Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Prosperity Bancshares (PB - Free Report) , which belongs to the Zacks Banks - Southwest industry.
When looking at the last two reports, this financial holding company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 5.79%, on average, in the last two quarters.
For the most recent quarter, Prosperity Bancshares was expected to post earnings of $1.54 per share, but it reported $1.62 per share instead, representing a surprise of 5.19%. For the previous quarter, the consensus estimate was $1.41 per share, while it actually produced $1.5 per share, a surprise of 6.38%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Prosperity Bancshares lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Prosperity Bancshares has an Earnings ESP of +0.22% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on October 28, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Prosperity Bancshares just closed three bank acquisitions in seven months and bumped its dividend again, but a first-quarter spike in loan losses raises a question management has not fully answered yet.
Prosperity Bancshares (NYSE:PB | PB Price Prediction) raised its payout again today. Prosperity Bancshares announced a 6.7% increase, setting the new quarterly dividend at $0.64 per share. The raise comes from a Texas bank that closed three acquisitions in seven months, signaling management’s confidence in its balance sheet.
A Payout That Keeps Climbing
The quarterly dividend rose from $0.56 in 2024 to $0.58, then to $0.60, and payments date back to 1999. When the company announced last year’s raise, the CEO at the time called it the 22nd straight annual increase:
“The increase reflects the continued confidence the Board has in our company and our markets. The compound annual growth rate in dividends declared from 2003 to 2025 was 10.7%.”
With the stock at $68.29, the new rate works out to a forward yield of about 3.7%.
Earnings Cover the Check Comfortably
Second-quarter adjusted EPS came in at $1.62, beating the $1.55 consensus. The new dividend uses roughly 40% of that quarter’s earnings. Over the trailing 12 months, dividends of $2.40 amounted to about 42% of 2025 EPS of $5.72. Net income rose 24.73% to $168.58 million. Net interest margin, the spread a bank earns between what it collects on loans and what it pays on deposits, widened 29 bps to 3.47%.
Capital and Deposits Back the Raise
At June 30, shareholders’ equity stood at $8.29 billion against $43.89 billion in assets. Acquisition goodwill and intangibles can’t absorb losses, so a stricter test removes them. On that basis, tangible equity was about 10.9% of tangible assets. The bank also bought back $70.8 million of stock in the first half.
The Stellar deal added $8.7B in deposits and $7.5B in loans. Management explained why that funding matters:
“Stellar Bancorp is a well-run bank with similar credit discipline and an enviable noninterest-bearing deposit mix. It has scarcity value, a quality balance sheet and earnings power.”
How the Raise Compares With Regional Rivals
Zions Bancorporation (NASDAQ:ZION) raised its dividend to $0.48 from $0.45, up about 6.7% and matching the raise Prosperity Bancshares announced. Its margin slipped to 3.23%. Cullen/Frost Bankers (NYSE:CFR) raised its payout by 3.0% and earns a stronger 3.75% margin. Frost also says its strategy depends on building branches itself. Its CEO said:
“Our strategy is consistent, and our results speak for themselves.”
Prosperity takes the opposite path, growing by buying banks. That is why integration and credit carry more weight in its story.
One Risk Worth Tracking
Credit is the main threat to the payout. First-quarter net charge-offs jumped to $41.3M, with $33.8M coming from commercial and industrial loans. Charge-offs fell back to $2.2M in the second quarter. Nonperforming assets still rose to $130.6M from $110.5M a year earlier. None of the classic warning signs we flag in a free guide to dividend traps are flashing here, but commercial credit is the line to watch.
Verdict: The Dividend Looks Sustainable
Prosperity is expected to report quarterly earnings next week. That will be the first full quarter that includes Stellar so that the results could change this picture. Watch charge-offs and deposit retention. Even so, a payout ratio near 40%, tangible equity close to 11% of tangible assets, and a widening margin give the bank plenty of buffer. Unless commercial loan losses climb back toward first-quarter levels, the $0.64 dividend Prosperity Bancshares announced looks well covered.
Contact [email protected] for any questions or corrections.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Houston, Prosperity Bancshares (PB - Free Report) is a Finance stock that has seen a price change of -1.24% so far this year. Currently paying a dividend of $0.60 per share, the company has a dividend yield of 3.52%. In comparison, the Banks - Southwest industry's yield is 1.55%, while the S&P 500's yield is 1.38%.
Looking at dividend growth, the company's current annualized dividend of $2.40 is up 2.6% from last year. Over the last 5 years, Prosperity Bancshares has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.50%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Prosperity Bancshares's current payout ratio is 40%, meaning it paid out 40% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for PB for this fiscal year. The Zacks Consensus Estimate for 2026 is $6.46 per share, which represents a year-over-year growth rate of 13.53%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, PB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Prosperity Bancshares (PB) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
, /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB) today announced that its Board of Directors declared a quarterly common stock dividend of $0.64 per share for the fourth quarter of 2026, payable January 4, 2027, to shareholders of record as of December 15, 2026. The fourth quarter dividend represents an increase of $0.04 per share, or 6.67%, from the prior quarter.
Prosperity Bancshares, Inc.®
As of June 30, 2026, Prosperity Bancshares, Inc.® is a $43.873 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consumers and small to medium sized businesses throughout Texas and Oklahoma.
Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses, and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.
Prosperity currently operates 352 full-service banking locations: 62 in the Houston area, including The Woodlands; 40 in the South Texas area including Corpus Christi and Victoria; 60 in the Dallas/Fort Worth area; 20 in the East Texas area; 26 in the Central Texas area including Austin; 7 in the San Antonio area; 45 in the West Texas area including Lubbock, Midland Odessa, Abilene; Amarillo and Wichita Falls; 15 in the Bryan/College Station area, 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area, 11 in the Central Texas area and San Antonio area doing business as Texas Partners Bank and 52 in the Houston and Dallas areas doing business as Stellar Bank.
Cautionary Notes on Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for loan losses, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of a proposed transaction, and statements about the assumptions underlying any such statement. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity's control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; and weather. These and various other factors are discussed in Prosperity Bancshares' Annual Report on Form 10-K for the year ended December 31, 2025 and other reports and statements Prosperity Bancshares has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity Bancshares may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.
Key Takeaways PB completed three acquisitions in 2026, expanding its banking franchise and revenue growth potential.A favorable deposit mix and projected NIM expansion could support net interest income growth through 2028.Rising fee income and cost savings could boost growth despite integration costs and loan risks.
Prosperity Bancshares (PB - Free Report) is positioned to grow revenues through acquisition-led expansion, improving net interest margin (NIM), a favorable deposit mix and higher fee income. Recent acquisitions are expanding its operating scale and are expected to support revenue growth over the next few years. Integration costs, competitive loan pricing and real estate concentration remain key risks to sustainable growth.
PB’s net revenues recorded a 7.3% compound annual growth rate (CAGR) from 2019 to 2025, despite declines in 2021 and 2023. Growth continued in the first half of 2026.
Prosperity Bancshares’ Revenue Trend (TTM)
Image Source: Zacks Investment Research
PB’s Acquisition Strategy Remains a Key Revenue Growth DriverAcquisitions remain central to Prosperity Bancshares’ expansion strategy. Since its inception, the company has grown significantly by acquiring community banks and select branches from other institutions, completing 48 acquisitions.
This year, PB completed its American Bank Holding Corporation acquisition in January, Southwest Bancshares in February and Stellar Bancorp on July 1. These deals expand its balance sheet, lending relationships and banking franchise.
PB completed the American Bank integration in September 2026, with Texas Partners Bank and Stellar Bank integrations scheduled for November 2026 and March 2027, respectively. Prosperity Bancshares has already begun realizing cost savings from American Bank and Texas Partners, with another $20-$25 million in pre-tax savings likely to be realized this year. Management expects full cost-saving benefits from American Bank and Texas Partners in 2027, while Stellar is expected to generate $80-$85 million in savings. Thus, total remaining pre-tax savings from these deals are estimated at $100-$110 million.
PB’s Revenues Benefit From a Favorable Deposit Mix & NIMApart from steady benefits from its acquisition-related scale, Prosperity Bancshares’ favorable deposit mix and expanding NIM support its top-line growth. As of June 30, 2026, non-interest-bearing deposits accounted for 32.9% of total deposits, helping contain funding costs and support net interest income (NII) and NIM.
As of June 30, 2026, fixed-rate loans accounted for 37.6% of the loan portfolio, with the remainder comprising floating- and variable-rate loans. So, asset repricing, higher rates and steady loan demand are expected to drive NIM and NII expansion.
Net Interest Margin Trend
Image Source: Prosperity Bancshares
The company expects loan balances to be flat for the remainder of 2026. Though the Stellar deal will add about $200 million of loans in the second half of 2026, elevated paydowns and aggressive competitor pricing will likely limit overall growth. Management expects exit NIM of 3.70%-3.75% in 2026 and 3.80%-3.85% in 2027. We project NII to witness a CAGR of 19.5% through 2028 and NIM of 3.58% in 2026, 3.82% in 2027 and 3.89% in 2028.
PB’s Fee Income Complements NIIPB is focused on diversifying its revenue mix by expanding card-related income, deposit account service charges and other revenue sources. In the first half of 2026, credit, debit and ATM card income, service charges on deposit accounts and other income increased 7%, 19% and 16.9%, respectively, year over year.
We expect card-related income, service charges on deposit accounts and other income to witness a CAGR of 16.2%, 18.5% and 23.6%, respectively, through 2028.
Parting Thoughts on PB’s Revenue DriversProsperity Bancshares is positioned to grow revenues through acquisition-led expansion, improving NIM, a favorable deposit mix and rising fee income. The integration of American Bank, Texas Partners Bank and Stellar Bancorp is expected to expand operating scale and generate meaningful cost savings. However, competitive loan pricing, rising mortgage rates, real estate concentration and integration costs remain key risks to sustained revenue growth.
We expect total revenues to grow at the rate of 40.1%, 16% and 4.7% in 2026, 2027 and 2028, respectively.
PB’s Peers & Their Revenue DriversBank OZK (OZK - Free Report) revenue growth will likely be supported by commercial and industrial (CIB) loan expansion, new branch openings and higher fee income from trust, wealth management and treasury services. OZK expects mid- to high-single-digit revenue growth in 2026, with further gains in 2027 and beyond. We project net revenues to witness a CAGR of 4.7% through 2028, driven by growth in NII and non-interest income.
Texas Capital Bancshares (TCBI - Free Report) revenue growth will likely be supported by strategic diversification, commercial and industrial loan expansion and increased contributions from investment banking and other fee-based businesses. Texas Capital’s management expects adjusted total revenues to grow at a mid-to-high single-digit rate in 2026, with non-interest revenues projected at $270-$290 million. Continued investments in technology, corporate banking and new business offerings are expected to support sustainable revenue growth and improve operating leverage.
Beaumont Asset Management L.L.C. acquired a new stake in Prosperity Bancshares, Inc. (NYSE:PB – Free Report) in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 19,650 shares of the bank’s stock, valued at approximately $1,301,000.
Several other hedge funds and other institutional investors have also recently bought and sold shares of the company. BlackRock Inc. purchased a new stake in shares of Prosperity Bancshares during the 2nd quarter valued at approximately $746,776,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of Prosperity Bancshares during the 2nd quarter worth $350,099,000. Dimensional Fund Advisors LP grew its holdings in shares of Prosperity Bancshares by 4.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,929,309 shares of the bank’s stock worth $331,142,000 after purchasing an additional 205,291 shares during the period. North Reef Capital Management LP increased its position in shares of Prosperity Bancshares by 149.0% during the 1st quarter. North Reef Capital Management LP now owns 1,107,877 shares of the bank’s stock worth $74,427,000 after purchasing an additional 662,877 shares during the last quarter. Finally, Algebris UK Ltd. acquired a new stake in shares of Prosperity Bancshares during the 2nd quarter worth about $59,465,000. 80.69% of the stock is currently owned by institutional investors and hedge funds.
Analysts Set New Price Targets A number of equities research analysts have weighed in on PB shares. Royal Bank Of Canada dropped their price target on shares of Prosperity Bancshares from $80.00 to $77.00 and set a “sector perform” rating for the company in a research report on Friday, October 9th. Benchmark began coverage on shares of Prosperity Bancshares in a report on Wednesday, June 24th. They issued a “hold” rating on the stock. Cantor Fitzgerald decreased their price objective on shares of Prosperity Bancshares from $85.00 to $78.00 and set an “overweight” rating on the stock in a report on Wednesday. Raymond James Financial raised shares of Prosperity Bancshares from a “market perform” rating to an “outperform” rating and set a $78.00 price objective for the company in a research report on Tuesday, October 6th. Finally, TD Cowen dropped their target price on shares of Prosperity Bancshares from $84.00 to $78.00 and set a “buy” rating for the company in a report on Monday, October 5th. Six investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $77.55.
Read Our Latest Research Report on PB Prosperity Bancshares Stock Up 0.5% PB opened at $67.80 on Friday. Prosperity Bancshares, Inc. has a one year low of $61.62 and a one year high of $77.20. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.75 and a current ratio of 0.75. The stock has a market capitalization of $6.84 billion, a P/E ratio of 11.19, a price-to-earnings-growth ratio of 0.75 and a beta of 0.66. The business’s 50-day simple moving average is $70.34 and its 200-day simple moving average is $70.47.
Prosperity Bancshares (NYSE:PB – Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The bank reported $1.62 EPS for the quarter, beating the consensus estimate of $1.50 by $0.12. Prosperity Bancshares had a net margin of 29.95% and a return on equity of 7.39%. The firm had revenue of $391.25 million during the quarter, compared to the consensus estimate of $380.73 million. During the same quarter in the prior year, the firm earned $1.42 EPS. Prosperity Bancshares’s revenue for the quarter was up 25.9% on a year-over-year basis. Analysts anticipate that Prosperity Bancshares, Inc. will post 6.46 EPS for the current year.
Prosperity Bancshares Announces Dividend The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Tuesday, September 15th were issued a dividend of $0.60 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $2.40 annualized dividend and a dividend yield of 3.5%. Prosperity Bancshares’s dividend payout ratio (DPR) is currently 41.59%.
Insiders Place Their Bets In other Prosperity Bancshares news, Director Ned Holmes sold 600 shares of the business’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $74.26, for a total value of $44,556.00. Following the transaction, the director directly owned 39,500 shares of the company’s stock, valued at approximately $2,933,270. The trade was a 1.50% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. In the last 90 days, insiders have sold 12,700 shares of company stock valued at $902,833. Company insiders own 3.96% of the company’s stock.
Prosperity Bancshares Company Profile (Free Report)
Prosperity Bancshares, Inc is a bank holding company headquartered in Houston, Texas. Through its principal subsidiary, Prosperity Bank, the company provides a range of banking and financial services to individuals, businesses and institutional customers.
Prosperity Bank offers deposit accounts, commercial and consumer lending, mortgage and real estate loans, treasury management, cash management, online and mobile banking, and other related financial services. Its lending activities support businesses, agricultural customers, real estate projects and consumers.
Founded in 1983, Prosperity Bancshares has expanded through organic growth and acquisitions.
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Houston, Prosperity Bancshares (PB - Free Report) is a Finance stock that has seen a price change of -2.5% so far this year. The financial holding company is paying out a dividend of $0.60 per share at the moment, with a dividend yield of 3.56% compared to the Banks - Southwest industry's yield of 1.53% and the S&P 500's yield of 1.45%.
Looking at dividend growth, the company's current annualized dividend of $2.40 is up 2.6% from last year. Over the last 5 years, Prosperity Bancshares has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.50%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Prosperity Bancshares's current payout ratio is 40%, meaning it paid out 40% of its trailing 12-month EPS as dividend.
PB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $6.48 per share, with earnings expected to increase 13.88% from the year ago period.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, PB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
, /PRNewswire/ -- In conjunction with Prosperity Bancshares, Inc.® (NYSE: PB) Third Quarter 2026 Earnings Announcement, scheduled before the market opens on Wednesday, October 28, 2026, you are invited to listen to its conference call at 11:30 AM, Eastern Time (10:30 AM, Central Time) on that day. Participants will include members of Prosperity's executive management team.
What:
Prosperity Bancshares, Inc.® Third Quarter 2026 Earnings Conference Call
When:
Wednesday, October 28, 2026, at 10:30 AM (Central Time)
Log on to the web at the address above or call 1-877-883-0383 for domestic participants, or 1-412-902-6506 for international participants, and enter Participant Elite Entry Number: 0372441
If you are unable to participate during the live webcast, the call will be archived on the website at https://www.prosperitybankusa.com/Investor-Relations. To access the replay, visit https://www.prosperitybankusa.com/Presentation-Webcasts-and-Calls and follow the instructions.
Prosperity Bancshares, Inc.®
As of June 30, 2026, Prosperity Bancshares, Inc.® is a $43.873 billion Houston, Texas-based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma.
Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses, and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, treasury management solutions, and wealth management services, including trust and retail brokerage.
Prosperity currently operates 353 full-service banking locations: 62 in the Houston area, including The Woodlands; 40 in the South Texas area including Corpus Christi and Victoria; 61 in the Dallas/Fort Worth area; 20 in the East Texas area; 26 in the Central Texas area including Austin; 7 in the San Antonio area; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita Falls; 15 in the Bryan/College Station area, 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area, 11 in the Central Texas area and San Antonio area doing business as Texas Partners Bank and 52 in the Houston and Dallas areas doing business as Stellar Bank.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity's management on the conference call may contain, forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for loan losses, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of any acquisition transaction, and statements about the assumptions underlying any such statement. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity's control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; and weather. These and various other factors are discussed in Prosperity Bancshares' Annual Report on Form 10-K for the year ended December 31, 2025 and other reports and statements Prosperity Bancshares has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity Bancshares may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.
PB Fintech (PBFI.NS) expects India's proposed caps on insurance commissions to severely affect its non-life insurance business, which may lead to spending cuts and a slowdown in hiring, co-founder and group CEO Yashish Dahiya told analysts on Thursday.
Shares of Indian insurance distributors and lenders with sizeable insurance distribution income fell following the news, led by a 36% plunge in PB Fintech, the parent of insurance platform Policybazaar.
The stock recorded its biggest one-day fall, wiping out more than 314 billion rupees ($3.27 billion) in market capitalisation.
The proposals, set out in a consultation paper released on Wednesday, would reintroduce commission caps across life, health and motor insurance that the Insurance Regulatory and Development Authority of India scrapped in 2023.
The reforms aim to lower policy costs and curb mis-selling. However, analysts said these could disrupt established distribution models and weigh on growth in an industry that relies heavily on agents and banks to sell policies.
PB Fintech said it would respond by managing costs more closely and focusing on profitability.
"In terms of general insurance, it is between one-third to 40% of what we have today. So that's a very serious impact on revenue," Dahiya said, adding that the company would reassess spending.
"There may be opportunities for rationalisation in digital marketing, brand spending, sales and customer support."
The company may also explore new revenue streams and, over the longer term, consider entering insurance manufacturing, Dahiya said.
"It becomes a little harder for me to justify not having a manufacturing entity of my own because this somewhat takes away the trust in the fact that distributors would be rewarded for the quality of business they create."
PB Fintech said it would not resort to mass layoffs but could slow hiring. The company hired about 6,000 people in the first half of the year, Dahiya said, adding that it might have hired closer to 2,000 had the rules been known earlier.
"We run the company for long-term growth and we will calibrate that growth to the new reality."
The company could seek to monetise its hospital and garage networks, along with technology, underwriting and claims-related services, he said.
PB Fintech expects no impact in fiscal 2027, but fiscal 2028 could be a potential period of "challenges and discovery," if the new rules come into force by then.
Prosperity Bancshares (PB - Free Report) has been on a downward spiral lately with significant selling pressure. After declining 5.1% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why PB Could Bounce Back Before LongThe RSI reading of 26.91 for PB is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for PB has increased 0.1%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, PB currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Prosperity Bancshares (PB) have what it takes?
California State Teachers Retirement System grew its stake in shares of Prosperity Bancshares, Inc. (NYSE:PB – Free Report) by 6,498.9% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 7,924,120 shares of the bank’s stock after buying an additional 7,804,038 shares during the period. California State Teachers Retirement System owned 7.86% of Prosperity Bancshares worth $578,698,000 at the end of the most recent reporting period.
A number of other institutional investors and hedge funds have also recently modified their holdings of PB. Ameritas Advisory Services LLC bought a new position in shares of Prosperity Bancshares during the 2nd quarter valued at $209,000. HB Wealth Management LLC boosted its holdings in shares of Prosperity Bancshares by 20.1% during the second quarter. HB Wealth Management LLC now owns 13,891 shares of the bank’s stock worth $1,014,000 after purchasing an additional 2,323 shares during the period. Syon Capital LLC bought a new stake in shares of Prosperity Bancshares in the second quarter worth about $307,000. iSAM Funds UK Ltd grew its stake in shares of Prosperity Bancshares by 75.8% in the second quarter. iSAM Funds UK Ltd now owns 13,400 shares of the bank’s stock worth $979,000 after purchasing an additional 5,779 shares during the last quarter. Finally, Nykredit A S purchased a new position in Prosperity Bancshares during the 2nd quarter valued at about $427,000. 80.69% of the stock is owned by hedge funds and other institutional investors.
Analyst Ratings Changes PB has been the subject of several recent analyst reports. Benchmark started coverage on Prosperity Bancshares in a research note on Wednesday, June 24th. They issued a “hold” rating for the company. Royal Bank Of Canada boosted their target price on Prosperity Bancshares from $78.00 to $80.00 and gave the stock a “sector perform” rating in a research report on Thursday, July 30th. Citigroup boosted their target price on Prosperity Bancshares from $75.00 to $79.00 and gave the stock a “neutral” rating in a research report on Friday, July 31st. TD Cowen upped their target price on shares of Prosperity Bancshares from $82.00 to $84.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Finally, Morgan Stanley downgraded shares of Prosperity Bancshares from an “equal weight” rating to an “underweight” rating and set a $80.00 price target on the stock. in a report on Tuesday, September 8th. Five research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $78.36.
Read Our Latest Analysis on PB Insider Transactions at Prosperity Bancshares In other news, Director Ned Holmes sold 600 shares of the company’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $71.66, for a total value of $42,996.00. Following the sale, the director directly owned 40,100 shares of the company’s stock, valued at $2,873,566. This represents a 1.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders have sold 12,100 shares of company stock valued at $881,715 over the last 90 days. 3.96% of the stock is currently owned by insiders.
Prosperity Bancshares Stock Up 0.2% Shares of NYSE PB opened at $71.50 on Tuesday. Prosperity Bancshares, Inc. has a 52-week low of $61.06 and a 52-week high of $77.20. The firm has a market capitalization of $7.21 billion, a price-to-earnings ratio of 12.39, a PEG ratio of 0.78 and a beta of 0.63. The stock has a 50 day moving average price of $73.03 and a 200 day moving average price of $70.41. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.75 and a current ratio of 0.75.
Prosperity Bancshares (NYSE:PB – Get Free Report) last issued its earnings results on Wednesday, July 29th. The bank reported $1.62 earnings per share for the quarter, topping the consensus estimate of $1.50 by $0.12. The business had revenue of $391.25 million during the quarter, compared to analysts’ expectations of $380.73 million. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%.The business’s revenue for the quarter was up 25.9% compared to the same quarter last year. During the same period in the prior year, the business earned $1.42 EPS. Sell-side analysts expect that Prosperity Bancshares, Inc. will post 6.48 earnings per share for the current year.
Prosperity Bancshares Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th will be paid a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 3.4%. The ex-dividend date is Tuesday, September 15th. Prosperity Bancshares’s dividend payout ratio (DPR) is 41.59%.
(Free Report)
Prosperity Bancshares, Inc is a bank holding company headquartered in Houston, Texas. Through its principal subsidiary, Prosperity Bank, the company provides banking and financial services to individuals, businesses and institutions.
Prosperity Bank offers a range of deposit products, including checking, savings and time deposit accounts, along with consumer, residential mortgage, commercial and real estate lending. Its services also include treasury management, cash management, online and mobile banking, wealth management and other financial solutions designed for personal and business customers.
Founded in 1983, Prosperity Bancshares has expanded through organic growth and acquisitions.
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Investors looking for stocks in the Banks - Southwest sector might want to consider either Prosperity Bancshares (PB) or Cullen/Frost Bankers (CFR). But which of these two stocks is more attractive to value investors?
Corient Private Wealth LP acquired a new position in shares of Prosperity Bancshares, Inc. (NYSE:PB – Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm acquired 25,333 shares of the bank’s stock, valued at approximately $1,856,000.
A number of other institutional investors and hedge funds also recently added to or reduced their stakes in PB. Azora Capital LP purchased a new stake in Prosperity Bancshares in the 2nd quarter valued at $29,120,000. Bank of America Corp DE purchased a new position in shares of Prosperity Bancshares during the 2nd quarter worth $35,197,000. Port Capital LLC acquired a new position in shares of Prosperity Bancshares during the 2nd quarter valued at about $33,671,000. Man Group plc acquired a new position in shares of Prosperity Bancshares during the 2nd quarter valued at about $4,281,000. Finally, Jupiter Topco LLC purchased a new stake in shares of Prosperity Bancshares in the second quarter valued at about $3,306,000. Institutional investors and hedge funds own 80.69% of the company’s stock.
Insider Activity at Prosperity Bancshares In related news, Director Ned Holmes sold 600 shares of the stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $71.39, for a total transaction of $42,834.00. Following the completion of the transaction, the director owned 40,200 shares of the company’s stock, valued at approximately $2,869,878. This trade represents a 1.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In the last quarter, insiders have sold 12,100 shares of company stock valued at $881,656. Corporate insiders own 3.96% of the company’s stock.
Analyst Upgrades and Downgrades Several research firms recently issued reports on PB. TD Cowen raised their price objective on shares of Prosperity Bancshares from $82.00 to $84.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Wall Street Zen upgraded shares of Prosperity Bancshares from a “sell” rating to a “hold” rating in a report on Saturday, August 1st. Benchmark assumed coverage on shares of Prosperity Bancshares in a research note on Wednesday, June 24th. They issued a “hold” rating for the company. Morgan Stanley restated an “equal weight” rating and set a $80.00 price target (down from $85.00) on shares of Prosperity Bancshares in a report on Monday, July 6th. Finally, Weiss Ratings raised shares of Prosperity Bancshares from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, July 29th. Five research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Prosperity Bancshares has an average rating of “Hold” and a consensus target price of $78.36. Read Our Latest Research Report on PB
Prosperity Bancshares Stock Up 0.4% Shares of NYSE:PB opened at $72.37 on Friday. The business has a 50-day moving average price of $73.10 and a 200 day moving average price of $70.43. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.01. The company has a market capitalization of $7.30 billion, a price-to-earnings ratio of 12.54, a PEG ratio of 0.79 and a beta of 0.63. Prosperity Bancshares, Inc. has a 12-month low of $61.06 and a 12-month high of $77.20.
