Prosperity Bancshares, Inc. (PB): Business Model Canvas [Dec-2025 Updated]

You're looking to see how a well-capitalized regional player is navigating the late-2025 M&A landscape, right? Well, after two decades analyzing bank balance sheets, I can tell you that Prosperity Bancshares, Inc.'s model is built on disciplined growth and rock-solid stability. They aren't just sitting on their $38.33 billion in assets as of Q3 2025; they are actively pursuing acquisitions while maintaining a fortress-like Common Equity Tier 1 ratio of 17.53%. This strategy-marrying community-focused relationship banking with aggressive, yet calculated, expansion across Texas and Oklahoma-is what drives their consistent dividend increases. It's a fascinating blueprint for regional banking success, and honestly, you need to see the nine blocks to fully grasp how they connect their core deposit base to that $273.4 million Net Interest Income. I think you'll find their approach to risk management is defintely worth a closer look below.

Prosperity Bancshares, Inc. (PB) - Canvas Business Model: Key Partnerships

You're mapping out the strategic alliances that keep Prosperity Bancshares, Inc. running smoothly, especially with big moves happening in late 2025. These partnerships, from M&A targets to regulators, are critical for growth and stability.

Pending acquisition targets like American Bank Holding Corporation represent a key partnership strategy for geographic expansion. Prosperity Bancshares, Inc. announced its definitive merger agreement to acquire American Bank Holding Corporation on July 18, 2025. The total consideration for this all-stock deal was valued at approximately $321.5 million, based on Prosperity Bancshares' closing stock price of $72.40 on July 16, 2025. Prosperity Bancshares, Inc. is set to issue 4,439,981 shares of its common stock for the acquisition. This deal is expected to close in the fourth quarter of 2025 or the first quarter of 2026. This move is designed to strengthen Prosperity Bancshares, Inc.'s presence in South Texas and enhance its footprint in the high-growth Central Texas area, including San Antonio. The acquired entity brings significant scale to the partnership.

Here's a look at the reported balance sheet figures for American Bank Holding Corp. just before the merger announcement, which gives you a sense of the scale of this key partnership:

Metric	Date of Record	Amount
Total Assets	June 30, 2025	$2.553 billion
Total Loans	June 30, 2025	$1.798 billion
Total Deposits	June 30, 2025	$2.293 billion
Prosperity Bancshares Total Assets (Parent)	September 30, 2025	$38.330 billion

Also, Prosperity Bancshares, Inc. announced in October 2025 a separate definitive merger agreement with Southwest Bancshares, Inc., headquartered in San Antonio, Texas, indicating an active partnership pipeline.

Regulatory bodies (FDIC, Federal Reserve) for compliance are foundational partners in the banking sector, setting the rules of engagement. As a Texas-chartered banking association, Prosperity Bank's deposits are insured by the DIF of the FDIC, and it is subject to supervision by both the FDIC and the Texas Department of Banking. While Prosperity Bank is not a member of the Federal Reserve System, the Federal Reserve Board maintains supervisory authority over the holding company, Prosperity Bancshares, Inc. Both the Federal Reserve Board and the FDIC require large banking organizations to submit resolution plans, or living wills, which these firms were required to file by October 1, 2025. The American Bank Holding Corporation merger received customary regulatory approvals, including from the Federal Reserve System and the FDIC, which is a necessary step for any major partnership.

Core technology vendors for digital banking and security and Financial institutions for loan participations are less explicitly detailed in public filings, but the operational context is clear. Prosperity Bancshares, Inc. provides digital banking solutions, credit/debit cards, and treasury management solutions to its customers across Texas and Oklahoma. The focus on security is paramount, as regulators expect banks to stay ahead of evolving cyber threats in 2025. While specific vendor names aren't listed as key partnerships in the same way an acquisition is, the operational reliance on technology partners is implied by the services offered, and the regulatory environment demands strong security protocols.

• Prosperity Bancshares, Inc. reported total loans of $22.197 billion as of June 30, 2025, suggesting active participation in the loan market, which often involves partnerships for loan participations to manage risk exposure.
• The Bank is subject to supervision by the Consumer Financial Protection Bureau (CFPB) because its total assets exceed $10 billion.
• Prosperity Bancshares, Inc. declared a third quarter 2025 cash dividend of $0.58 per share, paid on October 1, 2025, demonstrating a commitment to shareholder returns, which is a key relationship to maintain.

