Prosperity Bancshares, Inc. (PB), banking company, on Wednesday reported a decline in net profit for the fourth-quarter, particularly reflecting increase in interest and noninterest expense that includes the Federal Deposit Insurance Corporation or FDIC special assessment.
However, excluding items, the company's earnings beat the Street view.
For the three-month period, the lender posted a net income of $95.5 million or $1.02 per share, lower than $137.9 million or $1.51 per share, recorded for the same period last year.
Prosperity incurred a FDIC special assessment of $19.9 million, or $0.17 per share, which was assessed by the FDIC to recover the cost related to protecting uninsured depositors after the closures of Silicon Valley Bank and Signature Bank in 2023.
Excluding this assessment and merger related expenses, income was at $111.4 million or $1.19 per share.
On average, 16 analysts polled by Thomson Reuters had expected the bank to earn $1.17 per share, for the quarter. Analysts' estimates typically exclude special items.
Net interest income provision for credit losses dropped to $236.983 million from $256.137 million in 2022.
Total noninterest income was $36.568 million, down from last year's $37.724 million.
Total noninterest expense stood at $152.171 million, compared with $119.244 million a year ago.
Total interest expense increased to $139.449 million from last year's $52.455 million.
For the first-quarter of 2024, the lender has declared cash dividend of $0.56 per share to be paid on April 1, to all shareholders of record as of March 15.
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