Prosperity Bancshares (NYSE:PB – Get Free Report) last posted its earnings results on Wednesday, July 29th. The bank reported $1.62 EPS for the quarter, beating analysts’ consensus estimates of $1.50 by $0.12. The company had revenue of $391.25 million for the quarter, compared to analysts’ expectations of $380.73 million. Prosperity Bancshares had a net margin of 29.95% and a return on equity of 7.39%. Prosperity Bancshares’s revenue for the quarter was up 25.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.42 earnings per share. Sell-side analysts expect that Prosperity Bancshares, Inc. will post 6.47 EPS for the current year.
Prosperity Bancshares Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th will be paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend is Tuesday, September 15th. Prosperity Bancshares’s payout ratio is 41.59%.
(Free Report)
Prosperity Bancshares, Inc is a holding company for Prosperity Bank, offering a broad range of commercial and consumer banking services across Texas, Oklahoma, Arkansas and Louisiana. Through its network of branches and digital platforms, the company provides deposit products, business and real estate lending, treasury management, mortgage origination and servicing, as well as wealth management and trust services.
Originally chartered in 1911 as First National Bank in McKinney, Texas, the organization rebranded to Prosperity Bank in 2009 following a series of strategic acquisitions aimed at deepening its regional presence.
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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Prosperity Bancshares (PB - Free Report) is headquartered in Houston, and is in the Finance sector. The stock has seen a price change of 2.3% since the start of the year. Currently paying a dividend of $0.60 per share, the company has a dividend yield of 3.39%. In comparison, the Banks - Southwest industry's yield is 1.53%, while the S&P 500's yield is 1.39%.
Looking at dividend growth, the company's current annualized dividend of $2.40 is up 2.6% from last year. Over the last 5 years, Prosperity Bancshares has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.50%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Prosperity Bancshares's current payout ratio is 40%, meaning it paid out 40% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, PB expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $6.47 per share, with earnings expected to increase 13.71% from the year ago period.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that PB is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in shares of Prosperity Bancshares, Inc. (NYSE:PB – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 4,793,908 shares of the bank’s stock, valued at approximately $350,099,000. Barrow Hanley Mewhinney & Strauss LLC owned approximately 4.75% of Prosperity Bancshares at the end of the most recent reporting period.
Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Prosperity Bancshares in the second quarter valued at approximately $746,776,000. AQR Capital Management LLC boosted its holdings in shares of Prosperity Bancshares by 175.1% during the 2nd quarter. AQR Capital Management LLC now owns 2,383,162 shares of the bank’s stock valued at $167,393,000 after acquiring an additional 1,516,939 shares in the last quarter. Algebris UK Ltd. bought a new stake in Prosperity Bancshares during the 2nd quarter worth $59,465,000. Bank of New York Mellon Corp bought a new stake in Prosperity Bancshares during the 2nd quarter worth $57,877,000. Finally, North Reef Capital Management LP increased its holdings in Prosperity Bancshares by 149.0% in the 1st quarter. North Reef Capital Management LP now owns 1,107,877 shares of the bank’s stock worth $74,427,000 after purchasing an additional 662,877 shares in the last quarter. 80.69% of the stock is currently owned by institutional investors.
Insiders Place Their Bets In other Prosperity Bancshares news, Director Ned S. Holmes sold 600 shares of the firm’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $69.30, for a total value of $41,580.00. Following the transaction, the director directly owned 40,400 shares of the company’s stock, valued at approximately $2,799,720. This trade represents a 1.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders have sold a total of 12,100 shares of company stock worth $872,923 in the last 90 days. Corporate insiders own 3.96% of the company’s stock.
Analyst Upgrades and Downgrades Several equities research analysts recently commented on the stock. Weiss Ratings upgraded shares of Prosperity Bancshares from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, July 29th. Citigroup raised their price objective on Prosperity Bancshares from $75.00 to $79.00 and gave the stock a “neutral” rating in a research report on Friday, July 31st. Royal Bank Of Canada boosted their target price on shares of Prosperity Bancshares from $78.00 to $80.00 and gave the company a “sector perform” rating in a report on Thursday, July 30th. Morgan Stanley reaffirmed an “equal weight” rating and set a $80.00 target price (down from $85.00) on shares of Prosperity Bancshares in a research note on Monday, July 6th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and issued a $80.00 target price on shares of Prosperity Bancshares in a report on Tuesday, June 23rd. Five investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $78.36. View Our Latest Research Report on PB
Prosperity Bancshares Trading Up 0.1% NYSE PB opened at $72.86 on Monday. The company has a market cap of $7.35 billion, a price-to-earnings ratio of 12.63, a P/E/G ratio of 0.79 and a beta of 0.64. Prosperity Bancshares, Inc. has a 52 week low of $61.06 and a 52 week high of $77.20. The business has a 50 day moving average price of $73.01 and a 200-day moving average price of $70.54. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.01.
Prosperity Bancshares (NYSE:PB – Get Free Report) last issued its earnings results on Wednesday, July 29th. The bank reported $1.62 earnings per share for the quarter, topping analysts’ consensus estimates of $1.50 by $0.12. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%.The company had revenue of $369.18 million for the quarter, compared to analyst estimates of $380.73 million. During the same period in the prior year, the firm earned $1.42 earnings per share. Prosperity Bancshares’s revenue for the quarter was up 25.9% on a year-over-year basis. As a group, equities analysts expect that Prosperity Bancshares, Inc. will post 6.47 earnings per share for the current fiscal year.
Prosperity Bancshares Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th will be issued a dividend of $0.60 per share. The ex-dividend date is Tuesday, September 15th. This represents a $2.40 annualized dividend and a yield of 3.3%. Prosperity Bancshares’s dividend payout ratio is presently 41.59%.
Prosperity Bancshares News Roundup Here are the key news stories impacting Prosperity Bancshares this week:
Positive Sentiment: Zacks raised several earnings forecasts. The firm increased its FY2026 EPS estimate to $6.40 from $6.24, lifted FY2027 EPS to $7.22 from $7.16, and raised estimates for Q3 2026, Q4 2026, Q1 2027, Q2 2027, Q4 2027 and Q1 2028. These revisions signal improving expectations for PB’s medium-term profitability. Prosperity Bancshares analyst estimates Neutral Sentiment: Investors are comparing PB’s valuation with Cullen/Frost Bankers. A Zacks analysis examines which Southwest bank offers the better value opportunity. PB trades at a relatively modest valuation, with a reported P/E ratio near 12.6, but the article’s impact depends on its comparative conclusion and may be limited without a new company-specific catalyst. PB versus CFR value analysis Negative Sentiment: Some future-quarter estimates were reduced. Zacks lowered its Q3 2027 EPS forecast to $1.81 from $1.85 and trimmed its Q2 2028 estimate to $1.92 from $1.93. The cuts are small, but they indicate that the earnings outlook is not uniformly improving. Prosperity Bancshares revised estimates Negative Sentiment: Director Ned S. Holmes sold 1,100 shares for approximately $81,000 across two transactions at prices around $73.64–$73.67. He retained a substantial position, so the sales are not necessarily a strong bearish signal, but insider selling can weigh modestly on sentiment. SEC insider transaction filing Prosperity Bancshares Company Profile (Free Report)
Prosperity Bancshares, Inc is a holding company for Prosperity Bank, offering a broad range of commercial and consumer banking services across Texas, Oklahoma, Arkansas and Louisiana. Through its network of branches and digital platforms, the company provides deposit products, business and real estate lending, treasury management, mortgage origination and servicing, as well as wealth management and trust services.
Originally chartered in 1911 as First National Bank in McKinney, Texas, the organization rebranded to Prosperity Bank in 2009 following a series of strategic acquisitions aimed at deepening its regional presence.
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Algebris UK Ltd. purchased a new position in shares of Prosperity Bancshares, Inc. (NYSE:PB – Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 816,821 shares of the bank’s stock, valued at approximately $59,465,000. Prosperity Bancshares accounts for 3.9% of Algebris UK Ltd.’s investment portfolio, making the stock its 9th largest holding. Algebris UK Ltd. owned 0.81% of Prosperity Bancshares as of its most recent SEC filing.
Other hedge funds and other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. raised its position in Prosperity Bancshares by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 10,256,927 shares of the bank’s stock worth $708,856,000 after buying an additional 140,035 shares during the last quarter. BlackRock Inc. purchased a new position in Prosperity Bancshares in the second quarter worth $746,776,000. State Street Corp lifted its holdings in Prosperity Bancshares by 6.6% in the third quarter. State Street Corp now owns 5,580,039 shares of the bank’s stock valued at $373,231,000 after acquiring an additional 343,062 shares during the period. Dimensional Fund Advisors LP lifted its holdings in Prosperity Bancshares by 4.3% in the first quarter. Dimensional Fund Advisors LP now owns 4,929,309 shares of the bank’s stock valued at $331,142,000 after acquiring an additional 205,291 shares during the period. Finally, AQR Capital Management LLC lifted its holdings in Prosperity Bancshares by 34.5% in the fourth quarter. AQR Capital Management LLC now owns 4,600,715 shares of the bank’s stock valued at $317,955,000 after acquiring an additional 1,179,307 shares during the period. 80.69% of the stock is owned by hedge funds and other institutional investors.
Insider Buying and Selling at Prosperity Bancshares In related news, Director Ned S. Holmes sold 600 shares of the company’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $69.30, for a total transaction of $41,580.00. Following the completion of the sale, the director directly owned 40,400 shares of the company’s stock, valued at approximately $2,799,720. This represents a 1.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders have sold 12,100 shares of company stock worth $872,923. Insiders own 3.96% of the company’s stock.
Prosperity Bancshares Price Performance PB opened at $72.94 on Thursday. The stock has a market capitalization of $7.36 billion, a PE ratio of 12.64, a P/E/G ratio of 0.81 and a beta of 0.64. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.75 and a current ratio of 0.75. The company’s 50 day simple moving average is $72.98 and its 200 day simple moving average is $70.49. Prosperity Bancshares, Inc. has a 1 year low of $61.06 and a 1 year high of $77.20. Prosperity Bancshares (NYSE:PB – Get Free Report) last issued its earnings results on Wednesday, July 29th. The bank reported $1.62 earnings per share for the quarter, beating analysts’ consensus estimates of $1.50 by $0.12. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%.The firm had revenue of $369.18 million for the quarter, compared to analysts’ expectations of $380.73 million. During the same quarter last year, the firm earned $1.42 earnings per share. The firm’s revenue for the quarter was up 25.9% compared to the same quarter last year. As a group, sell-side analysts expect that Prosperity Bancshares, Inc. will post 6.45 EPS for the current year.
Prosperity Bancshares Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be issued a dividend of $0.60 per share. The ex-dividend date is Tuesday, September 15th. This represents a $2.40 annualized dividend and a dividend yield of 3.3%. Prosperity Bancshares’s payout ratio is presently 41.59%.
Wall Street Analyst Weigh In PB has been the topic of a number of research analyst reports. Cantor Fitzgerald reissued an “overweight” rating and set a $80.00 price objective on shares of Prosperity Bancshares in a report on Tuesday, June 23rd. TD Cowen boosted their target price on Prosperity Bancshares from $82.00 to $84.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Weiss Ratings raised Prosperity Bancshares from a “buy (b-)” rating to a “buy (b)” rating in a research note on Wednesday, July 29th. Wall Street Zen upgraded shares of Prosperity Bancshares from a “sell” rating to a “hold” rating in a research report on Saturday, August 1st. Finally, Piper Sandler increased their price objective on shares of Prosperity Bancshares from $75.00 to $80.00 and gave the company a “neutral” rating in a research note on Thursday, July 30th. Five analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $78.36.
View Our Latest Stock Analysis on PB
(Free Report)
Prosperity Bancshares, Inc is a holding company for Prosperity Bank, offering a broad range of commercial and consumer banking services across Texas, Oklahoma, Arkansas and Louisiana. Through its network of branches and digital platforms, the company provides deposit products, business and real estate lending, treasury management, mortgage origination and servicing, as well as wealth management and trust services.
Originally chartered in 1911 as First National Bank in McKinney, Texas, the organization rebranded to Prosperity Bank in 2009 following a series of strategic acquisitions aimed at deepening its regional presence.
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Prosperity Bancshares continues to deliver robust earnings growth, driven by an expanding net interest margin and M&A activity. Last quarter, PB's net interest margin rose 29 basis points to 3.47%. While already-low funding costs will be hard to improve, fixed-asset repricing can fuel further margin expansion from here. Strong capital levels are enabling ongoing M&A, with recent acquisitions fueling double-digit volume growth last quarter.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Houston, Prosperity Bancshares (PB - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 8.6%. The financial holding company is paying out a dividend of $0.60 per share at the moment, with a dividend yield of 3.2% compared to the Banks - Southwest industry's yield of 1.6% and the S&P 500's yield of 1.33%.
Looking at dividend growth, the company's current annualized dividend of $2.40 is up 2.6% from last year. Over the last 5 years, Prosperity Bancshares has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.50%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Prosperity Bancshares's current payout ratio is 40%, meaning it paid out 40% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for PB for this fiscal year. The Zacks Consensus Estimate for 2026 is $6.45 per share, which represents a year-over-year growth rate of 13.36%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, PB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Investors interested in Banks - Southwest stocks are likely familiar with Prosperity Bancshares (PB - Free Report) and Cullen/Frost Bankers (CFR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Prosperity Bancshares has a Zacks Rank of #2 (Buy), while Cullen/Frost Bankers has a Zacks Rank of #3 (Hold). This means that PB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
PB currently has a forward P/E ratio of 11.62, while CFR has a forward P/E of 15.60. We also note that PB has a PEG ratio of 0.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CFR currently has a PEG ratio of 2.60.
Another notable valuation metric for PB is its P/B ratio of 0.91. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CFR has a P/B of 2.34.
These metrics, and several others, help PB earn a Value grade of B, while CFR has been given a Value grade of C.
PB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PB is likely the superior value option right now.
Prosperity Bancshares (PB - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Prosperity Bancshares basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Prosperity Bancshares imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Prosperity BancsharesThis financial holding company is expected to earn $6.45 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Prosperity Bancshares. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.2%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Prosperity Bancshares to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Prosperity Bancshares delivered Q2 2026 earnings and revenue beats, supported by recent acquisitions and strong Texas/Oklahoma market exposure. PB's premium valuation is justified by robust core metrics: low-cost deposits, above-average dividend yield (3.21%), and strong efficiency and asset quality ratios. Recent M&A activity, including the Stellar Bancorp acquisition, positions PB for continued growth but introduces integration and tangible book value dilution risks.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Houston, Prosperity Bancshares (PB - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 8.26%. The financial holding company is paying out a dividend of $0.60 per share at the moment, with a dividend yield of 3.21% compared to the Banks - Southwest industry's yield of 1.6% and the S&P 500's yield of 1.33%.
Looking at dividend growth, the company's current annualized dividend of $2.40 is up 2.6% from last year. Over the last 5 years, Prosperity Bancshares has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.50%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Prosperity Bancshares's current payout ratio is 41%, meaning it paid out 41% of its trailing 12-month EPS as dividend.
PB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $6.34 per share, with earnings expected to increase 11.42% from the year ago period.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, PB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Key Takeaways Prosperity Bancshares beat Q2 earnings estimates as revenues rose 25.9% year over year.PB benefited from higher net interest income, merger contributions, and a Visa Class B-2 stock gain.Prosperity Bancshares completed the Stellar Bancorp acquisition and continued integration efforts. Prosperity Bancshares, Inc.’s (PB - Free Report) second-quarter 2026 adjusted earnings of $1.62 per share surpassed the Zacks Consensus Estimate of $1.54. The bottom line increased 14.1% from the year-ago quarter.
Subsequent to the reported quarter, Prosperity Bancshares completed the acquisition of Stellar Bancorp and its subsidiary, Steller Bank, on July 1, 2026. The company also continued to integrate the acquisitions of American Bank Holding Corporation and Southwest Bancshares, which were completed earlier this year.
Results benefited from higher net interest income (NII) and non-interest income alongside no provision for credit losses. Higher loans and deposit balances were another positive. However, increased operating expenses partly offset these tailwinds.
The results excluded the net gain from the Visa Class B-2 stock exchange, investment securities sales, and merger-related expenses. Including non-recurring items, net income available to common shareholders was $168.6 million, or $1.67 per share, compared with $135.2 million or $1.42 per share in the year-ago quarter. Our estimate for net income available to common shareholders was $111.5 million.
PB’s Revenues Improve, Expenses RiseTotal revenues were $391.3 million, up 25.9% year over year. The top line surpassed the Zacks Consensus Estimate of $376.1 million.
NII rose 23.5% year over year to $330.6 million. Also, the net interest margin (NIM), on a tax-equivalent basis, expanded 29 basis points to 3.47%. Our estimates for NII and NIM were pegged at $326.2 million and 3.50%, respectively.
Non-interest income totaled $60.7 million, up 41.2% year over year. The increase was primarily driven by the American and Southwest mergers and an $8.2 million gain on the Visa Class B-2 stock exchange, net of investment securities sales. Our estimate for the metric was $46.7 million and did not include Visa share sale gains.
Non-interest expenses were $176.2 million, up 27.1% year over year. The increase was primarily due to higher salaries and benefits and additional expenses related to the American and Southwest operations. Our estimate for non-interest expenses was $228.1 million.
The efficiency ratio improved to 45.99% from 44.80% in the prior-year quarter.
PB’s Balance Sheet ExpandsAs of June 30, 2026, total assets were $43.87 billion, up 14.2% year over year, primarily due to the acquisitions of American Bank Holding Corporation and Southwest Bancshares.
Total loans were $25.03 billion, up 12.8% year over year. Deposits increased 18.7% year over year to $32.6 billion, mainly reflecting the impact of the two acquisitions. Our estimates for total loans and total deposits were $25.3 billion and $33.02 billion, respectively.
PB’s Capital Ratios Decline, Profitability Ratios ImproveAs of June 30, 2026, the common equity tier 1 ratio was 15.94%, down from 17.10% in the year-ago quarter. The total risk-based capital ratio declined to 17.38% from 18.35% in the prior-year quarter. The equity-to-assets ratio was 18.93%, down from 19.78% as of June 30, 2025.
At the end of the second quarter, return on average assets was 1.55%, up from 1.41% in the prior-year quarter. The return on average common equity was 8.14%, up from 7.13% in the prior-year quarter.
PB’s Credit Quality: A Mixed BagAs of June 30, 2026, non-performing assets were $130.6 million, up 18.2% from the year-ago period. Net charge-offs were $2.2 million, down from $3 million in the same quarter of 2025, primarily reflecting the resolution of purchased credit deteriorated (PCD) loans.
The company reported no provision for credit losses during the reported quarter, unchanged from the year-ago period. The ratio of allowance for credit losses on loans was $1.53% of the total loans, down from 1.56% a year earlier.
Prosperity Bancshares’s Share Repurchase UpdateIn the reported quarter, the company repurchased 0.2 million shares at an average weighted price of $68.34 per share for a total of $13.7 million under its ongoing 2026 stock buyback program.
Our Take on PBProsperity Bancshares’ inorganic expansion strategy is expected to support revenue growth and strengthen its Texas franchise. The company’s favorable deposit mix and solid NIM remain key positives. However, rising expenses may hurt the bottom line to some extent.
Currently, Prosperity Bancshares carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of PB’s Peer BanksBOK Financial Corporation's (BOKF - Free Report) second-quarter 2026 adjusted earnings of $2.59 per share surpassed the Zacks Consensus Estimate of $2.56. The bottom line jumped 18.3% from the prior-year quarter.
BOKF’s results benefited from higher NII and total fees and commissions. An increase in loans was another positive. However, the rise in operating expenses was a major undermining factor.
Bank OZK’s (OZK - Free Report) second-quarter 2026 earnings per share of $1.49 surpassed the Zacks Consensus Estimate of $1.46. However, the bottom line declined 5.7% year over year from $1.58.
Results reflected higher non-interest income and deposit balances. However, higher provisions, rising expenses, lower NII, and deteriorating credit quality were headwinds for OZK.
Prosperity Bancshares (PB - Free Report) came out with quarterly earnings of $1.62 per share, beating the Zacks Consensus Estimate of $1.54 per share. This compares to earnings of $1.42 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.20%. A quarter ago, it was expected that this financial holding company would post earnings of $1.41 per share when it actually produced earnings of $1.5, delivering a surprise of +6.38%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Prosperity Bancshares, which belongs to the Zacks Banks - Southwest industry, posted revenues of $391.26 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.03%. This compares to year-ago revenues of $310.7 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Prosperity Bancshares shares have added about 6.4% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Prosperity Bancshares?While Prosperity Bancshares has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Prosperity Bancshares was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.57 on $492.63 million in revenues for the coming quarter and $6.25 on $1.73 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southwest is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Cullen/Frost Bankers (CFR - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30.
This financial holding company is expected to post quarterly earnings of $2.53 per share in its upcoming report, which represents a year-over-year change of +5.9%. The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level.
Cullen/Frost Bankers' revenues are expected to be $594.16 million, up 4.6% from the year-ago quarter.
For the quarter ended June 2026, Prosperity Bancshares (PB - Free Report) reported revenue of $391.26 million, up 25.9% over the same period last year. EPS came in at $1.62, compared to $1.42 in the year-ago quarter.
The reported revenue represents a surprise of +4.03% over the Zacks Consensus Estimate of $376.11 million. With the consensus EPS estimate being $1.54, the EPS surprise was +5.2%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Prosperity Bancshares performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Interest Margin (Tax Equivalent Basis): 3.5% versus 3.5% estimated by five analysts on average.Efficiency Ratio: 46% compared to the 49.8% average estimate based on five analysts.Net charge-offs to average loans: 0% versus 0.1% estimated by four analysts on average.Average balance - Total interest-earning assets: $38.31 billion versus $37.98 billion estimated by four analysts on average.Total nonperforming loans: $119.27 million versus $107.56 million estimated by three analysts on average.Total nonperforming assets: $130.58 million compared to the $122.65 million average estimate based on three analysts.Total Noninterest Income: $60.71 million versus $47 million estimated by five analysts on average.Net Interest Income (Tax Equivalent Basis): $331.13 million versus $331.73 million estimated by four analysts on average.Net Interest Income: $330.55 million versus $330.16 million estimated by three analysts on average.Credit card, debit card and ATM card income: $10.3 million versus the two-analyst average estimate of $9.79 million.Nonsufficient funds (NSF) fees: $11.35 million versus $10.82 million estimated by two analysts on average.Service charges on deposit accounts: $9.24 million versus the two-analyst average estimate of $8.2 million.View all Key Company Metrics for Prosperity Bancshares here>>>
Shares of Prosperity Bancshares have returned +0.7% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Completed the merger of Stellar Bancorp, Inc. into Prosperity Bancshares on July 1, 2026 Second quarter net interest margin increased 29 basis points to 3.47% compared to second quarter 2025 Second quarter net income of $168.6 million, and $162.7 million(1) excluding non-recurring items, an increase of 20.4% compared to second quarter 2025 Second quarter earnings per share (diluted) of $1.67, or $1.62 excluding non-recurring items, an increase of 14.1% compared to second quarter 2025 Noninterest-bearing deposits of $10.7 billion, representing 32.9% of total deposits Allowance for credit losses on loans and on off-balance sheet credit exposure of $420.5 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans, of 1.61%(1) Nonperforming assets remain low at 0.34% of second quarter average interest-earning assets Return (annualized) on second quarter average assets of 1.55%, average common equity of 8.14% and average tangible common equity of 15.48%(1) Repurchased 200 thousand shares of common stock during second quarter 2026, and 1.0 million shares during 2026 , /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB) ("Prosperity Bancshares"), the parent company of Prosperity Bank® (collectively, "Prosperity"), reported net income of $168.6 million for the quarter ended June 30, 2026, compared with $135.2 million for the same period in 2025. Net income per diluted common share was $1.67 for the quarter ended June 30, 2026, compared with $1.42 for the same period in 2025. On January 1, 2026, American Bank Holding Corporation ("American") merged into Prosperity Bancshares and American Bank, N.A. ("American Bank") merged into Prosperity Bank (collectively, the "American Merger"), and on February 1, 2026, Southwest Bancshares, Inc. ("Southwest") merged into Prosperity Bancshares and Texas Partners Bank ("Texas Partners") merged into Prosperity Bank (collectively, the "Southwest Merger"). During the second quarter of 2026, Prosperity incurred a net gain of $8.2 million, or $0.06(1) per diluted common share as a result of the exchange and conversion of Visa Class B-2 stock and the sale of investment securities, partially offset by merger related expenses of $755 thousand, or $0.01(1)per diluted common share. Excluding the net gain and merger related expenses, net income was $162.7(1) million and net income per diluted common share was $1.62(1) for the second quarter of 2026. The annualized return on second quarter average assets was 1.55%. Nonperforming assets remained low at 0.34% of second quarter average interest-earning assets. Subsequent to quarter end, on July 1, 2026, Stellar Bancorp, Inc. ("Stellar") merged into Prosperity Bancshares and Stellar Bank ("Stellar Bank") merged into Prosperity Bank (collectively, the "Stellar Merger").
"I am excited to announce that on July 1, 2026, Prosperity Bancshares completed the merger of Stellar and its wholly owned subsidiary Stellar Bank, headquartered in Houston, Texas. Stellar Bank operated 52 banking offices including its main office in Houston and banking offices in the Houston, Beaumont and East Texas areas and in Dallas, Texas. I am also pleased to announce that in connection with the mergers, Robert Franklin, former CEO of Stellar, and Joe Swinbank, a former Stellar director, have joined the Prosperity Bancshares Board of Directors and that Ray Vitulli, former CEO of Stellar Bank, and Pat Parsons, a former Stellar Bank director, have joined the Prosperity Bank Board of Directors. Pat was instrumental in building Stellar Bank's Beaumont franchise over the years," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.
"Texas has one of the strongest and most diverse state economies in the U.S., ranking as the second largest by GDP after California and approximately the 8th largest economy in the world. Oklahoma has a smaller but stable economy, heavily influenced by oil and gas, with more modest growth. Texas continues to shine as more people and companies move to the state because of the business-friendly political structure and no state income tax," stated Zalman.
