HOUSTON, July 24, 2013 /PRNewswire/ -- Prosperity
Bancshares, Inc.® (NYSE: PB), the parent company of
Prosperity Bank®, reported net income for the quarter
ended June 30, 2013, of $53.844 million or $0.89 per diluted common share, an increase in
net income of $16.872 million or
45.6%, compared with $36.972 million
and an increase in diluted earnings per share of 14.1% compared
with $0.78 per diluted common share
for the same period in 2012.
"Again I am delighted to be able to announce record earnings of
$53.844 million for the second
quarter of 2013, as well as record earnings per diluted share of
$0.89, representing a 14.1% increase
over the same period last year. As you can see, our bank has
experienced significant growth. In fact, our assets increased
$5.533 billion, or 51.5%, when
compared with the same quarter last year," said David Zalman, Prosperity's Chairman and Chief
Executive Officer.
"During the past quarter, we completed our merger with
Coppermark Bancshares, Inc. based in Oklahoma. The operational integration went
very well and we believe the entire Coppermark team is ahead of
schedule. We have thoroughly enjoyed working with the former
Coppermark, now Prosperity, associates and customers in
Oklahoma. You could not ask for a more professional group to
work and grow with," said Zalman.
"On July 1, 2013, Prosperity
announced the signing of a definitive merger agreement with FVNB
Corp. and its wholly-owned subsidiary First Victoria National Bank
headquartered in Victoria,
Texas. I could not be more excited about joining forces with
all of the professionals of First Victoria National Bank. We
have always had a great deal of respect for the bank and all of the
people that have contributed to its success Both of our banks
do business in many of the same communities and we have knowledge
of the specific needs of those communities in terms of financial
products as well as community support. We believe this
combination will further strengthen our already strong management
and operations teams in South
Texas and increase our ability to effectively compete and
serve our customers," continued Zalman.
"We are also very pleased with our organic loan growth of 3.7%
(14.6% annualized) on a linked quarter basis. It appears that
customers are starting to invest more in their businesses by taking
out more loans and using their deposits on hand to grow their
business. The future for Oklahoma and Texas looks very bright with increasing
populations and business moving to our states primarily because of
structures that favor business and growth," added Zalman.
"Again we owe all of our success to our team of associates and
board members who have helped grow the company in the right
direction with all of their hard work, insight and dedication and
for that I say thank you! We would also like to thank all of
our customers for their business and loyalty to the bank,"
concluded Zalman.
Prosperity's management uses certain non−GAAP (generally
accepted accounting principles) financial measures to evaluate its
performance. Specifically, Prosperity reviews tangible book value
per share, return on average tangible common equity and the
tangible equity to tangible assets ratio. 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 allowance for credit losses to total loans
(excluding acquired loans accounted for under ASC Topics 310-20 and
310-30). Prosperity has included in this Earnings Release
information relating to these non-GAAP financial measures for the
applicable periods presented. Please refer to the "Notes to
Selected Financial Data" at the end of this Earnings Release for a
reconciliation of these non-GAAP financial measures.
Results of operations for the three months ended June 30, 2013
For the three months ended June 30,
2013, net income was $53.844
million compared with $36.972
million for the same period in 2012. Net income per
diluted common share was $0.89 for
the three months ended June 30, 2013
compared with $0.78 for the same
period in 2012. Annualized returns on average assets, average
common equity and average tangible common equity for the three
months ended June 30, 2013 were
1.33%, 9.27% and 22.32%, respectively. Prosperity's
efficiency ratio (excluding credit loss provisions, net gains and
losses on the sale of assets and securities and taxes) was 42.51%
for the three months ended June 30,
2013.
Net interest income before provision for credit losses for the
quarter ended June 30, 2013,
increased 41.9% to $118.742 million
compared with $83.666 million during
the same period in 2012. The increase is primarily due to a
47.5% increase in average interest-earning assets for the same
period. Linked quarter net interest income before provision
for credit losses increased 9.9% or $10.660
million to $118.742 million
compared with $108.082 million during
the three months ended March 31,
2013. The net interest margin on a tax equivalent basis
decreased to 3.43% for the three months ended June 30, 2013, compared with 3.55% for the same
period in 2012 and increased from 3.42% for the three months ended
March 31, 2013.
Noninterest income increased $11.618
million or 85.1% to $25.274
million for the three months ended June 30, 2013, compared with $13.656 million for the same period in
2012. The increase was primarily due to increases in NSF
fees, ATM and debit card income and service charges, as a result of
a larger customer base, and trust and mortgage income as a result
of the acquisition of American State Financial Corporation ("ASB")
on July 1, 2012. Through
ASB, Prosperity acquired additional services and products including
trust, credit cards and mortgage lending operations. On a
linked quarter basis, noninterest income increased 7.8% or
$1.833 million.
Noninterest expense increased $20.512
million or 50.3% to $61.300
million for the three months ended June 30, 2013, compared with $40.788 million for the same period in
2012. The increase is primarily due to additional noninterest
expenses associated with the acquisition of ASB on July 1, 2012 and Coppermark Bancshares, Inc.
("Coppermark Bank") on April 1, 2013.
On a linked quarter basis, noninterest expense increased 9.9%
or $5.533 million primarily due to an
increase in salaries and benefits as a result of the acquisition of
Coppermark Bank. Additionally, total noninterest expense for
the three months ended June 30, 2013
included one-time pre-tax merger expenses of $610,000 primarily related to the Coppermark Bank
acquisition.
Average loans increased 56.2% or $2.200
billion to $6.115 billion for
the quarter ended June 30, 2013,
compared with $3.914 billion for the
same period in 2012. On a linked quarter basis, average loans
increased 16.2% or $850.814 million
from $5.264 billion at March 31, 2013. Average deposits increased 50.3%
to $12.681 billion for the quarter
ended June 30, 2013, compared with
$8.436 billion for the same period of
2012. On a linked quarter basis, average deposits increased
7.8% or $921.297 million from
$11.760 billion at March 31, 2013.
Loans at June 30, 2013 were
$6.172 billion, an increase of
$2.222 billion or 56.3%, compared
with $3.950 billion at June 30, 2012. On a linked quarter basis,
loans increased $909.459 million or
17.3% from $5.263 billion at
March 31, 2013. Deposits at
June 30, 2013 were $12.509 billion, an increase of $4.114 billion or 49.0% compared with
$8.395 billion at June 30, 2012. On a linked quarter basis,
deposits increased $795.183 million
or 6.8% from $11.713 billion at
March 31, 2013.
Results of operations for the six months ended June 30, 2013
For the six months ended June 30,
2013, net income was $103.149
million compared with $73.459
million for the same period in 2012. Net income per
diluted common share was $1.76 for
the six months ended June 30, 2013
compared with $1.55 for the same
period in 2012. Returns on average assets, average common
equity and average tangible common equity, each on an annualized
basis, for the six months ended June 30,
2013 were 1.33%, 9.25%, and 22.31%, respectively.
Prosperity's efficiency ratio (excluding credit loss provisions,
net gains and losses on the sale of assets and securities and
taxes) was 42.46% for the six months ended June 30, 2013.
Net interest income before provision for credit losses for the
six months ended June 30, 2013
increased $61.312 million or 37.0% to
$226.824 million compared with
$165.512 million during the same
period in 2012. The increase was attributable primarily to a
45.2% increase in average earning assets over the same
period.
Noninterest income increased $21.114
million or 76.5% to $48.715
million for the six months ended June
30, 2013 compared with $27.601
million for the same period in 2012. The increase was
primarily due to the additional services and products acquired
through the acquisition of ASB on July
1, 2012.
Noninterest expense increased $35.820
million or 44.1% to $117.067
million for the six months ended June
30, 2013 compared with $81.247
million for the same period in 2012. This increase was
primarily attributable to the increase in salaries and benefits as
a result of the completion of five acquisitions over the past
year. Additionally, total noninterest expense for the six
months ended June 30, 2013 included
one-time pre-tax merger expenses of $862,000.
Average loans increased 47.2% or $1.825
billion to $5.692 billion for
the six months ended June 30, 2013,
compared with $3.867 billion for the
same period in 2012. Average deposits increased 45.0% to
$12.223 billion for the six months
ended June 30, 2013, compared with
$8.432 billion for the same period in
2012.