The relationship with regulatory bodies is a constant, non-negotiable partnership; for instance, violations of laws or unsafe and unsound practices may result in agencies imposing fines or penalties. You defintely need to track their guidance.

Prosperity Bancshares, Inc. (PB) - Canvas Business Model: Key Activities

You're looking at the engine room of Prosperity Bancshares, Inc. (PB), the day-to-day work that turns their community banking philosophy into hard numbers. It's a mix of proactive deal-making, disciplined lending, and careful management of the balance sheet.

Strategic Mergers and Acquisitions (M&A) for expansion

Prosperity Bancshares, Inc. (PB) actively pursues strategic growth through acquisitions to expand its Texas and Oklahoma footprint. A key activity in late 2025 was the definitive merger agreement signed on October 1, 2025, with Southwest Bancshares, Inc. This deal involves the merger of Southwest Bancshares, Inc. into Prosperity Bancshares, Inc. (PB), and the subsequent merger of Texas Partners Bank into Prosperity Bank. Texas Partners Bank operates 11 banking offices in Central Texas, including its main office in San Antonio. This focus on M&A supports their goal of scaling operations while maintaining a community banking approach. Management has stated they are prioritizing M&A while remaining opportunistic on share buybacks during market downturns. The balance sheet strength, evidenced by a tangible equity to tangible assets ratio of 11.58% as of the last quarter before August 2025, supports this optionality for M&A.

Commercial and retail loan origination and servicing

The core of the business is taking deposits and making loans, which is evident in their asset growth. As of June 30, 2025, total loans stood at $22.197 billion, reflecting a linked-quarter increase of $219.8 million, or 1.0%. This activity is spread across various segments, including commercial real estate, 1-4 family residential mortgages, and commercial and industrial loans. For instance, the mortgage warehouse business had a second-quarter 2025 guide of approximately $1.05-$1.10 billion in balances. The bank's overall loan portfolio grew by $712.3 million, or 3.3%, year-over-year as of March 31, 2025, partly driven by the April 1, 2024, merger integration.

Here's a look at the loan portfolio activity:

Metric	Date/Period	Amount/Value
Total Loans	June 30, 2025	$22.197 billion
Linked Quarter Loan Increase	Q2 2025	$219.8 million
Year-over-Year Loan Increase	March 31, 2025 vs March 31, 2024	$712.3 million
Mortgage Warehouse Balances (Guide)	Q2 2025	$1.05-$1.10 billion

Core deposit gathering and balance sheet management

Gathering low-cost core deposits is a critical activity that fuels lending and manages funding costs. Prosperity Bancshares, Inc. (PB) maintains a strong core funding base. For the second quarter of 2025, noninterest-bearing deposits were $9.4 billion, making up 34.3% of total deposits. This is consistent with the first quarter of 2025, where noninterest-bearing deposits were 34.5% of the total. The cost of funds was reported at 1.66% in Q1 2025, aided by this deposit structure. Balance sheet management also involved reducing leverage; borrowings were cut by $500.0 million in the first quarter of 2025, bringing them down to $2.7 billion. The bank's total assets as of September 30, 2025, were $38.330 billion.

The bank's operational efficiency is a direct result of this management:

• Efficiency Ratio (Q3 2025): 44.1%.
• Return on Average Assets (ROAA) (Q3 2025 annualized): 1.44%.
• Return on Average Tangible Common Equity (ROATCE) (Q3 2025 annualized): 13.43%.

Maintaining a strong Common Equity Tier 1 ratio of 17.53%

While you mentioned a target of 17.53%, the latest reported figure shows a strong capital position supporting operations and growth optionality. Prosperity Bancshares, Inc. (PB) reported a strong 17.1% Common Equity Tier 1 (CET1) ratio in the quarter leading up to August 2025. This high capital cushion, along with a tangible equity to tangible assets ratio of 11.58% in Q2 2025, provides the flexibility to support loan growth, M&A, or direct returns to shareholders. The bank reported $7.6 billion in Equity Capital and Reserves for the fiscal quarter ending in June of 2025.

