Financial Performance - For the quarter ended September 30, 2024, net income available to common shareholders was $127.3 million or $1.34 per diluted common share, an increase from $112.2 million or $1.20 per diluted common share for the same period in 2023, representing a 13.5% increase[162] - The annualized return on average common equity for the quarter ended September 30, 2024, was 6.93%, compared to 6.39% for the same period in 2023, indicating improved profitability[163] - Net interest income before the provision for credit losses for the quarter ended September 30, 2024, was $261.7 million, an increase of $22.2 million or 9.3% compared to $239.5 million for the same period in 2023[165] - Interest income on loans for the quarter ended September 30, 2024, was $337.5 million, an increase of $28.8 million or 9.3% compared to $308.7 million for the same period in 2023[166] - Noninterest income rose to $41.1 million for the three months ended September 30, 2024, an increase of $2.4 million or 6.1% from $38.7 million in the same period last year[189] - Noninterest expense totaled $140.3 million for the quarter ended September 30, 2024, reflecting an increase of $4.7 million or 3.5% compared to $135.7 million in the prior year[192] - Income tax expense for Q3 2024 was $35.2 million, an increase of $4.8 million or 15.7% compared to Q3 2023[194] - The Company’s net income for the period was $349.3 million, contributing to the increase in shareholders' equity[269] Asset and Liability Management - Total assets increased to $40.12 billion as of September 30, 2024, up by $1.57 billion or 4.1% from $38.55 billion at December 31, 2023[152] - Total loans rose to $22.38 billion, reflecting an increase of $1.20 billion or 5.7% compared to $21.18 billion at December 31, 2023[152] - Total deposits reached $28.09 billion, an increase of $907.8 million or 3.3% from $27.18 billion at December 31, 2023[152] - Total shareholders' equity grew to $7.36 billion, up by $281.9 million or 4.0% from $7.08 billion at December 31, 2023[152] - The carrying cost of securities decreased to $11.30 billion at September 30, 2024, down by $1.50 billion or 11.7% from $12.80 billion at December 31, 2023[242] - Securities represented 28.2% of total assets at September 30, 2024, compared to 33.2% at December 31, 2023[242] - Cash and cash equivalents significantly increased to $2.21 billion, up by $1.75 billion or 382.1% from $458.4 million at December 31, 2023[256] 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[153] - The acquisition of First Bancshares of Texas, effective May 1, 2023, contributed $2.14 billion in total assets, $1.65 billion in total loans, and $1.71 billion in total deposits[155] - Goodwill recognized from the Lone Star merger was $108.0 million as of September 30, 2024[154] - Goodwill from the First Bancshares merger totaled $164.8 million, including final fair value adjustments[156] Credit Quality and Allowance for Credit Losses - The allowance for credit losses on loans was $341,659, compared to $303,518 in the previous year[178] - Nonperforming assets increased by $17.3 million to $89.9 million as of September 30, 2024, compared to $72.7 million at December 31, 2023[210] - Nonperforming assets represented 0.40% of total loans and other real estate at September 30, 2024, up from 0.34% at December 31, 2023[212] - The allowance for credit losses on loans was 422.0% of total nonperforming loans as of September 30, 2024, compared to 468.9% at December 31, 2023[212] - The provision for credit losses was $10,727 thousand for originated loans and $(2,804) thousand for acquired loans, resulting in a total provision of $7,923 thousand[229] - The allowance for credit losses on loans increased to $354.4 million at September 30, 2024, up by $22.0 million or 6.6% from $332.4 million at December 31, 2023[234] Capital and Regulatory Ratios - The Company's CET1 capital ratio was 15.84% as of September 30, 2024, significantly above the minimum required ratio of 4.50%[272] - The total capital ratio for the Company was 17.09% as of September 30, 2024, exceeding the minimum required ratio of 8.00%[272] - The Bank's total capital ratio was 17.04% as of September 30, 2024, also above the minimum required ratio of 8.00%[272] - The Company has a capital conservation buffer requirement of 2.5% under Basel III Capital Rules, which it exceeds comfortably[270] Operational Efficiency - The company focuses on internal growth, efficient operations, and strategic acquisitions as key components of its growth strategy[151] - The company operates 287 full-service banking locations across Texas and Oklahoma as of September 30, 2024[148] Loan Portfolio - Total loans held for investment increased to $72.1 billion as of September 30, 2024, compared to $58.9 billion in the previous year[182] - Loans held for investment reached $21,312,440, with interest earned of $928,973, reflecting a yield of 5.82%[178] - The loan portfolio includes $18.32 billion in originated loans and $1.31 billion in re-underwritten acquired loans[197] - Commercial and industrial loans are primarily secured by short-term assets and involve higher credit risk compared to residential mortgage loans[198] - The Company provides agriculture loans for short-term livestock and crop production, evaluating borrowers based on historical profitability and financial capacity[205] Interest Rate and Margin - The net interest margin on a tax-equivalent basis for the quarter ended September 30, 2024, was 2.95%, an increase of 23 basis points compared to 2.72% for the same period in 2023[169] - The net interest margin improved to 2.85% for the nine months ended September 30, 2024, compared to 2.78% in the prior year[178] - The net interest rate spread was 1.88%, down from 1.97% in the previous year[178] Other Financial Metrics - The average interest-bearing deposits to total average deposits ratio increased to 65.3% for the first nine months of 2024, compared to 62.4% for the same period in 2023[248] - The Bank Term Funding Program balance outstanding was $3.90 billion as of September 30, 2024, with an interest rate of 4.76%[250] - The Company had outstanding commitments to extend credit of $4.04 billion as of September 30, 2024[254]

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 ...

Core Insights - Prosperity Bancshares reported quarterly earnings of $1.34 per share, exceeding the Zacks Consensus Estimate of $1.30 per share, and showing an increase from $1.20 per share a year ago, representing an earnings surprise of 3.08% [1] - The company generated revenues of $302.79 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.99% and up from $278.27 million year-over-year [1] Earnings Performance - The company has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [1] - In the previous quarter, the company reported earnings of $1.22 per share against an expectation of $1.20, resulting in a surprise of 1.67% [1] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.33 on revenues of $302.51 million, while for the current fiscal year, the estimate is $5.03 on revenues of $1.18 billion [4] - The estimate revisions trend for Prosperity Bancshares is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [4] Industry Context - The Banks - Southwest industry, to which Prosperity Bancshares belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [5] - Another bank in the same industry, ACNB, is expected to report a decline in quarterly earnings of $0.88 per share, reflecting a year-over-year change of -17% [5]

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 ...

分组1 - Prosperity Bancshares (NYSE: PB) has achieved a total return of 25% in just over three months, significantly outperforming the S&P 500, which was up 5% during the same period [1]

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]