PROSPERITY BANCSHARES, INC.® REPORTS THIRD QUARTER 2026 EARNINGS
Key Highlights
- ➤Q3 net income $141.5M; diluted EPS $1.18, versus $1.45 year-earlier
- ➤Adjusted Q3 net income $200.8M; diluted EPS $1.67, excluding merger-related items
- ➤Q3 net interest margin 3.73%, up 26 basis points sequentially
- ➤Q3 loans rose 28.1% to $32.060B; deposits increased 26.5% to $41.231B
- ➤Fourth-quarter dividend increased 6.67% to $0.64 per share
Expert Statements
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“I am pleased to announce that the Board of Directors approved increasing the fourth quarter 2026 dividend to $0.64 per share from the $0.60 per share that was paid in the prior four quarters, an increase of 6.7%.”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“The increase reflects the continued confidence the Board has in our company and our markets.”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“We continue to share our success with our shareholders through the payment of dividends and opportunistic stock repurchases, while also continuing to grow our capital”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“We are extremely proud of this year's growth and would like to highlight the following results.”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“These increases primarily reflect our three recent mergers.”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“We are highlighting their magnitude because they demonstrate the expertise of our associates, who have extensive experience executing acquisitions and integrating the acquired institutions.”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“Our greater scale strengthens our competitiveness, improves efficiency, and enables technology investments that would be difficult for a smaller bank”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“We remain focused on completing the operational integration of Texas Partners Bank and Stellar Bank and delivering the outcomes we believe are possible.”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“We are extremely excited about our future as a larger bank, including the potential growth in earnings”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“The Texas and Oklahoma economies continue to expand in late 2026 despite labor supply constraints and headwinds from inflation and energy prices.”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“Texas has a growing population of 31.7 million and continues to attract people and businesses with its business-friendly state government and lack of a state income tax.”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“Both states remain attractive places to live and do business.”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“I want to thank our customers, associates, directors and shareholders for their hard work, loyalty and support, which have been essential to our success.”
David Zalman, Senior Chairman and Chief Executive Officer of Prosperity Bancshares
“Our strong fundamentals and resolve position us to continue building this great bank”
PROSPERITY BANCSHARES, INC.® REPORTS THIRD QUARTER 2026 EARNINGS PR Newswire
* Completed the merger of Stellar Bancorp, Inc. into Prosperity Bancshares on July 1, 2026 * Board approved increase in dividend of 6.67%, or $0.04, to $0.64 per share for fourth quarter 2026, representing the 23rd consecutive annual dividend increase, with a compound annual growth rate of 10.4% * Third quarter net interest margin increased 26 basis points to 3.73% compared to second quarter 2026 and 49 basis points compared to third quarter 2025 * Net income of $141.5 million and diluted earnings per share of $1.18 for third quarter 2026 * Net income of $200.8 million((1)) and diluted earnings per share of $1.67(()(1)) excluding merger related expenses and other non-recurring items, for third quarter 2026 * Loans increased $7.03 billion or 28.1% and deposits increased $8.63 billion or 26.5% during third quarter 2026 * Noninterest-bearing deposits of $13.8 billion, representing 33.6% of total deposits * Allowance for credit losses on loans and on off-balance sheet credit exposure of $629.6 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans, of 1.91%((1)) * Nonperforming assets remain low at 0.41% of third quarter average interest-earning assets * Repurchased 457 thousand shares of common stock during third quarter 2026, and 1.5 million shares during 2026 HOUSTON, Oct. 28, 2026. /PRNewswire/ -- Prosperity Bancshares, Inc.(®) (NYSE: PB) ("Prosperity Bancshares"), the parent company of Prosperity Bank(®) (collectively, "Prosperity"), reported net income of $141.5 million for the quarter ended September 30, 2026, compared with $137.6 million for the same period in 2025. Net income per diluted common share was $1.18 for the quarter ended September 30, 2026, compared with $1.45 for the same period in 2025. On January 1, 2026, American Bank Holding Corporation ("American") merged into Prosperity Bancshares, and American Bank, N.A. ("American Bank") merged into Prosperity Bank (collectively, the "American Merger"). On February 1, 2026, Southwest Bancshares, Inc. ("Southwest") merged into Prosperity Bancshares, and Texas Partners Bank ("Texas Partners") merged into Prosperity Bank (collectively, the "Southwest Merger"). On July 1, 2026, Stellar Bancorp, Inc. ("Stellar") merged into Prosperity Bancshares, and Stellar Bank ("Stellar Bank") merged into Prosperity Bank (collectively, the "Stellar Merger", and together with the American Merger and the Southwest Merger, the "Mergers"). During the third quarter of 2026, Prosperity incurred merger related expenses of $69.7 million, or $0.46((1) )per diluted common share and an out of state tax settlement of $5.0 million, or $0.04((1)) per diluted common share, partially offset by a gain of $927 thousand, or $0.01((1)) per diluted common share as a result of the exchange and conversion of Visa Inc. ("Visa") Class B-2 stock. Excluding the merger related expenses, net of tax, the tax settlement, and the net gain, net of tax, net income was $200.8((1)) million and net income per diluted common share was $1.67((1)) for the third quarter of 2026. The annualized return on third quarter average assets was 1.06%. Nonperforming assets remained low at 0.41% of third quarter average interest-earning assets.
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