Prosperity Bancshares, Inc. (NYSE:PB) completed the acquisition of Lone Star State Bancshares, Inc.
April 31, 2024
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Prosperity Bancshares, Inc. (NYSE:PB) entered into a non-binding letter of intent to acquire Lone Star State Bancshares, Inc on July 22, 2022. Prosperity Bancshares, Inc. (NYSE:PB) entered into a definitive merger agreement to acquire Lone Star State Bancshares, Inc. for approximately $230 million on October 10, 2022. Under the terms of the definitive agreement, Prosperity will issue 2,376,182 shares of Prosperity common stock plus $64.1 million in cash for all outstanding shares of Lone Star capital stock, subject to certain conditions and potential adjustments. Based on Prosperity?s closing price of $69.27 on October 7, 2022, the total consideration was valued at approximately $228.7 million. As of June 30, 2022, Lone Star, on a consolidated basis, reported total assets of $1.305 billion, total loans of $933.5 million and total deposits of $1.174 billion. Alan Lackey, Lone Star Chief Executive Officer, will join Prosperity Bank as West Texas Area President and Melisa Roberts, Lone Star Chief Lending Officer, will join Prosperity Bank as West Texas Area Vice President. Additional members of Lone Star management will maintain leadership roles in the combined organization. The merger has been unanimously approved by the Boards of Directors of both companies and is expected to close during the first half of 2023, although delays may occur. The transaction is subject to certain conditions, including the approval by Lone Star?s shareholders and customary regulatory approvals. The shareholders of Lone Star approved the transaction on March 28, 2023. The parties have extended the termination date in the merger agreement to March 31, 2024. As of March 19, 2024, the transaction has received all regulatory approvals. The merger is expected to be effective as of April 1, 2024, subject to the satisfaction or waiver of customary closing conditions described in the definitive merger agreement. Lone Star was advised by Stephens Inc., as financial advisor, and Fenimore Kay Harrison LLP, as legal counsel. Bracewell LLP served as legal counsel to Prosperity. Alan Lackey, Lone Star Chief Executive Officer, will serve as West Texas Area President and Melisa Roberts, Lone Star Chief Lending Officer, will serve as West Texas Area Vice President, joining Mike Marshall, Prosperity Bank's West Texas Area Chairman. Additional members of Lone Star management will maintain leadership roles in the combined organization. Lone Star banking locations will continue to operate under the Lone Star name until the operational integration, which is scheduled for October 28, 2024.
Prosperity Bancshares, Inc. (NYSE:PB) completed the acquisition of Lone Star State Bancshares, Inc on April 1, 2024.
Prosperity Bancshares, Inc. is a regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma. The Company's traditional deposit products include certificates of deposit, interest-checking accounts, money market accounts and savings accounts. It also offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management. It operates around 288 full-service banking locations: 65 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 62 in the Dallas/Fort Worth area; 22 in the East Texas area; 31 in the Central Texas area including Austin and San Antonio; 49 in the West Texas area including Lubbock, Midland-Odessa, Abilene, Amarillo and Wichita Falls; 15 in the Bryan/College Station area; 6 in the Central Oklahoma area; and 8 in the Tulsa, Oklahoma area.