Core Viewpoint - Prosperity Bancshares Inc. reported strong fourth-quarter 2024 results, with adjusted earnings per share (EPS) of $1.37, exceeding expectations and showing year-over-year growth [1][3]. Financial Performance - Adjusted total revenues for the fourth quarter were $307 million, a 12.2% increase from the prior-year quarter, surpassing the Zacks Consensus Estimate of $302.8 million [4]. - For the full year 2024, adjusted total revenues reached $1.18 billion, up 6.4% year over year, matching the Zacks Consensus Estimate [4]. - Net income available to common shareholders for the fourth quarter was $130 million, up from $95.5 million in the year-ago quarter [2]. Income and Expenses - Net interest income (NII) was $267.8 million, reflecting a 13% increase year over year, while the net interest margin (NIM) expanded by 30 basis points to 3.05% [5]. - Non-interest income was $39.8 million, an 8.9% increase, driven by growth across all components [5]. - Non-interest expenses decreased by 7% to $141.5 million, attributed to lower occupancy and equipment charges, among other factors [6]. Credit Quality - Total non-performing assets rose to $81.5 million from $72.7 million in the prior-year quarter, with the allowance for credit losses to total loans ratio increasing to 1.59% [8]. - Net charge-offs were significantly lower at $2.6 million compared to $19.1 million in the year-ago period [8]. Capital Ratios and Profitability - The common equity tier 1 capital ratio improved to 16.42%, up from 15.54% in the prior year [10]. - The annualized return on average assets increased to 1.31% from 0.98%, and the return on average common equity rose to 7% from 5.39% [10]. Share Repurchase Plan - Prosperity Bancshares did not repurchase any shares during the reported quarter but announced a new plan to buy back up to 5% or 4.8 million shares, set to expire on January 21, 2026 [11]. Strategic Outlook - The company's focus on strategic acquisitions is expected to enhance its long-term financial strength, supported by a solid deposit mix and improving fee income [12].

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Financial Data and Key Metrics Changes - Net income for Q4 2024 was $130 million, an increase of $34 million or 36% compared to Q4 2023 [6] - Diluted earnings per share rose to $1.37, up 34% from $1.02 in the same period last year [7] - Annualized return on average assets was 1.31% and average tangible common equity was 13.5% for Q4 2024 [8] - Net interest margin increased by 30 basis points to 3.05% compared to 2.75% in Q4 2023 [9] Business Line Data and Key Metrics Changes - Loans outstanding at Dec. 31, 2024, were $2.22 billion, a 4.6% increase from $2.12 billion at Dec. 31, 2023, primarily due to the merger with Lone Star Bank [10] - Deposits increased to $2.84 billion, up 4.4% from $2.72 billion at Dec. 31, 2023 [12] - Non-interest income for Q4 2024 was $39.8 million, compared to $36.6 million in Q4 2023 [20] Market Data and Key Metrics Changes - Non-performing assets totaled $81.54 million, or 37 basis points of loans, down from $89.92 million or 40 basis points at Sept. 30, 2024 [23] - The allowance for credit losses on loans was $3.89 million at Dec. 31, 2024 [15] Company Strategy and Development Direction - The company is interested in mergers and acquisitions, with indications that banks are more open to transactions under the new administration [15] - The Texas and Oklahoma economies are viewed positively, with Texas experiencing significant population growth [16] - The company aims to maintain a strong capital position to support growth opportunities without needing additional capital [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about organic loan growth in 2025, citing positive customer sentiment post-election [11] - The company expects net interest margin to continue expanding as assets reprice [17] - Management noted that the current economic environment is conducive to growth, with a favorable political climate in Texas and Oklahoma [16] Other Important Information - A stock repurchase program was announced, allowing for the acquisition of up to 5% of outstanding common stock over one year [9] - The efficiency ratio for Q4 2024 was 46.1%, an improvement from 55.6% in Q4 2023 [22] Q&A Session Summary Question: Update on NIM trajectory - Management expects NIM to be around 3.25% to 3.35% for 2025, with positive sentiment about the trajectory [33][34] Question: Loan growth sentiment - Management noted positive customer sentiment and anticipates low to mid-single-digit loan growth, with improvements expected in the Texas market [41][42] Question: Securities portfolio yield outlook - Management expects the yield on the securities portfolio to improve as they reinvest in higher-yielding securities [58] Question: Provision for credit losses - Management indicated that the current reserve levels are sufficient unless there are significant changes in the credit outlook [66][67] Question: Deposit growth outlook - Management anticipates a return to a more normalized deposit growth rate of 2% to 2.5% for the year [84]

