PlainsCapital Bank Buys First National Bank

(RTTNews) - Hilltop Holdings Inc. (HTH) said Friday that its subsidiary, PlainsCapital Bank, has entered into a purchase and assumption agreement with the FDIC to assume substantially all of the liabilities and purchase substantially all of the assets of Edinburg, Texas-based First National Bank.

The deal is structured as a whole bank purchase and assumption agreement with loss share coverage. PlainsCapital Bank assumed all deposits and will open all branches during normal business hours under its name.

Based on April 19, 2013 balances of First National Bank, PlainsCapital Bank purchased at book value about $2.6 billion of assets and assumed about $2.4 billion of liabilities.

Under the terms of the deal, PlainsCapital Bank assumed all deposits and did not pay a deposit premium to the FDIC. PlainsCapital Bank bid an asset discount of $260 million.

The deal is expected to be immediately accretive to earnings.