Prosperity Bancshares To Acquire Southwest Bancshares And Texas Partners In $269 Mln Stock Deal

Prosperity Bancshares

66.07 USD 2.55%

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(RTTNews) - Prosperity Bancshares, Inc. (PB), said it has signed a definitive merger agreement to acquire Southwest Bancshares, Inc. and Texas Partners Bank in a stock transaction for about $268.9 million.

Under the agreement, the company will issue about 4.06 million shares of its stock for all outstanding Southwest shares and restricted stock awards.

Outstanding Southwest warrants and in-the-money stock options will be converted into cash payments, calculated under the merger terms.

The valuation is based on Prosperity's closing share price of $65.97 on September 29.

Texas Partners operates 11 banking offices in Central Texas, including its San Antonio headquarters, with branches across the San Antonio area, Austin, and the Hill Country.

The company said as of June 30, Southwest reported total assets of $2.4 billion, loans of $1.9 billion, and deposits of $2.1 billion.

Interim Chairman, President and CEO of Texas Partners, Brent Given, will become San Antonio Area Chairman at Prosperity Bank, while Texas Partners COO Tom Moreno will assume a senior management role in Prosperity's operations. Other Texas Partners executives will also hold leadership positions in the combined bank.

In the pre-market trading, Prosperity Bancshares is 0.53% lesser at $66 on the New York Stock Exchange.