PROSPERITY BANCSHARES, INC.® COMPLETES MERGER WITH AMERICAN BANK HOLDING CORPORATION
Rhea-AI Summary
Prosperity Bancshares (NYSE: PB) completed the merger of American Bank Holding Corporation into Prosperity, effective January 1, 2026. Under the merger agreement, Prosperity issued 4,439,981 shares of common stock to former shareholders and award holders of American.
American Bank, headquartered in Corpus Christi, operated 18 banking offices and 2 loan production offices in South and Central Texas including San Antonio, Austin, Victoria, Port Aransas, Rockport and a Houston loan production office. Operational integration is scheduled for September 2026, after which American Bank customers may use Prosperity Bank full-service centers.
Several American executives joined Prosperity leadership: Stephen Raffaele as South Texas and San Antonio Area Chairman, Ben Wallace as South Texas Senior Chairman, and Raffaele plus Patt Hawn Wallace joined the board of Prosperity Bank. Additional American Bank managers will retain leadership roles.
Positive
- Adds 18 banking offices and 2 loan production offices in South and Central Texas
- Issued 4,439,981 shares to American shareholders under the merger
- Operational integration scheduled for September 2026 with branch access expansion
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
Peers showed mixed moves, with FNB up 0.23%, GBCI up 1.41%, OZK up 1.93%, CADE up 0.58%, and BOKF down 0.23%, suggesting PB’s -1.16% move was stock‑specific.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 18 | Earnings call invite | Neutral | +0.0% | Scheduled Q4 2025 earnings conference call and reiterated asset base and footprint. |
| Nov 04 | Acquisition approval | Positive | +0.5% | American Bank shareholders approved merger after all regulatory approvals were secured. |
| Oct 29 | Quarterly earnings | Positive | +2.9% | Strong Q3 2025 results with higher net income, EPS growth, and dividend increase. |
| Oct 22 | Dividend increase | Positive | -0.9% | Raised quarterly dividend to <b>$0.60</b> per share, a <b>3.45%</b> increase. |
| Oct 01 | Acquisition announced | Positive | +0.9% | Announced stock‑for‑stock deal to acquire Southwest Bancshares and Texas Partners Bank. |
Acquisition and earnings news have generally been followed by modest positive price reactions, with occasional divergences on shareholder‑friendly actions like dividend increases.
Over the last several months, Prosperity Bancshares has combined solid fundamentals with active M&A. Q3 2025 earnings showed net income of $137.6 million and diluted EPS of $1.45, with nine‑month net income of $402.9 million and EPS of $4.23. The company raised its quarterly dividend to $0.60 per share and reported assets around $38.3–38.4 billion. Strategically, it announced acquisitions of Southwest Bancshares and American Bank, with American shareholders approving the deal and today’s news confirming closing of that merger.
Market Pulse Summary
This announcement confirms closing of Prosperity’s acquisition of American Bank Holding Corporation, effective January 1, 2026, with 4,439,981 new PB shares issued as consideration. The deal adds 18 banking offices and 2 loan production offices across key Texas markets, with operational integration targeted for September 2026. It continues a broader expansion strategy that also includes the pending Southwest Bancshares transaction. Investors may watch upcoming earnings and integration updates to assess cost, credit, and growth impacts.
Key Terms
loan production offices technical
AI-generated analysis. Not financial advice.
Under the terms of the merger agreement between Prosperity and American, Prosperity issued 4,439,981 shares of Prosperity common stock to the former shareholders and award holders of American.
Stephen Raffaele, former Director and President of American and CEO and former President of American Bank, has joined Prosperity Bank as
American Bank operated eighteen (18) banking offices and two (2) loan production offices in South and
About Prosperity Bancshares, Inc. ®
As of September 30, 2025, Prosperity Bancshares, Inc.® is a
As of September 30, 2025, Prosperity operated 283 full-service banking locations: 62 in the
Cautionary Notes on Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, oral or written forward-looking statements may also be included in information released to the public. Such forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "believe," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for loan losses, changes in deposits, borrowings and the investment securities portfolio, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, including the integration of American, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of each of the proposed transactions, and statements about the assumptions underlying any such statement. These forward‑looking statements are not guarantees of future performance and are based on expectations and assumptions Prosperity currently believes to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of Prosperity's control, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. These risks and uncertainties include, but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks, including American; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); the possibility that the anticipated benefits of an acquisition transaction, including American, are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of American or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; and weather. Prosperity disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. These and various other factors are discussed in Prosperity's Annual Report on Form 10-K for the year ended December 31, 2024, and other reports and statements Prosperity has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.
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SOURCE Prosperity Bancshares, Inc.
FAQ
When did Prosperity (PB) complete the merger with American Bank Holding Corporation?
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