Prosperity Bancshares Tops View

Prosperity Bancshares Inc.'s (PRSP - Snapshot Report) first-quarter earnings came in at 55 cents per share, topping the consensus by a penny. The holding company of Prosperity Bank witnessed 11% year-over-year growth in net income to $25.5 million during the quarter.

Investors have welcomed the news with the stock gaining more than 6% today on higher-than-usual volume of almost 1.2 million, compared to average volume of about 757,000.

Net Interest income grew 42.5% year-on-year during the quarter to $74.1 million, primarily due to robust growth in average earning assets.

Meanwhile, non-interest income increased 18.4% year-on-year to $15.02 million boosted by higher service charges on certain deposit accounts.

However, Prosperity Bancshares' provision for credit losses increased to $6.2 million during the quarter compared to $1.2 million a year ago.

Four out of 15 analysts reduced estimates for the full-year over the past month, sending the consensus lower by 2 cents to $2.17 a share.

PRSP is a Zacks #3 Rank ("Hold") stock.