# Prosperity Bancshares (PB.US)

Canonical: https://gigainvestors.com/s/PB

Analysis as of: 2026-10-16T07:31:03.779Z. Financial observations: FY2015–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $67.46 per share; close as of 2026-10-15.

Estimated value: low $64.14 per share, central $80.18 per share, high $106.91 per share. Buy at or below the central value $80.18 per share. Valuation as of 2026-10-16T07:31:03.779Z; scenarios are not confidence intervals.

Expected annual return: 10.8% at the stated quote. About 10.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- Financial history: 10 years

- Profitable years in the last ten: 10

- Required profitable years: 9

- Return on common equity variation (informational): 0.13×

Chart: Net income; fiscal year observations.

- FY2016: $274M

- FY2017: $272M

- FY2018: $322M

- FY2019: $333M

- FY2020: $529M

- FY2021: $519M

- FY2022: $525M

- FY2023: $419M

- FY2024: $479M

- FY2025: $543M

### moat: pass

- Tangible common book per share

- Parent-total proxy for preferred equity

- Bank / P&C ROTE, median of available years: 14.8%

- Required median return: 12.0%

- Return uses tangible common equity: Yes

- Bank ROTE, second-lowest year: 12.4%

- Cost / income, median: 43.3%

- Years with reported combined ratio: 0

Chart: Return on tangible common equity; fiscal year observations.

- FY2016: 16.2%

- FY2017: 14.4%

- FY2018: 15.2%

- FY2019: 12.5%

- FY2020: 18.7%

- FY2021: 16.6%

- FY2022: 15.4%

- FY2023: 11.6%

- FY2024: 12.4%

- FY2025: 13.4%

### economics: pass

- Tangible common book per share

- Parent-total proxy for preferred equity

- Book value per share + reinvested dividends, annualized return: 12.7%

- Book return interval: 10 years

- Starting book value per share: $22.05

- Ending book value per share: $42.79

Chart: Annual book + dividend return; fiscal year observations.

- FY2016: 16.0%

- FY2017: 17.1%

- FY2018: 17.4%

- FY2019: 25.0%

- FY2020: -10.9%

- FY2021: 17.9%

- FY2022: 16.5%

- FY2023: 10.4%

- FY2024: 10.3%

- FY2025: 10.8%

### management: fail

- Tangible common book per share

- Parent-total proxy for preferred equity

- book per share gain below retained common earnings per share

- Diluted shares, 10-year annual growth: 3.1%

- Diluted shares, 5-year annual growth: 0.4%

- Share growth excluding flagged crisis recapitalisations: 3.1%

- Five-year share growth excluding flagged crisis recapitalisations: 0.4%

- Flagged crisis recapitalisations: 0

- Book created / earnings retained after dividends and buybacks: 0.91×

- Book value created per share: $20.74

- Earnings retained per share after dividends and buybacks: $22.90

Chart: Shares (first year = 100); fiscal year observations.

- FY2015: 100

- FY2016: 99

- FY2017: 99

- FY2018: 100

- FY2019: 105

- FY2020: 133

- FY2021: 132

- FY2022: 131

- FY2023: 133

- FY2024: 136

- FY2025: 136

### accounting: pass

- Financial accounting warning count: 0

- Deposits, annualized growth: 4.9%

- Known restatement years: 0

- Years loan growth exceeded twice deposit growth: 5

- Years credit losses exceeded peer median: 3

## Holders

- [Martin Whitman](https://gigainvestors.com/TA): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

The price assumes profits grow 5.2% a year forever · "PB Q1 Deep Dive: Loan Growth Sluggish, Margin Expansion Offsets Mixed Lending Environment" (finance.yahoo.com, Jun 2025) · net income +13.2%

Story as of 2026-10-16T09:59:22.100Z; price observation 2026-10-15.

The price assumes profits grow 5.2% a year forever

- 2025-06-23: PB Q1 Deep Dive: Loan Growth Sluggish, Margin Expansion Offsets Mixed Lending Environment ([finance.yahoo.com](https://finance.yahoo.com/news/pb-q1-deep-dive-loan-181801915.html))

### Net income · FY2025

net income +13.2%; source https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm; observed 2026-02-26.

