HOUSTON, April 29, 2020 /PRNewswire/ -- Prosperity
Bancshares, Inc.® (NYSE: PB), the parent company of
Prosperity Bank® (collectively, "Prosperity"), reported
net income for the quarter ended March 31, 2020 of
$130.848 million compared with
$82.402 million for the same
period in 2019. Net income per diluted common share was
$1.39 compared with $1.18 for the same period in 2019. Additionally,
loans increased 1.5% during the first quarter 2020 and
nonperforming assets remain low at 0.25% of first quarter average
interest-earning assets. On November 1, 2019, LegacyTexas
Financial Group, Inc. ("LegacyTexas"), merged with Prosperity
Bancshares and LegacyTexas Bank merged with Prosperity Bank
(collectively, the "Merger").
"I am proud to announce that Prosperity posted diluted earnings
per share of $1.39 for the first
quarter of 2020, a 17.8% increase compared with the same period in
2019. Our merger with LegacyTexas was completed on November 1, 2019 and our management teams
continue to find commonalties and strengths that we expect
will benefit our company, shareholders and associates going
forward. Our planned operational integration remains on
schedule for June of this year," said David
Zalman, Prosperity's Senior Chairman and Chief Executive
Officer.
"In our efforts to continue enhance shareholder value, during
the first quarter 2020 Prosperity repurchased 2.092 million shares
of its common stock at a weighted average price of $52.59 per share," continued Zalman.
"Also, during the first quarter of 2020, Prosperity increased
its allowance for credit losses on loans to $327.206 million from $87.469 million for the fourth quarter of 2019
after adopting accounting standard ASU 2016-13, also known as CECL.
The amount of the allowance is based on our CECL methodology. We
believe that these additional reserves should help insulate the
company during these challenging and unprecedented times. Our
allowance for credit losses to total loans, excluding warehouse
purchase program loans, now stands at 1.88% compared to 0.51%
at December 31, 2019,"
added Zalman.
"While today's challenges are certainly extraordinary,
Prosperity has a deep management team with experience navigating
and adapting to difficult times. We entered this economic downturn
from a position of strength, with sound credit quality, robust
capital and liquidity and solid operating fundamentals. We believe
that our team will see us through and we remain confident in our
long-term future," stated Zalman.
"I would like to thank every associate at Prosperity. Throughout
the past several months, while dealing with various personal
challenges related to the pandemic, our retail team operated at
full capacity, enabling us to keep our locations open and serve our
customers' daily needs. Additionally, our operational staff and
lending team were crucial in accepting, processing and submitting
thousands of SBA PPP applications and closing the loans, working
around the clock to assist our customers,"
concluded Zalman.
Results of Operations for the Three Months Ended
March 31, 2020
Net income was $130.848
million(2) for the three months ended
March 31, 2020 compared with $82.402
million(3) for the same period in 2019. Net
income per diluted common share was $1.39 for the three months ended March 31,
2020 compared with $1.18 for the same
period in 2019. Annualized returns on average assets, average
common equity and average tangible common equity for the three
months ended March 31, 2020 were 1.67%, 8.86% and
20.16%(1), respectively. Prosperity's efficiency ratio
(excluding net gains on the sale of assets and taxes)
was 42.90%(1) for the three months ended
March 31, 2020. Excluding merger related expenses of
$544 thousand, net of tax, the efficiency ratio was
42.71%(1) for the three months ended March 31,
2020.
Net interest income before provision for credit losses for the
three months ended March 31, 2020 was $256.031 million compared with $154.911 million for the same period in 2019, an
increase of $101.120 million or
65.3%. The increase was primarily due to the Merger and the
increase in loan discount accretion of $26.689 million. On a linked quarter basis, net
interest income before provision for credit losses was $256.031 million compared with $232.030 million for the three months ended
December 31, 2019. The increase was primarily due to the
increase in loan discount accretion of $4.740 million and three months of combined bank
earnings in the first quarter of 2020 compared with only two months
in the fourth quarter 2019.
The net interest margin on a tax equivalent basis was 3.81% for
the three months ended March 31, 2020 compared with 3.20%
for the same period in 2019. The change was primarily due to
increased interest-earning assets and the $26.689 million increase in loan discount
accretion. On a linked quarter basis, the net interest margin on a
tax equivalent basis was 3.81% for the three months ended
March 31, 2020 compared with 3.66% for the three months ended
December 31, 2019. The change was primarily due to increased
interest-earning assets and the $4.740
million increase in loan discount accretion.
Noninterest income was $34.388
million for the three months ended March 31, 2020
compared with $28.144 million for the
same period in 2019, an increase of $6.244 million or 22.2%. This increase was
primarily due to an increase in nonsufficient funds fees, credit
card, debit card and ATM card fees, mortgage income, service fees
and other noninterest income primarily due to the Merger. On a
linked quarter basis, noninterest income decreased $1.118 million or 3.1% to $34.388 million compared with $35.506 million for the three months ended
December 31, 2019, primarily due to the decrease in other
noninterest income and mortgage income, partially offset by lower
net loss on write-down of assets.
Noninterest expense was $124.741
million for the three months ended March 31, 2020
compared with $78.571 million for the
same period in 2019, an increase of $46.170
million or 58.8%, primarily due to the Merger. On a linked
quarter basis, noninterest expense decreased $31.710 million or 20.3% to $124.741 million compared with $156.451 million for the three months ended
December 31, 2019. The decrease was primarily due to the
decrease of merger related expenses partially offset by increases
in salaries and benefits, credit and debit card, data processing
and software amortization, and net occupancy and equipment due to
three months of combined bank noninterest expenses in the first
quarter 2020 compared with two months in fourth quarter 2019.
(1)
|
Refer to the "Notes
to Selected Financial Data" at the end of this Earnings Release for
a reconciliation of this non-GAAP financial measure to the nearest
GAAP financial measure.
|
(2)
|
Includes purchase
accounting adjustments of $24.134 million, net of tax, primarily
comprised of loan discount accretion of $28.482 million, and merger
related expenses of $544 thousand for the three months ended March
31, 2020.
|
(3)
|
Includes purchase
accounting adjustments of $1.238 million, net of tax, primarily
comprised of loan discount accretion of $1.793 million for the
three months ended March 31, 2019.
|
Balance Sheet Information
At March 31, 2020, Prosperity had $31.743 billion in total assets, an increase of
$9.389 billion or 42.0%, compared
with $22.354 billion at
March 31, 2019.
Loans at March 31, 2020 were $19.127
billion, an increase of $8.713
billion or 83.7%, compared with $10.414 billion at March 31, 2019. Linked
quarter loans increased $281.849
million or 1.5% from $18.845
billion at December 31, 2019.
As part of its lending activities, Prosperity extends credit to
oil and gas production and servicing companies. Oil and gas
production loans are loans to companies directly involved in the
exploration and or production of oil and gas. Oil and gas servicing
loans are loans to companies that provide services for oil and gas
production and exploration. At March 31, 2020, oil and gas
loans totaled $718.654 million (net
of discount) or 3.8% of total loans, of which $435.041 million were production loans and
$283.613 million were servicing
loans, compared with total oil and gas loans of $380.835 million (net of discount) or 3.7% of
total loans at March 31, 2019, of which $115.571 million were production loans and
$265.264 million were servicing
loans. In addition, as of March 31,
2020, Prosperity had total unfunded commitments to oil and gas
companies of $389.515 million
compared with total unfunded commitments to oil and gas companies
of $231.474 million as of
March 31, 2019. Unfunded commitments
to producers include letters of credit issued in lieu of oil well
plugging bonds.
Additionally, Prosperity extends credit to hotels and
restaurants. At March 31, 2020,
loans to hotels totaled $374.105 million or 2.0% of total loans and
loans to restaurants totaled $204.600 million or 1.1% of total loans.
Deposits at March 31, 2020 were $23.826 billion, an increase of $6.628 billion or 38.5%, compared with
$17.198 billion at March 31,
2019. Linked quarter deposits decreased $373.375 million or 1.5% from $24.200 billion at December 31, 2019.
The table below provides detail on the impact of loans acquired
and deposits assumed in the Merger:
Balance Sheet Data
(at period end)
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(In
thousands)
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Mar 31,
2020
|
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Dec 31,
2019
|
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Sep 30,
2019
|
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Jun 30,
2019
|
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|
Mar 31,
2019
|
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|
(Unaudited)
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|
(Unaudited)
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|
(Unaudited)
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|
(Unaudited)
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|
(Unaudited)
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Loans acquired
(including new production since acquisition date):
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LegacyTexas:
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Loans held for
sale
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|
$
|
54,229
|
|
|
$
|
66,745
|
|
|
$
|
—
|
|
|
$
|
—
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|
|
$
|
—
|
|
Loans held for
investment
|
|
|
6,713,337
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|
|
|
6,636,855
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—
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—
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—
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Loans held for
investment - Warehouse Purchase Program
|
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1,713,762
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|
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1,552,762
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|
|
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—
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|
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—
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|
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—
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All other
loans
|
|
|
10,645,867
|
|
|
|
10,588,984
|
|
|
|
10,673,345
|
|
|
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10,587,375
|
|
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10,414,022
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Total loans
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|
$
|
19,127,195
|
|
|
$
|
18,845,346
|
|
|
$
|
10,673,345
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|
|
$
|
10,587,375
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|
|
$
|
10,414,022
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Deposits assumed
(including new deposits since acquisition date):
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LegacyTexas
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|
$
|
5,605,986
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|
$
|
6,141,546
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|
$
|
—
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|
$
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—
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|
$
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—
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All other
deposits
|
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18,220,371
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18,058,186
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|
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16,929,920
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16,887,629
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17,197,770
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Total
deposits
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|
$
|
23,826,357
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$
|
24,199,732
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|
$
|
16,929,920
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|
|
$
|
16,887,629
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|
|
$
|
17,197,770
|
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Excluding loans acquired in the Merger and new production by the
acquired lending operations since November 1, 2019, loans at
March 31, 2020 grew $231.845 million or 2.2% compared with
March 31, 2019 and grew $56.883
million or 0.5% compared with December 31, 2019.
Excluding deposits assumed in the Merger and new deposits
generated at the acquired banking centers since November 1,
2019, deposits at March 31, 2020 grew $1.023 billion or 6.0% compared with
March 31, 2019 and grew $162.185 million or 0.9% compared with
December 31, 2019.
Asset Quality
Nonperforming assets totaled $67.179
million or 0.25% of quarterly average interest-earning
assets at March 31, 2020, compared with $40.883 million or 0.21% of quarterly average
interest-earning assets at March 31, 2019, and $62.943 million or 0.25% of quarterly
average interest-earning assets at December 31, 2019.
The allowance for credit losses on loans was $327.206 million or 1.71% of total loans at
March 31, 2020 compared to $87.469
million or 0.46% of total loans at December 31, 2019
and $86.091 million or 0.83% of total
loans at March 31, 2019. On January 1, 2020, Prosperity adopted the
measurement of current expected credit losses ("CECL"). Upon
adoption of CECL, Prosperity recognized an increase in
allowance for credit losses on loans of $108.698 million, of which $102.545 million was related to LegacyTexas
and an increase in allowance for credit losses on off-balance sheet
credit exposures of $24.443 million, of which $6.314 million was related to LegacyTexas,
with a corresponding decrease in retained earnings (pre-tax).
Additionally, Prosperity recognized an increase in the allowance
for credit losses on loans of $131.841 million, of which $130.278 million was related to LegacyTexas,
due to the reclass of purchased credit deteriorated ("PCD")
discounts as a result of adopting CECL.
Prosperity had a $13.150 million
provision for credit losses reflecting forecasted credit
deterioration due to the COVID-19 pandemic for the first quarter of
2020. Countering this provision, during the first quarter of 2020,
several purchase credit deteriorated ("PCD") loans were repaid in
full, which cleared $8.576 million in
specific reserves. Additionally, balance changes and historical
loss rate improvements released $5.471
million in general reserves. Combined, these events fully
offset the provision. Accordingly, there was no provision for
credit losses for the three months ended March 31, 2020 compared with $700 thousand for the three months ended
March 31, 2019 and $1.700 million for the three months ended
December 31, 2019.
