Prosperity Bancshares, Inc. (PB) Earnings
Prosperity Bancshares, Inc. is expected to report next earnings on July 29, 2026 (in NaN days), with a consensus EPS estimate of $1.54. PB has beaten EPS estimates in 8 of its last 12 reported quarters (average surprise +2.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 29, 2026 | $1.41 | $1.50 | +6.4% | $368M | +2.5% |
| Jan 28, 2026 | $1.44 | $1.46 | +1.4% | $318M | -11.8% |
| Oct 29, 2025 | $1.44 | $1.45 | +0.7% | $302M | -4.8% |
| Jul 23, 2025 | $1.40 | $1.42 | +1.4% | $311M | -2.3% |
| Apr 23, 2025 | $1.35 | $1.37 | +1.5% | $295M | -4.2% |
| Jan 29, 2025 | $1.33 | $1.37 | +3.0% | $295M | -4.0% |
| Oct 23, 2024 | $1.31 | $1.34 | +2.3% | $291M | -3.6% |
| Jul 24, 2024 | $1.18 | $1.17 | -0.8% | $293M | +0.2% |
| Jan 24, 2024 | $1.17 | $1.02 | -12.8% | $263M | -6.1% |
| Oct 25, 2023 | $1.15 | $1.20 | +4.3% | $267M | -4.8% |
| Jul 26, 2023 | $1.15 | $0.94 | -18.3% | $266M | -6.5% |
| Jan 25, 2023 | $1.49 | $1.51 | +1.3% | $284M | -4.5% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · April 29, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
David Zalman mentioned the company completed mergers with American Bank Holding Corporation on January 1st, 2026, and Southwest Bank Shares Inc. on February 1st, 2026, and announced the merger of Stellar Bancorp with regulatory approvals and expect to complete on July 1st, 2026. Also completed a core system conversion in February. Net income was $116 million for three months ending March 31, 2026, compared with $130 million for the same period in 2025. Loans increased primarily due to the mergers. Deposits increased primarily due to the mergers. Osobek Osmanov discussed net interest income, net interest margin, non-interest income and expense, and efficiency ratio. Tim Tumanis talked about non-performing assets, net charge-offs, loan production, and loan composition.
Guidance
Projected margin for second quarter would be flat and a little slightly higher than the first quarter. For the second quarter of 2026, expect non-interest expense to be in the range of $176 to $180 million. Fair value loan income for the second quarter of 2026 is expected to be in the range of $3 to $4 million. Long-term model shows combined NIM exiting around 370 in 2026 with average around 360. For Stellar, estimated pre-tax fair value income from loans and securities in 2027 around $10 to $12 million.
Segment performance
Loans were $25.2 billion at March 31st, 2026, an increase of $3.3 billion, or 15.1%, compared with 21.9 billion at March 31st, 2025. Deposits were 32.6 billion at March 31st, 2026, an increase of 4.6 billion or 16.4% compared with 28 billion at March 31st, 2025. Net interest income before provision for credit losses for the three-month end of March 31, 2026, was $321.2 million, an increase of $55.8 million compared to $265.4 million for the same period in 2025 and increase of $46.2 million compared to $275 million for the quarter ended December 31, 2025. Non-interest income was $46.5 million for the three months ended March 31, 2026, compared to $42.8 million for the quarter ended December 31, 2025, and $41.3 million for the same period in 2025. Non-interest expense was $217.3 million for the three months ended March 31, 2026, compared to $138.7 million for the quarter ended December 31, 2025, and $140.3 million for the same period in 2025. The efficiency ratio was 59.2% for the three months ended March 31, 2026, compared to 43.7% for quarter ended December 31, 2025, and 45.7% for the same period in 2025. Excluding merger related expenses, the efficiency ratio was 47.6% for the three month ended March 31, 2026.
Risks & headwinds
Certain matters discussed may constitute forward-looking statements with known and unknown risks, uncertainties, etc. Two large charge-offs in the quarter, one related to a startup insurance company and one to a long-time client in the buy here, pay here car space, which are one-offs but need to be monitored. Competition from out-of-state banks affecting loan spreads, deposit rates, and loan growth. Potential loan runoff post-acquisitions as historically seen with previous acquisitions.
Analyst Q&A
Q: On NIM guidance, how is margin moving forward next quarter and with Stellar, and any one-time factors in Q1?
A: Projected margin for second quarter flat and slightly higher, factors like loan income from non-accrual loans not expected in Q2 and fewer calendar days impacting Q1.
Q: On bond book, run rate of rent yield and new securities rate?
A: Good run rate, bought some securities with new rate between $450 and $485.
Q: On competition, loan spreads, deposit rates, loan growth in Texas?
A: Texas still good for growth, competing with out-of-state banks on loans and deposits, some out-of-state banks offering lower rates, but focusing on core deposits.
Q: On deposit growth, loan-to-deposit ratio?
A: Deposit growth normal with seasonal fluctuations, loan-to-deposit ratio around 75-80%, policy to discuss if hitting 85%.
Q: On capital side, Basel III benefit and buyback appetite?
A: Basel III benefits mortgage loans, expect capital benefit, continue buyback if stock price is opportunity.
Q: On Stellar's first quarter net income, tracking above projections?
A: Clean number, feel good about earning prospects entering Q2.
Q: On core system conversions timeline for acquired banks?
A: American Bank operational integration scheduled for September 2026, Texas Partners Bank for November 2026, Stellar for March 8th.
Q: On large charge-offs, details?
A: Big one related to insurance company with higher cancellation rates than model, other related to long-time client in car space.
Q: On strategy, density in Texas or new markets?
A: Focus on integrating acquisitions, goal to be one of Texas biggest banks, but at a pace.
Q: On expenses and efficiency ratio guidance?
A: Working toward cost savings from mergers, goal to get back to mid-40s efficiency ratio.
Q: On loan accretion income and Stellar projection?
A: Q2 stays $3-4 million, with Stellar addition, depends on rate environment, estimated pre-tax income from Stellar in 2027 around $10-12 million.
Q: On $30 million charge-off reserve?
A: Reserved half last year, charged off remaining this quarter.
Q: On Stellar portfolio runoff?
A: Cautious as historically lost loans post-acquisitions, takes time to integrate.
Q: On warehouse lending and construction outlook?
A: Warehouse lending expected higher in Q2, construction losing deals due to competition but establishing bucket for A-plus clients.
Q: On Stellar deal pricing and accretion?
A: Happy with deal, think accretion will be there, estimates for 2027 better than planned.