Long-delayed Texas takeover crosses finish line

Houston-based Prosperity Bancshares has completed its acquisition of Lone Star State Bancshares about a year later than originally planned.

Polcono –

Houston-based Prosperity Bancshares said Monday it has completed Long-pending Lone Star State Bancshares takeover in Lubbock.

The cash-and-stock deal was first announced in October 2022 and was initially expected to close in the first quarter of 2023. It was finally finalized on Monday.

The Lone Star acquisition is part of a two-pronged M&A push to expand in West Texas. Prosperity launched this year with $38.5 billion in assets and announced in late 2022 that it would acquire Midland-based First Bancshares of Texas for $341.6 million. At the time, Lone Star State University had 16 branches with $2.1 billion in assets, while Lone Star State University Star State University has nine branches, assets of $1.3 billion, and assets of $228.7 million.

Prosperity completed the First Bancshares deal last May. But the Lone Star deal was stalled during the regulatory approval process. The buyer provided few details about delays over the past year, saying only that one Lone Star branch had encountered challenges. .

Notably, regulators have increased scrutiny of acquisitions over the past two years Follow President Biden’s guidance After years of consolidation in banking and other industries, some deals have been delayed, slowing the overall pace of bank mergers and acquisitions.

bank 99 M&A deals announced in 2023 S&P Global Market Intelligence statistics show that the number of bank portfolios signed in 2021 is 202, compared with 157 last year.

The two West Texas deals mark Prosperity’s first acquisitions in nearly a decade.In the decade before the 2020 pandemic, the company acquired 10 banks; the latest Acquisition of LegacyTexas Financial Group in 2019 Located in Plano and valued at approximately $2 billion.

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