HOUSTON, July 22, 2011 /PRNewswire/ -- Prosperity
Bancshares, Inc.® (NASDAQ: PRSP), the parent company of Prosperity
Bank®, reported net income for the quarter ended June 30, 2011 of $35.092
million or $0.75 per diluted
common share, an increase in net income of $3.346 million or 10.5%, compared with
$31.746 million or $0.68 per diluted common share for the same
period in 2010.
"I am very excited and proud to be able to announce such
positive results for the 2nd quarter of 2011, especially during the
challenging economic times our industry is facing. Last fall,
we embarked on a plan that challenged our associates to grow the
bank organically by increasing loans $1
billion dollars before the end of 2012. We are well on
our way to achieve this goal showing an annualized increase in
loans over the last two quarters of 10.3%. Our non-interest
bearing deposits continue to show solid growth, increasing over
$212 million or 13.4% compared to the
same quarter last year," commented David
Zalman, Chairman and Chief Executive Officer.
"Our tangible common equity to tangible asset ratio continues to
increase significantly, due entirely to the strong earnings we have
been able to produce, and now stands at 6.46% compared with 5.19%
in the same quarter last year," continued Zalman.
"Our past due loans and charge-offs continue to decline.
The majority of our customers appear to be more profitable
when compared to the last few years, although many express concerns
about our country's economic conditions and the current political
environment," continued Zalman.
"We owe all of our success to our team of associates and board
members who have helped grow the company in the right direction
with all of their hard work, insight and dedication and for that, I
say, thank you! We would also like to thank all of our
customers for their business and loyalty to our bank," concluded
Zalman.
Prosperity's management uses certain non-GAAP (generally
accepted accounting principles) financial measures to evaluate its
performance. Specifically, Prosperity reviews tangible book value
per share, return on average tangible common equity and the
tangible equity to tangible assets ratio. Prosperity has included
in this Earnings Release information relating to these non-GAAP
financial measures for the applicable periods presented.
Please refer to the "Notes to Selected Financial Data" at the
end of this Earnings Release for a reconciliation of these non-GAAP
financial measures.
Results of operations for the three months ended June 30, 2011
For the three months ended June 30,
2011, net income was $35.092
million compared with $31.746
million for the same period in 2010. Net income per
diluted common share was $0.75 for
the three months ended June 30, 2011
and $0.68 for the same period in
2010. Returns on average assets, average common equity and average
tangible common equity for the three months ended June 30, 2011 were 1.45%, 9.36% and 25.56%,
respectively. Prosperity's efficiency ratio (excluding net
gains and losses on the sale of securities and assets) was 43.58%
for the three months ended June 30,
2011.
Net interest income before provision for credit losses for the
quarter ended June 30, 2011 increased
3.8% to $83.630 million compared with
$80.600 million during the same
period in 2010. The increase was attributable primarily to a 2.4%
increase in average earning assets from $8.155 billion for the three months ended
June 30, 2010 to $8.352 billion for the three months ended
June 30, 2011. Additionally,
the average yield on interest earning assets decreased 30 basis
points while the rate paid on interest bearing liabilities
decreased 41 basis points for the same periods. The net interest
margin on a tax equivalent basis increased to 4.06% for the three
months ended June 30, 2011 compared
with 4.00% for the same period in 2010.
On a linked quarter basis, the tax equivalent net interest
margin increased four basis points to 4.06% for the three months
ended June 30, 2011 from 4.02%
reported for the three months ended March
31, 2011.
Non-interest income increased $234,000 or 1.8% to $13.530 million for the three months ended
June 30, 2011 compared with
$13.296 million during the same
period in 2010. Included in the June
30, 2011 total was a loss on sale of securities of
$581,000. The Company sold two
non-agency CMO's with a total book value of $3.199 million due to a down grade of the CMO's
to less than investment grade in the second quarter of 2011.
Following this sale, at June 30,
2011, the Company has nine investment grade non-agency CMO's
remaining with a total book value of $3.958
million.
Non-interest expense decreased $535,000 or 1.2% to $42.514 million for the three months ended
June 30, 2011 compared with
$43.049 million during the same
period in 2010. The decrease was attributable to a reduction
in other expenses, partially offset by an increase in salaries and
benefits expense. Overall general expenses were down due to
continued cost efficiencies implemented by the Company.
Average loans increased 6.7% or $227.129
million to $3.631 billion for
the quarter ended June 30, 2011
compared with $3.404 billion for the
same period of 2010. Linked quarter average loans increased
3.3% or $114.732 million from
$3.516 billion at March 31, 2011. Average deposits decreased 0.8%
or $59.882 million to $7.752 billion for the quarter ended June 30, 2011 compared with $7.812 billion for the same period of 2010.
Linked quarter average deposits increased 0.7% or
$54.097 million from $7.698 billion at March
31, 2011.
Loans at June 30, 2011 were
$3.665 billion, an increase of
$240.208 million or 7.0%, compared
with $3.425 billion at June 30, 2010 and an increase of $180.225 million or 5.2% (10.3% annualized)
compared with $3.485 billion at
December 31, 2010. Loans
increased 2.6% (10.3% annualized) or $92.328
million on a linked quarter basis compared with loans of
$3.573 billion at March 31, 2011.
Deposits at June 30, 2011 were
$7.668 billion, a decrease of
$146.237 million or 1.9%, compared
with $7.814 billion at June 30, 2010 and an increase of $212.772 million or 2.9% (5.7% annualized)
compared with $7.455 billion at
December 31, 2010. Linked
quarter deposits decreased $148.692
million or 1.9% from $7.816
billion at March 31, 2011.
At June 30, 2011, construction
loans totaled $483.581 million,
consisting of approximately $125
million of single family residential construction loans;
$46 million of land development
loans; $70 million of raw land loans;
$86 million of residential lot loans;
$54 million of commercial lot loans;
and $101 million of commercial
construction and other construction loans. This is a decrease
of $31.212 million from construction
loans at March 31, 2011.
The table below provides detail on loans acquired and deposits
assumed in the U.S. Bank and First Bank transactions completed in
the first and second quarters of 2010:
|
|
|
Balance Sheet Data (at period
end)
|
June 30,
2011
|
Mar 31,
2011
|
June 30,
2010
|
|
|
(In thousands)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
Acquired with U.S. Bank
branches
|
$
39,385
|
$
36,819
|
$
30,641
|
|
|
Acquired with First Bank
branches
|
64,413
|
60,308
|
88,039
|
|
|
All other
|
3,561,450
|
3,475,793
|
3,306,360
|
|
|
Total Loans
|
$
3,665,248
|
$
3,572,920
|
$
3,425,040
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Assumed with U.S. Bank
branches
|
$
265,093
|
$
273,769
|
$
350,890
|
|
|
Assumed with First Bank
branches
|
312,547
|
322,044
|
454,686
|
|
|
All other
|
7,090,052
|
7,220,571
|
7,008,353
|
|
|
Total Deposits
|
$
7,667,692
|
$
7,816,384
|
$
7,813,929
|
|
|
|
|
|
|
|
At June 30, 2011, Prosperity had
$9.657 billion in total assets,
$3.665 billion in loans and
$7.668 billion in deposits. Assets
and loans at June 30, 2011 increased
0.5% and 7.0%, respectively, compared with June 30, 2010 and deposits decreased 1.9%
compared with June 30, 2010.
