"Through the second-largest bank merger in the history of Texas, our combined companies create the second-largest bank by deposits headquartered in Texas," Prosperity Chairman and Chief Executive Officer David Zalman said Monday in a statement. "Our increased scale better positions us to invest in future opportunities and serve our customers."
LegacyTexas shareholders will receive 0.5280 a share of Prosperity common stock and $6.28 cash for each LegacyTexas share, according to the terms of the deal announced Monday.
The total consideration was valued at about $41.78 per share, based on Prosperity's closing price of $67.24 on June 14. The deal price is about a 9.3% premium to the closing price Friday of LegacyTexas of $38.22, according to Bloomberg.
As of March 31, LegacyTexas reported total assets of $9.3 billion on a consolidated basis. The bank also reported total gross loans of $8.1 billion and total deposits of $7.1 billion. LegacyTexas Bank operates 42 banking offices in the Dallas/Fort Worth Metroplex and surrounding counties.
Shares of Prosperity were down 4.36% to $64.32, while LegacyTexas rose 3.95% at $39.73.