#United States #Houston #Third Coast Bank #EJF Capital #Commercial Loans

Third Coast Bank Engages in Major Securitization

On June 4, 2025, Third Coast Bank, a Texas-based banking association and a subsidiary of Third Coast Bancshares, Inc., unveiled a significant advancement in its financial strategy with the announcement of a $150 million securitization of commercial real estate loans. The transaction is structured in partnership with EJF Capital LLC, a distinguished global alternative asset management firm, which orchestrated the securitization process.

Overview of the Transaction

The securitization involves certain commercial real estate loans originally issued by Third Coast Bank. This financial maneuver was finalized on June 3, 2025, when the Bank formed participation interests in these loans. EJF CRT 2025-2 Depositor LLC, referred to as the Depositor, acquired some of these participation interests, then transferred them to EJF CRT 2025-2 LLC, known as the Issuer, which subsequently took steps to enhance its capital structure by issuing Asset-Backed Notes, Series 2025-2. The issuance included Class A-1 Notes and Class M-1 Notes.

The economic stakes in the Mortgage Loans pledged by the Issuer are backed by U.S. Bank Trust Company, National Association, acting as the Indenture Trustee. Notably, Third Coast Bank retained certain participation interests that were not sold to the Depositor, signaling a commitment to maintaining exposure to the underlying asset performance.

Strategic Implications

The completion of this securitization is projected to yield multiple benefits for Third Coast Bank. It is expected to lower the Bank's risk-weighted assets, a crucial metric under current regulations, thereby facilitating compliance with capital adequacy norms. Furthermore, these transactions aim to improve the ratio of loans designated for construction and land development relative to the Bank's total capital—an important metric monitored by regulators to assess potential loan concentration risks.

Bart Caraway, President and CEO of Third Coast Bank, expressed pride in the team’s efforts, noting the achievement as a testament to their hard work and collaboration. He indicated, "With each transaction, we are building upon our foundational experiences, continuously striving for excellence. This successful securitization reflects the energetic synergy amongst our teams, showcasing our dedication to providing exceptional value to stakeholders while fulfilling our customers' diverse needs."

Legal Counsel and Future Outlook

For this transaction, Cadwalader, Wickersham & Taft LLP served as the legal advisor to Third Coast Bank, while Mayer Brown LLP provided similar services for EJF Capital and its affiliates. As both organizations look to the future, this deal represents a substantial stepping stone towards enhancing their operational frameworks, allowing for expansion and increased competitiveness within the financial sector.

As this market strategy develops, stakeholders of Third Coast Bank and EJF Capital remain optimistic about continued success driven by effective risk management and diversified portfolio strategies. The company's ongoing commitment to innovation in the financial landscape positions it favorably for future growth.

For additional inquiries, relevant contacts at Third Coast include Ken Dennard or Natalie Hairston, obtainable via Dennard Lascar Investor Relations. For media motives related to EJF Capital, direct contact details are available in the official reports provided by the firms.

About Third Coast Bank and EJF Capital

Third Coast Bancshares, Inc. operates primarily throughout key Texas markets, including Greater Houston, Dallas-Fort Worth, and Austin-San Antonio. Established in 2008, the Bank maintains a robust infrastructure with 19 operational branches.

EJF Capital, founded in 2005, specializes in regulatory event-driven investing across financial sectors. With its strong asset management portfolio, EJF is renowned for devising innovative strategies aimed at unlocking value within complex security structures.

In conclusion, the successful securitization moves by Third Coast Bank not only highlight its operational strengths but also underline the pivotal role of strategic partnerships in navigating the evolving landscape of commercial finance.