Concerns over a group of lawmakers connected to Texas House leadership and their mutual ties to Third Coast Bank resurfaced over the weekend, just days before the House is set to gavel in and elect a new Speaker.
In late 2019, Third Coast Bank acquired Heritage Bank, where former disgraced Speaker Dennis Bonnen had served as President, Chairman, and Chief Executive Officer. Bonnen currently sits on Third Coast’s Board of Directors.
Outgoing Speaker Dade Phelan’s brother, Lan Phelan, was a director of Third Coast from 2013 until at least 2016, according to filings with the Secretary of State. Additionally, a 2021 filing with the Securities and Exchange Commission revealed that the bank’s Beaumont location was leased from Phelan’s family investment firm. Phelan’s most recent financial reports also show he owns shares in the bank.
Last year, Texas Scorecard reported additional connections between Third Coast Bank and House members. State Rep. Cody Harris (R–Palestine) was hired as Vice President of Business Development in 2021, shortly after Phelan became Speaker. Other lawmakers, including State Rep. Dustin Burrows (R–Lubbock), were also found to own shares in the bank.
On Sunday evening, Lt. Gov. Dan Patrick unleashed a fiery critique on social media, accusing five key figures—Dade Phelan, Dennis Bonnen, Greg Bonnen (Dennis’ brother and a current House member), Dustin Burrows, and Cody Harris—of running the Texas House like a “personal business” through a revolving door of leadership positions and shared financial interests.
While Patrick acknowledged that these arrangements are not illegal, he argued they have created a closed system that sidelines dissenting members and punishes those who refuse to comply. “They treat members like employees, not like equally elected House members,” Patrick wrote, likening the group to a “non-criminal version of the Goodfellas.” According to Patrick, dissenters risk being locked out of key committee assignments or seeing their bills blocked from consideration.
Patrick’s post also challenged House members to “break free” from the leadership structure he claims has dominated the chamber for years, urging them to reclaim power for themselves and their constituents. “Republicans and Democrats have a clean shot at a new way of doing business,” he said.
Speaker Phelan responded swiftly, calling Patrick’s allegations “ridiculous and completely disingenuous.” In his statement, Phelan denied owning shares in Third Coast Bank, explaining, “I originally invested back in 2009, many years before first running for office. After they went public several years ago, I began selling shares and am now completely divested, which will be reflected in my upcoming personal financial statement.” He also denied leasing office space to Third Coast Bank.
Patrick, however, accused Phelan of being dishonest. He pointed to Phelan’s most recent personal financial statement, which showed he reported owning shares in at least 2023. “He may have sold them recently, but he owned them as Speaker. Or was the report he filed not true?” Patrick wrote.
Patrick also addressed Phelan’s denial about leasing property to the bank. “When he says he doesn’t lease property to the bank that the ‘Goodfellas’ are partners in, that’s a misleading statement. The bank’s filing to the SEC shows they leased space from the Phelan family trust. Was that not true? Obviously, Dade benefits from his family’s trust, which primarily owns real estate.”
“One way or another, Dade Phelan has been lying all along and continues to do so this evening, all in an attempt to help get Dustin Burrows elected Speaker. The ‘Goodfellas’ will do anything to hold power.”
