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Get filing alertsProsperity Bancshares reports Q2 2026 net income of $168.6M, completes $10.4B Stellar merger
Filed July 29, 2026 · Period ending July 29, 2026 · ~1 min read
Key Changes
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Q2 2026 net income rose 24.7% YoY to $168.6M ($1.67/share), driven by net interest margin expansion to 3.47% (up 29 bps) from asset repricing and prior acquisitions, plus a $12.2M Visa stock exchange gain.
Exhibit 99.1 view on EDGAR → -
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Completed Stellar Bancorp acquisition on July 1, 2026, adding $10.4B in assets, $7.5B in loans, and $8.7B in deposits across 52 Houston, East Texas, and Dallas offices for 19.4M shares plus $578.7M cash.
Exhibit 99.1 view on EDGAR → -
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Declared Q3 2026 dividend of $0.60/share, payable October 1 to shareholders of record September 15.
Exhibit 99.1 view on EDGAR → -
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Exchanged all Visa Class B-2 shares for Class B-3 and Class C stock in Q2 2026, recording $12.2M unrealized gain; sold 3,045 Class C shares with remainder to be sold as permitted.
Exhibit 99.1 view on EDGAR →
Summary
Prosperity Bancshares reported strong second quarter 2026 results with net income of $168.6 million, up nearly 25% year-over-year, as the company benefited from a 29 basis point expansion in net interest margin to 3.47%. The margin improvement reflects asset repricing and the contribution from prior American and Southwest acquisitions.
Earnings per share of $1.67 rose 17.6% from the prior year quarter, with the gain also supported by a $12.2 million unrealized gain from exchanging Visa Class B-2 shares for Class B-3 and Class C stock. The filing disclosed completion of the Stellar Bancorp merger on July 1, 2026, a transformational transaction that adds $10.4 billion in assets and 52 banking offices across Houston, East Texas, and Dallas.
The deal significantly expands Prosperity's Houston market presence and was settled with 19.4 million shares plus $578.7 million in cash. The company maintained its quarterly dividend at $0.60 per share for Q3 2026. With the Stellar integration now underway, investors should watch for management commentary on cost synergies, loan portfolio integration, and the combined entity's deposit pricing strategy in a competitive Texas banking market.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Prosperity Bancshares disclosed Q2 2026 financial results via press release.
Added in current filing · verify on EDGAR →
On July 29, 2026, Prosperity Bancshares, Inc. publicly disseminated a press release announcing its financial results for the second quarter ended June 30, 2026.
The company announced its second quarter 2026 financial results through a press release. The 8-K body does not contain the actual financial figures; those are in the attached Exhibit 99.1 press release, which was not provided in this filing excerpt.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
net income of $168.6 million for the quarter ended June 30, 2026, compared with $135.2 million for the same period in 2025. Net income per diluted common share was $1.67 for the quarter ended June 30, 2026, compared with $1.42 for the same period in 2025.
Prosperity reported second quarter 2026 net income of $168.6 million, or $1.67 per diluted share, up 24.7% and 17.6% respectively from the prior year quarter. The increase was driven by higher net interest income from asset repricing and the American and Southwest mergers, plus an $8.2 million gain on Visa Class B-2 stock exchange net of investment securities sales, partially offset by higher noninterest expenses and merger costs.
Added in current filing · view on EDGAR →
Second quarter net interest margin increased 29 basis points to 3.47% compared to second quarter 2025
The net interest margin on a tax-equivalent basis expanded to 3.47% in Q2 2026 from 3.18% in Q2 2025, a 29 basis point improvement. This reflects repricing of assets, lower average balances and rates on other borrowings, and the impact of the American and Southwest acquisitions.
Added in current filing · view on EDGAR →
During the second quarter 2026, Prosperity tendered all of its shares of Visa, Inc. (“Visa”) Class B-2 common stock in exchange for a combination of Visa Class B-3 common stock and Visa Class C common stock, pursuant to the terms and subject to the conditions of Visa’s public exchange offer, which expired on May 8, 2026. Prosperity recorded an unrealized gain of $12.2 million during the second quarter 2026 based on the conversion privilege of the Class C common stock and the closing price of Visa Class A common stock. In the exchange, Prosperity received 24,246 shares of Class B-3 stock, recorded at zero cost basis, and 9,137 shares of Class C common stock and subsequently sold 3,045 shares of Class C stock.
Prosperity exchanged all its Visa Class B-2 shares for a combination of Class B-3 and Class C shares in Q2 2026, recording a $12.2 million unrealized gain. The company received 24,246 Class B-3 shares and 9,137 Class C shares, selling 3,045 Class C shares during the quarter, with plans to sell the remainder as permitted.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 30, 2026 · How we verify