Results of operations for the six months ended June 30, 2011
For the six months ended June 30,
2011, net income was $68.970
million compared with $62.744
million for the same period in 2010. Net income per
diluted common share was $1.47 for
the six months ended June 30, 2011
compared with $1.34 for the same
period in 2010. Returns on average assets, average common
equity and average tangible common equity for the six months ended
June 30, 2011 were 1.43%, 9.29% and
25.88%, respectively. Prosperity's efficiency ratio
(excluding net gains and losses on the sale of securities and
assets) was 43.94% for the six months ended June 30, 2011.
Net interest income before provision for credit losses for the
six months ended June 30, 2011
increased $5.671 million or 3.6%, to
$164.043 million compared with
$158.372 million during the same
period in 2010. The increase was attributable primarily to a
5.2% increase in average earning assets.
Non-interest income increased $1.123
million or 4.3% to $27.397
million for the six months ended June
30, 2011 compared with $26.274
million for the same period in 2010. The increase was
mainly attributable to a decrease in net loss on the sale of other
real estate.
Non-interest expense increased $1.435
million or 1.7% to $84.209
million for the six months ended June
30, 2011 compared with $82.774
million for the same period in 2010. The increase was
primarily attributable to an increase in salaries and benefits
expense partially offset by a reduction in other expenses.
Asset Quality
Non-performing assets totaled $12.680
million or 0.15% of quarterly average earning assets at
June 30, 2011 compared with
$21.856 million or 0.27% of quarterly
average earning assets at June 30,
2010, and $12.888 million or
0.16% of average earnings assets at March
31, 2011. The allowance for credit losses was 1.42% of
total loans at June 30, 2011 compared
with 1.54% at June 30, 2010 and 1.45%
of total loans at March 31, 2011.
|
|
|
Non-performing
assets
(Dollars in
thousands)
|
June 30,
2011
|
Mar 31,
2011
|
Dec 31,
2010
|
|
|
Amount
|
#
|
Amount
|
#
|
Amount
|
#
|
|
|
Commercial
|
$
875
|
15
|
$ 861
|
12
|
$ 1,317
|
17
|
|
|
Construction
|
4,692
|
26
|
6,511
|
37
|
8,469
|
46
|
|
|
1-4 family (including home
equity)
|
2,875
|
32
|
3,130
|
25
|
3,933
|
38
|
|
|
Commercial real estate
(including multi-family)
|
4,151
|
18
|
2,299
|
7
|
2,022
|
6
|
|
|
Agriculture and agriculture real
estate
|
51
|
3
|
17
|
2
|
11
|
1
|
|
|
Consumer
|
36
|
3
|
70
|
9
|
90
|
13
|
|
|
Total
|
$
12,680
|
97
|
$
12,888
|
92
|
$
15,842
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Charge-offs
(Dollars in
thousands)
|
Three Months
Ended
June 30,
2011
|
Three Months
Ended
Mar 31,
2011
|
Three Months
Ended
Dec 31,
2010
|
|
|
Commercial
|
$
271
|
$
216
|
$
855
|
|
|
Construction
|
455
|
697
|
1,014
|
|
|
1-4 family (including home
equity)
|
157
|
226
|
314
|
|
|
Commercial RE (including
multi-family)
|
177
|
320
|
285
|
|
|
Agriculture
|
--
|
(1)
|
--
|
|
|
Consumer
|
169
|
66
|
202
|
|
|
Total
|
$
1,229
|
$
1,524
|
$
2,670
|
|
|
|
|
|
|
|
The provision for credit losses was $1.400 million for the three months ended
June 30, 2011 compared to
$3.275 million for the three months
ended June 30, 2010. Net charge
offs were $1.229 million for the
three months ended June 30, 2011
compared to $2.440 million for the
three months ended June 30, 2010.
The provision for credit losses was $3.100 million for the six months ended
June 30, 2011 compared to
$7.685 million for the six months
ended June 30, 2010. Net charge
offs were $2.753 million for the six
months ended June 30, 2011 compared
to $6.821 million for the six months
ended June 30, 2010.
Conference Call
Prosperity's management team will host a conference call on
Friday, July 22, 2011 at 10:30 a.m. Eastern Daylight Time (9:30 a.m. Central Daylight Time) to discuss
Prosperity's second quarter earnings. Individuals and investment
professionals may participate in the call by dialing 800-862-9098,
the reference code is PBTX.
Alternatively, individuals may listen to the live webcast of the
presentation by visiting Prosperity's website at
www.prosperitybanktx.com. The webcast may be accessed
directly from Prosperity's Home page under News and Events.
Prosperity Bancshares, Inc.®
Prosperity Bancshares, Inc.®, a $9.7
billion Houston, Texas
based regional financial holding company, formed in 1983, operates
under a community banking philosophy and seeks to develop broad
customer relationships based on service and convenience. Prosperity
offers a variety of traditional loan and deposit products to its
customers, which consist primarily of small and medium sized
businesses and consumers. In addition to established banking
products, Prosperity offers a complete line of services including:
Internet Banking services at http://www.prosperitybanktx.com,
Retail Brokerage Services, MasterMoney Debit Cards, and 24 hour
voice response banking. Prosperity currently operates one hundred
seventy five (175) full service banking locations; sixty (60) in
the Houston area; twenty (20) in
the South Texas area including
Corpus Christi and Victoria; thirty-one (31) in the Dallas/Fort Worth area; twenty-one (21) in the
East Texas area; thirty-three (33)
in the Central Texas area
including Austin and San Antonio; and ten (10) in the Bryan/College Station area.
