# Prosperity Bancshares: AI strategy

Source: https://www.bankingnewsai.com/banks/prosperity
Last updated: Oct 13, 2026

*A serial Texas acquirer that spent 2026 on a real-time core conversion and three bank integrations, and has said nothing public about AI beyond the slogan 'real bankers, real-time banking'.*

## How is Prosperity using AI?

Prosperity Bancshares, the Houston-based parent of Prosperity Bank with about $44 billion of lead-bank assets at 31 March 2026 and roughly $54 billion after absorbing Stellar Bancorp on 1 July, is the second-largest Texas-headquartered bank and one of the thinnest AI records among the 100 largest US banks. Its 2026 has been about plumbing and acquisitions rather than models: it completed the American Bank Holding merger on 1 January, the Southwest Bancshares (Texas Partners Bank) merger on 1 February, a conversion to a real-time core processing system on 17 February, and the $2 billion Stellar merger on 1 July; it had completed 31 deals since 2000 when Stellar was announced. The core conversion is the one technology event the bank has described publicly, in a customer letter that promises 'smarter banking powered by real bankers, in real-time' and says the upgrade 'set[s] the stage for even greater innovation in the future'; no AI, automation or data programme has been named, and the second-quarter 2026 investor presentation contains no technology section. Management's public attention is on Texas loan competition: in July 2026 senior chairman and CEO David Zalman and president Kevin Hanigan told analysts they had walked away from loans, including a $20 million loan to a 'grade-A' borrower after a competitor offered a 25-year deal fixed at 5.5% for the first seven years, and Hanigan said some offers were 'getting to the point of being ridiculous', and loans fell 1% in the quarter. First-quarter 2026 net income was $116.3 million. Prosperity Bank is a Texas state nonmember bank supervised by the FDIC, so any future AI in credit or servicing will sit under FDIC and CFPB expectations and the Federal Reserve's holding-company model-risk guidance.

*Thin public record: No AI remarks on its last four earnings calls (Q3 2025 to Q2 2026), an AI passage in its 10-K that is a generic risk factor, no named AI or data leader, no AI vendor deal and no open AI roles on its careers site.*

## At a glance

| Field | Value |
| --- | --- |
| Lead bank | Prosperity Bank |
| Ticker | PB |
| Headquarters | Houston, TX |
| Consolidated assets | $43,875 million |
| Federal Reserve rank | 50 |
| Charter | Texas state nonmember bank (FDIC) |

## What AI partnerships and patents does Prosperity Bancshares have?

Little is public. The one named vendor with an AI roadmap is Akuvo, whose collections platform Prosperity chose in January 2025; Akuvo's agentic virtual collector is the vendor's product and Prosperity has not said it uses it. The February 2026 core ('the DNA product') is named without a vendor in the sources reviewed. No AI lab, hyperscaler, GPU or data-vendor relationship is disclosed, and a Google Patents assignee search for 'Prosperity Bank' returns no US patents or applications. ([Fintech Futures](https://www.fintechfutures.com/partnerships/texas-based-prosperity-bank-streamlines-collections-processes-with-akuvo), [American Banker](https://www.americanbanker.com/news/collections-fintech-akuvo-gets-funding-for-agentic-ai), [Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/prosperity-bancshares-pb-q2-2026-004414452.html), [Google Patents (USPTO)](https://patents.google.com/?assignee=Prosperity+Bank&country=US))

| Item | What it is | Status | Date | Sources |
| --- | --- | --- | --- | --- |
| Akuvo collections platform | Cloud-native collections system for bankruptcy, repossession, disputes and risk analysis | In production | 2025-01-16 | [Fintech Futures](https://www.fintechfutures.com/partnerships/texas-based-prosperity-bank-streamlines-collections-processes-with-akuvo) |
| Akuvo virtual collector with agentic AI | Vendor's text-based collector being extended with agentic AI via Vista Equity's Agentic AI Factory; Prosperity named as an Akuvo customer, not as a user of this tool | Announced (vendor) | 2025-09-18 | [American Banker](https://www.americanbanker.com/news/collections-fintech-akuvo-gets-funding-for-agentic-ai) |
| DNA core platform | Real-time core processing system that replaced the old '5 Star' platform; vendor not named in the sources reviewed | In production | 2026-02-17 | [Prosperity Bank](https://prosperitybankusa.com/system-upgrade), [Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/prosperity-bancshares-pb-q2-2026-004414452.html) |
| US patents and applications | None found for assignee 'Prosperity Bank' (US filter) | None public | 2026-10-14 | [Google Patents (USPTO)](https://patents.google.com/?assignee=Prosperity+Bank&country=US) |

