Prosperity Bancshares, Inc. (PRSP), a financial holding company for Prosperity Bank, reported Friday an increase in first-quarter profit, reflecting a 45.2% increase in average earning assets.
The Houston, Texas-based company's quarterly net income increased 11.1% to $25.48 million or $0.55 per share from $22.94 million or $0.52 per share in the previous year. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.54 per share for the quarter. Analysts' estimates typically exclude special items.
Net interest income for the quarter grew to $74.08 million from $52 million in the earlier year. The company said the increase was mainly due to a 45.2% increase in average earning assets. Total non-interest income rose to $15.02 million from $12.68 million a year ago. Eight analysts had a consensus revenue estimate of $83.59 million for the period.
Total interest expense decreased to $31.49 million from $32.47 million in the prior year. Total non-interest expense was $44.02 million, up from $29.12 million a year earlier. The increase in non-interest expense was due to the increased expenses related to operating the additional banking offices that were acquired in the Franklin Bank transaction and the 1st Choice acquisition.
The provision for credit losses for the quarter was $6.125 million, compared to $1.167 million in the prior year. The rise in provision was due to increased charge-offs resulted from a general weakening of the economy.
Quarterly net charge offs were $3.857 million, in comparison with $1.643 million a year ago.
Total deposits as on March 31, 2009 increased 45.6% to $7.207 billion, compared to $4.949 billion in the previous year.
Total loans as on March 31 were $3.501 billion, an increase of $339.673 million or 10.7%, in comparison with $3.162 billion in the preceding year.
PRSP closed Thursday's regular trading at $28.24 on the Nasdaq.
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