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Prosperity Bancshares

NYSE:PB
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PB
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides retail and commercial banking services to small and medium-sized businesses, and consumers. The last earnings update was 21 days ago. More info.


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PB Share Price and Events
7 Day Returns
-4.5%
NYSE:PB
1.8%
US Banks
1.2%
US Market
1 Year Returns
-8.1%
NYSE:PB
-9%
US Banks
3%
US Market
PB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Prosperity Bancshares (PB) -4.5% -5.7% 18.4% -8.1% 54.4% 6.5%
US Banks 1.8% 0.6% 15.7% -9% 49.7% 41.2%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • PB underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
PB
Industry
5yr Volatility vs Market

PB Value

 Is Prosperity Bancshares undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Prosperity Bancshares to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Prosperity Bancshares.

NYSE:PB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 12 analysts.
= Stable Book Value * Return on Equity
= $62.66 * 8.1%
$5.10
Book Value of Equity per Share Weighted future Book Value estimates from 11 analysts. $62.66
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.637 (1 + (1- 21%) (26.84%))
0.847
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.847 * 5.96%)
7.78%

Discounted Cash Flow Calculation for NYSE:PB using Excess Returns Model Model

The calculations below outline how an intrinsic value for Prosperity Bancshares is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:PB Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8.1% – 7.78%) * $62.66)
$0.22
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.22 / (7.78% - 2.73%)
$4.39
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $62.66 + $4.39
$67.06
NYSE:PB Discount to Share Price
Calculation Result
Value per share (USD) From above. $67.06
Current discount Discount to share price of $70.18
= -1 x ($70.18 - $67.06) / $67.06
-4.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Prosperity Bancshares is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Prosperity Bancshares's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Prosperity Bancshares's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $4.61
NYSE:PB Share Price ** NYSE (2019-03-20) in USD $70.18
United States of America Banks Industry PE Ratio Median Figure of 587 Publicly-Listed Banks Companies 13.22x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Prosperity Bancshares.

NYSE:PB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PB Share Price ÷ EPS (both in USD)

= 70.18 ÷ 4.61

15.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Prosperity Bancshares is overvalued based on earnings compared to the US Banks industry average.
  • Prosperity Bancshares is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Prosperity Bancshares's expected growth come at a high price?
Raw Data
NYSE:PB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
5%per year
United States of America Banks Industry PEG Ratio Median Figure of 260 Publicly-Listed Banks Companies 1.21x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:PB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.23x ÷ 5%

3.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Prosperity Bancshares is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Prosperity Bancshares's assets?
Raw Data
NYSE:PB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $58.02
NYSE:PB Share Price * NYSE (2019-03-20) in USD $70.18
United States of America Banks Industry PB Ratio Median Figure of 592 Publicly-Listed Banks Companies 1.24x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NYSE:PB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PB Share Price ÷ Book Value per Share (both in USD)

= 70.18 ÷ 58.02

1.21x

* Primary Listing of Prosperity Bancshares.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Prosperity Bancshares is good value based on assets compared to the US Banks industry average.
X
Value checks
We assess Prosperity Bancshares's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Prosperity Bancshares has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PB Future Performance

 How is Prosperity Bancshares expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Prosperity Bancshares expected to grow at an attractive rate?
  • Prosperity Bancshares's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Prosperity Bancshares's earnings growth is positive but not above the United States of America market average.
  • Prosperity Bancshares's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PB Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 5%
NYSE:PB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 4%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 4.5%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 818 1
2020-12-31 793 356 7
2019-12-31 761 338 7
NYSE:PB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 729 320 322
2018-09-30 727 271 306
2018-06-30 720 341 291
2018-03-31 711 324 278
2017-12-31 719 391 272
2017-09-30 717 328 274
2017-06-30 721 315 275
2017-03-31 725 318 274
2016-12-31 727 334 274
2016-09-30 729 384 276
2016-06-30 730 341 278
2016-03-31 737 355 282

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Prosperity Bancshares's earnings are expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
  • Prosperity Bancshares's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Prosperity Bancshares Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 5.08 5.28 4.90 14.00
2019-12-31 4.83 4.96 4.72 14.00
NYSE:PB Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 4.61
2018-09-30 4.38
2018-06-30 4.18
2018-03-31 4.00
2017-12-31 3.92
2017-09-30 3.94
2017-06-30 3.95
2017-03-31 3.94
2016-12-31 3.94
2016-09-30 3.96
2016-06-30 3.98
2016-03-31 4.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Prosperity Bancshares is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Prosperity Bancshares's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Prosperity Bancshares has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PB Past Performance