- FY2016: $274M 

- FY2017: $272M 

- FY2018: $322M 

- FY2019: $333M 

- FY2020: $529M 

- FY2021: $519M 

- FY2022: $525M 

- FY2023: $419M 

- FY2024: $479M 

- FY2025: $543M 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in regional banking; annual sales are USD 1.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm#000119312526077437 (filed 2026-02-26); FY2025: revenue 1249793000.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PB.US: Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts; and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, and agricultural and non-real estate agricultural loans; construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery. In addition, it provides digital banking, internet banking, mobile banking, trust and wealth management, retail brokerage, mortgage services, and treasury management, and debit and credit cards services. The company was incorporated in 1983 and is headquartered in Houston, Texas.

### Why customers stay

It earns 14.8% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on tangible equity observations [[2016,0.16186171699646515],[2017,0.14442545292647735],[2018,0.15186286982751135],[2019,0.1249838392038365],[2020,0.18716978354432978],[2021,0.16570227153503794],[2022,0.1535293101782876],[2023,0.11585715272501208],[2024,0.12389415295042874],[2025,0.13365881979845412]]; median 0.14814416137699435. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 157.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,86226000],[2017,95888000],[2018,104053000],[2019,128900000],[2020,173823000],[2021,184253000],[2022,193140000],[2023,205715000],[2024,214375000],[2025,221437000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 157191000 USD.

### Are managers owners

Insiders own 3.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PB.US SharesStats.PercentInsiders = 3.544 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm (filed 2026-02-26); ontinuing inflationary pressures in 2026 could lead to increased costs to the Company’s customers, making it more difficult for them to repay their loans or other obligations, which would increase the Company’s credit risk.

Despite recent interest rate cuts, any future need to increase rates to address persistent or renewed inflationary pressures could increase borrowing costs for customers, potentially leading to reduced loan demand, increased credit risk, and weakened asset values in the Company’s lending portfolio. Changes in trade policies by the United States or other countries, such as tariffs or retaliatory tariffs, could further adversely impact the financial markets and the global economy, and any economic countermeasures by the affected countries or others could exacerbate market and economic instability, and may cause inflation which could impact the prices of products sold by the Company’s borrowers and have the potential to reduce demand for their products impacting their profitability and making it difficult for borrowers to repay their loans. The Company’s general business strategy may be adversely affected by any such economic downturn, volatile business environment, hostile third-party action or unpredictable and unstable market conditions. Further, evolving responses from federal and state governments and other regulators, and the Company’s customers or vendors, to new challenges such as climate change have impacted and could continue to impact the economic and political conditions under which the Company operates, which could have a material adverse effect on the Company’s business, financial condition and results of operations.

The Company’s risk management practices, such as monitoring the concentration of the Company’s loans within specific industries and the Company’s credit approval, review and administrative practices, may not adequately reduce credit risk, and the Company’s credit administration personnel, policies and procedures may not adequately adapt to changes in economic or any other conditions affecting customers and the quality of the loan portfolio. Many of the Company’s loans are made to businesses that are less able to withstand competitive, economic and financial pressures than larger borrowers. Consequently, the Company may have significant exposure if any of these borrowers becomes unable to pay their loan obligations as a result of economic or market conditions, or personal circumstances, such as divorce or death. A failure to effectively measure and limit the credit risk associated with the Company’s loan portfolio may result in loan defaults, foreclosures and additional charge-offs, and may require the Company to significantly increase its allowance for credit losses, each of which could adversely affect the Company’s net income. As a result, the Company’s inability to successfully manage credit risk cou

### What the price says

The price assumes profits grow 5.2% a year forever.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Price 67.46; FX 1; original perpetual distributable cash 3.2072119965783745; discount 0.1; growth 0.052457574909896616. Same book-value model and 4× ceiling; no ten-year operating fade applies. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $55.47 per share