The table below provides detail on loans acquired and deposits
assumed in the The Bank Arlington, ASB, Community National Bank
("Community National"), East Texas Financial Services and
Coppermark Bank transactions completed on April 1, 2012, July 1,
2012, October 1, 2012,
January 1, 2013 and April 1, 2013, respectively:
Balance Sheet Data
(at period end)
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Dec 31,
2012
|
|
Sep 30,
2012
|
|
Jun 30,
2012
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Loans acquired
(including new production since respective acquisition
dates):
|
|
|
|
|
|
|
|
|
|
The Bank
Arlington
|
$
22,826
|
|
$
22,919
|
|
$
23,308
|
|
$
21,806
|
|
$
22,542
|
ASB
|
967,732
|
|
974,223
|
|
1,068,077
|
|
1,131,005
|
|
-
|
Community National
|
61,722
|
|
61,966
|
|
63,940
|
|
-
|
|
-
|
East
Texas Financial Services
|
111,626
|
|
117,863
|
|
-
|
|
-
|
|
-
|
Coppermark Bank
|
772,965
|
|
-
|
|
-
|
|
-
|
|
-
|
All other
|
4,235,612
|
|
4,086,053
|
|
4,024,615
|
|
3,926,292
|
|
3,927,790
|
Total
loans
|
$
6,172,483
|
|
$
5,263,024
|
|
$
5,179,940
|
|
$
5,079,103
|
|
$
3,950,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits assumed
(including new deposits since respective acquisition
dates):
|
|
|
|
|
|
|
|
|
|
The Bank
Arlington
|
$
29,772
|
|
$
28,220
|
|
$
29,842
|
|
$
33,609
|
|
$
33,505
|
ASB
|
2,367,198
|
|
2,461,485
|
|
2,510,855
|
|
2,518,178
|
|
-
|
Community National
|
156,210
|
|
156,274
|
|
160,404
|
|
-
|
|
-
|
East
Texas Financial Services
|
88,289
|
|
98,359
|
|
-
|
|
-
|
|
-
|
Coppermark Bank
|
1,087,137
|
|
-
|
|
-
|
|
-
|
|
-
|
All other
|
8,780,044
|
|
8,969,129
|
|
8,940,743
|
|
8,402,810
|
|
8,361,077
|
Total
deposits
|
$
12,508,650
|
|
$
11,713,467
|
|
$
11,641,844
|
|
$
10,954,597
|
|
$
8,394,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reflected in the table above, loan and deposit growth was
impacted by the acquisitions of The Bank Arlington, ASB, Community
National, East Texas Financial Services and Coppermark Bank.
Excluding loans acquired in these acquisitions and new production
at the acquired banking centers since the respective acquisition
dates, loans at June 30, 2013 grew
7.8% compared with June 30, 2012 and
3.7% (14.6% annualized) on a linked quarter basis. Excluding
deposits assumed in these acquisitions and new deposits generated
at the acquired banking centers since the respective acquisition
dates, deposits at June 30, 2013 grew
5.0% compared with June 30, 2012 and
decreased 2.1% on a linked quarter basis.
At June 30, 2013, Prosperity had
$16.271 billion in total assets,
$6.172 billion in loans and
$12.509 billion in deposits. Assets,
loans and deposits at June 30, 2013
increased by 51.5%, 56.3% and 49.0%, respectively, compared with
their respective levels at June 30,
2012.
Asset Quality
Nonperforming assets totaled $14.864
million or 0.11% of quarterly average earning assets at
June 30, 2013, compared with
$11.873 million or 0.12% of quarterly
average earning assets at June 30,
2012, and $18.133 million or
0.14% of quarterly average earnings assets at March 31, 2013. The allowance for credit
losses was 0.91% of total loans at June 30,
2013, 1.28% of total loans at June
30, 2012 and 1.05% of total loans at March 31, 2013. Excluding loans acquired
that are accounted for under ASC Topics 310-20 and 310-30, the
allowance for credit losses was 1.18% and 1.25% of remaining loans
as of June 30, 2013 and March 31, 2013, respectively. Refer to the
"Notes to Selected Financial Data" at the end of this Earnings
Release for a reconciliation of this non-GAAP financial
measure.
The provision for credit losses was $2.550 million for the three months ended
June 30, 2013 compared to
$2.800 million for the three months
ended March 31, 2013 and $600,000 for the three months ended June 30, 2012. Net charge offs were
$1.423 million for the three months
ended June 30, 2013 compared to
$315,000 for the three months ended
March 31, 2013 and $1.860 million for the three months ended
June 30, 2012.
Conference Call
Prosperity's management team will host a conference call on
Wednesday, July 24, 2013 at
10:30 a.m. Eastern Standard Time
(9:30 a.m. Central Standard Time) to
discuss Prosperity's second quarter 2013 earnings. Individuals and
investment professionals may participate in the call by dialing
866-952-7532, the reference code is PBUS.
Alternatively, individuals may listen to the live webcast of the
presentation by visiting Prosperity's website at
http://www.prosperitybankusa.com. The webcast may be accessed
directly from Prosperity's home page by clicking the "About Us" tab
and then the "Presentations & Calls" link.
Pending Acquisition of FVNB Corp.
On July 1, 2013, Prosperity
announced the signing of a definitive merger agreement with FVNB
Corp. and its wholly-owned subsidiary First Victoria National Bank
(collectively referred to as "FVNB") headquartered in Victoria, Texas. First Victoria National
Bank operates thirty-four (34) banking offices; seven (7) in the
South Texas area including
Corpus Christi; six (6) in the
Bryan/College Station area; five
(5) in the Central Texas area
including New Braunfels; and
twelve (12) in the Houston area
including The Woodlands and
Huntsville. As of June 30,
2013, FVNB, on a consolidated basis, reported total assets
of $2.417 billion, total loans of
$1.648 billion and total deposits of
$2.150 billion.
Under the terms of the definitive agreement, Prosperity will
issue approximately 5,570,818 shares of Prosperity common stock
plus $91.250 million in cash for all
outstanding shares of FVNB Corp. capital stock, subject to certain
conditions and potential adjustments. The transaction is
subject to customary closing conditions, including the receipt of
customary regulatory approvals and approval by FVNB's
shareholders.
Acquisition of Coppermark Bancshares, Inc.
On April 1, 2013, Prosperity
completed the previously announced acquisition of Coppermark
Bancshares, Inc. and its wholly-owned subsidiary, Coppermark Bank
("Coppermark") headquartered in Oklahoma
City, Oklahoma. Coppermark operated nine (9) full-service
banking offices; six (6) in Oklahoma
City, Oklahoma and surrounding areas and three (3) in the
Dallas, Texas area. As of
March 31, 2013, Coppermark reported,
on a consolidated basis, total assets of $1.2 billion, total loans of $847.6 million and total deposits of $1.1 billion.
Pursuant to the terms of the acquisition agreement, Prosperity
issued 3,258,718 shares of Prosperity common stock plus
$60.0 million in cash for all
outstanding shares of Coppermark Bancshares capital stock, which
resulted in a premium of $91.7
million.
Acquisition of East Texas Financial Services, Inc.
On January 1, 2013, Prosperity
completed the previously announced acquisition of East Texas
Financial Services, Inc. (OTC BB: FFBT) and its wholly-owned
subsidiary, First Federal Bank Texas ("Firstbank"). Firstbank
operated four (4) banking offices in the Tyler MSA, including three
locations in Tyler, Texas and one
location in Gilmer, Texas. As of
December 31, 2012, East Texas
Financial Services reported, on a consolidated basis, total assets
of $165.0 million, total loans of
$129.3 million and total deposits of
$112.3 million.
Pursuant to the terms of the acquisition agreement, Prosperity
issued 530,940 shares of Prosperity common stock for all
outstanding shares of East Texas Financial Services capital stock,
which resulted in a premium of $7.0
million.
Acquisition of Community National Bank
On October 1, 2012, Prosperity
completed the previously announced acquisition of Community
National Bank, Bellaire,
Texas. Community National operated one (1) banking office in
Bellaire, Texas, in the
Houston Metropolitan Area. As of
September 30, 2012, Community
National reported total assets of $183.0
million, total loans of $68.0
million and total deposits of $164.6
million.
Pursuant to the terms of the acquisition agreement, Prosperity
issued 372,282 shares of Prosperity common stock plus $11.4 million in cash for all outstanding shares
of Community National capital stock, which resulted in a premium of
$10.6 million.
Acquisition of American State Financial Corporation
On July 1, 2012, Prosperity
completed the previously announced acquisition of American State
Financial Corporation and its wholly-owned subsidiary American
State Bank. American State Bank operated thirty-seven (37)
full-service banking offices in eighteen (18) counties across
West Texas. As of June 30, 2012, ASB, on a consolidated basis,
reported total assets of $3.2
billion, total loans of $1.2
billion and total deposits of $2.5
billion.
Pursuant to the terms of the acquisition agreement, Prosperity
issued 8,524,835 shares of Prosperity common stock plus
$178.5 million in cash for all
outstanding shares of American State Financial Corporation capital
stock, which resulted in a premium of $240.4
million.
Acquisition of The Bank Arlington
On April 1, 2012, Prosperity
completed the previously announced acquisition of The Bank
Arlington. The Bank Arlington operated one (1) banking office
in Arlington, Texas, in the
Dallas/Fort Worth CMSA. As of March 31,
2012, The Bank Arlington reported total assets of
$37.3 million, total loans of
$22.8 million and total deposits of
$33.2 million.
Pursuant to the terms of the acquisition agreement, Prosperity
issued 135,389 shares of Prosperity common stock for all
outstanding shares of The Bank Arlington capital stock, which
resulted in a premium of $2.8
million.
