# Prosperity Bancshares Q3 2026 Earnings

> Prosperity Bancshares reports $200.8M adjusted net income with 41% asset growth from mergers.
- Title: Prosperity Bancshares Q3 2026 Earnings · The Motley Fool
- Summary: Prosperity Bancshares reports $200.8M adjusted net income with 41% asset growth from mergers. Prosperity Bancshares increased its fourth-quarter dividend by…
- Keywords: prosperity bancshares, q3 2026, earnings call, mergers, dividend increase, net interest margin, loan growth, core deposits, finance, money, Prosperity, Bancshares
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/28/prosperity-bancshares-pb-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-28T19:38:32+00:00
- Read time: 2 min
- Topics: prosperity bancshares, q3 2026, earnings call, mergers, dividend increase, net interest margin, loan growth, core deposits, finance, money
## 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.
## Key takeaway

Prosperity Bancshares increased its fourth-quarter dividend by 6.7% to $0.64 per share after merging three banks.