BY Richard Summerfield
In a deal that will significantly enhance its market position in Texas, Prosperity Bancshares, Inc. has agreed to acquire Stellar Bancorp in a cash and stock deal worth $2bn.
Unanimously approved by the boards of directors of both companies, the transaction is expected to close during the second quarter of 2026, subject to the receipt of required regulatory approvals.
The agreement involves issuing 0.3803 shares of Prosperity stock and $11.36 in cash per Stellar share, valuing each share at approximately $39.08, representing a 20 percent premium over Stellar’s recent closing price.
Upon completion of the deal, Stellar will be merged into Prosperity, with key Stellar executives, including Robert R. Franklin Jr., Stellar’s chief executive and Ramon Vitulli, the company’s president, assuming senior leadership and board roles in the combined organisation.
The combined company will be the second largest Texas-headquartered bank by deposits, enhancing its scale, franchise strength and competitive positioning in a fast-growing regional economy while preserving a community banking focus for customers and local stakeholders.
“Together, our increased scale better positions us to invest in future opportunities and serve our customers,” said David Zalman, senior chairman and chief executive of Prosperity. “Stellar and its predecessors have been serving the Houston and Beaumont, Texas areas for many years. This is a rare opportunity to significantly enhance our presence in the Houston area, a market with a diverse economy that is continually attracting investment and has a growing population.
“Our banks have a complementary footprint, and we are familiar with and remain committed to the communities that Stellar Bank serves, including with both financial products and community support,” he added.
“By joining forces, we are creating one of the strongest Texas banking franchises, supported by an exceptional deposit base and a shared commitment to relationship-driven community banking,” said Mr Franklin. “This combination enhances our ability to serve customers with greater scale, expanded capabilities, and the financial strength needed to meet the evolving needs of a growing Texas economy. I am incredibly proud of what our team has built, and I am excited about the opportunities this merger creates for our customers, employees, and communities. Together with Prosperity, we look forward to building an even more competitive and resilient financial institution for the future.”
Prosperity is a Houston-based regional financial holding company with $38.463bn in assets as of 31 December 2025, providing personal and commercial banking services, investments and digital banking solutions to consumers and businesses across Texas and Oklahoma. The company was founded in 1983 and operates 301 full-service branches in key Texas markets and in Oklahoma.
Stellar, which operates 52 banking offices in the greater Houston, Beaumont and Dallas markets, reported $10.8bn in assets at year-end 2025.
News: Prosperity Bancshares to buy Stellar Bancorp in $2 billion deal