A Business at a Glance
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PROSPERITY BANCSHARES INC
PB
$6.9B
Mkt Cap
$73.15
+0.65%
PROSPERITY BANCSHARES INC (PB) has a current P/E ratio of 12.8, compared to its historical median P/E of 12.7. The stock is currently considered Fair based on its historical valuation range.
PROSPERITY BANCSHARES INC (PB) has a 5-year average return on invested capital (ROIC) of 14.1%. This indicates solid capital allocation.
PROSPERITY BANCSHARES INC (PB) has a market capitalization of $6.9B. It is classified as a mid-cap stock.
Yes, PROSPERITY BANCSHARES INC (PB) pays a dividend with a trailing twelve-month yield of 3.19%. The company also returns capital through share buybacks, with a buyback yield of 2.26%.
Based on historical P/E analysis, PROSPERITY BANCSHARES INC (PB) appears fair. The current P/E of 12.8 is 1% above its historical median of 12.7. The estimated fair value CAGR (P/E method) is 0.6%.
PROSPERITY BANCSHARES INC (PB) operates in the State Commercial Banks industry, within the Financials sector.
PROSPERITY BANCSHARES INC (PB) reported annual revenue of $1.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Prosperity Bancshares, Inc. is a Texas-based financial holding company that operates Prosperity Bank, a community-focused regional bank providing a comprehensive array of financial products and services to businesses and consumers across Texas and Oklahoma. As of December 31, 2025, the Bank operated 283 full-service banking locations distributed across multiple markets including Houston, Dallas/Fort Worth, South Texas, Central Texas, West Texas, East Texas, Bryan/College Station, and Oklahoma, serving diverse customer bases across industries including professional services, manufacturing, petrochemicals, farming, ranching, tourism, and recreation. The company generates substantially all revenues from its bank subsidiary's core lending and deposit operations, employing a community banking philosophy emphasizing responsive customer service and prudent lending practices while maintaining low funding costs through stable customer relationships. Prosperity Bank has grown through a combination of organic expansion, new banking center openings, and strategic acquisitions, including the completed mergers of Tradition Bank (2016), LegacyTexas Bank (2019), FirstCapital Bank of Texas (2023), and Lone Star State Bank of West Texas (2024), with additional acquisitions of American Bank (January 2026) and Texas Partners Bank (February 2026) expanding its market presence. The company's competitive positioning derives from its combination of community banking responsiveness and the operational sophistication of a larger regional bank holding company, enabling it to compete effectively against both small community banks and branches of larger regional institutions while maintaining profitability through disciplined cost controls and sound asset quality management.
【Integration and margin expansion】 Management expects net interest margin to continue improving, with the tax-equivalent basis margin reaching 3.3% in Q4 2025 compared to 3.05% in the prior year period, reflecting the anticipated tailwinds from deposit growth and rate environment dynamics. The company is focused on realizing cost savings from the American Bank and Texas Partners Bank acquisitions following system conversions scheduled later in 2026, with management historically outperforming cost-save expectations. Loan growth is expected to accelerate in 2026 as the company transitions from a period of intentional balance sheet shrinkage to growth, supported by construction deals approved but not yet funded and the addition of acquired loan portfolios, though organic growth is anticipated to be in the low single digits. Management remains confident in the Texas banking market and expects to manage competitive pressures through its Texas-based positioning and community banking approach, while capital deployment through share repurchases is anticipated to resume in the near term.
No forward guidance provided.
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.2B | 1.2B | 1.2B | 1.1B | 1.2B | 1.1B |
| Net Income | 543M | 543M | 479M | 419M | 525M | 519M |
| EPS | $5.72 | $5.72 | $5.05 | $4.51 | $5.73 | $5.05 |
| Free Cash Flow | 517M | 517M | 452M | 612M | 464M | 676M |
| ROIC | 14.3% | 15.8% | 14.1% | 13.4% | 13.0% | 14.2% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.00 | 4.05 | 4.32 | 4.45 | 4.63 | 4.89 |
| Dividends/Share | $2.33 | $2.33 | $2.26 | $2.21 | $2.11 | $1.79 |
| Operating Income | 1.1B | 1.1B | 1.0B | 1.0B | 756M | 713M |
| Operating Margin | 85.9% | 85.9% | 85.7% | 92.1% | 65.7% | 62.9% |
| ROE | 7.1% | 7.2% | 6.6% | 6.1% | 8.0% | 8.3% |
| Shares Outstanding | 95M | 95M | 95M | 93M | 92M | 103M |
PROSPERITY BANCSHARES INC passes 2 of 9 quality checks, indicating weak fundamentals.
PROSPERITY BANCSHARES INC trades at 12.8x trailing earnings, compared to its 15-year median P/E of 12.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 14.4x vs a median of 11.3x. The company's 5-year average ROIC is 14.1%. Total shareholder yield (dividends + buybacks) is 5.5%. At current prices, the estimated annualized return to fair value is -0.6%.
PROSPERITY BANCSHARES INC (PB) has a net profit margin of 43.4%. This is a strong margin indicating high profitability.
PROSPERITY BANCSHARES INC (PB) generated $517 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
PROSPERITY BANCSHARES INC (PB) has a debt-to-equity ratio of 4.05. This indicates higher leverage, which may increase financial risk.
PROSPERITY BANCSHARES INC (PB) reported earnings per share (EPS) of $5.72 in its most recent fiscal year.
PROSPERITY BANCSHARES INC (PB) has a return on equity (ROE) of 7.2%. This indicates moderate shareholder returns.
The Ledger Terminal provides 16 years of financial data for PROSPERITY BANCSHARES INC (PB), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
PROSPERITY BANCSHARES INC (PB) has a book value per share of $80.25, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects net interest margin to continue improving, with the tax-equivalent basis margin reaching 3.3% in Q4 2025 compared to 3.05% in the prior year period, reflecting the anticipated tailwinds from deposit growth and rate environment dynamics. The company is focused on realizing cost savings from the American Bank and Texas Partners Bank acquisitions following system conversions scheduled later in 2026, with management historically outperforming cost-save expectations. Loan growth is expected to accelerate in 2026 as the company transitions from a period of intentional balance sheet shrinkage to growth, supported by construction deals approved but not yet funded and the addition of acquired loan portfolios, though organic growth is anticipated to be in the low single digits. Management remains confident in the Texas banking market and expects to manage competitive pressures through its Texas-based positioning and community banking approach, while capital deployment through share repurchases is anticipated to resume in the near term.