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Merger creates Oklahoma's 7th-largest bank

Houston-based Prosperity Bancshares has agreed to purchase Tulsa-based F&M Bank & Trust Co. in a $244 million cash and stock deal.
by Brianna Bailey Modified: August 29, 2013 at 8:00 pm •  Published: August 30, 2013

Houston-based Prosperity Bancshares has inked a deal to purchase the parent company of Tulsa-based F&M Bank & Trust Co. for $244 million in cash and stock.

The deal includes $47 million in cash and about 3.3 million shares of Prosperity stock valued at $196 million.

F&M Bank operates 13 bank offices in Oklahoma and Texas, 10 in the Tulsa area and three in Dallas. It had more than $2.43 billion in assets at the end of June.

With its merger with Prosperity, the combined bank will be the seventh-largest in Oklahoma, controlling about 3.9 percent of state-based deposits, said David Zalman, Prosperity Bancshares chairman and CEO, during a conference call Thursday.

This will be the second Oklahoma acquisition in the span of a year for Prosperity Bancshares, the parent company of Prosperity Bank.

Prosperity completed its acquisition of Oklahoma City-based Coppermark Bank last spring in a cash-and-stock transaction valued about $194 million.

Together with the Coppermark merger, the deal to acquire F&M will boost Prosperity Bank's presence in Oklahoma, Zalman said.

“It fit our needs to really expand — we always said we wouldn't go to the Oklahoma market to just do one deal,” Zalman said. “This will give us a presence in both major cities.”

F&M had been weighing the cost of going public versus merging with another bank, Zalman said.

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by Brianna Bailey
Business Writer
Brianna Bailey has lived in Idaho, Germany and Southern California, but Oklahoma is her adopted home. She has a bachelor's degree in Journalism from the Univerisity of Oklahoma and has worked at several newspapers in Oklahoma and Southern...
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