Prosperity Bancshares Q3 net income rises on mergers, dividend raised

By Reuters News


Overview

  • US regional bank's Q3 net income rose yr/yr, driven by recent bank mergers

  • Q3 diluted EPS fell yr/yr due to higher merger-related expenses

  • Company raised quarterly dividend 6.7% and repurchased 457,000 shares in Q3


Outlook

  • Company did not provide specific financial guidance for future quarters or the full year


Result Drivers

  • MERGERS - Prosperity said Q3 results were primarily driven by the impact of three recent bank mergers

  • NET INTEREST INCOME - Co attributed higher net interest income and margin to the Mergers, asset repricing and lower borrowing costs

  • NONINTEREST EXPENSES - Q3 expenses rose mainly due to merger-related costs, higher salaries and benefits, and additional expenses from acquired banks


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$1.18

Q3 Net Income

$141.46 mln

Q3 Net Interest Income

$442.98 mln

Q3 Net Interest Margin

3.73%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for Prosperity Bancshares, Inc. is $80.00, about 14.9% above its October 27 closing price of $69.64

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago


Reuters Recommended Reads

  • Oct 27 - UMB Financial Q3 profit rises on record loans

  • Oct 27 - First Financial Bancorp Q3 EPS rises 11% to record

  • Oct 27 - NBT Bancorp Q3 profit rises on loan growth, higher net interest income


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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