Net charge-offs were $801 thousand
for the three months ended March 31, 2020 compared with net
charge-offs of $1.049 million for the
three months ended March 31, 2019 and net charge-offs of
$1.291 million for the three months
ended December 31, 2019.
Dividend
Prosperity Bancshares declared a second quarter cash dividend of
$0.46 per share to be paid on
July 1, 2020 to all shareholders of
record as of June 15, 2020.
Stock Repurchase Program
On January 29, 2020, Prosperity
Bancshares announced a stock repurchase program under which up to
5%, or approximately 4.740 million shares, of its outstanding
common stock may be acquired over a one-year period expiring on
January 28, 2021, at the discretion
of management. Prosperity Bancshares repurchased 2.092 million
shares of its common stock at an average weighted price of
$52.59 per share during the three
months ended March 31, 2020.
COVID-19 Pandemic
In December 2019, a novel strain
of coronavirus disease ("COVID-19") was first reported in
Wuhan, Hubei Province, China. On March 11,
2020, the World Health Organization declared COVID-19 a
pandemic, and on March 13, the U.S.
President announced a national emergency relating to the pandemic.
On March 13, the Texas governor signed a proclamation
certifying that COVID-19 poses an imminent threat of disaster in
the state and declaring a state of disaster for all counties in
Texas. Prosperity Bank (the
"Bank") is considered an essential business and is closely
monitoring the latest developments regarding COVID-19. The health
and safety of our associates, customers, and communities are of
utmost importance, and the Bank remains committed to providing
uninterrupted service. Additionally, the Bank has continuity plans
in place to ensure critical operations are able to continue without
disruption. The COVID-19 pandemic has resulted in significant
economic uncertainties that could negatively impact Prosperity's
operating income, financial condition and cash flows.
Merger with LegacyTexas Financial Group, Inc.
On November 1, 2019, Prosperity completed the merger with
LegacyTexas and its wholly-owned subsidiary LegacyTexas Bank
headquartered in Plano, Texas.
LegacyTexas Bank operated 42 locations in 19 North Texas cities in and around the
Dallas-Fort Worth area.
Pursuant to the terms of the merger agreement, Prosperity issued
26,228,148 shares of Prosperity common stock with a closing price
of $69.02 per share plus $318.018 million in cash, made up of
$308.585 million in cash and
$9.433 million in cash for taxes
withheld, for all outstanding shares of LegacyTexas. This resulted
in goodwill of $1.322 billion as of
March 31, 2020, which was subject to subsequent fair value
adjustments.
Conference Call
Prosperity's management team will host a conference call on
Wednesday, April 29, 2020 at 11:30 a.m.
Eastern Time (10:30 a.m. Central Time) to discuss
Prosperity's first quarter 2020 earnings. Individuals and
investment professionals may participate in the call by dialing
877-883-0383 for domestic participants, or 412-902-6506 for
international participants. The elite entry number is 3056906.
Alternatively, individuals may listen to the live webcast of the
presentation by visiting Prosperity's website at
www.prosperitybankusa.com. The webcast may be accessed from
Prosperity's home page by selecting "Presentations & Calls"
from the drop-down menu on the Investor Relations tab and following
the instructions.
Non-GAAP Financial Measures
Prosperity's management uses certain non-GAAP financial measures
to evaluate its performance. Specifically, Prosperity reviews
tangible book value per share, return on average tangible common
equity, tangible equity to tangible assets ratio and the efficiency
ratio, excluding net gains and losses on the sale of assets and
securities. Prosperity believes these non-GAAP financial measures
provide information useful to investors in understanding
Prosperity's financial results and that their presentation,
together with the accompanying reconciliations, provides a more
complete understanding of factors and trends affecting Prosperity's
business and allows investors to view performance in a manner
similar to management, the entire financial services sector, bank
stock analysts and bank regulators. Further, Prosperity believes
that these non-GAAP financial measures provide useful information
by excluding certain items that may not be indicative of its core
operating earnings and business outlook. These non-GAAP financial
measures should not be considered a substitute for, nor of greater
importance than, GAAP basis financial measures and results;
Prosperity strongly encourages investors to review its consolidated
financial statements in their entirety and not to rely on any
single financial measure. Because non-GAAP financial measures are
not standardized, it may not be possible to compare these financial
measures with other companies' non-GAAP financial measures having
the same or similar names. Please refer to the "Notes to Selected
Financial Data" at the end of this Earnings Release for a
reconciliation of these non-GAAP financial measures to the nearest
respective GAAP financial measures.
Prosperity Bancshares, Inc. ®
As of March 31, 2020, Prosperity Bancshares,
Inc.® is a $31.7 billion
Houston, Texas based regional
financial holding company providing personal banking services and
investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983,
Prosperity believes in a community banking philosophy, taking care
of customers, businesses and communities in the areas it serves by
providing financial solutions to simplify everyday financial needs.
In addition to offering traditional deposit and loan products,
Prosperity offers digital banking solutions, credit and debit
cards, mortgage services, retail brokerage services, trust and
wealth management, and cash management.
As of March 31, 2020, Prosperity operated 285 full-service
banking locations: 65 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 33 in the Dallas/Fort Worth area; 22 in the East Texas area; 29 in the Central Texas area including Austin and San
Antonio; 34 in the West
Texas area including Lubbock, Midland-Odessa and Abilene; 16 in the Bryan/College Station area; 6 in the
Central Oklahoma area; 8 in the
Tulsa, Oklahoma area and 42 in the
Dallas/Fort Worth area currently
doing business as LegacyTexas Bank.
Cautionary Notes on Forward-Looking Statements
"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 federal
securities laws, including Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Forward-looking statements are typically, but not
exclusively, identified by the use in the statements of words or
phrases such as "aim," "anticipate," "estimate," "expect," "goal,"
"guidance," "intend," "is anticipated," "is expected," "is
intended," "objective," "plan," "projected," "projection," "will
affect," "will be," "will continue," "will decrease," "will grow,"
"will impact," "will increase," "will incur," "will reduce," "will
remain," "will result," "would be," variations of such words or
phrases (including where the word "could," "may," or "would" is
used rather than the word "will" in a phrase) and similar words and
phrases indicating that the statement addresses some future result,
occurrence, plan or objective. Forward-looking statements include
all statements other than statements of historical fact, including
forecasts or trends, and are based on current expectations,
assumptions, estimates and projections about Prosperity Bancshares
and its subsidiaries. These forward-looking statements may include
information about Prosperity's possible or assumed future economic
performance or future results of operations, including future
revenues, income, expenses, provision for loan losses, provision
for taxes, effective tax rate, earnings per share and cash flows
and Prosperity's future capital expenditures and dividends, future
financial condition and changes therein, including changes in
Prosperity's loan portfolio and allowance for loan losses, future
capital structure or changes therein, as well as the plans and
objectives of management for Prosperity's future operations, future
or proposed acquisitions, the future or expected effect of
acquisitions on Prosperity's operations, results of operations,
financial condition, and future economic performance, statements
about the anticipated benefits of the proposed transaction, and
statements about the assumptions underlying any such statement, as
well as expectations regarding the effects of the COVID-19 pandemic
on the Bank's operating income, financial condition and cash
flows. 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, including LegacyTexas; 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); the possibility that the anticipated
benefits of an acquisition transaction, including the LegacyTexas
transaction, are not realized when expected or at all, including as
a result of the impact of, or problems arising from, the
integration of two companies or as a result of the strength of the
economy and competitive factors generally; a deterioration or
downgrade in the credit quality and credit agency ratings of the
securities in Prosperity's securities portfolio; customer and
consumer demand, including customer and consumer response to
marketing; effectiveness of spending, investments or programs;
fluctuations in the cost and availability of supply chain
resources; economic conditions, including currency rate, interest
rate and commodity price fluctuations; the effect, impact potential
duration or other implications of the COVID-19 pandemic; and
weather. These and various other factors are discussed
in Prosperity Bancshares' Annual Report on Form 10-K for the
year ended December 31, 2019 and
other reports and statements Prosperity Bancshares has filed with
the Securities and Exchange Commission ("SEC"). Copies of the SEC
filings for Prosperity Bancshares may be downloaded from the
Internet at no charge
from http://www.prosperitybankusa.com.
