Prosperity Bancshares Q1 profit falls on merger costs, loans and deposits jump

Prosperity Bancshares

29/04/2026 11:41

Overview

US regional bank's Q1 net income and EPS fell yr/yr due to merger-related expenses

Loans and deposits rose sharply in Q1, mainly from recent bank acquisitions

Company repurchased $57.1 mln of shares and received approval for Stellar Bancorp acquisition

Outlook

Prosperity expects to complete Stellar Bancorp acquisition on or about July 1, 2026

Company says Texas growth in 2026 is expected to be steady, with potential for rebound

Company highlights strong economies in Texas and Oklahoma supporting spending and workforce expansion

Result Drivers

BANK MERGERS - Co said increases in loans and deposits were primarily due to the acquisitions of American Bank Holding and Southwest Bancshares

MERGER EXPENSES - Q1 net income and EPS were reduced by $42.5 mln in merger-related expenses

NET INTEREST INCOME - Higher net interest income and margin driven by repricing of assets and impact of the mergers

Company press release: ID:nPn5ZdRFWa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
$1.16
Q1 Net Income
$116.27 mln
Q1 Net Interest Income
$321.15 mln
Q1 Net Interest Margin
3.51%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and 1 "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 10.8% above its April 28 closing price of $69.48

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)