Prosperity Bancshares, Inc.Â® to Acquire The Bank Arlington HOUSTON, Jan. 19, 2012 /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB) announced today the signing of a definitive agreement to acquire The Bank Arlington. This is the third acquisition announced by Prosperity within the past few months. The Bank Arlington operates one (1) banking office in Arlington, Texas, in the Dallas-Fort Worth Metroplex. As of December 31, 2011, The Bank Arlington reported total assets of $37.3 million, total loans of $21.3 million and total deposits of $32.8 million. Under the terms of the definitive agreement, Prosperity will issue up to 138,600 shares of Prosperity common stock for all outstanding shares of The Bank Arlington capital stock, subject to certain conditions and potential adjustments. "Our team has wanted to expand our presence in the Dallas/Fort Worth Metroplex for some time and adding a location in Arlington is an excellent fit for us," commented David Zalman, Chairman and Chief Executive Officer of Prosperity. The customers of The Bank Arlington will be able to use any of our locations across the state after the merger. Following the merger, Prosperity will have thirty-two (32) banking centers across the Dallas/Fort Worth MSA. "To merge with Prosperity Bank, a large community bank, that is considered the #1 bank in the country, by Forbes, gives The Bank Arlington the ability to remain a community oriented bank serving the Tarrant County Market with the same people that founded the bank," said Billy W. Allen, President and CEO of The Bank Arlington. The Bank Arlington sees this as an opportunity to be part of a larger community bank and offer its customers additional products, a larger branch network and the financial strength of a premier banking organization. The merger has been approved by the Boards of Directors of both companies and is expected to close during the first half of 2012, although delays may occur. The transaction is subject to certain conditions, including the approval by The Bank Arlington's shareholders and customary regulatory approvals. Operational integration is anticipated to begin during the second quarter of 2012. The Bank Arlington was advised in this transaction by Commerce Street Capital, LLC as financial advisor and Fenimore, Kay, Harrison & Ford, LLP as legal counsel. Bracewell & Guiliani LLP was legal counsel to Prosperity Bancshares, Inc. Prosperity Bancshares Inc.®, recently named "America's Best Bank" by Forbes is a $9.8 billion Houston, Texas based regional financial holding company, formed in 1983. Prosperity currently operates one hundred seventy five (175) full service banking locations; fifty-nine (59) in the Houston area; twenty (20) in the South Texas area including Corpus Christi and Victoria; thirty-one (31) in the Dallas/Fort Worth area; twenty-one (21) in the East Texas area; thirty-four (34) in the Central Texas area including Austin and San Antonio; and ten (10) in the Bryan/College Station area. In connection with the proposed merger of The Bank Arlington into Prosperity Bank, Prosperity will file with the Securities and Exchange Commission a registration statement on Form S-4 to register the shares of Prosperity's common stock to be issued to the shareholders of The Bank Arlington. The registration statement will include a proxy statement/prospectus which will be sent to the shareholders of The Bank Arlington seeking their approval of the proposed transaction. In connection with the proposed merger of East Texas Financial Services, Inc. into Prosperity, Prosperity has filed with the Securities and Exchange Commission a registration statement on Form S-4 to register the shares of Prosperity's common stock to be issued to the stockholders of East Texas Financial Services. The registration statement includes a proxy statement/prospectus which will be sent to the stockholders of East Texas Financial Services seeking their approval of the proposed transaction. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements within the meaning of the securities laws that are based on current expectations, assumptions, estimates and projections about Prosperity and its subsidiaries. Copies of the SEC filings for Prosperity Bancshares® may be downloaded from the Internet at no charge from www.prosperitybanktx.com.