Bryan/College
Station Area
|
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Fort
Worth
|
|
Canton
|
|
East
Bernard
|
|
86th
Street
|
Bryan
|
|
Haltom
City
|
|
Carthage
|
|
El Campo
|
|
98th
Street
|
Bryan-29th
Street
|
|
Keller
|
|
Corsicana
|
|
Dayton
|
|
Avenue Q
|
Bryan-East
|
|
Roanoke
|
|
Crockett
|
|
Galveston
|
|
North
University
|
Bryan-North
|
|
Stockyards
|
|
Eustace
|
|
Groves
|
|
Texas Tech Student
Union
|
Caldwell
|
|
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Gilmer
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Hempstead
|
|
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College
Station
|
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Other Dallas/Fort
Worth Area
|
|
Grapeland
|
|
Hitchcock
|
|
Midland
|
Crescent
Point
|
|
Locations
|
|
Gun Barrel
City
|
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Liberty
|
|
Wadley
|
Hearne
|
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Arlington
|
|
Jacksonville
|
|
Magnolia
|
|
Wall
Street
|
Huntsville
|
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Azle
|
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Kerens
|
|
Magnolia
Parkway
|
|
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Madisonville
|
|
Ennis
|
|
Longview
|
|
Mont
Belvieu
|
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Odessa
|
Navasota
|
|
Gainesville
|
|
Mount
Vernon
|
|
Nederland
|
|
Grandview
|
New
Waverly
|
|
Glen Rose
|
|
Palestine
|
|
Needville
|
|
Grant
|
Rock
Prairie
|
|
Granbury
|
|
Rusk
|
|
Rosenberg
|
|
Kermit
Highway
|
Southwest
Parkway
|
|
Mesquite
|
|
Seven
Points
|
|
Shadow
Creek
|
|
Parkway
|
Tower
Point
|
|
Muenster
|
|
Teague
|
|
Spring
|
|
|
Wellborn
Road
|
|
Sanger
|
|
Tyler-Beckham
|
|
Tomball
|
|
Other West Texas
Area
|
|
|
Waxahachie
|
|
Tyler-South
Broadway
|
|
Waller
|
|
Locations
|
Central Texas
Area
|
|
Weatherford
|
|
Tyler-University
|
|
West
Columbia
|
|
Big Spring
|
Austin
|
|
|
|
Winnsboro
|
|
Wharton
|
|
Brownfield
|
Allandale
|
|
LegacyTexas
Dallas/Fort Worth Area
|
|
|
|
Winnie
|
|
Brownwood
|
Cedar Park
|
|
LegacyTexas
Dallas
|
|
Houston
Area
|
|
Wirt
|
|
Cisco
|
Congress
|
|
14th
Street
|
|
Houston
|
|
|
|
Comanche
|
Lakeway
|
|
Addison
|
|
Aldine
|
|
South Texas Area
-
|
|
Early
|
Liberty
Hill
|
|
Allen
|
|
Alief
|
|
Corpus
Christi
|
|
Floydada
|
Northland
|
|
Carrollton
|
|
Bellaire
|
|
Calallen
|
|
Gorman
|
Oak Hill
|
|
Coppell
|
|
Beltway
|
|
Carmel
|
|
Levelland
|
Research
Blvd
|
|
Downtown
Grapevine
|
|
Clear Lake
|
|
Northwest
|
|
Littlefield
|
Westlake
|
|
East Plano
|
|
Copperfield
|
|
Saratoga
|
|
Merkel
|
|
|
El Dorado
|
|
Cypress
|
|
Timbergate
|
|
Plainview
|
Other Central
Texas Area
|
|
Frisco
|
|
Downtown
|
|
Water
Street
|
|
San Angelo
|
Locations
|
|
Frisco-South
|
|
Eastex
|
|
|
|
Slaton
|
Bastrop
|
|
Frisco-West
|
|
Fairfield
|
|
Victoria
|
|
Snyder
|
Canyon
Lake
|
|
Garland
|
|
First
Colony
|
|
Victoria
Main
|
|
|
Dime Box
|
|
Grapevine
|
|
Fry Road
|
|
Victoria-Navarro
|
|
Oklahoma
|
Dripping
Springs
|
|
Grapevine
Drive-thru
|
|
Gessner
|
|
Victoria-North
|
|
Central Oklahoma
Area
|
Elgin
|
|
Lake
Highlands
|
|
Gladebrook
|
|
Victoria
Salem
|
|
Oklahoma
City
|
Flatonia
|
|
LegacyTexas
|
|
Grand
Parkway
|
|
|
|
23rd
Street
|
Georgetown
|
|
McKinney
|
|
Heights
|
|
Other South Texas
Area
|
|
Expressway
|
Gruene
|
|
McKinney-380
|
|
Highway 6
West
|
|
Locations
|
|
I-240
|
Kingsland
|
|
North
Carrolton
|
|
Little
York
|
|
Alice
|
|
Memorial
|
La Grange
|
|
North East Tarrant
County
|
|
Medical
Center
|
|
Aransas
Pass
|
|
|
Lexington
|
|
Oak Cliff
|
|
Memorial
Drive
|
|
Beeville
|
|
Other Central
Oklahoma Area
|
New
Braunfels
|
|
Park
Cities
|
|
Northside
|
|
Colony
Creek
|
|
Locations
|
Pleasanton
|
|
Plano-West
|
|
Pasadena
|
|
Cuero
|
|
Edmond
|
Round Rock
|
|
Preston
Forest
|
|
Pecan
Grove
|
|
Edna
|
|
Norman
|
San
Antonio
|
|
Preston
Road
|
|
Pin Oak
|
|
Goliad
|
|
|
Schulenburg
|
|
Preston
Royal
|
|
River Oaks
|
|
Gonzales
|
|
Tulsa
Area
|
Seguin
|
|
Richardson
|
|
Sugar Land
|
|
Hallettsville
|
|
Tulsa
|
Smithville
|
|
Richardson-West
|
|
SW Medical
Center
|
|
Kingsville
|
|
Garnett
|
Thorndale
|
|
Rosewood
Court
|
|
Tanglewood
|
|
Mathis
|
|
Harvard
|
Weimar
|
|
Tollroad
|
|
The Plaza
|
|
Padre
Island
|
|
Memorial
|
|
|
Trinity
Mills
|
|
Uptown
|
|
Palacios
|
|
Sheridan
|
Dallas/Fort Worth
Area
|
|
West 15th
|
|
Waugh
Drive
|
|
Port
Lavaca
|
|
S. Harvard
|
Dallas
|
|
West Allen
|
|
Westheimer
|
|
Portland
|
|
Utica
Tower
|
Abrams
Centre
|
|
Wylie
|
|
West
University
|
|
Rockport
|
|
Yale
|
Balch
Springs
|
|
|
|
Woodcreek
|
|
Sinton
|
|
|
Camp
Wisdom
|
|
LegacyTexas Fort
Worth
|
|
|
|
Taft
|
|
Other Tulsa Area
Locations
|
Cedar Hill
|
|
Hulen
|
|
Katy
|
|
Yoakum
|
|
Owasso
|
Frisco
|
|
Museum
Place
|
|
Cinco
Ranch
|
|
Yorktown
|
|
|
Frisco-West
|
|
Renaissance
Square
|
|
Katy-Spring
Green
|
|
|
|
|
Kiest
|
|
|
|
|
|
West Texas
Area
|
|
|
McKinney
|
|
LegacyTexas Other
Dallas/Fort Worth
|
|
The
Woodlands
|
|
Abilene
|
|
|
McKinney-Stonebridge
|
|
Area
Locations
|
|
The Woodlands-College
Park
|
|
Antilley
Road
|
|
|
Midway
|
|
Flower
Mound
|
|
The
Woodlands-I-45
|
|
Barrow
Street
|
|
|
Plano
|
|
Grand
Prairie
|
|
The
Woodlands-Research Forest
|
|
Cypress
Street
|
|
|
Preston
Forest
|
|
Jacksboro
|
|
|
|
Judge Ely
|
|
|
Preston
Road
|
|
Runaway
Bay
|
|
Other Houston
Area
|
|
Mockingbird
|
|
|
Red Oak
|
|
Weatherford
|
|
Locations
|
|
|
|
|
Sachse
|
|
|
|
Angleton
|
|
Lubbock
|
|
|
The Colony
|
|
East Texas
Area
|
|
Bay City
|
|
4th
Street
|
|
|
Turtle
Creek
|
|
Athens
|
|
Beaumont
|
|
66th
Street
|
|
|
Westmoreland
|
|
Blooming
Grove
|
|
Cleveland
|
|
82nd
Street
|
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(In
thousands)
|
|
|
|
Mar 31,
2020
|
|
|
Dec 31,
2019
|
|
|
Sep 30,
2019
|
|
|
Jun 30,
2019
|
|
|
Mar 31,
2019
|
|
Balance Sheet Data
(at period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
65,035
|
|
|
$
|
80,959
|
|
|
$
|
20,284
|
|
|
$
|
20,315
|
|
|
$
|
24,398
|
|
Loans held for
investment
|
|
|
17,348,398
|
|
|
|
17,211,625
|
|
|
|
10,653,061
|
|
|
|
10,567,060
|
|
|
|
10,389,624
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
1,713,762
|
|
|
|
1,552,762
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total
loans
|
|
|
19,127,195
|
|
|
|
18,845,346
|
|
|
|
10,673,345
|
|
|
|
10,587,375
|
|
|
|
10,414,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities(A)
|
|
|
8,295,495
|
|
|
|
8,570,056
|
|
|
|
8,495,206
|
|
|
|
8,951,940
|
|
|
|
9,137,645
|
|
Federal funds
sold
|
|
|
676
|
|
|
|
519
|
|
|
|
521
|
|
|
|
555
|
|
|
|
566
|
|
Allowance for credit
losses(B)
|
|
|
(327,206)
|
|
|
|
(87,469)
|
|
|
|
(87,061)
|
|
|
|
(87,006)
|
|
|
|
(86,091)
|
|
Cash and due from
banks
|
|
|
381,458
|
|
|
|
573,589
|
|
|
|
420,359
|
|
|
|
302,069
|
|
|
|
291,498
|
|
Goodwill
|
|
|
3,223,144
|
|
|
|
3,223,671
|
|
|
|
1,900,845
|
|
|
|
1,900,845
|
|
|
|
1,900,845
|
|
Core deposit
intangibles, net
|
|
|
83,041
|
|
|
|
86,404
|
|
|
|
29,051
|
|
|
|
30,299
|
|
|
|
31,564
|
|
Other real estate
owned
|
|
|
5,452
|
|
|
|
6,936
|
|
|
|
815
|
|
|
|
2,005
|
|
|
|
2,096
|
|
Fixed assets,
net
|
|
|
327,293
|
|
|
|
326,832
|
|
|
|
263,703
|
|
|
|
262,479
|
|
|
|
257,595
|
|
Other
assets
|
|
|
626,951
|
|
|
|
639,824
|
|
|
|
396,033
|
|
|
|
424,660
|
|
|
|
404,501
|
|
Total
assets
|
|
$
|
31,743,499
|
|
|
$
|
32,185,708
|
|
|
$
|
22,092,817
|
|
|
$
|
22,375,221
|
|
|
$
|
22,354,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
7,461,323
|
|
|
$
|
7,763,894
|
|
|
$
|
5,784,002
|
|
|
$
|
5,691,236
|
|
|
$
|
5,673,707
|
|
Interest-bearing
deposits
|
|
|
16,365,034
|
|
|
|
16,435,838
|
|
|
|
11,145,918
|
|
|
|
11,196,393
|
|
|
|
11,524,063
|
|
Total
deposits
|
|
|
23,826,357
|
|
|
|
24,199,732
|
|
|
|
16,929,920
|
|
|
|
16,887,629
|
|
|
|
17,197,770
|
|
Other
borrowings
|
|
|
1,338,429
|
|
|
|
1,303,730
|
|
|
|
600,795
|
|
|
|
940,874
|
|
|
|
680,952
|
|
Securities sold under
repurchase agreements
|
|
|
344,695
|
|
|
|
377,294
|
|
|
|
311,404
|
|
|
|
313,825
|
|
|
|
254,573
|
|
Subordinated
notes
|
|
|
125,585
|
|
|
|
125,804
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Allowance for credit
losses on off-balance sheet credit
exposures(B)
|
|
|
29,947
|
|
|
|
5,599
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Other
liabilities
|
|
|
222,912
|
|
|
|
202,714
|
|
|
|
123,892
|
|
|
|
104,998
|
|
|
|
111,156
|
|
Total
liabilities
|
|
|
25,887,925
|
|
|
|
26,214,873
|
|
|
|
17,966,011
|
|
|
|
18,247,326
|
|
|
|
18,244,451
|
|
Shareholders'
equity(C)
|
|
|
5,855,574
|
|
|
|
5,970,835
|
|
|
|
4,126,806
|
|
|
|
4,127,895
|
|
|
|
4,109,790
|
|
Total liabilities and
equity
|
|
$
|
31,743,499
|
|
|
$
|
32,185,708
|
|
|
$
|
22,092,817
|
|
|
$
|
22,375,221
|
|
|
$
|
22,354,241
|
|
|
(A)
|
Includes
$(3,421), $763, $49, $1,611, and $895 in unrealized
(losses) gains on available for sale securities for the quarterly
periods ended March 31, 2020, December 31, 2019,
September 30, 2019, June 30, 2019 and March 31, 2019,
respectively.
|
(B)
|
ASU 2016-13 became
effective for Prosperity on January 1, 2020.
|
(C)
|
Includes
$(2,703), $602, $38, $1,273, and $706 in after-tax
unrealized (losses) gains on available for sale securities for the
quarterly periods ended March 31, 2020, December 31,
2019, September 30, 2019, June 30, 2019 and March 31, 2019,
respectively.
