A Dallas investment group headed by billionaire Darwin Deason has struck its first bank acquisition.
Park Cities Financial Group announced Wednesday that it is buying CU Bank Shares in Dallas and its subsidiary, the $593 million-asset Town North Bank. Terms of the sale were not disclosed.
Deason, Park Cities' lead investor, is the founder of American Computer Systems, which sold to Xerox in 2010 for $6.4 billion. The announcement of the deal comes nearly a year after Park Cities Financial made a bid to buy the $422 million-asset Park Cities Bank, which filed for bankruptcy in October. The investment group walked away from that deal, and the Dallas bank was subsequently bought in March by the $2.5 billion-asset Olney Bancshares in Oklahoma City.
In a news release, Park Cities Financial said that its chief executive, Douglas Hutt, would replace Steven McDonald as CEO of Town North Bank when the deal closes early next year.
"Our local ownership, board and management team are excited to have the opportunity to develop consumer-focused and high-tech solutions tailored to meet the needs of businesses and individuals in North Texas," Hutt said.
Raymond James & Associates served as CU's financial advisor for the deal, and Winstead was the bank's legal counsel. Everett Advisory Partners advised Park Cities Financial, while Bracewell & Giuliani provided legal advice.
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Corrected September 19, 2014 at 8:07AM: An earlier version gave the wrong name for Town North Bank.