Prosperity in Texas to Buy F&M in Oklahoma

Prosperity Bancshares (PB) in Houston has agreed to buy F&M Bancorp in Tulsa, Okla.

Prosperity said Thursday that it will pay $47 million in cash and issue roughly 3.3 million shares for the $2.4 billion-asset F&M, which has 13 branches, $1.9 billion in loans and $2.2 billion in deposits. The $16 billion-asset Prosperity said it expects to complete the acquisition in the first quarter, with integration taking place in the second quarter.

"F&M Bank has an attractive core deposit base and a focus in commercial and industrial lending," David Zalman, Prosperity's chairman and chief executive, said in a press release. "F&M Bank, like Prosperity, has high touch customer service with strong customer relationships and community involvement."

Prosperity has completed six acquisitions in the last two years, and has pending deal for FVNB in Victoria, Texas.

Anthony Davis, F&M's chairman and chief executive, will oversee Prosperity's operations in Tulsa. The company entered Oklahoma earlier this year with its acquisition of Coppermark Bancshares.

F&M was received financial advice from J.P. Morgan Securities, legal counsel from Norton Rose Fulbright and regulatory counsel from Fenimore, Kay, Harrison & Ford. Bracewell & Giuliani served as Prosperity's legal counsel, while Keefe, Bruyette & Woods advised on the financial aspects of the deal.

For reprint and licensing requests for this article, click here.
M&A Community banking Oklahoma Texas
MORE FROM AMERICAN BANKER