|
Bryan/College Station Area
-
|
Dallas/Fort Worth Area
-
|
Jacksonville
|
Bay City
|
|
|
|
Kerens
|
Beaumont
|
|
|
Bryan
|
Dallas -
|
Longview
|
Cinco Ranch
|
|
|
Bryan-East
|
Abrams Centre
|
Mount Vernon
|
Cleveland
|
|
|
Bryan-North
|
Balch Springs
|
Palestine
|
East Bernard
|
|
|
Caldwell
|
Camp Wisdom
|
Rusk
|
El Campo
|
|
|
College Station
|
Cedar Hill
|
Seven Points
|
Dayton
|
|
|
Greens Prairie
|
Central Expressway
|
Teague
|
Galveston
|
|
|
Madisonville
|
East Renner
|
Tyler
|
Groves
|
|
|
Navasota
|
Frisco
|
Tyler-University
|
Hempstead
|
|
|
Rock Prairie
|
Frisco-West
|
Winnsboro
|
Hitchcock
|
|
|
Wellborn Road
|
Independence
|
|
Katy
|
|
|
Kiest
|
|
Liberty
|
|
|
Central Texas Area
-
|
McKinney
|
Houston Area -
|
Magnolia
|
|
|
McKinney-Stonebridge
|
|
Mont Belvieu
|
|
|
Austin -
|
Midway
|
Houston -
|
Nederland
|
|
|
183
|
Preston Forest
|
Aldine
|
Needville
|
|
|
Allandale
|
Preston Road
|
Allen Parkway
|
Shadow Creek
|
|
|
Cedar Park
|
Red Oak
|
Bellaire
|
Sweeny
|
|
|
Congress
|
Sachse
|
Beltway
|
Tomball
|
|
|
Lakeway
|
The Colony
|
Clear Lake
|
Waller
|
|
|
Liberty Hill
|
Turtle Creek
|
Copperfield
|
West Columbia
|
|
|
Northland
|
Westmoreland
|
Cypress
|
Wharton
|
|
|
Oak Hill
|
|
Downtown
|
Winnie
|
|
|
Parmer Lane
|
|
Eastex
|
Wirt
|
|
|
Research Blvd
|
Fort Worth -
|
Fairfield
|
|
|
|
West Lake
|
Haltom City
|
First Colony
|
|
|
|
Keller
|
Gessner
|
South Texas Area
-
|
|
|
Roanoke
|
Gladebrook
|
|
|
|
Other Central Texas Locations
-
|
Stockyards
|
Harrisburg
|
Corpus Christi -
|
|
|
Bastrop
|
|
Heights
|
Airline
|
|
|
Cuero
|
|
Highway 6 West
|
Carmel
|
|
|
Dime Box
|
Other Dallas/Fort Worth
Locations -
|
Hillcroft
|
Northwest
|
|
|
Dripping Springs
|
Azle
|
Little York
|
Saratoga
|
|
|
Elgin
|
Ennis
|
Medical Center
|
Water Street
|
|
|
Flatonia
|
Gainesville
|
Memorial Drive
|
|
|
|
Georgetown
|
Mesquite
|
Northside
|
Other South Texas
|
|
|
Gonzales
|
Muenster
|
Pasadena
|
Locations -
|
|
|
Hallettsville
|
Sanger
|
Pecan Grove
|
Alice
|
|
|
Kingsland
|
Waxahachie
|
Piney Point
|
Aransas Pass
|
|
|
La Grange
|
|
River Oaks
|
Beeville
|
|
|
Lexington
|
|
Royal Oaks
|
Edna
|
|
|
New Braunfels
|
East Texas Area -
|
Sugar Land
|
Goliad
|
|
|
Pleasanton
|
Athens
|
SW Medical Center
|
Kingsville
|
|
|
Round Rock
|
Athens-South
|
Tanglewood
|
Mathis
|
|
|
San Antonio
|
Blooming Grove
|
Uptown
|
Palacios
|
|
|
Schulenburg
|
Canton
|
Waugh Drive
|
Port Aransas
|
|
|
Seguin
|
Carthage
|
West University
|
Port Lavaca
|
|
|
Smithville
|
Corsicana
|
Westheimer
|
Portland
|
|
|
Weimar
|
Crockett
|
Woodcreek
|
Rockport
|
|
|
Yoakum
|
Eustace
|
|
Sinton
|
|
|
Yorktown
|
Grapeland
|
Other Houston
Area
|
Victoria
|
|
|
Gun Barrel City
|
Locations -
|
Victoria-North
|
|
|
|
Angleton
|
|
|
|
|
|
|
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: This release contains, and the
remarks by Prosperity's management on the conference call may
contain, forward-looking statements within the meaning of the
securities laws that are based on current expectations,
assumptions, estimates and projections about Prosperity, and its
subsidiaries. These forward-looking statements are not
guarantees of future performance and are subject to risks and
uncertainties, many of which are outside of Prosperity's control,
that may cause actual results to differ materially from those
expressed or implied by the forward-looking statements. These
risks and uncertainties include but are not limited to whether
Prosperity can: successfully identify acquisition targets and
integrate the businesses of acquired companies and banks;
continue to sustain its current internal growth rate or total
growth rate; provide products and services that appeal to its
customers; continue to have access to debt and equity capital
markets; and achieve its sales objectives. Other risks
include, but are not limited to: the possibility that credit
quality could deteriorate; actions of competitors; changes in laws
and regulations (including changes in governmental interpretations
of regulations and changes in accounting standards); a
deterioration or downgrade in the credit quality and credit agency
ratings of the securities in Prosperity's securities portfolio;
customer and consumer demand, including customer and consumer
response to marketing; effectiveness of spending, investments or
programs; fluctuations in the cost and availability of supply chain
resources; economic conditions, including currency rate
fluctuations and interest rate fluctuations; weather; and the stock
price volatility associated with "small-cap" companies. These
and various other factors are discussed in Prosperity's Annual
Report on Form 10-K for the year ended December 31, 2010 and other reports and
statements Prosperity has filed with the SEC. Copies of the SEC
filings for Prosperity Bancshares'® may be downloaded from the
Internet at no charge from
www.prosperitybanktx.com.
|
Prosperity
Bancshares, Inc. ®
Financial
Highlights
(Dollars and
share amounts in thousands, except per share data)
|
|
|
Three Months
Ended
|
|
|
June 30,
2011
|
Mar 31,
2011
|
Dec 31,
2010
|
Sept 30,
2010
|
|
|
Selected Earnings and
Per
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income
|
$
95,652
|
$
93,409
|
$
92,436
|
$
96,247
|
|
|
Total interest
expense
|
12,022
|
12,996
|
12,927
|
15,980
|
|
|
Net interest income
|
83,630
|
80,413
|
79,509
|
80,267
|
|
|
Provision for credit
losses
|
1,400
|
1,700
|
2,900
|
3,000
|
|
|
Net interest income
after
|
|
|
|
|
|
|
provision for
credit losses
|
82,230
|
78,713
|
76,609
|
77,267
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
13,530
|
13,867
|
13,905
|
13,654
|
|
|
Total non-interest
expense
|
42,514
|
41,695
|
41,227
|
42,593
|
|
|
Net income before
taxes
|
53,246
|
50,885
|
49,287
|
48,328
|
|
|
Federal income taxes
|
18,154
|
17,007
|
16,489
|
16,162
|
|
|
|
|
|
|
|
|
Net income
|
$
35,092
|
$
33,878
|
$
32,798
|
$
32,166
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$0.75
|
$0.72
|
$0.70
|
$0.69
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$0.75
|
$0.72
|
$0.70
|
$0.69
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
46,888
|
46,782
|
46,684
|
46,653
|
|
|
Weighted average
shares
|
|
|
|
|
|
|
outstanding
(basic)
|
46,864
|
46,733
|
46,671
|
46,640
|
|
|
Weighted average
shares
|
|
|
|
|
|
|
outstanding
(diluted)
|
47,057
|
46,942
|
46,818
|
46,774
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc. ®
Financial
Highlights
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
June 30,
2011
|
June 30,
2010
|
June 30,
2011
|
June 30,
2010
|
|
|
Balance Sheet
Averages
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Total loans
|
$
3,631,256
|
$
3,404,127
|
$
3,574,207
|
$
3,373,654
|
|
|
Investment securities
|
4,707,217
|
4,642,246
|
4,692,639
|
4,411,177
|
|
|
Federal funds sold and
other
|
|
|
|
|
|
|
other temporary
investments
|
13,218
|
109,027
|
13,200
|
84,916
|
|
|
Total earning assets
|
8,351,691
|
8,155,400
|
8,280,046
|
7,869,747
|
|
|
Allowance for credit
losses
|
(51,861)
|
(52,726)
|
(51,780)
|
(52,240)
|
|
|
Cash and due from
banks
|
125,150
|
126,601
|
131,445
|
130,549
|
|
|
Goodwill
|
924,537
|
906,269
|
924,475
|
892,145
|
|
|
Core Deposit Intangibles
(CDI)
|
25,728
|
33,977
|
26,714
|
34,089
|
|
|
Other real estate
|
9,743
|
16,010
|
11,236
|
14,500
|
|
|
Fixed assets, net
|
159,919
|
164,646
|
159,592
|
156,799
|
|
|
Other assets
|
133,661
|
140,040
|
134,423
|
141,317
|
|
|
Total assets
|
$
9,678,568
|
$
9,490,217
|
$
9,616,151
|
$
9,186,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits
|
$
1,770,664
|
$
1,583,010
|
$
1,721,967
|
$
1,514,877
|
|
|
Interest bearing
deposits
|
5,981,826
|
6,229,362
|
6,003,693
|
6,019,520
|
|
|
Total deposits
|
7,752,490
|
7,812,372
|
7,725,660
|
7,534,397
|
|
|
Securities sold under
|
|
|
|
|
|
|
repurchase
agreements
|
68,413
|
83,092
|
60,058
|
77,204
|
|
|
Federal funds purchased
and
|
|
|
|
|
|
|
other
borrowings
|
218,310
|
44,477
|
205,201
|
38,312
|
|
|
Junior subordinated
|
|
|
|
|
|
|
debentures
|
85,055
|
92,265
|
88,059
|
92,265
|
|
|
Other liabilities
|
54,915
|
65,518
|
52,956
|
64,726
|
|
|
Shareholders'
equity(A)
|
1,499,385
|
1,392,493
|
1,484,217
|
1,380,002
|
|
|
Total liabilities and
equity
|
$
9,678,568
|
$
9,490,217
|
$
9,616,151
|
$
9,186,906
|
|
|
(A) Includes $14,337 and
$17,197 in after tax unrealized gains on available for sale
securities for the three month periods ending June 30, 2011 and
June 30, 2010, respectively, and $14,243 and $17,427 for the six
months ending June 30, 2011 and June 30, 2010,
respectively.
