UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 001-35388 | --- | --- | |-------------------------------------------------------------------------------------|---------------- ...

Shares of Prosperity Bancshares Inc. (PB) gained 1% on better-than-expected third-quarter 2024 earnings. Its adjusted earnings per share (EPS) of $1.34 beat the Zacks Consensus Estimate of $1.30. Moreover, the bottom line compared favorably with adjusted earnings of $1.21 in the prior-year quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Results benefited from an increase in net interest income (NII). Further, a rise in deposits and loans was another positive. Nevertheless, a ...

Financial Data and Key Metrics Changes - Prosperity Bancshares reported net income of $127 million for Q3 2024, an increase from $112 million in Q3 2023, representing an 11.7% increase in net income per diluted common share to $1.34 [6][8] - The net interest margin on a tax-equivalent basis improved to 2.95% for Q3 2024, up from 2.72% in Q3 2023 [6][12] - Tangible capital increased by $218 million from September 30, 2023, to September 30, 2024, despite paying $212 million in dividends and repurchasing $75 million of common stock [5][6] Business Line Data and Key Metrics Changes - Loans totaled $22.3 billion at September 30, 2024, an increase of $948 million or 4.4% compared to $21.4 billion at the same time last year [6][8] - Deposits reached $28 billion, up $774 million or 2.8% from $27.3 billion a year earlier [8][9] - Non-interest income for Q3 2024 was $41.1 million, compared to $38.7 million in Q3 2023, but down from $46 million in Q2 2024 [12][13] Market Data and Key Metrics Changes - Non-performing assets totaled $89.9 million, representing 25 basis points of quarterly average interest-earning assets, compared to $69.5 million or 20 basis points a year ago [9][14] - The allowance for credit losses on loans was $392 million at September 30, 2024, indicating a stable credit quality environment [9][10] Company Strategy and Development Direction - The company plans to focus on improving net interest margins and is optimistic about future growth opportunities in Texas and Oklahoma due to population influx and economic conditions [10][11] - Management indicated readiness for potential M&A opportunities that align with the company's growth strategy, emphasizing the importance of quality assets and strong management teams in any acquisition [10][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a net interest margin of 3% by year-end 2024, contingent on interest rate stability [18][19] - The company anticipates low single-digit loan growth in the near term, with potential for mid-single-digit growth in 2025, depending on the regulatory environment and interest rate cuts [46][48] Other Important Information - The efficiency ratio improved to 46.9% for Q3 2024, down from 51.8% in Q2 2024, indicating better operational efficiency [13] - The company has not purchased any broker deposits during recent market turbulence, focusing instead on stabilizing core deposits [9][10] Q&A Session Summary Question: What is the outlook for net interest margin (NIM)? - Management expects to exit 2024 with a NIM of 3%, with projections for 2025 averaging 3.27% [18][19][32] Question: How are deposit costs expected to change? - Management indicated that deposit costs should decrease as CDs reprice, with a beta of 22 basis points for every 100 basis points decrease in rates [24][25][27] Question: What is the outlook for loan growth? - Management anticipates low single-digit loan growth in the near term, with potential for mid-single-digit growth in 2025, influenced by the regulatory environment and interest rates [46][48] Question: Is the company considering M&A opportunities? - Management is open to M&A if it enhances the company's position and shareholder value, but the focus remains on organic growth and improving net interest margins [34][36][50]

For the quarter ended September 2024, Prosperity Bancshares (PB) reported revenue of $302.79 million, up 8.8% over the same period last year. EPS came in at $1.34, compared to $1.20 in the year-ago quarter.The reported revenue represents a surprise of +0.99% over the Zacks Consensus Estimate of $299.83 million. With the consensus EPS estimate being $1.30, the EPS surprise was +3.08%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to d ...

Prosperity Bancshares (PB) came out with quarterly earnings of $1.34 per share, beating the Zacks Consensus Estimate of $1.30 per share. This compares to earnings of $1.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.08%. A quarter ago, it was expected that this financial holding company would post earnings of $1.20 per share when it actually produced earnings of $1.22, delivering a surprise of 1.67%.Over the last four qu ...

The upcoming report from Prosperity Bancshares (PB) is expected to reveal quarterly earnings of $1.30 per share, indicating an increase of 8.3% compared to the year-ago period. Analysts forecast revenues of $299.83 million, representing an increase of 7.8% year over year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.8% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Befo ...

The market expects Prosperity Bancshares (PB) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence 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 ...

Since my last article on Prosperity Bancshares (NYSE: PB ) the stock has achieved a total return of 25% in just over three months, an excellent performance considering that the S&P 500 was up 5% over the same period. Hi there, welcome to my profile. My name is Eugenio Catone, I live in Italy and I am 26 years old. In 2023 I graduated in Business Administration and I am completing my studies. My interest in financial markets started about 5 years ago when I accidentally came across a video about trading. Tha ...

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a ...

Financial Data and Key Metrics Changes - For Q2 2024, net income was $111 million or $1.17 per diluted share, slightly down from $110 million or $1.18 per diluted share in Q1 2024, impacted by merger-related expenses and provisions [11][12] - Net interest income before provision for credit losses increased to $258 million, up $20.5 million or 8.6% from $238 million in Q1 2024 [12][21] - The net interest margin on a tax-equivalent basis improved to 2.94% from 2.79% in Q1 2024 [12][22] Business Line Data and Key Metrics Changes - Loans totaled $22.3 billion at June 30, 2024, an increase of $666 million or 3.1% year-over-year, primarily due to the Lone Star merger [13][14] - Deposits reached $27.9 billion, up $552 million or 2% compared to the previous year, with linked core deposits increasing by $757 million or 2.8% from Q1 2024 [15][16] - Non-interest income was $46 million, up from $38.9 million in Q1 2024, driven by a net gain of $10.7 million from Visa stock conversion [23][24] Market Data and Key Metrics Changes - Non-performing assets totaled $89 million, representing 25 basis points of quarterly average interest-earning assets, an increase from $83 million or 24 basis points in Q1 2024 [16][26] - The allowance for credit losses on loans was $359 million, which is 4.02 times the amount of non-performing assets [17] Company Strategy and Development Direction - The company aims to grow both organically and through mergers and acquisitions, focusing on building core customer relationships and maintaining sound asset quality [18][20] - Management is optimistic about future growth, citing Texas's business-friendly environment as a key factor for expansion [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to create long-term shareholder value, having returned $284 million to shareholders over the past year [19] - The company anticipates continued improvement in net interest margin and overall financial performance, despite potential economic fluctuations [19][20] Other Important Information - The efficiency ratio for Q2 2024 was 51.8%, compared to 49.1% in Q1 2024, influenced by merger-related expenses [25] - The company has not purchased broker deposits to offset deposit losses, focusing instead on building core deposits [16] Q&A Session Summary Question: Update on NIM outlook for Q4 - Management expects net interest margin to improve slightly, with an exit margin around 3% [35][41] Question: Thoughts on provisioning - Provisioning was primarily related to the CECL calculation and the merger, with sufficient reserves in place [59][65] Question: Expense guidance for Q3 - Non-interest expense is expected to be between $141 million and $143 million, including costs from the Lone Star acquisition [66] Question: Loan growth strategy - The company plans to be more opportunistic in the secondary markets for residential loans, maintaining a balance in their portfolio [77] Question: Overall health of non-owner occupied commercial real estate - The commercial real estate book remains strong and competitive, with healthy lending practices [103]