Overview

• Boards of both companies have approved the transaction, which still requires Southwest shareholder and regulatory signoffs.
• Prosperity will issue roughly 4.1 million shares as consideration, valuing the deal at about $269 million based on its recent share price and reflecting a 4.5% core deposit premium.
• Texas Partners Bank operates 11 locations across San Antonio, Austin and the Hill Country, holds about $2.4 billion in assets, and employs roughly 236 people.
• Leadership plans include Brent Given becoming Prosperity’s San Antonio-area chairman and Gene Dawson joining Prosperity’s board, with additional Texas Partners executives taking senior roles.
• Prosperity projects EPS accretion of about 1% in 2026 and 2.5% in 2027, expects roughly 1.2% tangible book value dilution, anticipates $18 million in one-time costs, and will mark $28.3 million on loans while eliminating $21.7 million of unrealized losses as it builds Central Texas scale alongside its pending American Bank purchase.