HOUSTON, Oct. 29, 2014 /PRNewswire/ -- Prosperity
Bancshares, Inc.® (NYSE: PB), the parent company of
Prosperity Bank® (collectively, "Prosperity"), reported
net income for the quarter ended September
30, 2014, of $76.570 million
or $1.10 per diluted common share, an
increase in net income of $21.292
million or 38.5%, compared with $55.278 million, and an increase in diluted
earnings per share of 20.9%, compared with $0.91 per diluted common share for the same
period in 2013.
"It is an honor and a pleasure for me to be able to share such
positive news with our shareholders. We continue to see strong
organic loan growth. Excluding loans acquired in our recent
acquisitions and new production at the acquired banking centers
since the respective acquisition dates, loans at September 30, 2014 grew $405.687 million or 6.6% compared with
September 30, 2013 and increased
$207.345 million or 3.2% (13.0%
annualized) on a linked quarter basis," said David Zalman, Prosperity's Chairman and Chief
Executive Officer.
"Strong asset quality continues to be one of the core values and
principles of our company. Nonperforming assets totaled
$50.082 million or 0.27% of quarterly
average earning assets at September 30,
2014. While the increase in nonperforming assets from 0.15%
of quarterly average earning assets at June
30, 2014 is significant, it was not unexpected as most of
the loans added to nonperforming assets this quarter were
identified and marked in our due diligence at one of the recently
acquired banks. While the majority of these loans were
nonperforming, several are related to renewals that have been
delayed due to documentation or procedural issues. At the
date of this release, approximately $16.5
million of these loans are expected to be paid off, moved or
renewed, but there are no guarantees that such payoffs and renewals
will occur. We believe that for the next 12 to 18 months we
will have a nonperforming ratio similar to the one this quarter,"
continued Zalman.
"The Texas and Oklahoma economies continued to expand during
the first nine months of 2014. Employment growth and
population growth continues to outpace the majority of the
nation. Texas had the
highest rate of job creation in the country, with 375,000 jobs
created in the past year. The unemployment rate for
Texas is 5.1% and the unemployment
rate for Oklahoma is 4.6%, while
the rate for the rest of the nation is 6.2%. With continued
strength in home sales, lower apartment and office vacancy rates,
and increasing rental rates, the general economic outlook remains
positive for the remainder of 2014," 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 September 30, 2014
For the three months ended September 30,
2014, net income was $76.570
million compared with $55.278
million for the same period in 2013. Net income per
diluted common share was $1.10 for
the three months ended September 30,
2014, compared with $0.91 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 three months ended September
30, 2014 were 1.45%, 9.69% and 24.84%, respectively.
Prosperity's efficiency ratio (excluding credit loss provisions,
net gains and losses on the sale of assets and securities and
taxes) was 41.55% for the three months ended September 30, 2014.
Net interest income before provision for credit losses for the
quarter ended September 30, 2014
increased 38.8% to $175.657 million,
compared with $126.533 million during
the same period in 2013. The increase was primarily due to a
28.8% increase in average interest-earning assets for the same
period. The net interest margin on a tax equivalent basis for
the three months ended September 30,
2014 increased to 3.85%, compared with 3.59% for the same
period in 2013 and increased from 3.83% for the three months ended
June 30, 2014. Linked quarter
net interest income before provision for credit losses increased
0.9% or $1.602 million to
$175.657 million, compared with
$174.055 million during the three
months ended June 30, 2014. Excluding
purchase accounting adjustments, the net interest margin on a tax
equivalent basis decreased on a linked quarter basis from 3.31% for
the quarter ended June 30, 2014 to
3.26% for the quarter ended September
30, 2014.
Noninterest income increased $8.607
million or 39.9% to $30.161
million for the three months ended September 30, 2014, compared with $21.554 million for the same period in
2013. This increase was primarily due to an increase in fees,
credit and debit card income, and service charges as a result of
the additional accounts acquired from F&M Bancorporation Inc.
and its wholly-owned subsidiary, The F&M Bank & Trust
Company (collectively, "F&M") and FVNB Corp. and its
wholly-owned subsidiary, First Victoria National Bank
(collectively, "FVNB"). Additionally, trust and brokerage
income increased as a result of the additional products and
services acquired through the acquisition of FVNB in the fourth
quarter 2013. On a linked quarter basis, noninterest income
decreased $3.840 million or 11.3%,
primarily due to decreases in gains on sale of fixed assets and
other real estate, and a decrease in life insurance proceeds
received during the second quarter 2014. This decrease was
partially offset by an increase in NSF fees for the three months
ended September 30, 2014.
Noninterest expense increased $23.973
million or 39.0% to $85.510
million for the three months ended September 30, 2014, compared with $61.537 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
decreased $3.186 million or 3.6%.
This decrease was primarily due to a decline in salary and benefits
expense resulting from a reduction in staff from 3,199 FTE's at
June 30, 2014 to 3,057 FTE's at
September 30, 2014.
Loans at September 30, 2014 were
$9.369 billion, an increase of
$3.186 billion or 51.5%, compared
with $6.183 billion at September 30, 2013, primarily due to the
acquisitions of FVNB and F&M. Linked quarter loans
increased $60.726 million or 0.7%
from $9.308 billion at June 30, 2014.
Deposits at September 30, 2014
were $17.014 billion, an increase of
$4.558 billion or 36.6%, compared
with $12.456 billion at September 30, 2013, primarily due to the
acquisitions of FVNB and F&M. Linked quarter deposits
decreased $267.028 million or 1.5%
from $17.281 billion at June 30, 2014.
Average loans increased 52.0% or $3.208
billion to $9.381 billion for
the quarter ended September 30, 2014,
compared with $6.173 billion for the
same period in 2013. On a linked quarter basis, average loans
decreased 0.9% or $86.888 million
from $9.468 billion for the quarter
ended June 30, 2014. Average deposits
increased 37.4% or $4.644 billion to
$17.077 billion for the quarter ended
September 30, 2014, compared with
$12.432 billion for the same period
in 2013. On a linked quarter basis, average deposits
decreased 0.5% or $87.293 million
from $17.164 billion for the quarter
ended June 30, 2014.
Results of operations for the nine months ended September 30, 2014
For the nine months ended September 30,
2014, net income was $219.213
million, compared with $158.427
million for the same period in 2013. Net income per
diluted common share was $3.19 for
the nine months ended September 30,
2014, compared with $2.67 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 nine months ended September 30, 2014 were 1.44%, 9.67% and 24.38%,
respectively. Prosperity's efficiency ratio (excluding credit
loss provisions, net gains and losses on the sale of assets and
securities and taxes) was 42.17% for the nine months ended
September 30, 2014.
Net interest income before provision for credit losses for the
nine months ended September 30, 2014,
increased 39.6% to $493.403 million,
compared with $353.357 million during
the same period in 2013. The increase was primarily due to a
28.3% increase in average interest-earning assets over the same
period. The net interest margin on a tax equivalent basis for
the nine months ended September 30,
2014 increased to 3.77%, compared with 3.48% for the same
period in 2013. Excluding purchase accounting adjustments,
the net interest margin on a tax equivalent basis increased to
3.30% for the nine months ended September
30, 2014 from 3.13% for the same period in 2013.
Noninterest income increased $22.497
million or 32.0% to $92.766
million for the nine months ended September 30, 2014, compared with $70.269 million for the same period in
2013. This increase was primarily due to the effects of the
additional accounts acquired in the acquisitions of FVNB and
F&M completed in 2013 and 2014. 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 $4.7
million during the nine months ended September 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
Bancshares, Inc. and its wholly-owned subsidiary, Coppermark
Bank.
