In a bold move that shakes the banking terrain of the Lone Star State, Prosperity Bancshares Inc. announced Friday its plan to acquire American Bank in an all-stock transaction valued at approximately $321.5 million, a deal poised to cement Prosperity’s dominance across South and Central Texas.
The high-stakes merger, orchestrated with legal heavyweights Norton Rose Fulbright advising Prosperity and Wachtell Lipton Rosen & Katz guiding American Bank, was unanimously approved by both banks’ boards and is slated to close by late 2025 or early 2026, pending the usual regulatory and shareholder nods.
A Strategic Play for Market Depth and Density
Houston-based Prosperity Bancshares, already a formidable player with $38.8 billion in assets and a network of 283 full-service locations throughout Texas and Oklahoma, will issue 4.44 million shares of its common stock to fully acquire American Bank Holding Corp.—American Bank’s parent company. Based on Prosperity’s closing price of $72.40 on July 16, the transaction hits the $321.5 million mark.
This strategic acquisition aims to accelerate Prosperity’s growth in pivotal banking regions, particularly the San Antonio metro, Austin, and the Corpus Christi area, where American Bank has built a trusted name with 18 banking offices and two loan production centers.
American Bank, headquartered in Corpus Christi, reported $2.5 billion in assets, $1.8 billion in loans, and $2.3 billion in deposits as of March 31—figures that bring considerable weight to Prosperity’s expanding balance sheet.