"Excluding the gain on Visa Class B-2 stock exchange net of investment securities sales and merger related expenses, as noted above, net income increased 20.4% and diluted earnings per share increased 14.1% compared with the same period last year," added Zalman.
"We are pleased with our growth. Giving effect to the Stellar Bank merger, our assets are over $53 billion compared with $38 billion as of June 30, 2025. This represents a 39% growth over the year. I want to thank everyone involved in our company for helping to make it the success it has become," concluded Zalman.
Results of Operations for the Three Months Ended June 30, 2026
For the three months ended June 30, 2026, net income was $168.6 million(2) or $1.67 per diluted common share compared with $135.2 million(3) or $1.42 per diluted common share for the same period in 2025. Net income and net income per diluted common share for the second quarter of 2026 were primarily impacted by an increase in net interest income and a gain on Visa Class B-2 stock exchange net of investment securities sales of $8.2 million, partially offset by an increase in noninterest expenses related to the American and Southwest operations and an increase in provision for income taxes. On a linked quarter basis, net income was $168.6 million(2) or $1.67 per diluted common share for the three months ended June 30, 2026, compared with $116.3 million(4) or $1.16 for the three months ended March 31, 2026. The change was primarily due to an increase in net interest income, lower merger related expenses and a gain on Visa Class B-2 stock exchange net of investment securities sales of $8.2 million. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended June 30, 2026, were 1.55%, 8.14% and 15.48%(1), respectively.
Excluding the gain on Visa Class B-2 stock exchange net of investment securities sales, net of tax, and merger related expenses, net of tax, net income was $162.7(1)million and earnings per diluted common share was $1.62(1) for the three months ended June 30, 2026, and annualized returns on average assets, average common equity and average tangible common equity were 1.50%(1), 7.85%(1) and 14.93%(1), respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale, write-down or write-up of assets and securities) was 45.99%(1) for the three months ended June 30, 2026, and excluding the merger related expenses, the efficiency ratio was 45.79%(1).
Net interest income before provision for credit losses was $330.6 million for the three months ended June 30, 2026, compared with $267.7 million for the same period in 2025, an increase of $62.8 million or 23.5%. The net interest margin on a tax equivalent basis was 3.47% for the three months ended June 30, 2026, compared with 3.18% for the same period in 2025. The changes to both measures were primarily due to the repricing of assets, a decrease in the average balance and average rate on other borrowings and the impact of the American Merger and the Southwest Merger. Net interest income before provision for credit losses increased $9.4 million or 2.9% to $330.6 million for the three months ended June 30, 2026, compared with $321.2 million for the three months ended March 31, 2026. The net interest margin on a tax equivalent basis was 3.47% for the three months ended June 30, 2026, compared with 3.51% for the three months ended March 31, 2026. The decrease was primarily due to one-time loan interest income from a nonaccrual loan in the first quarter of 2026.
Noninterest income was $60.7 million for the three months ended June 30, 2026, compared with $43.0 million for the same period in 2025, an increase of $17.7 million or 41.2%. The change was primarily due to the American Merger and the Southwest Merger and a gain on Visa Class B-2 stock exchange net of investment securities sales of $8.2 million. Noninterest income was $60.7 million for the three months ended June 30, 2026, compared with $46.5 million for the three months ended March 31, 2026, an increase of $14.2 million or 30.6%. The change was primarily due to a gain on Visa Class B-2 stock exchange net of investment securities sales of $8.2 million and an increase in other noninterest income.
Noninterest expense was $176.2 million for the three months ended June 30, 2026, compared with $138.6 million for the same period in 2025, an increase of $37.6 million. The change was primarily due to an increase in salaries and benefits and an increase in additional expenses related to three months of American and Southwest operations. Noninterest expense was $176.2 million for the three months ended June 30, 2026, compared with $217.3 million for the three months ended March 31, 2026, a decrease of $41.1 million, which was primarily due to lower merger related expenses.
Results of Operations for the Six Months Ended June 30, 2026
For the six months ended June 30, 2026, net income was $284.9 million(5) compared with $265.4 million(6) for the same period in 2025, an increase of $19.5 million or 7.3%. Net income per diluted common share was $2.84 for the six months ended June 30, 2026, compared with $2.79 for the same period in 2025, an increase of 1.8%. Net income and net income per diluted common share for the six months ended June 30, 2026, were impacted by the American Merger and the Southwest Merger, merger related expenses of $43.3 million and a gain on Visa Class B-2 stock exchange net of investment securities sales of $8.2 million. Returns on average assets, average common equity and average tangible common equity for the six months ended June 30, 2026, were 1.33%, 6.93% and 13.02%(1), respectively.
Excluding the merger related expenses, net of tax, and gain on Visa Class B-2 stock exchange net of investment securities sales, net of tax, net income was $312.5(1)million and earnings per diluted common share was $3.12(1) for the six months ended June 30, 2026, and annualized returns on average assets, average common equity and average tangible common equity were 1.46%(1), 7.60%(1)and 14.29%(1), respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale or write-down of assets and securities) was 52.44%(1) for the six months ended June 30, 2026; and excluding merger related expenses, the efficiency ratio was 46.67%(1).
Net interest income before provision for credit losses for the six months ended June 30, 2026, was $651.7 million compared with $533.1 million for the same period in 2025, an increase of $118.6 million or 22.2%. The net interest margin on a tax equivalent basis for the six months ended June 30, 2026, was 3.49% compared with 3.16% for the same period in 2025. The changes to both measures were primarily due to the repricing of assets, the impact of the American Merger and the Southwest Merger and a decrease in the average balance and average rate on other borrowings.
Noninterest income was $107.2 million for the six months ended June 30, 2026, compared with $84.3 million for the same period in 2025, an increase of $22.9 million or 27.2%, primarily due to the American Merger and the Southwest Merger and a gain on Visa Class B-2 stock exchange net of investment securities sales of $8.2 million.
Noninterest expense was $393.5 million for the six months ended June 30, 2026, compared with $278.9 million for the same period in 2025, an increase of $114.6 million, primarily due to an increase in merger related expenses of $43.3 million, an increase in salaries and benefits and an increase in additional expenses related to six months of American operations and five months of Southwest operations.
Balance Sheet Information
Prosperity had $43.873 billion in total assets at June 30, 2026, an increase of $5.455 billion or 14.2%, compared with $38.417 billion at June 30, 2025, primarily due to the American Merger and the Southwest Merger. Linked quarter total assets increased by $253.3 million compared with $43.619 billion at March 31, 2026.
Loans were $25.028 billion at June 30, 2026, an increase of $2.831 billion or 12.8% from $22.197 billion at June 30, 2025. Linked quarter loans decreased $260.0 million from $25.288 billion at March 31, 2026. Loans, excluding Warehouse Purchase Program loans, were $23.738 billion at June 30, 2026, compared with $20.910 billion at June 30, 2025, an increase of $2.828 billion or 13.5%, and compared with $23.855 billion at March 31, 2026, a decrease of $117.0 million.
Deposits were $32.600 billion at June 30, 2026, an increase of $5.126 billion or 18.7% from $27.473 billion at June 30, 2025, primarily due to the American Merger and the Southwest Merger. Linked quarter deposits decreased $33.1 million from $32.633 billion at March 31, 2026.
Asset Quality
Nonperforming assets totaled $130.6 million or 0.34% of quarterly average interest-earning assets at June 30, 2026, compared with $110.5 million or 0.33% of quarterly average interest-earning assets at June 30, 2025 and $122.1 million or 0.33% of quarterly average interest-earning assets at March 31, 2026.
The allowance for credit losses on loans and off-balance sheet credit exposures was $420.5 million at June 30, 2026, compared with $383.7 million at June 30, 2025 and $421.5 million at March 31, 2026. There was no provision for credit losses for the three months and six months ended June 30, 2026 and 2025.
The allowance for credit losses on loans was $382.8 million or 1.53% of total loans at June 30, 2026, compared with $346.1 million or 1.56% of total loans at June 30, 2025 and $383.8 million or 1.52% of total loans at March 31, 2026. The allowance for credit losses on loans increased during the six months ended June 30, 2026 due to the American Merger and the Southwest Merger, of which $47.5 million was attributable to the American Merger and $45.1 million was attributable to the Southwest Merger. Excluding Warehouse Purchase Program loans, the allowance for credit losses on loans to total loans was 1.61%(1) at June 30, 2026, compared with 1.66%(1) at June 30, 2025 and 1.61%(1) at March 31, 2026.
Net charge-offs were $2.2 million for the three months ended June 30, 2026, compared with net charge-offs of $3.0 million for the three months ended June 30, 2025 and $41.3 million for the three months ended March 31, 2026. Net charge-offs for the three months ended June 30, 2026, included $962 thousand related to resolved purchased credit deteriorated ("PCD") loans, which had specific reserves that were allocated to the charge-offs. For the three months ended June 30, 2026, $10.3 million of reserves on resolved PCD loans without any related charge-offs were released to the general reserve.
Net charge-offs were $43.5 million for the six months ended June 30, 2026, compared with net charge-offs of $5.7 million for the six months ended June 30, 2025. Net charge-offs for the six months ended June 30, 2026, included a $39.2 million increase in net charge-offs for commercial and industrial loans. Additionally, due to the American Merger and the Southwest Merger, reserves increased by Day One accounting for PCD loans of $53.3 million and Day One accounting for purchased seasoned loans ("PSLs") of $39.3 million. Further, $12.3 million of reserves on resolved PCD loans without any related charge-offs were released to the general reserve.
Visa Class B-2 Stock Exchange
During the second quarter 2026, Prosperity tendered all of its shares of Visa, Inc. ("Visa") Class B-2 common stock in exchange for a combination of Visa Class B-3 common stock and Visa Class C common stock, pursuant to the terms and subject to the conditions of Visa's public exchange offer, which expired on May 8, 2026. Prosperity recorded an unrealized gain of $12.2 million during the second quarter 2026 based on the conversion privilege of the Class C common stock and the closing price of Visa Class A common stock. In the exchange, Prosperity received 24,246 shares of Class B-3 stock, recorded at zero cost basis, and 9,137 shares of Class C common stock and subsequently sold 3,045 shares of Class C stock. Prosperity intends to sell all remaining shares of Class C stock as permitted by the exchange agreement.
Dividend
Prosperity Bancshares declared a third quarter 2026 cash dividend of $0.60 per share to be paid on October 1, 2026, to all shareholders of record as of September 15, 2026.
Stock Repurchase Program
On January 26, 2026, Prosperity Bancshares announced a stock repurchase program under which up to 5%, or approximately 4.87 million shares, of its outstanding common stock may be acquired over a one-year period expiring on January 26, 2027, at the discretion of management. Under its 2026 stock repurchase program, Prosperity Bancshares repurchased approximately 200 thousand shares of its common stock at an average weighted price of $68.34 per share for a total of $13.7 million during the three months ended June 30, 2026, and approximately 1.04 million shares of its common stock at an average weighted price of $68.19 per share for a total of $70.8 million during the six months ended June 30, 2026.
Acquisition of Stellar Bancorp, Inc.
On July 1, 2026, Prosperity Bancshares completed the merger of Stellar and its wholly owned subsidiary Stellar Bank, headquartered in Houston, Texas. Stellar Bank operated 52 banking offices including its main office in Houston and banking offices in the Houston, Beaumont and East Texas areas and in Dallas, Texas. As of June 30, 2026, Stellar, on a consolidated basis, reported total assets of $10.413 billion, total loans of $7.510 billion and total deposits of $8.716 billion.
Pursuant to the terms of the definitive agreement, Prosperity Bancshares issued 19,371,499 shares of its common stock plus approximately $578.66 million in cash for each outstanding share of Stellar common stock.
Acquisition of Southwest Bancshares, Inc.
On February 1, 2026, Prosperity completed the acquisition of Southwest and its wholly owned subsidiary Texas Partners, headquartered in San Antonio, Texas. Texas Partners operated 11 banking offices in Central Texas including its main office in San Antonio, and banking offices in the San Antonio area, Austin and the Hill Country.
Pursuant to the terms of the definitive agreement, Prosperity Bancshares issued 4,094,974 shares of its common stock for all outstanding shares of Southwest common stock. This resulted in goodwill of $134.9 million as of June 30, 2026, which does not include all the subsequent fair value adjustments that have not yet been finalized. Additionally, Prosperity recognized $33.8 million of core deposit intangibles as of June 30, 2026.
Acquisition of American Bank Holding Corporation
On January 1, 2026, Prosperity completed the acquisition of American and its wholly owned subsidiary American Bank, headquartered in Corpus Christi, Texas. American Bank operated 18 banking offices and two loan production offices in South and Central Texas including its main office in Corpus Christi, and banking offices in San Antonio, Austin, Victoria and the greater Corpus Christi area including Port Aransas and Rockport and a loan production office in Houston, Texas.
Pursuant to the terms of the definitive agreement, Prosperity Bancshares issued 4,439,938 shares of its common stock for all outstanding shares of American common stock. This resulted in goodwill of $185.9 million as of June 30, 2026, which does not include all the subsequent fair value adjustments that have not yet been finalized. Additionally, Prosperity recognized $31.1 million of core deposit intangibles as of June 30, 2026.
Conference Call
Prosperity's management team will host a conference call on Wednesday, July 29, 2026, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's second quarter 2026 earnings. Individuals and investment professionals may participate in the call by dialing 877-883-0383 for domestic participants, or 412-902-6506 for international participants. The participant elite entry number is 9578428.
Alternatively, individuals may listen to the live webcast of the presentation by visiting Prosperity's website at www.prosperitybankusa.com. The webcast may be accessed from Prosperity's Investor Relations page by selecting "Presentations, Webcasts & Calls" from the menu and following the instructions.
Non-GAAP Financial Measures
Prosperity's management uses certain non-GAAP financial measures to evaluate its performance. Specifically, for internal planning and forecasting purposes, Prosperity reviews each of diluted earnings per share, return on average assets, return on average common equity, and return on average tangible common equity, in each case excluding merger related expenses, net of tax, FDIC special assessment, net of tax and net gain on the sale or write-up of securities; return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses to total loans excluding Warehouse Purchase Program loans; the efficiency ratio, excluding net gains and losses on the sale and securities, write-down or write-up of assets; and the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses, and FDIC special assessment. Prosperity believes these non-GAAP financial measures provide information useful to investors in understanding Prosperity's financial results and their presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting Prosperity's business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. Further, Prosperity believes that these non-GAAP financial measures provide useful information by excluding certain items that may not be indicative of its core operating earnings and business outlook. These non-GAAP financial measures should not be considered a substitute for, nor of greater importance than, GAAP basis financial measures and results; Prosperity strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. Please refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures to the nearest respective GAAP financial measures.
Prosperity Bancshares, Inc. ®
As of June 30, 2026, Prosperity Bancshares, Inc.® is a $43.873 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.
Prosperity currently operates 363 full-service banking locations: 62 in the Houston area, including The Woodlands; 36 in the South Texas area including Corpus Christi and Victoria; 61 in the Dallas/Fort Worth area; 21 in the East Texas area; 28 in the Central Texas area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene, Amarillo and Wichita Falls; 15 in the Bryan/College Station area, 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area; 18 in the Central, South Texas and San Antonio areas doing business as American Bank; 11 in the San Antonio area doing business as Texas Partners Bank and 52 in Houston, Beaumont, Dallas and the East Texas areas doing business as Stellar Bank.
Cautionary Notes on Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity's management on the conference call may contain, forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, oral or written forward-looking statements may also be included in other information released to the public. Such forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "believe," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for credit losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for credit losses, changes in deposits, borrowings and the investment securities portfolio, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of any proposed transactions, and statements about the assumptions underlying any such statement. These forward‑looking statements are not guarantees of future performance and are based on expectations and assumptions Prosperity currently believes to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of Prosperity's control, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. These risks and uncertainties include, but are not limited to, whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; changes in trade policies by the United States or other countries, such as tariffs or retaliatory tariffs; and the effect, impact, potential duration or other implications of weather and climate-related events. Prosperity disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. These and various other factors are discussed in Prosperity's Annual Report on Form 10-K for the year ended December 31, 2025, and other reports and statements Prosperity has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.
(1)
Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(2)
Includes purchase accounting adjustments of $4.6 million, net of tax, primarily comprised of loan discount accretion of $4.0 million, and net gain on sale or write-up of securities of $8.2 million for the three months ended June 30, 2026.
(3)
Includes purchase accounting adjustments of $2.8 million, net of tax, primarily comprised of loan discount accretion of $3.1 million for the three months ended June 30, 2025.
(4)
Includes purchase accounting adjustments of $4.8 million, net of tax, primarily comprised of loan discount accretion of $3.7 million, and merger related provision for credit losses of $42.5 million for the three months ended March 31, 2026.
(5)
Includes purchase accounting adjustments of $9.4 million, net of tax, primarily comprised of loan discount accretion of $7.8 million, merger related provision for credit losses of $43.3 million and net gain on sale or write-up of securities of $8.2 million for the six months ended June 30, 2026.
(6)
Includes purchase accounting adjustments of $6.0 million, net of tax, primarily comprised of loan discount accretion of $6.4 million for the six months ended June 30, 2025.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(In thousands)
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Balance Sheet Data (at period end)
Loans held for sale
$
18,656
$
21,925
$
14,155
$
11,297
$
6,004
Loans held for investment
23,719,186
23,832,909
20,486,415
20,738,294
20,903,944
Loans held for investment - Warehouse Purchase
Program
1,290,156
1,433,152
1,304,798
1,278,178
1,287,440
Total loans
25,027,998
25,287,986
21,805,368
22,027,769
22,197,388
Investment securities(A)
12,339,080
11,951,591
10,613,425
10,232,462
10,608,104
Federal funds sold
194
209
217
210
197
Allowance for credit losses on loans
(382,841)
(383,840)
(333,742)
(339,626)
(346,084)
Cash and due from banks
1,683,062
1,547,967
1,747,511
1,766,115
1,304,993
Goodwill
3,823,920
3,822,283
3,503,127
3,503,127
3,503,127
Core deposit intangibles, net
105,582
111,243
51,605
55,194
58,796
Other real estate owned
11,296
13,257
13,296
13,750
7,874
Fixed assets, net
428,478
429,775
383,449
378,776
374,602
Other assets
835,742
838,712
679,169
692,692
708,355
Total assets
$
43,872,511
$
43,619,183
$
38,463,425
$
38,330,469
$
38,417,352
Noninterest-bearing deposits
$
10,739,937
$
10,580,920
$
9,467,911
$
9,522,028
$
9,426,657
Interest-bearing deposits
21,859,750
22,051,836
19,014,573
18,260,066
18,046,754
Total deposits
32,599,687
32,632,756
28,482,484
27,782,094
27,473,411
Other borrowings
2,400,000
2,200,000
1,950,000
2,400,000
2,900,000
Securities sold under repurchase agreements
199,576
176,099
201,216
185,797
183,572
Subordinated notes and junior subordinated debentures
70,000
76,186
—
—
—
Allowance for credit losses on off-balance sheet credit
exposures
37,646
37,646
37,646
37,646
37,646
Other liabilities
260,343
288,645
175,939
259,994
222,987
Total liabilities
35,567,252
35,411,332
30,847,285
30,665,531
30,817,616
Shareholders' equity(B)
8,305,259
8,207,851
7,616,140
7,664,938
7,599,736
Total liabilities and equity
$
43,872,511
$
43,619,183
$
38,463,425
$
38,330,469
$
38,417,352
(A)
Includes ($319), $44, ($375), ($1,987) and ($1,657) in unrealized losses on available for sale securities for the quarterly periods ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.
(B)
Includes ($251), $35, ($296), ($1,570) and ($1,309) in after-tax unrealized losses on available for sale securities for the quarterly periods ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(In thousands)
Three Months Ended
Year-to-Date
Jun 30,
2026
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Income Statement Data
Interest income:
Loans
$
369,574
$
361,756
$
321,516
$
329,445
$
325,490
$
731,330
$
644,513
Securities(C)
81,200
70,531
56,767
58,207
57,836
151,731
115,722
Federal funds sold and other earning assets
8,719
9,488
8,364
10,455
9,438
18,207
25,334
Total interest income
459,493
441,775
386,647
398,107
392,764
901,268
785,569
Interest expense:
Deposits
107,084
104,237
94,625
95,965
93,790
211,321
189,387
Other borrowings
20,094
14,783
16,028
27,613
30,101
34,877
60,593
Securities sold under repurchase agreements
1,019
902
1,041
1,094
1,151
1,921
2,485
Subordinated notes and junior subordinated
debentures
746
703
—
—
—
1,449
—
Total interest expense
128,943
120,625
111,694
124,672
125,042
249,568
252,465
Net interest income
330,550
321,150
274,953
273,435
267,722
651,700
533,104
Provision for credit losses
—
—
—
—
—
—
—
Net interest income after provision for credit losses
330,550
321,150
274,953
273,435
267,722
651,700
533,104
Noninterest income:
Nonsufficient funds (NSF) fees
11,349
10,867
9,715
9,805
8,885
22,216
18,032
Credit card, debit card and ATM card income
10,303
9,483
9,462
9,446
9,761
19,786
18,500
Service charges on deposit accounts
9,235
8,680
7,618
7,317
7,645
17,915
15,053
Trust income
4,943
4,922
3,662
3,526
3,859
9,865
7,460
Mortgage income
1,363
1,280
954
931
965
2,643
1,974
Brokerage income
1,478
1,568
1,570
1,328
1,225
3,046
2,487
Bank owned life insurance income
2,476
2,598
2,117
2,111
1,985
5,074
4,100
Net gain (loss) on sale or write-down of assets
(42)
318
35
3
1,414
276
1,179
Net gain on sale or write-up of securities
8,235
—
—
—
—
8,235
—
Other noninterest income
11,365
6,758
7,647
6,771
7,243
18,123
15,498
Total noninterest income
60,705
46,474
42,780
41,238
42,982
107,179
84,283
Noninterest expense:
Salaries and benefits
110,965
109,211
88,384
87,949
87,296
220,176
176,772
Net occupancy and equipment
10,685
10,654
9,379
9,395
9,168
21,339
18,314
Credit and debit card, data processing and
software amortization
16,121
18,114
12,621
12,515
12,056
34,235
23,478
Regulatory assessments and FDIC insurance
5,287
6,041
1,600
5,198
5,508
11,328
11,297
Core deposit intangibles amortization
5,661
5,259
3,588
3,602
3,610
10,920
7,251
Depreciation
5,795
5,548
5,155
4,966
4,779
11,343
9,553
Communications
4,271
3,834
3,528
3,480
3,507
8,105
6,980
Other real estate expense
350
341
219
314
204
691
344
Net (gain) loss on sale or write-down of other
real estate
(41)
(41)
109
(81)
(222)
(82)
(252)
Merger related expenses
755
42,516
268
62
—
43,271
—
Other noninterest expense
16,327
15,810
13,861
11,235
12,659
32,137
25,129
Total noninterest expense
176,176
217,287
138,712
138,635
138,565
393,463
278,866
Income before income taxes
215,079
150,337
179,021
176,038
172,139
365,416
338,521
Provision for income taxes
46,496
34,070
39,114
38,482
36,984
80,566
73,141
Net income available to common shareholders
$
168,583
$
116,267
$
139,907
$
137,556
$
135,155
$
284,850
$
265,380
(C)
Interest income on securities was reduced by net premium amortization of $3,790, $3,829, $4,668, $2,877, and $4,926 for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively, and $7,619 and $9,953 for the six months ended June 30, 2026, and 2025, respectively.
Prosperity Bancshares, Inc. ®
Financial Highlights (Unaudited)
(Dollars and share amounts in thousands, except per share data and market prices)
Three Months Ended
Year-to-Date
Jun 30,
2026
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Profitability
Net income (D) (E)
$
168,583
$
116,267
$
139,907
$
137,556
$
135,155
$
284,850
$
265,380
Basic earnings per share
$
1.67
$
1.16
$
1.49
$
1.45
$
1.42
$
2.84
$
2.79
Diluted earnings per share
$
1.67
$
1.16
$
1.49
$
1.45
$
1.42
$
2.84
$
2.79
Return on average assets (F) (J)
1.55
%
1.10
%
1.49
%
1.44
%
1.41
%
1.33
%
1.37
%
Return on average common equity (F) (J)
8.14
%
5.70
%
7.30
%
7.18
%
7.13
%
6.93
%
7.03
%
Return on average tangible common
equity (F) (G) (J)
15.48
%
10.59
%
13.61
%
13.43
%
13.44
%
13.02
%
13.33
%
Tax equivalent net interest margin (D) (E) (H)
3.47
%
3.51
%
3.30
%
3.24
%
3.18
%
3.49
%
3.16
%
Efficiency ratio (G) (I) (K)
45.99
%
59.16
%
43.66
%
44.06
%
44.80
%
52.44
%
45.26
%
Liquidity and Capital Ratios
Equity to assets
18.93
%
18.82
%
19.80
%
20.00
%
19.78
%
18.93
%
19.78
%
Common equity tier 1 capital
15.94
%
15.45
%
17.55
%
17.53
%
17.10
%
15.94
%
17.10
%
Tier 1 risk-based capital
15.94
%
15.45
%
17.55
%
17.53
%
17.10
%
15.94
%
17.10
%
Total risk-based capital
17.38
%
16.63
%
18.80
%
18.78
%
18.35
%
17.38
%
18.35
%
Tier 1 leverage capital
11.12
%
11.22
%
11.93
%
11.90
%
11.62
%
11.12
%
11.62
%
Period end tangible equity to period end
tangible assets (G)
10.96
%
10.77
%
11.63
%
11.81
%
11.58
%
10.96
%
11.58
%
Other Data
Weighted-average shares used in computing
earnings per common share
Basic
100,783
99,825
94,044
95,093
95,277
100,306
95,271
Diluted
100,783
99,825
94,044
95,093
95,277
100,306
95,271
Period end shares outstanding
100,646
100,835
93,058
94,993
95,277
100,646
95,277
Cash dividends paid per common share
$
0.60
$
0.60
$
0.60
$
0.58
$
0.58
$
1.20
$
1.16
Book value per common share
$
82.52
$
81.40
$
81.84
$
80.69
$
79.76
$
82.52
$
79.76
Tangible book value per common share (G)
$
43.48
$
42.39
$
43.64
$
43.23
$
42.38
$
43.48
$
42.38
Common Stock Market Price
High
$
74.37
$
77.20
$
73.90
$
75.44
$
74.56
$
77.20
$
82.75
Low
$
65.90
$
63.20
$
61.07
$
64.27
$
61.57
$
63.20
$
61.57
Period end closing price
$
73.03
$
67.18
$
69.11
$
66.35
$
70.24
$
73.03
$
70.24
Employees – FTE (excluding overtime)
4,324
4,429
3,941
3,937
3,921
4,194
3,921
Number of banking centers
311
312
283
283
283
311
283
(D)
Includes purchase accounting adjustments for the periods presented as follows:
Three Months Ended
Year-to-Date
Jun 30,
2026
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Loan discount accretion
Purchased seasoned loans ("PSLs")
$3,104
$2,562
$2,926
$2,242
$2,486
$5,666
$5.101
PCD
$901
$1,186
$205
$613
$638
$2,087
$1,315
Securities net accretion
$1,462
$1,573
$342
$1,475
$409
$3,035
$1,114
Time deposits amortization
$(357)
$(699)
$(1)
$(1)
$(2)
$(1,056)
$(11)
(E)
Using effective tax rate of 21.6%, 22.7%, 21.8%, 21.9% and 21.5% for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025, respectively, and 22.0% and 21.6% for the six months ended June 30, 2026, and 2025, respectively.