Noninterest expense increased $66.636
million or 37.3% to $245.240
million for the nine months ended September 30, 2014, compared with $178.604 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. Additionally, total noninterest expense for the nine
months ended September 30, 2014
included one-time pre-tax merger expenses of $3.096 million related primarily to the F&M
and FVNB acquisitions.
Average loans increased $3.020
billion or 51.6% to $8.874
billion for the nine months ended September 30, 2014, compared with $5.854 billion for the same period in 2013.
Average deposits increased $4.253
billion or 34.6% to $16.547
billion for the nine months ended September 30, 2014, compared with $12.294 billion for the same period of
2013.
The table below provides detail on loans acquired and deposits
assumed in the acquisitions of FVNB and F&M completed on
November 1, 2013 and April 1, 2014, respectively:
Balance Sheet Data
(at period end)
|
(In
thousands)
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Loans acquired
(including new production since respective acquisition
dates):
|
|
|
|
|
|
|
|
|
|
FVNB
|
$ 1,329,537
|
|
$ 1,424,395
|
|
$ 1,509,927
|
|
$ 1,588,238
|
|
$
-
|
F&M
|
1,451,075
|
|
1,502,836
|
|
-
|
|
-
|
|
-
|
All other
loans
|
6,588,276
|
|
6,380,931
|
|
6,242,473
|
|
6,186,983
|
|
6,182,589
|
Total
loans
|
$ 9,368,888
|
|
$ 9,308,162
|
|
$ 7,752,400
|
|
$ 7,775,221
|
|
$ 6,182,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits assumed
(including new deposits since respective acquisition
dates):
|
|
|
|
|
|
|
|
|
|
FVNB
|
$ 2,102,722
|
|
$ 2,105,120
|
|
$ 2,164,824
|
|
$ 2,239,415
|
|
$
-
|
F&M
|
1,905,233
|
|
2,090,468
|
|
-
|
|
-
|
|
-
|
All other
deposits
|
13,006,072
|
|
13,085,467
|
|
13,295,233
|
|
13,051,856
|
|
12,455,799
|
Total
deposits
|
$ 17,014,027
|
|
$ 17,281,055
|
|
$ 15,460,057
|
|
$ 15,291,271
|
|
$ 12,455,799
|
As reflected in the table above, loan and deposit growth was
impacted by the acquisitions of 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 September 30, 2014 grew
$405.687 million or 6.6% compared
with September 30, 2013 and increased
$207.345 million or 3.2% (13.0%
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
September 30, 2014 grew $550.273 million or 4.4% compared with
September 30, 2013 and decreased
$79.395 million or 0.6% on a linked
quarter basis.
At September 30, 2014, Prosperity
had $21.117 billion in total assets,
$9.369 billion in loans and
$17.014 billion in deposits. Assets,
loans and deposits at September 30,
2014 increased by 31.5%, 51.5% and 36.6%, respectively,
compared with their respective levels at September 30, 2013.
Asset Quality
Nonperforming assets totaled $50.082
million or 0.27% of quarterly average earning assets at
September 30, 2014, compared with
$12.687 million or 0.09% of quarterly
average earning assets at September 30,
2013, and $28.521 million or
0.15% of quarterly average earning assets at June 30, 2014. The allowance for credit
losses was 0.83% of total loans at September
30, 2014, 0.97% of total loans at September 30, 2013 and 0.79% of total loans at
June 30, 2014. Excluding loans
acquired that are accounted for under ASC Topics 310-20 and 310-30,
the allowance for credit losses was 1.14% of remaining loans as of
September 30, 2014, compared with
1.20% at September 30, 2013 and 1.15%
at June 30, 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 $5.000 million for the three months ended
September 30, 2014, compared with
$6.325 million for the three months
ended June 30, 2014 and $4.025 million for the three months ended
September 30, 2013. The
provision for credit losses was $11.925
million for the nine months ended September 30, 2014, compared with $9.375 million for the nine months ended
September 30, 2013.
Net charge offs were $653 thousand
for the three months ended September 30,
2014, compared with $155
thousand for the three months ended June 30, 2014 and $288
thousand for the three months ended September 30, 2013. Net charge offs were
$1.594 million for the nine months
ended September 30, 2014, compared
with $2.026 million for the nine
months ended September 30, 2013.
Conference Call
Prosperity's management team will host a conference call on
Wednesday, October 29, 2014 at
10:30 a.m. Eastern Time (9:30 a.m. Central Time) to discuss Prosperity's
third quarter 2014 earnings. Individuals and investment
professionals may participate in the call by dialing
877-883-0383. The elite entry number is 1373203.
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.
Dividend
Prosperity Bancshares declared a fourth quarter cash dividend of
$0.2725, an increase of 13.5% over
the third quarter dividend of $0.24,
to be paid on January 2, 2015 to all
shareholders of record as of December 15,
2014.
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 Bank") 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 $214.897 million as of
September 30, 2014. The
goodwill balance as of September 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 Corp., 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 $328.762 million as of
September 30, 2014.
Additionally, the Company recognized $18.411
million of core deposit intangibles as of September 30, 2014. These goodwill and core
deposit intangible balances as of September
30, 2014 do not include subsequent fair value adjustments
that are still being finalized.
Prosperity Bancshares, Inc. ®
As of September 30, 2014,
Prosperity Bancshares Inc. ®, named America's Best Bank
for 2014 by Forbes, is a $21.117
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
245 full-service banking locations: 62 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 36 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
|
Kiest
|
Gladebrook
|
Gonzales
|
Harvard
|
McKinney
|
Heights
|
Hallettsville
|
Memorial
|
McKinney-Stonebridge
|
Highway 6
West
|
Kingsville
|
Owasso
|
Midway
|
Little
York
|
Mathis
|
Sheridan
|
Northwest Highway
|
Medical
Center
|
Padre
Island
|
S. Harvard
|
Plano
|
Memorial
Drive
|
Palacios
|
Utica
Square
|
Preston Forest
|
Northside
|
Port
Lavaca
|
Utica
Tower
|
Preston Road
|
Pasadena
|
Portland
|
Yale
|
Red Oak
|
Pecan
Grove
|
Rockport
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
Balance Sheet
Data
|
|
|
|
|
|
|
|
|
|
(at period
end)
|
|
|
|
|
|
|
|
Total
loans
|
$ 9,368,888
|
|
$ 9,308,162
|
|
$
7,752,400
|
|
$ 7,775,221
|
|
$ 6,182,589
|
Investment
securities(A)
|
8,845,909
|
|
8,851,235
|
|
8,561,337
|
|
8,224,448
|
|
7,771,345
|
Federal funds
sold
|
484
|
|
3,630
|
|
382
|
|
400
|
|
1,121
|
Allowance for credit
losses
|
(77,613)
|
|
(73,266)
|
|
(67,096)
|
|
(67,282)
|
|
(59,913)
|
Cash and due from
banks
|
330,952
|
|
509,853
|
|
349,860
|
|
380,990
|
|
269,987
|
Goodwill
|
1,892,255
|
|
1,894,270
|
|
1,672,004
|
|
1,671,520
|
|
1,351,782
|
Core deposit
intangibles, net
|
34,474
|
|
37,072
|
|
39,702
|
|
42,049
|
|
25,233
|
Other real estate
owned
|
5,504
|
|
5,093
|
|
7,372
|
|
7,299
|
|
7,432
|
Fixed assets,
net
|
283,011
|
|
285,751
|
|
280,812
|
|
282,925
|
|
232,240
|
Other
assets
|
433,450
|
|
426,306
|
|
316,360
|
|
324,458
|
|
272,463
|
Total
assets
|
$ 21,117,314
|
|
$ 21,248,106
|
|
$ 18,913,133
|
|
$ 18,642,028
|
|
$ 16,054,279
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$ 4,968,867
|
|
$ 4,921,398
|
|
$
4,142,042
|
|
$ 4,108,835
|
|
$ 3,368,357
|
Interest-bearing
deposits
|
12,045,160
|
|
12,359,657
|
|
11,318,015
|
|
11,182,436
|
|
9,087,442
|
Total
deposits
|
17,014,027
|
|
17,281,055
|
|
15,460,057
|
|
15,291,271
|
|
12,455,799
|
Securities sold
under repurchase
agreements
|
|
|
|
|
|
|
|
|
|
358,053
|
|
388,342
|
|
349,074
|
|
364,357
|
|
431,969
|
Other
borrowings
|
289,972
|
|
200,210
|
|
40,451
|
|
10,689
|
|
605,951
|
Junior subordinated
debentures
|
167,531
|
|
167,531
|
|
124,231
|
|
124,231
|
|
85,055
|
Other
liabilities
|
104,781
|
|
90,374
|
|
98,566
|
|
64,662
|
|
86,393
|
Total
liabilities
|
17,934,364
|
|
18,127,512
|
|
16,072,379
|
|
15,855,210
|
|
13,665,167
|
Shareholders'
equity(B)
|
3,182,950
|
|
3,120,594
|
|
2,840,754
|
|
2,786,818
|
|
2,389,112
|
Total liabilities and
equity
|
$ 21,117,314
|
|
$ 21,248,106
|
|
$ 18,913,133
|
|
$ 18,642,028
|
|
$ 16,054,279
|
|
|
(A)
|
Includes $5,756,
$6,706, $7,023, $7,512 and $8,588 in unrealized gains on available
for sale securities for the quarterly periods ending September 30,
2014, June 30, 2014, March 31, 2014, December 31, 2013 and
September 30, 2013, respectively.
