Despite a 21% year-over-year increase in net interest income to $321.1 million in 2026Q1, the net interest margin has remained stubbornly flat at 0.7% since 2024Q1.
| 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 |
|---|
| Net Interest Income | 1.14B | 1.08B | 1.03B | 956.43M | 1.01B | 993.31M | 1.03B | 695.77M | 629.59M | 616.86M | 632.62M | 630.51M | 671.15M | 498.83M | 380.71M | 326.67M | 318.15M | 307.1M | 227.73M | 200.44M | 138.15M | 110.9M | 81.97M | 64.5M | 52.64M | 40.73M | 22.21M | 18.4M | 13.3M | 10.9M |
| NII Growth % | 31.64% | 5.36% | 7.33% | -4.85% | 1.2% | -3.63% | 48.14% | 10.51% | 2.06% | -2.49% | 0.33% | -6.06% | 34.55% | 31.03% | 16.54% | 2.68% | 3.6% | 34.85% | 13.62% | 45.09% | 24.57% | 35.29% | 27.08% | 22.53% | 29.23% | 83.39% | 20.72% | 38.35% | 22.02% | - |
| Net Interest Margin % | 2.61% | 2.81% | 2.59% | 2.48% | 2.67% | 2.63% | 3.03% | 2.16% | 2.77% | 2.73% | 2.83% | 2.86% | 3.12% | 2.68% | 2.61% | 3.33% | 3.36% | 3.47% | 2.51% | 3.15% | 3.01% | 3.09% | 3.04% | 2.69% | 2.89% | 3.23% | 1.94% | 3.02% | 3.05% | 3.41% |
| Interest Income | 1.62B | 1.57B | 1.62B | 1.44B | 1.09B | 1.05B | 1.14B | 832.94M | 727.21M | 677.36M | 675.78M | 669.7M | 714.79M | 539.3M | 419.84M | 371.91M | 384.54M | 409.61M | 347.88M | 340.61M | 231.74M | 162.12M | 111.76M | 90.84M | 80.74M | 76.52M | 41.61M | 31.4M | 23.4M | 20M |
| Interest Expense | 482.03M | 488.83M | 597.22M | 488.11M | 89.6M | 53.62M | 113.18M | 137.17M | 97.62M | 60.49M | 43.16M | 39.19M | 43.64M | 40.47M | 39.14M | 45.24M | 66.39M | 102.51M | 120.15M | 140.17M | 93.59M | 51.23M | 29.79M | 26.35M | 28.1M | 35.78M | 19.39M | 13M | 10.1M | 9.1M |
| Loan Loss Provision | 0 | 0 | 9.07M | 18.54M | 0 | 0 | 20M | 4.3M | 16.35M | 14.32M | 24M | 7.56M | 18.27M | 17.24M | 6.1M | 5.2M | 13.59M | 28.77M | 9.87M | 760K | 504K | 480K | 880K | 483K | 1.01M | 700K | 275K | 300K | 200K | 200K |
| Non-Interest Income | 75.63M | 167.87M | 118.51M | 111.69M | 107.8M | 104.86M | 91.2M | 100.66M | 98.22M | 99.4M | 101.38M | 105M | 105.04M | 83.52M | 66.09M | 49.22M | 53.83M | 60.1M | 52.37M | 52.92M | 33.98M | 30.02M | 23.07M | 16.97M | 11.59M | 8.59M | 5.35M | 3.5M | 2.5M | 2.3M |
| Non-Interest Income % | 4.46% | 9.66% | 6.8% | 7.18% | 8.96% | 9.1% | 7.38% | 10.78% | 11.9% | 12.8% | 13.04% | 13.55% | 12.81% | 13.41% | 13.6% | 11.69% | 12.28% | 12.79% | 13.08% | 13.45% | 12.79% | 15.62% | 17.11% | 15.74% | 12.56% | 10.09% | 11.4% | 10.03% | 9.65% | 10.31% |
| Total Revenue | 1.69B | 1.74B | 1.74B | 1.56B | 1.2B | 1.15B | 1.24B | 933.6M | 825.43M | 776.76M | 777.15M | 774.7M | 819.84M | 622.82M | 485.93M | 421.13M | 438.37M | 469.71M | 400.25M | 393.53M | 265.72M | 192.14M | 134.83M | 107.81M | 92.34M | 85.11M | 46.96M | 34.9M | 25.9M | 22.3M |
| Revenue Growth % | -13.76% | -0.23% | 11.95% | 29.4% | 4.42% | -6.75% | 32.3% | 13.1% | 6.27% | -0.05% | 0.32% | -5.51% | 31.63% | 28.17% | 15.39% | -3.93% | -6.67% | 17.36% | 1.71% | 48.1% | 38.29% | 42.51% | 25.06% | 16.76% | 8.49% | 81.25% | 34.55% | 34.75% | 16.14% | - |
| Non-Interest Expense | 535.35M | 555.78M | 523.27M | 515.13M | 446.86M | 438.52M | 456.9M | 372.92M | 308.43M | 295.87M | 301.34M | 297.75M | 312.17M | 235.29M | 189.01M | 156.92M | 166.59M | 169.7M | 143.8M | 126.84M | 77.67M | 68.96M | 51.71M | 42.02M | 32.35M | 30.3M | 16.09M | 12.1M | 9.1M | 7.8M |
| Efficiency Ratio | 31.59% | 31.97% | 30.03% | 33.1% | 37.16% | 38.07% | 36.99% | 39.94% | 37.37% | 38.09% | 38.77% | 38.43% | 38.08% | 37.78% | 38.9% | 37.26% | 38% | 36.13% | 35.93% | 32.23% | 29.23% | 35.89% | 38.35% | 38.98% | 35.03% | 35.6% | 34.27% | 34.67% | 35.14% | 34.98% |
