Houston-based Prosperity Bancshares is acquiring Stellar Bancorp and its subsidiary, Stellar Bank, both of Houston, for $2 billion in cash and stock..The merger, which is expected to close in the second quarter of this year, is projected to create the second-largest bank by deposits headquartered in Texas, with more than 330 branches. Stellar Bank has 52 branches in Greater Houston, Beaumont and Dallas. Prosperity Bancshares is the parent company of $38.3 billion Prosperity Bank. As of Dec. 31, Stellar had $10.8 billion in consolidated assets, $7.3 billion in loans and $9 billion in deposits.“This is a rare opportunity to significantly enhance our presence in the Houston area,” said Prosperity Senior Chair and CEO David Zalman.Following the merger, Stellar Bancorp CEO and Executive Chair Robert Franklin Jr. will join Prosperity Bank as vice chair, while Ramon Vitulli, Stellar Bancorp president and Stellar Bank CEO, will become Houston area chair. New York City-based Keefe, Bruyette & Woods is financially advising Stellar Bancorp, while Norton Rose Fulbright US is legal counsel. Wachtell, Lipton, Rosen & Katz, New York City, is legal counsel to Prosperity Bancshares.
