In what would be its eighth merger in the past two years, Prosperity Bank (NYSE:PB) has signed a definitive merger agreement to acquire F&M Bancorporation (NASDAQOTH:FMBC), the holding company of F&M Bank & Trust, in a stock and cash deal, Prosperity announced today.
The deal calls for Prosperity Bank to issue 3,298,246 shares of stock, plus $47 million in cash, for all the outstanding shares of F&M, according to Prosperity. Prosperity Bank's stock was at $60.62 at the close of business Aug. 29, 2013, up 1.56% for the day.
F&M Bank has a total of 13 banking offices, 10 of which are in Tulsa and the surrounding area, along with three in Dallas. As of the end of calendar Q2 2013, F&M Bank had total assets of $2.44 billion, a loan portfolio of $1.9 billion, and $2.21 billion in deposits, Prosperity said.
Commenting on the deal, and the decision to retain key F&M Bank executives, President and CEO of Prosperity David Salman said, "Tony Davis, Eric Davis and Jeff Pickryl have extensive experience in both the Tulsa and Dallas markets and we are excited that they and their team will be joining us to continue to build and grow our company in those vibrant markets."