Prosperity Bancshares, Inc. ®
Prosperity Bancshares Inc. ® is a $16.271 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 http://www.prosperitybankusa.com, Retail Brokerage
Services, MasterMoney Debit Cards, 24 hour voice response banking,
Trust and Wealth Management; and Mobile Banking. Prosperity now
operates two hundred nineteen (219) full-service banking locations;
fifty-eight (58) in the Houston
area; twenty (20) in the South
Texas area including Corpus
Christi and Victoria;
thirty-five (35) in the Dallas/Fort
Worth area; twenty-two (22) in the East Texas area; thirty-four (34) in the
Central Texas area including
Austin and San Antonio; thirty-four (34) in the
West Texas area including
Lubbock, Midland-Odessa and Abilene; ten (10) in the Bryan/College Station area and six (6) in the
Central Oklahoma area.
Bryan/College
Station Area -
|
Midway
|
First
Colony
|
Goliad
|
|
Plano
|
Gessner
|
Kingsville
|
Bryan
|
Preston
Forest
|
Gladebrook
|
Mathis
|
Bryan-East
|
Preston
Road
|
Heights
|
Padre
Island
|
Bryan-North
|
Red Oak
|
Highway 6
West
|
Palacios
|
Caldwell
|
Sachse
|
Hillcroft
|
Port
Lavaca
|
College
Station
|
The Colony
|
Little
York
|
Portland
|
Greens
Prairie
|
Turtle
Creek
|
Medical
Center
|
Rockport
|
Madisonville
|
Westmoreland
|
Memorial
Drive
|
Sinton
|
Navasota
|
|
Northside
|
Victoria
|
Rock
Prairie
|
Fort Worth
-
|
Pasadena
|
Victoria-North
|
Wellborn
Road
|
Haltom
City
|
Pecan
Grove
|
|
|
Keller
|
Piney
Point
|
West Texas Area
-
|
Central Texas Area
-
|
Roanoke
|
River Oaks
|
|
|
Stockyards
|
Royal Oaks
|
Abilene
-
|
Austin
-
|
|
Sugar Land
|
Antilley
Road
|
183
|
Other Dallas/Fort
Worth Locations -
|
SW Medical
Center
|
Barrow
Street
|
Allandale
|
Arlington
|
Tanglewood
|
Cypress
Street
|
Cedar Park
|
Azle
|
Uptown
|
Judge Ely
|
Congress
|
Ennis
|
Waugh
Drive
|
Mockingbird
|
Lakeway
|
Gainesville
|
West
University
|
|
Liberty
Hill
|
Glen Rose
|
Woodcreek
|
Lubbock
-
|
Northland
|
Granbury
|
|
4th
Street
|
Oak Hill
|
Mesquite
|
Other Houston Area
Locations -
|
66th
Street
|
Parmer
Lane
|
Muenster
|
Angleton
|
82nd
Street
|
Research
Blvd
|
Sanger
|
Bay City
|
86th
Street
|
Westlake
|
Waxahachie
|
Beaumont
|
98th
Street
|
|
Weatherford
|
Cinco
Ranch
|
Avenue Q
|
Other Central
Texas Locations -
|
|
Cleveland
|
North
University
|
Bastrop
|
East Texas Area
-
|
East
Bernard
|
Texas Tech Student
Union
|
Cuero
|
|
El Campo
|
|
Dime Box
|
Athens
|
Dayton
|
Midland
-
|
Dripping
Springs
|
Blooming
Grove
|
Galveston
|
Wadley
|
Elgin
|
Canton
|
Groves
|
Wall
Street
|
Flatonia
|
Carthage
|
Hempstead
|
|
Georgetown
|
Corsicana
|
Hitchcock
|
Odessa
-
|
Gonzales
|
Crockett
|
Katy
|
Grandview
|
Hallettsville
|
Eustace
|
Liberty
|
Grant
|
Kingsland
|
Gilmer
|
Magnolia
|
Kermit
Highway
|
La Grange
|
Grapeland
|
Mont
Belvieu
|
Parkway
|
Lexington
|
Gun Barrel
City
|
Nederland
|
|
New
Braunfels
|
Jacksonville
|
Needville
|
Other West Texas
Locations -
|
Pleasanton
|
Kerens
|
Shadow
Creek
|
Big Spring
|
Round Rock
|
Longview
|
Sweeny
|
Brownfield
|
San
Antonio
|
Mount
Vernon
|
Tomball
|
Brownwood
|
Schulenburg
|
Palestine
|
Waller
|
Cisco
|
Seguin
|
Rusk
|
West
Columbia
|
Comanche
|
Smithville
|
Seven
Points
|
Wharton
|
Early
|
Thorndale
|
Teague
|
Winnie
|
Floydada
|
Weimar
|
Tyler-Beckham
|
Wirt
|
Gorman
|
Yoakum
|
Tyler-South
Broadway
|
|
Levelland
|
Yorktown
|
Tyler-University
|
South Texas Area
-
|
Littlefield
|
|
Winnsboro
|
|
Merkel
|
Dallas/Fort Worth
Area -
|
|
Corpus Christi
-
|
Plainview
|
|
Houston Area
-
|
Airline
|
San Angelo
|
Dallas
-
|
|
Carmel
|
Slaton
|
Abrams
Centre
|
Houston
-
|
Northwest
|
Snyder
|
Balch
Springs
|
Aldine
|
Saratoga
|
|
Camp
Wisdom
|
Allen
Parkway
|
Water
Street
|
Oklahoma
|
Cedar Hill
|
Bellaire
|
|
23rd
Street
|
Dallas – Central
Expressway
|
Beltway
|
Other South Texas
Locations -
|
Edmond
|
Frisco
|
Clear Lake
|
Alice
|
Expressway
|
Frisco-West
|
Copperfield
|
Aransas
Pass
|
I-240
|
Independence
|
Cypress
|
Beeville
|
Memorial
|
Kiest
|
Downtown
|
Edna
|
Norman
|
McKinney
|
Eastex
|
|
|
McKinney-Stonebridge
|
Fairfield
|
|
|
|
|
|
|
In connection with the proposed merger of FVNB Corp. into
Prosperity Bancshares, Prosperity Bancshares will file 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 FVNB Corp. The registration
statement will include a proxy statement/prospectus which will be
sent to the shareholders of FVNB Corp. seeking their approval of
the proposed transaction.
WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION
STATEMENT ON FORM S-4, 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, FVNB CORP. 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,
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
fluctuations and interest rate fluctuations; and weather.
These and various other factors are discussed in Prosperity's
Annual Report on Form 10-K for the year ended December 31, 2012 and other reports and
statements Prosperity 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.
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Dec 31,
2012
|
|
Sep 30,
2012
|
|
Jun 30,
2012
|
Balance Sheet
Data
|
|
|
|
|
|
|
|
|
|
(at period
end)
|
|
|
|
|
|
|
|
Total
loans
|
$
6,172,483
|
|
$
5,263,024
|
|
$
5,179,940
|
|
$
5,079,103
|
|
$
3,950,332
|
Investment
securities(A)
|
8,017,884
|
|
7,985,811
|
|
7,442,065
|
|
6,799,513
|
|
5,400,044
|
Federal funds
sold
|
606
|
|
835
|
|
352
|
|
302
|
|
133
|
Allowance for credit
losses
|
(56,176)
|
|
(55,049)
|
|
(52,564)
|
|
(50,927)
|
|
(50,382)
|
Cash and due from
banks
|
250,542
|
|
180,577
|
|
325,952
|
|
207,650
|
|
152,678
|
Goodwill
|
1,350,834
|
|
1,235,743
|
|
1,217,162
|
|
1,200,098
|
|
932,965
|
Core deposit
intangibles
|
26,688
|
|
26,514
|
|
26,159
|
|
28,092
|
|
17,706
|
Other real
estate
|
10,244
|
|
9,913
|
|
7,234
|
|
8,846
|
|
10,236
|
Fixed assets,
net
|
227,455
|
|
206,829
|
|
205,268
|
|
201,445
|
|
166,273
|
Other
assets
|
270,158
|
|
227,117
|
|
232,005
|
|
237,997
|
|
157,366
|
Total
assets
|
$
16,270,718
|
|
$
15,081,314
|
|
$
14,583,573
|
|
$
13,712,119
|
|
$
10,737,351
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
3,283,082
|
|
$
2,995,828
|
|
$
3,016,205
|
|
$
2,827,748
|
|
$
2,083,910
|
Interest bearing
deposits
|
9,225,568
|
|
8,717,639
|
|
8,625,639
|
|
8,126,849
|
|
6,310,672
|
Total
deposits
|
12,508,650
|
|
11,713,467
|
|
11,641,844
|
|
10,954,597
|
|
8,394,582
|
Securities sold under repurchase
agreements
|
481,170
|
|
470,241
|
|
454,502
|
|
443,856
|
|
122,743
|
Federal funds purchased and other
borrowings
|
781,215
|
|
576,768
|
|
256,753
|
|
112,017
|
|
437,278
|
Junior subordinated
debentures
|
85,055
|
|
85,055
|
|
85,055
|
|
85,055
|
|
85,055
|
Other
liabilities
|
69,346
|
|
86,328
|
|
56,030
|
|
78,418
|
|
53,876
|
Total
liabilities
|
13,925,436
|
|
12,931,859
|
|
12,494,184
|
|
11,673,943
|
|
9,093,534
|
Shareholders'
equity(B)
|
2,345,282
|
|
2,149,455
|
|
2,089,389
|
|
2,038,176
|
|
1,643,817
|
Total liabilities and
equity
|
$
16,270,718
|
|
$
15,081,314
|
|
$
14,583,573
|
|
$
13,712,119
|
|
$
10,737,351
|
|
|
|
|
|
|
|
|
|
|
(A) Includes
$9,724, $12,054, $13,824, $16,991 and $17,709, in unrealized gains
on available for sale securities for the quarterly periods ending
June 30, 2013, March 31, 2013, December 31, 2012, September 30,
2012 and June 30, 2012, respectively.
