Third Coast Bancshares, Inc. (TCBX): Marketing Mix Analysis [11-2024 Updated]
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Third Coast Bancshares, Inc. (TCBX) Bundle
Understanding the marketing mix of Third Coast Bancshares, Inc. (TCBX) reveals how this Texas-based financial institution effectively positions itself in a competitive market. With a comprehensive range of loan products and a focus on community engagement, TCBX is strategically targeting local markets in Houston and Dallas. Discover how their approach to Product, Place, Promotion, and Price shapes their business and drives customer loyalty.
Third Coast Bancshares, Inc. (TCBX) - Marketing Mix: Product
Loan Products
Third Coast Bancshares, Inc. (TCBX) offers a variety of loan products totaling approximately $3.89 billion as of September 30, 2024. The loan portfolio includes:
| Type of Loan | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial and Industrial | $1,499,302 | 38.6% |
| Real Estate Loans | $1,447,067 | 37.1% |
| Construction, Development & Other | $825,302 | 21.2% |
| Farmland | $35,650 | 0.9% |
| Consumer | $2,002 | 0.1% |
| Municipal and Other | $106,178 | 2.7% |
Specialized Loan Services
TCBX features specialized loan services, particularly in construction and development loans, which increased by $131.7 million or 19.0% from December 31, 2023, to reach $825.3 million as of September 30, 2024. These loans support various projects in the Greater Houston and Dallas markets.
Mortgage Products
The bank provides limited mortgage products through its dedicated mortgage department. The residential real estate loans portfolio, which includes 1-4 family residential loans, stands at approximately $339.6 million as of September 30, 2024, reflecting a slight decrease from $342.6 million at the end of 2023.
Small to Medium-Sized Business Services
TCBX places a strong emphasis on services for small to medium-sized businesses, focusing on working capital solutions. The commercial and industrial loan category, which includes factored receivables, saw a significant increase of $236.2 million, or 18.7%, to $1.50 billion as of September 30, 2024. Factoring services for receivables in specific industries such as transportation and energy accounted for $38.0 million in outstanding factored receivables, up from $26.5 million at the end of 2023.
Factoring Services
Factoring services provided by TCBX cater to businesses in the transportation and energy sectors, allowing them to convert accounts receivables into immediate cash flow. As of September 30, 2024, the outstanding factored receivables were $38.0 million, showcasing the bank's commitment to supporting its clients in these industries.
Third Coast Bancshares, Inc. (TCBX) - Marketing Mix: Place
Operates primarily in Texas, targeting local markets in Houston and Dallas
Third Coast Bancshares, Inc. focuses its operations in Texas, specifically targeting local markets in major urban centers including Houston and Dallas. As of September 30, 2024, the company operates a total of 19 branches, distributed as follows:
| Market | Number of Branches |
|---|---|
| Greater Houston | 10 |
| Dallas-Fort Worth | 3 |
| Austin-San Antonio | 5 |
| Detroit, Texas | 1 |
Utilizes a national wholesale deposit strategy to attract large, stable deposits
The bank employs a national wholesale deposit strategy aimed at attracting substantial and stable deposits. As of September 30, 2024, total deposits reached $3.99 billion, an increase of $191.3 million or 5.0% compared to $3.80 billion as of December 31, 2023. Noninterest-bearing deposits stood at $489.8 million, marking a 6.6% increase from $459.6 million from the previous year.
| Deposit Type | Amount (as of September 30, 2024) | Percentage of Total Deposits |
|---|---|---|
| Interest-bearing demand deposits | $2,804,439 | 80.0% |
| Savings | $31,026 | 0.9% |
| Time deposits ($100,000 and over) | $650,616 | 18.6% |
| Time deposits (less than $100,000) | $18,535 | 0.5% |
| Total deposits | $3,994,438 | 100.0% |
Services are delivered through physical branches and online platforms
Third Coast Bancshares provides its services through both physical branches and online platforms, enhancing accessibility for customers. As of September 30, 2024, the total assets of the company amounted to $4.63 billion, with total loans reaching $3.89 billion.
Engages in community-based marketing to enhance local presence
Community-based marketing strategies are employed to strengthen local presence and engagement. This includes targeted marketing efforts aimed at local businesses and individuals, reinforcing the bank's commitment to the communities it serves.