  How has Prosperity Bancshares performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Prosperity Bancshares's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Prosperity Bancshares's year on year earnings growth rate has been positive over the past 5 years.
  • Prosperity Bancshares's 1-year earnings growth exceeds its 5-year average (18.2% vs 2.4%)
  • Prosperity Bancshares's earnings growth has not exceeded the US Banks industry average in the past year (18.2% vs 43.2%).
Earnings and Revenue History
Prosperity Bancshares's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Prosperity Bancshares Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 729.26 321.81 255.51
2018-09-30 727.20 305.62 252.68
2018-06-30 719.66 291.00 248.61
2018-03-31 710.75 277.96 242.42
2017-12-31 719.17 272.17 240.55
2017-09-30 717.21 273.82 243.21
2017-06-30 720.90 274.56 244.47
2017-03-31 724.58 274.08 246.18
2016-12-31 727.05 274.47 248.46
2016-09-30 728.78 276.15 246.11
2016-06-30 729.61 278.10 244.28
2016-03-31 736.71 281.96 243.94
2015-12-31 743.73 286.65 243.56
2015-09-30 761.47 294.40 245.87
2015-06-30 779.74 300.37 252.67
2015-03-31 792.03 303.95 259.35
2014-12-31 773.71 297.44 252.38
2014-09-30 735.64 282.18 240.41
2014-06-30 678.73 260.89 222.26
2014-03-31 620.05 239.23 202.76
2013-12-31 577.01 221.40 190.13
2013-09-30 543.16 206.69 179.76
2013-06-30 528.15 197.59 178.37
2013-03-31 483.22 180.72 162.20
2012-12-31 450.14 167.90 150.73
2012-09-30 414.29 156.04 134.36
2012-06-30 381.53 146.24 117.88
2012-03-31 380.57 144.36 114.87

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Prosperity Bancshares has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Prosperity Bancshares used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Prosperity Bancshares improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Prosperity Bancshares's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Prosperity Bancshares has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PB Health

 How is Prosperity Bancshares's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Prosperity Bancshares's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Prosperity Bancshares Company Filings, last reported 2 months ago.

NYSE:PB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,052.82 1,315.85 295.83
2018-09-30 3,995.70 1,798.33 294.47
2018-06-30 3,935.45 1,547.89 275.48
2018-03-31 3,876.15 1,159.66 243.98
2017-12-31 3,824.15 829.38 279.91
2017-09-30 3,781.36 1,294.99 303.48
2017-06-30 3,736.19 1,381.83 322.72
2017-03-31 3,689.08 1,606.52 325.74
2016-12-31 3,642.31 1,311.21 316.68
2016-09-30 3,594.81 744.37 342.11
2016-06-30 3,544.58 926.05 333.69
2016-03-31 3,499.06 497.65 335.98
2015-12-31 3,462.91 806.65 467.46
2015-09-30 3,411.24 1,096.61 301.23
2015-06-30 3,357.29 1,220.93 354.50
2015-03-31 3,301.86 650.33 354.28
2014-12-31 3,244.83 491.78 510.35
2014-09-30 3,182.95 815.74 331.62
2014-06-30 3,120.59 756.39 513.79
2014-03-31 2,840.75 513.91 350.24
2013-12-31 2,786.82 499.28 249.39
2013-09-30 2,389.11 1,122.98 271.11
2013-06-30 2,345.28 1,347.44 251.15
2013-03-31 2,149.46 1,132.06 181.41
2012-12-31 2,089.39 796.31 238.60
2012-09-30 2,038.18 640.93 207.95
2012-06-30 1,643.82 645.08 152.81
2012-03-31 1,609.53 671.07 151.91
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Prosperity Bancshares has an acceptable proportion of non-loan assets held.
  • Prosperity Bancshares's liabilities are made up of primarily low risk sources of funding.
  • Loans at Prosperity Bancshares are broadly funded by customer deposits.
  • Prosperity Bancshares's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Prosperity Bancshares has a sufficient allowance for bad loans.
  • Prosperity Bancshares has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Prosperity Bancshares's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Prosperity Bancshares has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PB Dividends

