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The US Federal Reserve has approved the merger of Prosperity Bancshares, Inc., based in Houston, Texas, with Southwest Bancshares, Inc., a bank holding company headquartered in San Antonio. The approval was granted through an official order issued on January 8, 2026.
With this approval, Southwest Bancshares will be merged into Prosperity Bancshares. As part of the transaction, Texas Partners Bank, which is currently a subsidiary of Southwest, will also come under Prosperity’s control. After the merger is completed, Texas Partners Bank will be merged into Prosperity Bank, Prosperity’s existing state nonmember bank subsidiary based in El Campo, Texas.
Prosperity Bancshares is a large banking group in the United States with total assets of about $38.4 billion. Based on its size, it is currently the 65th largest insured banking organisation in the country. The group holds around $27.9 billion in deposits, which is less than 1% of all bank deposits in the US, showing that while Prosperity is a significant regional player, it is not dominant at the national level. Prosperity owns Prosperity Bank, which operates mainly in Texas and Oklahoma. Within Texas, Prosperity Bank is the 10th largest bank, holding deposits of about $26.3 billion, or 1.8% of total bank deposits in the state.
Southwest Bancshares, on the other hand, is much smaller in comparison. It has total assets of around $2.5 billion, making it the 486th largest insured banking organisation in the United States. Southwest holds about $2.3 billion in deposits, also representing less than 1% of total US bank deposits. Southwest owns Texas Partners Bank, which operates only in Texas. Texas Partners Bank is the 60th largest bank in Texas, with deposits of about $2.1 billion, accounting for less than 1% of the state’s total bank deposits.
After the merger is completed, and taking into account Prosperity’s recent acquisition of ABHC, the combined group will become the 62nd largest insured banking organisation in the US. The merged entity will have total assets of around $43.4 billion. Its total deposits are expected to rise to about $32.5 billion, which will still be less than 1% of total US bank deposits, indicating that the merger does not pose any concentration risk at the national level.
In Texas, the impact will be more noticeable. After the merger, Prosperity Bank will become the eighth largest bank in the state, with deposits of approximately $30.8 billion. This would give the bank a 2.1% share of total deposits in Texas, strengthening its position in the state while still maintaining a competitive and diversified banking market.
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