HOUSTON, April 26, 2017 /PRNewswire/ -- Prosperity
Bancshares, Inc.® (NYSE: PB), the parent company of
Prosperity Bank® (collectively, "Prosperity"), reported
net income for the quarter ended March 31,
2017 of $68.565 million or
$0.99 per diluted common share.
Additionally, nonperforming assets remain low at 0.21% of first
quarter average earning assets.
"We are pleased with our first quarter 2017 performance.
Our non-performing assets decreased 14.7%, as the Texas economy continues to improve.
First quarter loans increased 4.9% annualized compared with loans
at December 31, 2016 and our return
on first quarter average tangible common equity was 15.82%.
Net income per diluted common share (excluding purchase accounting
adjustments) was $0.95 for the three
months ended March 31, 2017 compared
with $0.86 for the same period in
2016. This represents a 10.5% increase," said David Zalman, Prosperity's Chairman and Chief
Executive Officer.
"The Texas and Oklahoma economies are improving with rising
oil and gas prices. Based on data provided by The Federal
Reserve Bank of Dallas, Texas grew
203,000 jobs in 2016 and is expected to grow 280,000 jobs in 2017,
a 37.9% increase. Job growth in Texas in 2016, at 2.7%, was higher than the
national job growth of 2.0%. We continue to see single family
home construction strengthen and robust sales of higher end homes,"
continued Zalman.
"We expect that the increase in interest rates will help our net
interest margin over time and we are hopeful of regulatory reform
and reduced corporate tax rates that should increase
earnings. Reduced regulation will also allow us to
concentrate more on building deposits and loans. With a
better economy and loans not contracting to the extent we saw the
last several years, we expect more normalized organic growth for
loans," concluded Zalman.
_____________
|
(1)
|
Refer to the "Notes
to Selected Financial Data" at the end of this Earnings Release for
a reconciliation of this non-GAAP financial measure to the nearest
GAAP financial measure.
|
Results of Operations for the Three Months Ended
March 31, 2017
Net income was $68.565 million for
the three months ended March 31, 2017 compared with
$68.951 million for the same period
in 2016. Net income per diluted common share was $0.99 for the three months ended March 31,
2017 compared with $0.98 for the same
period in 2016. Net income (excluding purchase accounting
adjustments) was $65.890 million for
the three months ended March 31, 2017 compared with
$60.239 million for the three months
ended March 31, 2016. Net income per diluted common share
(excluding purchase accounting adjustments) was $0.95 for the three months ended March 31,
2017 compared with $0.86 for the same
period in 2016. The reconciliations of these non-GAAP financial
measures to the nearest respective GAAP financial measures are
shown on page 11. Annualized returns on average assets,
average common equity and average tangible common equity for the
three months ended March 31, 2017 were 1.23%, 7.45% and
15.82%(1), respectively. Prosperity's efficiency
ratio (excluding credit loss provisions, net gains and losses on
the sale of assets and taxes) was 43.01% for the three months
ended March 31, 2017.
Net interest income before provision for credit losses for the
three months ended March 31, 2017 was $152.435 million compared with $166.257 million during the same period in 2016,
a decrease of $13.822 million or
8.3%. This change was primarily due to a decrease in loan discount
accretion of $9.741 million. Linked
quarter net interest income before provision for credit losses
decreased $1.397 million or 0.9% to
$152.435 million compared with
$153.832 million during the three
months ended December 31, 2016. This change was primarily due
to a decrease in loan discount accretion of $2.799 million.
The net interest margin on a tax equivalent basis was 3.20% for
the three months ended March 31, 2017, compared
with 3.48% for the same period in 2016. This change was
primarily due to a decrease in loan discount accretion of
$9.741 million. On a linked quarter
basis the net interest margin was 3.20% compared with 3.26% for the
three months ended December 31, 2016. This change was
primarily due to a decrease in loan discount accretion of
$2.799 million. Excluding
purchase accounting adjustments, the net interest margin on a tax
equivalent basis was 3.11% for the three months ended
March 31, 2017, compared with 3.21% for the same period in
2016 and 3.12% for the three months ended December 31, 2016.
The reconciliations of these non-GAAP financial measures to the
nearest respective GAAP financial measures are shown on
page 11.
Noninterest income was $30.824
million for the three months ended March 31, 2017
compared with $30.793 million for the
same period in 2016, an increase of $31
thousand or 0.1%. On a linked quarter basis, noninterest
income increased $1.349 million or
4.6% compared with the three months ended December 31, 2016.
This increase was primarily due to the net gain on sale of assets
for the three months ended March 31,
2017.
Noninterest expense was $78.062
million for the three months ended March 31, 2017
compared with $80.528 million for the
same period in 2016, a decrease of $2.466
million or 3.1%. This change was primarily due to a decrease
in salaries and benefits expense. On a linked quarter basis,
noninterest expense decreased $1.086
million or 1.4% compared with the three months ended
December 31, 2016.
Balance Sheet Information
At March 31, 2017, Prosperity had $22.477 billion in total assets, an increase of
$499.074 million or 2.3%, compared
with $21.978 billion at
March 31, 2016.
Loans at March 31, 2017 were $9.739
billion, an increase of $84.845
million or 0.9%, compared with $9.654
billion at March 31, 2016. Linked quarter loans
increased $117.193 million or 1.2%
(4.9% annualized) from $9.622 billion
at December 31, 2016.
As part of its commercial and industrial lending activities,
Prosperity extends credit to oil and gas production and service
companies. Oil and gas production loans are loans to companies
directly involved in the exploration and/or production of oil and
gas. Oil and gas service loans are loans to companies that provide
services for oil and gas production and exploration. At
March 31, 2017, oil and gas loans totaled $267.445 million or 2.8% of total loans, of which
$108.267 million were to production
companies and $159.178 million were to service companies. This
compares with total oil and gas loans of $362.826 million or
3.8% of total loans at March 31, 2016, of which $166.422 million were to production companies
and $196.404 million were to service companies. On a linked
quarter basis, oil and gas loans decreased $17.094 million, from $284.539 million or 3.0% of total loans at
December 31, 2016, of which $119.934
million were production loans and $164.605 million were service loans.
Deposits at March 31, 2017 were $17.036 billion, a decrease of $837.194 million or 4.7%, compared with
$17.873 billion at March 31,
2016. Linked quarter deposits decreased $271.730 million or 1.6% from $17.307 billion at December 31, 2016. This
change primarily resulted from seasonality.
The table below provides detail on the impact of loans acquired
and deposits assumed in the acquisition of Tradition Bancshares,
Inc. and its wholly-owned subsidiary Tradition Bank (collectively
"Tradition") completed on January 1, 2016:
Balance Sheet Data
(at period end)
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
|
Jun 30,
2016
|
|
|
Mar 31,
2016
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Loans acquired
(including new production since acquisition date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tradition
|
|
$
|
235,682
|
|
|
$
|
226,830
|
|
|
$
|
228,357
|
|
|
$
|
233,340
|
|
|
$
|
232,160
|
|
All other
loans
|
|
|
9,503,571
|
|
|
|
9,395,230
|
|
|
|
9,319,957
|
|
|
|
9,416,668
|
|
|
|
9,422,248
|
|
Total loans
|
|
$
|
9,739,253
|
|
|
$
|
9,622,060
|
|
|
$
|
9,548,314
|
|
|
$
|
9,650,008
|
|
|
$
|
9,654,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits assumed
(including new deposits since acquisition date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tradition
|
|
$
|
411,470
|
|
|
$
|
417,837
|
|
|
$
|
432,858
|
|
|
$
|
440,110
|
|
|
$
|
476,203
|
|
All other
deposits
|
|
|
16,624,102
|
|
|
|
16,889,465
|
|
|
|
16,488,551
|
|
|
|
16,779,035
|
|
|
|
17,396,563
|
|
Total
deposits
|
|
$
|
17,035,572
|
|
|
$
|
17,307,302
|
|
|
$
|
16,921,409
|
|
|
$
|
17,219,145
|
|
|
$
|
17,872,766
|
|
Excluding loans acquired in the Tradition acquisition and new
production at the acquired banking centers since the acquisition
date, loans at March 31, 2017 increased $81.323 million or 0.9% compared with
March 31, 2016 and, on a linked quarter basis, increased
$108.341 million or 1.2%.
Excluding deposits assumed in the Tradition acquisition and new
deposits generated at the acquired banking centers since the
acquisition date, deposits at March 31, 2017 decreased
$772.461 million or 4.4%
compared with March 31, 2016 and, on a linked quarter basis,
decreased $265.363 million or
1.6%.
Asset Quality
Nonperforming assets totaled $41.199
million or 0.21% of quarterly average interest-earning
assets at March 31, 2017, compared with $56.985 million or 0.29% of quarterly average
interest-earning assets at March 31, 2016, and $48.302 million or 0.25% of quarterly
average interest-earning assets at December 31, 2016.
The allowance for credit losses was $84.095 million or 0.86% of total loans at
March 31, 2017, $83.714 million
or 0.87% of total loans at March 31, 2016 and $85.326 million or 0.89% of total loans at
December 31, 2016. Excluding loans acquired that are
accounted for under FASB Accounting Standards Codification ("ASC")
Topics 310-20 and 310-30, the allowance for credit losses was 0.96%
of remaining loans as of March 31, 2017, compared with 1.03%
at March 31, 2016 and 1.00% at December 31,
2016(1).
The provision for credit losses was $2.675 million for the three months ended
March 31, 2017 compared with $14.000
million for the three months ended March 31, 2016 and
$2.000 million for the three months
ended December 31, 2016.
Net charge-offs were $3.906
million for the three months ended March 31, 2017
compared with $11.670 million for the
three months ended March 31, 2016 and $2.259 million for the three months ended
December 31, 2016. Net charge-offs for the first quarter of
2017 were primarily comprised of two commercial and industrial
loans.
Conference Call
Prosperity's management team will host a conference call on
Wednesday, April 26, 2017 at
10:30 a.m. Eastern Time
(9:30 a.m. Central Time) to discuss Prosperity's first quarter
2017 earnings. Individuals and investment professionals may
participate in the call by dialing 877-883-0383. The elite entry
number is 7328237.
