Prosperity Bank net worth in 2024 reveals key insights into its growing financial strength. From its expanding loan portfolio to shareholder returns, there’s plenty to unpack.
Join Ando Money as we explore the details behind Prosperity’s strong performance and the factors driving its success.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Prosperity Bank |
| Full Name | Prosperity Bancshares, Inc. |
| Traded as | NYSE: PB |
| ISIN | US7436061052 |
| Founded | 1983 |
| Founders | David Zalman, Dan Rollins |
| Country/Territory | United States |
| Headquarters | Houston, Texas, United States |
| Chief Executive Officer | David Zalman |
| Number of Employees | 3,901 |
| Market Cap | $6.85 Billion (as of September 2024) |
| Total Assets | $39.8 Billion (as of Q2 2024) |
| Total Equity | $15.42 Billion (as of Q2 2024) |
| Revenue | N/A |
| Net Income | $111.6 Million (as of Q2 2024) |
What is the Net Worth/ Market Cap Of Prosperity Bank in 2024?
As of September 2024, Prosperity Bancshares boasts a market cap of $6.85 billion, reflecting the company’s strong financial position.
This places it among the mid-sized banks in the United States, indicating consistent performance in the financial sector. However, compared to the industry’s biggest players, its market cap still trails behind some of the largest global financial institutions.
Yet, with significant growth in assets and deposits, Prosperity Bank remains a key player, especially in Texas and Oklahoma.
To put things in perspective, here are a few banks that are commonly compared to Prosperity Bank:
- Wells Fargo
- Bank of America
- JPMorgan Chase
- U.S. Bank
- Regions Bank
- Truist Financial
- PNC Financial Services
- Citizens Financial Group
- Fifth Third Bank
For more insight into other financial institutions with high net worth, you can explore the largest banks in the world for a broader understanding of the banking sector.
Financial Performance Overview
Key Drivers of Revenue Growth
Prosperity Bancshares has experienced steady growth over the years, driven by its core banking activities.
One of the main drivers behind its success is the increase in net interest income, which is a crucial contributor to overall revenue.
The net interest margin, a key metric in banking profitability, stood at 2.94% for the second quarter of 2024, a 15-basis-point increase from the previous quarter.
This rise reflects the bank’s ability to manage interest rate environments effectively, generating solid earnings from loans and investments.
Another important revenue driver is the loan portfolio, which reached $22.3 billion as of June 2024. The bank has shown consistent growth in its loan offerings, with a 10.5% compound annual growth rate (CAGR) over the past decade.
The diversity in loan types, including commercial real estate and construction loans, has helped Prosperity maintain a robust earnings base.
Notably, the allowance for credit losses was reported at $397.5 million, reflecting the bank’s cautious approach to credit risk management.
Loan Portfolio and Its Contribution to Earnings
The bank’s loan portfolio is a critical pillar of its financial strength. It includes a wide range of loan types, such as commercial real estate loans, consumer loans, and residential mortgages.
As of June 2024, loans excluding the Warehouse Purchase Program (WPP) stood at $21.2 billion, with a core yield of 5.89%. Prosperity has also maintained strong credit quality, with nonperforming assets accounting for only 0.25% of average earning assets.
This low level of nonperforming assets highlights the bank’s prudent credit risk policies and the quality of its loan underwriting.
The bank’s focus on conservative lending practices, particularly in commercial real estate and construction loans, has paid off in maintaining asset quality and minimizing loan charge-offs, which remain at a modest 0.08%.
Deposit Growth and Financial Stability
On the deposits side, Prosperity Bancshares has achieved a significant $27.9 billion in total deposits as of June 2024.
This represents a healthy mix of interest-bearing and non-interest-bearing accounts, with money market and savings deposits totaling $8.95 billion and carrying a cost of 2.22%.
Meanwhile, noninterest-bearing demand deposits stand at $9.7 billion, which helps lower the overall cost of deposits and boosts the bank’s profitability.
The loan-to-deposit ratio, an important measure of liquidity, remains well within acceptable ranges, ensuring that the bank can meet its obligations and grow its loan book without compromising financial stability.
Mergers and Acquisitions
In April 2024, Prosperity Bancshares completed its merger with Lone Star State Bancshares, further expanding its footprint in Texas.
This merger added valuable assets and deposits, contributing to the bank’s overall growth. Over the years, Prosperity has completed 45 acquisitions, a strategy that has proven instrumental in its expansion.
These acquisitions have bolstered the bank’s presence in both Texas and Oklahoma, making it a dominant player in the region.
Mergers and acquisitions have not only grown Prosperity’s asset base but have also added to its capital reserves, ensuring that the bank remains well-capitalized to meet future opportunities and challenges.
As of June 2024, the common equity tier 1 ratio stood at 15.42%, a strong indicator of financial health and risk management capability.
Shareholder Returns: Dividends and Stock Repurchases
In line with its commitment to shareholder returns, Prosperity declared a cash dividend of $0.56 per share for the third quarter of 2024.
This consistent dividend payout reflects the bank’s stable earnings and robust capital position.
Additionally, Prosperity Bancshares repurchased 670,518 shares of its common stock during the second quarter of 2024, further enhancing shareholder value.
FAQs about Prosperity Bank
Who is the CEO of the Prosperity Bank?
David Zalman is the current CEO, guiding the bank’s expansion and overseeing its financial growth.
How many employees does the bank have?
The bank employs 3,901 people, primarily in Texas and Oklahoma.
What services does Prosperity Bank offer?
It offers a broad range of financial services, including personal and commercial banking, loans, and wealth management.
Where is Prosperity Bank headquartered?
The bank is headquartered in Houston, Texas.
Has it made recent acquisitions?
Yes, the bank merged with Lone Star State Bancshares in April 2024, increasing its assets.
Does it pay dividends?
Yes, it declared a $0.56 per share dividend in Q3 2024, rewarding shareholders.
How does it rank among other banks?
It ranks as one of the largest regional banks in the U.S., holding the #2 deposit market share in Texas.
Conclusion
In conclusion, Prosperity Bank continues to thrive with steady growth and robust financials. Want to learn more about other major banks?
Check out the largest banks in the US and stay updated. Don’t forget to leave a comment, share your thoughts, or browse more content at andomoney.com!
