Prosperity Bancshares Inc
NYSE:PB
Prosperity Bancshares Inc
Prosperity Bancshares Inc., the parent company of Prosperity Bank, has built its foundation on traditional banking values while embracing modern innovations. Headquartered in Houston, Texas, the bank navigates through the competitive world of financial services with a steady focus on customer relationships and community involvement. Founded in 1983, the company's growth strategy has been a combination of organic expansion and mindful acquisitions. This dual approach has allowed it to solidify its presence across Texas and into Oklahoma, showcasing a pragmatic blend of old-fashioned banking principles with contemporary agility. Prosperity Bank emphasizes a comprehensive suite of offerings that cater to individuals and businesses alike, ranging from personal and commercial loans to cash management solutions and mortgage services.
The company’s revenue model primarily thrives on the traditional banking framework of interest income, generated from loans issued to customers—be it consumers, small businesses, or larger enterprises. By relying on a network of more than 285 full-service banking locations, Prosperity Bancshares has created a significant footprint that facilitates strong customer interactions and engagement. In addition to interest income, non-interest income also plays a critical role in its revenue stream, derived from services like wealth management, mortgage banking, and service fees. With a measured and strategic growth plan, Prosperity Bancshares focuses heavily on maintaining a robust balance sheet, ensuring stability and trust in the eyes of its stakeholders. By balancing time-tested banking wisdom with necessary fiscal attention, the company continues to navigate through an evolving financial landscape.
Prosperity Bancshares Inc., the parent company of Prosperity Bank, has built its foundation on traditional banking values while embracing modern innovations. Headquartered in Houston, Texas, the bank navigates through the competitive world of financial services with a steady focus on customer relationships and community involvement. Founded in 1983, the company's growth strategy has been a combination of organic expansion and mindful acquisitions. This dual approach has allowed it to solidify its presence across Texas and into Oklahoma, showcasing a pragmatic blend of old-fashioned banking principles with contemporary agility. Prosperity Bank emphasizes a comprehensive suite of offerings that cater to individuals and businesses alike, ranging from personal and commercial loans to cash management solutions and mortgage services.
The company’s revenue model primarily thrives on the traditional banking framework of interest income, generated from loans issued to customers—be it consumers, small businesses, or larger enterprises. By relying on a network of more than 285 full-service banking locations, Prosperity Bancshares has created a significant footprint that facilitates strong customer interactions and engagement. In addition to interest income, non-interest income also plays a critical role in its revenue stream, derived from services like wealth management, mortgage banking, and service fees. With a measured and strategic growth plan, Prosperity Bancshares focuses heavily on maintaining a robust balance sheet, ensuring stability and trust in the eyes of its stakeholders. By balancing time-tested banking wisdom with necessary fiscal attention, the company continues to navigate through an evolving financial landscape.
Strong Earnings Growth: Prosperity reported 2025 net income of $543 million, up 13.2% from 2024, and EPS of $5.72, up 13.3% year-over-year.
Margin Expansion: Net interest margin increased to 3.30% in Q4 2025, up from 3.05% last year, with further improvement expected from recent acquisitions.
Deposit Growth: Deposits rose to $28.4 billion at December 31, 2025, exceeding expectations and up $700 million from the prior quarter.
Major Acquisitions: Prosperity completed the American Bank merger and expects to close the Southwest Bancshares deal in February 2026; announced the acquisition of Stellar Bancorp, which lifts Houston deposit rank from #9 to #5.
Cost Savings & Integration: Management is confident in achieving 35% cost saves from the Stellar deal due to overlapping footprints and branch consolidation.
Credit Quality: Nonperforming assets increased to $150 million, mainly due to specific middle market loans, but reserves remain strong at 2.21x nonperforming assets.
Capital Deployment: Healthy capital generation enables continued buybacks (5% authorized for 2026), dividends, and M&A, with over $600 million in annual excess cash flow projected.
