At a glance
Prosperity Bancshares Inc is worth $8.55B, about 12 times its fiscal 2025 earnings. Revenue grew 4.8% to $1.25B in fiscal 2025, with 43.4% kept as profit; over 5 years it has grown 1.5% a year. It pays a 3.37% dividend yield, raised every year for at least 9 years, and returned $1.44B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +16.3% over the past year with dividends reinvested and +2.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 42.0% in the 2020 crash (S&P 500: 33.7%) and 17.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 11 months and 9 months after the lows.
The business in plain English
Formed in 1983, Prosperity Bancshares is the Houston-based parent of Prosperity Bank, a community bank that takes deposits from and makes loans to consumers and businesses in Texas and Oklahoma. Substantially all of its revenue comes from the bank. As of December 31, 2025, it ran 283 full-service locations, led by the Houston area (62), Dallas/Fort Worth (61) and West Texas (45), with 6 in Central Oklahoma and 8 around Tulsa.
Most of its revenue is net interest income: the interest it earns on loans and securities minus the interest it pays on deposits and borrowings. In 2025 that was $1.08 billion of $1.25 billion in revenue; fees and other noninterest income added $168 million. Low-cost deposits help. Noninterest-bearing checking accounts made up 33.2% of deposits at the end of 2025, and its average cost of funds was 1.61% for the year. Loans are spread across local industries, including professional firms, manufacturing, petrochemicals, and farming and ranching.
Acquisitions are a big part of its growth, including LegacyTexas in 2019 (42 banking centers). It completed mergers with American Bank Holding and Southwest Bancshares in early 2026, and in January 2026 agreed to merge with Stellar Bancorp, whose bank had 52 offices around Houston and Beaumont, in a deal valued at about $2.00 billion when announced.
Price history
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PB +16.3% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $391.3M, up 25.9% from a year earlier, and net income was $168.6M (+24.7%).
- For fiscal 2025, revenue was $1.25B (+4.8% year over year; +1.5% a year from FY2020 to FY2025) with a 43.4% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +1.5% watch |
|---|---|
| Return on equity | 7.1% weak |
| Net income / revenue | 43.4% good |
| Deposits | $32.60B |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.16B | $528.9M | — |
| FY2021 | $1.13B | $519.3M | — |
| FY2022 | $1.15B | $524.5M | — |
| FY2023 | $1.11B | $419.3M | — |
| FY2024 | $1.19B | $479.4M | — |
| FY2025 | $1.25B | $542.8M | — |
Valuation snapshot
| Market value | $8.55B |
|---|---|
| P/E ratio | 12.4 |
| Dividend yield | 3.37% |
Rank among 1514 US companies
Market value at each year end
Prosperity Bancshares’s market value went from $4.99B at the end of 2016 to $8.55B on Oct 28, 2026, up 71%; since the end of 2025 it is up 30%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $8.55B | +30.2% |
| 2025 | $6.56B | -8.5% |
| 2024 | $7.18B | +13.1% |
| 2023 | $6.35B | -4.4% |
| 2022 | $6.64B | -0.4% |
| 2021 | $6.66B | +3.8% |
| 2020 | $6.42B | +30.6% |
| 2019 | $4.92B | +13.0% |
| 2018 | $4.35B | -10.6% |
| 2017 | $4.87B | -2.4% |
| 2016 | $4.99B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PB price data to Oct 28, 2026 | +5.6% | +16.3% | +13.5% | +2.3% | +5.5% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +5.6% |
| 2025 | -5.1% |
| 2024 | +15.1% |
| 2023 | -3.4% |
| 2022 | +3.6% |
| 2021 | +7.1% |
| 2020 | -0.4% |
| 2019 | +18.2% |
| 2018 | -9.2% |
| 2017 | -0.4% |
| 2016 | +53.5% |
| 2015 | -11.7% |
| 2014 | -11.2% |
| 2013 | +53.5% |
| 2012 | +6.1% |
| 2011 | +4.7% |
| 2010 | -1.2% |
| 2009 | +39.4% |
| 2008 | +2.5% |
| 2007 | -13.3% |
| 2006 | +21.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 40.4% over that stretch · deepest drop along the way 47.6%, back to its old high 8.4 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 41.3% over that stretch · deepest drop along the way 42%, back to its old high 10.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 1.4% over that stretch · deepest drop along the way 17.6%, back to its old high 9.3 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 90 sales ($1.6M), 90 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 5, 2026 | Ned S Holmes Director | sell (plan) | $37K |
| Aug 5, 2026 | Ned S Holmes Director | sell (plan) | $37K |
| Aug 12, 2026 | Ned S Holmes Director | sell (plan) | $37K |
| Aug 12, 2026 | Ned S Holmes Director | sell (plan) | $37K |
| Jul 29, 2026 | Ned S Holmes Director | sell (plan) | $37K |
Who owns it
Large shareholders (13G filings)
| AQR Capital Management, LLC | 6.23% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.53% | Mar 31, 2026 |
| Vanguard Capital Management | 5.04% | Mar 31, 2026 |
| Dimensional Fund Advisors LP | 5% | Jun 30, 2026 |
| Victory Capital Management, Inc. | 2.91% | Jun 30, 2025 |
ETFs with the most weight in PB
| FDIQ Invesco Bloomberg Financial Data Providers ETF | 2.08% |
| NBSM Neuberger Berman Small-Mid Cap ETF | 2.07% |
| FTXO First Trust Nasdaq Bank ETF | 1.6% |
| FXO First Trust Financials AlphaDEX Fund | 0.68% |
| DFSV Dimensional US Small Cap Value ETF | 0.62% |
| PAMC Pacer Lunt MidCap Multi-Factor Alternator ETF | 0.58% |
| RFV Invesco S&P MidCap 400® Pure Value ETF | 0.54% |
| AUSF Global X Adaptive U.S. Factor ETF | 0.46% |
What could go wrong
- Absorbing several bank acquisitions at once. It closed two acquisitions in early 2026 and agreed to acquire Stellar Bancorp in a deal valued at about $2.00 billion. Integration problems, slow regulatory approval or writing down the premium paid could hit earnings.
