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Dec 31, 2019

Prosperity Q4 2019 Earnings Report

Prosperity's net income was impacted by merger related expenses and merger with LegacyTexas Financial Group, Inc. was completed.

Key Takeaways

Prosperity Bancshares, Inc. reported net income of $86.134 million for Q4 2019, impacted by merger-related expenses of $46.402 million. The merger with LegacyTexas Financial Group, Inc. was completed on November 1, 2019, significantly increasing deposits and loans.

Completed the merger with LegacyTexas Financial Group, Inc. on November 1, 2019

Fourth quarter net income of $86.134 million and earnings per share (diluted) of $1.01, both impacted by merger related expenses of $46.402 million

Deposits increased $7.270 billion or 42.9% during the fourth quarter 2019

Loans increased $8.172 billion or 76.6% during the fourth quarter 2019

Total Revenue
$268M
Previous year: $186M
+43.6%
EPS
$1.44
Previous year: $1.19
+21.0%
Non-Perf Assets / Avg Int-Earn Assets
0.25%
Previous year: 0.1%
+150.0%
Efficiency Ratio
58.07%
Loans
$18.8B
Gross Profit
$232M
Cash and Equivalents
$574M
Previous year: $411M
+39.7%
Free Cash Flow
$51.5M
Previous year: $89.3M
-42.4%
Total Assets
$32.2B
Previous year: $22.7B
+41.8%

Prosperity

Prosperity

Prosperity Revenue by Geographic Location

Forward Guidance

Prosperity expects asset growth and enhanced opportunities for customers and associates, ultimately increasing shareholder value.

Positive Outlook

  • Combination of LegacyTexas Bank and Prosperity Bank should result in asset growth
  • Enhanced customer opportunities
  • Enhanced associate opportunities
  • Increase shareholder value
  • Consumer sentiment remains strong and the trends suggest a positive start to 2020

Challenges Ahead

  • Oil and gas prices remaining in the $55 to $60 per barrel range
  • Credit quality could deteriorate
  • Actions of competitors
  • Changes in laws and regulations
  • Economic conditions, including currency rate, interest rate and commodity price fluctuations

Revenue & Expenses

Visualization of income flow from segment revenue to net income