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

Prosperity Bancshares (NYSE:PB) announced its quarterly earnings data on Wednesday. The bank reported $1.46 EPS for the quarter, beating the consensus estimate of $1.45 by $0.01, FiscalAI reports. The business had revenue of $317.73 million during the quarter, compared to the consensus estimate of $319.30 million. Prosperity Bancshares had a net margin of 30.28% and a return on equity of 7.06%. The company’s revenue was down 5.9% on a year-over-year basis. During the same period in the previous year, the business earned $1.37 earnings per share.

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

• Reported strong earnings and margin improvement: FY2025 net income was $543 million (up 13.2% YoY) with Q4 net income of $139.9 million and a tax?equivalent net interest margin of 3.30%.
• Accelerating M&A footprint in Texas: Completed the American Bank merger (effective Jan 1, 2026), expects the Southwest Bancshares deal to close Feb 1, 2026, and announced acquisition of Stellar Bancorp — management says these moves materially enhance Houston/Texas deposit rankings and are accretive.
• Capital returns and capacity: Repurchased about $157 million of stock in 2025 and management highlights strong projected excess cash flow (~$600 million) to support further buybacks, dividend growth, or additional M&A.
• Asset quality showed deterioration: nonperforming assets rose to $150.8 million (46 bps of quarterly average interest?earning assets), including a $35 million Shared National Credit moved to non?accrual and two middle?market problem loans.
• Near?term cost pressure from integrations: Q1 2026 non?interest expense is guided to $172–$176 million plus $30–$33 million of one?time merger charges related to the American and Texas Partners integrations.

Prosperity Bancshares Price Performance

NYSE:PB opened at $67.25 on Thursday. Prosperity Bancshares has a one year low of $61.06 and a one year high of $82.75. The company has a market cap of $6.39 billion, a PE ratio of 11.99, a P/E/G ratio of 0.95 and a beta of 0.68. The firm’s 50 day simple moving average is $70.86 and its 200 day simple moving average is $68.31.

Prosperity Bancshares Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be given a dividend of $0.60 per share. The ex-dividend date is Friday, March 13th. This represents a $2.40 annualized dividend and a yield of 3.6%. Prosperity Bancshares’s dividend payout ratio (DPR) is currently 42.78%.

Insider Activity

In other news, Director Ned S. Holmes sold 600 shares of Prosperity Bancshares stock in a transaction on Wednesday, November 5th. The shares were sold at an average price of $66.84, for a total transaction of $40,104.00. Following the transaction, the director owned 43,300 shares in the company, valued at approximately $2,894,172. The trade was a 1.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Leah Henderson sold 1,050 shares of the business’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $73.00, for a total transaction of $76,650.00. Following the completion of the sale, the director directly owned 8,075 shares in the company, valued at approximately $589,475. This represents a 11.51% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 15,050 shares of company stock valued at $1,056,009. Insiders own 4.20% of the company’s stock.

Institutional Investors Weigh In On Prosperity Bancshares

Several institutional investors and hedge funds have recently made changes to their positions in the stock. State Street Corp lifted its stake in shares of Prosperity Bancshares by 6.6% in the third quarter. State Street Corp now owns 5,580,039 shares of the bank’s stock worth $373,231,000 after acquiring an additional 343,062 shares during the period. AQR Capital Management LLC raised its holdings in Prosperity Bancshares by 43.6% during the 3rd quarter. AQR Capital Management LLC now owns 3,421,408 shares of the bank’s stock worth $226,531,000 after purchasing an additional 1,038,246 shares during the last quarter. Northern Trust Corp lifted its position in shares of Prosperity Bancshares by 3.4% in the 3rd quarter. Northern Trust Corp now owns 881,635 shares of the bank’s stock worth $58,496,000 after purchasing an additional 28,990 shares during the period. Bank of America Corp DE boosted its stake in shares of Prosperity Bancshares by 1.5% in the 3rd quarter. Bank of America Corp DE now owns 714,136 shares of the bank’s stock valued at $47,383,000 after purchasing an additional 10,664 shares during the last quarter. Finally, Boston Partners increased its position in shares of Prosperity Bancshares by 26.6% during the third quarter. Boston Partners now owns 701,995 shares of the bank’s stock worth $46,576,000 after buying an additional 147,493 shares during the period. Institutional investors and hedge funds own 80.69% of the company’s stock.

Analyst Ratings Changes

A number of research firms have recently commented on PB. Royal Bank Of Canada lowered their price target on Prosperity Bancshares from $78.00 to $72.00 and set a “sector perform” rating for the company in a report on Friday, October 10th. Weiss Ratings reissued a “hold (c)” rating on shares of Prosperity Bancshares in a research note on Wednesday, October 8th. Raymond James Financial cut shares of Prosperity Bancshares from an “outperform” rating to a “market perform” rating in a report on Wednesday, January 7th. Barclays set a $75.00 price target on shares of Prosperity Bancshares in a report on Thursday. Finally, Piper Sandler cut shares of Prosperity Bancshares from an “overweight” rating to a “neutral” rating and set a $74.00 price objective for the company. in a research report on Thursday. Seven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $79.58.

Prosperity Bancshares News Roundup

Here are the key news stories impacting Prosperity Bancshares this week:

• Positive Sentiment: Big strategic scale-up: the deal would make Prosperity the second-largest Texas bank by deposits and adds 52 Stellar branches across Houston, Beaumont and Dallas — a meaningful deposit and market-share gain. Reuters: Prosperity to buy Stellar Bancorp
• Positive Sentiment: Q4 bottom-line beat and healthy margins: Prosperity reported $1.46 EPS (vs. $1.45 consensus) and a net margin ~30%, showing core profitability resilience despite a revenue decline versus year-ago. Zacks: PB tops Q4 estimates
• Neutral Sentiment: Deal structure: the $2.0B transaction is a mix of cash and stock (definitive merger agreement); execution, timing and regulatory approvals will drive the eventual financial impact. PR Newswire: Merger announcement
• Neutral Sentiment: Divergent analyst takes: some investors/analysts view the combination as a strong growth and efficiency opportunity (buy-the-dip arguments), while others say the market hasn’t fully rewarded PB yet. Seeking Alpha: Efficient, And Growing
• Negative Sentiment: Market reaction: investors reacted negatively (shares fell) amid concerns the deal will dilute near-term EPS, increase expenses for integration, and add execution/regulatory risk. AAII: Why PB stock is down
• Negative Sentiment: Top-line weakness: revenue was down ~5.9% year-over-year and came in slightly below some expectations, reinforcing investor caution about near-term growth before merger synergies materialize. MarketBeat: Q4 results and call

About Prosperity Bancshares

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.