|
(B) Includes
$6,321, $7,835, $8,986, $11,044 and $11,511, in after-tax
unrealized gains on available for sale securities for the quarterly
periods ending June 30, 2013, March 31, 2013, December 31, 2012,
September 30, 2012 and June 30, 2012, respectively.
|
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Dec 31,
2012
|
|
Sep 30,
2012
|
|
Jun 30,
2012
|
|
Jun 30,
2013
|
|
Jun 30,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
89,842
|
|
$
81,464
|
|
$
82,727
|
|
$
80,587
|
|
$
54,793
|
|
$
171,306
|
|
$
108,010
|
Securities(C)
|
39,384
|
|
36,548
|
|
34,956
|
|
37,025
|
|
38,072
|
|
75,932
|
|
76,393
|
Federal funds sold
and other earning assets
|
76
|
|
19
|
|
36
|
|
21
|
|
9
|
|
95
|
|
87
|
Total interest
income
|
129,302
|
|
118,031
|
|
117,719
|
|
117,633
|
|
92,874
|
|
247,333
|
|
184,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
9,170
|
|
8,690
|
|
8,217
|
|
9,395
|
|
8,083
|
|
17,860
|
|
16,874
|
Junior subordinated
debentures
|
606
|
|
605
|
|
631
|
|
651
|
|
648
|
|
1,211
|
|
1,311
|
Securities sold under
repurchase agreements
|
312
|
|
292
|
|
294
|
|
315
|
|
59
|
|
604
|
|
96
|
Other
borrowings
|
472
|
|
362
|
|
276
|
|
379
|
|
418
|
|
834
|
|
697
|
Total interest
expense
|
10,560
|
|
9,949
|
|
9,418
|
|
10,740
|
|
9,208
|
|
20,509
|
|
18,978
|
Net interest
income
|
118,742
|
|
108,082
|
|
108,301
|
|
106,893
|
|
83,666
|
|
226,824
|
|
165,512
|
Provision for credit
losses
|
2,550
|
|
2,800
|
|
3,550
|
|
1,800
|
|
600
|
|
5,350
|
|
750
|
Net interest income
after provision for credit losses
|
116,192
|
|
105,282
|
|
104,751
|
|
105,093
|
|
83,066
|
|
221,474
|
|
164,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds
(NSF) fees
|
8,346
|
|
8,509
|
|
9,292
|
|
9,265
|
|
5,167
|
|
16,855
|
|
10,556
|
Debit card and ATM
card income
|
7,007
|
|
6,487
|
|
6,683
|
|
6,246
|
|
4,292
|
|
13,494
|
|
8,128
|
Service charges on
deposit accounts
|
3,304
|
|
2,931
|
|
2,877
|
|
3,362
|
|
2,432
|
|
6,235
|
|
4,873
|
Trust
income
|
896
|
|
1,017
|
|
915
|
|
831
|
|
-
|
|
1,913
|
|
-
|
Mortgage
income
|
1,567
|
|
991
|
|
1,120
|
|
1,437
|
|
65
|
|
2,558
|
|
124
|
Bank owned life
insurance income
|
932
|
|
776
|
|
1,242
|
|
736
|
|
345
|
|
1,708
|
|
694
|
Net (loss) gain on
sale of assets
|
(180)
|
|
1
|
|
(244)
|
|
(50)
|
|
70
|
|
(179)
|
|
63
|
Net gain (loss) on
sale of other real estate
|
237
|
|
(105)
|
|
(113)
|
|
(597)
|
|
(165)
|
|
132
|
|
253
|
Other noninterest
income
|
3,165
|
|
2,834
|
|
2,334
|
|
2,598
|
|
1,450
|
|
5,999
|
|
2,910
|
Total noninterest
income
|
25,274
|
|
23,441
|
|
24,106
|
|
23,828
|
|
13,656
|
|
48,715
|
|
27,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
37,517
|
|
33,209
|
|
31,980
|
|
36,701
|
|
23,572
|
|
70,726
|
|
46,824
|
Core deposit
intangibles amortization
|
1,341
|
|
1,755
|
|
1,932
|
|
2,007
|
|
1,595
|
|
3,096
|
|
3,290
|
Net occupancy and
equipment
|
4,669
|
|
4,278
|
|
4,812
|
|
4,614
|
|
3,492
|
|
8,947
|
|
7,049
|
Depreciation
|
2,464
|
|
2,378
|
|
2,491
|
|
2,369
|
|
2,028
|
|
4,842
|
|
4,063
|
Debit card, data
processing and software amortization
|
3,249
|
|
2,570
|
|
3,106
|
|
2,901
|
|
1,906
|
|
5,819
|
|
3,438
|
Regulatory
assessments and FDIC insurance
|
2,579
|
|
2,395
|
|
2,365
|
|
2,107
|
|
1,659
|
|
4,974
|
|
3,207
|
Communications
(includes telephone, courier and postage)
|
2,410
|
|
2,196
|
|
2,381
|
|
2,226
|
|
1,802
|
|
4,606
|
|
3,550
|
Other real estate
expense
|
237
|
|
223
|
|
465
|
|
271
|
|
383
|
|
460
|
|
1,074
|
Other non-interest
expense
|
6,834
|
|
6,763
|
|
7,436
|
|
7,046
|
|
4,351
|
|
13,597
|
|
8,752
|
Total non-interest
expense
|
61,300
|
|
55,767
|
|
56,968
|
|
60,242
|
|
40,788
|
|
117,067
|
|
81,247
|
Net income before
taxes
|
80,166
|
|
72,956
|
|
71,889
|
|
68,679
|
|
55,934
|
|
153,122
|
|
111,116
|
Federal income
taxes
|
26,322
|
|
23,651
|
|
23,623
|
|
22,503
|
|
18,962
|
|
49,973
|
|
37,657
|
Net income available
to common shareholders
|
$
53,844
|
|
$
49,305
|
|
$
48,266
|
|
$
46,176
|
|
$
36,972
|
|
$
103,149
|
|
$
73,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C) Interest
income on securities was reduced by net premium amortization of
$18,838, $22,710, $23,992, $21,423 and $11,755 for the three month
periods ended June 30, 2013, March 31, 2013, December 31, 2012,
September 30, 2012 and June 30, 2012, respectively, and $41,548 and
$21,474 for the six month periods ended June 30, 2013 and 2012,
respectively.
