$PB — HOLD 📊 | 6 MONTHS THESIS

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. 🎯 FQ2 FY2026 (ends Jun) | reported Jul 29 | Rev $391M | Adj EPS $1.62 vs $1.55 🟢 | GAAP EPS $1.40 💡 Consensus appears to treat PB as a slow-growth Texas regional; the market underappreciates the NIM repricing and merger cost-save timing. At $72.77 the stock is ~1.67x tangible book value ($43.48) and ~11x the combined core net-income run rate (~$780M), while 14-analyst average target is $78.36, high $84, low $68. 🏢 Business Quality: 7.5/10 📊 Valuation: 1.67x P/TBV at $72.77 with TBVPS $43.48; ~11x P/E on combined core run-rate (~$780M); ~3.3% dividend yield ($2.40/yr); consensus targets $68-$84 with... 🔮 Catalyst: FQ3 FY2026 (ending Sep) earnings around late Oct/Nov 2026; NIM trending toward 3.70-3.75% Q4 2026 exit; American Bank conversion Sept 2026, Texas Partners conversion Nov 2026, Stellar conversion March 2027; failure

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers.