NYSE$PB

Prosperity Bancshares Inc. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported an increase in earnings per share and net income for the first quarter of 2021.

Prosperity Bancshares, Inc. reported a net income of $133.3 million for the quarter ended March 31, 2021, compared to $130.8 million for the same period in 2020. The net income per diluted common share was $1.44, and the annualized return on average assets was 1.54%. Deposits increased by $1.403 billion during the quarter, and nonperforming assets remained low at 0.15% of average interest-earning assets.

  • First quarter earnings per share (diluted) of $1.44, an increase of 3.6% compared to the first quarter 2020
  • First quarter net income of $133.3 million
  • Deposits increased $1.403 billion or 5.1% (20.5% annualized) during the first quarter 2021
  • Nonperforming assets remain low at 0.15% of first quarter average interest-earning assets

Headline financials

Total Revenue

$289M

Previous: $290M-0.6%
EPS (adj)

$1.44

Previous: $1.39+3.6%
NPA / Avg IE Assets

0.1%

No prior period
Efficiency Ratio

41.3%

Previous: 42.9%-3.8%
ROAA

1.5%

Previous: 1.7%-7.8%
Capital Expenditures

-$8.02M

Previous: -$6.33M-26.7%
Free Cash Flow

$125M

Previous: $125M+0.6%
Net Income

$133M

Previous: $131M+1.9%
Operating Income

$256M

Previous: $238M+7.7%
Gross Profit

$289M

Previous: $290M-0.6%
Cash & Equivalents

$1.95B

Previous: $381M+410.5%
Total Assets

$35.6B

Previous: $31.7B+12.0%
Stock-Based Comp

$3.41M

Previous: $3.34M+2.0%

Revenue & EPS history

Prosperity · Revenue · Quarterly

$289M

Q1 2021-0.6%vs Q1 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Prosperity · $37.6M total across 9 segments · Q2 2022

  • Card Income
    $8.88M
  • NSF Fees
    $8.48M
  • Other Noninterest Income
    $7.17M
  • Deposit Charges
    $6.37M
  • Trust Income
    $2.88M
  • BOLI Income
    $1.29M
  • Net Gain/Loss on Assets
    $1.11M
  • Brokerage Income
    $917K
  • Mortgage Income
    $502K

Forward guidance

Texas and Oklahoma both have bright futures with the Dallas Federal Reserve projecting over 6% job growth in Texas for 2021 and Texas is expected to outperform most of the other states for the next three years. Oklahoma is also projected to have population growth for 2021 and has seen expansion of many of the large businesses operating in the state, including Boeing, American Airlines, Costco and Amazon.

Tailwinds

  • Texas now has the fastest-growing population in the nation.
  • The Dallas Federal Reserve is projecting over 6% job growth, meaning over 700,000 new jobs, in Texas for 2021.
  • Texas is expected to outperform most of the other states for the next three years.
  • Companies continue to move to Texas, with HP and Oracle announcing headquarter moves and other companies, such as Tesla, announcing a major expansion into Texas.
  • Consumer spending in Oklahoma is above early 2020 levels and retail job additions and new housing permits are higher than the average U.S. rate

Headwinds

  • Significant economic uncertainties that have had, and could continue to have, an adverse impact on Prosperity’s operating income, financial condition and cash flows
  • Office building loans are being carefully monitored
  • Hospitality loans are being carefully monitored
  • Oil and gas loans are being carefully monitored
  • The extent to which the COVID-19 pandemic will impact Prosperity’s operations and financial results during 2021 cannot be reasonably or reliably estimated at this time

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.7%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+2.4%

Avg return

30 days after

57%

39 / 68 earnings

Positive

+15.6%

Q4 2015

Best reaction

-7.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%-1.4%-0.7%
Q4 2025-7.4%-4.4%-3.5%
Q3 2025+2.7%+5.2%+8.6%
Q1 2025+0.2%+0.8%+3.9%
Q4 2024-0.7%-1.8%-4.0%
Q3 2024+1.3%+2.1%+16.1%
Q2 2024+4.3%+3.2%+5.4%
Q1 2024+2.3%-0.2%-1.0%
Q4 2023-0.1%+2.4%-3.7%
Q3 2023+8.9%+7.8%+17.4%
Q2 2023+1.4%+3.3%-8.2%
Q1 2023+5.7%+3.9%-1.4%
Q4 2022+2.7%+1.9%+1.8%
Q3 2022-5.1%-3.3%+2.9%
Q2 2022+0.1%+2.4%+0.0%
Q1 2022+2.9%+3.1%+11.6%
Q4 2021-2.8%-3.5%-1.9%
Q3 2021-1.2%+3.1%-4.2%
Q2 2021+2.6%-1.6%+4.2%
Q1 2021-1.9%-3.6%-2.6%
Q4 2020-0.5%-0.1%+7.3%
Q3 2020-1.2%+3.1%+16.8%
Q2 2020+1.7%+0.6%+0.4%
Q1 2020+10.6%+7.6%+20.7%
Q4 2019+4.9%+5.4%-4.6%
Q3 2019+2.4%+2.4%-2.4%
Q2 2019+2.5%+1.7%-6.5%
Q1 2019-0.2%+2.3%-5.0%
Q4 2018+0.1%+3.2%+5.2%
Q3 2018+0.3%+3.6%+10.4%
Q2 2018-1.0%+0.6%+7.1%
Q1 2018-4.7%-5.3%-2.6%
Q4 2017+1.0%+1.0%+1.4%
Q3 2017+3.7%+1.5%+0.3%
Q2 2017-3.9%-2.8%-6.2%
Q1 2017-2.0%-3.6%-9.0%
Q4 2016+3.4%-0.5%+1.8%
Q3 2016-2.0%-2.3%+15.7%
Q2 2016-3.5%-7.2%+1.0%
Q1 2016+0.0%
Q4 2015+15.6%
Q3 2015+2.8%
Q2 2015-4.4%
Q1 2015-3.0%
Q4 2014+1.3%
Q3 2014+1.7%
Q2 2014-3.0%
Q1 2014-2.4%
Q4 2013+4.9%
Q3 2013-2.6%
Q2 2013+0.6%
Q1 2013+0.5%
Q4 2012-1.9%
Q3 2012+6.4%
Q2 2012-1.2%
Q1 2012+0.5%
Q4 2011+3.2%
Q3 2011-4.3%
Q2 2011+2.9%
Q1 2010+1.7%
Q1 2011+1.2%
Q4 2010-1.0%
Q4 2008-1.0%
Q4 2009-1.0%
Q3 2010+2.3%
Q3 2009+2.3%
Q2 2010-0.0%
Q2 2009-0.0%

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