PROSPERITY BANCSHARES, INC.® REPORTS SECOND QUARTER 2024 EARNINGS
Prosperity Bancshares (NYSE: PB) released its 2024 second quarter earnings, reporting net income of $111.6 million and diluted EPS of $1.17. Excluding merger-related expenses, net income was $116.6 million and EPS was $1.22. The company completed the merger with Lone Star State Bancshares on April 1, 2024. Key metrics include a 15 basis point increase in net interest margin to 2.94%, a $1.06 billion increase in loans, and a $757.6 million increase in deposits. The annualized return on average assets was 1.12%. Share repurchases reached 671 thousand shares in Q2 and 1.2 million shares for the year. Noninterest income rose by 18.4% to $46.0 million, while noninterest expense increased by 12.5% to $152.8 million. The company declared a Q3 2024 dividend of $0.56 per share. Finally, nonperforming assets remained low at 0.25% of average interest-earning assets, and the allowance for credit losses was $397.5 million.
- Net income increased to $111.6M from $86.9M YoY.
- Diluted EPS rose to $1.17 from $0.94 YoY.
- Net interest margin grew by 15 basis points to 2.94%.
- Loans increased by $1.06B or 5.0% QoQ.
- Deposits increased by $757.6M or 2.8% QoQ.
- Nonperforming assets low at 0.25% of average interest-earning assets.
- Share repurchases of 671K shares in Q2 and 1.2M shares YTD.
- Noninterest income increased by 18.4% to $46M.
- Noninterest expense increased by 12.5% QoQ to $152.8M.
- FDIC special assessment cost $3.6M.
- Merger-related provision for credit losses cost $9.1M.
Insights
Prosperity Bancshares' Q2 2024 earnings report displays solid financial health and strategic growth. The merger with Lone Star State Bancshares has significantly contributed to the company's performance, leading to increased loans and deposits. Despite merger-related costs and a special FDIC assessment, the net income improved to $111.6 million, up from $86.9 million in the same quarter last year. The net interest margin also saw a positive uptick to 2.94%, indicating efficient management of interest rate spreads.
For retail investors, the company's strategic expansion through acquisitions and a robust increase in net interest income are positive signals. The share repurchase program further shows management's confidence in the company's valuation and its commitment to returning value to shareholders. Short-term, investors can expect some volatility due to merger-related expenses, but long-term prospects look promising with the growing loan portfolio and deposit base.
The merger with Lone Star State Bancshares is a pivotal move for Prosperity Bancshares, expanding their footprint in West Texas. This regional diversification can mitigate risks associated with geographic concentration and tap into new customer bases in growing markets. The increase in noninterest income by 18.4% compared to the previous quarter, largely due to gains from the Visa Class B-1 stock exchange, also highlights the company's knack for leveraging strategic opportunities to enhance financial performance.
Retail investors should note the increase in nonperforming assets to 0.25% from 0.18% a year ago, which although still low, warrants monitoring. The company's strategy to maintain sound asset quality and focus on technology investments reinforces its forward-looking approach. Long-term, the expansion and consistent financial performance underpin a stable growth trajectory, benefitting patient stakeholders.
The merger activities undertaken by Prosperity Bancshares, including the Lone Star State Bancshares integration, involve complex legal and regulatory considerations. The issuance of 2,376,182 shares of Prosperity common stock plus approximately $64.1 million in cash for the Lone Star merger demonstrates adherence to regulatory frameworks and a balanced approach to using both stock and cash for acquisitions. This type of strategic decision-making helps in managing dilution risks and maintaining shareholder value.
For investors, understanding the legal intricacies and successful regulatory navigation of these mergers is crucial. The seamless merger and subsequent financial gains illustrate strong legal and regulatory compliance, mitigating risks for shareholders and ensuring smooth operational integration.
- Completed the merger of Lone Star State Bancshares, Inc. on April 1, 2024
- Net income of
$111.6 million $1.17 - Net income of
$116.6 million $1.22 - Net interest margin increased 15 basis points to
2.94% during second quarter 2024 - Loans increased
$1.06 billion 5.0% during second quarter 2024 - Loans, excluding Warehouse Purchase Program loans, increased
$839.1 million 4.1% during second quarter 2024 - Deposits increased
$757.6 million 2.8% during second quarter 2024 - Noninterest-bearing deposits of
$9.7 billion 34.7% of total deposits - Allowance for credit losses on loans and on off-balance sheet credit exposure of
$397.5 million 1.69% (1) - Nonperforming assets remain low at
0.25% of second quarter average interest-earning assets - Repurchased 671 thousand shares of common stock during second quarter 2024, and 1.2 million shares during 2024
The annualized return on second quarter average assets was
"We want to welcome the customers and associates from Lone Star State Bank of
"We are also pleased to report that our net interest income before provision for credit losses was
"We are optimistic about the future and confident in our ability to create meaningful long-term value for our shareholders. Over the last twelve months, we have returned
"
"Prosperity continues to focus on building core customer relationships, maintaining sound asset quality and operating the bank in an efficient manner, while investing in ever-changing technology and product distribution channels. Thank you to all of our customers, shareholders and associates who make this possible," concluded Zalman.
Results of Operations for the Three Months Ended June 30, 2024
For the three months ended June 30, 2024, net income was
Excluding merger related provision and expenses, gain on Visa Class B-1 stock exchange net of investment securities sales, and FDIC special assessment, each net of tax, net income was
Net interest income before provision for credit losses was
The net interest margin on a tax equivalent basis was
Noninterest income was
Noninterest expense was
Results of Operations for the Six Months Ended June 30, 2024
For the six months ended June 30, 2024, net income was
Excluding merger related provision and expenses, gain on Visa Class B-1 stock exchange net of investment securities sales, and FDIC special assessment, each net of tax, net income was
Net interest income before provision for credit losses for the six months ended June 30, 2024 was
The net interest margin on a tax equivalent basis for the six months ended June 30, 2024 was
Noninterest income was
Noninterest expense was
Balance Sheet Information
At June 30, 2024, Prosperity had
Loans were
Deposits were
The table below provides detail on the impact of loans acquired and deposits assumed in the FirstCapital Bank and Lone Star Bank mergers completed on May 1, 2023 and April 1, 2024, respectively:
Balance Sheet Data (at period end) | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Loans acquired (including new production since acquisition date): | ||||||||||||||||||||
FirstCapital Bank | $ | 1,209,936 | $ | 1,302,582 | $ | 1,376,356 | $ | 1,494,378 | $ | 1,590,137 | ||||||||||
Lone Star Bank | 1,084,559 | — | — | — | — | |||||||||||||||
Prosperity Bank | ||||||||||||||||||||
Warehouse Purchase Program loans | 1,081,403 | 864,924 | 822,245 | 912,327 | 1,148,883 | |||||||||||||||
All other loans | 18,944,917 | 19,097,741 | 18,981,937 | 19,026,008 | 18,914,926 | |||||||||||||||
Total loans | $ | 22,320,815 | $ | 21,265,247 | $ | 21,180,538 | $ | 21,432,713 | $ | 21,653,946 | ||||||||||
Deposits assumed (including new deposits since acquisition date): | ||||||||||||||||||||
FirstCapital Bank | $ | 1,317,130 | $ | 1,449,166 | $ | 1,517,217 | $ | 1,625,691 | $ | 1,481,831 | ||||||||||
Lone Star Bank | 1,187,821 | — | — | — | — | |||||||||||||||
All other deposits | 25,428,135 | 25,726,352 | 25,662,592 | 25,687,109 | 25,899,055 | |||||||||||||||
Total deposits | $ | 27,933,086 | $ | 27,175,518 | $ | 27,179,809 | $ | 27,312,800 | $ | 27,380,886 | ||||||||||
As reflected in the table above, loan and deposit growth was impacted by the FirstCapital Bank and Lone Star Bank mergers.
