Prosperity in Texas Shakes Up Management Team

Prosperity Bancshares (PB) in Houston is rearranging a number of its management posts.

The $18.6 billion-asset company said in a press release late Thursday that Chris Bagley, its chief credit officer, has resigned to pursue "another opportunity." Merle Karnes, former chief credit officer at American State Bank, which Prosperity bought in July 2012, succeeded Bagley.

Prosperity also announced that Craig Friemel, former chief credit officer of First Victoria National Bank, will oversee its note department and report to Karnes. Prosperity bought First Victoria in November.

Michael Epps, American State's former president, was promoted to executive vice president in charge of financial operations and administration at Prosperity Bank. Epps, who also will join the company's executive committee, had been chairman of the bank's west Texas area.

Theresa Hollaway, a 23-year veteran of Prosperity who has been involved with numerous integrations of acquired banks, was promoted to chief risk officer. The company did not disclose if this was a new post or if she replaced anyone.

The company also announced that William Luedke IV would join its board in April Luedke is a partner in the financial institutions section at Bracewell & Giuliani. Earlier this year, he entered into the firm's voluntary partner phase-down program and will be actively practicing law.

Earlier this month, Prosperity announced that its fourth-quarter earnings rose 31% from a year earlier, to $63 million, fueled by acquisitions. Prosperity bought four banks in Texas and Oklahoma in the past 15 months, including an agreement in August to buy the $2.6 billion-asset F&M Bancorp. (FMBC) of Tulsa, Okla.