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Prosperity's Zalman Bends His Own Rules in Pricey Deal

July 3, 2013
American Banker

David Zalman dislikes bidding for banks — but he hates losing out on a target he really wants. The chief executive of Prosperity Bancshares (PB) in Houston gave in just a little to snag the oldest independent bank in Texas, FVNB in Victoria, for $380 million in cash and stock this week. The rising stock price is further proof that the market is more interested in price to earnings, says Dan Bass, a managing director at Performance Trust Capital Partners. The deal is priced at 17.7 times FVNB's earnings; Prosperity trades at 16.5 times its earnings. When adjusted for an expected 25% cost savings, the multiple is closer to 11.7, Bass says.

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Prosperity Bancshares stays in a buying mood

July 1, 2013
Houston Chronicle

Houston's Prosperity Bancshares has been on a merger tear in the past 18 months, announcing seven deals including one on Monday. But the latest - an agreement worth nearly $380 million to buy First Victoria National Bank - has been brewing for years. Dan Bass, managing director of investment banking with Performance Trust, called Prosperity one of the "darlings" of the banking industry right now because of its ability to negotiate deals at a good price and successfully integrate companies. "They are a machine. They are striking while the iron is hot and doing a number of transactions," Bass said of Prosperity. "This is not the biggest deal they have done, but it is a sizable deal. They are starting to see bigger deals now and those move the needle more. They are getting larger quickly."

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