- 2Q09 Earnings Per Share of $0.57 (diluted) - Net Interest Margin
(tax equivalent) increases to 4.04% - Allowance for Credit Losses
to Total Loans increased to 1.23% - Tangible Common Equity Ratio
increased to 4.84% - Non-Performing Assets remain low at 0.26% of
Average Earning Assets HOUSTON, July 17 /PRNewswire-FirstCall/ --
Prosperity Bancshares, Inc. (NASDAQ:PRSP), the parent company of
Prosperity Bank , reported net income for the quarter ended June
30, 2009 of $26.510 million or $0.57 per diluted common share, an
increase in net income of $3.073 million or 13.1%, compared with
$23.437 million or $0.52 per diluted common share for the same
period in 2008. "While the banking industry continues to face
significant headwinds, I am pleased to report strong earnings by
our company," commented David Zalman, Chairman and Chief Executive
Officer. "We continue to believe our decision last fall not to
participate in the U.S. Treasury Department's TARP program was the
right decision for our shareholders and our customers and expect
that the strength of our bank will lead to future opportunities."
"During the quarter, we continued to reduce our exposure to
construction and development loans while our team of professional
bankers continued to attract core deposit customers across the
state of Texas. Additionally, excluding recently acquired
locations, we experienced linked quarter deposit growth in excess
of 16%," continued Zalman. Prosperity's management uses certain
non-GAAP (generally accepted accounting principles) financial
measures to evaluate its performance. Specifically, Prosperity
reviews tangible book value per share, return on average tangible
common equity and the tangible equity to tangible assets ratio.
Prosperity has included in this Earnings Release information
relating to these non-GAAP financial measures for the applicable
periods presented. Please refer to the "Notes to Selected Financial
Data" at the end of this Earnings Release for a reconciliation of
these non-GAAP financial measures. Results of operations for the
three months ended June 30, 2009 For the three months ended June
30, 2009, net income was $26.510 million compared with $23.437
million for the same period in 2008. Net income per diluted common
share was $0.57 for the three months ended June 30, 2009 and $0.52
for the same period in 2008. Returns on average assets, average
common equity and average tangible common equity for the three
months ended June 30, 2009 were 1.20%, 8.18% and 27.98%,
respectively. Prosperity's efficiency ratio (excluding net gains
and losses on the sale of securities and assets) was 48.98% for the
three months ended June 30, 2009. Net interest income before
provision for credit losses for the quarter ended June 30, 2009
increased 39.9% to $75.521 million compared with $53.971 million
during the same period in 2008. The increase was attributable
primarily to a 40.8% increase in average earning assets primarily
due to the Franklin transaction. The net interest margin on a tax
equivalent basis decreased to 4.04% for the three months ended June
30, 2009 compared with 4.10% for the same period in 2008. On a
linked quarter basis, the tax equivalent net interest margin
increased six basis points to 4.04% for the three months ended June
30, 2009 from 3.98% reported for the three months ended March 31,
2009 as a result of multiple factors including lower deposit
pricing. Non-interest income increased $2.067 million or 15.8% to
$15.133 million for the three months ended June 30, 2009 compared
with $13.066 million for the same period in 2008. The increase was
mainly attributable to an increase in service charges on deposit
accounts related to accounts assumed from the FDIC as part of the
Franklin Bank transaction. Non-interest expense increased $13.440
million or 43.6% to $44.300 million for the second quarter of 2009
compared with $30.860 million for the second quarter of 2008. The
increase was attributable to the increased expenses related to
operating the additional banking offices that were acquired in the
Franklin Bank transaction and increased FDIC insurance premiums.
Prosperity's FDIC insurance premium cost for 2008 was approximately
$1.4 million. The expected full year 2009 FDIC insurance premium
(excluding any one-time assessments) is currently projected to be
between $8.0 million and $9.0 million based upon deposit balances
at June 30, 2009. Additionally, the FDIC imposed an emergency
special assessment as of June 30, 2009, which for Prosperity will
total approximately $4.2 million in pre-tax expense or $0.06 per
diluted common share after tax. Average loans increased 8.4% or
$269.144 million to $3.472 billion for the quarter ended June 30,
2009 compared with $3.203 billion for the same period of 2008.
Linked quarter average loans decreased 1.6% or $57.781 million from
$3.530 billion at March 31, 2009. Average deposits increased 43.8%
or $2.207 billion to $7.246 billion for the quarter ended June 30,
2009 compared with $5.040 billion for the same period of 2008.
Linked quarter average deposits decreased 0.4% or $31.015 million
from $7.277 billion at March 31, 2009. Loans at June 30, 2009 were
$3.451 billion, an increase of $137.991 million or 4.2%, compared
with $3.313 billion at June 30, 2008. Loans decreased 1.4% or
$49.981 million on a linked quarter basis compared with loans of
$3.501 billion at March 31, 2009. As reflected in the table below,
linked quarter loans for the second quarter of 2009 were impacted
by the loans acquired from the FDIC as a part of the Franklin Bank
transaction in November 2008 and the loans acquired as a part of
the acquisition of 1st Choice in the second quarter of 2008.
Excluding the loans acquired in these transactions, loans decreased
0.3%. Deposits at June 30, 2009 were $7.258 billion, an increase of
$1.961 billion or 37.0%, compared with $5.297 billion at June 30,
2008. Linked quarter deposits increased $51.016 million or 0.7%
from $7.207 billion at March 31, 2009. As reflected in the table
below, linked quarter deposits for the second quarter of 2009 were
impacted by the deposits assumed from the FDIC as part of the
Franklin Bank transaction and the deposits assumed as a part of the
acquisition of 1st Choice. Excluding the deposits assumed in these
transactions, linked quarter deposits increased 16.2% on an
annualized basis and deposits increased 5.6% from June 30, 2008.
