- Fourth quarter net income of $137.9
million and earnings per share (diluted) of $1.51
- Fourth quarter net income increased 8.7% compared to fourth
quarter 2021
- Loans, excluding Warehouse Purchase Program and SBA Paycheck
Protection Program loans, increased $518.5
million or 3.0% (11.8% annualized) during fourth quarter
2022
- Loans, excluding Warehouse Purchase Program and SBA Paycheck
Protection Program loans, increased $1.422
billion or 8.5% during 2022
- Allowance for credit losses on loans to total loans,
excluding Warehouse Purchase Program and SBA Paycheck Protection
Program loans, of 1.56%(1)
- Nonperforming assets remain low at 0.08% of fourth quarter
average interest-earning assets
- Return (annualized) on fourth quarter average assets of
1.47%, average common equity of 8.26%, average tangible common
equity of 16.26%(1), and efficiency ratio of
40.87%
- Pending acquisitions of First Bancshares of Texas, Inc., Midland, Texas, and Lone Star State
Bancshares, Inc., Lubbock,
Texas
- Approved 2023 Stock Repurchase Program covering up to 5% of
outstanding common stock
HOUSTON, Jan. 25,
2023 /PRNewswire/ -- Prosperity Bancshares,
Inc.® (NYSE: PB), the parent company of Prosperity
Bank® (collectively, "Prosperity"), reported net income
of $137.9 million for the quarter
ended December 31, 2022 compared with $126.8 million for the same period in 2021. Net
income per diluted common share was $1.51 for the quarter ended December 31,
2022 compared with $1.38 for the same
period in 2021, an increase of 9.4%, and the annualized return on
fourth quarter average assets was 1.47%. Additionally, loans,
excluding Warehouse Purchase Program and SBA Paycheck Protection
Program ("PPP") loans, increased $518.5
million or 3.0% (11.8% annualized) during the fourth quarter
of 2022. Nonperforming assets remain low at 0.08% of fourth quarter
average interest-earning assets.
"During the fourth quarter of 2022, Prosperity continued to see
growth in loans, which we expect will continue in 2023. The growth
comes from new loans as well as existing loans not paying off as
fast as they did when rates were low and it was opportunistic for
borrowers to repay or move the loans. Consumer spending remains
strong, especially in the tourism, restaurant and hospitality
sectors. Real estate sales and pricing have been affected by
the increase in rates, but we expect that because of inventory
levels and population growth, the impact will be less in
Texas and Oklahoma," said David
Zalman, Prosperity's Senior Chairman and Chief Executive
Officer.
"We believe that the economies in Texas and Oklahoma will outperform other states over the
next several years as companies and individuals continue to move to
the states because of lower tax rates and a business-friendly
political environment. We expect that companies will need more
infrastructure and buildings and consumers will need more housing
and places to spend their money, and both will need banks to
finance the growth," continued Zalman.
"While the net interest margin at some banks has improved
immediately because of higher rates, we expect Prosperity's net
interest margin to continue to increase over the next several years
as our bond portfolio, which yielded 1.96% during the fourth
quarter of 2022, reprices to higher yields assuming that rates
normalize near the current rate," concluded Zalman.
Results of Operations for the Three Months Ended
December 31, 2022
Net income was $137.9
million(2) for the three months ended
December 31, 2022 compared with $126.8
million(3) for the same period in 2021, an
increase of $11.1 million or 8.7%.
The change was primarily due to an increase in loans and securities
interest income, partially offset by a decrease in PPP fees and
interest income of $8.5 million, a
decrease in loan discount accretion of $4.5
million, and an increase in interest expense. Net income per
diluted common share was $1.51 for
the three months ended December 31, 2022 compared with
$1.38 for the same period in 2021, an
increase of 9.4%. On a linked quarter basis, net income was
$137.9 million(2) for the
three months ended December 31, 2022 compared with
$135.8 million(4) for the
three months ended September 30, 2022, an increase of
$2.1 million or 1.5%. The change was
primarily due to an increase in noninterest income and a decrease
in noninterest expense, partially offset by a decrease in net
interest income. Net income per diluted common share was
$1.51 for the three months ended
December 31, 2022 compared with $1.49 for the three months ended
September 30, 2022, an increase of 1.3%. Annualized returns on
average assets, average common equity and average tangible common
equity for the three months ended December 31, 2022 were
1.47%, 8.26% and 16.26%(1), respectively. Prosperity's
efficiency ratio (excluding net gains and losses on the sale or
write down of assets and securities) was 40.87%(1) for
the three months ended December 31, 2022.
Net interest income before provision for credit losses for the
three months ended December 31, 2022 was $256.1 million compared with $244.8 million for the same period in 2021, an
increase of $11.4 million or 4.6%.
The change was primarily due to an increase in the average balances
and average rates on loans held for investment and on investment
securities, partially offset by a decrease in PPP fees and interest
income of $8.5 million, a decrease in
loan discount accretion of $4.5
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 $256.1 million compared with $260.7 million for the three months ended
September 30, 2022, a decrease of $4.5
million or 1.7%.
The net interest margin on a tax equivalent basis was 3.05% for
the three months ended December 31, 2022 compared with 2.97%
for the same period in 2021. The change was primarily due to an
increase in the average balances and average rates on loans held
for investment and on investment securities, partially offset by a
decrease in PPP fees and interest income of $8.5 million, a decrease in loan discount
accretion of $4.5 million and an
increase in the average rates on interest-bearing liabilities. On a
linked quarter basis, the net interest margin on a tax equivalent
basis was 3.05% for the three months ended December 31, 2022 compared with 3.11% for the
three months ended September 30,
2022. The linked quarter decrease was primarily due to an
increase in the average rates on interest-bearing liabilities,
partially offset by higher average balances and higher average
rates on loans and average rates on investment securities.
Noninterest income was $37.7
million for the three months ended December 31, 2022
compared with $35.8 million for the
same period in 2021, an increase of $2.0
million or 5.5%. This change was primarily due to a
higher net gain on sale or write-down of assets, an increase in
trust income and an increase in other noninterest income. On
a linked quarter basis, noninterest income was $37.7 million compared with $34.7 million for the three months ended
September 30, 2022, an increase of $3.0
million or 8.8%, primarily due to a higher net gain on the
sale or write-down of assets and an increase in other noninterest
income.
Noninterest expense was $119.2
million for the three months ended December 31, 2022
compared with $119.5 million for the
same period in 2021, a decrease of $294
thousand. On a linked quarter basis, noninterest
expense decreased $3.0 million
or 2.4% to $119.2 million compared
with $122.2 million for the three
months ended September 30, 2022. This
change was primarily due to a decrease in salaries and benefits,
partially offset by an increase in other noninterest expense.
Results of Operations for the Year Ended December 31,
2022
Net income was $524.5
million(5) for the year ended December 31,
2022 compared with $519.3
million(6) for 2021, an increase of $5.2 million or 1.0%. Net income per diluted
common share was $5.73 for the year
ended December 31, 2022 compared with $5.60 for 2021, an increase of 2.3%. Annualized
returns on average assets, average common equity and average
tangible common equity for the year ended December 31, 2022
were 1.39%, 7.97% and 15.94%(1), respectively.
Prosperity's efficiency ratio (excluding net gains and losses on
the sale or write down of assets and securities) was
42.23%(1) for the year ended December 31, 2022.
Net interest income before provision for credit losses for the
year ended December 31, 2022 was $1.005
billion compared with $993.3
million for the prior year, an increase of $11.9 million or 1.2%. The change was
primarily due to an increase in average balances and average rates
on investment securities, partially offset by a decrease in PPP
fees and interest income of $44.6
million, a decrease in loan discount accretion of
$31.9 million and an increase in the
average rates on interest-bearing liabilities.
The net interest margin on a tax equivalent basis for the year
ended December 31, 2022 was 3.00% compared with 3.14% for
2021. The change was primarily due to an increase in the average
balances on investment securities, partially offset by a decrease
in PPP fees and interest income of $44.6
million, a decrease in loan discount accretion of
$31.9 million and an increase in the
average rates on interest-bearing liabilities.
Noninterest income was $145.1
million for the year ended December 31, 2022 compared
with $140.0 million for 2021, an
increase of $5.2 million
or 3.7%, primarily due to an increase in NSF income, a net
gain on the sale or write-down of assets, an increase in trust
income and an increase in other noninterest income, partially
offset by a decrease in mortgage income.
Noninterest expense was $484.2
million for the year ended December 31, 2022 compared
with $473.6 million for 2021, an
increase of $10.6 million or 2.2%.
The change was primarily due to an increase in salaries and
benefits, an increase in credit and debit card and data processing
expense and the change in net loss (gain) on sale or write-down of
other real estate.
Balance Sheet Information
At December 31, 2022, Prosperity had $37.690 billion in total assets, a decrease of
$144.1 million or 0.4%, compared with
$37.834 billion at December 31,
2021.
Loans at December 31, 2022 were $18.840 billion, an increase of $223.7 million or 1.2%, compared with
$18.616 billion at December 31,
2021, primarily due to increases in 1-4 family residential and
construction, land development and other land loans, partially
offset by decreases in Warehouse Purchase Program, PPP and
commercial real estate loans. Linked quarter loans increased
$333.5 million or 1.8% (7.2%
annualized) from $18.506 billion at
September 30, 2022. Excluding Warehouse Purchase Program and
PPP loans, loans at December 31, 2022 were $18.093 billion compared to $16.671 billion at December 31, 2021, an
increase of $1.422 billion or 8.5%.
Linked quarter loans, excluding Warehouse Purchase Program and PPP
loans, increased $518.5 million or
3.0% (11.8% annualized) from $17.575
billion at September 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 December 31, 2022, oil and gas
loans totaled $429.5 million (net of
discount and excluding PPP loans totaling $3.4 million) or 2.3% of total loans, of which
$209.0 million were production loans
and $220.5 million were servicing
loans, compared with total oil and gas loans of $491.3 million (net of discount and excluding PPP
loans totaling $27.9 million) or 2.6%
of total loans at December 31, 2021, of which $294.1 million were production loans and
$197.2 million were servicing loans.
