Operating cash flow exhibits significant volatility, evidenced by a sharp swing to a negative $205.8 million in 2024Q4, while dividend payments remain stable at approximately $55 million per quarter.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 |
|---|
| Cash from Operations | 556.45M | 549.51M | 472.69M | 646.36M | 506.53M | 694.73M | 582.32M | 403.01M | 320.15M | 390.73M | 334.36M | 310.81M | 348.26M | 307.66M | 209.81M | 217.87M | 177.7M | 73.63M | 123.68M | 236.08M | 75.23M | 65.7M | 48.92M | 39.52M | 26.12M | 19.84M | 9.23M | 7.5M | 5.4M | 4.2M |
| Operating CF Growth % | 58.24% | 16.25% | -26.87% | 27.61% | -27.09% | 19.3% | 44.49% | 25.88% | -18.06% | 16.86% | 7.57% | -10.75% | 13.2% | 46.63% | -3.7% | 22.61% | 141.34% | -40.47% | -47.61% | 213.79% | 14.51% | 34.3% | 23.8% | 51.31% | 31.64% | 115.03% | 23.03% | 38.89% | 28.57% | - |
| Net Income | 528.88M | 542.84M | 479.39M | 419.32M | 524.52M | 519.3M | 528.9M | 332.55M | 321.81M | 272.17M | 274.47M | 286.65M | 297.44M | 221.4M | 167.9M | 141.75M | 127.71M | 111.88M | 84.51M | 84.15M | 61.73M | 47.86M | 34.71M | 26.55M | 21.32M | 12.96M | 8.03M | 6.5M | 4.5M | 3.6M |
| Depreciation & Amortization | 49.34M | 34.12M | 34.72M | 30.96M | 28.3M | 29.65M | 31.4M | 20.25M | 18.32M | 19.16M | 22.29M | 22.49M | 23.67M | 16.74M | 16.15M | 15.93M | 17.33M | 18.3M | 17.46M | 8.98M | 9.18M | 11.15M | 9.99M | 13.06M | 6.34M | 3.92M | 1.85M | 1.7M | 1.3M | 1.2M |
| Deferred Taxes | 0 | -3.74M | 2.62M | 7.32M | 6.05M | 22.83M | 24.82M | -26.42M | 6.88M | 10.53M | 19.05M | 35M | 45.71M | 19.88M | 9.62M | 2.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 4.43M | -1.46M | -5.66M | 28.83M | 37.15M | 51.07M | -444K | 13.28M | 35.51M | 25.81M | 20.37M | -5.16M | -38.84M | 29.09M | 50.5M | 34.95M | 38.27M | 22.26M | 31.04M | 10.46M | 732K | 1.24M | 632K | 105K | 971K | 787K | 275K | 100K | 200K | 200K |
| Working Capital Changes | -38.63M | -34.35M | -51.21M | 147.75M | -101.25M | 59.31M | -14.96M | 52.74M | -72.86M | 56.12M | -11.37M | -39.26M | 12.04M | 16.37M | -37.96M | 19.66M | -8.65M | -80.33M | -10.87M | 132.48M | 3.6M | 5.45M | 3.59M | -194K | -2.51M | 2.18M | -922K | -800K | -600K | -800K |
| Cash from Investing | 44.65M | 773.91M | 1.98B | 1.09B | -1.96B | -2.72B | -1.27B | 1.26B | -118.95M | -372.59M | 41.01M | -650.63M | -72.18M | 8.85M | -1.2B | -365.3M | 151.95M | 192.28M | 1.18B | 266.85M | 96.17M | -68.68M | 42.9M | -225.97M | -33.84M | -181.02M | -5.53M | -30.4M | -43.1M | -1.8M |
| Purchase of Investments | -11.5B | -25.61B | -23.26B | -15.55B | -21.2B | -23.62B | -17.51B | -9.57B | -9.63B | -9B | -10.07B | -10.15B | -9.22B | -6.16B | -4.77B | -2.63B | -2.94B | -1.68B | -3.06B | -2.04B | -1.82B | -478.68M | -271.15M | -985.43M | -420.34M | -471.95M | -105.67M | -91.6M | -97.7M | -70.3M |
| Sale/Maturity of Investments | 28.21B | 26.07B | 25B | 17.43B | 19.5B | 19.28B | 17.5B | 10.85B | 9.86B | 9.02B | 10.05B | 9.63B | 8.42B | 5.65B | 3.52B | 2.56B | 2.42B | 1.73B | 1.14B | 2.04B | 2.03B | 345.88M | 344.7M | 650.55M | 340.37M | 305M | 43.41M | 68.5M | 78.8M | 49.6M |
| Net Investment Activity | 16.7B | 465.18M | 1.74B | 1.88B | -1.71B | -4.33B | -11.38M | 1.28B | 232.06M | 16M | -23.03M | -517.48M | -802.87M | -508.56M | -1.25B | -71.78M | -524.86M | 51.85M | -1.92B | 4.26M | 210.07M | -132.8M | 73.55M | -334.88M | -79.97M | -166.95M | -62.27M | -23.1M | -18.9M | -20.7M |