Alternatively, individuals may listen to the live webcast of the
presentation by visiting Prosperity's website at
www.prosperitybankusa.com. The webcast may be accessed from
Prosperity's home page by selecting "Presentations & Calls"
from the drop-down menu on the Investor Relations tab and following
the instructions.
Non-GAAP Financial Measures
Prosperity's management uses certain non−GAAP 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.
Further, as a result of acquisitions and the related purchase
accounting adjustments, Prosperity uses certain non-GAAP measures
and ratios that exclude the impact of these items to evaluate its
net income and earnings per share (excluding purchase accounting
adjustments) and its allowance for credit losses to total loans
(excluding acquired loans accounted for under ASC Topics 310-20,
"Receivables-Nonrefundable Fees and Other Costs" and 310-30,
"Receivables-Loans and Debt Securities Acquired with
Deteriorated Credit Quality"). Prosperity believes these
non-GAAP financial measures provide information useful to investors
in understanding Prosperity's financial results and that their
presentation, together with the accompanying reconciliations,
provides a more 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 financial measures provide
useful information by excluding certain items that may not be
indicative of its core operating earnings and business
outlook. These non-GAAP financial measures should not be
considered a substitute for, nor of greater importance than, GAAP
basis measures and results; 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.
Please refer to page 11 and the "Notes to Selected Financial Data"
at the end of this Earnings Release for a reconciliation of these
non-GAAP financial measures.
Dividend
Prosperity Bancshares, Inc. ("Prosperity Bancshares") declared a
second quarter cash dividend of $0.34
per share, to be paid on July 3, 2017 to all shareholders of
record as of June 16, 2017.
Acquisition of Tradition Bancshares, Inc.
On January 1, 2016, Prosperity
Bancshares completed the acquisition of Tradition Bancshares, Inc.
and its wholly-owned subsidiary, Tradition Bank, headquartered in
Houston, Texas. Tradition Bank
operated 7 banking offices in the Houston, Texas area, including its main office
in Bellaire, 3 banking centers in
Katy and 1 banking center in
The Woodlands. As of December 31, 2015, Tradition Bancshares, Inc., on
a consolidated basis, reported total assets of $547.963 million, total loans of $253.315 million, total deposits of $488.928
million and shareholders' equity of $43.103
million.
Under the terms of the definitive agreement, Prosperity
Bancshares issued 679,528 shares of Prosperity Bancshares common
stock plus $39.0 million in cash for
all outstanding shares of Tradition Bancshares, Inc. capital
stock.
Prosperity Bancshares, Inc. ®
As of March 31, 2017, Prosperity Bancshares, Inc.
® is a $22.477 billion
Houston, Texas based regional
financial holding company, formed in 1983. Operating under a
community banking philosophy and seeking 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 www.prosperitybankusa.com, Retail Brokerage Services,
Credit Cards, MasterMoney Debit Cards, 24 hour voice response
banking, Trust and Wealth Management, Mortgage Services, Cash
Management and Mobile Banking.
As of March 31, 2017, Prosperity
operated 244 full-service banking locations: 65 in the Houston area, including The Woodlands; 29 in the South Texas area including Corpus Christi and Victoria; 35 in the Dallas/Fort Worth area; 22 in the East Texas area; 29 in the Central Texas area including Austin and San
Antonio; 34 in the West
Texas area including Lubbock, Midland-Odessa and Abilene; 16 in the Bryan/College Station area, 6 in the
Central Oklahoma area and 8 in the
Tulsa, Oklahoma area.
"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,
which 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, interest
rate and commodity price fluctuations; and weather. These and
various other factors are discussed in Prosperity Bancshares'
Annual Report on Form 10-K for the year ended December 31, 2016 and other reports and
statements Prosperity Bancshares has filed with the SEC. Copies of
the SEC filings for Prosperity Bancshares may be downloaded from
the Internet at no charge from
http://www.prosperitybankusa.com.
Bryan/College
Station Area -
|
|
Fort Worth
-
|
|
Waugh
Drive
|
|
Taft
|
Bryan
|
|
Haltom
City
|
|
Westheimer
|
|
Yoakum
|
Bryan-29th
Street
|
|
Keller
|
|
West
University
|
|
Yorktown
|
Bryan-East
|
|
Roanoke
|
|
Woodcreek
|
|
|
Bryan-North
|
|
Stockyards
|
|
|
|
West Texas Area
-
|
Caldwell
|
|
|
|
Katy
-
|
|
Abilene
-
|
College
Station
|
|
Other Dallas/Fort
Worth Area
|
|
Cinco
Ranch
|
|
Antilley
Road
|
Crescent
Point
|
|
Locations
-
|
|
Katy-Spring
Green
|
|
Barrow
Street
|
Hearne
|
|
Arlington
|
|
|
|
Cypress
Street
|
Huntsville
|
|
Azle
|
|
The Woodlands
-
|
|
Judge Ely
|
Madisonville
|
|
Ennis
|
|
The Woodlands-College
Park
|
|
Mockingbird
|
Navasota
|
|
Gainesville
|
|
The
Woodlands-I-45
|
|
|
New
Waverly
|
|
Glen Rose
|
|
The
Woodlands-Research Forest
|
|
Lubbock
-
|
Rock
Prairie
|
|
Granbury
|
|
|
|
4th
Street
|
Southwest
Parkway
|
|
Mesquite
|
|
Other Houston
Area
|
|
66th
Street
|
Tower
Point
|
|
Muenster
|
|
Locations
-
|
|
82nd
Street
|
Wellborn
Road
|
|
Sanger
|
|
Angleton
|
|
86th
Street
|
|
|
Waxahachie
|
|
Bay City
|
|
98th
Street
|
Central Texas Area
-
|
|
Weatherford
|
|
Beaumont
|
|
Avenue Q
|
Austin
-
|
|
|
|
Cleveland
|
|
North
University
|
Allandale
|
|
East Texas Area
-
|
|
East
Bernard
|
|
Texas Tech Student
Union
|
Cedar Park
|
|
Athens
|
|
El Campo
|
|
|
Congress
|
|
Blooming
Grove
|
|
Dayton
|
|
Midland
-
|
Lakeway
|
|
Canton
|
|
Galveston
|
|
Wadley
|
Liberty
Hill
|
|
Carthage
|
|
Groves
|
|
Wall
Street
|
Northland
|
|
Corsicana
|
|
Hempstead
|
|
|
Oak Hill
|
|
Crockett
|
|
Hitchcock
|
|
Odessa
-
|
Research
Blvd
|
|
Eustace
|
|
Liberty
|
|
Grandview
|
Westlake
|
|
Gilmer
|
|
Magnolia
|
|
Grant
|
|
|
Grapeland
|
|
Magnolia
Parkway
|
|
Kermit
Highway
|
Other Central
Texas Area
|
|
Gun Barrel
City
|
|
Mont
Belvieu
|
|
Parkway
|
Locations
-
|
|
Jacksonville
|
|
Nederland
|
|
|
Bastrop
|
|
Kerens
|
|
Needville
|
|
Other West Texas
Area
|
Canyon
Lake
|
|
Longview
|
|
Rosenberg
|
|
Locations
-
|
Dime Box
|
|
Mount
Vernon
|
|
Shadow
Creek
|
|
Big Spring
|
Dripping
Springs
|
|
Palestine
|
|
Spring
|
|
Brownfield
|
Elgin
|
|
Rusk
|
|
Tomball
|
|
Brownwood
|
Flatonia
|
|
Seven
Points
|
|
Waller
|
|
Cisco
|
Georgetown
|
|
Teague
|
|
West
Columbia
|
|
Comanche
|
Gruene
|
|
Tyler-Beckham
|
|
Wharton
|
|
Early
|
Kingsland
|
|
Tyler-South
Broadway
|
|
Winnie
|
|
Floydada
|
La Grange
|
|
Tyler-University
|
|
Wirt
|
|
Gorman
|
Lexington
|
|
Winnsboro
|
|
|
|
Levelland
|
New
Braunfels
|
|
|
|
South Texas Area
-
|
|
Littlefield
|
Pleasanton
|
|
Houston Area
-
|
|
Corpus Christi
-
|
|
Merkel
|
Round Rock
|
|
Houston
-
|
|
Calallen
|
|
Plainview
|
San
Antonio
|
|
Aldine
|
|
Carmel
|
|
San Angelo
|
Schulenburg
|
|
Alief
|
|
Northwest
|
|
Slaton
|
Seguin
|
|
Bellaire
|
|
Saratoga
|
|
Snyder
|
Smithville
|
|
Beltway
|
|
Timbergate
|
|
|
Thorndale
|
|
Clear Lake
|
|
Water
Street
|
|
Oklahoma
|
Weimar
|
|
Copperfield
|
|
|
|
Central Oklahoma
Area-
|
|
|
Cypress
|
|
Victoria
-
|
|
Oklahoma City
-
|
Dallas/Fort Worth
Area -
|
|
Downtown
|
|
Victoria
Main
|
|
23rd
Street
|
Dallas
-
|
|
Eastex
|
|
Victoria-Navarro
|
|
Expressway
|
Abrams
Centre
|
|
Fairfield
|
|
Victoria-North
|
|
I-240
|
Balch
Springs
|
|
First
Colony
|
|
|
|
Memorial
|
Camp
Wisdom
|
|
Fry Road
|
|
Other South Texas
Area
|
|
|
Cedar Hill
|
|
Gessner
|
|
Locations
-
|
|
Other Central
Oklahoma Area
|
Dallas – Central
Expressway
|
|
Gladebrook
|
|
Alice
|
|
Locations
-
|
Forest
Park
|
|
Grand
Parkway
|
|
Aransas
Pass
|
|
Edmond
|
Frisco
|
|
Heights
|
|
Beeville
|
|
Norman
|
Frisco-West
|
|
Highway 6
West
|
|
Colony
Creek
|
|
|
Kiest
|
|
Little
