Houston Business Journal – by Casey Wooten and Greg Barr
The local bank in the deal is North Houston Bank. The capital-starved bank held $325.5 million worth of assets at the end of September 2009, according to Federal Deposit Insurance Corp. data. The bank posted a loss of $25 million for the same period.
Houston-based Prosperity (NASDAQ: PRSP) will pay a premium for approximately $420 million in deposits, as well as loans and other assets to Minneapolis-based U.S. Bank. U.S. Bank is a subsidiary of U.S. Bancorp (NYSE: USB).
U.S. Bank acquired North Houston Bank as well as two smaller rural Texas banks — Madisonville State Bank and Citizens National Bank, based in Teague — in October 2009 in an FDIC-assisted transaction in which U.S. Bank acquired nine banks in several states operated by Illinois-based FBOP Corp., which purchased North Houston Bank in 1995.
However, U.S. Bank made the decision in early December to sell the branches. A bank spokesman said at the time that, after further assessment since the acquisition, the branches were not the right strategic fit.