$150M CRE Loan Securitization: Third Coast & EJF Capital
- Third Coast Bank, a subsidiary of Third Coast Bancshares, inc., finalized a $150 million securitization of its commercial real estate loans.EJF Capital LLC, an alternative asset manager, arranged...
- The securitization involved Third Coast Bank creating and selling participation interests in mortgage loans to EJF CRT 2025-2 Depositor LLC.
- The bank anticipates that this transaction will decrease its risk-weighted assets under current regulatory capital requirements.
Third Coast Bank decisively completed a $150 million commercial real estate loan securitization, a move orchestrated by EJF Capital LLC. This strategic initiative successfully reduces risk-weighted assets and diversifies the bank’s balance sheet, enhancing its financial health. The transaction involved the sale of participation interests in mortgage loans, leading to the issuance of asset-backed notes.for Third Coast Bank, this strengthens its foundation and reinforces its commitment to creating stakeholder value. This follows a previous $100 million securitization deal, highlighting the ongoing partnership. News Directory 3 brings you the breaking financial news as it happens. Discover what’s next for Third Coast Bank.
Third Coast Bank Completes $150M Commercial Real Estate Loan Securitization
Updated June 04, 2025
Third Coast Bank, a subsidiary of Third Coast Bancshares, inc., finalized a $150 million securitization of its commercial real estate loans.EJF Capital LLC, an alternative asset manager, arranged the transaction.this strategic move aims to bolster the bank’s financial health and diversify its assets.
The securitization involved Third Coast Bank creating and selling participation interests in mortgage loans to EJF CRT 2025-2 Depositor LLC. These interests were then transferred to EJF CRT 2025-2 LLC, which issued asset-backed notes, series 2025-2, including Class A-1 and Class M-1 Notes. Third Coast Bank purchased the Class A-1 Notes, while affiliates of the depositor acquired certain Class M-1 Notes.
The bank anticipates that this transaction will decrease its risk-weighted assets under current regulatory capital requirements. It should also lower the ratio of construction and land growth loans to total capital, which are key indicators of loan concentration risk. Ultimately, the securitization is expected to enhance the diversity of the bank’s balance sheet loan portfolio, improving its overall financial stability.
“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,” said Bart Caraway, president and CEO of Third Coast Bank.
This transaction follows EJF Capital’s April 9 announcement of a $100 million securitization for Third Coast Bank, backed by interests in residential master-planned communities under development across the Houston, Dallas, and Austin metro areas in Texas. This earlier deal highlights the ongoing partnership between the two firms.
What’s next
Third Coast Bank plans to continue exploring strategic opportunities to optimize its balance sheet and enhance shareholder value. Further securitizations and partnerships may be considered as the bank seeks to navigate the evolving financial landscape.
Worth a look