Balance Sheet Data (at period June 30, 2009 Mar 31, 2009 June 30,
2008 end) ------------- ------------ ------------- (In thousands)
(Unaudited) (Unaudited) (Unaudited) Loans: Acquired with 1st Choice
144,771 155,671 184,526 Acquired from FDIC (related to Franklin
Bank) 282,733 312,793 0 All other 3,023,815 3,032,836 3,128,802
--------- --------- --------- Total Loans $3,451,319 $3,501,300
$3,313,328 ========== ========== ========== Deposits: Assumed with
1st Choice Bank 237,953 242,116 287,996 Assumed from FDIC (related
to Franklin Bank) 1,729,657 1,880,823 0 All other 5,290,285
5,083,940 5,008,638 --------- --------- --------- Total Deposits
$7,257,895 $7,206,879 $5,296,634 ========== ========== ==========
At June 30, 2009, construction loans totaled $613.386 million,
consisting of approximately $178 million of single family
residential construction loans; $86 million of land development
loans; $96 million of raw land loans; $101 million of residential
lot loans; $50 million of commercial lot loans; and $102 million of
commercial construction and other construction loans. This is a
decrease of $29.765 million from construction loans at March 31,
2009. At June 30, 2009, Prosperity had $8.839 billion in total
assets, $3.451 billion in loans, and $7.258 billion in deposits.
Assets, loans and deposits at June 30, 2009 increased by 30.1%,
4.2% and 37.0%, respectively, compared with their level at June 30,
2008. Results of operations for the six months ended June 30, 2009
For the six months ended June 30, 2009, net income was $51.988
million compared with $46.375 million for the same period in 2008.
Net income per diluted common share was $1.13 for the six months
ended June 30, 2009 compared with $1.04 for the same period in
2008. Returns on average assets, average common equity and average
tangible common equity for the six months ended June 30, 2009 were
1.17%, 8.12% and 28.39%, respectively. Prosperity's efficiency
ratio was 49.22% for the six months ended June 30, 2009. Net
interest income before provision for credit losses for the six
months ended June 30, 2009 increased $43.633 million or 41.2%, to
$149.599 million compared with $105.966 million during the same
period in 2008. The increase was attributable primarily to a 43.0%
increase in average earning assets. Non-interest income increased
$4.405 million or 17.1% to $30.150 million for the six months ended
June 30, 2009 compared with $25.745 million for the same period in
2008. The increase was mainly attributable to an increase in
service charges on deposit accounts related to accounts assumed
from the FDIC as part of the Franklin Bank transaction and deposit
accounts assumed from the 1st Choice acquisition. Non-interest
expense increased $28.343 million or 47.3% to $88.323 million for
the first six months of 2009 compared with $59.980 million for the
same period in 2008. The increase was attributable to the increased
expenses related to operating the additional banking offices that
were acquired in the Franklin Bank transaction, the 1st Choice
acquisition and FDIC insurance premiums. The provision for credit
losses was $13.025 million for the six months ended June 30, 2009
compared to $2.167 million for the six months ended June 30, 2008.
Net charge offs were $7.383 million for the six months ended June
30, 2009 compared to $2.806 million for the six months ended June
30, 2008. Asset Quality Non-performing assets totaled $19.587
million or 0.26% of average earning assets at June 30, 2009
compared with $11.651 million or 0.22% of average earning assets at
June 30, 2008 and $12.525 million or 0.16% of average earnings
assets at March 31, 2009. The allowance for credit losses was 1.23%
of total loans at June 30, 2009 compared with 1.03% at June 30,
2008 and 1.12% of total loans at March 31, 2009. Non-performing
assets June 30, 2009 Mar 31, 2009 Dec 31, 2008 (In thousands)
------------- ------------ ------------ Amount # Amount # Amount #
Commercial $955 28 $1,207 24 $1,491 16 Construction 10,969 38 9,219
46 9,252 36 1-4 family (including home equity) 1,353 22 1,110 17
1,325 19 Commercial real estate (including multi-family) 6,157 9
859 5 2,014 8 Agriculture and agriculture real estate 0 0 8 1 30 3
Consumer 153 11 122 11 250 15 Other 0 0 0 0 6 1 --- --- --- --- ---
--- Total $19,587 108 $12,525 104 $14,368 98 ======= === =======
=== ======= === Three Months Three Months Twelve Months Ended Ended
Ended Net Charge-offs June 30, 2009 Mar 31, 2009 Dec 31, 2008 (In
thousands) ------------- ------------ ------------ Commercial $307
$761 $2,489 Construction 1,185 2,387 3,190 1-4 family (including
home equity) 510 117 351 Commercial RE (including multi-family)
1,091 0 (110) Agriculture (1) 23 327 Consumer 434 569 1,374 --- ---
----- Total $3,526 $3,857 $7,621 ====== ====== ====== The provision
for credit losses was $6.9 million for the three months ended June
30, 2009 and $1.0 million for the three months ended June 30, 2008.
Prosperity's loan loss reserve model called for increased
provisioning in the second quarter due to increased charge-offs
resulting from a general weakening of the economy. Net charge offs
were $3.526 million for the three months ended June 30, 2009 and
$1.163 million for the three months ended June 30, 2008. Conference
Call Prosperity's management team will host a conference call on
Friday, July 17, 2009 at 10:30 a.m. Eastern Daylight Time (9:30
a.m. Central Daylight Time) to discuss Prosperity's second quarter
earnings. Individuals and investment professionals may participate
in the call by dialing 1-800-895-4790, the reference code is PBTX.
Alternatively, individuals may listen to the live webcast of the
presentation by visiting Prosperity's website at
http://www.prosperitybanktx.com/. The webcast may be accessed
directly from Prosperity's Home page under News and Events.
Assumption of deposits and acquisition of certain assets from the
FDIC as receiver for Franklin Bank, SSB On November 7, 2008,
Prosperity Bank paid a deposit premium of approximately $60.918
million to assume approximately $3.6 billion of deposits, including
all uninsured deposits, from the FDIC, acting in its capacity as
receiver for Franklin Bank. The FDIC entered into a purchase and
assumption agreement with Prosperity Bank, which paid a premium to
ensure that all deposits of Franklin Bank, both insured and
uninsured, were transferred to Prosperity Bank . Under the terms of
the purchase and assumption agreement, Prosperity Bank acquired
certain assets from the FDIC, including approximately $350 million
in US Treasury and Agency Securities and approximately $350 million
in performing loans. The remaining net proceeds were predominately
invested in US Agency Securities. While Franklin Bank operated
forty-five (45) full service banking offices, Prosperity Bank
continues to operate thirty-three (33) of these locations and has
consolidated the remainder with other nearby Prosperity locations.
