Industry Revenues:

• Financial services: 100% (2025)

TOP 3 Markets:

• Texas: approx. 70%
• Oklahoma: approx. 15%
• Louisiana: approx. 10%

Prosperity Bancshares, Inc. generates its revenues mainly from the financial services sector, as it is a bank holding company. The majority of the income comes from traditional banking activities such as deposits, loans, and other financial services.

Texas is the largest market for Prosperity Bancshares, attributed to its strong presence and dense branch network in this state. Oklahoma and Louisiana follow as other important markets where the bank is also active. These markets are crucial for the company as they provide a significant number of customers and business opportunities.

Production: No physical production

Prosperity Bancshares, Inc. is a financial services company and not a production company. It offers banking services such as deposits, loans, and other financial products. Therefore, there is no physical production of goods, but the provision of financial services.

Current Growth Strategy: Expansion through Acquisitions and Digitalization (2025)

Prosperity Bancshares, Inc. is pursuing a growth strategy that heavily relies on expansion through strategic acquisitions. In recent years, the company has acquired several smaller banks to strengthen its market presence in the southern USA. These acquisitions enable Prosperity Bancshares to expand its customer base and leverage synergies to reduce costs.

Additionally, the company is investing in the digitalization of its services to enhance the customer experience and operate more efficiently. This includes introducing new digital platforms and improving mobile banking services to meet changing customer needs.

Through this combination of acquisitions and digitalization, Prosperity Bancshares aims to further enhance its market position and secure long-term profitable growth.

Commodities/Materials: No specific commodities

Prosperity Bancshares, Inc. is a financial services company and not a manufacturing firm. Therefore, it does not import physical commodities or materials like a production company.

The company focuses on financial services, including banking, lending, and asset management. In this sector, the "commodities" are more intangible, such as capital and financial products that are not physically imported.

Return on Equity (ROE): 10.5% (2024)
Tier 1 Capital Ratio: 12.3% (2024)
Net Interest Margin: 3.25% (2024)

Prosperity Bancshares, Inc. has a solid competitive advantage that is manifested through several financial indicators and strategic positioning. The return on equity of 10.5% shows that the company efficiently manages its capital and achieves an above-average return compared to many competitors.

The Tier 1 capital ratio of 12.3% indicates a strong capital base, providing the company with stability and enabling it to remain competitive even in economically challenging times. This is particularly important in the banking sector, where regulatory requirements and economic fluctuations play a significant role.

Additionally, the net interest margin of 3.25% indicates that Prosperity Bancshares is able to generate a healthy margin from its interest income. This is an indicator of effective interest rate policy and a strong position in lending and deposit business.

In summary, Prosperity Bancshares has a solid competitive advantage supported by efficient capital management and a strong capital structure. This enables the company to operate successfully in a competitive market environment.

Institutional Investor Share: 75% (estimated, 2025)
Insider Buys/Sells: No significant transactions in the last quarter (2025)

The institutional investor share in Prosperity Bancshares, Inc. is estimated to be around 75%. This demonstrates the confidence of large institutional investors in the company's stability and growth potential.

There were no significant insider transactions in the last quarter, indicating that the management currently does not expect any major changes in the company's valuation. This can be interpreted as a sign of stable corporate governance and balanced market valuation.

Market share of Prosperity Bancshares, Inc.: Estimate: 1-2% in the regional banking sector (2025)

Top competitors in the regional banking sector:

1. JPMorgan Chase & Co. - Market share: approx. 10-12%
2. Bank of America Corp. - Market share: approx. 8-10%
3. Wells Fargo & Co. - Market share: approx. 7-9%
4. Citigroup Inc. - Market share: approx. 5-7%
5. U.S. Bancorp - Market share: approx. 4-6%
6. Truist Financial Corp. - Market share: approx. 3-5%
7. PNC Financial Services Group - Market share: approx. 3-4%
8. Fifth Third Bancorp - Market share: approx. 2-3%
9. KeyCorp - Market share: approx. 2-3%
10. Regions Financial Corp. - Market share: approx. 2-3%

Moat of Prosperity Bancshares, Inc.:

Prosperity Bancshares, Inc. has a moderate moat, mainly based on its strong regional presence and customer loyalty in Texas and adjacent markets. The company benefits from a well-established network and strong brand recognition in these areas.

In comparison to large national banks like JPMorgan Chase or Bank of America, which have significant financial resources and a broader range of services, the moat of Prosperity Bancshares is less pronounced. These larger banks often have a technological advantage and can offer more cost-effective services through economies of scale.

Overall, Prosperity Bancshares has a solid but limited competitive advantage, focusing mainly on its regional strength and customer relationships. The larger competitors tend to have stronger moats due to their size, technological investments, and diversified services.

Return on Equity (ROE): 9.8% (2024) Equity Ratio: 11.5% (2024) Net Interest Margin: 3.2% (2024)

Prosperity Bancshares, Inc. shows a solid return on equity of 9.8%, indicating efficient use of equity capital. The equity ratio of 11.5% suggests healthy financial stability as the company has an adequate cushion of equity.

The net interest margin of 3.2% is an indicator of the bank's ability to generate income from its interest-bearing assets. This metric is competitive compared to other banks in the sector, indicating an effective interest rate policy.

Overall, the financial health of Prosperity Bancshares suggests that the stock is a stable investment opportunity, especially for investors interested in long-term value appreciation. However, it is advisable to also consider macroeconomic factors and industry-specific risks.

Dividend Yield: 3.2% (2024)
Dividend History: Continuous payout for over 20 years

Prosperity Bancshares, Inc. is known for its reliable dividend policy. The company has consistently paid dividends for over two decades, indicating a stable financial foundation and a solid business model.

The dividend yield of 3.2% in 2024 shows that the company offers its shareholders an attractive return. The consistency of the payouts suggests that Prosperity Bancshares is able to pay dividends even in economically challenging times, which is advantageous for investors seeking regular income.