Prosperity Bancshares
Grows a Texas and Oklahoma banking franchise mainly by acquiring smaller community banks.
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Profile
Operates a network of community banks across Texas and Oklahoma, growing primarily through acquisitions of smaller in-footprint lenders and funding loans mostly with noninterest-bearing deposits. Underwriting stays conservative and capital levels run well above regulatory minimums, a discipline maintained since the 1983 founding.
Community banks across Texas and Oklahoma trace back to more than thirty smaller, independent lenders acquired since a 1998 initial public offering that started from one small Texas town. Acquired banks join one shared operating platform rather than new branches built from scratch.
Loans are funded by low-cost deposits, roughly a third of which carry no interest cost, alongside underwriting standards the company calls strict and a capital base held well above regulatory minimums. Local bankers keep pricing and credit authority in their communities, backed by centralized support instead of a bureaucratic structure.
A mid-2026 merger with a large Houston rival made the company the second-largest Texas-headquartered bank by deposits, extending an unbroken run of profitability dating to the company's 1983 founding.
Company facts
Categories
Key statistics
Year to date +3.8% · Average volume (30d) 889.5K
Analysts
Ratings
Target range
Latest analyst notes
| Date | Firm | Action | Prior rating | Rating | Prior target | Target |
|---|---|---|---|---|---|---|
| Jul 6, 2026 | Morgan Stanley | Downgrade | Equal-Weight | Positive | $85 | $80 |
| Jun 29, 2026 | Morgan Stanley | Reiterate | Overweight | $86 | $85 | |
| Jun 24, 2026 | Benchmark | Initiate | Hold | |||
| Apr 30, 2026 | Piper Sandler | Reiterate | Neutral | $74 | $75 | |
| Feb 2, 2026 | Barclays | Downgrade | Equal Weight | Underweight | $75 | $68 |
Earnings
EPS
Revenue
History
| Report date | EPS est | EPS | Surprise | Revenue est | Revenue | Surprise | Next session |
|---|---|---|---|---|---|---|---|
| Jul 29, 2026Q2 FY26 | $1.50 | $1.62 | +8.0% | $380.7M | $391.3M | +2.8% | +0.79% |
| Apr 29, 2026Q1 FY26 | $1.41 | $1.50 | +6.4% | $358.6M | $367.6M | +2.5% | +1.19% |
| Jan 28, 2026Q4 FY25 | $1.44 | $1.46 | +1.4% | $317.9M | $317.7M | 0.0% | +1.97% |
| Oct 29, 2025Q3 FY25 | $1.44 | $1.45 | +0.7% | $317.4M | $302.2M | −4.8% | −0.48% |
Financial highlights
| 12 quarters | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | |
|---|---|---|---|---|---|---|---|
| Revenue | $422.7M | $435.7M | $426.8M | $429.4M | $402.9M | $520.0M | |
| Gross profit | $295.3M | $310.7M | $302.2M | $317.7M | $282.3M | $391.1M | |
| Operating income | $166.4M | $172.1M | $176.0M | $179.0M | $150.3M | $215.1M | |
| Net income | $130.2M | $135.2M | $137.6M | $139.9M | $116.3M | $168.6M | |
| Diluted EPS | $1.37 | $1.42 | $1.45 | $1.49 | $1.16 | $1.67 | |
| Gross margin | 69.9% | 71.3% | 70.8% | 74.0% | 70.1% | 75.2% | |
| Operating margin | 39.4% | 39.5% | 41.2% | 41.7% | 37.3% | 41.4% |
Fiscal years (4-quarter sums)FY21 $1.15B · FY22 $1.20B · FY23 $1.56B · FY24 $1.74B · FY25 $1.71B
Balance sheet, Jun 30, 2026Cash & short-term investments $2.03B · Total debt $2.67B · Total assets $43.89B · Shareholders' equity $8.29B
Dividends
Raised for 24 straight years — most recently to $0.60 from $0.58 in Dec 2025. To collect a payout, hold shares through the close before the ex-date.