 What is Prosperity Bancshares's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.34%
Current annual income from Prosperity Bancshares dividends. Estimated to be 2.46% next year.
If you bought $2,000 of Prosperity Bancshares shares you are expected to receive $47 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Prosperity Bancshares's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Prosperity Bancshares's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 470 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.95 1.00
2020-12-31 1.76 13.00
2019-12-31 1.67 13.00
NYSE:PB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-27 1.640 2.228
2019-01-30 1.640 2.226
2018-11-07 1.640 2.470
2018-10-24 1.640 2.510
2018-08-07 1.440 2.019
2018-07-25 1.440 2.045
2018-05-07 1.440 2.008
2018-04-25 1.440 1.981
2018-02-28 1.440 1.937
2018-01-24 1.440 1.904
2017-11-06 1.440 2.079
2017-10-25 1.440 2.180
2017-08-07 1.360 2.182
2017-07-26 1.360 2.107
2017-05-08 1.360 2.099
2017-04-26 1.360 2.009
2017-02-28 1.360 1.944
2017-01-25 1.360 1.839
2016-11-07 1.360 1.986
2016-10-26 1.360 2.483
2016-04-27 1.200 2.283
2016-02-03 1.200 2.679
2016-01-27 1.200 2.939
2015-11-06 1.200 2.548
2015-10-23 1.200 2.287
2015-08-07 1.090 2.160
2015-07-24 1.090 1.994
2015-01-30 1.090 2.032
2015-01-23 1.090 2.333
2014-11-07 1.090 2.013
2014-10-29 1.090 1.827
2014-09-08 0.960 1.670
2014-08-06 0.960 1.622
2014-07-25 0.960 1.648
2014-03-04 0.960 1.560
2013-10-23 0.960 1.529
2013-09-05 0.860 1.393
2013-06-06 0.860 1.527
2013-03-06 0.860 1.823
2012-10-24 0.860 1.985
2012-09-04 0.780 1.848
2012-06-04 0.780 1.904
2012-03-07 0.780 1.742
2012-02-29 0.780 1.796
2012-01-20 0.780 1.877
2011-11-09 0.780 1.979
2011-10-21 0.780 2.047
2011-09-08 0.700 2.013
2011-06-13 0.700 1.734
2011-05-09 0.700 1.627
2011-04-14 0.700 1.562
2010-10-22 0.700 1.834
2010-08-09 0.620 1.962
2010-05-10 0.620 1.750
2009-10-26 0.620 1.559
2009-10-16 0.550 1.555
2009-08-10 0.550 1.578
2009-05-11 0.550 1.844
2009-03-23 0.550 1.942

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Prosperity Bancshares's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Prosperity Bancshares's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Prosperity Bancshares afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Prosperity Bancshares has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PB Management

 What is the CEO of Prosperity Bancshares's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Zalman
COMPENSATION $4,879,348
AGE 61
TENURE AS CEO 18.2 years
CEO Bio

Mr. David E. Zalman has been the Senior Chairman and Chief Executive Officer of Prosperity Bancshares Inc. since 2005. He served as a Chairman of Prosperity Bancshares Inc. since 2001 and also its Chief Executive Officer since February 2001. Mr. Zalman has been the Chief Executive Officer of Prosperity Bank, a subsidiary of Prosperity Bancshares Inc since February 2001 and has been its President since November 26, 2012 and Senior Chairman of the Board since 2005. He is a Founding Principal at New ICM LP, a manufacturer and distributor of children's clothing to national and international companies. He served as Secretary at Prosperity Bancshares Inc. since 1987 and served as its President from 2000 to April 2006 and Vice President since 1987. He joined Prosperity Bank as President in 1986. Previously, He served as the Secretary of Prosperity Bank. From 1978 to 1986, Mr. Zalman was employed by Commercial State Bank in El Campo, beginning as Cashier and rising to become Chief Executive Officer. He served as Chairman of Prosperity Bank since 2001. He served as the Chairman of Community Bankers Trust Corporation (alternate name: Bankers Acquisition Corp. He has been a Director of Houston Branch at Federal Reserve Bank of Dallas since January 1, 2016. He serves as a Director of Prosperity Bank. He serves as a Director of New ICM LP. Mr. Zalman has been a Director of Prosperity Bancshares Inc., since 1987. He served as a Director of Community Bankers Trust Corporation. He served as a member of the El Campo City Council, the Edna Rotary Club and the El Campo Lion’s Club, as a Trustee of the St. Philip Catholic School Endowment Fund and President of the West Wharton County United Way. Mr. Zalman received a Bachelor of Business Administration degree in Finance and Marketing from the University of Texas in 1978.

