Financial Advisor
Southwest Bancshares, Inc.
M&A Advisory
Has Merged With
Transaction Details
On October 1, 2025, Prosperity Bancshares, Inc.® (NYSE: PB) (“Prosperity”), the parent company of Prosperity Bank®, and Southwest Bancshares, Inc. (“Southwest”), the parent holding company of Texas Partners Bank (“Texas Partners”), headquartered in San Antonio, Texas, jointly announced the signing of a definitive merger agreement whereby Prosperity will acquire Southwest and Texas Partners.
Under the terms and subject to the conditions of the definitive agreement, Prosperity will issue 4,062,520 shares of Prosperity common stock for all outstanding shares of Southwest common stock and restricted stock awards, subject to certain potential adjustments.
- Based on Prosperity’s closing price of $65.97 on September 29, 2025, the total consideration was valued at approximately $268.9 million.
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. In addition, upon completion of the merger, Gene Dawson, Jr., Interim Chairman, President and Chief Executive Officer of Southwest, will join the Board of Directors of Prosperity Bank.
The merger has been unanimously approved by the Boards of Directors of both companies and is expected to close during the first quarter of 2026. The transaction is subject to certain conditions, including approval by Southwest’s shareholders and customary regulatory approvals.
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Note: ROAA = Return on Average Assets, NPAs = Nonperforming Assets
Note: Prosperity branch count shown pro forma of its announced acquisition of American Bank Holding Corp.
1) Transaction multiples calculated based on aggregate values
2) Based on PB’s closing price of $65.97 as of September 29, 2025
3) Bank-level financial data shown as of and for the quarter ended June 30, 2025
4) Excludes one-time items
Source: Press release, Prosperity Investor Presentation, Regulatory filings, S&P Capital IQ Pro, FactSetThis material has been prepared solely for informational purposes as of its stated date. It is not a solicitation, recommendation or offer to buy or sell any security and does not provide information on which an investment decision to purchase or sell any securities could be based. It does not purport to be a complete description of the securities, markets or developments referred to in this material. All information and data included in this material has been sourced from company announcements and other sources cited in this material, but Stephens has not independently verified such information and does not guarantee that it is accurate or complete. No subsequent publication or distribution of this material shall mean or imply that any such information remains current at any time after the date of preparation of this material. Stephens does not undertake to advise you of any changes in any such information. Additional information is available upon request.
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