## Flagship platform: Real-time core (converted February 2026)

Prosperity moved to a real-time processing system on 17 February 2026 after a four-day cutover in which online banking, Treasury Center and Zelle were suspended; the customer letter framed it as an investment that 'sets the stage for even greater innovation in the future' and the bank's line is 'real bankers, real-time banking'. The conversion landed between the 1 January 2026 closing of American Bank and the 1 February closing of Southwest Bancshares (Texas Partners Bank), and ahead of the 1 July closing of the $2 billion Stellar Bancorp merger, which took the bank to 363 locations and about $54 billion of assets. No AI tooling, vendor or use case has been disclosed. ([Prosperity Bank](https://prosperitybankusa.com/system-upgrade), [Prosperity Bank](https://www.prosperitybankusa.com/wp-content/uploads/2026/02/DNA-Core-Upgrade-4-page-letter.pdf), [Prosperity Bancshares](https://prosperitybankusa.com/wp-content/uploads/2026/06/Earnings-Release_Q1-2026_2.pdf), [Prosperity Bancshares](https://prosperitybankusa.com/wp-content/uploads/2026/07/IP-2Q26-Final_51ca22.pdf), [American Banker](https://www.americanbanker.com/news/prosperity-to-acquire-rival-houston-bank-in-2-billion-deal), [Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/prosperity-bancshares-pb-q2-2026-004414452.html))

## Key points

- Only disclosed technology event: a real-time core processing conversion on 17 February 2026, with a four-day outage of online banking, Treasury Center and Zelle.
- Three integrations in seven months: American Bank (1 January 2026), Texas Partners Bank (1 February) and Stellar Bancorp for $2 billion (1 July), taking the bank to 363 locations.
- No AI, automation, data or vendor programme has been named in releases, investor decks or on calls; the bank's line is 'real bankers, real-time banking'.
- Management's stated problem is loan pricing, not technology: loans down 1% in Q2 2026 as competitors offer 'ridiculous' structures.
- Scale after Stellar: about $54 billion of assets, number-five deposit share in Houston, number one in Beaumont.
- Financials: Q1 2026 net income $116.3 million; nonperforming assets 0.33% of average earning assets.
- The only AI text in its filings is generic risk language: since the 10-K for 2024 (filed 27 February 2025) the bank and its third- or fourth-party vendors 'may use' AI and machine learning, with flawed or biased data and opaque models named as risks; the same phrase sits in the forward-looking statements of the 10-Qs from Q3 2025 to Q2 2026.
- On the Q2 2026 call the CEO credited the move from its old 5 Star platform to 'the DNA product' with making the three 2026 deals possible; system conversions for the acquired banks run into March 2027.
- The CIO is Gisela Riggan, EVP and Chief Information Officer, who won the Enterprise ORBIE at the 2025 HoustonCIO awards and was a 2026 National ORBIE finalist; per the 2025 10-K she reports to the Director of Corporate Strategy, not the CEO or COO.
- Technology spend is large for a bank this lean: on the Q1 2026 call Zalman put it at $75 million to $90 million a year plus about $2 million a month of equipment and technology purchases, and said the new core cut the post-weekend back-office update to about 1.5 hours.
- The one named vendor with an AI product is Akuvo, whose cloud-native collections platform Prosperity chose in January 2025; Akuvo's agentic 'virtual collector' is a vendor feature and Prosperity has not said it uses it.
- Oversight is by a board Strategic Technology Oversight Committee (STOC), to which the CIO and the CISO report quarterly; the CISO reports to the Chief Risk Officer. The 10-K names AI as a cyber-threat accelerant as well as a possible business tool.
- Four consecutive earnings calls (Q3 2025 to Q2 2026) and the Q2 2025 call contain no reference to AI; management's only technology message is cost and scale, with 'higher technology and staffing costs' cited as a driver of bank consolidation.

