Bank merger and acquisition activity rebounded sharply in 2025, with Houston-area financial institutions playing a leading role, according to reporting by Chandler France of the Houston Business Journal. After years of subdued dealmaking, pent-up demand and improving market conditions helped drive a surge in transactions, particularly in the third quarter, when 52 U.S. bank deals were announced, the busiest quarter since mid-2021, according to S&P Global.
Among Houston banks, Cadence Bank stood out as the most active. Early in the year, Cadence acquired FCB Financial Corp., a Georgia-based company, for $103.6 million, expanding its footprint in the Savannah market. It followed that with the acquisition of Industry Bancshares Inc., adding six community banks across Central and Southeast Texas. Later in the year, Cadence itself agreed to be acquired by Huntington Bancshares in a $7.4 billion all-stock deal, one of the largest bank transactions of the year. The acquisition is expected to close in February 2026 and will significantly expand Huntington’s presence across Texas and the southern U.S.
Prosperity Bancshares, the parent of Prosperity Bank, also made major moves to grow its Texas footprint. The Houston-based bank announced a $321.5 million acquisition of American Bank Holding Corp. in Corpus Christi, followed by a $268.9 million deal to acquire Texas Partners Bank in San Antonio. Both transactions strengthen Prosperity’s presence in key Texas markets and are expected to close in early 2026.
Other Houston-area institutions pursued out-of-market growth. Cornerstone Capital Bancorp announced plans to acquire Peoples Bancorp of Lubbock, expanding into West Texas and the Dallas-Fort Worth region. Meanwhile, Third Coast Bancshares agreed to buy Austin-based Keystone Bancshares, adding new branches and increasing total assets to exceed $6 billion.
Houston banks were also on the selling side. Jacksonville-based Austin Bank absorbed Chasewood Bank, while Bank of Houston entered into a merger agreement with South Plains Financial. In the credit union space, TDECU and Smart Financial Credit Union agreed to merge, creating a combined institution with $6 billion in assets and nearly half a million members statewide.
Altogether, the wave of transactions highlights renewed confidence in bank consolidation, with Houston financial institutions expanding aggressively across Texas and beyond as the M&A market regains momentum.
Source: Houston Business Journal
Author: Chandler France
Original story: https://www.bizjournals.com/houston/news/2025/12/29/bank-mergers-acquisitions-cadence-prosperity.html