Prosperity Bancshares (PB)
Grows a Texas and Oklahoma banking franchise mainly by acquiring smaller community banks.
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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
Target rangeAs of Sep 22, 2026
Latest analyst notes
| Date | Firm | Action | Prior | Current |
|---|---|---|---|---|
| Sep 8, 2026 | Morgan Stanley | Downgrade | ||
| Jul 6, 2026 | Morgan Stanley | Downgrade | Target: $85 | Target: $80 |
| Jun 29, 2026 | Morgan Stanley | Reiterate | Rating: —Target: $86 | Target: $85 |
| Jun 24, 2026 | Benchmark | Initiate | Rating: — | |
| Apr 30, 2026 | Piper Sandler | Reiterate | Rating: —Target: $74 | Target: $75 |
EPSReportedEstimate
RevenueReportedEstimate
Balance sheet, Jun 30, 2026Cash & short-term investments $2.03B · Total debt $2.67B · Total assets $43.89B · Shareholders' equity $8.29B
- Revenue
- $520.0M
- Operating income
- $215.1M
- Net income
- $168.6M
HistoryDividendAnnual yield
| Institutions | 74.81% | 89.90M shares | |
|---|---|---|---|
| 460 holders · as of Jun 30, 2026 | |||
| Insiders | 2.28% | 2.74M shares | |
| 22 holders · as of Sep 18, 2026 | |||
| Other | 22.91% | 27.54M shares | |
| remainder | |||
120.18M company shares as of Sep 23, 2026 · institutions as of Jun 30, 2026 · holders as of their latest filing
Top shareholders13F · 13D/G · Form 4
| Holder | Stake | Shares | Date |
|---|---|---|---|
BlackRock, Inc.Institution | 8.51% | 10.23M | as of Jun 30, 2026 |
AQR Capital Management LLCInstitution | 5.25% | 6.30M | as of Jun 30, 2026 |
Vanguard Portfolio Management LLCInstitution | 5.17% | 6.21M | as of Jun 30, 2026 |
State Street CorpInstitution | 4.55% | 5.47M | as of Jun 30, 2026 |
Dimensional Fund Advisors LPInstitution | 4.22% | 5.07M | as of Jun 30, 2026 |
Insider tradesForm 4
| Date | Insider | Role | Shares | Avg price |
|---|---|---|---|---|
| Sep 16, 2026 | Ned S. Holmes | director | −1,100 | $70.94 |
| Sep 9, 2026 | Ned S. Holmes | director | −1,100 | $71.42 |
| Sep 2, 2026 | Ned S. Holmes | director | −1,100 | $71.76 |
| Aug 26, 2026 | Ned S. Holmes | director | −1,100 | $73.19 |
| Aug 19, 2026 | Ned S. Holmes | director | −1,100 | $73.66 |
- 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
Compare
| Company | Price | Change | |||||
|---|---|---|---|---|---|---|---|
| Prosperity Bancshares | $68.49 | −0.54% | $8.28B | 11.9 | 10.2 | 4.7 | +25.9% |
| Cullen/Frost Bankers | $155.90 | −0.16% | $9.70B | 14.8 | 13.7 | 3.7 | +9.4% |
| Fifth Third | $52.39 | −0.70% | $47.82B | 18.0 | 12.1 | 3.2 | +45.2% |
| Texas Capital | $94.71 | +0.25% | $4.11B | 12.4 | 12.3 | 2.1 | +9.1% |
| International Bancshares | $69.55 | −0.29% | $4.34B | 10.5 | 10.7 | 4.1 | +1.0% |
| First Financial Bankshares | $32.26 | −0.15% | $4.63B | 17.3 | 15.3 | 5.4 | +10.3% |
| BOK Financial | $130.98 | −0.05% | $7.96B | 12.3 | 12.6 | 2.3 | +4.8% |
| Southside Bancshares | $31.01 | −0.51% | $927.4M | 12.3 | 9.9 | 2.0 | +10.2% |
| Median | 12.4 | 12.3 | 3.2 | +9.4% |