0001193125-26-188851
SEC filingProsperity Bancshares reported Q1 2026 net income of $116.3 million and diluted EPS of $1.16, impacted by $42.5 million in merger expenses from American and Southwest mergers, with adjusted net income of $149.9 million and EPS of $1.50.
Prosperity Bancshares' Q1 2026 results reflect significant growth driven by the completed mergers of American Bank Holding Corporation on January 1 and Southwest Bancshares on February 1, which boosted loans by $3.354 billion (16.4% excluding Warehouse Purchase Program) and deposits by $4.150 billion (14.6%). GAAP net income fell to $116.3 million ($1.16 diluted EPS) from $130.2 million ($1.37) year-over-year, primarily due to $42.5 million in merger-related expenses ($0.34 per share impact); adjusted figures show $149.9 million net income and $1.50 EPS, exceeding prior quarter's GAAP EPS of $1.49. Net interest income rose 21.0% year-over-year and 16.8% linked-quarter to $321.2 million, with NIM expanding to 3.51% from 3.14% YoY and 3.30% QoQ, attributed to asset repricing and merger contributions. Noninterest income grew 12.5% YoY and 8.6% QoQ to $46.5 million, also merger-driven, while expenses surged due to merger costs, salaries, and integration of acquired operations. Asset quality remains strong with nonperforming assets at 0.33% of average interest-earning assets, down from 0.46% QoQ, and allowance for credit losses at 1.61% of loans excluding Warehouse (1.52% including). No provision for credit losses was recorded. Management highlights completed core system conversion, all regulatory approvals for the pending Stellar Bancorp merger (expected July 1, 2026, valued at ~$2.002 billion), and ongoing share repurchases (837,000 shares for $57.1 million under new 5% authorization). A $0.60 quarterly dividend was declared. CEO David Zalman emphasized Texas/Oklahoma economic strength, rankings in Forbes and Newsweek, and strategic positioning amid steady growth outlook.