Financial Performance - Prosperity Bancshares reported revenue of $307.61 million for the quarter ended December 2024, reflecting a 12.5% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $1.37, up from $1.19 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $302.8 million by 1.59% [1] - EPS also surpassed the consensus estimate of $1.33 by 3.01% [1] Key Metrics - Net Interest Margin (Tax Equivalent Basis) was 3.1%, matching the average estimate from six analysts [4] - Efficiency Ratio stood at 46.1%, better than the average estimate of 46.7% [4] - Net charge-offs to average loans were 0.1%, consistent with the average estimate [4] - Average balance of total interest-earning assets was $35.08 billion, exceeding the estimated $34.67 billion [4] - Total nonperforming assets were reported at $81.54 million, lower than the estimated $89.39 million [4] - Total nonperforming loans were $75.84 million, compared to the estimated $83.52 million [4] - Tier 1 Leverage Capital Ratio was 10.8%, slightly below the average estimate of 10.9% [4] - Tier 1 Risk-based Capital Ratio was 16.4%, above the estimated 15.8% [4] - Total Risk-based Capital Ratio was 17.7%, exceeding the estimated 17.2% [4] - Total Noninterest Income was $39.84 million, higher than the average estimate of $37.20 million [4] - Net Interest Income was $267.77 million, surpassing the average estimate of $265.02 million [4] - Net Interest Income (Tax Equivalent Basis) was $268.54 million, compared to the average estimate of $267.12 million [4] Stock Performance - Shares of Prosperity Bancshares have returned +6.2% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Prosperity Bancshares (PB) came out with quarterly earnings of $1.37 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $1.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.01%. A quarter ago, it was expected that this financial holding company would post earnings of $1.30 per share when it actually produced earnings of $1.34, delivering a surprise of 3.08%.Over the last four qu ...

Financial Performance - Net income for Q4 2024 was $130.1 million, a 36.2% increase from $95.5 million in Q4 2023, with diluted earnings per share rising to $1.37 from $1.02[2][7] - Noninterest income for Q4 2024 was $39.8 million, an 8.9% increase from $36.6 million in Q4 2023[10] - Net income available to common shareholders for the quarter was $130,076, up from $95,476 in the same quarter last year, marking a significant increase of 36.3%[56] - Net income for the three months ended December 31, 2024, was $130,076,000, an increase of 2.0% from $127,282,000 in the previous quarter and a 17.0% increase from $111,602,000 year-over-year[58] - The company anticipates continued growth in net income and earnings per share in the upcoming quarters, driven by strategic initiatives and market expansion[86] Interest Income and Margin - Net interest income before provision for credit losses increased by 13.0% to $267.8 million in Q4 2024, compared to $237.0 million in Q4 2023[8] - The net interest margin improved to 3.05% in Q4 2024, up 30 basis points from 2.75% in Q4 2023[4][9] - Total interest income for the three months ended December 31, 2024, was $410,945, an increase from $376,432 in the same period last year, representing a growth of 9.2%[56] - Net interest income after provision for credit losses was $267,774 for the quarter, compared to $236,983 in the prior year, reflecting an increase of 13%[56] - The tax equivalent net interest margin increased to 3.05%, compared to 2.95% in the previous quarter and 2.94% a year ago[58] Assets and Liabilities - Total assets reached $39.567 billion as of December 31, 2024, reflecting a 2.6% increase from $38.548 billion a year earlier[22] - Total liabilities stood at $32,128,243 thousand, down from $32,754,071 thousand in the previous quarter[52] - Total assets increased to $39.63 billion, up from $39.89 billion year-over-year[1] - Total liabilities reached $32.20 billion, an increase from $31.73 billion, indicating a rise of about 1.5%[1] Loans and Deposits - Loans increased by 4.6% to $22.149 billion at December 31, 2024, compared to $21.181 billion at the same time in 2023[23] - Deposits increased to $28.381 billion as of December 31, 2024, up $1.202 billion or 4.4% from $27.180 billion a year earlier, primarily due to the Merger[24] - Total loans amounted to $22.149 billion at December 31, 2024, a decrease of $88.9 million compared to December 31, 2023, and a decrease of $179.5 million from September 30, 2024[24] - Noninterest-bearing deposits were $9,798,438 thousand, showing a marginal decrease from $9,811,361 thousand in the previous quarter[52] Credit Quality - Nonperforming assets totaled $81.5 million or 0.23% of quarterly average interest-earning assets at December 31, 2024, compared to $72.7 million or 0.21% a year earlier[26] - The allowance for credit losses on loans was $351.8 million or 1.59% of total loans at December 31, 2024, compared to $332.4 million or 1.57% a year earlier[28] - Net charge-offs for the year ended December 31, 2024, were $14.6 million, down from $38.0 million for the year ended December 31, 2023[30] - Nonperforming loans totaled $75.836 million, a decrease from $83.989 million in the prior quarter, indicating improved asset quality[83] Shareholder Returns - Prosperity declared a cash dividend of $0.58 per share for the first quarter of 2025, payable on April 1, 2025[33] - Cash dividends paid per common share increased to $0.58, up from $0.56 in the previous quarter and the same as the previous year[58] - The book value per common share rose to $78.07, compared to $77.27 in the previous quarter and $76.46 a year ago[58] Strategic Initiatives - The company approved a 2025 Stock Repurchase Program covering up to 5% of outstanding common stock[4] - Prosperity completed the merger with Lone Star State Bancshares, Inc. on April 1, 2024, issuing 2,376,182 shares and approximately $64.1 million in cash, resulting in goodwill of $106.7 million[36] - Future guidance indicates a focus on expanding market presence and enhancing product offerings[1] - The company is investing in new technology development to drive future growth[1] - Strategic acquisitions are being considered to bolster market position and enhance service capabilities[1]