Regulatory compliance and risk management

Ensuring compliance and managing credit risk are non-negotiable activities woven into the operational fabric, guided by the core value of Soundness. Asset quality remained stable through the first half of 2025. Non-Performing Assets (NPAs) were at 0.24% of average interest-earning assets as of Q1 2025, with no provision for credit losses recorded in that quarter. The Allowance for Credit Losses (ACL) stood at $386.7 million at that time. Furthermore, the bank actively manages its reserve position; for the six months ended June 30, 2025, $10.4 million of reserves on resolved Purchased Credit Deteriorated (PCD) loans were released to the general reserve. The bank operates 283 banking centers, each treated as a separate profit center, with accountability for performance metrics like efficiency ratio and deposit growth assigned to local management, which is a form of decentralized risk oversight.

Key Risk Management Metrics (Q1/H1 2025):

• NPAs to Average Interest-Earning Assets: 0.24%.
• Allowance for Credit Losses (ACL): $386.7 million.
• Reserves Released (H1 2025): $10.4 million.
• Banking Centers with Local Accountability: 283.

Finance: draft 13-week cash view by Friday.

Prosperity Bancshares, Inc. (PB) - Canvas Business Model: Key Resources

You're looking at the bedrock of Prosperity Bancshares, Inc. (PB) operations as of late 2025. These aren't just abstract concepts; they are the hard numbers backing their strategy.

Strong Capital Base Supporting M&A Activity

The capital position is definitely a key enabler for Prosperity Bancshares, Inc.'s growth-by-acquisition strategy. You see this strength reflected in the latest regulatory ratios reported after the third quarter.

Here's a quick look at the capital strength as of September 30, 2025:

Capital Metric	Value as of Q3 2025
Common Equity Tier 1 Ratio	17.53%
Total Risk-Based Capital Ratio	18.78%
Equity-to-Assets Ratio	20.0%

This robust capital structure supports the announced M&A pipeline, including the definitive merger agreement with Southwest Bancshares, Inc. expected in Q1 2026, and the pending acquisition of American Bank Holding Corporation, which was expected to close in Q4 2025 or Q1 2026.

Balance Sheet Scale and Footprint

The sheer scale of the balance sheet provides operational leverage. As of the third quarter ending September 30, 2025, Prosperity Bancshares, Inc. reported total assets of $38.330 billion.

This asset base is supported by an extensive physical presence across Texas and Oklahoma. Prosperity Bancshares, Inc. currently operates 283 full-service banking centers.

The distribution of these centers as of Q2/Q3 2025 reports shows a focused geographic concentration:

• Houston area (including The Woodlands): 62 locations
• Dallas/Fort Worth area: 61 locations
• West Texas area (including Lubbock, Midland-Odessa, Abilene, Amarillo and Wichita Falls): 45 locations
• South Texas area (including Corpus Christi and Victoria): 33 locations
• Central Texas area (including Austin and San Antonio): 31 locations
• East Texas area: 22 locations
• Bryan/College Station area: 15 locations
• Central Oklahoma area: 6 locations
• Tulsa, Oklahoma area: 8 locations

Highly Stable, Low-Cost Core Deposit Base

A key differentiator is the quality of funding. Total deposits stood at $27.78 billion at the end of Q3 2025.

The stability comes from the non-interest-bearing component. Noninterest-bearing deposits were $9.5 billion, which made up 34.3% of total deposits for the quarter ending September 30, 2025.

Management emphasized having no brokered deposits, pointing to the inherent stickiness of this funding mix.

Experienced Management Team with M&A Expertise

The management team's track record in executing transactions is a resource in itself. They are actively integrating past deals like the Lone Star Merger and are in the final stages of others.

The team's expertise is directly applied to the ongoing integration and planning for the announced acquisitions:

• American Bank Holding Corporation acquisition expected closing in Q4 2025 or Q1 2026.
• Southwest Bancshares, Inc. merger agreement signed October 1, 2025, expected close in Q1 2026.

Finance: draft 13-week cash view by Friday.

