The parent company of PlainsCapital Bank is buying a three-branch Houston bank for $85 million.
Dallas-based Hilltop Holdings Inc. announced the cash purchase Tuesday of The Bank of River Oaks. At the end of 2017, the privately-held Houston firm had assets of $454 million, loans of $344 million, deposits of $406 million and equity capital of $46 million.
“The bank brings a valuable deposit franchise and a substantial commercial lending focus that are excellent complements to PlainsCapital Bank’s existing portfolio,” said Jeremy B. Ford, president and co-CEO of Hilltop Holdings, in a statement. “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.”
With Tuesday’s transaction, PlainsCapital’s Houston branch network will grow to five locations with additions in the River Oaks, Uptown/Memorial and Medical Center areas. It entered the Houston market in 2013.
The deal has been approved by both companies’ boards of directors and is expected to close this fall, pending approval by shareholders and banking regulators.
It is Hilltop Holdings’ fourth acquisition since 2012. Its primary line of business is consumer and business banking services through PlainsCapital Bank. Its subsidiary, PrimeLending, is a residential mortgage lender. The company, which has about 5,500 employees, also has subsidiaries specializing in securities and investment banking, and property and casualty insurance.