## Timeline

- Aug 6, 2026 — **Q2 2026 10-Q repeats the AI risk bullet** Total assets $43.87 billion at 30 June 2026 before Stellar; AI appears only in the forward-looking-statements list. ([Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312526338254/pb-20260630.htm))
- Jul 29, 2026 — **Q2 call: Stellar savings of $80-85 million wait for a March 2027 conversion** Efficiency ratio 45.99% against 59.2% in Q1; Stellar pre-tax savings of $80 million to $85 million are tied to the system conversion. ([Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/prosperity-bancshares-pb-q2-2026-004414452.html))
- Jul 29, 2026 — **Loan growth blamed on rivals' pricing** Loans down 1% in Q2; a $20 million loan passed up after a rival offered 5.5% fixed for the first seven years. ([American Banker](https://www.americanbanker.com/news/prosperity-blames-loan-growth-woes-on-newcomers-pricing))
- Jul 29, 2026 — **Q2 call: technology spend made three deals possible; conversions into 2027** Operational integrations: American Bank in September and Texas Partners Bank in November 2026, Stellar Bank in March 2027; $20–25 million of further pre-tax savings expected from the first two. ([Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/prosperity-bancshares-pb-q2-2026-004414452.html))
- Jul 1, 2026 — **Stellar merger completed** 363 locations; 52 doing business as Stellar Bank. ([Prosperity Bancshares](https://prosperitybankusa.com/wp-content/uploads/2026/07/IP-2Q26-Final_51ca22.pdf))
- May 11, 2026 — **Q1 2026 10-Q keeps the AI risk bullet** Forward-looking statements still list risks from new technologies including AI and machine learning; no AI programme is described. ([Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312526215187/pb-20260331.htm))
- Apr 29, 2026 — **Q1 call: core cut update time to about 1.5 hours; technology spend $75-90 million a year** Zalman says the DNA conversion shrank the post-weekend account update to about 1.5 hours and that annual technology spend is $75 million to $90 million, plus about $2 million a month of equipment. ([Earnings call transcript (The Motley Fool)](https://www.fool.com/earnings/call-transcripts/2026/04/29/prosperity-pb-q1-2026-earnings-transcript))
- Apr 29, 2026 — **First-quarter 2026 results** Net income $116.3 million; core conversion completed; Stellar approvals received. ([Prosperity Bancshares](https://prosperitybankusa.com/wp-content/uploads/2026/06/Earnings-Release_Q1-2026_2.pdf))
- Feb 26, 2026 — **2025 10-K carries an AI and machine-learning risk factor** The bank and its vendors 'may use' AI to improve service and automate certain business decisions or risk management; flawed or biased datasets, opaque models and evolving AI law are the risks named. ([Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm))
- Feb 17, 2026 — **CIO named a 2026 National ORBIE finalist** Gisela Riggan, EVP and CIO of Prosperity Bank, appears among the national finalists. ([GlobeNewswire](https://www.globenewswire.com/news-release/2026/02/17/3239757/0/en/Finalists-Named-for-the-2026-National-ORBIE-Awards.html))
- Feb 17, 2026 — **Real-time processing system goes live** Online banking, Treasury Center and Zelle offline from 13 to 17 February; the Q1 release confirms the core conversion was completed in February. ([Prosperity Bank](https://prosperitybankusa.com/system-upgrade), [Prosperity Bancshares](https://prosperitybankusa.com/wp-content/uploads/2026/06/Earnings-Release_Q1-2026_2.pdf))
- Feb 1, 2026 — **Southwest Bancshares merger completed** Second of three Texas deals closes. ([American Banker](https://www.americanbanker.com/list/prosperity-completes-2nd-of-3-texas-m-a-deals), [Prosperity Bancshares](https://prosperitybankusa.com/wp-content/uploads/2026/06/Earnings-Release_Q1-2026_2.pdf))