History
| Ex-date | Record | Paid | Amount | Note |
|---|---|---|---|---|
| Jun 15, 2026 | Jun 15 | Jul 1 | $0.60 | |
| Mar 13, 2026 | Mar 13 | Apr 1 | $0.60 | |
| Dec 15, 2025 | Dec 15 | Jan 2 | $0.60 | raised from $0.58 |
| Sep 15, 2025 | Sep 15 | Oct 1 | $0.58 | |
| Jun 13, 2025 | Jun 13 | Jul 1 | $0.58 | |
| Mar 14, 2025 | Mar 14 | Apr 1 | $0.58 | |
| Dec 13, 2024 | Dec 13 | Jan 2 | $0.58 | raised from $0.56 |
| Sep 13, 2024 | Sep 13 | Oct 1 | $0.56 |
Ownership
Shares outstanding 120.18M · Float 107.16M · 89.2% free float
Top shareholders13F · 13D/G · Form 4
| Holder | Shares | % outstanding | Form | Filed |
|---|---|---|---|---|
| BlackRock, Inc. | 10.23M | 8.51% | 13F | Aug 7, 2026 |
| AQR Capital Management LLC | 6.30M | 5.25% | 13F | Aug 14, 2026 |
| Vanguard Portfolio Management LLC | 6.21M | 5.17% | 13F | Aug 13, 2026 |
| State Street Corp | 5.47M | 4.55% | 13F | Aug 7, 2026 |
| Dimensional Fund Advisors LP | 5.07M | 5.00% | 13G | Jul 14, 2026 |
Insider tradesForm 4
| Date | Insider | Role | Shares | Avg price |
|---|---|---|---|---|
| Aug 26, 2026 | Ned S. Holmes | director | −1,100 | $73.19 |
| Aug 19, 2026 | Ned S. Holmes | director | −1,100 | $73.66 |
| Aug 12, 2026 | Ned S. Holmes | director | −1,100 | $74.14 |
| Aug 5, 2026 | Ned S. Holmes | director | −1,100 | $74.61 |
| Jul 29, 2026 | Ned S. Holmes | director | −1,100 | $74.26 |
Peers
- Cullen/Frost Bankers
Closest Texas relationship-banking peer, larger scale, organic growth
- Fifth Third
Comerica's Texas franchise, now backed by a $290B Fifth Third balance sheet
- Texas Capital
Dallas commercial/middle-market bank with capital-markets and IB add-ons
- International Bancshares
South Texas border bank with a matching Texas-Oklahoma two-state footprint
- First Financial Bankshares
Conservative Texas-only community bank overlapping West Texas markets
- BOK Financial
Tulsa-based regional bank with direct Oklahoma and Texas branch overlap
- Southside Bancshares
East Texas community bank expanding into shared DFW/Houston/Austin markets
CompareAfter-hours close
| Company | Price | Change | |||||
|---|---|---|---|---|---|---|---|
| Prosperity Bancshares | $72.30 | +0.01% | $8.69B | 12.5 | 10.8 | 4.9 | +25.9% |
| Cullen/Frost Bankers | $161.69 | −0.01% | $10.05B | 15.3 | 14.3 | 3.8 | +9.4% |
| Fifth Third | $54.60 | +0.14% | $49.43B | 18.6 | 11.9 | 3.3 | +45.2% |
| Texas Capital | $98.87 | +0.22% | $4.29B | 12.9 | 12.9 | 2.2 | +9.1% |
| International Bancshares | $70.93 | +0.01% | $4.41B | 10.7 | 10.9 | 4.1 | +1.0% |
| First Financial Bankshares | $33.39 | +0.03% | $4.78B | 17.9 | 15.8 | 5.5 | +10.3% |
| BOK Financial | $135.14 | −1.69% | $8.35B | 12.9 | 13.3 | 2.5 | +4.8% |
| Southside Bancshares | $31.88 | −0.06% | $948.5M | 12.6 | 10.1 | 2.1 | +10.2% |
| Median | 12.9 | 12.9 | 3.3 | +9.4% |