Prosperity Bancshares (NYSE:PB) Posts Earnings Results, Beats Estimates By $0.01 EPS

Prosperity Bancshares (NYSE:PB) released its quarterly earnings data on Wednesday. The bank reported $1.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.49 by $0.01, FiscalAI reports. The company had revenue of $367.62 million for the quarter, compared to analysts’ expectations of $387.99 million. Prosperity Bancshares had a net margin of 31.22% and a return on equity of 7.11%. The business’s revenue was up 19.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.37 EPS.

Here are the key takeaways from Prosperity Bancshares’ conference call:

• Prosperity reported stronger results with 2025 net income of $543M (up 13.2% year-over-year) and a higher tax-equivalent NIM of 3.30% for Q4, supporting improved profitability metrics.
• The company is executing an aggressive M&A plan (completed American Bank, pending Southwest, announced Stellar) that management says materially expands its Texas footprint and is accretive — management projects $7.34 EPS in 2027 and significant franchise value uplift.
• Asset quality showed deterioration as non-performing assets rose to $150.8M (46 bps of avg. interest-earning assets), including a $35M shared national credit moved to non-accrual, which introduces downside risk to credit costs.
• Near-term expense pressure: Q1 2026 non-interest expense guidance of $172M–$176M plus roughly $30M–$33M of one-time merger charges related to the two acquisitions will weigh on near-term earnings.
• Capital and buyback flexibility remain strong — the bank repurchased ~$157M in 2025, has additional repurchase authority and projects substantial excess cash generation (management cites roughly $600M of deployable cash), supporting dividends, buybacks or further M&A.

Prosperity Bancshares Stock Down 0.6%

NYSE:PB traded down $0.44 during trading hours on Wednesday, hitting $69.04. 1,125,104 shares of the company traded hands, compared to its average volume of 1,186,205. The firm’s 50-day simple moving average is $68.32 and its 200-day simple moving average is $69.02. Prosperity Bancshares has a one year low of $61.06 and a one year high of $77.20. The company has a market cap of $7.01 billion, a PE ratio of 12.07, a PEG ratio of 1.11 and a beta of 0.66.

Prosperity Bancshares Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 15th will be paid a dividend of $0.60 per share. The ex-dividend date is Monday, June 15th. This represents a $2.40 annualized dividend and a yield of 3.5%. Prosperity Bancshares’s dividend payout ratio (DPR) is 41.88%.

Insiders Place Their Bets

In other news, Director Ned S. Holmes sold 600 shares of Prosperity Bancshares stock in a transaction on Wednesday, February 4th. The stock was sold at an average price of $72.62, for a total transaction of $43,572.00. Following the sale, the director directly owned 42,000 shares in the company, valued at $3,050,040. The trade was a 1.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In the last quarter, insiders sold 12,100 shares of company stock worth $838,102. 3.96% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Prosperity Bancshares

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Prosperity Bancshares by 21.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,198 shares of the bank’s stock worth $2,155,000 after purchasing an additional 5,326 shares during the last quarter. NewEdge Advisors LLC increased its position in shares of Prosperity Bancshares by 36.8% in the first quarter. NewEdge Advisors LLC now owns 7,295 shares of the bank’s stock worth $521,000 after purchasing an additional 1,962 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Prosperity Bancshares by 5.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 346,151 shares of the bank’s stock worth $24,705,000 after purchasing an additional 17,345 shares during the last quarter. Jane Street Group LLC increased its position in shares of Prosperity Bancshares by 182.8% in the first quarter. Jane Street Group LLC now owns 104,755 shares of the bank’s stock worth $7,476,000 after purchasing an additional 67,712 shares during the last quarter. Finally, Sivia Capital Partners LLC bought a new position in shares of Prosperity Bancshares in the second quarter worth approximately $359,000. 80.69% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

PB has been the subject of several research reports. Raymond James Financial downgraded shares of Prosperity Bancshares from an “outperform” rating to a “market perform” rating in a research report on Wednesday, January 7th. Cantor Fitzgerald lifted their price target on shares of Prosperity Bancshares from $81.00 to $83.00 and gave the company an “overweight” rating in a research report on Tuesday, March 3rd. TD Cowen restated a “buy” rating on shares of Prosperity Bancshares in a research note on Wednesday, January 7th. Barclays cut Prosperity Bancshares from an “equal weight” rating to an “underweight” rating and dropped their price objective for the company from $75.00 to $68.00 in a research note on Monday, February 2nd. Finally, DA Davidson restated a “neutral” rating and set a $76.00 price objective on shares of Prosperity Bancshares in a research note on Thursday, January 29th. Eight investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $78.31.

Prosperity Bancshares Company Profile

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.