Prosperity Moves To Acquire Southern National Bank Of Texas

Houston-based Prosperity Bancshares Inc. has reached an agreement to buy SNB Bancshares Inc., which operates Sugar Land’s Southern National Bank of Texas.

If approved by shareholders, Prosperity said it would issue .3577 shares of its common stock, plus $7.50 cash, for each share of SNBT common and Class B stock, in a deal worth $242.7 million.

The boards of directors of both bank companies have approved the merger, but SNBT shareholders have yet to vote on the deal. If approved, the companies expect the transaction to be completed in the second quarter of 2006.

“We are pleased to announce our first acquisition in the Sugar Land and Katy area. Southern National Bank is an excellent partner for us as we maintain our objective of being a true Texas bank,” said Prosperity Chief Executive Officer and President David Zalman.

“Both the Sugar Land and Katy areas are growing rapidly and Southern National Bank has been an important part of this growth. By combining our customer bases and leveraging our product and service capabilities, we will be able to continue that growth.”

Southern National Bank of Texas operates seven branches, including one newly opened in Pecan Grove. Prosperity said in a prepared statement that management of those locations will remain the same after the acquisition.

As of Sept. 30, SNBT had assets of $1.121 billion, deposits of $738.3 million and $88.3 million in shareholder equity.

“This is a positive step for Southern National Bank, its employees and customers. In effect, the merger will provide SNBT with additional resources to grow and compete,” said SNBT President and Chief Executive Officer Harvey E. Zinn.

Zinn will become a Prosperity director once the deal is complete, and will serve the bank in the capacity of “Chairman – Houston Area,” the companies said in a statement.

The acquisition will give Prosperity a total of 90 branches, 38 in the Houston market, 16 in the Corpus Christi area, 11 in Dallas, 6 in Austin and the rest spread east, south and southwest of Houston.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.