Prosperity Bancshares Reports 21.1% Increase in Q2 Net Income to $135.2 Million

Prosperity Bancshares, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $135.2 million, a 21.1% increase from $111.6 million in the same period last year. For the first half of 2025, net income reached $265.4 million, up 19.5% from $222.0 million in the prior year. The earnings per diluted share for the quarter were $1.42, compared to $1.17 in the previous year, while the six-month figure rose to $2.79 from $2.34. The increase in profitability was attributed to higher net interest income, reduced merger-related provisions, and lower regulatory assessments, despite a decline in gains from securities sales.

Total assets for Prosperity Bancshares decreased to $38.42 billion as of June 30, 2025, down from $39.57 billion at the end of 2024. Total loans increased slightly to $22.20 billion, a 0.2% rise from $22.15 billion, while total deposits fell by 3.2% to $27.47 billion. The company’s total shareholders’ equity increased to $7.60 billion, reflecting a 2.2% rise from $7.44 billion at the end of the previous year, primarily due to retained earnings from net income.

In terms of operational developments, Prosperity Bancshares completed the merger with Lone Star State Bancshares, Inc. on April 1, 2024, which added $106.7 million in goodwill and $17.7 million in core deposit intangibles to its balance sheet. The company is also in the process of acquiring American Bank Holding Corporation, with the transaction expected to close in late 2025 or early 2026. This acquisition will further expand Prosperity's footprint in Texas, adding 18 banking offices and 2 loan production offices.

The company’s allowance for credit losses on loans was $346.1 million, or 1.56% of total loans, a slight decrease from $351.8 million or 1.59% at the end of 2024. Nonperforming assets increased to $110.5 million, representing 0.50% of total loans and other real estate, compared to 0.37% at the end of the previous year. The company reported net charge-offs of $3.0 million for the quarter, down from $4.4 million in the same quarter of 2024.

Looking ahead, Prosperity Bancshares remains focused on internal growth, operational efficiency, and strategic acquisitions to enhance its market position. The company is optimistic about its ability to navigate potential economic challenges and capitalize on growth opportunities, particularly with the upcoming merger with American Bank, which is expected to bolster its presence in key Texas markets.