1. PB's EPS rose 21.4% year-over-year to $1.42. 2. Net income increased 21.1% to $135.2 million in Q2 2025. 3. Loans grew by $219.8 million, lending strength observed. 4. Nonperforming assets remain low, enhancing asset quality. 5. Merger with American Bank Holding Corporation announced to strengthen market position.
Strong earnings growth and positive lending trends historically correlate with stock price increases. The planned merger could enhance market competitiveness and create operational synergies.
Q2 results reflect significant operational improvements, and the merger announcement is a critical strategic move likely to impact investor confidence and institutional interest.
The merger's benefits and increased market presence will unfold over months to years, potentially improving PB's valuation in the long run.
HOUSTON, July 23, 2025 /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB) ("Prosperity Bancshares"), the parent company of Prosperity Bank® (collectively, "Prosperity"), reported net income of $135.2 million for the quarter ended June 30, 2025 compared with $111.6 million for the same period in 2024. Net income per diluted common share was $1.42 for the quarter ended June 30, 2025 compared with $1.17 for the same period in 2024. The annualized return on second quarter average assets was 1.41%. Additionally, loans increased $219.8 million during the second quarter of 2025. Nonperforming assets remain low at 0.33% of second quarter average interest-earning assets.
"I am excited to share that our bank continues to grow, with double digit increases in net income and earnings per share compared with the second quarter of 2024. Our net interest margin also improved to 3.28%, a 24 basis point increase compared with the second quarter of 2024 as our interest-bearing assets continue to reprice. Loans grew $219.8 million during the second quarter of 2025, and we continue to see cautious enthusiasm from our customers. As mentioned in my previous comments, these are the results we expected, and these tailwinds should continue to be positive over the next 12 and 24 months," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.
"I am proud to announce that we entered into a definitive agreement with American Bank Holding Company in Corpus Christi to merge. We have followed American Bank closely for more than two decades and have tremendous respect for the bank and for the people that have contributed to its success. Our banks have a complementary footprint, and we are familiar with and remain committed to the communities that American Bank serves, including with both financial products and community support. This combination will strengthen our presence and operations in South Texas and surrounding areas and enhances our presence in Central Texas, including in San Antonio, a highly desirable, high growth area," stated Zalman.
"Texas and Oklahoma continue to shine as more people and companies move to the states because of the business-friendly political structure and no state income tax. Texas was recently rated as the second-best state for business in 2025 by CNBC," continued Zalman.
"Thank you to our customers, shareholders and associates that make all of this possible," concluded Zalman.
Net income was $135.2 million for the three months ended June 30, 2025 compared with $111.6 million for the same period in 2024, an increase of $23.6 million or 21.1%. Net income per diluted common share was $1.42 for the three months ended June 30, 2025 compared with $1.17 for the same period in 2024, an increase of 21.4%. The changes were primarily due to an increase in net interest income, a decrease in merger related provision and expenses and lower regulatory assessments and FDIC insurance, partially offset by a decrease in net gain on sale or write-up of securities.
Prosperity had $38.417 billion in total assets at June 30, 2025 compared with $39.762 billion at June 30, 2024 and $38.765 billion at March 31, 2025.
Loans were $22.197 billion at June 30, 2025, a decrease of $123.4 million compared with $22.321 billion at June 30, 2024.
Prosperity Bancshares declared a third quarter 2025 cash dividend of $0.58 per share to be paid on October 1, 2025, to all shareholders of record as of September 15, 2025.
On July 18, 2025, Prosperity Bancshares and American Bank Holding Corporation jointly announced the signing of a definitive merger agreement. Under the terms of the merger agreement, Prosperity will issue 4,439,981 shares of common stock for all outstanding shares of American common stock, valuing the total consideration at approximately $321.5 million.
Prosperity's management will host a conference call on Wednesday, July 23, 2025, at 11:30 a.m. Eastern Time to discuss Prosperity's second quarter 2025 earnings. Participants can dial in at 877-883-0383 for domestic participants, or 412-902-6506 for international participants. The participant elite entry number is 9928869.