- Jan 28, 2026 — **Q4 2025 call: system conversions underpin Stellar savings** CFO Asylbek Osmonov says the 35% cost-saving assumption for Stellar leans on the system conversion; no AI remark. ([Earnings call transcript (The Motley Fool)](https://www.fool.com/earnings/call-transcripts/2026/01/28/prosperity-bancshares-pb-earnings-transcript))
- Jan 28, 2026 — **$2 billion Stellar Bancorp merger announced** Would create the second-biggest Texas-headquartered bank; Prosperity had completed 31 deals since 2000. ([American Banker](https://www.americanbanker.com/news/prosperity-to-acquire-rival-houston-bank-in-2-billion-deal))
- Jan 9, 2026 — **Customers told of the real-time core upgrade** Letter promises faster service and 'greater innovation in the future'. ([Prosperity Bank](https://www.prosperitybankusa.com/wp-content/uploads/2026/02/DNA-Core-Upgrade-4-page-letter.pdf))
- Nov 7, 2025 — **Q3 2025 10-Q adds an AI risk bullet to forward-looking statements** The 10-Q lists 'risks related to the use of new technologies, including artificial intelligence and machine learning'; the Q1 and Q2 2026 10-Qs repeat it. ([Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312525270362/pb-20250930.htm))
- Oct 29, 2025 — **Q3 2025 call: no AI remark; technology costs again cited as a consolidation driver** Zalman repeats that higher technology and staffing costs point to continued consolidation. ([Earnings call transcript (The Motley Fool)](https://www.fool.com/earnings/call-transcripts/2025/10/29/prosperity-pb-q3-2025-earnings-call-transcript))
- Oct 2, 2025 — **Texas Partners Bank acquisition announced** All-stock deal for Southwest Bancshares valued at $268.9 million. ([Banking Dive](https://www.bankingdive.com/news/prosperity-bank-texas-partners-deal-269m-acquisition/801813/))
- Sep 18, 2025 — **Akuvo takes Vista Equity investment to build agentic AI** American Banker lists Prosperity Bank among Akuvo's more than 150 financial-institution customers; the agentic roadmap is Akuvo's and Prosperity is not described as a party to it. ([American Banker](https://www.americanbanker.com/news/collections-fintech-akuvo-gets-funding-for-agentic-ai))
- Jul 23, 2025 — **Q2 2025 call: technology costs cited as a consolidation driver** Zalman says higher technology and staffing costs point to continued bank consolidation and that the bank is investing in 'ever-changing technology and product distribution channels'; no AI remark. ([Earnings call transcript (The Motley Fool)](https://www.fool.com/earnings/call-transcripts/2025/07/23/prosperity-pb-q2-2025-earnings-call-transcript))
- Apr 25, 2025 — **CIO Gisela Riggan wins Enterprise ORBIE** HoustonCIO named the Prosperity Bank EVP and CIO winner in the over-$800 million revenue category. ([GlobeNewswire](https://www.globenewswire.com/news-release/2025/04/25/3068543/0/en/Top-Technology-Executives-Recognized-at-the-2025-HoustonCIO-ORBIE-Awards.html))
- Feb 27, 2025 — **First AI risk factor in the 10-K for 2024** The 2024 annual report says the bank and its vendors may use AI and machine learning to improve service and automate certain decisions; the 10-K for 2023 had no such language. ([Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000095017025029222/pb-20241231.htm))
- Jan 16, 2025 — **Collections platform chosen: Akuvo** Prosperity Bank, then 285 branches and about $40 billion of assets, deployed Akuvo's cloud-native collections platform covering bankruptcy, repossession, disputes and risk analysis; Akuvo separately sells a virtual collector, whose use by Prosperity is not stated. ([Fintech Futures](https://www.fintechfutures.com/partnerships/texas-based-prosperity-bank-streamlines-collections-processes-with-akuvo))

## Where AI runs

| Use case | What | Status | Detail | Sources |
| --- | --- | --- | --- | --- |
| [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general) | Real-time core platform | In production | New processing system as the stated base for future innovation; no AI use disclosed. | [Prosperity Bank](https://prosperitybankusa.com/system-upgrade), [Prosperity Bank](https://www.prosperitybankusa.com/wp-content/uploads/2026/02/DNA-Core-Upgrade-4-page-letter.pdf) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Acquisition systems integration | Rolling out | Operational integrations of American Bank (September 2026) and Texas Partners Bank (November 2026); Stellar Bank's does not happen until March 2027. | [Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/prosperity-bancshares-pb-q2-2026-004414452.html) |
| [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk) | AI risk-factor disclosure | Announced | Generic 10-K risk factor covering the bank's and its vendors' possible use of AI and machine learning, biased data, opaque models and evolving AI regulation. | [Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Akuvo collections platform | In production | Cloud-native collections system covering bankruptcy, repossession, disputes and risk analysis, chosen in January 2025; Akuvo lists Prosperity among its customers. | [Fintech Futures](https://www.fintechfutures.com/partnerships/texas-based-prosperity-bank-streamlines-collections-processes-with-akuvo), [American Banker](https://www.americanbanker.com/news/collections-fintech-akuvo-gets-funding-for-agentic-ai) |
| [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai) | Akuvo agentic virtual collector (vendor roadmap) | Announced | Akuvo is building agentic AI into the text-based virtual collector with Vista Equity's Agentic AI Factory; Prosperity is a customer of Akuvo but has not said it uses the virtual collector. | [American Banker](https://www.americanbanker.com/news/collections-fintech-akuvo-gets-funding-for-agentic-ai), [Fintech Futures](https://www.fintechfutures.com/partnerships/texas-based-prosperity-bank-streamlines-collections-processes-with-akuvo) |
| [Cybersecurity](https://www.bankingnewsai.com/ai-regulation/by-use-case#cybersecurity) | Board-level technology and cyber oversight | In production | The Strategic Technology Oversight Committee of the board receives quarterly reports from the CIO and CISO; the programme follows the NIST Cybersecurity Framework and the 10-K names AI as a way attackers could defeat existing protections. | [Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm) |
| [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general) | Technology budget as scale argument | In production | Management cites $75 million to $90 million of annual technology spend and higher technology and staffing costs as reasons for acquisitions; the spend is described as platform and equipment, not AI. | [Earnings call transcript (The Motley Fool)](https://www.fool.com/earnings/call-transcripts/2026/04/29/prosperity-pb-q1-2026-earnings-transcript), [Earnings call transcript (The Motley Fool)](https://www.fool.com/earnings/call-transcripts/2025/10/29/prosperity-pb-q3-2025-earnings-call-transcript) |
| [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk) | AI risk language in quarterly filings | Announced | Each 10-Q from Q3 2025 to Q2 2026 lists risks from new technologies including AI and machine learning among forward-looking-statement risks; no model inventory or AI governance body is described. | [Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312525270362/pb-20250930.htm), [Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312526215187/pb-20260331.htm), [Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312526338254/pb-20260630.htm) |

## Disclosed numbers

| Measure | Value | As of | Sources |
| --- | --- | --- | --- |
| First-quarter 2026 net income | $116.3 million | Apr 29, 2026 | [Prosperity Bancshares](https://prosperitybankusa.com/wp-content/uploads/2026/06/Earnings-Release_Q1-2026_2.pdf) |
| Stellar Bancorp merger | $2 billion; ≈ $54 billion combined assets | Jan 28, 2026 | [American Banker](https://www.americanbanker.com/news/prosperity-to-acquire-rival-houston-bank-in-2-billion-deal) |
| Locations after Stellar | 363 | Jul 28, 2026 | [Prosperity Bancshares](https://prosperitybankusa.com/wp-content/uploads/2026/07/IP-2Q26-Final_51ca22.pdf) |
| Deals since 2000 | 31 | Jan 28, 2026 | [American Banker](https://www.americanbanker.com/news/prosperity-to-acquire-rival-houston-bank-in-2-billion-deal) |
| Further pre-tax cost savings expected after the American and Texas Partners conversions | $20–25 million | Jul 29, 2026 | [Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/prosperity-bancshares-pb-q2-2026-004414452.html) |
| Loan change, Q2 2026 linked quarter | −1% | Jul 29, 2026 | [American Banker](https://www.americanbanker.com/news/prosperity-blames-loan-growth-woes-on-newcomers-pricing) |
| Annual technology spend (CEO estimate, excluding about $2 million a month of equipment and technology purchases) | $75-90 million | Apr 29, 2026 | [Earnings call transcript (The Motley Fool)](https://www.fool.com/earnings/call-transcripts/2026/04/29/prosperity-pb-q1-2026-earnings-transcript) |
| Post-weekend account update time after core conversion | ≈ 1.5 hours | Apr 29, 2026 | [Earnings call transcript (The Motley Fool)](https://www.fool.com/earnings/call-transcripts/2026/04/29/prosperity-pb-q1-2026-earnings-transcript) |
| Stellar projected pre-tax cost savings, tied to March 2027 conversion | $80-85 million | Jul 29, 2026 | [Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/prosperity-bancshares-pb-q2-2026-004414452.html) |
| Efficiency ratio, Q2 2026 (Q1: 59.2%) | 45.99% | Jul 29, 2026 | [Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/prosperity-bancshares-pb-q2-2026-004414452.html) |
| Full-time-equivalent associates | 3,941 | Dec 31, 2025 | [Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm) |
| Credit and debit card, data processing and software amortization expense, 2025 | $48.6 million (+2.8%) | Dec 31, 2025 | [Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm) |
| Total assets before Stellar | $43.87 billion | Jun 30, 2026 | [Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312526338254/pb-20260630.htm) |