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc. ®
Financial
Highlights
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
June 30,
2011
|
June 30,
2010
|
June 30,
2011
|
June 30,
2010
|
|
|
Income Statement
Data
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Interest on loans
|
$
53,703
|
$
52,681
|
$
105,903
|
$
104,134
|
|
|
Interest on
securities
|
41,919
|
46,603
|
83,123
|
91,617
|
|
|
Interest on federal funds
sold
|
|
|
|
|
|
|
and other
temporary
|
|
|
|
|
|
|
investments
|
30
|
74
|
35
|
103
|
|
|
Total interest income
|
95,652
|
99,358
|
189,061
|
195,854
|
|
|
Interest expense -
deposits
|
11,064
|
17,573
|
22,576
|
35,058
|
|
|
Interest expense -
debentures
|
598
|
799
|
1,745
|
1,590
|
|
|
Interest expense -
other
|
360
|
386
|
697
|
834
|
|
|
Total interest
expense
|
12,022
|
18,758
|
25,018
|
37,482
|
|
|
Net interest income
(B)
|
83,630
|
80,600
|
164,043
|
158,372
|
|
|
Provision for credit
losses
|
1,400
|
3,275
|
3,100
|
7,685
|
|
|
Net interest income
after
|
|
|
|
|
|
|
provision for
credit losses
|
82,230
|
77,325
|
160,943
|
150,687
|
|
|
Non-sufficient funds (NSF)
fees
|
6,226
|
6,917
|
12,333
|
13,402
|
|
|
Debit card and ATM card
income
|
3,809
|
3,201
|
7,261
|
5,928
|
|
|
Service charges on deposit
accounts
|
2,511
|
2,562
|
4,994
|
4,939
|
|
|
Net gain on sale of
assets
|
195
|
399
|
360
|
399
|
|
|
Net loss on sale of
ORE
|
(366)
|
(1,689)
|
(526)
|
(1,983)
|
|
|
Net loss on sale of
securities
|
(581)
|
--
|
(581)
|
--
|
|
|
Other non-interest
income
|
1,736
|
1,906
|
3,556
|
3,589
|
|
|
Total non-interest
income
|
13,530
|
13,296
|
27,397
|
26,274
|
|
|
|
|
|
|
|
|
Salaries and benefits
(C)
|
23,994
|
22,431
|
47,198
|
43,543
|
|
|
CDI amortization
|
1,943
|
2,280
|
3,977
|
4,570
|
|
|
Net occupancy and
equipment
|
3,547
|
3,708
|
7,195
|
7,142
|
|
|
Depreciation
|
2,037
|
2,147
|
4,058
|
4,153
|
|
|
Data processing
|
|
|
|
|
|
|
and software
amortization
|
1,780
|
1,742
|
3,452
|
3,157
|
|
|
Regulatory assessments and
FDIC
insurance
|
2,894
|
2,801
|
5,895
|
5,410
|
|
|
Other non-interest
expense
|
6,319
|
7,940
|
12,434
|
14,799
|
|
|
Total non-interest
expense
|
42,514
|
43,049
|
84,209
|
82,774
|
|
|
Net income before
taxes
|
53,246
|
47,572
|
104,131
|
94,187
|
|
|
Federal income taxes
|
18,154
|
15,826
|
35,161
|
31,443
|
|
|
Net income available
|
|
|
|
|
|
|
to common
shareholders
|
$
35,092
|
$
31,746
|
$
68,970
|
$
62,744
|
|
(B) Net interest income on a tax
equivalent basis would be $84,603 and $81,332 for the three months
ended June 30, 2011 and June 30, 2010, respectively, and $165,905
and $159,797 for the six months ended June 30, 2011 and June 30,
2010, respectively.
(C) Salaries and benefits
includes stock-based compensation expense of $936 and $692 for the
three months ended June 30, 2011 and June 30, 2010, respectively,
and $1,643 and $1,486 for the six months ended June 30, 2011 and
June 30, 2010, respectively.
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights
(Dollars and
share amounts in thousands, except per share data)
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
June 30,
2011
|
June 30,
2010
|
June 30,
2011
|
June 30,
2010
|
|
|
Common Share and
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
Other
Data
|
|
|
|
|
|
|
Employees - FTE
|
1,675
|
1,753
|
1,675
|
1,753
|
|
|
|
|
|
|
|
|
Book value per share
|
$
32.24
|
$
30.12
|
$
32.24
|
$
30.12
|
|
|
Tangible book value per
share
|
$
11.99
|
$
9.64
|
$
11.99
|
$
9.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
46,888
|
46,622
|
46,888
|
46,622
|
|
|
Weighted average
shares
|
|
|
|
|
|
|
outstanding
(basic)
|
46,864
|
46,610
|
46,799
|
46,581
|
|
|
Weighted average
shares
|
|
|
|
|
|
|
outstanding
(diluted)
|
47,057
|
46,854
|
47,001
|
46,857
|
|
|
|
|
|
|
|
|
Non-performing Assets (at period
end)
|
|
|
|
|
|
|
Non-accrual loans
|
$
3,518
|
$
3,302
|
$
3,518
|
$
3,302
|
|
|
Accruing loans 90 or
more
|
|
|
|
|
|
|
days past
due
|
306
|
5,761
|
306
|
5,761
|
|
|
Restructured loans
|
0
|
0
|
0
|
0
|
|
|
Total non-performing
loans
|
3,824
|
9,063
|
3,824
|
9,063
|
|
|
Repossessed assets
|
15
|
273
|
15
|
273
|
|
|
Other real estate
|
8,841
|
12,520
|
8,841
|
12,520
|
|
|
Total
non-performing assets
|
$
12,680
|
$
21,856
|
$
12,680
|
$
21,856
|
|
|
|
|
|
|
|
|
Allowance for credit losses
at
|
|
|
|
|
|
|
end of
period
|
$
51,932
|
$
52,727
|
$
51,932
|
$
52,727
|
|
|
|
|
|
|
|
|
Net charge-offs
|
$
1,229
|
$
2,440
|
$
2,753
|
$
6,821
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
0.75
|
$
0.68
|
$
1.47
|
$
1.35
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
0.75
|
$
0.68
|
$
1.47
|
$
1.34
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
June 30,
2011
|
June 30,
2010
|
June 30,
2011
|
June 30,
2010
|
|
|
Performance
Ratios
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Return on average
|
|
|
|
|
|
|
assets
(annualized)
|
1.45%
|
1.34%
|
1.43%
|
1.37%
|
|
|
Return on average
common
|
|
|
|
|
|
|
equity
(annualized)
|
9.36%
|
9.12%
|
9.29%
|
9.09%
|
|
|
Return on average
tangible
|
|
|
|
|
|
|
common equity
(annualized)
|
25.56%
|
28.08%
|
25.88%
|
27.65%
|
|
|
Net interest margin
(D)
|
|
|
|
|
|
|
(tax equivalent)
(annualized)
|
4.06%
|
4.00%
|
4.04%
|
4.09%
|
|
|
|
|
|
|
|
|
Efficiency ratio(E)
|
43.58%
|
46.04%
|
43.94%
|
44.93%
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to
|
|
|
|
|
|
|
average earning
assets
|
0.15%
|
0.27%
|
0.15%
|
0.28%
|
|
|
Non-performing assets to
loans
|
|
|
|
|
|
|
and other real
estate
|
0.35%
|
0.64%
|
0.35%
|
0.64%
|
|
|
Net charge-offs
|
|
|
|
|
|
|
to average
loans
|
0.03%
|
0.07%
|
0.08%
|
0.20%
|
|
|
Allowance for credit losses
to
|
|
|
|
|
|
|
total
loans
|
1.42%
|
1.54%
|
1.42%
|
1.54%
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
$46.75
|
$43.66
|
$46.75
|
$43.66
|
|
|
|
|
|
|
|
|
Low
|
$40.83
|
$34.31
|
$38.23
|
$34.31
|
|
|
|
|
|
|
|
|
Period end market
price
|
$43.82
|
$34.75
|
$43.82
|
$34.75
|
|
(D) Net interest margin for
all periods presented is
calculated on an actual 365 day basis.
