A June snapshot on the eve of a bank’s merger
On July 1, 2026, Stellar Bancorp, Inc. merged into Prosperity Bancshares, Inc., while Stellar Bank merged into Prosperity Bank, the surviving bank. The closing announcement said the Stellar name would remain until operational integration planned for March 2027. Continued branding therefore does not mean the former charter remains independent, and the planned conversion is not a completed event. [1]
The charter and the Stellar name had different starting dates
The FDIC now marks certificate 58629 inactive. Its recorded establishment date is October 15, 2007, and its last identity is Stellar Bank in Houston, a state-chartered Federal Reserve member bank. That date predates the Stellar brand. The 2025 annual report explains that CommunityBank of Texas, N.A. merged into Allegiance Bank on October 1, 2022. Allegiance was the surviving bank and adopted the Stellar Bank name on February 18, 2023 during operational conversion. The charter continued through that name change. [2] [3]
The business it brought to the combination
The definitive merger proxy describes a commercial bank serving small and midsized businesses, professionals and individual customers. At December 2025 it had 52 banking centers: 35 in the Houston metropolitan area, 16 around Beaumont and one in Dallas. That footprint made the transaction chiefly an expansion within Texas. The geographic counts are a dated description of Stellar’s pre-merger network, not a promise that every office will remain after integration. The proxy’s consolidated parent financial figures are not substituted for the bank-only numbers below. [4]
Credit was rooted in businesses and property
Stellar’s annual report describes commercial credit for working capital, equipment and expansion, with repayment tied primarily to operating cash flow. Property lending included owner-occupied, income-producing and multifamily buildings. Business borrowers rely on operating receipts; investment-property borrowers often rely on rent after expenses. [3]
The last June bank accounts included a loss
At June 30, 2026, Stellar Bank reported $10.405 billion in assets and $8.738 billion in deposits. Net loans rose to $7.428 billion from $7.204 billion a year earlier. First-half net income was a $33.329 million loss, versus a $56.749 million profit. were 0.69% of loans in both periods after rounding. The bank-only figures do not isolate the cause of the earnings reversal; a nearly unchanged noncurrent ratio does not explain the full income statement. [5]
Scroll horizontally to see all columns.
| Bank-only measure | June 2026 | June 2025 |
|---|---|---|
| Assets | $10,404.868 million | $10,492.328 million |
| Deposits | $8,737.614 million | $8,722.009 million |
| Net loans | $7,427.664 million | $7,204.182 million |
| Book equity | $1,581.047 million | $1,611.658 million |
| Net income, January–June | −$33.329 million | $56.749 million |
Deposits were the main source of funding
The bank reported $3.200 billion of noninterest-bearing deposits at June 2026 and an estimated $5.109 billion of uninsured deposits. Federal Home Loan Bank advances were zero, compared with $70 million a year earlier. Its annualized net ratio increased to 0.14% from 0.01%, while common-equity Tier 1 capital was 12.79%. These figures capture funding, realized loan losses and a regulatory capital ratio immediately before the merger. They are not post-merger measurements for Prosperity Bank and cannot establish which customers retained or moved deposits after closing. [6]
A shareholder transaction and a customer transition
The merger agreement combined cash and Prosperity shares for Stellar shareholders. The proxy separately identifies the corporate merger and the immediately following bank merger, with Prosperity Bank surviving. Share conversion and transfer of banking relationships therefore answer different questions. Systems, account access and branding can follow a later timetable than the legal transaction. [4]
The historical accounts still have a purpose
The June figures preserve a historical bank-only snapshot. Adding them to another bank’s balances would not create an official post-acquisition statement, because acquisition accounting and consolidation can change the result. [1]
Sources
- Prosperity Bancshares: Stellar parent and bank mergers completed July 1, 2026Filing / reportBack to text: ↑1↑2
- FDIC institution directory: certificate 58629, October 2, 2026 indexOfficial sourceBack to text: ↑
- Stellar Bancorp: 2025 Form 10-K, bank history, business and risksFiling / reportBack to text: ↑1↑2
- Stellar Bancorp: definitive 2026 merger proxy, business and transaction structureFiling / reportBack to text: ↑1↑2↑3
- FDIC bank-only financials: certificate 58629, June 30, 2026 and June 30, 2025; dollar fields in thousandsOfficial sourceBack to text: ↑
- FDIC bank-only funding and capital: certificate 58629, June 30, 2026 and June 30, 2025Official sourceBack to text: ↑