- Third quarter net income of $135.8 million and earnings per share
(diluted) of $1.49
- Third quarter net income increased $7.3 million or 5.7% compared to the second
quarter 2022
- Loans, excluding Warehouse Purchase Program and SBA Paycheck
Protection Program loans, increased $530.8
million or 3.1% (12.5% annualized) during the third
quarter
- Allowance for credit losses on loans to total loans,
excluding Warehouse Purchase Program and SBA Paycheck Protection
Program loans, of 1.61%(1)
- Nonperforming assets remain low at 0.06% of third quarter
average interest-earning assets
- Return (annualized) on third quarter average assets of
1.45%, average common equity of 8.24% and average tangible common
equity of 16.44%(1)
- Net interest margin on a tax equivalent basis increased 14
basis points to 3.11% during the third quarter
- Increase in dividend of 5.8% to $0.55 for the fourth quarter 2022
- Announced the signing of a definitive merger agreement with
First Bancshares of Texas, Inc.,
headquartered in Midland,
Texas
- Announced the signing of a definitive merger agreement with
Lone Star State Bancshares, Inc., headquartered in Lubbock, Texas
HOUSTON, Oct. 26,
2022 /PRNewswire/ -- Prosperity Bancshares,
Inc.® (NYSE: PB), the parent company of Prosperity
Bank® (collectively, "Prosperity"), reported net income
of $135.8 million for the quarter
ended September 30, 2022 compared
with $128.6
million for the same period in 2021. Net income
per diluted common share was $1.49 for the quarter ended
September 30, 2022 compared with $1.39 for the same period in 2021, an increase of
7.2%, and the annualized return on third
quarter average assets was 1.45%. Additionally, loans,
excluding Warehouse Purchase Program and SBA Paycheck Protection
Program ("PPP") loans, increased $530.8 million or 3.1% (12.5% annualized)
during the third quarter of 2022. Nonperforming assets remain low
at 0.06% of third quarter average interest-earning assets.
"This is an exciting time for Prosperity. On October 11, 2022, we announced the signing of
definitive merger agreements with First Bancshares of Texas, Inc., headquartered in Midland, Texas and Lone Star State Bancshares,
Inc., headquartered in Lubbock,
Texas. On a pro forma basis, we will have over $6 billion in assets located in our West Texas market, and the number one market
share in the combined Midland and
Odessa markets and the number
three market share in Lubbock,"
said David Zalman, Prosperity's
Senior Chairman and Chief Executive Officer.
"We also recently announced that the Board of Directors voted to
increase the fourth quarter 2022 dividend to $0.55 a share. This represents a 6.0% increase in
dividends declared in 2022 compared with 2021. The increase
reflects the confidence the Board has in the continuing success of
our company and in the communities we serve," continued Zalman.
"With the Federal Reserve continuing to raise rates, our net
interest margin continues to increase, which improves our earnings.
This trend should continue as our assets reprice over time. We saw
strong loan growth for the quarter, with loans, excluding Warehouse
Purchase Program and PPP loans, increasing 12.5% on an annualized
basis. Our asset quality continues to be one of the best in
banking with nonperforming assets of 0.06% of quarterly average
interest-earning assets as of September 30,
2022," added Zalman.
"Individuals and businesses continue to move to Texas and Oklahoma because of lower tax rates and a
pro-business political environment," stated Zalman.
"We are excited with our performance and the recently announced
merger transactions and look forward to continuing to build our
company. I want to thank our customers for their business and
loyalty and our associates and board members for their work and
dedication," concluded Zalman.
Results of Operations for the Three Months Ended
September 30, 2022
Net income was $135.8
million(2) for the three months ended
September 30, 2022 compared with $128.6
million(3) for the same period in 2021, an
increase of $7.2 million or
5.6%. The change was primarily due to an increase in securities
interest income, partially offset by a decrease in loan interest
income (including a decrease in PPP fees and interest income of
$13.9 million), a decrease in
loan discount accretion of $4.1
million, and an increase in interest expense. Net income per
diluted common share was $1.49 for
the three months ended September 30, 2022 compared with
$1.39 for the same period in 2021. On
a linked quarter basis, net income was $135.8 million(2) for the three months
ended September 30, 2022 compared with $128.5 million(4) for the three months
ended June 30, 2022, an increase of $7.3 million or 5.7%. The change was
primarily due to an increase in loan interest income and securities
interest income, partially offset by an increase in interest
expense. Net income per diluted common share was $1.49 for the three months ended
September 30, 2022 compared with $1.40 for the three months ended June 30,
2022. Annualized returns on average assets, average common equity
and average tangible common equity for the three months ended
September 30, 2022 were 1.45%, 8.24% and 16.44%(1),
respectively. Prosperity's efficiency ratio (excluding net gains
and losses on the sale or write down of assets and securities)
was 41.38%(1) for the three months ended
September 30, 2022.
Net interest income before provision for credit losses for the
three months ended September 30, 2022
was $260.7 million compared with
$248.6 million for the same period in
2021, an increase of $12.1 million or
4.9%. The change was primarily due to an increase in the average
balance and average rates on investment securities and an increase
in the average balance on loans held for investment, partially
offset by a decrease in loan discount accretion of $4.1 million, a decrease in PPP fees and interest
income of $13.9 million, and an
increase in the average rates on interest-bearing liabilities. On a
linked quarter basis, net interest income before provision for
credit losses was $260.7 million
compared with $248.5 million for the
three months ended June 30, 2022, an
increase of $12.2 million or 4.9%.
The change was primarily due to an increase in the average balances
and average rates on loans and average rates on investment
securities, partially offset by an increase in the average rates on
interest-bearing liabilities.
The net interest margin on a tax equivalent basis was 3.11% for
the three months ended September 30, 2022 compared
with 3.10% for the same period in 2021 and 2.97% for the three
months ended June 30, 2022. The linked quarter increase was
primarily due to higher average balances and average rates on loans
and average rates on investment securities, partially offset by an
increase in the average rates on interest-bearing liabilities.
Noninterest income was $34.7
million for the three months ended September 30, 2022
compared with $34.6 million for the
same period in 2021. On a linked quarter basis, noninterest income
was $34.7 million compared with
$37.6 million for the three months
ended June 30, 2022, a decrease of $2.9 million or 7.7%, primarily due to
decreases in net gain on the sale or write-down of assets and other
noninterest income.
Noninterest expense was $122.2
million for the three months ended September 30, 2022
compared with $119.8 million for the
same period in 2021, an increase of $2.4 million or 2.0%, primarily due to an
increase in salaries and credit and debit card, data processing and
software amortization. On a linked quarter basis, noninterest
expense decreased $664 thousand to
$122.2 million compared with
$122.9 million for the three months
ended June 30, 2022.
Results of Operations for the Nine Months Ended
September 30, 2022
Net income was $386.6
million(5) for the nine months ended
September 30, 2022 compared with $392.5
million(6) for the same period in 2021. Net
income per diluted common share was $4.22 for the nine months ended
September 30, 2022 compared with $4.23 for the same period in 2021. Annualized
returns on average assets, average common equity and average
tangible common equity for the nine months ended September 30,
2022 were 1.37%, 7.88% and 15.83%(1), respectively.
Prosperity's efficiency ratio (excluding net gains and losses on
the sale or write down of assets and securities) was
42.70%(1) for the nine months ended September 30,
2022.
Net interest income before provision for credit losses for the
nine months ended September 30, 2022 was $749.1 million compared with $748.5 million for the prior year, an increase of
$546 thousand.
The net interest margin on a tax equivalent basis for the nine
months ended September 30, 2022 was 2.99% compared
with 3.20% for the same period in 2021. The change was
primarily due to a decrease in loan discount accretion of
$27.4 million and a decrease in
PPP fees and interest income of $36.1 million, partially offset by an
increase in the average balances and rates on investment securities
and a decrease in the average rate on interest-bearing
liabilities.
Noninterest income was $107.4
million for the nine months ended September 30, 2022
compared with $104.2 million for the
same period in 2021, an increase of $3.2
million or 3.1%. The increase was primarily due to an
increase in NSF income, a net gain on the sale or write-down of
assets and an increase in trust income, partially offset by a
decrease in mortgage income.
Noninterest expense was $364.9
million for the nine months ended September 30, 2022
compared with $354.1 million for the
same period in 2021, an increase of $10.9
million or 3.1%. The increase was primarily due to an
increase in salaries and benefits, the change in net loss (gain) on
sale or write-down of other real estate and an increase in credit
and debit card and data processing expense.
Balance Sheet Information
At September 30, 2022, Prosperity had $37.844 billion in total assets, an increase of
$1.331 billion or 3.6%, compared with
$36.512 billion at September 30,
2021.
Loans at September 30, 2022 were $18.506 billion, a decrease of $451.4 million or 2.4%, compared with
$18.958 billion at September 30,
2021, primarily due to decreases in Warehouse Purchase Program, PPP
and commercial real estate loans, partially offset by increases in
1-4 family residential and construction, land development and other
land loans. Linked quarter loans increased $297.4 million or 1.6% (6.5% annualized) from
$18.209 billion at June 30,
2022. Excluding Warehouse Purchase Program and PPP loans, loans at
September 30, 2022 were $17.575 billion compared to $16.594 billion at September 30, 2021,
an increase of $980.7 million or
5.9%. Linked quarter loans, excluding Warehouse Purchase Program
and PPP loans, increased $530.8 million or 3.1% (12.5% annualized)
from $17.044 billion at
June 30, 2022.
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 September 30, 2022, oil and gas
loans totaled $410.1 million
(net of discount and excluding PPP loans totaling $4.7 million) or 2.2% of total loans, of
which $190.3 million were
production loans and $219.7 million were servicing loans,
compared with total oil and gas loans of $569.3 million (net of discount and
excluding PPP loans totaling $55.8 million) or 3.0% of total loans at
September 30, 2021, of which $352.4 million were production loans and
$216.9 million were servicing
loans. In addition, as of September 30, 2022, Prosperity had
total unfunded commitments to oil and gas companies of $463.3 million compared with total unfunded
commitments to oil and gas companies of $363.3 million as of September 30,
2021. Unfunded commitments to producers include letters of credit
issued in lieu of oil well plugging bonds.
Deposits at September 30, 2022 were $29.300 billion, a decrease of $151.6 million or 0.5%, compared with
$29.452 billion at September 30,
2021. Linked quarter deposits decreased $565.5 million or 1.9% from $29.866 billion at June 30, 2022, primarily
due to a decrease in public fund deposits. Prosperity generally
experiences seasonality with its public fund deposits, as public
fund customers use the tax dollars they receive in December and
January throughout the year, resulting in lower deposit balances in
the second and third quarters of the year. On a linked quarter
basis, noninterest-bearing deposits increased by $122.0 million.
Asset Quality
Nonperforming assets totaled $19.9
million or 0.06% of quarterly average interest-earning
assets at September 30, 2022 compared with $36.5 million or 0.11% of quarterly average
interest-earning assets at September 30, 2021 and $22.2 million or 0.07% of quarterly average
interest-earning assets at June 30, 2022.
The allowance for credit losses on loans and off-balance sheet
credit exposures was $312.1 million at September 30, 2022
compared with $317.1 million at
September 30, 2021 and $313.9 million at June 30, 2022. There was no provision for credit
losses for the three and nine months ended September 30, 2022
and 2021.
The allowance for credit losses on loans was $282.2 million or 1.52% of total loans at
September 30, 2022 compared with $287.2
million or 1.51% of total loans at September 30, 2021
and $284.0 million or 1.56% of total
loans at June 30, 2022. Excluding Warehouse Purchase Program
and PPP loans, the allowance for credit losses on loans to total
loans was 1.61%(1) at September 30, 2022 compared
with 1.73%(1) at September 30, 2021 and
1.67%(1) at June 30,
2022.
Net charge-offs were $1.8 million
for the three months ended September 30, 2022 compared with
net charge-offs of $15.7 million for
the three months ended September 30, 2021 and net charge-offs
of $1.2 million for the three months
ended June 30, 2022. During the third quarter of 2022, net
charge-offs did not include any purchased credit deteriorated
("PCD") loans and $16 thousand of
specific reserves on resolved PCD loans was released to the general
reserve.
Net charge-offs were $4.2 million
for the nine months ended September 30, 2022 compared with
$28.9 million for the nine months
ended September 30, 2021. Net charge-offs for the nine months
ended September 30, 2022 did not include any PCD loans and
$2.0 million of specific
reserves on resolved PCD loans was released to the general reserve
during the period.
Dividend
Prosperity Bancshares declared a fourth quarter cash dividend of
$0.55 per share to be paid on
January 3, 2023, to all shareholders
of record as of December 15, 2022, an
increase of $0.03 per share, or 5.8%,
from the prior quarter.