|
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars and share
amounts in thousands, except per share data and market
prices)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Dec 31,
2012
|
|
Sep 30,
2012
|
|
Jun 30,
2012
|
|
Jun 30,
2013
|
|
Jun 30,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
53,844
|
|
$
49,305
|
|
$
48,266
|
|
$
46,176
|
|
$
36,972
|
|
$
103,149
|
|
$
73,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
0.89
|
|
$
0.87
|
|
$
0.86
|
|
$
0.83
|
|
$
0.78
|
|
$
1.76
|
|
$
1.55
|
Diluted earnings per
share
|
$
0.89
|
|
$
0.86
|
|
$
0.85
|
|
$
0.82
|
|
$
0.78
|
|
$
1.76
|
|
$
1.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(D)
|
1.33%
|
|
1.33%
|
|
1.36%
|
|
1.32%
|
|
1.35%
|
|
1.33%
|
|
1.37%
|
Return on average
common equity(D)
|
9.27%
|
|
9.23%
|
|
9.28%
|
|
9.10%
|
|
9.06%
|
|
9.25%
|
|
9.10%
|
Return on average
tangible common equity(D) (E)
|
22.32%
|
|
22.30%
|
|
22.92%
|
|
21.59%
|
|
21.70%
|
|
22.31%
|
|
22.12%
|
Tax equivalent net
interest margin(F)
|
3.43%
|
|
3.42%
|
|
3.53%
|
|
3.52%
|
|
3.55%
|
|
3.43%
|
|
3.60%
|
Efficiency
ratio(G)
|
42.51%
|
|
42.40%
|
|
42.95%
|
|
46.07%
|
|
41.94%
|
|
42.46%
|
|
42.09%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
14.41%
|
|
14.25%
|
|
14.33%
|
|
14.86%
|
|
15.31%
|
|
14.41%
|
|
15.31%
|
Tier 1 risk-based
capital
|
14.15%
|
|
14.77%
|
|
14.40%
|
|
14.43%
|
|
16.42%
|
|
14.15%
|
|
16.42%
|
Total risk-based
capital
|
14.91%
|
|
15.61%
|
|
15.22%
|
|
15.26%
|
|
17.49%
|
|
14.91%
|
|
17.49%
|
Tier 1 leverage
capital
|
7.07%
|
|
7.10%
|
|
7.10%
|
|
6.92%
|
|
7.69%
|
|
7.07%
|
|
7.69%
|
Tangible equity to
tangible assets(E)
|
6.50%
|
|
6.42%
|
|
6.34%
|
|
6.49%
|
|
7.08%
|
|
6.50%
|
|
7.08%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computed earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
60,250
|
|
56,988
|
|
56,427
|
|
55,958
|
|
47,456
|
|
58,629
|
|
47,347
|
Diluted
|
60,394
|
|
57,134
|
|
56,554
|
|
56,093
|
|
47,608
|
|
58,774
|
|
47,508
|
Period end shares
outstanding
|
60,315
|
|
57,014
|
|
56,447
|
|
56,058
|
|
47,474
|
|
60,315
|
|
47,474
|
Cash dividends paid
per common share
|
$
0.2150
|
|
$
0.2150
|
|
$
0.2150
|
|
$
0.1950
|
|
$
0.1950
|
|
$
0.4300
|
|
$
0.3900
|
Book value per
share
|
$
38.88
|
|
$
37.70
|
|
$
37.02
|
|
$
36.36
|
|
$
34.63
|
|
$
38.88
|
|
$
34.63
|
Tangible book value
per share(E)
|
$
16.05
|
|
$
15.56
|
|
$
14.99
|
|
$
14.45
|
|
$
14.60
|
|
$
16.05
|
|
$
14.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
$
52.38
|
|
$
47.56
|
|
$
43.54
|
|
$
45.40
|
|
$
47.31
|
|
$
52.38
|
|
$
47.66
|
Low
|
44.33
|
|
42.38
|
|
38.56
|
|
38.90
|
|
39.87
|
|
42.38
|
|
39.66
|
Period end market
price
|
51.79
|
|
47.39
|
|
42.00
|
|
42.62
|
|
42.03
|
|
51.79
|
|
42.03
|
Employees –
FTE
|
2,496
|
|
2,304
|
|
2,266
|
|
2,260
|
|
1,666
|
|
2,496
|
|
1,666
|
Number of banking
centers
|
219
|
|
224
|
|
217
|
|
213
|
|
176
|
|
219
|
|
176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 calculated on an actual 365 day
basis or 366 day basis.
|
(G) Calculated by
dividing total non-interest expense, excluding credit loss
provisions, by net interest income plus noninterest income,
excluding net gains and losses on the sale of assets and
securities. Additionally, taxes are not part of this
calculation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD
ANALYSIS
|
Three Months
Ended
|
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Jun 30,
2012
|
|
|
Average
Balance
|
|
Interest Earned/
Interest Paid
|
|
Average Yield/
Rate
|
|
Average
Balance
|
|
Interest Earned/
Interest Paid
|
|
Average Yield/
Rate
|
|
Average
Balance
|
|
Interest Earned/
Interest Paid
|
|
Average Yield/
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
6,114,598
|
|
$
89,842
|
|
5.89%
|
|
$
5,263,784
|
|
$
81,464
|
|
6.28%
|
|
$
3,914,352
|
|
$ 54,793
|
|
5.63%
|
|
Investment
securities
|
7,964,157
|
|
39,384
|
|
1.98%
|
(H)
|
7,755,567
|
|
36,548
|
|
1.91%
|
(H)
|
5,635,810
|
|
38,072
|
|
2.70%
|
(H)
|
Federal funds sold and other earning
assets
|
35,113
|
|
76
|
|
0.87%
|
|
34,793
|
|
19
|
|
0.22%
|
|
20,916
|
|
9
|
|
0.17%
|
|
Total interest
earning assets
|
14,113,868
|
|
$ 129,302
|
|
3.67%
|
|
13,054,144
|
|
$ 118,031
|
|
3.67%
|
|
9,571,078
|
|
$ 92,874
|
|
3.90%
|
|
Allowance for credit
losses
|
(57,754)
|
|
|
|
|
|
(53,242)
|
|
|
|
|
|
(50,746)
|
|
|
|
|
|
Noninterest-earning
assets
|
2,114,816
|
|
|
|
|
|
1,849,461
|
|
|
|
|
|
1,398,857
|
|
|
|
|
|
Total
assets
|
$
16,170,930
|
|
|
|
|
|
$
14,850,363
|
|
|
|
|
|
$
10,919,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$
2,580,750
|
|
$
2,100
|
|
0.33%
|
|
$
2,659,489
|
|
$
2,210
|
|
0.34%
|
|
$
1,706,176
|
|
$
2,089
|
|
0.49%
|
|
Savings and money
market deposits
|
4,261,466
|
|
3,172
|
|
0.30%
|
|
3,790,416
|
|
2,829
|
|
0.30%
|
|
2,779,524
|
|
2,444
|
|
0.35%
|
|
Certificates and
other time deposits
|
2,543,895
|
|
3,898
|
|
0.61%
|
|
2,370,499
|
|
3,651
|
|
0.62%
|
|
1,880,096
|
|
3,550
|
|
0.76%
|
|
Securities sold under
repurchase agreements
|
471,430
|
|
312
|
|
0.27%
|
|
448,542
|
|
292
|
|
0.26%
|
|
98,968
|
|
59
|
|
0.24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds purchased and other
borrowings
|
541,034
|
|
472
|
|
0.35%
|
|
358,120
|
|
362
|
|
0.41%
|
|
610,499
|
|
418
|
|
0.28%
|
|
Junior subordinated
debentures
|
85,055
|
|
606
|
|
2.86%
|
|
85,055
|
|
605
|
|
2.88%
|
|
85,055
|
|
648
|
|
3.06%
|
|
Total
interest-bearing liabilities
|
10,483,630
|
|
10,560
|
|
0.40%
|
(I)
|
9,712,121
|
|
9,949
|
|
0.42%
|
(I)
|
7,160,318
|
|
9,208
|
|
0.52%
|
(I)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
3,295,211
|
|
|
|
|
|
2,939,621
|
|
|
|
|
|
2,069,965
|
|
|
|
|
|
Other
liabilities
|
69,741
|
|
|
|
|
|
62,716
|
|
|
|
|
|
56,742
|
|
|
|
|
|
Total
liabilities
|
13,848,582
|
|
|
|
|
|
12,714,458
|
|
|
|
|
|
9,287,025
|
|
|
|
|
|
Shareholders'
equity
|
2,322,348
|
|
|
|
|
|
2,135,905
|
|
|
|
|
|
1,632,164
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$
16,170,930
|
|
|
|
|
|
$
14,850,363
|
|
|
|
|
|
$
10,919,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and margin
|
|
|
$ 118,742
|
|
3.37%
|
|
|
|
$ 108,082
|
|
3.36%
|
|
|
|
$ 83,666
|
|
3.52%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
2,063
|
|
|
|
|
|
2,125
|
|
|
|
|
|
832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin (tax equivalent
basis)
|
|
|
$ 120,805
|
|
3.43%
|
|
|
|
$ 110,207
|
|
3.42%
|
|
|
|
$ 84,498
|
|
3.55%
|
|
|
|
(H) Yield on
securities was impacted by net premium amortization of $18,838,
$22,710 and $11,755 for the three month periods ended June 30,
2013, March 31, 2013, and June 30, 2012,
respectively.
|
|
(I) Total cost of
funds, including non-interest bearing deposits, was 0.31%, 0.32%
and 0.40% for the three months ended June 30, 2013, March 31, 2013
and June 30, 2012, respectively.
