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Dec 31, 2024

Prosperity Q4 2024 Earnings Report

Prosperity Bancshares reported increased earnings per share and net income, driven by net interest income growth and decreased FDIC special assessment.

Key Takeaways

Prosperity Bancshares, Inc. reported a net income of $130.1 million for Q4 2024, up from $95.5 million in Q4 2023, with diluted earnings per share increasing to $1.37 from $1.02. The net interest margin also increased by 30 basis points to 3.05%.

Earnings per share (diluted) increased by 34.3% compared to Q4 2023.

Net income reached $130.1 million.

Net interest margin increased by 30 basis points to 3.05% compared to Q4 2023.

Borrowings decreased by $700.0 million during the quarter.

Total Revenue
$308M
Previous year: $274M
+12.5%
EPS
$1.37
Previous year: $1.19
+15.1%
Efficiency Ratio
46.1%
Cash and Equivalents
$1.97B
Previous year: $458M
+330.5%
Total Assets
$39.6B
Previous year: $38.5B
+2.6%

Prosperity

Prosperity

Forward Guidance

Prosperity anticipates continued growth and margin expansion, bolstered by a strong capital position and favorable economic conditions in Texas and Oklahoma.

Positive Outlook

  • Opportunities to participate in mergers and acquisitions.
  • Potential for stock repurchase programs.
  • Funding of organic growth without needing additional capital.
  • Net interest margin expected to continue expanding.
  • Strong core deposits with a significant portion in noninterest-bearing accounts.

Challenges Ahead

  • Uncertainties in identifying suitable acquisition targets.
  • Challenges in integrating acquired businesses.
  • Potential deterioration of credit quality.
  • Actions of competitors affecting market position.
  • Changes in laws and regulations impacting operations.