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Prosperity Bancshares Closes Merger with LegacyTexas Financial Group
Friday 01 November 2019

1 November 2019 - Texas, US-based bank holding company Prosperity Bancshares, Inc. (NYSE: PB) has completed its merger with LegacyTexas Financial Group, Inc. (NASDAQ: LTXB), the parent company of LegacyTexas Bank, the company said. 

The USD 2.1bn, cash and stock deal was announced in June.

As of September 30, 2019, on a consolidated basis, LegacyTexas had total assets of USD 10.5bn, total loans of USD 9.1bn and total deposits of USD 6.5bn. 

LegacyTexas Bank operated 42 banking centres in and around the Dallas-Fort Worth area.

Immediately after the merger, LegacyTexas Bank was merged into Prosperity Bank and LegacyTexas' business will operate as Prosperity Bank dba LegacyTexas Bank until systems conversion, which is scheduled for early June 2020.

Upon conversion, the combined bank will operate as Prosperity Bank.

In connection with the merger, Kevin Hanigan, LegacyTexas president and chief executive officer was named president and chief operating officer of Prosperity Bancshares and president of Prosperity Bank; and Mays Davenport, LegacyTexas EVP and chief financial officer, was named EVP and director of Corporate Strategy of Prosperity Bancshares and Prosperity Bank. 

Upon completion of the merger, David Zalman will serve as Senior chairman and chief executive officer of Prosperity Bancshares, H.E. Timanus, Jr. will serve as chairman and Eddie Safady will serve as vice chairman. 

In addition, Kevin Hanigan, Bruce Hunt and George Fisk joined the Prosperity Bancshares board of directors and Kevin Hanigan and Mays Davenport joined the Prosperity Bank board of directors.

As of September 30, 2019, Prosperity Bancshares, Inc. is a USD22.1 bn Houston, Texas based regional financial holding company, formed in 1983.

Operating under a community banking philosophy and seeking to develop broad customer relationships based on service convenience, Prosperity offers a range of traditional loan and deposit products to its customers, which consist primarily of small and medium sized businesses and consumers.

Prosperity Bancshares currently operates 243 full-service banking locations.

Keefe, Bruyette and Woods, A Stifel company, represented Prosperity Bancshares by providing a fairness opinion to its board of directors, and Bracewell LLP acted as legal counsel. LegacyTexas was advised in this transaction by J.P. Morgan Securities LLC, as financial advisor, and Shapiro Bieging Barber Otteson LLP, as legal counsel.
Date Published: 01/11/2019
Target: LegacyTexas Financial Group
Country: USA
Deal Size: 2.1bn (USD)
Sector: Banking/Financial Services
Type: Corporate acquisition
Financing: Cash and Stock
Status: Closed
Buyer: Prosperity Bancshares, Inc
Buyer Advisor: Keefe, Bruyette and Woods , Bracewell LLP