(E) The efficiency ratio is
calculated by dividing total non-interest expense (excluding
provision for credit losses) by net interest income plus
non-interest income (excluding net gains and losses on the sale of
securities and assets). Additionally, taxes are not part of
this calculation.
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights
(Dollars in
thousands)
|
|
|
June 30,
2011
|
Mar 31,
2011
|
Dec 31,
2010
|
Sept 30,
2010
|
June 30,
2010
|
|
|
Loan Portfolio
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$ 455,791
|
12.4%
|
$ 460,066
|
12.9%
|
$ 440,480
|
12.6%
|
$
419,539
|
12.3%
|
$
440,274
|
12.9%
|
|
|
Construction
|
483,581
|
13.2%
|
494,159
|
13.8%
|
502,327
|
14.4%
|
498,400
|
14.6%
|
514,793
|
15.0%
|
|
|
1-4 family
residential
|
941,250
|
25.7%
|
882,807
|
24.7%
|
824,057
|
23.7%
|
789,859
|
23.1%
|
758,670
|
22.2%
|
|
|
Home equity
|
131,213
|
3.6%
|
123,696
|
3.4%
|
118,781
|
3.4%
|
114,846
|
3.4%
|
116,071
|
3.4%
|
|
|
Commercial real
estate
|
1,411,501
|
38.5%
|
1,385,031
|
38.8%
|
1,370,649
|
39.3%
|
1,357,046
|
39.8%
|
1,349,834
|
39.4%
|
|
|
Agriculture
|
160,780
|
4.4%
|
144,535
|
4.1%
|
140,752
|
4.1%
|
143,917
|
4.2%
|
148,770
|
4.3%
|
|
|
Consumer
|
81,132
|
2.2%
|
82,626
|
2.3%
|
87,977
|
2.5%
|
90,212
|
2.6%
|
96,628
|
2.8%
|
|
|
Total Loans
|
$3,665,248
|
|
$3,572,920
|
|
$3,485,023
|
|
$
3,413,819
|
|
$
3,425,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
DDA
|
$1,788,756
|
23.3%
|
$1,730,427
|
22.2%
|
$1,673,190
|
22.4%
|
$ 1,623,078
|
21.7%
|
$ 1,576,727
|
20.2%
|
|
|
Interest bearing DDA
|
1,358,649
|
17.7%
|
1,432,766
|
18.3%
|
1,412,337
|
19.0%
|
1,278,564
|
17.1%
|
1,359,041
|
17.4%
|
|
|
Money Market
|
1,878,679
|
24.5%
|
2,014,674
|
25.8%
|
1,748,344
|
23.5%
|
1,799,923
|
24.0%
|
1,901,149
|
24.3%
|
|
|
Savings
|
471,082
|
6.1%
|
454,649
|
5.8%
|
423,026
|
5.6%
|
402,707
|
5.4%
|
385,376
|
4.9%
|
|
|
Time < $100
|
1,037,492
|
13.6%
|
1,072,343
|
13.7%
|
1,119,336
|
15.0%
|
1,224,226
|
16.3%
|
1,316,602
|
16.9%
|
|
|
Time > $100
|
1,133,034
|
14.8%
|
1,111,525
|
14.2%
|
1,078,687
|
14.5%
|
1,163,082
|
15.5%
|
1,275,034
|
16.3%
|
|
|
Total Deposits
|
$7,667,692
|
|
$7,816,384
|
|
$7,454,920
|
|
$
7,491,580
|
|
$
7,813,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
47.8%
|
|
45.7%
|
|
46.7%
|
|
45.6%
|
|
43.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family residential
construction
|
$ 124,995
|
25.8%
|
$ 112,175
|
22.7%
|
$ 118,207
|
23.5%
|
$
127,325
|
25.6%
|
$
136,126
|
26.5%
|
|
|
Land development
|
46,405
|
9.6%
|
50,600
|
10.2%
|
52,773
|
10.5%
|
55,902
|
11.2%
|
74,570
|
14.5%
|
|
|
Raw land
|
69,769
|
14.4%
|
70,074
|
14.2%
|
64,524
|
12.9%
|
67,108
|
13.4%
|
68,112
|
13.2%
|
|
|
Residential lots
|
86,515
|
17.9%
|
86,359
|
17.5%
|
88,648
|
17.6%
|
88,611
|
17.8%
|
93,764
|
18.2%
|
|
|
Commercial lots
|
54,419
|
11.3%
|
50,543
|
10.2%
|
52,183
|
10.4%
|
48,346
|
9.7%
|
49,341
|
9.6%
|
|
|
Commercial construction
and other
|
101,478
|
21.0%
|
124,408
|
25.2%
|
125,992
|
25.1%
|
111,108
|
22.3%
|
92,879
|
18.0%
|
|
|
Total Construction
Loans
|
$
483,581
|
|
$
494,159
|
|
$
502,327
|
|
$
498,400
|
|
$
514,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights
(Dollars in
thousands)
|
|
|
June 30, 2011
|
Mar 31,
2011
|
Dec 31,
2010
|
Sept 30,
2010
|
June 30,
2010
|
|
|
Balance Sheet
Data
(at period end)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Total loans
|
$ 3,665,248
|
$ 3,572,920
|
$ 3,485,023
|
$ 3,413,819
|
$
3,425,040
|
|
|
Investment securities
(F)
|
4,641,664
|
4,798,642
|
4,617,116
|
4,472,639
|
4,817,847
|
|
|
Federal funds sold
|
350
|
517
|
393
|
553
|
823
|
|
|
Allowance for credit
losses
|
(51,932)
|
(51,760)
|
(51,584)
|
(51,354)
|
(52,727)
|
|
|
Cash and due from
banks
|
145,910
|
145,521
|
158,975
|
140,678
|
148,395
|
|
|
Goodwill
|
924,537
|
924,537
|
924,258
|
923,933
|
921,484
|
|
|
Core deposit
intangibles
|
24,799
|
26,742
|
28,776
|
30,948
|
33,389
|
|
|
Other real estate
|
8,841
|
10,465
|
11,053
|
11,233
|
12,520
|
|
|
Fixed assets, net
|
160,119
|
159,050
|
159,053
|
159,717
|
161,267
|
|
|
Other assets
|
137,611
|
136,313
|
143,509
|
136,336
|
140,784
|
|
|
Total assets
|
$
9,657,147
|
$
9,722,947
|
$
9,476,572
|
$
9,238,502
|
$
9,608,822
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
$ 1,788,756
|
$ 1,730,427
|
$ 1,673,190
|
$ 1,623,078
|
$
1,576,727
|
|
|
Interest bearing
deposits
|
5,878,936
|
6,085,957
|
5,781,730
|
5,868,502
|
6,237,202
|
|
|
Total deposits
|
7,667,692
|
7,816,384
|
7,454,920
|
7,491,580
|
7,813,929
|
|
|
Securities sold under
|
|
|
|
|
|
|
|
repurchase
agreements
|
91,288
|
51,847
|
60,659
|
96,416
|
93,060
|
|
|
Federal funds purchased
and
|
|
|
|
|
|
|
|
other
borrowings
|
248,839
|
228,092
|
374,433
|
71,686
|
154,935
|
|
|
Junior subordinated
|
|
|
|
|
|
|
|
debentures
|
85,055
|
85,055
|
92,265
|
92,265
|
92,265
|
|
|
Other liabilities
|
52,625
|
61,071
|
41,956
|
56,985
|
50,499
|
|
|
Total liabilities
|