|
|
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD
ANALYSIS
|
Year-to-Date
|
|
|
Jun 30,
2013
|
|
Jun 30,
2012
|
|
|
Average
Balance
|
|
Interest Earned/
Interest Paid
|
|
Average Yield/
Rate
|
|
Average
Balance
|
|
Interest Earned/
Interest Paid
|
|
Average Yield/
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
5,691,541
|
|
$171,306
|
|
6.07%
|
|
$
3,866,672
|
|
$108,010
|
|
5.62%
|
|
Investment
securities
|
7,860,438
|
|
75,932
|
|
1.95%
|
(J)
|
5,414,033
|
|
76,393
|
|
2.82%
|
(J)
|
Federal funds sold and other earning
assets
|
34,954
|
|
95
|
|
0.55%
|
|
73,536
|
|
87
|
|
0.24%
|
|
Total
interest-earning assets
|
13,586,933
|
|
$247,333
|
|
3.67%
|
|
9,354,241
|
|
$184,490
|
|
3.97%
|
|
Allowance for credit
losses
|
(55,513)
|
|
|
|
|
|
(51,174)
|
|
|
|
|
|
Noninterest-earning
assets
|
1,982,871
|
|
|
|
|
|
1,403,182
|
|
|
|
|
|
Total
assets
|
$
15,514,291
|
|
|
|
|
|
$
10,706,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$
2,619,902
|
|
$
4,309
|
|
0.33%
|
|
$
1,700,208
|
|
$
4,152
|
|
0.49%
|
|
Savings and money
market deposits
|
4,027,242
|
|
6,001
|
|
0.30%
|
|
2,785,936
|
|
5,033
|
|
0.36%
|
|
Certificates and
other time deposits
|
2,457,676
|
|
7,550
|
|
0.62%
|
|
1,925,584
|
|
7,689
|
|
0.80%
|
|
Securities sold under repurchase
agreements
|
460,049
|
|
604
|
|
0.26%
|
|
76,136
|
|
96
|
|
0.25%
|
|
Federal funds purchased and other
borrowings
|
450,082
|
|
834
|
|
0.37%
|
|
441,630
|
|
697
|
|
0.32%
|
|
Junior subordinated
debentures
|
85,055
|
|
1,211
|
|
2.87%
|
|
85,055
|
|
1,311
|
|
3.10%
|
|
Total interest
bearing liabilities
|
10,100,006
|
|
20,509
|
|
0.41%
|
(K)
|
7,014,549
|
|
18,978
|
|
0.54%
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
3,118,400
|
|
|
|
|
|
2,020,453
|
|
|
|
|
|
Other
liabilities
|
66,251
|
|
|
|
|
|
57,523
|
|
|
|
|
|
Total
liabilities
|
13,284,657
|
|
|
|
|
|
9,092,525
|
|
|
|
|
|
Shareholders'
equity
|
2,229,634
|
|
|
|
|
|
1,613,724
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$
15,514,291
|
|
|
|
|
|
$
10,706,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and margin
|
|
|
$226,824
|
|
3.37%
|
|
|
|
$165,512
|
|
3.56%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
4,188
|
|
|
|
|
|
1,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin (tax
equivalent basis)
|
|
|
$231,012
|
|
3.43%
|
|
|
|
$167,240
|
|
3.60%
|
|
|
|
(J) Yield on
securities was impacted by net premium amortization of $41,548 and
$21,474 for the six month periods ended June 30, 2013 and June 30,
2012, respectively.
|
|
(K) Total cost of
funds, including non-interest bearing deposits, was 0.31% and 0.42%
for the six months ended June 30, 2013, and June 30, 2012,
respectively.
|
|
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Dec 31,
2012
|
|
Sep 30,
2012
|
|
Jun 30,
2012
|
|
Jun 30,
2013
|
|
Jun 30,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment to Loan
Yield (L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on loans, as
reported
|
$
89,842
|
|
$
81,464
|
|
$
82,727
|
|
$
80,587
|
|
$
54,793
|
|
$
171,306
|
|
$
108,010
|
Less:
Purchase accounting adjustment-loan discount accretion
|
(12,031)
|
|
(14,292)
|
|
(14,523)
|
|
(11,188)
|
|
(756)
|
|
(26,323)
|
|
(701)
|
Interest on loans
without discount accretion
|
$
77,811
|
|
$
67,172
|
|
$
68,204
|
|
$
69,399
|
|
$
54,037
|
|
$
144,983
|
|
$
107,309
|
Average
loans
|
$
6,114,598
|
|
$
5,263,784
|
|
$
5,140,163
|
|
$
5,169,101
|
|
$
3,914,352
|
|
$
5,691,541
|
|
$
3,866,672
|
Loan yield without
discount accretion
|
5.10%
|
|
5.18%
|
|
5.28%
|
|
5.34%
|
|
5.55%
|
|
5.14%
|
|
5.58%
|
Loan yield, as
reported
|
5.89%
|
|
6.28%
|
|
6.40%
|
|
6.20%
|
|
5.63%
|
|
6.07%
|
|
5.62%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Dec 31,
2012
|
|
Sep 30,
2012
|
|
Jun 30,
2012
|
|
Jun 30,
2013
|
|
Jun 30,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment to
Securities Yield (L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
securities, as reported
|
$
39,384
|
|
$
36,548
|
|
$
34,956
|
|
$
37,025
|
|
$
38,072
|
|
$
75,932
|
|
$
76,393
|
Add:
Purchase accounting adjustment-securities amortization
|
2,599
|
|
3,106
|
|
3,540
|
|
3,451
|
|
-
|
|
5,705
|
|
-
|
Interest on
securities including amortization
|
$
41,983
|
|
$
39,654
|
|
$
38,496
|
|
$
40,476
|
|
$
38,072
|
|
$
81,637
|
|
$
76,393
|
Average
securities
|
$
7,964,157
|
|
$
7,755,567
|
|
$
7,228,418
|
|
$
7,106,871
|
|
$
5,635,810
|
|
$
7,860,438
|
|
$
5,414,033
|
Securities yield
without purchase accounting adjustment
|
2.11%
|
|
2.07%
|
|
2.12%
|
|
2.28%
|
|
2.72%
|
|
2.09%
|
|
2.82%
|
Securities yield, as
reported
|
1.98%
|
|
1.91%
|
|
1.92%
|
|
2.08%
|
|
2.70%
|
|
1.95%
|
|
2.82%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin (tax equivalent basis, excluding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
purchase accounting adjustments to yield)
|
3.09%
|
|
3.08%
|
|
3.18%
|
|
3.16%
|
|
3.52%
|
|
3.12%
|
|
3.60%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin (tax equivalent basis), as reported
|
3.43%
|
|
3.42%
|
|
3.53%
|
|
3.52%
|
|
3.55%
|
|
3.43%
|
|
3.60%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
available to common shareholders, as reported
|
$
53,844
|
|
$
49,305
|
|
$
48,266
|
|
$
46,176
|
|
$
36,972
|
|
$
103,149
|
|
$
73,459
|
Less: Purchase accounting adjustments, net of tax
(M)
|
(6,319)
|
|
(7,606)
|
|
(7,469)
|
|
(5,261)
|
|
(514)
|
|
(13,925)
|
|
(477)
|
Net income
available to common shareholders, adjusted
|
$
47,525
|
|
$
41,699
|
|
$
40,797
|
|
$
40,915
|
|
$
36,458
|
|
$
89,224
|
|
$
72,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Remaining Balance
at June 30, 2013
|
|
Balance at
Acquisition Date
|
|
Remaining Balance
at June 30, 2013
|
|
Balance at
Acquisition Date
|
|
Remaining Balance
at June 30, 2013
|
|
|
Loan
marks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previously acquired
banks (N)
|
$
81,328
|
|
$
37,832
|
|
$
28,764
|
|
$
22,989
|
|
$
110,092
|
|
$
60,821
|
|
|
2013 acquisitions
(O)
|
29,440
|
|
24,695
|
|
23,414
|
|
22,571
|
|
52,854
|
|
47,266
|
|
|
Total
|
$
110,768
|
|
$
62,527
|
|
$
52,178
|
|
$
45,560
|
|
$
162,946
|
|
$
108,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previously acquired
banks (N)
|
$
1,298,380
|
|
$
653,945
|
|
$
57,979
|
|
$
43,505
|
|
$
1,356,359
|
|
$
697,450
|
|
|
2013 acquisitions
(O)
|
939,804
|
|
775,372
|
|
54,083
|
|
53,754
|
|
993,887
|
|
829,126
|
|
|
Total
|
$
2,238,184
|
|
$
1,429,317
|
|
$
112,062
|
|
$
97,259
|
|
$
2,350,246
|
(P)
|
$
1,526,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(L) Non-GAAP
financial measure.
|
|
|
|
|
(M) Using
effective tax rate.
|
|
|
|
|
(N) Includes
Bank of Texas, Bank Arlington, ASB and Community National which
were acquired in 2012.
|
|
|
|
|
(O) Includes
East Texas Financial Services and Coppermark Bank.
