Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Prosperity Bancshares, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2] Earnings Expectations - Prosperity Bancshares is expected to report earnings of $1.35 per share, reflecting a +14.4% year-over-year change, with revenues projected at $307.12 million, up 10.8% from the previous year [3] - The earnings report is scheduled for April 23, 2025, and could influence stock movement based on whether results exceed or fall short of expectations [2] Estimate Revisions - The consensus EPS estimate has been revised down by 0.14% over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Prosperity Bancshares is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.53% [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8] - Prosperity Bancshares has a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11] Historical Performance - In the last reported quarter, Prosperity Bancshares exceeded the expected earnings of $1.33 per share by delivering $1.37, resulting in a surprise of +3.01% [12] - The company has beaten consensus EPS estimates in each of the last four quarters [13] Industry Comparison - BOK Financial, a peer in the Zacks Banks - Southwest industry, is expected to report earnings of $2.01 per share, with a year-over-year change of +5.2% and revenues of $518.5 million, up 13.9% [17] - BOK Financial's consensus EPS estimate has remained unchanged, but a lower Most Accurate Estimate has resulted in a negative Earnings ESP of -0.50%, combined with a Zacks Rank of 4, making it difficult to predict an earnings beat [18]

Financial Performance - The Company reported total assets of $1.38 billion, total loans of $1.07 billion, and total deposits of $1.24 billion from the recent acquisition of Lone Star State Bancshares, Inc.[17] - The merger with First Bancshares of Texas, Inc. resulted in total assets of $2.14 billion, total loans of $1.65 billion, and total deposits of $1.71 billion as of March 31, 2023[19] - Total loans increased to $22.15 billion as of December 31, 2024, up by $968.7 million or 4.6% from $21.18 billion at December 31, 2023[37] - The Company declared quarterly dividends aggregating $2.26 per share for 2024, compared to $2.21 per share for 2023[198] - The Company repurchased approximately 1.2 million shares of its common stock at an average price of $60.35 per share during the year ended December 31, 2024[205] Operational Efficiency - The Company's average cost of funds was 1.87%, and the average cost of deposits was 1.47% for the year ended December 31, 2024[31] - The Company plans to maintain stringent cost control practices to enhance operational efficiency[39] - The Company is focusing on cross-selling efforts to increase product offerings to existing customers[40] - The Company has maintained profitability every year since its inception, including during adverse economic conditions in Texas and Oklahoma[15] Regulatory Compliance - Regulatory compliance is critical, with the Company subject to extensive federal and state regulations impacting its operations[43] - The Federal Reserve Board requires bank holding companies to act as a source of strength for their banking subsidiaries[53] - The Company must adhere to limitations on dividends and share repurchases as mandated by federal and state laws[48] - The Company is committed to maintaining sound banking practices to avoid regulatory penalties and ensure financial stability[57] - The Company and the Bank are required to maintain a minimum leverage ratio of 4%[69] Capital and Risk Management - As of December 31, 2024, the Company's CET1 ratio to risk-weighted assets was 16.42%, Tier 1 capital to risk-weighted assets was 16.42%, total capital to risk-weighted assets was 17.67%, and Tier 1 capital to average quarterly assets (leverage ratio) was 10.82%[75] - The capital conservation buffer required is 2.5% above each minimum risk-based capital ratio to absorb losses during economic stress[70] - The Company and the Bank's regulatory capital ratios were above the applicable well-capitalized standards and met the capital conservation buffer in 2024[75] - The Company maintains an allowance for credit losses to cover estimated losses in its loan portfolio, but this may not be sufficient if actual credit losses exceed expectations[115] Cybersecurity and Technology - The Company’s cybersecurity risk management program is designed to protect sensitive data and mitigate risks across various operational areas[182] - The Company has not experienced any cybersecurity incidents that materially impacted its business strategy or financial condition to date[187] - The Company is subject to evolving cybersecurity regulations, with significant penalties for non-compliance[98] - The SEC requires disclosure of material cybersecurity incidents within four business days, impacting the Company's reporting obligations[99] - Cybersecurity threats are evolving, and the Company's measures to prevent cyberattacks may not fully mitigate risks, potentially leading to significant financial and reputational damage[147] Market and Competitive Environment - The banking business remains highly competitive, with the Company emphasizing customer service and technology to maintain its market position[42] - The Company faces intense competition from various financial institutions, which could adversely affect its growth and profitability[178] - The market for acquisitions remains highly competitive, and the Company may struggle to find suitable candidates for growth, impacting its strategic objectives[138] Economic and Credit Risks - The Company's profitability is significantly influenced by local economic conditions in Texas and Oklahoma, where slower population or income growth could adversely affect its financial performance[117] - The Company faces increased credit risks associated with commercial real estate loans, which typically have larger balances and are more sensitive to economic conditions[121] - The Company is exposed to risks from geopolitical events and economic conditions, which could impact borrowers' ability to repay loans and the overall credit quality of its portfolio[112] - The Company's loan portfolio, particularly in energy lending, is vulnerable to declines in oil and natural gas prices, which could lead to increased loan delinquencies[124] Environmental and Social Governance (ESG) - Climate change poses immediate and long-term risks, including operational, credit, and reputational risks, which could adversely affect the Company's financial condition[165] - Increasing scrutiny regarding Environmental, Social, and Governance (ESG) practices may impose additional costs and regulatory risks on the Company[168] Legal and Litigation Risks - The Company is subject to claims and litigation related to intellectual property, which could result in substantial damages and increased operating expenses[159] - Legal actions regarding fiduciary responsibilities may lead to significant financial liabilities and adversely affect market perception and customer demand[161]

