It's TIME. Let's GO. Join the traders at BAD BEAT Investing! For a limited time ONLY, you can join BAD BEAT for a one month TRIAL at a big discount. Why join? We are available all day during market hours to answer questions, and help you learn and grow. Best position yourself to catch rapid-return trades, while finding deep value for the long-term.We resume our regional bank coverage with the just-reported earnings out of Prosperity Bancshares, Inc. ( PB ). This bank has been growing organically and has bee ...

Bank stocks have done very well these past few months. Funds that track the space have outperformed the S&P 500 by a double-digit margin since November, as investors seem to have moved on from last quarter's credit jitters , focusing insteadI like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly ...

Investor Presentation Fourth Quarter 2025 Cautionary Note on Forward Looking Statements This presentation, and the remarks by Prosperity's management on the conference call may contain statements regarding the proposed transaction between Prosperity Bancshares, Inc. ("Prosperity") and Stellar Bancorp, Inc. ("Stellar"); future financial and operating results; benefits and synergies of the proposed transaction; future opportunities for Prosperity; the issuance of common stock of Prosperity contemplated by the ...

分组1 - Prosperity Bancshares reported quarterly earnings of $1.46 per share, exceeding the Zacks Consensus Estimate of $1.45 per share, and showing an increase from $1.37 per share a year ago, representing an earnings surprise of +0.95% [1] - The company posted revenues of $317.73 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.14%, and an increase from $307.61 million year-over-year [2] - The stock has gained approximately 5.5% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.41 on revenues of $350.24 million, and for the current fiscal year, it is $6.20 on revenues of $1.48 billion [7] - The Zacks Industry Rank for Banks - Southwest is in the top 32% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Insights - Prosperity Bancshares has agreed to acquire Stellar Bancorp in a deal valued at approximately $2 billion, which will result in the formation of the second-largest bank by deposits headquartered in Texas [1] Company Summary - The acquisition will enhance Prosperity Bancshares' market position and expand its deposit base significantly [1] - The deal reflects ongoing consolidation trends within the banking industry, particularly among regional banks [1]

Financial Performance - Net income for Q4 2025 was $139.9 million, an increase of 7.6% from $130.1 million in Q4 2024, with diluted earnings per share rising to $1.49 from $1.37[4][11] - For the year ended December 31, 2025, net income was $542.8 million, a 13.2% increase from $479.4 million in 2024, with diluted earnings per share rising to $5.72 from $5.05[6][20] - Net income for the three months ended December 31, 2025, was $139,907,000, an increase from $137,556,000 in the previous quarter[72] - Net income excluding merger-related provisions and expenses for Q4 2025 was $137,312 million, slightly down from $137,605 million in Q3 2025[104] - The company’s net income for the year-to-date period reached $542,843 million, compared to $479,386 million for the same period last year, indicating a growth of 13.2%[104] Deposits and Loans - Total deposits increased by $700.4 million during Q4 2025, representing a 10.1% annualized growth rate[6][26] - Total deposits increased to $28,482,484 thousand at the end of December 2025, up from $27,782,094 thousand at the end of September 2025[67] - Total loans held for investment amounted to $20,486,415 thousand as of December 31, 2025, a decrease from $20,738,294 thousand on September 30, 2025[67] - The loan to deposit ratio decreased to 76.6% from 79.3% in the previous quarter, indicating a tighter lending environment[93] - Loans held for investment amounted to $20,603,235,000 for the three months ended December 31, 2025, with an interest yield of 5.83%[79] Mergers and Acquisitions - The company completed the merger with American Bank Holding Corporation on January 1, 2026, enhancing its market presence[4][5] - Prosperity Bancshares announced the acquisition of Stellar Bancorp, which will elevate its deposit rank in Houston from 9th to 5th, making it the largest Texas-based bank in the market[6][9] - Prosperity Bancshares signed a definitive merger agreement with Stellar Bancorp, Inc., which reported total assets of $10.807 billion as of December 31, 2025[34] - Prosperity Bancshares also announced a merger agreement with Southwest Bancshares, Inc., which had total assets of $2.426 billion as of December 31, 2025[36] - The total consideration for the Stellar acquisition is valued at approximately $2.002 billion, based on a closing price of $72.90 on January 27, 2026[35] Asset Management - As of December 31, 2025, Prosperity Bancshares had total assets of $38.463 billion and operated 301 full-service banking locations[43] - Total assets reached $38,463,425 thousand at the end of December 2025, compared to $38,330,469 thousand at the end of September 2025[67] - The company reported a total of $1,950,000 thousand in other borrowings as of December 31, 2025, down from $2,400,000 thousand on September 30, 2025[67] - Total assets were reported at $37,665,928 thousand in Q4 2025, a decrease from $39,627,399 thousand in Q4 2024[91] - The company maintains goodwill of $3,503,127 thousand as of December 31, 2025, unchanged from previous periods[67] Noninterest Income and Expenses - Noninterest income for Q4 2025 was $42.8 million, up from $39.8 million in Q4 2024, driven by increases in service charges and other noninterest income[6][13] - Noninterest expense decreased to $138.7 million in Q4 2025 from $141.5 million in Q4 2024, primarily due to a reversal of the 2024 FDIC special assessment[6][19] - Total noninterest income increased to $42,780,000 from $41,238,000 in the prior quarter[71] - Total noninterest expense remained stable at $138,712,000 compared to $138,635,000 in the previous quarter[71] - Noninterest income rose to $42,780 from $42,982, a slight decrease of 0.5%[106] Credit Quality - Nonperforming assets were reported at $150.8 million, or 0.46% of quarterly average interest-earning assets, reflecting a slight increase from 0.36% in Q3 2025[6][27] - The allowance for credit losses on loans was $371.4 million, with a ratio of 1.53% of total loans, showing a decrease from 1.59% in Q4 2024[6][29] - Nonperforming assets to average interest-earning assets ratio increased to 0.46% from 0.36% in the previous quarter[101] - Net charge-offs for the year ended December 31, 2025, were $18.1 million, an increase of 23.9% compared to $14.6 million for the year ended December 31, 2024[31] - Nonperforming assets to loans and other real estate ratio rose to 0.69%, up from 0.54% in the prior quarter[101] Shareholder Returns - Prosperity Bancshares declared a cash dividend of $0.60 per share for the first quarter of 2026, payable on April 1, 2026[32] - A stock repurchase program was announced to acquire up to 5% of outstanding common stock, approximately 4.87 million shares, over one year[33] - Cash dividends paid per common share increased to $0.60 from $0.58 in the previous quarter[72] - Tangible book value per share rose to $43.64 in Q4 2025, compared to $43.23 in Q3 2025[105] - Average shareholders' equity increased to $7,668,802 million in Q4 2025 from $7,657,978 million in Q3 2025[105]