CEO Compensation
  • David's compensation has increased by more than 20% in the past year.
  • David's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Prosperity Bancshares management team in years:

15.2
Average Tenure
61
Average Age
  • The average tenure for the Prosperity Bancshares management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

David Zalman

TITLE
Senior Chairman & CEO
COMPENSATION
$5M
AGE
61
TENURE
18.2 yrs

Tim Timanus

TITLE
Vice Chairman
COMPENSATION
$2M
AGE
73
TENURE
18.1 yrs

Eddie Safady

TITLE
President
COMPENSATION
$2M
AGE
60
TENURE
0.2 yrs

Dave Hollaway

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
62
TENURE
21.2 yrs

Charlotte Rasche

TITLE
Executive VP & General Counsel
COMPENSATION
$2M
AGE
53
TENURE
6.9 yrs

Randy Hester

TITLE
Executive Vice President
COMPENSATION
$2M
AGE
59
TENURE
17.6 yrs

Cindy Swindle

TITLE
Senior Vice President
AGE
63
TENURE
15.8 yrs

Lori Wakefield

TITLE
Senior Vice President of Prosperity Bank
TENURE
14.6 yrs

Mike Reaves

TITLE
Senior Vice President of Prosperity Bank
TENURE
14.6 yrs

Denny Buchanan

TITLE
Senior Vice President of Prosperity Bank
TENURE
14.6 yrs
Board of Directors Tenure

Average tenure and age of the Prosperity Bancshares board of directors in years:

11.9
Average Tenure
73
Average Age
  • The average tenure for the Prosperity Bancshares board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Tim Timanus

TITLE
Vice Chairman
COMPENSATION
$2M
AGE
73
TENURE
0.2 yrs

Mark Humphrey

TITLE
Chairman of Bryan

David Zalman

TITLE
Senior Chairman & CEO
COMPENSATION
$5M
AGE
61
TENURE
18.2 yrs

John Zacek

TITLE
Chairman of South Texas Area - Prosperity Bank
TENURE
5.3 yrs

Robert Steelhammer

TITLE
Director
COMPENSATION
$98K
AGE
77
TENURE
36.2 yrs

Harrison Stafford

TITLE
Director
COMPENSATION
$100K
AGE
76
TENURE
18.9 yrs

Leah Henderson

TITLE
Director
COMPENSATION
$98K
AGE
51
TENURE
11.9 yrs

Will Luedke

TITLE
Director
COMPENSATION
$97K
AGE
65
TENURE
4.9 yrs

Jim Bouligny

TITLE
Presiding Director
COMPENSATION
$93K
AGE
82
TENURE
6.2 yrs

Ned Holmes

TITLE
Director
COMPENSATION
$98K
AGE
73
TENURE
36.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Prosperity Bancshares insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Dec 18 Buy H. Timanus Individual 24. Dec 18 24. Dec 18 5,000 $57.65 $288,250
21. Dec 18 Buy H. Timanus Individual 20. Dec 18 20. Dec 18 5,000 $59.14 $295,700
31. Oct 18 Sell Robert Steelhammer Individual 30. Oct 18 30. Oct 18 -2,180 $65.44 $-142,653
29. Oct 18 Sell Robert Steelhammer Individual 26. Oct 18 26. Oct 18 -3,615 $62.97 $-227,647
22. Aug 18 Sell Leah Henderson Individual 21. Aug 18 21. Aug 18 -1,000 $76.09 $-76,091
10. Aug 18 Sell Harrison Stafford Individual 09. Aug 18 09. Aug 18 -1,900 $72.97 $-138,643
09. May 18 Sell Ned Holmes Individual 07. May 18 08. May 18 -50,000 $74.64 $-3,722,795
30. Apr 18 Sell Randy Hester Individual 27. Apr 18 27. Apr 18 -5,000 $73.13 $-365,630
X
Management checks
We assess Prosperity Bancshares's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Prosperity Bancshares has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PB News

Simply Wall St News

Only 4 Days Left To Cash In On Prosperity Bancshares, Inc. (NYSE:PB) Dividend

(NYSE:PB) will be distributing its dividend of US$0.41 per share on the 01 April 2019, and will start trading ex-dividend in 4 days time on the 14 March 2019. … Below, I will explain how holding Prosperity Bancshares can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

Simply Wall St -

When Should You Buy Prosperity Bancshares, Inc. (NYSE:PB)?

received a lot of attention from a substantial price increase on the NYSE over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on Prosperity Bancshares’s outlook and valuation to see if the opportunity still exists.

