From The Motley Fool · Motley Fool Transcribing · · 2m
Prosperity Bancshares Q3 2026 Earnings
Prosperity Bancshares reports $200.8M adjusted net income with 41% asset growth from mergers.
In brief
Prosperity Bancshares reports $200.8M adjusted net income with 41% asset growth from mergers. Prosperity Bancshares increased its fourth-quarter dividend by 6.7% to $0.64 per share after merging three banks. Originally reported by The Motley Fool.
Q3 2026 Results
Prosperity Bancshares reported $200.8 million adjusted net income excluding $69.7 million merger-related expenses.
Asset Growth
Total assets reached $54.1 billion, a 41.1% increase from $38.3 billion in the prior year.
Loan Growth
Total loans grew $10.0 billion to $32.1 billion from $22.0 billion in the prior year.
Deposit Growth
Total deposits increased $13.4 billion to $41.2 billion, up 48.4% from $27.8 billion in the prior year.
Net Interest Margin
Tax-equivalent net interest margin rose to 3.73%, an increase of 49 basis points from 3.24% in the same quarter of the previous year.
Nonperforming Assets
Nonperforming assets totaled $193.9 million, or 0.41% of average interest-earning assets.
Dividend Increase
The company increased its fourth-quarter dividend to $0.64 per share, a 6.7% increase from $0.60 per share.
Stock Repurchase
The company repurchased 457,000 shares at an average price of $69.62 per share during Q3.
2027 Outlook
Management expects flat to slightly increasing loan growth and a net interest margin of 3.80% to 3.85% for 2027.
Cost Savings
Anticipated cost savings of $65 million to $70 million in pretax savings following system conversions.
Mergers
The company completed the merger with American Bank and is integrating Texas Partners Bank and Stellar Bank.
Loan Production
Average monthly loan production increased to $635 million from $454 million in Q2 2026.
Core Deposits
Core deposits are expected to grow 2% to 4% annually, with no reliance on wholesale deposits.
Nonperforming Assets
Nonperforming assets are projected to remain above $100 million due to acquisition activity.
Tax Settlement
A $5 million tax settlement increased the effective tax rate to 24.4% for the quarter.
2027 Guidance
The company expects $220 million to $225 million in quarterly expenses after system integrations are complete.
The short version
Prosperity Bancshares increased its fourth-quarter dividend by 6.7% to $0.64 per share after merging three banks.
