What Third Coast Bancshares, Inc. told the SEC could break it.

Third Coast is subject to extensive bank regulation — USA PATRIOT Act/BSA anti-money-laundering rules (violations can block M&A approvals and bring cease-and-desist orders and penalties), the Community Reinvestment Act, Riegle-Neal Section 109 interstate-branching deposit limits, and federal regulators' power to appoint the FDIC as conservator/receiver — exposing it to enforcement, fines and constraints on growth and acquisitions.

“Failure to comply with applicable laws and regulations could subject us and our officers and directors to administrative sanctions and potentially substantial civil money penalties.”

Third Coast's SBA 7(a) lending relies on its SBA Preferred Lender status; if the SBA imposes corrective or enforcement actions and revokes that status, the bank could lose some or all of its SBA customers to competitors that are Preferred Lenders, adversely affecting its business.

“If we lose our status as a Preferred Lender, we may lose some or all of our customers to lenders who are SBA Preferred Lenders, which could adversely affect our business, financial condition and results of operations.”

Third Coast operates primarily in the Greater Houston, Dallas-Fort Worth and Austin-San Antonio markets, with a $4.39 billion loan portfolio weighted toward commercial-and-industrial loans and commercial-real-estate-secured loans located in those Texas markets; a downturn in the Texas regional economy or real-estate values would disproportionately affect credit quality and collateral.

“A substantial portion of our loan portfolio consists of commercial and industrial loans and real estate loans secured by commercial real estate properties located in our primary market areas.”

Third Coast had a 95.0% loan-to-deposit ratio at year-end 2025 and depends on growing and retaining deposits (which can flee to alternative investments) plus FHLB of Dallas borrowing to fund growth; it also carries $81.0M of subordinated debentures and $37.9M on a senior line of credit, so funding-cost pressure or deposit outflows could constrain liquidity.

“Our future growth will largely depend on our ability to grow and maintain our deposit base, which we may not be able to achieve. As of December 31, 2025, we had a loan to deposit ratio of 95.0%.”