On January 28, Prosperity Bancshares Inc., the parent company of El Campo-based Prosperity Bank, and Stellar Bancorp Inc., the parent holding company of Houston-based Stellar Bank, announced the signing of a definitive merger agreement whereby Prosperity will acquire Stellar and Stellar Bank. Established in 2007, Stellar Bank operates 52 banking offices in greater Houston, Beaumont and surrounding areas, as well as Dallas. As of December 31, 2025, Stellar reported total assets of $10.807 billion, total loans of $7.301 billion and total deposits of $9.021 billion. The merger is expected to close during the second quarter of 2026.
Robert R. Franklin Jr., Stellar’s CEO and Stellar Bank’s executive chairman, will join Prosperity Bank as vice chairman, and Ramon Vitulli, Stellar’s president and Stellar Bank’s CEO, will join Prosperity Bank as Houston area chairman. Additional members of Stellar Bank management will maintain leadership roles in the combined organization. In addition, Franklin and one additional member of the Stellar board of directors will join the board of Prosperity. Vitulli and Pat Parsons, a director of Stellar Bank, will join the board of Prosperity Bank.
“The combination of our companies will create the second-largest bank by deposits headquartered in Texas, with more than 330 banking centers,” notes David Zalman, senior chairman and CEO of Prosperity. “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 areas for many years. This is a rare opportunity to enhance our presence significantly in the Houston area.”
“By joining forces, we are creating one of the strongest Texas banking franchises, supported by an exceptional deposit base and a shared commitment to relationship‑driven community banking,” adds Stellar CEO Franklin. “This combination enhances our ability to serve customers with greater scale, expanded capabilities and the financial strength needed to meet the evolving needs of a growing Texas economy.”
Stellar is being advised by Keefe, Bruyette & Woods, a Stifel Co., as financial advisor, and Norton Rose Fulbright US LLP as legal counsel. Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Prosperity.
Established in 1983, Prosperity Bank has more than 300 banking offices in Texas and Oklahoma, including 62 in the Houston area, which includes The Woodlands.
