Prosperity Bancshares made more money amid asset repricing and bank mergers. That is the clean reading of its latest three-month period, with net income up 24.7% from a year earlier.
The per-share version is less tidy. Diluted EPS rose 17.6%, because the number of diluted shares increased 5.8% after stock was issued in connection with the American and Southwest mergers. At the latest close, Prosperity shares were $74.60, down 0.3% on Aug. 5.
Management attributed the earnings change to a mix of balance-sheet pricing and merger effects, not to one clean source of growth. The company said:
"The changes for both measures were primarily due to the repricing of assets, the impact of the American Merger and the Southwest Merger and a decrease in the average balance and average rate on other borrowings."
Prosperity Bancshares, 10-Q, Aug. 6, 2026.
In plain English, the results reflected asset repricing, changes in other borrowings, and the effects of two mergers. The filing does not quantify the split among those factors.
The share count gives the merger arithmetic another edge. Prosperity disclosed that common stock issued for the American merger added $306.8 million and stock issued for the Southwest merger added $282.6 million to equity. Net income also added $284.9 million, while dividends and repurchases reduced equity.
"The increase was primarily the result of the common stock issuance in connection with the American Merger of $306.8 million, common stock issuance in connection with the Southwest Merger of $282.6 million, net income of $284.9 million and stock based compensation expense of $6.6 million, partially offset by dividend payments of $121.0 million and stock repurchase of $70.8 million."
Prosperity Bancshares, 10-Q, Aug. 6, 2026.
That is why the income statement and the per-share result do not line up perfectly. Profit grew faster than the diluted share count, so EPS still increased, but the merger-issued shares absorbed part of the gain.
The Stellar merger was not completed at June 30. Prosperity said it completed the merger with Stellar Bancorp and Stellar Bank on July 1, after the reported three-month period. The Stellar merger therefore enters the next reporting period.
The next report will show how net income, EPS, and diluted shares changed after the Stellar merger was included for a full period. Prosperity earned more, while the merger contribution and higher share count make the underlying growth harder to isolate.