Prosperity Bancshares and Stellar Bancorp announce merger

The $2 billion deal will expand Prosperity's footprint across Texas and Oklahoma.

Jan. 28, 2026 at 6:31am

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Prosperity Bancshares, Inc., a regional financial holding company, has announced plans to merge with Stellar Bancorp, Inc. in a deal valued at approximately $2.002 billion. The merger will allow Prosperity to expand its personal banking, investment, and commercial services across Texas and Oklahoma, where it currently operates around 288 full-service banking locations.

Why it matters

The merger represents further consolidation in the regional banking industry, as larger players seek to gain scale and expand their geographic reach. It also reflects the ongoing digital transformation of banking, as Prosperity looks to bolster its digital banking solutions and services for consumers and businesses.

The details

Under the terms of the agreement, Stellar Bancorp shareholders will receive 0.5 shares of Prosperity common stock for each share of Stellar Bancorp common stock. The transaction is expected to close in the second half of 2026, subject to regulatory approvals and other customary closing conditions.

  • The merger was announced on January 28, 2026.
  • The transaction is expected to close in the second half of 2026.

The players

Prosperity Bancshares, Inc.

A regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma, operating around 288 full-service banking locations.

Stellar Bancorp, Inc.

A financial services company that will be acquired by Prosperity Bancshares in the $2 billion merger.

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What’s next

The merger is subject to regulatory approvals and other customary closing conditions, and is expected to be completed in the second half of 2026.

The takeaway

The merger between Prosperity Bancshares and Stellar Bancorp reflects the ongoing consolidation in the regional banking industry, as institutions seek to gain scale and expand their geographic reach to better serve consumers and businesses in a rapidly evolving digital banking landscape.