Prosperity Bancshares to Acquire American Bank in $321.5M Deal

Prosperity Bancshares to acquire American Bank Holding in a $321.5 million deal. The merger, set to finalize in late 2025 or early 2026, will see Prosperity Bancshares issue 4.44 million shares to American Bank shareholders. The acquisition signifies a significant expansion effort for Prosperity Bancshares within the banking sector.

Houston-based Prosperity Bancshares has agreed to acquire American Bank Holding Corporation in an all-stock deal valued at $321.5 million, the companies announced on July 18, 2025 [1]. The transaction, which is expected to close in the fourth quarter of 2025 or the first quarter of 2026, will see Prosperity Bancshares issue 4.44 million shares to American Bank shareholders [2].

The acquisition will significantly expand Prosperity Bancshares' footprint within the banking sector. American Bank operates 18 banking offices and 2 loan production offices in South and Central Texas, including Corpus Christi, San Antonio, Austin, Victoria, and the greater Corpus Christi area, as well as a loan production office in Houston [3]. The acquisition will add these assets to Prosperity Bancshares' existing $39 billion in assets, further strengthening its presence in the region.

The deal has been unanimously approved by the boards of directors of both companies and is subject to customary regulatory approvals and approval of the offer by target shareholders [2]. Stephen Raffaele, American Bank's CEO and President, will join Prosperity Bank as South Texas and San Antonio Area Chairman, while Ben Wallace, American Bank Chairman, will join Prosperity Bank as South Texas Senior Chairman [3].

This acquisition is part of Prosperity Bancshares' growth strategy through mergers and acquisitions, which has been a key part of its business for decades. The company's last proposed acquisitions involved two Texas banks – Midland-based FirstCapital Bank of Texas and Lubbock-based Lone Star State Bank of West Texas, the latter of which was finalized in April 2024 [1].

The acquisition of American Bank Holding Corporation will boost Prosperity Bancshares' operations in South Texas and its neighboring areas while scaling up its presence in Central Texas, including San Antonio, a highly desirable, high growth area [1]. The customers of American Bank will be able to use any of Prosperity Bancshares' locations across Texas and Oklahoma after operational integration.

References:
[1] https://www.bankingdive.com/news/texas-wisconsin-banks-agree-to-buy-in-state-peers-prosperity-american-bank-first-centre-1/753468/
[2] https://www.marketscreener.com/news/prosperity-bancshares-inc-nyse-pb-entered-into-a-definitive-merger-agreement-to-acquire-96-stak-ce7c5cded180fe22
[3] https://www.prnewswire.com/news-releases/prosperity-bancshares-inc-and-american-bank-holding-corporation-in-corpus-christi-texas-announce-merger-302508465.html