York
|
|
Cuero
|
|
Tulsa
Area-
|
McKinney
|
|
Medical
Center
|
|
Edna
|
|
Tulsa
-
|
McKinney-Stonebridge
|
|
Memorial
Drive
|
|
Goliad
|
|
Garnett
|
Midway
|
|
Northside
|
|
Gonzales
|
|
Harvard
|
Plano
|
|
Pasadena
|
|
Hallettsville
|
|
Memorial
|
Preston
Forest
|
|
Pecan
Grove
|
|
Kingsville
|
|
Sheridan
|
Preston
Road
|
|
Pin Oak
|
|
Mathis
|
|
S. Harvard
|
Red Oak
|
|
River Oaks
|
|
Padre
Island
|
|
Utica
Tower
|
Sachse
|
|
Sugar Land
|
|
Palacios
|
|
Yale
|
The Colony
|
|
SW Medical
Center
|
|
Port
Lavaca
|
|
|
Turtle
Creek
|
|
Tanglewood
|
|
Portland
|
|
Other Tulsa Area
Locations -
|
Westmoreland
|
|
The Plaza
|
|
Rockport
|
|
Owasso
|
|
|
Uptown
|
|
Sinton
|
|
|
Prosperity
Bancshares, Inc.® Financial Highlights
(Unaudited) (In thousands)
|
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
|
Jun 30,
2016
|
|
|
Mar 31,
2016
|
|
Balance Sheet Data
(at period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
9,739,253
|
|
|
$
|
9,622,060
|
|
|
$
|
9,548,314
|
|
|
$
|
9,650,008
|
|
|
$
|
9,654,408
|
|
Investment
securities(A)
|
|
|
9,854,120
|
|
|
|
9,726,086
|
|
|
|
8,988,021
|
|
|
|
9,274,651
|
|
|
|
9,448,704
|
|
Federal funds
sold
|
|
|
945
|
|
|
|
1,178
|
|
|
|
630
|
|
|
|
484
|
|
|
|
1,386
|
|
Allowance for credit
losses
|
|
|
(84,095)
|
|
|
|
(85,326)
|
|
|
|
(85,585)
|
|
|
|
(83,826)
|
|
|
|
(83,714)
|
|
Cash and due from
banks
|
|
|
324,797
|
|
|
|
436,203
|
|
|
|
341,483
|
|
|
|
333,208
|
|
|
|
334,592
|
|
Goodwill
|
|
|
1,900,845
|
|
|
|
1,900,845
|
|
|
|
1,900,349
|
|
|
|
1,903,451
|
|
|
|
1,903,451
|
|
Core deposit
intangibles, net
|
|
|
43,869
|
|
|
|
45,784
|
|
|
|
48,010
|
|
|
|
44,861
|
|
|
|
47,195
|
|
Other real estate
owned
|
|
|
15,698
|
|
|
|
15,463
|
|
|
|
16,280
|
|
|
|
15,677
|
|
|
|
16,695
|
|
Fixed assets,
net
|
|
|
257,558
|
|
|
|
262,083
|
|
|
|
270,386
|
|
|
|
273,104
|
|
|
|
277,951
|
|
Other
assets
|
|
|
424,429
|
|
|
|
406,696
|
|
|
|
376,156
|
|
|
|
384,692
|
|
|
|
377,677
|
|
Total
assets
|
|
$
|
22,477,419
|
|
|
$
|
22,331,072
|
|
|
$
|
21,404,044
|
|
|
$
|
21,796,310
|
|
|
$
|
21,978,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
5,299,264
|
|
|
$
|
5,190,973
|
|
|
$
|
5,159,333
|
|
|
$
|
5,016,637
|
|
|
$
|
5,112,943
|
|
Interest-bearing
deposits
|
|
|
11,736,308
|
|
|
|
12,116,329
|
|
|
|
11,762,076
|
|
|
|
12,202,508
|
|
|
|
12,759,823
|
|
Total
deposits
|
|
|
17,035,572
|
|
|
|
17,307,302
|
|
|
|
16,921,409
|
|
|
|
17,219,145
|
|
|
|
17,872,766
|
|
Other
borrowings
|
|
|
1,270,644
|
|
|
|
990,781
|
|
|
|
425,916
|
|
|
|
606,049
|
|
|
|
186,225
|
|
Securities sold under
repurchase agreements
|
|
|
335,875
|
|
|
|
320,430
|
|
|
|
318,449
|
|
|
|
320,001
|
|
|
|
304,204
|
|
Junior subordinated
debentures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,217
|
|
Other
liabilities
|
|
|
146,246
|
|
|
|
70,248
|
|
|
|
143,458
|
|
|
|
106,531
|
|
|
|
108,873
|
|
Total
liabilities
|
|
|
18,788,337
|
|
|
|
18,688,761
|
|
|
|
17,809,232
|
|
|
|
18,251,726
|
|
|
|
18,479,285
|
|
Shareholders'
equity(B)
|
|
|
3,689,082
|
|
|
|
3,642,311
|
|
|
|
3,594,812
|
|
|
|
3,544,584
|
|
|
|
3,499,060
|
|
Total liabilities and
equity
|
|
$
|
22,477,419
|
|
|
$
|
22,331,072
|
|
|
$
|
21,404,044
|
|
|
$
|
21,796,310
|
|
|
$
|
21,978,345
|
|
|
|
(A)
|
Includes $2,200,
$2,171, $2,310, $2,496 and $3,286 in unrealized gains on available
for sale securities for the quarterly periods ended March 31, 2017,
December 31, 2016, September 30, 2016, June 30, 2016 and March 31,
2016, respectively.
|
(B)
|
Includes $1,430,
$1,411, $1,502, $1,623 and $2,136 in after-tax unrealized gains on
available for sale securities for the quarterly periods ended March
31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and
March 31, 2016, respectively.
|
Prosperity
Bancshares, Inc.® Financial Highlights
(Unaudited) (In thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
|
Jun 30,
2016
|
|
|
Mar 31,
2016
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
111,710
|
|
|
$
|
115,993
|
|
|
$
|
116,247
|
|
|
$
|
118,297
|
|
|
$
|
124,522
|
|
Securities(C)
|
|
|
53,157
|
|
|
|
48,573
|
|
|
|
48,132
|
|
|
|
51,097
|
|
|
|
52,573
|
|
Federal funds sold and
other earning assets
|
|
|
183
|
|
|
|
103
|
|
|
|
81
|
|
|
|
65
|
|
|
|
96
|
|
Total interest
income
|
|
|
165,050
|
|
|
|
164,669
|
|
|
|
164,460
|
|
|
|
169,459
|
|
|
|
177,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
9,908
|
|
|
|
9,478
|
|
|
|
9,396
|
|
|
|
10,045
|
|
|
|
10,206
|
|
Other
borrowings
|
|
|
2,476
|
|
|
|
1,121
|
|
|
|
752
|
|
|
|
710
|
|
|
|
482
|
|
Securities sold under
repurchase agreements
|
|
|
231
|
|
|
|
238
|
|
|
|
248
|
|
|
|
234
|
|
|
|
212
|
|
Junior subordinated
debentures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3
|
|
|
|
34
|
|
Total interest
expense
|
|
|
12,615
|
|
|
|
10,837
|
|
|
|
10,396
|
|
|
|
10,992
|
|
|
|
10,934
|
|
Net interest
income
|
|
|
152,435
|
|
|
|
153,832
|
|
|
|
154,064
|
|
|
|
158,467
|
|
|
|
166,257
|
|
Provision for credit
losses
|
|
|
2,675
|
|
|
|
2,000
|
|
|
|
2,000
|
|
|
|
6,000
|
|
|
|
14,000
|
|
Net interest income
after provision for credit losses
|
|
|
149,760
|
|
|
|
151,832
|
|
|
|
152,064
|
|
|
|
152,467
|
|
|
|
152,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds
(NSF) fees
|
|
|
8,089
|
|
|
|
8,552
|
|
|
|
8,764
|
|
|
|
8,031
|
|
|
|
8,189
|
|
Credit card, debit
card and ATM card income
|
|
|
5,953
|
|
|
|
5,902
|
|
|
|
5,903
|
|
|
|
5,929
|
|
|
|
5,827
|
|
Service charges on
deposit accounts
|
|
|
5,421
|
|
|
|
4,934
|
|
|
|
4,698
|
|
|
|
4,610
|
|
|
|
4,590
|
|
Trust
income
|
|
|
2,155
|
|
|
|
2,480
|
|
|
|
1,851
|
|
|
|
1,762
|
|
|
|
2,027
|
|
Mortgage
income
|
|
|
1,266
|
|
|
|
1,690
|
|
|
|
2,143
|
|
|
|
1,772
|
|
|
|
1,471
|
|
Brokerage
income
|
|
|
488
|
|
|
|
782
|
|
|
|
1,213
|
|
|
|
1,286
|
|
|
|
1,290
|
|
Bank owned life
insurance income
|
|
|
1,353
|
|
|
|
1,390
|
|
|
|
1,417
|
|
|
|
1,473
|
|
|
|
1,383
|
|
Net gain on sale of
assets
|
|
|
1,759
|
|
|
|
475
|
|
|
|
37
|
|
|
|
332
|
|
|
|
1,020
|
|
Other noninterest
income
|
|
|
4,340
|
|
|
|
3,270
|
|
|
|
3,658
|
|
|
|
3,278
|
|
|
|
4,996
|
|
Total noninterest
income
|
|
|
30,824
|
|
|
|
29,475
|
|
|
|
29,684
|
|
|
|
28,473
|
|
|
|
30,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
48,444
|
|
|
|
51,231
|
|
|
|
48,328
|
|
|
|
48,224
|
|
|
|
50,114
|
|
Net occupancy and
equipment
|
|
|
5,503
|
|
|
|
5,696
|
|
|
|
5,997
|
|
|
|
5,741
|
|
|
|
5,624
|
|
Credit and debit card,
data processing and software amortization
|
|
|
4,085
|
|
|
|
4,249
|
|
|
|
4,207
|
|
|
|
4,164
|
|
|
|
4,430
|
|
Regulatory assessments
and FDIC insurance
|
|
|
3,549
|
|
|
|
2,424
|
|
|
|
3,434
|
|
|
|
3,447
|
|
|
|
3,430
|
|
Core deposit
intangibles amortization
|
|
|
1,915
|
|
|
|
2,226
|
|
|
|
2,418
|
|
|
|
2,334
|
|
|
|
2,222
|
|
Depreciation
|
|
|
3,103
|
|
|
|
3,170
|
|
|
|
3,289
|
|
|
|
3,286
|
|
|
|
3,349
|
|
Communications
|
|
|
2,702
|
|
|
|
2,771
|
|
|
|
2,870
|
|
|
|
2,981
|
|
|
|
2,939
|
|
Other real estate
expense
|
|
|
95
|
|
|
|
378
|
|
|
|
44
|
|
|
|
50
|
|
|
|
42
|
|
Net (gain) loss on
sale of other real estate
|
|
|
(10)
|
|
|
|
(44)
|
|
|
|
(3)
|
|
|
|
347
|
|
|
|
(14)
|
|
Other noninterest
expense
|
|
|
8,676
|
|
|
|
7,047
|
|
|
|
8,892
|
|
|
|
8,661
|
|
|
|
8,392
|
|
Total noninterest
expense
|
|
|
78,062
|
|
|
|
79,148
|
|
|
|
79,476
|
|
|
|
79,235
|
|
|
|
80,528
|
|
Income before income
taxes
|
|
|
102,522
|
|
|
|
102,159
|
|
|
|
102,272
|
|
|
|
101,705
|
|
|
|
102,522
|
|
Provision for income
taxes
|
|
|
33,957
|
|
|
|
33,366
|
|
|
|
33,621
|
|
|
|
33,634
|
|
|
|
33,571
|
|
Net income available
to common shareholders
|
|
$
|
68,565
|
|
|
$
|
68,793
|
|
|
$
|
68,651
|
|
|
$
|
68,071
|
|
|
$
|
68,951
|
|
|
|
(C)
|
Interest income on
securities was reduced by net premium amortization of $9,883,
$11,502, $11,312, $10,407 and $10,253 for the three-month periods
ended March 31, 2017, December 31, 2016, September 30, 2016, June
30, 2016 and March 31, 2016, respectively.
