HOUSTON, July 25, 2014 /PRNewswire/ -- Prosperity
Bancshares, Inc.® (NYSE: PB), the parent company of
Prosperity Bank® (collectively, "Prosperity"), reported
net income for the quarter ended June 30,
2014, of $75.506 million or
$1.08 per diluted common share, an
increase in net income of $21.662
million or 40.2%, compared with $53.844 million, and an increase in diluted
earnings per share of 21.3%, compared with $0.89 per diluted common share for the same
period in 2013.
"I am proud of the strong results our team has generated in the
second quarter of 2014. We achieved diluted earnings per
share of $1.08 for the quarter, an
increase of 21.3% compared with the second quarter of 2013, and
continued to see good organic loan growth with our legacy bank.
Excluding loans acquired in acquisitions, loans at June 30, 2014 grew 8.4% compared with
June 30, 2013 and 3.0% (11.8%
annualized) on a linked quarter basis," said David Zalman, Prosperity's Chairman and Chief
Executive Officer.
"We are finished with the operational integration of F&M
Bank in Tulsa and look forward to
building and growing strong relationships with customers and
associates in the Tulsa and
Dallas markets served by
F&M. The F&M Bank associates have been great to work
with and we look forward to them assuming leadership roles in our
company and helping take us forward," continued
Zalman.
"I continue to see growth and prosperity for our company.
Texas and Oklahoma continue to have some of the best
economies in the United States and
show positive economic and growth trends," 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. As a result of
acquisitions, and thus purchase accounting adjustments, 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 FASB Accounting
Standards Codification ("ASC") Topics 310-20,
"Receivables-Nonrefundable Fees and Other Costs" and 310-30,
"Receivables-Loans and Debt Securities Acquired with
Deteriorated Credit Quality"). Prosperity has included in
this Earnings Release information related 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, 2014
For the three months ended June 30,
2014, net income was $75.506
million compared with $53.844
million for the same period in 2013. Net income per
diluted common share was $1.08 for
the three months ended June 30, 2014,
compared with $0.89 for the same
period in 2013. Net income for the quarter includes one-time
merger expenses of $2.026
million. Annualized returns on average assets, average
common equity and average tangible common equity for the three
months ended June 30, 2014 were
1.42%, 9.75% and 24.06%, respectively. Prosperity's
efficiency ratio (excluding credit loss provisions, net gains and
losses on the sale of assets and securities and taxes) was 42.90%
for the three months ended June 30,
2014.
Net interest income before provision for credit losses for the
quarter ended June 30, 2014 increased
46.6% to $174.055 million, compared
with $118.742 million during the same
period in 2013. The increase was primarily due to a 30.7%
increase in average interest-earning assets for the same
period. The net interest margin on a tax equivalent basis for
the three months ended June 30, 2014
increased to 3.83%, compared with 3.43% for the same period in 2013
and increased from 3.62% for the three months ended March 31, 2014. Linked quarter net interest
income before provision for credit losses increased 21.1% or
$30.364 million to $174.055 million, compared with $143.691 million during the three months ended
March 31, 2014, primarily due to the
acquisition of F&M Bancorporation Inc. and its wholly-owned
subsidiary, The F&M Bank and Trust Company (collectively,
"F&M") and an $11.877 million
increase in purchase accounting adjustments from purchased loans.
Excluding purchase accounting adjustments, the net interest
margin on a tax equivalent basis decreased on a linked quarter
basis from 3.33% for the quarter ended March
31, 2014 to 3.31% for the quarter ended June 30, 2014.
Noninterest income increased $8.727
million or 34.5% to $34.001
million for the three months ended June 30, 2014, compared with $25.274 million for the same period in
2013. This increase was primarily due to an increase in fees
and service charges as a result of the additional accounts acquired
from F&M and FVNB Corp. and its wholly-owned subsidiary, First
Victoria National Bank (collectively, "FVNB"). Trust and
brokerage income increased as a result of the additional products
and services acquired through the acquisition of FVNB in
2013. These increases were partially offset by a decrease in
debit card income as a result of the Durbin Amendment that became
effective on July 1, 2013. As a
result of this legislation, the Federal Reserve imposed limits on
the amount of interchange, or swipe, fees that can be collected for
financial institutions that have assets of $10 billion or more. On a linked quarter
basis, noninterest income increased $5.397
million or 18.9% primarily due to gains on the sale of
assets, including the sale of certain bank buildings, gains on
other real estate owned, life insurance proceeds received and
increased fees and service charges resulting from the additional
accounts acquired in the F&M acquisition consummated during the
second quarter of 2014.
Noninterest expense increased $27.396
million or 44.7% to $88.696
million for the three months ended June 30, 2014, compared with $61.300 million for the same period in
2013. This increase was primarily due to additional
noninterest expenses associated with the acquisitions of FVNB and
F&M. On a linked quarter basis, noninterest expense
increased 24.9% or $17.662 million
primarily due to the additional salaries and benefits and other
noninterest expenses associated with the F&M acquisition.
Additionally, one-time pre-tax merger expenses of $2.026 million primarily related to the F&M
acquisition were recorded during the second quarter of
2014.
Loans at June 30, 2014 were
$9.308 billion, an increase of
$3.136 billion or 50.8%, compared
with $6.172 billion at June 30, 2013, primarily due to the acquisitions
of FVNB and F&M. Linked quarter loans increased
$1.556 billion or 20.1% from
$7.752 billion at March 31, 2014 due mainly to the acquisition of
F&M.
Deposits at June 30, 2014 were
$17.281 billion, an increase of
$4.772 billion or 38.2%, compared
with $12.509 billion at June 30, 2013, primarily due to the acquisitions
of FVNB and F&M. Linked quarter deposits increased
$1.821 billion or 11.8% from
$15.460 billion at March 31, 2014 due mainly to the acquisition of
F&M.
Average loans increased 54.8% or $3.354
billion to $9.468 billion for
the quarter ended June 30, 2014,
compared with $6.115 billion for the
same period in 2013. On a linked quarter basis, average loans
increased 22.1% or $1.712 billion
from $7.756 billion for the quarter
ended March 31, 2014. Average
deposits increased 35.3% or $4.483
billion to $17.164 billion for
the quarter ended June 30, 2014,
compared with $12.681 billion for the
same period of 2013. On a linked quarter basis, average
deposits increased 11.6% or $1.782
billion from $15.382 billion
for the quarter ended March 31,
2014.
Results of operations for the six months ended June 30, 2014
For the six months ended June 30,
2014, net income was $142.643
million, compared with $103.149
million for the same period in 2013. Net income per
diluted common share was $2.10 for
the six months ended June 30, 2014,
compared with $1.76 for the same
period in 2013. Returns on average assets, average common
equity and average tangible common equity, each on an annualized
basis, for the six months ended June 30,
2014 were 1.43%, 9.72% and 24.12%, 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 six months ended June 30, 2014.
Net interest income before provision for credit losses for the
six months ended June 30, 2014,
increased 40.1% to $317.746 million,
compared with $226.824 million during
the same period in 2013. The increase was primarily due to a
28.0% increase in average interest-earning assets over the same
period. The net interest margin on a tax equivalent basis for
the six months ended June 30, 2014
increased to 3.73%, compared with 3.43% for the same period in
2013. Excluding purchase accounting adjustments, the net
interest margin on a tax equivalent basis increased to 3.32% for
the six months ended June 30, 2014
from 3.12% for the same period in 2013.
Noninterest income increased $13.890
million or 28.5% to $62.605
million for the six months ended June
30, 2014, compared with $48.715
million for the same period in 2013. This increase was
primarily due to the effects of the additional accounts acquired in
the acquisitions of Coppermark Bancshares Inc. and its wholly-owned
subsidiary, Coppermark Bank (collectively, "Coppermark"), FVNB and
F&M completed in 2013 and 2014. Additionally, trust and
brokerage income increased as a result of the additional products
and services acquired through the FVNB acquisition. In
addition, gain on the sale of assets increased $4.8 million during the six months ended
June 30, 2014 compared to the same
period in 2013, primarily due to a $2.224
million gain that was recorded during the first quarter of
2014 on the sale of the agent bank credit card and agent bank
merchant processing business of Bankers Credit Card Services, Inc.,
a subsidiary acquired as part of the acquisition of Coppermark.
Noninterest expense increased $42.663
million or 36.4% to $159.730
million for the six months ended June
30, 2014, compared with $117.067
million for the same period in 2013. This increase was
primarily due to additional noninterest expenses associated with
the acquisitions of Coppermark, FVNB and F&M.
Additionally, total noninterest expense for the six months
ended June 30, 2014 included one-time
pre-tax merger expenses of $2.757
million related primarily to the F&M and FVNB
acquisitions.
Average loans increased 51.4% or $2.925
billion to $8.617 billion for
the six months ended June 30, 2014,
compared with $5.692 billion for the
same period in 2013. Average deposits increased 33.2% or
$4.054 billion to $16.277 billion for the six months ended
June 30, 2014, compared with
$12.223 billion for the same period
of 2013.
