PROSPERITY BANCSHARES, INC.® COMPLETES MERGER WITH SOUTHWEST BANCSHARES, INC.
Rhea-AI Summary
Prosperity Bancshares (NYSE: PB) completed the merger with Southwest Bancshares effective February 1, 2026. Under the agreement, Prosperity issued 4,095,397 shares of Prosperity common stock to former Southwest shareholders.
Texas Partners Bank, with 11 banking offices in San Antonio, Austin and the Hill Country, will operate under its existing name until operational integration scheduled for November 2026. Several Texas Partners and Southwest leaders will join Prosperity Bank leadership and its board.
Positive
- Merger effective Feb 1, 2026
- Issued 4,095,397 Prosperity shares to Southwest holders
- Adds 11 banking offices in San Antonio, Austin and Hill Country
- Texas Partners leaders to join Prosperity management and board
Negative
- Operational integration delayed until November 2026, extending transition period
- Dual-brand operations continue until integration, possibly creating temporary customer complexity
Key Figures
Market Reality Check
Peers on Argus
Regional bank peers show mixed moves, with names like FNB (+1.94%) and OZK (+2.37%) up while CADE is down (-0.71%). With no peers in the momentum scanner and PB up 0.85%, the action appears stock-specific rather than a sector-wide rotation.
Previous Acquisition Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 22 | Shareholder approval | Positive | -3.4% | Southwest shareholders approved acquisition and all regulatory approvals were obtained. |
| Jan 02 | Merger completion | Positive | +0.9% | Completion of American Bank merger and issuance of new PB shares. |
| Nov 04 | Shareholder approval | Positive | +0.5% | American Bank shareholders approved acquisition after all regulatory clearances. |
| Oct 01 | Acquisition announcement | Positive | +0.9% | Announcement of definitive agreement to acquire Southwest/Texas Partners Bank. |
| Jul 18 | Acquisition announcement | Positive | -0.2% | Stock-for-stock deal to acquire American Bank Holding Corporation. |
Acquisition-related headlines for PB have usually been received modestly, with three prior deals prompting small positive moves and two seeing mild declines, suggesting mixed but generally constructive reactions to M&A activity.
Over the past several months, Prosperity Bancshares has pursued an active acquisition strategy, including definitive agreements and completions for American Bank and Southwest Bancshares. Prior acquisition milestones on Jul 18, 2025, Oct 1, 2025, Nov 4, 2025, Jan 2, 2026 and Jan 22, 2026 produced mostly small single-day moves (both up and down), indicating that investors have treated these transactions as incremental strategic steps rather than dramatic catalysts.
Historical Comparison
In the past year, PB issued 5 acquisition-related updates, with an average 24-hour move of 1.19%, typically modest in magnitude around deal milestones.
Recent acquisition news shows a progression from initial merger agreements through shareholder and regulatory approvals to final closings for both American Bank and Southwest Bancshares.
Market Pulse Summary
This announcement confirms completion of the Southwest Bancshares and Texas Partners Bank mergers, effective February 1, 2026, with 4,095,397 PB shares issued and 11 Texas Partners offices to be integrated by November 2026. It extends a pattern of acquisitions alongside the American Bank and Stellar Bancorp deals. Investors may track integration progress, leadership transitions, and how the expanded Central Texas footprint contributes to future earnings and efficiency metrics.
AI-generated analysis. Not financial advice.
Under the terms of the merger agreement between Prosperity and Southwest, Prosperity issued 4,095,397 shares of Prosperity common stock to the former shareholders and award holders of Southwest.
Brent Given, Texas Partners Interim Chairman, President and Chief Executive Officer, will join Prosperity Bank as San Antonio Area Chairman, and Tom Moreno, Texas Partners Chief Operating Officer, will have a senior management position in Prosperity Bank's operations. Additional members of Texas Partners management will maintain leadership roles in the combined organization. In addition, Gene Dawson, Jr., Interim Chairman, President and Chief Executive Officer of Southwest, has joined the Board of Directors of Prosperity Bank.
Texas Partners operates eleven (11) banking offices in
About Prosperity Bancshares, Inc. ®
As of December 31, 2025, Prosperity Bancshares, Inc.® is a
As of January 30, 2026, Prosperity operates 301 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 Bancshares (PB) complete the Southwest Bancshares merger?
How many Prosperity (PB) shares were issued to Southwest shareholders?
What happened to Texas Partners Bank branches after the Prosperity (PB) merger?
Will Texas Partners management join Prosperity Bank after the PB merger?
How does the Prosperity (PB) merger affect customers in San Antonio and Austin?