|
(B)
|
Includes $3,741,
$4,359, $4,565, $4,883 and $5,582 in after-tax unrealized gains on
available for sale securities for the quarterly periods ending
September 30, 2014, June 30, 2014, March 31, 2014, December 31,
2013 and September 30, 2013, respectively.
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Sep 30,
2014
|
|
Sep 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$ 140,521
|
|
$ 138,655
|
|
$
107,144
|
|
$ 110,575
|
|
$
94,236
|
|
$ 386,320
|
|
$ 265,542
|
Securities(C)
|
46,910
|
|
47,670
|
|
47,056
|
|
45,100
|
|
41,961
|
|
141,636
|
|
117,893
|
Federal funds sold
and other earning assets
|
35
|
|
178
|
|
48
|
|
76
|
|
16
|
|
261
|
|
111
|
Total interest
income
|
187,466
|
|
186,503
|
|
154,248
|
|
155,751
|
|
136,213
|
|
528,217
|
|
383,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
10,240
|
|
10,918
|
|
9,387
|
|
9,048
|
|
8,314
|
|
30,545
|
|
26,174
|
Securities sold under
repurchase agreements
|
245
|
|
254
|
|
237
|
|
280
|
|
317
|
|
736
|
|
921
|
Junior subordinated
debentures
|
1,099
|
|
1,087
|
|
775
|
|
730
|
|
610
|
|
2,961
|
|
1,821
|
Other
borrowings
|
225
|
|
189
|
|
158
|
|
224
|
|
439
|
|
572
|
|
1,273
|
Total interest
expense
|
11,809
|
|
12,448
|
|
10,557
|
|
10,282
|
|
9,680
|
|
34,814
|
|
30,189
|
Net interest
income
|
175,657
|
|
174,055
|
|
143,691
|
|
145,469
|
|
126,533
|
|
493,403
|
|
353,357
|
Provision for credit
losses
|
5,000
|
|
6,325
|
|
600
|
|
7,865
|
|
4,025
|
|
11,925
|
|
9,375
|
Net interest income
after provision for credit losses
|
170,657
|
|
167,730
|
|
143,091
|
|
137,604
|
|
122,508
|
|
481,478
|
|
343,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds
(NSF) fees
|
9,734
|
|
9,099
|
|
8,870
|
|
9,669
|
|
8,649
|
|
27,703
|
|
25,504
|
Credit card, debit
card and ATM card income
|
5,921
|
|
6,030
|
|
5,152
|
|
4,662
|
|
4,307
|
|
17,103
|
|
17,801
|
Service charges on
deposit accounts
|
4,255
|
|
4,325
|
|
3,609
|
|
3,460
|
|
3,169
|
|
12,189
|
|
9,404
|
Trust
income
|
2,099
|
|
2,044
|
|
1,800
|
|
1,542
|
|
901
|
|
5,943
|
|
2,814
|
Mortgage
income
|
1,414
|
|
1,208
|
|
593
|
|
549
|
|
931
|
|
3,215
|
|
3,489
|
Brokerage
income
|
1,743
|
|
1,401
|
|
1,269
|
|
719
|
|
233
|
|
4,413
|
|
798
|
Bank owned life
insurance income
|
1,404
|
|
1,365
|
|
1,028
|
|
1,011
|
|
916
|
|
3,797
|
|
2,624
|
Net gain (loss) on
sale of assets
|
23
|
|
1,301
|
|
3,310
|
|
40
|
|
126
|
|
4,634
|
|
(53)
|
Net gain (loss) on
sale of other real estate
|
(30)
|
|
1,404
|
|
(60)
|
|
196
|
|
(864)
|
|
1,314
|
|
(732)
|
Other noninterest
income
|
3,598
|
|
5,824
|
|
3,033
|
|
3,310
|
|
3,186
|
|
12,455
|
|
8,620
|
Total noninterest
income
|
30,161
|
|
34,001
|
|
28,604
|
|
25,158
|
|
21,554
|
|
92,766
|
|
70,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
52,179
|
|
54,126
|
|
43,408
|
|
40,633
|
|
37,135
|
|
149,713
|
|
107,861
|
Net occupancy and
equipment
|
6,801
|
|
5,996
|
|
5,339
|
|
4,893
|
|
5,094
|
|
18,136
|
|
14,041
|
Debit card, data
processing and software amortization
|
4,044
|
|
4,009
|
|
3,184
|
|
3,333
|
|
2,756
|
|
11,237
|
|
8,575
|
Regulatory
assessments and FDIC insurance
|
4,051
|
|
3,886
|
|
2,726
|
|
2,771
|
|
2,516
|
|
10,663
|
|
7,490
|
Core deposit
intangibles amortization
|
2,598
|
|
2,630
|
|
2,045
|
|
1,594
|
|
1,455
|
|
7,273
|
|
4,551
|
Depreciation
|
3,516
|
|
3,522
|
|
3,201
|
|
3,072
|
|
2,679
|
|
10,239
|
|
7,521
|
Communications
|
2,960
|
|
2,919
|
|
2,737
|
|
2,468
|
|
2,397
|
|
8,616
|
|
7,003
|
Other real estate
expense
|
72
|
|
188
|
|
396
|
|
176
|
|
75
|
|
656
|
|
535
|
Other noninterest
expense
|
9,289
|
|
11,420
|
|
7,998
|
|
9,652
|
|
7,430
|
|
28,707
|
|
21,027
|
Total noninterest
expense
|
85,510
|
|
88,696
|
|
71,034
|
|
68,592
|
|
61,537
|
|
245,240
|
|
178,604
|
Income before income
taxes
|
115,308
|
|
113,035
|
|
100,661
|
|
94,170
|
|
82,525
|
|
329,004
|
|
235,647
|
Provision for income
taxes
|
38,738
|
|
37,529
|
|
33,524
|
|
31,199
|
|
27,247
|
|
109,791
|
|
77,220
|
Net income available
to common shareholders
|
$
76,570
|
|
$
75,506
|
|
$
67,137
|
|
$
62,971
|
|
$
55,278
|
|
$ 219,213
|
|
$ 158,427
|
|
|
(C)
|
Interest income on
securities was reduced by net premium amortization of $13,531,
$12,837, $12,280, $12,017 and $15,136 for the three month periods
ended September 30, 2014, June 30, 2014, March 31, 2014, December
31, 2013 and September 30, 2013, respectively, and $38,648 and
$56,685 for the nine month periods ended September 30, 2014 and
September 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
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Sep 30,
2014
|
|
Sep 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
76,570
|
|
$
75,506
|
|
$
67,137
|
|
$
62,971
|
|
$
55,278
|
|
$ 219,213
|
|
$ 158,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
1.10
|
|
$
1.08
|
|
$
1.01
|
|
$
0.98
|
|
$
0.92
|
|
$
3.20
|
|
$
2.68
|
Diluted earnings per
share
|
$
1.10
|
|
$
1.08
|
|
$
1.01
|
|
$
0.98
|
|
$
0.91
|
|
$
3.19
|
|
$
2.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(D)
|
1.45%
|
|
1.42%
|
|
1.43%
|
|
1.42%
|
|
1.37%
|
|
1.44%
|
|
1.33%
|
Return on average
common equity(D)
|
9.69%
|
|
9.75%
|
|
9.52%
|
|
9.53%
|
|
9.31%
|
|
9.67%
|
|
9.29%
|
Return on average
tangible common equity(D) (E)
