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Prosperity Bancshares Q4 Earnings Beat on Higher NII & Fee Income
PBProsperity Bancshares(PB) ZACKS·2025-01-30 16:16

Core Viewpoint - Prosperity Bancshares Inc. reported strong fourth-quarter 2024 results, with adjusted earnings per share (EPS) of 1.37,exceedingexpectationsandshowingyear−over−yeargrowth[1][3].FinancialPerformance−Adjustedtotalrevenuesforthefourthquarterwere1.37, 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 302.8million[4].−Forthefullyear2024,adjustedtotalrevenuesreached302.8 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 130million,upfrom130 million, up from 95.5 million in the year-ago quarter [2]. Income and Expenses - Net interest income (NII) was 267.8million,reflectinga13267.8 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 141.5million,attributedtoloweroccupancyandequipmentcharges,amongotherfactors[6].CreditQuality−Totalnon−performingassetsroseto141.5 million, attributed to lower occupancy and equipment charges, among other factors [6]. Credit Quality - Total non-performing assets rose to 81.5 million from 72.7millionintheprior−yearquarter,withtheallowanceforcreditlossestototalloansratioincreasingto1.5972.7 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].