PB

It has been about a month since the last earnings report for Prosperity Bancshares (PB). Shares have lost about 0.5% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Prosperity Bancshares due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Prosperity Bancshares, Inc. before we dive into how investors and analysts have reacted as of late. Prosperity Bancshares first-quarter 2026 adjusted earnings of $1.50 per share surpassed the Zacks Consensus Estimate of $1.41. The bottom line compared favorably with earnings of $1.37 in the prior-year quarter.In the reported quarter, Prosperity Bancshares completed the acquisitions of American Bank Holding and Southwest Bancshares. Also, it announced a deal to acquire Stellar Bancorp and its subsidiary for $2 billion.Results benefited from an increase in NII and non-interest income, alongside nil provisions. Higher loans and deposit balances were other positives. However, an increase in expenses due to the merger-related charges hurt the results to some extent.Results in the reported quarter excluded merger-related expenses of $42.5 million. Including those, net income available to common shareholders was $116.3 million or $1.16 per share compared with $130.2 million or $1.37 per share in the year-ago quarter. Our estimate for net income was $115.1 million. Total revenues were $367.6 million, up 19.9% year over year. The top line surpassed the Zacks Consensus Estimate of $352.9 million.NII rose 21% year over year to $321.2 million. Also, NIM, on a tax-equivalent basis, expanded 37 basis points to 3.51%. Our estimates for NII and NIM were pegged at $295.6 million and 3.36%, respectively.Non-interest income totaled $46.5 million, up 12.5% year over year. The rise was driven by an increase in all fee-based revenue components, except for other non-interest income. Our estimate for the metric was pegged at $54.4 million.Non-interest expenses were $217.3 million, up 54.9% year over year. The rise was primarily due to merger-related expenses incurred in the reported quarter. Our estimate for non-interest expenses was $202.7 million.The efficiency ratio improved to 59.16% from 45.71% in the prior-year quarter. As...

In the first quarter of 2026, Prosperity Bancshares reported net interest income of US$321.15 million and net income of US$116.27 million, while recording very large net charge-offs of US$41.31 million, and the board declared a US$0.60 per-share dividend for the second quarter. The quarter also reflected the impact of recent bank mergers, stronger-than-expected adjusted earnings and net interest income, active share repurchases, and the appointment of Deloitte & Touche LLP as independent auditor, even as asset quality pressures increased. Next, we’ll examine how these stronger adjusted earnings alongside elevated credit costs may influence Prosperity Bancshares’ existing investment narrative. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 18 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. To own Prosperity Bancshares, you need to be comfortable with a regional bank that is leaning on acquisitions and loan growth while now facing visibly higher credit costs. The Q1 2026 results, with strong adjusted earnings but US$41.31 million of net charge offs, make credit quality the key short term swing factor, while integration of recent mergers remains the other main near term catalyst. This quarter’s news materially heightens the focus on asset quality risk. The Q2 2026 dividend declaration of US$0.60 per share, alongside active share repurchases, shows the board maintaining its capital return pattern even as charge offs spike. For investors, that combination keeps the existing narrative intact around earnings power and capital strength, but it also raises questions about how much room there is to absorb further asset quality pressure while continuing similar payouts. Yet beneath the reassuring dividend and buybacks, investors should be aware of rising net charge offs and what they might signal about... Read the full narrative on Prosperity Bancshares (it's free!) Prosperity Bancshares' narrative projects $2.2 billion revenue and $888.1 million earnings by 2029. This requires 20.0% yearly revenue growth and a $345.3 million earnings increase from $542.8 million today. Uncover how Prosperity Bancshares' forecasts yield a $77.38 fair value, a 13% upside to its current price....

