Deal meant to enhance equity, funding and profitability for both companies. Dallas-based PlainsCapital Corporation has acquired Dallas-based First Southwest Holdings, the parent company of financial advisory and investment bank First Southwest, uniting Texas' second-biggest privately held commercial bank and the third-biggest public-finance advisory in the U.S., and bringing "together an array of complementary services and creates a diversified, independent financial services company with assets of $4 billion," according to PlainsCapital.

The tie-in with First Southwest also gives PlainsCapital a national platform for future growth.

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"For strong and stable companies such as PlainsCapital and First Southwest, tremendous opportunities for growth often present themselves," says PlainsCapital's chairman and CEO Alan White. "Together we can act on those opportunities and create more value for our shareholders, customers and employees."

From First Southwest's perspective, the day-to-day impact of its takeover by PlainsCapital will be minimal. "It will be business as usual for [our] employees and clients," says Hill Feinber, who is staying on as chairman and CEO of First Southwest, which will retain its branding and operational independence.

PlainsCapital's PlainsCapital Bank is a commercial and private bank that serves middle-market companies and high-net-worth individuals. It operates in Dallas, Austin Fort Worth, Lubbock and San Antonio. PlainsCapital is also parent company to residential mortgage company PrimeLending, and RIA Hester Capital Management, which manages about $1.5 billion in assets, mainly for high-net-worth clients.

First Southwest is an investment bank that specializes in public finance, correspondent clearing, capital markets and asset management. It employs 368 people and operates 22 offices in 10 states and the District of Columbia. -FWR

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