8,145,499
|
8,242,449
|
8,024,233
|
7,808,932
|
8,204,688
|
|
|
Shareholders' equity
(G)
|
1,511,648
|
1,480,498
|
1,452,339
|
1,429,570
|
1,404,134
|
|
|
Total liabilities and
equity
|
$
9,657,147
|
$
9,722,947
|
$
9,476,572
|
$
9,238,502
|
$
9,608,822
|
|
|
|
|
|
|
|
|
|
(F) Includes
$23,647, $28,028, $27,710, $25,855 and $26,688 in unrealized gains
on available for sale securities for the quarterly periods ending
June 30, 2011, March 31, 2011, December 31, 2010, September 30,
2010 and June 30, 2010, respectively.
|
|
|
|
|
(G) Includes
$15,371, $18,218, $18,011, $16,806 and $17,347 in after-tax
unrealized gains on available for sale securities for the quarterly
periods ending June 30, 2011, March 31, 2011, December 31, 2010,
September 30, 2010 and June 30, 2010, respectively.
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
June 30,
2011
|
Mar 31,
2011
|
Dec 31,
2010
|
Sept 30,
2010
|
June 30,
2010
|
|
|
Income Statement
Data
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Interest on loans
|
$
53,703
|
$
52,200
|
$
52,722
|
$
52,855
|
$
52,681
|
|
|
Interest on
securities
|
41,919
|
41,204
|
39,708
|
43,382
|
46,603
|
|
|
Interest on federal
funds
|
|
|
|
|
|
|
|
sold and other
earning
|
|
|
|
|
|
|
|
assets
|
30
|
5
|
6
|
10
|
74
|
|
|
Total interest
income
|
95,652
|
93,409
|
92,436
|
96,247
|
99,358
|
|
|
Interest expense -
deposits
|
11,064
|
11,512
|
11,749
|
14,702
|
17,573
|
|
|
Interest expense -
debentures
|
598
|
1,147
|
803
|
857
|
799
|
|
|
Interest expense -
other
|
360
|
337
|
375
|
421
|
386
|
|
|
Total interest
expense
|
12,022
|
12,996
|
12,927
|
15,980
|
18,758
|
|
|
Net interest
income
|
83,630
|
80,413
|
79,509
|
80,267
|
80,600
|
|
|
Provision for credit
losses
|
1,400
|
1,700
|
2,900
|
3,000
|
3,275
|
|
|
Net interest income
after
|
|
|
|
|
|
|
|
provision for
credit losses
|
82,230
|
78,713
|
76,609
|
77,267
|
77,325
|
|
|
Non-sufficient funds (NSF)
fees
|
6,226
|
6,107
|
6,905
|
7,274
|
6,917
|
|
|
Debit card and ATM card
income
|
3,809
|
3,452
|
3,261
|
3,393
|
3,201
|
|
|
Service charges on deposit
accounts
|
2,511
|
2,483
|
2,614
|
2,534
|
2,562
|
|
|
Net gain on sale of
assets
|
195
|
165
|
2
|
1
|
399
|
|
|
Net loss on sale of
ORE
|
(366)
|
(160)
|
(915)
|
(1,364)
|
(1,689)
|
|
|
Net loss on sale of
securities
|
(581)
|
--
|
--
|
--
|
--
|
|
|
Other non-interest
income
|
1,736
|
1,820
|
2,038
|
1,816
|
1,906
|
|
|
Total non-interest
income
|
13,530
|
13,867
|
13,905
|
13,654
|
13,296
|
|
|
Salaries and benefits
|
23,994
|
23,204
|
21,421
|
22,016
|
22,431
|
|
|
CDI amortization
|
1,943
|
2,034
|
2,172
|
2,274
|
2,280
|
|
|
Net occupancy and
equipment
|
3,547
|
3,648
|
3,975
|
4,036
|
3,708
|
|
|
Depreciation
|
2,037
|
2,021
|
1,999
|
2,161
|
2,147
|
|
|
Data processing and
|
|
|
|
|
|
|
|
software
amortization
|
1,780
|
1,672
|
1,515
|
1,550
|
1,742
|
|
|
Regulatory assessments
and
FDIC
insurance
|
2,894
|
3,001
|
2,812
|
2,817
|
2,801
|
|
|
Other non-interest
expense
|
6,319
|
6,115
|
7,333
|
7,739
|
7,940
|
|
|
Total non-interest
expense
|
42,514
|
41,695
|
41,227
|
42,593
|
43,049
|
|
|
Net income before
taxes
|
53,246
|
50,885
|
49,287
|
48,328
|
47,572
|
|
|
Federal income taxes
|
18,154
|
17,007
|
16,489
|
16,162
|
15,826
|
|
|
Net income
available
|
|
|
|
|
|
|
|
to common
shareholders
|
$
35,092
|
$
33,878
|
$
32,798
|
$
32,166
|
$
31,746
|
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights
|
|
|
Comparative
Quarterly
|
Three Months
Ended
|
|
|
Asset Quality,
Performance
|
June 30,
2011
|
Mar 31,
2011
|
Dec 31,
2010
|
Sept 30,
2010
|
June 30,
2010
|
|
|
& Capital
Ratios
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
Return on average
|
|
|
|
|
|
|
|
assets
(annualized)
|
1.45%
|
1.42%
|
1.41%
|
1.36%
|
1.34%
|
|
|
Return on average
common
|
|
|
|
|
|
|
|
equity
(annualized)
|
9.36%
|
9.22%
|
9.08%
|
9.06%
|
9.12%
|
|
|
Return on average
tangible
|
|
|
|
|
|
|
|
equity
(annualized)
|
25.56%
|
26.22%
|
26.70%
|
27.62%
|
28.08%
|
|
|
Net interest margin
|
|
|
|
|
|
|
|
(tax equivalent)
(annualized)
|
4.06%
|
4.02%
|
3.99%
|
3.97%
|
4.00%
|
|
|
|
|
|
|
|
|
|
Employees - FTE
|
1,675
|
1,672
|
1,708
|
1,719
|
1,753
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
|
43.58%
|
44.30%
|
44.13%
|
45.35%
|
46.04%
|
|
|
Non-performing assets
to
|
|
|
|
|
|
|
|
average earning
assets
|
0.15%
|
0.16%
|
0.20%
|
0.26%
|
0.27%
|
|
|
Non-performing assets to
loans
|
|
|
|
|
|
|
|
and other real
estate
|
0.35%
|
0.36%
|
0.45%
|
0.60%
|
0.64%
|
|
|
Net charge-offs to
|
|
|
|
|
|
|
|
average
loans
|
0.03%
|
0.04%
|
0.08%
|
0.13%
|
0.07%
|
|
|
Allowance for credit losses
to
|
|
|
|
|
|
|
|
total
loans
|
1.42%
|
1.45%
|
1.48%
|
1.50%
|
1.54%
|
|
|
|
|
|
|
|
|
|
Book value per share
|
$32.24
|
$31.65
|
$31.11
|
$30.64
|
$30.12
|
|
|
|
|
|
|
|
|
|
Tangible book value per
share
|
$11.99
|
$11.31
|
$10.70
|
$10.17
|
$9.64
|
|
|
|
|
|
|
|
|
|
Tier 1 risk-based
capital
|
14.72%
|
14.00%
|
13.64%
|
13.23%
|
12.31%
|
|
|
|
|