|
Prosperity
Bancshares, Inc. ® Financial Highlights
(Unaudited) (Dollars and share amounts in thousands,
except per share data and market prices)
|
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
|
Jun 30,
2016
|
|
|
Mar 31,
2016
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
68,565
|
|
|
$
|
68,793
|
|
|
$
|
68,651
|
|
|
$
|
68,071
|
|
|
$
|
68,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.99
|
|
|
$
|
0.99
|
|
|
$
|
0.99
|
|
|
$
|
0.98
|
|
|
$
|
0.98
|
|
Diluted earnings per
share
|
|
$
|
0.99
|
|
|
$
|
0.99
|
|
|
$
|
0.99
|
|
|
$
|
0.98
|
|
|
$
|
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (D)
|
|
|
1.23
|
%
|
|
|
1.26
|
%
|
|
|
1.27
|
%
|
|
|
1.24
|
%
|
|
|
1.24
|
%
|
Return on average
common equity (D)
|
|
|
7.45
|
%
|
|
|
7.58
|
%
|
|
|
7.66
|
%
|
|
|
7.70
|
%
|
|
|
7.85
|
%
|
Return on average
tangible common equity (D) (E)
|
|
|
15.82
|
%
|
|
|
16.33
|
%
|
|
|
16.79
|
%
|
|
|
17.15
|
%
|
|
|
17.60
|
%
|
Tax equivalent net
interest margin (F)
|
|
|
3.20
|
%
|
|
|
3.26
|
%
|
|
|
3.29
|
%
|
|
|
3.37
|
%
|
|
|
3.48
|
%
|
Efficiency
ratio(G)
|
|
|
43.01
|
%
|
|
|
43.29
|
%
|
|
|
43.26
|
%
|
|
|
42.46
|
%
|
|
|
41.08
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
|
16.41
|
%
|
|
|
16.31
|
%
|
|
|
16.80
|
%
|
|
|
16.26
|
%
|
|
|
15.92
|
%
|
Common equity tier 1
capital
|
|
|
14.45
|
%
|
|
|
14.48
|
%
|
|
|
14.41
|
%
|
|
|
13.66
|
%
|
|
|
13.20
|
%
|
Tier 1 risk-based
capital
|
|
|
14.45
|
%
|
|
|
14.48
|
%
|
|
|
14.41
|
%
|
|
|
13.66
|
%
|
|
|
13.20
|
%
|
Total risk-based
capital
|
|
|
15.14
|
%
|
|
|
15.20
|
%
|
|
|
15.14
|
%
|
|
|
14.37
|
%
|
|
|
13.90
|
%
|
Tier 1 leverage
capital
|
|
|
8.62
|
%
|
|
|
8.68
|
%
|
|
|
8.50
|
%
|
|
|
8.11
|
%
|
|
|
7.70
|
%
|
Period end tangible
equity to period end tangible assets(E)
|
|
|
8.50
|
%
|
|
|
8.32
|
%
|
|
|
8.46
|
%
|
|
|
8.04
|
%
|
|
|
7.73
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used in computing earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
69,480
|
|
|
|
69,482
|
|
|
|
69,478
|
|
|
|
69,565
|
|
|
|
70,174
|
|
Diluted
|
|
|
69,482
|
|
|
|
69,486
|
|
|
|
69,484
|
|
|
|
69,574
|
|
|
|
70,181
|
|
Period end shares
outstanding
|
|
|
69,480
|
|
|
|
69,491
|
|
|
|
69,478
|
|
|
|
69,480
|
|
|
|
69,543
|
|
Cash dividends paid
per common share
|
|
$
|
0.3400
|
|
|
$
|
0.3400
|
|
|
$
|
0.3000
|
|
|
$
|
0.3000
|
|
|
$
|
0.3000
|
|
Book value per common
share
|
|
$
|
53.10
|
|
|
$
|
52.41
|
|
|
$
|
51.74
|
|
|
$
|
51.02
|
|
|
$
|
50.32
|
|
Tangible book value
per common share(E)
|
|
$
|
25.11
|
|
|
$
|
24.40
|
|
|
$
|
23.70
|
|
|
$
|
22.97
|
|
|
$
|
22.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
77.87
|
|
|
$
|
73.68
|
|
|
$
|
56.27
|
|
|
$
|
54.57
|
|
|
$
|
47.50
|
|
Low
|
|
$
|
65.34
|
|
|
$
|
52.81
|
|
|
$
|
45.94
|
|
|
$
|
43.28
|
|
|
$
|
33.57
|
|
Period end closing
price
|
|
$
|
69.71
|
|
|
$
|
71.78
|
|
|
$
|
54.89
|
|
|
$
|
50.99
|
|
|
$
|
46.39
|
|
Employees –
FTE
|
|
|
3,033
|
|
|
|
3,035
|
|
|
|
3,071
|
|
|
|
3,106
|
|
|
|
3,132
|
|
Number of banking
centers
|
|
|
244
|
|
|
|
245
|
|
|
|
245
|
|
|
|
245
|
|
|
|
246
|
|
|
|
(D)
|
Interim periods
annualized.
|
(E)
|
Refer to the
"Notes to Selected Financial Data" at the end of this Earnings
Release for a reconciliation of this non-GAAP financial
measure.
|
(F)
|
Net interest
margin for all periods presented is based on average balances on an
actual 365 day or 366 day basis.
|
(G)
|
Calculated by
dividing total noninterest expense, excluding credit loss
provisions, by net interest income plus noninterest income,
excluding net gains and losses on the sale of assets.
Additionally, taxes are not part of this
calculation.
