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Mar 31, 2023
Prosperity Q1 2023 Earnings Report
Reported net income of $124.7 million and EPS of $1.37.
Key Takeaways
Prosperity Bancshares, Inc. reported a net income of $124.7 million for the quarter ended March 31, 2023, compared to $122.3 million for the same period in 2022. The diluted earnings per share were $1.37, up from $1.33 in the previous year. Loans, excluding Warehouse Purchase Program loans, increased by $436.0 million, and nonperforming assets remained low at 0.07% of average interest-earning assets.
Net income for the first quarter was $124.7 million, with earnings per share (diluted) at $1.37.
Loans, excluding Warehouse Purchase Program loans, increased by $436.0 million, representing a 2.4% increase during the first quarter of 2023.
The allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans, was 1.52%.
Nonperforming assets remained low, accounting for 0.07% of first quarter average interest-earning assets.
Forward Guidance
Prosperity has established lines of credit at the Federal Home Loan Bank and the Federal Reserve in the amount of $14.7 billion, of which $11.3 billion is currently available.
Positive Outlook
- Talented team
- Deep bench
- Strong earnings
- Solid capital position
- Fortress balance sheet
Challenges Ahead
- Market was flooded with excess funds the last few years during the COVID-19 pandemic
- Federal Reserve is reducing the money supply in its efforts to lower inflation
- Most banks saw a loss of deposits during the quarter
- Some customers who were concerned with liquidity after the failure of SVB and Signature Bank
- Market was flooded with excess funds the last few years during the COVID-19 pandemic
Historical Earnings Impact
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Avg. Return Before/After Earnings
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