Acquisition of 1st Choice Bancorp, Inc. On June 1, 2008, Prosperity
completed its previously announced acquisition of 1st Choice
Bancorp, Inc. and its wholly owned subsidiary, 1st Choice Bank. 1st
Choice Bancorp, Inc. operated two (2) banking offices in Houston,
Texas, with one location in South Houston and another in the
Heights area, which was consolidated with Prosperity's Heights
location and is located in 1st Choice's Heights banking office. As
of May 31, 2008, 1st Choice Bancorp reported total assets of
approximately $314.9 million, loans of approximately $192.7
million, deposits of approximately $285.2 million and stockholders'
equity of approximately $26.4 million. In connection with the
acquisition, Prosperity issued 1,757,757 shares of its common stock
and paid approximately $18.758 million in cash for all outstanding
shares of 1st Choice Bancorp. Prosperity Bancshares, Inc.
Prosperity Bancshares, Inc. , an $8.8 billion Houston, Texas based
regional financial holding company, formed in 1983, operates under
a community banking philosophy and seeks to develop broad customer
relationships based on service and convenience. Prosperity offers a
variety of traditional loan and deposit products to its customers,
which consist primarily of small and medium sized businesses and
consumers. In addition to established banking products, Prosperity
offers a complete line of services including: Internet Banking
services at http://www.prosperitybanktx.com/, Retail Brokerage
Services, MasterMoney Debit Cards, and 24 hour voice response
banking. Prosperity currently operates one hundred fifty-eight
(158) full service banking locations; fifty-one (51) in the Houston
area; twenty-seven (27) in the South Texas area including Corpus
Christi and Victoria; twenty-four (24) in the Dallas/Fort Worth
area; twenty (20) in the East Texas area; twenty-seven (27) in the
Central Texas area including Austin and San Antonio; and nine (9)
in the Bryan/College Station area. Central Texas Area - Austin -
Allandale Cedar Park Congress 183 Lakeway Liberty Hill Northland
Oak Hill Parmer Lane Research Blvd Rollingwood Slaughter Lane
Bryan/College Station - Bryan Bryan-East Bryan-North College
Station Greens Prairie Wellborn Road Rock Prairie Other Central
Texas Locations - Bastrop Caldwell Dime Box Dripping Springs Elgin
Flatonia Georgetown Kingsland La Grange Lexington Navasota New
Braunfels Round Rock San Antonio Schulenburg Smithville Weimar
Dallas/Fort Worth Area - Dallas - Abrams Centre Balch Springs Camp
Wisdom Cedar Hill Central Expressway Frisco Frisco-West Kiest
Preston Road Red Oak The Colony Turtle Creek Westmoreland Fort
Worth - Haltom City Keller Roanoke Stockyards Other Dallas/Fort
Worth Locations - Azle Ennis Gainesville Mesquite Muenster Sanger
Waxahachie East Texas Area - Athens Athens-South Blooming Grove
Canton Carthage Corsicana Crockett Eustace Grapeland Gun Barrel
City Jacksonville Kerens Longview Mount Vernon Palestine Rusk Seven
Points Tyler Tyler-University Winnsboro Houston Area - Houston -
Aldine Bellaire Clear Lake Copperfield Cypress Downtown Fairfield
Gessner Gladebrook Harrisburg Heights Highway 6 West Hillcroft
Little York Medical Center Memorial Drive Pasadena Pecan Grove
River Oaks Sugar Land SW Medical Center Tanglewood Uptown Waugh
Drive Westheimer Woodcreek Other Houston Area Locations - Angleton
Beaumont Cinco Ranch Cleveland East Bernard Edna El Campo Dayton
Galveston Groves Hempstead Hitchcock Katy Liberty Magnolia Mont
Belvieu Nederland Needville Sweeny Tomball Waller West Columbia
Wharton Winnie Wirt South Texas Area - Corpus Christi - Airline
Carmel Northwest Saratoga Water Street Other South Texas Locations
- Alice Aransas Pass Bay City Beeville Cuero Goliad Gonzales
Hallettsville Kingsville Mathis Padre Island Palacios Pleasanton
Port Lavaca Portland Rockport Seguin Sinton Victoria Victoria-North
Yoakum Yorktown "Safe Harbor" Statement under the Private
Securities Litigation Reform Act of 1995: This release contains,
and the remarks by Prosperity's management on the conference call
may contain, forward-looking statements within the meaning of the
securities laws that are based on current expectations,
assumptions, estimates and projections about Prosperity Bancshares
, and its subsidiaries. These forward-looking statements are not
guarantees of future performance and are subject to risks and
uncertainties, many of which are outside of Prosperity's control,
that may cause actual results to differ materially from those
expressed or implied by the forward-looking statements. These risks
and uncertainties include but are not limited to whether Prosperity
can: successfully identify acquisition targets and integrate the
businesses of acquired companies and banks; continue to sustain its
current internal growth rate or total growth rate; provide products
and services that appeal to its customers; continue to have access
to debt and equity capital markets; and achieve its sales
objectives. Other risks include, but are not limited to: the
possibility that credit quality could deteriorate; actions of
competitors; changes in laws and regulations (including changes in
governmental interpretations of regulations and changes in
accounting standards); a deterioration or downgrade in the credit
quality and credit agency ratings of the securities in Prosperity's
securities portfolio; customer and consumer demand, including
customer and consumer response to marketing; effectiveness of
spending, investments or programs; fluctuations in the cost and
availability of supply chain resources; economic conditions,
including currency rate fluctuations and interest rate
fluctuations; weather; and the stock price volatility associated
with "small-cap" companies. These and various other factors are
discussed in Prosperity's Annual Report on Form 10-K for the year
ended December 31, 2008 and other reports and statements we have
filed with the SEC. Copies of the SEC filings for Prosperity
Bancshares's may be downloaded from the Internet at no charge from
http://www.prosperitybanktx.com/. Prosperity Bancshares, Inc. (R)
Financial Highlights (Dollars and share amounts in thousands,
except per share data) Three Months Ended June 30, Mar 31, Dec 31,
Sept 30, 2009 2009 2008 2008 Selected Earnings (Unaudited)
(Unaudited) (Unaudited) (Unaudited) and Per Share Data Total
interest income $102,768 $105,566 $96,588 $84,846 Total interest
expense 27,247 31,488 32,631 27,040 ------ ------ ------ ------ Net
interest income 75,521 74,078 63,957 57,806 Provision for credit
losses 6,900 6,125 6,000 1,700 ----- ----- ----- ----- Net interest
income after provision for credit losses 68,621 67,953 57,957
56,106 Total non-interest income 15,133 15,017 13,508 13,117 Total
non-interest expense 44,300 44,023 37,586 46,230 ------ ------
------ ------ Net income before taxes 39,454 38,947 33,879 22,993
Federal income taxes 12,944 13,469 11,194 7,546 ------ ------
------ ----- Net income $26,510 $25,478 $22,685 $15,447 =======
======= ======= ======= Basic earnings per share $0.57 $0.55 $0.49
$0.34 Diluted earnings per share $0.57 $0.55 $0.49 $0.33 Period end
shares outstanding 46,109 46,100 46,080 46,072 Weighted average
shares outstanding (basic) 46,105 46,086 46,078 46,065 Weighted
average shares outstanding (diluted) 46,225 46,139 46,276 46,302
Prosperity Bancshares, Inc. (R) Financial Highlights (Dollars in
thousands) Three Months Ended Six Months Ended June 30, June 30,
June 30, June 30, 2009 2008 2009 2008 Balance Sheet Averages
(Unaudited) (Unaudited) (Unaudited) (Unaudited) Total loans
$3,472,449 $3,203,305 $3,501,488 $3,173,240 Investment securities
3,964,766 2,131,370 3,997,278 2,054,440 Federal funds sold and
other temporary investments 122,358 33,803 94,631 82,702 -------
------ ------ ------ Total earning assets 7,559,573 5,368,478
7,593,397 5,310,382 Allowance for credit losses (39,249) (32,813)
(38,240) (32,381) Cash and due from banks 133,739 131,015 145,232
138,354 Goodwill 875,236 785,604 875,601 772,774 Core Deposit
Intangibles (CDI) 41,518 43,461 39,314 44,131 Other real estate
13,524 8,581 10,288 10,002 Fixed assets, net 150,475 123,876
137,086 123,705 Other assets 99,169 111,062 100,472 111,016 ------
------- ------- ------- Total assets $8,833,985 $6,539,264
$8,863,150 $6,477,983 ========== ========== ========== ==========
Non-interest bearing deposits $1,499,888 $1,215,176 $1,498,136
$1,184,121 Interest bearing deposits 5,746,511 3,824,628 5,767,455
3,803,669 --------- --------- --------- --------- Total deposits
7,246,399 5,039,804 7,265,591 4,987,790 Securities sold under
repurchase agreements 92,466 82,408 88,128 74,241 Federal funds
purchased and other borrowings 28,937 76,132 55,865 86,554 Junior
subordinated debentures 92,265 102,575 92,265 106,012 Other
liabilities 78,181 61,187 80,101 63,032 Shareholders' equity(A)
1,295,737 1,177,158 1,281,200 1,160,354 --------- ---------
--------- --------- Total liabilities and equity $8,833,985
$6,539,264 $8,863,150 $6,477,983 ========== ========== ==========
========== (A) Includes $15,800 and $1,675 in after tax unrealized
gains on available for sale securities for the three month periods
ending June 30, 2009 and June 30, 2008, respectively and $13,722
and $172 for the six months ending June 30, 2009 and June 30, 2008,
respectively. Prosperity Bancshares, Inc.(R) Financial Highlights
(Dollars in thousands) Three Months Ended Six Months Ended June 30,
June 30, June 30, June 30, 2009 2008 2009 2008 Income Statement
Data (Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest on
loans $55,248 $55,948 $111,050 $114,468 Interest on securities
47,450 25,856 97,178 50,639 Interest on federal funds sold and
other temporary investments 70 175 106 1,337 --- --- --- -----
Total interest income 102,768 81,979 208,334 166,444 ------- ------
------- ------- Interest expense - deposits 25,621 25,210 55,078
54,155 Interest expense - debentures 959 1,558 2,078 3,577 Interest
expense - other 667 1,240 1,579 2,746 --- ----- ----- ----- Total
interest expense 27,247 28,008 58,735 60,478 ------ ------ ------
------ Net interest income (B) 75,521 53,971 149,599 105,966
Provision for credit losses 6,900 1,000 13,025 2,167 ----- -----
------ ----- Net interest income after provision for credit losses
68,621 52,971 136,574 103,799 ------ ------ ------- ------- Service
charges on deposit accounts 12,863 10,727 25,235 21,233 Net gain on
sale of assets 200 676 297 680 Net gain (loss) on sale of ORE 415
(478) 437 (439) Brokered mortgage income 140 113 210 222 Net gain
on sale of held for sale loans 0 110 0 183 Gain on sale of
securities 0 0 0 0 Other non-interest income 1,515 1,918 3,971
3,866 ----- ----- ----- ----- Total non-interest income 15,133
13,066 30,150 25,745 ------ ------ ------ ------ Salaries and
benefits (C) 20,494 16,751 43,142 32,881 CDI amortization 2,492
2,459 5,156 4,951 Net occupancy and equipment 3,514 2,867 7,492
5,677 Depreciation 2,069 1,920 4,070 3,857 Data processing and
software amortization 1,562 1,361 3,617 2,652 Impairment charge on
write-down of securities 0 0 0 0 Other non-interest expense 14,169
5,502 24,846 9,962 ------ ----- ------ ----- Total non-interest
expense 44,300 30,860 88,323 59,980 ------ ------ ------ ------ Net
income before taxes 39,454 35,177 78,401 69,564 Federal income
taxes 12,944 11,740 26,413 23,189 ------ ------ ------ ------ Net
income available to common shareholders $26,510 $23,437 $51,988
$46,375 ======= ======= ======= ======= (B) Net interest income on
a tax equivalent basis would be $76,226 and $54,692 for the three
months ended June 30, 2009 and June 30, 2008, respectively and
$150,985 and $107,524 for the six months ended June 30, 2009 and
June 30, 2008, respectively. (C) Salaries and benefits includes
stock-based compensation expense of $294 and $393 for the three
months ended June 30, 2009 and June 30, 2008, respectively and $620
and $641 for the six months ended June 30, 2009 and June 30, 2008,
respectively. Prosperity Bancshares, Inc.(R) Financial Highlights
(Dollars and share amounts in thousands, except per share data)
Three Months Ended Six Months Ended June 30, June 30, June 30, June
30, 2009 2008 2009 2008 Common Share and (Unaudited) (Unaudited)
