Prosperity Bancshares to Acquire East Texas Financial Services

Prosperity Bancshares, Inc.® PRSP announced today the signing of a definitive agreement to acquire East Texas Financial Services, Inc. FFBT and its wholly-owned subsidiary, First Federal Bank Texas. East Texas Financial Services operates four (4) banking offices in the Tyler MSA, including three (3) locations in Tyler, Texas and one (1) location in Gilmer, Texas. As of September 30, 2011, East Texas Financial Services reported total assets of $210.6 million, total loans of $161.2 million and total deposits of $121.2 million. Under the terms of the definitive agreement, Prosperity will issue 531,000 shares of Prosperity common stock for all outstanding shares of East Texas Financial Services capital stock, subject to certain conditions and potential adjustments.