T
hird Coast Bank (NASDAQ: TCBX) has completed a $150 million securitization of commercial real estate loans in partnership with EJF Capital. The transaction, executed on June 3, 2025, involved the bank creating and selling participation interests to EJF CRT 2025-2 Depositor LLC, which then transferred them to EJF CRT 2025-2 LLC. This marks the bank's second securitization, designed to reduce risk-weighted assets under current capital rules and decrease the ratio of construction and land development loans to total capital.

    EJF Capital, managing approximately $5.3 billion in assets, arranged the transaction, which aims to improve the diversity of the bank's loan portfolio while maintaining regulatory compliance. The securitization reduces the bank's risk-weighted assets, decreases loan concentration risk in construction and land development, and improves loan portfolio diversity.

    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. The transaction structure is notably sophisticated for a bank of Third Coast's size, utilizing a multi-tiered participation and securitization approach.

    Bart Caraway, President & CEO of Third Coast Bank, said, "I am immensely proud of our team's hard work and commitment in successfully completing our second securitization. With each transaction, we are building upon the foundation of our previous experience, turning good into great, and great into best."