our common stock and may cause the market price of our common stock to decline.
• We may issue shares of preferred stock in the future, which could make it difficult for another company to acquire us or could otherwise adversely affect holders of our common stock, which could depress the price of our common stock.
• We are dependent upon the Bank for cash flow, and the Bank’s ability to make cash distributions is restricted.