Prosperity Bancshares, Inc. (NYSE:PB) released its second quarter financials on Wednesday, reporting a modest earnings beat but missing on revenue expectations.
The Texas-based bank posted earnings per share of $1.42 for the quarter, just ahead of the $1.41 consensus estimate from analysts. However, total revenue reached $310.7 million, coming in below the projected $314.98 million. Following the release, the stock dipped 0.81% in pre-market trading.
Net income surged 21.1% year-over-year to $135.2 million, supported by an expansion in net interest margin, which rose by 24 basis points to 3.18%. The bank’s annualized return on average assets stood at 1.41%, while return on average tangible common equity hit 13.44%.
Lending activity also picked up during the quarter, with total loans increasing $219.8 million, marking a 1.0% rise compared to the first quarter. Credit quality remained stable, as nonperforming assets accounted for just 0.33% of 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,” said David Zalman, Prosperity’s Senior Chairman and CEO. “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.”
The bank reported a robust common equity tier 1 capital ratio of 17.10%. Noninterest-bearing deposits totaled $9.4 billion, making up 34.3% of overall deposits.
In strategic developments, Prosperity revealed it has entered into a definitive merger agreement with American Bank Holding Corporation, based in Corpus Christi. The deal is expected to reinforce Prosperity’s footprint across South Texas and support its expansion into Central Texas, particularly the San Antonio market.
Prosperity Bancshares stock price
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