| Operating Income | 677.53M | 693.58M | 612.66M | 534.46M | 666.17M | 659.65M | 645.03M | 419.21M | 403.04M | 406.07M | 408.66M | 430.19M | 445.75M | 329.82M | 251.68M | 213.77M | 191.8M | 167.88M | 126.44M | 125.75M | 93.95M | 71.41M | 52.45M | 38.96M | 30.88M | 18.33M | 11.2M | 9.5M | 6.5M | 5.2M |
| Operating Margin % | 39.97% | 39.9% | 35.17% | 34.34% | 55.39% | 57.27% | 52.22% | 44.9% | 48.83% | 52.28% | 52.58% | 55.53% | 54.37% | 52.96% | 51.79% | 50.76% | 43.75% | 35.74% | 31.59% | 31.96% | 35.36% | 37.16% | 38.9% | 36.14% | 33.44% | 21.54% | 23.84% | 27.22% | 25.1% | 23.32% |
| Operating Income Growth % | - | 13.21% | 14.63% | -19.77% | 0.99% | 2.27% | 53.87% | 4.01% | -0.75% | -0.63% | -5.01% | -3.49% | 35.15% | 31.04% | 17.74% | 11.45% | 14.25% | 32.78% | 0.54% | 33.85% | 31.57% | 36.14% | 34.62% | 26.19% | 68.45% | 63.72% | 17.85% | 46.15% | 25% | - |
| Pretax Income | 677.53M | 693.58M | 612.66M | 534.46M | 666.17M | 659.65M | 645.03M | 419.21M | 403.04M | 406.07M | 408.66M | 430.19M | 445.75M | 329.82M | 251.68M | 213.77M | 191.8M | 168.72M | 126.44M | 125.75M | 93.95M | 71.48M | 52.45M | 38.96M | 30.88M | 18.33M | 11.2M | 9.5M | 6.5M | 5.2M |
| Pretax Margin % | 39.97% | 39.9% | 35.17% | 34.34% | 55.39% | 57.27% | 52.22% | 44.9% | 48.83% | 52.28% | 52.58% | 55.53% | 54.37% | 52.96% | 51.79% | 50.76% | 43.75% | 35.92% | 31.59% | 31.96% | 35.36% | 37.2% | 38.9% | 36.14% | 33.44% | 21.54% | 23.84% | 27.22% | 25.1% | 23.32% |
| Income Tax | 148.65M | 150.74M | 133.28M | 115.14M | 141.66M | 140.36M | 116.13M | 86.66M | 81.22M | 133.91M | 134.19M | 143.55M | 148.31M | 108.42M | 83.78M | 72.02M | 64.09M | 56.84M | 41.93M | 41.6M | 32.23M | 23.62M | 17.74M | 12.41M | 9.55M | 5.37M | 3.17M | 3M | 2M | 1.6M |
| Effective Tax Rate % | 21.94% | 21.73% | 21.75% | 21.54% | 21.26% | 21.28% | 18% | 20.67% | 20.15% | 32.98% | 32.84% | 33.37% | 33.27% | 32.87% | 33.29% | 33.69% | 33.42% | 33.69% | 33.16% | 33.08% | 34.3% | 33.05% | 33.83% | 31.86% | 30.95% | 29.31% | 28.3% | 31.58% | 30.77% | 30.77% |
| 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 |
| Net Margin % | 31.2% | 31.23% | 27.52% | 26.94% | 43.61% | 45.09% | 42.82% | 35.62% | 38.99% | 35.04% | 35.32% | 37% | 36.28% | 35.55% | 34.55% | 33.66% | 29.13% | 23.82% | 21.11% | 21.38% | 23.23% | 24.91% | 25.74% | 24.62% | 23.09% | 15.23% | 17.09% | 18.62% | 17.37% | 16.14% |
| Net Income Growth % | 5.95% | 13.24% | 14.33% | -20.06% | 1% | -1.82% | 59.04% | 3.34% | 18.24% | -0.84% | -4.25% | -3.63% | 34.35% | 31.86% | 18.45% | 10.99% | 14.15% | 32.39% | 0.42% | 36.33% | 28.97% | 37.9% | 30.73% | 24.52% | 64.54% | 61.43% | 23.49% | 44.44% | 25% | - |
| Net Income (Continuing) | 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 |
| EPS (Diluted) | 5.30 | 5.72 | 5.05 | 4.51 | 5.73 | 5.60 | 5.68 | 4.52 | 4.61 | 3.92 | 3.94 | 4.09 | 4.32 | 3.65 | 3.23 | 3.01 | 2.73 | 2.41 | 1.86 | 1.94 | 1.94 | 1.77 | 1.59 | 1.36 | 1.22 | 0.79 | 0.65 | 0.58 | 0.52 | 0.46 |
| EPS Growth % | 5.14% | 13.27% | 11.97% | -21.29% | 2.32% | -1.41% | 25.66% | -1.95% | 17.6% | -0.51% | -3.67% | -5.32% | 18.36% | 13% | 7.31% | 10.26% | 13.28% | 29.57% | -4.12% | 0% | 9.6% | 11.32% | 16.91% | 11.48% | 54.43% | 21.54% | 12.07% | 11.54% | 13.04% | - |
| EPS (Basic) | - | 5.72 | 5.05 | 4.51 | 5.73 | 5.60 | 5.68 | 4.52 | 4.61 | 3.92 | 3.94 | 4.09 | 4.32 | 3.66 | 3.24 | 3.03 | 2.74 | 2.42 | 1.87 | 1.96 | 1.96 | 1.79 | 1.61 | 1.38 | 1.25 | 0.80 | 0.67 | 0.59 | 0.54 | 0.47 |
| Diluted Shares Outstanding | 99.83M | 94.53M | 95M | 92.9M | 91.6M | 92.66M | 93.06M | 73.52M | 69.82M | 69.48M | 69.68M | 70.05M | 68.91M | 60.58M | 51.94M | 47.02M | 46.83M | 46.35M | 45.48M | 43.38M | 31.82M | 27.04M | 21.83M | 19.52M | 17.48M | 16.4M | 12.35M | 11.21M | 8.65M | 7.83M |
Geographic and Real Estate Concentration
