Hilltop Holdings of Dallas, a property and casualty insurer, has agreed to buy fast-growing mortgage lender PlainsCapital in a cash-and-stock deal valued at $537 million.
PlainsCapital, a bank, is the parent company of PrimeLending, also of Dallas. Over the past year Plains has been adding high-volume account executives, including a few from Bank of America, according to recruitment sources.
In the fourth quarter PrimeLending funded $2.7 billion of home mortgages nationwide, a 13% gain year-over-year. Most lenders in the top 20 experienced production declines in 4Q. Prime ranks among the top five funders in the Dallas-Fort Worth area.
PlainsCapital chairman and CEO Alan White will maintain his posts and also become vice chairman of Hilltop and chairman of its executive committee.
"We are pleased to embark on this merger with PlainsCapital Corp.," said Hilltop chairman Gerald J. Ford in a statement. “We look forward to working with PlainsCapital and pursuing opportunities to grow the company. We envision a long-term and mutually beneficial relationship as we seek to expand the combined company's footprint."
Hilltop Holdings, through its subsidiary, NLASCO Inc., operates as a property and casualty insurance company in the U.S. The company’s personal product lines include homeowners, dwelling fire, manufactured home, flood and vacant policies. It has commercial lines of business as well.
The company was formerly known as Affordable Residential Communities Inc. and changed its name to Hilltop Holdings Inc. in July 2007. Hilltop Holdings Inc. was founded in 1998.