(Unaudited) (Unaudited) Other Data Employees - FTE 1,634 1,397
1,634 1,397 Book value per share $28.17 $26.44 $28.17 $26.44
Tangible book value per share $8.31 $7.79 $8.31 $7.79 Period end
shares outstanding 46,109 46,060 46,109 46,060 Weighted average
Shares outstanding (basic) 46,105 44,852 46,097 44,520 Weighted
average Shares outstanding (diluted) 46,225 45,039 46,146 44,676
Non-accrual loans $646 $2,727 $646 $2,727 Accruing loans 90 or More
days past due 7,497 2,130 7,497 2,130 Restructured loans 0 0 0 0
--- --- --- --- Total non-performing loans 8,143 4,857 8,143 4,857
Repossessed assets 343 139 343 139 Other real estate 11,101 6,655
11,101 6,655 ------ ----- ------ ----- Total non-performing assets
$19,587 $11,651 $19,587 $11,651 Allowance for credit losses at end
of period $42,611 $34,085 $42,611 $34,085 Net charge-offs $3,526
$1,163 $7,383 $2,806 Basic earnings per share $0.57 $0.52 $1.13
$1.04 Diluted earnings per share $0.57 $0.52 $1.13 $1.04 Prosperity
Bancshares, Inc.(R) Financial Highlights Three Months Ended Six
Months Ended June 30, June 30, June 30, June 30, 2009 2008 2009
2008 Performance Ratios (Unaudited) (Unaudited) (Unaudited)
(Unaudited) Return on average assets (annualized) 1.20% 1.43% 1.17%
1.43% Return on average common equity (annualized) 8.18% 7.96%
8.12% 7.99% Return on average tangible common equity (annualized)
27.98% 26.93% 28.39% 27.01% Net interest margin (D) (tax
equivalent) (annualized) 4.04% 4.10% 4.01% 4.07% Efficiency
ratio(E) 48.98% 46.50% 49.22% 45.78% Asset Quality Ratios
Non-performing assets to average earning assets 0.26% 0.22% 0.26%
0.22% Non-performing assets to loans and other real estate 0.57%
0.35% 0.57% 0.35% Net charge-offs to average loans 0.10% 0.04%
0.21% 0.09% Allowance for credit losses to total loans 1.23% 1.03%
1.23% 1.03% Common Stock Market Price High $31.23 $32.29 $31.23
$32.29 Low $26.20 $25.37 $20.04 $21.96 Period end market price
$29.83 $26.73 $29.83 $26.73 (D) Net interest margin for all periods
presented is calculated on an actual 365 or actual 366 day basis.
(E) The Company revised its efficiency ratio in the fourth quarter
2008 and no longer excludes gains and losses on the sale of ORE.
The efficiency ratio is calculated by dividing total non-interest
expense (excluding provision for credit losses) by net interest
income plus non-interest income (excluding net gains and losses on
the sale of securities and assets and impairment charge on
write-down of securities). Prior period amounts have been restated
to reflect the current methodology. Additionally, taxes are not
part of this calculation. Prosperity Bancshares, Inc.(R) Financial
Highlights (Dollars in thousands) June 30, 2009 Mar 31, 2009
------------- ------------ Loan Portfolio (Unaudited) (Unaudited)
Commercial $461,622 13.38% $461,514 13.18% Construction 613,386
17.77% 643,151 18.37% 1-4 family residential 675,702 19.58% 667,392
19.06% Home equity 115,029 3.33% 112,053 3.20% Commercial real
estate 1,318,489 38.20% 1,346,056 38.45% Agriculture 149,515 4.33%
144,384 4.12% Consumer 117,576 3.41% 126,750 3.62% ------- -------
Total Loans $3,451,319 $3,501,300 ========== ========== Deposit
Types Non-interest bearing DDA $1,476,378 20.34% $1,510,005 20.95%
Interest bearing DDA 1,060,965 14.62% 1,030,826 14.30% Money Market
1,614,874 22.25% 1,495,724 20.76% Savings 325,232 4.48% 322,130
4.47% Time < $100 1,418,375 19.54% 1,491,380 20.69% Time >
$100 1,362,071 18.77% 1,356,814 18.83% --------- --------- Total
Deposits $7,257,895 $7,206,879 ========== ========== Loan to
Deposit Ratio 47.6% 48.6% Construction Loans Single family
residential construction $177,632 28.96% $214,034 33.28% Land
development 86,363 14.08% 91,005 14.15% Raw land 96,157 15.67%
89,003 13.84% Residential lots 101,321 16.52% 104,684 16.28%
Commercial lots 49,614 8.09% 37,318 5.80% Commercial construction
and other 102,299 16.68% 107,107 16.65% ------- ------- Total
Construction Loans $613,386 $643,151 ======== ======== Dec 31, 2008
Sept 30, 2008 ------------ ------------- Loan Portfolio (Unaudited)
(Unaudited) Commercial $499,143 13.99% $470,099 14.47% Construction
666,080 18.67% 626,443 19.28% 1-4 family residential 668,096 18.73%
574,583 17.69% Home equity 107,048 3.01% 95,962 2.95% Commercial
real estate 1,343,401 37.66% 1,229,219 37.84% Agriculture 145,649
4.08% 133,123 4.10% Consumer 137,640 3.86% 119,188 3.67% -------
------- Total Loans $3,567,057 $3,248,617 ========== ==========
Deposit Types Non-interest bearing DDA $1,522,983 20.85% $1,263,407
24.75% Interest bearing DDA 1,082,078 14.82% 707,055 13.85% Money
Market 1,400,673 19.18% 1,147,559 22.48% Savings 309,938 4.24%
246,370 4.83% Time < $100 1,577,431 21.60% 814,165 15.95% Time
> $100 1,410,194 19.31% 926,286 18.14% --------- ------- Total
Deposits $7,303,297 $5,104,842 ========== ========== Loan to
Deposit Ratio 48.8% 63.6% Construction Loans Single family
residential construction $237,191 35.61% $233,196 37.23% Land
development 90,846 13.64% 73,955 11.81% Raw land 89,120 13.38%
90,974 14.52% Residential lots 106,869 16.04% 101,027 16.13%
Commercial lots 39,374 5.91% 35,890 5.73% Commercial construction
and other 102,680 15.42% 91,401 14.58% ------- ------ Total
Construction Loans $666,080 $626,443 ======== ======== Prosperity
Bancshares, Inc.(R) Financial Highlights (Dollars in thousands)
Balance Sheet Data June 30, Mar 31, Dec 31, Sept 30, June 30, 2009
2009 2008 2008 2008 -------- -------- ---------- ---------
---------- (at period end) (Unaudited) (Unaudited) (Unaudited)
(Unaudited) (Unaudited) Total loans $3,451,319 $3,501,300
$3,567,057 $3,248,617 $3,313,328 Investment securities (F)
3,981,109 3,991,200 4,160,401 2,294,403 2,235,703 Federal funds
sold and other temporary investments 128,451 14,930 16,404 25,748
14,230 ------- ------ ------ ------ ------ Total earning assets
7,560,879 7,507,430 7,743,862 5,568,768 5,563,261 Allowance for
credit losses (42,611) (39,238) (36,970) (33,981) (34,085) Cash and
due from banks 142,860 148,938 212,335 159,386 170,966 Goodwill
875,434 874,356 874,654 811,916 811,391 Core deposit intangibles
