Core Viewpoint - Prosperity Bancshares (PB) is expected to report quarterly earnings of $1.40 per share, a 14.8% increase year-over-year, with revenues projected at $312.52 million, reflecting a 2.5% increase compared to the previous year [1] Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating analysts' reassessment of their initial projections [1][2] Key Metrics Projections - Analysts predict the 'Efficiency Ratio' will reach 45.5%, down from 51.8% a year ago [4] - The 'Average balance - Total interest-earning assets' is expected to be $34.23 billion, compared to $35.46 billion last year [4] - 'Total nonperforming assets' are projected at $84.42 million, down from $89.57 million a year ago [4] - 'Total nonperforming loans' are expected to be $75.69 million, compared to $84.50 million in the same quarter last year [5] - The 'Tier 1 Leverage Capital Ratio' is forecasted at 11.3%, up from 10.3% a year ago [5] - The 'Tier 1 Risk-based Capital Ratio' is estimated at 16.8%, compared to 15.4% last year [6] - The 'Total Risk-based Capital Ratio' is expected to be 18.2%, up from 16.7% a year ago [6] Income Projections - 'Total Noninterest Income' is expected to be $39.52 million, down from $46.00 million in the same quarter last year [7] - 'Net Interest Income' is projected at $273.09 million, compared to $258.79 million last year [7] - The 'Net Interest Income (Tax Equivalent Basis)' estimate stands at $274.67 million, up from $259.59 million a year ago [8] - 'Credit card, debit card and ATM card income' is expected to reach $9.17 million, slightly down from $9.38 million last year [8] - 'Nonsufficient funds (NSF) fees' are projected at $9.01 million, compared to $8.15 million in the same quarter last year [9] Stock Performance - Over the past month, Prosperity Bancshares shares have recorded a return of +4.9%, compared to the S&P 500 composite's +5.9% change [9]

Core Viewpoint - Prosperity Bancshares, Inc. has announced a definitive merger agreement to acquire American Bank Holding Corporation, enhancing its presence in South and Central Texas [1][6]. Company Overview - Prosperity Bancshares, Inc. is a regional financial holding company based in Houston, Texas, with total assets of approximately $38.765 billion as of March 31, 2025 [8]. - American Bank Holding Corporation operates 20 banking locations in Texas, with total assets of $2.5 billion, total loans of $1.8 billion, and total deposits of $2.3 billion as of March 31, 2025 [2][11]. Merger Details - Under the merger agreement, Prosperity will issue 4,439,981 shares of its common stock for all outstanding shares of American common stock, valuing the total consideration at approximately $321.5 million based on a closing price of $72.40 on July 16, 2025 [3]. - The merger has been unanimously approved by the Boards of Directors of both companies and is expected to close in the fourth quarter of 2025 or the first quarter of 2026, pending shareholder and regulatory approvals [6]. Leadership Changes - Following the merger, Stephen Raffaele, CEO of American Bank, will join Prosperity Bank as South Texas and San Antonio Area Chairman, while Ben Wallace will become South Texas Senior Chairman [4][5]. Strategic Rationale - The merger is expected to strengthen Prosperity's operations in South Texas and enhance its presence in Central Texas, particularly in the high-growth area of San Antonio [6]. - Both companies emphasize a commitment to relationship banking and excellent customer service, which aligns with their strategic goals [6].

Wall Street expects a year-over-year increase in earnings on higher revenues when Prosperity Bancshares (PB) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 2 ...

Company Overview - Prosperity Bancshares, Inc. is a regional financial holding company based in Houston, Texas, with total assets of $38.765 billion as of March 31, 2025, providing personal banking services and investments to consumers and small to medium-sized businesses in Texas and Oklahoma [2] - Founded in 1983, the company adheres to a community banking philosophy, focusing on customer care and offering a range of financial solutions including traditional deposit and loan products, digital banking, credit and debit cards, mortgage services, retail brokerage, trust and wealth management, and treasury management [3] Operational Footprint - Prosperity operates 283 full-service banking locations across various regions, including 62 in the Houston area, 33 in South Texas, 61 in the Dallas/Fort Worth area, and additional branches in East, Central, and West Texas, as well as in Oklahoma [4] Dividend Announcement - The Board of Directors declared a quarterly common stock dividend of $0.58 per share for the third quarter of 2025, which will be payable on October 1, 2025, to shareholders of record as of September 15, 2025 [1]

