Government bond adviser acquired by Texas bank

LINCOLN – A Dallas-based investment banking firm that acts as an adviser to the State of Rhode Island and other local agencies looking to issue municipal bonds is being purchased by a Texas bank holding company.
First Southwest Holdings Inc., the parent of First Southwest Co., which has offices in Lincoln, agreed to be acquired by PlainsCapital Corp. earlier this month. PlainsCapital is the holding company of $3.4 billion PlainsCapital Bank, a commercial and private bank.
The dollar amount of the deal was not disclosed.
First Southwest said the acquisition would not affect operations at the company’s Lincoln branch. All personnel, and even the company name, will remain.
The companies said the transaction will bring together Texas’ second-largest privately held commercial bank and the second-ranked public financial advisory firm in the United States.
“An acquisition of this type has been on our agenda for a while, but we were looking for a company that fits our culture and our full-service bank model,” Alan B. White, PlainsCapital chairman and CEO said. “First Southwest is that company.”
“I think it’s a win-win situation for both companies,” White said. “First Southwest Company benefits from our financial strength as a commercial bank. PlainsCapital benefits from First Southwest’s expertise, reputation and national footprint.”
“Together, we are better able to compete against larger financial institutions,” he said.
First Southwest Co. operates 22 offices in 10 states and in Washington, D.C. The company employs 368 people.
The deal has been approved by the board of directors of both PlainsCapital and First Southwest Holdings. The closing is subject to the approval of the First Southwest shareholders of First Southwest Holdings.

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