Monitor integration progress and cost savings realization over the next 12 months. The 71-day amendment with pro forma financials will provide clearer earnings impact. Watch for credit quality trends in Stellar's loan portfolio and any signs of deposit attrition.
Price Chart
Executive Summary
Prosperity Bancshares completed its acquisition of Stellar Bancorp on July 1, 2026, issuing approximately $590 million in cash and 19 million shares of common stock, and assuming about $2.17 billion in Federal Home Loan Bank obligations. The merger adds 52 banking offices in Texas and brings former Stellar CEO Robert Franklin as Vice Chairman with a $1.12 million base salary, $3 million signing bonus, and 25,000 restricted stock award. The close was expected and priced in, making this a routine event with integration risk ahead.
Key Facts
- Merger completed July 1, 2026; Stellar merged into Prosperity.
- Total consideration: ~$590 million cash + 19 million shares of Prosperity common stock.
- Prosperity assumed ~$2.17 billion in FHLB of Dallas obligations from Stellar.
- Board expanded to 16 directors; Robert R. Franklin Jr. and Joseph B. Swinbank appointed.
- Robert Franklin appointed Vice Chairman with 3-year employment agreement: $1,120,187 base salary, 175% bonus target, $3M signing bonus, and 25,000 restricted stock award vesting in 3 years.
- Stellar Bank branches will operate under Stellar name until operational integration in March 2027.
Financial Impact
Total deal value approximately $1.95 billion (26% of PB's $7.4B market cap); cash portion ~$590M; stock issuance of 19M shares; debt assumption of $2.17B increases leverage.
Risk Factors
- Integration risk: combining operations, systems, and cultures across 52 branches.
- Credit risk: Stellar's loan portfolio quality may differ from Prosperity's.
- Dilution: 19 million new shares (approx. 20% increase in shares outstanding) may pressure EPS in the near term.
- Leverage increase: $2.17B in assumed FHLB debt adds to interest expense.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-291486 |
| Document: d109409d8k.htm | 0001193125-26-291486 |
| Document: d109409dex991.htm | 0001193125-26-291486 |
| Document: 0001193125-26-291486-index-headers.html | 0001193125-26-291486 |
| Document: 0001193125-26-291486-index.html | 0001193125-26-291486 |
| Document: 0001193125-26-291486.txt | 0001193125-26-291486 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | Press Release | $68.12 | awaiting T+60 | — | $69.50 (+2.03%) |
Sep 30, 2026 26d ago | Press Release | $66.80 | awaiting T+60 | — | $69.50 (+4.04%) |
Jul 29, 2026 12w ago | 8-K | $74.23 $69.85 | ▼ −5.90% | ▼ −10.63% | $69.50 (−6.37%) |
Jul 1, 2026 16w ago | 8-K | $73.37 $69.91 | ▼ −4.72% | ▼ −8.68% | $69.50 (−5.27%) |
May 27, 2026 21w ago | Insider Cluster | $69.31 $72.77 | ▲ +4.99% | ▲ +3.26% | $69.50 (+0.27%) |
May 27, 2026 21w ago | Insider Cluster | $68.92 $72.58 | ▲ +5.31% | ▲ +3.43% | $69.50 (+0.84%) |
Apr 22, 2026 26w ago | 8-K | $69.78 $73.49 | ▲ +5.32% | ▲ +0.54% | $69.50 (−0.40%) |
Apr 22, 2026 26w ago | EFFECT | $69.78 $73.49 | ▲ +5.32% | ▲ +0.54% | $69.50 (−0.40%) |
US Market Status
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