## Quotes

> "A marriage made in heaven." — David Zalman, Senior Chairman and CEO, Jan 28, 2026 ([American Banker](https://www.americanbanker.com/news/prosperity-to-acquire-rival-houston-bank-in-2-billion-deal))

> "Some things out there are getting to the point of being ridiculous." — Kevin Hanigan, President and Chief Operating Officer, Jul 29, 2026 ([American Banker](https://www.americanbanker.com/news/prosperity-blames-loan-growth-woes-on-newcomers-pricing))

> "higher technology and staffing costs, funding costs, loan competition, succession planning concerns, and regulatory burden all point to continued consolidation." — David Zalman, Senior Chairman and CEO, Oct 29, 2025 ([Earnings call transcript (The Motley Fool)](https://www.fool.com/earnings/call-transcripts/2025/10/29/prosperity-pb-q3-2025-earnings-call-transcript))

> "under this new system, we can update everything in about 1.5 hours." — David Zalman, Senior Chairman and CEO, Apr 29, 2026 ([Earnings call transcript (The Motley Fool)](https://www.fool.com/earnings/call-transcripts/2026/04/29/prosperity-pb-q1-2026-earnings-transcript))

> "scale has just become very, very important." — David Zalman, Senior Chairman and CEO, Apr 29, 2026 ([Earnings call transcript (The Motley Fool)](https://www.fool.com/earnings/call-transcripts/2026/04/29/prosperity-pb-q1-2026-earnings-transcript))

> "investing in ever-changing technology and product distribution channels." — David Zalman, Senior Chairman and CEO, Jul 29, 2026 ([Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/prosperity-bancshares-pb-q2-2026-004414452.html))

> "If we would not have done that and spent all that money and time there is no way that we could have done these three deals that we are doing right now." — David Zalman, Senior Chairman and CEO, Jul 29, 2026 ([Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/prosperity-bancshares-pb-q2-2026-004414452.html))

## Who runs AI

- **David Zalman** — Senior Chairman and CEO ([American Banker](https://www.americanbanker.com/news/prosperity-to-acquire-rival-houston-bank-in-2-billion-deal), [American Banker](https://www.americanbanker.com/news/prosperity-blames-loan-growth-woes-on-newcomers-pricing))
- **Kevin Hanigan** — President and Chief Operating Officer ([American Banker](https://www.americanbanker.com/news/prosperity-blames-loan-growth-woes-on-newcomers-pricing))
- **H.E. 'Tim' Timanus Jr.** — Chairman ([American Banker](https://www.americanbanker.com/news/prosperity-blames-loan-growth-woes-on-newcomers-pricing))
- **Gisela Riggan** — EVP and Chief Information Officer; owns the technology programme, no AI title ([Prosperity Bank](https://www.prosperitybankusa.com/management-committee/), [Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm), [GlobeNewswire](https://www.globenewswire.com/news-release/2025/04/25/3068543/0/en/Top-Technology-Executives-Recognized-at-the-2025-HoustonCIO-ORBIE-Awards.html), [GlobeNewswire](https://www.globenewswire.com/news-release/2026/02/17/3239757/0/en/Finalists-Named-for-the-2026-National-ORBIE-Awards.html))
- **Mays Davenport** — Senior EVP and Director of Corporate Strategy; the CIO reports to this role ([Prosperity Bank](https://www.prosperitybankusa.com/management-committee/), [Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm))
- **Jennifer Willcoxon** — EVP and Chief Risk Officer; the CISO reports to her ([Prosperity Bank](https://www.prosperitybankusa.com/management-committee/), [Prosperity Bancshares (SEC filings)](https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm))

## Regulators it answers to

- [FDIC](https://www.bankingnewsai.com/ai-regulation/fdic) — Prosperity Bank is a Texas state nonmember bank; the FDIC is its primary federal supervisor for the core conversion and any future AI in operations. See [FDIC FIL-29-2023](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-29-2023), [FDIC FIL-15-2026](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-15-2026).
- [Federal Reserve](https://www.bankingnewsai.com/ai-regulation/federal-reserve) — Holding-company supervision covers model risk and the integration of three acquired banks. See [SR 11-7](https://www.bankingnewsai.com/ai-regulation/documents/fed-sr-11-7), [SR 23-4](https://www.bankingnewsai.com/ai-regulation/documents/fed-sr-23-4).
- [CFPB](https://www.bankingnewsai.com/ai-regulation/cfpb) — Consumer accounts moved to a new core with new terms and fees; any AI in servicing or lending later falls under UDAAP and ECOA. See [ECOA / Regulation B adverse action (15 U.S.C. 1691(d); 12 CFR 1002.9)](https://www.bankingnewsai.com/ai-regulation/documents/cfpb-ecoa-regulation-b-adverse-action).

