Prosperity Bancshares, Inc. completed a $321.5 million all‑equity acquisition of American Bank Holding Corporation and its subsidiary American Bank, N.A. on January 1 2026. The transaction closed with Prosperity issuing 4,439,981 shares of its common stock to former American shareholders and award holders, valuing the deal at roughly $72.40 per share based on Prosperity’s closing price on July 16 2025.
The merger adds 18 branch offices and two loan‑production centers across South and Central Texas, including Corpus Christi, San Antonio, Austin, Victoria, Port Aransas, Rockport, and Houston. The combined entity will operate under the American Bank name until September 2026, when customers will transition to Prosperity Bank’s full‑service centers. This phased approach is designed to preserve customer relationships while integrating systems and processes.
Strategically, the deal gives Prosperity a robust presence in markets where it previously had limited scale. The added deposits and loan book—American Bank reported $2.3 billion in deposits and $1.8 billion in loans as of March 31 2025—will accelerate deposit growth and broaden the loan portfolio. The acquisition also positions Prosperity to compete more effectively against larger regional banks in a high‑growth Texas market, leveraging its community‑banking philosophy and local decision‑making strength.
Financially, Prosperity was a $38.33 billion holding company with 283 full‑service locations as of September 30 2025. The transaction is expected to enhance earnings by adding incremental net interest income and fee revenue while generating cost synergies through branch consolidation and shared back‑office functions. Management anticipates that the merger will support the company’s next earnings guidance, which is scheduled for release on January 28 2026, by improving margin stability and providing a larger, more diversified asset base.
Prosperity has retained key American Bank executives, including the former CEO and several senior loan officers, to ensure continuity of service and preserve local expertise. The integration plan includes a detailed timeline for consolidating technology platforms, aligning product offerings, and aligning risk management practices, with a target of full operational integration by the end of 2026.
Overall, the merger represents a significant strategic expansion for Prosperity Bancshares, strengthening its competitive position in Texas, expanding its deposit and loan footprint, and creating a platform for future growth in a high‑growth regional market.
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