Stock Repurchase Program
On January 18, 2022, Prosperity
Bancshares announced a stock repurchase program under which up to
5%, or approximately 4.61 million shares, of its outstanding common
stock may be acquired over a one-year period expiring on
January 18, 2023, at the discretion
of management. Under its 2022 stock repurchase program, Prosperity
Bancshares repurchased zero shares of its common stock during the
three months ended September 30, 2022 and 981,884 shares of
its common stock at an average weighted price of $66.90 per share during the nine months ended
September 30, 2022.
Pending Acquisition of First Bancshares of Texas, Inc.
On October 11, 2022, Prosperity
Bancshares and First Bancshares of Texas, Inc. ("First Bancshares") jointly
announced the signing of a definitive merger agreement whereby
First Bancshares, the parent company of FirstCapital
Bank of Texas, N.A.,
("FirstCapital Bank") will merge with and into Prosperity.
FirstCapital Bank operates 16 banking offices in 6 different
markets in West, North and Central
Texas areas, including its main office in Midland, and banking offices in Midland, Lubbock, Amarillo, Wichita
Falls, Burkburnett,
Byers, Henrietta, Dallas, Horseshoe
Bay, Marble Falls and
Fredericksburg, Texas. As of
June 30, 2022, First Bancshares, on a
consolidated basis, reported total assets of $2.121 billion, total loans of $1.589 billion and total deposits of $1.781 billion.
Under the terms of the merger agreement, Prosperity will issue
3,583,370 shares of Prosperity common stock plus $93.4 million in cash for all outstanding shares
of First Bancshares capital stock, subject to certain conditions
and potential adjustments. Based on Prosperity's closing price of
$69.27 on October 7, 2022, the total consideration was
valued at approximately $341.6
million. The transaction is subject to customary
closing conditions, including the receipt of regulatory approvals
and approval of the shareholders of First Bancshares. The
transaction is expected to close during the first quarter of 2023,
although delays could occur.
Pending Acquisition of Lone Star State Bancshares,
Inc.
On October 11,
2022, Prosperity Bancshares and Lone Star State Bancshares,
Inc. ("Lone Star") jointly
announced the signing of a definitive merger agreement whereby
Lone Star, the parent company of
Lone Star State Bank of West Texas ("Lone Star
Bank") will merge with and into Prosperity. Lone Star Bank operates 5 banking offices in the
West Texas area, including its
main office in Lubbock, and 1
banking center in each of Brownfield, Midland, Odessa and Big
Spring, Texas. As of June 30,
2022, Lone Star, on a
consolidated basis, reported total assets of $1.305 billion, total loans of $933.5 million and total deposits of $1.174 billion.
Under the terms of the merger agreement, Prosperity will issue
2,376,182 shares of Prosperity common stock plus $64.1 million in cash for all outstanding shares
of Lone Star capital stock, subject
to certain conditions and potential adjustments. Based on
Prosperity's closing price of $69.27
on October 7, 2022, the total
consideration was valued at approximately $228.7 million. The transaction is subject
to customary closing conditions, including the receipt of
regulatory approvals and approval of the shareholders of
Lone Star. The transaction is
expected to close during the first quarter of 2023, although delays
could occur.
Conference Call
Prosperity's management team will host a conference call on
Wednesday, October 26, 2022, at
11:30 a.m. Eastern Time
(10:30 a.m. Central Time) to discuss Prosperity's third
quarter 2022 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
participant elite entry number is 7408913.
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, Webcasts &
Calls" from the menu on the Investor Relations link and following
the instructions.
Non-GAAP Financial Measures
Prosperity's management uses certain non-GAAP financial measures
to evaluate its performance. Specifically, Prosperity reviews
return on average tangible common equity; tangible book value per
share; the tangible equity to tangible assets ratio; allowance for
credit losses on loans to total loans excluding Warehouse Purchase
Program and PPP loans; and the efficiency ratio excluding net gains
and losses on the sale or write down of assets and securities, for
internal planning and forecasting purposes. Prosperity believes
these non-GAAP financial measures provide information useful to
investors in understanding Prosperity's financial results and 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 September 30, 2022, Prosperity Bancshares,
Inc.® is a $37.844 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 treasury management.
Prosperity currently operates 272 full-service banking
locations: 65 in the Houston area,
including The Woodlands; 30 in the
South Texas area including
Corpus Christi and Victoria; 62 in the Dallas/Fort Worth area; 22 in the East Texas area; 29 in the Central Texas area including Austin and San
Antonio; 34 in the West
Texas area including Lubbock, Midland-Odessa and Abilene; 16 in the Bryan/College Station area; 6 in the
Central Oklahoma area; and 8 in
the Tulsa, Oklahoma area.
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. From time to time, oral or written
forward-looking statements may also be included in other
information released to the public. Such forward-looking
statements are typically, but not exclusively, identified by the
use in the statements of words or phrases such as "aim,"
"anticipate," "believe," "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 each of the proposed
transactions, and statements about the assumptions underlying any
such statement, as well as expectations regarding the effects of
the COVID-19 pandemic on Prosperity's operating income, financial
condition and cash flows. These forward‑looking statements are not
guarantees of future performance and are based on expectations and
assumptions Prosperity currently believes to be valid.
Because forward-looking statements relate to future results and
occurrences, many of which are outside of Prosperity's
control, they are subject to inherent uncertainties, risks
and changes in circumstances that are difficult to predict. Many
possible events or factors could adversely affect the future
financial results and performance of Prosperity, First Bancshares,
Lone Star or the combined company
and could cause those results or performance to differ materially
from those expressed in or implied by the forward-looking
statements. Such risks and uncertainties include, among others: the
occurrence of any event, change or other circumstance that could
give rise to the right of a party to terminate the merger agreement
with First Bancshares or Lone
Star, as applicable, the outcome of any legal proceedings
that may be instituted against Prosperity, First Bancshares or
Lone Star, delays in completing
either of the transactions, the failure to obtain necessary
regulatory approvals (and the risk that such approvals may result
in the imposition of conditions that could adversely affect the
combined company or the expected benefits of each of the
transactions) or First Bancshares shareholder approval or
Lone Star shareholder approval or
to satisfy any of the other conditions to the transactions on a
timely basis or at all, the possibility that the anticipated
benefits of the transactions are not realized when expected or at
all, including as a result of the impact of, or problems arising
from, the integration of the two companies or as a result of the
strength of the economy and competitive factors generally, or
specifically in the West Texas
area and the West, North and Central
Texas area where First Bancshares and Lone Star, respectively, do a majority of
their respective business and Prosperity has a significant
presence, the possibility that the transactions may be more
expensive to complete than anticipated, including as a result of
unexpected factors or events, diversion of management's attention
from ongoing business operations and opportunities, potential
adverse reactions or changes to business or employee relationships,
including those resulting from the announcement or completion of
the transactions, Prosperity's ability to complete the acquisition
and integration of First Bancshares and of Lone Star successfully, and the dilution
caused by Prosperity's issuance of additional shares of its common
stock in connection with the transactions. Prosperity disclaims any
obligation to update such factors or to publicly announce the
results of any revisions to any of the forward-looking statements
included herein to reflect future events or developments. These and
various other factors are discussed in Prosperity's Annual Report
on Form 10-K for the year ended December 31,
2021, and other reports and statements Prosperity has filed
with the Securities and Exchange Commission ("SEC"). Copies of the
SEC filings for Prosperity may be downloaded from the Internet at
no charge from http://www.prosperitybankusa.com.
Additional Information about the First Bancshares
Merger and Where to Find It
In connection with the proposed merger of First Bancshares
into Prosperity, Prosperity will file with the SEC a registration
statement on Form S-4 to register the shares of Prosperity common
stock to be issued to the shareholders of First Bancshares. The
registration statement will include a proxy statement/prospectus
which will be sent to the shareholders of First Bancshares seeking
their approval of the proposed transaction.
WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE
REGISTRATION STATEMENT ON FORM S-4, THE PROXY STATEMENT/PROSPECTUS
INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY
OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION IN CONNECTION WITH THE PROPOSED TRANSACTION
BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY, FIRST
BANCSHARES AND THE PROPOSED TRANSACTION.
Investors and security holders may obtain free copies of
these documents through the website maintained by the SEC at
http://www.sec.gov. You will also be able to obtain these
documents, when they are filed, free of charge, from Prosperity at
http://www.prosperitybankusa.com. Copies of the proxy
statement/prospectus can also be obtained, when it becomes
available, free of charge, by directing a request by telephone or
mail to Prosperity Bancshares, Inc., Prosperity Bank Plaza, 4295
San Felipe, Houston, Texas 77027
Attn: Investor Relations, (281) 269-7199 or to First Bancshares of
Texas, Inc., 310 West Wall Street,
Suite 1200, Midland, Texas 79701,
Attention: Ken Burgess, (844)
322-8392.
Additional Information about the Lone Star Merger and
Where to Find It
In connection with the proposed merger of Lone Star into Prosperity, Prosperity will
file with the SEC a registration statement on Form S-4 to register
the shares of Prosperity common stock to be issued to the
shareholders of Lone Star. The
registration statement will include a proxy statement/prospectus
which will be sent to the shareholders of Lone Star seeking their approval of the
proposed transaction.
WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE
REGISTRATION STATEMENT ON FORM S-4, THE PROXY STATEMENT/PROSPECTUS
INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY
OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION IN CONNECTION WITH THE PROPOSED TRANSACTION
BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY,
LONE STAR AND THE PROPOSED
TRANSACTION.
Investors and security holders may obtain free copies of
these documents through the website maintained by the SEC at
http://www.sec.gov. You will also be able to obtain these
documents, when they are filed, free of charge, from Prosperity at
http://www.prosperitybankusa.com. Copies of the proxy
statement/prospectus can also be obtained, when it becomes
available, free of charge, by directing a request by telephone or
mail to Prosperity Bancshares, Inc., Prosperity Bank Plaza, 4295
San Felipe, Houston, Texas 77027
Attn: Investor Relations, (281) 269-7199 or to Lone Star State
Bancshares, Inc., 6220 Milwaukee Avenue, Lubbock, Texas 79424, Attention: Alan Lackey, (806) 771-7717.
Participants in the Solicitation
Prosperity, First Bancshares and their respective
directors and executive officers may be deemed to be participants
in the solicitation of proxies from the shareholders of First
Bancshares in connection with the proposed transaction. Certain
information regarding the interests of these participants and a
description of their direct and indirect interests, by security
holdings or otherwise, will be included in the proxy
statement/prospectus regarding the proposed transaction when it
becomes available.
Prosperity, Lone Star and
their respective directors and executive officers may be deemed to
be participants in the solicitation of proxies from the
shareholders of Lone Star in
connection with the proposed transaction. Certain information
regarding the interests of these participants and a description of
their direct and indirect interests, by security holdings or
otherwise, will be included in the proxy statement/prospectus
regarding the proposed transaction when it becomes
available.
Additional information about Prosperity and its directors
and executive officers may be found in the definitive proxy
statement of Prosperity relating to its 2022 Annual Meeting of
Shareholders filed with the SEC on March 14,
2022, and other documents filed by Prosperity with the SEC.
These documents can be obtained free of charge from the sources
described above.
No Offer or Solicitation
This communication is for informational purposes only and
is not intended to and does not constitute an offer to subscribe
for, buy or sell, or the solicitation of an offer to subscribe for,
buy or sell, or an invitation to subscribe for, buy or sell any
securities or a solicitation of any vote or approval in any
jurisdiction, nor shall there be any sale, issuance or transfer of
securities in any jurisdiction in which such offer, invitation,
sale or solicitation would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offer of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended, and otherwise in accordance with
applicable law.