|
Prosperity
Bancshares, Inc.® Financial Highlights
(Unaudited) (Dollars in thousands)
|
|
YIELD
ANALYSIS
|
Three Months
Ended
|
|
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Mar 31,
2016
|
|
|
|
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(H)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(H)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(H)
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
9,642,877
|
|
|
$
|
111,710
|
|
|
|
4.70%
|
|
|
$
|
9,557,712
|
|
|
$
|
115,993
|
|
|
|
4.83%
|
|
|
$
|
9,700,554
|
|
|
$
|
124,522
|
|
|
|
5.16%
|
|
|
Investment
securities
|
|
|
9,867,491
|
|
|
|
53,157
|
|
|
|
2.18%
|
|
(I)
|
|
9,338,903
|
|
|
|
48,573
|
|
|
|
2.07%
|
|
(I)
|
|
9,630,496
|
|
|
|
52,573
|
|
|
|
2.20%
|
|
(I)
|
Federal funds sold
and other earning assets
|
|
|
80,150
|
|
|
|
183
|
|
|
|
0.92%
|
|
|
|
106,214
|
|
|
|
103
|
|
|
|
0.39%
|
|
|
|
80,400
|
|
|
|
96
|
|
|
|
0.48%
|
|
|
Total interest-earning
assets
|
|
|
19,590,518
|
|
|
|
165,050
|
|
|
|
3.42%
|
|
|
|
19,002,829
|
|
|
|
164,669
|
|
|
|
3.45%
|
|
|
|
19,411,450
|
|
|
|
177,191
|
|
|
|
3.67%
|
|
|
Allowance for credit
losses
|
|
|
(85,037)
|
|
|
|
|
|
|
|
|
|
|
|
(85,347)
|
|
|
|
|
|
|
|
|
|
|
|
(83,883)
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
2,875,986
|
|
|
|
|
|
|
|
|
|
|
|
2,838,778
|
|
|
|
|
|
|
|
|
|
|
|
2,937,937
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
22,381,467
|
|
|
|
|
|
|
|
|
|
|
$
|
21,756,260
|
|
|
|
|
|
|
|
|
|
|
$
|
22,265,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
|
4,136,260
|
|
|
$
|
2,587
|
|
|
|
0.25%
|
|
|
$
|
3,861,952
|
|
|
$
|
2,210
|
|
|
|
0.23%
|
|
|
$
|
4,442,652
|
|
|
$
|
2,784
|
|
|
|
0.25%
|
|
|
Savings and money
market deposits
|
|
|
5,537,355
|
|
|
|
3,587
|
|
|
|
0.26%
|
|
|
|
5,471,109
|
|
|
|
3,546
|
|
|
|
0.26%
|
|
|
|
5,820,161
|
|
|
|
3,885
|
|
|
|
0.27%
|
|
|
Certificates and
other time deposits
|
|
|
2,366,857
|
|
|
|
3,734
|
|
|
|
0.64%
|
|
|
|
2,434,565
|
|
|
|
3,722
|
|
|
|
0.61%
|
|
|
|
2,577,676
|
|
|
|
3,537
|
|
|
|
0.55%
|
|
|
Other
borrowings
|
|
|
1,123,396
|
|
|
|
2,476
|
|
|
|
0.89%
|
|
|
|
712,126
|
|
|
|
1,121
|
|
|
|
0.63%
|
|
|
|
361,778
|
|
|
|
482
|
|
|
|
0.54%
|
|
|
Securities sold under
repurchase agreements
|
|
|
307,433
|
|
|
|
231
|
|
|
|
0.31%
|
|
|
|
318,367
|
|
|
|
238
|
|
|
|
0.30%
|
|
|
|
306,192
|
|
|
|
212
|
|
|
|
0.28%
|
|
|
Junior subordinated
debentures
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
|
7,217
|
|
|
|
34
|
|
|
|
1.89%
|
|
|
Total interest-bearing
liabilities
|
|
|
13,471,301
|
|
|
|
12,615
|
|
|
|
0.38%
|
|
(J)
|
|
12,798,119
|
|
|
|
10,837
|
|
|
|
0.34%
|
|
(J)
|
|
13,515,676
|
|
|
|
10,934
|
|
|
|
0.33%
|
|
(J)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
5,140,010
|
|
|
|
|
|
|
|
|
|
|
|
5,214,656
|
|
|
|
|
|
|
|
|
|
|
|
5,085,456
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
91,157
|
|
|
|
|
|
|
|
|
|
|
|
111,083
|
|
|
|
|
|
|
|
|
|
|
|
149,379
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
18,702,468
|
|
|
|
|
|
|
|
|
|
|
|
18,123,858
|
|
|
|
|
|
|
|
|
|
|
|
18,750,511
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
3,678,999
|
|
|
|
|
|
|
|
|
|
|
|
3,632,402
|
|
|
|
|
|
|
|
|
|
|
|
3,514,993
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
22,381,467
|
|
|
|
|
|
|
|
|
|
|
$
|
21,756,260
|
|
|
|
|
|
|
|
|
|
|
$
|
22,265,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and margin
|
|
|
|
|
|
$
|
152,435
|
|
|
|
3.16%
|
|
|
|
|
|
|
$
|
153,832
|
|
|
|
3.22%
|
|
|
|
|
|
|
$
|
166,257
|
|
|
|
3.44%
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
|
1,995
|
|
|
|
|
|
|
|
|
|
|
|
1,931
|
|
|
|
|
|
|
|
|
|
|
|
1,836
|
|
|
|
|
|
|
Net interest income
and margin (tax equivalent basis)
|
|
|
|
|
|
$
|
154,430
|
|
|
|
3.20%
|
|
|
|
|
|
|
$
|
155,763
|
|
|
|
3.26%
|
|
|
|
|
|
|
$
|
168,093
|
|
|
|
3.48%
|
|
|
|
|
(H)
|
Annualized and
based on an actual 365 day or 366 day basis.
|
(I)
|
Yield on
securities was impacted by net premium amortization of 9,883,
$11,502 and $10,253 for the three-month periods ended
March 31, 2017, December 31, 2016 and March 31, 2016,
respectively.
|
(J)
|
Total cost of
funds, including noninterest bearing deposits, was 0.27%, 0.24% and
0.24% for the three months ended March 31, 2017, December 31, 2016
and March 31, 2016, respectively.
|
Prosperity
Bancshares, Inc.®
Financial
Highlights (Unaudited)
(Dollars in
thousands, except per share data)
|
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
|
Jun 30,
2016
|
|
|
Mar 31,
2016
|
|
Adjustment to Loan
Yield (K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on loans, as
reported
|
|
$
|
111,710
|
|
|
$
|
115,993
|
|
|
$
|
116,247
|
|
|
$
|
118,297
|
|
|
$
|
124,522
|
|
Purchase accounting
adjustment- loan discount accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASC 310-20
|
|
|
(3,270)
|
|
|
|
(3,956)
|
|
|
|
(5,296)
|
|
|
|
(5,833)
|
|
|
|
(6,663)
|
|
ASC 310-30
|
|
|
(1,483)
|
|
|
|
(3,596)
|
|
|
|
(2,324)
|
|
|
|
(3,471)
|
|
|
|
(7,831)
|
|
Total
|
|
|
(4,753)
|
|
|
|
(7,552)
|
|
|
|
(7,620)
|
|
|
|
(9,304)
|
|
|
|
(14,494)
|
|
Interest on loans,
excluding discount accretion
|
|
$
|
106,957
|
|
|
$
|
108,441
|
|
|
$
|
108,627
|
|
|
$
|
108,993
|
|
|
$
|
110,028
|
|
Average
loans
|
|
$
|
9,642,877
|
|
|
$
|
9,557,712
|
|
|
$
|
9,601,628
|
|
|
$
|
9,660,065
|
|
|
$
|
9,700,554
|
|
Loan yield, excluding
purchase accounting adjustment
|
|
|
4.50
|
%
|
|
|
4.51
|
%
|
|
|
4.50
|
%
|
|
|
4.54
|
%
|
|
|
4.56
|
%
|
Loan yield, as
reported
|
|
|
4.70
|
%
|
|
|
4.83
|
%
|
|
|
4.82
|
%
|
|
|
4.93
|
%
|
|
|
5.16
|
%
|
Adjustment to
Securities Yield (K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
securities, as reported
|
|
$
|
53,157
|
|
|
$
|
48,573
|
|
|
$
|
48,132
|
|
|
$
|
51,097
|
|
|
$
|
52,573
|
|
Purchase accounting
adjustment- securities amortization
|
|
|
852
|
|
|
|
950
|
|
|
|
1,051
|
|
|
|
948
|
|
|
|
1,722
|
|
Interest on
securities, excluding amortization
|
|
$
|
54,009
|
|
|
$
|
49,523
|
|
|
$
|
49,183
|
|
|
$
|
52,045
|
|
|
$
|
54,295
|
|
Average
securities
|
|
$
|
9,867,491
|
|
|
$
|
9,338,903
|
|
|
$
|
9,203,253
|
|
|
$
|
9,436,896
|
|
|
$
|
9,630,496
|
|
Securities yield,
excluding purchase accounting adjustment
|
|
|
2.22
|
%
|
|
|
2.11
|
%
|
|
|
2.13
|
%
|
|
|
2.22
|
%
|
|
|
2.27
|
%
|
Securities yield, as
reported
|
|
|
2.18
|
%
|
|
|
2.07
|
%
|
|
|
2.08
|
%
|
|
|
2.18
|
%
|
|
|
2.20
|
%
|
Adjustment to Time
Deposits Yield (K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on time
deposits, as reported
|
|
$
|
3,734
|
|
|
$
|
3,722
|
|
|
$
|
3,363
|
|
|
$
|
3,644
|
|
|
$
|
3,537
|
|
Purchase accounting
adjustment-time deposit amortization
|
|
|
99
|
|
|
|
232
|
|
|
|
575
|
|
|
|
178
|
|
|
|
182
|
|
Interest on time
deposits, excluding amortization
|
|
$
|
3,833
|
|
|
$
|
3,954
|
|
|
$
|
3,938
|
|
|
$
|
3,822
|
|
|
$
|
3,719
|
|
Average time
deposits
|
|
$
|
2,366,857
|
|
|
$
|
2,434,565
|
|
|
$
|
2,492,889
|
|
|
$
|
2,517,896
|
|
|
$
|
2,577,676
|
|
Time deposits yield,
excluding purchase accounting adjustment
|
|
|
0.66
|
%
|
|
|
0.65
|
%
|
|
|
0.63
|
%
|
|
|
0.61
|
%
|
|
|
0.58
|
%
|
Time deposits yield,
as reported
|
|
|
0.64
|
%
|
|
|
0.61
|
%
|
|
|
0.54
|
%
|
|
|
0.58
|
%
|
|
|
0.55
|
%
|
Net Interest
Margin (tax equivalent basis, excluding purchase accounting
adjustments to yield) (K)
|
|
|
3.11
|
%
|
|
|
3.12
|
%
|
|
|
3.14
|
%
|
|
|
3.19
|
%
|
|
|
3.21
|
%
|
Net Interest
Margin (tax equivalent basis), as reported
|
|
|
3.20
|
%
|
|
|
3.26
|
%
|
|
|
3.29
|
%
|
|
|
3.37
|
%
|
|
|
3.48
|
%
|
Net income
available to common shareholders, as reported
|
|
$
|
68,565
|
|
|
$
|
68,793
|
|
|
$
|
68,651
|
|
|
$
|
68,071
|
|
|
$
|
68,951
|
|
Less: Purchase
accounting adjustments, net of tax (L)
|
|
|
(2,675)
|
|
|
|
(4,602)
|
|
|
|
(4,796)
|
|
|
|
(5,712)
|
|
|
|
(8,712)
|
|
Net income
available to common shareholders, excluding purchase accounting
adjustments (K)
|
|
$
|
65,890
|
|
|
$
|
64,191
|
|
|
$
|
63,855
|
|
|
$
|
62,359
|
|
|
$
|
60,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share, excluding purchase accounting adjustments
(K)
|
|
$
|
0.95
|
|
|
$
|
0.92
|
|
|
$
|
0.92
|
|
|
$
|
0.90
|
|
|
$
|
0.86
|
|
Diluted earnings per
share, excluding purchase accounting adjustments
(K)
|
|
$
|
0.95
|
|
|
$
|
0.92
|
|
|
$
|
0.92
|
|
|
$
|
0.90
|
|
|
$
|
0.86
|
|
|
|
Acquired Loans
Accounted for
Under ASC
310-20
|
|
|
Acquired Loans
Accounted for
Under ASC
310-30
|
|
|
Total Loans
Accounted for
Under ASC 310-20
and 310-30
|
|
|
|
Balance
at
Acquisition
Date
|
|
|
Balance
at
Dec 31, 2016
|
|
|
Balance
at
Mar 31, 2017
|
|
|
Balance
at
Acquisition
Date
|
|
|
Balance
at
Dec 31, 2016
|
|
|
Balance at
Mar 31, 2017
|
|
|
Balance
at
Acquisition
Date
|
|
|
Balance
at
Dec 31, 2016
|
|
|
Balance
at
Mar 31, 2017
|
|
Loan
marks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(M)
|
|
$
|
229,080
|
|
|
$
|
35,401
|
|
|
$
|
32,129
|
|
|
$
|
142,128
|
|
|
$
|
24,007
|
|
|
$
|
22,395
|
|
|
$
|
371,208
|
|
|
$
|
59,408
|
|
|
$
|
54,524
|
|
Acquired portfolio
loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(M)
|
|
|
5,690,998
|
|
|
|
1,115,061
|
|
|
|
997,980
|
|
|
|
275,221
|
|
|
|
51,640
|
|
|
|
48,438
|
|
|
|
5,966,219
|
|
(N)
|
|
1,166,701
|
|
|
|
1,046,418
|
|
Acquired portfolio
loan balances less loan marks
|
|
$
|
5,461,918
|
|
|
$
|
1,079,660
|
|
|
$
|
965,851
|
|
|
$
|
133,093
|
|
|
$
|
27,633
|
|
|
$
|
26,043
|
|
|
$
|
5,595,011
|
|
|
$
|
1,107,293
|
|
|
$
|
991,894
|
|
|
|
(K)
|
Non-GAAP financial
measure.
