SNB Bancshares Inc. of Sugarland, Tex., said it would sell $205 million of low-yield securities, use the proceeds to pay down borrowings, and take a fourth-quarter charge of $5.3 million after taxes.
Prosperity Bancshares Inc. of Houston is to buy the company in the second quarter.
SNB announced the securities plan late Thursday. It did not say how much would be repaid, but it did say its borrowings would total $25 million on Dec. 31.
Darrell Brewer, its chief financial officer, said Friday that they totaled $251 million on Sept 30.
The $1.1 billion-asset company said that the securities to be sold carried an average weighted yield of 3.45%, and that the average rate on the borrowings to be repaid was 4.29%.
It announced Nov. 16 that it would sell itself to the $3.5 billion-asset Prosperity for $242.7 million in cash and stock.
