Prosperity Bancshares, the parent company of Prosperity Bank, has agreed to merge with American Bank Holding Corporation, acquiring American Bank and its subsidiary.
American Bank, which has eighteen offices and two loan production offices in South and Central Texas, reported total assets of $2.5 billion, loans of $1.8 billion, and deposits of $2.3 billion as of March 31, 2025.
Under the agreement terms, Prosperity will issue 4,439,981 shares for all outstanding shares of American common stock, valuing the deal at approximately $321.5 million based on Prosperity’s stock price of $72.40 on July 16, 2025.
Post-merger, Stephen Raffaele, CEO of American Bank, will serve as Chairman for South Texas and San Antonio at Prosperity Bank, while Ben Wallace will be the Senior Chairman for South Texas. Other management members will retain their positions.
Both the Boards of Directors have unanimously approved the merger, expected to close in late 2025 or early 2026, pending shareholder and regulatory approvals.
Advisors/counsel/support: American is being advised by Stephens as financial advisor and Norton Rose Fulbright, as legal counsel. Keefe, Bruyette & Woods, a Stifel Company, is serving as financial advisor to Prosperity and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Prosperity.
KEY QUOTES:
“I could not be more excited about partnering with Ben, Patt, Steve and the management team and other professionals of American Bank. We have followed American Bank closely for more than two decades and have tremendous respect for the bank and for the people that have contributed to its success. Our banks have a complementary footprint, and we are familiar with and remain committed to the communities that American Bank serves, including with both financial products and community support.”
“This combination will strengthen our presence and operations in South Texas and surrounding areas and enhances our presence in Central Texas, including in San Antonio, a highly desirable, high growth area. The customers of American Bank will be able to use any of our locations across Texas and Oklahoma after operational integration.”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity
“Over American Bank’s 50-plus year history of growth and success, we have placed our focus on relationship banking and excellent customer service. We are excited to partner with Prosperity knowing that they share our approach to customer service and the overall banking business,” continued Raffaele. “By joining forces with Prosperity, we will continue our journey of service and success, but with all the advantages of the strength and wherewithal of a combined larger and premier banking institution.”
Stephen Raffaele, Chief Executive Officer and President of American Bank