Group 1 - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1] - The Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] Group 2 - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow to find those with sustainable growth potential [4] - The Momentum Score assesses stocks based on price trends and earnings outlook changes to identify favorable buying opportunities [5] Group 3 - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Group 4 - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns, while stocks with a 3 (Hold) rank should also have high Style Scores for potential upside [9] - The direction of earnings estimate revisions is crucial when selecting stocks, as stocks with lower ranks but high Style Scores may still face downward price pressure [10] Group 5 - Prosperity Bancshares, Inc. is a financial holding company based in Houston, TX, primarily deriving revenue from its bank subsidiary, Prosperity Bank [11] - Prosperity Bancshares holds a 3 (Hold) Zacks Rank with a VGM Score of B, and a Momentum Style Score of A, with shares increasing by 1.8% over the past four weeks [12] - The earnings estimate for fiscal 2025 has been revised upwards by one analyst, with the Zacks Consensus Estimate increasing by $0.02 to $5.76 per share, and the company has an average earnings surprise of 2.3% [12][13]

Company Overview - Prosperity Bancshares (PB) is headquartered in Houston and operates in the Finance sector [3] - The stock has experienced a price change of -5.61% since the beginning of the year [3] Dividend Information - Prosperity Bancshares currently pays a dividend of $0.58 per share, resulting in a dividend yield of 3.26% [3] - The dividend yield of the Banks - Southwest industry is 1.16%, while the S&P 500's yield is 1.59% [3] - The current annualized dividend of $2.32 represents a 2.7% increase from the previous year [4] - Over the past five years, the company has increased its dividend five times, averaging an annual increase of 4.82% [4] - The payout ratio is currently 44%, indicating that 44% of the trailing 12-month EPS is paid out as dividends [4] Earnings Growth - The Zacks Consensus Estimate for 2025 earnings per share is $5.74, reflecting a year-over-year growth rate of 12.33% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - High-growth firms or tech start-ups typically do not offer dividends, while established companies are often seen as better dividend options [7] - Prosperity Bancshares is considered a compelling investment opportunity due to its strong dividend profile and a Zacks Rank of 3 (Hold) [7]

Financial Performance - For the quarter ended March 31, 2025, net income available to common shareholders was $130.2 million, or $1.37 per diluted common share, compared to $110.4 million, or $1.18 per diluted common share for the same period in 2024, reflecting a 17.4% increase in net income[164]. - Net interest income before the provision for credit losses was $265.4 million for the quarter ended March 31, 2025, an increase of $27.1 million or 11.4% compared to $238.2 million for the same period in 2024[166]. - Noninterest income totaled $41.3 million for the three months ended March 31, 2025, an increase of $2.4 million or 6.3% compared to $38.9 million for the same period in 2024[181]. - Noninterest expense increased by $4.5 million or 3.3% to $140.3 million for the quarter ended March 31, 2025, primarily due to higher salaries and benefits related to the merger[183]. - The efficiency ratio improved to 45.71% for the quarter ended March 31, 2025, compared to 49.07% for the same period in 2024[164]. Asset and Loan Management - Total assets decreased by $802.1 million or 2.0% to $38.76 billion as of March 31, 2025, compared to $39.57 billion at December 31, 2024[155]. - Total loans decreased by $171.6 million or 0.8% to $21.98 billion as of March 31, 2025, compared to $22.15 billion at December 31, 2024[155]. - Total deposits decreased by $354.5 million or 1.2% to $28.03 billion as of March 31, 2025, compared to $28.38 billion at December 31, 2024[155]. - The total originated loans were $18.18 billion, while re-underwritten acquired loans totaled $1.47 billion, with total loans held for investment at $21.97 billion[189]. - Loans represented 56.7% of total assets at March 31, 2025, compared to 56.0% at December 31, 2024[190]. Credit Losses and Allowances - The allowance for credit losses is established based on historical loan loss experience and current economic conditions, ensuring it is adequate to cover expected losses[161]. - The allowance for credit losses on loans was 475.8% of total nonperforming loans at March 31, 2025, compared to 463.9% at December 31, 2024[206]. - The allowance for credit losses on originated loans at the end of the period was $234,187 thousand, representing a ratio of 1.29% to end of period loans[221]. - The total charge-offs for the three months ended March 31, 2025, were $3.9 million, partially offset by total recoveries of $1.2 million[223]. - The provision for credit losses for the three months ended March 31, 2025, was $9,539 thousand for originated loans and $(9,539) thousand for acquired loans[221]. Mergers and Acquisitions - The merger with Lone Star State Bancshares, effective April 1, 2024, added $1.38 billion in total assets, $1.08 billion in total loans, and $1.24 billion in total deposits[156]. - The Company issued 2,376,182 shares of common stock and approximately $64.1 million in cash for the acquisition of Lone Star, resulting in goodwill of $106.7 million[157]. - Average deposits for Q1 2025 were $28.16 billion, an increase of $1.00 billion or 3.7% compared to Q1 2024, primarily due to the Merger[237]. Capital and Ratios - The CET1 capital ratio was maintained above the required minimum of 7.0% as per Basel III Capital Rules[256]. - As of March 31, 2025, the Company's CET1 capital ratio was 16.92%, significantly above the minimum required level of 4.50%[258]. - The Company's total capital ratio was 18.17%, exceeding the minimum required level of 8.00%[258]. - The Bank's CET1 capital ratio was 15.92%, above the minimum required level of 4.50%[258]. - The Bank's total capital ratio was 17.17%, surpassing the minimum required level of 8.00%[258]. Market Risk Management - The Company manages market risk primarily through interest rate risk strategies approved by the Board of Directors[260]. - The Company utilizes simulation analysis to assess the impact of market changes on net interest income and market value[261]. - There have been no material changes in the Company's market risk exposures since the disclosures in the 2024 Form 10-K[261]. - The Company considers macroeconomic variables and liquidity in quantifying market risk[261].

