Hilltop Holdings (HTH) Agrees To Buy The Bank Of River Oaks
Zacks Investment Research | Feb 13, 2018 09:35PM ET
Hilltop Holdings Inc. (NYSE:HTH) has agreed to acquire The Bank of River Oaks, with an aim to further expand operations. The cash transaction is expected to be completed by third-quarter 2018, subject to shareholder and regulatory approval.
Per the deal, Hilltop Holdings will pay a total of $85 million in cash to the shareholders and option holders of The Bank of River Oaks.
With this acquisition, Hilltop Holdings will be in a position to further expand its banking operations in the Houston area, where The Bank of River Oaks operates three full-service branches. As of Dec 31, 2017, The Bank of River Oaks had total assets of approximately $454 million and total equity capital of $46 million.
Hilltop Holdings’ banking subsidiary, PlainsCapital Bank had entered the Houston market in 2013 and since then, it has been trying to increase its presence. With this acquisition, PlainsCapital Bank will be able to expand its network to five locations in the Houston area.
President and co-CEO of Hilltop Holdings, Jeremy B. Ford, said, “The bank brings a valuable deposit franchise and a substantial commercial lending focus that are excellent complements to PlainsCapital Bank’s existing portfolio. 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.”
Alan B. White, chairman of PlainsCapital Bank said, “The acquisition of The Bank of River Oaks represents the continuation of our planned growth in the Greater Houston area and our ongoing commitment to serving the Houston community.”
Supported by a strong balance sheet position, Hilltop Holdings remains well positioned for growth through acquisitions.
Shares of the company have gained 7.6% in the past three months, marginally outperforming 7.5% growth of the Zacks Investment Research
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