Prosperity Bancshares, Inc. (PB) - Canvas Business Model: Value Propositions

You're looking at the core strengths Prosperity Bancshares, Inc. offers its clients and the market as of late 2025. It's about stability, local focus, and a full set of tools for your financial life.

Financial stability and soundness in the regional market

Prosperity Bancshares, Inc. maintains a strong capital position, which is a key value proposition in the current environment. As of September 30, 2025, the company reported a Common Equity Tier 1 Ratio of 17.53% and an Equity-to-Assets Ratio of 20.0%. The total asset base stood at $38.33 billion at the end of Q3 2025, slightly down from $38.41 billion a quarter earlier. Profitability remains solid; Q3 2025 net income available to common shareholders was $137.6 million, an 8.1% increase year-over-year. The bank's operational efficiency is evident, with the Q3 2025 Efficiency Ratio at 44.1%. For the second quarter of 2025, the Return on Average Assets (ROAA) was 1.41%, and the Return on Average Tangible Common Equity (ROATCE) reached 13.44%.

The focus on margin management delivered results, with the Net Interest Margin (NIM) for Q3 2025 reported at 3.2%, and management projecting the full-year 2025 NIM to be in the range of 3.25% to 3.3%. Asset quality is managed closely, though nonperforming assets were noted to be up year-over-year. For Q2 2025, nonperforming assets to average earning assets stood at 0.33%.

Here are some key financial metrics from recent quarters:

Metric (Period End)	Value	Context
Total Assets (June 30, 2025)	$38.417 billion	Regional financial holding company size.
Net Income (Q2 2025)	$135.2 million	Year-over-year increase of 21.1%.
Diluted EPS (Q2 2025)	$1.42	Year-over-year increase of 21.4%.
Net Interest Margin (Q2 2025)	3.18%	Increased 24 basis points year-over-year.
Efficiency Ratio (Q2 2025)	44.80%	Improved operational performance.

Relationship-based community banking model

Prosperity Bancshares, Inc. operates on a community banking philosophy, focusing on taking care of customers, businesses, and the communities it serves. This model supports a stable funding base, which is crucial. As of Q2 2025, noninterest-bearing deposits totaled $9.4 billion, making up 34.3% of total deposits. By Q3 2025, total deposits were $27.78 billion. This reliance on core deposits provides a low-cost funding advantage.

Comprehensive product suite for business and retail clients

The value proposition includes a wide array of financial tools designed to simplify everyday financial needs for both consumers and small to medium-sized businesses.

• Traditional deposit and loan products
• Digital banking solutions
• Credit and debit cards
• Mortgage services
• Retail brokerage services
• Trust and wealth management
• Treasury management

Consistent dividend growth, marking 22nd consecutive annual increase

The commitment to shareholder returns is demonstrated through consistent dividend action. The Board declared a Q4 2025 quarterly common stock dividend of $0.60 per share, payable January 2, 2026. This represents an increase of $0.02 per share, or 3.45%, from the prior quarter's $0.58. This new rate implies an annualized dividend of $2.40 per share, resulting in a yield of 3.4% based on recent trading prices. Historically, the annual payment grew from $1.09 in 2015 to the most recent fiscal year payment of $2.32, reflecting a yearly distribution growth rate of about 7.8% over that decade. The current dividend payout ratio is approximately 41% to 41.35%, suggesting earnings cover the payment well.

Local expertise in high-growth Texas and Oklahoma markets

Prosperity Bancshares, Inc. is a Houston, Texas-based regional financial holding company with a focused geographic footprint. The bank operates 283 full-service banking locations across Texas and Oklahoma as of June 30, 2025. This physical presence is concentrated in key economic centers.

The bank leverages its local expertise by having a significant presence in five of the fastest-growing Metropolitan Statistical Areas (MSAs) in the United States: Austin, Dallas, Houston, San Antonio, and Oklahoma City. Recent strategic moves, like the merger agreement with American Bank Holding Company, are specifically aimed at expanding the South Texas presence, including San Antonio. Furthermore, a Q3 2025 merger agreement with Southwest Bancshares, Inc. was signed to bolster the San Antonio metro footprint with 4 additional branches. Location counts as of June 30, 2025, include:

Market Area	Number of Locations
Houston area (including The Woodlands)	62
Dallas/Fort Worth area	61
West Texas (including Lubbock, Midland-Odessa, Abilene, Amarillo, Wichita Falls)	45
Central Texas (including Austin and San Antonio)	31
Central Oklahoma area	6
Tulsa	8

The bank has been recognized as one of Forbes America's Best Banks since 2010 and was named 'Best Overall Bank in Texas' by Money for 2025.

