HOUSTON, Oct. 21, 2011 /PRNewswire/ -- Prosperity
Bancshares, Inc.® (NASDAQ: PRSP), the parent company of Prosperity
Bank®, reported net income for the quarter ended September 30, 2011 of $36.373 million or $0.77 per diluted common share, an increase in
net income of $4.207 million or
13.1%, compared with $32.166
million or $0.69 per diluted
common share for the same period in 2010.
"Thanks to our customers, our associates and the leadership of
our directors, we continued our strong financial performance,
recording an increase of 13.1% in net income compared to the same
quarter last year. As a result of our associates' calling
efforts, our loans increased 9.5% or $323.8
million over the past 12 months," commented David Zalman, Chairman and Chief Executive
Officer. "Our company continues to exhibit excellent loan
quality and our tangible common equity ratio increased to 6.89%
from 5.73% one year ago – all from retained earnings."
"Our bank is in an enviable position with 175 full service
banking locations throughout one of the fastest growing states in
our nation. We are capitalizing on the current environment by
attracting new loan customers as well as taking care of our
existing customers' growth needs," continued Zalman. "I also
look forward to welcoming Gordon
Muir and his team of talented bankers upon the closing of
our merger with Bank of Texas in
early 2012."
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 September 30, 2011
For the three months ended September 30,
2011, net income was $36.373
million compared with $32.166
million for the same period in 2010. Net income per
diluted common share was $0.77 for
the three months ended September 30,
2011 and $0.69 for the same
period in 2010. Returns on average assets, average common
equity and average tangible common equity for the three months
ended September 30, 2011 were 1.52%,
9.51% and 25.03%, respectively. Prosperity's efficiency ratio
(excluding net gains and losses on the sale of securities and
assets) was 42.38% for the three months ended September 30, 2011.
Net interest income before provision for credit losses for the
quarter ended September 30, 2011
increased 2.8% to $82.538 million
compared with $80.267 million during
the same period in 2010. The increase was attributable to a 1.8%
increase in average earning assets during the same period.
Additionally, the average yield on interest earning assets
decreased 23 basis points while the rate paid on interest bearing
liabilities decreased 30 basis points for the same period. The net
interest margin on a tax equivalent basis increased to 4.02% for
the three months ended September 30,
2011 compared with 3.97% for the same period in 2010.
On a linked quarter basis, the tax equivalent net interest
margin decreased four basis points to 4.02% for the three months
ended September 30, 2011 from 4.06%
reported for the three months ended June 30,
2011.
Non-interest income increased $927,000 or 6.8% to $14.581 million for the three months ended
September 30, 2011 compared with
$13.654 million for the same period
in 2010. The increase was mainly attributable to a reduction
in net loss on the sale of other real estate and an increase in
debit card and ATM card income, partially offset by a decrease in
NSF income.
Non-interest expense decreased $1.442
million or 3.4% to $41.151
million for the three months ended September 30, 2011 compared with $42.593 million for the same period in 2010.
The decrease was attributable primarily due to a decrease in
ORE expenses and reduced FDIC assessments partially offset by an
increase in salaries and benefits expense.
Average loans increased 8.4% or $285.717
million to $3.694 billion for
the quarter ended September 30, 2011
compared with $3.408 billion for the
same period in 2010. Average deposits increased 0.6% or
$44.301 million to $7.653 billion for the quarter ended September 30, 2011 compared with $7.608 billion for the same period in 2010.
Loans at September 30, 2011 were
$3.738 billion, an increase of
$323.811 million or 9.5%, compared
with $3.414 billion at September 30, 2010. Loans increased 2.0%
(7.9% annualized) or $72.382 million
on a linked quarter basis compared with loans of $3.665 billion at June 30,
2011.
Deposits at September 30, 2011
were $7.799 billion, an increase of
$307.159 million or 4.1%, compared
with $7.492 billion at September 30, 2010. Linked quarter deposits
increased $131.047 million or 1.7%
(6.8% annualized) from $7.668 billion
at June 30, 2011.
At September 30, 2011,
construction loans totaled $490.193
million, consisting of $126.926
million of single family residential construction loans;
$44.400 million of land development
loans; $64.178 million of raw land
loans; $88.600 million of residential
lot loans; $54.016 million of
commercial lot loans; and $112.073
million of commercial and other construction loans.
This is an increase of $6.612
million from construction loans at June 30, 2011.
At September 30, 2011, Prosperity
had $9.567 billion in total assets,
$3.738 billion in loans, and
$7.799 billion in deposits. Assets,
loans and deposits at September 30,
2011 increased by 3.6%, 9.5% and 4.1%, respectively,
compared with their level at September 30,
2010.
Asset Quality
Non-performing assets totaled $13.363
million or 0.16% of average earning assets at September 30, 2011 compared with $20.700 million or 0.26% of average earning
assets at September 30, 2010 and
$12.680 million or 0.15% of average
earnings assets at June 30, 2011.
The allowance for credit losses was 1.40% of total loans at
September 30, 2011 compared with
1.50% at September 30, 2010 and 1.42%
of total loans at June 30, 2011.
|
|
|
Non-performing
assets
(In thousands)
|
Sept 30,
2011
|
June 30,
2011
|
Sept 30,
2010
|
|
|
Amount
|
#
|
Amount
|
#
|
Amount
|
#
|
|
|
Commercial
|
$
1,440
|
17
|
$
875
|
15
|
$
1,446
|
20
|
|
|
Construction
|
5,042
|
30
|
4,692
|
26
|
7,740
|
44
|
|
|
1-4 family (including home
equity)
|
3,894
|
38
|
2,875
|
32
|
4,024
|
46
|
|
|
Commercial real estate
(including multi-family)
|
2,885
|
11
|
4,151
|
18
|
7,383
|
9
|
|
|
Agriculture
|
51
|
3
|
51
|
3
|
0
|
0
|
|
|
Consumer
|
51
|
4
|
36
|
3
|
107
|
15
|
|
|
Total
|
$
13,363
|
103
|
$
12,680
|
97
|
$
20,700
|
134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Charge-offs
(In thousands)
|
Three
Months
Ended
Sept 30, 2011
|
Three
Months
Ended
June 30, 2011
|
Three
Months
Ended
Sept 30, 2010
|
|
|
Commercial
|
$
7
|
$
271
|
$
464
|
|
|
Construction
|
(197)
|
455
|
829
|
|
|
1-4 family (including home
equity)
|
134
|
157
|
392
|
|
|
Commercial real estate
(including multi-family)
|
271
|
177
|
2,138
|
|
|
Agriculture
|
--
|
--
|
(4)
|
|
|
Consumer
|
153
|
169
|
554
|
|
|
Total
|
$
368
|
$
1,229
|
$
4,373
|
|
|
|
|
|
|
|
The provision for credit losses was $950,000 for the three months ended September 30, 2011 and $3.000 million for the three months ended
September 30, 2010. Net charge
offs were $368,000 for the three
months ended September 30, 2011 and
$4.373 million for the three months
ended September 30, 2010.