In addition, as of December 31, 2022, Prosperity had total
unfunded commitments to oil and gas companies of $453.4 million compared with total unfunded
commitments to oil and gas companies of $419.0 million as of December 31, 2021.
Unfunded commitments to producers include letters of credit issued
in lieu of oil well plugging bonds.
Deposits at December 31, 2022 were
$28.534 billion, a decrease of
$2.238 billion or 7.3%, compared with
$30.772 billion at December 31, 2021, primarily due to a decrease in
public fund deposits. Linked quarter deposits decreased
$766.6 million or 2.6% from
$29.300 billion at September 30, 2022.
Asset Quality
Nonperforming assets totaled $27.5
million or 0.08% of quarterly average interest-earning
assets at December 31, 2022 compared with $28.1 million or 0.09% of quarterly average
interest-earning assets at December 31, 2021 and $19.9 million or 0.06% of quarterly average
interest-earning assets at September 30, 2022.
The allowance for credit losses on loans and off-balance sheet
credit exposures was $311.5 million
at December 31, 2022 compared with $316.3 million at December 31, 2021 and
$312.1 million at September 30,
2022. There was no provision for credit losses for the three months
and years ended December 31, 2022 and 2021.
The allowance for credit losses on loans was $281.6 million or 1.49% of total loans at
December 31, 2022 compared with $286.4
million or 1.54% of total loans at December 31, 2021
and $282.2 million or 1.52% of total
loans at September 30, 2022. Excluding Warehouse Purchase
Program and PPP loans, the allowance for credit losses on loans to
total loans was 1.56%(1) at December 31, 2022
compared with 1.72%(1) at December 31, 2021 and
1.61%(1) at September 30,
2022.
Net charge-offs were $603 thousand
for the three months ended December 31, 2022 compared with net
charge-offs of $807 thousand for the
three months ended December 31, 2021 and net charge-offs of
$1.8 million for the three months
ended September 30, 2022. During the fourth quarter of 2022,
net charge-offs did not include any purchased credit deteriorated
("PCD") loans and $6.2 million of
specific reserves on resolved PCD loans was released to the general
reserve.
Net charge-offs were $4.8 million
for the year ended December 31, 2022 compared with
$29.7 million for the year ended
December 31, 2021. Net charge-offs for the year ended
December 31, 2022 did not include any PCD loans and
$8.2 million of specific reserves on
resolved PCD loans was released to the general reserve during the
period.
Dividend
Prosperity Bancshares declared a first quarter 2023 cash
dividend of $0.55 per share to be
paid on April 3, 2023, to all
shareholders of record as of March 15,
2023.
Stock Repurchase Program
On January 17, 2023, Prosperity
Bancshares announced a stock repurchase program under which up to
5%, or approximately 4.6 million shares, of its outstanding common
stock may be acquired over a one-year period expiring on
January 17, 2024, 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 December 31, 2022
and 981,884 shares of its common stock at an average weighted price
of $66.90 per share during the year
ended December 31, 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
full-service 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
September 30, 2022, First Bancshares, on a consolidated basis,
reported total assets of $2.203
billion, total loans of $1.631
billion and total deposits of $1.842
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 half 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 September
30, 2022, Lone Star, on a
consolidated basis, reported total assets of $1.387 billion, total loans of $940.5 million and total deposits of $1.249 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 half of 2023, although delays could
occur.
Conference Call
Prosperity's management team will host a conference call on
Wednesday, January 25, 2023, at
11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's
fourth 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 6262776.
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 December 31, 2022, Prosperity Bancshares,
Inc.® is a $37.690 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, including the proposed transactions with
First Bancshares and Lone Star,
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 has filed 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 includes a preliminary proxy
statement/prospectus. The definitive proxy statement/prospectus
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 has
filed 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 includes a preliminary proxy
statement/prospectus. The definitive proxy statement/prospectus
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, is included in the registration statement and proxy
statement/prospectus regarding the proposed transaction and other
relevant materials to be filed with the SEC when they become
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, is
included in the registration statement and proxy
statement/prospectus regarding the proposed transaction and other
relevant materials to be filed with the SEC when they become
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 $758 thousand, net of tax, primarily
comprised of loan discount accretion of $913 thousand for the three
months ended December 31, 2022.
|
(3)
|
Includes purchase
accounting adjustments of $4.2 million, net of tax, primarily
comprised of loan discount accretion of $5.4 million for the three
months ended December 31, 2021.
|
(4)
|
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.
|
(5)
|
Includes purchase
accounting adjustments of $6.0 million, net of tax, primarily
comprised of loan discount accretion of $7.4 million for the year
ended December 31, 2022.
|
(6)
|
Includes purchase
accounting adjustments of $31.5 million, net of tax, primarily
comprised of loan discount accretion of $39.3 million for the year
ended December 31, 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)
|
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
Balance Sheet Data
(at period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
554
|
|
|
$
|
2,871
|
|
|
$
|
3,350
|
|
|
$
|
2,810
|
|
|
$
|
7,274
|
|
Loans held for
investment
|
|
|
18,098,653
|
|
|
|
17,580,653
|
|
|
|
17,067,871
|
|
|
|
16,720,173
|
|
|
|
16,833,171
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
740,620
|
|
|
|
922,764
|
|
|
|
1,137,623
|
|
|
|
1,344,541
|
|
|
|
1,775,699
|
|
Total loans
|
|
|
18,839,827
|
|
|
|
18,506,288
|
|
|
|
18,208,844
|
|
|
|
18,067,524
|
|
|
|
18,616,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities(A)
|
|
|
14,476,005
|
|
|
|
14,806,487
|
|
|
|
14,912,313
|
|
|
|
14,798,127
|
|
|
|
12,818,901
|
|
Federal funds
sold
|
|
|
301
|
|
|
|
244
|
|
|
|
201
|
|
|
|
274
|
|
|
|
241
|
|
Allowance for credit
losses on loans
|
|
|
(281,576)
|
|
|
|
(282,179)
|
|
|
|
(283,959)
|
|
|
|
(285,163)
|
|
|
|
(286,380)
|
|
Cash and due from
banks
|
|
|
423,832
|
|
|
|
602,152
|
|
|
|
393,716
|
|
|
|
1,560,321
|
|
|
|
2,547,739
|
|
Goodwill
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
Core deposit
intangibles, net
|
|
|
51,348
|
|
|
|
53,906
|
|
|
|
56,483
|
|
|
|
59,064
|
|
|
|
61,684
|
|
Other real estate
owned
|
|
|
1,963
|
|
|
|
1,758
|
|
|
|
1,555
|
|
|
|
1,705
|
|
|
|
622
|
|
Fixed assets,
net
|
|
|
339,453
|
|
|
|
337,099
|
|
|
|
335,939
|
|
|
|
336,075
|
|
|
|
319,799
|
|
Other assets
|
|
|
607,040
|
|
|
|
586,111
|
|
|
|
530,528
|
|
|
|
501,623
|
|
|
|
523,584
|
|
Total
assets
|
|
$
|
37,689,829
|
|
|
$
|
37,843,502
|
|
|
$
|
37,387,256
|
|
|
$
|
38,271,186
|
|
|
$
|
37,833,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
10,915,448
|
|
|
$
|
11,154,143
|
|
|
$
|
11,032,184
|
|
|
$
|
10,776,652
|
|
|
$
|
10,750,034
|
|
Interest-bearing
deposits
|
|
|
17,618,083
|
|
|
|
18,145,952
|
|
|
|
18,833,434
|
|
|
|
20,291,658
|
|
|
|
20,021,728
|
|
Total
deposits
|
|
|
28,533,531
|
|
|
|
29,300,095
|
|
|
|
29,865,618
|
|
|
|
31,068,310
|
|
|
|
30,771,762
|
|
Other
borrowings
|
|
|
1,850,000
|
|
|
|
1,165,000
|
|
|
|
300,000
|
|
|
|
—
|
|
|
|
—
|
|
Securities sold under
repurchase agreements
|
|
|
428,134
|
|
|
|
454,304
|
|
|
|
481,785
|
|
|
|
440,891
|
|
|
|
448,099
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
Other
liabilities
|
|
|
148,843
|
|
|
|
282,514
|
|
|
|
188,079
|
|
|
|
227,614
|
|
|
|
156,926
|
|
Total
liabilities
|
|
|
30,990,455
|
|
|
|
31,231,860
|
|
|
|
30,865,429
|
|
|
|
31,766,762
|
|
|
|
31,406,734
|
|
Shareholders'
equity(B)
|
|
|
6,699,374
|
|
|
|
6,611,642
|
|
|
|
6,521,827
|
|
|
|
6,504,424
|
|
|
|
6,427,236
|
|
Total liabilities and
equity
|
|
$
|
37,689,829
|
|
|
$
|
37,843,502
|
|
|
$
|
37,387,256
|
|
|
$
|
38,271,186
|
|
|
$
|
37,833,970
|
|
|
|
(A)
|
Includes $(4,396), $(296), $1,517, $2,115 and $2,290
in unrealized (losses) gains on available for sale securities for
the quarterly periods ended December 31, 2022, September 30, 2022,
June 30, 2022, March 31, 2022 and December 31, 2021,
respectively.