Prosperity Bancshares, Inc. (PB) - Canvas Business Model: Customer Relationships

Prosperity Bancshares, Inc. operates as a Houston, Texas based regional financial holding company with total assets of $38.330 billion as of September 30, 2025.

Dedicated relationship managers for commercial clients

Prosperity Bancshares, Inc. provides financial products and services to consumers and small to medium-sized businesses throughout Texas and Oklahoma. The bank focuses on building core customer relationships.

High-touch, personalized service at branch locations

Prosperity Bank operates 283 full-service banking locations as of September 30, 2025. The bank believes in a community banking philosophy.

Area	Number of Full-Service Locations (as of September 30, 2025)
Houston Area (including The Woodlands)	62
Dallas/Fort Worth Area	61
West Texas Area	45
Central Texas Area (including Austin and San Antonio)	31
South Texas Area (including Corpus Christi and Victoria)	33
East Texas Area	22
Bryan/College Station Area	15
Central Oklahoma Area	6
Tulsa, Oklahoma Area	8

Self-service options via digital and mobile banking platforms

Prosperity Bank offers digital banking solutions. The efficiency ratio, excluding certain items, was 44.8% for the three months ended June 30, 2025. Noninterest-bearing deposits were $9.7 billion, making up 34.5% of total deposits as of the first quarter of 2025.

Long-term focus, fostering trust and loyalty (defintely a core value)

Prosperity Bancshares declared a fourth quarter 2025 cash dividend of $0.60 per share. This marks the 22nd consecutive annual increase in the dividend. The compound annual growth rate for the dividend is 10.7%. Prosperity Bancshares reported net income of $137.6 million for the quarter ended September 30, 2025. Net income for the nine months ended September 30, 2025, was $402.9 million, an increase of 15.4% compared to the same period in 2024.

Community engagement through local initiatives

Prosperity Bank takes pride in taking care of the communities in which it serves. The bank provides financial solutions to simplify everyday financial needs for customers, businesses, and communities in the areas it serves. Prosperity Bank was named "Best Overall Bank in Texas" by Money for 2025.

• Founded in 1983.
• Ranked in the Top 10 for Forbes America's Best Banks for 14 consecutive years.
• Ranked #2 in deposit market share in Texas (as of 6/30/2024).

Prosperity Bancshares, Inc. (PB) - Canvas Business Model: Channels

You're looking at how Prosperity Bancshares, Inc. gets its services to customers across Texas and Oklahoma. It's a mix of traditional brick-and-mortar presence and digital access points, which is typical for a strong regional player in late 2025.

Physical branch network across Texas and Oklahoma

Prosperity Bancshares, Inc. maintains a substantial physical footprint, central to its community banking philosophy. As of September 30, 2025, Prosperity Bancshares, Inc.® operated 283 full-service banking locations throughout Texas and Oklahoma.

This physical network is strategically distributed across key metropolitan and regional areas:

Geographic Area	Number of Locations (as of Sept 30, 2025)
Houston area (including The Woodlands)	62
Dallas/Fort Worth area	61
West Texas area	45
Central Texas area (including Austin and San Antonio)	31
South Texas area (including Corpus Christi and Victoria)	33
Bryan/College Station area	15
East Texas area	22
Tulsa, Oklahoma area	8
Central Oklahoma area	6

The expansion strategy also flows through M&A. The pending acquisition of American Bank Holding Corporation, as of June 30, 2025, included 18 banking offices and 2 loan production offices in South and Central Texas. Also, the announced merger with Southwest Bancshares, Inc. is set to add 11 banking offices in Central Texas.