The table below provides detail on loans acquired and deposits
assumed in the acquisitions of East Texas Financial Services Inc.
and First Federal Bank Texas (collectively "East Texas Financial
Services"), Coppermark, FVNB and F&M completed on January 1, 2013, April 1,
2013, November 1, 2013 and
April 1, 2014, respectively:
Balance Sheet Data
(at period end)
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Jun 30,
2013
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Loans acquired
(including new production since respective acquisition
dates):
|
|
|
|
|
|
|
|
|
|
East
Texas Financial Services
|
$
85,910
|
|
$
92,474
|
|
$
99,281
|
|
$ 104,403
|
|
$ 111,626
|
Coppermark
|
560,692
|
|
580,416
|
|
616,333
|
|
688,656
|
|
772,965
|
FVNB
|
1,424,395
|
|
1,509,927
|
|
1,588,238
|
|
-
|
|
-
|
F&M
|
1,502,836
|
|
-
|
|
-
|
|
-
|
|
-
|
All other
|
5,734,329
|
|
5,569,583
|
|
5,471,369
|
|
5,389,530
|
|
5,287,892
|
Total
loans
|
$ 9,308,162
|
|
$ 7,752,400
|
|
$ 7,775,221
|
|
$ 6,182,589
|
|
$ 6,172,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits assumed
(including new deposits since respective acquisition
dates):
|
|
|
|
|
|
|
|
|
|
East
Texas Financial Services
|
$
71,696
|
|
$
76,734
|
|
$
81,200
|
|
$
90,649
|
|
$
88,289
|
Coppermark
|
987,074
|
|
1,014,436
|
|
1,031,993
|
|
1,073,567
|
|
1,087,137
|
FVNB
|
2,105,120
|
|
2,164,824
|
|
2,239,415
|
|
-
|
|
-
|
F&M
|
2,090,468
|
|
-
|
|
-
|
|
-
|
|
-
|
All other
|
12,026,697
|
|
12,204,063
|
|
11,938,663
|
|
11,291,583
|
|
11,333,224
|
Total
deposits
|
$ 17,281,055
|
|
$ 15,460,057
|
|
$ 15,291,271
|
|
$ 12,455,799
|
|
$ 12,508,650
|
As reflected in the table above, loan and deposit growth was
impacted by the acquisitions of East Texas Financial Services,
Coppermark, FVNB and F&M. Excluding loans acquired in
these acquisitions and new production at the acquired banking
centers since the respective acquisition dates, loans at
June 30, 2014 grew $446.437 million or 8.4% compared with
June 30, 2013 and increased
$164.746 million or 3.0% (11.8%
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, 2014 grew $693.473 million or 6.1% compared with
June 30, 2013 and decreased
$177.366 million or 1.5% on a linked
quarter basis.
At June 30, 2014, Prosperity had
$21.2 billion in total assets,
$9.308 billion in loans and
$17.281 billion in deposits. Assets,
loans and deposits at June 30, 2014
increased by 30.6%, 50.8% and 38.2%, respectively, compared with
their respective levels at June 30,
2013.
Asset Quality
Nonperforming assets totaled $28.521
million or 0.15% of quarterly average earning assets at
June 30, 2014, compared with
$14.864 million or 0.11% of quarterly
average earning assets at June 30,
2013, and $18.696 million or
0.11% of quarterly average earning assets at March 31, 2014. The allowance for credit
losses was 0.79% of total loans at June 30,
2014, 0.91% of total loans at June
30, 2013 and 0.87% of total loans at March 31, 2014. Excluding loans acquired
that are accounted for under ASC Topics 310-20 and 310-30, the
allowance for credit losses was 1.15% of remaining loans as of
June 30, 2014, compared with 1.18% at
both June 30, 2013 and March 31, 2014. 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 $6.325 million for the three months ended
June 30, 2014, compared with
$600 thousand for the three months
ended March 31, 2014 and $2.550 million for the three months ended
June 30, 2013. The provision
for credit losses was $6.925 million
for the six months ended June 30,
2014, compared with $5.350
million for the six months ended June
30, 2013.
Net charge offs were $155 thousand
for the three months ended June 30,
2014, compared with $786
thousand for the three months ended March 31, 2014 and $1.423
million for the three months ended June 30, 2013. Net charge offs were
$941 thousand for the six months
ended June 30, 2014, compared with
$1.738 million for the six months
ended June 30, 2013.
Conference Call
Prosperity's management team will host a conference call on
Friday, July 25, 2014 at 10:30 a.m. Eastern Time (9:30 a.m. Central Time) to discuss Prosperity's
second quarter 2014 earnings. Individuals and investment
professionals may participate in the call by dialing
877-883-0383. The elite entry number is 8369040.
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 "Investor
Relations" tab and then the "Presentations & Calls" link.
Acquisition of F&M Bancorporation
On April 1, 2014, Prosperity
completed the acquisition of F&M Bancorporation Inc. ("FMBC")
and its wholly-owned subsidiary, The F&M Bank & Trust
Company ("F&M") headquartered in Tulsa, Oklahoma. F&M Bank operated
13 banking offices: 9 in Tulsa,
Oklahoma and surrounding areas; 3 in Dallas, Texas; and 1 loan production office in
Oklahoma City, Oklahoma. As
of March 31, 2014, FMBC, on a
consolidated basis, reported total assets of $2.412 billion, total loans of $1.738 billion and total deposits of $2.267 billion.
Pursuant to the terms of the acquisition agreement, Prosperity
issued 3,298,022 shares of Prosperity common stock plus
$34.240 million in cash for all
outstanding shares of FMBC capital stock, which resulted in
goodwill of $214.583 million as of
June 30, 2014. The goodwill
balance as of June 30, 2014 does not
include subsequent fair value adjustments that are still being
finalized.
Acquisition of FVNB Corp.
On November 1, 2013, Prosperity
completed the acquisition of FVNB Corp. and its wholly-owned
subsidiary, First Victoria National Bank headquartered in
Victoria, Texas. First
Victoria National Bank operated 33 banking offices: 4 in
Victoria, Texas; 7 in the
South Texas area including
Corpus Christi; 6 in the
Bryan/College Station area; 5 in
the Central Texas area including
New Braunfels; and 11 in the
Houston area including
The Woodlands and
Huntsville. As of September 30,
2013, FVNB, on a consolidated basis, reported total assets
of $2.473 billion, total loans of
$1.648 billion and total deposits of
$2.195 billion.
Pursuant to the terms of the acquisition agreement, Prosperity
issued 5,570,667 shares of Prosperity common stock plus
$91.250 million in cash for all
outstanding shares of FVNB Corp. capital stock, which resulted in
goodwill of $331.090 million as of
June 30, 2014. Additionally,
the Company recognized $18.411
million of core deposit intangibles as of June 30, 2014. These goodwill and core
deposit intangible balances as of June 30,
2014 do not include subsequent fair value adjustments that
are still being finalized.
Acquisition of Coppermark Bancshares, Inc.
On April 1, 2013, Prosperity
completed the acquisition of Coppermark Bancshares, Inc. and its
wholly-owned subsidiary, Coppermark Bank headquartered in
Oklahoma City, Oklahoma.
Coppermark operated 9 full-service banking offices: 6 in
Oklahoma City, Oklahoma and
surrounding areas and 3 in the Dallas,
Texas area. As of March 31,
2013, Coppermark reported, on a consolidated basis, total
assets of $1.248 billion, total loans
of $847.558 million and total
deposits of $1.120 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 goodwill of $117.653
million. Additionally, the Company recognized
$1.514 million of core deposit
intangibles.
Acquisition of East Texas Financial Services, Inc.
On January 1, 2013, Prosperity
completed the acquisition of East Texas Financial Services, Inc.
(OTC BB: FFBT) and its wholly-owned subsidiary, First Federal Bank
Texas ("Firstbank"). Firstbank operated 4 banking offices in the
Tyler MSA, including 3 locations in Tyler, Texas and 1 location in Gilmer, Texas. As of December 31, 2012, East Texas Financial Services
reported, on a consolidated basis, total assets of $165.955 million, total loans of $129.307 million and total deposits of
$112.293 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 goodwill of $15.007
million.
Prosperity Bancshares, Inc. ®
As of June 30, 2014, Prosperity
Bancshares Inc. ®, named America's Best Bank for 2014 by
Forbes, is a $21.248 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, Credit Cards, MasterMoney Debit Cards, 24 hour voice
response banking, Trust and Wealth Management, Mortgage Services
and Mobile Banking. Prosperity currently operates 246 full-service
banking locations: 62 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 37 in the Dallas/Fort Worth area; 22 in the East Texas area; 30 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 9 in the
Tulsa, Oklahoma area.
