Yahoo Finance Prosperity Bancshares (PB) Gets Regulatory Nod to Buy Lone Star
Prosperity Bancshares, Inc. PB announced that it has obtained all regulatory approvals required to complete the acquisition of Lone Star State Bancshares, Inc. The deal is now expected to be effective as of Apr 1, 2024, subject to customary closing conditions.
The deal, announced in October 2022, received the Lone Star shareholders’ approval in March 2023.
Lone Star operates five banking offices located in West Texas. As of Dec 31, 2023, Lone Star had total assets of $1.37 billion, total loans of $1.08 billion and total deposits of $1.21 billion. Following the completion, PB will expand its West Texas footprint to 49 banking centers.
Under the terms of the transaction, Prosperity Bancshares will issue 2.38 million shares along with $64.1 million in cash. Based on its closing price of $69.27 on Oct 7, 2022, the total consideration has been valued at roughly $228.7 million.
Alan Lackey, CEO of Lone Star, and Melisa Roberts, Chief Lending Officer of Lone Star, will be leading Prosperity Bank’s West Texas Area department, as President and Vice President, respectively. Other members of Lone Star management will retain leadership roles in the combined entity.
Lone Star banking network will continue to operate under its name until the operational integration, which is expected to complete on Oct 28, 2024. Upon the completion of integration, Lone Star customers will be able to use any of the PB’s combined 288 banking centers to avail services.
David Zalman, Chairman and CEO of Prosperity Bancshares, said, “We are excited to have received the required regulatory and shareholder approvals for this transaction and look forward having the Lone Star customers and associates join the Prosperity Bank team in several weeks.”
In the past, PB has been actively engaged in opportunistic acquisitions. Since 1998, it has completed more than 30 deals.
In May 2023, it completed the acquisition of First Bancshares of Texas, Inc. This enhanced the company’s footprint in Texas and helped penetrate the market given the growth opportunities.
Management remains interested in pursuing strategic acquisitions on the back of a strong capital base, mergers and acquisition experience, and deepened relationships.
Over the past six months, shares of PB have gained 8.8% compared with the industry’s 7.3% growth.
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Currently, PB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acquisitions Completed by Other Financial Services Firms
Earlier this month, Synchrony Financial SYF announced the completion of its acquisition of Ally Lending, the point-of-sale financing business, from Ally Financial Inc. ALLY. It included $2.2 billion of loan receivables.
The deal expands the SYF’s multi-product strategy by accelerating the company’s ability to offer instalment products to its merchants and contractors. This acquisition enables the company to create a distinguished solution in the industry through the simultaneous offerings of revolving credit and instalment loans at the point-of-sale in the home improvement vertical. SYF expects the deal to be accretive to its 2024 earnings per share.
Last month, State Street Corporation STT completed the acquisition of CF Global Trading. The deal was announced in March 2023 in an effort to further enhance STT’s outsourced trading capabilities. The financial terms of the deal were not disclosed.
In addition to significant expertise to STT’s outsourced trading services, clients can enjoy multi-class execution across equities, fixed income, exchange-traded derivatives and foreign exchange along with modular-based solutions. It will allow clients to outsource their trade components while retaining the control, as well as access the front, middle, and back office through State Street Alpha.
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