______________
|
(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 $997 thousand, net of tax, primarily
comprised of loan discount accretion of $1.2 million for the three
months ended September 30, 2022.
|
(3)
|
Includes purchase
accounting adjustments of $4.3 million, net of tax, primarily
comprised of loan discount accretion of $5.4 million for the three
months ended September 30, 2021.
|
(4)
|
Includes purchase
accounting adjustments of $103 thousand, net of tax, primarily
comprised of loan discount accretion of $59 thousand for the three
months ended June 30, 2022.
|
(5)
|
Includes purchase
accounting adjustments of $5.2 million, net of tax, primarily
comprised of loan discount accretion of $6.5 million for the nine
months ended September 30, 2022.
|
(6)
|
Includes purchase
accounting adjustments of $27.3 million, net of tax, primarily
comprised of loan discount accretion of $33.9 million for the nine
months ended September 30, 2021.
|
Bryan/College
Station Area
|
|
Garland
|
|
Palestine
|
|
Magnolia
|
|
Texas Tech Student
Union
|
Bryan
|
|
Grapevine
|
|
Rusk
|
|
Magnolia
Parkway
|
|
|
Bryan-29th
Street
|
|
Grapevine
Main
|
|
Seven Points
|
|
Mont Belvieu
|
|
Midland
|
Bryan-East
|
|
Kiest
|
|
Teague
|
|
Nederland
|
|
Wadley
|
Bryan-North
|
|
Lake
Highlands
|
|
Tyler-Beckham
|
|
Needville
|
|
Wall Street
|
Caldwell
|
|
McKinney
|
|
Tyler-South
Broadway
|
|
Rosenberg
|
|
|
College
Station
|
|
McKinney
Eldorado
|
|
Tyler-University
|
|
Shadow Creek
|
|
Odessa
|
Crescent
Point
|
|
McKinney
Redbud
|
|
Winnsboro
|
|
Spring
|
|
Grandview
|
Hearne
|
|
North
Carrolton
|
|
|
|
Tomball
|
|
Grant
|
Huntsville
|
|
Park Cities
|
|
Houston
Area
|
|
Waller
|
|
Kermit
Highway
|
Madisonville
|
|
Plano
|
|
Houston
|
|
West
Columbia
|
|
Parkway
|
Navasota
|
|
Plano-West
|
|
Aldine
|
|
Wharton
|
|
|
New Waverly
|
|
Preston
Forest
|
|
Alief
|
|
Winnie
|
|
Other West Texas
Area
|
Rock Prairie
|
|
Preston
Parker
|
|
Bellaire
|
|
Wirt
|
|
Locations
|
Southwest
Parkway
|
|
Preston
Royal
|
|
Beltway
|
|
|
|
Big Spring
|
Tower Point
|
|
Red Oak
|
|
Clear Lake
|
|
South Texas Area
-
|
|
Brownfield
|
Wellborn
Road
|
|
Richardson
|
|
Copperfield
|
|
Corpus
Christi
|
|
Brownwood
|
|
|
Richardson-West
|
|
Cypress
|
|
Calallen
|
|
Cisco
|
Central Texas
Area
|
|
Rosewood
Court
|
|
Downtown
|
|
Carmel
|
|
Comanche
|
Austin
|
|
The Colony
|
|
Eastex
|
|
Northwest
|
|
Early
|
Allandale
|
|
Tollroad
|
|
Fairfield
|
|
Saratoga
|
|
Floydada
|
Cedar Park
|
|
Trinity
Mills
|
|
First Colony
|
|
Timbergate
|
|
Gorman
|
Congress
|
|
Turtle Creek
|
|
Fry Road
|
|
Water Street
|
|
Levelland
|
Lakeway
|
|
West 15th
Plano
|
|
Gessner
|
|
|
|
Littlefield
|
Liberty Hill
|
|
West Allen
|
|
Gladebrook
|
|
Victoria
|
|
Merkel
|
Northland
|
|
Westmoreland
|
|
Grand
Parkway
|
|
Victoria
Main
|
|
Plainview
|
Oak Hill
|
|
Wylie
|
|
Heights
|
|
Victoria-Navarro
|
|
San Angelo
|
Research
Blvd
|
|
|
|
Highway 6
West
|
|
Victoria-North
|
|
Slaton
|
Westlake
|
|
Fort
Worth
|
|
Little York
|
|
Victoria
Salem
|
|
Snyder
|
|
|
Haltom City
|
|
Medical
Center
|
|
|
|
|
Other Central Texas
Area
|
|
Hulen
|
|
Memorial
Drive
|
|
Other South Texas
Area
|
|
Oklahoma
|
Locations
|
|
Keller
|
|
Northside
|
|
Locations
|
|
Central Oklahoma
Area
|
Bastrop
|
|
Museum Place
|
|
Pasadena
|
|
Alice
|
|
Oklahoma
City
|
Canyon Lake
|
|
Renaissance
Square
|
|
Pecan Grove
|
|
Aransas Pass
|
|
23rd
Street
|
Dime Box
|
|
Roanoke
|
|
Pin Oak
|
|
Beeville
|
|
Expressway
|
Dripping
Springs
|
|
Stockyards
|
|
River Oaks
|
|
Colony Creek
|
|
I-240
|
Elgin
|
|
|
|
Sugar Land
|
|
Cuero
|
|
Memorial
|
Flatonia
|
|
Other Dallas/Fort
Worth Area
|
|
SW Medical
Center
|
|
Edna
|
|
|
Georgetown
|
|
Locations
|
|
Tanglewood
|
|
Goliad
|
|
Other Central
Oklahoma Area
|
Gruene
|
|
Arlington
|
|
The Plaza
|
|
Gonzales
|
|
Locations
|
Kingsland
|
|
Azle
|
|
Uptown
|
|
Hallettsville
|
|
Edmond
|
La Grange
|
|
Ennis
|
|
Waugh Drive
|
|
Kingsville
|
|
Norman
|
Lexington
|
|
Gainesville
|
|
Westheimer
|
|
Mathis
|
|
|
New
Braunfels
|
|
Glen Rose
|
|
West
University
|
|
Padre Island
|
|
Tulsa
Area
|
Pleasanton
|
|
Granbury
|
|
Woodcreek
|
|
Palacios
|
|
Tulsa
|
Round Rock
|
|
Grand
Prairie
|
|
|
|
Port Lavaca
|
|
Garnett
|
San Antonio
|
|
Jacksboro
|
|
Katy
|
|
Portland
|
|
Harvard
|
Schulenburg
|
|
Mesquite
|
|
Cinco Ranch
|
|
Rockport
|
|
Memorial
|
Seguin
|
|
Muenster
|
|
Katy-Spring
Green
|
|
Sinton
|
|
Sheridan
|
Smithville
|
|
Runaway Bay
|
|
|
|
Taft
|
|
S. Harvard
|
Thorndale
|
|
Sanger
|
|
The
Woodlands
|
|
Yoakum
|
|
Utica Tower
|
Weimar
|
|
Waxahachie
|
|
The Woodlands-College
Park
|
|
Yorktown
|
|
Yale
|
|
|
Weatherford
|
|
The
Woodlands-I-45
|
|
|
|
|
Dallas/Fort Worth
Area
|
|
|
|
The Woodlands-Research
Forest
|
|
West Texas
Area
|
|
Other Tulsa Area
Locations
|
Dallas
|
|
East Texas
Area
|
|
|
|
Abilene
|
|
Owasso
|
14th Street
Plano
|
|
Athens
|
|
Other Houston
Area
|
|
Antilley
Road
|
|
|
Abrams
Centre
|
|
Blooming
Grove
|
|
Locations
|
|
Barrow
Street
|
|
|
Addison
|
|
Canton
|
|
Angleton
|
|
Cypress
Street
|
|
|
Allen
|
|
Carthage
|
|
Bay City
|
|
Judge Ely
|
|
|
Balch
Springs
|
|
Corsicana
|
|
Beaumont
|
|
Mockingbird
|
|
|
Camp Wisdom
|
|
Crockett
|
|
Cleveland
|
|
|
|
|
Carrollton
|
|
Eustace
|
|
East Bernard
|
|
Lubbock
|
|
|
Cedar Hill
|
|
Gilmer
|
|
El Campo
|
|
4th Street
|
|
|
Coppell
|
|
Grapeland
|
|
Dayton
|
|
66th Street
|
|
|
East Plano
|
|
Gun Barrel
City
|
|
Galveston
|
|
82nd Street
|
|
|
Euless
|
|
Jacksonville
|
|
Groves
|
|
86th Street
|
|
|
Frisco
|
|
Kerens
|
|
Hempstead
|
|
98th
Street
|
|
|
Frisco
Warren
|
|
Longview
|
|
Hitchcock
|
|
Avenue Q
|
|
|
Frisco-West
|
|
Mount Vernon
|
|
Liberty
|
|
North
University
|
|
|
- - -
Prosperity Bancshares,
Inc.®
Financial Highlights
(Unaudited)
(In
thousands)
|
|
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
|
Sep 30,
2021
|
|
Balance Sheet Data
(at period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
2,871
|
|
|
$
|
3,350
|
|
|
$
|
2,810
|
|
|
$
|
7,274
|
|
|
$
|
10,197
|
|
Loans held for
investment
|
|
|
17,580,653
|
|
|
|
17,067,871
|
|
|
|
16,720,173
|
|
|
|
16,833,171
|
|
|
|
16,949,486
|
|
Loans held for
investment - Warehouse Purchase
Program
|
|
|
922,764
|
|
|
|
1,137,623
|
|
|
|
1,344,541
|
|
|
|
1,775,699
|
|
|
|
1,998,049
|
|
Total loans
|
|
|
18,506,288
|
|
|
|
18,208,844
|
|
|
|
18,067,524
|
|
|
|
18,616,144
|
|
|
|
18,957,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities(A)
|
|
|
14,806,487
|
|
|
|
14,912,313
|
|
|
|
14,798,127
|
|
|
|
12,818,901
|
|
|
|
12,629,368
|
|
Federal funds
sold
|
|
|
244
|
|
|
|
201
|
|
|
|
274
|
|
|
|
241
|
|
|
|
237
|
|
Allowance for credit
losses on loans
|
|
|
(282,179)
|
|
|
|
(283,959)
|
|
|
|
(285,163)
|
|
|
|
(286,380)
|
|
|
|
(287,187)
|
|
Cash and due from
banks
|
|
|
602,152
|
|
|
|
393,716
|
|
|
|
1,560,321
|
|
|
|
2,547,739
|
|
|
|
1,055,386
|
|
Goodwill
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
Core deposit
intangibles, net
|
|
|
53,906
|
|
|
|
56,483
|
|
|
|
59,064
|
|
|
|
61,684
|
|
|
|
64,539
|
|
Other real estate
owned
|
|
|
1,758
|
|
|
|
1,555
|
|
|
|
1,705
|
|
|
|
622
|
|
|
|
150
|
|
Fixed assets,
net
|
|
|
337,099
|
|
|
|
335,939
|
|
|
|
336,075
|
|
|
|
319,799
|
|
|
|
322,799
|
|
Other assets
|
|
|
586,111
|
|
|
|
530,528
|
|
|
|
501,623
|
|
|
|
523,584
|
|
|
|
537,459
|
|
Total
assets
|
|
$
|
37,843,502
|
|
|
$
|
37,387,256
|
|
|
$
|
38,271,186
|
|
|
$
|
37,833,970
|
|
|
$
|
36,512,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
11,154,143
|
|
|
$
|
11,032,184
|
|
|
$
|
10,776,652
|
|
|
$
|
10,750,034
|
|
|
$
|
10,326,489
|
|
Interest-bearing
deposits
|
|
|
18,145,952
|
|
|
|
18,833,434
|
|
|
|
20,291,658
|
|
|
|
20,021,728
|
|
|
|
19,125,163
|
|
Total
deposits
|
|
|
29,300,095
|
|
|
|
29,865,618
|
|
|
|
31,068,310
|
|
|
|
30,771,762
|
|
|
|
29,451,652
|
|
Other
borrowings
|
|
|
1,165,000
|
|
|
|
300,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Securities sold under
repurchase agreements
|
|
|
454,304
|
|
|
|
481,785
|
|
|
|
440,891
|
|
|
|
448,099
|
|
|
|
440,969
|
|
Allowance for credit
losses on off-balance sheet
credit exposures
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
Other
liabilities
|
|
|
282,514
|
|
|
|
188,079
|
|
|
|
227,614
|
|
|
|
156,926
|
|
|
|
244,110
|
|
Total
liabilities
|
|
|
31,231,860
|
|
|
|
30,865,429
|
|
|
|
31,766,762
|
|
|
|
31,406,734
|
|
|
|
30,166,678
|
|
Shareholders'
equity(B)
|
|
|
6,611,642
|
|
|
|
6,521,827
|
|
|
|
6,504,424
|
|
|
|
6,427,236
|
|
|
|
6,345,441
|
|
Total liabilities and
equity
|
|
$
|
37,843,502
|
|
|
$
|
37,387,256
|
|
|
$
|
38,271,186
|
|
|
$
|
37,833,970
|
|
|
$
|
36,512,119
|
|
|
|
(A)
|
Includes $(296), $1,517, $2,115, $2,290 and $2,483 in
unrealized (losses) gains on available for sale securities for the
quarterly periods ended September 30, 2022, June 30, 2022, March
31, 2022, December 31, 2021 and September 30, 2021,
respectively.
|
(B)
|
Includes $(234), $1,198 $1,671, $1,809 and $1,961 in
after-tax unrealized (losses) gains on available for sale
securities for the quarterly periods ended September 30, 2022, June
30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021,
respectively.
