Prosperity Bancshares acquires Oklahoma's F&M Bank & Trust Co.
Prosperity Bancshares Inc., the parent company of Prosperity Bank, has signed a definitive merger agreement to acquire F&M Bancorporation Inc., the parent holding company of The F&M Bank & Trust Co., according to a Prosperity news release.
Prosperity has completed six mergers in the last two years and has one transaction pending - First Victoria National Bank, announced July 1.
Tulsa, Okla.-based F&M Bank operates 13 banks. As of June 30, FMBC, on a consolidated basis, reported total assets of $2.437 billion, total loans of $1.900 billion and total deposits of $2.208 billion.
Under the terms of the agreement, Prosperity will issue 3,298,246 shares of Prosperity common stock plus $47 million in cash for all outstanding shares FMBC capital stock, subject to certain conditions and potential adjustments.
David Zalman, Prosperity's chairman and CEO, said he was excited to announce the merger.
"F&M Bank has an attractive core deposit base and a focus in commercial and industrial lending," he said. "F&M Bank, like Prosperity, has high-touch customer service with strong customer relationships and community involvement. Our combined companies, together with our recent merger with Coppermark Bank in Oklahoma City, will have the seventh largest deposit market share in Oklahoma."
FMBC Chairman and CEO Tony Davis said he was glad to join an organization with a history and values much like FMBC's.
"We are proud of our nearly 70-year history of serving clients in our communities and thank all of our F&M colleagues for building a strong, commercially focused community bank," he said. "The combination created by our two companies will enable us to better serve our clients through an expanded suite of products and services coupled with exceptional customer service."
The merger was unanimously approved by both companies' boards and is expected to close during 2014's first quarter, although delays may occur.
The transaction is subject to certain conditions, including the approval by FMBC's shareholders and customary regulatory approvals. Operational integration is anticipated to begin during the second quarter of 2014.