## What the record suggests

### The core conversion is the precondition, not the strategy

A real-time core is what lets a bank deploy AI in servicing and fraud; Prosperity has built the base but not said what it will put on it.

### Four integrations in a year crowd out AI work

Converting three acquired banks onto a new platform absorbs the same technology staff an AI programme would need; expect disclosure only after Stellar is fully migrated.

### The competitive problem is pricing, which AI does not fix

Management is losing loans on structure and rate; the AI lever available to a bank this size is underwriting speed and deposit analytics, neither of which it has mentioned.

### An FDIC-supervised bank with no AI record has a clean slate

Any first AI deployment will be judged against the FDIC's third-party and model-risk expectations from the start.

## FAQ

### Who leads AI at Prosperity Bancshares?

No one holds an AI title. Technology sits with Gisela Riggan, EVP and Chief Information Officer, who reports to Mays Davenport, Senior EVP and Director of Corporate Strategy, according to the 2025 10-K. The CISO reports to Chief Risk Officer Jennifer Willcoxon, and both the CIO and CISO report quarterly to the board's Strategic Technology Oversight Committee. CEO David Zalman has made no public AI remarks on the last five earnings calls; the bank has not named a chief data or AI officer.

### Does Prosperity Bank use AI?

Prosperity has not disclosed any AI, automation or data-analytics programme. Its only public technology event is the conversion to a real-time core processing system on 17 February 2026, which it describes as the foundation for future innovation.

### What did Prosperity acquire in 2026?

American Bank Holding Corporation (closed 1 January 2026), Southwest Bancshares, the parent of Texas Partners Bank (closed 1 February 2026), and Stellar Bancorp in a $2 billion cash-and-stock deal announced 28 January and completed 1 July 2026. Prosperity had completed 31 deals since 2000 when the Stellar merger was announced.

### How much does Prosperity Bank spend on technology?

On the Q1 2026 call, 29 April, CEO David Zalman said the bank spends $75 million to $90 million a year on technology, plus about $2 million a month on equipment and technology purchases, and that the February 2026 move to the DNA core cut the post-weekend account update from possibly a full weekend to about 1.5 hours. The 2025 10-K shows credit and debit card, data processing and software amortization of $48.6 million, up 2.8%. None of this is attributed to AI.

### Which technology vendors has Prosperity Bank named?

Few. The bank describes its February 2026 platform as 'the DNA product' without naming the vendor in the sources reviewed. Akuvo's cloud-native collections platform was announced as chosen in January 2025, and American Banker lists Prosperity among Akuvo's customers in September 2025. Akuvo is adding agentic AI to its virtual collector under a Vista Equity investment, but Prosperity has not said it uses that tool. No AI lab, hyperscaler or data vendor is public.

### What does Prosperity's 10-K say about AI?

Only a risk factor. The 2025 annual report, filed 26 February 2026, says the company and its third- or fourth-party vendors may use AI and machine learning to improve customer service and products and to automate certain business decisions or risk management, and that flawed, insufficient or biased data and non-transparent models could lead to inaccurate decisions and regulatory, legal or reputational harm. It names no AI system in use.

