Prosperity Bancshares (NYSE:PB) announced that it has received all necessary clearances to complete its $268.9 million acquisition of Southwest Bancshares, the parent company of Texas Partners Bank.
The deal, which received overwhelming support from Southwest shareholders, is scheduled to close on Feb. 1, 2026.
The transaction has already cleared the gauntlet of financial regulators, receiving formal approval from the Federal Reserve, the FDIC, and the Texas Department of Banking.
Upon closing, Southwest will merge into Prosperity, and its subsidiary, Texas Partners Bank, will be integrated into Prosperity Bank.
This follows closely on the heels of Prosperity’s acquisition of American Bank Holding Corp., which was finalized on Jan. 1, 2026.
The combined mergers catapult Prosperity’s presence in central and south Texas.
By absorbing Texas Partners Bank’s $2.4 billion in assets and 11 banking centers, Prosperity will double its branch density in the high-growth San Antonio and Austin corridors.
On a pro-forma basis, the consolidation is expected to create a regional powerhouse with approximately $43.4 billion in total assets and over 300 branches across Texas and Oklahoma.
Under the terms of the stock-for-stock agreement, Prosperity is issuing approximately 4.06 million shares of its common stock to Southwest shareholders.
Brent Given, the interim CEO of Texas Partners, will join Prosperity as San Antonio Area Chairman, while Southwest’s Gene Dawson Jr. will join the Prosperity Bank board of directors.
The Houston-based lender expects the transaction to be 2.5% accretive to earnings per share by 2027, with a tangible book value dilution of just 1.2%.