Prosperity Bancshares, Inc. (NYSE:PB) and Stellar Bancorp, Inc. (NYSE:STEL) shares are moving in opposite directions after announcing respective earnings releases and merger deals.
Merger Deal
As per the agreement, Prosperity will pay 0.3803 shares of its common stock plus $11.36 in cash for each share of Stellar common stock.
Based on Prosperity's closing price of $72.90 on January 27, 2026, the transaction is valued at approximately $2.002 billion.
The merger has received unanimous approval from the Boards of Directors of both companies.
The deal is expected to close in the second quarter of 2026, pending regulatory approvals and customary closing conditions.
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity stated, ”The combination of our companies will create the second largest bank by deposits headquartered in Texas with over 330 banking centers. Together, our increased scale better positions us to invest in future opportunities and serve our customers.”
”Stellar and its predecessors have been serving the Houston and Beaumont, Texas areas for many years. This is a rare opportunity to significantly enhance our presence in the Houston area, a market with a diverse economy that is continually attracting investment and has a growing population.”
Mixed Prosperity Bancshares & Stellar Bank Earnings
In a separate release, Prosperity Bancshares reported quarterly earnings of $1.46 per share, slightly above the analyst consensus of $1.45, and revenue of $317.7 million came just below the consensus estimate of $318.5 million.
Meanwhile, Stellar Bancorp reported quarterly earnings of 51 cents per share, in line with consensus, and revenue totaled $108.9 million, surpassing the consensus estimate of $107.6 million.
As of December 31, Stellar Bancorp’s cash and cash equivalents stood at $419.5 million, while Prosperity Bancshares’ cash and due from banks came in at $1.75 billion.
Price Action: Prosperity Bancshares shares were down 9.03% at $66.31 and Stellar Bancorp shares were up 11.03% at $36.45 at the time of publication on Wednesday, according to Benzinga Pro data.
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