Prosperity Bancshares, Inc. has declared its acquisition of Stellar Bancorp, Inc. in a deal estimated at roughly $2.002 billion, according to an official statement.
Per the stipulations of the amalgamation accord, Prosperity will dispense 0.3803 of a Prosperity ordinary share and $11.36 in cash for each Stellar share that is outstanding. This value is determined using Prosperity's closing stock value of $72.90 as of January 27, 2026.
Stellar manages 52 banking locations situated in Houston, Beaumont, and Dallas, Texas. The company’s financials, as of December 31, 2025, show total assets amounting to $10.807 billion, a loan total of $7.301 billion, and total deposits of $9.021 billion.
Robert R. Franklin Jr., Stellar’s CEO, is slated to become vice chairman at Prosperity Bank. Ramon Vitulli, Stellar’s President, will assume the role of head of the Houston territory at Prosperity Bank. Franklin, along with one more Stellar board member, will be appointed to Prosperity's board, while Vitulli and Pat Parsons, a Stellar Bank director, will gain spots on Prosperity Bank's board.
The resulting combined organization will maintain operations at over 330 banking sites across Texas and Oklahoma. Prosperity currently possesses 301 full-service locations and reported total assets valued at $38.463 billion as of December 31, 2025.
The merger has secured the full support of both companies’ director boards. The finalized transaction is anticipated to occur in the second fiscal quarter of 2026, conditional on obtaining necessary regulatory clearances, approval from Stellar shareholders, and fulfillment of further common closing requirements.
Stellar is receiving counsel from Keefe, Bruyette & Woods acting as financial consultant and Norton Rose Fulbright US, LLP functioning as legal advisor. Prosperity is being guided by Wachtell, Lipton, Rosen & Katz serving as legal counsel.
Source: Reuters