|
Prosperity Bancshares,
Inc.®
Financial Highlights
(Unaudited)
(In
thousands)
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
|
Sep 30,
2021
|
|
|
Sep 30,
2022
|
|
|
Sep 30,
2021
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
210,268
|
|
|
$
|
192,770
|
|
|
$
|
193,025
|
|
|
$
|
206,209
|
|
|
$
|
213,821
|
|
|
$
|
596,063
|
|
|
$
|
663,699
|
|
Securities(C)
|
|
|
68,761
|
|
|
|
64,111
|
|
|
|
55,011
|
|
|
|
46,857
|
|
|
|
46,217
|
|
|
|
187,883
|
|
|
|
128,602
|
|
Federal funds sold and
other earning assets
|
|
|
525
|
|
|
|
925
|
|
|
|
847
|
|
|
|
563
|
|
|
|
302
|
|
|
|
2,297
|
|
|
|
993
|
|
Total interest
income
|
|
|
279,554
|
|
|
|
257,806
|
|
|
|
248,883
|
|
|
|
253,629
|
|
|
|
260,340
|
|
|
|
786,243
|
|
|
|
793,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
14,669
|
|
|
|
8,641
|
|
|
|
8,754
|
|
|
|
8,685
|
|
|
|
11,578
|
|
|
|
32,064
|
|
|
|
44,228
|
|
Other
borrowings
|
|
|
3,719
|
|
|
|
450
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,169
|
|
|
|
—
|
|
Securities sold under
repurchase agreements
|
|
|
487
|
|
|
|
244
|
|
|
|
185
|
|
|
|
184
|
|
|
|
195
|
|
|
|
916
|
|
|
|
518
|
|
Total interest
expense
|
|
|
18,875
|
|
|
|
9,335
|
|
|
|
8,939
|
|
|
|
8,869
|
|
|
|
11,773
|
|
|
|
37,149
|
|
|
|
44,746
|
|
Net interest
income
|
|
|
260,679
|
|
|
|
248,471
|
|
|
|
239,944
|
|
|
|
244,760
|
|
|
|
248,567
|
|
|
|
749,094
|
|
|
|
748,548
|
|
Provision for credit
losses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net interest income
after provision for credit losses
|
|
|
260,679
|
|
|
|
248,471
|
|
|
|
239,944
|
|
|
|
244,760
|
|
|
|
248,567
|
|
|
|
749,094
|
|
|
|
748,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds
(NSF) fees
|
|
|
8,887
|
|
|
|
8,484
|
|
|
|
8,124
|
|
|
|
8,401
|
|
|
|
7,962
|
|
|
|
25,495
|
|
|
|
21,209
|
|
Credit card, debit
card and ATM card income
|
|
|
8,889
|
|
|
|
8,880
|
|
|
|
8,179
|
|
|
|
8,894
|
|
|
|
8,837
|
|
|
|
25,948
|
|
|
|
25,786
|
|
Service charges on
deposit accounts
|
|
|
6,222
|
|
|
|
6,365
|
|
|
|
6,211
|
|
|
|
6,237
|
|
|
|
6,115
|
|
|
|
18,798
|
|
|
|
18,155
|
|
Trust
income
|
|
|
3,174
|
|
|
|
2,875
|
|
|
|
2,703
|
|
|
|
2,698
|
|
|
|
2,467
|
|
|
|
8,752
|
|
|
|
7,580
|
|
Mortgage
income
|
|
|
340
|
|
|
|
502
|
|
|
|
455
|
|
|
|
685
|
|
|
|
1,396
|
|
|
|
1,297
|
|
|
|
7,617
|
|
Brokerage
income
|
|
|
940
|
|
|
|
917
|
|
|
|
892
|
|
|
|
953
|
|
|
|
861
|
|
|
|
2,749
|
|
|
|
2,367
|
|
Bank owned life
insurance income
|
|
|
1,214
|
|
|
|
1,293
|
|
|
|
1,283
|
|
|
|
1,317
|
|
|
|
1,325
|
|
|
|
3,790
|
|
|
|
3,911
|
|
Net gain (loss) on
sale or write-down of assets
|
|
|
50
|
|
|
|
1,108
|
|
|
|
689
|
|
|
|
1,165
|
|
|
|
255
|
|
|
|
1,847
|
|
|
|
(68)
|
|
Other noninterest
income
|
|
|
4,972
|
|
|
|
7,170
|
|
|
|
6,586
|
|
|
|
5,407
|
|
|
|
5,427
|
|
|
|
18,728
|
|
|
|
17,652
|
|
Total noninterest
income
|
|
|
34,688
|
|
|
|
37,594
|
|
|
|
35,122
|
|
|
|
35,757
|
|
|
|
34,645
|
|
|
|
107,404
|
|
|
|
104,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
79,578
|
|
|
|
80,371
|
|
|
|
79,411
|
|
|
|
76,496
|
|
|
|
78,412
|
|
|
|
239,360
|
|
|
|
234,060
|
|
Net occupancy and
equipment
|
|
|
8,412
|
|
|
|
8,039
|
|
|
|
7,848
|
|
|
|
8,140
|
|
|
|
8,165
|
|
|
|
24,299
|
|
|
|
24,044
|
|
Credit and debit card,
data processing and
software amortization
|
|
|
9,516
|
|
|
|
9,246
|
|
|
|
8,849
|
|
|
|
9,050
|
|
|
|
9,103
|
|
|
|
27,611
|
|
|
|
26,054
|
|
Regulatory assessments
and FDIC insurance
|
|
|
2,807
|
|
|
|
2,851
|
|
|
|
2,850
|
|
|
|
2,801
|
|
|
|
2,497
|
|
|
|
8,508
|
|
|
|
7,837
|
|
Core deposit
intangibles amortization
|
|
|
2,577
|
|
|
|
2,581
|
|
|
|
2,620
|
|
|
|
2,855
|
|
|
|
2,878
|
|
|
|
7,778
|
|
|
|
8,696
|
|
Depreciation
|
|
|
4,436
|
|
|
|
4,539
|
|
|
|
4,547
|
|
|
|
4,518
|
|
|
|
4,524
|
|
|
|
13,522
|
|
|
|
13,577
|
|
Communications
|
|
|
3,374
|
|
|
|
3,206
|
|
|
|
2,919
|
|
|
|
3,134
|
|
|
|
3,013
|
|
|
|
9,499
|
|
|
|
8,894
|
|
Other real estate
expense
|
|
|
198
|
|
|
|
195
|
|
|
|
214
|
|
|
|
24
|
|
|
|
30
|
|
|
|
607
|
|
|
|
472
|
|
Net loss (gain) on
sale or write-down of other
real estate
|
|
|
(213)
|
|
|
|
14
|
|
|
|
(621)
|
|
|
|
2
|
|
|
|
4
|
|
|
|
(820)
|
|
|
|
(2,722)
|
|
Other noninterest
expense
|
|
|
11,529
|
|
|
|
11,836
|
|
|
|
11,213
|
|
|
|
12,518
|
|
|
|
11,189
|
|
|
|
34,578
|
|
|
|
33,170
|
|
Total noninterest
expense
|
|
|
122,214
|
|
|
|
122,878
|
|
|
|
119,850
|
|
|
|
119,538
|
|
|
|
119,815
|
|
|
|
364,942
|
|
|
|
354,082
|
|
Income before income
taxes
|
|
|
173,153
|
|
|
|
163,187
|
|
|
|
155,216
|
|
|
|
160,979
|
|
|
|
163,397
|
|
|
|
491,556
|
|
|
|
498,675
|
|
Provision for income
taxes
|
|
|
37,333
|
|
|
|
34,697
|
|
|
|
32,890
|
|
|
|
34,192
|
|
|
|
34,807
|
|
|
|
104,920
|
|
|
|
106,165
|
|
Net income available to
common shareholders
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
122,326
|
|
|
$
|
126,787
|
|
|
$
|
128,590
|
|
|
$
|
386,636
|
|
|
$
|
392,510
|
|
|
|
(C)
|
Interest income on securities was reduced by net
premium amortization of $9,947, $11,450, $12,857, $16,006 and
$15,141 for the three months ended September 30, 2022, June 30,
2022, March 31, 2022, December 31, 2021 and September 30, 2021,
respectively, and $34,254 and $42,421 for the nine months ended
September 30, 2022 and September 30, 2021,
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,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
|
Sep 30,
2021
|
|
|
Sep 30,
2022
|
|
|
Sep 30,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(D) (E)
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
122,326
|
|
|
$
|
126,787
|
|
|
$
|
128,590
|
|
|
$
|
386,636
|
|
|
$
|
392,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.49
|
|
|
$
|
1.40
|
|
|
$
|
1.33
|
|
|
$
|
1.38
|
|
|
$
|
1.39
|
|
|
$
|
4.22
|
|
|
$
|
4.23
|
|
|
Diluted earnings per
share
|
|
$
|
1.49
|
|
|
$
|
1.40
|
|
|
$
|
1.33
|
|
|
$
|
1.38
|
|
|
$
|
1.39
|
|
|
$
|
4.22
|
|
|
$
|
4.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (F)
|
|
|
1.45
|
%
|
|
|
1.36
|
%
|
|
|
1.29
|
%
|
|
|
1.37
|
%
|
|
|
1.42
|
%
|
|
|
1.37
|
%
|
|
|
1.47
|
%
|
|
Return on average
common equity (F)
|
|
|
8.24
|
%
|
|
|
7.84
|
%
|
|
|
7.54
|
%
|
|
|
7.91
|
%
|
|
|
8.07
|
%
|
|
|
7.88
|
%
|
|
|
8.32
|
%
|
|
Return on average
tangible common equity (F) (G)
|
|
|
16.44
|
%
|
|
|
15.73
|
%
|
|
|
15.30
|
%
|
|
|
16.26
|
%
|
|
|
16.72
|
%
|
|
|
15.83
|
%
|
|
|
17.53
|
%
|
|
Tax equivalent net
interest margin (D) (E) (H)
|
|
|
3.11
|
%
|
|
|
2.97
|
%
|
|
|
2.88
|
%
|
|
|
2.97
|
%
|
|
|
3.10
|
%
|
|
|
2.99
|
%
|
|
|
3.20
|
%
|
|
Efficiency ratio
(G) (I)
|
|
|
41.38
|
%
|
|
|
43.12
|
%
|
|
|
43.68
|
%
|
|
|
42.79
|
%
|
|
|
42.34
|
%
|
|
|
42.70
|
%
|
|
|
41.52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
|
17.47
|
%
|
|
|
17.44
|
%
|
|
|
17.00
|
%
|
|
|
16.99
|
%
|
|
|
17.38
|
%
|
|
|
17.47
|
%
|
|
|
17.38
|
%
|
|
Common equity tier 1
capital
|
|
|
15.44
|
%
|
(J)
|
|
15.26
|
%
|
(J)
|
|
15.32
|
%
|
(J)
|
|
15.10
|
%
|
|
|
14.84
|
%
|
|
|
15.44
|
%
|
(J)
|
|
14.84
|
%
|
|
Tier 1 risk-based
capital
|
|
|
15.44
|
%
|
(J)
|
|
15.26
|
%
|
(J)
|
|
15.32
|
%
|
(J)
|
|
15.10
|
%
|
|
|
14.84
|
%
|
|
|
15.44
|
%
|
(J)
|
|
14.84
|
%
|
|
Total risk-based
capital
|
|
|
16.09
|
%
|
(J)
|
|
15.91
|
%
|
(J)
|
|
15.99
|
%
|
(J)
|
|
15.45
|
%
|
|
|
15.20
|
%
|
|
|
16.09
|
%
|
(J)
|
|
15.20
|
%
|
|
Tier 1 leverage
capital
|
|
|
9.94
|
%
|
(J)
|
|
9.58
|
%
|
(J)
|
|
9.44
|
%
|
(J)
|
|
9.62
|
%
|
|
|
9.55
|
%
|
|
|
9.94
|
%
|
(J)
|
|
9.55
|
%
|
|
Period end tangible
equity to period end tangible
assets (G)
|
|
|
9.62
|
%
|
|
|
9.48
|
%
|
|
|
9.19
|
%
|
|
|
9.07
|
%
|
|
|
9.18
|
%
|
|
|
9.62
|
%
|
|
|
9.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in computing
earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
91,209
|
|
|
|
91,772
|
|
|
|
92,161
|
|
|
|
92,162
|
|
|
|
92,683
|
|
|
|
91,710
|
|
|
|
92,823
|
|
|
Diluted
|
|
|
91,209
|
|
|
|
91,772
|
|
|
|
92,161
|
|
|
|
92,162
|
|
|
|
92,683
|
|
|
|
91,710
|
|
|
|
92,823
|
|
|
Period end shares
outstanding
|
|
|
91,210
|
|
|
|
91,196
|
|
|
|
92,160
|
|
|
|
92,170
|
|
|
|
92,160
|
|
|
|
91,210
|
|
|
|
92,160
|
|
|
Cash dividends paid per
common share
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
0.49
|
|
|
$
|
1.56
|
|
|
$
|
1.47
|
|
|
Book value per common
share
|
|
$
|
72.49
|
|
|
$
|
71.51
|
|
|
$
|
70.58
|
|
|
$
|
69.73
|
|
|
$
|
68.85
|
|
|
$
|
72.49
|
|
|
$
|
68.85
|
|
|
Tangible book value per
common share (G)
|
|
$
|
36.47
|
|
|
$
|
35.46
|
|
|
$
|
34.87
|
|
|
$
|
34.00
|
|
|
$
|
33.09
|
|
|
$
|
36.47
|
|
|
$
|
33.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
77.93
|
|
|
$
|
73.50
|
|
|
$
|
80.46
|
|
|
$
|
78.67
|
|
|
$
|
72.97
|
|
|
$
|
80.46
|
|
|
$
|
83.02
|
|
|
Low
|
|
$
|
65.37
|
|
|
$
|
64.69
|
|
|
$
|
69.08
|
|
|
$
|
68.53
|
|
|
$
|
64.40
|
|
|
$
|
64.69
|
|
|
$
|
64.40
|
|
|
Period end closing
price
|
|
$
|
66.68
|
|
|
$
|
68.27
|
|
|
$
|
69.38
|
|
|
$
|
72.35
|
|
|
$
|
71.13
|
|
|
$
|
66.68
|
|
|
$
|
71.13
|
|
|
Employees – FTE
(excluding overtime)
|
|
|
3,592
|
|
|
|
3,576
|
|
|
|
3,595
|
|
|
|
3,704
|
|
|
|
3,625
|
|
|
|
3,592
|
|
|
|
3,625
|
|
|
Number of banking
centers
|
|
|
272
|
|
|
|
272
|
|
|
|
272
|
|
|
|
273
|
|
|
|
273
|
|
|
|
272
|
|
|
|
273
|
|
|
|
|
(D)
|
Includes purchase accounting adjustments for the
periods presented as follows:
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Mar 31,
2022
|
|
Dec 31,
2021
|
|
Sep 30,
2021
|
|
Sep 30,
2022
|
|
Sep 30,
2021
|
Loan discount
accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASC
310-20
|
$912
|
|
$(265)
|
|
$4,674
|
|
$4,635
|
|
$3,761
|
|
$5,321
|
|
$26,805
|
ASC
310-30
|
$322
|
|
$324
|
|
$521
|
|
$731
|
|
$1,618
|
|
$1,167
|
|
$7,107
|
Securities net
amortization
|
$40
|
|
$12
|
|
$52
|
|
$139
|
|
$136
|
|
$104
|
|
$418
|
Time deposits
amortization
|
$68
|
|
$84
|
|
$100
|
|
$127
|
|
$201
|
|
$252
|
|
$1,035
|
|
|
(E)
|
Using effective tax rate of 21.6%, 21.3%, 21.2%,
21.2% and 21.3% for the three months ended September 30, 2022, June
30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021,
respectively, and 21.3% for the nine months ended September 30,
2022 and September 30, 2021.