Profit and margin improvement: Full-year net income rose to $543 million with diluted EPS of $5.72, and tax-equivalent NIM expanded to 3.30% in Q4 (3.26% ex-purchase accounting); management expects standalone NIM of at least 3.5% in 2026, with Stellar seen as accretive. M&A-driven growth and near-term costs: Prosperity completed the American Bank merger (effective Jan. 1, 2026), expects the Texas Partners Bank deal to close Feb. 1, 2026, and says the planned Stellar acquisition materially boosts its Houston franchise; management forecast Q1 non-interest expense of $172–176 million and $30–33 million of one-time merger charges. Asset quality and reserves: Non-performing assets rose to about $150 million (46 bps of quarterly average interest-earning assets) driven by a few larger credits, including a $35 million SNC participation, while net charge-offs declined to $5.884 million and the loan loss allowance was $333 million (≈2.21x NPAs). Interested in Prosperity Bancshares, Inc.? Here are five stocks we like better. As Energy Surges on Crack Spreads, Consider Taking Gains on 2 Small Cap Oil Stocks Prosperity Bancshares (NYSE:PB) reported higher full-year and fourth-quarter earnings for 2025, pointing to an improving net interest margin, stable expenses, and continued capital return through share repurchases. Management also used the call to highlight a series of bank transactions, including the completed merger with American Bank, an expected February closing for Texas Partners Bank, and an agreement to acquire Stellar Bancorp that executives described as strategically significant for the company’s presence in Houston and across Texas. Senior Chairman and CEO David Zalman said Prosperity posted net income of $543 million for the year ended Dec. 31, 2025, up from $480 million in 2024. Diluted earnings per share rose to $5.72 from $5.05. For the fourth quarter, net income was $139.9 million, compared with $130 million in the prior-year quarter. → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? What a Gold Miner and an Oil Trust Reveal About Today’s Market Zalman highlighted profitability and expense control metrics, including an annualized return on average assets of 1.49% and return on average tangible common equity of 13.61% for the fourth quarter. He also said the efficiency ratio, excluding certain asset and securities marks and sales im...

Prosperity Bancshares, Inc.’s PB first-quarter 2026 adjusted earnings of $1.50 per share surpassed the Zacks Consensus Estimate of $1.41. The bottom line compared favorably with earnings of $1.37 in the prior-year quarter. In the reported quarter, Prosperity Bancshares completed the acquisitions of American Bank Holding and Southwest Bancshares. Also, it announced a deal to acquire Stellar Bancorp and its subsidiary for $2 billion. Results benefited from an increase in net interest income (NII) and non-interest income, alongside nil provisions. Higher loans and deposit balances were other positives. However, an increase in expenses due to the merger-related charges hurt the results to some extent. Results in the reported quarter excluded merger-related expenses of $42.5 million. Including those, net income available to common shareholders was $116.3 million or $1.16 per share compared with $130.2 million or $1.37 per share in the year-ago quarter. Our estimate for net income was $115.1 million. Total revenues were $367.6 million, up 19.9% year over year. The top line surpassed the Zacks Consensus Estimate of $352.9 million. NII rose 21% year over year to $321.2 million. Also, the net interest margin (NIM), on a tax-equivalent basis, expanded 37 basis points to 3.51%. Our estimates for NII and NIM were pegged at $295.6 million and 3.36%, respectively. Non-interest income totaled $46.5 million, up 12.5% year over year. The rise was driven by an increase in all fee-based revenue components, except for other non-interest income. Our estimate for the metric was pegged at $54.4 million. Non-interest expenses were $217.3 million, up 54.9% year over year. The rise was primarily due to merger-related expenses incurred in the reported quarter. Our estimate for non-interest expenses was $202.7 million. The efficiency ratio improved to 59.16% from 45.71% in the prior-year quarter. As of March 31, 2026, total assets were $43.6 billion, up 13.4% from the previous quarter. Total loans were $25.3 billion, up 16% sequentially. Deposits increased 14.6% sequentially to $32.6 billion. Our estimates for total loans and total deposits were $25.3 billion and $32.8 billion, respectively. As of March 31, 2026, the common equity tier 1 ratio was 15.44%, down from 16.92% in the year-ago quarter. The total risk-based capital ratio declined to 16.69% from 18.17% in the prior-year quarte...

