Third Coast Bank looks to grow Dallas, Oklahoma City via M&A

• Key insight: A larger Texas bank is pairing with a profitable but capital-constrained seller based in Oklahoma.
• Expert quote: “Now, with us, they’ll be able to continue to ride along with those same customers as they get bigger.” — Third Coast CEO Bart Caraway
• Forward look: Third Coast Bancshares is projecting 14% earnings-per-share accretion in 2028 after acquiring Great Plains.

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Third Coast Bancshares CEO Bart Caraway says his company’s pending merger with Oklahoma-based Great Plains Bancshares was rooted in a conversation he had with Mark Russell, the seller’s CEO, back in February.

“We met at a conference and basically hit it off,” Caraway told American Banker. “Our core philosophies were so aligned that it was a very easy conversation to get started. We left the conference saying, `We should spend more time together.'” 

Negotiations and due diligence “moved very fast over the summer.” Caraway added. “We progressed pretty quickly to the deal structure.”

In a transaction announced Wednesday, Third Coast agreed to pay $239.6 million in stock for the $1.9 billion-asset Great Plains. The deal, which is expected to close in the first quarter of 2027, will deepen Third Coast’s footprint in Dallas while providing an entree into Oklahoma City. Caraway described both cities as affluent and fast-growing markets. 

Beyond geography, Third Coast hopes to benefit from Great Plains’ stronger consumer-lending operation. And the acquirer’s more sophisticated middle-market capabilities should help Great Plains’ bankers capture more business from their commercial clients, according to Caraway.

“We’re certainly very optimistic,” the Third Coast CEO said. “We’ve already identified a few wins potentially. As their customer base [evolved], they would probably outgrow Great Plains’ capabilities. Now, with us, they’ll be able to continue to ride along with those same customers as they get bigger.” 

Great Plains traces its roots back to Hollis, Oklahoma. It was founded in 1907 as the Groves National Bank of Hollis. The company rebranded as Great Plains in 1996. It entered Texas in 2022 after acquiring Providence Bancshares in the Dallas-Fort Worth area.

Founded in 2008, Third Coast’s vintage is more recent. Although the Humble, Texas-based bank has a presence in Dallas, the majority of its 20 branches are in South Texas, centered around Houston, Austin and San Antonio.

The privately held Great Plains reported net income totaling $17.1 million through the first six months of 2026 and $31.1 million for all of 2025, according to data from the Federal Deposit Insurance Corp.

Great Plains’ 7.97% average yield on loans is slightly higher than the comparable figure for Third Coast, while its 2.34% cost of deposits is slightly lower. At 5.34%, Great Plains’ second-quarter net interest margin was substantially higher than the industry average of 3.32%.

Great Plains was primed for additional growth, but it was confronting balance-sheet and capital constraints, Caraway said. 

“Under our umbrella together, it basically unleashed their talent and capabilities — or we hope that’s what will happen — to be able to continue to build and do what they do very well, but with more resources,” Caraway said. “That’s where our vision is.”

The combined bank is expected to start with roughly $9 billion of assets, $7.3 billion of loans and $7.8 billion of deposits. Third Coast is projecting cost savings of $17 million, or 20% of Great Plains’ estimated non-interest expense base. It’s forecasting 14% earnings-per-share accretion in 2028, the first full year of combined operations. 

“Third Coast’s commitment to relationship banking, local leadership and community investment makes this partnership a natural fit,” Russell said in a press release.

Russell is expected to occupy a senior role in the merged company, and two Great Plains representatives will join Third Coast’s board.

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Piper Sandler analyst Stephen Scouten characterized the transaction as a “solid” addition for Third Coast. “They add a granular and lower-cost deposit base while expanding in the Dallas-Fort Worth market and adding an Oklahoma presence.”

“Deal terms appear reasonable,” Scouten added. 

Great Plains will retain its brand identity after the deal closes, operating as a division of Third Coast Bank.

“We’re more about the customer focus than pride in a particular name,” Caraway said.