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Mar 31, 2022

Prosperity Q1 2022 Earnings Report

Prosperity Bancshares' financial performance decreased compared to the same period last year, with net income and EPS declining, but deposits increased.

Key Takeaways

Prosperity Bancshares reported a decrease in net income to $122.3 million for Q1 2022, compared to $133.3 million for the same period in 2021. Earnings per diluted share also decreased to $1.33 from $1.44 year-over-year. However, deposits saw an increase of $296.5 million during the quarter.

Net income for the first quarter was $122.3 million, with earnings per share (diluted) at $1.33.

Deposits increased by $296.5 million, representing a 1.0% growth during the first quarter of 2022.

Allowance for credit losses on loans and off-balance sheet credit exposure totaled $315.1 million.

Nonperforming assets remained low, accounting for 0.08% of first quarter average interest-earning assets.

Total Revenue
$275M
Previous year: $289M
-4.7%
EPS
$1.33
Previous year: $1.44
-7.6%
Efficiency Ratio
43.68%
Previous year: 41.25%
+5.9%
Cash and Equivalents
$1.56B
Previous year: $1.95B
-19.9%
Free Cash Flow
$212M
Previous year: $223M
-4.6%
Total Assets
$38.3B
Previous year: $35.6B
+7.6%

Prosperity

Prosperity

Forward Guidance

Prosperity Bancshares is navigating a complex economic landscape with both opportunities and challenges.

Positive Outlook

  • Companies and individuals continue to move to Texas and Oklahoma primarily because of lower tax rates and a favorable pro-business political environment.
  • The overall economy remains strong.
  • Prosperity has a talented team.
  • Prosperity has strong earnings.
  • Prosperity has a solid capital position and a fortress balance sheet.

Challenges Ahead

  • There are concerns around higher interest rates.
  • There are concerns around inflation.
  • There are concerns around supply chain issues.
  • The war between Russia and Ukraine creates uncertainty.
  • Loans were slightly down as we continue to see significant payoffs despite strong loan production.