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Mar 31, 2021
Prosperity Q1 2021 Earnings Report
Reported an increase in earnings per share and net income for the first quarter of 2021.
Key Takeaways
Prosperity Bancshares, Inc. reported a net income of $133.3 million for the quarter ended March 31, 2021, compared to $130.8 million for the same period in 2020. The net income per diluted common share was $1.44, and the annualized return on average assets was 1.54%. Deposits increased by $1.403 billion during the quarter, and nonperforming assets remained low at 0.15% of average interest-earning assets.
First quarter earnings per share (diluted) of $1.44, an increase of 3.6% compared to the first quarter 2020
First quarter net income of $133.3 million
Deposits increased $1.403 billion or 5.1% (20.5% annualized) during the first quarter 2021
Nonperforming assets remain low at 0.15% of first quarter average interest-earning assets
Prosperity
Prosperity
Forward Guidance
Texas and Oklahoma both have bright futures with the Dallas Federal Reserve projecting over 6% job growth in Texas for 2021 and Texas is expected to outperform most of the other states for the next three years. Oklahoma is also projected to have population growth for 2021 and has seen expansion of many of the large businesses operating in the state, including Boeing, American Airlines, Costco and Amazon.
Positive Outlook
- Texas now has the fastest-growing population in the nation.
- The Dallas Federal Reserve is projecting over 6% job growth, meaning over 700,000 new jobs, in Texas for 2021.
- Texas is expected to outperform most of the other states for the next three years.
- Companies continue to move to Texas, with HP and Oracle announcing headquarter moves and other companies, such as Tesla, announcing a major expansion into Texas.
- Consumer spending in Oklahoma is above early 2020 levels and retail job additions and new housing permits are higher than the average U.S. rate
Challenges Ahead
- Significant economic uncertainties that have had, and could continue to have, an adverse impact on Prosperity’s operating income, financial condition and cash flows
- Office building loans are being carefully monitored
- Hospitality loans are being carefully monitored
- Oil and gas loans are being carefully monitored
- The extent to which the COVID-19 pandemic will impact Prosperity’s operations and financial results during 2021 cannot be reasonably or reliably estimated at this time