(F)
Interim periods annualized.
(G)
Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(H)
Net interest margin for all periods presented is based on average balances on an actual 365-day basis.
(I)
Calculated by dividing total noninterest expense, excluding credit loss provisions, by net interest income plus noninterest income, excluding net gains and losses on the sale, write-down or write-up of assets and securities. Additionally, taxes are not part of this calculation.
(J)
For calculations of the annualized returns on average assets, average common equity and average tangible common equity excluding merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(K)
For calculations of the efficiency ratio excluding merger related expenses and FDIC special assessment refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures to the nearest respective GAAP financial measures.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
YIELD ANALYSIS
Three Months Ended
Jun 30, 2026
Mar 31, 2026
Jun 30, 2025
Average
Balance
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
(L)
Average
Balance
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
(L)
Average
Balance
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
(L)
Interest-earning assets:
Loans held for sale
$
17,858
$
281
6.31 %
$
15,800
$
238
6.11 %
$
9,813
$
166
6.79 %
Loans held for investment
23,750,036
350,967
5.93 %
23,469,020
344,596
5.95 %
20,907,400
306,671
5.88 %
Loans held for investment -
Warehouse Purchase Program
1,316,645
18,326
5.58 %
1,207,793
16,922
5.68 %
1,179,307
18,653
6.34 %
Total loans
25,084,539
369,574
5.91 %
24,692,613
361,756
5.94 %
22,096,520
325,490
5.91 %
Investment securities
12,258,188
81,200
2.66 %
(M)
11,469,762
70,531
2.49 %
(M)
10,867,856
57,836
2.13 %
(M)
Federal funds sold and other
earning assets
969,502
8,719
3.61 %
1,026,015
9,488
3.75 %
841,933
9,438
4.50 %
Total interest-earning assets
38,312,229
459,493
4.81 %
37,188,390
441,775
4.82 %
33,806,309
392,764
4.66 %
Allowance for credit losses on
loans
(383,281)
(330,133)
(348,310)
Noninterest-earning assets
5,508,187
5,361,351
4,933,215
Total assets
$
43,437,135
$
42,219,608
$
38,391,214
Interest-bearing liabilities:
Interest-bearing demand deposits
$
6,135,720
$
15,093
0.99 %
$
6,266,423
$
13,993
0.91 %
$
4,807,864
$
8,859
0.74 %
Savings and money market
deposits
10,928,333
53,661
1.97 %
10,583,184
50,719
1.94 %
8,944,897
45,796
2.05 %
Certificates and other time
deposits
4,787,401
38,330
3.21 %
4,830,369
39,525
3.32 %
4,366,510
39,135
3.59 %
Other borrowings
2,174,506
20,094
3.71 %
1,620,556
14,783
3.70 %
2,717,583
30,101
4.44 %
Securities sold under repurchase
agreements
194,250
1,019
2.10 %
177,719
902
2.06 %
194,577
1,151
2.37 %
Subordinated notes and junior
subordinated debentures
70,408
746
4.25 %
63,673
703
4.48 %
—
—
—
Total interest-bearing liabilities
24,290,618
128,943
2.13 %
(N)
23,541,924
120,625
2.08 %
(N)
21,031,431
125,042
2.38 %
(N)
Noninterest-bearing liabilities:
Noninterest-bearing demand
deposits
10,561,142
10,260,022
9,508,845
Allowance for credit losses on off-
balance sheet credit exposures
37,646
38,070
37,646
Other liabilities
259,201
218,810
227,002
Total liabilities
35,148,607
34,058,826
30,804,924
Shareholders' equity
8,288,528
8,160,782
7,586,290
Total liabilities and
shareholders' equity
$
43,437,135
$
42,219,608
$
38,391,214
Net interest income and margin
$
330,550
3.46 %
$
321,150
3.50 %
$
267,722
3.18 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment
580
575
574
Net interest income and margin
(tax equivalent basis)
$
331,130
3.47 %
$
321,725
3.51 %
$
268,296
3.18 %
(L)
Annualized and based on an actual 365-day basis.
(M)
Yield on securities was impacted by net premium amortization of $3,790, $3,829, and $4,926 for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively.
(N)
Total cost of funds, including noninterest bearing deposits, was 1.48%, 1.45%, and 1.64% for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
YIELD ANALYSIS
Year-to-Date
Jun 30, 2026
Jun 30, 2025
Average
Balance
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
(O)
Average
Balance
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
(O)
Interest-earning assets:
Loans held for sale
$
16,834
$
519
6.22 %
$
8,698
$
293
6.79 %
Loans held for investment
23,610,945
695,563
5.94 %
20,933,170
611,739
5.89 %
Loans held for investment - Warehouse Purchase Program
1,262,533
35,248
5.63 %
1,028,534
32,481
6.37 %
Total loans
24,890,312
731,330
5.93 %
21,970,402
644,513
5.92 %
Investment securities
11,866,153
151,731
2.58 %
(P)
10,942,215
115,722
2.13 %
(P)
Federal funds sold and other earning assets
996,109
18,207
3.69 %
1,140,915
25,334
4.48 %
Total interest-earning assets
37,752,574
901,268
4.81 %
34,053,532
785,569
4.65 %
Allowance for credit losses on loans
(356,855)
(349,506)
Noninterest-earning assets
5,435,129
4,967,987
Total assets
$
42,830,848
$
38,672,013
Interest-bearing liabilities:
Interest-bearing demand deposits
$
6,199,301
$
29,086
0.95 %
$
5,015,178
$
17,878
0.72 %
Savings and money market deposits
10,757,523
104,380
1.96 %
8,975,919
91,441
2.05 %
Certificates and other time deposits
4,808,748
77,855
3.26 %
4,396,350
80,068
3.67 %
Other borrowings
1,899,061
34,877
3.70 %
2,746,961
60,593
4.45 %
Securities sold under repurchase agreements
186,030
1,921
2.08 %
206,197
2,485
2.43 %
Subordinated notes and junior subordinated debentures
67,059
1,449
4.36 %
—
—
—
Total interest-bearing liabilities
23,917,722
249,568
2.10 %
(Q)
21,340,605
252,465
2.39 %
(Q)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits
10,412,431
9,506,704
Allowance for credit losses on off-balance sheet credit
exposures
37,857
37,646
Other liabilities
238,470
240,789
Total liabilities
34,606,480
31,125,744
Shareholders' equity
8,224,368
7,546,269
Total liabilities and shareholders' equity
$
42,830,848
$
38,672,013
Net interest income and margin
$
651,700
3.48 %
$
533,104
3.16 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment
1,155
1,161
Net interest income and margin (tax equivalent basis)
$
652,855
3.49 %
$
534,265
3.16 %
(O)
Based on an actual 365-day basis.
(P)
Yield on securities was impacted by net premium amortization of $7,619 and $9,953 for the six months ended June 30, 2026, and 2025, respectively.
(Q)
Total cost of funds, including noninterest bearing deposits, was 1.47% and 1.65% for the six months ended June 30, 2026, and 2025, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
YIELD TREND (R)
Interest-Earning Assets:
Loans held for sale
6.31
%
6.11
%
6.27
%
6.64
%
6.79
%
Loans held for investment
5.93
%
5.95
%
5.83
%
5.90
%
5.88
%
Loans held for investment - Warehouse Purchase
Program
5.58
%
5.68
%
5.89
%
6.31
%
6.34
%
Total loans
5.91
%
5.94
%
5.83
%
5.92
%
5.91
%
Investment securities (S)
2.66
%
2.49
%
2.17
%
2.19
%
2.13
%
Federal funds sold and other earning assets
3.61
%
3.75
%
3.99
%
4.44
%
4.50
%
Total interest-earning assets
4.81
%
4.82
%
4.64
%
4.71
%
4.66
%
Interest-Bearing Liabilities:
Interest-bearing demand deposits
0.99
%
0.91
%
0.75
%
0.76
%
0.74
%
Savings and money market deposits
1.97
%
1.94
%
1.96
%
2.07
%
2.05
%
Certificates and other time deposits
3.21
%
3.32
%
3.58
%
3.60
%
3.59
%
Other borrowings
3.71
%
3.70
%
3.99
%
4.42
%
4.44
%
Securities sold under repurchase agreements
2.10
%
2.06
%
2.23
%
2.32
%
2.37
%
Subordinated notes and junior subordinated
debentures
4.25
%
4.48
%
—
—
—
Total interest-bearing liabilities
2.13
%
2.08
%
2.20
%
2.39
%
2.38
%
Net Interest Margin
3.46
%
3.50
%
3.30
%
3.23
%
3.18
%
Net Interest Margin (tax equivalent)
3.47
%
3.51
%
3.30
%
3.24
%
3.18
%
(R)
Annualized and based on average balances on an actual 365-day basis.
(S)
Yield on securities was impacted by net premium amortization of $3,790, $3,829, $4,668, $2,877, and $4,926 for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Balance Sheet Averages
Loans held for sale
$
17,858
$
15,800
$
11,077
$
8,371
$
9,813
Loans held for investment
23,750,036
23,469,020
20,603,235
20,851,896
20,907,400
Loans held for investment - Warehouse Purchase
Program
1,316,645
1,207,793
1,258,036
1,217,579
1,179,307
Total loans
25,084,539
24,692,613
21,872,348
22,077,846
22,096,520
Investment securities
12,258,188
11,469,762
10,378,696
10,530,807
10,867,856
Federal funds sold and other earning assets
969,502
1,026,015
830,926
934,318
841,933
Total interest-earning assets
38,312,229
37,188,390
33,081,970
33,542,971
33,806,309
Allowance for credit losses on loans
(383,281)
(330,133)
(337,892)
(343,872)
(348,310)
Cash and due from banks
315,132
391,668
311,541
291,809
294,379
Goodwill
3,822,507
3,718,640
3,503,127
3,503,127
3,503,127
Core deposit intangibles, net
108,589
50,089
53,553
56,956
60,739
Other real estate
13,278
14,690
14,004
11,533
8,749
Fixed assets, net
430,575
423,530
380,254
377,680
374,486
Other assets
818,106
762,734
659,371
689,659
691,735
Total assets
$
43,437,135
$
42,219,608
$
37,665,928
$
38,129,863
$
38,391,214
Noninterest-bearing deposits
$
10,561,142
$
10,260,022
$
9,543,581
$
9,451,153
$
9,508,845
Interest-bearing demand deposits
6,135,720
6,266,423
4,812,342
4,656,452
4,807,864
Savings and money market deposits
10,928,333
10,583,184
9,054,281
8,977,585
8,944,897
Certificates and other time deposits
4,787,401
4,830,369
4,519,742
4,422,996
4,366,510
Total deposits
32,412,596
31,939,998
27,929,946
27,508,186
27,628,116
Other borrowings
2,174,506
1,620,556
1,595,652
2,480,435
2,717,583
Securities sold under repurchase agreements
194,250
177,719
185,289
187,462
194,577
Subordinated notes and junior subordinated
debentures
70,408
63,673
—
—
—
Allowance for credit losses on off-balance sheet
credit exposures
37,646
38,070
37,646
37,646
37,646
Other liabilities
259,201
218,810
248,593
258,156
227,002
Shareholders' equity
8,288,528
8,160,782
7,668,802
7,657,978
7,586,290
Total liabilities and equity
$
43,437,135
$
42,219,608
$
37,665,928
$
38,129,863
$
38,391,214
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Period End Balances
Loan Portfolio
Commercial and industrial
$
2,805,904
11.2
%
$
2,759,190
10.9
%
$
1,864,337
8.6
%
$
1,879,282
8.5
%
$
1,897,117
8.6
%
Warehouse purchase
program
1,290,156
5.1
%
1,433,152
5.7
%
1,304,798
6.0
%
1,278,178
5.8
%
1,287,440
5.8
%
Construction, land
development and other
land loans
3,143,607
12.6
%
3,253,389
12.9
%
2,741,455
12.6
%
2,865,279
13.0
%
2,873,238
12.9
%
1-4 family residential
7,777,079
31.1
%
7,876,021
31.1
%
7,430,929
34.1
%
7,461,900
33.9
%
7,530,816
33.9
%
Home equity
827,696
3.3
%
846,739
3.3
%
843,708
3.8
%
848,740
3.9
%
869,370
3.9
%
Commercial real estate
(includes multi-family
residential)
7,220,978
28.9
%
7,126,212
28.2
%
5,776,397
26.5
%
5,796,937
26.3
%
5,827,645
26.3
%
Agriculture (includes
farmland)
1,066,122
4.3
%
1,064,540
4.2
%
1,027,904
4.7
%
1,019,589
4.6
%
1,029,250
4.6
%
Consumer and other
412,268
1.6
%
406,680
1.6
%
376,241
1.7
%
366,027
1.7
%
368,747
1.7
%
Energy
484,188
1.9
%
522,063
2.1
%
439,599
2.0
%
511,837
2.3
%
513,765
2.3
%
Total loans
$
25,027,998
$
25,287,986
$
21,805,368
$
22,027,769
$
22,197,388
Deposit Types
Noninterest-bearing DDA
$
10,739,937
32.9
%
$
10,580,920
32.4
%
$
9,467,911
33.2
%
$
9,522,028
34.3
%
$
9,426,657
34.3
%
Interest-bearing DDA
6,133,954
18.8
%
6,345,797
19.5
%
5,365,795
18.8
%
4,766,146
17.2
%
4,708,251
17.1
%
Money market
8,248,194
25.3
%
8,163,557
25.0
%
6,538,213
23.0
%
6,402,591
23.0
%
6,302,770
23.0
%
Savings
2,700,522
8.3
%
2,743,732
8.4
%
2,592,873
9.1
%
2,616,196
9.4
%
2,667,859
9.7
%
Certificates and other time
deposits
4,777,080
14.7
%
4,798,750
14.7
%
4,517,692
15.9
%
4,475,133
16.1
%
4,367,874
15.9
%
Total deposits
$
32,599,687
$
32,632,756
$
28,482,484
$
27,782,094
$
27,473,411
Loan to Deposit Ratio
76.8
%
77.5
%
76.6
%
79.3
%
80.8
%
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Construction Loans
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Single family residential construction
$
689,081
21.9
%
$
690,393
21.2
%
$
613,288
22.4
%
$
665,194
23.2
%
$
696,569
24.2
%
Land development
359,067
11.4
%
407,811
12.5
%
252,650
9.2
%
248,616
8.7
%
227,254
7.9
%
Raw land
227,614
7.3
%
276,693
8.5
%
220,169
8.0
%
230,021
8.0
%
248,380
8.7
%
Residential lots
224,650
7.1
%
249,071
7.7
%
199,709
7.3
%
203,396
7.1
%
217,835
7.6
%
Commercial lots
61,423
2.0
%
61,691
1.9
%
59,683
2.2
%
59,853
2.1
%
55,176
1.9
%
Commercial construction and other
1,581,569
50.3
%
1,567,640
48.2
%
1,396,850
50.9
%
1,459,255
50.9
%
1,428,985
49.7
%
Net unaccreted premium (discount)
203
90
(894)
(1,056)
(961)
Total construction loans
$
3,143,607
$
3,253,389
$
2,741,455
$
2,865,279
$
2,873,238
Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of June 30, 2026
Houston
Dallas
Austin
OK City
Tulsa
Other (T)
Total
Collateral Type
Shopping center/retail
$
266,513
$
207,360
$
67,619
$
76,541
$
4,831
$
343,777
$
966,641
Commercial and industrial
buildings
213,733
114,459
33,894
28,656
11,056
305,583
707,381
Office buildings
134,384
278,033
77,949
42,894
3,805
111,395
648,460
Medical buildings
111,580
56,722
25,804
41,667
28,826
65,432
330,031
Apartment buildings
136,295
67,268
143,477
10,048
12,385
222,261
591,734
Hotel
108,606
116,419
36,165
15,573
—
252,301
529,064
Other
196,829
68,955
153,008
4,297
5,781
426,209
855,079
Total
$
1,167,940
$
909,216
$
537,916
$
219,676
$
66,684
$
1,726,958
$
4,628,390
(U)
Acquired Loans
PSL
PCD Loans
Total Acquired Loans
Balance at
Acquisition
Date
Balance at
Mar 31,
2026
Balance at
Jun 30,
2026
Balance at
Acquisition
Date
Balance at
Mar 31,
2026
Balance at
Jun 30,
2026
Balance at
Acquisition
Date
Balance at
Mar 31,
2026
Balance at
Jun 30,
2026
Loan marks:
Acquired banks (V)
$
388,625
$
15,064
$
15,986
$
332,400
$
5,053
$
4,483
$
721,025
$
20,117
$
20,469
American Bank (W)
15,473
15,902
16,443
1,923
1,297
1,067
17,396
17,199
17,510
Texas Partners Bank (X)
38,467
37,626
36,199
2,328
2,090
1,894
40,795
39,716
38,093
Total
442,565
68,592
68,628
336,651
8,440
$
7,444
779,216
77,032
76,072
Acquired portfolio
loan balances:
Acquired banks (V)
14,323,981
1,331,556
1,219,719
1,376,673
293,365
239,094
15,700,654
1,624,921
1,458,813
American Bank (W)
1,810,982
1,684,101
1,488,985
93,300
89,055
75,647
1,904,282
1,773,156
1,564,632
Texas Partners Bank (X)
1,864,565
1,769,908
1,591,030
76,199
70,248
68,004
1,940,764
1,840,156
1,659,034
Total
17,999,528
4,785,565
4,299,734
1,546,172
452,668
382,745
19,545,700
(Y)
5,238,233
4,682,479
Acquired portfolio
loan balances with loan
marks
$
17,556,963
$
4,716,973
$
4,231,106
$
1,209,521
$
444,228
$
375,301
$
18,766,484
$
5,161,201
$
4,606,407
(T)
Includes other MSA and non-MSA regions.
(U)
Represents a portion of total commercial real estate loans of $7.221 billion as of June 30, 2026.
(V)
Includes Bank Arlington, American State Bank, Community National Bank, First Federal Bank Texas, Coppermark Bank, First Victoria National Bank, The F&M Bank & Trust Company, Tradition Bank, LegacyTexas Bank, FirstCapital Bank and Lone Star State Bank of West Texas.
(W)
The American Merger was completed on January 1, 2026. The American Merger resulted in the addition of $1.904 billion in loans with related purchase accounting adjustments of $17.4 million at acquisition date.
(X)
The Southwest Merger was completed on February 1, 2026. The Southwest Merger resulted in the addition of $1.941 billion in loans with related purchase accounting adjustments of $40.8 million at acquisition date.
(Y)
Actual principal balances acquired.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended
Year-to-Date
Jun 30,
2026
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Asset Quality
Nonaccrual loans
$
116,911
$
106,473
$
137,217
$
105,529
$
102,031
$
116,911
$
102,031
Accruing loans 90 or more days past due
2,360
2,241
317
268
576
2,360
576
Total nonperforming loans
119,271
108,714
137,534
105,797
102,607
119,271
102,607
Repossessed assets
9
136
12
16
6
9
6
Other real estate
11,296
13,257
13,296
13,750
7,874
11,296
7,874
Total nonperforming assets
$
130,576
$
122,107
$
150,842
$
119,563
$
110,487
$
130,576
$
110,487
Nonperforming assets:
Commercial and industrial (includes energy)
$
22,115
$
17,495
$
57,237
$
27,880
$
27,680
$
22,115
$
27,680
Construction, land development and other
land loans
3,781
2,054
2,183
583
1,859
3,781
1,859
1-4 family residential (includes home equity)
64,394
63,168
60,296
57,241
50,501
64,394
50,501
Commercial real estate (includes multi-family
residential)
19,597
17,880
9,215
11,471
12,865
19,597
12,865
Agriculture (includes farmland)
15,590
16,259
16,713
17,080
17,547
15,590
17,547
Consumer and other
5,099
5,251
5,198
5,308
35
5,099
35
Total
$
130,576
$
122,107
$
150,842
$
119,563
$
110,487
$
130,576
$
110,487
Number of loans/properties
499
484
449
424
392
499
392
Allowance for credit losses on loans
$
382,841
$
383,840
$
333,742
$
339,626
$
346,084
$
382,841
$
346,084
Net charge-offs (recoveries):
Commercial and industrial (includes energy)
$
1,386
$
39,225
$
5,388
$
3,341
$
1,044
$
40,611
$
1,374
Construction, land development and other
land loans
50
—
(154)
34
(3)
50
(159)
1-4 family residential (includes home equity)
314
862
175
853
342
1,176
1,393
Commercial real estate (includes multi-family
residential)
(1,064)
(121)
(665)
1,015
55
(1,185)
233
Agriculture (includes farmland)
28
52
(5)
(40)
(14)
80
(14)
Consumer and other
1,469
1,291
1,145
1,255
1,593
2,760
2,894
Total
$
2,183
$
41,309
$
5,884
$
6,458
$
3,017
$
43,492
$
5,721
Asset Quality Ratios
Nonperforming assets to average interest-earning
assets
0.34
%
0.33
%
0.46
%
0.36
%
0.33
%
0.35
%
0.32
%
Nonperforming assets to loans and other real
estate
0.52
%
0.48
%
0.69
%
0.54
%
0.50
%
0.52
%
0.50
%
Net charge-offs to average loans (annualized)
0.03
%
0.67
%
0.11
%
0.12
%
0.05
%
0.35
%
0.05
%
Allowance for credit losses on loans to total loans
1.53
%
1.52
%
1.53
%
1.54
%
1.56
%
1.53
%
1.56
%
Allowance for credit losses on loans to total
loans, excluding Warehouse Purchase Program
loans (G)
1.61
%
1.61
%
1.63
%
1.64
%
1.66
%
1.61
%
1.66
%
Prosperity Bancshares, Inc.®
Notes to Selected Financial Data (Unaudited)
(Dollars and share amounts in thousands, except per share data)
NOTES TO SELECTED FINANCIAL DATA
Prosperity's management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Specifically, for internal planning and forecasting purposes, Prosperity reviews each of diluted earnings per share, return on average assets, return on average common equity, and return on average tangible common equity, in each case excluding merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax; return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses to total loans excluding Warehouse Purchase Program loans; the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities; and the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses and FDIC special assessment. In addition, due to the application of purchase accounting, Prosperity uses certain non-GAAP financial measures and ratios that exclude the impact of these items to evaluate its allowance for credit losses to total loans (excluding Warehouse Purchase Program loans). Prosperity has included information below relating to these non-GAAP financial measures for the applicable periods presented.
Three Months Ended
Year-to-Date
Jun 30,
2026
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Reconciliation of diluted earnings per share to
diluted earnings per share excluding merger related
expenses, net of tax, FDIC special assessment, net of
tax, and net gain on sale or write-up of securities,
net of tax:
Diluted earnings per share (unadjusted)
$
1.67
$
1.16
$
1.49
$
1.45
$
1.42
$
2.84
$
2.79
Net income
$
168,583
$
116,267
$
139,907
$
137,556
$
135,155
$
284,850
$
265,380
Merger related expenses, net of tax(Z)
596
33,588
212
49
—
34,184
—
FDIC special assessment, net of tax(Z)
—
—
(2,807)
—
—
—
—
Net gain on sale or write-up of securities, net of tax(Z)
(6,506)
—
—
—
—
(6,506)
—
Net income excluding merger related expenses, net of
tax, FDIC special assessment, net of tax, and net gain
on sale or write-up of securities, net of tax(Z):
$
162,673
$
149,855
$
137,312
$
137,605
$
135,155
$
312,528
$
265,380
Weighted average diluted shares outstanding
100,783
99,825
94,044
95,093
95,277
100,306
95,271
Merger related expenses, net of tax, per diluted
common share(Z)
$
0.01
$
0.34
$
—
$
—
$
—
$
0.34
$
—
FDIC special assessment, net of tax, per diluted
common share(Z)
$
—
$
—
$
(0.03)
$
—
$
—
$
—
$
—
Net gain on sale or write-up of securities, net of tax, per
diluted common share(Z)
$
(0.06)
$
—
$
—
$
—
$
—
$
(0.06)
$
—
Diluted earnings per share excluding merger related
expenses, net of tax, FDIC special assessment, net of
tax, and net gain on sale or write-up of securities, net of
tax:(Z)
$
1.62
$
1.50
$
1.46
$
1.45
$
1.42
$
3.12
$
2.79
Reconciliation of return on average assets to return
on average assets excluding merger related
expenses, net of tax, FDIC special assessment, net of
tax, and net gain on sale or write-up of
securities, net of tax:
Return on average assets (unadjusted)
1.55
%
1.10
%
1.49
%
1.44
%
1.41
%
1.33
%
1.37
%
Net income excluding merger related expenses, net of
tax, FDIC special assessment, net of tax, and net gain
on sale or write-up of securities, net of tax(Z):
$
162,673
$
149,855
$
137,312
$
137,605
$
135,155
$
312,528
$
265,380
Average total assets
$
43,437,135
$
42,219,608
$
37,665,928
$
38,129,863
$
38,391,214
$
42,830,848
$
38,672,013
Return on average assets excluding merger related
expenses, net of tax, FDIC special assessment, net of
tax, and net gain on sale or write-up of securities, net of
tax (F) (Z)
1.50
%
1.42
%
1.46
%
1.44
%
1.41
%
1.46
%
1.37
%
(Z)
Calculated assuming a federal tax rate of 21.0%.
