Prosperity Bancshares reported second-quarter 2026 net income of $168.6 million, or $1.67 per diluted share, versus $135.2 million and $1.42 a year earlier. Adjusting for non-recurring items (Visa stock exchange gain and merger expenses), adjusted net income was $162.7 million and adjusted diluted EPS was $1.62. The company recorded a tax-equivalent net interest margin of 3.47% for the quarter and announced completion of the Stellar merger on July 1, 2026.

Financial Highlights

  • Net income: $168.6 million for the quarter ended June 30, 2026 (Q2 2025: $135.2 million).
  • Diluted earnings per share: $1.67 for Q2 2026; adjusted diluted EPS (excluding net gain and merger expenses) $1.62.
  • Net interest income before provision: $330.6 million for Q2 2026; tax-equivalent net interest margin 3.47% (Q2 2025: 3.18%).
  • Total assets: $43.873 billion at June 30, 2026 (June 30, 2025: $38.417 billion); total deposits $32.600 billion.
  • Allowance for credit losses on loans and off-balance sheet exposure: $420.5 million; ACL on loans $382.8 million (1.53% of total loans) and 1.61% excluding Warehouse Purchase Program loans.

Business Highlights

  • Completed three acquisitions in 2026 timeline: American (January 1), Southwest (February 1) and Stellar (completed July 1), expanding branch footprint and scale across Texas and Oklahoma; Stellar added 52 offices and reported ~$10.413 billion in assets at June 30, 2026.
  • Branch network and locations: following transactions, Prosperity operates 363 full-service banking locations across Texas and Oklahoma, including new footprint in Houston, Beaumont, East Texas and Dallas from Stellar.
  • Deposit composition: strong liquidity with $10.7 billion in noninterest-bearing deposits representing 32.9% of total deposits as of June 30, 2026.
  • Capital and returns: period-end shareholders’ equity $8.305 billion; period-end tangible book value per share $43.48 and tangible equity to tangible assets ratio 10.96%.
  • Shareholder actions: declared Q3 2026 cash dividend of $0.60 per share and repurchased ~200,000 shares in Q2 2026 (1.04 million shares repurchased year-to-date 2026).

Original SEC Filing:

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