Houston-based Prosperity Bancshares has agreed to buy in-state peer American Bank Holding Company, the parent company of American Bank, in an all-stock deal valued at $321.5 million, the companies announced Friday.
Manitowoc, Wisconsin-based Bank First Corp. proposed to buy in-state lender Centre 1 Bancorp in an all-stock deal valued at $174.3 million aiming to expand Bank First’s footprint into communities in southern Wisconsin and northern Illinois, marking the lender’s first movement out of the state, the companies said Friday.
Prosperity’s deal, which is expected to close in the fourth quarter of 2025 or the first quarter of next year, is awaiting American’s shareholders and customary regulatory approvals. Bank First is awaiting regulatory and Centre’s shareholders’ approvals and expects to close the deal in the first quarter of 2026. Bank First’s systems conversion is anticipated in the second quarter of 2026.
Prosperity’s acquisition
Prosperity’s latest acquisition reflects its growth strategies through mergers and acquisitions, which have been a key part of its business for decades. The lender’s last proposed acquisitions involved two Texas banks – Midland-based FirstCapital Bank of Texas and Lubbock-based Lone Star State Bank of West Texas, the latter of which was finalized in April 2024.
The latest acquisition will boost Prosperity’s operations in South Texas and its neighboring areas while scaling up its presence in Central Texas, including San Antonio, “a highly desirable, high growth area,” David Zalman, senior chairman and CEO of Prosperity, noted in the press release.
He expressed his excitement about working with the management team and other professionals at American Bank, adding that the banks have complementary footprints.
“We have followed American Bank closely for more than two decades and have tremendous respect for the bank and for the people that have contributed to its success,” Zalman said in a statement. “The customers of American Bank will be able to use any of our locations across Texas and Oklahoma after operational integration.”
The transaction will add American Bank’s 18 banking offices and two loan production offices to Prosperity’s footprint. In addition, American’s $2.5 billion in assets, $1.8 billion in loans and $2.3 billion in deposits will boost Prosperity’s roughly $39 billion in assets.
Prosperity will issue nearly 4.4 million shares of common stock for all outstanding shares of American common stock. The deal value was decided based on the acquirer’s closing price of $72.40 as of Wednesday.
After the completion of the merger, Stephen Raffaele, American Bank CEO and president, will join Prosperity Bank as South Texas and San Antonio chairman, while Ben Wallace, American Bank chairman, will join Prosperity Bank as South Texas senior chairman. Additionally, some members of American Bank management will maintain leadership roles in the combined organization. Raffaele and Wallace will also join Prosperity Bank’s board.
“Over American Bank's 50-plus year history of growth and success, we have placed our focus on relationship banking and excellent customer service,” Raffaele said in a prepared statement. “By joining forces with Prosperity, we will continue our journey of service and success, but with all the advantages of the strength and wherewithal of a combined larger and premier banking institution.”
Bank First deal
The Bank First merger will create an entity with assets of roughly $5.91 billion, loans of about $4.58 billion and deposits of roughly $4.89 billion, based on the financial results as of the end of June.
“This partnership brings together two long-standing, community-focused institutions united by a shared commitment to responsive, relationship-based banking,” Mike Molepske, chairman and CEO of Bank First, stated in the press release, adding it would enable the lender to offer expanded resources.
First National Bank and Trust Company, the subsidiary of Centre 1 Bancorp. had approximately $1.55 billion in consolidated assets, $994.9 million in gross loans, $1.29 billion in deposits, and $112.6 million in consolidated stockholders' equity.
Under the terms of the agreement, each Centre shareholder will receive 0.9200 shares of Bank First common stock per Centre share. The deal price was based on Bank First's Thursday’s closing price of $125.78 per share.
The merger combines two relationship-focused community banks with strong deposit franchises - both maintaining over 25% of deposits in non-interest-bearing checking accounts - exceeding the industry average of under 20%, the companies said.
Centre shareholders and customers will gain access to Bank First's 40% ownership interest in Ansay & Associates, an agency providing integrated insurance, risk management and benefit solutions.
After the merger is completed, Steve Eldred, chairman and CEO of Centre, will join the boards of Bank First and its subsidiaries.
“This merger reflects a shared promise to remain dependable, approachable, and resilient, all values that have long defined our approach to banking,” Eldred said in a statement.