Bryan/College
Station Area -
|
Sachse
|
Sugar Land
|
Taft
|
Bryan
|
The Colony
|
SW Medical
Center
|
Victoria
|
Bryan-29th
Street
|
Turtle
Creek
|
Tanglewood
|
Victoria-Navarro
|
Bryan-East
|
Westmoreland
|
Uptown
|
Victoria-North
|
Bryan-North
|
|
Waugh
Drive
|
Yoakum
|
Caldwell
|
Fort Worth
-
|
Westheimer
|
Yorktown
|
College
Station
|
Haltom
City
|
West
University
|
|
Crescent
Point
|
Keller
|
Woodcreek
|
West Texas Area
-
|
Hearne
|
Roanoke
|
|
Abilene
-
|
Huntsville
|
Stockyards
|
Other Houston
Area
|
Antilley
Road
|
Madisonville
|
|
Locations
-
|
Barrow
Street
|
Navasota
|
Other Dallas/Fort
Worth
|
Angleton
|
Cypress
Street
|
New
Waverly
|
Locations
-
|
Bay City
|
Judge Ely
|
Rock
Prairie
|
Arlington
|
Beaumont
|
Mockingbird
|
Southwest
Parkway
|
Azle
|
Cinco
Ranch
|
|
Tower
Point
|
Ennis
|
Cleveland
|
Lubbock
-
|
Wellborn
Road
|
Gainesville
|
East
Bernard
|
4th
Street
|
|
Glen Rose
|
El Campo
|
66th
Street
|
Central Texas Area
-
|
Granbury
|
Dayton
|
82nd
Street
|
Austin -
|
Mesquite
|
Galveston
|
86th
Street
|
183
|
Muenster
|
Groves
|
98th
Street
|
Allandale
|
Sanger
|
Hempstead
|
Avenue Q
|
Cedar Park
|
Waxahachie
|
Hitchcock
|
North
University
|
Congress
|
Weatherford
|
Katy
|
Texas Tech Student
Union
|
Lakeway
|
|
Katy-Spring
Green
|
|
Liberty
Hill
|
East Texas Area
-
|
Liberty
|
Midland
-
|
Northland
|
Athens
|
Magnolia
|
Wadley
|
Oak Hill
|
Blooming
Grove
|
Magnolia
Parkway
|
Wall
Street
|
Research
Blvd
|
Canton
|
Mont
Belvieu
|
|
Westlake
|
Carthage
|
Nederland
|
Odessa
-
|
|
Corsicana
|
Needville
|
Grandview
|
Other Central
Texas Locations -
|
Crockett
|
Rosenberg
|
Grant
|
Bastrop
|
Eustace
|
Shadow
Creek
|
Kermit
Highway
|
Canyon
Lake
|
Gilmer
|
Spring
|
Parkway
|
Dime Box
|
Grapeland
|
Sweeny
|
|
Dripping
Springs
|
Gun Barrel
City
|
The
Woodlands-I-45
|
Other West Texas
Locations -
|
Elgin
|
Jacksonville
|
The
Woodlands-Research Forest
|
Big Spring
|
Flatonia
|
Kerens
|
Tomball
|
Brownfield
|
Georgetown
|
Longview
|
Waller
|
Brownwood
|
Gruene
|
Mount
Vernon
|
West
Columbia
|
Cisco
|
Kingsland
|
Palestine
|
Wharton
|
Comanche
|
La Grange
|
Rusk
|
Winnie
|
Early
|
Lexington
|
Seven
Points
|
Wirt
|
Floydada
|
New
Braunfels
|
Teague
|
|
Gorman
|
Pleasanton
|
Tyler-Beckham
|
South Texas Area
-
|
Levelland
|
Round Rock
|
Tyler-South
Broadway
|
Corpus Christi
-
|
Littlefield
|
San
Antonio
|
Tyler-University
|
Airline
|
Merkel
|
Schulenburg
|
Winnsboro
|
Calallen
|
Plainview
|
Seguin
|
|
Carmel
|
San Angelo
|
Smithville
|
Houston Area
-
|
Northwest
|
Slaton
|
Thorndale
|
Houston
-
|
Saratoga
|
Snyder
|
Weimar
|
Aldine
|
Timbergate
|
|
|
Allen
Parkway
|
Water
Street
|
Oklahoma
|
Dallas/Fort Worth
Area -
|
Bellaire
|
|
Central
Oklahoma-
|
Dallas
-
|
Beltway
|
Other South
Texas
|
23rd
Street
|
Abrams
Centre
|
Clear Lake
|
Locations
-
|
Edmond
|
Balch
Springs
|
Copperfield
|
Alice
|
Expressway
|
Camp
Wisdom
|
Cypress
|
Aransas
Pass
|
I-240
|
Cedar Hill
|
Downtown
|
Beeville
|
Memorial
|
Dallas – Central
Expressway
|
Eastex
|
Colony
Creek
|
Norman
|
Forest
Park
|
Fairfield
|
Cuero
|
|
Frisco
|
First
Colony
|
Edna
|
Tulsa-
|
Frisco-West
|
Gessner
|
Goliad
|
Garnett
|
Independence
|
Gladebrook
|
Gonzales
|
Harvard
|
Kiest
|
Heights
|
Hallettsville
|
Memorial
|
McKinney
|
Highway 6
West
|
Kingsville
|
Owasso
|
McKinney-Stonebridge
|
Little
York
|
Mathis
|
Sheridan
|
Midway
|
Medical
Center
|
Padre
Island
|
S. Harvard
|
Northwest
Highway
|
Memorial
Drive
|
Palacios
|
Utica
Square
|
Plano
|
Northside
|
Port
Lavaca
|
Utica
Tower
|
Preston
Forest
|
Pasadena
|
Portland
|
Yale
|
Preston
Road
|
Pecan
Grove
|
Rockport
|
|
Red Oak
|
River Oaks
|
Sinton
|
|
|
|
|
|
"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, 2013 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,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Jun 30,
2013
|
Balance Sheet
Data
|
|
|
|
|
|
|
|
|
|
(at period
end)
|
|
|
|
|
|
|
|
Total
loans
|
$ 9,308,162
|
|
$
7,752,400
|
|
$ 7,775,221
|
|
$ 6,182,589
|
|
$ 6,172,483
|
Investment
securities(A)
|
8,851,235
|
|
8,561,337
|
|
8,224,448
|
|
7,771,345
|
|
8,017,884
|
Federal funds
sold
|
3,630
|
|
382
|
|
400
|
|
1,121
|
|
606
|
Allowance for credit
losses
|
(73,266)
|
|
(67,096)
|
|
(67,282)
|
|
(59,913)
|
|
(56,176)
|
Cash and due from
banks
|
509,853
|
|
349,860
|
|
380,990
|
|
269,987
|
|
250,542
|
Goodwill
|
1,894,270
|
|
1,672,004
|
|
1,671,520
|
|
1,351,782
|
|
1,350,834
|
Core deposit
intangibles, net
|
37,072
|
|
39,702
|
|
42,049
|
|
25,233
|
|
26,688
|
Other real estate
owned
|
5,093
|
|
7,372
|
|
7,299
|
|
7,432
|
|
10,244
|
Fixed assets,
net
|
285,751
|
|
280,812
|
|
282,925
|
|
232,240
|
|
227,455
|
Other
assets
|
426,306
|
|
316,360
|
|
324,458
|
|
272,463
|
|
270,158
|
Total
assets
|
$ 21,248,106
|
|
$ 18,913,133
|
|
$ 18,642,028
|
|
$ 16,054,279
|
|
$ 16,270,718
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$ 4,921,398
|
|
$
4,142,042
|
|
$ 4,108,835
|
|
$ 3,368,357
|
|
$ 3,283,082
|
Interest-bearing
deposits
|
12,359,657
|
|
11,318,015
|
|
11,182,436
|
|
9,087,442
|
|
9,225,568
|
Total
deposits
|
17,281,055
|
|
15,460,057
|
|
15,291,271
|
|
12,455,799
|
|
12,508,650
|
Securities sold
under
|
|
|
|
|
|
|
|
|
|
repurchase
agreements
|
388,342
|
|
349,074
|
|
364,357
|
|
431,969
|
|
481,170
|
Other
borrowings
|
200,210
|
|
40,451
|
|
10,689
|
|
605,951
|
|
781,215
|
Junior subordinated
debentures
|
167,531
|
|
124,231
|
|
124,231
|
|
85,055
|
|
85,055
|
Other
liabilities
|
90,374
|
|
98,566
|
|
64,662
|
|
86,393
|
|
69,346
|
Total
liabilities
|
18,127,512
|
|
16,072,379
|
|
15,855,210
|
|
13,665,167
|
|
13,925,436
|
Shareholders'
equity(B)
|
3,120,594
|
|
2,840,754
|
|
2,786,818
|
|
2,389,112
|
|
2,345,282
|
Total liabilities and
equity
|
$ 21,248,106
|
|
$ 18,913,133
|
|
$ 18,642,028
|
|
$ 16,054,279
|
|
$ 16,270,718
|
(A) Includes
$6,706, $7,023, $7,512, $8,588 and $9,724 in unrealized gains on
available for sale securities for the quarterly periods ending June
30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and
June 30, 2013, respectively.
|
|
(B) Includes
$4,359, $4,565, $4,883, $5,582 and $6,321 in after-tax unrealized
gains on available for sale securities for the quarterly periods
ending June 30, 2014, March 31, 2014, December 31, 2013, September
30, 2013 and June 30, 2013, respectively.
