In an effort to strategically expand in the Houston region,
Prosperity Bancshares Inc.
) declared the closure of its merger with Community National Bank.
Community National Bank - the single-branch bank, located in
Bellaire - had total assets of $180.6 million, total loans of $68.6
million and total deposits of $162.6 million as of June 30, 2012.
Prosperity has shuttered its existing branch in Bellaire, and with
the closure of the deal will operate through the Community National
Bank branch. Henceforth, Prosperity will operate a total of 59
branches across the Houston area.
The terms of the agreement entailed that Prosperity will issue
372,396 shares of its common stock and pay $11.4 million in cash
for Community National's outstanding capital stock. The CEO of
Community Bank, Randy Dobbs, will serve as president of
Prosperity's Bellaire Banking Center, whereas John James, president
of Community National Bank, will serve as Executive Vice-President.
Commerce Street Capital, LLC acted as financial advisor to
Community National Bank, while Prosperity's legal advisor was
Bracewell & Guiliani LLP.
The clientele of community National Bank will continue to receive
the efficient service that they are familiar with. Further, they
will benefit from the personalized products and services of the 59
branches in the Greater Houston area.
Community National Bank, on its part, believes that the merger with
Prosperity Bank will provide its costumers a more diverse range of
products and maintain their custom of personalized banking. Further
it will also enhance shareholders value as well as provide
significant benefit to its customers and associates. Community
National Bank is thrilled to be a part of a successful company
whose values are driven by efficient customer service.
Prosperity Bank has been aggressive in its inorganic growth in the
state of Texas over the past one year. According to Forbes, the
Texas market is popularly believed to be one of the fastest-growing
economies of the U.S.
In July, 2012, Prosperity acquired American State Financial
Corporation in a cash-and-stock deal. Further, in April 2012,
Prosperity completed the acquisition of The Bank Arlington in a
stock deal. Similarly, in January 2012, Prosperity acquired Texas
Bankers, Inc. Further, in December 2011, the company announced a
definitive agreement to acquire
East Texas Financial Services Inc.
Amidst the sluggish economic recovery and uncertain regulatory
environment, where most of the U.S. banks are struggling to
maintain their profitability, Prosperity is better placed with its
strong second quarter results. Further, its strategic acquisitions
are expected to enhance its financials.
Prosperity currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating.
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PROSPERITY BCSH (PB): Free Stock Analysis
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