Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $106.9 million, a 17% increase from $91.7 million in Q1 2024 [7] - Expenses also increased by 17% to $100.1 million from $85.2 million in the previous year [8] - Net income rose to $4.7 million, a 2% increase from $4.6 million in Q1 2024, translating to diluted earnings per share of $0.19, unchanged from the prior year [9] - Shareholders' equity reached a record high of $298.4 million, up 7% from $279.1 million last year [10] - The total managed portfolio size increased to $3.45 billion, a 24% rise from $2.79 billion as of March 31, 2024 [9][12] Business Line Data and Key Metrics Changes - The company originated $451 million in new contracts in Q1 2025, a 31.5% increase from $346 million in Q1 2024 [12] - The average APR was maintained at 20.32%, with loan-to-value ratios reduced to around 117-118% [15] - Core operating expenses were $46.1 million, a 3% increase from $44.9 million last year, but as a percentage of the managed portfolio, they improved to 5.2% from 6% [11] Market Data and Key Metrics Changes - The unemployment rate is currently at 4.2%, with predictions of a slight increase to 4.6% by the end of 2026, which is viewed as a healthy indicator for the business [22] - The company reported a total delinquency rate of 12.35%, slightly improved from 12.39% in Q1 2024 [16] - Annualized net charge-offs were 7.5% of the average portfolio, down from 7.84% in the previous year [17] Company Strategy and Development Direction - The company aims to grow while maintaining credit quality, focusing on acquiring high creditworthy paper and managing expenses frugally [4][24] - There is a strategic emphasis on tightening credit terms while still expanding the dealer base and entering new territories [14] - The company is leveraging technology, such as AI voice agents, to improve operational efficiency and focus on more challenging accounts [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current economic environment, noting that while interest rates are high, they do not expect them to rise further [24] - The company is focused on navigating through the legacy issues of lower-quality paper from 2022 and early 2023, with a significant portion of the portfolio now being high-quality [27] - The industry is viewed as stable, with no new entrants and strong players remaining, which bodes well for future growth [28][29] Other Important Information - The company completed its second quarter securitization successfully, despite market uncertainties [6] - The company continues to maintain a workforce of around 950 employees, achieving a record high in managed portfolio relative to headcount [21] Q&A Session Summary - No specific questions or answers were documented in the provided content, thus this section is not applicable.

Financial Data and Key Metrics Changes - The company achieved record quarterly revenue, net effective spread, and core earnings in Q1 2025, with core earnings increasing by 6% year-over-year to $46 million [5][16] - Gross new business volume reached $1.8 billion, contributing to a net increase of $232 million in outstanding business volume, totaling $29.8 billion at the end of the quarter [6][16] - Net effective spread reached a record of $90 million or 117 basis points, with sequential and year-over-year improvements of $2.5 million and $6.9 million respectively [16][23] Business Line Data and Key Metrics Changes - The infrastructure finance line of business grew by approximately $750 million, with significant contributions from the broadband infrastructure segment, which grew 22% since year-end [8][9] - The renewable energy segment saw growth of nearly $200 million, a 14% increase since year-end [9] - Farm and ranch loan purchases increased by $86 million despite $500 million in scheduled maturities, indicating strong demand in this segment [9][10] Market Data and Key Metrics Changes - The company noted a strong demand for financing opportunities in rural telecommunication providers driven by fiber line expansion and wireless broadband deployment [8] - The overall credit profile remained strong, with a total allowance for losses of $27 million, reflecting a $1.7 million increase from year-end 2024 [19][20] - Ninety-day delinquencies increased to 54 basis points, up from 37 basis points at year-end, reflecting seasonal patterns [20] Company Strategy and Development Direction - The company continues to focus on mission-based profitable growth, emphasizing diversification of its portfolio to create opportunities in various interest rate environments [6][12] - Strategic investments and talent acquisition in infrastructure finance and renewable energy are prioritized to build expertise and capacity [9][12] - The company plans to enhance its securitization program to optimize the balance sheet and target new asset opportunities [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating broader market uncertainties stemming from interest rates, regulatory shifts, and policy changes [5][13] - The company anticipates continued growth in the farm and ranch segment due to agricultural economic tightening and potential government support programs [9][11] - Management remains optimistic about the future, focusing on fulfilling its mission efficiently and innovatively [27] Other Important Information - Operating expenses increased by 8% year-over-year due to investments in infrastructure technology and higher licensing fees [17] - The company maintains a strong capital position, with core capital of $1.5 billion exceeding statutory requirements by $601 million [20][21] - The company has approximately $1 billion in cash and short-term instruments, providing a strong liquidity position [23] Q&A Session Summary Question: Impact of tariffs on agricultural shipments to China - Management discussed historical support programs for farmers during tariff disruptions and noted current shifts in trade patterns towards Mexico [30][32] Question: Dynamics of net effective spread across business lines - Management explained that the net effective spread increase was driven by strong loan activity in the farm and ranch segment, with a robust pipeline heading into Q2 [34][36] Question: Changes in funding costs and securitization expectations - Management highlighted improved funding dynamics from Q4 to Q1 and expressed optimism about upcoming securitization transactions [48][49] Question: Renewable energy tax credits and outlook - Management confirmed no new tax credit activity in Q1 but remains optimistic about future opportunities [55] Question: Applications of AI within the company - Management indicated a focus on using AI to improve internal processes, particularly in loan document management [71][72]

Financial Data and Key Metrics Changes - The company achieved record quarterly revenue, net effective spread, and core earnings in Q1 2025, with core earnings increasing by 6% year-over-year to $46 million [4][15] - Gross new business volume reached $1.8 billion, with outstanding business volume growing by $232 million to $29.8 billion [5][15] - Net effective spread reached a record of $90 million or 117 basis points, with sequential and year-over-year improvements of $2.5 million and $6.9 million respectively [15][22] Business Line Data and Key Metrics Changes - The infrastructure finance line of business grew by approximately $750 million, with significant contributions from the power and utility segment and broadband infrastructure segment growing by 22% [6][8] - Renewable energy segment grew by nearly $200 million, a 14% increase since year-end 2024 [8] - Farm and ranch loan purchases saw a net increase of $86 million despite $500 million in scheduled maturities [9][10] Market Data and Key Metrics Changes - The company noted a strong demand for farm and ranch assets, with a focus on liquidity and working capital needs due to tightening agricultural economic conditions [60] - The overall credit profile remained strong, with 90-day delinquencies at 54 basis points, up from 37 basis points at year-end 2024 [18][19] Company Strategy and Development Direction - The company continues to focus on mission-based profitable growth, diversifying its portfolio to create opportunities in various interest rate environments [5][12] - Strategic investments and talent acquisition in infrastructure finance and renewable energy are prioritized to build expertise and capacity [8][12] - The company plans to enhance its securitization program to optimize the balance sheet and target new asset opportunities [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating broader market uncertainties related to interest rates, regulatory shifts, and government actions [5][12] - The company anticipates continued growth in the farm and ranch segment due to ongoing agricultural economic tightening and potential government support programs [10][61] - Management highlighted a strong liquidity position with 289 days of liquidity and approximately $1 billion in cash and short-term instruments [22][23] Other Important Information - Operating expenses increased by 8% year-over-year due to investments in infrastructure technology and higher licensing fees [16] - The company’s core capital of $1.5 billion exceeded statutory requirements by $601 million or 65% as of March 31, 2025 [19][20] Q&A Session Summary Question: Impact of tariffs on agricultural shipments to China - Management discussed historical support programs for farmers during tariff disruptions and noted current shifts in trade patterns towards Mexico [28][30] Question: Dynamics of net effective spread across business lines - Management explained that the net effective spread increase was driven by strong loan activity in the farm and ranch segment, while broadband and renewable energy segments experienced slight declines [34][36] Question: Changes in funding costs and upcoming securitization - Management indicated improved funding dynamics from Q4 to Q1 and expressed optimism about the upcoming securitization transaction [48][50] Question: Outlook for renewable energy and tax credits - Management confirmed no new tax credit activity in Q1 but remains optimistic about future opportunities [54][55] Question: Applications of AI within the company - Management highlighted the focus on using AI to improve internal processes, particularly in loan document management [70][72]