The provision for credit losses was $4.050 million for the nine months ended
September 30, 2011 compared to
$10.685 million for the nine months
ended September 30, 2010. Net
charge offs were $3.121 million for
the nine months ended September 30,
2011 compared to $11.194
million for the nine months ended September 30, 2010.
Results of operations for the nine months ended September 30, 2011
For the nine months ended September 30,
2011, net income was $105.343
million compared with $94.910
million for the same period in 2010. Net income per
diluted common share was $2.24 for
the nine months ended September 30,
2011 compared with $2.03 for
the same period in 2010. Returns on average assets, average
common equity and average tangible common equity for the nine
months ended September 30, 2011 were
1.46%, 9.37% and 25.58%, respectively. Prosperity's
efficiency ratio was 43.41% for the nine months ended September 30, 2011.
Net interest income before provision for credit losses for the
nine months ended September 30, 2011
increased $7.942 million or 3.3%, to
$246.581 million compared with
$238.639 million during the same
period in 2010. The increase was attributable primarily to a
4.1% increase in average earning assets during the same period.
Non-interest income increased $2.050
million or 5.1% to $41.978
million for the nine months ended September 30, 2011 compared with $39.928 million for the same period in 2010.
The increase was mainly attributable to a decrease in net
loss on the sale of other real estate and an increase in debit and
ATM card income partially offset by a decrease in NSF income.
Non-interest expense decreased $7,000 or 0.01% to $125.360 million for the nine months ended
September 30, 2011 compared with
$125.367 million for the same period
in 2010.
Dividend Increase
Prosperity Bancshares, Inc. has increased their regular cash
dividend to $0.78 per share per year.
The fourth quarter cash dividend of $0.195, an increase of 11.4%, is payable on
January 2, 2012 to all shareholders
of record as of December 16,
2011.
Conference Call
Prosperity's management team will host a conference call on
Friday, October 21, 2011 at
10:30 a.m. Eastern Daylight Time
(9:30 a.m. Central Daylight Time) to
discuss Prosperity's third quarter earnings. Individuals and
investment professionals may participate in the call by dialing
800-895-0198, the reference code is PBTX.
Alternatively, individuals may listen to the live webcast of the
presentation by visiting Prosperity's website at
www.prosperitybanktx.com. The webcast may be accessed
directly from Prosperity's Home page under News and Events.
Acquisition of Texas Bankers, Inc.
On September 13, 2011 Prosperity
Bancshares, Inc.® announced the signing of a definitive
agreement to acquire Texas Bankers, Inc. and its wholly-owned
subsidiary, Bank of Texas,
Austin, Texas.
Texas Bankers, Inc. operates three (3) banking offices in the
Austin, Texas CMSA including a
location in Rollingwood, which will be consolidated with
Prosperity's Westlake location and
remain in Bank of Texas'
Rollingwood banking office; one in downtown Austin which will be consolidated into
Prosperity's downtown Austin
location and another in Thorndale.
As of September 30, 2011, Bank
of Texas reported total assets of
$71.3 million, loans of $30.5 million and deposits of $63.1 million.
Under the terms of the definitive agreement, Prosperity will
issue 315,000 shares of Prosperity common stock for all outstanding
shares of Texas Bankers capital stock, subject to certain
conditions and potential adjustments. The transaction is
expected to be consummated during the first quarter of 2012,
although delays may occur.
Prosperity Bancshares, Inc.®
Prosperity Bancshares, Inc.®, a $9.6
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
seventy five (175) full service banking locations; sixty (60) in
the Houston area; twenty (20) in
the South Texas area including
Corpus Christi and Victoria; thirty-one (31) in the Dallas/Fort Worth area; twenty-one (21) in the
East Texas area; thirty-three (33)
in the Central Texas area
including Austin and San Antonio; and ten (10) in the Bryan/College Station area.
|
Bryan/College Station Area
-
|
Dallas/Fort Worth Area
-
|
Jacksonville
|
Bay City
|
|
|
|
Kerens
|
Beaumont
|
|
|
Bryan
|
Dallas -
|
Longview
|
Cinco Ranch
|
|
|
Bryan-East
|
Abrams Centre
|
Mount Vernon
|
Cleveland
|
|
|
Bryan-North
|
Balch Springs
|
Palestine
|
East Bernard
|
|
|
Caldwell
|
Camp Wisdom
|
Rusk
|
El Campo
|
|
|
College Station
|
Cedar Hill
|
Seven Points
|
Dayton
|
|
|
Greens Prairie
|
Central Expressway
|
Teague
|
Galveston
|
|
|
Madisonville
|
East Renner
|
Tyler
|
Groves
|
|
|
Navasota
|
Frisco
|
Tyler-University
|
Hempstead
|
|
|
Rock Prairie
|
Frisco-West
|
Winnsboro
|
Hitchcock
|
|
|
Wellborn Road
|
Independence
|
|
Katy
|
|
|
Kiest
|
|
Liberty
|
|
|
Central Texas Area
-
|
McKinney
|
Houston Area -
|
Magnolia
|
|
|
McKinney-Stonebridge
|
|
Mont Belvieu
|
|
|
Austin -
|
Midway
|
Houston -
|
Nederland
|
|
|
183
|
Preston Forest
|
Aldine
|
Needville
|
|
|
Allandale
|
Preston Road
|
Allen Parkway
|
Shadow Creek
|
|
|
Cedar Park
|
Red Oak
|
Bellaire
|
Sweeny
|
|
|
Congress
|
Sachse
|
Beltway
|
Tomball
|
|
|
Lakeway
|
The Colony
|
Clear Lake
|
Waller
|
|
|
Liberty Hill
|
Turtle Creek
|
Copperfield
|
West Columbia
|
|
|
Northland
|
Westmoreland
|
Cypress
|
Wharton
|
|
|
Oak Hill
|
|
Downtown
|
Winnie
|
|
|
Parmer Lane
|
|
Eastex
|
Wirt
|
|
|
Research Blvd
|
Fort Worth -
|
Fairfield
|
|
|
|
West Lake
|
Haltom City
|
First Colony
|
|
|
|
Keller
|
Gessner
|
South Texas Area
-
|
|
|
Roanoke
|
Gladebrook
|
|
|
|
Other Central
Texas
|
Stockyards
|
Harrisburg
|
Corpus Christi -
|
|
|
Locations -
|
|
Heights
|
Airline
|
|
|
Bastrop
|
|
Highway 6 West
|
Carmel
|
|
|
Cuero
|
Other Dallas/Fort
Worth
|
Hillcroft
|
Northwest
|
|
|
Dime Box
|
Locations -
|
Little York
|
Saratoga
|
|
|
Dripping Springs
|
Azle
|
Medical Center
|
Water Street
|
|
|
Elgin
|
Ennis
|
Memorial Drive
|
|
|
|
Flatonia
|
Gainesville
|
Northside
|
Other South Texas
|
|
|
Georgetown
|
Mesquite
|
Pasadena
|
Locations -
|
|
|
Gonzales
|
Muenster
|
Pecan Grove
|
Alice
|
|
|
Hallettsville
|
Sanger
|
Piney Point
|
Aransas Pass
|
|
|
Kingsland
|
Waxahachie
|
River Oaks
|
Beeville
|
|
|
La Grange
|
|
Royal Oaks
|
Edna
|
|
|
Lexington
|
|
Sugar Land
|
Goliad
|
|
|
New Braunfels
|
East Texas Area -
|
SW Medical Center
|
Kingsville
|
|
|
Pleasanton
|
Athens
|
Tanglewood
|
Mathis
|
|
|
Round Rock
|
Athens-South
|
Uptown
|
Palacios
|
|
|
San Antonio
|
Blooming Grove
|
Waugh Drive
|
Port Aransas
|
|
|
Schulenburg
|
Canton
|
West University
|
Port Lavaca
|
|
|
Seguin
|
Carthage
|
Westheimer
|
Portland
|
|
|
Smithville
|
Corsicana
|
Woodcreek
|
Rockport
|
|
|
Weimar
|
Crockett
|
|
Sinton
|
|
|
Yoakum
|
Eustace
|
Other Houston
Area
|
Victoria
|
|
|
Yorktown
|
Grapeland
|
Locations -
|
Victoria-North
|
|
|
Gun Barrel City
|
Angleton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In connection with the proposed acquisition of Texas
Bankers, Inc., Prosperity has filed with the Securities and
Exchange Commission a registration statement on Form S-4 to
register the shares of Prosperity's common stock to be issued to
the shareholders of Texas Bankers. The registration statement
includes a proxy statement/prospectus which will be sent to the
shareholders of Texas Bankers seeking their approval of the
proposed transaction.
WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION
STATEMENT ON FORM S-4 AND THE PROXY STATEMENT/PROSPECTUS INCLUDED
WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER
RELEVANT DOCUMENTS TO BE FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION IN CONNECTION WITH THE PROPOSED TRANSACTION, BECAUSE
THEY CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY, TEXAS
BANKERS AND THE PROPOSED TRANSACTION.
Investors and security holders may obtain free copies of these
documents through the website maintained by the Securities and
Exchange Commission at http://www.sec.gov. Documents filed with the
SEC by Prosperity will be available free of charge by directing a
request by telephone or mail to Prosperity Bancshares, Inc.,
Prosperity Bank Plaza, 4295 San Felipe, Houston, Texas 77027 Attn: Investor Relations.
Prosperity's telephone number is (281) 269-7199.
"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, 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, 2010 and other reports and
statements Prosperity has filed with the SEC. Copies of the SEC
filings for Prosperity Bancshares, Inc.® may be downloaded from the
Internet at no charge from
www.prosperitybanktx.com.
|
Prosperity
Bancshares, Inc. ®
Financial
Highlights
(Dollars and share amounts in
thousands, except per share data)
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
Sept 30,
2011
|
Sept 30,
2010
|
Sept 30,
2011
|
Sept 30,
2010
|
|
|
Selected Earnings and
Per
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income
|
$
93,189
|
$
96,247
|
$
282,250
|
$
292,101
|
|
|
Total interest
expense
|
10,651
|
15,980
|
35,669
|
53,462
|
|
|
Net interest income
|
82,538
|
80,267
|
246,581
|
238,639
|
|
|
Provision for credit
losses
|
950
|
3,000
|
4,050
|
10,685
|
|
|
Net interest income
after
|
|
|
|
|
|
|
provision for
credit losses
|
81,588
|
77,267
|
242,531
|
227,954
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
14,581
|
13,654
|
41,978
|
39,928
|
|
|
Total non-interest
expense
|
41,151
|
42,593
|
125,360
|
125,367
|
|
|
Net income before
taxes
|
55,018
|
48,328
|
159,149
|
142,515
|
|
|
Federal income taxes
|
18,645
|
16,162
|
53,806
|
47,605
|
|
|
|
|
|
|
|
|
Net income
|
$
36,373
|
$
32,166
|
$
105,343
|
$
94,910
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$0.78
|
$0.69
|
$2.25
|
$2.04
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$0.77
|
$0.69
|
$2.24
|
$2.03
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
46,893
|
46,653
|
46,893
|
46,653
|
|
|
Weighted average
shares
|
|
|
|
|
|
|
outstanding
(basic)
|
46,890
|
46,640
|
46,830
|
46,604
|
|
|
Weighted average
shares
|
|
|
|
|
|
|
outstanding
(diluted)
|
47,033
|
46,774
|
47,013
|
46,835
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc. ®
Financial
Highlights
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
Sept 30,
2011
|
Sept 30,
2010
|
Sept 30,
2011
|
Sept 30,
2010
|
|
|
Balance Sheet
Averages
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Total loans
|
$
3,694,039
|
$
3,408,322
|
3,614,590
|
3,385,337
|
|
|
Investment securities
|
4,524,213
|
4,667,697
|
4,635,880
|
4,497,623
|
|
|
Federal funds sold
and
|
|
|
|
|
|
|
other
temporary
|
|
|
|
|
|
|
investments
|
18,636
|
12,812
|
15,031
|
60,618
|
|
|
Total earning assets
|
8,236,888
|
8,088,831
|
8,265,501
|
7,943,578
|
|
|
Allowance for credit
losses
|
(52,208)
|
(52,577)
|
(51,924)
|
(52,354)
|
|
|
Cash and due from
banks
|
125,750
|
127,497
|
129,526
|
129,520
|
|
|
Goodwill
|
924,537
|
921,714
|
924,496
|
902,109
|
|
|
Core deposit intangibles
(CDI)
|
23,814
|
32,178
|
25,737
|
33,445
|
|
|
Other real estate
(ORE)
|
8,637
|
15,840
|
10,360
|
14,952
|
|
|
Fixed assets, net
|
160,476
|
160,831
|
159,890
|
158,158
|
|
|
Other assets
|
132,180
|
143,407
|
138,896
|
142,019
|
|
|
Total assets
|
$
9,560,074
|
$
9,437,721
|
$
9,602,482
|
$
9,271,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits
|
$
1,828,957
|
$
1,577,013
|
$
1,758,182
|
$
1,535,936
|
|
|
Interest bearing
deposits
|
5,823,627
|
6,031,270
|
5,943,012
|
6,023,479
|
|
|
Total deposits
|
7,652,584
|
7,608,283
|
7,701,194
|
7,559,415
|
|
|
Securities sold under
|
|
|
|
|
|
|
repurchase
agreements
|
90,821
|
94,181
|
70,425
|
82,925
|
|
|
Federal funds purchased
and
|
|
|
|
|
|
|
other
borrowings
|
135,336
|
159,423
|
181,656
|
79,127
|
|
|
Junior subordinated
|
|
|
|
|
|
|
debentures
|
85,055
|
92,265
|
87,058
|
92,265
|
|
|
Other liabilities
|
66,560
|
63,785
|
62,765
|
64,433
|
|
|
Shareholders'
equity(A)
|
1,529,718
|
1,419,784
|
1,499,384
|
1,393,262
|
|
|
Total liabilities and
equity
|
$
9,560,074
|
$
9,437,721
|
$
9,602,482
|
$
9,271,427
|
|
|
|
|
(A) Includes $15,702 and
$18,392 in after tax unrealized gains on available for sale
securities for the three months ending September 30, 2011 and
September 30, 2010, respectively, and $14,735 and $17,752 for the
nine months ending September 30, 2011 and September 30, 2010,
respectively.