Excluding loans acquired in these acquisitions and new production at the acquired banking centers since the respective acquisition dates, loans at June 30, 2024 decreased
Excluding deposits assumed in these acquisitions and new deposits generated at the acquired banking centers since the respective acquisition dates, deposits at June 30, 2024 decreased by
Asset Quality
Nonperforming assets totaled
The allowance for credit losses on loans and off-balance sheet credit exposures was
The allowance for credit losses on loans was
Net charge-offs were
Net charge-offs were
Visa Class B-1 Stock Exchange
During the second quarter 2024, Prosperity tendered all of its shares of Visa, Inc. ("Visa") Class B-1 common stock in exchange for a combination of Visa Class B-2 common stock and Visa Class C common stock, pursuant to the terms and subject to the conditions of the public offering of Visa to exchange its Class B-1 common stock for a combination of shares of its Class B-2 common stock and Class C common stock, which expired on May 3, 2024. Prosperity recorded an unrealized gain of
Dividend
Prosperity Bancshares declared a third quarter 2024 cash dividend of
Stock Repurchase Program
On January 16, 2024, Prosperity Bancshares announced a stock repurchase program under which up to
Merger of Lone Star State Bancshares, Inc.
On April 1, 2024, Prosperity completed the merger of
Pursuant to the terms of the definitive agreement, Prosperity issued 2,376,182 shares of Prosperity common stock plus approximately
Merger of First Bancshares of
On May 1, 2023, Prosperity completed the merger (the "FB Merger") of First Bancshares and its wholly owned subsidiary FirstCapital Bank of
Pursuant to the terms of the definitive agreement, Prosperity issued 3,583,370 shares of Prosperity common stock plus approximately
Conference Call
Prosperity's management team will host a conference call on Wednesday, July 24, 2024, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's second quarter 2024 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 8564977.
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 Investor Relations page by selecting "Presentations, Webcasts & Calls" from the menu and following the instructions.
Non-GAAP Financial Measures
Prosperity's management uses certain non-GAAP financial measures to evaluate its performance. Specifically, for internal planning and forecasting purposes, Prosperity reviews each of diluted earnings per share, return on average assets, return on average common equity, and return on average tangible common equity, in each case excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on the sale or write-up of securities, net of tax; return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses to total loans excluding Warehouse Purchase Program loans; the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities; and the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses, and FDIC special assessment. 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 June 30, 2024, Prosperity Bancshares, Inc.® is a
Prosperity currently operates 288 full-service banking locations: 65 in the
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 credit 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 credit losses, changes in deposits, borrowings and the investment securities portfolio, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of any proposed transactions, and statements about the assumptions underlying any such statement. 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. 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); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate, interest rate and commodity price fluctuations; and the effect, impact, potential duration or other implications of weather and climate-related events. 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, 2023, 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.
(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 |
(3) | Includes purchase accounting adjustments of |
(4) | Includes purchase accounting adjustments of |
(5) | Includes purchase accounting adjustments of |
(6) | Includes purchase accounting adjustments of |
Grapevine Main | Tyler-South Broadway | West | ||||||
Bryan | Kiest | Tyler-University | Waller | |||||
Bryan-29th Street | Lake Highlands | |||||||
Bryan-East | ||||||||
Bryan-North | McKinney Eldorado | Winnie | Grant | |||||
McKinney Redbud | Wirt | |||||||
North Carrolton | Aldine | Parkway | ||||||
Park Cities | ||||||||
Plano-West | Beltway | Calallen | Cattlemans | |||||
Preston Forest | Clear Lake | Carmel | Kell | |||||
Preston Parker | Copperfield | Northwest | ||||||
Rock Prairie | Preston Royal | Cypress | Other | |||||
Southwest Parkway | Downtown | Timbergate | Locations | |||||
Tower Point | Eastex | Water Street | ||||||
Wellborn Road | Richardson-West | |||||||
Rosewood Court | First Colony | |||||||
The Colony | Fry Road | Victoria Main | ||||||
Tollroad | Gessner | |||||||
Trinity Mills | Gladebrook | Victoria-North | Cisco | |||||
Congress | Turtle Creek | Grand Parkway | Victoria Salem | |||||
West 15th | Heights | Early | ||||||
West Allen | Highway 6 West | Other | ||||||
Northland | Westmoreland | Little York | Locations | |||||
Medical Center | Alice | |||||||
Research Blvd | Memorial Drive | |||||||
Northside | ||||||||
Colony Creek | ||||||||
Other | Hulen | Pecan Grove | ||||||
Locations | Pin Oak | Edna | ||||||
Museum Place | ||||||||
Renaissance Square | ||||||||
SW Medical Center | ||||||||
Stockyards | Tanglewood | Lone Star West Texas Area | ||||||
The Plaza | Mathis | |||||||
Other | Uptown | Padre Island | ||||||
Locations | Waugh Drive | |||||||
Westheimer | ||||||||
Gruene | West University | |||||||
Woodcreek | ||||||||
Sinton | ||||||||
Katy | Taft | |||||||
Cinco Ranch | ||||||||
Katy- | 23rd Street | |||||||
Expressway | ||||||||
I-240 | ||||||||
Muenster | Memorial | |||||||
The Woodlands-I-45 | Antilley Road | |||||||
The Woodlands-Research Forest | Barrow Street | Other | ||||||
Cypress Street | Locations | |||||||
Other | Judge Ely | Edmond | ||||||
Locations | Mockingbird | Norman | ||||||
Hillside | ||||||||
Soncy | Garnett | |||||||
14th Street Plano | Harvard | |||||||
Abrams Centre | Memorial | |||||||
Addison | Dayton | 4th Street | Sheridan | |||||
Allen | Eustace | 66th Street | S. Harvard | |||||
Groves | 82nd Street | Utica Tower | ||||||
Camp Wisdom | 86th Street | |||||||
98th Street | ||||||||
Liberty | Avenue Q | Other Tulsa Area Locations | ||||||
Magnolia | ||||||||
Magnolia Parkway | North University | |||||||
Texas Tech Student Union | ||||||||
Frisco Warren | Rusk | |||||||
Frisco-West | North | |||||||
Garland | Shadow Creek | Wadley | ||||||
Grapevine | Tyler- | Spring | Wall Street |
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands) | ||||||||||||||||||||
Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||||||||||||||||
Balance Sheet Data (at period end) | ||||||||||||||||||||
Loans held for sale | $ | 9,951 | $ | 6,380 | $ | 5,734 | $ | 10,187 | $ | 10,656 | ||||||||||
Loans held for investment | 21,229,461 | 20,393,943 | 20,352,559 | 20,510,199 | 20,494,407 | |||||||||||||||
Loans held for investment - Warehouse Purchase Program | 1,081,403 | 864,924 | 822,245 | 912,327 | 1,148,883 | |||||||||||||||
Total loans | 22,320,815 | 21,265,247 | 21,180,538 | 21,432,713 | 21,653,946 | |||||||||||||||
Investment securities(A) | 11,702,139 | 12,301,138 | 12,803,896 | 13,192,742 | 13,667,319 | |||||||||||||||
Federal funds sold | 234 | 250 | 260 | 234 | 181 | |||||||||||||||
Allowance for credit losses on loans | (359,852) | (330,219) | (332,362) | (351,495) | (345,209) | |||||||||||||||
Cash and due from banks | 1,507,604 | 1,086,444 | 458,153 | 512,239 | 396,848 | |||||||||||||||
Goodwill | 3,504,107 | 3,396,402 | 3,396,086 | 3,396,459 | 3,383,698 | |||||||||||||||
Core deposit intangibles, net | 74,324 | 60,757 | 63,994 | 67,553 | 71,128 | |||||||||||||||
Other real estate owned | 4,960 | 2,204 | 1,708 | 9,320 | 3,107 | |||||||||||||||
Fixed assets, net | 377,394 | 372,333 | 369,992 | 370,237 | 365,299 | |||||||||||||||
Other assets | 630,569 | 601,964 | 605,612 | 665,682 | 708,814 | |||||||||||||||
Total assets | $ | 39,762,294 | $ | 38,756,520 | $ | 38,547,877 | $ | 39,295,684 | $ | 39,905,131 | ||||||||||
Noninterest-bearing deposits | $ | 9,706,505 | $ | 9,526,535 | $ | 9,776,572 | $ | 10,281,893 | $ | 10,364,921 | ||||||||||
Interest-bearing deposits | 18,226,581 | 17,648,983 | 17,403,237 | 17,030,907 | 17,015,965 | |||||||||||||||
Total deposits | 27,933,086 | 27,175,518 | 27,179,809 | 27,312,800 | 27,380,886 | |||||||||||||||
Other borrowings | 3,900,000 | 3,900,000 | 3,725,000 | 4,250,000 | 4,800,000 | |||||||||||||||
Securities sold under repurchase agreements | 233,689 | 261,671 | 309,277 | 300,714 | 434,160 | |||||||||||||||
Subordinated debentures | — | — | — | — | 3,093 | |||||||||||||||
Allowance for credit losses on off-balance sheet credit exposures | 37,646 | 36,503 | 36,503 | 36,503 | 36,503 | |||||||||||||||
Other liabilities | 374,429 | 278,284 | 217,958 | 362,990 | 282,373 | |||||||||||||||
Total liabilities | 32,478,850 | 31,651,976 | 31,468,547 | 32,263,007 | 32,937,015 | |||||||||||||||
Shareholders' equity(B) | 7,283,444 | 7,104,544 | 7,079,330 | 7,032,677 | 6,968,116 | |||||||||||||||
Total liabilities and equity | $ | 39,762,294 | $ | 38,756,520 | $ | 38,547,877 | $ | 39,295,684 | $ | 39,905,131 | ||||||||||
(A) | Includes |
(B) | Includes |
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands) | ||||||||||||||||||||||||||||
Three Months Ended | Year-to-Date | |||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||||||||||||||||
Income Statement Data | ||||||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||
Loans | $ | 336,428 | $ | 306,228 | $ | 306,562 | $ | 308,678 | $ | 286,638 | $ | 642,656 | $ | 533,756 | ||||||||||||||
Securities(C) | 62,428 | 66,421 | 68,077 | 69,987 | 72,053 | 128,849 | 145,238 | |||||||||||||||||||||
Federal funds sold and other earning assets | 14,095 | 9,265 | 1,793 | 1,689 | 1,757 | 23,360 | 8,763 | |||||||||||||||||||||
Total interest income | 412,951 | 381,914 | 376,432 | 380,354 | 360,448 | 794,865 | 687,757 | |||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Deposits | 106,124 | 92,692 | 84,969 | 76,069 | 63,964 | 198,816 | 111,307 | |||||||||||||||||||||
Other borrowings | 46,282 | 48,946 | 52,386 | 62,190 | 57,351 | 95,228 | 91,747 | |||||||||||||||||||||
Securities sold under repurchase agreements | 1,759 | 2,032 | 2,094 | 2,533 | 2,674 | 3,791 | 4,777 | |||||||||||||||||||||
Subordinated debentures | — | — | — | 38 | — | — | — | |||||||||||||||||||||
Total interest expense | 154,165 | 143,670 | 139,449 | 140,830 | 123,989 | 297,835 | 207,831 | |||||||||||||||||||||
Net interest income | 258,786 | 238,244 | 236,983 | 239,524 | 236,459 | 497,030 | 479,926 | |||||||||||||||||||||
Provision for credit losses | 9,066 | — | — | — | 18,540 | 9,066 | 18,540 | |||||||||||||||||||||
Net interest income after provision for credit losses | 249,720 | 238,244 | 236,983 | 239,524 | 217,919 | 487,964 | 461,386 | |||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||
Nonsufficient funds (NSF) fees | 8,153 | 8,288 | 8,365 | 8,719 | 8,512 | 16,441 | 16,607 | |||||||||||||||||||||
Credit card, debit card and ATM card income | 9,384 | 8,861 | 9,314 | 9,285 | 9,206 | 18,245 | 17,872 | |||||||||||||||||||||
Service charges on deposit accounts | 6,436 | 6,406 | 6,316 | 6,262 | 6,078 | 12,842 | 12,004 | |||||||||||||||||||||
Trust income | 3,601 | 4,156 | 3,360 | 3,326 | 3,358 | 7,757 | 6,583 | |||||||||||||||||||||
Mortgage income | 745 | 610 | 542 | 857 | 661 | 1,355 | 899 | |||||||||||||||||||||
Brokerage income | 1,186 | 1,235 | 1,059 | 1,067 | 1,000 | 2,421 | 2,149 | |||||||||||||||||||||
Bank owned life insurance income | 1,885 | 2,047 | 1,882 | 1,864 | 1,553 | 3,932 | 2,907 | |||||||||||||||||||||
Net (loss) gain on sale or write-down of assets | (903) | (35) | (84) | (45) | 1,994 | (938) | 2,115 | |||||||||||||||||||||
Net gain on sale or write-up of securities | 10,723 | 298 | — | — | — | 11,021 | — | |||||||||||||||||||||
Other noninterest income | 4,793 | 7,004 | 5,814 | 7,408 | 7,326 | 11,797 | 16,818 | |||||||||||||||||||||
Total noninterest income | 46,003 | 38,870 | 36,568 | 38,743 | 39,688 | 84,873 | 77,954 | |||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||
Salaries and benefits | 89,584 | 85,771 | 80,486 | 85,423 | 84,723 | 175,355 | 162,521 | |||||||||||||||||||||
Net occupancy and equipment | 8,915 | 8,623 | 9,093 | 9,464 | 8,935 | 17,538 | 16,960 | |||||||||||||||||||||
Credit and debit card, data processing and software amortization | 11,998 | 10,975 | 10,741 | 10,919 | 10,344 | 22,973 | 19,910 | |||||||||||||||||||||
Regulatory assessments and FDIC insurance | 10,317 | 5,538 | 24,940 | 5,155 | 5,097 | 15,855 | 10,070 | |||||||||||||||||||||
Core deposit intangibles amortization | 4,156 | 3,237 | 3,559 | 3,576 | 3,167 | 7,393 | 5,541 | |||||||||||||||||||||
Depreciation | 4,836 | 4,686 | 4,607 | 4,585 | 4,658 | 9,522 | 9,091 | |||||||||||||||||||||
Communications | 3,485 | 3,402 | 3,572 | 3,686 | 3,693 | 6,887 | 7,155 | |||||||||||||||||||||
Other real estate expense | 69 | 187 | 165 | 153 | (464) | 256 | (406) | |||||||||||||||||||||