Financial Data and Key Metrics Changes - The company reported GAAP net income of $0.35 per share and adjusted distributable earnings (ADE) of $0.39 per share, which continue to cover dividends [5][13] - The recourse debt to equity ratio decreased to 1.7:1 from 1.8:1 quarter over quarter, indicating improved leverage [10][18] - Book value per common share stood at $13.44, with a total economic return for the first quarter of 9.5% annualized [19] Business Line Data and Key Metrics Changes - The adjusted long credit portfolio decreased by 4% to $3.3 billion due to securitizations and a smaller residential transitional loan portfolio [17] - The Longbridge portfolio increased by 31% sequentially to $549 million, driven by proprietary reverse mortgage loan originations [17] - The agency RMBS portfolio declined by 14% to $256 million as the company rotated capital into higher yielding opportunities [17] Market Data and Key Metrics Changes - The weighted average borrowing rate on recourse borrowings decreased by 12 basis points to 6.09% [18] - The net interest margin (NIM) on the credit portfolio decreased by 12 basis points, while the NIM on agency increased by 24 basis points [18] Company Strategy and Development Direction - The company is focused on establishing joint ventures to secure consistent access to high-quality loans at attractive pricing [10] - The management emphasized the importance of dynamic hedging strategies and a diversified portfolio to protect book value during market volatility [30][32] - The company is tightening underwriting guidelines to focus on higher FICO borrowers and loans with more extensive underwriting [23] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to take advantage of heightened market volatility and recharged opportunities [34] - The company noted that the current environment is well-suited to its core strengths, with short-duration loan portfolios steadily returning principal [30] - Management highlighted the ongoing positive contributions from the mortgage servicing rights (MSR) portfolio, despite not expecting the same mark-to-market gains as in the previous quarter [20][22] Other Important Information - The company completed five new securitization deals in the first quarter, taking advantage of tight spreads [7] - The company sold a variety of credit-sensitive securities to lock in gains and enhance liquidity [9] - The company is actively developing proprietary tools to support loan origination [28] Q&A Session Summary Question: Have you been able to deploy a material amount of capital in attractive trading opportunities? - Management indicated that while there was not material growth in April, the portfolio has grown net relative to March 31, with growth in non-QM and opportunistic securities [38][39] Question: Can you provide more detail on the resolutions of commercial bridge loans? - Management explained that one was a discounted payoff, another an REO sale, and one is in active CapEx and lease-up, freeing up $20 million to $25 million for reinvestment [44][46] Question: Does the high level of spread volatility impact your near-term appetite for loan acquisitions? - Management noted that heightened volatility allows for opportunities to buy securities and loans, with a balanced market of buyers and sellers [56][58] Question: Can you share timing and size on potential joint ventures with originators? - Management stated that the investments would be under $5 million in total, aimed at diversifying sourcing channels [68][70] Question: Is the increased value on consumer relationships a reflection of the current lock-in effect? - Management believes it reflects a broader trend in the mortgage space, emphasizing the importance of maintaining customer relationships over time [75][80]

Financial Data and Key Metrics Changes - The company reported GAAP net income of $0.35 per share and adjusted distributable earnings (ADE) of $0.39 per share, which continue to cover dividends [5][13] - The recourse debt to equity ratio decreased to 1.7:1 from 1.8:1 quarter over quarter, indicating improved leverage management [10][18] - Book value per common share stood at $13.44, with a total economic return for the first quarter of 9.5% annualized [19] Business Line Data and Key Metrics Changes - The adjusted long credit portfolio decreased by 4% to $3.3 billion due to securitizations and a smaller residential transitional loan portfolio [17] - The Longbridge portfolio increased by 31% sequentially to $549 million, driven by proprietary reverse mortgage loan originations [17] - The agency RMBS portfolio declined by 14% to $256 million as the company rotated capital into higher yielding opportunities [18] Market Data and Key Metrics Changes - The weighted average borrowing rate on recourse borrowings decreased by 12 basis points to 6.09% [18] - The net interest margin (NIM) on the credit portfolio decreased by 12 basis points, while the NIM on agency increased by 24 basis points [18] Company Strategy and Development Direction - The company is focused on establishing joint ventures to secure consistent access to high-quality loans at attractive pricing [10] - The company is tightening underwriting guidelines to focus on higher FICO borrowers and loans with more extensive underwriting [23] - The company is actively developing proprietary tools to support loan origination and enhance operational efficiency [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to take advantage of heightened market volatility and recharged opportunity sets [30][34] - The company anticipates ongoing meaningful