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc. ®
Financial
Highlights
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
Sept 30,
2011
|
Sept 30,
2010
|
Sept 30,
2011
|
Sept 30,
2010
|
|
|
Income Statement
Data
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Interest on loans
|
$
54,471
|
$
52,855
|
$
160,374
|
$
156,989
|
|
|
Interest on
securities
|
38,714
|
43,382
|
121,861
|
134,999
|
|
|
Interest on federal funds sold
and
|
|
|
|
|
|
|
other temporary
investments
|
4
|
10
|
15
|
113
|
|
|
Total interest income
|
93,189
|
96,247
|
282,250
|
292,101
|
|
|
Interest expense –
deposits
|
9,717
|
14,702
|
32,293
|
49,760
|
|
|
Interest expense –
debentures
|
607
|
857
|
2,352
|
2,447
|
|
|
Interest expense –
other
|
327
|
421
|
1,024
|
1,255
|
|
|
Total interest
expense
|
10,651
|
15,980
|
35,669
|
53,462
|
|
|
Net interest income
(B)
|
82,538
|
80,267
|
246,581
|
238,639
|
|
|
Provision for credit
losses
|
950
|
3,000
|
4,050
|
10,685
|
|
|
Net interest income
after
|
|
|
|
|
|
|
provision for
credit losses
|
81,588
|
77,267
|
242,531
|
227,954
|
|
|
Non-sufficient funds (NSF)
fees
|
6,249
|
7,274
|
18,582
|
20,675
|
|
|
Debit card and ATM card
income
|
3,941
|
3,393
|
11,202
|
9,321
|
|
|
Service charges on deposit
accounts
|
2,472
|
2,534
|
7,466
|
7,474
|
|
|
Net gain on sale of
assets
|
17
|
1
|
377
|
400
|
|
|
Net gain (loss) on sale of
ORE
|
95
|
(1,364)
|
(431)
|
(3,347)
|
|
|
Net loss on sale of
securities
|
--
|
--
|
(581)
|
--
|
|
|
Other non-interest
income
|
1,807
|
1,816
|
5,363
|
5,405
|
|
|
Total non-interest
income
|
14,581
|
13,654
|
41,978
|
39,928
|
|
|
Salaries and benefits
(C)
|
23,601
|
22,016
|
70,799
|
65,559
|
|
|
CDI amortization
|
1,924
|
2,274
|
5,901
|
6,844
|
|
|
Net occupancy and
equipment
|
3,784
|
4,036
|
10,979
|
11,178
|
|
|
Depreciation
|
2,041
|
2,161
|
6,099
|
6,314
|
|
|
Debit card, data
processing
|
|
|
|
|
|
|
and software
amortization
|
1,954
|
1,550
|
5,406
|
4,707
|
|
|
Regulatory assessments
and
|
|
|
|
|
|
|
FDIC
insurance
|
1,488
|
2,817
|
7,383
|
8,227
|
|
|
ORE expense
|
235
|
1,053
|
821
|
2,470
|
|
|
Other non-interest
expense
|
6,124
|
6,686
|
17,972
|
20,068
|
|
|
Total non-interest
expense
|
41,151
|
42,593
|
125,360
|
125,367
|
|
|
Net income before
taxes
|
55,018
|
48,328
|
159,149
|
142,515
|
|
|
Federal income taxes
|
18,645
|
16,162
|
53,806
|
47,605
|
|
|
Net income available
|
|
|
|
|
|
|
to common
shareholders
|
$
36,373
|
$
32,166
|
$
105,343
|
$
94,910
|
|
|
|
|
|
|
|
|
|
|
(B) Net interest income on a tax
equivalent basis would be $83,440 and $81,014 for the three months
ended September 30, 2011 and September 30, 2010, respectively, and
$249,345 and $240,811 for the nine months ended September 30, 2011
and September 30, 2010, respectively.
|
|
|
|
|
(C) Salaries and benefits
includes stock-based compensation expense of $961 and $729 for the
three months ended September 30, 2011 and September 30, 2010,
respectively, and $2,604 and $2,212 for the nine months ended
September 30, 2011 and September 30, 2010,
respectively.
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights
(Dollars and share amounts in
thousands, except per share data)
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
|
|
Sept 30,
2011
|
Sept 30,
2010
|
Sept 30,
2011
|
Sept 30,
2010
|
|
|
Common Share and
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
Other
Data
|
|
|
|
|
|
|
Employees - FTE
|
1,678
|
1,719
|
1,678
|
1,719
|
|
|
|
|
|
|
|
|
Book value per share
|
$
32.87
|
$
30.64
|
$
32.87
|
$
30.64
|
|
|
Tangible book value per
share
|
$
12.67
|
$
10.17
|
$
12.67
|
$
10.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
46,893
|
46,653
|
46,893
|
46,653
|
|
|
Weighted average
shares
|
|
|
|
|
|
|
outstanding
(basic)
|
46,890
|
46,640
|
46,830
|
46,604
|
|
|
Weighted average
shares
|
|
|
|
|
|
|
outstanding
(diluted)
|
47,033
|
46,774
|
47,013
|
46,835
|
|
|
|
|
|
|
|
|
Non-accrual loans
|
$
5,105
|
$
7,530
|
$
5,105
|
$
7,530
|
|
|
Restructured loans
|
0
|
0
|
0
|
0
|
|
|
Accruing loans 90 or
more
|
|
|
|
|
|
|
days past
due
|
20
|
1,776
|
20
|
1,776
|
|
|
Total non-performing
loans
|
5,125
|
9,306
|
5,125
|
9,306
|
|
|
Repossessed assets
|
22
|
161
|
22
|
161
|
|
|
Other real estate
|
8,216
|
11,233
|
8,216
|
11,233
|
|
|
Total non-performing
assets
|
$
13,363
|
$
20,700
|
$
13,363
|
$
20,700
|
|
|
|
|
|
|
|
|
Allowance for credit losses
at
|
|
|
|
|
|
|
end of
period
|
$
52,513
|
$
51,354
|
$
52,513
|
$
51,354
|
|
|
|
|
|
|
|
|
Net charge-offs
|
$
368
|
$
4,373
|
$
3,121
|
$
11,194
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
0.78
|
$
0.69
|
$
2.25
|
$
2.04
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
0.77
|
$
0.69
|
$
2.24
|
$
2.03
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
Sept 30,
2011
|
Sept 30,
2010
|
Sept 30,
2011
|
Sept 30,
2010
|
|
|
Performance
Ratios
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Return on average assets
(annualized)
|
1.52%
|
1.36%
|
1.46%
|
1.36%
|
|
|
Return on average
common
|
|
|
|
|
|
|
equity
(annualized)
|
9.51%
|
9.06%
|
9.37%
|
9.08%
|
|
|
Return on average
tangible
|
|
|
|
|
|
|
common equity
(annualized)
|
25.03%
|
27.62%
|
25.58%
|
27.65%
|
|
|
Net interest margin
|
|
|
|
|
|
|
(tax equivalent)
(annualized) (D)
|
4.02%
|
3.97%
|
4.03%
|
4.05%
|
|
|
Efficiency ratio(E)
|
42.38%
|
45.35%
|
43.41%
|
47.07%
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to
|
|
|
|
|
|
|
average earning
assets
|
0.16%
|
0.26%
|
0.16%
|
0.26%
|
|
|
Non-performing assets to
loans
|
|
|
|
|
|
|
and other real
estate
|
0.36%
|
0.60%
|
0.36%
|
0.60%
|
|
|
Net charge-offs to average
loans
|
0.01%
|
0.13%
|
0.09%
|
0.33%
|
|
|
Allowance for credit losses
to
|
|
|
|
|
|
|
total
loans
|
1.40%
|
1.50%
|
1.40%
|
1.50%
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
$46.87
|
$36.05
|
$46.87
|
$43.66
|
|
|
Low
|
$30.91
|
$28.27
|
$30.91
|
$28.27
|
|
|
Period end market
price
|
$32.68
|
$32.47
|
$32.68
|
$32.47
|
|
|
|
(D) Net interest margin for all
periods presented is calculated on an actual 365 day
basis.
