Key Takeaways PB posted Q2 EPS of $1.42, which beat estimates and rose from $1.22 a year ago.Higher NII and lower non-interest expenses supported earnings despite a revenue miss.Total loans rose 1% but deposits fell 2%. Non-performing assets increased year over year.Prosperity Bancshares Inc.’s (PB) second-quarter 2025 adjusted earnings per share (EPS) of $1.42 beat the Zacks Consensus Estimate of $1.40. Moreover, the bottom line compared favorably with adjusted EPS of $1.22 in the prior-year quarter.Result ...

Prosperity Bancshares (PB) Q2 2025 Earnings Call July 23, 2025 11:30 AM ET Company ParticipantsCharlotte Rasche - EVP - General CounselDavid Zalman - Senior Chairman & CEOAsylbek Osmonov - CFOTim Timanus - ChairmanMichael Rose - Managing DirectorKevin Hanigan - President, COO & DirectorCatherine Mealor - Managing DirectorManan Gosalia - Head - U.S. Midcaps Banks ResearchEric Dray - Equity Research AssociateJon Arfstrom - MD & Associate Director - US ResearchConference Call ParticipantsPeter Winter - MD & Se ...

Financial Data and Key Metrics Changes - Net income for the three months ending June 30, 2025, was $135 million, an increase of $23 million or 21% compared to $111 million for the same period in 2024 [6][7] - Net income per diluted common share increased to $1.42 for the three months ending June 30, 2025, from $1.17 for the same period in 2024, reflecting a 21% increase [6] - Annualized return on average assets was 1.41% and return on average tangible common equity was 13.44% for the quarter ending June 30, 2025, compared to 1.17% and 12.34% respectively for the same period in 2024 [8] - Net interest margin on a tax-equivalent basis was 3.18% for the three months ending June 30, 2025, up from 2.94% for the same period in 2024 [8][15] Business Line Data and Key Metrics Changes - Loans totaled $22.1 billion at June 30, 2025, a decrease of $123 million compared to $22.3 billion at June 30, 2024 [9] - Core commercial loans, excluding mortgage warehouse loans, increased by $73 million or 2.4% annualized [9] - Deposits were $27.4 billion at June 30, 2025, a decrease of $459 million or 1.6% compared to $27.9 billion at June 30, 2024 [9][10] Market Data and Key Metrics Changes - Non-performing assets totaled $110 million or 33 basis points of quarterly average interest-earning assets at June 30, 2025, compared to $89 million or 25 basis points at June 30, 2024 [10] - The allowance for credit losses on loans was 3.47 times the amount of non-performing assets at June 30, 2025 [11] Company Strategy and Development Direction - The company entered into a definitive agreement to merge with American Bank Holding Company, which is expected to strengthen its presence in South Texas and enhance operations in Central Texas, including San Antonio [5][6] - The company aims to continue growing both organically and through mergers and acquisitions, focusing on building core customer relationships and maintaining sound asset quality [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth in the second half of the year, citing consistently higher monthly new production numbers in the second quarter [9] - The company anticipates continued positive tailwinds for net interest margin and net interest income, despite some challenges in deposit pricing and competition [8][35] Other Important Information - Non-interest income for the three months ended June 30, 2025, was $43 million, compared to $46 million for the same period in 2024 [15] - The efficiency ratio improved to 44.8% for the three months ended June 30, 2025, compared to 51.8% for the same period in 2024 [16] Q&A Session Summary Question: Update on loan growth expectations - Management indicated that loan growth has started off better than prior quarters, with a pipeline looking good and single low single-digit growth for the rest of the year being achievable [24][25] Question: Margin outlook and factors affecting it - Management discussed that net interest margin continues to grow, with expectations of further expansion due to bond portfolio repricing and loan growth [32][34] Question: Insights on the American Bank acquisition - The acquisition is expected to be accretive to net interest income, with a strong deposit base and loan yields higher than the company's current levels [54][56] Question: Concerns about Lone Star portfolio performance - Management noted that the Lone Star portfolio had higher-cost deposits but overall loan quality was good, with expectations of stabilization in loans and deposits [60][64] Question: Future M&A activity - Management confirmed that they remain active in M&A discussions and are open to further acquisitions beyond the American Bank deal [94]

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Financial Highlights - Net income reached $135.2 million, with diluted earnings per share at $1.42 for the three months ended June 30, 2025, marking a 21.1% increase compared to Q2 2024[6] - The company's assets totaled $38.4 billion, with total loans amounting to $22.2 billion and deposits at $27.5 billion as of June 30, 2025[6] - Noninterest-bearing deposits stood at $9.4 billion, representing 34.3% of total deposits[6] - Net interest margin increased by 24 basis points to 3.18% compared to the second quarter of 2024[6] - The allowance for credit losses on loans and off-balance sheet credit exposures was $383.7 million, with the allowance for credit losses on loans to total loans, excluding the Warehouse Purchase Program, at 1.66%[6] Capital and Ratios - The common equity tier 1 ratio was 17.10%, and the leverage ratio was 11.62% as of June 30, 2025[6] - Return on second quarter average assets was 1.41% annualized, and return on average tangible common equity was 13.44% in the second quarter of 2025[6] Strategic Developments - A cash dividend of $0.58 was declared for the third quarter of 2025[6] - The company announced a definitive merger agreement with American Bank Holding Corporation on July 18th, 2025[6] Market Presence - The company has a strong presence in Texas and Oklahoma, operating 283 full-service locations[7, 8] - The company is ranked 2 in deposit market share in Texas[10]

For the quarter ended June 2025, Prosperity Bancshares (PB) reported revenue of $310.7 million, up 1.9% over the same period last year. EPS came in at $1.42, compared to $1.22 in the year-ago quarter. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. The reported revenue represents a surprise of -0.58% over the Zacks Consensus Estimate ...

Prosperity Bancshares (PB) came out with quarterly earnings of $1.42 per share, beating the Zacks Consensus Estimate of $1.4 per share. This compares to earnings of $1.22 per share a year ago. These figures are adjusted for non-recurring items. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track re ...

PRESS RELEASE For more information contact: Exhibit 99.1 ® FOR IMMEDIATE RELEASE Prosperity Bancshares, Inc. Cullen Zalman Prosperity Bank Plaza Executive Vice President – Banking and Corporate Activities 4295 San Felipe 281.269.7199 Houston, Texas 77027 cullen.zalman@prosperitybankusa.com HOUSTON, July 23, 2025. Prosperity Bancshares, Inc. ® (NYSE: PB) ("Prosperity Bancshares"), the parent company of Prosperity Bank ® (collectively, "Prosperity"), reported net income of $135.2 million for the quarter ended ...

In its upcoming report, Prosperity Bancshares (PB) is predicted by Wall Street analysts to post quarterly earnings of $1.40 per share, reflecting an increase of 14.8% compared to the same period last year. Revenues are forecasted to be $312.52 million, representing a year-over-year increase of 2.5%.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Ahead of ...

HOUSTON and CORPUS CHRISTI, Texas, July 18, 2025 /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB) ("Prosperity"), the parent company of Prosperity Bank®, and American Bank Holding Corporation ("American"), the parent holding company of American Bank, N.A. ("American Bank"), headquartered in Corpus Christi, Texas, today jointly announced the signing of a definitive merger agreement whereby Prosperity will acquire American and American Bank. American Bank operates eighteen (18) banking offices and two ...