Three Months Ended
Year-to-Date
Jun 30,
2026
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Reconciliation of return on average common equity
to return on average common equity excluding
merger related expenses, net of tax, FDIC special
assessment, net of tax, and net gain on sale or write-
up of securities, net of tax:
Return on average common equity (unadjusted)
8.14
%
5.70
%
7.30
%
7.18
%
7.13
%
6.93
%
7.03
%
Net income excluding merger related expenses, net of
tax, FDIC special assessment, net of tax, and net gain
on sale or write-up of securities, net of tax(Z):
$
162,673
$
149,855
$
137,312
$
137,605
$
135,155
$
312,528
$
265,380
Average shareholders' equity
$
8,288,528
$
8,160,782
$
7,668,802
$
7,657,978
$
7,586,290
$
8,224,368
$
7,546,269
Return on average common equity excluding merger
related expenses, net of tax, FDIC special assessment,
net of tax, and net gain on sale or write-up of securities,
net of tax(F) (Z)
7.85
%
7.35
%
7.16
%
7.19
%
7.13
%
7.60
%
7.03
%
Reconciliation of return on average common equity
to return on average tangible common equity:
Net income
$
168,583
$
116,267
$
139,907
$
137,556
$
135,155
$
284,850
$
265,380
Average shareholders' equity
$
8,288,528
$
8,160,782
$
7,668,802
$
7,657,978
$
7,586,290
$
8,224,368
$
7,546,269
Less: Average goodwill and other intangible assets
(3,931,096)
(3,768,729)
(3,556,680)
(3,560,083)
(3,563,866)
(3,850,361)
(3,565,634)
Average tangible shareholders' equity
$
4,357,432
$
4,392,053
$
4,112,122
$
4,097,895
$
4,022,424
$
4,374,007
$
3,980,635
Return on average tangible common equity (F)
15.48
%
10.59
%
13.61
%
13.43
%
13.44
%
13.02
%
13.33
%
Reconciliation of return on average common equity
to return on average tangible common equity
excluding merger related expenses, net of tax, FDIC
special assessment, net of tax, and net gain on sale
or write-up of securities, net of tax(Z):
Net income excluding merger related expenses, net of
tax, FDIC special assessment, net of tax, and net gain
on sale or write-up of securities, net of tax(Z):
$
162,673
$
149,855
$
137,312
$
137,605
$
135,155
$
312,528
$
265,380
Average shareholders' equity
$
8,288,528
$
8,160,782
$
7,668,802
$
7,657,978
$
7,586,290
$
8,224,368
$
7,546,269
Less: Average goodwill and other intangible assets
(3,931,096)
(3,768,729)
(3,556,680)
(3,560,083)
(3,563,866)
(3,850,361)
(3,565,634)
Average tangible shareholders' equity
$
4,357,432
$
4,392,053
$
4,112,122
$
4,097,895
$
4,022,424
$
4,374,007
$
3,980,635
Return on average tangible common equity excluding
merger related expenses, net of tax, FDIC special
assessment, net of tax, and net gain on sale or write-up
of securities, net of tax (F) (Z)
14.93
%
13.65
%
13.36
%
13.43
%
13.44
%
14.29
%
13.33
%
Reconciliation of book value per share to tangible
book value per share:
Shareholders' equity
$
8,305,259
$
8,207,851
$
7,616,140
$
7,664,938
$
7,599,736
$
8,305,259
$
7,599,736
Less: Goodwill and other intangible assets
(3,929,502)
(3,933,526)
(3,554,732)
(3,558,321)
(3,561,923)
(3,929,502)
(3,561,923)
Tangible shareholders' equity
$
4,375,757
$
4,274,325
$
4,061,408
$
4,106,617
$
4,037,813
$
4,375,757
$
4,037,813
Period end shares outstanding
100,646
100,835
93,058
94,993
95,277
100,646
95,277
Tangible book value per share
$
43.48
$
42.39
$
43.64
$
43.23
$
42.38
$
43.48
$
42.38
Reconciliation of equity to assets ratio to period end
tangible equity to period end tangible assets ratio:
Tangible shareholders' equity
$
4,375,757
$
4,274,325
$
4,061,408
$
4,106,617
$
4,037,813
$
4,375,757
$
4,037,813
Total assets
$
43,872,511
$
43,619,183
$
38,463,425
$
38,330,469
$
38,417,352
$
43,872,511
$
38,417,352
Less: Goodwill and other intangible assets
(3,929,502)
(3,933,526)
(3,554,732)
(3,558,321)
(3,561,923)
(3,929,502)
(3,561,923)
Tangible assets
$
39,943,009
$
39,685,657
$
34,908,693
$
34,772,148
$
34,855,429
$
39,943,009
$
34,855,429
Period end tangible equity to period end tangible assets
ratio
10.96
%
10.77
%
11.63
%
11.81
%
11.58
%
10.96
%
11.58
%
Three Months Ended
Year-to-Date
Jun 30,
2026
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Reconciliation of allowance for credit losses to total
loans to allowance for credit losses on loans to total
loans excluding Warehouse Purchase Program:
Allowance for credit losses on loans
$
382,841
$
383,840
$
333,742
$
339,626
$
346,084
$
382,841
$
346,084
Total loans
$
25,027,998
$
25,287,986
$
21,805,368
$
22,027,769
$
22,197,388
$
25,027,998
$
22,197,388
Less: Warehouse Purchase Program loans
(1,290,156)
(1,433,152)
(1,304,798)
(1,278,178)
(1,287,440)
(1,290,156)
(1,287,440)
Total loans less Warehouse Purchase Program
$
23,737,842
$
23,854,834
$
20,500,570
$
20,749,591
$
20,909,948
$
23,737,842
$
20,909,948
Allowance for credit losses on loans to total loans
excluding Warehouse Purchase Program
1.61
%
1.61
%
1.63
%
1.64
%
1.66
%
1.61
%
1.66
%
Reconciliation of efficiency ratio to efficiency ratio
excluding net gains and losses on the sale, write-
down or write-up of assets:
Noninterest expense
$
176,176
$
217,287
$
138,712
$
138,635
$
138,565
$
393,463
$
278,866
Net interest income
$
330,550
$
321,150
$
274,953
$
273,435
$
267,722
$
651,700
$
533,104
Noninterest income
60,705
46,474
42,780
41,238
42,982
107,179
84,283
Less: net (loss) gain on sale or write down of assets
(42)
318
35
3
1,414
276
1,179
Less: net gain on sale or write-up of securities
8,235
—
—
—
—
8,235
—
Noninterest income excluding net gains and losses on
the sale, write-down or write-up of assets
52,512
46,156
42,745
41,235
41,568
98,668
83,104
Total income excluding net gains and losses on the
sale, write-down or write-up of assets
$
383,062
$
367,306
$
317,698
$
314,670
$
309,290
$
750,368
$
616,208
Efficiency ratio, excluding net gains and losses on the
sale, write-down or write-up of assets
45.99
%
59.16
%
43.66
%
44.06
%
44.80
%
52.44
%
45.26
%
Reconciliation of efficiency ratio to efficiency ratio,
excluding net gains and losses on the sale, write-
down or write-up of assets, merger related expenses
and FDIC special assessment:
Noninterest expense
$
176,176
$
217,287
$
138,712
$
138,635
$
138,565
$
393,463
$
278,866
Less: merger related expenses
755
42,516
268
62
—
43,271
—
Less: FDIC special assessment
—
—
(3,554)
—
—
—
—
Noninterest expense excluding merger related expenses
and FDIC special assessment
$
175,421
$
174,771
$
141,998
$
138,573
$
138,565
$
350,192
$
278,866
Net interest income
$
330,550
$
321,150
$
274,953
$
273,435
$
267,722
$
651,700
$
533,104
Noninterest income
60,705
46,474
42,780
41,238
42,982
107,179
84,283
Less: net (loss) gain on sale or write down of assets
(42)
318
35
3
1,414
276
1,179
Less: net gain on sale or write-up of securities
8,235
—
—
—
—
8,235
—
Noninterest income excluding net gains and losses on
the sale, write-down or write-up of assets
52,512
46,156
42,745
41,235
41,568
98,668
83,104
Total income excluding net gains and losses on the
sale, write-down or write-up of assets
$
383,062
$
367,306
$
317,698
$
314,670
$
309,290
$
750,368
$
616,208
Efficiency ratio, excluding net gains and losses on the
sale, write-down or write-up of assets, merger related
expenses and FDIC special assessment
First Trust Advisors LP lowered its position in Prosperity Bancshares, Inc. (NYSE:PB – Free Report) by 16.1% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 755,564 shares of the bank’s stock after selling 144,683 shares during the quarter. First Trust Advisors LP owned approximately 0.74% of Prosperity Bancshares worth $50,759,000 as of its most recent SEC filing.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Prosperity Bancshares by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 10,256,927 shares of the bank’s stock valued at $708,856,000 after purchasing an additional 140,035 shares during the last quarter. State Street Corp lifted its position in shares of Prosperity Bancshares by 6.6% during the 3rd quarter. State Street Corp now owns 5,580,039 shares of the bank’s stock worth $373,231,000 after purchasing an additional 343,062 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Prosperity Bancshares by 4.3% during the first quarter. Dimensional Fund Advisors LP now owns 4,929,309 shares of the bank’s stock worth $331,142,000 after purchasing an additional 205,291 shares in the last quarter. AQR Capital Management LLC grew its stake in shares of Prosperity Bancshares by 34.5% during the fourth quarter. AQR Capital Management LLC now owns 4,600,715 shares of the bank’s stock worth $317,955,000 after purchasing an additional 1,179,307 shares in the last quarter. Finally, Morgan Stanley increased its holdings in Prosperity Bancshares by 0.4% in the fourth quarter. Morgan Stanley now owns 3,679,871 shares of the bank’s stock valued at $254,316,000 after buying an additional 15,192 shares during the last quarter. Institutional investors and hedge funds own 80.69% of the company’s stock.
Wall Street Analyst Weigh In A number of analysts have weighed in on the company. Citigroup raised their price target on Prosperity Bancshares from $74.00 to $75.00 and gave the company a “neutral” rating in a research note on Thursday, June 25th. Morgan Stanley reaffirmed an “equal weight” rating and set a $80.00 price objective (down from $85.00) on shares of Prosperity Bancshares in a research report on Monday, July 6th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $80.00 price objective on shares of Prosperity Bancshares in a report on Tuesday, June 23rd. Wall Street Zen raised Prosperity Bancshares from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 16th. Finally, TD Cowen boosted their target price on Prosperity Bancshares from $77.00 to $79.00 and gave the stock a “buy” rating in a research note on Friday, May 1st. Five analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Prosperity Bancshares presently has an average rating of “Hold” and a consensus price target of $76.36.
Check Out Our Latest Stock Analysis on PB
Insider Buying and Selling In other Prosperity Bancshares news, Director Ned S. Holmes sold 600 shares of the business’s stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $69.62, for a total value of $41,772.00. Following the completion of the sale, the director owned 40,800 shares in the company, valued at approximately $2,840,496. The trade was a 1.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders sold a total of 12,100 shares of company stock worth $849,312 over the last quarter. Insiders own 3.96% of the company’s stock.
Prosperity Bancshares Stock Performance Shares of PB stock opened at $73.11 on Monday. The stock’s 50-day moving average is $71.11 and its two-hundred day moving average is $70.18. The firm has a market cap of $7.37 billion, a price-to-earnings ratio of 13.24, a PEG ratio of 1.17 and a beta of 0.63. Prosperity Bancshares, Inc. has a 1 year low of $61.06 and a 1 year high of $77.20. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.76 and a current ratio of 0.76.
Prosperity Bancshares (NYSE:PB – Get Free Report) last posted its earnings results on Wednesday, April 29th. The bank reported $1.50 EPS for the quarter, topping analysts’ consensus estimates of $1.41 by $0.09. Prosperity Bancshares had a return on equity of 7.20% and a net margin of 29.50%.The business had revenue of $367.62 million for the quarter, compared to analysts’ expectations of $358.60 million. During the same quarter in the previous year, the firm earned $1.37 earnings per share. The business’s revenue was up 19.9% compared to the same quarter last year. Analysts predict that Prosperity Bancshares, Inc. will post 6.25 earnings per share for the current year.
Prosperity Bancshares Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be paid a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date is Tuesday, September 15th. Prosperity Bancshares’s dividend payout ratio (DPR) is currently 43.48%.
Prosperity Bancshares Company Profile (Free Report)
Prosperity Bancshares, Inc is a holding company for Prosperity Bank, offering a broad range of commercial and consumer banking services across Texas, Oklahoma, Arkansas and Louisiana. Through its network of branches and digital platforms, the company provides deposit products, business and real estate lending, treasury management, mortgage origination and servicing, as well as wealth management and trust services.
Originally chartered in 1911 as First National Bank in McKinney, Texas, the organization rebranded to Prosperity Bank in 2009 following a series of strategic acquisitions aimed at deepening its regional presence.
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If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Prosperity Bancshares (PB - Free Report) . This company, which is in the Zacks Banks - Southwest industry, shows potential for another earnings beat.
This financial holding company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 3.89%.
For the most recent quarter, Prosperity Bancshares was expected to post earnings of $1.41 per share, but it reported $1.5 per share instead, representing a surprise of 6.38%. For the previous quarter, the consensus estimate was $1.44 per share, while it actually produced $1.46 per share, a surprise of 1.39%.
Price and EPS Surprise
For Prosperity Bancshares, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Prosperity Bancshares currently has an Earnings ESP of +1.76%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 29, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
, /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB) today announced that its Board of Directors declared a quarterly common stock dividend of $0.60 per share for the third quarter of 2026, payable October 1, 2026, to shareholders of record as of September 15, 2026.
Prosperity Bancshares, Inc.®
As of March 31, 2026, Prosperity Bancshares, Inc.® is a $43.619 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma.
Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses, and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.
Prosperity currently operates 363 full-service banking locations: 62 in the Houston area, including The Woodlands; 36 in the South Texas area including Corpus Christi and Victoria; 61 in the Dallas/Fort Worth area; 21 in the East Texas area; 28 in the Central Texas area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita Falls; 15 in the Bryan/College Station area, 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area, 18 in the Central, South Texas and San Antonio areas doing business as American Bank and 11 in the San Antonio area doing business as Texas Partners Bank and 52 in the Houston (including Beaumont), East Texas and Dallas/Ft. Worth areas doing business as Stellar Bank.
Cautionary Notes on Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for loan losses, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of a proposed transaction, and statements about the assumptions underlying any such statement. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity's control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; and weather. These and various other factors are discussed in Prosperity Bancshares' Annual Report on Form 10-K for the year ended December 31, 2025 and other reports and statements Prosperity Bancshares has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity Bancshares may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.
Prosperity Bancshares (PB - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis financial holding company is expected to post quarterly earnings of $1.54 per share in its upcoming report, which represents a year-over-year change of +8.5%.
Revenues are expected to be $376.11 million, up 21.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.53% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Prosperity Bancshares?For Prosperity Bancshares, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.76%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Prosperity Bancshares will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Prosperity Bancshares would post earnings of $1.41 per share when it actually produced earnings of $1.50, delivering a surprise of +6.38%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Prosperity Bancshares appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Houston, Prosperity Bancshares (PB - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 4.91%. The financial holding company is currently shelling out a dividend of $0.60 per share, with a dividend yield of 3.31%. This compares to the Banks - Southwest industry's yield of 1.63% and the S&P 500's yield of 1.34%.
Looking at dividend growth, the company's current annualized dividend of $2.40 is up 2.6% from last year. Over the last 5 years, Prosperity Bancshares has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.50%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Prosperity Bancshares's current payout ratio is 41%, meaning it paid out 41% of its trailing 12-month EPS as dividend.
PB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $6.25 per share, representing a year-over-year earnings growth rate of 9.84%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, PB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
, /PRNewswire/ -- Prosperity Bancshares, Inc.® ("Prosperity") (NYSE: PB), the parent company of Prosperity Bank®, today announced the completion of the merger of Stellar Bancorp, Inc. ("Stellar") with and into Prosperity and the merger of Stellar's wholly owned subsidiary, Stellar Bank, headquartered in Houston, Texas, with and into Prosperity Bank, all effective on July 1, 2026.
Under the terms and subject to the conditions of the merger agreement between Prosperity and Stellar, Prosperity issued 0.3803 shares of Prosperity common stock and paid $11.36 in cash for each outstanding share of Stellar common stock.
Robert R. Franklin, Jr., Stellar's Chief Executive Officer and Stellar Bank's Executive Chairman, joined Prosperity and Prosperity Bank as Vice Chairman, and Ramon Vitulli, Stellar's President and Stellar Bank's Chief Executive Officer, joined Prosperity Bank as Houston Area Chairman. Additional members of Stellar Bank management will maintain leadership roles in the combined organization.
In addition, Mr. Franklin and Joe B. Swinbank, a director of Stellar, have joined the Board of Directors of Prosperity, and Mr. Vitulli and Pat Parsons, a director of Stellar Bank, have joined the Board of Directors of Prosperity Bank.
Stellar operates fifty-two (52) banking offices including its main office in Houston and banking offices in the Houston, Beaumont and East Texas areas and in Dallas, Texas. Stellar banking locations will continue to operate under the Stellar Bank name until the operational integration, which is scheduled for March 2027. At that time, Stellar customers may begin using any of Prosperity Bank's full service banking centers.
About Prosperity Bancshares, Inc. ®
As of March 31, 2026, Prosperity Bancshares, Inc.® is a $43.619 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.
As of June 30, 2026, Prosperity operates 311 full-service banking locations: 62 in the Houston area, including The Woodlands; 36 in the South Texas area including Corpus Christi and Victoria; 61 in the Dallas/Fort Worth area; 21 in the East Texas area; 28 in the Central Texas area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene, Amarillo and Wichita Falls; 15 in the Bryan/College Station area; 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area; and 18 in the Central, South Texas and San Antonio areas currently doing business as American Bank; and 11 in the San Antonio area doing business as Texas Partners Bank.
Cautionary Notes on Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, oral or written forward-looking statements may also be included in information released to the public. Such forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "believe," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for loan losses, changes in deposits, borrowings and the investment securities portfolio, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, including the integration of Stellar, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of transactions, and statements about the assumptions underlying any such statement. These forward‑looking statements are not guarantees of future performance and are based on expectations and assumptions Prosperity currently believes to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of Prosperity's control, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. These risks and uncertainties include, but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks, including Stellar; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); the possibility that the anticipated benefits of an acquisition transaction, including Stellar, are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of Stellar or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; and weather. Prosperity disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. These and various other factors are discussed in Prosperity's Annual Report on Form 10-K for the year ended December 31, 2025, and other reports and statements Prosperity has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.
, /PRNewswire/ -- In conjunction with Prosperity Bancshares, Inc.® (NYSE: PB) Second Quarter 2026 Earnings Announcement, scheduled before the market opens on Wednesday, July 29, 2026, you are invited to listen to its conference call at 11:30 AM, Eastern Time (10:30 AM, Central Time) on that day. Participants will include members of Prosperity's executive management team.
What:
Prosperity Bancshares, Inc.® Second Quarter 2026 Earnings Conference Call
When:
Wednesday, July 29, 2026, at 10:30 AM (Central Time)
Log on to the web at the address above or call 1-877-883-0383 for domestic
participants, or 1-412-902-6506 for international participants, and enter Participant Elite Entry
If you are unable to participate during the live webcast, the call will be archived on the website at https://www.prosperitybankusa.com/Investor-Relations. To access the replay, visit https://www.prosperitybankusa.com/Presentation-Webcasts-and-Calls and follow the instructions.
Prosperity Bancshares, Inc.®
As of March 31, 2026, Prosperity Bancshares, Inc.® is a $43.619 billion Houston, Texas-based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma.
Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses, and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, treasury management solutions, and wealth management services, including trust and retail brokerage.
Prosperity currently operates 311 full-service banking locations: 62 in the Houston area, including The Woodlands; 36 in the South Texas area including Corpus Christi and Victoria; 61 in the Dallas/Fort Worth area; 21 in the East Texas area; 28 in the Central Texas area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita Falls; 15 in the Bryan/College Station area, 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area, 18 in the Central, South Texas and San Antonio areas doing business as American Bank and 11 in the San Antonio area doing business as Texas Partners Bank.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity's management on the conference call may contain, forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for loan losses, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of any acquisition transaction, and statements about the assumptions underlying any such statement. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity's control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; and weather. These and various other factors are discussed in Prosperity Bancshares' Annual Report on Form 10-K for the year ended December 31, 2025 and other reports and statements Prosperity Bancshares has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity Bancshares may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.
Prosperity Bancshares, Inc. (NYSE: PB - Get Free Report) has been assigned a consensus recommendation of "Hold" from the fifteen analysts that are covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have assigned a buy rating to the company.
, /PRNewswire/ -- In conjunction with Prosperity Bancshares, Inc.® (NYSE: PB) First Quarter 2026 Earnings Announcement, scheduled before the market opens on Wednesday, April 29, 2026, you are invited to listen to its conference call at 11:30 AM, Eastern Time (10:30 AM, Central Time) on that day. Participants will include members of Prosperity's executive management team.
What:
Prosperity Bancshares, Inc.® First Quarter 2026 Earnings Conference Call
When:
Wednesday, April 29, 2026, at 10:30 AM (Central Time)
Log on to the web at the address above or call 1-877-883-0383 for domestic participants, or 1-412-902-6506 for international participants, and enter Participant Elite Entry Number: 7638209
If you are unable to participate during the live webcast, the call will be archived on the website at https://www.prosperitybankusa.com/Investor-Relations. To access the replay, visit https://www.prosperitybankusa.com/Presentation-Webcasts-and-Calls and follow the instructions.
Prosperity Bancshares, Inc.®
As of December 31, 2025, Prosperity Bancshares, Inc.® is a $38.463 billion Houston, Texas-based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma.
Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses, and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, treasury management solutions, and wealth management services, including trust and retail brokerage.
Prosperity currently operates 312 full-service banking locations: 62 in the Houston area, including The Woodlands; 36 in the South Texas area including Corpus Christi and Victoria; 61 in the Dallas/Fort Worth area; 22 in the East Texas area; 28 in the Central Texas area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita Falls; 15 in the Bryan/College Station area, 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area, 18 in the Central, South Texas and San Antonio areas doing business as American Bank and 11 in the San Antonio area doing business as Texas Partners Bank.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity's management on the conference call may contain, forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for loan losses, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of any acquisition transaction, and statements about the assumptions underlying any such statement. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity's control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; and weather. These and various other factors are discussed in Prosperity Bancshares' Annual Report on Form 10-K for the year ended December 31, 2025 and other reports and statements Prosperity Bancshares has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity Bancshares may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Prosperity Bancshares (PB - Free Report) is headquartered in Houston, and is in the Finance sector. The stock has seen a price change of -2.59% since the start of the year. The financial holding company is paying out a dividend of $0.60 per share at the moment, with a dividend yield of 3.57% compared to the Banks - Southwest industry's yield of 1.77% and the S&P 500's yield of 1.47%.
Looking at dividend growth, the company's current annualized dividend of $2.40 is up 2.6% from last year. Over the last 5 years, Prosperity Bancshares has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.50%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Prosperity Bancshares's current payout ratio is 42%, meaning it paid out 42% of its trailing 12-month EPS as dividend.
PB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $6.19 per share, with earnings expected to increase 8.79% from the year ago period.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, PB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Massachusetts Financial Services Co. MA trimmed its position in shares of Prosperity Bancshares, Inc. (NYSE:PB – Free Report) by 0.6% during the 4th quarter, according to its most recent 13F filing with the SEC. The fund owned 2,242,597 shares of the bank’s stock after selling 14,612 shares during the quarter. Massachusetts Financial Services Co. MA owned about 2.36% of Prosperity Bancshares worth $154,986,000 at the end of the most recent reporting period.
Other institutional investors also recently bought and sold shares of the company. Mather Group LLC. purchased a new stake in Prosperity Bancshares during the 3rd quarter valued at about $26,000. Community Bank N.A. purchased a new stake in Prosperity Bancshares during the 3rd quarter valued at about $29,000. Danske Bank A S purchased a new stake in Prosperity Bancshares during the 3rd quarter valued at about $40,000. Annis Gardner Whiting Capital Advisors LLC purchased a new stake in Prosperity Bancshares during the 3rd quarter valued at about $42,000. Finally, Osaic Holdings Inc. grew its position in Prosperity Bancshares by 34.9% during the 2nd quarter. Osaic Holdings Inc. now owns 719 shares of the bank’s stock valued at $51,000 after purchasing an additional 186 shares during the last quarter. 80.69% of the stock is owned by hedge funds and other institutional investors.
Prosperity Bancshares Trading Down 0.0% PB opened at $68.79 on Monday. The company has a market cap of $6.98 billion, a price-to-earnings ratio of 12.00, a PEG ratio of 1.10 and a beta of 0.66. The company’s 50 day moving average is $69.26 and its 200 day moving average is $68.71. Prosperity Bancshares, Inc. has a 12-month low of $61.06 and a 12-month high of $77.20.
Prosperity Bancshares (NYSE:PB – Get Free Report) last posted its quarterly earnings data on Wednesday, January 28th. The bank reported $1.46 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.45 by $0.01. The company had revenue of $317.73 million for the quarter, compared to the consensus estimate of $319.30 million. Prosperity Bancshares had a net margin of 31.22% and a return on equity of 7.11%. The firm’s revenue was down 5.9% compared to the same quarter last year. During the same quarter last year, the firm posted $1.37 earnings per share. As a group, analysts predict that Prosperity Bancshares, Inc. will post 5.83 EPS for the current fiscal year.
Prosperity Bancshares Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th were paid a dividend of $0.60 per share. The ex-dividend date was Friday, March 13th. This represents a $2.40 dividend on an annualized basis and a yield of 3.5%. Prosperity Bancshares’s dividend payout ratio (DPR) is presently 41.88%.
Insider Buying and Selling In other Prosperity Bancshares news, Director Ned S. Holmes sold 500 shares of the firm’s stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $68.99, for a total transaction of $34,495.00. Following the sale, the director owned 78,415 shares in the company, valued at approximately $5,409,850.85. This trade represents a 0.63% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 13,200 shares of company stock worth $919,575. 3.96% of the stock is currently owned by company insiders.