|
24.84%
|
|
24.06%
|
|
24.23%
|
|
23.97%
|
|
22.14%
|
|
24.38%
|
|
22.21%
|
Tax equivalent net
interest margin(F)
|
3.85%
|
|
3.83%
|
|
3.62%
|
|
3.82%
|
|
3.59%
|
|
3.77%
|
|
3.48%
|
Efficiency
ratio(G)
|
41.55%
|
|
42.90%
|
|
42.04%
|
|
40.21%
|
|
41.59%
|
|
42.17%
|
|
42.16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
15.07%
|
|
14.69%
|
|
15.02%
|
|
14.95%
|
|
14.88%
|
|
15.07%
|
|
14.88%
|
Tier 1 risk-based
capital
|
13.18%
|
|
12.50%
|
|
13.85%
|
|
13.29%
|
|
14.74%
|
|
13.18%
|
|
14.74%
|
Total risk-based
capital
|
13.90%
|
|
13.18%
|
|
14.59%
|
|
14.03%
|
|
15.55%
|
|
13.90%
|
|
15.55%
|
Tier 1 leverage
capital
|
7.40%
|
|
6.98%
|
|
7.30%
|
|
7.44%
|
|
7.37%
|
|
7.40%
|
|
7.37%
|
Tangible equity to
tangible assets(E)
|
6.55%
|
|
6.16%
|
|
6.56%
|
|
6.35%
|
|
6.90%
|
|
6.55%
|
|
6.90%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computed earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
69,751
|
|
69,667
|
|
66,186
|
|
64,024
|
|
60,344
|
|
68,548
|
|
59,207
|
Diluted
|
69,791
|
|
69,728
|
|
66,280
|
|
64,173
|
|
60,504
|
|
68,614
|
|
59,362
|
Period end shares
outstanding
|
69,756
|
|
69,744
|
|
66,261
|
|
66,048
|
|
60,383
|
|
69,756
|
|
60,383
|
Cash dividends paid
per common share
|
$
0.240
|
|
$
0.240
|
|
$
0.240
|
|
$
0.240
|
|
$
0.215
|
|
$
0.720
|
|
$
0.645
|
Book value per
share
|
$
45.63
|
|
$
44.74
|
|
$
42.87
|
|
$
42.19
|
|
$
39.57
|
|
$
45.63
|
|
$
39.57
|
Tangible book value
per share(E)
|
$
18.01
|
|
$
17.05
|
|
$
17.04
|
|
$
16.27
|
|
$
16.76
|
|
$
18.01
|
|
$
16.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
$
63.73
|
|
$
67.49
|
|
$
67.68
|
|
$
65.49
|
|
$
62.00
|
|
$
67.68
|
|
$
61.99
|
Low
|
55.99
|
|
56.04
|
|
59.75
|
|
61.18
|
|
51.85
|
|
55.99
|
|
42.38
|
Period end closing
price
|
57.17
|
|
62.60
|
|
66.15
|
|
63.39
|
|
61.84
|
|
57.17
|
|
61.84
|
Employees –
FTE
|
3,057
|
|
3,199
|
|
2,888
|
|
2,995
|
|
2,454
|
|
3,057
|
|
2,454
|
Number of banking
centers
|
245
|
|
247
|
|
236
|
|
238
|
|
218
|
|
245
|
|
218
|
|
|
(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
|
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Sep 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
|
$ 9,381,248
|
|
$ 140,521
|
|
5.94%
|
|
$ 9,468,136
|
|
$ 138,655
|
|
5.87%
|
|
$ 6,173,394
|
|
$ 94,236
|
|
6.06%
|
|
Investment
securities
|
8,836,309
|
|
46,910
|
|
2.11%
|
(H)
|
8,748,322
|
|
47,670
|
|
2.19%
|
(H)
|
8,015,221
|
|
41,961
|
|
2.08%
|
(H)
|
Federal funds sold
and other earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95,378
|
|
35
|
|
0.15%
|
|
234,302
|
|
178
|
|
0.30%
|
|
27,451
|
|
16
|
|
0.22%
|
|
Total interest-earning
assets
|
18,312,935
|
|
$ 187,466
|
|
4.06%
|
|
18,450,760
|
|
$ 186,503
|
|
4.05%
|
|
14,216,066
|
|
$ 136,213
|
|
3.80%
|
|
Allowance for credit
losses
|
(73,977)
|
|
|
|
|
|
(72,587)
|
|
|
|
|
|
(56,765)
|
|
|
|
|
|
Noninterest-earning
assets
|
2,881,762
|
|
|
|
|
|
2,939,375
|
|
|
|
|
|
2,034,968
|
|
|
|
|
|
Total
assets
|
$ 21,120,720
|
|
|
|
|
|
$ 21,317,548
|
|
|
|
|
|
$ 16,194,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$ 3,399,655
|
|
$ 2,089
|
|
0.24%
|
|
$ 3,568,475
|
|
$ 2,272
|
|
0.26%
|
|
$ 2,400,555
|
|
$ 1,708
|
|
0.28%
|
|
Savings and money
market deposits
|
5,502,326
|
|
3,400
|
|
0.25%
|
|
5,479,978
|
|
3,550
|
|
0.26%
|
|
4,233,911
|
|
2,911
|
|
0.27%
|
|
Certificates and
other time deposits
|
3,235,185
|
|
4,751
|
|
0.58%
|
|
3,379,819
|
|
5,096
|
|
0.60%
|
|
2,489,848
|
|
3,695
|
|
0.59%
|
|
Securities sold under
repurchase agreements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
389,726
|
|
245
|
|
0.25%
|
|
382,692
|
|
254
|
|
0.27%
|
|
455,276
|
|
317
|
|
0.28%
|
|
Junior subordinated
debentures
|
167,531
|
|
1,099
|
|
2.60%
|
|
167,531
|
|
1,087
|
|
2.60%
|
|
85,055
|
|
610
|
|
2.85%
|
|
Other
borrowings
|
215,222
|
|
225
|
|
0.42%
|
|
140,906
|
|
189
|
|
0.54%
|
|
772,083
|
|
439
|
|
0.23%
|
|
Total interest-bearing
liabilities
|
12,909,645
|
|
$ 11,809
|
|
0.36%
|
(I)
|
13,119,401
|
|
$ 12,448
|
|
0.38%
|
(I)
|
10,436,728
|
|
$ 9,680
|
|
0.37%
|
(I)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
4,939,388
|
|
|
|
|
|
4,735,575
|
|
|
|
|
|
3,308,158
|
|
|
|
|
|
Other
liabilities
|
109,287
|
|
|
|
|
|
365,169
|
|
|
|
|
|
73,571
|
|
|
|
|
|
Total
liabilities
|
17,958,320
|
|
|
|
|
|
18,220,145
|
|
|
|
|
|
13,818,457
|
|
|
|
|
|
Shareholders'
equity
|
3,162,400
|
|
|
|
|
|
3,097,403
|
|
|
|
|
|
2,375,812
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 21,120,720
|
|
|
|
|
|
$ 21,317,548
|
|
|
|
|
|
$ 16,194,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and margin
|
|
|
$ 175,657
|
|
3.81%
|
|
|
|
$ 174,055
|
|
3.78%
|
|
|
|
$ 126,533
|
|
3.53%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
1,997
|
|
|
|
|
|
2,083
|
|
|
|
|
|
2,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and margin (tax equivalent
basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 177,654
|
|
3.85%
|
|
|
|
$ 176,138
|
|
3.83%
|
|
|
|
$ 128,561
|
|
3.59%
|
|
|
|
(H)
|
Yield on
securities was impacted by net premium amortization of $13,531,
$12,837 and $15,136 for the three month periods ended September 30,
2014, June 30, 2014 and September 30, 2013,
respectively.
