PROSPERITY BANCSHARES AND STELLAR BANCORP ANNOUNCE RECEIPT OF REGULATORY APPROVALS FOR PROSPERITY'S PENDING ACQUISITION OF STELLAR

Prosperity Bancshares, Inc. has received all necessary regulatory approvals to proceed with its acquisition of Stellar Bancorp, Inc. The deal, valued at an undisclosed amount, marks a significant step forward for Prosperity as it seeks to expand its footprint in the regional banking sector. The approvals were granted by the Federal Reserve Bank of Dallas, the Federal Deposit Insurance Corporation (FDIC), and the Texas Department of Banking. A special meeting of Stellar shareholders is scheduled for May 27, 2026, to consider the merger, which is expected to be completed on or about July 1, 2026, pending shareholder approval and the satisfaction of customary closing conditions.

Prosperity Bancshares, headquartered in Houston, Texas, is a regional financial holding company with a robust portfolio of personal banking services and investments. As of December 31, 2025, the company reported assets totaling approximately $38.463 billion, operating 312 full-service banking locations across Texas and Oklahoma. Prosperity's strategy focuses on community banking, providing tailored financial solutions to meet the needs of consumers and businesses. Its offerings include traditional deposit and loan products, digital banking solutions, and wealth management services.

Stellar Bancorp, also based in Houston, operates through its principal banking subsidiary, Stellar Bank, which provides a range of commercial banking services primarily to small- and medium-sized businesses as well as individual customers. The merger with Prosperity is expected to enhance Stellar's service offerings and expand its reach in the Texas market, particularly in urban areas like Houston and Dallas. The integration of Stellar's operations into Prosperity's established framework is anticipated to create synergies that will benefit both companies' customer bases.

The regulatory approvals signify a positive outlook for consolidation within the banking sector, particularly among regional players. As financial institutions navigate a competitive landscape characterized by evolving consumer preferences and technological advancements, mergers and acquisitions are becoming increasingly common as a strategy for growth and resilience. This transaction highlights the ongoing trend of consolidation in the banking industry, driven by the need for scale and enhanced service capabilities.

Overall, the successful completion of this merger could have broader implications for the regional banking landscape in Texas. As Prosperity Bancshares integrates Stellar Bancorp, it may set a precedent for future mergers in the sector, encouraging other banks to pursue similar growth strategies. The transaction is expected to strengthen Prosperity’s market position and could lead to increased competition among regional banks, ultimately benefiting consumers through improved services and product offerings.