Prosperity Bancshares (PB) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $130.2 million, up between 16.1% and 18% year-over-year, with diluted EPS of $1.37.

• Total assets were $38.77 billion, loans $21.98 billion, and deposits $28.03 billion as of March 31, 2025.

• Recognized by Forbes, Money, and Newsweek as a top regional bank in 2025.

• Completed the Lone Star State Bancshares acquisition, adding $1.08 billion in loans and $1.09 billion in deposits.

• Maintains a strong presence in Texas and Oklahoma, with 284 full-service locations and leading deposit market share in Texas.

Financial highlights

• Net interest income before provision was $265.4 million, up 11.4% year-over-year, with net interest margin rising to 3.14%, up 35 bps.

• Noninterest income grew 6.3% year-over-year to $41.3 million, led by higher service charges and fees.

• Noninterest expense increased 3.3% to $140.3 million, mainly due to higher salaries and merger-related costs.

• Efficiency ratio improved to 45.71% from 49.07% year-over-year.

• Declared a $0.58 per share cash dividend for Q2 2025.

Outlook and guidance

• Management expects net interest margin to continue improving as assets reprice higher.

• Loan growth guidance remains in the low single digits for 2025, with optimism for improvement later in the year.

• Noninterest expense for Q2 2025 expected in the $141–$144 million range.

• Warehouse lending balances expected to average $1.05–$1.1 billion in Q2 2025.

• Positioned in high-growth Texas and Oklahoma markets, supporting future expansion.