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Ameris Bancorp acquires The Prosperity Banking Company

Ameris Bancorp (ABCB) announced earlier today that it signed a definitive merger agreement under which Ameris will acquire The Prosperity Banking Company, the parent company of Prosperity Bank. Upon completion of the holding company merger, Prosperity Bank will be merged with and into Ameris Bank. Prosperity currently operates 12 banking locations, with the majority of the franchise concentrated in northeast Florida. As of December 31, 2012, Prosperity reported assets of $742M, loans of $464M and deposits of $478M. Under the terms of the merger agreement, Prosperity shareholders will have the option to elect to receive either 3.125 shares of Ameris common stock or $41.50 in cash for each share of Prosperity common stock, subject to the requirement that no more than 50% of the overall consideration will be in the form of cash. Assuming 100% stock consideration, the transaction would be valued at approximately $15.7M, based on Ameris's closing stock price of $13.32 on May 1, 2013 and Prosperity's common shares outstanding of 377,960 as of December 31, 2012. The merger agreement has been unanimously approved by the board of directors of each company. The transaction is expected to close in Q3.