Houston-based Bank Buys Into Dallas-Fort Worth With $2.1 Billion LegacyTexas Acquisition

Two of the biggest Texas-headquartered banks are merging in an estimated $2.1 billion deal.Houston-based Prosperity Bancshares Inc is acquiring Plano-based LegacyTexas in a stock and cash transaction. The deal, announced Monday, is expected to close later this year after shareholder and regulatory approvals.LegacyTexas’ 42 North Texas area locations will join with 246 Prosperity Bank locations in Texas and Oklahoma. The 288 branches would hold 3 percent of the market share in Texas.“We’re very excited about it. I would say three things, bigger, better and stronger,” David Zalman, chairman and chief executive officer of Prosperity, said in an investor call Monday.Zalman said the merger enhances the bank’s North Texas franchise, raising its combined branch total to 73 branches. “Strategically, it makes sense to both of us,” LegacyTexas CEO and President Kevin Hanigan said on the call. “It’s size, it’s scale, it’s market share in both Houston and Dallas.”The merger greatly increases the size of the bank's deposits and market share, making it among the state's largest. Before the deal, Prosperity ranked as Texas' 9th largest and LegacyTexas was 13th, according to the Texas Department of Banking.Combined, the banks would have deposits totaling $24.3 billion in Texas.  Continue reading...