Wall Street Analyst Weigh In PB has been the topic of several recent analyst reports. Barclays downgraded shares of Prosperity Bancshares from an “equal weight” rating to an “underweight” rating and cut their price objective for the company from $75.00 to $68.00 in a research report on Monday, February 2nd. DA Davidson reissued a “neutral” rating and set a $76.00 price objective on shares of Prosperity Bancshares in a research report on Thursday, January 29th. Janney Montgomery Scott downgraded shares of Prosperity Bancshares from a “buy” rating to a “neutral” rating in a research report on Tuesday, February 3rd. Weiss Ratings raised shares of Prosperity Bancshares from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, April 2nd. Finally, TD Cowen reissued a “buy” rating on shares of Prosperity Bancshares in a research report on Wednesday, January 7th. Eight research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Prosperity Bancshares has an average rating of “Hold” and an average price target of $78.31.
Check Out Our Latest Report on PB
Prosperity Bancshares Profile (Free Report)
Prosperity Bancshares, Inc is a holding company for Prosperity Bank, offering a broad range of commercial and consumer banking services across Texas, Oklahoma, Arkansas and Louisiana. Through its network of branches and digital platforms, the company provides deposit products, business and real estate lending, treasury management, mortgage origination and servicing, as well as wealth management and trust services.
Originally chartered in 1911 as First National Bank in McKinney, Texas, the organization rebranded to Prosperity Bank in 2009 following a series of strategic acquisitions aimed at deepening its regional presence.
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, /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB) ("Prosperity"), the parent company of Prosperity Bank®, and Stellar Bancorp, Inc. (NYSE: STEL) ("Stellar"), the parent company of Stellar Bank, today announced the receipt of all regulatory approvals necessary to complete Prosperity's previously announced proposed acquisition of Stellar.
Stellar Bancorp, Inc. Logo (PRNewsfoto/Prosperity Bancshares, Inc.) A waiver of prior approval with respect to the merger of the holding companies has been granted by the Federal Reserve Bank of Dallas, and each of the Federal Deposit Insurance Corporation and the Texas Department of Banking have approved the merger of Stellar Bank with and into Prosperity Bank following the merger of the holding companies.
The special meeting of Stellar shareholders to consider and vote on the Agreement and Plan of Merger, dated January 27, 2026, by and between Prosperity and Stellar (the "Merger Agreement"), is scheduled to be held on May 27, 2026. The merger is expected to be completed on or about July 1, 2026, subject to approval by Stellar shareholders and the satisfaction or waiver of other customary closing conditions set forth in the Merger Agreement.
About Prosperity Bancshares, Inc.®
As of December 31, 2025, Prosperity Bancshares, Inc.® is a $38.463 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.
Prosperity currently operates 312 full-service banking locations: 62 in the Houston area, including The Woodlands; 36 in the South Texas area including Corpus Christi and Victoria; 61 in the Dallas/Fort Worth area; 22 in the East Texas area; 28 in the Central Texas area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita Falls; 15 in the Bryan/College Station area, 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area, 18 in the Central, South Texas and San Antonio areas doing business as American Bank and 11 in the San Antonio area doing business as Texas Partners Bank.
About Stellar Bancorp, Inc.
Stellar Bancorp, Inc. is a bank holding company headquartered in Houston, Texas. Stellar's principal banking subsidiary, Stellar Bank, provides a diversified range of commercial banking services primarily to small- to medium-sized businesses and individual customers across Houston, Dallas, Beaumont and surrounding communities in Texas.
Cautionary Notes on Forward Looking Statements
This press release contains statements regarding the proposed transaction between Prosperity and Stellar; future financial and operating results; benefits and synergies of the proposed transaction; future opportunities for Prosperity; the issuance of common stock of Prosperity contemplated by the Merger Agreement; the expected timing of the closing of the proposed transaction contemplated by the Merger Agreement; the ability of the parties to complete the proposed transaction considering the various closing conditions and any other statements about future expectations that constitute forward-looking statements within the meaning of the federal securities laws, including the meaning of the Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, oral or written forward-looking statements may also be included in other information released to the public. Such forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "believe," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective . Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates, and projections about Prosperity, Stellar and their respective subsidiaries or related to the proposed transaction between Prosperity and Stellar and are subject to significant risks and uncertainties that could cause actual results to differ materially from the results expressed in such statements.
These forward-looking statements may include information about Prosperity's and Stellar's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's and Stellar's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's and Stellar's loan portfolio and allowance for loan losses, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's and Stellar's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's and Stellar's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of the proposed transaction, and statements about the assumptions underlying any such statement.
These forward-looking statements are not guarantees of future performance and are based on expectations and assumptions Prosperity and Stellar currently believe to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of the control of Prosperity and Stellar, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Many possible events or factors could adversely affect the future financial results and performance of Prosperity, Stellar or the combined company and could cause those results or performance to differ materially from those expressed in or implied by the forward-looking statements. Such risks and uncertainties include, among others: (1) the risk that the cost savings and synergies from the proposed transaction may not be fully realized or may take longer than anticipated to be realized, (2) disruption to Prosperity's and Stellar's businesses as a result of the announcements and pendency of the proposed transaction, (3) the risk that the integration of Stellar's businesses and operations into Prosperity will be materially delayed or will be more costly or difficult than expected, or that Prosperity is otherwise unable to successfully integrate Stellar's business into its own, including as a result of unexpected factors or events, (4) the failure to obtain the necessary approval by the shareholders of Stellar, (5) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the proposed transaction, (6) the failure of the closing conditions in the Merger Agreement to be satisfied, or any unexpected delay in closing the proposed transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (7) the dilution caused by the issuances of additional shares of Prosperity's common stock in the proposed transaction, (8) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (9) the outcome of any legal or regulatory proceedings that may be currently pending or later instituted against Prosperity before or after the proposed transaction, or against Stellar, (10) diversion of management's attention from ongoing business operations and (11) general competitive, economic, political and market conditions and other factors that may affect future results of Prosperity and Stellar. Prosperity and Stellar disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. These and various other risks, uncertainties, assumptions, and factors are discussed in the Annual Reports on Form 10-K for the year ended December 31, 2025, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed by Prosperity or Stellar and in other filings made by Prosperity and Stellar with the Securities and Exchange Commission (the "SEC") from time to time.
Additional Information about the Transaction and Where to Find It
In connection with the proposed transaction, Prosperity has filed with the SEC a registration statement (the "Registration Statement") on Form S-4 (File No. 333-294882) to register the shares of Prosperity common stock to be issued to the shareholders of Stellar in connection with the proposed transaction. The Registration Statement includes a prospectus of Prosperity and a proxy statement of Stellar included therein (the "proxy statement/prospectus"), which will be sent to the shareholders of Stellar in connection with the proposed transaction. The Registration Statement was declared effective on April 21, 2026, at which time Prosperity filed a final prospectus and Stellar filed a definitive proxy statement. The mailing of the proxy statement/prospectus to Stellar shareholders is expected to commence on or about April 23, 2026. This communication is not a substitute for the Registration Statement, the proxy statement/prospectus or any other document that may be filed by Prosperity or Stellar with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY/STATEMENT PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain the Registration Statement and the proxy statement/prospectus and other documents that are filed with the SEC by Prosperity or Stellar, as applicable, free of charge from the SEC's website at https://www.sec.gov or through the investor relations section of Prosperity's website at https://www.prosperitybankusa.com/investor-relations/ or Stellar's website at https://ir.stellar.bank.
Participants in the Solicitation
Prosperity, Stellar and certain of their directors and executive officers and other employees may be deemed to be participants in the solicitation of proxies from Stellar's shareholders in connection with the proposed transaction. Information about the directors and executive officers of Prosperity and their ownership of Prosperity common stock is contained in the definitive proxy statement for Prosperity's 2026 annual meeting of shareholders (the "Prosperity Annual Meeting Proxy Statement"), which was filed with the SEC on March 16, 2026, including under the headings "Item 1. Election of Directors," "Corporate Governance," "Executive Compensation and Other Matters," "Item 3. Advisory Vote on Executive Compensation," and "Beneficial Ownership of Common Stock by Management of the Company and Principal Shareholders." Information about the directors and executive officers of Stellar and their ownership of Stellar common stock is contained in Amendment No. 1 to the Annual Report on Form 10-K for the year ended December 31, 2025 of Stellar (the "Stellar 10-K/A"), which was filed with the SEC on April 17, 2026. Additional information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the shareholders of Stellar in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, is included in the proxy statement/prospectus relating to the proposed transaction filed with the SEC. To the extent holdings of securities by potential participants (or the identity of such participants) have changed since the information printed in the Prosperity Annual Meeting Proxy Statement or the Stellar 10-K/A, such information has been or will be reflected on Statements of Change in Ownership on Forms 3 and 4 filed with the SEC, as applicable. Free copies of the proxy statement/prospectus relating to the proposed transaction and free copies of the other SEC filings to which reference is made in this paragraph may be obtained from the SEC's website at https://www.sec.gov or through the investor relations section of Prosperity's website at https://www.prosperitybankusa.com/investor-relations/ or Stellar's website at https://ir.stellar.bank.
No Offer or Solicitation
This communication is for informational purposes only and is not intended to and does not constitute an offer to subscribe for, buy or sell, or the solicitation of an offer to subscribe for, buy or sell, or an invitation to subscribe for, buy or sell any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, invitation, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, and otherwise in accordance with applicable law.
HOUSTON--(BUSINESS WIRE)--Prosperity Bancshares, Inc.® (NYSE: PB) (“Prosperity”), the parent company of Prosperity Bank®, and Stellar Bancorp, Inc. (NYSE: STEL) (“Stellar”), the parent company of Stellar Bank, today announced the receipt of all regulatory approvals necessary to complete Prosperity’s previously announced proposed acquisition of Stellar.
A waiver of prior approval with respect to the merger of the holding companies has been granted by the Federal Reserve Bank of Dallas, and each of the Federal Deposit Insurance Corporation and the Texas Department of Banking have approved the merger of Stellar Bank with and into Prosperity Bank following the merger of the holding companies.
The special meeting of Stellar shareholders to consider and vote on the Agreement and Plan of Merger, dated January 27, 2026, by and between Prosperity and Stellar (the “Merger Agreement”), is scheduled to be held on May 27, 2026. The merger is expected to be completed on or about July 1, 2026, subject to approval by Stellar shareholders and the satisfaction or waiver of other customary closing conditions set forth in the Merger Agreement.
About Prosperity Bancshares, Inc.®
As of December 31, 2025, Prosperity Bancshares, Inc.® is a $38.463 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.
Prosperity currently operates 312 full-service banking locations: 62 in the Houston area, including The Woodlands; 36 in the South Texas area including Corpus Christi and Victoria; 61 in the Dallas/Fort Worth area; 22 in the East Texas area; 28 in the Central Texas area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita Falls; 15 in the Bryan/College Station area, 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area, 18 in the Central, South Texas and San Antonio areas doing business as American Bank and 11 in the San Antonio area doing business as Texas Partners Bank.
About Stellar Bancorp, Inc.
Stellar Bancorp, Inc. is a bank holding company headquartered in Houston, Texas. Stellar’s principal banking subsidiary, Stellar Bank, provides a diversified range of commercial banking services primarily to small- to medium-sized businesses and individual customers across Houston, Dallas, Beaumont and surrounding communities in Texas.
Cautionary Notes on Forward Looking Statements
This press release contains statements regarding the proposed transaction between Prosperity and Stellar; future financial and operating results; benefits and synergies of the proposed transaction; future opportunities for Prosperity; the issuance of common stock of Prosperity contemplated by the Merger Agreement; the expected timing of the closing of the proposed transaction contemplated by the Merger Agreement; the ability of the parties to complete the proposed transaction considering the various closing conditions and any other statements about future expectations that constitute forward-looking statements within the meaning of the federal securities laws, including the meaning of the Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, oral or written forward-looking statements may also be included in other information released to the public. Such forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “goal,” “guidance,” “intend,” “is anticipated,” “is expected,” “is intended,” “objective,” “plan,” “projected,” “projection,” “will affect,” “will be,” “will continue,” “will decrease,” “will grow,” “will impact,” “will increase,” “will incur,” “will reduce,” “will remain,” “will result,” “would be,” variations of such words or phrases (including where the word “could,” “may,” or “would” is used rather than the word “will” in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective . Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates, and projections about Prosperity, Stellar and their respective subsidiaries or related to the proposed transaction between Prosperity and Stellar and are subject to significant risks and uncertainties that could cause actual results to differ materially from the results expressed in such statements.
These forward-looking statements may include information about Prosperity’s and Stellar’s possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity’s and Stellar’s future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity’s and Stellar’s loan portfolio and allowance for loan losses, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity’s and Stellar’s future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity’s and Stellar’s operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of the proposed transaction, and statements about the assumptions underlying any such statement.
These forward-looking statements are not guarantees of future performance and are based on expectations and assumptions Prosperity and Stellar currently believe to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of the control of Prosperity and Stellar, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Many possible events or factors could adversely affect the future financial results and performance of Prosperity, Stellar or the combined company and could cause those results or performance to differ materially from those expressed in or implied by the forward-looking statements. Such risks and uncertainties include, among others: (1) the risk that the cost savings and synergies from the proposed transaction may not be fully realized or may take longer than anticipated to be realized, (2) disruption to Prosperity’s and Stellar’s businesses as a result of the announcements and pendency of the proposed transaction, (3) the risk that the integration of Stellar’s businesses and operations into Prosperity will be materially delayed or will be more costly or difficult than expected, or that Prosperity is otherwise unable to successfully integrate Stellar’s business into its own, including as a result of unexpected factors or events, (4) the failure to obtain the necessary approval by the shareholders of Stellar, (5) reputational risk and the reaction of each company’s customers, suppliers, employees or other business partners to the proposed transaction, (6) the failure of the closing conditions in the Merger Agreement to be satisfied, or any unexpected delay in closing the proposed transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (7) the dilution caused by the issuances of additional shares of Prosperity’s common stock in the proposed transaction, (8) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (9) the outcome of any legal or regulatory proceedings that may be currently pending or later instituted against Prosperity before or after the proposed transaction, or against Stellar, (10) diversion of management’s attention from ongoing business operations and (11) general competitive, economic, political and market conditions and other factors that may affect future results of Prosperity and Stellar. Prosperity and Stellar disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. These and various other risks, uncertainties, assumptions, and factors are discussed in the Annual Reports on Form 10-K for the year ended December 31, 2025, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed by Prosperity or Stellar and in other filings made by Prosperity and Stellar with the Securities and Exchange Commission (the “SEC”) from time to time.
Additional Information about the Transaction and Where to Find It
In connection with the proposed transaction, Prosperity has filed with the SEC a registration statement (the “Registration Statement”) on Form S-4 (File No. 333-294882) to register the shares of Prosperity common stock to be issued to the shareholders of Stellar in connection with the proposed transaction. The Registration Statement includes a prospectus of Prosperity and a proxy statement of Stellar included therein (the “proxy statement/prospectus”), which will be sent to the shareholders of Stellar in connection with the proposed transaction. The Registration Statement was declared effective on April 21, 2026, at which time Prosperity filed a final prospectus and Stellar filed a definitive proxy statement. The mailing of the proxy statement/prospectus to Stellar shareholders is expected to commence on or about April 23, 2026. This communication is not a substitute for the Registration Statement, the proxy statement/prospectus or any other document that may be filed by Prosperity or Stellar with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY/STATEMENT PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain the Registration Statement and the proxy statement/prospectus and other documents that are filed with the SEC by Prosperity or Stellar, as applicable, free of charge from the SEC’s website at https://www.sec.gov or through the investor relations section of Prosperity’s website at https://www.prosperitybankusa.com/investor-relations/ or Stellar’s website at https://ir.stellar.bank.
Participants in the Solicitation
Prosperity, Stellar and certain of their directors and executive officers and other employees may be deemed to be participants in the solicitation of proxies from Stellar’s shareholders in connection with the proposed transaction. Information about the directors and executive officers of Prosperity and their ownership of Prosperity common stock is contained in the definitive proxy statement for Prosperity’s 2026 annual meeting of shareholders (the “Prosperity Annual Meeting Proxy Statement”), which was filed with the SEC on March 16, 2026, including under the headings “Item 1. Election of Directors,” “Corporate Governance,” “Executive Compensation and Other Matters,” “Item 3. Advisory Vote on Executive Compensation,” and “Beneficial Ownership of Common Stock by Management of the Company and Principal Shareholders.” Information about the directors and executive officers of Stellar and their ownership of Stellar common stock is contained in Amendment No. 1 to the Annual Report on Form 10-K for the year ended December 31, 2025 of Stellar (the “Stellar 10-K/A”), which was filed with the SEC on April 17, 2026. Additional information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the shareholders of Stellar in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, is included in the proxy statement/prospectus relating to the proposed transaction filed with the SEC. To the extent holdings of securities by potential participants (or the identity of such participants) have changed since the information printed in the Prosperity Annual Meeting Proxy Statement or the Stellar 10-K/A, such information has been or will be reflected on Statements of Change in Ownership on Forms 3 and 4 filed with the SEC, as applicable. Free copies of the proxy statement/prospectus relating to the proposed transaction and free copies of the other SEC filings to which reference is made in this paragraph may be obtained from the SEC’s website at https://www.sec.gov or through the investor relations section of Prosperity’s website at https://www.prosperitybankusa.com/investor-relations/ or Stellar’s website at https://ir.stellar.bank.
No Offer or Solicitation
This communication is for informational purposes only and is not intended to and does not constitute an offer to subscribe for, buy or sell, or the solicitation of an offer to subscribe for, buy or sell, or an invitation to subscribe for, buy or sell any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, invitation, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, and otherwise in accordance with applicable law.
Wall Street expects a year-over-year increase in earnings on higher revenues when Prosperity Bancshares (PB - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 29. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis financial holding company is expected to post quarterly earnings of $1.41 per share in its upcoming report, which represents a year-over-year change of +2.9%.
Revenues are expected to be $353.14 million, up 15.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.91% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Prosperity Bancshares?For Prosperity Bancshares, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.45%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Prosperity Bancshares will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Prosperity Bancshares would post earnings of $1.44 per share when it actually produced earnings of $1.46, delivering a surprise of +1.39%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Prosperity Bancshares appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
, /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB) today announced that its Board of Directors declared a quarterly common stock dividend of $0.60 per share for the second quarter of 2026, payable July 1, 2026, to shareholders of record as of June 15, 2026.
Prosperity Bancshares, Inc.®
As of December 31, 2025, Prosperity Bancshares, Inc.® is a $38.463 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma.
Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses, and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.
Prosperity currently operates 312 full-service banking locations: 62 in the Houston area, including The Woodlands; 36 in the South Texas area including Corpus Christi and Victoria; 61 in the Dallas/Fort Worth area; 22 in the East Texas area; 28 in the Central Texas area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita Falls; 15 in the Bryan/College Station area, 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area; 18 in the Central, South Texas and San Antonio areas doing business as American Bank and 11 in the San Antonio area doing business as Texas Partners Bank.
Cautionary Notes on Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for loan losses, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of a proposed transaction, and statements about the assumptions underlying any such statement. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity's control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; and weather. These and various other factors are discussed in Prosperity Bancshares' Annual Report on Form 10-K for the year ended December 31, 2025 and other reports and statements Prosperity Bancshares has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity Bancshares may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Houston, Prosperity Bancshares (PB - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 0.75%. Currently paying a dividend of $0.60 per share, the company has a dividend yield of 3.45%. In comparison, the Banks - Southwest industry's yield is 1.68%, while the S&P 500's yield is 1.41%.
Looking at dividend growth, the company's current annualized dividend of $2.40 is up 2.6% from last year. Over the last 5 years, Prosperity Bancshares has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.50%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Prosperity Bancshares's current payout ratio is 42%, meaning it paid out 42% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for PB for this fiscal year. The Zacks Consensus Estimate for 2026 is $6.19 per share, which represents a year-over-year growth rate of 8.79%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, PB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Completed the merger of American Bank Holding Corporation on January 1, 2026 Completed the merger of Southwest Bancshares, Inc. on February 1, 2026 Net income of $116.3 million and diluted earnings per share of $1.16 for first quarter 2026; excluding merger related expenses of $42.5 million, net income was $149.9 million(1) and diluted earnings per share were $1.50(1) First quarter net interest margin increased 21 basis points to 3.51% compared to 3.30% for fourth quarter 2025 Loans, excluding Warehouse Purchase Program loans, increased $3.354 billion or 16.4% during first quarter 2026 Deposits increased $4.150 billion or 14.6% during first quarter 2026 Allowance for credit losses on loans and on off-balance sheet credit exposure of $421.5 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program, of 1.61%(1) Nonperforming assets remain low at 0.33% of first quarter average interest-earning assets Completed core system conversion in February 2026 Received all necessary regulatory approvals for the pending merger of Stellar Bancorp, Inc. Named in Forbes' 2026 America's Best Banks and is ranked among "America's Best Regional Banks" by Newsweek in 2026 , /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB) ("Prosperity Bancshares"), the parent company of Prosperity Bank® (collectively, "Prosperity"), reported net income of $116.3 million for the quarter ended March 31, 2026, compared with $130.2 million for the same period in 2025. Net income per diluted common share was $1.16 for the quarter ended March 31, 2026, compared with $1.37 for the same period in 2025. On January 1, 2026, American Bank Holding Corporation ("American") merged with Prosperity Bancshares and American Bank, N.A. ("American Bank") merged with Prosperity Bank (collectively, the "American Merger"), and on February 1, 2026, Southwest Bancshares, Inc. ("Southwest") merged with Prosperity Bancshares and Texas Partners Bank ("Texas Partners") merged with Prosperity Bank (collectively, the "Southwest Merger", and together with the American Merger, the "Mergers"). During the first quarter of 2026, Prosperity incurred merger related expenses of $42.5 million, or $0.34(1)per diluted common share. Excluding these charges, net income was $149.9(1) million and earnings per diluted common share was $1.50(1) for the first quarter of 2026. Additionally, during the first quarter of 2026, loans, excluding Warehouse Purchase Program loans, increased $3.354 billion or 16.4%, and deposits increased $4.150 billion or 14.6%, with both increases primarily due to the Mergers. The annualized return on first quarter average assets was 1.10%. Nonperforming assets remain low at 0.33% of first quarter average interest-earning assets.
"The first quarter of 2026 was impactful for the company and I am excited to announce that during the quarter we completed the merger of American Bank Holding Corporation on January 1, 2026, completed the merger of Southwest Bancshares, Inc. on February 1, 2026 and announced the merger of Stellar Bancorp, Inc. on January 28, 2026, for which we have now received all necessary regulatory approvals and expect to complete on July 1, 2026. Additionally, we completed a core system conversion in February," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.
"We and others believe that Prosperity is doing the right thing. Prosperity has been ranked as one of Forbes America's Best Banks for 2026, and since the list's inception in 2010, was ranked in the Top 10 for 14 consecutive years. Prosperity has also been recognized by Newsweek as one of "America's Best Regional Banks" and was ranked 15th in S&P Global Market Intelligence's "Top 50 US Public Bank Ranking" for 2025," continued Zalman.
"In an effort to continue to enhance shareholder value, Prosperity Bancshares repurchased approximately 837,000 shares of its common stock at an average weighted price of $68.15 per share for a total of $57.1 million during the first quarter of 2026," added Zalman.
"Texas and Oklahoma continue to benefit from strong economies and are home to 57 Fortune 500 headquartered companies. Texas also benefits from diversification in various industries, including energy (oil, gas, renewables), technology, manufacturing, trade/logistics (major ports), healthcare and finance. Further, its business-friendly environment, no state income tax, population growth that support spending and workforce expansion and key role in trade and cross-border commerce position it well for 2026 and the future," stated Zalman.
"While Texas continues to outperform the Unites States on output growth, the labor market has cooled after years of expansion. The growth in 2026 is expected to be steady, although the state's size, diversity and policy advantages position it well for a rebound," concluded Zalman.
Results of Operations for the Three Months Ended March 31, 2026
For the three months ended March 31, 2026, net income was $116.3 million(2) or $1.16 per diluted common share compared with $130.2 million(3) or $1.37 per diluted common share for the same period in 2025. On a linked quarter basis, net income was $116.3 million(2) or $1.16 per diluted common share for the three months ended March 31, 2026, compared with $139.9 million(4) or $1.49 per diluted common share for the three months ended December 31, 2025. Net income and net income per diluted common share for the first quarter of 2026 were impacted by the Mergers and merger related expenses of $42.5 million. Excluding these charges, net income was $149.9(1) million and earnings per diluted common share was $1.50(1) for the three months ended March 31, 2026. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended March 31, 2026 were 1.10%, 5.70% and 10.59%(1), respectively. Excluding merger related expenses, net of tax, annualized returns on average assets, average common equity and average tangible common equity for the three months ended March 31, 2026, were 1.42%(1), 7.35%(1) and 13.65%(1), respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale, write-down or write-up of assets and securities) was 59.16%(1) for the three months ended March 31, 2026, and excluding merger related expenses, the efficiency ratio was 47.58%(1).
Net interest income before provision for credit losses was $321.2 million for the three months ended March 31, 2026, compared with $265.4 million for the same period in 2025, an increase of $55.8 million or 21.0%. The net interest margin on a tax equivalent basis was 3.51% for the three months ended March 31, 2026, compared with 3.14% for the same period in 2025. Net interest income before provision for credit losses increased $46.2 million or 16.8% to $321.2 million for the three months ended March 31, 2026, compared with $275.0 million for the three months ended December 31, 2025. The net interest margin on a tax equivalent basis was 3.51% for the three months ended March 31, 2026, compared with 3.30% for the three months ended December 31, 2025. The change for both periods were primarily due to the repricing of assets and the impact of the Mergers.
Noninterest income was $46.5 million for the three months ended March 31, 2026, compared with $41.3 million for the same period in 2025, an increase of $5.2 million or 12.5%. Noninterest income was $46.5 million for the three months ended March 31, 2026, compared with $42.8 million for the three months ended December 31, 2025, an increase of $3.7 million or 8.6%. The change for both periods was primarily due to the Mergers.
Noninterest expense was $217.3 million for the three months ended March 31, 2026, compared with $140.3 million for the same period in 2025, an increase of $77.0 million. Noninterest expense was $217.3 million for the three months ended March 31, 2026, compared with $138.7 million for the three months ended December 31, 2025, an increase of $78.6 million. The change for both periods was primarily due to an increase in merger related expenses of $42.5 million, an increase in salaries and benefits and an increase in additional expenses related to three months of American operations and two months of Southwest operations.