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(In
thousands)
|
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2020
|
|
|
Dec 31,
2019
|
|
|
Sep 30,
2019
|
|
|
Jun 30,
2019
|
|
|
Mar 31,
2019
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
247,243
|
|
|
$
|
222,910
|
|
|
$
|
134,943
|
|
|
$
|
133,525
|
|
|
$
|
130,065
|
|
Securities(D)
|
|
|
48,282
|
|
|
|
49,348
|
|
|
|
50,872
|
|
|
|
53,944
|
|
|
|
55,648
|
|
Federal funds sold and
other earning assets
|
|
|
713
|
|
|
|
600
|
|
|
|
363
|
|
|
|
318
|
|
|
|
402
|
|
Total interest
income
|
|
|
296,238
|
|
|
|
272,858
|
|
|
|
186,178
|
|
|
|
187,787
|
|
|
|
186,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
35,018
|
|
|
|
32,759
|
|
|
|
26,939
|
|
|
|
26,562
|
|
|
|
25,128
|
|
Other
borrowings
|
|
|
2,932
|
|
|
|
6,115
|
|
|
|
4,335
|
|
|
|
5,556
|
|
|
|
5,317
|
|
Securities sold under
repurchase agreements
|
|
|
757
|
|
|
|
879
|
|
|
|
914
|
|
|
|
831
|
|
|
|
759
|
|
Subordinated notes and
trust preferred
|
|
|
1,500
|
|
|
|
1,075
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total interest
expense
|
|
|
40,207
|
|
|
|
40,828
|
|
|
|
32,188
|
|
|
|
32,948
|
|
|
|
31,205
|
|
Net interest
income
|
|
|
256,031
|
|
|
|
232,030
|
|
|
|
153,990
|
|
|
|
154,838
|
|
|
|
154,911
|
|
Provision for credit
losses
|
|
|
—
|
|
|
|
1,700
|
|
|
|
1,100
|
|
|
|
800
|
|
|
|
700
|
|
Net interest income
after provision for credit losses
|
|
|
256,031
|
|
|
|
230,330
|
|
|
|
152,890
|
|
|
|
154,038
|
|
|
|
154,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds
(NSF) fees
|
|
|
9,443
|
|
|
|
9,990
|
|
|
|
8,835
|
|
|
|
7,973
|
|
|
|
7,816
|
|
Credit card, debit
card and ATM card income
|
|
|
7,474
|
|
|
|
7,728
|
|
|
|
6,688
|
|
|
|
6,480
|
|
|
|
5,971
|
|
Service charges on
deposit accounts
|
|
|
6,104
|
|
|
|
5,597
|
|
|
|
5,020
|
|
|
|
4,989
|
|
|
|
4,998
|
|
Trust
income
|
|
|
2,662
|
|
|
|
2,582
|
|
|
|
2,492
|
|
|
|
2,558
|
|
|
|
2,595
|
|
Mortgage
income
|
|
|
2,010
|
|
|
|
2,455
|
|
|
|
839
|
|
|
|
990
|
|
|
|
722
|
|
Brokerage
income
|
|
|
650
|
|
|
|
625
|
|
|
|
522
|
|
|
|
541
|
|
|
|
673
|
|
Bank owned life
insurance income
|
|
|
1,545
|
|
|
|
1,502
|
|
|
|
1,314
|
|
|
|
1,321
|
|
|
|
1,289
|
|
Net (loss) gain on
sale or write-down of assets
|
|
|
(385)
|
|
|
|
(1,870)
|
|
|
|
(3)
|
|
|
|
2
|
|
|
|
58
|
|
Other noninterest
income
|
|
|
4,885
|
|
|
|
6,897
|
|
|
|
4,966
|
|
|
|
5,104
|
|
|
|
4,022
|
|
Total noninterest
income
|
|
|
34,388
|
|
|
|
35,506
|
|
|
|
30,673
|
|
|
|
29,958
|
|
|
|
28,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
77,282
|
|
|
|
69,356
|
|
|
|
52,978
|
|
|
|
52,941
|
|
|
|
51,073
|
|
Net occupancy and
equipment
|
|
|
8,980
|
|
|
|
7,420
|
|
|
|
5,607
|
|
|
|
5,492
|
|
|
|
5,466
|
|
Credit and debit card,
data processing and software amortization
|
|
|
11,421
|
|
|
|
9,158
|
|
|
|
4,989
|
|
|
|
4,904
|
|
|
|
4,573
|
|
Regulatory assessments
and FDIC insurance
|
|
|
2,078
|
|
|
|
2,095
|
|
|
|
1,814
|
|
|
|
2,325
|
|
|
|
2,374
|
|
Core deposit
intangibles amortization
|
|
|
3,363
|
|
|
|
2,705
|
|
|
|
1,248
|
|
|
|
1,265
|
|
|
|
1,319
|
|
Depreciation
|
|
|
4,768
|
|
|
|
4,212
|
|
|
|
3,286
|
|
|
|
3,111
|
|
|
|
3,104
|
|
Communications
|
|
|
3,195
|
|
|
|
3,012
|
|
|
|
2,214
|
|
|
|
2,183
|
|
|
|
2,270
|
|
Other real estate
expense
|
|
|
46
|
|
|
|
57
|
|
|
|
68
|
|
|
|
120
|
|
|
|
83
|
|
Net (gain) loss on
sale or write-down of other real estate
|
|
|
(130)
|
|
|
|
(49)
|
|
|
|
(115)
|
|
|
|
(54)
|
|
|
|
(177)
|
|
Merger related
expenses
|
|
|
544
|
|
|
|
46,402
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Other noninterest
expense
|
|
|
13,194
|
|
|
|
12,083
|
|
|
|
8,610
|
|
|
|
8,534
|
|
|
|
8,486
|
|
Total noninterest
expense
|
|
|
124,741
|
|
|
|
156,451
|
|
|
|
80,699
|
|
|
|
80,821
|
|
|
|
78,571
|
|
Income before income
taxes
|
|
|
165,678
|
|
|
|
109,385
|
|
|
|
102,864
|
|
|
|
103,175
|
|
|
|
103,784
|
|
Provision for income
taxes
|
|
|
34,830
|
|
|
|
23,251
|
|
|
|
21,106
|
|
|
|
20,917
|
|
|
|
21,382
|
|
Net income available
to common shareholders
|
|
$
|
130,848
|
|
|
$
|
86,134
|
|
|
$
|
81,758
|
|
|
$
|
82,258
|
|
|
$
|
82,402
|
|
|
(D)
|
Interest income on
securities was reduced by net premium amortization of
$8,005, $8,556, $8,027, $7,607 and $6,589 for the
three-month periods ended March 31, 2020, December 31, 2019,
September 30, 2019, June 30, 2019 and March 31, 2019,
respectively.
|
Prosperity
Bancshares, Inc. ®
|
Financial
Highlights (Unaudited)
|
(Dollars and share
amounts in thousands, except per share data and market
prices)
|
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2020
|
|
|
Dec 31,
2019
|
|
|
Sep 30,
2019
|
|
|
Jun 30,
2019
|
|
|
Mar 31,
2019
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(E) (F)
|
|
$
|
130,848
|
|
|
$
|
86,134
|
|
|
$
|
81,758
|
|
|
$
|
82,258
|
|
|
$
|
82,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.39
|
|
|
$
|
1.01
|
|
|
$
|
1.19
|
|
|
$
|
1.18
|
|
|
$
|
1.18
|
|
Diluted earnings per
share
|
|
$
|
1.39
|
|
|
$
|
1.01
|
|
|
$
|
1.19
|
|
|
$
|
1.18
|
|
|
$
|
1.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (G) (K)
|
|
|
1.67
|
%
|
|
|
1.19
|
%
|
|
|
1.47
|
%
|
|
|
1.46
|
%
|
|
|
1.46
|
%
|
Return on average
common equity (G) (K)
|
|
|
8.86
|
%
|
|
|
6.33
|
%
|
|
|
7.89
|
%
|
|
|
7.92
|
%
|
|
|
8.05
|
%
|
Return on average
tangible common equity (G) (H)
(K)
|
|
|
20.16
|
%
|
|
|
12.50
|
%
|
|
|
14.77
|
%
|
|
|
14.82
|
%
|
|
|
15.24
|
%
|
Tax equivalent net
interest margin (E)
(F) (I)
|
|
|
3.81
|
%
|
|
|
3.66
|
%
|
|
|
3.16
|
%
|
|
|
3.16
|
%
|
|
|
3.20
|
%
|
Efficiency ratio
(H) (J) (L)
|
|
|
42.90
|
%
|
|
|
58.07
|
%
|
|
|
43.70
|
%
|
|
|
43.74
|
%
|
|
|
42.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
|
18.45
|
%
|
|
|
18.55
|
%
|
|
|
18.68
|
%
|
|
|
18.45
|
%
|
|
|
18.38
|
%
|
Common equity tier 1
capital
|
|
|
12.27
|
%
|
|
|
12.30
|
%
|
|
|
16.68
|
%
|
|
|
16.59
|
%
|
|
|
16.76
|
%
|
Tier 1 risk-based
capital
|
|
|
12.27
|
%
|
|
|
12.30
|
%
|
|
|
16.68
|
%
|
|
|
16.59
|
%
|
|
|
16.76
|
%
|
Total risk-based
capital
|
|
|
12.81
|
%
|
|
|
12.70
|
%
|
|
|
17.34
|
%
|
|
|
17.25
|
%
|
|
|
17.42
|
%
|
Tier 1 leverage
capital
|
|
|
9.49
|
%
|
|
|
10.42
|
%
|
|
|
10.86
|
%
|
|
|
10.67
|
%
|
|
|
10.59
|
%
|
Period end tangible
equity to period end tangible assets (H)
|
|
|
8.96
|
%
|
|
|
9.21
|
%
|
|
|
10.90
|
%
|
|
|
10.75
|
%
|
|
|
10.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used in computing earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
94,371
|
|
|
|
85,573
|
|
|
|
68,738
|
|
|
|
69,806
|
|
|
|
69,847
|
|
Diluted
|
|
|
94,371
|
|
|
|
85,573
|
|
|
|
68,738
|
|
|
|
69,806
|
|
|
|
69,847
|
|
Period end shares
outstanding
|
|
|
92,652
|
|
|
|
94,746
|
|
|
|
68,397
|
|
|
|
69,261
|
|
|
|
69,846
|
|
Cash dividends paid
per common share
|
|
$
|
0.46
|
|
|
$
|
0.46
|
|
|
$
|
0.41
|
|
|
$
|
0.41
|
|
|
$
|
0.41
|
|
Book value per common
share
|
|
$
|
63.20
|
|
|
$
|
63.02
|
|
|
$
|
60.34
|
|
|
$
|
59.60
|
|
|
$
|
58.84
|
|
Tangible book value
per common share (H)
|
|
$
|
27.52
|
|
|
$
|
28.08
|
|
|
$
|
32.12
|
|
|
$
|
31.72
|
|
|
$
|
31.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
75.22
|
|
|
$
|
74.35
|
|
|
$
|
71.86
|
|
|
$
|
74.50
|
|
|
$
|
75.36
|
|
Low
|
|
$
|
42.02
|
|
|
$
|
66.60
|
|
|
$
|
62.17
|
|
|
$
|
61.85
|
|
|
$
|
61.65
|
|
Period end closing
price
|
|
$
|
48.25
|
|
|
$
|
71.89
|
|
|
$
|
70.63
|
|
|
$
|
66.05
|
|
|
$
|
69.06
|
|
Employees –
FTE
|
|
|
3,782
|
|
|
|
3,901
|
|
|
|
3,044
|
|
|
|
3,046
|
|
|
|
3,065
|
|
Number of banking
centers
|
|
|
285
|
|
|
|
285
|
|
|
|
243
|
|
|
|
243
|
|
|
|
242
|
|
(E) Includes
purchase accounting adjustments for the periods presented as
follows:
|
|
|
Three Months
Ended
|
|
Mar 31,
2020
|
|
Dec 31,
2019
|
|
Sep 30,
2019
|
|
Jun 30,
2019
|
|
Mar 31,
2019
|
Loan discount
accretion
|
|
|
|
|
|
|
|
|
|
ASC
310-20
|
$22,463
|
|
$17,834
|
|
$1,006
|
|
$880
|
|
$1,474
|
ASC
310-30
|
$6,019
|
|
$5,908
|
|
$277
|
|
$347
|
|
$319
|
Securities net
amortization
|
$194
|
|
$201
|
|
$157
|
|
$255
|
|
$234
|
Time deposits
amortization
|
$2,270
|
|
$1,709
|
|
—
|
|
—
|
|
—
|
|
(F)
|
Using effective
tax rate of 21.0%, 21.3%, 20.5%, 20.3% and 20.6% for the
three-month periods ended March 31, 2020, December 31,
2019, September 30, 2019, June 30, 2019 and March 31, 2019,
respectively.
|
(G)
|
Interim periods
annualized.
|
(H)
|
Refer to the
"Notes to Selected Financial Data" at the end of this Earnings
Release for a reconciliation of this non-GAAP financial measure to
the nearest GAAP financial measure.
|
(I)
|
Net interest
margin for all periods presented is based on average balances on an
actual 365 day or 366 days basis.
|
(J)
|
Calculated by
dividing total noninterest expense, excluding credit loss
provisions and one-time merger and acquisition expenses, 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.
|
(K)
|
Excluding merger
related expenses, net of tax, annualized returns on average assets,
average common equity and average tangible common equity were
1.67%(H), 8.89%(H) and
20.23%(H) for the three months ended March 31,
2020.
|
(L)
|
Excluding merger
related expenses, net of tax, the efficiency ratio was
42.71%(H) for the three months ended March 31,
2020.
