Prosperity Bancshares in Houston has agreed to buy American Bank Holding Co. in Corpus Christi, Texas. The $38.8 billion-asset Prosperity said in a news release that it will pay $321.5 million in stock for the parent of the $2.5 billion-asset American Bank. The deal, which is expected to close by the first quarter, priced American at 226% of its tangible book value.
Mercantile Bank in Grand Rapids, Michigan, has agreed to buy Eastern Michigan Financial in Croswell. The $6.2 billion-asset Mercantile said in a news release that it would pay $95.8 million in cash and stock for the $505 million-asset Eastern. The deal, which is expected to close in the fourth quarter, priced Eastern at 165% of its tangible book value.
GreatAmerica Holdings, which owns a commercial equipment finance company, has agreed to buy Heritage Bank in Marion, Iowa. GreatAmerica did not disclose how much it would pay for the $40.4 million-asset Heritage, which it plans to rebrand as GreatAmerica Bank.
First Community Bankshares in Bluefield, Virginia, has agreed to buy Hometown Bancshares in Middlebourne, West Virginia. The $3.2 billion-asset First Community said in a news release that it will pay $41.5 million in stock for the parent of the $402 million-asset Union Bank. The deal, which is expected to close early in the first quarter, priced Hometown at 158% of its tangible book value.
New Independent Bancshares in New Washington, Indiana, has agreed to buy State Bank of Medora in Indiana. The deal is expected to close in the second half of this year. The $614.7 million-asset New Independent did not disclose how much it will pay for the $103.4 million-asset State Bank of Medora.
M&A News is reported by Paul Davis and reprinted with permission as an adaptation of the material from TheBankSlate.com.
