1. Prosperity Bancshares net income rose 36.2% YoY to $130.1 million. 2. Net income per share increased by 34.3%, reaching $1.37. 3. Deposits increased by $293.7 million, indicating strong liquidity. 4. Nonperforming assets remain low at 0.23%, demonstrating solid asset quality. 5. Prosperity's merger with Lone Star is driving growth and market position.
Strong earnings growth and low nonperforming assets indicate healthy fundamentals.
Earnings report reflects strong financial health and potential for future growth, crucial for investor confidence.
Immediate positive impact from quarterly performance, but longer-term effects depend on integration success.
HOUSTON, Jan. 29, 2025 /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB), the parent company of Prosperity Bank® (collectively, "Prosperity"), reported net income of $130.1 million for the quarter ended December 31, 2024 compared with $95.5 million for the same period in 2023. Net income per diluted common share was $1.37 for the quarter ended December 31, 2024 compared with $1.02 for the same period in 2023. The annualized return on fourth quarter average assets was 1.31%. Additionally, deposits increased $293.7 million and borrowings decreased $700.0 million during the fourth quarter of 2024. Nonperforming assets decreased $8.4 million during the fourth quarter of 2024 and remain low at 0.23% of fourth quarter average interest-earning assets. On April 1, 2024, Lone Star State Bancshares, Inc. ("Lone Star") merged with Prosperity Bancshares and Lone Star State Bank of West Texas ("Lone Star Bank") merged with Prosperity Bank (collectively, the "Merger").
"We are excited about the growth and future of our company. The Texas and Oklahoma economies are some of the best in the country. Texas has no state income tax and both Texas and Oklahoma have a business-friendly political climate. The Texas population grew more than any other state in 2024, with the addition of 563,000 people, bringing the total population to 31,290,831. Further, according to Forbes in July 2024, there have been 209 corporate relocations to Texas since 2018. All of this bodes well for our future growth," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.
"Prosperity has a strong capital position that provides opportunities to participate in mergers and acquisitions, repurchase stock or fund organic growth without the need for additional capital. We believe that our net interest margin should continue to expand to a more normal ratio as our assets continue to reprice, thereby increasing our earnings per share. We also have strong core deposits, with 34.5% of our deposits in noninterest-bearing accounts," stated Zalman.
"I would like to thank all our customers, associates, directors, and shareholders for helping build such a successful bank," concluded Zalman.
Net income was $130.1 million for the three months ended December 31, 2024 compared with $95.5 million for the same period in 2023, an increase of $34.6 million or 36.2%. Net income per diluted common share was $1.37 for the three months ended December 31, 2024 compared with $1.02 for the same period in 2023, an increase of 34.3%. The changes were primarily due to an increase in net interest income and a decrease in the Federal Deposit Insurance Corporation ("FDIC") special assessment, partially offset by an increase in salaries and benefits.
At December 31, 2024, Prosperity had $39.567 billion in total assets, an increase of $1.019 billion or 2.6%, compared with $38.548 billion at December 31, 2023. Loans were $22.149 billion at December 31, 2024, an increase of $968.7 million or 4.6%, compared with $21.181 billion at December 31, 2023, primarily due to the Merger.
Nonperforming assets totaled $81.5 million or 0.23% of quarterly average interest-earning assets at December 31, 2024 compared with $72.7 million or 0.21% of quarterly average interest-earning assets at December 31, 2023 and $89.9 million or 0.25% of quarterly average interest-earning assets at September 30, 2024.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity's management may contain, forward-looking statements within the meaning of the federal securities laws. Many of these statements are based on current expectations, assumptions, estimates, and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements are not guarantees of future performance and are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict.
For more information, visit Prosperity's website at www.prosperitybankusa.com.