According to the deal, Prosperity will issue up to 8,525,000 shares of Prosperity common stock plus $178.5m in cash for all outstanding shares of American State Financial Corporation capital stock.
Prosperity chairman and CEO David Zalman said the company will have 215 banking centres across the state of Texas following the merge.
Prosperity will retain the employees of ASB, as per the agreement.
WR Collier will serve as a director of Prosperity Bancshares and as senior chairman – West Texas Area of the combined entity.
Michael Epps, will act as a chairman of West Texas Area and will be responsible for the day to day operations and management of all West Texas locations.
Tony Whitehead will be named as president of West Texas Area and will be responsible for credit approval in West Texas.
The fourth transaction by Prosperity within the past few months is expected to close during the third quarter of 2012.
ASB operates 37 banking offices in 18 counties across West Texas and as of 31 December 2011, ASB, on a consolidated basis, reported total assets of $3.08bn, total loans of $1.21bn and total deposits of $2.46bn.