Image source: The Motley Fool. Wednesday, April 29, 2026 at 11:30 a.m. ET Senior Chairman and Chief Executive Officer — David E. Zalman President and Chief Operating Officer — H. E. "Tim" Timanus, Jr. Senior Executive Vice President and Chief Financial Officer — Asylbek Osmonov Senior Executive Vice President and Chief Legal Officer — Charlotte M. Rasche Vice Chairman — Kevin Hanigan David Zalman will lead off with a review of the highlights for the recent quarter. He will be followed by Asylbek Osmonov, who will review some of our recent financial statistics; and Tim Timanus, who will discuss our lending activities, including asset quality. Finally, we will open the call for questions. Before we begin, let me make the usual disclaimers. Certain of the matters discussed in this presentation may constitute forward-looking statements for purposes of the federal securities laws, and as such, may involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of Prosperity Bancshares to be materially different from future results or performance expressed or implied by such forward-looking statements. Additional information concerning factors that could cause actual results to be materially different than those in the forward-looking statements can be found in Prosperity Bancshares' filings with the Securities and Exchange Commission, including Forms 10-Q and 10-K and other reports and statements we have filed with the SEC. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. Now let me turn the call over to David Zalman. David Zalman: Thank you, Charlotte. I would like to welcome and thank everyone listening to our first quarter 2026 conference call. The first quarter of 2026 was impactful for the company, and I'm excited to announce that during the quarter, we completed the merger of American Bank Holding Corporation on January 1, 2026, and completed the merger of Southwest Bancshares, Inc. on February 1, 2026, and announced the merger of Stellar Bancorp 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. We and others believe that Prosperity is doing the right thing. Prosperity has been ranked as one of Forbes America's B...

This article first appeared on GuruFocus. Net Income: $116 million for Q1 2026, compared to $130 million for Q1 2025. Net Income per Diluted Share: $1.16 for Q1 2026, compared to $1.37 for Q1 2025. Adjusted Net Income: $149.9 million excluding merger-related expenses for Q1 2026. Adjusted Net Income per Diluted Share: $1.50 excluding merger-related expenses for Q1 2026. Loans: $25.2 billion at March 31, 2026, up 15.1% from $21.9 billion at March 31, 2025. Deposits: $32.6 billion at March 31, 2026, up 16.4% from $28 billion at March 31, 2025. Net Interest Income: $321.2 million for Q1 2026, up from $265.4 million for Q1 2025. Net Interest Margin: 3.51% for Q1 2026, compared to 3.3% for Q4 2025. Noninterest Income: $46.5 million for Q1 2026, compared to $41.3 million for Q1 2025. Noninterest Expense: $217.3 million for Q1 2026, compared to $140.3 million for Q1 2025. Efficiency Ratio: 59.2% for Q1 2026, compared to 45.7% for Q1 2025. Nonperforming Assets: $122 million at March 31, 2026, compared to $150 million at December 31, 2025. Net Charge-Offs: $41 million for Q1 2026, the largest in the bank's history. Warning! GuruFocus has detected 2 Warning Sign with MDXG. Is PB fairly valued? Test your thesis with our free DCF calculator. Release Date: April 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Prosperity Bancshares Inc (NYSE:PB) completed the merger of American Bank Holding Corporation and Southwest Bancshares, Inc., and announced the merger of Stellar Bancorp, which is expected to complete on July 1, 2026. The company was ranked as one of Forbes America's Best Banks for 2026 and has been in the top 10 for 14 consecutive years. Prosperity Bancshares repurchased approximately 837,000 shares of its common stock, enhancing shareholder value. Net interest margin increased to 3.51% for the first quarter of 2026, up from 3.3% in the previous quarter. The company reported strong noninterest-bearing deposits, comprising 32.4% of total deposits as of March 31, 2026. Net income for the first quarter of 2026 was $116 million, down from $130 million in the same period in 2025. Prosperity Bancshares incurred $42.5 million in merger-related expenses, impacting net income. Quarterly net charge-offs reached $41 million, the largest in the bank's history, primarily due to two significant credits. The efficiency...