contributions to ADE from its mortgage servicing rights (MSR) portfolio [21] - Management noted that the current high levels of volatility are creating compelling trading opportunities [30] Other Important Information - The company completed five new securitization deals in the first quarter, taking advantage of tight spreads [7] - The company sold a variety of credit-sensitive securities to lock in gains and enhance liquidity [9] - The company expects to resolve remaining significant workout assets by the end of the second quarter [10] Q&A Session Summary Question: Have you been able to deploy a material amount of capital in attractive trading opportunities? - Management indicated that while there was not material growth in April, the portfolio has grown net relative to March 31, with growth in non-QM and non-agency MBS [38][39] Question: Can you provide more detail on the resolutions of commercial bridge loans? - Management clarified that one was a discounted payoff and another was an REO sale, freeing up $20 million to $25 million for reinvestment [44][46] Question: Does the high level of spread volatility impact your near-term appetite for loan acquisitions? - Management noted that they have been diligent about hedging spread widening risk and have found opportunities to buy loans as spreads tightened [56][58] Question: Can you share timing and size on potential joint ventures with originators? - Management stated that the investments would be under $5 million in total and are expected to close in the next quarter or two [69][74] Question: Is the $0.9 earnings run rate for the Longbridge segment still achievable? - Management confirmed that the $0.9 run rate is still achievable, with seasonal trends affecting volumes [86][89] Question: Can you discuss current performance and dynamics in the CLO market? - Management indicated that CLOs represent a small part of the portfolio and recent negative performance was due to spread widening rather than underlying credit issues [91][92]

Financial Data and Key Metrics Changes - Earnings available for distribution improved by 11% and book value increased by 7.4% with an economic return of 9.2% for the quarter [6] - GAAP net income for the first quarter was $145.9 million or $1.77 per share, while GAAP book value at the end of the quarter was $21.17 per share [13] - Economic net interest income for the first quarter was $72.3 million with a yield on average interest-earning assets of 5.9% and an average cost of funds of 4.4%, resulting in a net interest spread of 1.5% [14] Business Line Data and Key Metrics Changes - Third-party loans under management by Palisades Advisory Services increased by 43% year over year, reaching nearly $24 billion [7] - The company executed impactful balance sheet moves, including cash-out refinancing that unlocked $187 million [8] - The company settled $100 million in residential transition loans during the quarter, expecting mid-teen levered returns [9] Market Data and Key Metrics Changes - National home price growth was 3.9% year over year, with varying performance across regions [22] - Existing home sales declined to a 4 million unit annualized pace, marking the slowest first quarter since 2009 [22] - Delinquency rates remained stable at 8.9% for the re-performing loan portfolio, with prepayments at 5.5% [24] Company Strategy and Development Direction - The company aims to build a hybrid mortgage REIT that is resilient and diversified, focusing on diversifying the portfolio and growing recurring fee income [11][32] - The strategy includes adding Agency RMBS assets and evaluating MSR opportunities to generate attractive returns [31] - The company is focused on disciplined risk management and thoughtful portfolio construction to support attractive risk-adjusted returns [32] Management's Comments on Operating Environment and Future Outlook - Management noted that despite market volatility, the company is holding steady and expects to continue growing third-party loans under management [10] - The current book value is estimated to be flat to slightly down, with a focus on building liquidity [10][36] - Management expressed cautious optimism regarding the growth potential of the third-party business, depending on the mortgage market [42] Other Important Information - The company ended the quarter with $697 million in total cash and unencumbered assets, enhancing liquidity [14] - The company refinanced two structured repo lines, extending maturities and lowering costs, which unlocked additional cash for investment [27] Q&A Session Summary Question: Clarification on book value performance - Management indicated that book value was down about 40 basis points as of the latest update [35] Question: Timing for deploying freed-up investment capital - Approximately 33% to 40% of the $187 million has been deployed, with a focus on building liquidity [36][37] Question: Outlook for third-party business growth - Management is bullish on growth potential, depending on the mortgage market and client acquisition [42] Question: Sensitivity to higher delinquency rates - Management noted that delinquencies in the re-performing loan portfolio are stable and not considered high for that product type [58][62] Question: Details on new loan facilities and advance rates - Management did not disclose specific advance rates but confirmed that the facilities are structured repo facilities with limited mark-to-market features [63][65]