|
(B)
|
Includes $(3,473), $(234), $1,198 $1,671 and $1,809
in after-tax unrealized (losses) gains on available for sale
securities for the quarterly periods ended December 31, 2022,
September 30, 2022, June 30, 2022, March 31, 2022 and December 31,
2021, respectively.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(In
thousands)
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
|
Dec 31,
2022
|
|
|
Dec 31,
2021
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
235,126
|
|
|
$
|
210,268
|
|
|
$
|
192,770
|
|
|
$
|
193,025
|
|
|
$
|
206,209
|
|
|
$
|
831,189
|
|
|
$
|
869,908
|
|
Securities(C)
|
|
|
72,533
|
|
|
|
68,761
|
|
|
|
64,111
|
|
|
|
55,011
|
|
|
|
46,857
|
|
|
|
260,416
|
|
|
|
175,459
|
|
Federal funds sold and
other earning
assets
|
|
|
933
|
|
|
|
525
|
|
|
|
925
|
|
|
|
847
|
|
|
|
563
|
|
|
|
3,230
|
|
|
|
1,556
|
|
Total interest
income
|
|
|
308,592
|
|
|
|
279,554
|
|
|
|
257,806
|
|
|
|
248,883
|
|
|
|
253,629
|
|
|
|
1,094,835
|
|
|
|
1,046,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
36,048
|
|
|
|
14,669
|
|
|
|
8,641
|
|
|
|
8,754
|
|
|
|
8,685
|
|
|
|
68,112
|
|
|
|
52,913
|
|
Other
borrowings
|
|
|
14,682
|
|
|
|
3,719
|
|
|
|
450
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,851
|
|
|
|
—
|
|
Securities sold under
repurchase agreements
|
|
|
1,725
|
|
|
|
487
|
|
|
|
244
|
|
|
|
185
|
|
|
|
184
|
|
|
|
2,641
|
|
|
|
702
|
|
Total interest
expense
|
|
|
52,455
|
|
|
|
18,875
|
|
|
|
9,335
|
|
|
|
8,939
|
|
|
|
8,869
|
|
|
|
89,604
|
|
|
|
53,615
|
|
Net interest
income
|
|
|
256,137
|
|
|
|
260,679
|
|
|
|
248,471
|
|
|
|
239,944
|
|
|
|
244,760
|
|
|
|
1,005,231
|
|
|
|
993,308
|
|
Provision for credit
losses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net interest income
after provision for credit losses
|
|
|
256,137
|
|
|
|
260,679
|
|
|
|
248,471
|
|
|
|
239,944
|
|
|
|
244,760
|
|
|
|
1,005,231
|
|
|
|
993,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds
(NSF) fees
|
|
|
8,519
|
|
|
|
8,887
|
|
|
|
8,484
|
|
|
|
8,124
|
|
|
|
8,401
|
|
|
|
34,014
|
|
|
|
29,610
|
|
Credit card, debit
card and ATM card income
|
|
|
8,816
|
|
|
|
8,889
|
|
|
|
8,880
|
|
|
|
8,179
|
|
|
|
8,894
|
|
|
|
34,764
|
|
|
|
34,680
|
|
Service charges on
deposit accounts
|
|
|
5,932
|
|
|
|
6,222
|
|
|
|
6,365
|
|
|
|
6,211
|
|
|
|
6,237
|
|
|
|
24,730
|
|
|
|
24,392
|
|
Trust
income
|
|
|
3,498
|
|
|
|
3,174
|
|
|
|
2,875
|
|
|
|
2,703
|
|
|
|
2,698
|
|
|
|
12,250
|
|
|
|
10,278
|
|
Mortgage
income
|
|
|
102
|
|
|
|
340
|
|
|
|
502
|
|
|
|
455
|
|
|
|
685
|
|
|
|
1,399
|
|
|
|
8,302
|
|
Brokerage
income
|
|
|
905
|
|
|
|
940
|
|
|
|
917
|
|
|
|
892
|
|
|
|
953
|
|
|
|
3,654
|
|
|
|
3,320
|
|
Bank owned life
insurance income
|
|
|
1,329
|
|
|
|
1,214
|
|
|
|
1,293
|
|
|
|
1,283
|
|
|
|
1,317
|
|
|
|
5,119
|
|
|
|
5,228
|
|
Net gain (loss) on
sale or write-down of assets
|
|
|
2,087
|
|
|
|
50
|
|
|
|
1,108
|
|
|
|
689
|
|
|
|
1,165
|
|
|
|
3,934
|
|
|
|
1,097
|
|
Other noninterest
income
|
|
|
6,536
|
|
|
|
4,972
|
|
|
|
7,170
|
|
|
|
6,586
|
|
|
|
5,407
|
|
|
|
25,264
|
|
|
|
23,059
|
|
Total noninterest
income
|
|
|
37,724
|
|
|
|
34,688
|
|
|
|
37,594
|
|
|
|
35,122
|
|
|
|
35,757
|
|
|
|
145,128
|
|
|
|
139,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
75,353
|
|
|
|
79,578
|
|
|
|
80,371
|
|
|
|
79,411
|
|
|
|
76,496
|
|
|
|
314,713
|
|
|
|
310,556
|
|
Net occupancy and
equipment
|
|
|
8,147
|
|
|
|
8,412
|
|
|
|
8,039
|
|
|
|
7,848
|
|
|
|
8,140
|
|
|
|
32,446
|
|
|
|
32,184
|
|
Credit and debit card,
data processing and software amortization
|
|
|
9,716
|
|
|
|
9,516
|
|
|
|
9,246
|
|
|
|
8,849
|
|
|
|
9,050
|
|
|
|
37,327
|
|
|
|
35,104
|
|
Regulatory assessments
and FDIC insurance
|
|
|
2,873
|
|
|
|
2,807
|
|
|
|
2,851
|
|
|
|
2,850
|
|
|
|
2,801
|
|
|
|
11,381
|
|
|
|
10,638
|
|
Core deposit
intangibles amortization
|
|
|
2,558
|
|
|
|
2,577
|
|
|
|
2,581
|
|
|
|
2,620
|
|
|
|
2,855
|
|
|
|
10,336
|
|
|
|
11,551
|
|
Depreciation
|
|
|
4,438
|
|
|
|
4,436
|
|
|
|
4,539
|
|
|
|
4,547
|
|
|
|
4,518
|
|
|
|
17,960
|
|
|
|
18,095
|
|
Communications
|
|
|
3,506
|
|
|
|
3,374
|
|
|
|
3,206
|
|
|
|
2,919
|
|
|
|
3,134
|
|
|
|
13,005
|
|
|
|
12,028
|
|
Other real estate
expense
|
|
|
154
|
|
|
|
198
|
|
|
|
195
|
|
|
|
214
|
|
|
|
24
|
|
|
|
761
|
|
|
|
496
|
|
Net loss (gain) on
sale or write-down of other real estate
|
|
|
(63)
|
|
|
|
(213)
|
|
|
|
14
|
|
|
|
(621)
|
|
|
|
2
|
|
|
|
(883)
|
|
|
|
(2,720)
|
|
Merger related
expenses
|
|
|
272
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
272
|
|
|
|
—
|
|
Other noninterest
expense
|
|
|
12,290
|
|
|
|
11,529
|
|
|
|
11,836
|
|
|
|
11,213
|
|
|
|
12,518
|
|
|
|
46,868
|
|
|
|
45,688
|
|
Total noninterest
expense
|
|
|
119,244
|
|
|
|
122,214
|
|
|
|
122,878
|
|
|
|
119,850
|
|
|
|
119,538
|
|
|
|
484,186
|
|
|
|
473,620
|
|
Income before income
taxes
|
|
|
174,617
|
|
|
|
173,153
|
|
|
|
163,187
|
|
|
|
155,216
|
|
|
|
160,979
|
|
|
|
666,173
|
|
|
|
659,654
|
|
Provision for income
taxes
|
|
|
36,737
|
|
|
|
37,333
|
|
|
|
34,697
|
|
|
|
32,890
|
|
|
|
34,192
|
|
|
|
141,657
|
|
|
|
140,357
|
|
Net income available to
common shareholders
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
122,326
|
|
|
$
|
126,787
|
|
|
$
|
524,516
|
|
|
$
|
519,297
|
|
|
|
(C)
|
Interest income on securities was reduced by net
premium amortization of $8,703, $9,947, $11,450, $12,857 and
$16,006 for the three months ended December 31, 2022, September 30,
2022, June 30, 2022, March 31, 2022 and December 31, 2021,
respectively, and $42,957 and $58,427 for the years ended December
31, 2022 and December 31, 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
|
|
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
|
Dec 31,
2022
|
|
|
Dec 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(D) (E)
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
122,326
|
|
|
$
|
126,787
|
|
|
$
|
524,516
|
|
|
$
|
519,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.51
|
|
|
$
|
1.49
|
|
|
$
|
1.40
|
|
|
$
|
1.33
|
|
|
$
|
1.38
|
|
|
$
|
5.73
|
|
|
$
|
5.60
|
|
|
Diluted earnings per
share
|
|
$
|
1.51
|
|
|
$
|
1.49
|
|
|
$
|
1.40
|
|
|
$
|
1.33
|
|
|
$
|
1.38
|
|
|
$
|
5.73
|
|
|
$
|
5.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (F)
|
|
|
1.47
|
%
|
|
|
1.45
|
%
|
|
|
1.36
|
%
|
|
|
1.29
|
%
|
|
|
1.37
|
%
|
|
|
1.39
|
%
|
|
|
1.44
|
%
|
|
Return on average
common equity (F)
|
|
|
8.26
|
%
|
|
|
8.24
|
%
|
|
|
7.84
|
%
|
|
|
7.54
|
%
|
|
|
7.91
|
%
|
|
|
7.97
|
%
|
|
|
8.21
|
%
|
|
Return on average
tangible common equity (F) (G)
|
|
|
16.26
|
%
|
|
|
16.44
|
%
|
|
|
15.73
|
%
|
|
|
15.30
|
%
|
|
|
16.26
|
%
|
|
|
15.94
|
%
|
|
|
17.18
|
%
|
|
Tax equivalent net
interest margin (D) (E) (H)
|
|
|
3.05
|
%
|
|
|
3.11
|
%
|
|
|
2.97
|
%
|
|
|
2.88
|
%
|
|
|
2.97
|
%
|
|
|
3.00
|
%
|
|
|
3.14
|
%
|
|
Efficiency ratio
(G) (I)
|
|
|
40.87
|
%
|
|
|
41.38
|
%
|
|
|
43.12
|
%
|
|
|
43.68
|
%
|
|
|
42.79
|
%
|
|
|
42.23
|
%
|
|
|
41.83
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
|
17.78
|
%
|
|
|
17.47
|
%
|
|
|
17.44
|
%
|
|
|
17.00
|
%
|
|
|
16.99
|
%
|
|
|
17.78
|
%
|
|
|
16.99
|
%
|
|
Common equity tier 1
capital
|
|
|
15.88
|
%
|
(J)
|
