HOUSTON, -- Prosperity Bancshares, Inc. announced today the signing of a definitive agreement to acquire 1st Choice Bancorp, Inc and its wholly- owned subsidiary, 1st Choice Bank.
1st Choice Bancorp, Inc. operates two (2) banking offices in Houston, Texas, with one location in South Houston and another in the Heights, which will be consolidated with Prosperity's Heights location and remain in 1st Choice's Heights banking office. As of December 31, 2007, 1st Choice Bancorp reported total assets of $303.1 million, loans of $190.7 million and deposits of $273.3 million.
Under the terms of the definitive agreement, Prosperity will issue approximately 1,757,813 shares of Prosperity common stock plus approximately $18,750,000 in cash for all outstanding shares of 1st Choice Bancorp capital stock, subject to decrease in the event 1st Choice Bancorp equity capital is less than $26.0 million. The transaction values 1st Choice Bancorp at $68.2 million. (Based upon the closing price of PRSP on Wednesday, February 6, 2008 of $27.27 per share.)
"We are pleased that Don Harding and his group of experienced bankers have agreed to join the Prosperity team," commented David Zalman, Chairman and Chief Executive Officer of Prosperity. "The customers of 1st Choice Bank will continue to experience the same level of personalized customer service they are accustomed to and can take advantage of our continued expansion in the Houston CMSA, with forty seven banking centers after the merger ."
"This is a positive step for 1st Choice Bank, its employees and customers. The merger will provide 1st Choice Bank with additional resources to grow and compete," said Don Harding, President and Chief Executive Officer of 1st Choice Bancorp. "We are excited about the opportunity to become a part of a successful and community driven organization that understands the importance of our customers."
The merger has been approved by the Boards of Directors of both companies and is expected to close during the second quarter of 2008, although delays may occur. The transaction is subject to certain conditions, including the approval by 1st Choice Bancorp's shareholders and customary regulatory approvals. Operational integration is anticipated to begin during the second quarter of 2008.