|
(I)
|
Total cost
of funds, including noninterest-bearing deposits, was 0.26%, 0.28%
and 0.28% for the three months ended September 30, 2014, June 30,
2014 and September 30, 2013,
respectively.
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD
ANALYSIS
|
Year-to-Date
|
|
|
Sep 30,
2014
|
|
Sep 30,
2013
|
|
|
Average
Balance
|
|
Interest Earned/
Interest Paid
|
|
Average Yield/
Rate
|
|
Average
Balance
|
|
Interest Earned/
Interest Paid
|
|
Average Yield/
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$ 8,874,414
|
|
$386,320
|
|
5.82%
|
|
$ 5,853,924
|
|
$265,542
|
|
6.06%
|
|
Investment
securities
|
8,685,212
|
|
141,636
|
|
2.18%
|
(J)
|
7,912,599
|
|
117,893
|
|
1.99%
|
(J)
|
Federal funds sold
and other earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
143,770
|
|
261
|
|
0.24%
|
|
32,426
|
|
111
|
|
0.46%
|
|
Total
interest-earning assets
|
17,703,396
|
|
$528,217
|
|
3.99%
|
|
13,798,949
|
|
$383,546
|
|
3.72%
|
|
Allowance for credit
losses
|
(71,287)
|
|
|
|
|
|
(55,933)
|
|
|
|
|
|
Noninterest-earning
assets
|
2,791,827
|
|
|
|
|
|
2,000,425
|
|
|
|
|
|
Total
assets
|
$ 20,423,936
|
|
|
|
|
|
$ 15,743,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$ 3,506,932
|
|
$ 6,493
|
|
0.25%
|
|
$ 2,545,983
|
|
$ 6,018
|
|
0.32%
|
|
Savings and money
market deposits
|
5,326,783
|
|
10,105
|
|
0.25%
|
|
4,096,889
|
|
8,912
|
|
0.29%
|
|
Certificates and
other time deposits
|
3,145,435
|
|
13,947
|
|
0.59%
|
|
2,468,518
|
|
11,244
|
|
0.61%
|
|
Securities sold under
repurchase agreements
|
|
|
|
|
|
|
|
|
|
|
|
|
373,542
|
|
737
|
|
0.26%
|
|
458,441
|
|
921
|
|
0.27%
|
|
Junior subordinated
debentures
|
150,692
|
|
2,961
|
|
2.63%
|
|
85,055
|
|
1,821
|
|
2.86%
|
|
Other
borrowings
|
136,618
|
|
571
|
|
0.56%
|
|
558,594
|
|
1,273
|
|
0.30%
|
|
Total interest
bearing liabilities
|
12,640,002
|
|
$ 34,814
|
|
0.37%
|
(K)
|
10,213,480
|
|
$ 30,189
|
|
0.40%
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
4,567,397
|
|
|
|
|
|
3,182,349
|
|
|
|
|
|
Other
liabilities
|
185,838
|
|
|
|
|
|
68,721
|
|
|
|
|
|
Total
liabilities
|
17,393,237
|
|
|
|
|
|
13,464,550
|
|
|
|
|
|
Shareholders'
equity
|
3,030,699
|
|
|
|
|
|
2,278,891
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$ 20,423,936
|
|
|
|
|
|
$ 15,743,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and margin
|
|
|
$493,403
|
|
3.73%
|
|
|
|
$353,357
|
|
3.42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
6,132
|
|
|
|
|
|
6,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and margin (tax equivalent
basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$499,535
|
|
3.77%
|
|
|
|
$359,573
|
|
3.48%
|
|
|
|
(J)
|
Yield on
securities was impacted by net premium amortization of $38,648 and
$56,685 for the nine month periods ended September 30, 2014 and
September 30, 2013, respectively.
|
(K)
|
Total cost of
funds, including noninterest-bearing deposits, was 0.27% and 0.30%
for the nine month periods ended September 30, 2014 and September
30, 2013, respectively.
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Sep 30,
2014
|
|
Sep 30,
2013
|
Adjustment to Loan
Yield (L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on loans, as
reported
|
$ 140,521
|
|
$ 138,655
|
|
$
107,144
|
|
$ 110,575
|
|
$
94,236
|
|
$ 386,320
|
|
$ 265,542
|
Remove
purchase accounting adjustment-loan discount accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(28,458)
|
|
(25,352)
|
|
(13,475)
|
|
(19,979)
|
|
(16,421)
|
|
(67,285)
|
|
(42,744)
|
Interest on loans
without discount accretion
|
$ 112,063
|
|
$ 113,303
|
|
$
93,669
|
|
$
90,596
|
|
$
77,815
|
|
$ 319,035
|
|
$ 222,798
|
Average
loans
|
$ 9,381,248
|
|
$ 9,468,136
|
|
$ 7,755,997
|
|
$ 7,238,438
|
|
$ 6,173,394
|
|
$ 8,874,414
|
|
$ 5,853,924
|
Loan yield without
discount accretion
|
4.74%
|
|
4.80%
|
|
4.90%
|
|
4.97%
|
|
5.00%
|
|
4.81%
|
|
5.09%
|
Loan yield, as
reported
|
5.94%
|
|
5.87%
|
|
5.60%
|
|
6.06%
|
|
6.06%
|
|
5.82%
|
|
6.06%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment to
Securities Yield (L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
securities, as reported
|
$
46,910
|
|
$
47,670
|
|
$
47,056
|
|
$
45,100
|
|
$
41,961
|
|
$ 141,636
|
|
$ 117,893
|
Add purchase
accounting adjustment-securities
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,466
|
|
1,570
|
|
1,964
|
|
1,892
|
|
2,275
|
|
5,000
|
|
7,980
|
Interest on
securities including amortization
|
$
48,376
|
|
$
49,240
|
|
$
49,020
|
|
$
46,992
|
|
$
