Third Coast Bancshares to Acquire Keystone Bank in $123 Million Deal
Third Coast Bancshares, based in Houston, has announced its acquisition of Austin’s Keystone Bank in a deal valued at around $123 million. The merger is expected to be finalized in the first quarter of 2026, as reported here.
Creating a Stronger Financial Institution
The merger will result in the formation of a bank with assets exceeding $6 billion, significantly enhancing Third Coast’s presence in Austin, Texas. Keystone Bank currently operates two branches in Austin, a loan production office in Bastrop, and a branch in Ballinger, further expanding its reach in the region.
Third Coast CEO, Bart Caraway, expressed his enthusiasm for the acquisition, stating that Keystone perfectly complements their existing branch network in Texas. He highlighted the shared values of exceptional customer service and community engagement between the two banks.
Keystone’s CEO, Jeff Wilkinson, echoed Caraway’s sentiments, emphasizing the common vision, values, and commitment to customer service that bind the two institutions. The combined resources and expertise are expected to deliver enhanced banking solutions, innovative technology, and personalized services to customers.
Banking M&A Activity in Texas
Texas has witnessed a surge in banking merger and acquisition activities, with several notable deals taking place recently. Fifth Third’s proposed acquisition of Dallas-based Comerica for $10.9 billion and Huntington’s purchase of Veritex Holdings for $1.9 billion are among the significant transactions in the market.
Other acquisitions include Glacier Bank’s acquisition of Guaranty Bancorp for $476.2 million and National Bank Holdings’ purchase of Vista Bancshares for $369.1 million. Prosperity Bancshares and Cornerstone Capital Bancorp have also announced acquisitions in Texas, indicating a trend of consolidation in the banking sector.
Details of the Keystone Bank Acquisition
Under the terms of the deal, Keystone investors will receive either shares of Third Coast common stock or cash based on a predetermined valuation. The total cash consideration is capped at $20 million, ensuring a balanced exchange for shareholders.
The transaction’s value is calculated using Third Coast’s closing stock price and assumes a specific price per Keystone share. Adjustments may be made to the exchange ratio based on Keystone’s equity value, ensuring fairness in the deal.