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Jun 30,
2013
|
|
Jun 30,
2014
|
|
Jun 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$ 138,655
|
|
$
107,144
|
|
$ 110,575
|
|
$
94,236
|
|
$
89,842
|
|
$ 245,799
|
|
$ 171,306
|
Securities(C)
|
47,670
|
|
47,056
|
|
45,100
|
|
41,961
|
|
39,384
|
|
94,726
|
|
75,932
|
Federal funds sold
and other earning assets
|
178
|
|
48
|
|
76
|
|
16
|
|
76
|
|
226
|
|
95
|
Total interest
income
|
186,503
|
|
154,248
|
|
155,751
|
|
136,213
|
|
129,302
|
|
340,751
|
|
247,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
10,918
|
|
9,387
|
|
9,048
|
|
8,314
|
|
9,170
|
|
20,305
|
|
17,860
|
Securities sold under
repurchase agreements
|
254
|
|
237
|
|
280
|
|
317
|
|
312
|
|
491
|
|
1,211
|
Junior subordinated
debentures
|
1,087
|
|
775
|
|
730
|
|
610
|
|
606
|
|
1,862
|
|
604
|
Other
borrowings
|
189
|
|
158
|
|
224
|
|
439
|
|
472
|
|
347
|
|
834
|
Total interest
expense
|
12,448
|
|
10,557
|
|
10,282
|
|
9,680
|
|
10,560
|
|
23,005
|
|
20,509
|
Net interest
income
|
174,055
|
|
143,691
|
|
145,469
|
|
126,533
|
|
118,742
|
|
317,746
|
|
226,824
|
Provision for credit
losses
|
6,325
|
|
600
|
|
7,865
|
|
4,025
|
|
2,550
|
|
6,925
|
|
5,350
|
Net interest income
after provision for credit losses
|
167,730
|
|
143,091
|
|
137,604
|
|
122,508
|
|
116,192
|
|
310,821
|
|
221,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds
(NSF) fees
|
9,099
|
|
8,870
|
|
9,669
|
|
8,649
|
|
8,346
|
|
17,969
|
|
16,855
|
Credit card, debit
card and ATM card income
|
5,532
|
|
4,724
|
|
4,662
|
|
4,307
|
|
7,007
|
|
10,256
|
|
13,494
|
Service charges on
deposit accounts
|
4,823
|
|
4,037
|
|
3,460
|
|
3,169
|
|
3,304
|
|
8,860
|
|
6,235
|
Trust
income
|
2,044
|
|
1,800
|
|
1,542
|
|
901
|
|
896
|
|
3,844
|
|
1,913
|
Mortgage
income
|
1,208
|
|
593
|
|
549
|
|
931
|
|
1,567
|
|
1,801
|
|
2,558
|
Brokerage
income
|
1,401
|
|
1,269
|
|
719
|
|
233
|
|
263
|
|
2,670
|
|
566
|
Bank owned life
insurance income
|
1,365
|
|
1,028
|
|
1,011
|
|
916
|
|
932
|
|
2,393
|
|
1,708
|
Net gain (loss) on
sale of assets
|
1,301
|
|
3,310
|
|
40
|
|
126
|
|
(180)
|
|
4,611
|
|
(179)
|
Net gain (loss) on
sale of other real estate
|
1,404
|
|
(60)
|
|
196
|
|
(864)
|
|
237
|
|
1,344
|
|
132
|
Other noninterest
income
|
5,824
|
|
3,033
|
|
3,310
|
|
3,186
|
|
2,902
|
|
8,857
|
|
5,433
|
Total noninterest
income
|
34,001
|
|
28,604
|
|
25,158
|
|
21,554
|
|
25,274
|
|
62,605
|
|
48,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
54,126
|
|
43,408
|
|
40,633
|
|
37,135
|
|
37,517
|
|
97,534
|
|
70,726
|
Net occupancy and
equipment
|
5,996
|
|
5,339
|
|
4,893
|
|
5,094
|
|
4,669
|
|
11,335
|
|
8,947
|
Debit card, data
processing and software amortization
|
4,009
|
|
3,184
|
|
3,333
|
|
2,756
|
|
3,249
|
|
7,193
|
|
5,819
|
Regulatory
assessments and FDIC insurance
|
3,886
|
|
2,726
|
|
2,771
|
|
2,516
|
|
2,579
|
|
6,612
|
|
4,974
|
Core deposit
intangibles amortization
|
2,630
|
|
2,045
|
|
1,594
|
|
1,455
|
|
1,341
|
|
4,675
|
|
3,096
|
Depreciation
|
3,522
|
|
3,201
|
|
3,072
|
|
2,679
|
|
2,464
|
|
6,723
|
|
4,842
|
Communications
|
2,919
|
|
2,737
|
|
2,468
|
|
2,397
|
|
2,410
|
|
5,656
|
|
4,606
|
Other real estate
expense
|
188
|
|
396
|
|
176
|
|
75
|
|
237
|
|
584
|
|
460
|
Other noninterest
expense
|
11,420
|
|
7,998
|
|
9,652
|
|
7,430
|
|
6,834
|
|
19,418
|
|
13,597
|
Total noninterest
expense
|
88,696
|
|
71,034
|
|
68,592
|
|
61,537
|
|
61,300
|
|
159,730
|
|
117,067
|
Income before income
taxes
|
113,035
|
|
100,661
|
|
94,170
|
|
82,525
|
|
80,166
|
|
213,696
|
|
153,122
|
Provision for income
taxes
|
37,529
|
|
33,524
|
|
31,199
|
|
27,247
|
|
26,322
|
|
71,053
|
|
49,973
|
Net income available
to common shareholders
|
$
75,506
|
|
$
67,137
|
|
$
62,971
|
|
$
55,278
|
|
$
53,844
|
|
$ 142,643
|
|
$ 103,149
|
(C) Interest
income on securities was reduced by net premium amortization of
$12,837, $12,280, $12,017, $15,136 and $18,838 for the three month
periods ended June 30, 2014, March 31, 2014, December 31, 2013,
September 30, 2013 and June 30, 2013, respectively, and $25,117 and
$41,548 for the six month periods ended June 30, 2014 and June 30,
2013, 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,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Jun 30,
2013
|
|
Jun 30,
2014
|
|
Jun 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
75,506
|
|
$
67,137
|
|
$
62,971
|
|
$
55,278
|
|
$
53,844
|
|
$ 142,643
|
|
$ 103,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
1.08
|
|
$
1.01
|
|
$
0.98
|
|
$
0.92
|
|
$
0.89
|
|
$
2.10
|
|
$
1.76
|
Diluted earnings per
share
|
$
1.08
|
|
$
1.01
|
|
$
0.98
|
|
$
0.91
|
|
$
0.89
|
|
$
2.10
|
|
$
1.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(D)
|
1.42%
|
|
1.43%
|
|
1.42%
|
|
1.37%
|
|
1.33%
|
|
1.43%
|
|
1.33%
|
Return on average
common equity(D)
|
9.75%
|
|
9.52%
|
|
9.53%
|
|
9.31%
|
|
9.27%
|
|
9.72%
|
|
9.25%
|
Return on average
tangible common equity(D) (E)
|
24.06%
|
|
24.23%
|
|
23.97%
|
|
22.14%
|
|
22.32%
|
|
24.12%
|
|
22.31%
|
Tax equivalent net
interest margin(F)
|
3.83%
|
|
3.62%
|
|
3.82%
|
|
3.59%
|
|
3.43%
|
|
3.73%
|
|
3.43%
|
Efficiency
ratio(G)
|
42.90%
|
|
42.04%
|
|
40.21%
|
|
41.59%
|
|
42.51%
|
|
42.51%
|
|
42.46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
14.69%
|
|
15.02%
|
|
14.95%
|
|
14.88%
|
|
14.41%
|
|
14.69%
|
|
14.41%
|
Tier 1 risk-based
capital
|
12.50%
|
|
13.85%
|
|
13.29%
|
|
14.74%
|
|
14.15%
|
|
12.50%
|
|
14.15%
|
Total risk-based
capital
|
13.18%
|
|
14.59%
|
|
14.03%
|
|
15.55%
|
|
14.91%
|
|
13.18%
|
|
14.91%
|
Tier 1 leverage
capital
|
6.98%
|
|
7.30%
|
|
7.44%
|
|
7.37%
|
|
7.07%
|
|
6.98%
|
|
7.07%
|
Tangible equity to
tangible assets(E)
|
6.16%
|
|
6.56%
|
|
6.35%
|
|
6.90%
|
|
6.50%
|
|
6.16%
|
|
6.50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computed earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
69,667
|
|
66,186
|
|
64,024
|
|
60,344
|
|
60,250
|
|
67,936
|
|
58,629
|
Diluted
|
69,728
|
|
66,280
|
|
64,173
|
|
60,504
|
|
60,394
|
|
68,014
|
|
58,774
|
Period end shares
outstanding
|
69,744
|
|
66,261
|
|
66,048
|
|
60,383
|
|
60,315
|
|
69,744
|
|
60,315
|
Cash dividends paid
per common share
|
$
0.240
|
|
$
0.240
|
|
$
0.240
|
|
$
0.215
|
|
$
0.215
|
|
$
0.480
|
|
$
0.430
|
Book value per
share
|
$
44.74
|
|
$
42.87
|
|
$
42.19
|
|
$
39.57
|
|
$
38.88
|
|
$
44.74
|
|
$
38.88
|
Tangible book value
per share(E)
|
$
17.05
|
|
$
17.04
|
|
$
16.27
|
|
$
16.76
|
|
$
16.05
|
|
$
17.05
|
|
$
16.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
$
67.49
|
|
$
67.68
|
|
$
65.49
|
|
$
62.00
|
|
$
52.40
|
|
$
67.68
|
|
$
52.38
|
Low
|
56.04
|
|
59.75
|
|
61.18
|
|
51.85
|
|
44.33
|
|
56.04
|
|
42.38
|
Period end closing
price
|
62.60
|
|
66.15
|
|
63.39
|
|
61.84
|
|
51.79
|
|
62.60
|
|
51.79
|
Employees –
FTE
|
3,199
|
|
2,888
|
|
2,995
|
|
2,454
|
|
2,496
|
|
3,199
|
|
2,496
|
Number of banking
centers
|
247
|
|
236
|
|
238
|
|
218
|
|
219
|
|
247
|
|
219
|
(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.
