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Dec 31, 2022
Prosperity Q4 2022 Earnings Report
Prosperity Bancshares, Inc. reported an increase in net income and earnings per share for the fourth quarter of 2022, driven by growth in loans and securities interest income.
Key Takeaways
Prosperity Bancshares, Inc. reported a net income of $137.9 million for Q4 2022, an increase of 8.7% compared to Q4 2021. Earnings per diluted share rose to $1.51, a 9.4% increase year-over-year. The company saw growth in loans, excluding certain programs, and maintained low nonperforming assets.
Net income for the fourth quarter reached $137.9 million, with earnings per share (diluted) at $1.51.
Fourth quarter net income increased by 8.7% compared to the same period in 2021.
Loans, excluding specific programs, increased by $518.5 million, representing a 3.0% growth during the quarter.
Nonperforming assets remained low, accounting for 0.08% of fourth quarter average interest-earning assets.
Prosperity
Prosperity
Forward Guidance
Prosperity expects loan growth to continue in 2023, driven by new loans and existing loans not paying off as quickly. They anticipate the economies in Texas and Oklahoma will outperform other states, leading to increased infrastructure, building, housing, and financing needs.
Positive Outlook
- Continued growth in loans is expected in 2023.
- Consumer spending remains strong, particularly in tourism, restaurant, and hospitality sectors.
- Texas and Oklahoma economies are expected to outperform other states.
- Companies and individuals continue to move to Texas and Oklahoma due to lower tax rates and a business-friendly environment.
- Anticipated increase in infrastructure, building, housing, and financing needs.
Challenges Ahead
- Real estate sales and pricing have been affected by the increase in rates.
- Net interest margin at some banks has improved immediately because of higher rates.
- Bond portfolio yielded 1.96% during the fourth quarter of 2022.
- Decrease in PPP fees and interest income of $8.5 million.
- Decrease in loan discount accretion of $4.5 million.