The reported revenue represents a surprise of +5.08% over the Zacks Consensus Estimate of $290.06 million. With the consensus EPS estimate being $1.20, the EPS surprise was +1.67%. 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. Here is how Prosperity Bancshares performed in the just reported quarter in terms of the metrics most wide ...

This quarterly report represents an earnings surprise of 1.67%. A quarter ago, it was expected that this financial holding company would post earnings of $1.15 per share when it actually produced earnings of $1.18, delivering a surprise of 2.61%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. While Prosperity Bancshares has underperformed the market so far t ...

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 PROSPERITY BANCSHARES, INC. ® REPORTS SECOND QUARTER 2024 EARNINGS Exhibit 99.1 ® FOR IMMEDIATE RELEASE PRESS RELEASE For more information contact: HOUSTON, July 24, 2024. Prosperity Bancshares, Inc. ® (NYSE: PB), the parent company of Prosperity Bank ® (collectively, "Prosperity"), reported net incom ...

Core Viewpoint - Prosperity Bancshares, Inc. reported strong financial results for the second quarter of 2024, driven by the recent merger with Lone Star State Bancshares, Inc. and an increase in net interest income, despite incurring merger-related expenses and provisions for credit losses. Financial Performance - Net income for the second quarter of 2024 was $111.6 million, up from $86.9 million in the same period of 2023, with diluted earnings per share increasing to $1.17 from $0.94 [1][2] - Excluding merger-related provisions and expenses, net income was $116.6 million, or $1.22 per diluted share [1][2] - Net interest income before provision for credit losses was $258.8 million, an increase of $20.5 million or 8.6% from the previous quarter [1][2] - The net interest margin increased to 2.94% from 2.79% in the previous quarter and 2.73% in the same period last year [1][2] Loan and Deposit Growth - Total loans increased by $1.06 billion, or 5.0%, during the second quarter of 2024, with loans excluding Warehouse Purchase Program loans rising by $839.1 million, or 4.1% [1][2] - Total deposits increased by $757.6 million, or 2.8%, with noninterest-bearing deposits comprising 34.7% of total deposits [1][2] Asset Quality - The allowance for credit losses on loans was $397.5 million, representing 1.69% of total loans, with nonperforming assets remaining low at 0.25% of average interest-earning assets [1][3] - Net charge-offs for the first half of 2024 were $6.5 million, down from $15.5 million in the same period of 2023 [5] Merger Impact - The merger with Lone Star State Bancshares was completed on April 1, 2024, resulting in the issuance of 2,376,182 shares of Prosperity common stock and approximately $64.1 million in cash [1][8] - Goodwill from the merger was recorded at $107.7 million, with core deposit intangibles recognized at $17.7 million as of June 30, 2024 [1][8] Shareholder Returns - The company returned $284.6 million to shareholders over the past twelve months, including $74.8 million through share repurchases and $209.8 million through cash dividends [1][2] - A cash dividend of $0.56 per share was declared for the third quarter of 2024, payable on October 1, 2024 [7] Market Position - Prosperity Bancshares operates 288 full-service banking locations across Texas and Oklahoma, focusing on community banking and providing a range of financial services [10]

Core Insights - Prosperity Bancshares (PB) has consistently beaten earnings estimates, with an average surprise of 1.73% over the last two quarters [1][2] - The company reported earnings of $1.18 per share for the most recent quarter, exceeding the expected $1.15, resulting in a surprise of 2.61% [2] - The previous quarter also saw a positive surprise, with actual earnings of $1.19 per share against an estimate of $1.18, yielding a surprise of 0.85% [2] Earnings Expectations - The Zacks Earnings ESP for Prosperity Bancshares is currently +1.04%, indicating a bullish sentiment among analysts regarding the company's earnings prospects [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong likelihood of another earnings beat in the upcoming report [7][8] - The next earnings report for Prosperity Bancshares is anticipated to be released on July 24, 2024 [8] Market Analysis - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of beating consensus estimates [3] - The Earnings ESP metric is crucial for investors to assess the likelihood of a company beating earnings estimates prior to quarterly releases [10]

HOUSTON, July 17, 2024 /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB) today announced that its Board of Directors declared a quarterly common stock dividend of $0.56 per share for the third quarter of 2024, payable October 1, 2024, to shareholders of record as of September 13, 2024. Prosperity Bancshares, Inc.® As of March 31, 2024, Prosperity Bancshares, Inc.® is a $38.757 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consume ...

