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Prosperity Bancshares (PB) Reports Q2 Earnings: What Key Metrics Have to Say

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For the quarter ended June 2023, Prosperity Bancshares (PB - Free Report) reported revenue of $276.15 million, down 3.5% over the same period last year. EPS came in at $1.21, compared to $1.40 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $281.98 million, representing a surprise of -2.07%. The company delivered an EPS surprise of +1.68%, with the consensus EPS estimate being $1.19.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Prosperity Bancshares performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Efficiency Ratio: 53.21% versus 46.36% estimated by seven analysts on average.
  • Net Interest Margin (Tax Equivalent Basis): 2.73% versus 2.82% estimated by seven analysts on average.
  • Net charge-offs to average loans: 0.31% versus 0.06% estimated by six analysts on average.
  • Average balance - Total interest-earning assets: $34.83 billion versus $35.06 billion estimated by five analysts on average.
  • Tier 1 Risk-based Capital Ratio: 14.48% compared to the 15.59% average estimate based on two analysts.
  • Total Risk-based Capital Ratio: 15.51% versus the two-analyst average estimate of 16.57%.
  • Tier 1 Leverage Capital Ratio: 9.96% compared to the 10.25% average estimate based on two analysts.
  • Total nonperforming loans: $59.47 million versus $24.73 million estimated by two analysts on average.
  • Total nonperforming assets: $62.73 million versus $28.57 million estimated by two analysts on average.
  • Total Noninterest Income: $39.69 million versus $37.03 million estimated by seven analysts on average.
  • Net Interest Income: $236.46 million compared to the $245.50 million average estimate based on six analysts.
  • Net Interest Income (Tax Equivalent Basis): $237.31 million versus $247.10 million estimated by five analysts on average.
View all Key Company Metrics for Prosperity Bancshares here>>>

Shares of Prosperity Bancshares have returned +7.6% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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