Third Coast Bank Announces Securitization of $200 Million Commercial Real Estate Loan in a Transaction Sponsored by EJF Capital LLC
Third Coast Bank (NASDAQ: TCBX) has announced a significant securitization transaction involving a $200 million revolving commercial real estate loan originated on April 1, 2025. The loan is secured by interests in eleven Residential Master Planned Communities under development across major Texas metropolitan areas.
The transaction, arranged by EJF Capital , involves the creation and sale of participation interests through a structured process involving EJF CRT 2025-1 Depositor and EJF CRT 2025-1 The Bank retained certain participation interests while selling others, with the Issuer pledging its interests to U.S. Bank Trust Company as Indenture Trustee.
This strategic move is expected to reduce the Bank's risk-weighted assets under current capital rules and decrease the ratio of construction and land development loans to total capital, ultimately improving loan portfolio diversity.
Third Coast Bank (NASDAQ: TCBX) ha annunciato una significativa operazione di cartolarizzazione che coinvolge un prestito commerciale revolving di 200 milioni di dollari originato il 1° aprile 2025. Il prestito è garantito da interessi in undici Comunità Residenziali Pianificate in fase di sviluppo nelle principali aree metropolitane del Texas.
L'operazione, organizzata da EJF Capital, prevede la creazione e la vendita di interessi di partecipazione attraverso un processo strutturato che coinvolge EJF CRT 2025-1 Depositor e EJF CRT 2025-1. La Banca ha mantenuto alcuni interessi di partecipazione mentre ne ha venduti altri, con l'Emittente che ha impegnato i propri interessi a U.S. Bank Trust Company come Trustee dell'Indenture.
Questa mossa strategica dovrebbe ridurre gli attivi ponderati per il rischio della Banca secondo le attuali normative di capitale e diminuire il rapporto tra prestiti per costruzione e sviluppo del terreno e capitale totale, migliorando infine la diversificazione del portafoglio prestiti.
Third Coast Bank (NASDAQ: TCBX) ha anunciado una transacción de titulización significativa que involucra un préstamo comercial revolving de 200 millones de dólares originado el 1 de abril de 2025. El préstamo está respaldado por intereses en once Comunidades Residenciales Planificadas en desarrollo en las principales áreas metropolitanas de Texas.
La transacción, organizada por EJF Capital, implica la creación y venta de intereses de participación a través de un proceso estructurado que involucra a EJF CRT 2025-1 Depositor y EJF CRT 2025-1. El Banco retuvo ciertos intereses de participación mientras vendía otros, con el Emisor comprometiendo sus intereses a U.S. Bank Trust Company como Fiduciario del Contrato.
Este movimiento estratégico se espera que reduzca los activos ponderados por riesgo del Banco bajo las reglas de capital actuales y disminuya la relación de préstamos para construcción y desarrollo de terrenos respecto al capital total, mejorando en última instancia la diversidad del portafolio de préstamos.
Third Coast Bank (NASDAQ: TCBX)는 2025년 4월 1일에 시작된 2억 달러 규모의 회전 상업용 부동산 대출과 관련된 중요한 유동화 거래를 발표했습니다. 이 대출은 텍사스의 주요 대도시 지역에서 개발 중인 11개의 주거 마스터 계획 커뮤니티에 대한 이익으로 담보됩니다.
이 거래는 EJF Capital에 의해 주선되었으며, EJF CRT 2025-1 예치자 및 EJF CRT 2025-1을 포함한 구조화된 프로세스를 통해 참여 이익의 생성 및 판매를 포함합니다. 은행은 일부 참여 이익을 유지하면서 다른 이익을 판매했으며, 발행자는 U.S. Bank Trust Company에 이익을 담보로 제공했습니다.
이 전략적 조치는 현재 자본 규정에 따라 은행의 위험 가중 자산을 줄이는 데 기여하고, 총 자본 대비 건설 및 토지 개발 대출 비율을 감소시켜 궁극적으로 대출 포트폴리오의 다양성을 개선할 것으로 기대됩니다.
