On October 22, Third Coast Bancshares Inc., the parent company of Houston-based Third Coast Bank, and Keystone Bancshares Inc., the parent company of Austin-based Keystone Bank SSB, jointly announced the signing of a definitive merger agreement pursuant to which Third Coast will acquire Keystone in a stock and cash transaction valued at approximately $123 million based on Third Coast’s closing stock price as of October 21. Once the transaction is completed, the combined company will have pro forma total assets in excess of $6 billion. It is expected to close during the first quarter of 2026.

Pursuant to the terms of the merger agreement, the combined company will operate under the Third Coast name and brand. The partnership presents a unique opportunity to combine two culturally aligned community banks and strengthen Third Coast’s position in the greater Austin market. Established in 2018, Keystone Bank operates two branches in the Austin market, one branch in Ballinger and a loan production office in Bastrop.

“We are thrilled to join forces with Keystone—a partnership that aligns with our strategy to strengthen our presence in the greater Austin market,” says Bart Caraway, founder, chairman, president and CEO of Third Coast. “Keystone is a highly respected financial institution that shares our core values of exceptional customer service and building lasting relationships within the communities we serve.”

Representing Third Coast was Raymond James & Associates Inc. as financial advisor and Norton Rose Fulbright US LLP as legal advisor. Keystone was represented by Stephens Inc. as financial advisor and Fenimore Kay Harrison LLP as legal advisor.

Established in 2008 in Humble, Third Coast Bank operates 19 branches in the Greater Houston, Dallas/Fort Worth and Austin/San Antonio markets.