40,305 42,796 38,196 44,974 47,536 Other real estate 11,101 9,134
4,450 7,538 6,655 Fixed assets, net 149,742 151,544 123,638 123,823
125,000 Other assets 101,241 104,237 112,199 105,485 103,010
----------- ---------- ---------- ---------- ---------- Total
assets $8,838,951 $8,799,197 $9,072,364 $6,787,909 $6,793,734
========== ========== ========== ========== ========== Demand
deposits $1,476,378 $1,510,005 $1,522,983 $1,263,407 $1,285,493
Interest bearing deposits 5,781,517 5,696,874 5,780,314 3,841,435
4,011,141 ---------- ---------- ----------- ---------- ----------
Total deposits 7,257,895 7,206,879 7,303,297 5,104,842 5,296,634
Securities sold under repurchase agreements 96,732 81,773 96,017
100,310 99,225 Federal funds purchased and other borrowings 28,170
28,441 229,395 219,671 42,089 Junior subordinated debentures 92,265
92,265 92,265 92,265 92,265 Other liabilities 64,794 109,291 96,284
41,641 45,916 ---------- --------- --------- --------- ----------
Total liabilities 7,539,856 7,518,649 7,817,258 5,558,729 5,576,129
Shareholders' equity (G) 1,299,095 1,280,548 1,255,106 1,229,180
1,217,605 ---------- --------- ---------- --------- ----------
Total liabilities and equity $8,838,951 $8,799,197 $9,072,364
$6,787,909 $6,793,734 ========== ========== ========== ==========
========== (F) Includes $20,153, $23,784, $15,158, $1,220 and
($633) in unrealized gains (losses) on available for sale
securities for the quarterly periods ending June 30, 2009, March
31, 2009, December 31, 2008, September 30, 2008 and June 30, 2008,
respectively. (G) Includes $13,099, $15,460, $9,853, $793 and
($411) in after-tax unrealized gains (losses) on available for sale
securities for the quarterly periods ending June 30, 2009, March
31, 2009, December 31, 2008, September 30, 2008 and June 30, 2008,
respectively. Prosperity Bancshares, Inc.(R) Financial Highlights
(Dollars in thousands) Three Months Ended June 30, Mar 31, Dec 31,
Sept 30, June 30, 2009 2009 2008 2008 2008 --------- -------
------- -------- ---------- Income Statement Data (Unaudited)
(Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest on loans
$55,248 $55,802 $56,073 $56,925 $55,948 Interest on securities
47,450 49,726 39,713 27,834 25,856 Interest on federal funds sold
and other earning assets 70 38 802 87 175 -------- -------- -------
------- ------- Total interest income 102,768 105,566 96,588 84,846
81,979 -------- -------- ------- ------- ------- Interest expense -
deposits 25,621 29,457 29,663 23,874 25,210 Interest expense -
debentures 959 1,119 1,452 1,410 1,558 Interest expense - other 667
912 1,516 1,756 1,240 -------- -------- ------- ------- -------
Total interest expense 27,247 31,488 32,631 27,040 28,008 --------
-------- ------- ------- ------- Net interest income 75,521 74,078
63,957 57,806 53,971 Provision for credit losses 6,900 6,125 6,000
1,700 1,000 -------- -------- ------- ------- ------- Net interest
income after provision for credit losses 68,621 67,953 57,957
56,106 52,971 -------- -------- ------- ------- ------- Service
charges on deposits accounts 12,863 12,372 13,204 11,348 10,727 Net
gain on sale of assets 200 97 130 34 676 Net gain (loss) on sale of
ORE 415 22 (1,684) (210) (478) Brokered mortgage income 140 70 34
74 113 Net gain on sale of held for sale loans 0 0 0 46 110 Gain on
sale of securities 0 0 0 0 0 Other non- interest income 1,515 2,456
1,824 1,825 1,918 -------- -------- ------- ------- ------- Total
non -interest income 15,133 15,017 13,508 13,117 13,066 --------
-------- ------- ------- ------- Salaries and benefits 20,494
22,648 20,411 17,526 16,751 CDI amortization 2,492 2,664 2,284
2,562 2,459 Net occupancy and equipment 3,514 3,978 3,704 3,088
2,867 Depreciation 2,069 2,001 1,854 1,955 1,920 Data processing
and software amortization 1,562 2,055 1,609 1,319 1,361 Impairment
charge on write-down of securities 0 0 0 14,025 0 Other non-
interest expense 14,169 10,677 7,724 5,755 5,502 -------- --------
------- ------- ------- Total non- interest expense 44,300 44,023
37,586 46,230 30,860 -------- -------- ------- ------- ------- Net
income before taxes 39,454 38,947 33,879 22,993 35,177 Federal
income taxes 12,944 13,469 11,194 7,546 11,740 -------- --------
------- ------- ------- Net income available to common shareholders
$26,510 $25,478 $22,685 $15,447 $23,437 ======== ======== =======
======= ======= Prosperity Bancshares, Inc.(R) Financial Highlights
Comparative Quarterly Asset Quality, Three Months Ended Performance
June 30, Mar 31, Dec 31, Sept 30, June 30, & Capital 2009 2009
2008 2008 2008 Ratios (Unaudited) (Unaudited) (Unaudited)
(Unaudited) (Unaudited) Return on average assets (annualized) 1.20%
1.15% 1.09% 0.91% 1.43% Return on average common equity
(annualized) 8.18% 8.02% 7.30% 5.04% 7.96% Return on average
tangible equity (annualized) 27.98% 28.52% 24.89% 16.83% 26.93% Net
interest margin (tax equivalent) (annualized) 4.04% 3.98% 3.65%
4.15% 4.10% Employees - FTE 1,634 1,684 1,734 1,366 1,397
Efficiency ratio 48.98% 49.47% 48.60% 45.43% 46.50% Non-performing
assets to average earning assets 0.26% 0.16% 0.20% 0.26% 0.22%
Non-performing assets to loans and other real estate 0.57% 0.36%
0.40% 0.45% 0.35% Net charge- offs to average loans 0.10% 0.11%
0.09% 0.05% 0.04% Allowance for credit losses to total loans 1.23%
1.12% 1.04% 1.05% 1.03% Book value per share $28.17 $27.78 $27.24
$26.68 $26.44 Tangible book value per share $8.31 $7.88 $7.43 $8.08
$7.79 Tier 1 risk- based capital 11.24% 10.53% 9.89% 12.71% 12.70%
Total risk- based capital 12.28% 11.48% 10.76% 13.65% 13.67% Tier 1
leverage capital 5.81% 5.48% 5.68% 7.75% 7.87% Tangible equity to
tangible assets 4.84% 4.61% 4.19% 6.28% 6.04% Equity to assets
14.70% 14.55% 13.83% 18.11% 17.92% Prosperity Bancshares, Inc.(R)
Supplemental Financial Data (Unaudited) (Dollars in thousands)
Three Months Ended June 30, 2009 YIELD ANALYSIS Average Interest
Earned Average Balance / Interest Paid Yield/Rate -------
--------------- ------------ Interest Earning Assets: Loans
$3,472,449 $55,248 6.38% Investment securities 3,964,766 47,450
