PB - Prosperity Bancshares To Benefit From Merger

Prosperity Banchsares (PB) completed the acquisition of LegacyTexas Bank in November 2019, which is expected to push up earnings by a high single digit growth rate in 2020. The merger will support earnings growth by not only driving up earning assets but also improving non-interest income. However, initially the merger will constrain bottom-line growth due to a temporary surge in operating expenses. The benefit from the merger appears to be mostly priced-in as the current market price is quite close to the one-year ahead target price; therefore, it is better to wait for