Prosperity Bancshares to Acquire Stellar Bancorp for $2bn
Texas-based Prosperity Bancshares, a financial holding company operating Prosperity Bank, has announced a deal to acquire Stellar Bancorp, including its subsidiary Stellar Bank. The agreement, valued at approximately $2 billion, signifies a significant expansion of Prosperity Bancshares’ presence in its home market.
Deal Details
Under the terms of the agreement, Prosperity will offer 0.3803 shares of its common stock together with $11.36 in cash for each share of Stellar. This deal will bolster Prosperity Bancshares’ footprint significantly, given Stellar Bank’s considerable presence in Texas.
Stellar Bank’s Reach
Stellar Bank operates 52 branches across the greater Houston area, Beaumont, surrounding regions, and Dallas, Texas. As of 31 December 2025, Stellar reported consolidated assets of $10.81 billion, loans of $7.3 billion, and deposits of $9.02 billion.
The Impact of the Merger
The merger is set to result in the second-largest Texas-based bank, boasting assets of approximately $54 billion. Upon completion, which is targeted for the second quarter of 2026, the combined entity will operate over 330 banking centres. This merger is subject to regulatory review, approval from Stellar shareholders and standard closing conditions.
Leadership Changes
Leadership changes are expected to follow the merger. Stellar CEO and Stellar Bank executive chairman Robert R. Franklin, Jr. will join Prosperity Bank as vice chairman. Stellar president and Stellar Bank CEO Ramon Vitulli will become Prosperity Bank’s Houston area chairman. Furthermore, other members from Stellar’s management are set to retain leadership positions post-merger.
Board of Directors
Franklin and another member from the Stellar Board will join Prosperity’s Board of Directors. Additionally, Vitulli and Pat Parsons, currently a director at Stellar Bank, will also join the Board at Prosperity Bank.
Comments from the Leadership
David Zalman, Prosperity’s senior chairman and CEO, expressed enthusiasm about the merger. He stated that the union of the two companies would create the second largest bank by deposits headquartered in Texas. He also noted that this merger is a rare opportunity to significantly enhance Prosperity’s presence in the Houston area, which has a continually growing population and diversifying economy.
Zalman’s sentiments were echoed by Franklin, who emphasized the shared commitment to relationship-driven community banking that the combined entity would bring. He further stated that the merger enhances their ability to serve customers, thanks to expanded capabilities, greater scale, and the financial strength to meet the evolving needs of a burgeoning Texas economy.
This report was sourced from Retail Banker International, click here to read the full article.
