PB - Without Some Offense Prosperity Bancshares' Defensive Characteristics Aren't A Big Plus Today

• Prosperity posted lackluster fourth quarter results; pre-provision profits were a bit better than expected, but still down qoq and the near-term organic growth outlook isn't strong.
• This is a bank with an excellent underwriting and expense track record, but the growth engine is fueled by M&A and there have been no deals since 2019.
• Prosperity seems around fair value without any meaningful capital deployment, offering upside to eventual M&A and/or buybacks as excess capital is deployed.

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