Prosperity Bancshares Acquires Stellar Bancorp for $2 Billion

By Chris Stiles • Wednesday, January 28 12:03 • Permanent Link

Prosperity Bancshares, Inc. and Stellar Bancorp, Inc. have announced a definitive merger agreement, with Prosperity acquiring Stellar and Stellar Bank. As of December 31, 2025, Stellar reported total assets of $10.807 billion, total loans of $7.301 billion, and total deposits of $9.021 billion.

Under the terms of the agreement, Prosperity will issue 0.3803 shares of its common stock and $11.36 in cash for each outstanding share of Stellar common stock. Based on Prosperity’s closing price of $72.90 on January 27, 2026, the total consideration was valued at approximately $2.002 billion.

Upon completion of the merger, Robert R. Franklin, Jr., Stellar’s CEO, and Executive Chairman, will join Prosperity Bank as Vice Chairman, and Ramon Vitulli, Stellar’s President and CEO, will join as Houston Area Chairman. Additionally, Mr. Franklin and one additional member of the Stellar board of directors will join the board of directors of Prosperity.

Following the merger, Prosperity will become the second largest bank by deposits headquartered in Texas, with over 330 banking centers. David Zalman, Senior Chairman and CEO of Prosperity, expressed excitement about the partnership, emphasizing the increased scale that will better position them to invest in future opportunities and serve their customers.

Stellar's CEO, Mr. Franklin, highlighted the complementary footprint of the two banks and expressed enthusiasm about creating one of the strongest Texas banking franchises. The merger has been unanimously approved by the boards of directors of both companies and is expected to close during the second quarter of 2026, subject to regulatory approvals and shareholder consent.

Prosperity Bancshares, Inc. is a $38.463 billion regional financial holding company providing banking services and investments throughout Texas and Oklahoma, with 301 full-service banking locations. Stellar Bancorp, Inc., headquartered in Houston, Texas, provides commercial banking services primarily to small* to medium-sized businesses and individual customers across Houston, Dallas, Beaumont, and surrounding communities in Texas. Today the company's shares have moved -1.0% to a price of $72.39. For the full picture, make sure to review PROSPERITY BANCSHARES INC's 8-K report.

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