PlainsCapital Corporation to Merge With Hilltop Holdings

An area bank will soon become a subsidiary of a Dallas-based holding company.

A press release outlines that PlainsCapital Corporation will merge with Hilltop Holdings Inc. at some point prior to the end of 2012.

PlainsCapital Corporation is the holding company for PlainsCapital Bank, PrimeLending, and FirstSouthwest.

Purchase consideration to PlainsCapital Corporation common shareholders includes approximately 27.5 million shares of Hilltop common stock and $318 million cash.

PlainsCapital Corporation Chairman and CEO Alan B. White said “We believe this transaction will benefit our shareholders, customers, employees, and the communities we serve.

Under the agreement, White will become vice chairman of Hilltop, and chairman of the Executive Committee for Hilltop, in addition to retaining his role as chairman and CEO of PlainsCapital Corporation.