Digital banking platforms (online and mobile)

Digital channels are a key part of the service delivery, supporting the in-person experience. The stability of the funding base reflects usage of these platforms. As of September 30, 2025, noninterest-bearing deposits, which often represent transactional accounts managed digitally, were $9.5 billion, making up 34.3% of total deposits. This is consistent with the Q1 2025 figure where noninterest-bearing deposits were $9.7 billion, or 34.5% of total deposits.

ATM network for cash access and basic transactions

Prosperity Bancshares, Inc. provides access for cash transactions through its ATM network, though specific figures for the total number of ATMs as of late 2025 aren't explicitly detailed in recent earnings releases. The bank's 283 full-service locations serve as primary access points.

Direct sales force for commercial and industrial loans

For commercial and industrial (C&I) lending, a direct sales approach is evident through team acquisitions. The merger with Southwest Bancshares, Inc. specifically adds an experienced C&I lending team to the channel structure. The total loan portfolio stood at $22.028 billion as of September 30, 2025.

Call centers for customer support

Customer support is routed through established channels. The company states it provides positive experiences at every touchpoint, from in-person to its digital channels. While the existence of call centers is implied for support, specific metrics like call volume or staffing levels for the late 2025 period are not publicly itemized in the latest financial disclosures found.

• Prosperity Bancshares, Inc. provides personal banking services, investments, and wealth management services.
• The company also offers mortgage services, treasury management solutions, and retail brokerage services.

Prosperity Bancshares, Inc. (PB) - Canvas Business Model: Customer Segments

You're looking at the core clientele that fuels Prosperity Bancshares, Inc.'s operations across Texas and Oklahoma. Honestly, the business model is built on a relationship-banking foundation, but the scale achieved through recent mergers means the segments are quite broad now. As of September 30, 2025, Prosperity Bancshares, Inc.® was a $38.330 billion regional financial holding company.

The customer base is segmented across both commercial and retail lines, with a strong geographic concentration in the markets served by its 283 full-service banking locations.

Small to medium-sized businesses (SMBs) in Texas and Oklahoma

This group forms the backbone of the commercial lending and deposit franchise. Prosperity Bancshares, Inc. tailors its products to the specific needs of these businesses in its market areas. The focus here is on Commercial and Industrial (C&I) lending, which is a key driver of earning assets.

• Total C&I loans (Excluding Energy Loans) stood at $1,915 million as of March 31, 2025.
• The bank manages a large number of commercial relationships, evidenced by the 70,400 separate loan accounts managed as of December 31, 2024.

Commercial Real Estate (CRE) investors and developers

CRE and construction lending is a significant, though carefully managed, part of the loan book. The underwriting approach emphasizes conservative loan-to-value ratios for this segment.

Here's a look at the CRE-related loan exposure as of mid-2025:

Metric	Amount (As of June 30, 2025)	Amount (As of March 31, 2025)
Total CRE & Construction Loans	$2,873 million	$2,845 million
Owner-Occupied CRE Percentage	34% of total CRE loans	35% of total CRE loans
Average Total CRE Loan-to-Value	48%	48%

The average office CRE loan-to-value was reported at 51%.

Affluent retail customers seeking wealth management services

For clients needing more than standard deposit services, Prosperity Bancshares, Inc. offers wealth management, trust services, and retail brokerage. This segment is smaller in scale compared to the core lending base but is important for fee income generation.

• Prosperity currently reports $3.5 billion in Assets Under Management (AUM), based on figures reviewed for a 2025 industry ranking.

Mass-market retail customers needing deposit and mortgage products

This segment drives the bank's primary funding source-deposits-and contributes to the mortgage loan portfolio. Prosperity Bancshares, Inc. provides a full spectrum of personal banking services to consumers.

Deposit figures show the scale of this retail and commercial deposit base:

• Total Deposits were $28.027 billion at March 31, 2025.
• As of June 30, 2025, Noninterest-bearing deposits totaled $9.4 billion, which was 34.3% of total deposits.
• As of December 31, 2024, the bank held approximately 816,300 separate deposit accounts.

Municipal and public fund entities

These government and quasi-government entities are a recognized customer group, particularly noted for their deposit behavior. Prosperity Bancshares, Inc. bankers focus on building core deposits, acknowledging the seasonal nature of public fund balances.

• Prosperity notes seasonality where public fund customers use tax dollars received in December and January, leading to lower deposit balances in the second and third quarters.
• Loans to State & Political entities are included within the broader loan portfolio detail.