Simply Wall St -

Here's What We Think About Prosperity Bancshares, Inc.'s (NYSE:PB) CEO Pay

David Zalman became the CEO of Prosperity Bancshares, Inc. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does David Zalman's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Prosperity Bancshares, Inc. (NYSE:PB) Insiders Have Been Selling

So shareholders might well want to know whether insiders have been buying or selling shares in Prosperity Bancshares, Inc. … Prosperity Bancshares Insider Transactions Over The Last Year. … Over the last year we saw more insider selling of Prosperity Bancshares shares, than buying

Simply Wall St -

Risk Factors To Consider Before Investing In Prosperity Bancshares, Inc. (NYSE:PB)

As a small-cap bank with a market capitalisation of US$4.1b, Prosperity Bancshares, Inc.’s (NYSE:PB) profit and value are directly affected by economic activity. … Risk associate with repayment is measured by the level of bad debt which is an expense written off Prosperity Bancshares’s bottom line. … View our latest analysis for Prosperity Bancshares

Simply Wall St -

Why Prosperity Bancshares, Inc. (NYSE:PB) Should Be In Your Portfolio

There is a lot to be liked about Prosperity Bancshares, Inc. … Let's dig deeper into whether Prosperity Bancshares should have a place in your portfolio. … Check out our latest analysis for Prosperity Bancshares

Simply Wall St -

Why These Fundamentals Make Prosperity Bancshares Inc’s (NYSE:PB) More Attractive

Prosperity Bancshares Inc’s (NYSE:PB) profitability and risk are largely affected by the underlying economic growth for the region it operates in US given it is a small-cap stock with a market capitalisation of US$4.8b. … Basel III target banking regulations to improve the sector’s ability to absorb shocks resulting from economic stress which may expose financial institutions like Prosperity Bancshares to vulnerabilities. … Strong management of leverage and liquidity could place the bank in a protected position at the face of macro headwinds.

Simply Wall St -

Here's What Prosperity Bancshares Inc's (NYSE:PB) P/E Is Telling Us

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Prosperity Bancshares has a price to earnings ratio of 15.77, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Prosperity Bancshares Inc's (NYSE:PB) CEO Pay Justified?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does David Zalman's Compensation Compare With Similar Sized Companies. … Most shareholders would consider it a positive that David Zalman takes less compensation than the CEOs of most similar size companies, leaving more for shareholders.

Simply Wall St -

Should You Buy Prosperity Bancshares Inc (NYSE:PB) Now?

saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price.

Simply Wall St -

PB Company Info

Description

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides retail and commercial banking services to small and medium-sized businesses, and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts. The company also offers 1-4 family residential mortgage, commercial mortgage and multifamily residential, commercial and industrial, agricultural real estate, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; and consumer durables and home equity loans. In addition, it provides Internet banking and other cash management, mobile banking, trust and wealth management, retail brokerage, mortgage banking, and automated telephone banking services, as well as debit and credit cards. As of December 31, 2018, the company operated 242 full service banking locations comprising 65 in the Houston area, including The Woodlands; 29 in the South Texas area consisting of Corpus Christi and Victoria; 33 in the Dallas/Fort Worth area; 22 in the East Texas area; 29 in the Central Texas area comprising Austin and San Antonio; 34 in the West Texas area, including Lubbock, Midland-Odessa and Abilene; 16 in the Bryan/College Station area; 6 in the Central Oklahoma area; and 8 in the Tulsa, Oklahoma area. Prosperity Bancshares, Inc. was founded in 1983 and is based in Houston, Texas.

Details
Name: Prosperity Bancshares, Inc.
PB
Exchange: NYSE
Founded: 1983
$4,901,850,178
69,846,825
Website: http://www.prosperitybankusa.com
Address: Prosperity Bancshares, Inc.
Prosperity Bank Plaza,
4295 San Felipe,
Houston,
Texas, 77027,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PB Common Stock New York Stock Exchange US USD 12. Nov 1998
DB PPY Common Stock Deutsche Boerse AG DE EUR 12. Nov 1998
Number of employees
Current staff
Staff numbers
3,036
Prosperity Bancshares employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:44
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/15
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.