trending Market Intelligence /marketintelligence/en/news-insights/trending/_lFWjb2zdKs_nallwyI8Lw2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Prosperity Bancshares expects NIM to be flat even with 50-basis-point rate cut

Street Talk - Ep. 64: Coronavirus jumpstarts digital adoption

Street Talk Podcast

Street Talk - Ep. 63: Deal talks continue amid bank M&A freeze, setting up for strong Q4

Street Talk Podcast

Street Talk - Ep. 62: 'Brutal' outlook for oil demand offers banks in oil patch no relief

Amid Q1 APAC Fintech Funding Slump, Payment Companies Drove Investments


Prosperity Bancshares expects NIM to be flat even with 50-basis-point rate cut

Houston-based Prosperity Bancshares Inc. would not likely see a drop in net interest margin, even if the Federal Reserve cuts rates by 50 basis points, management said on the bank's third-quarter earnings call.

The bank reported a flat quarter-over-quarter NIM of 3.16% for the third quarter of 2019. Management said that the bank's NIM has not fallen because it also did not go up alongside its peers as rates increased.

"Our net interest margin never went up like the other [banks'] did because we had a certain amount of fixed rates on our bond portfolio and in our loan portfolio," said CEO David Zalman on the call.

It would take a drop of more than 50 basis points in Fed rates for the bank to start to see a decline in NIM, management said. If rates were to stabilize, the bank would see an increase in NIM over the next one to three years; if rates were to fall 50 basis points, the bank would expect NIM to remain flat.

The bank also provided an estimate for the adoption of the current expected credit loss accounting standard, saying it will add $20 million to $30 million in provisioning. CFO Asylbek Osmonov said the bank has not consolidated its model with that of its merger target, Plano, Texas-based LegacyTexas Financial Group Inc.