Prosperity Bancshares to acquire Stellar Bancorp in $2B deal

The merger will create the second-largest Texas-based bank with over $54 billion in assets.

Jan. 29, 2026 at 5:47am

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Texas-based Prosperity Bancshares has agreed to acquire Stellar Bancorp and its subsidiary Stellar Bank in a deal valued at around $2 billion. Under the terms, Prosperity will offer 0.3803 shares of its common stock and $11.36 in cash for each Stellar share. The merger will create the second-largest Texas-based bank with approximately $54 billion in assets.

Why it matters

The acquisition expands Prosperity Bancshares' footprint in its home market of Texas, particularly in the greater Houston and Beaumont areas where Stellar Bank currently operates 52 branches. The combined entity will have increased scale and resources to better serve customers and invest in future opportunities.

The details

As of December 31, 2025, Stellar reported consolidated assets of $10.81 billion, loans of $7.3 billion, and deposits of $9.02 billion. The merger is expected to close in the second quarter of 2026, subject to regulatory approval and Stellar shareholder approval. Leadership changes include Stellar CEO Robert R. Franklin, Jr. joining Prosperity Bank as vice chairman, and Stellar president Ramon Vitulli becoming Houston area chairman at Prosperity Bank.

  • The deal was announced on January 29, 2026.
  • The merger is expected to close in the second quarter of 2026.

The players

Prosperity Bancshares

A Texas-based bank holding company and the parent of Prosperity Bank.

Stellar Bancorp

A Texas-based bank holding company and the parent of Stellar Bank, which operates 52 branches in the greater Houston and Beaumont areas.

David Zalman

The senior chairman and CEO of Prosperity Bancshares.

Robert R. Franklin, Jr.

The CEO and executive chairman of Stellar Bank, who will join Prosperity Bank as vice chairman.

Ramon Vitulli

The president and CEO of Stellar Bank, who will become the Houston area chairman at Prosperity Bank.

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What they’re saying

“The combination of our companies will create the second largest bank by deposits headquartered in Texas with over 330 banking centres. Together, our increased scale better positions us to invest in future opportunities and serve our customers.”

— David Zalman, Senior chairman and CEO, Prosperity Bancshares (retailbankerinternational.com)

“By joining forces, we are creating one of the strongest Texas banking franchises, supported by an exceptional deposit base and a shared commitment to relationship-driven community banking. This combination enhances our ability to serve customers with greater scale, expanded capabilities, and the financial strength needed to meet the evolving needs of a growing Texas economy.”

— Robert R. Franklin, Jr., CEO and executive chairman, Stellar Bank (retailbankerinternational.com)

What’s next

The merger is expected to close in the second quarter of 2026, subject to regulatory approval and Stellar shareholder approval.

The takeaway

This acquisition strengthens Prosperity Bancshares' position as a leading Texas-based bank, providing greater scale, resources, and capabilities to better serve customers in the state's growing economy.