|
(F)
|
Interim periods annualized.
|
(G)
|
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.
|
(H)
|
Net interest margin for all periods presented is
based on average balances on an actual 365-day
basis.
|
(I)
|
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 or
write down of assets and securities. Additionally, taxes are not
part of this calculation.
|
(J)
|
Beginning on January 1, 2022, the cumulative amount
of the current expected credit loss ("CECL") transition adjustments
is being phased in over a three-year transition
period.
|
Prosperity Bancshares,
Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
YIELD
ANALYSIS
|
|
Three Months
Ended
|
|
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Sep 30,
2021
|
|
|
|
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(K)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(K)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(K)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
4,136
|
|
|
$
|
57
|
|
|
5.47 %
|
|
|
$
|
3,199
|
|
|
$
|
40
|
|
|
5.02 %
|
|
|
$
|
11,714
|
|
|
$
|
91
|
|
|
3.08 %
|
|
|
Loans held for
investment
|
|
|
17,275,866
|
|
|
|
199,417
|
|
|
4.58 %
|
|
|
|
16,799,609
|
|
|
|
182,286
|
|
|
4.35 %
|
|
|
|
17,102,998
|
|
|
|
199,019
|
|
|
4.62 %
|
|
|
Loans held for
investment - Warehouse
Purchase Program
|
|
|
938,589
|
|
|
|
10,794
|
|
|
4.56 %
|
|
|
|
1,257,521
|
|
|
|
10,444
|
|
|
3.33 %
|
|
|
|
1,836,252
|
|
|
|
14,711
|
|
|
3.18 %
|
|
|
Total Loans
|
|
|
18,218,591
|
|
|
|
210,268
|
|
|
4.58 %
|
|
|
|
18,060,329
|
|
|
|
192,770
|
|
|
4.28 %
|
|
|
|
18,950,964
|
|
|
|
213,821
|
|
|
4.48 %
|
|
|
Investment
securities
|
|
|
14,962,847
|
|
|
|
68,761
|
|
|
1.82 %
|
|
(L)
|
|
14,989,666
|
|
|
|
64,111
|
|
|
1.72 %
|
|
(L)
|
|
12,184,964
|
|
|
|
46,217
|
|
|
1.50 %
|
|
(L)
|
Federal funds sold and
other earning assets
|
|
|
87,859
|
|
|
|
525
|
|
|
2.37 %
|
|
|
|
540,907
|
|
|
|
925
|
|
|
0.69 %
|
|
|
|
734,787
|
|
|
|
302
|
|
|
0.16 %
|
|
|
Total interest-earning
assets
|
|
|
33,269,297
|
|
|
|
279,554
|
|
|
3.33 %
|
|
|
|
33,590,902
|
|
|
|
257,806
|
|
|
3.08 %
|
|
|
|
31,870,715
|
|
|
|
260,340
|
|
|
3.24 %
|
|
|
Allowance for credit
losses on loans
|
|
|
(283,244)
|
|
|
|
|
|
|
|
|
|
|
|
(284,550)
|
|
|
|
|
|
|
|
|
|
|
|
(301,011)
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,480,512
|
|
|
|
|
|
|
|
|
|
|
|
4,448,060
|
|
|
|
|
|
|
|
|
|
|
|
4,728,965
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
37,466,565
|
|
|
|
|
|
|
|
|
|
|
$
|
37,754,412
|
|
|
|
|
|
|
|
|
|
|
$
|
36,298,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
6,155,511
|
|
|
$
|
2,345
|
|
|
0.15 %
|
|
|
$
|
6,437,614
|
|
|
$
|
2,154
|
|
|
0.13 %
|
|
|
$
|
6,089,678
|
|
|
$
|
3,614
|
|
|
0.24 %
|
|
|
Savings and money
market deposits
|
|
|
10,172,986
|
|
|
|
9,479
|
|
|
0.37 %
|
|
|
|
10,702,273
|
|
|
|
4,473
|
|
|
0.17 %
|
|
|
|
9,944,664
|
|
|
|
4,522
|
|
|
0.18 %
|
|
|
Certificates and other
time deposits
|
|
|
2,185,529
|
|
|
|
2,845
|
|
|
0.52 %
|
|
|
|
2,409,663
|
|
|
|
2,014
|
|
|
0.34 %
|
|
|
|
2,897,123
|
|
|
|
3,442
|
|
|
0.47 %
|
|
|
Other
borrowings
|
|
|
577,828
|
|
|
|
3,719
|
|
|
2.55 %
|
|
|
|
112,582
|
|
|
|
450
|
|
|
1.60 %
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Securities sold under
repurchase agreements
|
|
|
473,584
|
|
|
|
487
|
|
|
0.41 %
|
|
|
|
463,108
|
|
|
|
244
|
|
|
0.21 %
|
|
|
|
448,338
|
|
|
|
195
|
|
|
0.17 %
|
|
|
Total interest-bearing
liabilities
|
|
|
19,565,438
|
|
|
|
18,875
|
|
|
0.38 %
|
|
(M)
|
|
20,125,240
|
|
|
|
9,335
|
|
|
0.19 %
|
|
(M)
|
|
19,379,803
|
|
|
|
11,773
|
|
|
0.24 %
|
|
(M)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
11,048,856
|
|
|
|
|
|
|
|
|
|
|
|
10,855,802
|
|
|
|
|
|
|
|
|
|
|
|
10,286,062
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on off-balance
sheet credit exposures
|
|
|
29,947
|
|
|
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
231,812
|
|
|
|
|
|
|
|
|
|
|
|
186,344
|
|
|
|
|
|
|
|
|
|
|
|
229,502
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
30,876,053
|
|
|
|
|
|
|
|
|
|
|
|
31,197,333
|
|
|
|
|
|
|
|
|
|
|
|
29,925,314
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
6,590,512
|
|
|
|
|
|
|
|
|
|
|
|
6,557,079
|
|
|
|
|
|
|
|
|
|
|
|
6,373,355
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
37,466,565
|
|
|
|
|
|
|
|
|
|
|
$
|
37,754,412
|
|
|
|
|
|
|
|
|
|
|
$
|
36,298,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin
|
|
|
|
|
|
$
|
260,679
|
|
|
3.11 %
|
|
|
|
|
|
|
$
|
248,471
|
|
|
2.97 %
|
|
|
|
|
|
|
$
|
248,567
|
|
|
3.09 %
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
|
458
|
|
|
|
|
|
|
|
|
|
|
|
445
|
|
|
|
|
|
|
|
|
|
|
|
551
|
|
|
|
|
|
|
Net interest income and
margin (tax
equivalent basis)
|
|
|
|
|
|
$
|
261,137
|
|
|
3.11 %
|
|
|
|
|
|
|
$
|
248,916
|
|
|
2.97 %
|
|
|
|
|
|
|
$
|
249,118
|
|
|
3.10 %
|
|
|
|
|
(K)
|
Annualized and based on an actual 365-day
basis.
|
(L)
|
Yield on securities was impacted by net premium
amortization of $9,947, $11,450 and $15,141 for the three months
ended September 30, 2022, June 31, 2022 and September 30, 2021,
respectively.
|
(M)
|
Total cost of funds, including noninterest bearing
deposits, was 0.24%, 0.12% and 0.16% for the three months ended
September 30, 2022, June 31, 2022 and September 30, 2021,
respectively.
|
Prosperity Bancshares,
Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
YIELD
ANALYSIS
|
|
Year-to-Date
|
|
|
|
|
Sep 30,
2022
|
|
|
Sep 30,
2021
|
|
|
|
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(N)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(N)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
3,980
|
|
|
$
|
137
|
|
|
4.60 %
|
|
|
$
|
19,507
|
|
|
$
|
439
|
|
|
3.01 %
|
|
|
Loans held for
investment
|
|
|
16,931,422
|
|
|
|
564,736
|
|
|
4.46 %
|
|
|
|
17,228,462
|
|
|
|
613,813
|
|
|
4.76 %
|
|
|
Loans held for
investment - Warehouse Purchase
Program
|
|
|
1,153,762
|
|
|
|
31,190
|
|
|
3.61 %
|
|
|
|
2,061,432
|
|
|
|
49,447
|
|
|
3.21 %
|
|
|
Total loans
|
|
|
18,089,164
|
|
|
|
596,063
|
|
|
4.41 %
|
|
|
|
19,309,401
|
|
|
|
663,699
|
|
|
4.60 %
|
|
|
Investment
securities
|
|
|
14,579,521
|
|
|
|
187,883
|
|
|
1.72 %
|
|
(O)
|
|
10,849,373
|
|
|
|
128,602
|
|
|
1.58 %
|
|
(O)
|
Federal funds sold and
other earning assets
|
|
|
913,923
|
|
|
|
2,297
|
|
|
0.34 %
|
|
|
|
1,151,647
|
|
|
|
993
|
|
|
0.12 %
|
|
|
Total interest-earning
assets
|
|
|
33,582,608
|
|
|
|
786,243
|
|
|
3.13 %
|
|
|
|
31,310,421
|
|
|
|
793,294
|
|
|
3.39 %
|
|
|
Allowance for credit
losses on loans
|
|
|
(284,486)
|
|
|
|
|
|
|
|
|
|
|
|
(307,500)
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,462,318
|
|
|
|
|
|
|
|
|
|
|
|
4,644,874
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
37,760,440
|
|
|
|
|
|
|
|
|
|
|
$
|
35,647,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
6,453,810
|
|
|
$
|
6,951
|
|
|
0.14 %
|
|
|
$
|
6,160,988
|
|
|
$
|
15,028
|
|
|
0.33 %
|
|
|
Savings and money
market deposits
|
|
|
10,579,351
|
|
|
|
17,978
|
|
|
0.23 %
|
|
|
|
9,747,706
|
|
|
|
15,765
|
|
|
0.22 %
|
|
|
Certificates and other
time deposits
|
|
|
2,409,251
|
|
|
|
7,135
|
|
|
0.40 %
|
|
|
|
2,969,151
|
|
|
|
13,435
|
|
|
0.60 %
|
|
|
Other
borrowings
|
|
|
232,253
|
|
|
|
4,169
|
|
|
2.40 %
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Securities sold under
repurchase agreements
|
|
|
462,994
|
|
|
|
916
|
|
|
0.26 %
|
|
|
|
403,254
|
|
|
|
518
|
|
|
0.17 %
|
|
|
Total interest-bearing
liabilities
|
|
|
20,137,659
|
|
|
|
37,149
|
|
|
0.25 %
|
|
(P)
|
|
19,281,099
|
|
|
|
44,746
|
|
|
0.31 %
|
|
(P)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
10,848,605
|
|
|
|
|
|
|
|
|
|
|
|
9,855,599
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on off-balance sheet credit
exposures
|
|
|
29,947
|
|
|
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
198,196
|
|
|
|
|
|
|
|
|
|
|
|
194,347
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
31,214,407
|
|
|
|
|
|
|
|
|
|
|
|
29,360,992
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
6,546,033
|
|
|
|
|
|
|
|
|
|
|
|
6,286,803
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
|
37,760,440
|
|
|
|
|
|
|
|
|
|
|
$
|
35,647,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin
|
|
|
|
|
|
$
|
749,094
|
|
|
2.98 %
|
|
|
|
|
|
|
$
|
748,548
|
|
|
3.20 %
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
|
1,375
|
|
|
|
|
|
|
|
|
|
|
|
1,772
|
|
|
|
|
|
|
Net interest income and
margin (tax equivalent basis)
|
|
|
|
|
|
$
|
750,469
|
|
|
2.99 %
|
|
|
|
|
|
|
$
|
750,320
|
|
|
3.20 %
|
|
|
|
|
(N)
|
Annualized and based on an actual 365-day
basis.