4.79% Federal funds sold and other temporary investments 122,358 70
0.23% ------- --- Total interest earning assets 7,559,573 $102,768
5.45% -------- Allowance for credit losses (39,249) Non-interest
earning assets 1,313,661 --------- Total assets $8,833,985
========== Interest Bearing Liabilities: Interest bearing demand
deposits $1,047,363 $2,182 0.84% Savings and money market deposits
1,878,238 4,619 0.99% Certificates and other time deposits
2,820,910 18,820 2.68% Securities sold under repurchase agreements
92,466 280 1.21% Federal funds purchased and other borrowings
28,937 387 5.36% Junior subordinated debentures 92,265 959 4.17%
------ --- Total interest bearing liabilities $5,960,179 $27,247
1.83% ------- Non-interest bearing liabilities: Non-interest
bearing demand deposits $1,499,888 Other liabilities 78,181 ------
Total liabilities $7,538,248 ---------- Shareholders' equity
$1,295,737 ---------- Total liabilities and shareholders' equity
$8,833,985 ========== Net Interest Income & Margin $75,521
4.01% ======= Net Interest Income & Margin (tax equivalent)
$76,226 4.04% ======= Prosperity Bancshares, Inc.(R) Supplemental
Financial Data (Unaudited) (Dollars in thousands) Three Months
Ended June 30, 2008 YIELD ANALYSIS Interest Earned Average /
Interest Average Balance Paid Yield/Rate ------- ----------
---------- Interest Earning Assets: Loans $3,203,305 $55,948 7.02%
Investment securities 2,131,370 25,856 4.85% Federal funds sold and
other temporary investments 33,803 175 2.08% ------ --- Total
interest earning assets 5,368,478 $81,979 6.14% ------- Allowance
for credit losses (32,813) Non-interest earning assets 1,203,599
--------- Total assets $6,539,264 ========== Interest Bearing
Liabilities: Interest bearing demand deposits $745,413 $1,652 0.89%
Savings and money market deposits 1,370,964 6,678 1.96%
Certificates and other time deposits 1,708,251 16,880 3.97%
Securities sold under repurchase agreements 82,408 574 2.80%
Federal funds purchased and other borrowings Securities sold under
repurchase agreements 76,132 666 3.52% Junior subordinated
debentures 102,575 1,558 6.11% ------- ----- Total interest bearing
liabilities 4,085,743 $28,008 2.76% ------- Non-interest bearing
liabilities: Non-interest bearing demand deposits 1,215,176 Other
liabilities 61,187 ------ Total liabilities 5,362,106 Shareholders'
equity 1,177,158 --------- Total liabilities and shareholders'
equity $6,539,264 ========== Net Interest Income & Margin
$53,971 4.04% ======= Net Interest Income & Margin (tax
equivalent) $54,692 4.10% ======= Prosperity Bancshares, Inc.(R)
Supplemental Financial Data (Unaudited) (Dollars in thousands) Six
Months Ended June 30, 2009 YIELD ANALYSIS Average Interest Earned
Average Balance / Interest Paid Yield/Rate ------- ---------------
------------ Interest Earning Assets: Loans $3,501,488 $111,050
6.40% Investment securities 3,997,278 97,178 4.86% Federal funds
sold and other temporary investments 94,631 106 0.23% ------ ---
Total interest earning assets $7,593,397 $208,334 5.53% --------
Allowance for credit losses (38,240) Non-interest earning assets
1,307,993 --------- Total assets $8,863,150 ========== Interest
Bearing Liabilities: Interest bearing demand deposits $1,058,122
$4,304 0.82% Savings and money market deposits 1,841,147 10,676
1.17% Certificates and other time deposits 2,868,186 40,098 2.82%
Securities sold under repurchase agreements 88,128 628 1.44%
Federal funds purchased and other borrowings 55,865 951 3.43%
Junior subordinated debentures 92,265 $2,078 4.54% ------ ------
Total interest bearing liabilities $6,003,713 $58,735 1.97% -------
Non-interest bearing liabilities: Non-interest bearing demand
deposits $1,498,136 Other liabilities 80,101 ------ Total
liabilities $7,581,950 Shareholders' equity 1,281,200 ---------
Total liabilities and shareholders' equity $8,863,150 ==========
Net Interest Income & Margin $149,599 3.97% ======== Net
Interest Income & Margin (tax equivalent) $150,985 4.01%
======== Prosperity Bancshares, Inc.(R) Supplemental Financial Data
(Unaudited) (Dollars in thousands) Six Months Ended June 30, 2008
YIELD ANALYSIS Average Interest Earned Average Balance / Interest
Paid Yield/Rate ------- --------------- ------------ Interest
Earning Assets: Loans $3,173,240 $114,468 7.25% Investment
securities 2,054,440 50,639 4.93% Federal funds sold and other
temporary investments 82,702 1,337 3.25% ------ ----- Total
interest earning assets 5,310,382 $166,444 6.30% -------- Allowance
for credit losses (32,381) Non-interest earning assets 1,199,982
--------- Total assets $6,477,983 ========== Interest Bearing
Liabilities: Interest bearing demand deposits $807,570 $4,773 1.19%
Savings and money market deposits 1,311,655 14,092 2.16%
Certificates and other time deposits 1,684,444 35,290 4.21%
Securities sold under repurchase agreements 74,241 1,178 3.19%
Federal funds purchased and other borrowings 86,554 1,568 3.64%
Junior subordinated debentures 106,012 3,577 6.79% ------- -----
Total interest bearing liabilities 4,070,476 $60,478 2.99% -------
Non-interest bearing liabilities: Non-interest bearing demand
deposits 1,184,121 Other liabilities 63,032 ------ Total
liabilities 5,317,629 Shareholders' equity 1,160,354 ---------
Total liabilities and shareholders' equity $6,477,983 ==========
Net Interest Income & Margin $105,966 4.01% ======== Net
Interest Income & Margin (tax equivalent) $107,524 4.07%
======== Prosperity Bancshares, Inc.(R) Notes to Selected Financial
Data (Unaudited) (Dollars in thousands) Consolidated Financial
Highlights NOTES TO SELECTED FINANCIAL DATA Prosperity's management
uses certain non GAAP (generally accepted accounting principles)
financial measures to evaluate its performance. Specifically,
Prosperity reviews tangible book value per share, return on average
tangible common equity and the tangible equity to tangible assets
ratio for internal planning and forecasting purposes. Prosperity
has included in this Earnings Release information relating to these
non-GAAP financial measures for the applicable periods presented.