| Acquisitions | 478.09M | 0 | 169.85M | -24.36M | 0 | 0 | 0 | -77.05M | 0 | 0 | -8.96M | 0 | 494.04M | 576.95M | 189.91M | 0 | 711.36M | -932K | 3.41B | 122.63M | -75.92M | -2.35M | 34.44M | -53.86M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -17.13B | 341.26M | 95.56M | -730.01M | -214.46M | 1.63B | -1.24B | 74.19M | -335.89M | -377.37M | 78.01M | -123.79M | 248.72M | -35.53M | -131.23M | -284.04M | -20.68M | 176.34M | -297.41M | 138M | -37.05M | 68.2M | -64.19M | 166.25M | 48.31M | -11M | 57.34M | -6.9M | -23.9M | 19.6M |
| Cash from Financing | -1B | -1.55B | -940.22M | -1.71B | -666.75M | 3.23B | 1.46B | -1.5B | -182.38M | -63.2M | -501.94M | 225.92M | 20.39M | -261.42M | 1.1B | 201.5M | -365.6M | -299.22M | -1.45B | -401.56M | 948K | -37.56M | -37.62M | 189.36M | 46.8M | 104.82M | -5.33M | 41.4M | 38.6M | -6.7M |
| Dividends Paid | -226.81M | -221.44M | -214.38M | -205.72M | -193.14M | -184.25M | -173.82M | -128.9M | -104.05M | -95.89M | -86.23M | -78.26M | -68.38M | -54.04M | -41.54M | -33.74M | -29.84M | -26.23M | -23.38M | -20.32M | -13.03M | -9.62M | -6.67M | -4.86M | -3.87M | -3.16M | -1.89M | -1M | -1.1M | -600K |
| Share Repurchases | -214.28M | -157.19M | -74.77M | -72.25M | -65.72M | -52.09M | -115.16M | -94.48M | 0 | 0 | -51.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 148K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.05M | 995K | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Stock Activity | -214.28M | -157.19M | -74.77M | -72.25M | -65.72M | -52.09M | -115.16M | -94.48M | 0 | 148K | -51.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.05M | 995K | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt Issuance (Net) | -2M | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K | 1000K | -1000K | 1000K | -1000K | -1000K | 1000K | -1000K | 660K | 1000K | 1000K | -1000K | 1000K | -400K | -500K |
| Other Financing | 440.82M | 80.46M | -126.07M | -3.1B | -2.26B | 3.41B | 3.18B | 545.05M | -604.23M | 518.25M | -856.83M | -10.96M | 90.74M | 78.97M | 902.36M | 604.1M | -684.04M | -69.73M | -1.6B | -150.62M | 61.44M | -62.48M | -24.62M | 148.98M | 36.34M | 89.85M | 11.92M | 17M | 27.3M | -8.6M |
| Net Change in Cash | -402.46M | -224.74M | 1.51B | 34.28M | -2.12B | 1.2B | 769.44M | 162.98M | 18.81M | -45.07M | -126.58M | -113.89M | 296.46M | 55.09M | 112.86M | 54.07M | -35.95M | -33.32M | -142.46M | 101.37M | 172.36M | -40.55M | 54.2M | 2.91M | 39.08M | -56.36M | -1.64M | 18.6M | -17.4M | -21.7M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 0 | -2.4M |
| Cash at Beginning | 1.75B | 1.97B | 458.41M | 424.13M | 2.55B | 1.34B | 574.11M | 411.13M | 392.31M | 437.38M | 563.96M | 677.85M | 381.39M | 326.3M | 213.44M | 159.37M | 195.32M | 228.63M | 371.09M | 269.72M | 97.36M | 137.91M | 83.71M | 80.8M | 41.72M | 98.08M | 36.76M | 18.2M | 17.4M | 21.7M |
| Cash at End | 1.29B | 1.75B | 1.97B | 458.41M | 424.13M | 2.55B | 1.34B | 574.11M | 411.13M | 392.31M | 437.38M | 563.96M | 677.85M | 381.39M | 326.3M | 213.44M | 159.37M | 195.32M | 228.63M | 371.09M | 269.72M | 97.36M | 137.91M | 83.71M | 80.8M | 41.72M | 35.12M | 36.8M | 56M | 15M |
| Interest Paid | 489.45M | 499.83M | 590.13M | 459.27M | 86.37M | 55.82M | 118.3M | 139.36M | 96.36M | 59.87M | 42.74M | 44.28M | 43.21M | 39.69M | 40.03M | 46.45M | 69.72M | 109.8M | 144.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 116.85M | 0 | 29.02M | 119.12M | 131.37M | 126.92M | 163.6M | 82.15M | 134.36M | 64.15M | 122.42M | 103.12M | 105.85M | 92.23M | 75.74M | 70.32M | 64.48M | 61.1M | 37.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 535.95M | 516.98M | 451.55M | 612.2M | 464.11M | 675.71M | 560.18M | 384.43M | 305.03M | 379.5M | 329.35M | 301.46M | 336.19M | 283.65M | 197.37M | 208.39M | 163.83M | 38.65M | 115.78M | 238.03M | 74.3M | 63.96M | 48.92M | 36.03M | 23.95M | 16.77M | 8.62M | 7.1M | 5.1M | 3.5M |