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
YIELD
ANALYSIS
|
|
Three Months
Ended
|
|
|
|
|
Mar 31,
2020
|
|
|
Dec 31,
2019
|
|
|
Mar 31,
2019
|
|
|
|
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(M)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(M)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(M)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
66,917
|
|
|
$
|
632
|
|
|
3.80%
|
|
|
$
|
57,171
|
|
|
$
|
570
|
|
|
3.96%
|
|
|
$
|
24,993
|
|
|
$
|
305
|
|
|
4.95%
|
|
|
Loans held for
investment
|
|
|
17,263,098
|
|
|
|
236,517
|
|
|
5.51%
|
|
|
|
15,261,163
|
|
|
|
212,466
|
|
|
5.52%
|
|
|
|
10,367,242
|
|
|
|
129,760
|
|
|
5.08%
|
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
1,120,324
|
|
|
|
10,094
|
|
|
3.62%
|
|
|
|
996,903
|
|
|
|
9,874
|
|
|
3.93%
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total Loans
|
|
|
18,450,339
|
|
|
|
247,243
|
|
|
5.39%
|
|
|
|
16,315,237
|
|
|
|
222,910
|
|
|
5.42%
|
|
|
|
10,392,235
|
|
|
|
130,065
|
|
|
5.08%
|
|
|
Investment
securities
|
|
|
8,434,196
|
|
|
|
48,282
|
|
|
2.30%
|
|
(N)
|
|
8,598,736
|
|
|
|
49,348
|
|
|
2.28%
|
|
(N)
|
|
9,299,963
|
|
|
|
55,648
|
|
|
2.43%
|
|
(N)
|
Federal funds sold
and other earning assets
|
|
|
223,631
|
|
|
|
713
|
|
|
1.28%
|
|
|
|
305,596
|
|
|
|
600
|
|
|
0.78%
|
|
|
|
71,842
|
|
|
|
402
|
|
|
2.27%
|
|
|
Total interest-earning
assets
|
|
|
27,108,166
|
|
|
|
296,238
|
|
|
4.40%
|
|
|
|
25,219,569
|
|
|
|
272,858
|
|
|
4.29%
|
|
|
|
19,764,040
|
|
|
|
186,115
|
|
|
3.82%
|
|
|
Allowance for credit
losses(B)
|
|
|
(328,005)
|
|
|
|
|
|
|
|
|
|
|
|
(86,795)
|
|
|
|
|
|
|
|
|
|
|
|
(86,507)
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,577,251
|
|
|
|
|
|
|
|
|
|
|
|
3,930,651
|
|
|
|
|
|
|
|
|
|
|
|
2,864,039
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
31,357,412
|
|
|
|
|
|
|
|
|
|
|
$
|
29,063,425
|
|
|
|
|
|
|
|
|
|
|
$
|
22,541,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
|
4,990,376
|
|
|
$
|
7,096
|
|
|
0.57%
|
|
|
$
|
4,233,880
|
|
|
$
|
5,755
|
|
|
0.54%
|
|
|
$
|
4,148,377
|
|
|
$
|
6,812
|
|
|
0.67%
|
|
|
Savings and money
market deposits
|
|
|
7,965,440
|
|
|
|
14,122
|
|
|
0.71%
|
|
|
|
7,109,754
|
|
|
|
14,187
|
|
|
0.79%
|
|
|
|
5,472,789
|
|
|
|
11,184
|
|
|
0.83%
|
|
|
Certificates and
other time deposits
|
|
|
3,404,748
|
|
|
|
13,800
|
|
|
1.63%
|
|
|
|
3,044,843
|
|
|
|
12,817
|
|
|
1.67%
|
|
|
|
2,062,753
|
|
|
|
7,132
|
|
|
1.40%
|
|
|
Other
borrowings
|
|
|
832,961
|
|
|
|
2,932
|
|
|
1.42%
|
|
|
|
1,403,686
|
|
|
|
6,115
|
|
|
1.73%
|
|
|
|
844,873
|
|
|
|
5,317
|
|
|
2.55%
|
|
|
Securities sold under
repurchase agreements
|
|
|
366,615
|
|
|
|
757
|
|
|
0.83%
|
|
|
|
351,580
|
|
|
|
879
|
|
|
0.99%
|
|
|
|
272,630
|
|
|
|
759
|
|
|
1.13%
|
|
|
Subordinated notes
and trust preferred
|
|
|
125,694
|
|
|
|
1,500
|
|
|
4.80%
|
|
|
|
87,963
|
|
|
|
1,075
|
|
|
4.85%
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total interest-bearing
liabilities
|
|
|
17,685,834
|
|
|
|
40,207
|
|
|
0.91%
|
|
(O)
|
|
16,231,706
|
|
|
|
40,828
|
|
|
1.00%
|
|
(O)
|
|
12,801,422
|
|
|
|
31,204
|
|
|
0.99%
|
|
(O)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
7,491,798
|
|
|
|
|
|
|
|
|
|
|
|
7,066,878
|
|
|
|
|
|
|
|
|
|
|
|
5,557,821
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on off-balance sheet credit
exposures(B)
|
|
|
13,009
|
|
|
|
|
|
|
|
|
|
|
|
5,599
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
262,523
|
|
|
|
|
|
|
|
|
|
|
|
315,256
|
|
|
|
|
|
|
|
|
|
|
|
86,868
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
25,453,164
|
|
|
|
|
|
|
|
|
|
|
|
23,619,439
|
|
|
|
|
|
|
|
|
|
|
|
18,446,111
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
5,904,248
|
|
|
|
|
|
|
|
|
|
|
|
5,443,986
|
|
|
|
|
|
|
|
|
|
|
|
4,095,461
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
31,357,412
|
|
|
|
|
|
|
|
|
|
|
$
|
29,063,425
|
|
|
|
|
|
|
|
|
|
|
$
|
22,541,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and margin
|
|
|
|
|
|
$
|
256,031
|
|
|
3.80%
|
|
|
|
|
|
|
$
|
232,030
|
|
|
3.65%
|
|
|
|
|
|
|
$
|
154,911
|
|
|
3.18%
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
|
723
|
|
|
|
|
|
|
|
|
|
|
|
668
|
|
|
|
|
|
|
|
|
|
|
|
863
|
|
|
|
|
|
|
Net interest income
and margin (tax equivalent basis)
|
|
|
|
|
|
$
|
256,754
|
|
|
3.81%
|
|
|
|
|
|
|
$
|
232,698
|
|
|
3.66%
|
|
|
|
|
|
|
$
|
155,774
|
|
|
3.20%
|
|
|
|
(M)
|
Annualized and
based on an actual 365 day or 366 day basis.
|
(N)
|
Yield on
securities was impacted by net premium amortization of $8,005,
$8,556 and $6,589 for the three-month periods ended March 31,
2020, December 31, 2019 and March 31, 2020,
respectively.
|
(O)
|
Total cost of
funds, including noninterest bearing deposits, was 0.64%, 0.70% and
0.69% for the three months ended March 31, 2020,
December 31, 2019 and March 31, 2019,
respectively.
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
Mar 31,
2020
|
|
|
Dec 31,
2019
|
|
|
Sep 30,
2019
|
|
|
Jun 30,
2019
|
|
|
Mar 31,
2019
|
|
YIELD TREND
(P)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
3.80
|
%
|
|
|
3.96
|
%
|
|
|
5.01
|
%
|
|
|
5.12
|
%
|
|
|
4.95
|
%
|
Loans held for
investment
|
|
5.51
|
%
|
|
|
5.52
|
%
|
|
|
5.05
|
%
|
|
|
5.08
|
%
|
|
|
5.09
|
%
|
Loans held for
investment - Warehouse Purchase Program
|
|
3.62
|
%
|
|
|
3.93
|
%
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total loans
|
|
5.39
|
%
|
|
|
5.42
|
%
|
|
|
5.05
|
%
|
|
|
5.09
|
%
|
|
|
5.08
|
%
|
Investment securities
(Q)
|
|
2.30
|
%
|
|
|
2.28
|
%
|
|
|
2.30
|
%
|
|
|
2.36
|
%
|
|
|
2.43
|
%
|
Federal funds sold
and other earning assets
|
|
1.28
|
%
|
|
|
0.78
|
%
|
|
|
1.93
|
%
|
|
|
1.98
|
%
|
|
|
2.27
|
%
|
Total interest-earning
assets
|
|
4.40
|
%
|
|
|
4.29
|
%
|
|
|
3.80
|
%
|
|
|
3.81
|
%
|
|
|
3.82
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
0.57
|
%
|
|
|
0.54
|
%
|
|
|
0.62
|
%
|
|
|
0.63
|
%
|
|
|
0.67
|
%
|
Savings and money
market deposits
|
|
0.71
|
%
|
|
|
0.79
|
%
|
|
|
0.90
|
%
|
|
|
0.90
|
%
|
|
|
0.83
|
%
|
Certificates and
other time deposits
|
|
1.63
|
%
|
|
|
1.67
|
%
|
|
|
1.67
|
%
|
|
|
1.57
|
%
|
|
|
1.40
|
%
|
Other
borrowings
|
|
1.42
|
%
|
|
|
1.73
|
%
|
|
|
2.29
|
%
|
|
|
2.52
|
%
|
|
|
2.55
|
%
|
Securities sold under
repurchase agreements
|
|
0.83
|
%
|
|
|
0.99
|
%
|
|
|
1.15
|
%
|
|
|
1.15
|
%
|
|
|
1.13
|
%
|
Subordinated notes
and trust preferred
|
|
4.80
|
%
|
|
|
4.85
|
%
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total interest-bearing
liabilities
|
|
0.91
|
%
|
|
|
1.00
|
%
|
|
|
1.04
|
%
|
|
|
1.05
|
%
|
|
|
0.99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
|
3.80
|
%
|
|
|
3.65
|
%
|
|
|
3.14
|
%
|
|
|
3.14
|
%
|
|
|
3.18
|
%
|
Net Interest Margin
(tax equivalent)
|
|
3.81
|
%
|
|
|
3.66
|
%
|
|
|
3.16
|
%
|
|
|
3.16
|
%
|
|
|
3.20
|
%
|
|
(P)
|
Annualized and
based on average balances on an actual 365 day or 366 day
basis.
|
(Q)
|
Yield on
securities was impacted by net premium amortization of
$8,005, $8,556, $8,027, $7,607 and $6,589 for the
three-month periods ended March 31, 2020, December 31,
2019, September 30, 2019, June 30, 2019 and March 31, 2019,
respectively.