|
15.44
|
%
|
(J)
|
|
15.26
|
%
|
(J)
|
|
15.32
|
%
|
(J)
|
|
15.10
|
%
|
|
|
15.88
|
%
|
(J)
|
|
15.10
|
%
|
|
Tier 1 risk-based
capital
|
|
|
15.88
|
%
|
(J)
|
|
15.44
|
%
|
(J)
|
|
15.26
|
%
|
(J)
|
|
15.32
|
%
|
(J)
|
|
15.10
|
%
|
|
|
15.88
|
%
|
(J)
|
|
15.10
|
%
|
|
Total risk-based
capital
|
|
|
16.51
|
%
|
(J)
|
|
16.09
|
%
|
(J)
|
|
15.91
|
%
|
(J)
|
|
15.99
|
%
|
(J)
|
|
15.45
|
%
|
|
|
16.51
|
%
|
(J)
|
|
15.45
|
%
|
|
Tier 1 leverage
capital
|
|
|
10.16
|
%
|
(J)
|
|
9.94
|
%
|
(J)
|
|
9.58
|
%
|
(J)
|
|
9.44
|
%
|
(J)
|
|
9.62
|
%
|
|
|
10.16
|
%
|
(J)
|
|
9.62
|
%
|
|
Period end tangible
equity to period end tangible assets (G)
|
|
|
9.93
|
%
|
|
|
9.62
|
%
|
|
|
9.48
|
%
|
|
|
9.19
|
%
|
|
|
9.07
|
%
|
|
|
9.93
|
%
|
|
|
9.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in computing earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
91,287
|
|
|
|
91,209
|
|
|
|
91,772
|
|
|
|
92,161
|
|
|
|
92,162
|
|
|
|
91,604
|
|
|
|
92,657
|
|
|
Diluted
|
|
|
91,287
|
|
|
|
91,209
|
|
|
|
91,772
|
|
|
|
92,161
|
|
|
|
92,162
|
|
|
|
91,604
|
|
|
|
92,657
|
|
|
Period end shares
outstanding
|
|
|
91,314
|
|
|
|
91,210
|
|
|
|
91,196
|
|
|
|
92,160
|
|
|
|
92,170
|
|
|
|
91,314
|
|
|
|
92,170
|
|
|
Cash dividends paid per
common share
|
|
$
|
0.55
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
2.11
|
|
|
$
|
1.99
|
|
|
Book value per common
share
|
|
$
|
73.37
|
|
|
$
|
72.49
|
|
|
$
|
71.51
|
|
|
$
|
70.58
|
|
|
$
|
69.73
|
|
|
$
|
73.37
|
|
|
$
|
69.73
|
|
|
Tangible book value per
common share (G)
|
|
$
|
37.41
|
|
|
$
|
36.47
|
|
|
$
|
35.46
|
|
|
$
|
34.87
|
|
|
$
|
34.00
|
|
|
$
|
37.41
|
|
|
$
|
34.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
76.32
|
|
|
$
|
77.93
|
|
|
$
|
73.50
|
|
|
$
|
80.46
|
|
|
$
|
78.67
|
|
|
$
|
80.46
|
|
|
$
|
83.02
|
|
|
Low
|
|
$
|
66.71
|
|
|
$
|
65.37
|
|
|
$
|
64.69
|
|
|
$
|
69.08
|
|
|
$
|
68.53
|
|
|
$
|
64.69
|
|
|
$
|
64.40
|
|
|
Period end closing
price
|
|
$
|
72.68
|
|
|
$
|
66.68
|
|
|
$
|
68.27
|
|
|
$
|
69.38
|
|
|
$
|
72.35
|
|
|
$
|
72.68
|
|
|
$
|
72.35
|
|
|
Employees – FTE
(excluding overtime)
|
|
|
3,633
|
|
|
|
3,592
|
|
|
|
3,576
|
|
|
|
3,595
|
|
|
|
3,704
|
|
|
|
3,633
|
|
|
|
3,704
|
|
|
Number of banking
centers
|
|
|
272
|
|
|
|
272
|
|
|
|
272
|
|
|
|
272
|
|
|
|
273
|
|
|
|
272
|
|
|
|
273
|
|
|
|
(D) Includes purchase accounting adjustments for the
periods presented as follows:
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Dec
31,
2022
|
|
Sep
30,
2022
|
|
Jun
30,
2022
|
|
Mar
31,
2022
|
|
Dec
31,
2021
|
|
Dec
31,
2022
|
|
Dec
31,
2021
|
Loan discount
accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASC
310-20
|
$603
|
|
$912
|
|
$(265)
|
|
$4,674
|
|
$4,635
|
|
$5,924
|
|
$31,440
|
ASC
310-30
|
$310
|
|
$322
|
|
$324
|
|
$521
|
|
$731
|
|
$1,477
|
|
$7,838
|
Securities net
amortization
|
$12
|
|
$40
|
|
$12
|
|
$52
|
|
$139
|
|
$116
|
|
$557
|
Time deposits
amortization
|
$59
|
|
$68
|
|
$84
|
|
$100
|
|
$127
|
|
$311
|
|
$1,162
|
|
|
(E)
|
Using effective tax rate of 21.0%, 21.6%, 21.3%,
21.2% and 21.2% for the three months ended December 31, 2022,
September 30, 2022, June 30, 2022, March 31, 2022 and December 31,
2021, respectively, and 21.3% for the years ended December 31, 2022
and December 31, 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
|
|
|
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Dec 31,
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
|
|
$
|
1,758
|
|
|
$
|
27
|
|
|
6.09 %
|
|
$
|
4,136
|
|
|
$
|
57
|
|
|
5.47 %
|
|
$
|
8,794
|
|
|
$
|
71
|
|
|
3.20 %
|
|
|
Loans held for
investment
|
|
|
17,818,769
|
|
|
|
223,768
|
|
|
4.98 %
|
|
|
17,275,866
|
|
|
|
199,417
|
|
|
4.58 %
|
|
|
16,830,163
|
|
|
|
192,200
|
|
|
4.53 %
|
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
747,007
|
|
|
|
11,331
|
|
|
6.02 %
|
|
|
938,589
|
|
|
|
10,794
|
|
|
4.56 %
|
|
|
1,772,971
|
|
|
|
13,938
|
|
|
3.12 %
|
|
|
Total Loans
|
|
|
18,567,534
|
|
|
|
235,126
|
|
|
5.02 %
|
|
|
18,218,591
|
|
|
|
210,268
|
|
|
4.58 %
|
|
|
18,611,928
|
|
|
|
206,209
|
|
|
4.40 %
|
|
|
Investment
securities
|
|
|
14,715,516
|
|
|
|
72,533
|
|
|
1.96 %
|
(L)
|
|
14,962,847
|
|
|
|
68,761
|
|
|
1.82 %
|
(L)
|
|
12,751,857
|
|
|
|
46,857
|
|
|
1.46 %
|
|
(L)
|
Federal funds sold and
other earning assets
|
|
|
101,986
|
|
|
|
933
|
|
|
3.63 %
|
|
|
87,859
|
|
|
|
525
|
|
|
2.37 %
|
|
|
1,393,859
|
|
|
|
563
|
|
|
0.16 %
|
|
|
Total interest-earning
assets
|
|
|
33,385,036
|
|
|
|
308,592
|
|
|
3.67 %
|
|
|
33,269,297
|
|
|
|
279,554
|
|
|
3.33 %
|
|
|
32,757,644
|
|
|
|
253,629
|
|
|
3.07 %
|
|
|
Allowance for credit
losses on loans
|
|
|
(282,546)
|
|
|
|
|
|
|
|
|
(283,244)
|
|
|
|
|
|
|
|
|
(287,191)
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,515,412
|
|
|
|
|
|
|
|
|
4,480,512
|
|
|
|
|
|
|
|
|
4,476,582
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
37,617,902
|
|
|
|
|
|
|
|
$
|
37,466,565
|
|
|
|
|
|
|
|
$
|
36,947,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
5,843,672
|
|
|
$
|
3,224
|
|
|
0.22 %
|
|
$
|
6,155,511
|
|
|
$
|
2,345
|
|
|
0.15 %
|
|
$
|
6,196,283
|
|
|
$
|
2,187
|
|
|
0.14 %
|
|
|
Savings and money
market deposits
|
|
|
9,805,024
|
|
|
|
27,929
|
|
|
1.13 %
|
|
|
10,172,986
|
|
|
|
9,479
|
|
|
0.37 %
|
|
|
10,286,650
|
|
|
|
3,817
|
|
|
0.15 %
|
|
|
Certificates and other
time deposits
|
|
|
2,066,085
|
|
|
|
4,895
|
|
|
0.94 %
|
|
|
2,185,529
|
|
|
|
2,845
|
|
|
0.52 %
|
|
|
2,766,123
|
|
|
|
2,681
|
|
|
0.38 %
|
|
|
Other
borrowings
|
|
|
1,465,533
|
|
|
|
14,682
|
|
|
3.97 %
|
|
|
577,828
|
|
|
|
3,719
|
|
|
2.55 %
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Securities sold under
repurchase agreements
|
|
|
441,405
|
|
|
|
1,725
|
|
|
1.55 %
|
|
|
473,584
|
|
|
|
487
|
|
|
0.41 %
|
|
|
432,981
|
|
|
|
184
|
|
|
0.17 %
|
|
|
Total interest-bearing
liabilities
|
|
|
19,621,719
|
|
|
|
52,455
|
|
|
1.06 %
|
(M)
|
|
19,565,438
|
|
|
|
18,875
|
|
|
0.38 %
|
(M)
|
|
19,682,037
|
|
|
|
8,869
|
|
|
0.18 %
|
|
(M)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
11,064,714
|
|
|
|
|
|
|
|
|
11,048,856
|
|
|
|
|
|
|
|
|
10,587,441
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
29,947
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
224,512
|
|
|
|
|
|
|
|
|
231,812
|
|
|
|
|
|
|
|
|
234,746
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
30,940,892
|
|
|
|
|
|
|
|
|
30,876,053
|
|
|
|
|
|
|
|
|
30,534,171
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
6,677,010
|
|
|
|
|
|
|
|
|
6,590,512
|
|
|
|
|
|
|
|
|
6,412,864
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
37,617,902
|
|
|
|
|
|
|
|
$
|
37,466,565
|
|
|
|
|
|
|
|
$
|
36,947,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin
|
|
|
|
|
$
|
256,137
|
|
|
3.04 %
|
|
|
|
|
$
|
260,679
|
|
|
3.11 %
|
|
|
|
|
$
|
244,760
|
|
|
2.96 %
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
440
|
|
|
|
|
|
|
|
|
458
|
|
|
|
|
|
|
|
|
457
|
|
|
|
|
|
Net interest income and
margin
(tax equivalent basis)
|
|
|
|
|
$
|
256,577
|
|
|
3.05 %
|
|
|
|
|
$
|
261,137
|
|
|
3.11 %
|
|
|
|
|
$
|
245,217
|
|
|
2.97 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(K)
|
Annualized and based on an actual 365-day
basis.