|
(L)
|
Using effective
tax rate of 33.1%, 32.7%, 32.9%, 33.1% and 32.7% for the
three-month periods ended March 31, 2017, December 31, 2016,
September 30, 2016, June 30, 2016 and March 31, 2016,
respectively.
|
(M)
|
Includes Bank of
Texas, Bank Arlington, American State Bank, Community National
Bank, First Federal Bank Texas, Coppermark Bank, First Victoria
National Bank, The F&M Bank & Trust Company and Tradition
Bank.
|
(N)
|
Actual principal
balances acquired.
|
Prosperity
Bancshares, Inc.®
Financial
Highlights (Unaudited)
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
|
Jun 30,
2016
|
|
|
Mar 31,
2016
|
|
YIELD TREND
(O)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
4.70
|
%
|
|
|
4.83
|
%
|
|
|
4.82
|
%
|
|
|
4.93
|
%
|
|
|
5.16
|
%
|
Investment securities
(P)
|
|
2.18
|
%
|
|
|
2.07
|
%
|
|
|
2.08
|
%
|
|
|
2.18
|
%
|
|
|
2.20
|
%
|
Federal funds sold
and other earning assets
|
|
0.92
|
%
|
|
|
0.39
|
%
|
|
|
0.45
|
%
|
|
|
0.38
|
%
|
|
|
0.48
|
%
|
Total interest-earning
assets
|
|
3.42
|
%
|
|
|
3.45
|
%
|
|
|
3.47
|
%
|
|
|
3.56
|
%
|
|
|
3.67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
0.25
|
%
|
|
|
0.23
|
%
|
|
|
0.24
|
%
|
|
|
0.25
|
%
|
|
|
0.25
|
%
|
Savings and money
market deposits
|
|
0.26
|
%
|
|
|
0.26
|
%
|
|
|
0.27
|
%
|
|
|
0.27
|
%
|
|
|
0.27
|
%
|
Certificates and
other time deposits
|
|
0.64
|
%
|
|
|
0.61
|
%
|
|
|
0.54
|
%
|
|
|
0.58
|
%
|
|
|
0.55
|
%
|
Other
borrowings
|
|
0.89
|
%
|
|
|
0.63
|
%
|
|
|
0.56
|
%
|
|
|
0.58
|
%
|
|
|
0.54
|
%
|
Securities sold under
repurchase agreements
|
|
0.31
|
%
|
|
|
0.30
|
%
|
|
|
0.30
|
%
|
|
|
0.29
|
%
|
|
|
0.28
|
%
|
Junior subordinated
debentures
|
—
|
|
|
—
|
|
|
—
|
|
|
|
2.17
|
%
|
|
|
1.89
|
%
|
Total interest-bearing
liabilities
|
|
0.38
|
%
|
|
|
0.34
|
%
|
|
|
0.32
|
%
|
|
|
0.34
|
%
|
|
|
0.33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
|
3.16
|
%
|
|
|
3.22
|
%
|
|
|
3.25
|
%
|
|
|
3.33
|
%
|
|
|
3.44
|
%
|
Net Interest Margin
(tax equivalent)
|
|
3.20
|
%
|
|
|
3.26
|
%
|
|
|
3.29
|
%
|
|
|
3.37
|
%
|
|
|
3.48
|
%
|
|
|
(O)
|
Annualized and
based on average balances on an actual 365 day or 366 day
basis.
|
(P)
|
Yield on
securities was impacted by net premium amortization of
$9,883, $11,502, $11,312, $10,407 and $10,253
for the three-month periods ended March 31, 2017, December 31,
2016, September 30, 2016, June 30, 2016 and March 31, 2016,
respectively.
|
Prosperity
Bancshares, Inc.®
Financial
Highlights (Unaudited)
(Dollars in
thousands)
|
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
|
Jun 30,
2016
|
|
|
Mar 31,
2016
|
|
Balance Sheet
Averages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
9,642,877
|
|
|
$
|
9,557,712
|
|
|
$
|
9,601,628
|
|
|
$
|
9,660,065
|
|
|
$
|
9,700,554
|
|
Investment
securities
|
|
|
9,867,491
|
|
|
|
9,338,903
|
|
|
|
9,203,253
|
|
|
|
9,436,896
|
|
|
|
9,630,496
|
|
Federal funds sold
and other earning assets
|
|
|
80,150
|
|
|
|
106,214
|
|
|
|
72,171
|
|
|
|
68,268
|
|
|
|
80,400
|
|
Total interest-earning
assets
|
|
|
19,590,518
|
|
|
|
19,002,829
|
|
|
|
18,877,052
|
|
|
|
19,165,229
|
|
|
|
19,411,450
|
|
Allowance for credit
losses
|
|
|
(85,037)
|
|
|
|
(85,347)
|
|
|
|
(84,476)
|
|
|
|
(83,036)
|
|
|
|
(83,883)
|
|
Cash and due from
banks
|
|
|
262,794
|
|
|
|
248,735
|
|
|
|
226,621
|
|
|
|
227,570
|
|
|
|
274,535
|
|
Goodwill
|
|
|
1,900,845
|
|
|
|
1,900,337
|
|
|
|
1,903,418
|
|
|
|
1,903,451
|
|
|
|
1,899,667
|
|
Core deposit
intangibles, net
|
|
|
44,762
|
|
|
|
46,895
|
|
|
|
43,790
|
|
|
|
46,059
|
|
|
|
48,314
|
|
Other real
estate
|
|
|
15,669
|
|
|
|
15,826
|
|
|
|
16,041
|
|
|
|
15,549
|
|
|
|
6,077
|
|
Fixed assets,
net
|
|
|
260,716
|
|
|
|
267,952
|
|
|
|
272,058
|
|
|
|
276,727
|
|
|
|
279,179
|
|
Other
assets
|
|
|
391,200
|
|
|
|
359,033
|
|
|
|
342,845
|
|
|
|
356,849
|
|
|
|
430,165
|
|
Total
assets
|
|
$
|
22,381,467
|
|
|
$
|
21,756,260
|
|
|
$
|
21,597,349
|
|
|
$
|
21,908,398
|
|
|
$
|
22,265,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
5,140,010
|
|
|
$
|
5,214,656
|
|
|
$
|
5,070,094
|
|
|
$
|
5,099,736
|
|
|
$
|
5,085,456
|
|
Interest-bearing
demand deposits
|
|
|
4,136,260
|
|
|
|
3,861,952
|
|
|
|
3,858,821
|
|
|
|
4,108,305
|
|
|
|
4,442,652
|
|
Savings and money
market deposits
|
|
|
5,537,355
|
|
|
|
5,471,109
|
|
|
|
5,610,342
|
|
|
|
5,734,739
|
|
|
|
5,820,161
|
|
Certificates and
other time deposits
|
|
|
2,366,857
|
|
|
|
2,434,565
|
|
|
|
2,492,889
|
|
|
|
2,517,896
|
|
|
|
2,577,676
|
|
Total
deposits
|
|
|
17,180,482
|
|
|
|
16,982,282
|
|
|
|
17,032,146
|
|
|
|
17,460,676
|
|
|
|
17,925,945
|
|
Other
borrowings
|
|
|
1,123,396
|
|
|
|
712,126
|
|
|
|
532,301
|
|
|
|
489,616
|
|
|
|
361,778
|
|
Securities sold under
repurchase agreements
|
|
|
307,433
|
|
|
|
318,367
|
|
|
|
331,254
|
|
|
|
322,274
|
|
|
|
306,192
|
|
Junior subordinated
debentures
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
555
|
|
|
|
7,217
|
|
Other
liabilities
|
|
|
91,157
|
|
|
|
111,083
|
|
|
|
118,881
|
|
|
|
98,023
|
|
|
|
149,379
|
|
Shareholders'
equity
|
|
|
3,678,999
|
|
|
|
3,632,402
|
|
|
|
3,582,767
|
|
|
|
3,537,254
|
|
|
|
3,514,993
|
|
Total liabilities and
equity
|
|
$
|
22,381,467
|
|
|
$
|
21,756,260
|
|
|
$
|
21,597,349
|
|
|
$
|
21,908,398
|
|
|
$
|
22,265,504
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights (Unaudited)
(Dollars in
thousands)
|
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
|
Jun 30,
2016
|
|
|
Mar 31,
2016
|
|
Period End
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
