Prosperity Bancshares Announces Merger Agreement With Stellar Bancorp

Prosperity Bancshares ( (PB) ) has issued an update.

On January 27, 2026, Prosperity Bancshares, Inc. entered into a definitive Agreement and Plan of Merger to acquire Stellar Bancorp, Inc., under which Stellar will merge into Prosperity, followed by the merger of Stellar Bank into Prosperity Bank, with Prosperity and Prosperity Bank remaining as the surviving entities. Under the terms of the all-stock-and-cash transaction, each outstanding share of Stellar common stock will be converted at closing into 0.3803 shares of Prosperity common stock plus $11.36 in cash, with associated treatment for Stellar stock options, restricted stock and performance unit awards, and the combined company’s governance will expand to include two Stellar-appointed directors on both the Prosperity Bancshares and Prosperity Bank boards. The deal, unanimously approved by both companies’ boards and supported by voting agreements from Stellar directors holding about 8.8% of Stellar’s shares, is subject to customary shareholder, regulatory and listing approvals, tax opinions and closing conditions, includes a $78 million termination fee payable by Stellar under specified circumstances, and is reinforced by post-closing director support agreements that restrict certain competitive and solicitation activities for two years, underscoring Prosperity’s strategic move to consolidate its regional banking footprint and integrate Stellar’s operations and customer base.

The most recent analyst rating on (PB) stock is a Hold with a $74.00 price target. To see the full list of analyst forecasts on Prosperity Bancshares stock, see the PB Stock Forecast page.

Spark’s Take on PB Stock

According to Spark, TipRanks’ AI Analyst, PB is a Outperform.

The score is driven mainly by solid financial strength and profitability with moderate leverage, supported by constructive technical trend signals and attractive valuation (reasonable P/E and solid dividend). The earnings-call outlook is favorable on NIM improvement and M&A-driven growth, but credit metrics (rising NPAs) and integration/one-time expense headwinds keep the score from being higher.

To see Spark’s full report on PB stock, click here.

More about Prosperity Bancshares

Prosperity Bancshares, Inc. is a Texas-based financial services holding company whose primary business is conducted through its wholly owned subsidiary, Prosperity Bank. The company operates in commercial and retail banking, offering a range of deposit, lending and related financial services to consumers and businesses, with a market focus on Texas and surrounding regions.

Average Trading Volume: 969,610

Technical Sentiment Signal: Strong Buy

Current Market Cap: $6.92B

For a thorough assessment of PB stock, go to TipRanks’ Stock Analysis page.