Group 1 - Prosperity Bancshares announced the acquisition of Stellar Bancorp in a deal valued at $2 billion, which will be executed through a combination of cash and stock [1]

Core Viewpoint - Prosperity Bancshares, Inc. has announced a definitive merger agreement to acquire Stellar Bancorp, Inc., which will create the second largest bank by deposits headquartered in Texas, enhancing their market presence and operational scale [1][5][7]. Company Overview - Prosperity Bancshares, Inc. is a regional financial holding company based in Houston, Texas, with total assets of $38.463 billion as of December 31, 2025, providing a range of banking services across Texas and Oklahoma [11]. - Stellar Bancorp, Inc. operates Stellar Bank, which has total assets of $10.807 billion, total loans of $7.301 billion, and total deposits of $9.021 billion as of December 31, 2025 [1][13]. Merger Details - Under the merger agreement, Prosperity will issue 0.3803 shares of its common stock and $11.36 in cash for each outstanding share of Stellar common stock, valuing the total consideration at approximately $2.002 billion based on Prosperity's closing price of $72.90 on January 27, 2026 [2]. - The merger has been unanimously approved by the Boards of Directors of both companies and is expected to close in the second quarter of 2026, pending regulatory approvals and shareholder consent [7]. Leadership Changes - Following the merger, Robert R. Franklin, Jr. will join Prosperity Bank as Vice Chairman, and Ramon Vitulli will become Houston Area Chairman, with additional Stellar management retaining leadership roles in the combined organization [3][4]. Strategic Rationale - The merger is expected to create a stronger banking franchise in Texas, enhancing the ability to serve customers with greater scale and expanded capabilities, while also maintaining a commitment to community banking [5][6].

оо As of September 30, 2025, Prosperity Bancshares, Inc. is a $38.330 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses, and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and ...

Core Viewpoint - Prosperity Bancshares, Inc. and Southwest Bancshares, Inc. have announced the approval of a merger, with Prosperity continuing as the surviving corporation, and the merger of Texas Partners Bank into Prosperity Bank to follow [1][2]. Group 1: Merger Details - Shareholders of Southwest have approved the merger with Prosperity, which is expected to be completed on February 1, 2026, pending customary closing conditions [2]. - The merger has received approvals from the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Texas Department of Banking [1]. Group 2: Company Profiles - Prosperity Bancshares, Inc. is a regional financial holding company based in Houston, Texas, with assets of $38.330 billion as of September 30, 2025, providing a range of personal banking services and investments [3]. - Prosperity operates 301 full-service banking locations across Texas and Oklahoma, focusing on community banking and offering various financial solutions [4]. - Southwest Bancshares, Inc., founded in 2006, is the holding company for Texas Partners Bank, which has assets of $2.52 billion as of September 30, 2025, and serves Central and South Texas with a focus on community relationships [5].