NEW ORLEANS -- Hibernia Corp. said Friday that it has reached a definitive agreement to sell in Texas bank to Comerica Inc. for $63.1 million in cash.
Comerica, based in Detroit, owns Comerica Bank-Texas, with $1.3 billion in assets and 28 offices in the Dallas-Fort Worth area. It would grow by $1 billion and 23 offices - 11 in Dallas and the rest in Houston other cities - with the addition of Hibernia National Bank in Texas.
Hibernia said it would use the proceeds to improve the capitalization of its lead bank, Hibernia National in New Orleans; reduce senior secured debt owned to a creditor group led by Chase Manhattan Bank, and for working capital. Hibernia said its leverage and risk-based capital would rise to 3.15% and 6.7% respectively, from 2.68% and 5.77%, based on pro forma June 30 numbers.
The companies said they expect to close the transaction by yearend, pending regulators' approval and Comerica's due diligence review of Hibernia National bank in Texas, which should be completed by Aug. 31.
The price is subject to change based on the Texas bank's earnings between June 30 and the closing date, and on the adequacy of the reserve for possible losses and the level of