| FCF Growth % | 21.14% | 14.49% | -26.24% | 31.91% | -31.32% | 20.62% | 45.72% | 26.03% | -19.62% | 15.23% | 9.25% | -10.33% | 18.52% | 43.71% | -5.29% | 27.2% | 323.84% | -66.61% | -51.36% | 220.35% | 16.18% | 30.73% | 35.77% | 50.47% | 42.81% | 94.52% | 21.41% | 39.22% | 45.71% | - |
Real Estate Concentration Risk
According to reported quarterly figures, Prosperity Bancshares consistently generates net income exceeding $110 million, providing a stable foundation for capital retention despite the volatility observed in operating cash flow metrics, which fluctuated from a low of -$205.8 million in 2024Q4 to a high of $274.6 million in 2024Q3.
The bank's ability to maintain consistent net income suggests that its core operational model remains profitable even when cash flow from operations is distorted by balance sheet movements. Investors should monitor whether this earnings power remains sufficient to support future growth initiatives without requiring external capital raises.
As reported in financial statements, the bank maintains an active investment securities strategy, with quarterly purchase and sale volumes frequently exceeding $5 billion, a level of activity that suggests management is aggressively managing duration and liquidity in response to shifting interest rate environments across the Texas market.
The high volume of securities purchases and sales relative to the bank's size indicates a dynamic approach to managing the investment portfolio. This activity may mask underlying trends in core lending, and analysts should investigate whether these portfolio adjustments are intended to hedge interest rate risk or optimize yield.
Based on the provided cash flow data, Prosperity Bancshares has maintained a consistent dividend payout of approximately $55 million per quarter, while share repurchases have been sporadic, reaching a peak of $137.2 million in 2025Q4 before tapering off in subsequent periods as the bank managed its capital position.
The stability of the dividend suggests a commitment to shareholder returns, though the variability in buybacks implies that management uses repurchases as a flexible tool for capital management. This approach appears prudent, as it allows the bank to preserve capital during periods of potential economic uncertainty or acquisition opportunities.
Data from recent SEC filings reveals significant volatility in operating cash flow, including a negative $205.8 million in 2024Q4, which highlights the limitations of using traditional cash flow statements to assess the underlying health of a regional bank's core deposit and lending operations.
The extreme swings in operating cash flow are likely driven by changes in trading assets and loan originations rather than operational inefficiency. Analysts should look past these headline figures and focus on the bank's net interest margin and efficiency ratio to gauge true performance.
Quick answers to the most common questions about buying PB stock.
Prosperity Bancshares, Inc. (PB) generated $549.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Prosperity Bancshares, Inc. (PB) generated $517.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Prosperity Bancshares, Inc. (PB) spent $32.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Prosperity Bancshares, Inc. (PB) returned $221.4M to shareholders via cash dividends and spent $157.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.