HOUSTON, June 27, 2012 /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB) announced today the signing of a definitive agreement to acquire Community National Bank, Bellaire, Texas. This is the fifth acquisition announced by Prosperity within the past nine months.
Community National Bank operates one (1) banking office in Bellaire, Texas, in the Houston Metropolitan Area. As of March 31, 2012, Community National Bank reported total assets of $182.9 million, total loans of $67.3 million and total deposits of $162.7 million.
Under the terms of the definitive agreement, Prosperity will issue up to 372,396 shares of Prosperity common stock plus $11.4 million in cash for all outstanding shares of Community National Bank capital stock, subject to certain conditions and potential adjustments.
"We continue to look for opportunities to expand our presence in the Houston Area and Community National Bank's location in Bellaire is an excellent fit for us," commented David Zalman, Chairman and Chief Executive Officer of Prosperity. "The customers of Community National Bank will be able to use any of our locations across the state after the merger."Prosperity will be closing their existing Bellaire Banking Center and, following the merger, retain the Community National Bank location and will continue to operate fifty-nine (59) banking centers across the Houston Area. "As we looked for merger partners, Prosperity Bank stood out as an excellent fit for our customers. The ability to remain as a community oriented bank serving the Harris County market with the same people that founded the bank was important to us," said Randy Dobbs, Chief Executive Officer of Community National Bank. "We believe this is an opportunity to be part of a larger community bank and offer our customers additional products, a larger branch network and the financial strength of a premier banking organization." "In addition to the benefits to our stockholders, this merger gives us the ability to enhance our franchise in the Houston market without compromising our community banking values," said James A. Woodall, Jr., Executive Chairman of Community National Bank. "Prosperity will be a strong partner for our customers and employees." Long-time Houston bankers Randy Dobbs, Chief Executive Officer of Community National Bank and John James, President of Community National Bank will join the Prosperity team as President – Bellaire Banking Center and Executive Vice President, respectively. The merger has been approved by the Boards of Directors of Prosperity and Community National Bank and is expected to close during the fourth quarter of 2012, although delays may occur. The transaction is subject to certain conditions, including the approval by Community National Bank's shareholders and customary regulatory approvals. Operational integration is anticipated to begin late in 2012.