44,236
|
|
$ 146,636
|
|
$ 125,873
|
Average
securities
|
$ 8,836,309
|
|
$ 8,748,322
|
|
$ 8,466,946
|
|
$ 7,992,673
|
|
$ 8,015,221
|
|
$ 8,685,212
|
|
$ 7,912,599
|
Securities yield
without purchase accounting adjustment
|
2.17%
|
|
2.26%
|
|
2.35%
|
|
2.33%
|
|
2.19%
|
|
2.26%
|
|
2.13%
|
Securities yield, as
reported
|
2.11%
|
|
2.19%
|
|
2.25%
|
|
2.24%
|
|
2.08%
|
|
2.18%
|
|
1.99%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin (tax equivalent basis, excluding purchase accounting adjustments to
yield)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.26%
|
|
3.31%
|
|
3.33%
|
|
3.35%
|
|
3.19%
|
|
3.30%
|
|
3.13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin (tax equivalent basis), as reported
|
3.85%
|
|
3.83%
|
|
3.62%
|
|
3.82%
|
|
3.59%
|
|
3.77%
|
|
3.48%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
available to common shareholders, as reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
76,570
|
|
$
75,506
|
|
$
67,137
|
|
$
62,971
|
|
$
55,278
|
|
$ 219,213
|
|
$ 158,427
|
Less: Purchase accounting adjustments, net of tax
(M)
|
(17,924)
|
|
(15,886)
|
|
(7,677)
|
|
(12,095)
|
|
(9,476)
|
|
(41,487)
|
|
(23,371)
|
Net income
available to common shareholders, adjusted
|
$
58,646
|
|
$
59,620
|
|
$
59,460
|
|
$
50,876
|
|
$
45,802
|
|
$ 177,726
|
|
$ 135,056
|
|
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 Jun 30,
2014
|
|
Balance at Sep 30,
2014
|
|
Balance at
Acquisition Date
|
|
Balance at Jun 30,
2014
|
|
Balance at Sep 30,
2014
|
|
Balance at
Acquisition Date
|
|
Balance at Jun 30,
2014
|
|
Balance at Sep 30,
2014
|
Loan
marks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previously acquired
banks (N)
|
$ 159,627
|
|
$
67,578
|
|
$ 59,738
|
|
$ 63,547
|
|
$
32,450
|
|
$
31,180
|
|
$ 223,174
|
|
$ 100,028
|
|
$
90,918
|
2014 acquisition
(O)
|
65,962
|
|
55,749
|
|
44,458
|
|
68,359
|
|
68,359
|
|
59,514
|
|
134,321
|
|
124,108
|
|
103,972
|
Total
|
$ 225,589
|
|
$ 123,327
|
|
$ 104,196
|
|
$ 131,906
|
|
$ 100,809
|
|
$
90,694
|
|
$ 357,495
|
|
$ 224,136
|
|
$ 194,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previously acquired
banks (N)
|
$ 3,839,647
|
|
$ 1,863,751
|
|
$ 1,628,791
|
|
$ 135,279
|
|
$
70,292
|
|
$
65,880
|
|
$ 3,974,926
|
|
$ 1,934,043
|
|
$ 1,694,671
|
2014 acquisition
(O)
|
1,617,287
|
|
1,128,510
|
|
940,532
|
|
120,567
|
|
110,582
|
|
96,120
|
|
1,737,854
|
|
1,239,092
|
|
1,036,652
|
Total
|
$ 5,456,934
|
|
$ 2,992,261
|
|
$ 2,569,323
|
|
$ 255,846
|
|
$ 180,874
|
|
$ 162,000
|
|
$ 5,712,780
|
(P)
|
$ 3,173,135
|
|
$ 2,731,323
|
|
|
(L)
|
Non-GAAP financial
measure.
|
(M)
|
Using effective
tax rate of 33.6%, 33.2%, 33.3%, 33.1% and 33.0% for the three
month periods ended September 30, 2014, June 30, 2014, March 31,
2014, December 31, 2013 and September 30,
2013, respectively, and 33.4% and 32.8% for the nine
month periods ended September 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,
the acquisition of 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
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
YIELD
TREND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
Loans
|
5.94%
|
|
5.87%
|
|
5.60%
|
|
6.06%
|
|
6.06%
|
Investment securities
(Q)
|
2.11%
|
|
2.19%
|
|
2.25%
|
|
2.24%
|
|
2.08%
|
Federal funds sold
and other earning assets
|
0.15%
|
|
0.30%
|
|
0.19%
|
|
0.29%
|
|
0.22%
|
Total
interest-earning assets
|
4.06%
|
|
4.05%
|
|
3.83%
|
|
4.03%
|
|
3.80%
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
0.24%
|
|
0.26%
|
|
0.24%
|
|
0.25%
|
|
0.28%
|
Savings and money
market deposits
|
0.25%
|
|
0.26%
|
|
0.26%
|
|
0.26%
|
|
0.27%
|
Certificates and
other time deposits
|
0.58%
|
|
0.60%
|
|
0.59%
|
|
0.60%
|
|
0.59%
|
Securities sold under
repurchase agreements
|
0.25%
|
|
0.27%
|
|
0.28%
|
|
0.28%
|
|
0.28%
|
Other
borrowings
|
0.42%
|
|
0.54%
|
|
1.23%
|
|
0.42%
|
|
0.23%
|
Junior subordinated
debentures
|
2.60%
|
|
2.60%
|
|
2.53%
|
|
2.61%
|
|
2.85%
|
Total
interest-bearing liabilities
|
0.36%
|
|
0.38%
|
|
0.36%
|
|
0.37%
|
|
0.37%
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
3.81%
|
|
3.78%
|
|
3.57%
|
|
3.76%
|
|
3.53%
|
Net Interest Margin
(tax equivalent)
|
3.85%
|
|
3.83%
|
|
3.62%
|
|
3.82%
|
|
3.59%
|
|
|
(Q)
|
Yield on
securities was impacted by net premium amortization of $13,531,
$12,837, $12,280, $12,017 and $15,136 for the three month periods ended September 30,
2014, June 30, 2014, March 31, 2014, December 31, 2013 and
September 30, 2013
respectively.