|
|
(E)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). Additionally, taxes are not part of this
calculation.
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights
(Dollars in
thousands)
|
|
|
Sept 30,
2011
|
June 30,
2011
|
March 31,
2011
|
Dec 31,
2010
|
|
|
Loan Portfolio
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$ 451,541
|
12.1%
|
$ 455,791
|
12.4%
|
$ 460,066
|
12.9%
|
$ 440,480
|
12.6%
|
|
|
Construction
|
490,193
|
13.1%
|
483,581
|
13.2%
|
494,159
|
13.8%
|
502,327
|
14.4%
|
|
|
1-4 family
residential
|
981,388
|
26.3%
|
941,250
|
25.7%
|
882,807
|
24.7%
|
824,057
|
23.7%
|
|
|
Home equity
|
139,553
|
3.7%
|
131,213
|
3.6%
|
123,696
|
3.4%
|
118,781
|
3.4%
|
|
|
Commercial real
estate
|
1,426,704
|
38.2%
|
1,411,501
|
38.5%
|
1,385,031
|
38.8%
|
1,370,649
|
39.3%
|
|
|
Agriculture
|
168,011
|
4.5%
|
160,780
|
4.4%
|
144,535
|
4.1%
|
140,752
|
4.1%
|
|
|
Consumer
|
80,240
|
2.1%
|
81,132
|
2.2%
|
82,626
|
2.3%
|
87,977
|
2.5%
|
|
|
Total Loans
|
$3,737,630
|
|
$3,665,248
|
|
$3,572,920
|
|
$3,485,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
DDA
|
$1,861,907
|
23.9%
|
$1,788,756
|
23.3%
|
$1,730,427
|
22.2%
|
$1,673,190
|
22.4%
|
|
|
Interest bearing DDA
|
1,332,914
|
17.1%
|
1,358,649
|
17.7%
|
1,432,766
|
18.3%
|
1,412,337
|
19.0%
|
|
|
Money Market
|
1,995,248
|
25.6%
|
1,878,679
|
24.5%
|
2,014,674
|
25.8%
|
1,748,344
|
23.5%
|
|
|
Savings
|
498,451
|
6.4%
|
471,082
|
6.1%
|
454,649
|
5.8%
|
423,026
|
5.6%
|
|
|
Time < $100
|
1,005,672
|
12.9%
|
1,037,492
|
13.6%
|
1,072,343
|
13.7%
|
1,119,336
|
15.0%
|
|
|
Time > $100
|
1,104,547
|
14.1%
|
1,133,034
|
14.8%
|
1,111,525
|
14.2%
|
1,078,687
|
14.5%
|
|
|
Total Deposits
|
$7,798,739
|
|
$7,667,692
|
|
$7,816,384
|
|
$7,454,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
45.9%
|
|
47.8%
|
|
45.7%
|
|
46.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family residential
construction
|
$ 126,926
|
25.9%
|
$ 124,995
|
25.8%
|
$ 112,175
|
22.7%
|
$ 118,207
|
23.5%
|
|
|
Land development
|
44,400
|
9.1%
|
46,405
|
9.6%
|
50,600
|
10.2%
|
52,773
|
10.5%
|
|
|
Raw land
|
64,178
|
13.1%
|
69,769
|
14.4%
|
70,074
|
14.2%
|
64,524
|
12.9%
|
|
|
Residential lots
|
88,600
|
18.1%
|
86,515
|
17.9%
|
86,359
|
17.5%
|
88,648
|
17.6%
|
|
|
Commercial lots
|
54,016
|
11.0%
|
54,419
|
11.3%
|
50,543
|
10.2%
|
52,183
|
10.4%
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
construction and
other
|
112,073
|
22.8%
|
101,478
|
21.0%
|
124,408
|
25.2%
|
_
125,992
|
25.1%
|
|
|
Total Construction
Loans
|
$
490,193
|
|
$
483,581
|
|
$
494,159
|
|
$
502,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights
(Dollars in
thousands)
|
|
|
Sept 30,
2011
|
June 30,
2011
|
Mar 31,
2011
|
Dec 31,
2010
|
Sept 30,
2010
|
|
|
Balance Sheet
Data
(at period end)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Total loans
|
$ 3,737,630
|
$ 3,665,248
|
$ 3,572,920
|
$ 3,485,023
|
$ 3,413,819
|
|
|
Investment securities
(F)
|
4,430,530
|
4,641,664
|
4,798,642
|
4,617,116
|
4,472,639
|
|
|
Federal funds sold
|
294
|
350
|
517
|
393
|
553
|
|
|
Allowance for credit
losses
|
(52,513)
|
(51,932)
|
(51,760)
|
(51,584)
|
(51,354)
|
|
|
Cash and due from
banks
|
211,261
|
145,910
|
145,521
|
158,975
|
140,678
|
|
|
Goodwill
|
924,537
|
924,537
|
924,537
|
924,258
|
923,933
|
|
|
Core deposit
intangibles
|
22,874
|
24,799
|
26,742
|
28,776
|
30,948
|
|
|
Other real estate
|
8,216
|
8,841
|
10,465
|
11,053
|
11,233
|
|
|
Fixed assets, net
|
160,099
|
160,119
|
159,050
|
159,053
|
159,717
|
|
|
Other assets
|
124,159
|
137,611
|
136,313
|
143,509
|
136,336
|
|
|
Total assets
|
$
9,567,087
|
$
9,657,147
|
$
9,722,947
|
$
9,476,572
|
$
9,238,502
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
$ 1,861,907
|
$ 1,788,756
|
$ 1,730,427
|
$ 1,673,190
|
$ 1,623,078
|
|
|
Interest bearing
deposits
|
5,936,832
|
5,878,936
|
6,085,957
|
5,781,730
|
5,868,502
|
|
|
Total deposits
|
7,798,739
|
7,667,692
|
7,816,384
|
7,454,920
|
7,491,580
|
|
|
Securities sold under
|
|
|
|
|
|
|
|
repurchase
agreements
|
66,166
|
91,288
|
51,847
|
60,659
|
96,416
|
|
|
Federal funds purchased
and
|
|
|
|
|
|
|
|
other
borrowings
|
13,583
|
248,839
|
228,092
|
374,433
|
71,686
|
|
|
Junior subordinated
|
|
|
|
|
|
|
|
debentures
|
85,055
|
85,055
|
85,055
|
92,265
|
92,265
|
|
|
Other liabilities
|
62,205
|
52,625
|
61,071
|
41,956
|
56,985
|
|
|
Total liabilities
|
8,025,748
|
8,145,499
|
8,242,449
|
8,024,233
|
7,808,932
|
|
|
Shareholders' equity
(G)
|
1,541,339
|
