When Third Coast Bank wanted to increase their impact in Texas, they planned to use the branch network as a key lever for growth. Expanding beyond their core markets in the Dallas and Houston areas, the business-oriented bank sought market data to support and substantiate their branch network strategies for moving into additional markets like Fort Worth, San Antonio, Austin, and beyond. At the same time, the bank needed insights into ways to change their customer composition from the current mix of 60% commercial and 40% consumer accounts to appeal to more retail customers and capitalize on top-tier household growth.
The Solution:
Third Coast partnered with Adrenaline for their branch network optimization efforts – using analytics to assess the performance of the existing branches, design new experiences in new locations, and set the stage for continued growth into opportunity markets. Armed with a powerful roadmap for branch expansion, the data-led plan supports effective migration strategies from the current network to a “fair share” performance model primed for impact that ultimately increased branch density by nearly 60% since 2021. The insights in the plan help support the bank as they deepen their business banking relationships, develop their retail banking offerings, and diversify their deposits.
The Story:
Third Coast’s strategy for growth hinges on maximizing prospects in opportunity markets. Bringing in known business banking leaders, the bank’s formula focuses on branch staffing and selecting prime locations for success. As Texas continues to demonstrate impressive growth, finding the right markets for both business and retail banking customers is paramount.
To foster the most growth, the bank is focused on deepening relationships with business banking customers, earning their personal banking business, and appealing to new prospects in new markets.
The branch network optimization plan helped me get a good grasp on the opportunities in the larger markets we wanted to enter and helped us pinpoint exactly where to be for maximum impact.”
– Christopher Peacock, Chief Retail Officer, Third Coast Bank
Data shows a powerful correlation between household growth and household income in Third Coast’s markets. The strong household growth rates across Texas are especially favorable to smaller, younger institutions, as banks can capitalize on new-arriving families that don’t have a preexisting banking relationship.
Third Coast benefits from good brand recognition in their existing markets, like Humble and Kingwood, Texas, largely because of their market impact and the visibility of their branches, along with lower levels of competition from big banks. In their branch expansion efforts, the bank is focused on balancing market opportunities and optimal presence areas where they can effectively compete for banking customers.
We want to be nimble, but we also want to own our markets and our business with market leaders.”
– Christopher Peacock, Chief Retail Officer, Third Coast Bank
Despite potential saturation in smaller markets, Third Coast’s large markets showed significant room for branch growth, especially with attractive, well placed locations. While the bank’s customer portfolio is commercial-heavy, they are fostering more banking relationships with retail customers, helping to continue to diversify their customer base.
Staff training for cross-sell at the branch means managers are primed to look for premier opportunities to establish and sustain new growth at the branch. New lines of business, like the “Bank at Work” program helps the bank ensure a consistent source of diversified deposits, Third Coast’s key benchmark for success.
With network growth as a topline metric, Third Coast has expanded from 12 branches in 2021 to 19 locations in 2024 with Adrenaline’s support – an increase of 58% in three short years. The bank plans for expansion into the Austin area beginning in 2026.
The branch optimization process was very valuable. As we expand into additional markets, we’ll continue to use the analytics in the roadmap.”
– Christopher Peacock, Chief Retail Officer, Third Coast Bank
