#United States #San Antonio #Prosperity Bancshares #Southwest Bancshares #Texas Partners Bank

Prosperity Bancshares to Acquire Southwest Bancshares in San Antonio

Houston and San Antonio, October 1, 2025 — Prosperity Bancshares, Inc.® (NYSE: PB), the parent company of Prosperity Bank®, is set to expand its operations through the acquisition of Southwest Bancshares, Inc. This merger marks a significant milestone for Prosperity as it aims to strengthen its foothold in the rapidly growing Central Texas market.

Under the terms of the merger agreement, Prosperity will acquire all outstanding shares of Southwest common stock and restricted stock awards, amounting to approximately $268.9 million based on a closing price of $65.97 per share as of September 29, 2025. The financial strength of Southwest, which reported $2.4 billion in total assets, aligns well with Prosperity's ambitions, promising a robust combination of resources and expertise.

Details of the Acquisition

The agreement will see Prosperity issuing 4,062,520 shares of its common stock to Southwest’s shareholders. Additionally, outstanding warrants and in-the-money stock options from Southwest will be converted into cash payments aligned with the merger valuation. This financial maneuver represents a significant step in enhancing Prosperity's banking services across Texas and Oklahoma.

Texas Partners Bank, a subsidiary of Southwest, operates 11 banking offices, including its primary location in San Antonio and branches in Austin and the picturesque Hill Country. The merger will allow customers of Texas Partners to access a broader range of banking facilities provided by Prosperity, tapping into a network that spans across major cities in Texas.

Leadership Transition

As the merger unfolds, key leaders from Southwest will transition into critical roles within Prosperity. Brent Given, Texas Partners' Interim Chairman and CEO, is set to become the Chairman for the San Antonio area at Prosperity Bank. Tom Moreno, the Chief Operating Officer of Texas Partners, will also join Prosperity's senior management team. Their leadership and local knowledge will serve as a crucial asset in integrating operations and serving the client base effectively.

David Zalman, Prosperity's Senior Chairman and CEO, expressed enthusiasm about the merger, stating, "We have wanted to expand our presence in the fast-growing and desirable San Antonio and Hill Country areas and Southwest's locations are an excellent fit." This sentiment highlights the importance Prosperity places on strategic geographic expansion.

Future Prospects

The merger has already received unanimous approval from both boards of directors and is projected to finalize in the first quarter of 2026, pending regulatory and shareholder approvals. The strategic acquisition not only promises enhanced banking services for local businesses and communities but also aims to create job security and growth opportunities for employees of the merged entities.

Brent Given remarked, "We are excited to join Prosperity Bank, a leading Texas-based financial institution, bringing together the strength and resources of a larger regional bank while maintaining the local decision-making and personalized service our clients know and trust."

Conclusion

The acquisition of Southwest Bancshares by Prosperity Bancshares is set to reshape the banking landscape in Central Texas, promoting a union that prioritizes community banking values, enhanced service customization, and growth. As both companies prepare for the integration phase, clients can anticipate improved product offerings and expanded access to financial resources.

For more updates on the merger and its implications for clients in Texas, keep an eye on communications from both Prosperity and Texas Partners Bank as they approach the anticipated closing of this transformative deal.