Third Coast Bank (NASDAQ: TCBX) a annoncé une transaction de titrisation significative impliquant un prêt commercial revolving de 200 millions de dollars émis le 1er avril 2025. Le prêt est garanti par des intérêts dans onze Communautés Résidentielles Maîtrisées en cours de développement dans les grandes zones métropolitaines du Texas.
La transaction, organisée par EJF Capital, implique la création et la vente d'intérêts de participation à travers un processus structuré impliquant EJF CRT 2025-1 Dépositaire et EJF CRT 2025-1. La Banque a conservé certains intérêts de participation tout en en vendant d'autres, l'Émetteur engageant ses intérêts auprès de U.S. Bank Trust Company en tant que Fiduciaire de l'Indenture.
Ce mouvement stratégique devrait réduire les actifs pondérés par le risque de la Banque selon les règles de capital actuelles et diminuer le ratio des prêts à la construction et au développement foncier par rapport au capital total, améliorant ainsi la diversité du portefeuille de prêts.
Third Coast Bank (NASDAQ: TCBX) hat eine bedeutende Verbriefungstransaktion angekündigt, die einen revolvierenden gewerblichen Immobilienkredit über 200 Millionen Dollar betrifft, der am 1. April 2025 vergeben wurde. Der Kredit ist durch Interessen an elf Wohnanlagen, die in großen texanischen Metropolregionen entwickelt werden, gesichert.
Die Transaktion, die von EJF Capital arrangiert wurde, umfasst die Erstellung und den Verkauf von Beteiligungsinteressen durch einen strukturierten Prozess, der EJF CRT 2025-1 Einleger und EJF CRT 2025-1 einbezieht. Die Bank behielt bestimmte Beteiligungsinteressen, während sie andere verkaufte, wobei der Emittent seine Interessen an die U.S. Bank Trust Company als Treuhänder der Indenture verpfändete.
Dieser strategische Schritt soll die risikogewichteten Vermögenswerte der Bank reduzieren und das Verhältnis von Bau- und Grundstücksentwicklungskrediten zum Gesamtkapital verringern, was letztendlich die Diversifizierung des Kreditportfolios verbessert.
- Reduction in risk-weighted assets improving capital ratios
- Decreased exposure to construction and land development loan concentration
- Enhanced loan portfolio diversification
- Strategic partnership with major investment firm (EJF Capital - $5.4B AUM)
- Complex transaction structure may increase operational complexity
- Retained participation interests maintain some exposure to real estate development risks
Insights
Third Coast Bank's $200 million commercial real estate loan securitization represents a significant strategic transaction for a bank with a
First, the transaction reduces risk-weighted assets under current capital rules, effectively improving capital ratios without requiring additional equity raises. Second, it strategically lowers the construction and land development loan concentration ratio, addressing a key regulatory focus area that often constrains regional banks' growth potential.
The structure demonstrates sophisticated balance sheet management - TCBX originated the loan, created and sold participation interests, then purchased the Class A-1 Notes in the securitization. This approach allows the bank to maintain a relationship with the underlying assets while achieving regulatory benefits. The eleven Residential Master Planned Communities in Texas growth markets (Houston, Dallas, Austin) suggests loan quality was sufficient to attract EJF Capital, a
This transaction represents approximately
This securitization transaction addresses two critical regulatory pressure points facing regional banks like Third Coast. By reducing risk-weighted assets, the bank improves its capital adequacy metrics without diluting shareholders through equity issuance - a particularly valuable mechanism in the current regulatory environment where capital requirements continue to trend upward.
More significantly, the transaction reduces the ratio of construction and land development loans to total capital, a specific concentration metric that banking regulators scrutinize intensely. High concentrations in this category often trigger enhanced regulatory oversight, additional capital requirements, and potential lending restrictions. By lowering this ratio, Third Coast gains greater operational flexibility while demonstrating proactive risk management to regulators.
