Austin, October 25, 2025

News Summary

Third Coast Bancshares, based in Houston, has unveiled its plans to acquire Austin’s Keystone Bank for $123 million. The deal, expected to close in Q1 2026, will consolidate resources and create a financial entity with over $6 billion in total assets. Keystone Bank, recognized for its rapid growth and community-focused banking approach, aims to reach $1 billion in assets within two years. Shareholders of Keystone will be compensated in stock or cash, while both banks are committed to enhancing banking solutions in the Austin area.

 

Austin

Houston-based Third Coast Bancshares has announced plans to acquire Keystone Bank, headquartered in Austin, Texas, in a deal valued at approximately $123 million. The acquisition is set to close in the first quarter of 2026, creating a financial institution with more than $6 billion in total assets.

Keystone Bank operates two branches in the Austin market, along with one branch in Ballinger, Texas, and a loan production office located in Bastrop. The merger agreement will allow Keystone shareholders to receive either 0.45925 shares of Third Coast common stock or a cash equivalent based on a volume-weighted average price for Third Coast shares over a predetermined 20-day trading period. The total cash consideration for the deal will not exceed $20 million, and is based on Third Coast’s closing stock price of $39.17 as of October 21.

It is notable that if Keystone’s shareholders’ equity is determined to be less than $94,576,000 at the time of calculation, the exchange ratio may be adjusted downward. The merger has been unanimously approved by the boards of directors of both companies and is subject to customary closing conditions, including regulatory and shareholder approvals.

Keystone Bank has gained recognition as one of the fastest-growing banks in the country, having raised $18 million in funding recently with plans to achieve $1 billion in assets within two years. This funding will be utilized for expansion, hiring, and enhancing technological capabilities. Both banks have expressed their commitment to delivering premier banking solutions and fostering growth in the greater Austin area.

Keystone Bank was established in 2018 and maintains a community-focused approach, providing a wide range of banking services, including private and commercial loans. The acquisition aligns with broader trends in Texas that have seen significant bank mergers and acquisitions, including Fifth Third’s proposed $10.9 billion acquisition of Comerica and Huntington’s acquisition of Veritex Holdings for $1.9 billion.

Key Aspects of the Acquisition

• Acquirer: Third Coast Bancshares
• Target: Keystone Bank
• Acquisition Value: $123 million
• Expected Closing Date: Q1 2026
• Total Assets Post-Merger: More than $6 billion
• Shareholder Compensation: 0.45925 shares of Third Coast common stock or cash equivalent
• Cash Limit: Up to $20 million
• Keystone Bank’s Goal: $1 billion in assets within two years

Background on Third Coast Bancshares and Keystone Bank

Third Coast Bancshares is a Houston-based financial institution aiming to expand its footprint across Texas. In contrast, Keystone Bank has demonstrated rapid growth since its establishment in 2018, with a focus on community engagement and a comprehensive suite of banking services. The merger will enhance the operational capabilities of both banks and likely strengthen their ability to serve the growing Austin community.

FAQ Section

Key Features

Feature	Details
Acquirer	Third Coast Bancshares
Target	Keystone Bank
Acquisition Value	$123 million
Expected Closing Date	Q1 2026
Total Assets Post-Merger	More than $6 billion
Shareholder Compensation	0.45925 shares of Third Coast common stock or cash equivalent
Cash Limit	Up to $20 million
Keystone Bank’s Goal	$1 billion in assets within two years

 

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Additional Resources

• Banking Dive
• Wikipedia: Third Coast Bancshares
• TipRanks
• Google Search: Third Coast Bancshares acquisition
• Market Screener
• Google Scholar: Keystone Bank growth
• MSN News
• Encyclopedia Britannica: Texas bank mergers
• PRWeb
• Google News: Houston Austin banking news