|
(L)
|
Yield on securities was impacted by net premium
amortization of $8,703, $9,947 and $16,006 for the three months
ended December 31, 2022, September 30 and December 31, 2021,
respectively.
|
(M)
|
Total cost of funds, including noninterest bearing
deposits, was 0.68%, 0.24% and 0.12% for the three months ended
December 31, 2022, September 30, 2022 and December 31, 2021,
respectively.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
YIELD
ANALYSIS
|
|
Year-to-Date
|
|
|
|
|
Dec 31,
2022
|
|
Dec 31,
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
|
|
$
|
3,420
|
|
|
$
|
164
|
|
|
4.80 %
|
|
$
|
16,807
|
|
|
$
|
510
|
|
|
3.03 %
|
|
|
Loans held for
investment
|
|
|
17,155,082
|
|
|
|
788,504
|
|
|
4.60 %
|
|
|
17,128,069
|
|
|
|
806,012
|
|
|
4.71 %
|
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
1,051,237
|
|
|
|
42,521
|
|
|
4.04 %
|
|
|
1,988,724
|
|
|
|
63,386
|
|
|
3.19 %
|
|
|
Total loans
|
|
|
18,209,739
|
|
|
|
831,189
|
|
|
4.56 %
|
|
|
19,133,600
|
|
|
|
869,908
|
|
|
4.55 %
|
|
|
Investment
securities
|
|
|
14,613,799
|
|
|
|
260,416
|
|
|
1.78 %
|
(O)
|
|
11,328,903
|
|
|
|
175,459
|
|
|
1.55 %
|
|
(O)
|
Federal funds sold and
other earning assets
|
|
|
709,270
|
|
|
|
3,230
|
|
|
0.46 %
|
|
|
1,212,698
|
|
|
|
1,556
|
|
|
0.13 %
|
|
|
Total interest-earning
assets
|
|
|
33,532,808
|
|
|
|
1,094,835
|
|
|
3.26 %
|
|
|
31,675,201
|
|
|
|
1,046,923
|
|
|
3.31 %
|
|
|
Allowance for credit
losses on loans
|
|
|
(283,997)
|
|
|
|
|
|
|
|
|
(302,381)
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,475,434
|
|
|
|
|
|
|
|
|
4,602,458
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
37,724,245
|
|
|
|
|
|
|
|
$
|
35,975,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
6,299,924
|
|
|
$
|
10,175
|
|
|
0.16 %
|
|
$
|
6,169,864
|
|
|
$
|
17,215
|
|
|
0.28 %
|
|
|
Savings and money
market deposits
|
|
|
10,384,178
|
|
|
|
45,907
|
|
|
0.44 %
|
|
|
9,883,549
|
|
|
|
19,582
|
|
|
0.20 %
|
|
|
Certificates and other
time deposits
|
|
|
2,322,754
|
|
|
|
12,030
|
|
|
0.52 %
|
|
|
2,917,976
|
|
|
|
16,116
|
|
|
0.55 %
|
|
|
Other
borrowings
|
|
|
543,107
|
|
|
|
18,851
|
|
|
3.47 %
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Securities sold under
repurchase agreements
|
|
|
457,553
|
|
|
|
2,641
|
|
|
0.58 %
|
|
|
410,747
|
|
|
|
702
|
|
|
0.17 %
|
|
|
Total interest-bearing
liabilities
|
|
|
20,007,516
|
|
|
|
89,604
|
|
|
0.45 %
|
(P)
|
|
19,382,136
|
|
|
|
53,615
|
|
|
0.28 %
|
|
(P)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
10,903,539
|
|
|
|
|
|
|
|
|
10,036,519
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
29,947
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
204,574
|
|
|
|
|
|
|
|
|
204,522
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
31,145,576
|
|
|
|
|
|
|
|
|
29,653,124
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
6,578,669
|
|
|
|
|
|
|
|
|
6,322,154
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
|
37,724,245
|
|
|
|
|
|
|
|
$
|
35,975,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin
|
|
|
|
|
$
|
1,005,231
|
|
|
3.00 %
|
|
|
|
|
$
|
993,308
|
|
|
3.14 %
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
1,815
|
|
|
|
|
|
|
|
|
2,229
|
|
|
|
|
|
Net interest income and
margin (tax equivalent basis)
|
|
|
|
|
$
|
1,007,046
|
|
|
3.00 %
|
|
|
|
|
$
|
995,537
|
|
|
3.14 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(N)
|
Annualized and based on an actual 365-day
basis.
|
(O)
|
Yield on securities was impacted by net premium
amortization of $42,957 and $58,427 for the years ended December
31, 2022 and 2021, respectively.
|
(P)
|
Total cost of funds, including noninterest bearing
deposits, was 0.29% and 0.18% for the years ended December 31, 2022
and 2021, respectively.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
YIELD TREND
(Q)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
6.09
|
%
|
|
|
5.47
|
%
|
|
|
5.02
|
%
|
|
|
3.52
|
%
|
|
|
3.20
|
%
|
Loans held for
investment
|
|
4.98
|
%
|
|
|
4.58
|
%
|
|
|
4.35
|
%
|
|
|
4.44
|
%
|
|
|
4.53
|
%
|
Loans held for
investment - Warehouse Purchase Program
|
|
6.02
|
%
|
|
|
4.56
|
%
|
|
|
3.33
|
%
|
|
|
3.18
|
%
|
|
|
3.12
|
%
|
Total loans
|
|
5.02
|
%
|
|
|
4.58
|
%
|
|
|
4.28
|
%
|
|
|
4.35
|
%
|
|
|
4.40
|
%
|
Investment securities
(R)
|
|
1.96
|
%
|
|
|
1.82
|
%
|
|
|
1.72
|
%
|
|
|
1.62
|
%
|
|
|
1.46
|
%
|
Federal funds sold and
other earning assets
|
|
3.63
|
%
|
|
|
2.37
|
%
|
|
|
0.69
|
%
|
|
|
0.16
|
%
|
|
|
0.16
|
%
|
Total interest-earning
assets
|
|
3.67
|
%
|
|
|
3.33
|
%
|
|
|
3.08
|
%
|
|
|
2.98
|
%
|
|
|
3.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
0.22
|
%
|
|
|
0.15
|
%
|
|
|
0.13
|
%
|
|
|
0.15
|
%
|
|
|
0.14
|
%
|
Savings and money
market deposits
|
|
1.13
|
%
|
|
|
0.37
|
%
|
|
|
0.17
|
%
|
|
|
0.15
|
%
|
|
|
0.15
|
%
|
Certificates and other
time deposits
|
|
0.94
|
%
|
|
|
0.52
|
%
|
|
|
0.34
|
%
|
|
|
0.35
|
%
|
|
|
0.38
|
%
|
Other
borrowings
|
|
3.97
|
%
|
|
|
2.55
|
%
|
|
|
1.60
|
%
|
|
|
—
|
|
|
|
—
|
|
Securities sold under
repurchase agreements
|
|
1.55
|
%
|
|
|
0.41
|
%
|
|
|
0.21
|
%
|
|
|
0.17
|
%
|
|
|
0.17
|
%
|
Total interest-bearing
liabilities
|
|
1.06
|
%
|
|
|
0.38
|
%
|
|
|
0.19
|
%
|
|
|
0.17
|
%
|
|
|
0.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
|
3.04
|
%
|
|
|
3.11
|
%
|
|
|
2.97
|
%
|
|
|
2.87
|
%
|
|
|
2.96
|
%
|
Net Interest Margin
(tax equivalent)
|
|
3.05
|
%
|
|
|
3.11
|
%
|
|
|
2.97
|
%
|
|
|
2.88
|
%
|
|
|
2.97
|
%
|
|
|
(Q)
|
Annualized and based on average balances on an actual
365-day basis.