|
|
|
|
|
Total risk-based
capital
|
15.93%
|
15.21%
|
14.87%
|
14.47%
|
13.56%
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage
capital
|
7.24%
|
6.97%
|
6.87%
|
6.45%
|
6.10%
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible
|
|
|
|
|
|
|
|
assets
|
6.46%
|
6.03%
|
5.86%
|
5.73%
|
5.19%
|
|
|
|
|
|
|
|
|
|
Equity to assets
|
15.65%
|
15.23%
|
15.33%
|
15.47%
|
14.61%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Supplemental
Financial Data (Unaudited)
(Dollars in
thousands)
|
|
|
Three Months
Ended June 30, 2011
|
Three Months
Ended June 30, 2010
|
|
|
YIELD ANALYSIS
|
Average
|
Interest
Earned
|
Average
|
Average
|
Interest
Earned
|
Average
|
|
|
Balance
|
/ Interest
Paid
|
Yield/Rate
|
Balance
|
/ Interest
Paid
|
Yield/Rate
|
|
|
|
|
|
|
|
|
|
|
Interest Earning
Assets:
|
|
|
|
|
|
|
|
|
Loans
|
$
3,631,256
|
$
53,703
|
5.93%
|
$
3,404,127
|
$
52,681
|
6.21%
|
|
|
Investment securities
|
4,707,217
|
41,919
|
3.56%
|
4,642,246
|
46,603
|
4.02%
|
|
|
Federal funds sold and
other
|
|
|
|
|
|
|
|
|
earning
assets
|
13,218
|
30
|
0.91%
|
109,027
|
74
|
0.27%
|
|
|
Total interest
earning assets
|
8,351,691
|
$
95,652
|
4.59%
|
8,155,400
|
$
99,358
|
4.89%
|
|
|
Allowance for credit
losses
|
(51,861)
|
|
|
(52,726)
|
|
|
|
|
Non-interest earning
assets
|
1,378,738
|
|
|
1,387,543
|
|
|
|
|
Total
assets
|
$
9,678,568
|
|
|
$
9,490,217
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
Interest bearing demand
deposits
|
$
1,403,331
|
$
2,061
|
0.59%
|
$
1,381,215
|
$
2,517
|
0.73%
|
|
|
Savings and money market
deposits
|
2,403,330
|
3,348
|
0.56%
|
2,248,950
|
4,292
|
0.77%
|
|
|
Certificates and other time
deposits
|
2,175,165
|
5,655
|
1.04%
|
2,599,197
|
10,764
|
1.66%
|
|
|
Securities sold under repurchase
agreements
|
68,413
|
110
|
0.64%
|
83,092
|
175
|
0.84%
|
|
|
Federal funds purchased and
other borrowings
|
218,310
|
250
|
0.46%
|
44,477
|
211
|
1.90%
|
|
|
Junior subordinated
debentures
|
85,055
|
598
|
2.82%
|
92,265
|
799
|
3.47%
|
|
|
Total interest
bearing liabilities
|
$
6,353,604
|
$
12,022
|
0.76%
|
$
6,449,196
|
$
18,758
|
1.17%
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
Non-interest bearing demand
deposits
|
$
1,770,664
|
|
|
$
1,583,010
|
|
|
|
|
Other liabilities
|
54,915
|
|
|
65,518
|
|
|
|
|
Total
liabilities
|
$
8,179,183
|
|
|
$
8,097,724
|
|
|
|
|
Shareholders' equity
|
$
1,499,385
|
|
|
$
1,392,493
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
9,678,568
|
|
|
$
9,490,217
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income &
Margin
|
|
$
83,630
|
4.02%
|
|
$
80,600
|
3.96%
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income &
Margin
|
|
|
|
|
|
|
|
|
(tax
equivalent)
|
|
$
84,603
|
4.06%
|
|
$
81,332
|
4.00%
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Supplemental
Financial Data (Unaudited)
(Dollars in
thousands)
|
|
|
Six Months
Ended June 30, 2011
|
Six Months
Ended June 30, 2010
|
|
|
YIELD ANALYSIS
|
Average
|
Interest
Earned
|
Average
|
Average
|
Interest
Earned
|
Average
|
|
|
Balance
|
/ Interest
Paid
|
Yield/Rate
|
Balance
|
/ Interest
Paid
|
Yield/Rate
|
|
|
|
|
|
|
|
|
|
|
Interest Earning
Assets:
|
|
|
|
|
|
|
|
|
Loans
|
$
3,574,207
|
$
105,903
|
5.98%
|
$
3,373,654
|
$
104,134
|
6.22%
|
|
|
Investment securities
|
4,692,639
|
83,123
|
3.54%
|
4,411,177
|
91,617
|
4.15%
|
|
|
Federal funds sold and
other
|
|
|
|
|
|
|
|
|
earning
assets
|
13,200
|
35
|
0.53%
|
84,916
|
103
|
0.24%
|
|
|
Total interest
earning assets
|
8,280,046
|
$
189,061
|
4.60%
|
7,869,747
|
$
195,854
|
5.02%
|
|
|
Allowance for credit
losses
|
(51,780)
|
|
|
(52,240)
|
|
|
|
|
Non-interest earning
assets
|
1,387,885
|
|
|
1,369,399
|
|
|
|
|
Total
assets
|
$
9,616,151
|
|
|
$
9,186,906
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
Interest bearing demand
deposits
|
$
1,446,008
|
$
4,299
|
0.60%
|
$
1,382,751
|
$
5,255
|
0.77%
|
|
|
Savings and money market
deposits
|
2,381,326
|
6,684
|
0.57%
|
2,143,678
|
8,312
|
0.78%
|
|
|
Certificates and other time
deposits
|
2,176,359
|
11,593
|
1.07%
|
2,493,091
|
21,491
|
1.74%
|
|
|
Securities sold under repurchase
agreements
|
60,058
|
179
|
0.60%
|
77,204
|
323
|
0.84%
|
|
|
Federal funds purchased and
other borrowings
|
205,201
|
518
|
0.51%
|
38,312
|
511
|
2.69%
|
|
|
Junior subordinated
debentures
|
88,059
|
1,745
|
4.00%
|
92,265
|
1,590
|
3.48%
|
|
|
Total interest
bearing liabilities
|
$
6,357,011
|
$
25,018
|
0.79%
|
$
6,227,301
|
$
37,482
|
1.21%
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
Non-interest bearing demand
deposits
|
$
1,721,967
|
|
|
$
1,514,877
|
|
|
|
|
Other liabilities
|
52,956
|
|
|
64,726
|
|
|
|
|
Total
liabilities
|
$
8,131,934
|
|
|
$
7,806,904
|
|
|
|
|
Shareholders' equity
|
$
1,484,217
|
|
|
$
1,380,002
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
9,616,151
|
|
|
$
9,186,906
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income &
Margin
|
|
$
164,043
|
4.00%
|
|
$
158,372
|
4.06%