Net (gain) loss on sale or write-down of other real estate | 31 | (138) | 34 | (734) | (33) | (107) | (46) | |||||||||||||||||||||
Merger related expenses | 4,381 | — | 278 | 1,104 | 12,891 | 4,381 | 13,751 | |||||||||||||||||||||
Other noninterest expense | 15,070 | 13,567 | 14,696 | 12,326 | 12,859 | 28,637 | 24,323 | |||||||||||||||||||||
Total noninterest expense | 152,842 | 135,848 | 152,171 | 135,657 | 145,870 | 288,690 | 268,870 | |||||||||||||||||||||
Income before income taxes | 142,881 | 141,266 | 121,380 | 142,610 | 111,737 | 284,147 | 270,470 | |||||||||||||||||||||
Provision for income taxes | 31,279 | 30,840 | 25,904 | 30,402 | 24,799 | 62,119 | 58,838 | |||||||||||||||||||||
Net income available to common shareholders | $ | 111,602 | $ | 110,426 | $ | 95,476 | $ | 112,208 | $ | 86,938 | $ | 222,028 | $ | 211,632 | ||||||||||||||
(C) | Interest income on securities was reduced by net premium amortization of |
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 | |||||||||||||||||||||||||||
Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2023 | ||||||||||||||||||||||
Profitability | ||||||||||||||||||||||||||||
Net income (D) (E) | $ | 111,602 | $ | 110,426 | $ | 95,476 | $ | 112,208 | $ | 86,938 | $ | 222,028 | $ | 211,632 | ||||||||||||||
Basic earnings per share | $ | 1.17 | $ | 1.18 | $ | 1.02 | $ | 1.20 | $ | 0.94 | $ | 2.34 | $ | 2.30 | ||||||||||||||
Diluted earnings per share | $ | 1.17 | $ | 1.18 | $ | 1.02 | $ | 1.20 | $ | 0.94 | $ | 2.34 | $ | 2.30 | ||||||||||||||
Return on average assets (F)(J) | 1.12 | % | 1.13 | % | 0.98 | % | 1.13 | % | 0.89 | % | 1.13 | % | 1.09 | % | ||||||||||||||
Return on average common equity (F)(J) | 6.10 | % | 6.20 | % | 5.39 | % | 6.39 | % | 5.01 | % | 6.15 | % | 6.18 | % | ||||||||||||||
Return on average tangible common equity (F) (G)(J) | 11.81 | % | 12.06 | % | 10.54 | % | 12.58 | % | 9.67 | % | 11.93 | % | 11.97 | % | ||||||||||||||
Tax equivalent net interest margin (D) (E) (H) | 2.94 | % | 2.79 | % | 2.75 | % | 2.72 | % | 2.73 | % | 2.87 | % | 2.83 | % | ||||||||||||||
Efficiency ratio (G) (I)(K) | 51.82 | % | 49.07 | % | 55.61 | % | 48.74 | % | 53.21 | % | 50.49 | % | 48.38 | % | ||||||||||||||
Liquidity and Capital Ratios | ||||||||||||||||||||||||||||
Equity to assets | 18.32 | % | 18.33 | % | 18.37 | % | 17.90 | % | 17.46 | % | 18.32 | % | 17.46 | % | ||||||||||||||
Common equity tier 1 capital | 15.42 | % | 15.75 | % | 15.54 | % | 14.98 | % | 14.49 | % | 15.42 | % | 14.48 | % | ||||||||||||||
Tier 1 risk-based capital | 15.42 | % | 15.75 | % | 15.54 | % | 14.98 | % | 14.49 | % | 15.42 | % | 14.48 | % | ||||||||||||||
Total risk-based capital | 16.67 | % | 17.00 | % | 16.56 | % | 16.05 | % | 15.52 | % | 16.67 | % | 15.51 | % | ||||||||||||||
Tier 1 leverage capital | 10.29 | % | 10.37 | % | 10.39 | % | 10.03 | % | 9.96 | % | 10.29 | % | 9.96 | % | ||||||||||||||
Period end tangible equity to period end tangible assets (G) | 10.24 | % | 10.33 | % | 10.31 | % | 9.96 | % | 9.64 | % | 10.24 | % | 9.64 | % | ||||||||||||||
Other Data | ||||||||||||||||||||||||||||
Weighted-average shares used in computing | ||||||||||||||||||||||||||||
Basic | 95,765 | 93,706 | 93,715 | 93,720 | 92,930 | 94,735 | 92,073 | |||||||||||||||||||||
Diluted | 95,765 | 93,706 | 93,715 | 93,720 | 92,930 | 94,735 | 92,073 | |||||||||||||||||||||
Period end shares outstanding | 95,262 | 93,525 | 93,722 | 93,717 | 93,721 | 95,262 | 93,721 | |||||||||||||||||||||
Cash dividends paid per common share | $ | 0.56 | $ | 0.56 | $ | 0.56 | $ | 0.55 | $ | 0.55 | $ | 1.12 | $ | 1.10 | ||||||||||||||
Book value per common share | $ | 76.46 | $ | 75.96 | $ | 75.54 | $ | 75.04 | $ | 74.35 | $ | 76.46 | $ | 74.35 | ||||||||||||||
Tangible book value per common share (G) | $ | 38.89 | $ | 39.00 | $ | 38.62 | $ | 38.08 | $ | 37.49 | $ | 38.89 | $ | 37.49 | ||||||||||||||
Common Stock Market Price | ||||||||||||||||||||||||||||
High | $ | 66.18 | $ | 68.88 | $ | 68.79 | $ | 63.65 | $ | 63.13 | $ | 68.88 | $ | 78.76 | ||||||||||||||
Low | $ | 57.16 | $ | 60.08 | $ | 49.60 | $ | 52.62 | $ | 55.12 | $ | 57.16 | $ | 55.12 | ||||||||||||||
Period end closing price | $ | 61.14 | $ | 65.78 | $ | 67.73 | $ | 54.58 | $ | 56.48 | $ | 61.14 | $ | 56.48 | ||||||||||||||
Employees – FTE (excluding overtime) | 3,902 | 3,901 | 3,850 | 3,853 | 3,710 | 3,902 | 3,710 | |||||||||||||||||||||
Number of banking centers | 288 | 283 | 285 | 285 | 286 | 288 | 286 | |||||||||||||||||||||
(D) | Includes purchase accounting adjustments for the periods presented as follows: |
Three Months Ended | Year-to-Date | ||||||||||||
Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2023 | |||||||
Loan discount accretion | |||||||||||||
Non-PCD | |||||||||||||
PCD | |||||||||||||
Securities net accretion | |||||||||||||
Time deposits amortization | |||||||||||||
(E) | Using effective tax rate of |
(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 366-day or 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, write-down or write-up of assets and securities. Additionally, taxes are not part of this calculation. |
(J) | For calculations of the annualized returns on average assets, average common equity and average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax 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. |
(K) | For calculations of the efficiency ratio excluding merger related expenses and FDIC special assessment 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.® Financial Highlights (Unaudited) (Dollars in thousands)
| |||||||||||||||||||||||||||||||||||||
YIELD ANALYSIS | Three Months Ended | ||||||||||||||||||||||||||||||||||||
Jun 30, 2024 | Mar 31, 2024 | Jun 30, 2023 | |||||||||||||||||||||||||||||||||||
Average | Interest | Average | (L) | Average | Interest | Average | (L) | Average | Interest | Average | (L) | ||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||||
Loans held for sale | $ | 8,446 | $ | 149 | 7.10 % | $ | 5,467 | $ | 92 | 6.77 % | $ | 3,910 | $ | 67 | 6.87 % | ||||||||||||||||||||||
Loans held for investment | 21,328,824 | 319,361 | 6.02 % | 20,415,316 | 292,673 | 5.77 % | 19,802,751 | 270,688 | 5.48 % | ||||||||||||||||||||||||||||
Loans held for investment - Warehouse Purchase Program | 917,026 | 16,918 | 7.42 % | 720,650 | 13,463 | 7.51 % | 898,768 | 15,883 | 7.09 % | ||||||||||||||||||||||||||||
Total loans | 22,254,296 | 336,428 | 6.08 % | 21,141,433 | 306,228 | 5.83 % | 20,705,429 | 286,638 | 5.55 % | ||||||||||||||||||||||||||||
Investment securities | 12,179,074 | 62,428 | 2.06 % | (M) | 12,693,268 | 66,421 | 2.10 % | (M) | 13,976,818 | 72,053 | 2.07 % | (M) | |||||||||||||||||||||||||