Financial Data and Key Metrics Changes - Reported contract sales increased by 10% to $721 million, and adjusted EBITDA was $248 million with margins excluding reimbursements at 22% [13][23] - Total revenue excluding cost reimbursements grew by 11% to $1.1 billion [23] - Adjusted free cash flow for the quarter was $185 million, with a cash flow conversion rate of 75% [29][30] Business Line Data and Key Metrics Changes - Contract sales in the real estate business were $721 million, up 10% year-over-year, with VPG growing 15% to over $4,100 [24] - Rental and ancillary revenues reached $187 million, with a segment loss of $19 million due to elevated expenses [28] - Financing business revenue was $125 million, with segment profit at $70 million and margins of 56% [25] Market Data and Key Metrics Changes - Occupancy rate remained flat at 77%, with consolidated arrivals in the second quarter ahead of the prior year [14] - The marketing package pipeline was robust with over 725,000 packages, indicating solid booking growth [14] - Member count was 725,000 at the end of the quarter, with a net owner growth (NOG) of just under 1% [15][28] Company Strategy and Development Direction - The company is focused on enhancing lead generation, execution, and product enhancements to support EBITDA and cash flow goals [17][18] - Integration with Bluegreen is progressing well, achieving $89 million in cost synergies, with a target of $100 million by year-end [19] - The company maintains a disciplined approach to process and execution while adapting to macroeconomic volatility [10][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased macroeconomic volatility but emphasized the company's strong fundamentals and proactive initiatives [10][12] - The company is maintaining its EBITDA guidance for the year, expecting to navigate through potential uncertainties effectively [12][31] - Management expressed confidence in the demand for experiences over goods, which may continue to grow despite economic challenges [86] Other Important Information - The company repurchased $150 million worth of stock during the quarter, with a commitment to continue capital returns [30] - The liquidity position included $259 million in unrestricted cash and $870 million available under the revolving credit facility [32] Q&A Session Summary Question: Consumer behavior and forward bookings - Management noted no material changes in forward bookings, attributing stability to the prepaid nature of owner and package sales [35][37] Question: New owner mix versus owned mix - Management indicated that the mix is controllable and expects continued strong performance despite seasonal shifts [39][40] Question: Balance sheet optimization - Management clarified that a portion of unsecuritized receivables is not immediately securitizable but has a path for future securitization [46][50] Question: VPG performance and Bluegreen customer upgrades - Management reported strong VPG growth across all segments, particularly among Bluegreen owners, with significant outperformance [53] Question: KPIs and growth expectations - Management expects mid to higher single-digit VPG growth for the remainder of the year, despite some challenges in tour flow [60] Question: Strategic initiatives for financing and engagement - Management is standardizing financing programs and enhancing value propositions to drive engagement and performance [64][68]

Core Insights - Mobilize Financial Services Group has successfully placed a securitization backed by auto loans from its German branch, totaling 624 million euros [2] - The securitization includes 611 million euros of Senior notes and 13 million euros of subordinated notes, rated AAA(sf) / Aaa(sf) and AAA(sf) / Aa1(sf) respectively by DBRS and Moody's [2] Group 1: Securitization Details - The Senior tranche has a weighted average life of 2.95 years and a coupon of Euribor 1 month + 62bps [3] - The subordinated notes have a weighted average life of 4.66 years with a coupon of Euribor 1 month + 90bps [3] - This transaction highlights the diversified financing sources available to the company [3] Group 2: Company Overview - Mobilize Financial Services is a subsidiary of Renault Group, focusing on innovative financial services for sustainable mobility [5] - The company operates in 35 countries with nearly 4,000 employees and financed over 1.3 million contracts in 2024 [6] - As of December 2024, the company reported average earning assets of 55.9 billion euros and pre-tax earnings of 1,194 million euros [6] Group 3: Deposit-Taking Business - Since 2012, the company has developed a deposit-taking business, with net deposits reaching 30.5 billion euros by the end of December 2024, accounting for 50% of its net assets [7]