|
(O)
|
Yield on securities was impacted by net premium
amortization of $34,254 and $42,421 for the nine months ended
September 30, 2022 and 2021, respectively.
|
(P)
|
Total cost of funds, including noninterest bearing
deposits, was 0.16% and 0.21% for the nine months ended September
30, 2022 and 2021, respectively.
|
Prosperity Bancshares,
Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
|
Sep 30,
2021
|
|
YIELD TREND
(Q)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
5.47
|
%
|
|
|
5.02
|
%
|
|
|
3.52
|
%
|
|
|
3.20
|
%
|
|
|
3.08
|
%
|
Loans held for
investment
|
|
4.58
|
%
|
|
|
4.35
|
%
|
|
|
4.44
|
%
|
|
|
4.53
|
%
|
|
|
4.62
|
%
|
Loans held for
investment - Warehouse Purchase
Program
|
|
4.56
|
%
|
|
|
3.33
|
%
|
|
|
3.18
|
%
|
|
|
3.12
|
%
|
|
|
3.18
|
%
|
Total loans
|
|
4.58
|
%
|
|
|
4.28
|
%
|
|
|
4.35
|
%
|
|
|
4.40
|
%
|
|
|
4.48
|
%
|
Investment securities
(R)
|
|
1.82
|
%
|
|
|
1.72
|
%
|
|
|
1.62
|
%
|
|
|
1.46
|
%
|
|
|
1.50
|
%
|
Federal funds sold and
other earning assets
|
|
2.37
|
%
|
|
|
0.69
|
%
|
|
|
0.16
|
%
|
|
|
0.16
|
%
|
|
|
0.16
|
%
|
Total interest-earning
assets
|
|
3.33
|
%
|
|
|
3.08
|
%
|
|
|
2.98
|
%
|
|
|
3.07
|
%
|
|
|
3.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
0.15
|
%
|
|
|
0.13
|
%
|
|
|
0.15
|
%
|
|
|
0.14
|
%
|
|
|
0.24
|
%
|
Savings and money
market deposits
|
|
0.37
|
%
|
|
|
0.17
|
%
|
|
|
0.15
|
%
|
|
|
0.15
|
%
|
|
|
0.18
|
%
|
Certificates and other
time deposits
|
|
0.52
|
%
|
|
|
0.34
|
%
|
|
|
0.35
|
%
|
|
|
0.38
|
%
|
|
|
0.47
|
%
|
Other
borrowings
|
|
2.55
|
%
|
|
|
1.60
|
%
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Securities sold under
repurchase agreements
|
|
0.41
|
%
|
|
|
0.21
|
%
|
|
|
0.17
|
%
|
|
|
0.17
|
%
|
|
|
0.17
|
%
|
Total interest-bearing
liabilities
|
|
0.38
|
%
|
|
|
0.19
|
%
|
|
|
0.17
|
%
|
|
|
0.18
|
%
|
|
|
0.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
|
3.11
|
%
|
|
|
2.97
|
%
|
|
|
2.87
|
%
|
|
|
2.96
|
%
|
|
|
3.09
|
%
|
Net Interest Margin
(tax equivalent)
|
|
3.11
|
%
|
|
|
2.97
|
%
|
|
|
2.88
|
%
|
|
|
2.97
|
%
|
|
|
3.10
|
%
|
|
|
(Q)
|
Annualized and based on average balances on an actual
365-day basis.
|
(R)
|
Yield on securities was impacted by net premium
amortization of $9,947, $11,450, $12,857, $16,006 and $15,141
for the three months ended September 30, 2022, June 30, 2022,
March 31, 2022, December 31, 2021 and September 30, 2021,
respectively.
|
Prosperity Bancshares,
Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
Three Months
Ended
|
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
|
Sep 30,
2021
|
|
Balance Sheet
Averages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
4,136
|
|
|
$
|
3,199
|
|
|
$
|
4,611
|
|
|
$
|
8,794
|
|
|
$
|
11,714
|
|
Loans held for
investment
|
|
|
17,275,866
|
|
|
|
16,799,609
|
|
|
|
16,712,690
|
|
|
|
16,830,163
|
|
|
|
17,102,998
|
|
Loans held for
investment - Warehouse Purchase
Program
|
|
|
938,589
|
|
|
|
1,257,521
|
|
|
|
1,268,715
|
|
|
|
1,772,971
|
|
|
|
1,836,252
|
|
Total Loans
|
|
|
18,218,591
|
|
|
|
18,060,329
|
|
|
|
17,986,016
|
|
|
|
18,611,928
|
|
|
|
18,950,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
|
14,962,847
|
|
|
|
14,989,666
|
|
|
|
13,772,974
|
|
|
|
12,751,857
|
|
|
|
12,184,964
|
|
Federal funds sold and
other earning assets
|
|
|
87,859
|
|
|
|
540,907
|
|
|
|
2,135,503
|
|
|
|
1,393,859
|
|
|
|
734,787
|
|
Total interest-earning
assets
|
|
|
33,269,297
|
|
|
|
33,590,902
|
|
|
|
33,894,493
|
|
|
|
32,757,644
|
|
|
|
31,870,715
|
|
Allowance for credit
losses on loans
|
|
|
(283,244)
|
|
|
|
(284,550)
|
|
|
|
(285,692)
|
|
|
|
(287,191)
|
|
|
|
(301,011)
|
|
Cash and due from
banks
|
|
|
302,479
|
|
|
|
309,223
|
|
|
|
326,552
|
|
|
|
329,406
|
|
|
|
570,765
|
|
Goodwill
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
Core deposit
intangibles, net
|
|
|
55,158
|
|
|
|
57,728
|
|
|
|
60,346
|
|
|
|
63,091
|
|
|
|
65,955
|
|
Other real
estate
|
|
|
1,652
|
|
|
|
1,639
|
|
|
|
1,893
|
|
|
|
321
|
|
|
|
279
|
|
Fixed assets,
net
|
|
|
336,657
|
|
|
|
336,242
|
|
|
|
327,297
|
|
|
|
321,524
|
|
|
|
323,584
|
|
Other assets
|
|
|
552,929
|
|
|
|
511,591
|
|
|
|
510,944
|
|
|
|
530,603
|
|
|
|
536,745
|
|
Total
assets
|
|
$
|
37,466,565
|
|
|
$
|
37,754,412
|
|
|
$
|
38,067,470
|
|
|
$
|
36,947,035
|
|
|
$
|
36,298,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
11,048,856
|
|
|
$
|
10,855,802
|
|
|
$
|
10,636,624
|
|
|
$
|
10,587,441
|
|
|
$
|
10,286,062
|
|
Interest-bearing demand
deposits
|
|
|
6,155,511
|
|
|
|
6,437,614
|
|
|
|
6,775,114
|
|
|
|
6,196,283
|
|
|
|
6,089,678
|
|
Savings and money
market deposits
|
|
|
10,172,986
|
|
|
|
10,702,273
|
|
|
|
10,870,461
|
|
|
|
10,286,650
|
|
|
|
9,944,664
|
|
Certificates and other
time deposits
|
|
|
2,185,529
|
|
|
|
2,409,663
|
|
|
|
2,637,529
|
|
|
|
2,766,123
|
|
|
|
2,897,123
|
|
Total
deposits
|
|
|
29,562,882
|
|
|
|
30,405,352
|
|
|
|
30,919,728
|
|
|
|
29,836,497
|
|
|
|
29,217,527
|
|
Other
borrowings
|
|
|
577,828
|
|
|
|
112,582
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Securities sold under
repurchase agreements
|
|
|
473,584
|
|
|
|
463,108
|
|
|
|
452,054
|
|
|
|
432,981
|
|
|
|
448,338
|
|
Allowance for credit
losses on off-balance sheet
credit exposures
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
Other
liabilities
|
|
|
231,812
|
|
|
|
186,344
|
|
|
|
176,360
|
|
|
|
234,746
|
|
|
|
229,502
|
|
Shareholders'
equity
|
|
|
6,590,512
|
|
|
|
6,557,079
|
|
|
|
6,489,381
|
|
|
|
6,412,864
|
|
|
|
6,373,355
|
|
Total liabilities and
equity
|
|
$
|
37,466,565
|
|
|
$
|
37,754,412
|
|
|
$
|
38,067,470
|
|
|
$
|
36,947,035
|
|
|
$
|
36,298,669
|
|
Prosperity Bancshares,
Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
|
Sep 30,
2021
|
|
Period End
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
$
|
2,188,029
|
|
|
11.8
|
%
|
|
$
|
2,155,727
|
|
|
11.8
|
%
|
|
$
|
2,007,783
|
|
|
11.1
|
%
|
|
$
|
2,050,631
|
|
|
11.0
|
%
|
|
$
|
1,841,899
|
|
|
9.7
|
%
|
Warehouse purchase
program
|
|
|
922,764
|
|
|
5.0
|
%
|
|
|
1,137,623
|
|
|
6.2
|
%
|
|
|
1,344,541
|
|
|
7.4
|
%
|
|
|
1,775,699
|
|
|
9.5
|
%
|
|
|
1,998,049
|
|
|
10.6
|
%
|
Construction, land
development and
other land loans
|
|
|
2,659,552
|
|
|
14.4
|
%
|
|
|
2,460,526
|
|
|
13.5
|
%
|
|
|
2,327,837
|
|
|
12.9
|
%
|
|
|
2,299,715
|
|
|
12.4
|
%
|
|
|
2,269,417
|
|
|
12.0
|
%
|
1-4 family
residential
|
|
|
5,447,993
|
|
|
29.4
|
%
|
|
|
5,156,200
|
|
|
28.3
|
%
|
|
|
4,970,620
|
|
|
27.5
|
%
|
|
|
4,860,419
|
|
|
26.1
|
%
|
|
|
4,709,468
|
|
|
24.8
|
%
|
Home equity
|
|
|
943,197
|
|
|
5.1
|
%
|
|
|
932,725