Federal funds sold and other earning assets | 1,026,251 | 14,095 | 5.52 % | 672,840 | 9,265 | 5.54 % | 150,300 | 1,757 | 4.69 % | ||||||||||||||||||||||||||||
Total interest-earning assets | 35,459,621 | 412,951 | 4.68 % | 34,507,541 | 381,914 | 4.45 % | 34,832,547 | 360,448 | 4.15 % | ||||||||||||||||||||||||||||
Allowance for credit losses on loans | (332,904) | (331,708) | (283,594) | ||||||||||||||||||||||||||||||||||
Noninterest-earning assets | 4,822,131 | 4,759,697 | 4,738,673 | ||||||||||||||||||||||||||||||||||
Total assets | $ | 39,948,848 | $ | 38,935,530 | $ | 39,287,626 | |||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 4,839,194 | $ | 9,133 | 0.76 % | $ | 5,143,585 | $ | 8,423 | 0.66 % | $ | 5,147,453 | $ | 3,791 | 0.30 % | ||||||||||||||||||||||
Savings and money market deposits | 9,084,051 | 50,252 | 2.22 % | 8,889,077 | 47,152 | 2.13 % | 9,156,047 | 43,025 | 1.88 % | ||||||||||||||||||||||||||||
Certificates and other time deposits | 4,400,922 | 46,739 | 4.27 % | 3,683,815 | 37,117 | 4.05 % | 2,652,064 | 17,148 | 2.59 % | ||||||||||||||||||||||||||||
Other borrowings | 3,900,000 | 46,282 | 4.77 % | 4,083,132 | 48,946 | 4.82 % | 4,427,914 | 57,351 | 5.20 % | ||||||||||||||||||||||||||||
Securities sold under repurchase agreements | 258,637 | 1,759 | 2.74 % | 296,437 | 2,032 | 2.76 % | 441,303 | 2,674 | 2.43 % | ||||||||||||||||||||||||||||
Subordinated debentures | — | — | — | — | — | — | 1,547 | — | — | ||||||||||||||||||||||||||||
Total interest-bearing liabilities | 22,482,804 | 154,165 | 2.76 % | (N) | 22,096,046 | 143,670 | 2.62 % | (N) | 21,826,328 | 123,989 | 2.28 % | (N) | |||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 9,780,211 | 9,443,249 | 10,274,819 | ||||||||||||||||||||||||||||||||||
Allowance for credit losses on | 36,729 | 36,503 | 30,022 | ||||||||||||||||||||||||||||||||||
Other liabilities | 327,847 | 238,480 | 220,775 | ||||||||||||||||||||||||||||||||||
Total liabilities | 32,627,591 | 31,814,278 | 32,351,944 | ||||||||||||||||||||||||||||||||||
Shareholders' equity | 7,321,257 | 7,121,252 | 6,935,682 | ||||||||||||||||||||||||||||||||||
Total liabilities and | $ | 39,948,848 | $ | 38,935,530 | $ | 39,287,626 | |||||||||||||||||||||||||||||||
Net interest income and margin | $ | 258,786 | 2.94 % | $ | 238,244 | 2.78 % | $ | 236,459 | 2.72 % | ||||||||||||||||||||||||||||
Non-GAAP to GAAP reconciliation: | |||||||||||||||||||||||||||||||||||||
Tax equivalent adjustment | 800 | 808 | 854 | ||||||||||||||||||||||||||||||||||
Net interest income and margin | $ | 259,586 | 2.94 % | $ | 239,052 | 2.79 % | $ | 237,313 | 2.73 % | ||||||||||||||||||||||||||||
(L) | Annualized and based on an actual 366-day or 365-day basis. |
(M) | Yield on securities was impacted by net premium amortization of |
(N) | Total cost of funds, including noninterest bearing deposits, was |
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
| |||||||||||||||||||||||||
YIELD ANALYSIS | Year-to-Date | ||||||||||||||||||||||||
Jun 30, 2024 | Jun 30, 2023 | ||||||||||||||||||||||||
Average | Interest | Average | (O) | Average | Interest | Average | (O) | ||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||
Loans held for sale | $ | 6,957 | $ | 241 | 6.97 % | $ | 3,131 | $ | 105 | 6.76 % | |||||||||||||||
Loans held for investment | 20,872,069 | 612,034 | 5.90 % | 19,064,334 | 507,294 | 5.37 % | |||||||||||||||||||
Loans held for investment - Warehouse Purchase Program | 818,838 | 30,381 | 7.46 % | 759,071 | 26,357 | 7.00 % | |||||||||||||||||||
Total loans | 21,697,864 | 642,656 | 5.96 % | 19,826,536 | 533,756 | 5.43 % | |||||||||||||||||||
Investment securities | 12,436,171 | 128,849 | 2.08 % | (P) | 14,153,681 | 145,238 | 2.07 % | (P) | |||||||||||||||||
Federal funds sold and other earning assets | 849,546 | 23,360 | 5.53 % | 373,931 | 8,763 | 4.73 % | |||||||||||||||||||
Total interest-earning assets | 34,983,581 | 794,865 | 4.57 % | 34,354,148 | 687,757 | 4.04 % | |||||||||||||||||||
Allowance for credit losses on loans | (332,306) | (282,959) | |||||||||||||||||||||||
Noninterest-earning assets | 4,790,888 | 4,667,547 | |||||||||||||||||||||||
Total assets | $ | 39,442,163 | $ | 38,738,736 | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 4,991,390 | $ | 17,556 | 0.71 % | $ | 5,510,530 | $ | 7,583 | 0.28 % | |||||||||||||||
Savings and money market deposits | 8,986,565 | 97,404 | 2.18 % | 9,366,694 | 78,546 | 1.69 % | |||||||||||||||||||
Certificates and other time deposits | 4,042,369 | 83,856 | 4.17 % | 2,350,498 | 25,178 | 2.16 % | |||||||||||||||||||
Other borrowings | 3,991,566 | 95,228 | 4.80 % | 3,661,719 | 91,747 | 5.05 % | |||||||||||||||||||
Securities sold under repurchase agreements | 277,537 | 3,791 | 2.75 % | 434,632 | 4,777 | 2.22 % | |||||||||||||||||||
Subordinated debentures | — | — | — | 774 | — | — | |||||||||||||||||||
Total interest-bearing liabilities | 22,289,427 | 297,835 | 2.69 % | (Q) | 21,324,847 | 207,831 | 1.97 % | (Q) | |||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||
Noninterest-bearing demand deposits | 9,611,730 | 10,332,082 | |||||||||||||||||||||||
Allowance for credit losses on off-balance sheet credit exposures | 36,616 | 29,985 | |||||||||||||||||||||||
Other liabilities | 283,139 | 203,769 | |||||||||||||||||||||||
Total liabilities | 32,220,912 | 31,890,683 | |||||||||||||||||||||||
Shareholders' equity | 7,221,251 | 6,848,053 | |||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 39,442,163 | $ | 38,738,736 | |||||||||||||||||||||
Net interest income and margin | $ | 497,030 | 2.86 % | $ | 479,926 | 2.82 % | |||||||||||||||||||
Non-GAAP to GAAP reconciliation: | |||||||||||||||||||||||||
Tax equivalent adjustment | 1,608 | 1,687 | |||||||||||||||||||||||
Net interest income and margin (tax equivalent basis) | $ | 498,638 | 2.87 % | $ | 481,613 | 2.83 % | |||||||||||||||||||
(O) | Based on an actual 366-day or 365-day basis. |
(P) | Yield on securities was impacted by net premium amortization of |
(Q) | Total cost of funds, including noninterest bearing deposits, was |
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | |||||||||||||||
YIELD TREND (R) | |||||||||||||||||||
Interest-Earning Assets: | |||||||||||||||||||
Loans held for sale | 7.10 | % | 6.77 | % | 7.47 | % | 6.54 | % | 6.87 | % | |||||||||
Loans held for investment | 6.02 | % | 5.77 | % | 5.68 | % | 5.62 | % | 5.48 | % | |||||||||
Loans held for investment - Warehouse | 7.42 | % | 7.51 | % | 7.46 | % | 7.32 | % | 7.09 | % | |||||||||
Total loans | 6.08 | % | 5.83 | % | 5.75 | % | 5.70 | % | 5.55 | % | |||||||||
Investment securities (S) | 2.06 | % | 2.10 | % | 2.07 | % | 2.05 | % | 2.07 | % | |||||||||
