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.