Continuing its string of acquisitions in its home state, Prosperity Bancshares (PB) in Houston has agreed to buy FVNB Corp. in Victoria, Texas.
Prosperity would pay approximately $380 million for the $2.4 billion-asset FVNB, it said Monday. Prosperity said that it would pay $91.250 million in cash and exchange 5.57 million shares of its stock for FVNB's shares. Prosperity's shares closed at $51.79 a share.
FVNB, the parent of First Victoria National Bank, has 34 locations in Texas. The $16.1 billion-asset Prosperity Bank has 243 branches in Texas and 9 in Oklahoma, according to the Federal Deposit Insurance Corp.
M. Russell Marshall, FVNB's chief executive, would be chairman of wealth management and private banking, and would lead Prosperity's wealth management operations. Kenneth Vickers, FVNB's chief lending officer, would become Prosperity's senior vice president, and FVNB executive vice president John Zacek would become president of Prosperity's South Texas region. Four other FVNB officers would join Prosperity as regional presidents.
"Both of our banks do business in many of the same communities and we have knowledge of the specific needs of those communities in terms of financial products as well as community support," Prosperity Chairman and CEO David Zalman said in a news release. "We believe this combination will further strengthen our already strong management and operations teams in South Texas and increase our ability to effectively compete and serve our customers."
Prosperity has completed six mergers in the past year and a half. In April, in the most recent deal, it entered the Oklahoma market through its purchase of Coppermark Bancshares for $194 million in cash and stock.
Last year, FVNB bought First State Bank in New Braunfels, Texas.
Prosperity and FVNB expect the deal to close in the fourth quarter, pending regulatory approval.
Keefe, Bruyette & Woods was FVNB's financial advisor and Hunton & Williams its legal counsel on the merger. Bracewell & Giuliani was Prosperity's legal counsel.