Prosperity Bancshares, Inc. 401(k) Review & Grade
Prosperity Bancshares, Inc. 401(k) Profit Sharing Plan
Houston, TXFinance & Insurance3,754 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$1,847Employer $ per active participant
$4,560Employee $ saved per active participant
0.09%Direct admin cost, % of plan assets
$357.8MNet plan assets, end of year
$110,509Average balance per account
Score breakdown
- Employer generosity5.8 / 5012th percentile for employer $ per participant
- Low cost15.5 / 2562th percentile for low admin cost vs. same-size plans
- Employee saving1.1 / 158th percentile for employee $ per participant
- Plan features3 / 10Default investment
- Red-flag deductions-8 pts2 issues reported on the filing
Total score17 / 100 · Grade F
This plan vs. peers
Peers: Finance & Insurance plans with 2,500–9,999 active participants (199 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 12th |
| Lower admin cost | 62th |
| Employee saving | 8th |
| Peers that auto-enroll | 66% |
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Red flags from the filing
No fidelity bond: the plan reported it was not covered by a fidelity bond, which protects participants against theft.
Corrective distributions: the plan refunded $395,162 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Prosperity Bancshares put in about $1,847 per active participant, below the typical peer ($4,489). Any match is still an instant return, so contribute enough to get all of it.
- The filing shows total dollars, not the match formula. Ask HR for the Summary Plan Description so you know the exact match and vesting schedule.
- Fund expense ratios aren't in the filing. Look them up in your 404(a)(5) fee disclosure and favor low-cost index or target-date funds.
- Changing jobs? You can usually leave the money in the plan, move it to your new employer's plan, or roll it into an IRA. Don't cash out: you'd owe taxes and possibly a 10% penalty.
The raw numbers from the filing
| Employer contributions | $6,933,405 |
| Participant (employee) contributions | $17,114,834 |
| Other contributions (incl. rollovers in) | $2,075,418 |
| Administrative expenses paid from the plan | $290,851 |
| Investment advisory & management fees | $70,000 |
| Benefits paid out | $42,394,718 |
| Net assets, start / end of year | $323.7M / $357.8M |
| Active participants, start / end of year | 3,623 / 3,884 |
| Participants with account balances | 3,238 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | Melton & Melton |
| Employer stock held by plan | $40,006,459 |
Largest service providers (Schedule C)
| Fidelity Investments Institutional | $198,123 reported compensation |
| NFP Retirement Inc | $70,000 reported compensation |
| Melton and Melton L.L.P | $22,500 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20250625154413NAL0011468144001, received 2025-06-25, EIN 74-2331986, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.