Prosperity Bancshares Inc (PB, Financial) released its earnings report on October 25, 2023, revealing a net income of $112.2 million for Q3 2023, compared to $135.8 million for the same period in 2022. The diluted earnings per share stood at $1.20 for Q3 2023, compared to $1.49 for the same period in 2022. The company's deposits, excluding public funds deposits, increased by $259.9 million during Q3 2023, with no brokered deposits purchased.
Financial Performance
Prosperity Bancshares Inc (PB, Financial) reported that loans, excluding Warehouse Purchase Program loans and loans acquired in the merger, increased by $111.1 million during Q3 2023. The net interest margin was stable at 2.72%, a 1 basis point decrease from Q2 2023. Nonperforming assets remained low at 0.20% of Q3 average interest-earning assets.
Dividend Increase and Stock Repurchase Program
The board approved an increase in the dividend of 1.82% to $0.56 for Q4 2023, marking the 20th annual increase with a compounded annual growth rate of 11.5%. Under its 2023 stock repurchase program, Prosperity Bancshares repurchased approximately 1.21 million shares of its common stock at an average weighted price of $59.88 per share during the nine months ended September 30, 2023.
Merger and Acquisition
The company also announced the pending merger of Lone Star State Bancshares, Inc., Lubbock, Texas. On May 1, 2023, First Bancshares merged with Prosperity Bancshares and FirstCapital Bank of Texas, N.A. (“FirstCapital Bank”) merged with Prosperity Bank.
Company Outlook
Despite signs of an economic slowdown, the company remains optimistic about its future. The CEO, David Zalman, expressed his gratitude to all customers, shareholders, directors, and associates for their support.
