The parent company of PlainsCapital Bank has acquired a Houston-based bank for $85 million.
Dallas-based Hilltop Holdings Inc. (NYSE: HTH), the holding company for PlainsCapital Bank, announced Feb. 14 it has entered into a definitive agreement to acquire privately held, Houston-based The Bank of River Oaks in an all-cash transaction.
“We are pleased to announce the expansion of our Houston-area banking operations with the acquisition of The Bank of River Oaks,” Jeremy B. Ford, president and co-CEO of Hilltop Holdings, said. “The bank brings a valuable deposit franchise and a substantial commercial lending focus that are excellent complements to PlainsCapital Bank’s existing portfolio. This acquisition also fits well with our stated strategy of utilizing cash to acquire commercial-focused banks in key Texas markets, such as Houston, where we would like to grow significantly.”
PlainsCapital Bank entered the Houston market in 2013 and in early 2017, PlainsCapital Bank celebrated the opening of its new flagship Houston office in the Upper Kirby District. With The Bank of River Oaks transaction, PlainsCapital Bank’s combined Houston branch network will grow to five locations with additions in the River Oaks, Uptown/Memorial and Medical Center areas.
The Bank of River Oaks operates three full-service branch locations in the Houston area and, as of December 31, 2017, reported total assets of approximately $454 million, total loans of approximately $344 million, total deposits of approximately $406 million and total equity capital of approximately $46 million.
“The acquisition of The Bank of River Oaks represents the continuation of our planned growth in the Greater Houston area and our ongoing commitment to serving the Houston community,” said Alan B. White, vice chairman and co-CEO of Hilltop Holdings and chairman of PlainsCapital Bank. “We are excited to further expand our local expertise in commercial lending, healthcare lending, and private banking with the addition of the experienced River Oaks team to our PlainsCapital family.”
The transaction has been approved by the Boards of Directors of both companies and is expected to close during the third quarter of 2018, pending approval by shareholders of The Bank of River Oaks and required regulatory approvals.
Hilltop Holdings was advised in the transaction by Wachtell, Lipton, Rosen and Katz as legal counsel. The Bank of River Oaks was advised by Performance Trust Capital Partners LLC as financial advisor and Parrott Sims McInnis & Foster PLLC as legal counsel.