|
(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 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,
2014
|
|
Mar 31,
2014
|
|
Jun 30,
2013
|
|
|
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
|
$ 9,468,136
|
|
$ 138,655
|
|
5.87%
|
|
$ 7,755,997
|
|
$ 107,144
|
|
5.60%
|
|
$ 6,114,598
|
|
$ 89,842
|
|
5.89%
|
|
Investment
securities
|
8,748,322
|
|
47,670
|
|
2.19%
|
(H)
|
8,466,946
|
|
47,056
|
|
2.25%
|
(H)
|
7,964,157
|
|
39,384
|
|
1.98%
|
(H)
|
Federal funds sold
and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
earning
assets
|
234,302
|
|
178
|
|
0.30%
|
|
101,700
|
|
48
|
|
0.19%
|
|
35,113
|
|
76
|
|
0.87%
|
|
Total interest-earning
assets
|
18,450,760
|
|
$ 186,503
|
|
4.05%
|
|
16,324,643
|
|
$ 154,248
|
|
3.83%
|
|
14,113,868
|
|
$ 129,302
|
|
3.67%
|
|
Allowance for credit
losses
|
(72,587)
|
|
|
|
|
|
(67,222)
|
|
|
|
|
|
(57,754)
|
|
|
|
|
|
Noninterest-earning
assets
|
2,939,375
|
|
|
|
|
|
2,550,893
|
|
|
|
|
|
2,114,816
|
|
|
|
|
|
Total
assets
|
$ 21,317,548
|
|
|
|
|
|
$ 18,808,314
|
|
|
|
|
|
$ 16,170,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$ 3,568,475
|
|
$ 2,272
|
|
0.26%
|
|
$ 3,554,366
|
|
$ 2,132
|
|
0.24%
|
|
$ 2,580,750
|
|
$ 2,100
|
|
0.33%
|
|
Savings and money
market deposits
|
5,479,978
|
|
3,550
|
|
0.26%
|
|
4,992,442
|
|
3,155
|
|
0.26%
|
|
4,261,466
|
|
3,172
|
|
0.30%
|
|
Certificates and
other time deposits
|
3,379,819
|
|
5,096
|
|
0.60%
|
|
2,816,701
|
|
4,100
|
|
0.59%
|
|
2,543,895
|
|
3,898
|
|
0.61%
|
|
Securities sold under
repurchase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
agreements
|
382,692
|
|
254
|
|
0.27%
|
|
347,747
|
|
237
|
|
0.28%
|
|
471,430
|
|
312
|
|
0.27%
|
|
Junior subordinated
debentures
|
167,531
|
|
1,087
|
|
2.60%
|
|
124,231
|
|
775
|
|
2.53%
|
|
85,055
|
|
606
|
|
2.86%
|
|
Other
borrowings
|
140,906
|
|
189
|
|
0.54%
|
|
51,932
|
|
158
|
|
1.23%
|
|
541,034
|
|
472
|
|
0.35%
|
|
Total interest-bearing
liabilities
|
13,119,401
|
|
$ 12,448
|
|
0.38%
|
(I)
|
11,887,419
|
|
$ 10,557
|
|
0.36%
|
(I)
|
10,483,630
|
|
$ 10,560
|
|
0.40%
|
(I)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
4,735,575
|
|
|
|
|
|
4,018,094
|
|
|
|
|
|
3,295,211
|
|
|
|
|
|
Other
liabilities
|
365,169
|
|
|
|
|
|
82,288
|
|
|
|
|
|
69,741
|
|
|
|
|
|
Total
liabilities
|
18,220,145
|
|
|
|
|
|
15,987,801
|
|
|
|
|
|
13,848,582
|
|
|
|
|
|
Shareholders'
equity
|
3,097,403
|
|
|
|
|
|
2,820,513
|
|
|
|
|
|
2,322,348
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 21,317,548
|
|
|
|
|
|
$ 18,808,314
|
|
|
|
|
|
$ 16,170,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and margin
|
|
|
$ 174,055
|
|
3.78%
|
|
|
|
$ 143,691
|
|
3.57%
|
|
|
|
$ 118,742
|
|
3.37%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
2,083
|
|
|
|
|
|
2,052
|
|
|
|
|
|
2,063
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(tax equivalent
basis)
|
|
|
$ 176,138
|
|
3.83%
|
|
|
|
$ 145,743
|
|
3.62%
|
|
|
|
$ 120,805
|
|
3.43%
|
|
(H) Yield on
securities was impacted by net premium amortization of $12,837,
$12,280 and $18,838 for the three month periods ended June 30,
2014, March 31, 2014 and June 30, 2013, respectively.
|
(I) Total cost of
funds, including noninterest-bearing deposits, was 0.28%, 0.27% and
0.31% for the three months ended June 30, 2014, March 31, 2014 and
June 30, 2013, respectively.
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD
ANALYSIS
|
Year-to-Date
|
|
|
Jun 30,
2014
|
|
Jun 30,
2013
|
|
|
Average
Balance
|
|
Interest Earned/
Interest Paid
|
|
Average Yield/
Rate
|
|
Average
Balance
|
|
Interest Earned/
Interest Paid
|
|
Average Yield/
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$ 8,616,796
|
|
$245,799
|
|
5.75%
|
|
$ 5,691,541
|
|
$171,306
|
|
6.07%
|
|
Investment
securities
|
8,608,411
|
|
94,726
|
|
2.22%
|
(J)
|
7,860,438
|
|
75,932
|
|
1.95%
|
(J)
|
Federal funds sold
and other
|
|
|
|
|
|
|
|
|
|
|
|
|
earning
assets
|
168,368
|
|
226
|
|
0.27%
|
|
34,954
|
|
95
|
|
0.55%
|
|
Total
interest-earning assets
|
17,393,575
|
|
$340,751
|
|
3.95%
|
|
13,586,933
|
|
$247,333
|
|
3.67%
|
|
Allowance for credit
losses
|
(69,919)
|
|
|
|
|
|
(55,513)
|
|
|
|
|
|
Noninterest-earning
assets
|
2,746,112
|
|
|
|
|
|
1,982,871
|
|
|
|
|
|
Total
assets
|
$ 20,069,768
|
|
|
|
|
|
$ 15,514,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$ 3,561,460
|
|
$ 4,404
|
|
0.25%
|
|
$ 2,619,902
|
|
$ 4,309
|
|
0.33%
|
|
Savings and money
market deposits
|
5,237,557
|
|
6,705
|
|
0.26%
|
|
4,027,242
|
|
6,001
|
|
0.30%
|
|
Certificates and
other time deposits
|
3,099,815
|
|
9,196
|
|
0.60%
|
|
2,457,676
|
|
7,550
|
|
0.62%
|
|
Securities sold under
repurchase
|
|
|
|
|
|
|
|
|
|
|
|
|
agreements
|
365,316
|
|
491
|
|
0.27%
|
|
460,049
|
|
604
|
|
0.26%
|
|
Junior subordinated
debentures
|
145,881
|
|
1,862
|
|
2.57%
|
|
85,055
|
|
1,211
|
|
2.87%
|
|
Other
borrowings
|
96,666
|
|
347
|
|
0.72%
|
|
450,082
|
|
834
|
|
0.37%
|
|
Total interest
bearing liabilities
|
12,506,695
|
|
$ 23,005
|
|
0.37%
|
(K)
|
10,100,006
|
|
$ 20,509
|
|
0.41%
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
4,378,471
|
|
|
|
|
|
3,118,400
|
|
|
|
|
|
Other
liabilities
|
224,497
|
|
|
|
|
|
66,251
|
|
|
|
|
|
Total
liabilities
|
17,109,663
|
|
|
|
|
|
13,284,657
|
|
|
|
|
|
Shareholders'
equity
|
2,960,105
|
|
|
|
|
|
2,229,634
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$ 20,069,768
|
|
|
|
|
|
$ 15,514,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and margin
|
|
|
$317,746
|
|
3.68%
|
|
|
|
$226,824
|
|
3.37%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
4,135
|
|
|
|
|
|
4,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and margin
|
|
|
|
|
|
|
|
|
|
|
|
|
(tax equivalent
basis)
|
|
|
$321,881
|
|
3.73%
|
|
|
|
$231,012
|
|
3.43%
|
|
(J) Yield on
securities was impacted by net premium amortization of $25,117 and
$41,548 for the six month periods ended June 30, 2014 and June 30,
2013, respectively.
|
(K) Total cost of
funds, including noninterest-bearing deposits, was 0.27% and 0.31%
for the six month periods ended June 30, 2014 and June 30, 2013,
respectively.
