Prosperity Bancshares To Acquire F&M Bancorporation

(RTTNews) - Prosperity Bancshares Inc. (PB) Thursday signed a merger agreement with F&M Bancorporation Inc., the parent holding company of The F&M Bank & Trust Co., headquartered in Tulsa, Oklahoma, whereby Prosperity will acquire FMBC and F&M Bank.

F&M Bank operates thirteen banking offices, including ten in Tulsa, Oklahoma. As of June 2013, FMBC had assets of about $2.44 billion, loans of $1.9 billion and deposits of $2.2 billion.

As per the terms of the deal, Prosperity will issue about 3.3 million shares of Prosperity common stock plus $47.0 million in cash for all outstanding shares FMBC capital stock.

Anthony Davis, chairman and CEO of FMBC, will serve the combined entity as chairman - Tulsa Area and Turtle Creek Banking Center and will be responsible for the day-to-day operations and management of all Tulsa, Oklahoma locations and the former F&M Bank Turtle Creek location in Dallas, Texas.

The merger has been unanimously approved by the Boards of both companies and is expected to close during the first quarter of 2014. The deal is subject to certain conditions, including the approval by FMBC's shareholders and customary regulatory approvals. Operational integration is anticipated to begin during the second quarter of 2014.

FMBC was advised in this transaction by J.P. Morgan Securities LLC as financial advisor, Norton Rose Fulbright LLP as legal counsel and Fenimore, Kay, Harrison & Ford, LLP as regulatory counsel.

Bracewell & Giuliani LLP was legal counsel to Prosperity and Keefe, Bruyette & Woods, Inc. served as an advisor to Prosperity.