Betty Dillard bdillard@bizpress.net
Dallas-based Park Cities Bank, which operates a branch location on Fort Worth’s west side, will be acquired by Olney Bancshares of Texas Inc. in a sale and merger that is expected to close in coming weeks. As part of the transaction, Park Cities Bank will merge with InterBank, the wholly owned banking subsidiary of Olney Bancshares. InterBank operates 19 branches in Texas and 17 offices in Oklahoma with total assets of more than $2 billion. Park Cities has three branches in Dallas and one in Fort Worth, located at 4255 Camp Bowie Blvd. As of Sept. 30, Park Cities Bank had total assets of $421.5 million, loans of $229.3 million and deposits of $396.2 million. The bank opened as a state-charted bank in 2000 and now has 71 employees, including six in Fort Worth.
The merger/acquisition, the culmination of a three-year process, resulted from a court-ordered auction as part of the bankruptcy filings by Park Cities’ parent companies, North Texas Bancshares Inc. and North Texas Bancshares of Delaware Inc. In October, the companies filed for Chapter 11 bankruptcy protection to facilitate the recapitalization and sale of the bank to Park Cities Financial Group, an independent group of investors. The bank was not part of the bankruptcy process and its operations remained unaffected. A tentative agreement for the sale was approved by the bankruptcy court on Dec. 17. During the court-supervised auction, Olney Bancshares’ $11.4 million bid was deemed the highest or otherwise best offer received, beating a stalking horse bid by Park Cities Financial of $7.35 million. On Jan. 6, U.S. Bankruptcy Court in Delaware approved the sale of the bank to Olney Bancshares. The deal, which still requires regulatory approval, is expected to close in mid- to late February, according to Park Cities Bank CEO John D. Dienes.
“We’re all very excited about the impending merger/acquisition,” Dienes said. “It’s been a long journey and now we see the goal line. We’re very excited to be part of a great organization.” Commerce Street Capital LLC, a Dallas-based investment banking firm, served as adviser to Park Cities Bank and its parent, North Texas Bancshares Inc. CSC was first engaged by NTBS/PCB in November 2010 to assist the bank holding company with strategic alternatives, including the possible sale of distressed and non-performing assets, recapitalization, sale and/or reorganization through bankruptcy. “We found a solution and everyone is very pleased with the outcome,” said CSC Vice President Hatch Smith, the lead financial adviser. “The challenging transaction presented a very good opportunity to obtain the bank at a below-market price. The bank has a lot of value still there, we think. And note that the bank was not in any trouble but rather [it was] the holding company that went into bankruptcy. It was a long process and Park Cities will now be part of a bigger, healthier bank.” Dienes said it is unclear whether Park Cities Bank will keep its name or change to the InterBank brand. “They’re still contemplating the name change,” he said. “They realize the value of the Park Cities brand.”