$
|
1,287,216
|
|
|
13.2
|
%
|
|
$
|
1,254,900
|
|
|
13.0
|
%
|
|
$
|
1,233,108
|
|
|
12.9
|
%
|
|
$
|
1,299,310
|
|
|
13.5
|
%
|
|
$
|
1,337,189
|
|
|
14.9
|
%
|
Construction, land
development and other land loans
|
|
|
1,326,685
|
|
|
13.6
|
%
|
|
|
1,263,923
|
|
|
13.1
|
%
|
|
|
1,205,820
|
|
|
12.6
|
%
|
|
|
1,167,286
|
|
|
12.1
|
%
|
|
|
1,173,524
|
|
|
12.2
|
%
|
1-4 family
residential
|
|
|
2,424,533
|
|
|
24.9
|
%
|
|
|
2,439,348
|
|
|
25.3
|
%
|
|
|
2,427,616
|
|
|
25.5
|
%
|
|
|
2,424,868
|
|
|
25.1
|
%
|
|
|
2,379,503
|
|
|
24.6
|
%
|
Home
equity
|
|
|
281,298
|
|
|
2.9
|
%
|
|
|
278,483
|
|
|
2.9
|
%
|
|
|
279,836
|
|
|
2.9
|
%
|
|
|
283,212
|
|
|
2.9
|
%
|
|
|
283,686
|
|
|
2.9
|
%
|
Commercial real
estate (includes multi-family residential)
|
|
|
3,226,978
|
|
|
33.1
|
%
|
|
|
3,162,109
|
|
|
32.9
|
%
|
|
|
3,158,569
|
|
|
33.1
|
%
|
|
|
3,229,556
|
|
|
33.5
|
%
|
|
|
3,229,706
|
|
|
33.5
|
%
|
Agriculture (includes
farmland)
|
|
|
662,797
|
|
|
6.8
|
%
|
|
|
672,336
|
|
|
7.0
|
%
|
|
|
664,080
|
|
|
7.0
|
%
|
|
|
657,633
|
|
|
6.8
|
%
|
|
|
641,293
|
|
|
6.6
|
%
|
Consumer and
other
|
|
|
262,301
|
|
|
2.7
|
%
|
|
|
266,422
|
|
|
2.8
|
%
|
|
|
270,334
|
|
|
2.8
|
%
|
|
|
259,734
|
|
|
2.7
|
%
|
|
|
246,681
|
|
|
1.5
|
%
|
Energy
|
|
|
267,445
|
|
|
2.8
|
%
|
|
|
284,539
|
|
|
3.0
|
%
|
|
|
308,951
|
|
|
3.2
|
%
|
|
|
328,409
|
|
|
3.4
|
%
|
|
|
362,826
|
|
|
3.8
|
%
|
Total loans
|
|
$
|
9,739,253
|
|
|
|
|
|
$
|
9,622,060
|
|
|
|
|
|
$
|
9,548,314
|
|
|
|
|
|
$
|
9,650,008
|
|
|
|
|
|
$
|
9,654,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
DDA
|
|
$
|
5,299,264
|
|
|
31.1
|
%
|
|
$
|
5,190,973
|
|
|
30.0
|
%
|
|
$
|
5,159,333
|
|
|
30.5
|
%
|
|
$
|
5,016,637
|
|
|
29.1
|
%
|
|
$
|
5,112,943
|
|
|
28.6
|
%
|
Interest-bearing
DDA
|
|
|
3,845,061
|
|
|
22.6
|
%
|
|
|
4,215,671
|
|
|
24.3
|
%
|
|
|
3,749,018
|
|
|
22.1
|
%
|
|
|
3,976,839
|
|
|
23.1
|
%
|
|
|
4,382,999
|
|
|
24.5
|
%
|
Money
market
|
|
|
3,370,055
|
|
|
19.8
|
%
|
|
|
3,368,599
|
|
|
19.5
|
%
|
|
|
3,468,639
|
|
|
20.5
|
%
|
|
|
3,687,602
|
|
|
21.4
|
%
|
|
|
3,812,420
|
|
|
21.3
|
%
|
Savings
|
|
|
2,189,822
|
|
|
12.8
|
%
|
|
|
2,125,854
|
|
|
12.3
|
%
|
|
|
2,074,169
|
|
|
12.3
|
%
|
|
|
2,022,327
|
|
|
11.8
|
%
|
|
|
2,017,980
|
|
|
11.3
|
%
|
Certificates and
other time deposits
|
|
|
2,331,370
|
|
|
13.7
|
%
|
|
|
2,406,205
|
|
|
13.9
|
%
|
|
|
2,470,250
|
|
|
14.6
|
%
|
|
|
2,515,740
|
|
|
14.6
|
%
|
|
|
2,546,424
|
|
|
14.3
|
%
|
Total
deposits
|
|
$
|
17,035,572
|
|
|
|
|
|
$
|
17,307,302
|
|
|
|
|
|
$
|
16,921,409
|
|
|
|
|
|
$
|
17,219,145
|
|
|
|
|
|
$
|
17,872,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
|
|
57.2
|
%
|
|
|
|
|
|
55.6
|
%
|
|
|
|
|
|
56.4
|
%
|
|
|
|
|
|
56.0
|
%
|
|
|
|
|
|
54.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family
residential construction
|
|
$
|
411,553
|
|
|
30.9
|
%
|
|
$
|
396,794
|
|
|
31.3
|
%
|
|
$
|
390,397
|
|
|
32.3
|
%
|
|
$
|
410,456
|
|
|
35.0
|
%
|
|
$
|
407,519
|
|
|
34.5
|
%
|
Land
development
|
|
|
83,475
|
|
|
6.3
|
%
|
|
|
76,275
|
|
|
6.0
|
%
|
|
|
77,789
|
|
|
6.4
|
%
|
|
|
85,488
|
|
|
7.3
|
%
|
|
|
84,141
|
|
|
7.1
|
%
|
Raw land
|
|
|
183,453
|
|
|
13.8
|
%
|
|
|
194,267
|
|
|
15.3
|
%
|
|
|
170,640
|
|
|
14.1
|
%
|
|
|
161,402
|
|
|
13.8
|
%
|
|
|
174,546
|
|
|
14.8
|
%
|
Residential
lots
|
|
|
129,389
|
|
|
9.7
|
%
|
|
|
130,096
|
|
|
10.3
|
%
|
|
|
131,589
|
|
|
10.9
|
%
|
|
|
131,807
|
|
|
11.3
|
%
|
|
|
126,881
|
|
|
10.8
|
%
|
Commercial
lots
|
|
|
84,705
|
|
|
6.4
|
%
|
|
|
75,625
|
|
|
6.0
|
%
|
|
|
84,862
|
|
|
7.0
|
%
|
|
|
83,725
|
|
|
7.1
|
%
|
|
|
80,286
|
|
|
6.8
|
%
|
Commercial
construction and other
|
|
|
437,083
|
|
|
32.9
|
%
|
|
|
394,040
|
|
|
31.1
|
%
|
|
|
353,942
|
|
|
29.3
|
%
|
|
|
298,713
|
|
|
25.5
|
%
|
|
|
306,742
|
|
|
26.0
|
%
|
Net unaccreted
discount
|
|
|
(2,973)
|
|
|
|
|
|
|
(3,174)
|
|
|
|
|
|
|
(3,399)
|
|
|
|
|
|
|
(4,305)
|
|
|
|
|
|
|
(6,591)
|
|
|
|
|
Total construction
loans
|
|
$
|
1,326,685
|
|
|
|
|
|
$
|
1,263,923
|
|
|
|
|
|
$
|
1,205,820
|
|
|
|
|
|
$
|
1,167,286
|
|
|
|
|
|
$
|
1,173,524
|
|
|
|
|
Non-Owner Occupied
Commercial Real Estate Loans by Metropolitan Statistical Area (MSA)
as of March 31, 2017
|
|
Collateral
Type
|
Houston
|
|
|
Dallas
|
|
|
Austin
|
|
|
OK
City
|
|
|
Tulsa
|
|
|
Other
(Q)
|
|
|
Total
|
|
|
Shopping
center/retail
|
$
|
215,503
|
|
|
$
|
49,926
|
|
|
$
|
39,314
|
|
|
$
|
24,267
|
|
|
$
|
23,913
|
|
|
$
|
139,265
|
|
|
$
|
492,188
|
|
|
Commercial and
industrial buildings
|
|
102,211
|
|
|
|
32,526
|
|
|
|
14,812
|
|
|
|
13,087
|
|
|
|
10,891
|
|
|
|
63,769
|
|
|
|
237,296
|
|
|
Office
buildings
|
|
76,416
|
|
|
|
132,624
|
|
|
|
15,792
|
|
|
|
34,010
|
|
|
|
4,223
|
|
|
|
80,032
|
|
|
|
343,097
|
|
|
Medical
buildings
|
|
61,566
|
|
|
|
9,274
|
|
|
|
48
|
|
|
|
17,509
|
|
|
|
7,776
|
|
|
|
49,862
|
|
|
|
146,035
|
|
|
Apartment
buildings
|
|
38,009
|
|
|
|
13,797
|
|
|
|
17,842
|
|
|
|
12,185
|
|
|
|
5,713
|
|
|
|
84,192
|
|
|
|
171,738
|
|
|
Hotel
|
|
33,855
|
|
|
|
32,146
|
|
|
|
13,168
|
|
|
|
23,775
|
|
|
|
—
|
|
|
|
94,887
|
|
|
|
197,831
|
|
|
Other
|
|
58,834
|
|
|
|
6,052
|
|
|
|
15,477
|
|
|
|
7,057
|
|
|
|
4,871
|
|
|
|
59,449
|
|
|
|
151,740
|
|
|
Total
|
$
|
586,394
|
|
|
$
|
276,345
|
|
|
$
|
116,453
|
|
|
$
|
131,890
|
|
|
$
|
57,387
|
|
|
$
|
571,456
|
|
|
$
|
1,739,925
|
|
(R)
|
|
|
(Q)
|
Includes other MSA
and non-MSA regions.
|
(R)
|
Represents a
portion of total commercial real estate loans of $3.227 billion as
of March 31, 2017.