|
(R)
|
Yield on securities was impacted by net premium
amortization of $8,703, $9,947, $11,450, $12,857 and $16,006 for
the three months ended December 31, 2022, September 30, 2022, June
30, 2022, March 31, 2022 and December 31, 2021,
respectively.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
Three Months Ended
|
|
|
|
Dec 31, 2022
|
|
|
Sep 30, 2022
|
|
|
Jun 30, 2022
|
|
|
Mar 31, 2022
|
|
|
Dec 31, 2021
|
|
Balance Sheet Averages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
1,758
|
|
|
$
|
4,136
|
|
|
$
|
3,199
|
|
|
$
|
4,611
|
|
|
$
|
8,794
|
|
Loans held for
investment
|
|
|
17,818,769
|
|
|
|
17,275,866
|
|
|
|
16,799,609
|
|
|
|
16,712,690
|
|
|
|
16,830,163
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
747,007
|
|
|
|
938,589
|
|
|
|
1,257,521
|
|
|
|
1,268,715
|
|
|
|
1,772,971
|
|
Total Loans
|
|
|
18,567,534
|
|
|
|
18,218,591
|
|
|
|
18,060,329
|
|
|
|
17,986,016
|
|
|
|
18,611,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
|
14,715,516
|
|
|
|
14,962,847
|
|
|
|
14,989,666
|
|
|
|
13,772,974
|
|
|
|
12,751,857
|
|
Federal funds sold and
other earning assets
|
|
|
101,986
|
|
|
|
87,859
|
|
|
|
540,907
|
|
|
|
2,135,503
|
|
|
|
1,393,859
|
|
Total interest-earning
assets
|
|
|
33,385,036
|
|
|
|
33,269,297
|
|
|
|
33,590,902
|
|
|
|
33,894,493
|
|
|
|
32,757,644
|
|
Allowance for credit
losses on loans
|
|
|
(282,546)
|
|
|
|
(283,244)
|
|
|
|
(284,550)
|
|
|
|
(285,692)
|
|
|
|
(287,191)
|
|
Cash and due from
banks
|
|
|
306,235
|
|
|
|
302,479
|
|
|
|
309,223
|
|
|
|
326,552
|
|
|
|
329,406
|
|
Goodwill
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
Core deposit
intangibles, net
|
|
|
52,591
|
|
|
|
55,158
|
|
|
|
57,728
|
|
|
|
60,346
|
|
|
|
63,091
|
|
Other real
estate
|
|
|
2,075
|
|
|
|
1,652
|
|
|
|
1,639
|
|
|
|
1,893
|
|
|
|
321
|
|
Fixed assets,
net
|
|
|
338,572
|
|
|
|
336,657
|
|
|
|
336,242
|
|
|
|
327,297
|
|
|
|
321,524
|
|
Other assets
|
|
|
584,302
|
|
|
|
552,929
|
|
|
|
511,591
|
|
|
|
510,944
|
|
|
|
530,603
|
|
Total
assets
|
|
$
|
37,617,902
|
|
|
$
|
37,466,565
|
|
|
$
|
37,754,412
|
|
|
$
|
38,067,470
|
|
|
$
|
36,947,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
11,064,714
|
|
|
$
|
11,048,856
|
|
|
$
|
10,855,802
|
|
|
$
|
10,636,624
|
|
|
$
|
10,587,441
|
|
Interest-bearing demand
deposits
|
|
|
5,843,672
|
|
|
|
6,155,511
|
|
|
|
6,437,614
|
|
|
|
6,775,114
|
|
|
|
6,196,283
|
|
Savings and money
market deposits
|
|
|
9,805,024
|
|
|
|
10,172,986
|
|
|
|
10,702,273
|
|
|
|
10,870,461
|
|
|
|
10,286,650
|
|
Certificates and other
time deposits
|
|
|
2,066,085
|
|
|
|
2,185,529
|
|
|
|
2,409,663
|
|
|
|
2,637,529
|
|
|
|
2,766,123
|
|
Total
deposits
|
|
|
28,779,495
|
|
|
|
29,562,882
|
|
|
|
30,405,352
|
|
|
|
30,919,728
|
|
|
|
29,836,497
|
|
Other
borrowings
|
|
|
1,465,533
|
|
|
|
577,828
|
|
|
|
112,582
|
|
|
|
—
|
|
|
|
—
|
|
Securities sold under
repurchase agreements
|
|
|
441,405
|
|
|
|
473,584
|
|
|
|
463,108
|
|
|
|
452,054
|
|
|
|
432,981
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
Other
liabilities
|
|
|
224,512
|
|
|
|
231,812
|
|
|
|
186,344
|
|
|
|
176,360
|
|
|
|
234,746
|
|
Shareholders'
equity
|
|
|
6,677,010
|
|
|
|
6,590,512
|
|
|
|
6,557,079
|
|
|
|
6,489,381
|
|
|
|
6,412,864
|
|
Total liabilities and
equity
|
|
$
|
37,617,902
|
|
|
$
|
37,466,565
|
|
|
$
|
37,754,412
|
|
|
$
|
38,067,470
|
|
|
$
|
36,947,035
|
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
Dec 31, 2022
|
|
Sep 30, 2022
|
|
Jun 30, 2022
|
|
Mar 31, 2022
|
|
Dec 31, 2021
|
Period End Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
$2,159,057
|
11.5 %
|
|
$2,188,029
|
11.8 %
|
|
$2,155,727
|
11.8 %
|
|
$2,007,783
|
11.1 %
|
|
$2,050,631
|
11.0 %
|
Warehouse purchase
program
|
|
740,620
|
3.9 %
|
|
922,764
|
5.0 %
|
|
1,137,623
|
6.2 %
|
|
1,344,541
|
7.4 %
|
|
1,775,699
|
9.5 %
|
Construction, land
development and other land loans
|
|
2,805,438
|
14.9 %
|
|
2,659,552
|
14.4 %
|
|
2,460,526
|
13.5 %
|
|
2,327,837
|
12.9 %
|
|
2,299,715
|
12.4 %
|
1-4 family
residential
|
|
5,774,814
|
30.6 %
|
|
5,447,993
|
29.4 %
|
|
5,156,200
|
28.3 %
|
|
4,970,620
|
27.5 %
|
|
4,860,419
|
26.1 %
|
Home equity
|
|
966,410
|
5.1 %
|
|
943,197
|
5.1 %
|
|
932,725
|
5.1 %
|
|
870,130
|
4.8 %
|
|
808,289
|
4.4 %
|
Commercial real estate
(includes multi-family residential)
|
|
4,986,211
|
26.5 %
|
|
4,966,243
|
26.8 %
|
|
4,967,662
|
27.3 %
|
|
5,150,555
|
28.5 %
|
|
5,251,368
|
28.2 %
|
Agriculture (includes
farmland)
|
|
688,033
|
3.6 %
|
|
670,603
|
3.6 %
|
|
665,960
|
3.7 %
|
|
617,418
|
3.4 %
|
|
620,338
|
3.3 %
|
Consumer and
other
|
|
283,559
|
1.5 %
|
|
288,834
|
1.6 %
|
|
274,532
|
1.5 %
|
|
246,433
|
1.4 %
|
|
288,496
|
1.6 %
|
Energy
|
|
429,479
|
2.3 %
|
|
410,069
|
2.2 %
|
|
430,339
|
2.4 %
|
|
445,949
|
2.5 %
|
|
491,305
|
2.6 %
|
Paycheck Protection
Program
|
|
6,206
|
0.1 %
|
|
9,004
|
0.1 %
|
|
27,550
|
0.2 %
|
|
86,258
|
0.5 %
|
|
169,884
|
0.9 %
|
Total loans
|
|
$18,839,827
|
|
|
$18,506,288
|
|
|
$18,208,844
|
|
|
$18,067,524
|
|
|
$18,616,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
DDA
|
|
$10,915,448
|
38.2 %
|
|
$11,154,143
|
38.1 %
|
|
$11,032,184
|
36.9 %
|
|
$10,776,652
|
34.7 %
|
|
$10,750,034
|
34.9 %
|
Interest-bearing
DDA
|
|
5,986,203
|
21.0 %
|
|
6,027,157
|
20.6 %
|
|
6,331,314
|
21.2 %
|
|
6,603,934
|
21.2 %
|
|
6,741,092
|
21.9 %
|
Money market
|
|
6,164,025
|
21.6 %
|
|
6,438,787
|
22.0 %
|
|
6,646,726
|
22.3 %
|
|
7,603,329
|
24.5 %
|
|
7,178,904
|
23.3 %
|
Savings
|
|
3,471,970
|
12.2 %
|
|
3,563,776
|
12.1 %
|
|
3,597,820
|
12.0 %
|
|
3,543,300
|
11.4 %
|
|
3,401,727
|
11.1 %
|
Certificates and other
time deposits
|
|
1,995,885
|
7.0 %
|
|
2,116,232
|
7.2 %
|
|
2,257,574
|
7.6 %
|
|
2,541,095
|
8.2 %
|
|
2,700,005
|
8.8 %
|
Total
deposits
|
|
$28,533,531
|
|
|
$29,300,095
|
|
|
$29,865,618
|
|
|
$31,068,310
|
|
|
$30,771,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
|
66.0 %
|
|
|
63.2 %
|
|
|
61.0 %
|
|
|
58.2 %
|
|
|
60.5 %
|
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
Construction
Loans
|
|
|
Dec 31, 2022
|
|
|
Sep 30, 2022
|
|
|
Jun 30, 2022
|
|
|
Mar 31, 2022
|
|
|
Dec 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family
residential construction
|
|
$
|
1,097,176
|
|
|
39.1
|
%
|
|
$
|
1,004,000
|
|
|
37.8
|
%
|
|
$
|
911,443
|
|
|
37.0
|
%
|
|
$
|
816,072
|
|
|
35.0
|
%
|
|
$
|
728,393
|
|
|
31.7
|
%
|
Land
development
|
|
|
181,747
|
|
|
6.5
|
%
|
|
|
145,303
|
|
|
5.5
|
%
|
|
|
133,398
|
|
|
5.4
|
%
|
|
|
103,853
|
|
|
4.5
|
%
|
|
|
99,099
|
|
|
4.3
|
%
|
Raw land
|
|
|
332,603
|
|
|
11.9
