Prosperity Bancshares Reports $479.4 Million Net Income for Fiscal Year 2024

Prosperity Bancshares, Inc. reported a net income of $479.4 million for the fiscal year ending December 31, 2024, reflecting an increase from $419.3 million in 2023. This translates to diluted earnings per share of $5.05, up from $4.51 the previous year. The growth in profitability was primarily driven by a rise in net interest income, which reached $1.03 billion, a 7.3% increase from $956.4 million in 2023. The company also benefited from a decrease in the FDIC special assessment and a gain from the exchange of Visa Class B-1 stock, contributing positively to its financial performance.

The company’s total assets increased to $39.57 billion, a 2.6% rise from $38.55 billion in 2023. Total deposits also grew by 4.4% to $28.38 billion, compared to $27.18 billion in the prior year. The loan portfolio expanded to $22.15 billion, marking a 4.6% increase from $21.18 billion in 2023. The growth in loans was supported by the recent mergers with Lone Star State Bancshares and First Bancshares of Texas, which added significant assets and deposits to the company’s balance sheet.

In terms of operational developments, Prosperity Bancshares completed two significant mergers in 2023 and 2024. The merger with Lone Star State Bancshares, effective April 1, 2024, added five banking offices and approximately $1.38 billion in assets. The acquisition of First Bancshares, completed on May 1, 2023, brought in 16 banking offices and $2.14 billion in assets. These strategic moves are part of the company’s ongoing efforts to expand its market presence and enhance its service offerings across Texas and Oklahoma.

As of December 31, 2024, the company employed 3,916 full-time equivalent associates, an increase from 3,850 in 2023, reflecting the integration of new staff from the recent mergers. The company’s efficiency ratio improved to 48.43% in 2024 from 50.26% in 2023, indicating better operational efficiency. The company also maintained a strong capital position, with a common equity tier 1 capital ratio of 16.42%, significantly above the regulatory minimum requirements.

Looking ahead, Prosperity Bancshares aims to continue its growth trajectory through both internal expansion and strategic acquisitions. The company plans to focus on increasing its loan volume while maintaining sound asset quality and efficiency. Management remains optimistic about the company’s ability to navigate market conditions and capitalize on growth opportunities, although it acknowledges potential risks related to economic fluctuations and regulatory changes.