|
Prosperity
Bancshares, Inc.®
Financial
Highlights (Unaudited)
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
|
Jun 30,
2016
|
|
|
Mar 31,
2016
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
|
24,360
|
|
|
$
|
31,642
|
|
|
$
|
43,451
|
|
|
$
|
29,547
|
|
|
$
|
39,036
|
|
Accruing loans 90 or
more days past due
|
|
880
|
|
|
|
956
|
|
|
|
399
|
|
|
|
6,822
|
|
|
|
1,093
|
|
Total nonperforming
loans
|
|
25,240
|
|
|
|
32,598
|
|
|
|
43,850
|
|
|
|
36,369
|
|
|
|
40,129
|
|
Repossessed
assets
|
|
261
|
|
|
|
241
|
|
|
|
36
|
|
|
|
84
|
|
|
|
161
|
|
Other real
estate
|
|
15,698
|
|
|
|
15,463
|
|
|
|
16,280
|
|
|
|
15,677
|
|
|
|
16,695
|
|
Total nonperforming
assets
|
$
|
41,199
|
|
|
$
|
48,302
|
|
|
$
|
60,166
|
|
|
$
|
52,130
|
|
|
$
|
56,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
18,743
|
|
|
$
|
24,537
|
|
|
$
|
26,848
|
|
|
$
|
16,822
|
|
|
$
|
18,835
|
|
Construction, land
development and other land loans
|
|
1,461
|
|
|
|
1,766
|
|
|
|
1,711
|
|
|
|
1,606
|
|
|
|
2,913
|
|
1-4 family residential
(includes home equity)
|
|
4,070
|
|
|
|
4,119
|
|
|
|
4,450
|
|
|
|
5,016
|
|
|
|
6,226
|
|
Commercial real estate
(includes multi-family residential)
|
|
16,235
|
|
|
|
17,167
|
|
|
|
26,680
|
|
|
|
26,651
|
|
|
|
22,208
|
|
Agriculture (includes
farmland)
|
|
534
|
|
|
|
542
|
|
|
|
248
|
|
|
|
1,682
|
|
|
|
6,578
|
|
Consumer and
other
|
|
156
|
|
|
|
171
|
|
|
|
229
|
|
|
|
353
|
|
|
|
225
|
|
Total
|
$
|
41,199
|
|
|
$
|
48,302
|
|
|
$
|
60,166
|
|
|
$
|
52,130
|
|
|
$
|
56,985
|
|
Number of
loans/properties
|
|
139
|
|
|
|
158
|
|
|
|
158
|
|
|
|
166
|
|
|
|
168
|
|
Allowance for credit
losses at end of period
|
$
|
84,095
|
|
|
$
|
85,326
|
|
|
$
|
85,585
|
|
|
$
|
83,826
|
|
|
$
|
83,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
3,495
|
|
|
$
|
3,161
|
|
|
$
|
(107)
|
|
|
$
|
4,109
|
|
|
$
|
4,396
|
|
Construction, land
development and other land loans
|
|
(65)
|
|
|
|
(1,922)
|
|
|
|
(368)
|
|
|
|
(25)
|
|
|
|
(186)
|
|
1-4 family residential
(includes home equity)
|
|
(95)
|
|
|
|
(82)
|
|
|
|
48
|
|
|
|
(78)
|
|
|
|
30
|
|
Commercial real estate
(includes multi-family residential)
|
|
133
|
|
|
|
41
|
|
|
|
(1)
|
|
|
|
197
|
|
|
|
59
|
|
Agriculture (includes
farmland)
|
|
(65)
|
|
|
|
305
|
|
|
|
(45)
|
|
|
|
(655)
|
|
|
|
6,962
|
|
Consumer and
other
|
|
503
|
|
|
|
756
|
|
|
|
714
|
|
|
|
2,340
|
|
|
|
409
|
|
Total
|
$
|
3,906
|
|
|
$
|
2,259
|
|
|
$
|
241
|
|
|
$
|
5,888
|
|
|
$
|
11,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to average earning assets
|
|
0.21
|
%
|
|
|
0.25
|
%
|
|
|
0.32
|
%
|
|
|
0.27
|
%
|
|
|
0.29
|
%
|
Nonperforming assets
to loans and other real estate
|
|
0.42
|
%
|
|
|
0.50
|
%
|
|
|
0.63
|
%
|
|
|
0.54
|
%
|
|
|
0.59
|
%
|
Net charge-offs to
average loans (annualized)
|
|
0.16
|
%
|
|
|
0.09
|
%
|
|
|
0.01
|
%
|
|
|
0.24
|
%
|
|
|
0.48
|
%
|
Allowance for credit
losses to total loans
|
|
0.86
|
%
|
|
|
0.89
|
%
|
|
|
0.90
|
%
|
|
|
0.87
|
%
|
|
|
0.87
|
%
|
Allowance for credit
losses to total loans (excluding acquired loans accounted for under
ASC Topics 310-20 and 310-30) (E)
|
|
0.96
|
%
|
|
|
1.00
|
%
|
|
|
1.03
|
%
|
|
|
1.01
|
%
|
|
|
1.03
|
%
|
Prosperity Bancshares,
Inc.®
Notes to Selected Financial Data
(Unaudited)
(Dollars and share amounts in thousands, except
per share data)
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. In addition, due to the application of
purchase accounting, Prosperity uses certain non-GAAP measures and
ratios that exclude the impact of these items to evaluate its net
income and earnings per share (each excluding purchase accounting
adjustments) and its allowance for credit losses to total loans
(excluding acquired loans accounted for under ASC Topics 310-20 and
310-30). Prosperity has included information below and on page 11
of this Earnings Release relating to these non-GAAP financial
measures for the applicable periods presented.
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
|
Jun 30,
2016
|
|
|
Mar 31,
2016
|
|
Reconciliation of
return on average common equity to return on average tangible
common equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
68,565
|
|
|
$
|
68,793
|
|
|
$
|
68,651
|
|
|
$
|
68,071
|
|
|
$
|
68,951
|
|
Average shareholders'
equity
|
|
$
|
3,678,999
|
|
|
$
|
3,632,402
|
|
|
$
|
3,582,767
|
|
|
$
|
3,537,254
|
|
|
$
|
3,514,993
|
|
Less: Average
goodwill and other intangible assets
|
|
|
(1,945,607)
|
|
|
|
(1,947,232)
|
|
|
|
(1,947,208)
|
|
|
|
(1,949,510)
|
|
|
|
(1,947,981)
|
|
Average tangible
shareholders' equity
|
|
$
|
1,733,392
|
|
|
$
|
1,685,170
|
|
|
$
|
1,635,559
|
|
|
$
|
1,587,744
|
|
|
$
|
1,567,012
|
|
Return on average
tangible common equity (D)
|
|
|
15.82
|
%
|
|
|
16.33
|
%
|
|
|
16.79
|
%
|
|
|
17.15
|
%
|
|
|
17.60
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
book value per share to tangible book value per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
3,689,082
|
|
|
$
|
3,642,311
|
|
|
$
|
3,594,812
|
|
|
$
|
3,544,584
|
|
|
$
|
3,499,060
|
|
Less: Goodwill and
other intangible assets
|
|
|
(1,944,714)
|
|
|
|
(1,946,629)
|
|
|
|
(1,948,359)
|
|
|
|
(1,948,312)
|
|
|
|
(1,950,646)
|
|
Tangible shareholders'
equity
|
|
$
|
1,744,368
|
|
|
$
|
1,695,682
|
|
|
$
|
1,646,453
|
|
|
$
|
1,596,272
|
|
|
$
|
1,548,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
|
|
69,480
|
|
|
|
69,491
|
|
|
|
69,478
|
|
|
|
69,480
|
|
|
|
69,543
|
|
Tangible book value
per share:
|
|
$
|
25.11
|
|
|
$
|
24.40
|
|
|
$
|
23.70
|
|
|
$
|
22.97
|
|
|
$
|
22.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
equity to assets ratio to period end tangible equity to period end
tangible assets ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
shareholders' equity
|
|
$
|
1,744,368
|
|
|
$
|
1,695,682
|
|
|
$
|
1,646,453
|
|
|
$
|
1,596,272
|
|
|
$
|
1,548,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
22,477,419
|
|
|
$
|
22,331,072
|
|
|
$
|
21,404,044
|
|
|
$
|
21,796,310
|
|
|
$
|
21,978,345
|
|
Less: Goodwill and
other intangible assets
|
|
|
(1,944,714)
|
|
|
|
(1,946,629)
|
|
|
|
(1,948,359)
|
|
|
|
(1,948,312)
|
|
|
|
(1,950,646)
|
|
Tangible
assets
|
|
$
|
20,532,705
|
|
|
$
|
20,384,443
|
|
|
$
|
19,455,685
|
|
|
$
|
19,847,998
|
|
|
$
|
20,027,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end tangible
equity to period end tangible assets ratio:
|
|
|
8.50
|
%
|
|
|
8.32
|
%
|
|
|
8.46
|
%
|
|
|
8.04
|
%
|
|
|
7.73
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
allowance for credit losses to total loans to allowance for credit
losses to total loans, excluding acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses
|
|
$
|
84,095
|
|
|
$
|
85,326
|
|
|
$
|
85,585
|
|
|
$
|
83,826
|
|
|
$
|
83,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans
|
|
$
|
9,739,253
|
|
|
$
|
9,622,060
|
|
|
$
|
9,548,314
|
|
|
$
|
9,650,008
|
|
|
$
|
9,654,408
|
|
Less: Fair value of
acquired loans (acquired portfolio loan balances less loan
marks)
|
|
$
|
991,894
|
|
|
$
|
1,107,293
|
|
|
$
|
1,230,466
|
|
|
$
|
1,373,110
|
|
|
$
|
1,495,319
|
|
Total loans less
acquired loans
|
|
$
|
8,747,359
|
|
|
$
|
8,514,767
|
|
|
$
|
8,317,848
|
|
|
$
|
8,276,898
|
|
|
$
|
8,159,089
|
|
Allowance for credit
losses to total loans, excluding acquired loans (non-GAAP
basis)
|
|
|
0.96
|
%
|
|
|
1.00
|
%
|
|
|
1.03
|
%
|
|
|
1.01
|
%
|
|
|
1.03
|
%
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/prosperity-bancshares-inc-reports-first-quarter-2017-earnings-300445839.html
SOURCE Prosperity Bancshares, Inc.