Prosperity believes these non-GAAP financial measures provide
information useful to investors in understanding Prosperity's
financial results and Prosperity believes that its presentation,
together with the accompanying reconciliations, provides a complete
understanding of factors and trends affecting Prosperity's business
and allows investors to view performance in a manner similar to
management, the entire financial services sector, bank stock
analysts and bank regulators. These non-GAAP measures should not be
considered a substitute for GAAP basis measures and results and
Prosperity strongly encourages investors to review its consolidated
financial statements in their entirety and not to rely on any
single financial measure. Because non-GAAP financial measures are
not standardized, it may not be possible to compare these financial
measures with other companies' non-GAAP financial measures having
the same or similar names. Prosperity Bancshares, Inc.(R) Notes to
Selected Financial Data (Unaudited) (Dollars in thousands) Three
Months Ended June 30, Mar 31, Dec 31, Sept 30, June 30, 2009 2009
2008 2008 2008 Net Income $26,510 $25,478 $22,685 $15,447 $23,437
Period end shares outstanding 46,109 46,100 46,080 46,072 46,060
Total assets $8,838,951 $8,799,197 $9,072,364 $6,787,909 $6,793,734
Shareholders' equity 1,299,095 1,280,548 1,255,106 1,229,180
1,217,605 Average shareholders' equity 1,295,737 1,270,380
1,242,491 1,225,159 1,177,158 Goodwill and Core Deposit Intangibles
(CDI) 915,739 917,152 912,850 856,890 858,927 Average goodwill and
Core Deposit Intangibles 916,754 913,010 877,985 857,966 829,065
Tangible shareholders' equity (1) 383,356 363,396 342,256 372,290
358,678 Average tangible shareholders' equity (2) 378,983 357,370
364,506 367,193 348,093 Tangible assets (3) 7,923,212 7,882,045
8,159,514 5,931,019 5,934,807 Tangible book value per share (4)
$8.31 $7.88 $7.43 $8.08 $7.79 Return on average tangible common
equity (5) 27.98% 28.52% 24.89% 16.83% 26.93% Tangible equity to
tangible assets ratio (6) 4.84% 4.61% 4.19% 6.28% 6.04% (1)
Tangible shareholders' equity is calculated by subtracting goodwill
and CDI from shareholders' equity. (2) Average tangible
shareholders' equity is calculated by subtracting average goodwill
and CDI from average shareholders' equity. (3) Tangible assets is
calculated by subtracting goodwill and CDI from total assets. (4)
Tangible book value is calculated by dividing tangible
shareholders' equity by period end shares outstanding. (5) Return
on average tangible common equity is calculated by dividing net
income by average tangible shareholders' equity (annualized). (6)
Tangible equity to tangible assets ratio is calculated by dividing
tangible shareholders' equity by tangible assets. Prosperity
Bancshares, Inc.(R) Notes to Selected Financial Data (Unaudited)
(Dollars in thousands) Six Months Ended June 30, 2009 June 30, 2008
------------- ------------- Net Income $51,988 $46,375 Period end
shares outstanding 46,109 46,060 Total assets $8,838,951 $6,793,734
Shareholders' equity 1,299,095 1,217,605 Average shareholders'
equity 1,281,200 1,160,354 Goodwill and Core Deposit Intangibles
(CDI) 915,739 858,927 Average goodwill and Core Deposit Intangibles
914,915 816,905 Tangible shareholders' equity (1) 383,356 358,678
Average tangible shareholders' equity (2) 366,285 343,449 Tangible
assets (3) 7,923,212 5,934,807 Tangible book value per share (4)
$8.31 $7.79 Return on average tangible common equity (5) 28.39%
27.01% Tangible equity to tangible assets ratio (6) 4.84% 6.04% (1)
Tangible shareholders' equity is calculated by subtracting goodwill
and CDI from shareholders' equity. (2) Average tangible
shareholders' equity is calculated by subtracting average goodwill
and CDI from average shareholders' equity. (3) Tangible assets is
calculated by subtracting goodwill and CDI from total assets. (4)
Tangible book value is calculated by dividing tangible
shareholders' equity by period end shares outstanding. (5) Return
on average tangible common equity is calculated by dividing net
income by average tangible shareholders' equity (annualized). (6)
Tangible equity to tangible assets ratio is calculated by dividing
tangible shareholders' equity by tangible assets. DATASOURCE:
Prosperity Bancshares, Inc. CONTACT: Dan Rollins, President and
Chief Operating Officer of Prosperity Bancshares, Inc.,
+1-281-269-7199, Web Site: http://www.prosperitybanktx.com/
Copyright