## Sources (24)

1. Prosperity to acquire rival Houston bank in $2 billion deal — American Banker, Jan 28, 2026. https://www.americanbanker.com/news/prosperity-to-acquire-rival-houston-bank-in-2-billion-deal
2. Prosperity completes second of three Texas M&A deals — American Banker, Feb 6, 2026. https://www.americanbanker.com/list/prosperity-completes-2nd-of-3-texas-m-a-deals
3. Prosperity blames loan-growth woes on newcomers' pricing — American Banker, Jul 29, 2026. https://www.americanbanker.com/news/prosperity-blames-loan-growth-woes-on-newcomers-pricing
4. Prosperity scoops up another Texas bank for $269M — Banking Dive, Oct 2, 2025. https://www.bankingdive.com/news/prosperity-bank-texas-partners-deal-269m-acquisition/801813/
5. System Upgrade — Prosperity Bank, Feb 17, 2026. https://prosperitybankusa.com/system-upgrade
6. Customer letter: real-time processing system upgrade — Prosperity Bank, Jan 9, 2026. https://www.prosperitybankusa.com/wp-content/uploads/2026/02/DNA-Core-Upgrade-4-page-letter.pdf
7. Prosperity Bancshares, Inc. Reports First Quarter 2026 Earnings — Prosperity Bancshares, Apr 29, 2026. https://prosperitybankusa.com/wp-content/uploads/2026/06/Earnings-Release_Q1-2026_2.pdf
8. Second Quarter 2026 Investor Presentation — Prosperity Bancshares, Jul 28, 2026. https://prosperitybankusa.com/wp-content/uploads/2026/07/IP-2Q26-Final_51ca22.pdf
9. Prosperity Bancshares Annual Report on Form 10-K for the fiscal year ended December 31, 2025 — Prosperity Bancshares (SEC filings), Feb 26, 2026. https://www.sec.gov/Archives/edgar/data/1068851/000119312526077437/pb-20251231.htm
10. Prosperity Bancshares (PB) Q2 2026 Earnings Call — Yahoo Finance, Aug 7, 2026. https://finance.yahoo.com/markets/stocks/articles/prosperity-bancshares-pb-q2-2026-004414452.html
11. Management Committee — Prosperity Bank, Oct 14, 2026. https://www.prosperitybankusa.com/management-committee/
12. Prosperity Bancshares Annual Report on Form 10-K for the fiscal year ended December 31, 2024 — Prosperity Bancshares (SEC filings), Feb 27, 2025. https://www.sec.gov/Archives/edgar/data/1068851/000095017025029222/pb-20241231.htm
13. Prosperity Bancshares Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 — Prosperity Bancshares (SEC filings), Nov 7, 2025. https://www.sec.gov/Archives/edgar/data/1068851/000119312525270362/pb-20250930.htm
14. Prosperity Bancshares Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 — Prosperity Bancshares (SEC filings), May 11, 2026. https://www.sec.gov/Archives/edgar/data/1068851/000119312526215187/pb-20260331.htm
15. Prosperity Bancshares Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 — Prosperity Bancshares (SEC filings), Aug 6, 2026. https://www.sec.gov/Archives/edgar/data/1068851/000119312526338254/pb-20260630.htm
16. Prosperity (PB) Q1 2026 Earnings Transcript — Earnings call transcript (The Motley Fool), Apr 29, 2026. https://www.fool.com/earnings/call-transcripts/2026/04/29/prosperity-pb-q1-2026-earnings-transcript
17. Prosperity Bancshares (PB) Q4 2025 Earnings Transcript — Earnings call transcript (The Motley Fool), Jan 28, 2026. https://www.fool.com/earnings/call-transcripts/2026/01/28/prosperity-bancshares-pb-earnings-transcript
18. Prosperity (PB) Q3 2025 Earnings Call Transcript — Earnings call transcript (The Motley Fool), Oct 29, 2025. https://www.fool.com/earnings/call-transcripts/2025/10/29/prosperity-pb-q3-2025-earnings-call-transcript
19. Prosperity (PB) Q2 2025 Earnings Call Transcript — Earnings call transcript (The Motley Fool), Jul 23, 2025. https://www.fool.com/earnings/call-transcripts/2025/07/23/prosperity-pb-q2-2025-earnings-call-transcript
20. Top Technology Executives Recognized at the 2025 HoustonCIO ORBIE Awards — GlobeNewswire, Apr 25, 2025. https://www.globenewswire.com/news-release/2025/04/25/3068543/0/en/Top-Technology-Executives-Recognized-at-the-2025-HoustonCIO-ORBIE-Awards.html
21. Finalists Named for the 2026 National ORBIE Awards — GlobeNewswire, Feb 17, 2026. https://www.globenewswire.com/news-release/2026/02/17/3239757/0/en/Finalists-Named-for-the-2026-National-ORBIE-Awards.html
22. Texas-based Prosperity Bank streamlines collections processes with Akuvo — Fintech Futures, Jan 16, 2025. https://www.fintechfutures.com/partnerships/texas-based-prosperity-bank-streamlines-collections-processes-with-akuvo
23. Collections fintech Akuvo gets funding for agentic AI — American Banker, Sep 18, 2025. https://www.americanbanker.com/news/collections-fintech-akuvo-gets-funding-for-agentic-ai
24. Google Patents assignee search: Prosperity Bank (US) — Google Patents (USPTO), Oct 14, 2026. https://patents.google.com/?assignee=Prosperity+Bank&country=US

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