Following completion of the transaction, the bank holding company as well as its banking operation will be combined with and into Ameris Bank.
After integration, the united financial company will manage nearly $3.6bn in assets, $2.5bn in loans and $3bn in deposits, with a network of 69 branches across four states in US.
Based on the terms of the transaction, for each of Prosperity common stock, its shareholders will be allowed to select to receive either $41.50 in cash or 3.125 shares of Ameris common stock.
The transaction has been estimated at nearly $15.7m assuming 100% stock consideration and based on Ameris’s closing stock price of $13.32 on 1 May 2013 and Prosperity’s common shares outstanding of 377,960 as of 31 December 2012.
Approved by the board of directors of both firms, the deal is likely to conclude during the third quarter of 2013, pending receipt of customary closing conditions, regulatory approvals and approval by the shareholders of Prosperity.
Keefe, Bruyette & Woods and Rogers & Hardin served as advisor to Ameris Bancorp, while Allen C Ewing & Co provided a fairness opinion and Smith Mackinnon offered legal counsel to Prosperity Banking Company.
Presently, Prosperity manages 12 banking branches mainly located in northeast Florida. The community lender had assets of $742m, loans of $464m and deposits of $478m, as of 31 December 2012.
