In This Article:
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Net Income: $130 million for Q4 2024, up 36% from $95 million in Q4 2023.
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Earnings Per Share (EPS): $1.37 for Q4 2024, up 34% from $1.02 in Q4 2023.
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Net Interest Income: $267.8 million for Q4 2024, up $30.8 million from $237 million in Q4 2023.
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Net Interest Margin: 3.05% for Q4 2024, up from 2.75% in Q4 2023.
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Efficiency Ratio: 46% for Q4 2024.
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Loans: $22.2 billion at December 31, 2024, up 4.6% from $21.2 billion at December 31, 2023.
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Deposits: $28.4 billion at December 31, 2024, up 4.4% from $27.2 billion at December 31, 2023.
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Non-Interest Income: $39.8 million for Q4 2024.
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Non-Interest Expense: $141.5 million for Q4 2024.
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Non-Performing Assets: $81.5 million at December 31, 2024.
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Allowance for Credit Losses: $389 million at December 31, 2024.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Prosperity Bancshares Inc (NYSE:PB) reported a significant increase in net income, reaching $130 million for Q4 2024, up 36% from the same period in 2023.
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The net interest margin improved to 3.05% in Q4 2024, a 30 basis point increase from 2.75% in Q4 2023.
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The company announced a stock repurchase program, allowing for the acquisition of up to 5% of outstanding common stock over a one-year period.
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Deposits increased by $1.2 billion or 4.4% year-over-year, indicating strong deposit growth.
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Prosperity Bancshares Inc (NYSE:PB) maintains a strong capital position, enabling potential mergers and acquisitions, stock repurchases, or funding organic growth without needing additional capital.
Negative Points
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Loan growth was essentially flat in 2024, excluding the impact of the merger with Lone Star Bank.
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Non-performing assets increased to $81.5 million at the end of 2024, up from $72 million at the end of 2023.
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The fair value loan income decreased from $4.8 million in Q3 2024 to $3.6 million in Q4 2024.
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Non-interest income decreased to $39.8 million in Q4 2024 from $41.1 million in Q3 2024.
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The company faces challenges in achieving robust loan growth, with expectations set for low to mid-single-digit growth in 2025.
Q & A Highlights
Q: Can you update us on the net interest margin (NIM) trajectory and what your models are indicating for the future? A: David Zalman, CEO, stated that they are on track with previous projections, expecting the NIM to be around 3.25% to 3.30% on average for 2025, with a slight increase by the end of the year. CFO Asylbek Osmonov confirmed this, noting that the projections are based on static balance assumptions without growth.