Prosperity Bancshares to Acquire Stellar Bancorp for $2 Billion, Creating Texas's Second Largest Bank by Deposits

summarizeSummary

Prosperity Bancshares announced a definitive agreement to acquire Stellar Bancorp for approximately $2.002 billion, a move that will create the second-largest bank by deposits headquartered in Texas.

check_boxKey Events · M&A and Partnerships · PB

• Acquisition Agreement

  Prosperity Bancshares will acquire Stellar Bancorp, Inc. for approximately $2.002 billion in a cash and stock transaction, based on Prosperity's closing price of $72.90 on January 27, 2026.

• Strategic Expansion

  The merger will create the second-largest bank by deposits headquartered in Texas, significantly enhancing Prosperity's presence in the Houston and Beaumont markets with Stellar's $10.807 billion in assets.

• Financial Impact

  The transaction is projected to be 9.2% accretive to earnings per share by 2027, with a tangible book value dilution of 7.8% and an earnback period of approximately 4.5 years.

• Leadership Integration

  Key executives and directors from Stellar Bancorp will join Prosperity's leadership team and board, ensuring continuity and leveraging local expertise.

auto_awesomeAnalysis · PB · Finance

This acquisition significantly expands Prosperity Bancshares' footprint and market share, particularly in the key Houston area. The deal is expected to be accretive to earnings per share by 2027, although it will result in tangible book value dilution with a projected earnback period of approximately 4.5 years. The integration of Stellar's leadership and board members aims to ensure a smooth transition and leverage local expertise. This strategic move reinforces Prosperity's position as a dominant regional bank in Texas, following its recent acquisition completion on January 2, 2026.