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Jun 30,
2013
|
|
Jun 30,
2014
|
|
Jun 30,
2013
|
Adjustment to Loan
Yield (L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on loans, as
reported
|
$ 138,655
|
|
$
107,144
|
|
$ 110,575
|
|
$
94,236
|
|
$
89,842
|
|
$ 245,799
|
|
$ 171,306
|
Remove
purchase accounting adjustment-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
loan discount accretion
|
(25,352)
|
|
(13,475)
|
|
(19,979)
|
|
(16,421)
|
|
(12,031)
|
|
(38,827)
|
|
(26,323)
|
Interest on loans
without discount accretion
|
$ 113,303
|
|
$
93,669
|
|
$
90,596
|
|
$
77,815
|
|
$
77,811
|
|
$ 206,972
|
|
$ 144,983
|
Average
loans
|
$ 9,468,136
|
|
$ 7,755,997
|
|
$ 7,238,438
|
|
$ 6,173,394
|
|
$ 6,114,598
|
|
$ 8,616,796
|
|
$ 5,691,541
|
Loan yield without
discount accretion
|
4.80%
|
|
4.90%
|
|
4.97%
|
|
5.00%
|
|
5.10%
|
|
4.84%
|
|
5.14%
|
Loan yield, as
reported
|
5.87%
|
|
5.60%
|
|
6.06%
|
|
6.06%
|
|
5.89%
|
|
5.75%
|
|
6.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment to
Securities Yield (L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
securities, as reported
|
$
47,670
|
|
$
47,056
|
|
$
45,100
|
|
$
41,961
|
|
$
39,384
|
|
$
94,726
|
|
$
75,932
|
Remove
purchase accounting adjustment-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
securities amortization
|
1,570
|
|
1,964
|
|
1,892
|
|
2,275
|
|
2,599
|
|
3,534
|
|
5,705
|
Interest on
securities including amortization
|
$
49,240
|
|
$
49,020
|
|
$
46,992
|
|
$
44,236
|
|
$
41,983
|
|
$
98,260
|
|
$
81,637
|
Average
securities
|
$ 8,748,322
|
|
$ 8,466,946
|
|
$ 7,992,673
|
|
$ 8,015,221
|
|
$ 7,964,157
|
|
$ 8,608,411
|
|
$ 7,860,438
|
Securities yield
without purchase accounting adjustment
|
2.26%
|
|
2.35%
|
|
2.33%
|
|
2.19%
|
|
2.11%
|
|
2.30%
|
|
2.09%
|
Securities yield, as
reported
|
2.19%
|
|
2.25%
|
|
2.24%
|
|
2.08%
|
|
1.98%
|
|
2.22%
|
|
1.95%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin (tax equivalent basis, excluding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
purchase accounting adjustments to yield)
|
3.31%
|
|
3.33%
|
|
3.35%
|
|
3.19%
|
|
3.09%
|
|
3.32%
|
|
3.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin (tax equivalent basis), as reported
|
3.83%
|
|
3.62%
|
|
3.82%
|
|
3.59%
|
|
3.43%
|
|
3.73%
|
|
3.43%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
available to common shareholders,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as reported
|
$
75,506
|
|
$
67,137
|
|
$
62,971
|
|
$
55,278
|
|
$
53,844
|
|
$ 142,643
|
|
$ 103,149
|
Less: Purchase accounting adjustments, net of tax
(M)
|
(15,886)
|
|
(7,677)
|
|
(12,095)
|
|
(9,476)
|
|
(6,335)
|
|
(23,556)
|
|
(13,925)
|
Net income
available to common shareholders, adjusted
|
$
59,620
|
|
$
59,460
|
|
$
50,876
|
|
$
45,802
|
|
$
47,509
|
|
$ 119,087
|
|
$
89,224
|
|
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
Mar 31, 2014
|
|
Balance at
Jun 30, 2014
|
|
Balance at
Acquisition
Date
|
|
Balance at
Mar 31, 2014
|
|
Balance at
Jun 30, 2014
|
|
Balance at
Acquisition
Date
|
|
Balance at
Mar 31, 2014
|
|
Balance at
Jun 30, 2014
|
Loan
marks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previously acquired
banks (N)
|
$ 159,627
|
|
$
77,163
|
|
$
67,578
|
|
$ 63,547
|
|
$
42,025
|
|
$
32,450
|
|
$ 223,174
|
|
$
119,188
|
|
$ 100,028
|
2014 acquisition
(O)
|
65,962
|
|
-
|
|
55,749
|
|
68,359
|
|
-
|
|
68,359
|
|
134,321
|
|
-
|
|
124,108
|
Total
|
$ 225,589
|
|
$
77,163
|
|
$ 123,327
|
|
$ 131,906
|
|
$
42,025
|
|
$ 100,809
|
|
$ 357,495
|
|
$
119,188
|
|
$ 224,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previously acquired
banks (N)
|
$ 3,839,648
|
|
$ 2,123,805
|
|
$ 1,863,751
|
|
$ 135,279
|
|
$
82,127
|
|
$
70,292
|
|
$ 3,974,927
|
|
$ 2,205,932
|
|
$ 1,934,043
|
2014 acquisition
(O)
|
1,617,287
|
|
-
|
|
1,128,510
|
|
120,567
|
|
-
|
|
110,582
|
|
1,737,854
|
|
-
|
|
1,239,092
|
Total
|
$ 5,456,935
|
|
$ 2,123,805
|
|
$ 2,992,261
|
|
$ 255,846
|
|
$
82,127
|
|
$ 180,874
|
|
$ 5,712,781
|
(P)
|
$ 2,205,932
|
|
$ 3,173,135
|
(L) Non-GAAP
financial measure.
|
|
|
|
|
|
|
(M) Using
effective tax rate of 33.2%, 33.3%, 33.1%, 33.0% and 32.8% for the
three month periods ended June 30, 2014, March 31, 2014, December
31, 2013, September 30, 2013 and June 30, 2013,
|
respectively, and
33.2% and 32.6% for the six month periods ended June 30, 2014 and
2013, respectively.
|
(N) Includes
Bank of Texas, Bank Arlington, American State Bank, Community
National Bank, East Texas Financial Services, Coppermark and
FVNB.
|
(O) F&M
was acquired on April 1, 2014. During the second quarter of
2014, F&M added $1.738 billion in loans with related purchase
accounting adjustments of $134.321 million at acquisition
date.
|
(P) Actual
principal balances acquired.
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Jun 30,
2013
|
YIELD
TREND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
Loans
|
5.87%
|
|
5.60%
|
|
6.06%
|
|
6.06%
|
|
5.89%
|
Investment securities
(Q)
|
2.19%
|
|
2.25%
|
|
2.24%
|
|
2.08%
|
|
1.98%
|
Federal funds sold
and other earning assets
|
0.30%
|
|
0.19%
|
|
0.29%
|
|
0.22%
|
|
0.87%
|
Total
interest-earning assets
|
4.05%
|
|
3.83%
|
|
4.03%
|
|
3.80%
|
|
3.67%
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
0.26%
|
|
0.24%
|
|
0.25%
|
|
0.28%
|
|
0.33%
|
Savings and money
market deposits
|
0.26%
|
|
0.26%
|
|
0.26%
|
|
0.27%
|
|
0.30%
|
Certificates and
other time deposits
|
0.60%
|
|
0.59%
|
|
0.60%
|
|
0.59%
|
|
0.61%
|
Securities sold under
repurchase agreements
|
0.27%
|
|
0.28%
|
|
0.28%
|
|
0.28%
|
|
0.27%
|
Other
borrowings
|
0.54%
|
|
1.23%
|
|
0.42%
|
|
0.23%
|
|
0.35%
|
Junior subordinated
debentures
|
2.60%
|
|
2.53%
|
|
2.61%
|
|
2.85%
|
|
2.86%
|
Total
interest-bearing liabilities
|
0.38%
|
|
0.36%
|
|
0.37%
|
|
0.37%
|
|
0.40%
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
3.78%
|
|
3.57%
|
|
3.76%
|
|
3.53%
|
|
3.37%
|
Net Interest Margin
(tax equivalent)
|
3.83%
|
|
3.62%
|
|
3.82%
|
|
3.59%
|
|
3.43%
|
(Q) Yield on
securities was impacted by net premium amortization of $12,837,
$12,280, $12,017, $15,136 and $18,838 for the three month periods ended June 30, 2014,
March 31, 2014, December 31, 2013, September 30, 2013 and
June 30, 2013,
respectively.
