Park Cities Bank to change hands as holding company files for bankruptcy
Dallas-based Park Cities Bank, which has a branch on Camp Bowie Boulevard in Fort Worth, is being recapitalized and sold to an investment group led by Darwin Deason, a wealthy Dallas resident who founded and sold Affiliated Computer Services. In an unusual wrinkle, its debt-laden holding company, North Texas Bancshares, is filing a Chapter 11 bankruptcy petition in Delaware. John Dienes, CEO of Park Cities Bank, said the holding company had about $34 million in debt and the bank needed more capital to meet regulatory requirements. He said "the Deasons can ensure the initial capital injection" to satisfy regulators, and also have the resources to provide additional capital for future growth and even acquisitions. Forbes magazine last month estimated Deason's net worth at $1.1 billion. Deason, 73, sold ACS to Xerox in 2010 for $6.4 billion.
Dienes called the deal "a great event for the employees and customers and the community" because it allows the bank to move forward. "That debt needs to be eliminated to make the bank attractive," he said. He said the bank began losing money after the 2008 financial crisis, which hurt the value of its real estate loan portfolio. Last year Park Cities Bank lost $7.7 million, according to the Federal Deposit Insurance Corp., and it has lost $4.6 million in the first nine months this year, Dienes said. He said he doesn't anticipate any impact on the bank's personnel from the sale, expected to close by year's end.
-- Jim Fuquay