1,511,648
|
1,480,498
|
1,452,339
|
1,429,570
|
|
|
Total liabilities and
equity
|
$
9,567,087
|
$
9,657,147
|
$
9,722,947
|
$
9,476,572
|
$
9,238,502
|
|
|
|
|
|
|
|
|
|
(F) Includes $24,278, $23,647,
$21,088, $22,007 and $26,869 in unrealized gains on available for
sale securities for the quarterly periods ending September
30, 2011, June 30, 2011, March 31, 2011, December 31, 2010, and
September 30, 2010, respectively.
|
|
|
|
|
(G) Includes $15,781, $15,371,
$13,707, $14,304 and $17,465 in after-tax unrealized gains on
available for sale securities for the quarterly periods ending
September 30, 2011, June 30, 2011, March 31, 2011, December 31,
2010, and September 30, 2010, respectively.
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
Sept 30,
2011
|
June 30,
2011
|
Mar 31,
2011
|
Dec 31,
2010
|
Sept 30,
2010
|
|
|
Income Statement
Data
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Interest on loans
|
$
54,471
|
$
53,703
|
$
52,200
|
$
52,722
|
$
52,855
|
|
|
Interest on
securities
|
38,714
|
41,943
|
41,204
|
39,708
|
43,382
|
|
|
Interest on federal
funds
|
|
|
|
|
|
|
|
sold and other
earning assets
|
4
|
6
|
5
|
6
|
10
|
|
|
Total interest
income
|
93,189
|
95,652
|
93,409
|
92,436
|
96,247
|
|
|
Interest expense -
deposits
|
9,717
|
11,064
|
11,512
|
11,749
|
14,702
|
|
|
Interest expense -
debentures
|
607
|
598
|
1,147
|
803
|
857
|
|
|
Interest expense -
other
|
327
|
360
|
337
|
375
|
421
|
|
|
Total interest
expense
|
10,651
|
12,022
|
12,996
|
12,927
|
15,980
|
|
|
Net interest
income
|
82,538
|
83,630
|
80,413
|
79,509
|
80,267
|
|
|
Provision for credit
losses
|
950
|
1,400
|
1,700
|
2,900
|
3,000
|
|
|
Net interest income
after
|
|
|
|
|
|
|
|
provision for
credit losses
|
81,588
|
82,230
|
78,713
|
76,609
|
77,267
|
|
|
Non-sufficient funds (NSF)
fees
|
6,249
|
6,226
|
6,107
|
6,905
|
7,274
|
|
|
Debit card and ATM card
income
|
3,941
|
3,809
|
3,452
|
3,261
|
3,393
|
|
|
Service charges on deposit
accounts
|
2,472
|
2,511
|
2,483
|
2,614
|
2,534
|
|
|
Net gain (loss) on sale of
assets
|
17
|
195
|
165
|
2
|
1
|
|
|
Net (loss) gain on sale of
ORE
|
95
|
(366)
|
(160)
|
(915)
|
(1,364)
|
|
|
Net loss on sale of
securities
|
--
|
(581)
|
--
|
--
|
--
|
|
|
Other non-interest
income
|
1,807
|
1,736
|
1,820
|
2,038
|
1,816
|
|
|
Total non-interest
income
|
14,581
|
13,530
|
13,867
|
13,905
|
13,654
|
|
|
Salaries and benefits
|
23,601
|
23,994
|
23,204
|
21,421
|
22,016
|
|
|
CDI amortization
|
1,924
|
1,943
|
2,034
|
2,172
|
2,274
|
|
|
Net occupancy and
equipment
|
3,784
|
3,547
|
3,648
|
3,975
|
4,036
|
|
|
Depreciation
|
2,041
|
2,037
|
2,021
|
1,999
|
2,161
|
|
|
Debit card, data processing
and
|
|
|
|
|
|
|
|
software
amortization
|
1,954
|
1,780
|
1,672
|
1,515
|
1,550
|
|
|
Regulatory assessments
and
|
|
|
|
|
|
|
|
FDIC
insurance
|
1,488
|
2,894
|
3,001
|
2,812
|
2,817
|
|
|
ORE expense
|
235
|
294
|
292
|
1,013
|
1,053
|
|
|
Other non-interest
expense
|
6,124
|
6,025
|
5,823
|
6,320
|
6,686
|
|
|
Total non-interest
expense
|
41,151
|
42,514
|
41,695
|
41,227
|
42,593
|
|
|
Net income before
taxes
|
55,018
|
53,246
|
50,885
|
49,287
|
48,328
|
|
|
Federal income taxes
|
18,645
|
18,154
|
17,007
|
16,489
|
16,162
|
|
|
Net income
available
|
|
|
|
|
|
|
|
to common
shareholders
|
$
36,373
|
$
35,092
|
$
33,878
|
$
32,798
|
$
32,166
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights
|
|
|
Comparative
Quarterly
|
Three Months
Ended
|
|
|
Asset Quality,
Performance
|
Sept 30,
2011
|
June 30,
2011
|
Mar 31,
2011
|
Dec 31,
2010
|
Sept 30,
2010
|
|
|
& Capital
Ratios
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
Return on average
|
|
|
|
|
|
|
|
assets
(annualized)
|
1.52%
|
1.45%
|
1.42%
|
1.41%
|
1.36%
|
|
|
Return on average
common
|
|
|
|
|
|
|
|
equity
(annualized)
|
9.51%
|
9.36%
|
9.22%
|
9.08%
|
9.06%
|
|
|
Return on average
tangible
|
|
|
|
|
|
|
|
common equity
(annualized)
|
25.03%
|
25.56%
|
26.22%
|
26.70%
|
27.62%
|
|
|
Net interest margin
|
|
|
|
|
|
|
|
(tax equivalent)
(annualized)
|
4.02%
|
4.06%
|
4.02%
|
3.99%
|
3.97%
|
|
|
|
|
|
|
|
|
|
Employees – FTE
|
1,678
|
1,675
|
1,672
|
1,708
|
1,719
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
|
42.38%
|
43.58%
|
44.30%
|
44.13%
|
45.35%
|
|
|
Non-performing assets
to
|
|
|
|
|
|
|
|
average earning
assets
|
0.16%
|
0.15%
|
0.16%
|
0.20%
|
0.26%
|
|
|
Non-performing assets to
loans
|
|
|
|
|
|
|
|
and other real
estate
|
0.36%
|
0.35%
|
0.36%
|
0.45%
|
0.60%
|
|
|
Net charge-offs to
|
|
|
|
|
|
|
|