Performance was characterized by a significant net interest margin expansion to 3.51%, driven by asset repricing and the strategic addition of acquired portfolios. The company successfully executed a major core system conversion in February, reducing processing times from days to approximately 1.5 hours to support a $50 billion-plus scale. Management attributed a record $41 million in net charge-offs to two unique, non-trending credits, including a $30 million loss on a syndicated loan to a startup insurance company. Loan growth was primarily inorganic due to mergers; excluding acquisitions, loans decreased 1.2% as the bank prioritized margin preservation over competing for low-yield, high-recourse construction deals. Texas and Oklahoma markets remain resilient with strong output growth, though management noted a cooling labor market and increased competition from out-of-state banks. Strategic positioning focuses on core deposit stability, which management views as the primary value driver for the bank's long-term return profile. Management projects a combined exit net interest margin of approximately 3.70% for 2026, assuming the successful integration of Stellar Bancorp on July 1. Non-interest expense for Q2 2026 is projected between $176 million and $180 million, excluding one-time merger charges. Operational integrations are sequenced for September 2026 (American Bank), November 2026 (Texas Partners Bank), and March 2027 (Stellar) to ensure organizational stability. Loan growth expectations remain cautious, with management forecasting flattish organic trends in the near term due to typical post-acquisition asset runoff. Following the merger with Stellar Bank, the combined entity expects to generate $500 million to $600 million in annual excess capital after dividends, providing significant flexibility for share repurchases. Incurred $42.5 million in merger-related expenses during Q1, impacting diluted EPS by $0.34. The $30 million insurance credit charge-off resulted from a sponsor failing to back an investment after a larger bank modified the loan structure to remove guarantees. Acquired $91.4 million in allowance for credit losses through the American and Texas Partners mergers to align with CECL requirements. Public fund deposits experienced a normal seasonal decrease, which was offset by the $4.1 billion in deposits acquired through mergers. Our analy...

Prosperity Bancshares (PB) 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%. 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 ca...

Prosperity Bancshares (PB) reported Q1 adjusted earnings Wednesday of $1.50 per diluted share, up fr

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 HOUSTON, April 29, 2026 /PRNewswire/ -- Prosperity Bancshares, Inc.ﾮ (NYSE: PB) ("Prosperity Bancshares"), the parent company of Prosperity Bankﾮ (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 202...

HOUSTON (AP) — HOUSTON (AP) — Prosperity Bancshares Inc. (PB) on Wednesday reported first-quarter earnings of $116.3 million. The Houston-based bank said it had earnings of $1.16 per share. Earnings, adjusted for costs related to mergers and acquisitions, were $1.50 per share. The results topped Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $1.41 per share. The financial holding company posted revenue of $488.2 million in the period. Its revenue net of interest expense was $367.6 million, also surpassing Street forecasts. Six analysts surveyed by Zacks expected $352.9 million. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PB at https://www.zacks.com/ap/PB

Prosperity Bancshares (PB) reported $367.62 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 19.9%. EPS of $1.50 for the same period compares to $1.37 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $352.9 million, representing a surprise of +4.17%. The company delivered an EPS surprise of +6.23%, with the consensus EPS estimate being $1.41. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. 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% compared to the 3.4% average estimate based on seven analysts. Efficiency Ratio: 59.2% compared to the 51.2% average estimate based on seven analysts. Net charge-offs to average loans: 0.7% versus the six-analyst average estimate of 0.1%. Average balance - Total interest-earning assets: $37.19 billion compared to the $36.19 billion average estimate based on six analysts. Total nonperforming assets: $122.11 million versus the four-analyst average estimate of $160.46 million. Total nonperforming loans: $108.71 million compared to the $147.93 million average estimate based on three analysts. Total Noninterest Income: $46.47 million compared to the $47.49 million average estimate based on seven analysts. Net Interest Income (Tax Equivalent Basis): $321.73 million versus the six-analyst average estimate of $308.79 million. Net Interest Income: $321.15 million compared to the $303.63 million average estimate based on four analysts. Nonsufficient funds (NSF) fees: $10.87 million versus $10.09 million estimated by four analysts on average. Credit card, debit card and ATM card income: $9.48 million versus the four-analyst average estimate of $9.63 million. Bank owned life insurance income: $2.6 million compared to the $2.2 million average estimate based on four analysts. View all Key...