Hilltop Holdings in Dallas has agreed to buy Bank of River Oaks in Houston.
The $13.4 billion-asset Hilltop, the parent of PlainsCapital Bank, said in a press release Tuesday that it will pay $85 million in cash for the $454 million-asset Bank of River Oaks. The deal is expected to close in the third quarter.
Bank of River Oaks has three branches, $344 million in loans and $406 million in deposits. Hilltop already has two branches in Houston, which it entered in 2013.
Bank of River Oaks “brings a valuable deposit franchise and a substantial commercial lending focus that are excellent complements to PlainsCapital Bank’s existing portfolio,” Jeremy Ford, Hilltop’s president and co-CEO, said in the release. “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.”
Hilltop was advised by Wachtell, Lipton, Rosen and Katz. Bank of River Oaks was advised by Performance Trust Capital Partners and Parrott Sims McInnis & Foster.