Prosperity Bancshares(PB) - 2024 Q4 - Annual Results

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]