Balance Sheet Information
Prosperity had $43.619 billion in total assets at March 31, 2026, an increase of $4.855 billion or 12.5%, compared with $38.765 billion at March 31, 2025. Linked quarter total assets increased by $5.156 billion or 13.4% compared with $38.463 billion at December 31, 2025. Total assets increased primarily due to the Mergers.
Loans were $25.288 billion at March 31, 2026, an increase of $3.310 billion or 15.1% from $21.978 billion at March 31, 2025. Linked quarter loans increased $3.483 billion or 16.0% from $21.805 billion at December 31, 2025. Loans increased primarily due to the Mergers. Loans, excluding Warehouse Purchase Program loans, were $23.855 billion at March 31, 2026, compared with $20.920 billion at March 31, 2025, an increase of $2.935 billion or 14.0%, and compared with $20.501 billion at December 31, 2025, an increase of $3.354 billion or 16.4%.
Deposits were $32.633 billion at March 31, 2026, an increase of $4.606 billion or 16.4%, from $28.027 billion at March 31, 2025. Linked quarter deposits increased $4.150 billion or 14.6% from $28.482 billion at December 31, 2025. Deposits increased primarily due to the Mergers.
Asset Quality
Nonperforming assets totaled $122.1 million or 0.33% of quarterly average interest-earning assets at March 31, 2026, compared with $81.4 million or 0.24% of quarterly average interest-earning assets at March 31, 2025 and $150.8 million or 0.46% of quarterly average interest-earning assets at December 31, 2025.
The allowance for credit losses on loans and off-balance sheet credit exposures was $421.5 million at March 31, 2026, compared with $386.7 million at March 31, 2025 and $371.4 million at December 31, 2025. There was no provision for credit losses for the three months ended March 31, 2026, March 31, 2025 and December 31, 2025.
The allowance for credit losses on loans was $383.8 million or 1.52% of total loans at March 31, 2026, compared with $349.1 million or 1.59% of total loans at March 31, 2025 and $333.7 million or 1.53% of total loans at December 31, 2025. The allowance for credit losses on loans increased during the first quarter of 2026 due to the Mergers, of which $47.5 million was attributable to the American Merger and $43.9 million was attributable to the Southwest Merger. Excluding Warehouse Purchase Program loans, the allowance for credit losses on loans to total loans was 1.61%(1) at March 31, 2026, compared with 1.67%(1) at March 31, 2025 and 1.63%(1) at December 31, 2025.
Net charge-offs were $41.3 million for the three months ended March 31, 2026, compared with net charge-offs of $2.7 million for the three months ended March 31, 2025 and net charge-offs of $5.9 million for the three months ended December 31, 2025. Net charge-offs for the first quarter 2026 included a $33.8 million increase in net charge-offs for commercial and industrial loans. Net charge-offs for the first quarter of 2026 included $2.0 million related to resolved purchased credit deteriorated ("PCD") loans, which had specific reserves that were allocated to the charge-offs. Additionally, reserves on PCD loans increased by $49.0 million due to Day One accounting for PCD loans at the time of the Mergers. Further, $2.0 million of reserves on resolved PCD loans without any related charge-offs were released to the general reserve.
Dividend
Prosperity Bancshares declared a second quarter 2026 cash dividend of $0.60 per share to be paid on July 1, 2026, to all shareholders of record as of June 15, 2026.
Stock Repurchase Program
On January 26, 2026, Prosperity Bancshares announced a stock repurchase program under which up to 5%, or approximately 4.87 million shares, of its outstanding common stock may be acquired over a one-year period expiring on January 26, 2027, at the discretion of management. Under its 2026 stock repurchase program, Prosperity Bancshares repurchased approximately 837,000 shares of its common stock at an average weighted price of $68.15 per share for a total of $57.1 million during the three months ended March 31, 2026.
Pending Acquisition of Stellar Bancorp, Inc.
On January 28, 2026, Prosperity Bancshares and Stellar Bancorp, Inc. ("Stellar") jointly announced the signing of an Agreement and Plan of Merger (the "Merger Agreement"), which provides that Stellar, the parent company of Stellar Bank ("Stellar Bank"), will merge with and into Prosperity Bancshares, and Stellar Bank will merge with and into Prosperity Bank. Stellar Bank operates 52 banking offices in greater Houston and Beaumont, Texas and surrounding areas.
Under the terms and subject to the conditions of the Merger Agreement, Prosperity Bancshares will issue 0.3803 shares of its common stock and $11.36 in cash for each outstanding share of Stellar common stock. Based on Prosperity Bancshares' closing price of $72.90 on January 27, 2026, the total consideration was valued at approximately $2.002 billion. Prosperity has received all necessary regulatory approvals for the acquisition of Stellar and Stellar Bank, and the transaction is expected to be completed on or about July 1, 2026, subject to approval by Stellar shareholders and the satisfaction or waiver of other customary closing conditions set for in the Merger Agreement.
Acquisition of Southwest Bancshares, Inc.
On February 1, 2026, Prosperity completed the acquisition of Southwest and its wholly owned subsidiary Texas Partners, headquartered in San Antonio, Texas. Texas Partners operated 11 banking offices in Central Texas including its main office in San Antonio, and banking offices in the San Antonio area, Austin and the Hill Country.
Pursuant to the terms of the definitive agreement, Prosperity Bancshares issued 4,094,974 shares of its common stock for all outstanding shares of Southwest common stock in the first quarter of 2026. This resulted in goodwill of $134.1 million as of March 31, 2026, which does not include all the subsequent fair value adjustments that have not yet been finalized. Additionally, Prosperity recognized $33.8 million of core deposit intangibles as of March 31, 2026.
Acquisition of American Bank Holding Corporation
On January 1, 2026, Prosperity completed the acquisition of American and its wholly owned subsidiary American Bank, headquartered in Corpus Christi, Texas. American Bank operated 18 banking offices and two loan production offices in South and Central Texas including its main office in Corpus Christi, and banking offices in San Antonio, Austin, Victoria and the greater Corpus Christi area including Port Aransas and Rockport and a loan production office in Houston, Texas.
Pursuant to the terms of the definitive agreement, Prosperity Bancshares issued 4,439,938 shares of its common stock for all outstanding shares of American common stock in the first quarter of 2026. This resulted in goodwill of $185.0 million as of March 31, 2026, which does not include all the subsequent fair value adjustments that have not yet been finalized. Additionally, Prosperity recognized $31.1 million of core deposit intangibles as of March 31, 2026.
Conference Call
Prosperity's management team will host a conference call on Wednesday, April 29, 2026, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's first quarter 2026 earnings. Individuals and investment professionals may participate in the call by dialing 877-883-0383 for domestic participants, or 412-902-6506 for international participants. The participant elite entry number is 7638209.
Alternatively, individuals may listen to the live webcast of the presentation by visiting Prosperity's website at www.prosperitybankusa.com. The webcast may be accessed from Prosperity's Investor Relations page by selecting "Presentations, Webcasts & Calls" from the menu and following the instructions.
Non-GAAP Financial Measures
Prosperity's management uses certain non-GAAP financial measures to evaluate its performance. Specifically, for internal planning and forecasting purposes, Prosperity reviews each of diluted earnings per share, return on average assets, return on average common equity, and return on average tangible common equity, in each case excluding merger related expenses, net of tax, and FDIC special assessment, net of tax; return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses to total loans excluding Warehouse Purchase Program loans; the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets; and the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets, merger related expenses, and FDIC special assessment. Prosperity believes these non-GAAP financial measures provide information useful to investors in understanding Prosperity's financial results and their presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting Prosperity's business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. Further, Prosperity believes that these non-GAAP financial measures provide useful information by excluding certain items that may not be indicative of its core operating earnings and business outlook. These non-GAAP financial measures should not be considered a substitute for, nor of greater importance than, GAAP basis financial measures and results; Prosperity strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. Please refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures to the nearest respective GAAP financial measures.
Prosperity Bancshares, Inc. ®
As of March 31, 2026, Prosperity Bancshares, Inc.® is a $43.619 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.
Prosperity currently operates 312 full-service banking locations: 62 in the Houston area, including The Woodlands; 36 in the South Texas area including Corpus Christi and Victoria; 61 in the Dallas/Fort Worth area; 22 in the East Texas area; 28 in the Central Texas area including Austin and San Antonio; 45 in the West Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita Falls; 15 in the Bryan/College Station area, 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area; 18 in the Central, South Texas and San Antonio areas doing business as American Bank and 11 in the San Antonio area doing business as Texas Partners Bank.
Cautionary Notes on Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains, and the remarks by Prosperity's management on the conference call may contain, statements regarding the proposed transaction between Prosperity Bancshares, Inc. ("Prosperity") and Stellar Bancorp, Inc. ("Stellar"); future financial and operating results; benefits and synergies of the proposed transaction; future opportunities for Prosperity; the issuance of common stock of Prosperity contemplated by the Agreement and Plan of Merger by and between Prosperity and Stellar (the "Merger Agreement"); the expected timing of the closing of the proposed transaction contemplated by the Merger Agreement; the ability of the parties to complete the proposed transaction considering the various closing conditions and any other statements about future expectations that constitute forward-looking statements within the meaning of the federal securities laws, including the meaning of the Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, oral or written forward-looking statements may also be included in other information released to the public. Such forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "believe," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates, and projections about Prosperity, Stellar and their respective subsidiaries or related to the proposed transaction between Prosperity and Stellar and are subject to significant risks and uncertainties that could cause actual results to differ materially from the results expressed in such statements.
These forward-looking statements may include information about Prosperity's and Stellar's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for loan losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's and Stellar's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's and Stellar's loan portfolio and allowance for loan losses, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's and Stellar's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's and Stellar's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of the proposed transaction, and statements about the assumptions underlying any such statement.
These forward-looking statements are not guarantees of future performance and are based on expectations and assumptions Prosperity currently believes to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of the control of Prosperity and Stellar, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. These risks and uncertainties include, but are not limited to, whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; changes in trade policies by the United States or other countries, such as tariffs or retaliatory tariffs; and the effect, impact, potential duration or other implications of weather and climate-related events. Many possible events or factors could adversely affect the future financial results and performance of Prosperity, Stellar or the combined company and could cause those results or performance to differ materially from those expressed in or implied by the forward-looking statements. Such risks and uncertainties include, among others: (1) the risk that the cost savings and synergies from the proposed transaction may not be fully realized or may take longer than anticipated to be realized, (2) disruption to Prosperity's and Stellar's businesses as a result of the announcements and pendency of the proposed transaction, (3) the risk that the integration of Stellar's businesses and operations into Prosperity will be materially delayed or will be more costly or difficult than expected, or that Prosperity is otherwise unable to successfully integrate Stellar's business into its own, including as a result of unexpected factors or events, (4) the failure to obtain the necessary approval by the shareholders of Stellar, (5) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the proposed transaction, (6) the failure of the closing conditions in the Merger Agreement to be satisfied, or any unexpected delay in closing the proposed transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (7) the dilution caused by the issuances of additional shares of Prosperity's common stock in the proposed transaction, (8) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (9) the outcome of any legal or regulatory proceedings that may be currently pending or later instituted against Prosperity before or after the proposed transaction, or against Stellar, (10) diversion of management's attention from ongoing business operations and (11) general competitive, economic, political and market conditions and other factors that may affect future results of Prosperity and Stellar. Prosperity and Stellar disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. These and various other risks, uncertainties, assumptions, and factors are discussed in the respective Annual Reports on Form 10-K for the year ended December 31, 2025, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed by Prosperity or Stellar and in other filings made by Prosperity and Stellar with the Securities and Exchange Commission (the "SEC") from time to time.
Additional Information about the Transaction and Where to Find It
In connection with the proposed transaction, Prosperity has filed with the SEC a registration statement (the "Registration Statement") on Form S-4 (File No. 333-294882) to register the shares of Prosperity common stock to be issued to the shareholders of Stellar in connection with the proposed transaction. The Registration Statement includes a prospectus of Prosperity and a proxy statement of Stellar (the "proxy statement/prospectus"), which has been sent to the shareholders of Stellar in connection with the proposed transaction. The Registration Statement was declared effective on April 21, 2026, at which time Prosperity filed a final prospectus and Stellar filed a definitive proxy statement. The mailing of the proxy statement/prospectus to Stellar shareholders commenced on April 23, 2026. This communication is not a substitute for the Registration Statement, the proxy statement/prospectus or any other document that may be filed by Prosperity or Stellar with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY/STATEMENT PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain the Registration Statement and the proxy statement/prospectus and other documents that are filed with the SEC by Prosperity or Stellar, as applicable, free of charge from the SEC's website at https://www.sec.gov or through the investor relations section of Prosperity's website at https://www.prosperitybankusa.com/investor-relations/ or Stellar's website at https://ir.stellar.bank.
Participants in the Solicitation
Prosperity, Stellar and certain of their directors and executive officers and other employees may be deemed to be participants in the solicitation of proxies from Stellar's shareholders in connection with the proposed transaction. Information about the directors and executive officers of Prosperity and their ownership of Prosperity common stock is contained in the definitive proxy statement for Prosperity's 2026 annual meeting of shareholders (the "Prosperity Annual Meeting Proxy Statement"), which was filed with the SEC on March 16, 2026, including under the headings "Item 1. Election of Directors," "Corporate Governance," "Executive Compensation and Other Matters," "Item 3. Advisory Vote on Executive Compensation," and "Beneficial Ownership of Common Stock by Management of the Company and Principal Shareholders." Information about the directors and executive officers of Stellar and their ownership of Stellar common stock is contained in Amendment No. 1 to the Annual Report on Form 10-K for the year ended December 31, 2025 of Stellar (the "Stellar 10-K/A"), which was filed with the SEC on April 17, 2026. Additional information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the shareholders of Stellar in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, is included in the proxy statement/prospectus relating to the proposed transaction filed with the SEC. To the extent holdings of securities by potential participants (or the identity of such participants) have changed since the information printed in the Prosperity Annual Meeting Proxy Statement or the Stellar 10-K/A, such information has been or will be reflected on Statements of Change in Ownership on Forms 3 and 4 filed with the SEC, as applicable. Free copies of the proxy statement/prospectus relating to the proposed transaction and free copies of the other SEC filings to which reference is made in this paragraph may be obtained from the SEC's website at https://www.sec.gov or through the investor relations section of Prosperity's website at https://www.prosperitybankusa.com/investor-relations/ or Stellar's website at https://ir.stellar.bank.
No Offer or Solicitation
This communication is for informational purposes only and is not intended to and does not constitute an offer to subscribe for, buy or sell, or the solicitation of an offer to subscribe for, buy or sell, or an invitation to subscribe for, buy or sell any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, invitation, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, and otherwise in accordance with applicable law.
(1)
Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(2)
Includes purchase accounting adjustments of $4.8 million, net of tax, primarily comprised of loan discount accretion of $3.7 million and merger related provision for credit losses of $42.5 million for the three months ended March 31, 2026.
(3)
Includes purchase accounting adjustments of $3.2 million, net of tax, primarily comprised of loan discount accretion of $3.3 million for the three months ended March 31, 2025.
(4)
Includes purchase accounting adjustments of $2.7 million, net of tax, primarily comprised of loan discount accretion of $3.1 million for the three months ended December 31, 2025.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(In thousands)
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Balance Sheet Data (at period end)
Loans held for sale
$
21,925
$
14,155
$
11,297
$
6,004
$
9,764
Loans held for investment
23,832,909
20,486,415
20,738,294
20,903,944
20,909,913
Loans held for investment - Warehouse Purchase
Program
1,433,152
1,304,798
1,278,178
1,287,440
1,057,893
Total loans
25,287,986
21,805,368
22,027,769
22,197,388
21,977,570
Investment securities(A)
11,951,591
10,613,425
10,232,462
10,608,104
10,792,731
Federal funds sold
209
217
210
197
221
Allowance for credit losses on loans
(383,840)
(333,742)
(339,626)
(346,084)
(349,101)
Cash and due from banks
1,547,967
1,747,511
1,766,115
1,304,993
1,694,637
Goodwill
3,822,283
3,503,127
3,503,127
3,503,127
3,503,127
Core deposit intangibles, net
111,243
51,605
55,194
58,796
62,406
Other real estate owned
13,257
13,296
13,750
7,874
8,012
Fixed assets, net
429,775
383,449
378,776
374,602
373,273
Other assets
838,712
679,169
692,692
708,355
701,799
Total assets
$
43,619,183
$
38,463,425
$
38,330,469
$
38,417,352
$
38,764,675
Noninterest-bearing deposits
$
10,580,920
$
9,467,911
$
9,522,028
$
9,426,657
$
9,675,915
Interest-bearing deposits
22,051,836
19,014,573
18,260,066
18,046,754
18,350,884
Total deposits
32,632,756
28,482,484
27,782,094
27,473,411
28,026,799
Other borrowings
2,200,000
1,950,000
2,400,000
2,900,000
2,700,000
Securities sold under repurchase agreements
176,099
201,216
185,797
183,572
216,086
Subordinated notes and junior subordinated debentures
76,186
—
—
—
—
Allowance for credit losses on off-balance sheet credit
exposures
37,646
37,646
37,646
37,646
37,646
Other liabilities
288,645
175,939
259,994
222,987
267,083
Total liabilities
35,411,332
30,847,285
30,665,531
30,817,616
31,247,614
Shareholders' equity(B)
8,207,851
7,616,140
7,664,938
7,599,736
7,517,061
Total liabilities and equity
$
43,619,183
$
38,463,425
$
38,330,469
$
38,417,352
$
38,764,675
(A)
Includes $44, ($375), ($1,987), ($1,657) and ($1,374) in unrealized gain (losses) on available for sale securities for the quarterly periods ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.
(B)
Includes $35, ($296), ($1,570), ($1,309) and ($1,085) in after-tax unrealized gain (losses) on available for sale securities for the quarterly periods ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(In thousands)
Three Months Ended
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Income Statement Data
Interest income:
Loans
$
361,756
$
321,516
$
329,445
$
325,490
$
319,023
Securities(C)
70,531
56,767
58,207
57,836
57,886
Federal funds sold and other earning assets
9,488
8,364
10,455
9,438
15,896
Total interest income
441,775
386,647
398,107
392,764
392,805
Interest expense:
Deposits
104,237
94,625
95,965
93,790
95,597
Other borrowings
14,783
16,028
27,613
30,101
30,492
Securities sold under repurchase agreements
902
1,041
1,094
1,151
1,334
Subordinated notes and junior subordinated
debentures
703
—
—
—
—
Total interest expense
120,625
111,694
124,672
125,042
127,423
Net interest income
321,150
274,953
273,435
267,722
265,382
Provision for credit losses
—
—
—
—
—
Net interest income after provision for credit losses
321,150
274,953
273,435
267,722
265,382
Noninterest income:
Nonsufficient funds (NSF) fees
10,867
9,715
9,805
8,885
9,147
Credit card, debit card and ATM card income
9,483
9,462
9,446
9,761
8,739
Service charges on deposit accounts
8,680
7,618
7,317
7,645
7,408
Trust income
4,922
3,662
3,526
3,859
3,601
Mortgage income
1,280
954
931
965
1,009
Brokerage income
1,568
1,570
1,328
1,225
1,262
Bank owned life insurance income
2,598
2,117
2,111
1,985
2,115
Net gain (loss) on sale or write-down of assets
318
35
3
1,414
(235)
Other noninterest income
6,758
7,647
6,771
7,243
8,255
Total noninterest income
46,474
42,780
41,238
42,982
41,301
Noninterest expense:
Salaries and benefits
109,211
88,384
87,949
87,296
89,476
Net occupancy and equipment
10,654
9,379
9,395
9,168
9,146
Credit and debit card, data processing and software
amortization
18,114
12,621
12,515
12,056
11,422
Regulatory assessments and FDIC insurance
6,041
1,600
5,198
5,508
5,789
Core deposit intangibles amortization
5,259
3,588
3,602
3,610
3,641
Depreciation
5,548
5,155
4,966
4,779
4,774
Communications
3,834
3,528
3,480
3,507
3,473
Other real estate expense
341
219
314
204
140
Net (gain) loss on sale or write-down of other real
estate
(41)
109
(81)
(222)
(30)
Merger related expenses
42,516
268
62
—
—
Other noninterest expense
15,810
13,861
11,235
12,659
12,470
Total noninterest expense
217,287
138,712
138,635
138,565
140,301
Income before income taxes
150,337
179,021
176,038
172,139
166,382
Provision for income taxes
34,070
39,114
38,482
36,984
36,157
Net income available to common shareholders
$
116,267
$
139,907
$
137,556
$
135,155
$
130,225
(C)
Interest income on securities was reduced by net premium amortization of $3,829, $4,668, $2,877, $4,926, and $5,027 for the three months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.
Prosperity Bancshares, Inc. ®
Financial Highlights (Unaudited)
(Dollars and share amounts in thousands, except per share data and market prices)
Three Months Ended
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Profitability
Net income (D) (E)
$
116,267
$
139,907
$
137,556
$
135,155
$
130,225
Basic earnings per share
$
1.16
$
1.49
$
1.45
$
1.42
$
1.37
Diluted earnings per share
$
1.16
$
1.49
$
1.45
$
1.42
$
1.37
Return on average assets (F) (J)
1.10
%
1.49
%
1.44
%
1.41
%
1.34
%
Return on average common equity (F) (J)
5.70
%
7.30
%
7.18
%
7.13
%
6.94
%
Return on average tangible common equity (F) (G) (J)
10.59
%
13.61
%
13.43
%
13.44
%
13.23
%
Tax equivalent net interest margin (D) (E) (H)
3.51
%
3.30
%
3.24
%
3.18
%
3.14
%
Efficiency ratio (G) (I) (K)
59.16
%
43.66
%
44.06
%
44.80
%
45.71
%
Liquidity and Capital Ratios
Equity to assets
18.82
%
19.80
%
20.00
%
19.78
%
19.39
%
Common equity tier 1 capital
15.44
%
17.55
%
17.53
%
17.10
%
16.92
%
Tier 1 risk-based capital
15.44
%
17.55
%
17.53
%
17.10
%
16.92
%
Total risk-based capital
16.69
%
18.80
%
18.78
%
18.35
%
18.17
%
Tier 1 leverage capital
11.22
%
11.93
%
11.90
%
11.62
%
11.20
%
Period end tangible equity to period end tangible assets
(G)
10.77
%
11.63
%
11.81
%
11.58
%
11.23
%
Other Data
Weighted-average shares used in computing earnings
per common share
Basic
99,825
94,044
95,093
95,277
95,266
Diluted
99,825
94,044
95,093
95,277
95,266
Period end shares outstanding
100,835
93,058
94,993
95,277
95,258
Cash dividends paid per common share
$
0.60
$
0.60
$
0.58
$
0.58
$
0.58
Book value per common share
$
81.40
$
81.84
$
80.69
$
79.76
$
78.91
Tangible book value per common share (G)
$
42.39
$
43.64
$
43.23
$
42.38
$
41.48
Common Stock Market Price
High
$
77.20
$
73.90
$
75.44
$
74.56
$
82.75
Low
$
63.20
$
61.07
$
64.27
$
61.57
$
68.96
Period end closing price
$
67.18
$
69.11
$
66.35
$
70.24
$
71.37
Employees – FTE (excluding overtime)
4,429
3,941
3,937
3,921
3,898
Number of banking centers
312
283
283
283
284
(D)
Includes purchase accounting adjustments for the periods presented as follows:
Three Months Ended
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Loan discount accretion
Purchased seasoned loans ("PS loans")
$2,562
$2,926
$2,242
$2,486
$2,615
PCD
$1,186
$205
$613
$638
$677
Securities net accretion
$1,573
$342
$1,475
$409
$705
Time deposits amortization
$(699)
$(1)
$(1)
$(2)
$(9)
(E)
Using effective tax rate of 22.7%, 21.8%, 21.9%, 21.5% and 21.7% for the three months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, respectively.
(F)
Interim periods annualized.
(G)
Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(H)
Net interest margin for all periods presented is based on average balances on an actual 365-day basis.
(I)
Calculated by dividing total noninterest expense, excluding credit loss provisions, by net interest income plus noninterest income, excluding net gains and losses on the sale, write-down or write-up of assets and securities. Additionally, taxes are not part of this calculation.
(J)
For calculations of the annualized returns on average assets, average common equity and average tangible common equity excluding merger related expenses, net of tax, and FDIC special assessment, net of tax, refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(K)
For calculations of the efficiency ratio excluding merger related expenses and FDIC special assessment refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures to the nearest respective GAAP financial measures.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
YIELD ANALYSIS
Three Months Ended
Mar 31, 2026
Dec 31, 2025
Mar 31, 2025
Average
Balance
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
(L)
Average
Balance
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
(L)
Average
Balance
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
(L)
Interest-earning assets:
Loans held for sale
$
15,800
$
238
6.11 %
$
11,077
$
175
6.27 %
$
7,570
$
127
6.80 %
Loans held for investment
23,469,020
344,596
5.95 %
20,603,235
302,679
5.83 %
20,959,226
305,068
5.90 %
Loans held for investment -
Warehouse Purchase Program
1,207,793
16,922
5.68 %
1,258,036
18,662
5.89 %
876,086
13,828
6.40 %
Total loans
24,692,613
361,756
5.94 %
21,872,348
321,516
5.83 %
21,842,882
319,023
5.92 %
Investment securities
11,469,762
70,531
2.49 %
(M)
10,378,696
56,767
2.17 %
(M)
11,017,400
57,886
2.13 %
(M)
Federal funds sold and other
earning assets
1,026,015
9,488
3.75 %
830,926
8,364
3.99 %
1,443,220
15,896
4.47 %
Total interest-earning assets
37,188,390
441,775
4.82 %
33,081,970
386,647
4.64 %
34,303,502
392,805
4.64 %
Allowance for credit losses on
loans
(330,133)
(337,892)
(350,715)
Noninterest-earning assets
5,361,351
4,921,850
5,004,291
Total assets
$
42,219,608
$
37,665,928
$
38,957,078
Interest-bearing liabilities:
Interest-bearing demand deposits
$
6,266,423
$
13,993
0.91 %
$
4,812,342
$
9,088
0.75 %
$
5,224,796
$
9,019
0.70 %
Savings and money market
deposits
10,583,184
50,719
1.94 %
9,054,281
44,771
1.96 %
9,007,286
45,645
2.06 %
Certificates and other time
deposits
4,830,369
39,525
3.32 %
4,519,742
40,766
3.58 %
4,426,521
40,933
3.75 %
Other borrowings
1,620,556
14,783
3.70 %
1,595,652
16,028
3.99 %
2,776,667
30,492
4.45 %
Securities sold under repurchase
agreements
177,719
902
2.06 %
185,289
1,041
2.23 %
217,945
1,334
2.48 %
Subordinated notes and junior
subordinated debentures
63,673
703
4.48 %
—
—
—
—
—
—
Total interest-bearing liabilities
23,541,924
120,625
2.08 %
(N)
20,167,306
111,694
2.20 %
(N)
21,653,215
127,423
2.39 %
(N)
Noninterest-bearing liabilities:
Noninterest-bearing demand
deposits
10,260,022
9,543,581
9,504,540
Allowance for credit losses on off-
balance sheet credit exposures
38,070
37,646
37,646
Other liabilities
218,810
248,593
255,876
Total liabilities
34,058,826
29,997,126
31,451,277
Shareholders' equity
8,160,782
7,668,802
7,505,801
Total liabilities and shareholders' equity
$
42,219,608
$
37,665,928
$
38,957,078
Net interest income and margin
$
321,150
3.50 %
$
274,953
3.30 %
$
265,382
3.14 %
Non-GAAP to GAAP
reconciliation:
Tax equivalent adjustment
575
514
587
Net interest income and margin
(tax equivalent basis)
$
321,725
3.51 %
$
275,467
3.30 %
$
265,969
3.14 %
(L)
Annualized and based on an actual 365-day basis.
