PB - Prosperity Bancshares: Margin Pressure To Drag Earnings

• The maturity of fixed-rate loans and excess liquidity will likely pressurize the average portfolio yield.
• Stable to rising interest rates will likely lead to a normalization of mortgage banking income in the year ahead.
• Loan growth will likely get constrained by relatively high COVID-19 cases, exit from some LegacyTexas loans, and the Paycheck Protection Program loan forgiveness.
• The year-end target price is quite close to the current market price. Further, Prosperity Bancshares is offering a low dividend yield.

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