Continuing its string of Texas acquisitions, Prosperity Bancshares (PB) in Houston announced Thursday that it is buying Community National Bank in Bellaire for $26.6 million in cash and stock.
The deal for the $183 million-asset Community National would be Prosperity's third announced this year and fifth since September. Prosperity is in the midst of acquiring the $3.2 billion-asset American State Financial in Lubbock for $528 million, but Chairman and Chief Executive David Zalman has said that despite the deal's size, Prosperity still has the capacity to make more acquisitions.
The $10.9 billion-asset Prosperity said it would pay $11.4 million and issue up to 372,396 of its shares for all of Community National's outstanding shares. Based on Prosperity's closing price of $40.74 per share Wednesday, the stock portion of the deal would be worth $15.2 million. The acquisition is expected to close in the fourth quarter.
Community National has one branch in the Houston suburb of Bellaire and at March 31 had $67 million of loans and $163 million of deposits.
After the merger is completed, Prosperity would close its existing Bellaire branch and instead operate the Community National location. Prosperity has almost 60 branches in the Houston area and 176 overall.
Randy Dobbs, Community National's CEO, would become president of the Bellaire branch, and John James, president of Community National, would become an executive vice president.