Plains Capital Corporation Files for IPO (PCB)

Plains Capital Corporation, a Texas-company involved in banking, mortgage origination and financial advisory, has filed to come public via an initial public offering of its common stock.  While no financial terms nor a set number of shares, the company did note in the filing that the amount of shares being offered would be up to $140 million.  The company has also applied for listing on the New York Stock Exchange under the “PCB” stock ticker.

Underwriters are as follows: J.P. Morgan as the sole book-running manager; co-managers are listed as Fox-Pitt Kelton, Keefe Bruyette & Woods, and Stephens.

Plains Capital is classified as a financial holding company and a bank holding company.  The company noted in the filing that five members of its senior executive team have worked together for the last 21 years, and have been profitable for each of those years.

As of June 30, 2009, the group employed roughly 2,400 people in 173 locations in 32 states across its three business segments of banking, mortgage origination and financial advisory.  In addition to traditional banking services, Plains Capital also provides wealth and investment management, treasury management, capital equipment leasing, residential mortgage lending, investment banking, public finance advisory services, fixed income sales and trading, asset management and correspondent clearing.

As of June 30, 2009 and on a consolidated basis, the company had total assets of approximately $4.4 billion, total deposits of approximately $2.9 billion, total loans, including loans held for sale, of approximately $3.4 billion and shareholders’ equity of approximately $422.4 million. It also noted that it has experienced significant growth since inception.

Over the five-year period ending December 31, 2008, its net revenues increased 30.3% from $189.1 million to $246.4 million.

JON C. OGG
August 26, 2009