|
|
|
5.1
|
%
|
|
|
870,130
|
|
|
4.8
|
%
|
|
|
808,289
|
|
|
4.4
|
%
|
|
|
746,426
|
|
|
3.9
|
%
|
Commercial real estate
(includes
multi-family residential)
|
|
|
4,966,243
|
|
|
26.8
|
%
|
|
|
4,967,662
|
|
|
27.3
|
%
|
|
|
5,150,555
|
|
|
28.5
|
%
|
|
|
5,251,368
|
|
|
28.2
|
%
|
|
|
5,550,841
|
|
|
29.3
|
%
|
Agriculture (includes
farmland)
|
|
|
670,603
|
|
|
3.6
|
%
|
|
|
665,960
|
|
|
3.7
|
%
|
|
|
617,418
|
|
|
3.4
|
%
|
|
|
620,338
|
|
|
3.3
|
%
|
|
|
631,497
|
|
|
3.3
|
%
|
Consumer and
other
|
|
|
288,834
|
|
|
1.6
|
%
|
|
|
274,532
|
|
|
1.5
|
%
|
|
|
246,433
|
|
|
1.4
|
%
|
|
|
288,496
|
|
|
1.6
|
%
|
|
|
274,980
|
|
|
1.5
|
%
|
Energy
|
|
|
410,069
|
|
|
2.2
|
%
|
|
|
430,339
|
|
|
2.4
|
%
|
|
|
445,949
|
|
|
2.5
|
%
|
|
|
491,305
|
|
|
2.6
|
%
|
|
|
569,314
|
|
|
3.0
|
%
|
Paycheck Protection
Program
|
|
|
9,004
|
|
|
0.1
|
%
|
|
|
27,550
|
|
|
0.2
|
%
|
|
|
86,258
|
|
|
0.5
|
%
|
|
|
169,884
|
|
|
0.9
|
%
|
|
|
365,841
|
|
|
1.9
|
%
|
Total loans
|
|
$
|
18,506,288
|
|
|
|
|
|
$
|
18,208,844
|
|
|
|
|
|
$
|
18,067,524
|
|
|
|
|
|
$
|
18,616,144
|
|
|
|
|
|
$
|
18,957,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
DDA
|
|
$
|
11,154,143
|
|
|
38.1
|
%
|
|
$
|
11,032,184
|
|
|
36.9
|
%
|
|
$
|
10,776,652
|
|
|
34.7
|
%
|
|
$
|
10,750,034
|
|
|
34.9
|
%
|
|
$
|
10,326,489
|
|
|
35.0
|
%
|
Interest-bearing
DDA
|
|
|
6,027,157
|
|
|
20.6
|
%
|
|
|
6,331,314
|
|
|
21.2
|
%
|
|
|
6,603,934
|
|
|
21.2
|
%
|
|
|
6,741,092
|
|
|
21.9
|
%
|
|
|
6,088,923
|
|
|
20.7
|
%
|
Money market
|
|
|
6,438,787
|
|
|
22.0
|
%
|
|
|
6,646,726
|
|
|
22.3
|
%
|
|
|
7,603,329
|
|
|
24.5
|
%
|
|
|
7,178,904
|
|
|
23.3
|
%
|
|
|
6,864,664
|
|
|
23.3
|
%
|
Savings
|
|
|
3,563,776
|
|
|
12.1
|
%
|
|
|
3,597,820
|
|
|
12.0
|
%
|
|
|
3,543,300
|
|
|
11.4
|
%
|
|
|
3,401,727
|
|
|
11.1
|
%
|
|
|
3,293,850
|
|
|
11.2
|
%
|
Certificates and other
time deposits
|
|
|
2,116,232
|
|
|
7.2
|
%
|
|
|
2,257,574
|
|
|
7.6
|
%
|
|
|
2,541,095
|
|
|
8.2
|
%
|
|
|
2,700,005
|
|
|
8.8
|
%
|
|
|
2,877,726
|
|
|
9.8
|
%
|
Total
deposits
|
|
$
|
29,300,095
|
|
|
|
|
|
$
|
29,865,618
|
|
|
|
|
|
$
|
31,068,310
|
|
|
|
|
|
$
|
30,771,762
|
|
|
|
|
|
$
|
29,451,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
|
|
63.2
|
%
|
|
|
|
|
|
61.0
|
%
|
|
|
|
|
|
58.2
|
%
|
|
|
|
|
|
60.5
|
%
|
|
|
|
|
|
64.4
|
%
|
|
|
|
Prosperity Bancshares,
Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
Construction
Loans
|
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
|
Sep 30,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family
residential construction
|
|
$
|
1,004,000
|
|
|
37.8
|
%
|
|
$
|
911,443
|
|
|
37.0
|
%
|
|
$
|
816,072
|
|
|
35.0
|
%
|
|
$
|
728,393
|
|
|
31.7
|
%
|
|
$
|
659,248
|
|
|
29.0
|
%
|
Land
development
|
|
|
145,303
|
|
|
5.5
|
%
|
|
|
133,398
|
|
|
5.4
|
%
|
|
|
103,853
|
|
|
4.5
|
%
|
|
|
99,099
|
|
|
4.3
|
%
|
|
|
92,623
|
|
|
4.1
|
%
|
Raw land
|
|
|
343,066
|
|
|
12.9
|
%
|
|
|
316,750
|
|
|
12.9
|
%
|
|
|
310,987
|
|
|
13.4
|
%
|
|
|
322,673
|
|
|
14.0
|
%
|
|
|
315,803
|
|
|
13.9
|
%
|
Residential
lots
|
|
|
237,714
|
|
|
8.9
|
%
|
|
|
223,703
|
|
|
9.1
|
%
|
|
|
212,029
|
|
|
9.1
|
%
|
|
|
206,978
|
|
|
9.0
|
%
|
|
|
195,201
|
|
|
8.6
|
%
|
Commercial
lots
|
|
|
181,679
|
|
|
6.8
|
%
|
|
|
184,794
|
|
|
7.5
|
%
|
|
|
183,760
|
|
|
7.9
|
%
|
|
|
184,901
|
|
|
8.0
|
%
|
|
|
169,189
|
|
|
7.5
|
%
|
Commercial construction
and other
|
|
|
747,803
|
|
|
28.1
|
%
|
|
|
690,453
|
|
|
28.1
|
%
|
|
|
701,148
|
|
|
30.1
|
%
|
|
|
757,687
|
|
|
33.0
|
%
|
|
|
837,436
|
|
|
36.9
|
%
|
Net unaccreted
discount
|
|
|
(13)
|
|
|
|
|
|
|
(15)
|
|
|
|
|
|
|
(12)
|
|
|
|
|
|
|
(16)
|
|
|
|
|
|
|
(83)
|
|
|
|
|
Total construction
loans
|
|
$
|
2,659,552
|
|
|
|
|
|
$
|
2,460,526
|
|
|
|
|
|
$
|
2,327,837
|
|
|
|
|
|
$
|
2,299,715
|
|
|
|
|
|
$
|
2,269,417
|
|
|
|
|
Non-Owner Occupied
Commercial Real Estate Loans by Metropolitan Statistical Area (MSA)
as of September 30, 2022
|
|
|
Houston
|
|
|
Dallas
|
|
|
Austin
|
|
|
OK
City
|
|
|
Tulsa
|
|
|
Other
(S)
|
|
|
Total
|
|
|
Collateral
Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopping
center/retail
|
$
|
422,432
|
|
|
$
|
257,332
|
|
|
$
|
50,427
|
|
|
$
|
18,868
|
|
|
$
|
27,159
|
|
|
$
|
276,875
|
|
|
$
|
1,053,093
|
|
|
Commercial and
industrial buildings
|
|
160,956
|
|
|
|
78,735
|
|
|
|
18,646
|
|
|
|
32,753
|
|
|
|
16,267
|
|
|
|
166,892
|
|
|
|
474,249
|
|
|
Office
buildings
|
|
92,541
|
|
|
|
322,061
|
|
|
|
26,391
|
|
|
|
68,836
|
|
|
|
4,378
|
|
|
|
64,189
|
|
|
|
578,396
|
|
|
Medical
buildings
|
|
82,266
|
|
|
|
20,237
|
|
|
|
2,525
|
|
|
|
20,961
|
|
|
|
39,028
|
|
|
|
51,973
|
|
|
|
216,990
|
|
|
Apartment
buildings
|
|
79,475
|
|
|
|
64,631
|
|
|
|
12,259
|
|
|
|
13,995
|
|
|
|
8,239
|
|
|
|
147,840
|
|
|
|
326,439
|
|
|
Hotel
|
|
92,257
|
|
|
|
68,683
|
|
|
|
44,188
|
|
|
|
28,364
|
|
|
|
—
|
|
|
|
131,290
|
|
|
|
364,782
|
|
|
Other
|
|
73,549
|
|
|
|
76,947
|
|
|
|
32,797
|
|
|
|
7,512
|
|
|
|
2,593
|
|
|
|
71,337
|
|
|
|
264,735
|
|
|
Total
|
$
|
1,003,476
|
|
|
$
|
888,626
|
|
|
$
|
187,233
|
|
|
$
|
191,289
|
|
|
$
|
97,664
|
|
|
$
|
910,396
|
|
|
$
|
3,278,684
|
|
(T)
|
Acquired
Loans
|
|
|
|
Non-PCD
Loans
|
|
|
PCD
Loans
|
|
|
Total Acquired
Loans
|
|
|
|
Balance
at
Acquisition
Date
|
|
|
Balance
at
Jun 30,
2022
|
|
|
Balance
at
Sep 30,
2022
|
|
|
Balance
at
Acquisition
Date
|
|
|
Balance
at
Jun 30,
2022
|
|
|
Balance
at
Sep 30,
2022
|
|
|
Balance
at
Acquisition
Date
|
|
|
Balance
at
Jun 30,
2022
|
|
|
Balance
at
Sep 30,
2022
|
|
Loan
marks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(U)
|
|
$
|
345,599
|
|
|
$
|
3,734
|
|
|
$
|
2,836
|
|
|
$
|
320,052
|
|
|
$
|
3,993
|
|
|
$
|
3,671
|
|
|
$
|
665,651
|
|
|
$
|
7,727
|
|
|
$
|
6,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(U)
|
|
|
12,286,159
|
|
|
|
1,559,270
|
|
|
|
1,410,748
|
|
|
|
689,573
|
|
|
|
68,125
|
|
|
|
66,613
|
|
|
|
12,975,732
|
|
(V)
|
|
1,627,395
|
|
|
|
1,477,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan balances less
loan marks
|
|
$
|
11,940,560
|
|
|
$
|
1,555,536
|
|
|
$
|
1,407,912
|
|
|
$
|
369,521
|
|
|
$
|
64,132
|
|
|
$
|
62,942
|
|
|
$
|
12,310,081
|
|
|
$
|
1,619,668
|
|
|
$
|
1,470,854
|
|
|
|
(S)
|
Includes other MSA and non-MSA
regions.
|
(T)
|
Represents a portion of total commercial real estate
loans of $4.966 billion as of September 30,
2022.
|
(U)
|
Includes Bank Arlington, American State Bank,
Community National Bank, First Federal Bank Texas, Coppermark Bank,
First Victoria National Bank, The F&M Bank & Trust Company,
Tradition Bank and LegacyTexas Bank.
|
(V)
|
Actual principal balances
acquired.
