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Sep 30, 2022

Prosperity Q3 2022 Earnings Report

Reported net income of $135.8 million and earnings per share (diluted) of $1.49.

Key Takeaways

Prosperity Bancshares, Inc. reported a net income of $135.8 million for the third quarter of 2022, compared to $128.6 million for the same period in 2021. Diluted earnings per share increased to $1.49, up from $1.39 in the prior year. Loans, excluding Warehouse Purchase Program and SBA Paycheck Protection Program loans, increased by $530.8 million.

Third quarter net income of $135.8 million and earnings per share (diluted) of $1.49

Third quarter net income increased $7.3 million or 5.7% compared to the second quarter 2022

Loans, excluding Warehouse Purchase Program and SBA Paycheck Protection Program loans, increased $530.8 million or 3.1% (12.5% annualized) during the third quarter

Nonperforming assets remain low at 0.06% of third quarter average interest-earning assets

Total Revenue
$295M
Previous year: $283M
+4.3%
EPS
$1.49
Previous year: $1.39
+7.2%
Efficiency Ratio
41.38%
Previous year: 42.34%
-2.3%
Cash and Equivalents
$602M
Previous year: $1.06B
-42.9%
Free Cash Flow
$186M
Previous year: $181M
+2.9%
Total Assets
$37.8B
Previous year: $36.5B
+3.6%

Prosperity

Prosperity

Forward Guidance

The board of directors voted to increase the fourth quarter 2022 dividend to $0.55 a share, with the Federal Reserve continuing to raise rates, their net interest margin continues to increase, which improves their earnings.

Positive Outlook

  • Increase in dividend to $0.55 a share.
  • Net interest margin continues to increase.
  • Strong loan growth for the quarter.
  • Asset quality continues to be one of the best in banking.
  • Individuals and businesses continue to move to Texas and Oklahoma because of lower tax rates and a pro-business political environment.