|
|
|
|
|
(P) Actual
principal balances acquired.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Dec 31,
2012
|
|
Sep 30,
2012
|
|
Jun 30,
2012
|
YIELD
TREND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
Loans
|
5.89%
|
|
6.28%
|
|
6.40%
|
|
6.20%
|
|
5.63%
|
Investment securities
(Q)
|
1.98%
|
|
1.91%
|
|
1.92%
|
|
2.08%
|
|
2.70%
|
Federal funds sold
and other earning assets
|
0.87%
|
|
0.22%
|
|
0.19%
|
|
0.16%
|
|
0.17%
|
Total
interest-earning assets
|
3.67%
|
|
3.67%
|
|
3.76%
|
|
3.80%
|
|
3.90%
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
0.33%
|
|
0.34%
|
|
0.31%
|
|
0.41%
|
|
0.49%
|
Savings and money
market deposits
|
0.30%
|
|
0.30%
|
|
0.29%
|
|
0.34%
|
|
0.35%
|
Certificates and
other time deposits
|
0.61%
|
|
0.62%
|
|
0.64%
|
|
0.69%
|
|
0.76%
|
Securities sold under
repurchase agreements
|
0.27%
|
|
0.26%
|
|
0.25%
|
|
0.29%
|
|
0.24%
|
Federal funds
purchased and other borrowings
|
0.35%
|
|
0.41%
|
|
0.40%
|
|
0.29%
|
|
0.28%
|
Junior subordinated
debentures
|
2.86%
|
|
2.88%
|
|
2.95%
|
|
3.04%
|
|
3.06%
|
Total
interest-bearing liabilities
|
0.40%
|
|
0.42%
|
|
0.41%
|
|
0.47%
|
|
0.52%
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
3.37%
|
|
3.36%
|
|
3.46%
|
|
3.45%
|
|
3.52%
|
Net Interest Margin
(tax equivalent)
|
3.43%
|
|
3.42%
|
|
3.53%
|
|
3.52%
|
|
3.55%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Q) Yield on
securities was impacted by net premium amortization of $18,838,
$22,710, $23,992, $21,423 and $11,755 for the three month periods ended June 30, 2013,
March 31, 2013, December 31, 2012, September 30, 2012
and June 30, 2012,
respectively.
|
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Dec 31,
2012
|
|
Sep 30,
2012
|
|
Jun 30,
2012
|
Balance Sheet
Averages
|
|
|
|
|
|
|
|
|
|
Total
loans
|
$
6,114,598
|
|
$
5,263,784
|
|
$
5,140,163
|
|
$
5,169,101
|
|
$
3,914,352
|
Investment
securities
|
7,964,157
|
|
7,755,567
|
|
7,228,418
|
|
7,106,871
|
|
5,635,810
|
Federal funds sold and other earning
assets
|
35,113
|
|
34,793
|
|
75,135
|
|
53,111
|
|
20,916
|
Total
interest-earning assets
|
14,113,868
|
|
13,054,144
|
|
12,443,716
|
|
12,329,083
|
|
9,571,078
|
Allowance for credit
losses
|
(57,754)
|
|
(53,242)
|
|
(50,775)
|
|
(53,944)
|
|
(50,746)
|
Cash and due from
banks
|
279,271
|
|
206,990
|
|
198,797
|
|
206,124
|
|
134,055
|
Goodwill
|
1,331,568
|
|
1,226,332
|
|
1,211,596
|
|
1,157,330
|
|
932,112
|
Core Deposit
Intangibles (CDI)
|
25,893
|
|
25,244
|
|
27,108
|
|
17,280
|
|
18,465
|
Other real
estate
|
19,605
|
|
11,789
|
|
9,571
|
|
11,600
|
|
10,178
|
Fixed assets,
net
|
223,769
|
|
207,517
|
|
206,869
|
|
192,542
|
|
165,784
|
Other
assets
|
234,710
|
|
171,589
|
|
190,815
|
|
145,244
|
|
138,263
|
Total
assets
|
$
16,170,930
|
|
$
14,850,363
|
|
$
14,237,697
|
|
$
14,005,259
|
|
$
10,919,189
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$
3,295,211
|
|
$
2,939,621
|
|
$
2,963,998
|
|
$
2,760,405
|
|
$
2,069,965
|
Interest-bearing
demand deposits
|
2,580,750
|
|
2,659,489
|
|
2,328,969
|
|
2,181,928
|
|
1,706,176
|
Savings and money
market deposits
|
4,261,466
|
|
3,790,416
|
|
3,600,109
|
|
3,516,601
|
|
2,779,524
|
Certificates and
other time deposits
|
2,543,895
|
|
2,370,499
|
|
2,366,155
|
|
2,387,279
|
|
1,880,096
|
Total
deposits
|
12,681,322
|
|
11,760,025
|
|
11,259,231
|
|
10,846,213
|
|
8,435,761
|
Securities sold under repurchase
agreements
|
471,430
|
|
448,542
|
|
459,998
|
|
438,410
|
|
98,968
|
Federal funds
purchased and other borrowings
|
541,034
|
|
358,120
|
|
272,239
|
|
512,739
|
|
610,499
|
Junior subordinated
debentures
|
85,055
|
|
85,055
|
|
85,055
|
|
85,055
|
|
85,055
|
Other
liabilities
|
69,741
|
|
62,716
|
|
80,085
|
|
92,873
|
|
56,742
|
Shareholders'
equity
|
2,322,348
|
|
2,135,905
|
|
2,081,089
|
|
2,029,969
|
|
1,632,164
|
Total liabilities and
equity
|
$
16,170,930
|
|
$
14,850,363
|
|
$
14,237,697
|
|
$
14,005,259
|
|
$
10,919,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Dec 31,
2012
|
|
Sep 30,
2012
|
|
Jun 30,
2012
|
Period End
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
other
|
$
999,677
|
16.2%
|
|
$
760,531
|
14.5%
|
|
$
798,882
|
15.4%
|
|
$
792,247
|
15.6%
|
|
$
491,907
|
12.5%
|
Construction
|
694,585
|
11.3%
|
|
575,307
|
10.9%
|
|
550,768
|
10.6%
|
|
496,417
|
9.8%
|
|
466,884
|
11.8%
|
1-4 family
residential
|
1,452,268
|
23.6%
|
|
1,338,936
|
25.5%
|
|
1,255,765
|
24.3%
|
|
1,213,872
|
23.9%
|
|
1,084,936
|
27.4%
|
Home
equity
|
208,739
|
3.4%
|
|
203,815
|
3.9%
|
|
186,801
|
3.6%
|
|
183,844
|
3.6%
|
|
154,147
|
3.9%
|
Commercial real
estate
|
2,390,820
|
38.6%
|
|
1,993,518
|
37.8%
|
|
1,990,642
|
38.4%
|
|
1,976,112
|
38.9%
|
|
1,484,787
|
37.6%
|
Agriculture (includes
farmland)
|
314,945
|
5.1%
|
|
286,789
|
5.4%
|
|
285,637
|
5.5%
|
|
304,134
|
6.0%
|
|
192,462
|
4.9%
|
Consumer
|
111,449
|
1.8%
|
|
104,128
|
2.0%
|
|
111,445
|
2.2%
|
|
112,477
|
2.2%
|
|
75,209
|
1.9%
|
Total
loans
|
$
6,172,483
|
|
|
$
5,263,024
|
|
|
$
5,179,940
|
|
|
$
5,079,103
|
|
|
$
3,950,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
DDA
|
$
3,283,082
|
26.2%
|
|
$
2,995,828
|
25.6%
|
|
$
3,016,205
|
25.9%
|
|
$
2,827,748
|
25.8%
|
|
$
2,083,910
|
24.8%
|
Interest-bearing
DDA
|
2,483,428
|
19.9%
|
|
2,521,998
|
21.5%
|
|
2,626,331
|
22.6%
|
|
2,208,568
|
20.2%
|
|
1,684,492
|
20.1%
|
Money
Market
|
2,868,880
|
22.9%
|
|
2,509,501
|
21.4%
|
|
2,362,454
|
20.3%
|
|
2,303,680
|
21.0%
|
|
2,206,220
|
26.3%
|
Savings
|
1,371,214
|
11.0%
|
|
1,345,044
|
11.5%
|
|
1,293,552
|
11.1%
|
|
1,276,271
|
11.7%
|
|
581,480
|
6.9%
|
Certificates and
other time deposits
|
2,502,046
|
20.0%
|
|
2,341,096
|
20.0%
|
|
2,343,302
|
20.1%
|
|
2,338,330
|
21.3%
|
|
1,838,480
|
21.9%
|
Total
deposits
|
$
12,508,650
|
|
|
$
11,713,467
|
|
|
$
11,641,844
|
|
|
$
10,954,597
|
|
|
$
8,394,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
49.3%
|
|
|
44.9%
|
|
|
44.5%
|
|
|
46.4%
|
|
|
47.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family
residential construction
|
$
234,257
|
32.9%
|
|
$
177,218
|
30.6%
|
|
$
161,401
|
29.2%
|
|
$
150,959
|
30.1%
|
|
$
143,600
|
30.8%
|
Land
development
|
63,857
|
9.0%
|
|
42,520
|
7.4%
|
|
42,199
|
7.6%
|
|
38,075
|
7.6%
|
|
39,704
|
8.5%
|
Raw land
|
59,701
|
8.4%
|
|
46,672
|
8.1%
|
|
58,794
|
10.6%
|
|
47,620
|
9.5%
|
|
51,070
|
10.9%
|
Residential
lots
|
