Texas and Wisconsin financial institutions reach acquisition agreements with fellow local banking firms
In a significant move, Prosperity Bancshares, a Houston-based bank, has agreed to acquire American Bank Holding Company in an all-stock deal valued at $321.5 million. The transaction is set to add 18 banking offices and two loan production offices to Prosperity's footprint, strengthening its presence in South Texas and Central Texas, including San Antonio.
Simultaneously, Bank First Corp, based in Wisconsin, has announced a merger with Centre 1 Bancorp., which owns First National Bank and Trust Company. The deal will provide Centre shareholders and customers with access to Bank First's 40% ownership interest in Ansay & Associates, an agency offering integrated insurance, risk management, and benefit solutions.
These strategic acquisitions reflect both banks' commitment to growth through mergers and acquisitions, a strategy that has been a cornerstone of their business for decades. Prosperity Bancshares, traditionally targeting acquisitions that bolster its presence in Texas and nearby markets, will benefit from American Bank's strong local banking franchise. Bank First Corp, on the other hand, aims to enhance its market share and operational efficiencies in Wisconsin and neighboring states.
Under the terms of the agreements, each Centre shareholder will receive 0.9200 shares of Bank First's common stock per Centre share, based on Bank First's Thursday's closing price of $125.78 per share. For the American Bank deal, Prosperity will issue nearly 4.4 million shares of common stock for all outstanding shares of American common stock.
The mergers are subject to customary regulatory approvals and are expected to close in the fourth quarter of 2025 or the first quarter of 2026. Key members of American Bank's management will maintain leadership roles in the combined organization, while Stephen Raffaele, American Bank's CEO and president, will join Prosperity Bank as South Texas and San Antonio chairman, and Ben Wallace, American Bank chairman, will join as South Texas senior chairman. Steve Eldred, chairman and CEO of Centre, will join the boards of Bank First and its subsidiaries after the merger.
The partnership between Bank First and First National Bank and Trust Company will create a combined entity with approximately $5.91 billion in assets, $4.58 billion in loans, and $4.89 billion in deposits. Eldred stated that these mergers reflect a shared promise to remain dependable, approachable, and resilient, values that have long defined their approach to banking.
These strategic acquisitions mark a significant step forward for both Prosperity Bancshares and Bank First Corp, as they continue to expand their geographic footprint and customer base, focusing on regional community banks. For more up-to-date information on their M&A activities, it is recommended to review their latest quarterly or annual reports, press releases, or financial news sources dedicated to banking.
- The strategic acquisitions by Prosperity Bancshares and Bank First Corp demonstrate their focus on growth within the business and finance industry, specifically through mergers and acquisitions within the banking-and-insurance sector.
- With Prosperity Bancshares targeting expansion in Texas and neighboring markets, the acquisition of American Bank Holding Company will bolster its local banking franchise and broaden its business reach, while Bank First Corp aims to strengthen its market share and operational efficiencies in Wisconsin and surrounding states via the merger with Centre 1 Bancorp.
