SOUTHWEST BANCSHARES, INC. SHAREHOLDERS APPROVE ACQUISITION BY PROSPERITY BANCSHARES, INC.®
Rhea-AI Summary
Prosperity Bancshares (NYSE: PB) and Southwest Bancshares announced that Southwest shareholders approved the proposed merger of Southwest into Prosperity, with Prosperity as the surviving corporation and a subsequent merger of Texas Partners into Prosperity Bank.
The Board of Governors of the Federal Reserve, the FDIC and the Texas Department of Banking have each approved the transaction. All required regulatory and shareholder approvals have been received and the transaction is expected to close on February 1, 2026, subject to satisfaction or waiver of remaining customary closing conditions in the merger agreement.
Positive
- Southwest shareholders approved the merger
- Regulatory approvals received from the Federal Reserve, FDIC, and Texas Department of Banking
- Transaction expected to close on February 1, 2026
Negative
- Completion remains subject to satisfaction or waiver of remaining customary closing conditions
Key Figures
Market Reality Check
Peers on Argus
PB slipped 0.21% while peers were mixed: FNB up 1.01%, GBCI up 0.08%, OZK down 0.65%, BOKF down 0.99%, CADE down 3.79%, pointing to stock-specific trading around this acquisition update.
Previous Acquisition Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 02 | Merger completion | Positive | +0.9% | Completion of American Bank Holding merger effective January 1, 2026. |
| Nov 04 | Shareholder approval | Positive | +0.5% | American Bank shareholders approve merger; all regulatory approvals received. |
| Oct 01 | Acquisition announcement | Positive | +0.9% | Definitive agreement to acquire Southwest Bancshares and Texas Partners Bank. |
| Jul 18 | Acquisition announcement | Positive | -0.2% | Stock-for-stock merger agreement with American Bank Holding Corporation. |
Acquisition-related announcements for PB have typically led to modestly positive one-day moves, averaging about 0.63%, with only one recent acquisition headline showing a small negative reaction.
Over the last six months, Prosperity Bancshares has repeatedly used acquisitions to expand its Texas footprint. On Jul 18, 2025, it announced a merger with American Bank Holding, followed by American shareholder approval on Nov 4, 2025 and final completion effective Jan 1, 2026. On Oct 1, 2025, PB agreed to acquire Southwest Bancshares, adding Texas Partners Bank’s Central Texas franchise. These acquisition updates have generally produced modestly positive single-day moves around 0.63% on average.
Historical Comparison
In the past acquisition headlines, PB’s stock moved an average of 0.63%. Today’s shareholder-approval-and-closing update for Southwest Bancshares is consistent with this pattern of modest reactions to M&A milestones.
Acquisition activity has followed a clear path: initial announcements for American Bank and Southwest Bancshares, subsequent shareholder and regulatory approvals, and then final closing of the American Bank deal effective <b>Jan 1, 2026</b>, with the Southwest transaction now moving toward its own closing milestone.
Market Pulse Summary
This announcement confirms that all regulatory and shareholder approvals for Prosperity Bancshares’ acquisition of Southwest Bancshares have been secured, with closing expected on February 1, 2026. It continues a pattern of M&A-driven growth alongside earlier American Bank transactions that historically saw modest average moves of about 0.63%. Investors may focus on closing execution, integration progress, and future disclosures on how the combined franchise affects balance sheet composition and regional positioning.
Key Terms
board of governors of the federal reserve system regulatory
federal deposit insurance corporation regulatory
texas department of banking regulatory
AI-generated analysis. Not financial advice.
All required regulatory and shareholder approvals to complete the transaction have now been received and the transaction is expected to be completed on February 1, 2026, subject to the satisfaction or waiver of the remaining customary closing conditions set forth in the merger agreement between Prosperity and Southwest (the "Merger Agreement").
About Prosperity Bancshares, Inc. ®
As of September 30, 2025, Prosperity Bancshares, Inc.® is a
Prosperity currently operates 301 full-service banking locations: 62 in the
About Southwest Bancshares, Inc.
Founded in
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. Forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "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 and its subsidiaries. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity's control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. 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 Southwest and Texas Partners; 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 of a failure of the closing conditions in the Merger Agreement to be satisfied; any unexpected delay in completing the transactions; the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement; the possibility that credit quality could deteriorate; 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 the transactions contemplated by the Merger Agreement, are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies 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; and economic conditions, including currency rate, interest rate and commodity price fluctuations. 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 at no charge from http://www.prosperitybankusa.com.
For more information contact:
Cullen Zalman
Executive Vice President – Banking and Corporate Activities
281.269.7199
cullen.zalman@prosperitybankusa.com
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SOURCE Prosperity Bancshares, Inc.
FAQ
What did Prosperity Bancshares (PB) and Southwest Bancshares announce on January 22, 2026?
Has the transaction between Prosperity (PB) and Southwest received regulatory approval?
When is the Prosperity and Southwest merger expected to close?
Does the Prosperity–Southwest transaction still have any conditions before closing?
Will Prosperity remain as the surviving company after the merger with Southwest (PB)?