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
June 30,
2013
|
Balance Sheet
Averages
|
|
|
|
|
|
|
|
|
|
Total
loans
|
$ 9,468,136
|
|
$ 7,755,997
|
|
$ 7,238,438
|
|
$ 6,173,394
|
|
$ 6,114,598
|
Investment
securities
|
8,748,322
|
|
8,466,946
|
|
7,992,673
|
|
8,015,221
|
|
7,964,157
|
Federal funds sold
and
|
|
|
|
|
|
|
|
|
|
other earning
assets
|
234,302
|
|
101,700
|
|
103,413
|
|
27,451
|
|
35,113
|
Total
interest-earning assets
|
18,450,760
|
|
16,324,643
|
|
15,334,524
|
|
14,216,066
|
|
14,113,868
|
Allowance for credit
losses
|
(72,587)
|
|
(67,222)
|
|
(60,170)
|
|
(56,765)
|
|
(57,754)
|
Cash and due from
banks
|
284,432
|
|
255,297
|
|
232,666
|
|
189,082
|
|
279,271
|
Goodwill
|
1,803,534
|
|
1,673,216
|
|
1,560,905
|
|
1,351,236
|
|
1,331,568
|
Core deposit
intangibles, net
|
38,469
|
|
38,754
|
|
30,641
|
|
25,938
|
|
25,893
|
Other real
estate
|
8,562
|
|
7,885
|
|
7,254
|
|
9,494
|
|
19,605
|
Fixed assets,
net
|
292,075
|
|
282,411
|
|
251,688
|
|
231,480
|
|
223,769
|
Other
assets
|
512,303
|
|
293,330
|
|
419,122
|
|
227,738
|
|
234,710
|
Total
assets
|
$ 21,317,548
|
|
$ 18,808,314
|
|
$ 17,776,630
|
|
$ 16,194,269
|
|
$ 16,170,930
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$ 4,735,575
|
|
$ 4,018,094
|
|
$ 3,860,296
|
|
$ 3,308,158
|
|
$ 3,295,211
|
Interest-bearing
demand deposits
|
3,568,475
|
|
3,554,366
|
|
2,963,899
|
|
2,400,555
|
|
2,580,750
|
Savings and money
market deposits
|
5,479,978
|
|
4,992,442
|
|
4,654,044
|
|
4,233,911
|
|
4,261,466
|
Certificates and
other time deposits
|
3,379,819
|
|
2,816,701
|
|
2,712,699
|
|
2,489,848
|
|
2,543,895
|
Total
deposits
|
17,163,847
|
|
15,381,603
|
|
14,190,938
|
|
12,432,472
|
|
12,681,322
|
Securities sold
under
|
|
|
|
|
|
|
|
|
|
repurchase
agreements
|
382,692
|
|
347,747
|
|
398,100
|
|
455,276
|
|
471,430
|
Other
borrowings
|
140,906
|
|
51,932
|
|
210,492
|
|
772,083
|
|
541,034
|
Junior subordinated
debentures
|
167,531
|
|
124,231
|
|
111,172
|
|
85,055
|
|
85,055
|
Other
liabilities
|
365,169
|
|
82,288
|
|
223,394
|
|
73,571
|
|
69,741
|
Shareholders'
equity
|
3,097,403
|
|
2,820,513
|
|
2,642,534
|
|
2,375,812
|
|
2,322,348
|
Total liabilities and
equity
|
$ 21,317,548
|
|
$ 18,808,314
|
|
$ 17,776,630
|
|
$ 16,194,269
|
|
$ 16,170,930
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Jun 30,
2013
|
Period End
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
other
|
$ 2,139,983
|
23.0%
|
|
$ 1,312,405
|
16.9%
|
|
$ 1,322,975
|
17.0%
|
|
$ 1,028,799
|
16.6%
|
|
$ 999,677
|
16.2%
|
Construction, land
development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other land
loans
|
1,005,099
|
10.8%
|
|
888,985
|
11.5%
|
|
865,511
|
11.1%
|
|
703,193
|
11.4%
|
|
694,585
|
11.2%
|
1-4 family
residential
|
2,153,801
|
23.1%
|
|
1,906,480
|
24.7%
|
|
1,870,365
|
24.2%
|
|
1,503,771
|
24.4%
|
|
1,452,268
|
23.7%
|
Home
equity
|
267,759
|
2.9%
|
|
263,966
|
3.4%
|
|
261,355
|
3.4%
|
|
211,742
|
3.4%
|
|
208,739
|
3.4%
|
Commercial real
estate
|
3,027,945
|
32.6%
|
|
2,709,386
|
34.9%
|
|
2,753,797
|
35.3%
|
|
2,304,862
|
37.2%
|
|
2,390,820
|
38.6%
|
Agriculture
(including farmland)
|
542,360
|
5.8%
|
|
512,857
|
6.6%
|
|
531,258
|
6.8%
|
|
321,518
|
5.2%
|
|
314,945
|
5.1%
|
Consumer and
other
|
171,215
|
1.8%
|
|
158,321
|
2.0%
|
|
169,960
|
2.2%
|
|
108,704
|
1.8%
|
|
111,449
|
1.8%
|
Total
loans
|
$ 9,308,162
|
|
|
$ 7,752,400
|
|
|
$ 7,775,221
|
|
|
$ 6,182,589
|
|
|
$ 6,172,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
DDA
|
$ 4,921,398
|
28.5%
|
|
$ 4,142,042
|
26.9%
|
|
$ 4,108,835
|
26.9%
|
|
$ 3,368,357
|
27.0%
|
|
$ 3,283,082
|
26.0%
|
Interest-bearing
DDA
|
3,467,826
|
20.1%
|
|
3,446,375
|
22.3%
|
|
3,470,316
|
22.7%
|
|
2,366,997
|
19.0%
|
|
2,483,428
|
19.9%
|
Money
market
|
3,861,339
|
22.3%
|
|
3,468,016
|
22.4%
|
|
3,320,062
|
21.7%
|
|
2,834,172
|
22.8%
|
|
2,868,880
|
23.0%
|
Savings
|
1,707,645
|
9.9%
|
|
1,630,395
|
10.5%
|
|
1,571,504
|
10.3%
|
|
1,413,153
|
11.3%
|
|
1,371,214
|
11.0%
|
Certificates and
other time deposits
|
3,322,847
|
19.2%
|
|
2,773,229
|
17.9%
|
|
2,820,554
|
18.4%
|
|
2,473,120
|
19.9%
|
|
2,502,046
|
20.1%
|
Total
deposits
|
$ 17,281,055
|
|
|
$ 15,460,057
|
|
|
$ 15,291,271
|
|
|
$ 12,455,799
|
|
|
$ 12,508,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
53.9%
|
|
|
50.1%
|
|
|
50.8%
|
|
|
49.6%
|
|
|
49.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family
residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
construction
|
$ 316,579
|
31.2%
|
|
$ 292,137
|
32.6%
|
|
$ 271,491
|
30.9%
|
|
$ 239,980
|
33.5%
|
|
$ 234,257
|
32.9%
|
Land
development
|
88,947
|
8.8%
|
|
73,974
|
8.2%
|
|
83,820
|
9.6%
|
|
60,927
|
8.6%
|
|
63,857
|
9.0%
|
Raw land
|
62,731
|
6.2%
|
|
55,384
|
6.2%
|
|
48,996
|
5.6%
|
|
52,789
|
7.4%
|
|
59,701
|
8.4%
|
Residential
lots
|
138,769
|
13.7%
|
|
118,733
|
13.2%
|
|
122,449
|
14.0%
|
|
95,361
|
13.4%
|
|
91,018
|
12.8%
|
Commercial
lots
|
93,200
|
9.2%
|
|
99,300
|
11.1%
|
|
103,878
|
11.9%
|
|
58,085
|
8.2%
|
|
60,960
|
8.6%
|
Commercial
construction and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other
|
312,870
|
30.9%
|
|
257,942
|
28.7%
|
|
244,124
|
28.0%
|
|
204,940
|
28.9%
|
|
200,633
|
28.3%
|
Net unaccreted
discount
|
(7,997)
|
|
|
(8,485)
|
|
|
(9,247)
|
|
|
(8,889)
|
|
|
(15,841)
|
|
Total construction
loans
|
$ 1,005,099
|
|
|
$ 888,985
|
|
|
$ 865,511
|
|
|
$ 703,193
|
|
|
$ 694,585
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Jun 30,
2013
|
|
Jun 30,
2014
|
|
Jun 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
23,082
|
|
$
7,714
|
|
$
10,231
|
|
$
4,954
|
|
$
4,295
|
|
$
23,082
|
|
$
4,295
|
Accruing loans 90 or
more
|
|
|
|
|
|
|
|
|
|
|
|
|
|
days past
due
|
335
|
|
3,519
|
|
4,947
|
|
283
|
|
325
|
|
335
|
|
325
|
Total nonperforming
loans
|
23,417
|
|
11,233
|
|
15,178
|
|
5,237
|
|
4,620
|
|
$
23,417
|
|
4,620
|
Repossessed
assets
|
11
|
|
91
|
|
27
|
|
18
|
|
-
|
|
11
|
|
-
|
Other real
estate
|
5,093
|
|
7,372
|
|
7,299
|
|
7,432
|
|
10,244
|
|
