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A plan to sell a Dallas bank to an investor group through a bankruptcy auction could lead to big losses for groups that made investments at the height of the economic crisis.
November 26 -
The holding companies of Park Cities Bank in Dallas, Tex., have filed for bankruptcy in order to facilitate the recapitalization and purchase of the bank by Park Cities Financial Group.
October 18
Olney Bancshares of Texas in Olney has agreed to buy Park Cities Bank from North Texas Bancshares in Dallas.
Olney plans to merge the $422 million-asset Park Cities into its $2.1 billion-asset Interbank. Park Cities has four branches around Dallas, along with $229 million in loans and $396 million in deposits. Terms of the deal were not disclosed.
"We are delighted to have reached this agreement with Interbank," John Dienes, Park Cities' chief executive, said in a Wednesday press release. "This merger will result in a banking institution that possesses a very strong balance sheet that will have abundant capital to serve our customers and communities."
The sale followed an auction process approved by the U.S. Bankruptcy Court in the District of Delaware. North Texas Bancshares and North Texas Bancshares of Delaware had filed for bankruptcy protection in October to
Park Cities Financial Group in Dallas, a group led by investor Darwin Deason,
Interbank, which operates 36 branches in Texas and Oklahoma, expected to complete the merger in the first quarter.
Commerce Street Capital was the seller's financial advisor, and Bracewell & Giuliani was the legal advisor. Olney's legal advisor is McAfee & Taft.