average
loans
|
0.01%
|
0.03%
|
0.04%
|
0.08%
|
0.13%
|
|
|
Allowance for credit losses
to
|
|
|
|
|
|
|
|
total
loans
|
1.40%
|
1.42%
|
1.45%
|
1.48%
|
1.50%
|
|
|
|
|
|
|
|
|
|
Book value per share
|
$32.87
|
$32.24
|
$31.65
|
$31.11
|
$30.64
|
|
|
|
|
|
|
|
|
|
Tangible book value per
share
|
$12.67
|
$11.99
|
$11.31
|
$10.70
|
$10.17
|
|
|
|
|
|
|
|
|
|
Tier 1 risk-based
capital
|
15.47%
|
14.72%
|
14.00%
|
13.64%
|
13.23%
|
|
|
|
|
|
|
|
|
|
Total risk-based
capital
|
16.69%
|
15.93%
|
15.21%
|
14.87%
|
14.47%
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage
capital
|
7.70%
|
7.24%
|
6.97%
|
6.87%
|
6.45%
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible
|
|
|
|
|
|
|
|
assets
|
6.89%
|
6.46%
|
6.03%
|
5.86%
|
5.73%
|
|
|
|
|
|
|
|
|
|
Equity to assets
|
16.11%
|
15.65%
|
15.23%
|
15.33%
|
15.47%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Supplemental Financial Data
(Unaudited)
(Dollars in
thousands)
|
|
|
Three Months
Ended September 30, 2011
|
Three Months
Ended September 30, 2010
|
|
|
YIELD ANALYSIS
|
Average
|
Interest
Earned
|
Average
|
Average
|
Interest
Earned
|
Average
|
|
|
Balance
|
/ Interest
Paid
|
Yield/Rate
|
Balance
|
/ Interest
Paid
|
Yield/Rate
|
|
|
|
|
|
|
|
|
|
|
Interest Earning
Assets:
|
|
|
|
|
|
|
|
|
Loans
|
$
3,694,039
|
$
54,471
|
5.85%
|
$
3,408,322
|
$
52,855
|
6.15%
|
|
|
Investment securities
|
4,524,213
|
38,714
|
3.42%
|
4,667,697
|
43,382
|
3.72%
|
|
|
Federal funds sold and
other
|
|
|
|
|
|
|
|
|
temporary
investments
|
18,636
|
4
|
0.09%
|
12,812
|
10
|
0.31%
|
|
|
Total interest earning
assets
|
8,236,888
|
$
93,189
|
4.49%
|
8,088,831
|
$
96,247
|
4.72%
|
|
|
Allowance for credit
losses
|
(52,208)
|
|
|
(52,577)
|
|
|
|
|
Non-interest earning
assets
|
1,375,394
|
|
|
1,401,467
|
|
|
|
|
Total assets
|
$
9,560,074
|
|
|
$
9,437,721
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
Interest bearing demand
deposits
|
$
1,319,800
|
$
1,667
|
0.50%
|
$
1,290,299
|
$
1,967
|
0.60%
|
|
|
Savings and money market
deposits
|
2,369,745
|
2,702
|
0.45%
|
2,240,630
|
3,658
|
0.65%
|
|
|
Certificates and other time
deposits
|
2,134,082
|
5,348
|
0.99%
|
2,500,341
|
9,077
|
1.44%
|
|
|
Securities sold under repurchase
agreements
|
90,821
|
127
|
0.55%
|
94,181
|
162
|
0.68%
|
|
|
Federal funds purchased and
other borrowings
|
135,336
|
200
|
0.59%
|
159,423
|
259
|
0.64%
|
|
|
Junior subordinated
debentures
|
85,055
|
607
|
2.83%
|
92,265
|
857
|
3.69%
|
|
|
Total interest bearing
liabilities
|
6,134,839
|
$
10,651
|
0.69%
|
6,377,139
|
$
15,980
|
0.99%
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
Non-interest bearing demand
deposits
|
1,828,957
|
|
|
1,577,013
|
|
|
|
|
Other liabilities
|
66,560
|
|
|
63,785
|
|
|
|
|
Total
liabilities
|
8,030,356
|
|
|
8,017,937
|
|
|
|
|
Shareholders' equity
|
1,529,718
|
|
|
1,419,784
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
9,560,074
|
|
|
$
9,437,721
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income &
Margin
|
|
$
82,538
|
3.98%
|
|
$
80,267
|
3.94%
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income &
Margin
|
|
|
|
|
|
|
|
|
(tax
equivalent)
|
|
$
83,440
|
4.02%
|
|
$
81,014
|
3.97%
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Supplemental Financial Data
(Unaudited)
(Dollars in
thousands)
|
|
|
Nine Months
Ended September 30, 2011
|
Nine Months
Ended September 30, 2010
|
|
|
YIELD ANALYSIS
|
Average
|
Interest
Earned
|
Average
|
Average
|
Interest
Earned
|
Average
|
|
|
Balance
|
/ Interest
Paid
|
Yield/Rate
|
Balance
|
/ Interest
Paid
|
Yield/Rate
|
|
|
|
|
|
|
|
|
|
|
Interest Earning
Assets:
|
|
|
|
|
|
|
|
|
Loans
|
$
3,614,590
|
$
160,374
|
5.93%
|
$
3,385,337
|
$
156,989
|
6.20%
|
|
|
Investment securities
|
4,635,880
|
121,861
|
3.50%
|
4,497,623
|
134,999
|
4.00%
|
|
|
Federal funds sold and
other
|
|
|
|
|
|
|
|
|
temporary
investments
|
15,031
|
15
|
0.13%
|
60,618
|
113
|
0.25%
|
|
|
Total interest earning
assets
|
8,265,501
|
$
282,250
|
4.57%
|
7,943,578
|
$
292,101
|
4.92%
|
|
|
Allowance for credit
losses
|
(51,924)
|
|
|
(52,354)
|
|
|
|
|
Non-interest earning
assets
|
1,388,905
|
|
|
1,380,203
|
|
|
|
|
Total assets
|
$
9,602,482
|
|
|
$
9,271,427
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
Interest bearing demand
deposits
|
$
1,403,477
|
$
5,966
|
0.57%
|
$
1,351,595
|
$
7,222
|
0.71%
|
|
|
Savings and money market
deposits
|
2,377,423
|
9,386
|
0.53%
|
2,176,350
|
11,970
|
0.74%
|
|
|
Certificates and other time
deposits
|
2,162,112
|