Prosperity Bancshares, Inc. (PB) - Canvas Business Model: Cost Structure

Significant personnel expenses are tied to a workforce of 3.85K employees at Prosperity Bancshares, Inc..

The branch network operating and occupancy costs support 283 full-service branches as of March 2025.

Interest expense on deposits and borrowings is a major component of funding costs. Here is a breakdown of interest expenses for the quarter ending June 2025:

Expense Category	Amount (USD Millions)
Deposits Interest Expense	95.97 M
Long-Term Debt Interest Expense	0.0
Fed Funds Purchased & Repo Interest Expense	1.09 M
Other Interest Expense	27.61 M

Technology and data processing expenditures are part of the overall noninterest expense base. For instance, the prior year saw increases in credit and debit card, data processing, and software amortization. Prosperity Bancshares maintains a focus on employing stringent cost controls.

Total noninterest expenses for the three months ended September 30, 2025, were reported at $138.6 million. For the nine months ended September 30, 2025, total noninterest expense was $417.5 million.

Key elements contributing to the cost structure include:

• Personnel expenses supporting 3.85K employees.
• Operating costs for 283 banking centers.
• Interest expense on deposits, which was $95.97 million in Q2 2025.
• Total noninterest expense of $138.6 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

Prosperity Bancshares, Inc. (PB) - Canvas Business Model: Revenue Streams

You're looking at the core income drivers for Prosperity Bancshares, Inc. as of late 2025. For a bank like Prosperity Bancshares, the revenue model is fundamentally split between the money earned on its assets (loans and securities) and the fees it collects for services rendered. It's a classic banking structure, but the numbers tell you where the real leverage is right now.

Net Interest Income (NII) remains the bedrock of Prosperity Bancshares' revenue. This is the difference between the interest earned on its earning assets-like the loan book and the investment securities portfolio-and the interest paid out on its liabilities, primarily customer deposits and borrowings. You saw this strength clearly in the third quarter.

For the three months ended September 30, 2025, Prosperity Bancshares reported Net Interest Income of $273.44 million. That's a solid figure, especially when you consider the context of the nine-month performance. For the nine months ended September 30, 2025, NII reached $806.54 million. Management has been vocal about the tailwinds here, noting that a securities book yielding just over 2% and repricing fixed loans should keep NII strong for the next few years, even with potential rate changes.

The second major component is Noninterest Income, which is everything else-the service charges and fees. For Q3 2025, this total was reported at $41.2 million. Honestly, this stream is smaller, making up a smaller portion of the total revenue compared to NII, but it's important for diversification and fee-based revenue stability.

Here's a look at the key revenue figures for Q3 2025, based on the latest available data:

Revenue Component	Q3 2025 Amount (Millions USD)	Nine Months Ended Sep 30, 2025 Amount (Millions USD)
Net Interest Income (NII)	$273.44	$806.54
Total Noninterest Income	$41.2	Not explicitly provided in the same format
Total Revenue (ex-gains)	$314.7	Not explicitly provided in the same format

Digging into that Noninterest Income, we can see some of the specific fee-related numbers reported for Q3 2025, though the exact split for wealth management versus loan fees isn't fully itemized in the top-line reports. You can see the service charge components:

• Service Charges on Deposits Income: $7.32 million
• Other Service Charge Income: $28.13 million
• Other Non-Interest Income: $931 thousand (or $0.931 million)

The category of Other Service Charge Income, at $28.13 million, is where you'd expect to find the bulk of your wealth management, trust service fees, and loan origination/servicing fees bundled together. Management did update their fee income run-rate guidance in Q2 2025 to a range of $38-$40 million, which aligns closely with the reported Q3 total of $41.2 million, suggesting these fee-based activities are a consistent, albeit smaller, part of the overall picture.

To be fair, the reliance on NII is significant; for the last five years, NII made up about 86.8% of the company's total revenue. That's a key structural point for any valuation model you're building.

Finance: draft the Q4 2025 revenue projection by incorporating the expected Q4 noninterest expense range of $141-$143 million against the TTM revenue of $1.760B as of September 30, 2025.