Federal funds sold and other earning assets | 5.52 | % | 5.54 | % | 5.68 | % | 5.33 | % | 4.69 | % | |||||||||
Total interest-earning assets | 4.68 | % | 4.45 | % | 4.35 | % | 4.30 | % | 4.15 | % | |||||||||
Interest-Bearing Liabilities: | |||||||||||||||||||
Interest-bearing demand deposits | 0.76 | % | 0.66 | % | 0.56 | % | 0.43 | % | 0.30 | % | |||||||||
Savings and money market deposits | 2.22 | % | 2.13 | % | 2.03 | % | 1.96 | % | 1.88 | % | |||||||||
Certificates and other time deposits | 4.27 | % | 4.05 | % | 3.80 | % | 3.31 | % | 2.59 | % | |||||||||
Other borrowings | 4.77 | % | 4.82 | % | 5.16 | % | 5.28 | % | 5.20 | % | |||||||||
Securities sold under repurchase agreements | 2.74 | % | 2.76 | % | 2.77 | % | 2.58 | % | 2.43 | % | |||||||||
Subordinated debentures | — | — | — | 5.85 | % | — | |||||||||||||
Total interest-bearing liabilities | 2.76 | % | 2.62 | % | 2.58 | % | 2.54 | % | 2.28 | % | |||||||||
Net Interest Margin | 2.94 | % | 2.78 | % | 2.74 | % | 2.71 | % | 2.72 | % | |||||||||
Net Interest Margin (tax equivalent) | 2.94 | % | 2.79 | % | 2.75 | % | 2.72 | % | 2.73 | % | |||||||||
(R) | Annualized and based on average balances on an actual 366-day or 365-day basis. |
(S) | Yield on securities was impacted by net premium amortization of |
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||||||||||||||||
Balance Sheet Averages | ||||||||||||||||||||
Loans held for sale | $ | 8,446 | $ | 5,467 | $ | 9,828 | $ | 9,832 | $ | 3,910 | ||||||||||
Loans held for investment | 21,328,824 | 20,415,316 | 20,370,915 | 20,496,075 | 19,802,751 | |||||||||||||||
Loans held for investment - Warehouse Purchase Program | 917,026 | 720,650 | 770,481 | 972,936 | 898,768 | |||||||||||||||
Total loans | 22,254,296 | 21,141,433 | 21,151,224 | 21,478,843 | 20,705,429 | |||||||||||||||
Investment securities | 12,179,074 | 12,693,268 | 13,074,243 | 13,512,137 | 13,976,818 | |||||||||||||||
Federal funds sold and other earning assets | 1,026,251 | 672,840 | 125,295 | 125,690 | 150,300 | |||||||||||||||
Total interest-earning assets | 35,459,621 | 34,507,541 | 34,350,762 | 35,116,670 | 34,832,547 | |||||||||||||||
Allowance for credit losses on loans | (332,904) | (331,708) | (346,493) | (343,967) | (283,594) | |||||||||||||||
Cash and due from banks | 295,077 | 315,612 | 302,864 | 301,201 | 281,593 | |||||||||||||||
Goodwill | 3,482,448 | 3,396,177 | 3,396,224 | 3,387,293 | 3,291,659 | |||||||||||||||
Core deposit intangibles, net | 59,979 | 62,482 | 65,986 | 69,551 | 48,616 | |||||||||||||||
Other real estate | 3,071 | 2,319 | 4,781 | 6,301 | 2,712 | |||||||||||||||
Fixed assets, net | 377,369 | 372,458 | 370,900 | 367,814 | 357,593 | |||||||||||||||
Other assets | 604,187 | 610,649 | 670,187 | 697,176 | 756,500 | |||||||||||||||
Total assets | $ | 39,948,848 | $ | 38,935,530 | $ | 38,815,211 | $ | 39,602,039 | $ | 39,287,626 | ||||||||||
Noninterest-bearing deposits | $ | 9,780,211 | $ | 9,443,249 | $ | 9,960,240 | $ | 10,269,162 | $ | 10,274,819 | ||||||||||
Interest-bearing demand deposits | 4,839,194 | 5,143,585 | 4,822,698 | 4,768,485 | 5,147,453 | |||||||||||||||
Savings and money market deposits | 9,084,051 | 8,889,077 | 8,815,892 | 8,977,824 | 9,156,047 | |||||||||||||||
Certificates and other time deposits | 4,400,922 | 3,683,815 | 3,442,115 | 3,172,178 | 2,652,064 | |||||||||||||||
Total deposits | 28,104,378 | 27,159,726 | 27,040,945 | 27,187,649 | 27,230,383 | |||||||||||||||
Other borrowings | 3,900,000 | 4,083,132 | 4,028,263 | 4,671,449 | 4,427,914 | |||||||||||||||
Securities sold under repurchase agreements | 258,637 | 296,437 | 300,317 | 389,149 | 441,303 | |||||||||||||||
Subordinated debentures | — | — | — | 2,578 | 1,547 | |||||||||||||||
Allowance for credit losses on off-balance sheet credit exposures | 36,729 | 36,503 | 36,503 | 36,504 | 30,022 | |||||||||||||||
Other liabilities | 327,847 | 238,480 | 323,344 | 290,217 | 220,775 | |||||||||||||||
Shareholders' equity | 7,321,257 | 7,121,252 | 7,085,839 | 7,024,493 | 6,935,682 | |||||||||||||||
Total liabilities and equity | $ | 39,948,848 | $ | 38,935,530 | $ | 38,815,211 | $ | 39,602,039 | $ | 39,287,626 | ||||||||||
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) | |||||||||||||||
Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | |||||||||||
Period End Balances | |||||||||||||||
Loan Portfolio | |||||||||||||||
Commercial and industrial | 9.1 % | 9.1 % | 9.2 % | 10.1 % | 10.5 % | ||||||||||
Warehouse purchase program | 1,081,403 | 4.8 % | 864,924 | 4.1 % | 822,245 | 3.9 % | 912,327 | 4.3 % | 1,148,883 | 5.3 % | |||||
Construction, land development and other land loans | 2,828,372 | 12.7 % | 2,876,588 | 13.5 % | 3,076,591 | 14.5 % | 3,200,479 | 14.9 % | 3,215,016 | 14.8 % | |||||
1-4 family residential | 7,496,485 | 33.6 % | 7,331,251 | 34.5 % | 7,207,226 | 34.0 % | 7,032,593 | 32.8 % | 6,780,813 | 31.3 % | |||||
Home equity | 930,428 | 4.2 % | 950,169 | 4.5 % | 960,852 | 4.5 % | 969,498 | 4.5 % | 977,070 | 4.5 % | |||||
Commercial real estate (includes multi-family residential) | 5,961,884 | 26.7 % | 5,631,460 | 26.5 % | 5,662,948 | 26.7 % | 5,606,837 | 26.2 % | 5,676,526 | 26.2 % | |||||
Agriculture (includes farmland) | 1,037,361 | 4.6 % | 813,092 | 3.8 % | 816,043 | 3.9 % | 801,933 | 3.7 % | 804,376 | 3.7 % | |||||
Consumer and other | 340,611 | 1.5 % | 326,915 | 1.5 % | 329,593 | 1.6 % | 306,018 | 1.4 % | 305,207 | 1.4 % | |||||
Energy | 620,740 | 2.8 % | 538,314 | 2.5 % | 368,323 | 1.7 % | 449,637 | 2.1 % | 500,435 | 2.3 % | |||||
Total loans | |||||||||||||||
Deposit Types | |||||||||||||||
Noninterest-bearing DDA | 34.7 % | 35.1 % | 36.0 % | 37.6 % | 37.9 % | ||||||||||
Interest-bearing DDA | 4,762,730 | 17.1 % | 4,867,247 | 17.9 % | 5,115,945 | 18.8 % | 4,797,259 | 17.6 % | 4,953,090 | 18.1 % | |||||
Money market | 6,180,769 | 22.1 % | 6,134,221 | 22.6 % | 5,859,701 | 21.6 % | 5,892,505 | 21.6 % | 5,904,160 | 21.5 % | |||||
Savings | 2,765,197 | 9.9 % | 2,830,117 | 10.4 % | 2,881,397 | 10.6 % | 3,005,936 | 11.0 % | 3,179,351 | 11.6 % | |||||
Certificates and other time deposits | 4,517,885 | 16.2 % | 3,817,398 | 14.0 % | 3,546,194 | 13.0 % | 3,335,207 | 12.2 % | 2,979,364 | 10.9 % | |||||
Total deposits | |||||||||||||||
Loan to Deposit Ratio | 79.9 % | 78.3 % | 77.9 % | 78.5 % | 79.1 % | ||||||||||
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Construction Loans | |||||||||||||||||||||||||||||||||||
Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | |||||||||||||||||||||||||||||||
Single family residential construction | $ | 940,381 | 33.2 | % | $ | 1,031,163 | 35.8 | % | $ | 1,088,636 | 35.4 | % | $ | 1,157,016 | 36.1 | % | $ | 1,244,631 | 38.7 | % | |||||||||||||||