16,941
|
1.05%
|
2,495,534
|
30,568
|
1.64%
|
|
|
Securities sold under repurchase
agreements
|
70,425
|
306
|
0.58%
|
82,925
|
485
|
0.78%
|
|
|
Federal funds purchased and
other borrowings
|
181,656
|
718
|
0.53%
|
79,127
|
770
|
1.30%
|
|
|
Junior subordinated
debentures
|
87,058
|
2,352
|
3.61%
|
92,265
|
2,447
|
3.55%
|
|
|
Total interest bearing
liabilities
|
6,282,151
|
$
35,669
|
0.76%
|
6,277,796
|
$
53,462
|
1.14%
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
Non-interest bearing demand
deposits
|
1,758,182
|
|
|
1,535,936
|
|
|
|
|
Other liabilities
|
62,765
|
|
|
64,433
|
|
|
|
|
Total
liabilities
|
8,103,098
|
|
|
7,878,165
|
|
|
|
|
Shareholders' equity
|
1,499,384
|
|
|
1,393,262
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
9,602,482
|
|
|
$
9,271,427
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income &
Margin
|
|
$
246,581
|
3.99%
|
|
$
238,639
|
4.02%
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income &
Margin
|
|
|
|
|
|
|
|
|
(tax
equivalent)
|
|
$
249,345
|
4.03%
|
|
$
240,811
|
4.05%
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
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. Further,
Prosperity believes that these non-GAAP measures provide useful
information by excluding certain items that may not be indicative
of its core operating earnings and business outlook. 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.
|
|
|
|
|
|
Three months
ended
|
|
|
Sept
30,
2011
|
June
30,
2011
|
Mar
31,
2011
|
Dec
31,
2010
|
Sept
30,
2010
|
|
|
Return on average tangible
common equity:
|
|
|
|
|
|
Net income
|
$
36,373
|
$
35,092
|
$
33,878
|
$
32,798
|
$
32,166
|
|
|
Average shareholders'
equity
|
1,529,718
|
1,499,385
|
1,469,048
|
1,444,847
|
1,419,784
|
|
|
Less: Average goodwill and other
intangible assets
|
(948,351)
|
(950,265)
|
(952,123)
|
(953,509)
|
(953,892)
|
|
|
Average
tangible shareholders' equity
|
$ 581,367
|
$
549,120
|
$ 516,925
|
$ 491,338
|
$ 465,892
|
|
|
Return on
average tangible common equity:
|
25.03%
|
25.56%
|
26.22%
|
26.70%
|
27.62%
|
|
|
|
|
|
|
|
|
|
Tangible book value per
share:
|
|
|
|
|
|
Shareholders' equity
|
$1,541,339
|
$ 1,511,648
|
$1,480,498
|
$1,452,339
|
$1,429,570
|
|
|
Less: Goodwill and other
intangible assets
|
(947,411)
|
(949,336)
|
(951,279)
|
(953,034)
|
(954,881)
|
|
|
Tangible shareholders' equity
|
$ 593,928
|
$
562,312
|
$ 529,219
|
$ 499,305
|
$ 474,689
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
46,893
|
46,888
|
46,782
|
46,684
|
46,653
|
|
|
Tangible book value per
share:
|
$
12.67
|
$
11.99
|
$
11.31
|
$
10.70
|
$
10.17
|
|
|
|
|
|
|
|
|
|
Tangible equity to tangible
assets ratio:
|
|
|
|
|
Tangible shareholders' equity
|
$ 593,928
|
$
562,312
|
$ 529,219
|
$ 499,305
|
$ 474,689
|
|
|
|
|
|
|
|
|
|
Total assets
|
$9,567,087
|
$ 9,657,147
|
$9,722,947
|
$9,476,572
|
$9,238,502
|
|
|
Less: Goodwill and other
intangible assets
|
(947,411)
|
(949,336)
|
(951,279)
|
(953,034)
|
(954,881)
|
|
|
Tangible
assets
|
$8,619,676
|
$ 8,707,811
|
$8,771,668
|
$8,523,538
|
$8,283,621
|
|
|
|
|
|
|
|
|
|
Tangible equity to tangible
assets ratio:
|
6.89%
|
6.46%
|
6.03%
|
5.86%
|
5.73%
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Notes to
Selected Financial Data (Unaudited)
(Dollars and share amounts in
thousands)
|
|
|
Nine Months
Ended
|
|
|
Sept 30,
2011
|
Sept 30,
2010
|
|
|
Return on average tangible
common equity:
|
|
|
|
|
Net income
|
$
105,343
|
$
94,910
|
|
|
Average shareholders'
equity
|
1,499,384
|
1,393,262
|
|
|
Less: Average goodwill and other
intangible assets
|
(950,233)
|
(935,554)
|
|
|
Average tangible shareholders' equity
|
$
549,151
|
$
457,708
|
|
|
Return on average tangible common equity:
|
25.58%
|
27.65%
|
|
|
|
|
|
|
Tangible book value per
share:
|
|
|
|
|
Shareholders' equity
|
$
1,541,339
|
$
1,429,570
|
|
|
Less: Goodwill and other
intangible assets
|
(947,411)
|
(954,881)
|
|
|
Tangible shareholders' equity
|
$
593,928
|
$
474,689
|
|
|
|
|
|
|
Period end shares
outstanding
|
46,893
|
46,653
|
|
|
Tangible book value per
share:
|
$
12.67
|
$
10.17
|
|
|
|
|
|
|
Tangible equity to tangible
assets ratio:
|
|
|
|
Tangible shareholders' equity
|
$
593,928
|
$
474,689
|
|
|
|
|
|
|
Total assets
|
$
9,567,087
|
$
9,238,502
|
|
|
Less: Goodwill and other
intangible assets
|
(947,411)
|
(954,881)
|
|
|
Tangible
assets
|
$
8,619,676
|
$
8,283,621
|
|
|
|
|
|
|
Tangible equity to tangible
assets ratio:
|
6.89%
|
5.73%
|
|
|
|
|
|
|
SOURCE Prosperity Bancshares, Inc.