|
Prosperity Bancshares,
Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
|
Sep 30,
2021
|
|
|
Sep 30,
2022
|
|
|
Sep 30,
2021
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
|
17,729
|
|
|
$
|
20,619
|
|
|
$
|
21,765
|
|
|
$
|
26,269
|
|
|
$
|
35,035
|
|
|
$
|
17,729
|
|
|
$
|
35,035
|
|
Accruing loans 90 or
more days past due
|
|
378
|
|
|
|
13
|
|
|
|
3,695
|
|
|
|
887
|
|
|
|
1,038
|
|
|
|
378
|
|
|
|
1,038
|
|
Total nonperforming
loans
|
|
18,107
|
|
|
|
20,632
|
|
|
|
25,460
|
|
|
|
27,156
|
|
|
|
36,073
|
|
|
|
18,107
|
|
|
|
36,073
|
|
Repossessed
assets
|
|
13
|
|
|
|
—
|
|
|
|
19
|
|
|
|
310
|
|
|
|
326
|
|
|
|
13
|
|
|
|
326
|
|
Other real
estate
|
|
1,758
|
|
|
|
1,555
|
|
|
|
1,705
|
|
|
|
622
|
|
|
|
150
|
|
|
|
1,758
|
|
|
|
150
|
|
Total nonperforming
assets
|
$
|
19,878
|
|
|
$
|
22,187
|
|
|
$
|
27,184
|
|
|
$
|
28,088
|
|
|
$
|
36,549
|
|
|
$
|
19,878
|
|
|
$
|
36,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
2,376
|
|
|
$
|
2,964
|
|
|
$
|
4,403
|
|
|
$
|
6,150
|
|
|
$
|
8,199
|
|
|
$
|
2,376
|
|
|
$
|
8,199
|
|
Construction, land
development and other land
loans
|
|
1,712
|
|
|
|
1,866
|
|
|
|
1,761
|
|
|
|
1,841
|
|
|
|
803
|
|
|
|
1,712
|
|
|
|
803
|
|
1-4 family residential
(includes home equity)
|
|
13,986
|
|
|
|
14,335
|
|
|
|
11,899
|
|
|
|
11,990
|
|
|
|
11,117
|
|
|
|
13,986
|
|
|
|
11,117
|
|
Commercial real estate
(includes multi-family
residential)
|
|
1,364
|
|
|
|
2,448
|
|
|
|
7,685
|
|
|
|
7,276
|
|
|
|
15,691
|
|
|
|
1,364
|
|
|
|
15,691
|
|
Agriculture (includes
farmland)
|
|
434
|
|
|
|
567
|
|
|
|
1,402
|
|
|
|
816
|
|
|
|
643
|
|
|
|
434
|
|
|
|
643
|
|
Consumer and
other
|
|
6
|
|
|
|
7
|
|
|
|
34
|
|
|
|
15
|
|
|
|
96
|
|
|
|
6
|
|
|
|
96
|
|
Total
|
$
|
19,878
|
|
|
$
|
22,187
|
|
|
$
|
27,184
|
|
|
$
|
28,088
|
|
|
$
|
36,549
|
|
|
$
|
19,878
|
|
|
$
|
36,549
|
|
Number of
loans/properties
|
|
150
|
|
|
|
160
|
|
|
|
147
|
|
|
|
157
|
|
|
|
155
|
|
|
|
150
|
|
|
|
155
|
|
Allowance for credit
losses on loans
|
$
|
282,179
|
|
|
$
|
283,959
|
|
|
$
|
285,163
|
|
|
$
|
286,380
|
|
|
$
|
287,187
|
|
|
$
|
282,179
|
|
|
$
|
287,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
(15)
|
|
|
$
|
(197)
|
|
|
$
|
14
|
|
|
$
|
177
|
|
|
$
|
3,763
|
|
|
$
|
(198)
|
|
|
$
|
8,876
|
|
Construction, land
development and other land
loans
|
|
(4)
|
|
|
|
(5)
|
|
|
|
430
|
|
|
|
(162)
|
|
|
|
(4)
|
|
|
|
421
|
|
|
|
(114)
|
|
1-4 family residential
(includes home equity)
|
|
(202)
|
|
|
|
(32)
|
|
|
|
87
|
|
|
|
(72)
|
|
|
|
66
|
|
|
|
(147)
|
|
|
|
107
|
|
Commercial real estate
(includes multi-family
residential)
|
|
757
|
|
|
|
395
|
|
|
|
(366)
|
|
|
|
(10)
|
|
|
|
11,180
|
|
|
|
786
|
|
|
|
18,286
|
|
Agriculture (includes
farmland)
|
|
119
|
|
|
|
(9)
|
|
|
|
(103)
|
|
|
|
(102)
|
|
|
|
(63)
|
|
|
|
7
|
|
|
|
(39)
|
|
Consumer and
other
|
|
1,125
|
|
|
|
1,052
|
|
|
|
1,155
|
|
|
|
976
|
|
|
|
755
|
|
|
|
3,332
|
|
|
|
1,765
|
|
Total
|
$
|
1,780
|
|
|
$
|
1,204
|
|
|
$
|
1,217
|
|
|
$
|
807
|
|
|
$
|
15,697
|
|
|
$
|
4,201
|
|
|
$
|
28,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
average interest-earning
assets
|
|
0.06
|
%
|
|
|
0.07
|
%
|
|
|
0.08
|
%
|
|
|
0.09
|
%
|
|
|
0.11
|
%
|
|
|
0.06
|
%
|
|
|
0.12
|
%
|
Nonperforming assets to
loans and other real estate
|
|
0.11
|
%
|
|
|
0.12
|
%
|
|
|
0.15
|
%
|
|
|
0.15
|
%
|
|
|
0.19
|
%
|
|
|
0.11
|
%
|
|
|
0.19
|
%
|
Net charge-offs to
average loans (annualized)
|
|
0.04
|
%
|
|
|
0.03
|
%
|
|
|
0.03
|
%
|
|
|
0.02
|
%
|
|
|
0.33
|
%
|
|
|
0.03
|
%
|
|
|
0.20
|
%
|
Allowance for credit
losses on loans to total loans
|
|
1.52
|
%
|
|
|
1.56
|
%
|
|
|
1.58
|
%
|
|
|
1.54
|
%
|
|
|
1.51
|
%
|
|
|
1.52
|
%
|
|
|
1.51
|
%
|
Allowance for credit
losses on loans to total loans,
excluding Warehouse Purchase Program loans
and Paycheck Protection Program loans
(G)
|
|
1.61
|
%
|
|
|
1.67
|
%
|
|
|
1.71
|
%
|
|
|
1.72
|
%
|
|
|
1.73
|
%
|
|
|
1.61
|
%
|
|
|
1.73
|
%
|
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 return on average tangible common equity;
tangible book value per share; the tangible equity to tangible
assets ratio; allowance for credit losses on loans to total loans
excluding Warehouse Purchase Program
and PPP loans; and the
efficiency ratio, excluding net gains and losses on the sale or
write down 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 on loans to total loans
(excluding Warehouse Purchase Program loans
and PPP loans).
Prosperity has included information below relating to these
non-GAAP financial measures for the applicable periods
presented.
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
|
Sep 30,
2021
|
|
|
Sep 30,
2022
|
|
|
Sep 30,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
return on average common equity to
return on average tangible common
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
122,326
|
|
|
$
|
126,787
|
|
|
$
|
128,590
|
|
|
$
|
386,636
|
|
|
$
|
392,510
|
|
Average shareholders'
equity
|
|
$
|
6,590,512
|
|
|
$
|
6,557,079
|
|
|
$
|
6,489,381
|
|
|
$
|
6,412,864
|
|
|
$
|
6,373,355
|
|
|
$
|
6,546,033
|
|
|
$
|
6,286,803
|
|
Less: Average goodwill
and other intangible assets
|
|
|
(3,286,795)
|
|
|
|
(3,289,365)
|
|
|
|
(3,291,983)
|
|
|
|
(3,294,728)
|
|
|
|
(3,297,592)
|
|
|
|
(3,289,362)
|
|
|
|
(3,300,990)
|
|
Average tangible
shareholders' equity
|
|
$
|
3,303,717
|
|
|
$
|
3,267,714
|
|
|
$
|
3,197,398
|
|
|
$
|
3,118,136
|
|
|
$
|
3,075,763
|
|
|
$
|
3,256,671
|
|
|
$
|
2,985,813
|
|
Return on average
tangible common equity (F)
|
|
|
16.44
|
%
|
|
|
15.73
|
%
|
|
|
15.30
|
%
|
|
|
16.26
|
%
|
|
|
16.72
|
%
|
|
|
15.83
|
%
|
|
|
17.53
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
book value per share to tangible book
value per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
6,611,642
|
|
|
$
|
6,521,827
|
|
|
$
|
6,504,424
|
|
|
$
|
6,427,236
|
|
|
$
|
6,345,441
|
|
|
$
|
6,611,642
|
|
|
$
|
6,345,441
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,285,541)
|
|
|
|
(3,288,119)
|
|
|
|
(3,290,700)
|
|
|
|
(3,293,320)
|
|
|
|
(3,296,175)
|
|
|
|
(3,285,541)
|
|
|
|
(3,296,175)
|
|
Tangible shareholders'
equity
|
|
$
|
3,326,101
|
|
|
$
|
3,233,708
|
|
|
$
|
3,213,724
|
|
|
$
|
3,133,916
|
|
|
$
|
3,049,266
|
|
|
$
|
3,326,101
|
|
|
$
|
3,049,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
|
|
91,210
|
|
|
|
91,196
|
|
|
|
92,160
|
|
|
|
92,170
|
|
|
|
92,160
|
|
|
|
91,210
|
|
|
|
92,160
|
|
Tangible book value per
share
|
|
$
|
36.47
|
|
|
$
|
35.46
|
|
|
$
|
34.87
|
|
|
$
|
34.00
|
|
|
$
|
33.09
|
|
|
$
|
36.47
|
|
|
$
|
33.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
equity to assets ratio to period end
tangible equity to period end tangible assets
ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible shareholders'
equity
|
|
$
|
3,326,101
|
|
|
$
|
3,233,708
|
|
|
$
|
3,213,724
|
|
|
$
|
3,133,916
|
|
|
$
|
3,049,266
|
|
|
$
|
3,326,101
|
|
|
$
|
3,049,266
|
|
Total assets
|
|
$
|
37,843,502
|
|
|
$
|
37,387,256
|
|
|
$
|
38,271,186
|
|
|
$
|
37,833,970
|
|
|
$
|
36,512,119
|
|
|
$
|
37,843,502
|
|
|
$
|
36,512,119
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,285,541)
|
|
|
|
(3,288,119)
|
|
|
|
(3,290,700)
|
|
|
|
(3,293,320)
|
|
|
|
(3,296,175)
|
|
|
|
(3,285,541)
|
|
|
|
(3,296,175)
|
|
Tangible
assets
|
|
$
|
34,557,961
|
|
|
$
|
34,099,137
|
|
|
$
|
34,980,486
|
|
|
$
|
34,540,650
|
|
|
$
|
33,215,944
|
|
|
$
|
34,557,961
|
|
|
$
|
33,215,944
|
|
Period end tangible
equity to period end tangible assets
ratio
|
|
|
9.62
|
%
|
|
|
9.48
|
%
|
|
|
9.19
|
%
|
|
|
9.07
|
%
|
|
|
9.18
|
%
|
|
|
9.62
|
%
|
|
|
9.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
allowance for credit losses to total
loans to allowance for credit losses on loans to
total
loans excluding Warehouse Purchase Program and
Paycheck Protection Program loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans
|
|
$
|
282,179
|
|
|
$
|
283,959
|
|
|
$
|
285,163
|
|
|
$
|
286,380
|
|
|
$
|
287,187
|
|
|
$
|
282,179
|
|
|
$
|
287,187
|
|
Total loans
|
|
$
|
18,506,288
|
|
|
$
|
18,208,844
|
|
|
$
|
18,067,524
|
|
|
$
|
18,616,144
|
|
|
$
|
18,957,732
|
|
|
$
|
18,506,288
|
|
|
$
|
18,957,732
|
|
Less: Warehouse
Purchase Program loans
|
|
|
(922,764)
|
|
|
|
(1,137,623)
|
|
|
|
(1,344,541)
|
|
|
|
(1,775,699)
|
|
|
|
(1,998,049)
|
|
|
|
(922,764)
|
|
|
|
(1,998,049)
|
|
Less: Paycheck
Protection Program loans
|
|
|
(9,004)
|
|
|
|
(27,550)
|
|
|
|
(86,258)
|
|
|
|
(169,884)
|
|
|
|
(365,841)
|
|
|
|
(9,004)
|
|
|
|
(365,841)
|
|
Total loans less
Warehouse Purchase Program and
Paycheck Protection Program loans
|
|
$
|
17,574,520
|
|
|
$
|
17,043,671
|
|
|
$
|
16,636,725
|
|
|
$
|
16,670,561
|
|
|
$
|
16,593,842
|
|
|
$
|
17,574,520
|
|
|
$
|
16,593,842
|
|
Allowance for credit
losses on loans to total loans
excluding Warehouse Purchase Program and Paycheck
Protection Program loans
|
|
|
1.61
|
%
|
|
|
1.67
|
%
|
|
|
1.71
|
%
|
|
|
1.72
|
%
|
|
|
1.73
|
%
|
|
|
1.61
|
%
|
|
|
1.73
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
efficiency ratio to efficiency ratio
excluding net gains and losses on the sale of
assets
and securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
122,214
|
|
|
$
|
122,878
|
|
|
$
|
119,850
|
|
|
$
|
119,538
|
|
|
$
|
119,815
|
|
|
$
|
364,942
|
|
|
$
|
354,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
260,679
|
|
|
$
|
248,471
|
|
|
$
|
239,944
|
|
|
$
|
244,760
|
|
|
$
|
248,567
|
|
|
$
|
749,094
|
|
|
$
|
748,548
|
|
Noninterest
income
|
|
|
34,688
|
|
|
|
37,594
|
|
|
|
35,122
|
|
|
|
35,757
|
|
|
|
34,645
|
|
|
|
107,404
|
|
|
|
104,209
|
|
Less: net gain (loss)
on sale or write down of assets
|
|
|
50
|
|
|
|
1,108
|
|
|
|
689
|
|
|
|
1,165
|
|
|
|
255
|
|
|
|
1,847
|
|
|
|
(68)
|
|
Noninterest income
excluding net gains and losses on the
sale or write down of assets and securities
|
|
|
34,638
|
|
|
|
36,486
|
|
|
|
34,433
|
|
|
|
34,592
|
|
|
|
34,390
|
|
|
|
105,557
|
|
|
|
104,277
|
|
Total income excluding
net gains and losses on the
sale or write down of assets and securities
|
|
$
|
295,317
|
|
|
$
|
284,957
|
|
|
$
|
274,377
|
|
|
$
|
279,352
|
|
|
$
|
282,957
|
|
|
$
|
854,651
|
|
|
$
|
852,825
|
|
Efficiency ratio,
excluding net gains and losses on the sale
or write down of assets and securities
|
|
|
41.38
|
%
|
|
|
43.12
|
%
|
|
|
43.68
|
%
|
|
|
42.79
|
%
|
|
|
42.34
|
%
|
|
|
42.70
|
%
|
|
|
41.52
|
%
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/prosperity-bancshares-inc-reports-third-quarter-2022-earnings-301659313.html
SOURCE Prosperity Bancshares, Inc.