Group 1 - Zacks Premium offers various tools to help investors become more confident and informed, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] - The Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] Group 2 - Each stock is rated from A to F based on its value, growth, and momentum characteristics, with A being the highest score indicating a better chance of outperforming [3] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales [3][4] - The Growth Score assesses a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score evaluates trends in stock price and earnings outlook, using factors like one-week price change and monthly earnings estimate changes [5] Group 3 - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum, serving as a useful indicator alongside the Zacks Rank [6] - The Zacks Rank utilizes earnings estimate revisions to simplify the process of building a winning portfolio, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988, outperforming the S&P 500 [7][8] Group 4 - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for the highest probability of success [10] - Stocks with a 3 (Hold) rank should also have Style Scores of A or B to maximize upside potential [10][11] Group 5 - Prosperity Bancshares, Inc. is a financial holding company based in Houston, TX, primarily deriving revenue from its bank subsidiary, Prosperity Bank [12] - Prosperity Bancshares has a Zacks Rank of 3 (Hold) and a VGM Score of B, with a Value Style Score of B due to a forward P/E ratio of 13.37, making it attractive for value investors [13] - The company has seen upward revisions in earnings estimates, with the Zacks Consensus Estimate increasing by $0.02 to $5.82 per share for fiscal 2025, and an average earnings surprise of 2.6% [13][14]

Company Overview - Prosperity Bancshares, Inc. is a financial holding company based in Houston, TX, formed in 1983, primarily deriving its revenues from its bank subsidiary, Prosperity Bank [12]. Zacks Rank and Style Scores - Prosperity Bancshares holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a solid position in the market [13]. - The company has a Value Style Score of B, supported by attractive valuation metrics, including a forward P/E ratio of 13.84, which may appeal to value investors [13]. Earnings Estimates - In the last 60 days, two analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing to $5.80 per share [13]. - Prosperity Bancshares has an average earnings surprise of 2.6%, suggesting a positive trend in earnings performance [13]. Investment Consideration - With a solid Zacks Rank and strong Value and VGM Style Scores, Prosperity Bancshares is recommended for investors' consideration [14].

