#United States #Austin #Merger #Keystone #Third Coast

Third Coast Bancshares, Inc. Teams Up with Keystone Bancshares, Inc.

In a significant development in the banking sector, Third Coast Bancshares, Inc. (NYSE: TCBX) and Keystone Bancshares, Inc. have entered into a definitive merger agreement. This strategic alliance is valued at approximately $123 million based on Third Coast's stock valuation as of October 21, 2025. Once finalized, the merger will elevate the combined company’s total assets to over $6 billion, positioning it as a formidable player in the Texas banking landscape.

Objectives of the Merger

The primary aim of this merger is to strengthen Third Coast's footprint in the vibrant Austin market by merging with a bank known for its community involvement and exceptional service, Keystone Bank. Key stakeholders in the merger, such as Bart Caraway, Founder and CEO of Third Coast, expressed excitement over the partnership, highlighting how it aligns perfectly with Third Coast’s commitment to enhancing customer experiences and community relationships.

“We are thrilled to join forces with Keystone,” said Caraway, emphasizing the cultural alignment and shared values between the two institutions, which focus on customer service and community relationships. This merger is poised to not only solidify their standing in the market but also drive innovation and operational excellence, ultimately providing significant benefits to customers.

Jeff Wilkinson, the Founder and CEO of Keystone, echoed these sentiments, stating that the united vision and resources will pave the way for delivering premier banking solutions that emphasize customer satisfaction and community focus.

Transaction Details and Structure

Under the terms set out in the merger agreement, shareholders of Keystone will receive either shares of Third Coast's common stock or a cash equivalent based on a defined conversion ratio. Specifically, for each share of Keystone, shareholders can choose to receive 0.45925 shares of Third Coast or receive cash that reflects the value of the shares, capped at an aggregate cash consideration of $20 million. This offers flexibility for Keystone shareholders and aligns with the companies' strategic vision.

However, it should be noted that the transaction is subject to regulatory approvals and the requisite green light from both companies’ shareholders. Both boards have unanimously approved the merger, with expectations to close during the first quarter of 2026, contingent on fulfilling customary closing conditions.

Representatives from both institutions have engaged top financial and legal advisors to ensure the seamless execution of this merger. Raymond James Associates is advising Third Coast, while Keystone is working with Stephens Inc.

About Third Coast Bancshares and Keystone Bancshares

Founded in 2008, Third Coast Bancshares is rapidly becoming a prominent bank holding company, recognized for its commitment to quality service across major Texas markets including Greater Houston and Dallas-Fort Worth. On the other hand, Keystone Bancshares, established in 2018, has already made its mark with a strong focus on real estate and small business loans, particularly serving the needs of communities in western Travis County.

With these two banking giants joining forces, the expectation is set high not only for growth in assets but also for innovation in banking practices and community engagement efforts in Texas.

As this merger progresses towards completion, stakeholders await the fusion of two strong brands into a singular powerhouse aimed at delivering tailored financial services while enhancing community trust and involvement. This merger outlines a promising future for customers, employees, and shareholders of both companies, marking a bold step in the evolution of banking in Texas.

Moving Forward

The collaboration between Third Coast and Keystone represents more than just a financial transaction; it signals a commitment to nurturing community-centric banking experiences. As they integrate their operations and resources, the focus will remain on maintaining customer engagement and enhancing service quality that both institutions are known for.

As the landscape of the banking industry evolves, this strategic merger has the potential to not only reshape how these banks operate but also significantly impact community banking in Texas.