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HOUSTON - Prosperity Bancshares, Inc. (NYSE:PB), a $6.9 billion market cap regional bank, announced Wednesday that its Board of Directors has declared a quarterly common stock dividend of $0.58 per share for the third quarter of 2025. The dividend will be payable on October 1, 2025, to shareholders of record as of September 15, 2025. The bank has maintained dividend payments for 27 consecutive years, with a current yield of 3.2%. InvestingPro analysis shows the stock is currently undervalued, with a "Fair" overall financial health score.
The Texas-based regional financial holding company operates 283 full-service banking locations across Texas and Oklahoma. As of March 31, 2025, Prosperity Bancshares reported total assets of $38.765 billion. With a P/E ratio of 13.9x and revenue growth of 11.6% in the last twelve months, the bank demonstrates solid financial performance. Discover more detailed insights and metrics with a comprehensive Pro Research Report, available on InvestingPro.
Founded in 1983, the company provides personal banking services and investments to consumers and small to medium-sized businesses throughout its operating regions. Its service offerings include traditional deposit and loan products, digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.
Prosperity’s banking network spans multiple regions, including 62 locations in the Houston area, 61 in the Dallas/Fort Worth area, and 31 in the Central Texas area including Austin and San Antonio, among others.
The announcement was made in a company press release statement.
In other recent news, Prosperity Bancshares reported its first-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $1.37, slightly above the forecasted $1.35. However, the company’s revenue came in slightly below projections, totaling $306.68 million against an anticipated $307.93 million. Analysts at Raymond James maintained an Outperform rating for Prosperity Bancshares but reduced their price target from $87 to $80, citing a revision in future EPS estimates due to lowered forecasts for loan and balance sheet growth. Despite this, the bank’s strong capital position and favorable credit metrics were highlighted as positive aspects.
Jefferies initiated coverage on Prosperity Bancshares with a Buy rating, setting a price target of $85, noting the bank’s strong capital position and potential for net interest margin (NIM) expansion. The firm emphasized Prosperity Bancshares’ strategic flexibility and historical success in navigating economic challenges. Analysts at Jefferies also expressed confidence in the bank’s ability to act as a defensive investment choice amid economic volatility.
Prosperity Bancshares’ net income for the first quarter rose to $130 million, marking a 17.9% increase from the previous year, while the net interest margin improved significantly to 3.14% from 2.79% in Q1 2024. The company remains optimistic about its growth prospects, including potential mergers and acquisitions, as well as maintaining strong operational efficiency. Despite economic uncertainties, Prosperity Bancshares continues to focus on customer relationships and regional dominance in Texas and Oklahoma, contributing to its robust financial performance.
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