5,093
|
|
10,244
|
Total
nonperforming assets
|
$
28,521
|
|
$
18,696
|
|
$
22,504
|
|
$
12,687
|
|
$
14,864
|
|
$
28,521
|
|
$
14,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
14,434
|
|
$
4,748
|
|
$
3,153
|
|
$
1,223
|
|
$
1,191
|
|
$
14,434
|
|
$
1,191
|
Construction, land
development and other land loans
|
2,449
|
|
4,053
|
|
4,558
|
|
4,611
|
|
5,898
|
|
2,449
|
|
5,898
|
1-4 family
residential (including home equity)
|
6,909
|
|
5,435
|
|
6,279
|
|
2,441
|
|
2,112
|
|
6,909
|
|
2,112
|
Commercial real
estate (including multi-family residential)
|
3,970
|
|
4,196
|
|
8,033
|
|
4,233
|
|
4,330
|
|
3,970
|
|
4,330
|
Agriculture
(including farmland)
|
140
|
|
104
|
|
279
|
|
23
|
|
1,213
|
|
140
|
|
1,213
|
Consumer and
other
|
619
|
|
160
|
|
202
|
|
156
|
|
120
|
|
619
|
|
120
|
Total
|
$
28,521
|
|
$
18,696
|
|
$
22,504
|
|
$
12,687
|
|
$
14,864
|
|
$
28,521
|
|
$
14,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
loans/properties
|
179
|
|
164
|
|
203
|
|
128
|
|
123
|
|
179
|
|
123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses at
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of
period
|
$
73,266
|
|
$
67,096
|
|
$
67,282
|
|
$
59,913
|
|
$
56,176
|
|
$
73,266
|
|
$
56,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
(64)
|
|
$
81
|
|
$
7
|
|
$
119
|
|
$
148
|
|
$
17
|
|
$
207
|
Construction, land
development and other land loans
|
115
|
|
(17)
|
|
(12)
|
|
(30)
|
|
124
|
|
98
|
|
68
|
1-4 family
residential (including home equity)
|
406
|
|
131
|
|
21
|
|
15
|
|
35
|
|
537
|
|
137
|
Commercial real
estate (including multi-family residential)
|
5
|
|
60
|
|
(311)
|
|
(471)
|
|
801
|
|
65
|
|
744
|
Agriculture
(including farmland)
|
(843)
|
|
(81)
|
|
(85)
|
|
13
|
|
13
|
|
(924)
|
|
6
|
Consumer and
other
|
536
|
|
612
|
|
876
|
|
642
|
|
302
|
|
1,148
|
|
576
|
Total
|
$
155
|
|
$
786
|
|
$
496
|
|
$
288
|
|
$
1,423
|
|
$
941
|
|
$
1,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average earning
assets
|
0.15%
|
|
0.11%
|
|
0.15%
|
|
0.09%
|
|
0.11%
|
|
0.16%
|
|
0.11%
|
Nonperforming assets
to loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other real
estate
|
0.31%
|
|
0.24%
|
|
0.29%
|
|
0.20%
|
|
0.24%
|
|
0.31%
|
|
0.24%
|
Net charge-offs
to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average loans
(annualized)
|
0.01%
|
|
0.04%
|
|
0.03%
|
|
0.02%
|
|
0.09%
|
|
0.02%
|
|
0.06%
|
Allowance for credit
losses to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
total loans
|
0.79%
|
|
0.87%
|
|
0.87%
|
|
0.97%
|
|
0.91%
|
|
0.79%
|
|
0.91%
|
Allowance for credit
losses to total loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(excluding acquired
loans accounted for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
under ASC Topics
310-20 and 310-30) (E)
|
1.15%
|
|
1.18%
|
|
1.25%
|
|
1.20%
|
|
1.18%
|
|
1.15%
|
|
1.18%
|
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,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Jun 30,
2013
|
|
Jun 30,
2014
|
|
Jun 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
75,506
|
|
$
67,137
|
|
$
62,971
|
|
$
55,278
|
|
$
53,844
|
|
$
142,643
|
|
$
103,149
|
Average shareholders'
equity
|
|
$
3,097,403
|
|
$
2,820,513
|
|
$
2,642,534
|
|
$
2,375,812
|
|
$
2,322,348
|
|
$
2,960,105
|
|
$
2,229,634
|
Less: Average
goodwill and other intangible assets
|
|
(1,842,003)
|
|
(1,711,970)
|
|
(1,591,546)
|
|
(1,377,174)
|
|
(1,357,461)
|
|
(1,777,346)
|
|
(1,304,811)
|
Average tangible shareholders' equity
|
|
$
1,255,400
|
|
$
1,108,543
|
|
$
1,050,988
|
|
$
998,638
|
|
$
964,887
|
|
$
1,182,759
|
|
$
924,823
|
Return on average
tangible common equity(D)
|
|
24.06%
|
|
24.23%
|
|
23.97%
|
|
22.14%
|
|
22.32%
|
|
24.12%
|
|
22.31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
$
3,120,594
|
|
$
2,840,754
|
|
$
2,786,818
|
|
$
2,389,112
|
|
$
2,345,282
|
|
$
3,120,594
|
|
$
2,345,282
|
Less: Goodwill and
other intangible assets
|
|
(1,931,342)
|
|
(1,711,706)
|
|
(1,712,121)
|
|
(1,377,015)
|
|
(1,377,522)
|
|
(1,931,342)
|
|
(1,377,522)
|
Tangible shareholders' equity
|
|
$
1,189,252
|
|
$
1,129,048
|
|
$
1,074,697
|
|
$
1,012,097
|
|
$
967,760
|
|
$
1,189,252
|
|
$
967,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
|
69,744
|
|
66,261
|
|
66,048
|
|
60,383
|
|
60,315
|
|
69,744
|
|
60,315
|
Tangible book value
per share:
|
|
$
17.05
|
|
$
17.04
|
|
$
16.27
|
|
$
16.76
|
|
$
16.05
|
|
$
17.05
|
|
$
16.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
shareholders' equity
|
|
$
1,189,252
|
|
$
1,129,048
|
|
$
1,074,697
|
|
$
1,012,097
|
|
$
967,760
|
|
$
1,189,252
|
|
$
967,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
21,248,106
|
|
$
18,913,133
|
|
$
18,642,028
|
|
$ 16,054,279
|
|
$
16,270,718
|
|
$
21,248,106
|
|
$
16,270,718
|
Less: Goodwill and
other intangible assets
|
|
(1,931,342)
|
|
(1,711,706)
|
|
(1,712,121)
|
|
(1,377,015)
|
|
(1,377,522)
|
|
(1,931,342)
|
|
(1,377,522)
|
Tangible assets
|
|
$
19,316,764
|
|
$
17,201,427
|
|
$
16,929,907
|
|
$ 14,677,264
|
|
$
14,893,196
|
|
$
19,316,764
|
|
$
14,893,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets ratio
|
|
6.16%
|
|
6.56%
|
|
6.35%
|
|
6.90%
|
|
6.50%
|
|
6.16%
|
|
6.50%
|
Prosperity Bancshares,
Inc.®
Notes to Selected Financial Data
(Unaudited)
(Dollars in thousands)
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Jun 30,
2013
|
|
|
|
|
|
|
|
Allowance for
credit losses to total loans, excluding acquired
loans:
|
|
|
|
|
|
|
Allowance for credit
losses
|
|
$
73,266
|
|
$
67,096
|
|
$
56,176
|
Total
loans
|
|
$
9,308,162
|
|
$
7,752,400
|
|
$
6,172,483
|
Less: Fair value of
acquired loans accounted for under ASC
|
|
|
|
|
|
|
Topics 310-20
and 310-30 (does not include new production)
|
|
$
2,948,999
|
|
$
2,086,744
|
|
$
1,418,489
|
Total loans less
acquired loans
|
|
$
6,359,163
|
|
$
5,665,656
|
|
$
4,753,994
|
Allowance for credit
losses to total loans, excluding
|
|
|
|
|
|
|
acquired loans
(non-GAAP basis)
|
|
1.15%
|
|
1.18%
|
|
1.18%
|
SOURCE Prosperity Bancshares, Inc.