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PB NYSE Russell 1000 Earnings call

Prosperity Bancshares (PB) · Q2 2026 results and valuation

Share price: $73.02 · 2026-11-11

Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 29 Apr 2026

Net income up 45.0% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.

Only a basic analysis is available for this company at the moment.

1 · Numbers

+45.0%

Net income vs Q1 2026

Outlook given

Net income 168.6M vs 116.3M

Revenue +7.3%

Against the same quarter last year (Q2 2025) it is +24.7%, so it is not just seasonal.

2 · How management spoke

Restrained

Less upbeat than 78% of company calls

Answers to analysts: restrained, in line with the script.

Similar to last call.

3 · What stood out

Figure

Loans were $25 billion at June 30, 2026, providing a key metric for the company's reported figures.

Valuation

Is Prosperity Bancshares undervalued?

Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 10.0% growth a year (the standard assumption), the model's fair value is $102.80 a share — the stock trades 29% below it. Today's price assumes 4.8% growth a year.

Current price

$73.02

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

+4.8% for 10 yrs

Fair value / share

$102.80

Buy below

$77.10

Price vs fair value

Undervalued 29%

Price vs buy-below price

Undervalued 5%

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Key theme

    Fair value loan income increased to $4 million in the second quarter of 2026 compared to $3.7 million in the first quarter.

    Source quote
    “The fair value loan income for the second quarter of 2026 was $4 million compared to $3.7 million for the first... Excluding purchase accounting adjustments, the net interest margin for the three months ended June 30, 2026 was 3.41% compared to 3.14% for the same period in 2025 and 3.40% for the quarter ended March 31, 2026. Fair value loan income for the third quarter of 2026 is expected to be in the range of $6 million to $8 million.”
  2. Guidance

    The current guidance does not include cost savings expected to be achieved following the operational integrations of American Bank, Texas Partners Bank, and Stellar.

    Source quote
    “This does not reflect any cost savings that we expect to achieve after the operational integrations of American Bank in September Texas Partners Bank in November, and Stellar...”
  3. Fading

    The linked quarter increase was primarily due to merger-related expenses of $42.5 million and the addition of American Bank and Texas…

    Source quote
    “The linked quarter increase was primarily due to merger-related expenses of $42.5 million and the addition of American Bank and Texas... ...$217.3 million for the 3 months ended March 31, 2026, compared to $138.7 million for the quarter ended December 31, 2025, and $140.3 million for the same period in 2025. For the second quarter of 2026, we expect noninterest expense to be in the range of $176 million to $180 million.”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Restrained (was cautious)
Answers to analysts Restrained (was restrained)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone
“This represents a 20.4% increase in net income and a 14.1% increase in diluted earnings per share.”
“And it is just it is just it is just going to the lowest it is just going to the lowest bidder for the most part.”
“So I think we are still gonna have opportunities to grow and build a portfolio.”

Full figures

USD · ROIC.AI fundamentals (NYSE:PB, period end 2026-06-30)

Metric Q2 2026period end 2026-06-30 Q1 2026period end 2026-03-31 Change Q2 2025 YoY
Revenue 375.1M 349.5M +7.3% 298.6M +25.6%
Net income 168.6M 116.3M +45.0% 135.2M +24.7%
EPS 1.67 1.16 +43.6% 1.42 +17.9%
P/E today 11.6 12.7 12.2 +0.5 12.8 −0.1

Topics

Most discussed now

  • I am Charlotte Rasche, executive vice president and general counsel of Prosperity Bancshares.
  • He will be followed by Asylbek Osmonov, who will review some of Prosperity Bancshares' recent financial statistics and Tim Timanus, who...
  • Prosperity Bancshares' models really show really great net interest margin just where they are right now.
  • Once things always stabilize, Prosperity Bancshares will start-- it will start 2% to 4% organic deposit growth all the time.
  • I see Prosperity Bancshares' treasury management really growing in its products.

Faded since Q1 2026

  • Fading Prosperity Bancshares will see some overall deposit rate or cost of deposits come down a little bit, but not significant, but it...
  • Fading Prosperity Bancshares should have its normal organic growth on the deposit side with the exception of seasonal fluctuations with public…
  • Fading The increase in net interest income and net interest margin during the first quarter 2026 is primarily due to repricing...
  • Fading Does not include additional onetime merger expenses for the quarter.

Latest announcements

Official filings, newest first.

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