- 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.
For further details see:
Prosperity Bancshares: Margin Pressure To Drag Earnings