Third Coast Bancshares, Inc. (TCBX) - Marketing Mix: Promotion
Engages in local advertising and marketing campaigns to increase brand awareness.
For the nine months ended September 30, 2024, Third Coast Bancshares, Inc. incurred advertising and marketing expenses of $1.2 million, compared to $2.0 million for the same period in 2023. For the three months ended September 30, 2024, these expenses were $420,000, down from $515,000 in the previous year.
Uses digital marketing strategies to reach broader audiences.
In 2024, Third Coast Bancshares has enhanced its digital marketing presence, focusing on online banking services and targeting small to medium-sized businesses through various online platforms. Specific budget allocations for digital marketing were not disclosed, but the company emphasizes its use of digital channels to engage a wider audience.
Participates in community events to foster relationships and trust.
Third Coast Bancshares actively participates in local community events, which are designed to build relationships with potential customers and enhance brand trust. The bank operates nineteen branches across Texas, including ten in the Greater Houston market, and engages in local sponsorships and events to strengthen community ties.
Implements referral programs to encourage customer acquisition.
The bank has implemented referral programs aimed at increasing customer acquisition. These programs incentivize existing customers to refer new clients, enhancing the customer base through trusted recommendations. The specifics of the referral program's financial impact or success metrics have not been publicly disclosed.
| Period | Advertising and Marketing Expenses | Net Income | Total Assets |
|---|---|---|---|
| Q3 2024 | $420,000 | $12,775,000 | $4,630,000,000 |
| Q3 2023 | $515,000 | $5,578,000 | $4,220,000,000 |
| 9M 2024 | $1,200,000 | $33,938,000 | $4,630,000,000 |
| 9M 2023 | $2,000,000 | $23,712,000 | $4,220,000,000 |
Third Coast Bancshares, Inc. (TCBX) - Marketing Mix: Price
Competitive interest rates on various loan products to attract borrowers
As of September 30, 2024, Third Coast Bancshares, Inc. reported a portfolio of total loans amounting to $3.89 billion, with an average yield on loans of 7.90% compared to 7.57% in the same quarter of 2023. This increase in yield is indicative of competitive interest rates aimed at attracting borrowers across various loan products, including commercial and industrial loans, which comprised 38.6% of their loan portfolio.
Charges fees for services such as wire transfers and ATM transactions
Third Coast Bancshares charges for various banking services. For example, the bank's fee structure includes charges for wire transfers and ATM transactions, contributing to its noninterest income. For the three months ended September 30, 2024, the bank reported noninterest income of $2.52 million, an increase from $1.87 million in the same period of 2023.
Offers tiered pricing structures for different loan products based on risk profiles
The bank utilizes a tiered pricing structure for its loan products, particularly for commercial real estate loans, which are underwritten based on the borrower’s cash flow and the collateral's value. As of September 30, 2024, the bank reported $1.5 billion in commercial and industrial loans, reflecting a diversified risk profile and structured pricing strategies designed to cater to various borrower risk levels.
Provides discounts on fees for customers with established relationships or loyalty
Third Coast Bancshares incentivizes customer loyalty by offering discounts on fees for customers with established banking relationships. This strategy is part of their broader customer retention and engagement efforts, aimed at enhancing customer satisfaction and encouraging long-term banking relationships. The bank's total deposits as of September 30, 2024, reached $3.99 billion, showcasing the effectiveness of these pricing strategies in attracting and retaining clients.
| Loan Type | Amount ($ thousands) | Percentage of Total Loans | Average Yield (%) |
|---|---|---|---|
| Commercial & Industrial | 1,499,302 | 38.6% | 7.90% |
| Real Estate Loans | 2,390,529 | 61.4% | 7.90% |
| Total Loans | 3,889,831 | 100% | 7.90% |
In summary, Third Coast Bancshares, Inc. (TCBX) effectively leverages its marketing mix to cater to the needs of its target market. By offering a diverse range of loan products and competitive pricing, alongside a strong local presence in Texas, TCBX not only enhances customer relationships but also fosters community trust. Their strategic promotional efforts and accessible service delivery through both physical branches and online platforms further position them as a solid choice for businesses and individuals alike.
Updated on 16 Nov 2024
Resources:
- Third Coast Bancshares, Inc. (TCBX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Third Coast Bancshares, Inc. (TCBX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Third Coast Bancshares, Inc. (TCBX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.