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2020
|
|
|
Dec 31,
2019
|
|
|
Sep 30,
2019
|
|
|
Jun 30,
2019
|
|
|
Mar 31,
2019
|
|
Balance Sheet
Averages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
66,917
|
|
|
$
|
57,171
|
|
|
$
|
21,077
|
|
|
$
|
24,787
|
|
|
$
|
24,993
|
|
Loans held for
investment
|
|
|
17,263,098
|
|
|
|
15,261,163
|
|
|
|
10,589,272
|
|
|
|
10,495,638
|
|
|
|
10,367,242
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
1,120,324
|
|
|
|
996,903
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total Loans
|
|
|
18,450,339
|
|
|
|
16,315,237
|
|
|
|
10,610,349
|
|
|
|
10,520,425
|
|
|
|
10,392,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
|
8,434,196
|
|
|
|
8,598,736
|
|
|
|
8,758,056
|
|
|
|
9,185,877
|
|
|
|
9,299,963
|
|
Federal funds sold
and other earning assets
|
|
|
223,631
|
|
|
|
305,596
|
|
|
|
74,751
|
|
|
|
64,335
|
|
|
|
71,842
|
|
Total interest-earning
assets
|
|
|
27,108,166
|
|
|
|
25,219,569
|
|
|
|
19,443,156
|
|
|
|
19,770,637
|
|
|
|
19,764,040
|
|
Allowance for credit
losses(B)
|
|
|
(328,005)
|
|
|
|
(86,795)
|
|
|
|
(86,996)
|
|
|
|
(86,158)
|
|
|
|
(86,507)
|
|
Cash and due from
banks
|
|
|
321,832
|
|
|
|
275,072
|
|
|
|
230,986
|
|
|
|
227,653
|
|
|
|
266,316
|
|
Goodwill
|
|
|
3,223,633
|
|
|
|
2,658,133
|
|
|
|
1,900,845
|
|
|
|
1,900,845
|
|
|
|
1,900,845
|
|
Core deposit
intangibles, net
|
|
|
84,865
|
|
|
|
28,912
|
|
|
|
29,682
|
|
|
|
30,933
|
|
|
|
32,243
|
|
Other real
estate
|
|
|
5,837
|
|
|
|
4,864
|
|
|
|
997
|
|
|
|
2,053
|
|
|
|
2,100
|
|
Fixed assets,
net
|
|
|
325,337
|
|
|
|
308,692
|
|
|
|
263,495
|
|
|
|
260,054
|
|
|
|
257,811
|
|
Other
assets
|
|
|
615,747
|
|
|
|
654,978
|
|
|
|
423,931
|
|
|
|
420,940
|
|
|
|
404,724
|
|
Total
assets
|
|
$
|
31,357,412
|
|
|
$
|
29,063,425
|
|
|
$
|
22,206,096
|
|
|
$
|
22,526,957
|
|
|
$
|
22,541,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
7,491,798
|
|
|
$
|
7,066,878
|
|
|
$
|
5,701,419
|
|
|
$
|
5,674,615
|
|
|
$
|
5,557,821
|
|
Interest-bearing
demand deposits
|
|
|
4,990,376
|
|
|
|
4,233,880
|
|
|
|
3,575,249
|
|
|
|
3,714,968
|
|
|
|
4,148,377
|
|
Savings and money
market deposits
|
|
|
7,965,440
|
|
|
|
7,109,754
|
|
|
|
5,524,277
|
|
|
|
5,647,494
|
|
|
|
5,472,789
|
|
Certificates and
other time deposits
|
|
|
3,404,748
|
|
|
|
3,044,843
|
|
|
|
2,083,803
|
|
|
|
2,057,033
|
|
|
|
2,062,753
|
|
Total
deposits
|
|
|
23,852,362
|
|
|
|
21,455,355
|
|
|
|
16,884,748
|
|
|
|
17,094,110
|
|
|
|
17,241,740
|
|
Other
borrowings
|
|
|
832,961
|
|
|
|
1,403,686
|
|
|
|
749,814
|
|
|
|
883,557
|
|
|
|
844,873
|
|
Securities sold under
repurchase agreements
|
|
|
366,615
|
|
|
|
351,580
|
|
|
|
315,277
|
|
|
|
288,666
|
|
|
|
272,630
|
|
Subordinated notes
and trust preferred
|
|
|
125,694
|
|
|
|
87,963
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Allowance for credit
losses on off-balance sheet credit
exposures(B)
|
|
|
13,009
|
|
|
|
5,673
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Other
liabilities
|
|
|
262,523
|
|
|
|
320,855
|
|
|
|
111,526
|
|
|
|
108,246
|
|
|
|
86,868
|
|
Shareholders'
equity
|
|
|
5,904,248
|
|
|
|
5,443,986
|
|
|
|
4,144,731
|
|
|
|
4,152,378
|
|
|
|
4,095,461
|
|
Total liabilities and
equity
|
|
$
|
31,357,412
|
|
|
$
|
29,063,425
|
|
|
$
|
22,206,096
|
|
|
$
|
22,526,957
|
|
|
$
|
22,541,572
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
Mar 31,
2020
|
|
|
Dec 31,
2019
|
|
|
Sep 30,
2019
|
|
|
Jun 30,
2019
|
|
|
Mar 31,
2019
|
|
Period End
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
$
|
2,500,110
|
|
|
13.1
|
%
|
|
$
|
2,507,318
|
|
|
13.3
|
%
|
|
$
|
1,120,913
|
|
|
10.5
|
%
|
|
$
|
1,158,657
|
|
|
10.9
|
%
|
|
$
|
1,117,753
|
|
|
10.7
|
%
|
Warehouse purchase
program
|
|
|
1,713,762
|
|
|
9.0
|
%
|
|
|
1,552,762
|
|
|
8.2
|
%
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
Construction, land
development and other land loans
|
|
|
2,051,021
|
|
|
10.7
|
%
|
|
|
2,064,167
|
|
|
11.0
|
%
|
|
|
1,764,648
|
|
|
16.5
|
%
|
|
|
1,739,308
|
|
|
16.4
|
%
|
|
|
1,709,283
|
|
|
16.4
|
%
|
1-4 family
residential
|
|
|
3,993,138
|
|
|
20.9
|
%
|
|
|
3,880,382
|
|
|
20.6
|
%
|
|
|
2,472,907
|
|
|
23.2
|
%
|
|
|
2,456,506
|
|
|
23.2
|
%
|
|
|
2,444,434
|
|
|
23.5
|
%
|
Home
equity
|
|
|
516,003
|
|
|
2.6
|
%
|
|
|
507,029
|
|
|
2.6
|
%
|
|
|
250,775
|
|
|
2.3
|
%
|
|
|
256,772
|
|
|
2.4
|
%
|
|
|
262,276
|
|
|
2.5
|
%
|
Commercial real
estate (includes multi-family residential)
|
|
|
6,576,213
|
|
|
34.4
|
%
|
|
|
6,556,285
|
|
|
34.9
|
%
|
|
|
3,652,176
|
|
|
34.3
|
%
|
|
|
3,551,668
|
|
|
33.6
|
%
|
|
|
3,496,688
|
|
|
33.6
|
%
|
Agriculture (includes
farmland)
|
|
|
635,295
|
|
|
3.3
|
%
|
|
|
680,855
|
|
|
3.6
|
%
|
|
|
729,585
|
|
|
6.8
|
%
|
|
|
736,470
|
|
|
7.0
|
%
|
|
|
708,348
|
|
|
6.8
|
%
|
Consumer and
other
|
|
|
423,000
|
|
|
2.2
|
%
|
|
|
398,271
|
|
|
2.1
|
%
|
|
|
342,839
|
|
|
3.2
|
%
|
|
|
321,023
|
|
|
3.0
|
%
|
|
|
294,405
|
|
|
2.8
|
%
|
Energy
|
|
|
718,653
|
|
|
3.8
|
%
|
|
|
698,277
|
|
|
3.7
|
%
|
|
|
339,502
|
|
|
3.2
|
%
|
|
|
366,971
|
|
|
3.5
|
%
|
|
|
380,835
|
|
|
3.7
|
%
|
Total loans
|
|
$
|
19,127,195
|
|
|
|
|
|
$
|
18,845,346
|
|
|
|
|
|
$
|
10,673,345
|
|
|
|
|
|
$
|
10,587,375
|
|
|
|
|
|
$
|
10,414,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
DDA
|
|
$
|
7,461,323
|
|
|
31.3
|
%
|
|
$
|
7,763,894
|
|
|
32.1
|
%
|
|
$
|
5,784,002
|
|
|
34.2
|
%
|
|
$
|
5,691,236
|
|
|
33.7
|
%
|
|
$
|
5,673,707
|
|
|
33.0
|
%
|
Interest-bearing
DDA
|
|
|
4,980,090
|
|
|
20.9
|
%
|
|
|
5,100,938
|
|
|
21.1
|
%
|
|
|
3,564,419
|
|
|
21.0
|
%
|
|
|
3,530,581
|
|
|
20.9
|
%
|
|
|
3,875,109
|
|
|
22.5
|
%
|
Money
market
|
|
|
5,341,525
|
|
|
22.4
|
%
|
|
|
5,099,024
|
|
|
21.1
|
%
|
|
|
3,457,728
|
|
|
20.4
|
%
|
|
|
3,438,164
|
|
|
20.3
|
%
|
|
|
3,302,445
|
|
|
19.2
|
%
|
Savings
|
|
|
2,716,247
|
|
|
11.4
|
%
|
|
|
2,756,297
|
|
|
11.3
|
%
|
|
|
2,027,621
|
|
|
12.0
|
%
|
|
|
2,158,159
|
|
|
12.8
|
%
|
|
|
2,293,134
|
|
|
13.3
|
%
|
Certificates and
other time deposits
|
|
|
3,327,172
|
|
|
14.0
|
%
|
|
|
3,479,579
|
|
|
14.4
|
%
|
|
|
2,096,150
|
|
|
12.4
|
%
|
|
|
2,069,489
|
|
|
12.3
|
%
|
|
|
2,053,375
|
|
|
12.0
|
%
|
Total
deposits
|
|
$
|
23,826,357
|
|
|
|
|
|
$
|
24,199,732
|
|
|
|
|
|
$
|
16,929,920
|
|
|
|
|
|
$
|
16,887,629
|
|
|
|
|
|
$
|
17,197,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
|
|
80.3
|
%
|
|
|
|
|
|
77.9
|
%
|
|
|
|
|
|
63.0
|
%
|
|
|
|
|
|
62.7
|
%
|
|
|
|
|
|
60.6
|
%
|
|
|
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
Construction
Loans
|
|
|
|
Mar 31,
2020
|
|
|
Dec 31,
2019
|
|
|
Sep 30,
2019
|
|
|
Jun 30,
2019
|
|
|
Mar 31,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family
residential construction
|
|
$
|
655,191
|
|
|
31.9
|
%
|
|
$
|
614,647
|
|
|
29.7
|
%
|
|
$
|
462,714
|
|
|
26.2
|
%
|
|
$
|
446,868
|
|
|
25.7
|
%
|
|
$
|
454,041
|
|
|
26.5
|
%
|
Land
development
|
|
|
110,853
|
|
|
5.4
|
%
|
|
|
88,529
|
|
|
4.3
|
%
|
|
|
80,711
|
|
|
4.6
|
%
|
|
|
87,825
|
|
|
5.0
|
%
|
|
|
84,562
|
|
|
4.9
|
%
|
Raw land
|
|
|
265,943
|
|
|
12.9
|
%
|
|
|
233,559
|
|
|
11.3
|
%
|
|
|
171,609
|
|
|
9.7
|
%
|
|
|
168,531
|
|
|
9.7
|
%
|
|
|
156,674
|
|
|
9.2
|
%
|
Residential
lots
|
|
|
136,861
|
|
|
6.7
|
%
|
|
|
138,961
|
|
|
6.7
|
%
|
|
|
123,265
|
|
|
7.0
|
%
|
|
|
121,586
|
|
|
7.0
|
%
|
|
|
119,301
|
|
|
7.0
|
%
|
Commercial
lots
|
|
|
106,036
|
|
|
5.2
|
%
|
|
|
101,960
|
|
|
4.9
|
%
|
|
|
102,084
|
|
|
5.8
|
%
|
|
|
105,633
|
|
|
6.1
|
%
|
|
|
92,683
|
|
|
5.4
|
%
|
Commercial
construction and other
|
|
|
778,731
|
|
|
37.9
|
%
|
|
|
890,597
|
|
|
43.1
|
%
|
|
|
825,001
|
|
|
46.7
|
%
|
|
|
809,680
|
|
|
46.5
|
%
|
|
|
802,996
|
|
|
47.0
|
%
|
Net unaccreted
discount
|
|
|
(2,594)
|
|
|
|
|
|
|
(4,086)
|
|
|
|
|
|
|
(736)
|
|
|
|
|
|
|
(815)
|
|
|
|
|
|
|
(974)
|
|
|
|
|
Total construction
loans
|
|
$
|
2,051,021
|
|
|
|
|
|
$
|
2,064,167
|
|
|
|
|
|
$
|
1,764,648