Core Points - Prosperity Bancshares reported a net income of $130.1 million for Q4 2024, a 36.2% increase from $95.5 million in Q4 2023, with diluted earnings per share rising to $1.37 from $1.02 [1][5][10] - The company experienced a significant increase in deposits, up by $293.7 million in Q4 2024, while borrowings decreased by $700 million [1][19] - Nonperforming assets decreased to $81.5 million, representing 0.23% of average interest-earning assets, indicating strong asset quality [1][21] Financial Performance - For the year ended December 31, 2024, net income was $479.4 million, a 14.3% increase from $419.3 million in 2023, with earnings per share rising to $5.05 from $4.51 [10][11] - Net interest income before provision for credit losses for 2024 was $1.026 billion, up 7.3% from $956.4 million in 2023, driven by higher loan balances and rates [12] - The net interest margin improved to 2.93% for 2024, compared to 2.78% in 2023, reflecting better loan performance [13] Asset and Deposit Growth - Total assets increased to $39.567 billion as of December 31, 2024, a 2.6% rise from $38.548 billion a year earlier [17] - Loans reached $22.149 billion, a 4.6% increase from $21.181 billion in 2023, primarily due to the merger with Lone Star Bank [18] - Total deposits were $28.381 billion, up 4.4% from $27.180 billion in 2023, with noninterest-bearing deposits comprising 34.5% of total deposits [19][1] Merger Impact - The merger with Lone Star State Bancshares on April 1, 2024, contributed significantly to the growth in loans and deposits [30][31] - The merger resulted in goodwill of $106.7 million as of December 31, 2024, reflecting the strategic expansion of the company's operations [31] Future Outlook - The company expressed optimism about growth prospects in Texas and Oklahoma, citing favorable economic conditions and population growth [2][3] - Prosperity Bancshares has a strong capital position, allowing for potential mergers and acquisitions, stock repurchases, and organic growth without needing additional capital [3]

Core Viewpoint - Prosperity Bancshares, Inc. has authorized a stock repurchase program allowing the company to buy back up to 5% of its outstanding common stock, approximately 4.8 million shares, over a one-year period ending January 21, 2026 [1] Group 1: Stock Repurchase Program - The repurchase program allows for shares to be bought back through open market transactions and trading plans compliant with Rule 10b5-1 of the Securities Exchange Act of 1934 [2] - The actual number of shares repurchased will depend on various factors including market conditions, price, and corporate liquidity requirements [2][3] - The company is not obligated to repurchase a specific number of shares and may suspend or terminate the program at any time without prior notice [3] Group 2: Company Overview - As of September 30, 2024, Prosperity Bancshares is a regional financial holding company with assets totaling $40.115 billion, providing personal banking services and investments primarily in Texas and Oklahoma [4] - The company operates 285 full-service banking locations across various regions, including 65 in the Houston area and 62 in the Dallas/Fort Worth area [5]

HOUSTON, Dec. 23, 2024 /PRNewswire/ -- In conjunction with Prosperity Bancshares, Inc.® (NYSE: PB) Fourth Quarter 2024 Earnings Announcement, scheduled before the market opens on Wednesday, January 29, 2025, you are invited to listen to its conference call at 11:30 AM, Eastern Time (10:30 AM, Central Time) on that day. Participants will include members of Prosperity's executive management team.  What: Prosperity Bancshares, Inc.® Fourth Quarter 2024 Earnings Conference Call  When: Wednesday, Januar ...

My last two articles on Prosperity Bancshares (NYSE: PB ) highlighted the potential of this bank and how the price per share was undervalued. Since that time, the stock has outperformed the S&P 500 and isHi 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. That was the spa ...