Core Viewpoint - Prosperity Bancshares Inc. reported strong first-quarter 2025 adjusted earnings per share (EPS) of $1.37, surpassing estimates and showing year-over-year growth, driven by increased net interest income and adjusted non-interest income [1][2] Financial Performance - Adjusted total revenues for the quarter reached $306.7 million, a 10.7% increase from the prior-year quarter, although it slightly missed the Zacks Consensus Estimate of $307.1 million [3] - Net interest income (NII) was $265.4 million, reflecting an 11.4% year-over-year increase, with the net interest margin (NIM) expanding by 35 basis points to 3.14% [3] - Non-interest income amounted to $41.3 million, up 6.3%, driven by increases in most components except for credit card and trust income [4] - Non-interest expenses rose by 3.3% to $140.3 million, primarily due to increases in various cost components, while the adjusted efficiency ratio improved to 45.71% from 49.07% year-over-year, indicating better profitability [5] Asset and Deposit Trends - As of March 31, 2025, total loans were $22 billion, showing a slight decline from the previous quarter, while total deposits decreased by 1.2% to $28.03 billion [6] Credit Quality - Total non-performing assets decreased to $81.4 million from $83.8 million year-over-year, with the allowance for credit losses to total loans ratio increasing to 1.59% [7] Capital and Profitability Ratios - The common equity tier 1 capital ratio improved to 16.97% from 15.75% year-over-year, and the total risk-based capital ratio rose to 18.22% from 17.00% [8] - The annualized return on average assets increased to 1.34% from 1.13%, and the return on average common equity rose to 6.94% from 6.20% [8] Strategic Outlook - The company's focus on strategic acquisitions is expected to enhance long-term financial strength, supported by a solid loan and deposit mix, along with improving fee income [9]

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $130 million, an increase of 17.9% from $110 million in Q1 2024 [11] - Net income per diluted common share rose to $1.37, up 16.1% from $1.18 in the same period last year [11] - The annualized return on average assets was 1.34% and on average tangible common equity was 13.23% [11] - The efficiency ratio improved to 45.7% compared to 49.1% in Q1 2024 [23] Business Line Data and Key Metrics Changes - Total loans reached $21.9 billion, a 3.3% increase from $21.2 billion in Q1 2024, primarily due to the merger with Lonestar State Bancshares [12] - Deposits increased to $28 billion, up 3.1% from $27 billion in Q1 2024 [13] - Noninterest income was $41.3 million for Q1 2025, compared to $38.9 million in Q1 2024 [22] Market Data and Key Metrics Changes - Nonperforming assets totaled $81.4 million, stable compared to $81 million in Q1 2024 [15][25] - The Texas economy showed solid employment growth and increased sales tax revenue, indicating a strong economic environment [16][17] Company Strategy and Development Direction - The company aims to maintain strong asset quality and solid earnings while focusing on long-term customer relationships [9] - Management is optimistic about potential acquisition opportunities despite market volatility [18] - The company is prepared to utilize its capital for acquisitions, buybacks, or dividends as opportunities arise [114] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth despite current sluggishness, with expectations of low single-digit growth for 2025 [35][38] - The company is closely monitoring economic conditions and customer sentiment, which remain optimistic despite uncertainties [40][42] - Management anticipates that net interest margins will continue to improve as the bond and loan portfolios reprice [15][74] Other Important Information - The tangible equity to tangible asset ratio was maintained at 11.2% with tangible equity of $3.9 billion [10] - The cost of funds was reported at 1.66% and the cost of deposits at 1.38% [14] Q&A Session Summary Question: Insights on loan growth and expectations for 2025 - Management expects low single-digit loan growth for 2025, with recent loan pipelines showing modest increases [35][38] Question: Balance sheet trends and high-cost borrowings - The company has reduced borrowings from $3.9 billion to $2.7 billion and does not anticipate significant further reductions [53][56] Question: Thoughts on stock buybacks given current prices - Management is focused on M&A opportunities but is open to stock buybacks if prices decline further [61][63] Question: M&A environment and potential deals - Management believes M&A activity will resume as companies are still interested despite recent market volatility [70][126] Question: Credit quality and provision expectations - The company does not expect to take significant provisions unless economic conditions worsen significantly [96][97]

First Quarter 2025 Investor Presentation "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains, and the remar ks by Prosperity's management on the conference call may contain, forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 193 ...