Prosperity Bancshares and Stellar Bancorp Merger Announcement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy STEL?
Source: Benzinga
- Merger Deal Details: Prosperity Bancshares will acquire Stellar Bancorp for 0.3803 shares of its common stock plus $11.36 in cash per share, valuing the transaction at approximately $2.002 billion, expected to close in Q2 2026, indicating a strategic consolidation to enhance market competitiveness.
- Unanimous Board Approval: The boards of both companies have unanimously approved the merger, reflecting a strong strategic alignment that positions them to become the second-largest bank by deposits in Texas, enhancing their future investment capabilities.
- Earnings Performance: Prosperity Bancshares reported earnings of $1.46 per share, slightly above the $1.45 consensus, although revenue of $317.7 million fell short of the $318.5 million estimate, while Stellar Bancorp's earnings of $0.51 per share met expectations, with revenue of $108.9 million exceeding the $107.6 million forecast, showcasing differing financial performances.
- Stock Price Movements: At the time of publication, Prosperity Bancshares shares fell 9.03% to $66.31, while Stellar Bancorp shares rose 11.03% to $36.45, reflecting the market's varied reactions to the merger announcement.
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Analyst Views on STEL
Wall Street analysts forecast STEL stock price to fall
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 39.180
Low
32.00
Averages
32.50
High
33.00
Current: 39.180
Low
32.00
Averages
32.50
High
33.00
About STEL
Stellar Bancorp, Inc. is a bank holding company. Through its wholly owned subsidiary, Stellar Bank (the Bank), the Company provides a diversified range of commercial banking services primarily to small-to-medium-sized businesses, professionals and individual customers within its markets. The Company offers a range of commercial and retail lending services, including commercial loans, loans to small businesses guaranteed by the small business administration (the SBA), mortgage loans, home equity loans, personal loans and automobile loans, among others. The types of deposit accounts that the Company offers are typical of most commercial banks and consist of checking accounts, commercial accounts, money market accounts, savings accounts and other time deposits of various types and terms. The Company operates over 54 full-service banking centers, with 37 banking centers in the Houston region, 16 banking centers in the Beaumont region and one banking center in Dallas, Texas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Merger Transaction: Devon Energy Corporation (NYSE: DVN) is merging with Coterra Energy Inc., resulting in Devon shareholders owning approximately 54% of the combined entity, with Halper Sadeh LLC potentially seeking increased compensation for shareholders.
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- Merger Details: Devon Energy Corporation (NYSE: DVN) is merging with Coterra Energy Inc., resulting in Devon shareholders owning approximately 54% of the combined entity, potentially affecting shareholder decision-making.
- Shareholder Rights Protection: Halper Sadeh LLC encourages shareholders to consult about their rights and options at no cost, highlighting the firm's commitment to protecting shareholder interests.
- Legal Service Commitment: The law firm operates on a contingent fee basis, ensuring shareholders do not incur upfront legal costs, thereby enhancing legal protections for investors.
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- Shareholder Rights Protection: The firm encourages Stellar Bancorp, Inc. shareholders to pay attention to its sale to Prosperity Bancshares, Inc., which includes 0.3803 shares of Prosperity stock and $11.36 in cash per share of Stellar common stock, potentially affecting financial interests.
- Legal Consultation Services: Halper Sadeh LLC offers no-cost legal consultations to help shareholders understand their rights and options, ensuring that shareholder interests are protected during the merger process, reflecting a commitment to investor rights.
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- Shareholder Rights Protection: The law firm encourages shareholders to reach out to discuss their rights and options, promising to handle matters on a contingent fee basis, aiming to provide legal support and potential compensation for affected shareholders.
- Other Merger Cases: The investigation also includes the sale of Stellar Bancorp, Inc. to Prosperity Bancshares, Inc., where shareholders will receive 0.3803 shares of Prosperity common stock and $11.36 in cash per share, with terms that may limit superior competing offers.
- Potential Legal Actions: Halper Sadeh LLC may seek increased consideration, additional disclosures, or other relief on behalf of shareholders, demonstrating a commitment to protecting shareholder interests and ongoing corporate governance oversight.
See More
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- Community West Merger: In the merger between Community West Bancshares and United Security Bancshares, United Security shareholders are expected to receive 0.4520 shares of Community West common stock for each share they hold, indicating an increase in shareholder value through the merger.
- Stellar Bancorp Sale: In the transaction involving Stellar Bancorp and Prosperity Bancshares, Stellar shareholders are expected to receive 0.3803 shares of Prosperity common stock and $11.36 in cash per share, further enhancing the financial benefits for shareholders.
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