HOUSTON, Jan. 2, 2013 /PRNewswire/ -- Prosperity Bancshares, Inc. ® ("Prosperity") (NYSE: PB), the parent company of Prosperity Bank ®, announced the completion of the merger with East Texas Financial Services, Inc. ("ETFS") and its wholly owned subsidiary First Federal Bank Texas, Tyler, Texas ("Firstbank"), whereby ETFS was merged with and into Prosperity and Firstbank was merged with and into Prosperity Bank effective on January 1, 2013.
ETFS operated four (4) banking offices in the Tyler MSA, including three (3) locations in Tyler, Texas and one (1) location in Gilmer, Texas. As of September 30, 2012, ETFS reported total assets of $191.2 million, total loans of $139.2 million and total deposits of $114.4 million.
Under the terms of the definitive agreement, Prosperity will issue approximately 531,000 shares of Prosperity common stock for all outstanding shares of ETFS capital stock, plus cash in lieu of fractional shares.
Derrell Chapman, Chief Executive Officer of ETFS and Firstbank, will serve as President – Tyler Banking Centers and Micheal Lavender and Joe Hobson will each serve as a Senior Vice President of Prosperity Bank.David Zalman Chairman and Chief Executive Officer of Prosperity commented, "We are excited to expand our market share in Tyler, the "Rose Capital of the World." Tyler is a dynamic city in East Texas with higher educational facilities like the University of Texas Tyler and University of Texas Health System as well as Tyler Junior College. It also has a vibrant medical community and world class hospitals that make it popular with retirees. We look forward to working and growing with Derrell and his team at Firstbank." "We are very excited about becoming a part of the Prosperity Bank organization," said Derrell Chapman, Chief Executive Officer of ETFS and Firstbank. "We believe this merger brings exceptional value to our stockholders, an outstanding level of products and services to our customers and enhanced opportunities for continued growth for our employees." ETFS was advised in this transaction by Commerce Street Capital, LLC as financial advisor and Silver, Freedman & Taff, L.L.P as legal counsel. Bracewell & Giuliani LLP was legal counsel to Prosperity.