Stellar Bancorp to be Acquired by Prosperity Bancshares in $2.002 Billion Merger
STEL sits 46% above its 52-week low of $24.125.
Summary
Stellar Bancorp, Inc. has entered into a definitive merger agreement to be acquired by Prosperity Bancshares, Inc. for approximately $2.002 billion in a cash and stock transaction.
Key Events · M&A and Partnerships · STEL
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Definitive Merger Agreement Signed
Stellar Bancorp, Inc. will be acquired by Prosperity Bancshares, Inc. in a definitive merger agreement.
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Transaction Valued at $2.002 Billion
The acquisition is valued at approximately $2.002 billion, based on Prosperity Bancshares' closing price of $72.90 on January 27, 2026.
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Cash and Stock Consideration
Stellar shareholders will receive 0.3803 shares of Prosperity Bancshares common stock and $11.36 in cash for each Stellar share.
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Strategic Expansion for Acquirer
The merger is expected to significantly increase Prosperity Bancshares' market share in Houston, boosting its deposit rank from 9th to 5th.
Analysis · STEL · Finance
This filing announces a definitive merger agreement for Stellar Bancorp, Inc. to be acquired by Prosperity Bancshares, Inc. The transaction, valued at approximately $2.002 billion, represents a significant premium and is a thesis-altering event for Stellar's shareholders. The acquisition will substantially expand Prosperity Bancshares' presence in the Houston market, making it the largest Texas-based bank in the region. This news comes as Stellar Bancorp's stock is trading near its 52-week high, indicating a strong valuation for the acquisition.
At the time of this filing, STEL was trading at $35.16 on NYSE in the Finance sector, with a market capitalization of approximately $1.7B. The 52-week trading range was $24.13 to $33.94. This filing was assessed with positive market sentiment and an importance score of 10 out of 10.