Third Coast Bank, EJF Capital Complete $150M CRE Loan Securitization
Third Coast Bank, a wholly owned subsidiary of Third Coast Bancshares, Inc., has completed a $150 million securitization of commercial real estate loans originated by the bank. The transaction was arranged by alternative asset manager EJF Capital LLC.
Third Coast Bank created and sold participation interests in mortgage loans to EJF CRT 2025-2 Depositor LLC. The depositor then transferred these interests to EJF CRT 2025-2 LLC, which issued asset-backed notes, Series 2025-2, comprising Class A-1 and Class M-1 Notes. The Class A-1 Notes were purchased by Third Coast Bank, while affiliates of the depositor acquired certain Class M-1 Notes.
The transaction is expected to reduce the bank’s risk-weighted assets under current regulatory capital requirements and lower its ratio of construction and land development loans to total capital—key indicators of loan concentration risk. It also enhances the diversity of the bank’s balance sheet loan portfolio.
Bart Caraway, President and CEO of Third Coast Bank, said, “I am immensely proud of our team’s hard work in completing our second securitization. Each transaction strengthens our foundation and reinforces our commitment to creating stakeholder value.”
The transaction follows EJF Capital’s April 9 announcement of a separate $100 million securitization for Third Coast Bank backed by interests in a portfolio of 11 residential master-planned communities under development across the Houston, Dallas, and Austin metro areas in Texas.
Legal counsel was provided by Cadwalader, Wickersham & Taft LLP for Third Coast Bank and Mayer Brown LLP for EJF Capital and its affiliates.