Land development | 241,639 | 8.5 | % | 290,243 | 10.1 | % | 367,849 | 12.0 | % | 359,518 | 11.2 | % | 310,199 | 9.7 | % | ||||||||||||||||||||
Raw land | 291,112 | 10.3 | % | 311,265 | 10.8 | % | 328,365 | 10.7 | % | 340,659 | 10.7 | % | 359,228 | 11.2 | % | ||||||||||||||||||||
Residential lots | 222,343 | 7.9 | % | 224,901 | 7.8 | % | 222,591 | 7.2 | % | 216,659 | 6.8 | % | 216,706 | 6.7 | % | ||||||||||||||||||||
Commercial lots | 60,264 | 2.1 | % | 59,691 | 2.1 | % | 155,415 | 5.0 | % | 154,425 | 4.8 | % | 158,278 | 4.9 | % | ||||||||||||||||||||
Commercial construction and other | 1,074,361 | 38.0 | % | 959,687 | 33.4 | % | 914,436 | 29.7 | % | 973,022 | 30.4 | % | 927,025 | 28.8 | % | ||||||||||||||||||||
Net unaccreted discount | (1,728) | (362) | (701) | (820) | (1,051) | ||||||||||||||||||||||||||||||
Total construction loans | $ | 2,828,372 | $ | 2,876,588 | $ | 3,076,591 | $ | 3,200,479 | $ | 3,215,016 | |||||||||||||||||||||||||
Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of June 30, 2024 | ||||||||||||||||||||||||||||
OK City | Other (T) | Total | ||||||||||||||||||||||||||
Collateral Type | ||||||||||||||||||||||||||||
Shopping center/retail | $ | 348,870 | $ | 280,071 | $ | 58,647 | $ | 15,289 | $ | 13,897 | $ | 280,447 | $ | 997,221 | ||||||||||||||
Commercial and industrial buildings | 137,531 | 110,561 | 27,016 | 35,320 | 17,520 | 210,784 | 538,732 | |||||||||||||||||||||
Office buildings | 94,784 | 218,221 | 87,915 | 47,777 | 3,746 | 91,537 | 543,980 | |||||||||||||||||||||
Medical buildings | 80,149 | 17,847 | 1,712 | 43,383 | 31,092 | 61,423 | 235,606 | |||||||||||||||||||||
Apartment buildings | 141,505 | 127,928 | 17,749 | 14,169 | 15,120 | 197,712 | 514,183 | |||||||||||||||||||||
Hotel | 108,891 | 99,805 | 32,910 | 17,775 | — | 161,340 | 420,721 | |||||||||||||||||||||
Other | 176,995 | 57,368 | 36,284 | 8,118 | 1,593 | 82,988 | 363,346 | |||||||||||||||||||||
Total | $ | 1,088,725 | $ | 911,801 | $ | 262,233 | $ | 181,831 | $ | 82,968 | $ | 1,086,231 | $ | 3,613,789 | (U) | |||||||||||||
Acquired Loans | |||||||||||||||||||||||||||||||||||
Non-PCD Loans | PCD Loans | Total Acquired Loans | |||||||||||||||||||||||||||||||||
Balance at | Balance at | Balance at | Balance at | Balance at | Balance at | Balance at | Balance at | Balance at | |||||||||||||||||||||||||||
Loan marks: | |||||||||||||||||||||||||||||||||||
Acquired banks (V) | $ | 345,599 | $ | 245 | $ | (920) | $ | 320,052 | $ | 2,503 | $ | 2,412 | $ | 665,651 | $ | 2,748 | $ | 1,492 | |||||||||||||||||
FirstCapital Bank (W) | 22,648 | 18,436 | 17,210 | 7,790 | 4,858 | 4,305 | 30,438 | 23,294 | 21,515 | ||||||||||||||||||||||||||
Lone Star Bank (X) | 20,378 | — | 17,960 | 4,558 | — | 2,790 | 24,936 | — | 20,750 | ||||||||||||||||||||||||||
Total | 388,625 | 18,681 | 34,250 | 332,400 | 7,361 | 9,507 | 721,025 | 26,042 | 43,757 | ||||||||||||||||||||||||||
Acquired portfolio loan balances: | |||||||||||||||||||||||||||||||||||
Acquired banks (V) | 12,286,159 | 977,286 | 875,474 | 689,573 | 56,982 | 57,417 | 12,975,732 | 1,034,268 | 932,891 | ||||||||||||||||||||||||||
FirstCapital Bank (W) | 1,021,694 | 699,277 | 652,527 | 627,991 | 438,092 | 395,743 | 1,649,685 | 1,137,369 | 1,048,270 | ||||||||||||||||||||||||||
Lone Star Bank (X) | 1,016,128 | — | 919,865 | 59,109 | — | 59,075 | 1,075,237 | — | 978,940 | ||||||||||||||||||||||||||
Total | 14,323,981 | 1,676,563 | 2,447,866 | 1,376,673 | 495,074 | 512,235 | 15,700,654 | (Y) | 2,171,637 | 2,960,101 | |||||||||||||||||||||||||
Acquired portfolio loan | $ | 13,935,356 | $ | 1,657,882 | $ | 2,413,616 | $ | 1,044,273 | $ | 487,713 | $ | 502,728 | $ | 14,979,629 | $ | 2,145,595 | $ | 2,916,344 | |||||||||||||||||
(T) | Includes other MSA and non-MSA regions. |
(U) | Represents a portion of total commercial real estate loans of |
(V) | 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. |
(W) | The FB Merger was completed on May 1, 2023. The FB Merger resulted in the addition of |
(X) | The LSSB Merger was completed on April 1, 2024. The LSSB Merger resulted in the addition of |
(Y) | Actual principal balances acquired. |
Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands) | |||||||||||||||||||||||||||
Three Months Ended | Year-to-Date | ||||||||||||||||||||||||||
Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2023 | |||||||||||||||||||||
Asset Quality | |||||||||||||||||||||||||||
Nonaccrual loans | $ | 84,175 | $ | 78,475 | $ | 68,688 | $ | 59,729 | $ | 57,723 | $ | 84,175 | $ | 57,723 | |||||||||||||
Accruing loans 90 or more days past due | 322 | 3,035 | 2,195 | 397 | 1,744 | 322 | 1,744 | ||||||||||||||||||||
Total nonperforming loans | 84,497 | 81,510 | 70,883 | 60,126 | 59,467 | 84,497 | 59,467 | ||||||||||||||||||||
Repossessed assets | 113 | 97 | 76 | 35 | 153 | 113 | 153 | ||||||||||||||||||||
Other real estate | 4,960 | 2,204 | 1,708 | 9,320 | 3,107 | 4,960 | 3,107 | ||||||||||||||||||||
Total nonperforming assets | $ | 89,570 | $ | 83,811 | $ | 72,667 | $ | 69,481 | $ | 62,727 | $ | 89,570 | $ | 62,727 | |||||||||||||
Nonperforming assets: | |||||||||||||||||||||||||||
Commercial and industrial (includes energy) | $ | 16,340 | $ | 10,199 | $ | 8,957 | $ | 22,219 | $ | 24,027 | $ | 16,340 | $ | 24,027 | |||||||||||||
Construction, land development and other land loans | 4,895 | 15,826 | 17,343 | 8,684 | 4,245 | 4,895 | 4,245 | ||||||||||||||||||||
1-4 family residential (includes home equity) | 33,935 | 30,206 | 26,096 | 23,708 | 19,609 | 33,935 | 19,609 | ||||||||||||||||||||
Commercial real estate (includes multi-family residential) | 31,776 | 23,720 | 18,775 | 13,341 | 13,504 | 31,776 | 13,504 | ||||||||||||||||||||
Agriculture (includes farmland) | 2,550 | 3,714 | 1,460 | 1,511 | 1,284 | 2,550 | 1,284 | ||||||||||||||||||||
Consumer and other | 74 | 146 | 36 | 18 | 58 | 74 | 58 | ||||||||||||||||||||
Total | $ | 89,570 | $ | 83,811 | $ | 72,667 | $ | 69,481 | $ | 62,727 | $ | 89,570 | $ | 62,727 | |||||||||||||
Number of loans/properties | 349 | 319 | 292 | 260 | 241 | 349 | 241 | ||||||||||||||||||||
Allowance for credit losses on loans | $ | 359,852 | $ | 330,219 | $ | 332,362 | $ | 351,495 | $ | 345,209 | $ | 359,852 | $ | 345,209 | |||||||||||||
Net charge-offs (recoveries): | |||||||||||||||||||||||||||
Commercial and industrial (includes energy) | $ | 2,777 | $ | 283 | $ | 16,123 | $ | 1,594 | $ | 160 | $ | 3,060 | $ | (1,312) | |||||||||||||
Construction, land development and other land loans | 109 | (2) | (5) | (5) | 50 | 107 | 37 | ||||||||||||||||||||
1-4 family residential (includes home equity) | 425 | 457 | 20 | (78) | (70) | 882 | (210) | ||||||||||||||||||||