The transaction's structure is noteworthy for maintaining economic alignment - the bank still retains certain participation interests and purchased the Class A-1 Notes, ensuring they maintain skin in the game while achieving regulatory benefits. This balanced approach typically receives more favorable regulatory reception than complete risk transfers.
The involvement of experienced legal counsel (Cadwalader and Mayer Brown) suggests the transaction has been structured to withstand regulatory scrutiny. For a bank of Third Coast's size (
The Mortgage Loan is secured by interests in a portfolio of eleven Residential Master Planned Communities under development located in the
Following the origination of the Mortgage Loan on April 1, 2025, the Bank created participation interests in the Mortgage Loan, one of which was sold to EJF CRT 2025-1 Depositor LLC (the "Depositor"), who subsequently sold that participation interest to EJF CRT 2025-1 LLC (the "Issuer"). The Bank retained the participation interests not sold to the Depositor.
The Issuer pledged its participation interests, representing the Issuer's pro rata economic interest in the Mortgage Loan, to
EJF Financial Debt Strategies GP LLC (the "Sponsor"), an affiliate of EJF Capital, owns
It is expected that these transactions will reduce the Bank's risk-weighted assets as calculated under current risk-based capital rules. It is also expected that these transactions will reduce the ratio of loans for construction, land development and other land to the Bank's total capital, a measure used by the Bank's regulators to inform their supervisory approach to possible loan concentration risk. The Company believes these transactions improve the diversity of the Bank's on-balance sheet loan portfolio.
Bart Caraway, President & CEO of Third Coast Bank, said, "I am incredibly proud of our team's hard work and dedication in successfully completing our first securitization—a landmark achievement for our organization. We believe this transaction strengthens our financial position by reducing construction concentrations, improving risk-based capital ratios, and mitigating credit risk. Most importantly, we believe it opens new opportunities for us to serve our customers with greater efficiency and innovation as we continue driving progress in capital management."
Cadwalader, Wickersham & Taft LLP acted as legal counsel to the Bank on these transactions. Mayer Brown LLP acted as legal counsel to the Sponsor and its affiliates on these transactions.
For media inquiries to the Bank, please contact Ken Dennard or Natalie Hairston at Dennard Lascar Investor Relations (telephone (713) 529-6600 or email TCBX@dennardlascar.com). For media inquiries to EJF Capital, please contact Investor Relations (telephone (571) 982-7281 or email InvestorRelations@ejfcap.com).
About Third Coast Bancshares, Inc.
Third Coast Bancshares, Inc. is a commercially focused,
About EJF Capital
EJF Capital LLC ("EJF") is a global alternative asset management firm focused primarily on regulatory event-driven investing within the financial sector. EJF was founded by Manny Friedman and Neal Wilson in 2005 and is headquartered just outside of
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "looking ahead," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: interest rate risk and fluctuations in interest rates; market conditions and economic trends generally and in the banking industry; our ability to maintain important deposit relationships; our ability to grow or maintain our deposit base; our ability to implement our expansion strategy; our ability to pay dividends on our Series A Convertible Non-Cumulative Preferred Stock; credit risk associated with our business; economic conditions affecting the real estate market; prepayment risks associated with commercial real estate loans; liquidity risks in the securitization market; operational risks related to the administration of securitized assets; and changes in key management personnel. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Contact:
Ken Dennard / Natalie Hairston
Dennard Lascar Investor Relations
(713) 529-6600
TCBX@dennardlascar.com
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SOURCE Third Coast Bancshares
FAQ
What is the size and purpose of Third Coast Bank's (TCBX) recent loan securitization?
How will the April 2025 securitization benefit TCBX's financial position?
Which properties secure TCBX's $200M commercial real estate loan?
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