Third Coast Bank
Texas-based Third Coast Bank has secured a major financial deal worth $100 million with help from EJF Capital, a global investment firm. The goal is to support ongoing residential developments across major Texas cities.
The arrangement centers around a $200 million loan issued by Third Coast Bank to one of the largest real estate investment firms in the U.S. The loan is tied to 11 large-scale residential communities currently being developed in the Houston, Dallas, and Austin areas.
EJF Capital stepped in to help by packaging and selling part of that loan through a process known as securitization — a financial tool that spreads out risk and helps free up money for the bank to use elsewhere.
“This deal helps the bank reduce its financial risk and keep its lending portfolio balanced,” said Manny Friedman, co-founder of EJF Capital, in a statement. “We’re proud to work with U.S. banks to provide flexible financial solutions that support smart, long-term growth.”
Third Coast Bancshares Inc. is a commercially focused bank founded in 2008 in Humble. It conducts banking operations through 19 branches in the four largest metro areas in Texas, including Fort Worth and Dallas.
EJF Capital is a global alternative asset management firm focused primarily on regulatory event-driven investing within the financial sector. EJF was founded by Manny Friedman and Neal Wilson in 2005 and is headquartered outside of Washington, D.C., with an additional research office in London. As of December, EJF manages approximately $5.4 billion.
Legal advisers for the transaction included Mayer Brown LLP, representing EJF Capital, and Cadwalader, Wickersham & Taft LLP, representing Third Coast Bank.
The residential communities tied to this deal are expected to play a key role in meeting housing demand in Texas’ fast-growing metro areas.