|
%
|
|
|
343,066
|
|
|
12.9
|
%
|
|
|
316,750
|
|
|
12.9
|
%
|
|
|
310,987
|
|
|
13.4
|
%
|
|
|
322,673
|
|
|
14.0
|
%
|
Residential
lots
|
|
|
243,942
|
|
|
8.7
|
%
|
|
|
237,714
|
|
|
8.9
|
%
|
|
|
223,703
|
|
|
9.1
|
%
|
|
|
212,029
|
|
|
9.1
|
%
|
|
|
206,978
|
|
|
9.0
|
%
|
Commercial
lots
|
|
|
177,378
|
|
|
6.3
|
%
|
|
|
181,679
|
|
|
6.8
|
%
|
|
|
184,794
|
|
|
7.5
|
%
|
|
|
183,760
|
|
|
7.9
|
%
|
|
|
184,901
|
|
|
8.0
|
%
|
Commercial construction
and other
|
|
|
772,606
|
|
|
27.5
|
%
|
|
|
747,803
|
|
|
28.1
|
%
|
|
|
690,453
|
|
|
28.1
|
%
|
|
|
701,148
|
|
|
30.1
|
%
|
|
|
757,687
|
|
|
33.0
|
%
|
Net unaccreted
discount
|
|
|
(14)
|
|
|
|
|
|
(13)
|
|
|
|
|
|
(15)
|
|
|
|
|
|
(12)
|
|
|
|
|
|
(16)
|
|
|
|
Total construction
loans
|
|
$
|
2,805,438
|
|
|
|
|
$
|
2,659,552
|
|
|
|
|
$
|
2,460,526
|
|
|
|
|
$
|
2,327,837
|
|
|
|
|
$
|
2,299,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Owner Occupied
Commercial Real Estate Loans by Metropolitan Statistical Area (MSA)
as of December 31, 2022
|
|
|
Houston
|
|
|
Dallas
|
|
|
Austin
|
|
|
OK City
|
|
|
Tulsa
|
|
|
Other (S)
|
|
|
Total
|
|
|
Collateral Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopping
center/retail
|
$
|
404,150
|
|
|
$
|
242,437
|
|
|
$
|
49,492
|
|
|
$
|
18,421
|
|
|
$
|
20,660
|
|
|
$
|
279,922
|
|
|
$
|
1,015,082
|
|
|
Commercial and
industrial buildings
|
|
161,356
|
|
|
|
76,607
|
|
|
|
20,912
|
|
|
|
32,365
|
|
|
|
14,092
|
|
|
|
207,638
|
|
|
|
512,970
|
|
|
Office
buildings
|
|
90,430
|
|
|
|
258,544
|
|
|
|
32,174
|
|
|
|
68,116
|
|
|
|
4,289
|
|
|
|
65,188
|
|
|
|
518,741
|
|
|
Medical
buildings
|
|
76,168
|
|
|
|
18,964
|
|
|
|
3,795
|
|
|
|
26,252
|
|
|
|
37,882
|
|
|
|
55,653
|
|
|
|
218,714
|
|
|
Apartment
buildings
|
|
128,858
|
|
|
|
58,075
|
|
|
|
13,579
|
|
|
|
14,615
|
|
|
|
8,174
|
|
|
|
151,494
|
|
|
|
374,795
|
|
|
Hotel
|
|
108,718
|
|
|
|
68,012
|
|
|
|
34,065
|
|
|
|
28,058
|
|
|
|
—
|
|
|
|
129,254
|
|
|
|
368,107
|
|
|
Other
|
|
74,426
|
|
|
|
79,556
|
|
|
|
43,939
|
|
|
|
8,841
|
|
|
|
1,812
|
|
|
|
76,637
|
|
|
|
285,211
|
|
|
Total
|
$
|
1,044,106
|
|
|
$
|
802,195
|
|
|
$
|
197,956
|
|
|
$
|
196,668
|
|
|
$
|
86,909
|
|
|
$
|
965,786
|
|
|
$
|
3,293,620
|
|
(T)
|
Acquired
Loans
|
|
Non-PCD Loans
|
|
|
PCD Loans
|
|
|
Total Acquired Loans
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Sep 30,
2022
|
|
|
Balance at
Dec 31,
2022
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Sep 30,
2022
|
|
|
Balance at
Dec 31,
2022
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Sep 30,
2022
|
|
|
Balance at
Dec 31,
2022
|
|
Loan marks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(U)
|
$
|
345,599
|
|
|
$
|
2,836
|
|
|
$
|
2,233
|
|
|
$
|
320,052
|
|
|
$
|
3,671
|
|
|
$
|
3,361
|
|
|
$
|
665,651
|
|
|
$
|
6,507
|
|
|
$
|
5,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio loan
balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(U)
|
|
12,286,159
|
|
|
|
1,410,748
|
|
|
|
1,319,507
|
|
|
|
689,573
|
|
|
|
66,613
|
|
|
|
63,383
|
|
|
|
12,975,732
|
|
(V)
|
|
1,477,361
|
|
|
|
1,382,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio loan
balances less loan marks
|
$
|
11,940,560
|
|
|
$
|
1,407,912
|
|
|
$
|
1,317,274
|
|
|
$
|
369,521
|
|
|
$
|
62,942
|
|
|
$
|
60,022
|
|
|
$
|
12,310,081
|
|
|
$
|
1,470,854
|
|
|
$
|
1,377,296
|
|
|
|
(S)
|
Includes other MSA and non-MSA
regions.
|
(T)
|
Represents a portion of total commercial real estate
loans of $4.986 billion as of December 31,
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
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
|
Dec 31,
2022
|
|
|
Dec 31,
2021
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
|
19,614
|
|
|
$
|
17,729
|
|
|
$
|
20,619
|
|
|
$
|
21,765
|
|
|
$
|
26,269
|
|
|
$
|
19,614
|
|
|
$
|
26,269
|
|
Accruing loans 90 or
more days past due
|
|
5,917
|
|
|
|
378
|
|
|
|
13
|
|
|
|
3,695
|
|
|
|
887
|
|
|
|
5,917
|
|
|
|
887
|
|
Total nonperforming
loans
|
|
25,531
|
|
|
|
18,107
|
|
|
|
20,632
|
|
|
|
25,460
|
|
|
|
27,156
|
|
|
|
25,531
|
|
|
|
27,156
|
|
Repossessed
assets
|
|
—
|
|
|
|
13
|
|
|
|
—
|
|
|
|
19
|
|
|
|
310
|
|
|
|
—
|
|
|
|
310
|
|
Other real
estate
|
|
1,963
|
|
|
|
1,758
|
|
|
|
1,555
|
|
|
|
1,705
|
|
|
|
622
|
|
|
|
1,963
|
|
|
|
622
|
|
Total nonperforming
assets
|
$
|
27,494
|
|
|
$
|
19,878
|
|
|
$
|
22,187
|
|
|
$
|
27,184
|
|
|
$
|
28,088
|
|
|
$
|
27,494
|
|
|
$
|
28,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
3,921
|
|
|
$
|
2,376
|
|
|
$
|
2,964
|
|
|
$
|
4,403
|
|
|
$
|
6,150
|
|
|
$
|
3,921
|
|
|
$
|
6,150
|
|
Construction, land
development and other land loans
|
|
6,166
|
|
|
|
1,712
|
|
|
|
1,866
|
|
|
|
1,761
|
|
|
|
1,841
|
|
|
|
6,166
|
|
|
|
1,841
|
|
1-4 family residential
(includes home equity)
|
|
15,326
|
|
|
|
13,986
|
|
|
|
14,335
|
|
|
|
11,899
|
|
|
|
11,990
|
|
|
|
15,326
|
|
|
|
11,990
|
|
Commercial real estate
(includes multi-family residential)
|
|
1,649
|
|
|
|
1,364
|
|
|
|
2,448
|
|
|
|
7,685
|
|
|
|
7,276
|
|
|
|
1,649
|
|
|
|
7,276
|
|
Agriculture (includes
farmland)
|
|
421
|
|
|
|
434
|
|
|
|
567
|
|
|
|
1,402
|
|
|
|
816
|
|
|
|
421
|
|
|
|
816
|
|
Consumer and
other
|
|
11
|
|
|
|
6
|
|
|
|
7
|
|
|
|
34
|
|
|
|
15
|
|
|
|
11
|
|
|
|
15
|
|
Total
|
$
|
27,494
|
|
|
$
|
19,878
|
|
|
$
|
22,187
|
|
|
$
|
27,184
|
|
|
$
|
28,088
|
|
|
$
|
27,494
|
|
|
$
|
28,088
|
|
Number of
loans/properties
|
|
170
|
|
|
|
150
|
|
|
|
160
|
|
|
|
147
|
|
|
|
157
|
|
|
|
170
|
|
|
|
157
|
|
Allowance for credit
losses on loans
|
$
|
281,576
|
|
|
$
|
282,179
|
|
|
$
|
283,959
|
|
|
$
|
285,163
|
|
|
$
|
286,380
|
|
|
$
|
281,576
|
|
|
$
|
286,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
(643)
|
|
|
$
|
(15)
|
|
|
$
|
(197)
|
|
|
$
|
14
|
|
|
$
|
177
|
|
|
$
|
(841)
|
|
|
$
|
9,053
|
|
Construction, land
development and other land loans
|
|
(5)
|
|
|
|
(4)
|
|
|
|
(5)
|
|
|
|
430
|
|
|
|
(162)
|
|
|
|
416
|
|
|
|
(276)
|
|
1-4 family residential
(includes home equity)
|
|
(55)
|
|
|
|
(202)
|
|
|
|
(32)
|
|
|
|
87
|
|
|
|
(72)
|
|
|
|
(202)
|
|
|
|
35
|
|
Commercial real estate
(includes multi-family residential)
|
|
74
|
|
|
|
757
|
|
|
|
395
|
|
|
|
(366)
|
|
|
|
(10)
|
|
|
|
860
|
|
|
|
18,276
|
|
Agriculture (includes
farmland)
|
|
(14)
|
|
|
|
119
|
|
|
|
(9)
|
|
|
|
(103)
|
|
|
|
(102)
|
|
|
|
(7)
|
|
|
|
(141)
|
|
Consumer and
other
|
|
1,246
|
|
|
|
1,125
|
|
|
|
1,052
|
|
|
|
1,155
|
|
|
|
976
|
|
|
|
4,578
|
|
|
|
2,741
|
|
Total
|
$
|
603
|
|
|
$
|
1,780
|
|
|
$
|
1,204
|
|
|
$
|
1,217
|
|
|
$
|
807
|
|
|
$
|
4,804
|
|
|
$
|