Financial Data and Key Metrics Changes - Earnings available for distribution (EAD) was $0.52 per diluted share, representing an 8% year-over-year growth, marking the 22nd consecutive quarter where EAD exceeded common dividends paid [17] - GAAP net income was $36.5 million or $0.07 per diluted share, with a 2% return on equity [17] - Book value at the end of the quarter was $12.39, with the company trading at $10.40, indicating that equity is perceived as severely undervalued [19][30] Business Line Data and Key Metrics Changes - Genesis Capital produced nearly $1 billion in production, reflecting a 7% increase year-over-year [20] - Sculptor's asset management business reported $35 billion of assets under management (AUM) with $1.4 billion of gross inflows across the platform [21] - Newrez, as the third-largest servicer and fifth-largest originator, had a funded volume of just under $12 billion, generating $270 million of pre-tax income [23][43] Market Data and Key Metrics Changes - The company has over $80 billion of assets under management, with significant growth in various sectors including real estate, credit, energy, and infrastructure [15][16] - The servicing portfolio at Newrez is approximately $850 billion, which includes $509 billion of owned mortgage servicing rights (MSRs) [47] Company Strategy and Development Direction - The company aims to grow off-balance sheet capital and expand investment verticals, including energy transition and infrastructure funds [26][27] - There is a focus on building partnerships with limited partners (LPs) to enhance capital raising efforts and improve overall business performance [27][73] - The company is exploring various capital actions to unlock shareholder value, including potential public listings and restructuring [59][113] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility, emphasizing the importance of performance and risk management [6][7] - The outlook for the asset management business remains positive, with expectations of continued inflows and strong performance across various funds [37][80] - Management is optimistic about the potential for acquisitions in both the mortgage and asset management sectors, particularly in light of lower valuations in the current market [68][69] Other Important Information - The company is rolling out MSR funds, which are expected to attract significant demand in the marketplace [12][85] - The SPAC initiative aims to generate asset management fees and create off-balance sheet investment opportunities [40][108] Q&A Session Summary Question: Update on the Cooper Rocket transaction and its impact on Newrez - Management indicated that it would be business as usual for Newrez, with potential opportunities for subservicing arising from the transaction [56] Question: Thoughts on potential acquisition opportunities - Management confirmed an active M&A pipeline, particularly in the mortgage and asset management spaces, with a focus on scaling the credit business [68][69] Question: Fundraising activity and LP appetite amid volatility - Management reported strong fundraising momentum and emphasized the importance of building relationships with LPs for future success [72][73] Question: Performance and returns at Sculptor - Management highlighted strong performance across the credit and real estate businesses, with significant commitments in the real estate fund [80][81] Question: Insights on the securitization market amid volatility - Management noted that the market remains open for deals, with opportunities arising from wider spreads [95][96] Question: Update on the SPAC vehicle and its strategic rationale - Management explained that the SPAC provides a low-cost option for generating asset management fees and deploying capital effectively [108] Question: Potential structural changes to unlock value - Management is exploring various options, including the possibility of transitioning to a C-Corp structure to enhance valuation [127][130]

Core Viewpoint - Third Coast Bank has successfully originated a $200 million revolving commercial real estate loan, marking a significant achievement for the organization and enhancing its financial position through improved risk management and capital efficiency [1][7]. Group 1: Loan Details - The $200 million mortgage loan is secured by a portfolio of eleven Residential Master Planned Communities under development in the Houston, Dallas, and Austin metropolitan areas of Texas [2]. - EJF Capital LLC, a global alternative asset management firm with approximately $5.4 billion in assets under management as of December 31, 2024, arranged the securitization transaction related to the mortgage loan [2][10]. Group 2: Securitization Process - Following the loan origination, Third Coast Bank created participation interests in the mortgage loan, selling one to EJF CRT 2025-1 Depositor LLC, which then sold it to EJF CRT 2025-1 LLC [3]. - The Issuer pledged its participation interests to U.S. Bank Trust Company, National Association, and issued Asset-Backed Notes, including Class A-1 and Class M-1 Notes, with the Class A-1 Notes sold to the Bank [4]. Group 3: Financial Impact - The transactions are expected to reduce the Bank's risk-weighted assets and the ratio of loans for construction and land development to total capital, which is a measure used by regulators to assess loan concentration risk [6]. - The Company believes these transactions will enhance the diversity of the Bank's on-balance sheet loan portfolio [6]. Group 4: Leadership Commentary - Bart Caraway, President & CEO of Third Coast Bank, expressed pride in the team's efforts to complete the first securitization, highlighting its importance in strengthening the Bank's financial position and opening new opportunities for customer service [7].