Prosperity Bank will pay a premium of approximately $420mn in deposits and purchase certain loans and other assets attributable to the branches.
The three locations being acquired by Prosperity are the Texas locations US Bank acquired from the FDIC on October 30, 2009, when US Bank acquired the assets and deposits of the nine subsidiary banks of Illinois-based FBOP. The Texas banks were Madisonville State Bank in Madisonville, Citizens National Bank in Teague and North Houston Bank in Houston.
David Zalman, CEO and chairman of Prosperity Bancshares, said: “With the addition of these three locations, Prosperity will operate 161 full service banking centers in Texas. We look forward to servicing the Texas customers of US Bank.”
The agreement has been approved by both banks and the transaction is expected to close during the first quarter of 2010. However, it is subject to certain conditions, including customary regulatory approvals.
