Loan growth picked up during the fourth quarter
David Zalman, senior president and chief executive officer, said he expects further loan growth this year: “Throughout the fourth quarter of 2022, Prosperity continued to see loan growth, which we expect will continue into 2023,” he said. . “The growth comes from loans, as well as existing loans that don’t pay off as quickly as they did when rates were low and it was opportunistic for borrowers to repay or move loans. Consumer spending remains strong, especially in the tourism, restaurant and hospitality sectors. Real estate sales and prices were impacted by the rate hike, but we expect that due to inventory levels and population growth, the impact will be minor in Texas and Oklahoma,” referring to the two states it focuses on the company.
Texas, Oklahoma are economic powerhouses
He predicted that both states will outpace others in the near future, largely due to a heavy influx of people relocating: “We believe the economies of Texas and Oklahoma will outpace other states in the coming years as businesses and individuals will continue to move into the states due to lower tax rates and a business friendly policy environment.We predict that businesses will need more infrastructure and buildings and consumers will need more housing and places to spend their money and both will have need banks to finance growth”.
Statistics confirm Zalman’s assessments. The Oklahoma newspaper reported this month that the state’s economy grew at the third-fastest rate in the United States during last year’s third quarter as oil and gas production increased in gross domestic product. The U.S. Bureau of Economic Analysis reported that the state’s real GDP grew 5.5% at an annual rate from the second to third quarters, only behind Alaska (8.7%) and Texas (8.7%). 2%).
Meanwhile, in Texas itself, the Lone Star State remains on a record 14-month employment streak, the Texas Workforce Commission said in a report. Additionally, the state’s unemployment rate fell to 3.9%, marking the first time it fell below 4% since the COVID-19 pandemic, marked by mass business closures.
The merger should take place in the next few days
Zalman expressed excitement at warning of an impending merger: “We are excited about our pending merger with First Bancshares of Texas and Lone Star State Bancshares. The combined banks will add approximately $3 billion in assets and grow our market share in the Lubbock, Midland and Odessa areas of West Texas, as well as enable us to enter new markets in Wichita Falls, Amarillo and Horseshoe Bay, Marble Falls and Fredericksburg areas in central Texas.