Coppermark Bank, one of Oklahoma City's largest banks, has been sold to Houston-based Prosperity Bancshares in a stock and cash transaction worth nearly $200 million, the companies said Monday.
Coppermark, with total assets of $1.3 billion, operates six branches in the Oklahoma City area and three in the Dallas metro. It is the sixth-largest bank in the Oklahoma City area and the state's 12th-largest bank, based on the most recently available market share data from federal regulators.
Prosperity Bancshares will pay $60 million and issue up to 3.3 million shares of its common stock for all outstanding shares of Coppermark's capital stock. Prosperity's publicly traded stock closed Monday at $41.22, which puts the current value of the shares in the transaction at more than $134 million, and total value on the transaction about $194 million.
Prosperity Bancshares is a $13.9 billion financial services company that runs Prosperity Bank and its more than 200 full-service branches in Texas. The Coppermark deal, Prosperity's sixth transaction in the past 15 months, would make the Houston company the nation's 50th-largest U.S.-based bank.
The merger has been approved by directors of both companies and is expected to close during the first quarter of 2013. The transaction is subject to approval by Coppermark Bancshares' shareholders and regulators. Operational integration is expected to begin during the second quarter of 2013.
Documents prepared for shareholders noted that the deal “creates ample opportunities for in-market consolidation in new markets surrounding Oklahoma City and throughout Oklahoma.”
Prosperity CEO David Zalman lauded the five-decade history of Coppermark.
“We intend to continue that passion, and Coppermark has committed to help Prosperity grow in the state of Oklahoma,” Zalman said in a statement issued by Prosperity.
Coppermark Chairman Russell E. Swarts said the company's leaders “have worked for 50 years to build a strong bank with a reputation for integrity and exceptional customer service.”
“We are excited for our customers, officers, staff and stockholders to join with a strong partner like Prosperity,” Swarts said in a statement.
Several Coppermark executives will remain active in the Oklahoma operations of the merged companies.
Swarts will be senior chairman of the central Oklahoma region, and President Thomas Legan will be regional chairman and manage day-to-day operations of the Oklahoma offices. Chief Operating Officer Jacque Fiegel will lead the bank's retail and business banking functions in Oklahoma, and Chief Credit Officer Jeff Russell will be responsible for lending in the state.