Core Viewpoint - Prosperity Bancshares Inc. reported strong fourth-quarter 2024 results, with adjusted earnings per share (EPS) of $1.37, exceeding expectations and showing year-over-year growth [1][3]. Financial Performance - Adjusted total revenues for the fourth quarter were $307 million, a 12.2% increase from the prior-year quarter, surpassing the Zacks Consensus Estimate of $302.8 million [4]. - For the full year 2024, adjusted total revenues reached $1.18 billion, up 6.4% year over year, matching the Zacks Consensus Estimate [4]. - Net income available to common shareholders for the fourth quarter was $130 million, up from $95.5 million in the year-ago quarter [2]. Income and Expenses - Net interest income (NII) was $267.8 million, reflecting a 13% increase year over year, while the net interest margin (NIM) expanded by 30 basis points to 3.05% [5]. - Non-interest income was $39.8 million, an 8.9% increase, driven by growth across all components [5]. - Non-interest expenses decreased by 7% to $141.5 million, attributed to lower occupancy and equipment charges, among other factors [6]. Credit Quality - Total non-performing assets rose to $81.5 million from $72.7 million in the prior-year quarter, with the allowance for credit losses to total loans ratio increasing to 1.59% [8]. - Net charge-offs were significantly lower at $2.6 million compared to $19.1 million in the year-ago period [8]. Capital Ratios and Profitability - The common equity tier 1 capital ratio improved to 16.42%, up from 15.54% in the prior year [10]. - The annualized return on average assets increased to 1.31% from 0.98%, and the return on average common equity rose to 7% from 5.39% [10]. Share Repurchase Plan - Prosperity Bancshares did not repurchase any shares during the reported quarter but announced a new plan to buy back up to 5% or 4.8 million shares, set to expire on January 21, 2026 [11]. Strategic Outlook - The company's focus on strategic acquisitions is expected to enhance its long-term financial strength, supported by a solid deposit mix and improving fee income [12].

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Prosperity Bancshares (PB) Q4 2024 Earnings Call January 29, 2025 11:30 AM ET Company Participants Charlotte Rasche - Executive VP & General CounselDavid Zalman - Senior Chairman & CEOAsylbek Osmonov - Chief Financial OfficerTim Timanus - ChairmanKevin Hanigan - President & Chief Operating OfficerJon Arfstrom - Managing Director - Associate Director of US ResearchCatherine Mealor - Managing Director - Equity ResearchMatt Olney - Managing DirectorJon Rau - Vice President Conference Call Participants Manan Go ...

Financial Performance - Prosperity Bancshares reported revenue of $307.61 million for the quarter ended December 2024, reflecting a 12.5% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $1.37, up from $1.19 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $302.8 million by 1.59% [1] - EPS also surpassed the consensus estimate of $1.33 by 3.01% [1] Key Metrics - Net Interest Margin (Tax Equivalent Basis) was 3.1%, matching the average estimate from six analysts [4] - Efficiency Ratio stood at 46.1%, better than the average estimate of 46.7% [4] - Net charge-offs to average loans were 0.1%, consistent with the average estimate [4] - Average balance of total interest-earning assets was $35.08 billion, exceeding the estimated $34.67 billion [4] - Total nonperforming assets were reported at $81.54 million, lower than the estimated $89.39 million [4] - Total nonperforming loans were $75.84 million, compared to the estimated $83.52 million [4] - Tier 1 Leverage Capital Ratio was 10.8%, slightly below the average estimate of 10.9% [4] - Tier 1 Risk-based Capital Ratio was 16.4%, above the estimated 15.8% [4] - Total Risk-based Capital Ratio was 17.7%, exceeding the estimated 17.2% [4] - Total Noninterest Income was $39.84 million, higher than the average estimate of $37.20 million [4] - Net Interest Income was $267.77 million, surpassing the average estimate of $265.02 million [4] - Net Interest Income (Tax Equivalent Basis) was $268.54 million, compared to the average estimate of $267.12 million [4] Stock Performance - Shares of Prosperity Bancshares have returned +6.2% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Prosperity Bancshares (PB) came out with quarterly earnings of $1.37 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $1.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.01%. A quarter ago, it was expected that this financial holding company would post earnings of $1.30 per share when it actually produced earnings of $1.34, delivering a surprise of 3.08%.Over the last four qu ...

PRESS RELEASE For more information contact: Prosperity Bancshares, Inc. Cullen Zalman Prosperity Bank Plaza Executive Vice President – Banking and Corporate Activities 4295 San Felipe 281.269.7199 Houston, Texas 77027 cullen.zalman@prosperitybankusa.com Exhibit 99.1 ® PROSPERITY BANCSHARES, INC. ® REPORTS FOURTH QUARTER 2024 EARNINGS HOUSTON, January 29, 2025. Prosperity Bancshares, Inc. ® (NYSE: PB), the parent company of Prosperity Bank ® (collectively, "Prosperity"), reported net income of $130.1 million ...