Core Viewpoint - The upcoming earnings report for Prosperity Bancshares, scheduled for July 24, 2024, is critical for stock movement, with expectations of revenue growth and potential earnings surprises influencing investor sentiment [1][9]. Financial Estimates - Revenues for Prosperity Bancshares are projected at $290.55 million, reflecting a year-over-year increase of 5.2% [2]. - The consensus EPS estimate for the quarter has been revised down by 0.45% over the last 30 days, indicating a reassessment by analysts [2]. - The expected quarterly earnings per share (EPS) is $1.20, representing a year-over-year decline of 0.8% [11]. Earnings Surprise Potential - The Zacks Earnings ESP for Prosperity Bancshares is +0.56%, suggesting a likelihood of beating the consensus EPS estimate [15][16]. - Historically, the company has beaten consensus EPS estimates in the last four quarters, indicating a strong track record of positive surprises [18]. Analyst Sentiment - The Zacks Rank for Prosperity Bancshares is currently 3 (Hold), which may influence the stock's performance [5]. - Analysts have recently become more optimistic about the company's earnings prospects, as indicated by the positive Earnings ESP [15]. Industry Context - In comparison, Banc of California is expected to report a significant year-over-year decline in earnings of 40.6%, with revenues projected at $271.42 million, up 258.7% from the previous year [20].

Core Viewpoint - Prosperity Bancshares is focused on organic growth despite recent revenue dips, with a compound annual growth rate (CAGR) of 7.9% over the past four years driven by loan balances, strategic acquisitions, and modest fee income growth [1][5]. Group 1: Financial Performance - The company's net revenues decreased in 2023 and the first quarter of 2024, but it has a strong growth trajectory due to solid loan balances and strategic acquisitions [1][5]. - The net interest margin (NIM) contracted to 2.78% in 2023 from 3% in 2022, with expectations of marginal improvement to 2.92% in 2024 amid rising funding costs [7]. - Shares of Prosperity Bancshares have declined by 10.5% over the past six months, compared to a 2.4% decline in the industry [8]. Group 2: Strategic Acquisitions - The company has completed over 30 acquisitions since 1998, including recent purchases of Lone Star State Bancshares and First Bancshares of Texas, which are expected to be accretive to earnings [6]. - Acquisitions have significantly contributed to revenue growth, allowing the company to expand its operations and enter new markets [6]. Group 3: Market Position and Outlook - As of March 31, 2024, approximately 35.1% of total deposits were non-interest-bearing, indicating an improved deposit mix [10]. - The company anticipates total revenues to grow at a CAGR of 9.2% by 2026, with total loans projected to rise by 3.5% in 2024 [10]. - The mortgage banking business remains a concern due to subdued origination volumes and refinancing activities, although mortgage income is expected to rise by 34.2% to $3.1 million this year [12].

Core Viewpoint - Prosperity Bancshares is positioned as a compelling investment opportunity due to its solid earnings growth and attractive dividend yield, despite a recent decline in stock price [2][8]. Earnings Growth - The Zacks Consensus Estimate for Prosperity Bancshares for 2024 is $5 per share, indicating a year-over-year earnings growth rate of 0.60% [2]. Dividend Information - The current annualized dividend is $2.24, reflecting a 1.4% increase from the previous year. Over the past five years, the company has raised its dividend five times, averaging an annual increase of 6.44% [4]. - The payout ratio stands at 47%, meaning the company distributes 47% of its trailing 12-month earnings per share as dividends [4]. - The current dividend yield is 3.9%, significantly higher than the Banks - Southwest industry's yield of 0.75% and the S&P 500's yield of 1.59% [7]. Stock Performance - Prosperity Bancshares shares have experienced a price change of -15.1% this year [7]. Investment Appeal - The company is considered a strong dividend play, appealing to income investors, especially in a market where high-yielding stocks may face challenges during rising interest rates [8].

Prosperity Bancshares (NYSE:PB) is a Houston-based bank and was founded in 1983. Of the many small- to medium-sized banks that I deal with, I think this one is among the most attractive in terms of dividend. It has been growing its dividend for 20 years in a row, and the average cost of deposits is very low compared to that paid by peers. Since my last article, the net interest margin is finally recovering, and in the coming months the buyback may continue. The only negative note is the low growth in the lo ...