- 2016-11: $66.13 per share

- 2016-12: $71.78 per share

- 2017-01: $72.63 per share

- 2017-02: $74.54 per share

- 2017-03: $69.71 per share

- 2017-04: $67.20 per share

- 2017-05: $62.64 per share

- 2017-06: $64.24 per share

- 2017-07: $64.10 per share

- 2017-08: $59.75 per share

- 2017-09: $65.73 per share

- 2017-10: $65.78 per share

- 2017-11: $70.04 per share

- 2017-12: $70.07 per share

- 2018-01: $75.80 per share

- 2018-02: $75.00 per share

- 2018-03: $72.63 per share

- 2018-04: $71.77 per share

- 2018-05: $72.43 per share

- 2018-06: $68.36 per share

- 2018-07: $70.15 per share

- 2018-08: $74.84 per share

- 2018-09: $69.35 per share

- 2018-10: $65.03 per share

- 2018-11: $69.39 per share

- 2018-12: $62.30 per share

- 2019-01: $71.14 per share

- 2019-02: $74.45 per share

- 2019-03: $69.06 per share

- 2019-04: $73.64 per share

- 2019-05: $64.81 per share

- 2019-06: $66.05 per share

- 2019-07: $69.39 per share

- 2019-08: $64.92 per share

- 2019-09: $70.63 per share

- 2019-10: $69.02 per share

- 2019-11: $70.25 per share

- 2019-12: $71.89 per share

- 2020-01: $70.20 per share

- 2020-02: $64.60 per share

- 2020-03: $48.25 per share

- 2020-04: $59.93 per share

- 2020-05: $65.39 per share

- 2020-06: $59.38 per share

- 2020-07: $55.56 per share

- 2020-08: $54.52 per share

- 2020-09: $51.83 per share

- 2020-10: $55.11 per share

- 2020-11: $62.83 per share

- 2020-12: $69.36 per share

- 2021-01: $67.44 per share

- 2021-02: $73.47 per share

- 2021-03: $74.89 per share

- 2021-04: $73.36 per share

- 2021-05: $75.25 per share

- 2021-06: $71.80 per share

- 2021-07: $68.19 per share

- 2021-08: $69.88 per share

- 2021-09: $71.13 per share

- 2021-10: $75.31 per share

- 2021-11: $71.28 per share

- 2021-12: $72.30 per share

- 2022-01: $73.25 per share

- 2022-02: $74.46 per share

- 2022-03: $69.38 per share

- 2022-04: $65.38 per share

- 2022-05: $72.50 per share

- 2022-06: $68.27 per share

- 2022-07: $74.09 per share

- 2022-08: $70.88 per share

- 2022-09: $66.68 per share

- 2022-10: $71.57 per share

- 2022-11: $75.57 per share

- 2022-12: $72.68 per share

- 2023-01: $75.86 per share

- 2023-02: $73.49 per share

- 2023-03: $61.52 per share

- 2023-04: $62.62 per share

- 2023-05: $57.18 per share

- 2023-06: $56.48 per share

- 2023-07: $63.32 per share

- 2023-08: $56.81 per share

- 2023-09: $54.58 per share

- 2023-10: $54.54 per share

- 2023-11: $60.31 per share

- 2023-12: $67.73 per share

- 2024-01: $63.91 per share

- 2024-02: $62.41 per share

- 2024-03: $65.78 per share

- 2024-04: $61.97 per share

- 2024-05: $62.30 per share

- 2024-06: $61.14 per share

- 2024-07: $72.52 per share

- 2024-08: $73.58 per share

- 2024-09: $72.07 per share

- 2024-10: $73.20 per share

- 2024-11: $83.73 per share

- 2024-12: $75.35 per share

- 2025-01: $80.00 per share

- 2025-02: $76.76 per share

- 2025-03: $71.37 per share

- 2025-04: $67.90 per share

- 2025-05: $69.65 per share

- 2025-06: $70.24 per share

- 2025-07: $66.62 per share

- 2025-08: $69.13 per share

- 2025-09: $66.35 per share

- 2025-10: $65.82 per share

- 2025-11: $68.71 per share

- 2025-12: $69.11 per share

- 2026-01: $69.01 per share

- 2026-02: $70.37 per share

- 2026-03: $67.18 per share

- 2026-04: $69.65 per share

- 2026-05: $68.96 per share

- 2026-06: $73.03 per share

- 2026-07: $74.87 per share

- 2026-08: $71.56 per share

- 2026-09: $66.21 per share

- 2026-10: $67.46 per share

## Annual estimated value (USD per share)

- FY2016: low $77.87 per share, central $97.34 per share, high $129.79 per share

- FY2017: low $53.38 per share, central $58.72 per share, high $65.25 per share

- FY2018: low $55.84 per share, central $61.42 per share, high $68.24 per share

- FY2019: low $95.55 per share, central $119.43 per share, high $159.24 per share

- FY2020: low $76.75 per share, central $95.93 per share, high $127.91 per share

- FY2021: low $78.22 per share, central $97.78 per share, high $130.37 per share

- FY2022: low $77.41 per share, central $96.76 per share, high $129.02 per share

- FY2023: low $55.85 per share, central $61.43 per share, high $68.26 per share

- FY2024: low $75.51 per share, central $94.39 per share, high $125.85 per share

- FY2025: low $75.43 per share, central $94.29 per share, high $125.72 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.