Prosperity Bancshares and Stellar Bancorp to merge in $2bn deal

Texas-based Prosperity Bancshares has agreed to get Stellar Bancorp and its subsidiary Stellar Bank successful a woody valued astatine astir $2bn.

As per the agreed terms, Prosperity volition connection 0.3803 shares of its communal banal on with $11.36 successful currency for each Stellar share.

The woody expands the foothold of Prosperity Bancshares, the genitor of Prosperity Bank, successful its location market.

Stellar Bank presently runs 52 branches successful the greater Houston area, Beaumont, surrounding regions, and Dallas, Texas.

As of 31 December 2025, Stellar reported consolidated assets of $10.81bn, loans of $7.3bn, and deposits of $9.02bn.

The merger is acceptable to make the 2nd largest Texas-based bank, with assets of astir $54bn.

The boards of some companies person approved the merger unanimously.

Completion is targeted for the 2nd 4th of 2026, taxable to regulatory review, support from Stellar shareholders and different modular conditions.

Prosperity elder president and CEO David Zalman said: “The operation of our companies volition make the 2nd largest slope by deposits headquartered successful Texas with implicit 330 banking centres. Together, our accrued standard amended positions america to put successful aboriginal opportunities and service our customers. Stellar and its predecessors person been serving the Houston and Beaumont, Texas areas for galore years.

“This is simply a uncommon accidental to importantly heighten our beingness successful the Houston area, a marketplace with a divers system that is continually attracting concern and has a increasing population.”

Leadership changes are expected arsenic portion of the merger.

Stellar CEO and Stellar Bank enforcement president Robert R. Franklin, Jr. volition articulation Prosperity Bank arsenic vice chairman.

Stellar president and Stellar Bank CEO Ramon Vitulli volition determination to Prosperity Bank arsenic Houston country chairman.

Other members from Stellar’s absorption are besides acceptable to stay successful enactment positions pursuing the merger.

Besides, Franklin and different subordinate from the Stellar Board volition articulation Prosperity’s Board of Directors, portion Vitulli and Pat Parsons, presently a manager astatine Stellar Bank volition articulation the Board astatine Prosperity Bank.

Franklin said: “By joining forces, we are creating 1 of the strongest Texas banking franchises, supported by an exceptional deposit basal and a shared committedness to relationship-driven assemblage banking.

“This operation enhances our quality to service customers with greater scale, expanded capabilities, and the fiscal spot needed to conscionable the evolving needs of a increasing Texas economy.”

"Prosperity Bancshares and Stellar Bancorp to merge successful $2bn woody " was primitively created and published by Retail Banker International, a GlobalData owned brand.