Prosperity Bancshares posts higher Q4 prift, to buy Stellar Bancorp in $2 bln deal

Prosperity Bancshares

28/01/2026 11:57

Correct typo in headline

Overview

Regional bank's Q4 net income rose 7.6% yr/yr, driven by higher net interest income

EPS for Q4 increased 8.8% yr/yr

Company announced merger with Stellar Bancorp, enhancing Texas market position, in deal valued at about $2.002 bln

Outlook

Company expects Stellar Bancorp acquisition to enhance Texas footprint

Prosperity Bancshares sees merger with Southwest Bancshares effective February 1, 2026

Company anticipates increased Houston bank deposit rank post-Stellar acquisition

Result Drivers

NET INTEREST INCOME - Increase in net interest income contributed to higher Q4 earnings

DEPOSIT GROWTH - Deposits increased by $700.4 million during Q4 2025

MERGER ACTIVITY - Completion of American Bank acquisition and pending Stellar Bancorp merger to enhance Texas presence

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 EPS
$1.49
Q4 Net Income
$139.91 mln
Q4 Net Interest Income
$274.95 mln
Q4 Net Interest Margin
3.30%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Prosperity Bancshares Inc is $77.00, about 5.6% above its January 27 closing price of $72.90

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn1gxSbFa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)