Texas Business reports: HOUSTON—Prosperity Bancshares Inc. will acquire Community National Bank, Bellaire, Texas.
This is the fifth acquisition announced by Prosperity within the past nine months.
Community National Bank operates one (1) banking office in Bellaire, Texas, in the Houston metropolitan area.
As of March 31, 2012, Community National Bank reported total assets of $182.9 million, total loans of $67.3 million and total deposits of $162.7 million.
Under the terms of the definitive agreement, Prosperity will issue up to 372,396 shares of Prosperity common stock plus $11.4 million in cash for all outstanding shares of Community National Bank capital stock, subject to certain conditions and potential adjustments.
“We continue to look for opportunities to expand our presence in the Houston area and Community National Bank's location in Bellaire is an excellent fit for us,” said Prosperity chief executive David Zalman in a prepared statement. “The customers of Community National Bank will be able to use any of our locations across the state after the merger.”
Prosperity will be closing its existing Bellaire Banking Center and, following the merger, retain the Community National Bank location and will continue to operate fifty-nine (59) banking centers across the Houston Area.
“As we looked for merger partners, Prosperity Bank stood out as an excellent fit for our customers,” said Community National chief executive Randy Dobbs in a statement. “The ability to remain as a community oriented bank serving the Harris County market with the same people that founded the bank was important to us. We believe this is an opportunity to be part of a larger community bank and offer our customers additional products, a larger branch network and the financial strength of a premier banking organization.”
Dobbs and John James, president of Community National Bank will join the Prosperity as president – Bellaire Banking Center and executive vice president.
The merger has been approved by the boards of directors of Prosperity and Community National Bank and is expected to close during the fourth quarter of 2012, although delays may occur. The transaction is subject to certain conditions, including the approval by Community National Bank's shareholders and customary regulatory approvals. Operational integration is anticipated to begin late in 2012.
Community National Bank was advised in this transaction by Commerce Street Capital LLC as financial advisor. Bracewell & Giuliani LLP was legal counsel to Prosperity Bancshares Inc.
Prosperity Bancshares, Inc.®, recently named "America's Best Bank" by Forbes, is a $10.9 billion Houston, Texas based regional financial holding company, formed in 1983. Operating under a community banking philosophy and seeking to develop broad customer relationships based on service and convenience, Prosperity offers a variety of traditional loan and deposit products to its customers, which consist primarily of small and medium sized businesses and consumers. In addition to established banking products, Prosperity offers a complete line of services including: Internet Banking services at http://www.prosperitybanktx.com, Retail Brokerage Services, MasterMoney Debit Cards, and 24 hour voice response banking. Prosperity currently operates one hundred seventy-six (176) full service banking locations; fifty-nine (59) in the Houston area; twenty (20) in the South Texas area including Corpus Christi and Victoria; thirty-two (32) in the Dallas/Fort Worth area; twenty-one (21) in the East Texas area; thirty-four (34) in the Central Texas area including Austin and San Antonio; and ten (10) in the Bryan/College Station area.