(M)
Yield on securities was impacted by net premium amortization of $3,829, $4,668, and $5,027 for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.
(N)
Total cost of funds, including noninterest bearing deposits, was 1.45%, 1.49% and 1.66% for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
YIELD TREND (O)
Interest-Earning Assets:
Loans held for sale
6.11
%
6.27
%
6.64
%
6.79
%
6.80
%
Loans held for investment
5.95
%
5.83
%
5.90
%
5.88
%
5.90
%
Loans held for investment - Warehouse Purchase
Program
5.68
%
5.89
%
6.31
%
6.34
%
6.40
%
Total loans
5.94
%
5.83
%
5.92
%
5.91
%
5.92
%
Investment securities (P)
2.49
%
2.17
%
2.19
%
2.13
%
2.13
%
Federal funds sold and other earning assets
3.75
%
3.99
%
4.44
%
4.50
%
4.47
%
Total interest-earning assets
4.82
%
4.64
%
4.71
%
4.66
%
4.64
%
Interest-Bearing Liabilities:
Interest-bearing demand deposits
0.91
%
0.75
%
0.76
%
0.74
%
0.70
%
Savings and money market deposits
1.94
%
1.96
%
2.07
%
2.05
%
2.06
%
Certificates and other time deposits
3.32
%
3.58
%
3.60
%
3.59
%
3.75
%
Other borrowings
3.70
%
3.99
%
4.42
%
4.44
%
4.45
%
Securities sold under repurchase agreements
2.06
%
2.23
%
2.32
%
2.37
%
2.48
%
Subordinated notes and junior subordinated
debentures
4.48
%
—
—
—
—
Total interest-bearing liabilities
2.08
%
2.20
%
2.39
%
2.38
%
2.39
%
Net Interest Margin
3.50
%
3.30
%
3.23
%
3.18
%
3.14
%
Net Interest Margin (tax equivalent)
3.51
%
3.30
%
3.24
%
3.18
%
3.14
%
(O)
Annualized and based on average balances on an actual 365-day basis.
(P)
Yield on securities was impacted by net premium amortization of $3,829, $4,668, $2,877, $4,926 and $5,027 for the three months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Balance Sheet Averages
Loans held for sale
$
15,800
$
11,077
$
8,371
$
9,813
$
7,570
Loans held for investment
23,469,020
20,603,235
20,851,896
20,907,400
20,959,226
Loans held for investment - Warehouse Purchase
Program
1,207,793
1,258,036
1,217,579
1,179,307
876,086
Total loans
24,692,613
21,872,348
22,077,846
22,096,520
21,842,882
Investment securities
11,469,762
10,378,696
10,530,807
10,867,856
11,017,400
Federal funds sold and other earning assets
1,026,015
830,926
934,318
841,933
1,443,220
Total interest-earning assets
37,188,390
33,081,970
33,542,971
33,806,309
34,303,502
Allowance for credit losses on loans
(330,133)
(337,892)
(343,872)
(348,310)
(350,715)
Cash and due from banks
391,668
311,541
291,809
294,379
326,066
Goodwill
3,718,640
3,503,127
3,503,127
3,503,127
3,503,128
Core deposit intangibles, net
50,089
53,553
56,956
60,739
64,293
Other real estate
14,690
14,004
11,533
8,749
7,105
Fixed assets, net
423,530
380,254
377,680
374,486
374,448
Other assets
762,734
659,371
689,659
691,735
729,251
Total assets
$
42,219,608
$
37,665,928
$
38,129,863
$
38,391,214
$
38,957,078
Noninterest-bearing deposits
$
10,260,022
$
9,543,581
$
9,451,153
$
9,508,845
$
9,504,540
Interest-bearing demand deposits
6,266,423
4,812,342
4,656,452
4,807,864
5,224,796
Savings and money market deposits
10,583,184
9,054,281
8,977,585
8,944,897
9,007,286
Certificates and other time deposits
4,830,369
4,519,742
4,422,996
4,366,510
4,426,521
Total deposits
31,939,998
27,929,946
27,508,186
27,628,116
28,163,143
Other borrowings
1,620,556
1,595,652
2,480,435
2,717,583
2,776,667
Securities sold under repurchase agreements
177,719
185,289
187,462
194,577
217,945
Subordinated notes and junior subordinated
debentures
63,673
—
—
—
—
Allowance for credit losses on off-balance sheet
credit exposures
38,070
37,646
37,646
37,646
37,646
Other liabilities
218,810
248,593
258,156
227,002
255,876
Shareholders' equity
8,160,782
7,668,802
7,657,978
7,586,290
7,505,801
Total liabilities and equity
$
42,219,608
$
37,665,928
$
38,129,863
$
38,391,214
$
38,957,078
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Period End Balances
Loan Portfolio
Commercial and industrial
$
2,759,190
10.9
%
$
1,864,337
8.6
%
$
1,879,282
8.5
%
$
1,897,117
8.6
%
$
1,915,124
8.7
%
Warehouse purchase
program
1,433,152
5.7
%
1,304,798
6.0
%
1,278,178
5.8
%
1,287,440
5.8
%
1,057,893
4.8
%
Construction, land
development and other
land loans
3,253,389
12.9
%
2,741,455
12.6
%
2,865,279
13.0
%
2,873,238
12.9
%
2,845,082
13.0
%
1-4 family residential
7,876,021
31.1
%
7,430,929
34.1
%
7,461,900
33.9
%
7,530,816
33.9
%
7,576,350
34.5
%
Home equity
846,739
3.3
%
843,708
3.8
%
848,740
3.9
%
869,370
3.9
%
896,529
4.1
%
Commercial real estate
(includes multi-family
residential)
7,126,212
28.2
%
5,776,397
26.5
%
5,796,937
26.3
%
5,827,645
26.3
%
5,783,410
26.3
%
Agriculture (includes
farmland)
1,064,540
4.2
%
1,027,904
4.7
%
1,019,589
4.6
%
1,029,250
4.6
%
1,013,960
4.6
%
Consumer and other
406,680
1.6
%
376,241
1.7
%
366,027
1.7
%
368,747
1.7
%
378,821
1.7
%
Energy
522,063
2.1
%
439,599
2.0
%
511,837
2.3
%
513,765
2.3
%
510,401
2.3
%
Total loans
$
25,287,986
$
21,805,368
$
22,027,769
$
22,197,388
$
21,977,570
Deposit Types
Noninterest-bearing DDA
$
10,580,920
32.4
%
$
9,467,911
33.2
%
$
9,522,028
34.3
%
$
9,426,657
34.3
%
$
9,675,915
34.5
%
Interest-bearing DDA
6,345,797
19.5
%
5,365,795
18.8
%
4,766,146
17.2
%
4,708,251
17.1
%
4,931,769
17.6
%
Money market
8,163,557
25.0
%
6,538,213
23.0
%
6,402,591
23.0
%
6,302,770
23.0
%
6,339,509
22.6
%
Savings
2,743,732
8.4
%
2,592,873
9.1
%
2,616,196
9.4
%
2,667,859
9.7
%
2,703,736
9.7
%
Certificates and other time deposits
4,798,750
14.7
%
4,517,692
15.9
%
4,475,133
16.1
%
4,367,874
15.9
%
4,375,870
15.6
%
Total deposits
$
32,632,756
$
28,482,484
$
27,782,094
$
27,473,411
$
28,026,799
Loan to Deposit Ratio
77.5
%
76.6
%
79.3
%
80.8
%
78.4
%
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Construction Loans
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Single family residential construction
$
690,393
21.2
%
$
613,288
22.4
%
$
665,194
23.2
%
$
696,569
24.2
%
$
727,417
25.6
%
Land development
407,811
12.5
%
252,650
9.2
%
248,616
8.7
%
227,254
7.9
%
225,784
7.9
%
Raw land
276,693
8.5
%
220,169
8.0
%
230,021
8.0
%
248,380
8.7
%
261,918
9.2
%
Residential lots
249,071
7.7
%
199,709
7.3
%
203,396
7.1
%
217,835
7.6
%
219,115
7.7
%
Commercial lots
61,691
1.9
%
59,683
2.2
%
59,853
2.1
%
55,176
1.9
%
56,343
2.0
%
Commercial construction and other
1,567,640
48.2
%
1,396,850
50.9
%
1,459,255
50.9
%
1,428,985
49.7
%
1,355,587
47.6
%
Net unaccreted premium (discount)
90
(894)
(1,056)
(961)
(1,082)
Total construction loans
$
3,253,389
$
2,741,455
$
2,865,279
$
2,873,238
$
2,845,082
Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of March 31, 2026
Houston
Dallas
Austin
OK City
Tulsa
Other (Q)
Total
Collateral Type
Shopping center/retail
$
237,105
$
218,672
$
60,763
$
16,078
$
10,018
$
364,143
$
906,779
Commercial and industrial
buildings
213,914
104,905
31,958
32,429
11,380
301,121
695,707
Office buildings
149,264
292,193
77,325
42,683
4,364
114,900
680,729
Medical buildings
112,178
23,961
25,942
42,033
25,393
74,690
304,197
Apartment buildings
144,493
83,548
101,393
9,566
12,568
224,751
576,319
Hotel
119,709
117,533
36,689
12,740
—
252,738
539,409
Other
192,874
70,247
153,285
4,638
6,663
433,289
860,996
Total
$
1,169,537
$
911,059
$
487,355
$
160,167
$
70,386
$
1,765,632
$
4,564,136
(R)
Acquired Loans
PS Loans
PCD Loans
Total Acquired Loans
Balance at
Acquisition
Date
Balance at
Dec 31,
2025
Balance at
Mar 31,
2026
Balance at
Acquisition
Date
Balance at
Dec 31,
2025
Balance at
Mar 31,
2026
Balance at
Acquisition
Date
Balance at
Dec 31,
2025
Balance at
Mar 31,
2026
Loan marks:
Acquired banks (S)
$
388,625
$
17,479
$
15,064
$
332,400
$
5,267
$
5,053
$
721,025
$
22,746
$
20,117
American Bank (T)
15,473
—
15,902
1,923
—
1,297
17,396
—
17,199
Texas Partners Bank (U)
38,467
—
37,626
2,422
—
2,090
40,889
—
39,716
Total
442,565
17,479
68,592
336,745
5,267
$
8,440
779,310
22,746
77,032
Acquired portfolio loan balances:
Acquired banks (S)
14,323,981
1,498,731
1,331,556
1,376,673
300,010
293,365
15,700,654
(V)
1,798,741
1,624,921
American Bank (T)
1,810,982
—
1,684,101
93,300
—
89,055
1,904,282
—
1,773,156
Texas Partners Bank (U)
1,864,565
—
1,769,908
76,199
—
70,248
1,940,764
—
1,840,156
Total
17,999,528
1,498,731
4,785,565
1,546,172
300,010
452,668
19,545,700
1,798,741
5,238,233
Acquired portfolio loan
balances less loan marks
$
17,556,963
$
1,481,252
$
4,716,973
$
1,209,427
$
294,743
$
444,228
$
18,766,390
$
1,775,995
$
5,161,201
(Q)
Includes other MSA and non-MSA regions.
(R)
Represents a portion of total commercial real estate loans of $7.126 billion as of March 31, 2026.
(S)
Includes Bank Arlington, American State Bank, Community National Bank, First Federal Bank Texas, Coppermark Bank, First Victoria National Bank, The F&M Bank & Trust Company, Tradition Bank, LegacyTexas Bank, FirstCapital Bank and Lone Star Bank.
(T)
The American Merger was completed on January 1, 2026. The American Merger resulted in the addition of $1.904 billion in loans with related purchase accounting adjustments of $17.4 million at acquisition date.
(U)
The Southwest Merger was completed on February 1, 2026. The Southwest Merger resulted in the addition of $1.941 billion in loans with related purchase accounting adjustments of $40.9 million at acquisition date.
(V)
Actual principal balances acquired.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Asset Quality
Nonaccrual loans
$
106,473
$
137,217
$
105,529
$
102,031
$
73,287
Accruing loans 90 or more days past due
2,241
317
268
576
91
Total nonperforming loans
108,714
137,534
105,797
102,607
73,378
Repossessed assets
136
12
16
6
29
Other real estate
13,257
13,296
13,750
7,874
8,012
Total nonperforming assets
$
122,107
$
150,842
$
119,563
$
110,487
$
81,419
Nonperforming assets:
Commercial and industrial (includes energy)
$
17,495
$
57,237
$
27,880
$
27,680
$
8,966
Construction, land development and other land loans
2,054
2,183
583
1,859
1,952
1-4 family residential (includes home equity)
63,168
60,296
57,241
50,501
42,481
Commercial real estate (includes multi-family residential)
17,880
9,215
11,471
12,865
12,257
Agriculture (includes farmland)
16,259
16,713
17,080
17,547
15,725
Consumer and other
5,251
5,198
5,308
35
38
Total
$
122,107
$
150,842
$
119,563
$
110,487
$
81,419
Number of loans/properties
484
449
424
392
363
Allowance for credit losses on loans
$
383,840
$
333,742
$
339,626
$
346,084
$
349,101
Net charge-offs (recoveries):
Commercial and industrial (includes energy)
$
39,225
$
5,388
$
3,341
$
1,044
$
330
Construction, land development and other land loans
—
(154)
34
(3)
(156)
1-4 family residential (includes home equity)
862
175
853
342
1,051
Commercial real estate (includes multi-family residential)
(121)
(665)
1,015
55
178
Agriculture (includes farmland)
52
(5)
(40)
(14)
—
Consumer and other
1,291
1,145
1,255
1,593
1,301
Total
$
41,309
$
5,884
$
6,458
$
3,017
$
2,704
Asset Quality Ratios
Nonperforming assets to average interest-earning assets
0.33
%
0.46
%
0.36
%
0.33
%
0.24
%
Nonperforming assets to loans and other real estate
0.48
%
0.69
%
0.54
%
0.50
%
0.37
%
Net charge-offs to average loans (annualized)
0.67
%
0.11
%
0.12
%
0.05
%
0.05
%
Allowance for credit losses on loans to total loans
1.52
%
1.53
%
1.54
%
1.56
%
1.59
%
Allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans (G)
1.61
%
1.63
%
1.64
%
1.66
%
1.67
%
Prosperity Bancshares, Inc.®
Notes to Selected Financial Data (Unaudited)
(Dollars and share amounts in thousands, except per share data)
NOTES TO SELECTED FINANCIAL DATA
Prosperity's management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Specifically, for internal planning and forecasting purposes, Prosperity reviews each of diluted earnings per share, return on average assets, return on average common equity, and return on average tangible common equity, in each case excluding merger related expenses, net of tax, and FDIC special assessment, net of tax; return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses to total loans excluding Warehouse Purchase Program loans; the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets; and the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets, merger related expenses and FDIC special assessment. In addition, due to the application of purchase accounting, Prosperity uses certain non-GAAP financial measures and ratios that exclude the impact of these items to evaluate its allowance for credit losses to total loans (excluding Warehouse Purchase Program loans). Prosperity has included information below relating to these non-GAAP financial measures for the applicable periods presented.
Three Months Ended
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Reconciliation of diluted earnings per share to diluted earnings
per share excluding merger related expenses, net of tax, and
FDIC special assessment, net of tax:
Diluted earnings per share (unadjusted)
$
1.16
$
1.49
$
1.45
$
1.42
$
1.37
Net income
$
116,267
$
139,907
$
137,556
$
135,155
$
130,225
Merger related expenses, net of tax(W)
33,588
212
49
—
—
FDIC special assessment, net of tax(W)
—
(2,807)
—
—
—
Net income excluding merger related expenses, net of tax, and FDIC
special assessment, net of tax(W):
$
149,855
$
137,312
$
137,605
$
135,155
$
130,225
Weighted average diluted shares outstanding
99,825
94,044
95,093
95,277
95,266
Merger related expenses, net of tax, per diluted common share(W)
$
0.34
$
—
$
—
$
—
$
—
FDIC special assessment, net of tax, per diluted common share(W)
$
—
$
(0.03)
$
—
$
—
$
—
Diluted earnings per share excluding merger related expenses, net of
tax, and FDIC special assessment, net of tax:(W)
$
1.50
$
1.46
$
1.45
$
1.42
$
1.37
Reconciliation of return on average assets to return on average
assets excluding merger related expenses, net of tax, and FDIC
special assessment, net of tax:
Return on average assets (unadjusted)
1.10
%
1.49
%
1.44
%
1.41
%
1.34
%
Net income excluding merger related expenses, net of tax, and FDIC
special assessment, net of tax(W):
$
149,855
$
137,312
$
137,605
$
135,155
$
130,225
Average total assets
$
42,219,608
$
37,665,928
$
38,129,863
$
38,391,214
$
38,957,078
Return on average assets excluding merger related expenses, net of
tax, and FDIC special assessment, net of tax (F) (W)
1.42
%
1.46
%
1.44
%
1.41
%
1.34
%
Reconciliation of return on average common equity to return on
average common equity excluding merger related expenses, net
of tax, and FDIC special assessment, net of tax:
Return on average common equity (unadjusted)
5.70
%
7.30
%
7.18
%
7.13
%
6.94
%
Net income excluding merger related expenses, net of tax, and FDIC
special assessment, net of tax(W):
$
149,855
$
137,312
$
137,605
$
135,155
$
130,225
Average shareholders' equity
$
8,160,782
$
7,668,802
$
7,657,978
$
7,586,290
$
7,505,801
Return on average common equity excluding merger related
expenses, net of tax, and FDIC
special assessment, net of tax (F) (W)
7.35
%
7.16
%
7.19
%
7.13
%
6.94
%
Reconciliation of return on average common equity to return on
average tangible common equity:
Net income
$
116,267
$
139,907
$
137,556
$
135,155
$
130,225
Average shareholders' equity
$
8,160,782
$
7,668,802
$
7,657,978
$
7,586,290
$
7,505,801
Less: Average goodwill and other intangible assets
(3,768,729)
(3,556,680)
(3,560,083)
(3,563,866)
(3,567,421)
Average tangible shareholders' equity
$
4,392,053
$
4,112,122
$
4,097,895
$
4,022,424
$
3,938,380
Return on average tangible common equity (F)
10.59
%
13.61
%
13.43
%
13.44
%
13.23
%
(W) Calculated assuming a federal tax rate of 21.0%.
Three Months Ended
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Reconciliation of return on average common equity to return on
average tangible common equity excluding merger related
expenses, net of tax, and FDIC special assessment, net of tax:
Net income excluding merger related expenses, net of tax, and FDIC
special assessment, net of tax(W):
$
149,855
$
137,312
$
137,605
$
135,155
$
130,225
Average shareholders' equity
$
8,160,782
$
7,668,802
$
7,657,978
$
7,586,290
$
7,505,801
Less: Average goodwill and other intangible assets
(3,768,729)
(3,556,680)
(3,560,083)
(3,563,866)
(3,567,421)
Average tangible shareholders' equity
$
4,392,053
$
4,112,122
$
4,097,895
$
4,022,424
$
3,938,380
Return on average tangible common equity excluding merger related
expenses, net of tax, and FDIC special assessment, net of tax (F) (W)
13.65
%
13.36
%
13.43
%
13.44
%
13.23
%
Reconciliation of book value per share to tangible book value per share:
Shareholders' equity
$
8,207,851
$
7,616,140
$
7,664,938
$
7,599,736
$
7,517,061
Less: Goodwill and other intangible assets
(3,933,526)
(3,554,732)
(3,558,321)
(3,561,923)
(3,565,533)
Tangible shareholders' equity
$
4,274,325
$
4,061,408
$
4,106,617
$
4,037,813
$
3,951,528
Period end shares outstanding
100,835
93,058
94,993
95,277
95,258
Tangible book value per share
$
42.39
$
43.64
$
43.23
$
42.38
$
41.48
Reconciliation of equity to assets ratio to period end tangible
equity to period end tangible assets ratio:
Tangible shareholders' equity
$
4,274,325
$
4,061,408
$
4,106,617
$
4,037,813
$
3,951,528
Total assets
$
43,619,183
$
38,463,425
$
38,330,469
$
38,417,352
$
38,764,675
Less: Goodwill and other intangible assets
(3,933,526)
(3,554,732)
(3,558,321)
(3,561,923)
(3,565,533)
Tangible assets
$
39,685,657
$
34,908,693
$
34,772,148
$
34,855,429
$
35,199,142
Period end tangible equity to period end tangible assets ratio
10.77
%
11.63
%
11.81
%
11.58
%
11.23
%
Reconciliation of allowance for credit losses to total loans to
allowance for credit losses on loans to total loans excluding
Warehouse Purchase Program:
Allowance for credit losses on loans
$
383,840
$
333,742
$
339,626
$
346,084
$
349,101
Total loans
$
25,287,986
$
21,805,368
$
22,027,769
$
22,197,388
$
21,977,570
Less: Warehouse Purchase Program loans
(1,433,152)
(1,304,798)
(1,278,178)
(1,287,440)
(1,057,893)
Total loans less Warehouse Purchase Program
$
23,854,834
$
20,500,570
$
20,749,591
$
20,909,948
$
20,919,677
Allowance for credit losses on loans to total loans excluding
Warehouse Purchase Program
1.61
%
1.63
%
1.64
%
1.66
%
1.67
%
Reconciliation of efficiency ratio to efficiency ratio excluding net
gains and losses on the sale, write-down or write-up of assets:
Noninterest expense
$
217,287
$
138,712
$
138,635
$
138,565
$
140,301
Net interest income
$
321,150
$
274,953
$
273,435
$
267,722
$
265,382
Noninterest income
46,474
42,780
41,238
42,982
41,301
Less: net gain (loss) on sale or write-down of assets
318
35
3
1,414
(235)
Noninterest income excluding net gains and losses on the sale, write-
down or write-up of assets
46,156
42,745
41,235
41,568
41,536
Total income excluding net gains and losses on the sale, write-
down or write-up of assets
$
367,306
$
317,698
$
314,670
$
309,290
$
306,918
Efficiency ratio, excluding net gains and losses on the sale, write-
down or write-up of assets
59.16
%
43.66
%
44.06
%
44.80
%
45.71
%
Three Months Ended
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Reconciliation of efficiency ratio to efficiency ratio, excluding net
gains and losses on the sale, write-down or write-up of assets,
merger related expenses and FDIC special assessment:
Noninterest expense
$
217,287
$
138,712
$
138,635
$
138,565
$
140,301
Less: merger related expenses
42,516
268
62
—
—
Less: FDIC special assessment
—
(3,554)
—
—
—
Noninterest expense excluding merger related expenses and FDIC
special assessment
$
174,771
$
141,998
$
138,573
$
138,565
$
140,301
Net interest income
$
321,150
$
274,953
$
273,435
$
267,722
$
265,382
Noninterest income
46,474
42,780
41,238
42,982
41,301
Less: net gain (loss) on sale or write down of assets
318
35
3
1,414
(235)
Noninterest income excluding net gains and losses on the sale, write-
down or write-up of assets
46,156
42,745
41,235
41,568
41,536
Total income excluding net gains and losses on the sale, write-
down or write-up of assets
$
367,306
$
317,698
$
314,670
$
309,290
$
306,918
Efficiency ratio, excluding net gains and losses on the sale, write-
down or write-up of assets, merger related expenses and FDIC
Prosperity Bancshares (PB - Free Report) came out with quarterly earnings of $1.5 per share, beating the Zacks Consensus Estimate of $1.41 per share. This compares to earnings of $1.37 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.23%. A quarter ago, it was expected that this financial holding company would post earnings of $1.44 per share when it actually produced earnings of $1.46, delivering a surprise of +1.39%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Prosperity Bancshares, which belongs to the Zacks Banks - Southwest industry, posted revenues of $367.62 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.17%. This compares to year-ago revenues of $306.68 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Prosperity Bancshares shares have added about 0.5% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for Prosperity Bancshares?While Prosperity Bancshares has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Prosperity Bancshares was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.50 on $369.11 million in revenues for the coming quarter and $6.19 on $1.72 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southwest is currently in the top 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Cullen/Frost Bankers (CFR - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on April 30.
This financial holding company is expected to post quarterly earnings of $2.46 per share in its upcoming report, which represents a year-over-year change of +7%. The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level.
Cullen/Frost Bankers' revenues are expected to be $591.93 million, up 5.6% from the year-ago quarter.
Prosperity Bancshares, Inc. delivered solid Q1 2026 results, with adjusted EPS of $1.50 beating estimates and strong underlying operational metrics. PB's aggressive expansion through serial acquisitions, including the upcoming Stellar Bancorp merger, positions it as Texas's second largest bank by deposits. Operational strengths include a sub-50% efficiency ratio, low deposit costs (1.32%), and robust asset quality, though a spike in charge-offs warrants monitoring.
NEW YORK CITY & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of Stellar Bancorp, Inc. (NYSE: STEL) to Prosperity Bancshares, Inc. (NYSE: PB). Under the terms of the proposed transaction, shareholders of Stellar will receive 0.3803 shares of Prosperity common stock and $11.36 in cash for each share of Stellar that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.
If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ([email protected]) toll free at any time at 855-768-1857, or visit https://www.ksfcounsel.com/cases/nyse-stel/ to learn more.
To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.