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income &
Margin
|
|
|
|
|
|
|
|
|
(tax
equivalent)
|
|
$
165,905
|
4.04%
|
|
$
159,797
|
4.09%
|
|
|
|
|
|
|
|
|
|
|
Prosperity Bancshares, Inc.®
Notes to Selected Financial Data (Unaudited)
(Dollars in thousands)
Consolidated Financial Highlights
NOTES TO SELECTED FINANCIAL DATA
Prosperity's management uses certain non-GAAP (generally
accepted accounting principles) financial measures to evaluate its
performance. Specifically, Prosperity reviews tangible book value
per share, return on average tangible common equity and the
tangible equity to tangible assets ratio for internal planning and
forecasting purposes. Prosperity has included in this Earnings
Release information relating to these non-GAAP financial measures
for the applicable periods presented. Prosperity believes
these non-GAAP financial measures provide information useful to
investors in understanding Prosperity's financial results and
Prosperity believes that its presentation, together with the
accompanying reconciliations, provides a complete understanding of
factors and trends affecting Prosperity's business and allows
investors to view performance in a manner similar to management,
the entire financial services sector, bank stock analysts and bank
regulators. These non-GAAP measures should not be considered a
substitute for GAAP basis measures and results and Prosperity
strongly encourages investors to review its consolidated financial
statements in their entirety and not to rely on any single
financial measure. Because non-GAAP financial measures are not
standardized, it may not be possible to compare these financial
measures with other companies' non-GAAP financial measures having
the same or similar names.
|
Prosperity
Bancshares, Inc.®
Notes to
Selected Financial Data (Unaudited)
(Dollars and
share amounts in thousands)
|
|
|
Three months
ended
|
|
|
Jun 30,
2011
|
Mar 31,
2011
|
Dec 31,
2010
|
Sept 30,
2010
|
June 30,
2010
|
|
|
Return on average tangible
common equity:
|
|
|
|
|
|
|
Net income
|
$
35,092
|
$
33,878
|
$
32,798
|
$
32,166
|
$
31,746
|
|
|
Average shareholders'
equity
|
1,499,385
|
1,469,048
|
1,444,847
|
1,419,784
|
1,392,493
|
|
|
Less: Average goodwill and other
intangible assets
|
(950,265)
|
(952,123)
|
(953,509)
|
(953,892)
|
(940,246)
|
|
|
Average
tangible shareholders' equity
|
$ 549,120
|
$ 516,925
|
$ 491,338
|
$ 465,892
|
$ 452,247
|
|
|
Return on average tangible
common equity (annualized):
|
25.56%
|
26.22%
|
26.70%
|
27.62%
|
28.08%
|
|
|
|
|
|
|
|
|
|
Tangible book value per
share:
|
|
|
|
|
|
|
|
Shareholders' equity
|
$1,511,648
|
$1,480,498
|
$1,452,339
|
$1,429,570
|
$1,404,134
|
|
|
Less: Goodwill and other
intangible assets
|
(949,336)
|
(951,279)
|
(953,034)
|
(954,881)
|
(954,873)
|
|
|
Tangible shareholders' equity
|
$ 562,312
|
$ 529,219
|
$ 499,305
|
$ 474,689
|
$ 449,261
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
46,888
|
46,782
|
46,684
|
46,653
|
46,622
|
|
|
Tangible book value per
share:
|
$ 11.99
|
$
11.31
|
$ 10.70
|
$
10.17
|
$
9.64
|
|
|
|
|
|
|
|
|
|
Tangible equity to tangible
assets ratio:
|
|
|
|
|
|
|
|
Tangible shareholders'
equity
|
$ 562,312
|
$ 529,219
|
$ 499,305
|
$ 474,689
|
$ 449,261
|
|
|
|
|
|
|
|
|
|
Total assets
|
$9,657,147
|
$9,722,947
|
$9,476,572
|
$9,238,502
|
$9,608,822
|
|
|
Less: Goodwill and other
intangible assets
|
(949,336)
|
(951,279)
|
(953,034)
|
(954,881)
|
(954,873)
|
|
|
Tangible
assets
|
$8,707,811
|
$8,771,668
|
$8,523,538
|
$8,283,621
|
$8,653,949
|
|
|
|
|
|
|
|
|
|
Tangible equity to tangible
assets ratio:
|
6.46%
|
6.03%
|
5.86%
|
5.73%
|
5.19%
|
|
|
|
|
|
|
|
|
|
|
Prosperity
Bancshares, Inc.®
Notes to
Selected Financial Data (Unaudited)
(Dollars in
thousands)
|
|
|
Six Months
Ended
|
|
|
June 30,
2011
|
June 30,
2010
|
|
|
Return on average tangible
common equity:
|
|
|
Net income
|
$
68,970
|
$
62,744
|
|
|
Average shareholders'
equity
|
1,484,217
|
1,380,002
|
|
|
Less: Average goodwill and other
intangible assets
|
(951,189)
|
(926,234)
|
|
|
Average
tangible shareholders' equity
|
$ 533,028
|
$ 453,768
|
|
|
Return on average tangible
common equity (annualized):
|
25.88%
|
27.65%
|
|
|
|
|
|
|
Tangible book value per
share:
|
|
|
Shareholders' equity
|
$1,511,648
|
$1,404,134
|
|
|
Less: Goodwill and other
intangible assets
|
(949,336)
|
(954,873)
|
|
|
Tangible shareholders' equity
|
$ 562,312
|
$ 449,261
|
|
|
|
|
|
|
Period end shares
outstanding
|
46,888
|
46,622
|
|
|
Tangible book value per
share:
|
$
11.99
|
$
9.64
|
|
|
|
|
|
|
Tangible equity to tangible
assets ratio:
|
|
|
|
|
Tangible shareholders'
equity
|
$ 562,312
|
$ 449,261
|
|
|
|
|
|
|
Total assets
|
$9,657,147
|
$9,608,822
|
|
|
Less: Goodwill and other
intangible assets
|
(949,336)
|
(954,873)
|
|
|
Tangible
assets
|
$8,707,811
|
$8,653,949
|
|
|
|
|
|
|
Tangible equity to tangible
assets ratio:
|
6.46%
|
5.19%
|
|
|
|
|
|
|
SOURCE Prosperity Bancshares, Inc.
