Prosperity Bank continues its Texas tear

Acquisition Overview - Prosperity Bancshares will acquire Stellar Bank in a deal valued at approximately $2 billion, expected to close in Q2 2026 [1] - This acquisition marks Prosperity's third announced acquisition since July, and it is the largest to date [1] Previous Acquisitions - In July, Prosperity announced the acquisition of American Bank for $321.5 million, which closed on January 1, with conversion expected by September [2] - Prosperity also announced the acquisition of Southwest Bancshares for $268.9 million, expected to close on February 1 after gaining shareholder approval [2] Strategic Benefits - The acquisition of Stellar will add 52 locations in the greater Houston, Beaumont, and Dallas-Fort Worth areas, pushing Prosperity's total to over 330 locations [3][4] - This deal will bring Prosperity close to $50 billion in total assets, enhancing its market position [3] - Stellar Bank reported $10.8 billion in assets, $9 billion in deposits, and $7.3 billion in loans as of December 31 [3] Market Position - The combination will create the second-largest Texas-headquartered bank by deposits [4] - Prosperity's CEO highlighted the opportunity to enhance their presence in the Houston area, which has a diverse economy and growing population [4] Financial Terms - Stellar investors will receive $11.36 in cash and 0.3803 shares of Prosperity for each share of Stellar they own, based on Prosperity's closing stock price of $72.90 as of Tuesday [4] Leadership Changes - Bob Franklin, executive chair of Stellar Bank, will join Prosperity's holding company board and become vice chairman at the bank [5] Community Commitment - The merger aims to create a strong Texas banking franchise with a commitment to relationship-driven community banking, enhancing customer service capabilities [6]