Business
Third Coast Bank Announces $150 Million Securitization of Commercial Real Estate Loans in a Transaction Sponsored by EJF Capital LLC
Third Coast Bank, a Texas banking association (the "Bank") and a wholly owned bank subsidiary of Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the "Company," "we" or "our"), today announced that it entered into a $150 million securitization transaction of certain commercial real estate loans (the "Mortgage Loans") originated by the Bank.
About this update from Third Coast Bancshares, Inc.
[{"type":"text","content":"HOUSTON, June 4, 2025 /PRNewswire/ -- Third Coast Bank, a Texas banking association (the "Bank") and a wholly owned bank subsidiary of Third Coast Bancshares, Inc. (NASDAQ: TCBX) (the "Company," "we" or "our"), today announced that it entered into a $150 million securitization transaction of certain commercial real estate loans (the "Mortgage Loans") originated by the Bank.","length":426,"tagName":"p"},{"type":"text","content":"EJF Capital LLC ("EJF Capital"), a global alternative asset management firm with approximately $5.3 billion assets under management as of March 31, 2025, arranged the securitization transaction described below.","length":220,"tagName":"p"},{"type":"text","content":"Following the origination of the Mortgage Loans, on June 3, 2025, the Bank created participation interests in the Mortgage Loans, certain of which were sold to EJF CRT 2025-2 Depositor LLC (the "Depositor"), who subsequently sold such participation interests to EJF CRT 2025-2 LLC (the "Issuer"). The Bank retained the participation interests not sold to the Depositor.","length":389,"tagName":"p"},{"type":"text","content":"The Issuer pledged its participation interests, representing the Issuer's pro rata economic interest in the Mortgage Loans, to U.S. Bank Trust Company, National Association (the "Indenture Trustee"), pursuant to an Indenture, and issued its Asset-Backed Notes, Series 2025-2, consisting of Class A-1 Notes and Class M-1 Notes. The Issuer sold the Class A-1 Notes to the Bank and certain of the Class M-1 Notes to affiliates of the Depositor on June 3, 2025.","length":471,"tagName":"p"},{"type":"text","content":"EJF Financial Debt Strategies GP LLC (the "Sponsor"), an affiliate of EJF Capital, owns 100% of the equity interests in the Depositor, which in turn owns 100% of the beneficial equity interest in the Issuer. The Bank is not affiliated with the Sponsor, the Depositor or the Issuer.","length":291,"tagName":"p"},{"type":"text","content":"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 cap...