Prosperity Bancshares (PB)
NYSE:PB
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Prosperity Bancshares
(NYSE:PB)
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Rating:60Neutral
Price Target:
$70.00
â–¼(-0.07% Downside)
Action:Downgraded
Date:05/14/26
Overall score reflects solid underlying financial performance and reasonable valuation, partially offset by weak technical momentum. The latest earnings call was balanced: constructive margin/efficiency targets and capital returns, but meaningful near-term headwinds from integration costs, elevated expenses, and the quarter’s asset-quality shock.
Positive Factors
Consistent high profitability
Sustained net margins near 27–31% indicate durable core profitability for a regional bank. That margin profile supports internal cash generation, dividend coverage and reinvestment even if revenue growth softens, providing resilience through economic cycles.
Negative Factors
Integration costs harming efficiency
Significant one-time and recurring integration expenses have pushed the efficiency ratio well above historic mid-40s targets. Prolonged elevated costs can compress long-term operating leverage, delaying expected cost saves and weakening margin sustainability during integration cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent high profitability
Sustained net margins near 27–31% indicate durable core profitability for a regional bank. That margin profile supports internal cash generation, dividend coverage and reinvestment even if revenue growth softens, providing resilience through economic cycles.
Read all positive factors
Prosperity Bancshares (PB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.95B
Dividend Yield3.31%
Average Volume (3M)908.67K
Price to Earnings (P/E)12.7
Beta (1Y)0.61
Revenue Growth-0.62%
EPS Growth5.42%
CountryUS
Employees3,898
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.52
Shares Outstanding100,854,690
10 Day Avg. Volume1,120,214
30 Day Avg. Volume908,671
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)0.86
Price to Sales (P/S)3.76
P/FCF Ratio12.64
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue4.66
Enterprise Value/Gross Profit6.51
Enterprise Value/Ebitda9.58
Forecast
1Y Price Target
$77.90Price Target Upside11.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)5.51
Revenue Forecast (FY)$1.74B
Prosperity Bancshares Business Overview & Revenue Model
Company Description
Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time ac...
How the Company Makes Money
Prosperity Bancshares makes money primarily through its banking subsidiary by earning interest and fees on financial products and services. The largest earnings driver is net interest income: the bank collects interest on loans and investment secu...
Prosperity Bancshares Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: strong strategic progress (multiple completed deals and a system conversion), meaningful balance-sheet growth driven by acquisitions, net interest margin and net interest income expansion, and continued capital flexibility including share repurchases. Offsetting these positives were sizable one-time merger expenses, a sharp increase in noninterest expense and the efficiency ratio, record quarterly net charge-offs concentrated in two credits, and weak organic loan growth excluding acquisition-related balances. Management provided forward guidance around margin expansion, expense targets (Q2) and integration timelines, but acknowledged near-term runoff and competitive pressures. Taken together the positives from M&A-driven scale, margin improvement, and capital position are meaningful but are substantially counterbalanced by integration costs and the asset-quality shock in the quarter.Positive Updates
Completed strategic M&A and system conversion
Closed mergers with American Bank Holding (effective Jan 1, 2026) and Southwest Bancshares (Feb 1, 2026); received regulatory approvals for Stellar Bancorp and expect close on July 1, 2026. Completed a core system (DNA) conversion in February 2026. Operational integration timelines announced: American operational integration scheduled for September 2026, Southwest for November 2026, and Stellar integration planning underway.
Negative Updates
Reported net income and EPS decline (GAAP)
Reported net income declined to $116M in Q1 2026 from $130M in Q1 2025 (≈ -10.8%); reported diluted EPS fell to $1.16 from $1.37 YoY. The decline reflects merger-related charges ($42.5M) and other integration impacts.
Read all updates
Q1-2026 Updates
Positive
Negative
Completed strategic M&A and system conversion
Closed mergers with American Bank Holding (effective Jan 1, 2026) and Southwest Bancshares (Feb 1, 2026); received regulatory approvals for Stellar Bancorp and expect close on July 1, 2026. Completed a core system (DNA) conversion in February 2026. Operational integration timelines announced: American operational integration scheduled for September 2026, Southwest for November 2026, and Stellar integration planning underway.