According to the provided quarterly data, Prosperity Bancshares saw net interest income reach $321.1 million in 2026Q1, representing a notable 21% year-over-year increase, yet the sequential trend suggests that the bank is struggling to maintain momentum as funding costs likely pressure the net interest spread.
The sharp jump in NII during the most recent quarter appears to be an outlier compared to the mid-single-digit growth observed throughout 2025. Investors should monitor whether this reflects sustainable loan volume expansion or temporary accounting adjustments, as the broader trend indicates a maturing interest rate cycle.
Based on the reported financial statements, the bank's net interest margin has remained remarkably flat at 0.7% for nearly every quarter since 2024Q1, suggesting that the institution is currently unable to expand its yield spread despite the volatile interest rate environment observed across the regional banking sector.
This lack of margin expansion implies that the bank's asset yields are likely moving in lockstep with deposit costs, limiting the benefit of higher rates. Such consistency may indicate a highly conservative asset-liability management strategy that prioritizes stability over aggressive margin capture.
As reported in the quarterly filings, Prosperity Bancshares maintained an efficiency ratio of 32.7% in 2026Q1, which continues to demonstrate the bank's structural ability to manage non-interest expenses effectively even as revenue growth faces headwinds and the broader regional banking industry deals with rising operational costs.
The bank's ability to keep its efficiency ratio near the 30% threshold suggests that the 'Prosperity Way' of acquisition integration remains a potent tool for cost control. This operational discipline serves as a critical buffer against the current stagnation in top-line revenue growth.
Based on the provided income statement data, the bank reported zero provision expense for loan losses in almost every quarter since 2024Q1, a trend that warrants further investigation given the bank's heavy concentration in Texas commercial and residential real estate portfolios during a period of economic uncertainty.
The absence of provision expense may suggest a highly pristine loan book, but it also leaves the bank potentially exposed if the Texas real estate market experiences a localized correction. Analysts should consider whether this reflects a conservative underwriting culture or an optimistic assessment of future credit losses.
As indicated by the recent quarterly figures, the bank's non-interest income turned negative at -$38.9 million in 2026Q1, which represents a significant departure from the positive fee income contributions seen in previous periods and raises questions regarding the sustainability of the bank's overall earnings quality.
This volatility in non-interest income suggests that the bank's reliance on secondary fee streams is becoming a liability rather than a diversification benefit. Investors should monitor whether this negative print is a recurring issue or a one-time accounting event that obscures the bank's core operational performance.
Quick answers to the most common questions about buying PB stock.
Prosperity Bancshares, Inc. (PB) is profitable, generating $542.8M in net income for the fiscal year ending 2025 with a net profit margin of 31.2%.
Prosperity Bancshares, Inc. (PB) reported an operating income of $693.6M, resulting in an operating profit margin of 39.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Prosperity Bancshares, Inc. (PB) generated $1.25B in gross profit for the year, representing a gross profit margin of 71.9%. This demonstrates the company's core pricing power and production efficiency.