Stellar Bancorp Completes Merger with Prosperity Bancshares, Delists Stock
Summary
Stellar Bancorp has completed its merger with Prosperity Bancshares, Inc., resulting in its delisting from the NYSE and the conversion of its shares into cash and Prosperity stock.
Key Events · M&A and Partnerships · STEL
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Merger Consummated
Stellar Bancorp officially merged with and into Prosperity Bancshares, Inc. on July 1, 2026, with Prosperity continuing as the surviving corporation.
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Stock Delisted
Stellar Common Stock was delisted from the NYSE and trading suspended prior to the opening of trading on July 1, 2026.
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Share Conversion Details
Each Stellar common stock share was converted into 0.3803 shares of Prosperity common stock and $11.36 in cash.
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Balance Sheet Repositioning
Stellar sold approximately $466.4 million of investment securities from its portfolio during the period ending June 30, 2026, as part of a pre-merger strategy.
Analysis · STEL · Finance
This 8-K announces the definitive completion of the merger between Stellar Bancorp and Prosperity Bancshares, Inc. Stellar Bancorp has ceased to exist as an independent entity, and its common stock has been delisted from the NYSE. This marks the final step in a previously announced strategic combination, fundamentally altering the investment thesis for former Stellar shareholders who now hold a combination of cash and Prosperity stock. The company also executed a significant balance sheet repositioning by selling $466.4 million in securities prior to the merger.
At the time of this filing, STEL was trading at $39.32 on NYSE in the Finance sector, with a market capitalization of approximately $2B. This filing was assessed with neutral market sentiment and an importance score of 10 out of 10.