Prosperity Bancshares(PB) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter earnings per share (diluted) increased by 16.1% to $1.37 compared to the first quarter of 2024[2] - Net income for the first quarter rose 17.9$130.2 million compared to $110.4 million in the same period last year[2] - Net income available to common shareholders for the quarter was$130,225 thousand, compared to $130,076 thousand in the previous quarter, an increase of 0.11$130.225 million, compared to $130.076 million in Q4 2024 and$110.426 million in Q1 2024, reflecting a year-over-year increase of 18%[85] Asset and Loan Growth - Total assets at March 31, 2025, were $38.765 billion, an increase of$8.2 million year-over-year[20] - Loans increased by 3.3% to $21.978 billion compared to$21.265 billion at March 31, 2024[21] - Total loans reached $21,842,882, with interest earned of$319,023, reflecting an average yield of 5.92%[62] - Total loans amounted to $21.978 billion, down from$22.149 billion in the previous quarter, indicating a reduction in lending activity[88] Deposit and Interest Metrics - Deposits rose by 3.1% to $28.027 billion compared to$27.176 billion at March 31, 2024[23] - Interest expense on deposits decreased to $95,597 thousand from$102,050 thousand, a decrease of 6.06%[51] - The total cost of funds, including noninterest-bearing deposits, was 1.66% for the three months ended March 31, 2025, down from 1.80% in the previous quarter[63] Noninterest Income and Expenses - Noninterest income grew by 6.3% to $41.3 million compared to$38.9 million in the first quarter of 2024[16] - Noninterest income increased to $41,301 thousand from$39,837 thousand, an increase of 3.66%[51] - Noninterest expense for the quarter was $140.301 million, a slight decrease from$141.545 million in the previous quarter, indicating cost control measures[88] Credit Quality and Allowance for Losses - Nonperforming assets remained low at 0.24% of quarterly average interest-earning assets[27] - The allowance for credit losses on loans was $349.1 million, or 1.59$349.101 million, representing 1.59% of total loans as of March 31, 2025[83] - Net charge-offs for the three months ended March 31, 2025, were $2.704 million, with a net charge-off ratio of 0.05$64.1 million in cash, resulting in goodwill of $106.7 million as of March 31, 2025[34] - The merger completed on April 1, 2024, added$1.075 billion in loans, with related purchase accounting adjustments of $24.9 million[79] Capital and Equity - Shareholders' equity increased to$7,517,061 thousand from $7,438,495 thousand, an increase of 1.06$41.48 in Q1 2025 from $40.61 in Q4 2024[86] Operational Efficiency - The efficiency ratio improved to 45.71% for the three months ended March 31, 2025, compared to 46.10% in the previous quarter[53] - The efficiency ratio, excluding certain items, is used by the company for internal planning and forecasting purposes, reflecting its focus on operational performance[84] - The efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, improved to 45.71% from 46.10% in the previous quarter, demonstrating enhanced operational efficiency[88] Future Outlook and Guidance - Forward-looking statements indicate expectations for future economic performance, including revenues and earnings per share, but are subject to inherent uncertainties and risks[42] - The company emphasizes the importance of reviewing consolidated financial statements in their entirety, as non-GAAP measures should not be considered substitutes for GAAP measures[38]