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
Balance Sheet
Averages
|
|
|
|
|
|
|
|
|
|
Total
loans
|
$ 9,381,248
|
|
$ 9,468,136
|
|
$ 7,755,997
|
|
$ 7,238,438
|
|
$ 6,173,394
|
Investment
securities
|
8,836,309
|
|
8,748,322
|
|
8,466,946
|
|
7,992,673
|
|
8,015,221
|
Federal funds sold
and other earning
assets
|
|
|
|
|
|
|
|
|
|
95,378
|
|
234,302
|
|
101,700
|
|
103,413
|
|
27,451
|
Total
interest-earning assets
|
18,312,935
|
|
18,450,760
|
|
16,324,643
|
|
15,334,524
|
|
14,216,066
|
Allowance for credit
losses
|
(73,977)
|
|
(72,587)
|
|
(67,222)
|
|
(60,170)
|
|
(56,765)
|
Cash and due from
banks
|
267,389
|
|
284,432
|
|
255,297
|
|
232,666
|
|
189,082
|
Goodwill
|
1,893,667
|
|
1,803,534
|
|
1,673,216
|
|
1,560,905
|
|
1,351,236
|
Core deposit
intangibles, net
|
35,753
|
|
38,469
|
|
38,754
|
|
30,641
|
|
25,938
|
Other real
estate
|
5,405
|
|
8,562
|
|
7,885
|
|
7,254
|
|
9,494
|
Fixed assets,
net
|
285,039
|
|
292,075
|
|
282,411
|
|
251,688
|
|
231,480
|
Other
assets
|
394,509
|
|
512,303
|
|
293,330
|
|
419,122
|
|
227,738
|
Total
assets
|
$ 21,120,720
|
|
$ 21,317,548
|
|
$ 18,808,314
|
|
$ 17,776,630
|
|
$ 16,194,269
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$ 4,939,388
|
|
$ 4,735,575
|
|
$ 4,018,094
|
|
$ 3,860,296
|
|
$ 3,308,158
|
Interest-bearing
demand deposits
|
3,399,655
|
|
3,568,475
|
|
3,554,366
|
|
2,963,899
|
|
2,400,555
|
Savings and money
market deposits
|
5,502,326
|
|
5,479,978
|
|
4,992,442
|
|
4,654,044
|
|
4,233,911
|
Certificates and
other time deposits
|
3,235,185
|
|
3,379,819
|
|
2,816,701
|
|
2,712,699
|
|
2,489,848
|
Total
deposits
|
17,076,554
|
|
17,163,847
|
|
15,381,603
|
|
14,190,938
|
|
12,432,472
|
Securities sold
under repurchase
agreements
|
|
|
|
|
|
|
|
|
|
389,726
|
|
382,692
|
|
347,747
|
|
398,100
|
|
455,276
|
Other
borrowings
|
215,222
|
|
140,906
|
|
51,932
|
|
210,492
|
|
772,083
|
Junior subordinated
debentures
|
167,531
|
|
167,531
|
|
124,231
|
|
111,172
|
|
85,055
|
Other
liabilities
|
109,287
|
|
365,169
|
|
82,288
|
|
223,394
|
|
73,571
|
Shareholders'
equity
|
3,162,400
|
|
3,097,403
|
|
2,820,513
|
|
2,642,534
|
|
2,375,812
|
Total liabilities and
equity
|
$ 21,120,720
|
|
$ 21,317,548
|
|
$ 18,808,314
|
|
$ 17,776,630
|
|
$ 16,194,269
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
Period End
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
other
|
$ 2,058,217
|
22.0%
|
|
$ 2,139,983
|
23.0%
|
|
$ 1,312,405
|
16.9%
|
|
$ 1,322,975
|
17.0%
|
|
$ 1,028,799
|
16.6%
|
Construction, land
development and other land
loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,041,300
|
11.1%
|
|
1,005,099
|
10.8%
|
|
888,985
|
11.5%
|
|
865,511
|
11.1%
|
|
703,193
|
11.4%
|
1-4 family
residential
|
2,210,141
|
23.6%
|
|
2,153,801
|
23.1%
|
|
1,906,480
|
24.7%
|
|
1,870,365
|
24.2%
|
|
1,503,771
|
24.4%
|
Home
equity
|
269,850
|
2.9%
|
|
267,759
|
2.9%
|
|
263,966
|
3.4%
|
|
261,355
|
3.4%
|
|
211,742
|
3.4%
|
Commercial real
estate
|
3,091,090
|
33.1%
|
|
3,027,945
|
32.6%
|
|
2,709,386
|
34.9%
|
|
2,753,797
|
35.3%
|
|
2,304,862
|
37.2%
|
Agriculture
(including farmland)
|
534,672
|
5.7%
|
|
542,360
|
5.8%
|
|
512,857
|
6.6%
|
|
531,258
|
6.8%
|
|
321,518
|
5.2%
|
Consumer and
other
|
163,618
|
1.7%
|
|
171,215
|
1.8%
|
|
158,321
|
2.0%
|
|
169,960
|
2.2%
|
|
108,704
|
1.8%
|
Total
loans
|
$ 9,368,888
|
|
|
$ 9,308,162
|
|
|
$ 7,752,400
|
|
|
$ 7,775,221
|
|
|
$ 6,182,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
DDA
|
$ 4,968,867
|
29.2%
|
|
$ 4,921,398
|
28.5%
|
|
$ 4,142,042
|
26.9%
|
|
$ 4,108,835
|
26.9%
|
|
$ 3,368,357
|
27.0%
|
Interest-bearing
DDA
|
3,359,606
|
19.7%
|
|
3,467,826
|
20.1%
|
|
3,446,375
|
22.3%
|
|
3,470,316
|
22.7%
|
|
2,366,997
|
19.0%
|
Money
market
|
3,788,358
|
22.3%
|
|
3,861,339
|
22.3%
|
|
3,468,016
|
22.4%
|
|
3,320,062
|
21.7%
|
|
2,834,172
|
22.8%
|
Savings
|
1,728,676
|
10.2%
|
|
1,707,645
|
9.9%
|
|
1,630,395
|
10.5%
|
|
1,571,504
|
10.3%
|
|
1,413,153
|
11.3%
|
Certificates and
other time deposits
|
3,168,520
|
18.6%
|
|
3,322,847
|
19.2%
|
|
2,773,229
|
17.9%
|
|
2,820,554
|
18.4%
|
|
2,473,120
|
19.9%
|
Total
deposits
|
$ 17,014,027
|
|
|
$ 17,281,055
|
|
|
$ 15,460,057
|
|
|
$ 15,291,271
|
|
|
$ 12,455,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
55.1%
|
|
|
53.9%
|
|
|
50.1%
|
|
|
50.8%
|
|
|
49.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family
residential construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 317,307
|
30.3%
|
|
$ 316,579
|
31.2%
|
|
$ 292,137
|
32.6%
|
|
$ 271,491
|
30.9%
|
|
$ 239,980
|
33.5%
|
Land
development
|
89,553
|
8.5%
|
|
88,947
|
8.8%
|
|
73,974
|
8.2%
|
|
83,820
|
9.6%
|
|
60,927
|
8.6%
|
Raw land
|
83,013
|
7.9%
|
|
62,731
|
6.2%
|
|
55,384
|
6.2%
|
|
48,996
|
5.6%
|
|
52,789
|
7.4%
|
Residential
lots
|
154,027
|
14.7%
|
|
138,769
|
13.7%
|
|
118,733
|
13.2%
|
|
122,449
|
14.0%
|
|
95,361
|
13.4%
|
Commercial
lots
|
86,991
|
8.3%
|
|
93,200
|
9.2%
|
|
99,300
|
11.1%
|
|
103,878
|
11.9%
|
|
58,085
|
8.2%
|
Commercial
construction and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
317,355
|
30.3%
|
|
312,870
|
30.9%
|
|
257,942
|
28.7%
|
|
244,124
|
28.0%
|
|
204,940
|
28.9%
|
Net unaccreted
discount
|
(6,946)
|
|
|
(7,997)
|
|
|
(8,485)
|
|
|
(9,247)
|
|
|
(8,889)
|
|
Total construction
loans
|
$ 1,041,300
|
|
|
$ 1,005,099
|
|
|
$ 888,985
|
|
|
$ 865,511
|
|
|
$ 703,193
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Sep 30,
2014
|
|
Sep 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
26,804
|
|
$
23,082
|
|
$
7,714
|
|
$
10,231
|
|
$
4,954
|
|
$
26,804
|
|
$
4,954
|
Accruing loans 90 or
more
|
|
|
|
|
|
|
|
|
|
|
|
|
|
days past
due
|
17,753
|
|
335
|
|
3,519
|
|
4,947
|
|
283
|
|
17,753
|
|
283
|
Total nonperforming
loans
|
44,557
|
|
23,417
|
|
11,233
|
|
15,178
|
|
5,237
|
|
$
44,557
|
|
5,237
|
Repossessed
assets
|
21
|
|
11
|
|
91
|
|
27
|
|
18
|
|
21
|
|
18
|
Other real
estate
|
5,504
|
|
5,093
|
|
7,372
|
|
7,299
|
|
7,432
|
|
5,504
|
|
7,432
|
Total
nonperforming assets
|
$
50,082
|
|
$
28,521
|
|
$
18,696
|
|
$
22,504
|
|
$
12,687
|
|
$
50,082
|
|
$
12,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
26,172
|
|
$
