T
hird Coast Bank, a Texas-based banking association and subsidiary of Third Coast Bancshares, Inc. (NASDAQ: TCBX), has made a significant move in the commercial real estate market by originating a $200 million revolving loan to one of America's largest private investment firms focused on real estate development.
The loan is secured by interests in 11 Residential Master Planned Communities under development across the Houston, Dallas, and Austin metropolitan areas. EJF Capital LLC, a global alternative asset management firm with approximately $5.4 billion in assets under management as of December 31, 2024, played a key role in arranging the securitization transaction.
Following the loan's origination on April 1, 2025, Third Coast Bank created participation interests and sold one to EJF CRT 2025-1 Depositor LLC, which then sold it to EJF CRT 2025-1 LLC. The bank retained the remaining participation interests.
EJF CRT 2025-1 LLC pledged its participation interest in the loan to U.S. Bank Trust Company, National Association, and issued Asset-Backed Notes, Series 2025-1, consisting of Class A-1 Notes sold to Third Coast Bank and certain Class M-1 Notes sold to affiliates of EJF CRT 2025-1 Depositor LLC.
The transactions are expected to reduce Third Coast Bank's risk-weighted assets and loan concentrations, improving its financial position and regulatory compliance. The bank believes this move enhances the diversity of its on-balance sheet loan portfolio and opens new opportunities for serving customers with greater efficiency and innovation.
"We're proud of our team's hard work in successfully completing our first securitization," said Bart Caraway, President & CEO of Third Coast Bank. "This transaction strengthens our financial position by reducing construction concentrations, improving risk-based capital ratios, and mitigating credit risk."
Cadwalader, Wickersham & Taft LLP served as legal counsel to Third Coast Bank on the transactions, while Mayer Brown LLP represented EJF CRT 2025-1 Depositor LLC and its affiliates.
For media inquiries, please contact Ken Dennard or Natalie Hairston at Dennard Lascar Investor Relations (713) 529-6600 or [email protected].
