PlainsCapital Corp. said Tuesday that it intends to acquire First Southwest Holdings Inc., a financial advisory firm based in its hometown of Dallas.

The $3.4 billion-asset PlainsCapital did not disclose the price but said the purchase would be an all-stock transaction.

First Southwest, which specializes in public finance, has $617 million of assets and 22 offices in 10 states and the District of Columbia. It would retain its name and operate as a subsidiary of PlainsCapital.

Mike Bartolotta, First Southwest's chairman, said in an interview Tuesday that the deal would give his firm with access to a banking platform and liquidity it needs as it continues to add employees from large investment banks dealing with internal restructurings.

"We should be able to more easily focus on growing our business, instead of managing the change that is going on with regulatory events," Mr. Bartolotta said. "Our companies are complementary. The stability of a FDIC-insured institution is attractive to us, and our balance sheet is attractive" to PlainsCapital.

The deal is expected to close at yearend and add $370 million of deposits to PlainsCapital's balance sheet.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.