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Mar 31
Prosperity Q1 2025 Earnings Report
Prosperity Bancshares reported strong first quarter results with rising margins and improved net income.
Key Takeaways
Prosperity Bancshares delivered a solid Q1 2025 performance, achieving higher net income and EPS, supported by margin expansion and strong asset quality.
Net income rose to $130,225,000, up from $110,400,000 in Q1 2024.
EPS increased to $1.37, reflecting improved profitability.
Net interest margin expanded to 3.14%, driven by loan repricing.
Nonperforming assets remained low at 0.24% of average interest-earning assets.
Prosperity
Prosperity
Prosperity Revenue by Segment
Revenue by Segment
NSF Fees Revenue
CapyFin.comCard Income Revenue
CapyFin.comDeposit Service Charges Revenue
CapyFin.comTrust Income Revenue
CapyFin.comMortgage Income Revenue
CapyFin.comBrokerage Income Revenue
CapyFin.comBOLI Income Revenue
CapyFin.comAsset Sales Gains Revenue
CapyFin.comOther Noninterest Income Revenue
CapyFin.com Forward Guidance
Prosperity expects continued margin expansion and stable asset quality, supported by strong regional economic indicators.
Positive Outlook
- Net interest margin is expected to continue increasing.
- Asset repricing anticipated to drive higher returns.
- Strong Texas economy with positive employment and sales tax trends.
- Optimistic customer sentiment in Texas and Oklahoma.
- Maintained high tangible equity ratio at 11.23%.
Challenges Ahead
- Uncertainty due to potential tariffs remains a concern.
- Noninterest expenses increased year-over-year due to merger integration.
- Loan balances declined slightly on a linked quarter basis.
- Lower trust income compared to prior year.
- Deposit base excluding merger contributions saw a small decline.