Third Coast Bancshares Sets Quarterly Payout on Its 6.75% Convertible Preferred — What Investors Should Watch

Dividend announced — exact dollar amount and ticker need confirmation

Third Coast Bancshares said it will pay a quarterly cash dividend on its 6.75% Series A convertible non‑cumulative preferred stock. The company press release confirms the security and the stated coupon rate, but the exact per‑share cash amount and the trading ticker were not available in the materials I could access. Reporters and investors should confirm the precise dollar payout per share, the company’s common and preferred tickers, and the official filing or press release for the record, payable and ex‑dividend dates.

How the preferred dividend typically works—and the items to confirm

With a fixed 6.75% coupon, the preferred is meant to pay a steady income stream. The usual mechanics are simple: the quoted coupon is an annual rate applied to the preferred’s face value to arrive at an annual dollar payout, and that is then divided into quarterly payments.

To understand the cash flow you must verify four items from the company’s 8‑K or press release: the exact quarterly dollar amount per share, the record date (who is eligible to receive the payment), the payable date (when cash is actually distributed) and the ex‑dividend date (when new buyers stop qualifying). If any payment is prorated for holders who acquired shares mid‑period, the filing should explain that as well.

I could not fetch real‑time filings here, so confirm those dates and any special proration language directly from the company’s SEC filing or the press release.

What ‘6.75% Series A convertible non‑cumulative preferred’ means for holders and common stock

Breaking that description down: “6.75%” is the stated annual yield on the preferred’s par value; “convertible” means holders may be able to swap the preferred for common shares under specified terms; and “non‑cumulative” means missed dividends are not carried forward — if the bank skips a payment the holder does not have a legal claim to recover it later.

The crucial missing pieces are the conversion price or ratio, any conversion window, the par value or liquidation preference per share, and whether the shares are callable by the bank. Those specifics determine dilution risk to common shareholders and whether conversion is likely to happen. If conversion is at an attractive premium to today’s common price, conversion risk is low; if the conversion price is near or below the current common price, conversion could materially dilute common equity.

Because I can’t pull the prospectus here, reporters should extract those conversion terms and call features from the prospectus or the 8‑K and note them verbatim in coverage.

Market context: pricing, yield and likely investor reactions

How attractive this payment is will depend on what investors pay for this preferred in the market. The right calculation is simple: take the annual dollar payout implied by the 6.75% coupon and divide it by the current market price of the preferred to get the market yield. Also compare that yield to similar bank preferreds and the yield on the company’s common stock if relevant.

Without live quotes I can’t calculate the current yield here. Income investors tend to like high‑single‑digit preferred yields from smaller banks if they trust the bank’s capital position. But the non‑cumulative nature, potential callability and conversion terms add risk. Preferred holders will prize the steady quarterly payments; common holders should watch for dilution if conversion is likely. Credit rating agencies and regulators factor preferred capital into capital ratios, so any change in this security’s treatment could affect the bank’s capital metrics.

My view: a 6.75% convertible preferred can be a decent income play for yield‑seeking investors, but it is a mixed trade — income comes with structural risks (non‑cumulative coupons, potential call and conversion) that lower the safety compared with straight senior debt or high‑quality perpetual preferreds.

What to verify next and short takeaways for investors

Reporters should confirm and quote the exact quarterly dollar amount and all relevant dates directly from the company filing, and paste conversion language from the prospectus or 8‑K. Verify the preferred’s par value, conversion ratio/price, whether the issue is callable and any anti‑dilution clauses. Pull current market quotes for the preferred and the common, calculate the market yield and compare to peers.

Investor takeaways: the new dividend formalizes an income stream tied to a 6.75% coupon, but because payments are non‑cumulative and the security converts, the payout is less secure than senior debt and carries dilution and call risk. This is likely appealing to yield buyers who accept those trade‑offs, and less so to conservative income investors who want principal protection.

Sources

• prnewswire.com