PlainsCapital Corp., which over the summer announced a public offering ahead of plans to withdraw from the bailout program, has put off the sale.
The Dallas-based bank had hoped to raise as much as $140 million from the offering, more than enough to redeem the $92 million in stock it gave the Treasury Department in exchange for assistance under the Troubled Asset Relief Program.
At the time, PlainsCapital was seen as a bright star in the banking industry, and experts said the bank's willingness to initiate a stock sale was a sign of its underlying strength.
"If they had any hesitation, if they saw their asset quality was deteriorating or any sign their bank was going to go through tough times, they wouldn't have done this," Dan Bass, an investment banker with Houston-based Carson Medlin Co. told the Dallas Morning News when the offering was announced.
That assessment has been called into question by the bank's decision not to follow through. Bank executives blamed current market conditions for the change of heart.
"The current market volatility, especially as it affects financial stocks, has created unfavorable conditions for the offering," said Alan White, PlainsCapital's chairman and chief executive. "We have decided to postpone the IPO and wait for an improved market environment."
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