The chart below shows how PB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PB sees a -3.32% change in stock price 10 days leading up to the earnings, and a +0.63% change 10 days following the report. On the earnings day itself, the stock moves by +1.48%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Net Income Surge: Net income for Q4 2024 was $130 million, a 36% increase from Q4 2023, driven by higher net interest income and a decrease in FDIC special assessments.
Earnings Per Share Increase: Diluted earnings per share rose to $1.37 for Q4 2024, up 34% from $1.02 in the same quarter last year, reflecting strong financial performance.
Net Interest Income Increase: Net interest income for the full year 2024 increased by $7.01 million, reaching $102.6 million, indicating effective asset repricing strategies.
Deposit Growth Overview: Deposits grew by $120 million or 4.4% year-over-year, totaling $2.84 billion at the end of Q4 2024, showcasing a strong core deposit base.
Operational Efficiency Improvement: The efficiency ratio improved to 46.1% in Q4 2024, down from 55.6% in Q4 2023, highlighting enhanced operational efficiency.
Negative
Loan Outstanding Decrease: Loans outstanding at Dec. 31, 2024 were approximately $2,220,000,000, a decrease of $88,000,000 compared with Dec. 31, 2023 when excluding the loans acquired in the merger, indicating flat loan growth for 2024.
Non-Interest Income Decline: Non-interest income for the three months ended Dec. 31, 2024 was $39,800,000, a decrease from $41,100,000 for the quarter ended Sept. 30, 2024, reflecting a decline in fee-based revenue.
Non-Interest Expense Increase: Non-interest expense for the three months ended Dec. 31, 2024 was $14,150,000, an increase from $14,030,000 for the quarter ended Sept. 30, 2024, primarily due to a FDIC special assessment of $1,990,000.
Efficiency Ratio Decline: The efficiency ratio was 46.1% for the three months ended Dec. 31, 2024, indicating a slight deterioration compared to 46.9% for the quarter ended Sept. 30, 2024, suggesting increased operational inefficiencies.
Net Charge-Offs Analysis: Net charge-offs for the three months ended Dec. 31, 2024 were $2,592,000, compared to $5,455,000 for the quarter ended Sept. 30, 2024, indicating ongoing credit quality concerns despite a decrease.
Earnings call transcript: Prosperity Bancshares Q4 2024 beats estimates
PB.N
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