14,434
|
|
$
4,748
|
|
$
3,153
|
|
$
1,223
|
|
$
26,172
|
|
$
1,223
|
Construction, land
development and other land loans
|
5,998
|
|
2,449
|
|
4,053
|
|
4,558
|
|
4,611
|
|
5,998
|
|
4,611
|
1-4 family
residential (including home equity)
|
7,559
|
|
6,909
|
|
5,435
|
|
6,279
|
|
2,441
|
|
7,559
|
|
2,441
|
Commercial real
estate (including multi-family residential)
|
9,686
|
|
3,970
|
|
4,196
|
|
8,033
|
|
4,233
|
|
9,686
|
|
4,233
|
Agriculture
(including farmland)
|
182
|
|
140
|
|
104
|
|
279
|
|
23
|
|
182
|
|
23
|
Consumer and
other
|
485
|
|
619
|
|
160
|
|
202
|
|
156
|
|
485
|
|
156
|
Total
|
$
50,082
|
|
$
28,521
|
|
$
18,696
|
|
$
22,504
|
|
$
12,687
|
|
$
50,082
|
|
$
12,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
loans/properties
|
194
|
|
179
|
|
164
|
|
203
|
|
128
|
|
194
|
|
128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses at end of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
77,613
|
|
$
73,266
|
|
$
67,096
|
|
$
67,282
|
|
$
59,913
|
|
$
77,613
|
|
$
59,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
17
|
|
$
(64)
|
|
$
81
|
|
$
7
|
|
$
119
|
|
$
34
|
|
$
326
|
Construction, land
development and other land loans
|
(28)
|
|
115
|
|
(17)
|
|
(12)
|
|
(30)
|
|
$
70
|
|
38
|
1-4 family
residential (including home equity)
|
70
|
|
406
|
|
131
|
|
21
|
|
15
|
|
$
607
|
|
152
|
Commercial real
estate (including multi-family residential)
|
(6)
|
|
5
|
|
60
|
|
(311)
|
|
(471)
|
|
$
59
|
|
273
|
Agriculture
(including farmland)
|
(53)
|
|
(843)
|
|
(81)
|
|
(85)
|
|
13
|
|
$
(977)
|
|
19
|
Consumer and
other
|
653
|
|
536
|
|
612
|
|
876
|
|
642
|
|
$
1,801
|
|
1,218
|
Total
|
$
653
|
|
$
155
|
|
$
786
|
|
$
496
|
|
$
288
|
|
$
1,594
|
|
$
2,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to average earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.27%
|
|
0.15%
|
|
0.11%
|
|
0.15%
|
|
0.09%
|
|
0.28%
|
|
0.09%
|
Nonperforming assets
to loans and other real
estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.53%
|
|
0.31%
|
|
0.24%
|
|
0.29%
|
|
0.20%
|
|
0.53%
|
|
0.20%
|
Net charge-offs
to average loans
(annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03%
|
|
0.01%
|
|
0.04%
|
|
0.03%
|
|
0.02%
|
|
0.02%
|
|
0.05%
|
Allowance for credit
losses to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
total loans
|
0.83%
|
|
0.79%
|
|
0.87%
|
|
0.87%
|
|
0.97%
|
|
0.83%
|
|
0.97%
|
Allowance for credit
losses to total loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(excluding acquired
loans accounted for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
under ASC Topics
310-20 and 310-30) (E)
|
1.14%
|
|
1.15%
|
|
1.18%
|
|
1.25%
|
|
1.20%
|
|
1.14%
|
|
1.20%
|
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
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Sep 30,
2014
|
|
Sep 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
76,570
|
|
$
75,506
|
|
$
67,137
|
|
$
62,971
|
|
$
55,278
|
|
$
219,213
|
|
$
158,427
|
Average shareholders'
equity
|
$
3,162,400
|
|
$
3,097,403
|
|
$
2,820,513
|
|
$
2,642,534
|
|
$
2,375,812
|
|
$
3,030,699
|
|
$
2,278,891
|
Less: Average
goodwill and other intangible assets
|
(1,929,420)
|
|
(1,842,003)
|
|
(1,711,970)
|
|
(1,591,546)
|
|
(1,377,174)
|
|
(1,828,594)
|
|
(1,325,214)
|
Average tangible shareholders' equity
|
$
1,232,980
|
|
$
1,255,400
|
|
$
1,108,543
|
|
$
1,050,988
|
|
$
998,638
|
|
$
1,202,105
|
|
$
953,677
|
Return on average
tangible common equity
|
24.84%
|
|
24.06%
|
|
24.23%
|
|
23.97%
|
|
22.14%
|
|
24.38%
|
|
22.21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
$
3,182,950
|
|
$
3,120,594
|
|
$
2,840,754
|
|
$
2,786,818
|
|
$
2,389,112
|
|
$
3,182,950
|
|
$
2,389,112
|
Less: Goodwill and
other intangible assets
|
(1,926,729)
|
|
(1,931,342)
|
|
(1,711,706)
|
|
(1,712,121)
|
|
(1,377,015)
|
|
(1,926,729)
|
|
(1,377,015)
|
Tangible shareholders' equity
|
$
1,256,221
|
|
$
1,189,252
|
|
$
1,129,048
|
|
$
1,074,697
|
|
$
1,012,097
|
|
$
1,256,221
|
|
$
1,012,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
69,756
|
|
69,744
|
|
66,261
|
|
66,048
|
|
60,383
|
|
69,756
|
|
60,383
|
Tangible book value
per share:
|
$
18.01
|
|
$
17.05
|
|
$
17.04
|
|
$
16.27
|
|
$
16.76
|
|
$
18.01
|
|
$
16.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
shareholders' equity
|
$
1,256,221
|
|
$
1,189,252
|
|
$
1,129,048
|
|
$
1,074,697
|
|
$
1,012,097
|
|
$
1,256,221
|
|
$
1,012,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$ 21,117,314
|
|
$
21,248,106
|
|
$
18,913,133
|
|
$
18,642,028
|
|
$ 16,054,279
|
|
$ 21,117,314
|
|
$ 16,054,279
|
Less: Goodwill and
other intangible assets
|
(1,926,729)
|
|
(1,931,342)
|
|
(1,711,706)
|
|
(1,712,121)
|
|
(1,377,015)
|
|
(1,926,729)
|
|
(1,377,015)
|
Tangible assets
|
$ 19,190,585
|
|
$
19,316,764
|
|
$
17,201,427
|
|
$
16,929,907
|
|
$ 14,677,264
|
|
$ 19,190,585
|
|
$ 14,677,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets ratio
|
6.55%
|
|
6.16%
|
|
6.56%
|
|
6.35%
|
|
6.90%
|
|
6.55%
|
|
6.90%
|
Prosperity
Bancshares, Inc.®
Notes to Selected
Financial Data (Unaudited)
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Sep 30,
2013
|
|
Sep 30,
2014
|
|
Sep 30,
2013
|
Allowance for
credit losses to total loans, excluding acquired
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses
|
$
77,613
|
|
$
73,266
|
|
$
67,096
|
|
$
67,282
|
|
$
59,913
|
|
$
77,613
|
|
$
59,913
|
Total
loans
|
$
9,368,888
|
|
$
9,308,162
|
|
$
7,752,400
|
|
$
7,775,221
|
|
$
6,182,589
|
|
$
9,368,888
|
|
$
6,182,589
|
Less: Fair value of
acquired loans accounted for under ASC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Topics 310-20
and 310-30 (does not include new production)
|
$
2,536,433
|
|
$
2,948,999
|
|
$
2,086,744
|
|
$
2,412,660
|
|
$
1,181,559
|
|
$
2,536,433
|
|
$
1,181,559
|
Total loans less
acquired loans
|
$
6,832,455
|
|
$
6,359,163
|
|
$
5,665,656
|
|
$
5,362,561
|
|
$
5,001,030
|
|
$
6,832,455
|
|
$
5,001,030
|
Allowance for credit
losses to total loans, excluding acquired loans (non-GAAP basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.14%
|
|
1.15%
|
|
1.18%
|
|
1.25%
|
|
1.20%
|
|
1.14%
|
|
1.20%
|
SOURCE Prosperity Bancshares, Inc.