|
|
|
|
|
|
$
|
1,739,308
|
|
|
|
|
|
$
|
1,709,283
|
|
|
|
|
Non-Owner Occupied
Commercial Real Estate Loans by Metropolitan Statistical Area (MSA)
as of March 31, 2020
|
|
|
Houston
|
|
|
Dallas
|
|
|
Austin
|
|
|
OK
City
|
|
|
Tulsa
|
|
|
Other
(R)
|
|
|
Total
|
|
|
Collateral
Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopping
center/retail
|
$
|
370,875
|
|
|
$
|
295,704
|
|
|
$
|
49,914
|
|
|
$
|
16,013
|
|
|
$
|
32,207
|
|
|
$
|
288,543
|
|
|
$
|
1,053,256
|
|
|
Commercial and
industrial buildings
|
|
149,079
|
|
|
|
79,447
|
|
|
|
13,566
|
|
|
|
12,009
|
|
|
|
19,574
|
|
|
|
175,596
|
|
|
|
449,271
|
|
|
Office
buildings
|
|
194,554
|
|
|
|
695,103
|
|
|
|
26,001
|
|
|
|
43,739
|
|
|
|
5,526
|
|
|
|
89,462
|
|
|
|
1,054,385
|
|
|
Medical
buildings
|
|
38,769
|
|
|
|
50,872
|
|
|
|
12,832
|
|
|
|
24,711
|
|
|
|
25,620
|
|
|
|
51,514
|
|
|
|
204,318
|
|
|
Apartment
buildings
|
|
358,231
|
|
|
|
726,145
|
|
|
|
33,207
|
|
|
|
16,028
|
|
|
|
43,127
|
|
|
|
235,595
|
|
|
|
1,412,333
|
|
|
Hotel
|
|
60,893
|
|
|
|
73,386
|
|
|
|
33,108
|
|
|
|
30,038
|
|
|
|
—
|
|
|
|
135,078
|
|
|
|
332,503
|
|
|
Other
|
|
52,565
|
|
|
|
32,165
|
|
|
|
15,770
|
|
|
|
10,376
|
|
|
|
4,444
|
|
|
|
84,748
|
|
|
|
200,068
|
|
|
Total
|
$
|
1,224,966
|
|
|
$
|
1,952,822
|
|
|
$
|
184,398
|
|
|
$
|
152,914
|
|
|
$
|
130,498
|
|
|
$
|
1,060,536
|
|
|
$
|
4,706,134
|
|
(S)
|
Acquired
Loans
|
|
|
|
Non-PCD
Loans
|
|
|
PCD
Loans
|
|
|
Total Acquired
Loans
|
|
|
|
Balance
at
Acquisition
Date
|
|
|
Balance
at
Dec 31,
2019
|
|
|
Balance
at
Mar 31,
2020
|
|
|
Balance
at
Acquisition
Date
|
|
|
Balance
at
Dec 31,
2019
|
|
|
Balance
at
Mar 31,
2020
|
|
|
Balance
at
Acquisition
Date
|
|
|
Balance
at
Dec 31,
2019
|
|
|
Balance
at
Mar 31,
2020
|
|
Loan
marks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(T)
|
|
$
|
229,080
|
|
|
$
|
10,115
|
|
|
$
|
9,238
|
|
|
$
|
142,128
|
|
|
$
|
1,562
|
|
|
$
|
—
|
|
|
$
|
371,208
|
|
|
$
|
11,677
|
|
|
$
|
9,238
|
|
LegacyTexas
merger(U)
|
|
|
116,519
|
|
|
|
100,015
|
|
|
|
78,375
|
|
|
|
177,924
|
|
|
|
165,758
|
|
|
|
29,460
|
|
|
|
294,443
|
|
|
|
265,773
|
|
|
|
107,835
|
|
Total
|
|
|
345,599
|
|
|
|
110,130
|
|
|
|
87,613
|
|
|
|
320,052
|
|
|
|
167,320
|
|
|
|
29,460
|
|
(W)
|
|
665,651
|
|
|
|
277,450
|
|
|
|
117,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(T)
|
|
|
5,690,998
|
|
|
|
379,729
|
|
|
|
350,738
|
|
|
|
275,221
|
|
|
|
7,889
|
|
|
|
7,548
|
|
|
|
5,966,219
|
|
|
|
387,618
|
|
|
|
358,286
|
|
LegacyTexas
merger(U)
|
|
|
6,595,161
|
|
|
|
5,722,811
|
|
|
|
5,393,630
|
|
|
|
414,352
|
|
|
|
402,896
|
|
|
|
347,612
|
|
|
|
7,009,513
|
|
|
|
6,125,707
|
|
|
|
5,741,242
|
|
Total
|
|
|
12,286,159
|
|
|
|
6,102,540
|
|
|
|
5,744,368
|
|
|
|
689,573
|
|
|
|
410,785
|
|
|
|
355,160
|
|
|
|
12,975,732
|
|
(V)
|
|
6,513,325
|
|
|
|
6,099,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan balances less loan marks
|
|
$
|
11,940,560
|
|
|
$
|
5,992,410
|
|
|
$
|
5,656,755
|
|
|
$
|
369,521
|
|
|
$
|
243,465
|
|
|
$
|
325,700
|
|
|
$
|
12,310,081
|
|
|
$
|
6,235,875
|
|
|
$
|
5,982,455
|
|
|
(R)
|
Includes other MSA
and non-MSA regions.
|
(S)
|
Represents a
portion of total commercial real estate loans of $6.576 billion as
of March 31, 2020.
|
(T)
|
Includes Bank of
Texas, Bank Arlington, American State Bank, Community National
Bank, First Federal Bank Texas, Coppermark Bank, First Victoria
National Bank, The F&M Bank & Trust Company and Tradition
Bank.
|
(U)
|
LegacyTexas merger
was completed on November 1, 2019. During the fourth quarter
of 2019, LegacyTexas added $7.010 billion in loans with
related purchase accounting adjustments of $294.443 million at
acquisition date.
|
(V)
|
Actual principal
balances acquired.
|
(W)
|
ASU 2016-13 became
effective for Prosperity on January 1, 2020.
|
Prosperity
Bancshares, Inc.®
|
Financial
Highlights (Unaudited)
|
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
Mar 31,
2020
|
|
|
Dec 31,
2019
|
|
|
Sep 30,
2019
|
|
|
Jun 30,
2019
|
|
|
Mar 31,
2019
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
|
58,194
|
|
|
$
|
55,243
|
|
|
$
|
49,973
|
|
|
$
|
37,289
|
|
|
$
|
37,491
|
|
Accruing loans 90 or
more days past due
|
|
3,255
|
|
|
|
441
|
|
|
|
341
|
|
|
|
1,594
|
|
|
|
647
|
|
Total nonperforming
loans
|
|
61,449
|
|
|
|
55,684
|
|
|
|
50,314
|
|
|
|
38,883
|
|
|
|
38,138
|
|
Repossessed
assets
|
|
278
|
|
|
|
324
|
|
|
|
28
|
|
|
|
670
|
|
|
|
649
|
|
Other real
estate
|
|
5,452
|
|
|
|
6,935
|
|
|
|
815
|
|
|
|
2,005
|
|
|
|
2,096
|
|
Total nonperforming
assets
|
$
|
67,179
|
|
|
$
|
62,943
|
|
|
$
|
51,157
|
|
|
$
|
41,558
|
|
|
$
|
40,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
15,987
|
|
|
$
|
17,086
|
|
|
$
|
15,974
|
|
|
$
|
17,592
|
|
|
$
|
17,119
|
|
Construction, land
development and other land loans
|
|
1,125
|
|
|
|
1,177
|
|
|
|
874
|
|
|
|
2,296
|
|
|
|
1,488
|
|
1-4 family residential
(includes home equity)
|
|
28,996
|
|
|
|
26,453
|
|
|
|
19,600
|
|
|
|
16,641
|
|
|
|
17,508
|
|
Commercial real estate
(includes multi-family residential)
|
|
20,155
|
|
|
|
18,031
|
|
|
|
14,384
|
|
|
|
4,352
|
|
|
|
4,166
|
|
Agriculture (includes
farmland)
|
|
896
|
|
|
|
101
|
|
|
|
285
|
|
|
|
616
|
|
|
|
542
|
|
Consumer and
other
|
|
20
|
|
|
|
95
|
|
|
|
40
|
|
|
|
61
|
|
|
|
60
|
|
Total
|
$
|
67,179
|
|
|
$
|
62,943
|
|
|
$
|
51,157
|
|
|
$
|
41,558
|
|
|
$
|
40,883
|
|
Number of
loans/properties
|
|
198
|
|
|
|
236
|
|
|
|
89
|
|
|
|
92
|
|
|
|
84
|
|
Allowance for credit
losses at end of period(X)
|
$
|
327,206
|
|
|
$
|
87,469
|
|
|
$
|
87,061
|
|
|
$
|
87,006
|
|
|
$
|
86,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
(28)
|
|
|
$
|
76
|
|
|
$
|
(83)
|
|
|
$
|
(828)
|
|
|
$
|
1,719
|
|
Construction, land
development and other land loans
|
|
(12)
|
|
|
|
(6)
|
|
|
|
(6)
|
|
|
|
7
|
|
|
|
—
|
|
1-4 family residential
(includes home equity)
|
|
5
|
|
|
|
20
|
|
|
|
(9)
|
|
|
|
11
|
|
|
|
(3)
|
|
Commercial real estate
(includes multi-family residential)
|
|
(81)
|
|
|
|
254
|
|
|
|
(1)
|
|
|
|
(1)
|
|
|
|
(1)
|
|
Agriculture (includes
farmland)
|
|
(1)
|
|
|
|
(18)
|
|
|
|
278
|
|
|
|
46
|
|
|
|
(1,278)
|
|
Consumer and
other
|
|
918
|
|
|
|
965
|
|
|
|
867
|
|
|
|
650
|
|
|
|
612
|
|
Total
|
$
|
801
|
|
|
$
|
1,291
|
|
|
$
|
1,046
|
|
|
$
|
(115)
|
|
|
$
|
1,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to average interest-earning assets
|
|
0.25
|
%
|
|
|
0.25
|
%
|
|
|
0.26
|
%
|
|
|
0.21
|
%
|
|
|
0.21
|
%
|
Nonperforming assets
to loans and other real estate
|
|
0.35
|
%
|
|
|
0.33
|
%
|
|
|
0.48
|
%
|
|
|
0.39
|
%
|
|
|
0.39
|
%
|
Net charge-offs to
average loans (annualized)
|
|
0.02
|
%
|
|
|
0.03
|
%
|
|
|
0.04
|
%
|
|
—
|
|
|
|
0.04
|
%
|
Allowance for credit
losses to total loans(X)
|
|
1.71
|
%
|
|
|
0.46
|
%
|
|
|
0.82
|
%
|
|
|
0.82
|
%
|
|
|
0.83
|
%
|
Allowance for credit
losses to total loans, excluding Warehouse Purchase Program
loans(X)
|
|
1.88
|
%
|
|
|
0.51
|
%
|
|
|
0.82
|
%
|
|
|
0.82
|
%
|
|
|
0.83
|
%
|
|
(X) ASU
2016-13 became effective for Prosperity on January 1,
2020.
|
Prosperity
Bancshares, Inc.®
|
Notes to Selected
Financial Data (Unaudited)
|
(Dollars and share
amounts in thousands, except per share data)
|
|
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 diluted earnings per share
excluding merger related expenses, tangible book value per share,
return on average tangible common equity, the tangible equity to
tangible assets ratio and the efficiency ratio, excluding net gains
and losses on the sale of assets and securities, for internal
planning and forecasting purposes. In addition, due to the
application of purchase accounting, Prosperity uses certain
non-GAAP financial 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 and Warehouse Purchase Program loans). Prosperity
has included information below relating to these non-GAAP financial
measures for the applicable periods presented.