29,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
average interest-earning assets
|
|
0.08
|
%
|
|
|
0.06
|
%
|
|
|
0.07
|
%
|
|
|
0.08
|
%
|
|
|
0.09
|
%
|
|
|
0.08
|
%
|
|
|
0.09
|
%
|
Nonperforming assets to
loans and other real estate
|
|
0.15
|
%
|
|
|
0.11
|
%
|
|
|
0.12
|
%
|
|
|
0.15
|
%
|
|
|
0.15
|
%
|
|
|
0.15
|
%
|
|
|
0.15
|
%
|
Net charge-offs to
average loans (annualized)
|
|
0.01
|
%
|
|
|
0.04
|
%
|
|
|
0.03
|
%
|
|
|
0.03
|
%
|
|
|
0.02
|
%
|
|
|
0.03
|
%
|
|
|
0.16
|
%
|
Allowance for credit
losses on loans to total loans
|
|
1.49
|
%
|
|
|
1.52
|
%
|
|
|
1.56
|
%
|
|
|
1.58
|
%
|
|
|
1.54
|
%
|
|
|
1.49
|
%
|
|
|
1.54
|
%
|
Allowance for credit
losses on loans to total loans, excluding Warehouse Purchase
Program loans and Paycheck Protection Program loans
(G)
|
|
1.56
|
%
|
|
|
1.61
|
%
|
|
|
1.67
|
%
|
|
|
1.71
|
%
|
|
|
1.72
|
%
|
|
|
1.56
|
%
|
|
|
1.72
|
%
|
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
|
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
Dec 31,
2021
|
|
|
Dec 31,
2022
|
|
|
Dec 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of return on average common equity to
return
on average tangible common equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
122,326
|
|
|
$
|
126,787
|
|
|
$
|
524,516
|
|
|
$
|
519,297
|
|
Average shareholders'
equity
|
|
$
|
6,677,010
|
|
|
$
|
6,590,512
|
|
|
$
|
6,557,079
|
|
|
$
|
6,489,381
|
|
|
$
|
6,412,864
|
|
|
$
|
6,578,669
|
|
|
$
|
6,322,154
|
|
Less: Average goodwill
and other intangible assets
|
|
|
(3,284,228)
|
|
|
|
(3,286,795)
|
|
|
|
(3,289,365)
|
|
|
|
(3,291,983)
|
|
|
|
(3,294,728)
|
|
|
|
(3,288,068)
|
|
|
|
(3,299,412)
|
|
Average tangible
shareholders' equity
|
|
$
|
3,392,782
|
|
|
$
|
3,303,717
|
|
|
$
|
3,267,714
|
|
|
$
|
3,197,398
|
|
|
$
|
3,118,136
|
|
|
$
|
3,290,601
|
|
|
$
|
3,022,742
|
|
Return on average
tangible common equity (F)
|
|
|
16.26
|
%
|
|
|
16.44
|
%
|
|
|
15.73
|
%
|
|
|
15.30
|
%
|
|
|
16.26
|
%
|
|
|
15.94
|
%
|
|
|
17.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of book value per share to tangible
book value per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
6,699,374
|
|
|
$
|
6,611,642
|
|
|
$
|
6,521,827
|
|
|
$
|
6,504,424
|
|
|
$
|
6,427,236
|
|
|
$
|
6,699,374
|
|
|
$
|
6,427,236
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,282,984)
|
|
|
|
(3,285,542)
|
|
|
|
(3,288,119)
|
|
|
|
(3,290,700)
|
|
|
|
(3,293,320)
|
|
|
|
(3,282,984)
|
|
|
|
(3,293,320)
|
|
Tangible shareholders'
equity
|
|
$
|
3,416,390
|
|
|
$
|
3,326,100
|
|
|
$
|
3,233,708
|
|
|
$
|
3,213,724
|
|
|
$
|
3,133,916
|
|
|
$
|
3,416,390
|
|
|
$
|
3,133,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
|
|
91,314
|
|
|
|
91,210
|
|
|
|
91,196
|
|
|
|
92,160
|
|
|
|
92,170
|
|
|
|
91,314
|
|
|
|
92,170
|
|
Tangible book value per
share
|
|
$
|
37.41
|
|
|
$
|
36.47
|
|
|
$
|
35.46
|
|
|
$
|
34.87
|
|
|
$
|
34.00
|
|
|
$
|
37.41
|
|
|
$
|
34.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of equity to assets ratio to period
end tangible equity to period end tangible assets
ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible shareholders'
equity
|
|
$
|
3,416,390
|
|
|
$
|
3,326,100
|
|
|
$
|
3,233,708
|
|
|
$
|
3,213,724
|
|
|
$
|
3,133,916
|
|
|
$
|
3,416,390
|
|
|
$
|
3,133,916
|
|
Total assets
|
|
$
|
37,689,829
|
|
|
$
|
37,843,502
|
|
|
$
|
37,387,256
|
|
|
$
|
38,271,186
|
|
|
$
|
37,833,970
|
|
|
$
|
37,689,829
|
|
|
$
|
37,833,970
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,282,984)
|
|
|
|
(3,285,542)
|
|
|
|
(3,288,119)
|
|
|
|
(3,290,700)
|
|
|
|
(3,293,320)
|
|
|
|
(3,282,984)
|
|
|
|
(3,293,320)
|
|
Tangible
assets
|
|
$
|
34,406,845
|
|
|
$
|
34,557,960
|
|
|
$
|
34,099,137
|
|
|
$
|
34,980,486
|
|
|
$
|
34,540,650
|
|
|
$
|
34,406,845
|
|
|
$
|
34,540,650
|
|
Period end tangible
equity to period end tangible assets ratio
|
|
|
9.93
|
%
|
|
|
9.62
|
%
|
|
|
9.48
|
%
|
|
|
9.19
|
%
|
|
|
9.07
|
%
|
|
|
9.93
|
%
|
|
|
9.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
281,576
|
|
|
$
|
282,179
|
|
|
$
|
283,959
|
|
|
$
|
285,163
|
|
|
$
|
286,380
|
|
|
$
|
281,576
|
|
|
$
|
286,380
|
|
Total loans
|
|
$
|
18,839,827
|
|
|
$
|
18,506,288
|
|
|
$
|
18,208,844
|
|
|
$
|
18,067,524
|
|
|
$
|
18,616,144
|
|
|
$
|
18,839,827
|
|
|
$
|
18,616,144
|
|
Less: Warehouse
Purchase Program loans
|
|
|
(740,620)
|
|
|
|
(922,764)
|
|
|
|
(1,137,623)
|
|
|
|
(1,344,541)
|
|
|
|
(1,775,699)
|
|
|
|
(740,620)
|
|
|
|
(1,775,699)
|
|
Less: Paycheck
Protection Program loans
|
|
|
(6,206)
|
|
|
|
(9,004)
|
|
|
|
(27,550)
|
|
|
|
(86,258)
|
|
|
|
(169,884)
|
|
|
|
(6,206)
|
|
|
|
(169,884)
|
|
Total loans less
Warehouse Purchase Program and Paycheck Protection Program
loans
|
|
$
|
18,093,001
|
|
|
$
|
17,574,520
|
|
|
$
|
17,043,671
|
|
|
$
|
16,636,725
|
|
|
$
|
16,670,561
|
|
|
$
|
18,093,001
|
|
|
$
|
16,670,561
|
|
Allowance for credit
losses on loans to total loans excluding Warehouse Purchase Program
and Paycheck Protection Program loans
|
|
|
1.56
|
%
|
|
|
1.61
|
%
|
|
|
1.67
|
%
|
|
|
1.71
|
%
|
|
|
1.72
|
%
|
|
|
1.56
|
%
|
|
|
1.72
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of efficiency ratio to efficiency
ratio excluding net gains and losses on the sale of assets and
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
119,244
|
|
|
$
|
122,214
|
|
|
$
|
122,878
|
|
|
$
|
119,850
|
|
|
$
|
119,538
|
|
|
$
|
484,186
|
|
|
$
|
473,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
256,137
|
|
|
$
|
260,679
|
|
|
$
|
248,471
|
|
|
$
|
239,944
|
|
|
$
|
244,760
|
|
|
$
|
1,005,231
|
|
|
$
|
993,308
|
|
Noninterest
income
|
|
|
37,724
|
|
|
|
34,688
|
|
|
|
37,594
|
|
|
|
35,122
|
|
|
|
35,757
|
|
|
|
145,128
|
|
|
|
139,966
|
|
Less: net gain (loss)
on sale or write down of assets
|
|
|
2,087
|
|
|
|
50
|
|
|
|
1,108
|
|
|
|
689
|
|
|
|
1,165
|
|
|
|
3,934
|
|
|
|
1,097
|
|
Noninterest income
excluding net gains and losses on the sale or write down of assets
and securities
|
|
|
35,637
|
|
|
|
34,638
|
|
|
|
36,486
|
|
|
|
34,433
|
|
|
|
34,592
|
|
|
|
141,194
|
|
|
|
138,869
|
|
Total income excluding
net gains and losses on the sale or write down of assets and
securities
|
|
$
|
291,774
|
|
|
$
|
295,317
|
|
|
$
|
284,957
|
|
|
$
|
274,377
|
|
|
$
|
279,352
|
|
|
$
|
1,146,425
|
|
|
$
|
1,132,177
|
|
Efficiency ratio,
excluding net gains and losses on the sale or write down of assets
and securities
|
|
|
40.87
|
%
|
|
|
41.38
|
%
|
|
|
43.12
|
%
|
|
|
43.68
|
%
|
|
|
42.79
|
%
|
|
|
42.23
|
%
|
|
|
41.83
|
%
|
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SOURCE Prosperity Bancshares, Inc.