Prosperity Bancshares to Acquire Stellar Bancorp in Merger

An update from Stellar Bancorp ( (STEL) ) is now available.

On January 28, 2026, Prosperity Bancshares and Stellar Bancorp announced a definitive agreement, signed January 27, 2026, under which Prosperity will acquire Stellar and Stellar Bank in a stock-and-cash transaction valued at about $2.0 billion based on Prosperity’s prior-day closing share price, with Stellar shareholders to receive 0.3803 Prosperity shares plus cash per Stellar share. Stellar, which reported $10.8 billion in assets, $7.3 billion in loans and $9.0 billion in deposits as of December 31, 2025 and operates 52 branches in the Houston, Beaumont and Dallas markets, will be merged into Prosperity, followed by the merger of Stellar Bank into Prosperity Bank, creating what executives say will be the second-largest Texas-headquartered bank by deposits with more than 330 locations. The deal, unanimously approved by both boards and expected to close in the second quarter of 2026 subject to regulatory and Stellar shareholder approvals, significantly deepens Prosperity’s presence in the high-growth Houston area, brings over $10 billion in assets and a sizable deposit base, and folds Stellar’s leadership into key roles at Prosperity Bank and its board, positioning the combined institution as a larger, relationship-focused community banking franchise in a growing Texas economy while leaving execution, integration and regulatory risks to be managed post-closing.

The most recent analyst rating on (STEL) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Stellar Bancorp stock, see the STEL Stock Forecast page.

Spark’s Take on STEL Stock

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

Stellar Bancorp’s overall stock score is driven by its solid financial performance and positive technical indicators. The company’s strategic initiatives, such as the dividend increase and strong deposit growth, are positive, but challenges in revenue growth and increased expenses present near-term risks. The stock is reasonably valued, making it an attractive option for investors seeking stability and moderate growth potential.

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

More about Stellar Bancorp

Stellar Bancorp, Inc. is a Houston, Texas-based bank holding company whose principal subsidiary, Stellar Bank, offers a diversified range of commercial banking services, primarily targeting small- to medium-sized businesses and individual customers across Houston, Dallas, Beaumont and surrounding Texas communities. Prosperity Bancshares, Inc., also based in Houston, is a regional financial holding company with $38.463 billion in assets as of December 31, 2025, providing personal and commercial banking, mortgage, brokerage, trust and wealth management, and treasury management services through 301 full-service locations across Texas and Oklahoma, operating under a community banking model.

Average Trading Volume: 233,870

Technical Sentiment Signal: Buy

Current Market Cap: $1.67B

For an in-depth examination of STEL stock, go to TipRanks’ Overview page.