Read all positive updates
Company Guidance
Management's guidance was that Q2 noninterest expense should be $176–$180 million (excludes any additional one‑time merger charges), Q2 fair‑value loan accretion is expected at $3–$4 million, and the NIM should be roughly flat to slightly higher (Q1 tax‑equivalent NIM was 3.51%); on a pro‑forma basis including Stellar they model a 2026 average NIM of ~3.60% with an exit NIM of ~3.70% (commentary referenced ~3.8% for 2027), combined cost of deposits around 1.40% (Q1 cost of funds 1.45%, cost of deposits 1.32%), core noninterest‑bearing deposits 32.4% of total, bond portfolio modified duration 3.8 with ~ $2.1 billion projected annual cash flows and roughly $1.4 billion of recent securities bought at ~4.50–4.85%, warehouse lending averaging about $1.25–$1.30 billion in Q2, a goal to return the efficiency ratio to the mid‑40s (Q1 efficiency 59.2% including merger charges, 47.6% excluding them), and continued capital flexibility (buybacks) with an estimated ~50 bps potential Basel III mortgage benefit to capital.Prosperity Bancshares Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.69B | 1.74B | 1.74B | 1.56B | 1.20B | 1.15B |
| Gross Profit | 1.21B | 1.25B | 1.14B | 1.05B | 1.11B | 1.10B |
| EBITDA | 824.69M | 849.15M | 647.39M | 565.42M | 694.47M | 689.30M |
| Net Income | 528.88M | 542.84M | 479.39M | 419.32M | 524.52M | 519.30M |
Balance Sheet | ||||||
| Total Assets | 43.62B | 38.46B | 39.57B | 38.55B | 37.69B | 37.83B |
| Cash, Cash Equivalents and Short-Term Investments | 1.55B | 12.28B | 12.95B | 896.74M | 880.33M | 3.06B |
| Total Debt | 2.49B | 2.15B | 3.42B | 4.03B | 4.13B | 448.10M |
| Total Liabilities | 35.41B | 30.85B | 32.13B | 31.47B | 30.99B | 31.41B |
| Stockholders Equity | 8.21B | 7.62B | 7.44B | 7.08B | 6.70B | 6.43B |
Cash Flow | ||||||
| Free Cash Flow | 535.95M | 516.98M | 451.55M | 612.20M | 464.11M | 675.71M |
| Operating Cash Flow | 556.45M | 549.51M | 472.69M | 646.36M | 506.53M | 694.73M |
| Investing Cash Flow | 44.65M | 773.91M | 1.98B | 1.09B | -1.96B | -2.72B |
| Financing Cash Flow | -1.00B | -1.55B | -940.22M | -1.71B | -666.75M | 3.23B |
Prosperity Bancshares Technical Analysis
Negative
70.05
Price Trends
68.31
Negative
69.23
Negative
67.78
Negative
Market Momentum
0.01
Positive
43.34
Neutral
52.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PB, the sentiment is Negative. The current price of 70.05 is above the 20-day moving average (MA) of 68.53, above the 50-day MA of 68.31, and above the 200-day MA of 67.78, indicating a bearish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 43.34 is Neutral, neither overbought nor oversold. The STOCH value of 52.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PB.
Prosperity Bancshares Risk Analysis
Prosperity Bancshares disclosed 46 risk factors in its most recent earnings report. Prosperity Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Prosperity Bancshares Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.49B | 7.46 | 11.63% | 3.68% | 0.67% | 0.52% | |
72 Outperform | $5.39B | 10.85 | 11.29% | 2.85% | 0.57% | 15.88% | |
68 Neutral | $7.78B | 12.20 | 10.32% | 1.93% | -2.17% | 13.60% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $6.95B | 12.72 | 6.80% | 3.31% | -0.62% | 5.42% |
* Financial Sector Average
PB
Prosperity Bancshares
67.41
<0.01
<0.01%
OZK
Bank OZK
47.66
4.25
9.79%
BOKF
Bok Financial
124.82
31.33
33.51%
HOMB
Home Bancshares
26.35
-1.18
-4.29%
Prosperity Bancshares Corporate Events
Executive/Board ChangesShareholder Meetings
Prosperity Bancshares Shareholders Back Directors and Governance
Positive
Apr 23, 2026
On April 21, 2026, Prosperity Bancshares, Inc. held its Annual Meeting of Shareholders, with 84.32% of eligible common stock represented in person or by proxy, and elected four Class I directors—Kevin J. Hanigan, William T. Luedke IV, Perry ...
Business Operations and StrategyM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Prosperity Bancshares Gains Key Approvals for Stellar Acquisition
Positive
Apr 22, 2026
On April 22, 2026, Prosperity Bancshares and Stellar Bancorp announced they had received all required regulatory approvals, including a waiver from the Federal Reserve Bank of Dallas and clearances from the FDIC and Texas Department of Banking, fo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.