Prosperity Bancshares will acquire Stellar Bancorp in an all-stock-and-cash transaction valuing the deal at approximately $2.002 billion. For each Stellar share, Prosperity will issue 0.3803 of its common shares plus $11.36 in cash. The boards of both institutions have unanimously approved the agreement, which is expected to close in the second quarter of 2026, subject to regulatory approval and customary closing conditions. Upon completion, the combined franchise will operate more than 330 banking centers, making it the second largest bank by deposits headquartered in Texas.

In the quarter ended December 31, 2025, Stellar delivered earnings per share of $0.51, matching consensus forecasts, while total revenue of $108.9 million exceeded the Wall Street estimate of $107.6 million. At quarter end, the company held $419.5 million in cash and cash equivalents. Stellar’s loan portfolio growth and deposit trends contributed to a net interest margin that held steady, supporting its ability to generate fee income despite a competitive regional banking environment.

Following the merger announcement and earnings release, Stellar Bancorp shares surged by 11.03%. Investors cited the enhanced scale in the fast-growing Houston–Beaumont corridor and the anticipated cost synergies with Prosperity as primary drivers of the rally. Analysts note that the expanded footprint and diversified deposit base could improve Stellar’s funding costs and support future loan growth in energy, healthcare, and commercial real estate sectors.