Lone Star State Bancshares, Inc. | Stephens

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Financial Advisor

Lone Star State Bancshares, Inc.

$229 Million 10/11/2022 Depository Pending
Lead Bankers: Kade Machen, Buster Williams
Public Companies
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Transaction Details

  • On October 11, 2022, Prosperity Bancshares, Inc. (NYSE: PB) (“Prosperity) and Lone Star State Bancshares, Inc. (“Lone Star”), the parent company of Lone Star State Bank of West Texas (“Lone Star Bank”), jointly announced the signing of a definitive merger agreement pursuant to which Prosperity will acquire Lone Star and Lone Star Bank
  • Prosperity will issue 2,376,182 shares of Prosperity common stock plus $64.1 million in cash for all outstanding shares of Lone Star capital stock, subject to certain conditions and potential adjustments
  • Lone Star Bank operates 5 banking offices in the West Texas area, including its main office in Lubbock, and 1 banking center in each of Brownfield, Midland, Odessa and Big Spring, Texas
  • Alan Lackey, Lone Star Chief Executive Officer, will join Prosperity Bank as West Texas Area President and Melisa Roberts, Lone Star Chief Lending Officer, will join Prosperity Bank as West Texas Area Vice President
Sources: Company Press Release and Investor Presentation
  1. 1) Based on a PB stock price of $69.27 as of October 7, 2022

    2) Reflects bank-level financials as of 6/30/2022

    3) 21% tax effect due to subchapter S corporate status

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