PB - Prosperity Bancshares: Cost Savings And Loan Growth To Drive Earnings
Prosperity Bancshares (PB) is one of the few banks that did not see a hike in provision expense amid the COVID-19 pandemic. The company's earnings increased by 38% sequentially to $1.39 per share in the first quarter. For the full year, I'm expecting earnings to be higher than last year partly because of loan growth under the Paycheck Protection Program. Moreover, the company will likely benefit from cost savings after the conversion of LegacyTexas' systems in June. On the other hand, a slight increase in provision expense will limit earnings growth. Overall, I'm