- Prosperity Bancorp’s third-quarter earnings per share (EPS) were $1.34, exceeding the estimate of $1.31 and last year’s $1.20.
- The net interest margin on a taxable-equivalent basis was 2.95%, up from 2.72% the previous year.
- Net interest income reached $261.7 million, marking a 9.3% increase year-over-year, though slightly below the estimate of $263.4 million.
- There were no provisions for credit losses, aligning with the previous year, and contrasting with an expected provision of $0.31 million.
- The company’s tangible capital increased by $218 million from September 2023 to September 2024.
- Prosperity retained this amount of capital after distributing $212 million in dividends and repurchasing $75 million of common stock, highlighting stable earnings.
- It was noted that in 2023, approximately 473,453 people moved to Texas, which is about 40,000 people per month, or 1,300 people per day, according to US Census Bureau data.
- Stock analyst recommendations include 11 buys, 4 holds, and 1 sell.
A look at Prosperity Bancshares Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Prosperity Bancshares, Inc., the holding company for Prosperity Bank, looks promising for long-term investment based on the Smartkarma Smart Scores. With a top-notch Value score of 5, the company appears to be undervalued in the market, indicating potential for growth in stock price. A strong Dividend score of 4 signifies the company’s ability to provide consistent dividend payouts to investors, making it an attractive option for those seeking regular income streams. Additionally, a Momentum score of 5 suggests that Prosperity Bancshares is displaying positive market trends and investor sentiment.
While Growth and Resilience scores are at 3, indicating moderate performance in these areas, the overall outlook for Prosperity Bancshares seems quite favorable. This is enhanced by the company’s strategic focus in the greater Houston metropolitan area and neighboring counties in Texas, showcasing a solid foundation for sustained growth and stability in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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