- Tied to the Texas and Oklahoma economies. All 283 of its banking locations, as of December 31, 2025, were in Texas and Oklahoma. A regional slowdown could hit loan demand, borrowers' ability to repay and deposit growth at the same time.
- Energy loans could sour if oil falls. The bank has an energy lending portfolio and 45 locations in West Texas, including Midland-Odessa. A drop in oil and natural gas prices could raise loan losses and slow the local economy.
- Heavy reliance on real estate lending. Much of its lending is secured by real estate, including commercial property. If property values fall, collateral may not cover what borrowers owe, and losses could exceed the bank's reserves.
- Interest rate swings can squeeze lending profits. Net interest income, what it earns on loans minus what it pays on deposits, was $1.08 billion of its $1.25 billion 2025 revenue. Rate swings in either direction can squeeze that gap.
- Deposits could leave or cost more. Customer deposits are a major source of funding. Negative news about the banking industry has eroded confidence; if depositors move money elsewhere, the bank could face higher funding costs or tighter liquidity.
Recent events
- Quarterly results released
- Quarterly results released
- Acquisition or sale of assets completed; New debt or financial obligation; Executive or board change; Other company announcement
- Quarterly results released
- Shareholder vote results
- Other company announcement
- Other company announcement
- Major agreement signed
- Quarterly results released
- Investor presentation or announcement
For income and retirement investors
Prosperity has raised its dividend at least 9 years in a row through fiscal 2025, and the streak may be longer. Dividends per share rose from $1.87 in 2020 to $2.33 in 2025, about 4.5% a year. The 2025 dividend used 40.8% of earnings, a moderate payout. The yield was 3.37% as of October 28, 2026. The company spent $422 million on buybacks (repurchasing its own shares) from 2021 through 2025, yet its share count rose 29.3% between August 2021 and July 2026, mainly because it issued stock to pay for acquisitions.
In past crises the shares fell hard: 47.6% in 2008–09 and 42% in the 2020 COVID crash, regaining their prior peaks about 8 and 11 months after the lows. In the 2022 bear market they fell 17.6% and took about 9 months to recover. Single stocks, including this one, carry more risk than diversified funds.
Questions investors ask
Does Prosperity Bancshares raise its dividend every year?
Yes, so far. Prosperity raised its dividend for at least 9 consecutive years through fiscal 2025, and the streak may be longer. Dividends per share grew from $1.87 in 2020 to $2.33 in 2025, about 4.5% a year. In 2025 the dividend took 40.8% of earnings. The company's annual report (10-K) notes restrictions on its ability to pay dividends, and past increases do not guarantee future ones.
How does Prosperity Bancshares make money?
Mainly by lending. Prosperity Bank earns interest on loans and investment securities and pays a lower rate on deposits. That spread, called net interest income, was $1.08 billion of the company's $1.25 billion in revenue in 2025. Noninterest income, such as fees, added $168 million. As of December 31, 2025, the bank served consumers and businesses through 283 locations in Texas and Oklahoma, with about 804,300 deposit accounts and 65,700 loan accounts.
Is Prosperity Bancshares merging with Stellar Bancorp?
Yes, the two companies agreed to merge in a deal announced January 28, 2026. Stellar shareholders would receive 0.3803 Prosperity shares plus $11.36 in cash for each share, valued at about $2.00 billion in total based on Prosperity's $72.90 closing price on January 27, 2026. Stellar Bank had 52 offices in greater Houston and Beaumont. When Prosperity filed its 10-K on February 26, 2026, the deal still needed regulatory approvals. A July 1, 2026 company filing reported a completed acquisition.
What is Prosperity Bancshares' dividend yield and P/E ratio?
As of October 28, 2026, the dividend yield was 3.37% and the price-to-earnings (P/E) ratio was 12.4, based on 2025 diluted earnings of $5.72 per share. The yield is a year of dividends divided by the share price. The P/E shows how many dollars investors pay for each dollar of yearly profit. A modest P/E can reflect slow expected growth: revenue grew about 1.5% a year from 2020 to 2025. The company's market value was about $8.5 billion on that date.
How has Prosperity Bancshares stock performed?
Modestly over longer periods. As of October 28, 2026, the share price was up 16.3% over one year, but had gained only about 2.3% a year over five years and 5.5% a year over ten. Calendar years vary widely: the stock rose 15.1% in 2024 and fell 5.1% in 2025. Its deepest decline in about 21 years of price history was 47.9%, and its largest drop in the past year was 14.9%.