Prosperity Bancshares Q3 net income rises on mergers, dividend raised
PB•Prosperity Bancshares’ third-quarter net income rose year over year, driven by three recent bank mergers, while diluted EPS fell on higher merger-related expenses. The company raised its quarterly dividend 6.7% and repurchased 457,000 shares in the quarter.
1. Quarterly results
Prosperity Bancshares reported third-quarter net income of $141.46 million and diluted EPS of $1.18. Net interest income was $442.98 million, and net interest margin was 3.73%.
2. Mergers and expenses
The company said results were primarily driven by the impact of three recent bank mergers. Higher net interest income and margin reflected the mergers, asset repricing and lower borrowing costs; expenses rose mainly because of merger-related costs, higher salaries and benefits, and additional expenses from acquired banks.
3. Dividend and repurchases
Prosperity raised its quarterly dividend 6.7% and repurchased 457,000 shares in the third quarter. It did not provide specific financial guidance for future quarters or the full year.