91,018
|
12.8%
|
|
93,598
|
16.2%
|
|
92,697
|
16.8%
|
|
97,445
|
19.4%
|
|
86,201
|
18.5%
|
Commercial
lots
|
60,960
|
8.6%
|
|
64,394
|
11.2%
|
|
63,716
|
11.5%
|
|
63,418
|
12.7%
|
|
49,454
|
10.6%
|
Commercial
construction and other
|
200,633
|
28.3%
|
|
153,047
|
26.5%
|
|
134,427
|
24.3%
|
|
103,677
|
20.7%
|
|
96,855
|
20.7%
|
Net unaccreted
discount
|
(15,841)
|
|
|
(2,142)
|
|
|
(2,466)
|
|
|
(4,777)
|
|
|
-
|
|
Total construction
loans
|
$
694,585
|
|
|
$
575,307
|
|
|
$
550,768
|
|
|
$
496,417
|
|
|
$
466,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Dec 31,
2012
|
|
Sep 30,
2012
|
|
Jun 30,
2012
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
4,295
|
|
$
7,529
|
|
$
5,382
|
|
$
5,063
|
|
$
1,624
|
Accruing loans 90 or more days past
due
|
325
|
|
642
|
|
331
|
|
132
|
|
-
|
Total non-performing
loans
|
4,620
|
|
8,171
|
|
5,713
|
|
5,195
|
|
1,624
|
Repossessed
assets
|
-
|
|
49
|
|
68
|
|
10
|
|
13
|
Other real
estate
|
10,244
|
|
9,913
|
|
7,234
|
|
8,846
|
|
10,236
|
Total
nonperforming assets
|
$
14,864
|
|
$
18,133
|
|
$
13,015
|
|
$
14,051
|
|
$
11,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
1,191
|
|
$
3,896
|
|
$
1,568
|
|
$
1,599
|
|
$
394
|
Construction
|
5,898
|
|
3,678
|
|
3,522
|
|
3,182
|
|
4,056
|
1-4 family (including
home equity)
|
2,112
|
|
3,746
|
|
3,081
|
|
3,089
|
|
2,284
|
Commercial real
estate (including multi-family)
|
4,330
|
|
5,533
|
|
2,608
|
|
4,671
|
|
5,077
|
Agriculture
|
1,213
|
|
1,183
|
|
1,463
|
|
1,476
|
|
44
|
Consumer and
other
|
120
|
|
97
|
|
773
|
|
34
|
|
18
|
Total
|
$
14,864
|
|
$
18,133
|
|
$
13,015
|
|
$
14,051
|
|
$
11,873
|
|
|
|
|
|
|
|
|
|
|
Number of
loans/properties
|
123
|
|
124
|
|
116
|
|
119
|
|
88
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses at end of period
|
$ 56,176
|
|
$ 55,049
|
|
$ 52,564
|
|
$ 50,927
|
|
$ 50,382
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs:
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
148
|
|
$
59
|
|
$
205
|
|
$
(511)
|
|
$
180
|
Construction
|
124
|
|
(56)
|
|
21
|
|
155
|
|
1,179
|
1-4 family (including
home equity)
|
35
|
|
102
|
|
65
|
|
251
|
|
90
|
Commercial real
estate (including multi-family)
|
801
|
|
(57)
|
|
1,012
|
|
800
|
|
296
|
|
|
|
|
|
|
|
|
|
|
Agriculture
|
13
|
|
(7)
|
|
70
|
|
(30)
|
|
(3)
|
Consumer and
other
|
302
|
|
274
|
|
540
|
|
590
|
|
118
|
Total
|
$
1,423
|
|
$
315
|
|
$
1,913
|
|
$
1,255
|
|
$
1,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to average earning
assets
|
0.11%
|
|
0.14%
|
|
0.10%
|
|
0.11%
|
|
0.12%
|
Nonperforming assets to loans and other real
estate
|
0.24%
|
|
0.34%
|
|
0.25%
|
|
0.28%
|
|
0.30%
|
Net charge-offs to average loans
(annualized)
|
0.09%
|
|
0.02%
|
|
0.15%
|
|
0.08%
|
|
0.20%
|
Allowance for credit losses to total
loans
|
0.91%
|
|
1.05%
|
|
1.01%
|
|
1.00%
|
|
1.28%
|
Allowance for credit
losses to total loans (excluding acquired
loans accounted for under ASC Topics
310-20 and 310-30) (E)
|
1.18%
|
|
1.25%
|
|
1.22%
|
|
1.27%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
allowance for credit losses to total loans (excluding acquired
loans accounted for under ASC Topics 310-20 and 310-30). 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
|
|
Year-to-Date
|
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Dec 31,
2012
|
|
Sep 30,
2012
|
|
Jun 30,
2012
|
|
Jun 30,
2013
|
|
Jun 30,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
53,844
|
|
$
49,305
|
|
$
48,266
|
|
$
46,176
|
|
$
36,972
|
|
$
103,149
|
|
$
73,459
|
Average shareholders'
equity
|
|
$
2,322,348
|
|
$
2,135,905
|
|
$
2,081,089
|
|
$
2,029,969
|
|
$
1,632,164
|
|
$
2,229,634
|
|
$
1,613,724
|
Less: Average
goodwill and other intangible assets
|
|
(1,357,461)
|
|
(1,251,576)
|
|
(1,238,704)
|
|
(1,174,610)
|
|
(950,577)
|
|
(1,304,811)
|
|
(949,548)
|
Average
tangible shareholders' equity
|
|
$
964,887
|
|
$
884,329
|
|
$
842,385
|
|
$
855,359
|
|
$
681,587
|
|
$
924,823
|
|
$
664,176
|
Return on average
tangible common equity:
|
|
22.32%
|
|
22.30%
|
|
22.92%
|
|
21.59%
|
|
21.70%
|
|
22.31%
|
|
22.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
$
2,345,282
|
|
$
2,149,455
|
|
$
2,089,389
|
|
$
2,038,176
|
|
$
1,643,817
|
|
$
2,345,282
|
|
$
1,643,817
|
Less: Goodwill and
other intangible assets
|
|
(1,377,522)
|
|
(1,262,257)
|
|
(1,243,321)
|
|
(1,228,190)
|
|
(950,671)
|
|
(1,377,522)
|
|
(950,671)
|
Tangible shareholders' equity
|
|
$
967,760
|
|
$
887,198
|
|
$
846,068
|
|
$
809,986
|
|
$
693,146
|
|
$
967,760
|
|
$
693,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
|
60,315
|
|
57,014
|
|
56,447
|
|
56,058
|
|
47,474
|
|
60,315
|
|
47,474
|
Tangible book value
per share:
|
|
$
16.05
|
|
$
15.56
|
|
$
14.99
|
|
$
14.45
|
|
$
14.60
|
|
$
16.05
|
|
$
14.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
shareholders' equity
|
|
$
967,760
|
|
$
887,199
|
|
$
846,068
|
|
$
809,986
|
|
$
693,146
|
|
$
967,760
|
|
$
693,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
16,270,718
|
|
$
15,081,314
|
|
$
14,583,573
|
|
$
13,712,119
|
|
$
10,737,351
|
|
$
16,270,718
|
|
$
10,737,351
|
Less: Goodwill and
other intangible assets
|
|
(1,377,522)
|
|
(1,262,257)
|
|
(1,243,321)
|
|
(1,228,190)
|
|
(950,671)
|
|
(1,377,522)
|
|
(950,671)
|
Tangible assets
|
|
$
14,893,196
|
|
$
13,819,057
|
|
$
13,340,252
|
|
$
12,483,929
|
|
$
9,786,680
|
|
$
14,893,196
|
|
$
9,786,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets ratio:
|
|
6.50%
|
|
6.42%
|
|
6.34%
|
|
6.49%
|
|
7.08%
|
|
6.50%
|
|
7.08%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Notes to Selected
Financial Data (Unaudited)
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Jun 30,
2013
|
|
Mar 31,
2013
|
|
Dec 31,
2012
|
Allowance for
credit losses to total loans, excluding acquired
loans:
|
|
Allowance for credit
losses
|
|
$
56,176
|
|
$
55,049
|
|
$
52,564
|
Total
loans
|
|
$
6,172,483
|
|
$
5,263,024
|
|
$
5,179,940
|
Less: Fair value of
acquired loans accounted for under ASC
|
|
|
|
|
|
|
Topics 310-20
and 310-30 (does not include new production)
|
|
$
1,418,489
|
|
$
853,751
|
|
$
887,953
|
Total loans less
acquired loans
|
|
$
4,753,994
|
|
$
4,409,273
|
|
$
4,291,987
|
Allowance for credit
losses to total loans, excluding acquired loans (non-GAAP
basis)
|
|
1.18%
|
|
1.25%
|
|
1.22%
|
|
|
|
|
|
|
|
SOURCE Prosperity Bancshares, Inc.