|
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2020
|
|
|
Dec 31,
2019
|
|
|
Sep 30,
2019
|
|
|
Jun 30,
2019
|
|
|
Mar 31,
2019
|
|
Reconciliation of
diluted earnings per share to diluted earnings per share, excluding
merger related expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
130,848
|
|
|
$
|
86,134
|
|
|
$
|
81,758
|
|
|
$
|
82,258
|
|
|
$
|
82,402
|
|
Add: merger related
expenses, net of tax(Y)
|
|
|
430
|
|
|
|
36,658
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net income, excluding
merger related expenses, net of tax(Y)
|
|
$
|
131,278
|
|
|
$
|
122,792
|
|
|
$
|
81,758
|
|
|
$
|
82,258
|
|
|
$
|
82,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
|
|
94,371
|
|
|
|
85,573
|
|
|
|
68,738
|
|
|
|
69,806
|
|
|
|
69,847
|
|
Merger related
expenses per diluted share, net of tax(Y)
|
|
$
|
—
|
|
|
$
|
0.43
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Diluted earnings per
share, excluding merger related expenses, net of
tax(Y)
|
|
$
|
1.39
|
|
|
$
|
1.44
|
|
|
$
|
1.19
|
|
|
$
|
1.18
|
|
|
$
|
1.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
return on average assets to return on average assets excluding
merger related expenses, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
merger related expenses, net of tax(Y)
|
|
$
|
131,278
|
|
|
$
|
122,792
|
|
|
$
|
81,758
|
|
|
$
|
82,258
|
|
|
$
|
82,402
|
|
Average total
assets
|
|
$
|
31,357,412
|
|
|
$
|
29,063,425
|
|
|
$
|
22,206,096
|
|
|
$
|
22,526,957
|
|
|
$
|
22,541,572
|
|
Return on average
assets excluding merger related expenses, net of tax (G)
(Y)
|
|
|
1.67
|
%
|
|
|
1.69
|
%
|
|
|
1.47
|
%
|
|
|
1.46
|
%
|
|
|
1.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
return on average common equity to return on average common equity
excluding merger related expenses, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
merger related expenses, net of tax(Y)
|
|
$
|
131,278
|
|
|
$
|
122,792
|
|
|
$
|
81,758
|
|
|
$
|
82,258
|
|
|
$
|
82,402
|
|
Average shareholders'
equity
|
|
$
|
5,904,248
|
|
|
$
|
5,443,986
|
|
|
$
|
4,144,731
|
|
|
$
|
4,152,378
|
|
|
$
|
4,095,461
|
|
Return on average
common equity excluding merger related expenses, net of
tax (G) (Y)
|
|
|
8.89
|
%
|
|
|
9.02
|
%
|
|
|
7.89
|
%
|
|
|
7.92
|
%
|
|
|
8.05
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
return on average common equity to return on average tangible
common equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
130,848
|
|
|
$
|
86,134
|
|
|
$
|
81,758
|
|
|
$
|
82,258
|
|
|
$
|
82,402
|
|
Average shareholders'
equity
|
|
$
|
5,904,248
|
|
|
$
|
5,443,986
|
|
|
$
|
4,144,731
|
|
|
$
|
4,152,378
|
|
|
$
|
4,095,461
|
|
Less: Average
goodwill and other intangible assets
|
|
|
(3,308,498)
|
|
|
|
(2,687,045)
|
|
|
|
(1,930,527)
|
|
|
|
(1,931,778)
|
|
|
|
(1,933,088)
|
|
Average tangible
shareholders' equity
|
|
$
|
2,595,750
|
|
|
$
|
2,756,941
|
|
|
$
|
2,214,204
|
|
|
$
|
2,220,600
|
|
|
$
|
2,162,373
|
|
Return on average
tangible common equity (G)
|
|
|
20.16
|
%
|
|
|
12.50
|
%
|
|
|
14.77
|
%
|
|
|
14.82
|
%
|
|
|
15.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
return on average common equity to return on average tangible
common equity excluding merger related expenses, net of
tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding
merger related expenses, net of tax(Y)
|
|
$
|
131,278
|
|
|
$
|
122,792
|
|
|
$
|
81,758
|
|
|
$
|
82,258
|
|
|
$
|
82,402
|
|
Average shareholders'
equity
|
|
$
|
5,904,248
|
|
|
$
|
5,443,986
|
|
|
$
|
4,144,731
|
|
|
$
|
4,152,378
|
|
|
$
|
4,095,461
|
|
Less: Average
goodwill and other intangible assets
|
|
|
(3,308,498)
|
|
|
|
(2,687,045)
|
|
|
|
(1,930,527)
|
|
|
|
(1,931,778)
|
|
|
|
(1,933,088)
|
|
Average tangible
shareholders' equity
|
|
$
|
2,595,750
|
|
|
$
|
2,756,941
|
|
|
$
|
2,214,204
|
|
|
$
|
2,220,600
|
|
|
$
|
2,162,373
|
|
Return on average
tangible common equity excluding merger related expenses, net of
tax (F) (Y)
|
|
|
20.23
|
%
|
|
|
17.82
|
%
|
|
|
14.77
|
%
|
|
|
14.82
|
%
|
|
|
15.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Y) Calculated
assuming a federal tax rate of 21.0%.
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2020
|
|
|
Dec 31,
2019
|
|
|
Sep 30,
2019
|
|
|
Jun 30,
2019
|
|
|
Mar 31,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
book value per share to tangible book value per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
5,855,574
|
|
|
$
|
5,970,835
|
|
|
$
|
4,126,806
|
|
|
$
|
4,127,895
|
|
|
$
|
4,109,790
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,306,185)
|
|
|
|
(3,310,075)
|
|
|
|
(1,929,896)
|
|
|
|
(1,931,144)
|
|
|
|
(1,932,409)
|
|
Tangible shareholders'
equity
|
|
$
|
2,549,389
|
|
|
$
|
2,660,760
|
|
|
$
|
2,196,910
|
|
|
$
|
2,196,751
|
|
|
$
|
2,177,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
|
|
92,652
|
|
|
|
94,746
|
|
|
|
68,397
|
|
|
|
69,261
|
|
|
|
69,846
|
|
Tangible book value
per share:
|
|
$
|
27.52
|
|
|
$
|
28.08
|
|
|
$
|
32.12
|
|
|
$
|
31.72
|
|
|
$
|
31.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
equity to assets ratio to period end tangible equity to period end
tangible assets ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
shareholders' equity
|
|
$
|
2,549,389
|
|
|
$
|
2,660,760
|
|
|
$
|
2,196,910
|
|
|
$
|
2,196,751
|
|
|
$
|
2,177,381
|
|
Total
assets
|
|
$
|
31,743,499
|
|
|
$
|
32,185,708
|
|
|
$
|
22,092,817
|
|
|
$
|
22,375,221
|
|
|
$
|
22,354,241
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,306,185)
|
|
|
|
(3,310,075)
|
|
|
|
(1,929,896)
|
|
|
|
(1,931,144)
|
|
|
|
(1,932,409)
|
|
Tangible
assets
|
|
$
|
28,437,314
|
|
|
$
|
28,875,633
|
|
|
$
|
20,162,921
|
|
|
$
|
20,444,077
|
|
|
$
|
20,421,832
|
|
Period end tangible
equity to period end tangible assets ratio:
|
|
|
8.96
|
%
|
|
|
9.21
|
%
|
|
|
10.90
|
%
|
|
|
10.75
|
%
|
|
|
10.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
allowance for credit losses to total loans to allowance for credit
losses to total loans, excluding Warehouse Purchase Program
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses (X)
|
|
$
|
327,206
|
|
|
$
|
87,469
|
|
|
$
|
87,061
|
|
|
$
|
87,006
|
|
|
$
|
86,091
|
|
Total
loans
|
|
$
|
19,127,195
|
|
|
$
|
18,845,346
|
|
|
$
|
10,673,345
|
|
|
$
|
10,587,375
|
|
|
$
|
10,414,022
|
|
Less: Warehouse
Purchase Program loans
|
|
|
1,713,762
|
|
|
|
1,552,762
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total loans less
Warehouse Purchase Program loans
|
|
$
|
17,413,433
|
|
|
$
|
17,292,584
|
|
|
$
|
10,673,345
|
|
|
$
|
10,587,375
|
|
|
$
|
10,414,022
|
|
Allowance for credit
losses to total loans, excluding Warehouse Purchase Program
loans
|
|
|
1.88
|
%
|
|
|
0.51
|
%
|
|
|
0.82
|
%
|
|
|
0.82
|
%
|
|
|
0.83
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
efficiency ratio to efficiency ratio, excluding net gains and
losses on the sale of assets and securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
124,741
|
|
|
$
|
156,451
|
|
|
$
|
80,699
|
|
|
$
|
80,821
|
|
|
$
|
78,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
256,031
|
|
|
$
|
232,030
|
|
|
$
|
153,990
|
|
|
$
|
154,838
|
|
|
$
|
154,911
|
|
Noninterest
income
|
|
|
34,388
|
|
|
|
35,506
|
|
|
|
30,673
|
|
|
|
29,958
|
|
|
|
28,144
|
|
Less: net (loss) gain
on sale of assets
|
|
|
(385)
|
|
|
|
(1,870)
|
|
|
|
(3)
|
|
|
|
2
|
|
|
|
58
|
|
Noninterest income
excluding net gains and losses on the sale of assets and
securities
|
|
|
34,773
|
|
|
|
37,376
|
|
|
|
30,676
|
|
|
|
29,956
|
|
|
|
28,086
|
|
Total income excluding
net gains and losses on the sale of assets and
securities
|
|
$
|
290,804
|
|
|
$
|
269,406
|
|
|
$
|
184,666
|
|
|
$
|
184,794
|
|
|
$
|
182,997
|
|
Efficiency ratio,
excluding net gains and losses on the sale of assets and
securities
|
|
|
42.90
|
%
|
|
|
58.07
|
%
|
|
|
43.70
|
%
|
|
|
43.74
|
%
|
|
|
42.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
efficiency ratio to efficiency ratio, excluding net gains and
losses on the sale of assets and securities and merger related
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
124,741
|
|
|
$
|
156,451
|
|
|
$
|
80,699
|
|
|
$
|
80,821
|
|
|
$
|
78,571
|
|
Less: merger related
expenses
|
|
|
544
|
|
|
|
46,402
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Noninterest expense
excluding merger related expenses
|
|
$
|
124,197
|
|
|
$
|
110,049
|
|
|
$
|
80,699
|
|
|
$
|
80,821
|
|
|
$
|
78,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
256,031
|
|
|
$
|
232,030
|
|
|
$
|
153,990
|
|
|
$
|
154,838
|
|
|
$
|
154,911
|
|
Noninterest
income
|
|
|
34,388
|
|
|
|
35,506
|
|
|
|
30,673
|
|
|
|
29,958
|
|
|
|
28,144
|
|
Less: net (loss) gain
on sale of assets
|
|
|
(385)
|
|
|
|
(1,870)
|
|
|
|
(3)
|
|
|
|
2
|
|
|
|
58
|
|
Noninterest income
excluding net gains and losses on the sale of assets and
securities
|
|
|
34,773
|
|
|
|
37,376
|
|
|
|
30,676
|
|
|
|
29,956
|
|
|
|
28,086
|
|
Total income excluding
net gains and losses on the sale of assets and
securities
|
|
$
|
290,804
|
|
|
$
|
269,406
|
|
|
$
|
184,666
|
|
|
$
|
184,794
|
|
|
$
|
182,997
|
|
Efficiency ratio,
excluding net gains and losses on the sale of assets and securities
and merger related expenses
|
|
|
42.71
|
%
|
|
|
40.85
|
%
|
|
|
43.70
|
%
|
|
|
43.74
|
%
|
|
|
42.94
|
%
|
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SOURCE Prosperity Bancshares, Inc.