Commercial real estate (includes multi-family residential) | (381) | (17) | 1,590 | 570 | 14,957 | (398) | 14,956 | ||||||||||||||||||||
Agriculture (includes farmland) | 214 | 23 | — | — | (78) | 237 | (84) | ||||||||||||||||||||
Consumer and other | 1,224 | 1,399 | 1,405 | 1,327 | 1,046 | 2,623 | 2,063 | ||||||||||||||||||||
Total | $ | 4,368 | $ | 2,143 | $ | 19,133 | $ | 3,408 | $ | 16,065 | $ | 6,511 | $ | 15,450 | |||||||||||||
Asset Quality Ratios | |||||||||||||||||||||||||||
Nonperforming assets to average interest-earning assets | 0.25 | % | 0.24 | % | 0.21 | % | 0.20 | % | 0.18 | % | 0.26 | % | 0.18 | % | |||||||||||||
Nonperforming assets to loans and other real estate | 0.40 | % | 0.39 | % | 0.34 | % | 0.32 | % | 0.29 | % | 0.40 | % | 0.29 | % | |||||||||||||
Net charge-offs to average loans (annualized) | 0.08 | % | 0.04 | % | 0.36 | % | 0.06 | % | 0.31 | % | 0.06 | % | 0.16 | % | |||||||||||||
Allowance for credit losses on loans to total loans | 1.61 | % | 1.55 | % | 1.57 | % | 1.64 | % | 1.59 | % | 1.61 | % | 1.59 | % | |||||||||||||
Allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans (G) | 1.69 | % | 1.62 | % | 1.63 | % | 1.71 | % | 1.68 | % | 1.69 | % | 1.68 | % | |||||||||||||
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, for internal planning and forecasting purposes, Prosperity reviews each of diluted earnings per share, return on average assets, return on average common equity, and return on average tangible common equity, in each case excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax; return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses to total loans excluding Warehouse Purchase Program loans; the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities; and the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses and FDIC special assessment. In addition, due to the application of purchase accounting, Prosperity uses certain non-GAAP financial measures and ratios that exclude the impact of these items to evaluate its allowance for credit losses to total loans (excluding Warehouse Purchase Program loans). Prosperity has included information below relating to these non-GAAP financial measures for the applicable periods presented.
Three Months Ended | Year-to-Date | |||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||||||||||||||||
Reconciliation of diluted earnings per share to diluted earnings per share excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax: | ||||||||||||||||||||||||||||
Diluted earnings per share (unadjusted) | $ | 1.17 | $ | 1.18 | $ | 1.02 | $ | 1.20 | $ | 0.94 | $ | 2.34 | $ | 2.30 | ||||||||||||||
Net income | $ | 111,602 | $ | 110,426 | $ | 95,476 | $ | 112,208 | $ | 86,938 | $ | 222,028 | $ | 211,632 | ||||||||||||||
Merger related provision for credit losses, net of tax(Z) | 7,162 | — | — | — | 14,647 | 7,162 | 14,647 | |||||||||||||||||||||
Merger related expenses, net of tax(Z) | 3,461 | — | 220 | 872 | 10,184 | 3,461 | 10,863 | |||||||||||||||||||||
FDIC special assessment, net of tax(Z) | 2,807 | — | 15,736 | — | — | 2,807 | — | |||||||||||||||||||||
Net gain on sale or write-up of securities, net of tax(Z) | (8,472) | (235) | — | — | — | (8,707) | — | |||||||||||||||||||||
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z): | $ | 116,560 | $ | 110,191 | $ | 111,432 | $ | 113,080 | $ | 111,769 | $ | 226,751 | $ | 237,142 | ||||||||||||||
Weighted average diluted shares outstanding | 95,765 | 93,706 | 93,715 | 93,720 | 92,930 | 94,735 | 92,073 | |||||||||||||||||||||
Merger related provision for credit losses, net of tax, per diluted | $ | 0.07 | $ | — | $ | — | $ | — | $ | 0.16 | $ | 0.07 | $ | 0.16 | ||||||||||||||
Merger related expenses, net of tax, per diluted common share(Z) | $ | 0.04 | $ | — | $ | — | $ | 0.01 | $ | 0.11 | $ | 0.04 | 0.12 | |||||||||||||||
FDIC special assessment, net of tax, per diluted common share(Z) | $ | 0.03 | $ | — | $ | 0.17 | $ | — | $ | — | $ | 0.03 | $ | — | ||||||||||||||
Net gain on sale or write-up of securities, net of tax, per diluted common share(Z) | $ | (0.09) | $ | — | $ | — | $ | — | $ | — | $ | (0.09) | $ | — | ||||||||||||||
Diluted earnings per share excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:(Z) | $ | 1.22 | $ | 1.18 | $ | 1.19 | $ | 1.21 | $ | 1.21 | $ | 2.39 | $ | 2.58 | ||||||||||||||
Reconciliation of return on average assets to return on average assets excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax: | ||||||||||||||||||||||||||||
Return on average assets (unadjusted) | 1.12 | % | 1.13 | % | 0.98 | % | 1.13 | % | 0.89 | % | 1.13 | % | 1.09 | % | ||||||||||||||
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z): | $ | 116,560 | $ | 110,191 | $ | 111,432 | $ | 113,080 | $ | 111,769 | $ | 226,751 | $ | 237,142 | ||||||||||||||
Average total assets | $ | 39,948,848 | $ | 38,935,530 | $ | 38,815,211 | $ | 39,602,039 | $ | 39,287,626 | $ | 39,442,163 | $ | 38,738,736 | ||||||||||||||
Return on average assets excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax (F) (Z) | 1.17 | % | 1.13 | % | 1.15 | % | 1.14 | % | 1.14 | % | 1.15 | % | 1.22 | % | ||||||||||||||
(Z) Calculated assuming a federal tax rate of | ||||||||||||||||||||||||||||
Three Months Ended | Year-to-Date | |||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||||||||||||||||
Reconciliation of return on average common equity to return on average common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax: | ||||||||||||||||||||||||||||
Return on average common equity (unadjusted) | 6.10 | % | 6.20 | % | 5.39 | % | 6.39 | % | 5.01 | % | 6.15 | % | 6.18 | % | ||||||||||||||
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z): | $ | 116,560 | $ | 110,191 | $ | 111,432 | $ | 113,080 | $ | 111,769 | $ | 226,751 | $ | 237,142 | ||||||||||||||
Average shareholders' equity | $ | 7,321,257 | $ | 7,121,252 | $ | 7,085,839 | $ | 7,024,493 | $ | 6,935,682 | $ | 7,221,251 | $ | 6,848,053 | ||||||||||||||
Return on average common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax (F) (Z) | 6.37 | % | 6.19 | % | 6.29 | % | 6.44 | % | 6.45 | % | 6.28 | % | 6.93 | % | ||||||||||||||
Reconciliation of return on average common equity to return on average tangible common equity: | ||||||||||||||||||||||||||||
Net income | $ | 111,602 | $ | 110,426 | $ | 95,476 | $ | 112,208 | $ | 86,938 | $ | 222,028 | $ | 211,632 | ||||||||||||||
Average shareholders' equity | $ | 7,321,257 | $ | 7,121,252 | $ | 7,085,839 | $ | 7,024,493 | $ | 6,935,682 | $ | 7,221,251 | $ | 6,848,053 | ||||||||||||||
Less: Average goodwill and other intangible assets | (3,542,427) | (3,458,659) | (3,462,210) | (3,456,844) | (3,340,275) | (3,500,542) | (3,311,222) | |||||||||||||||||||||
Average tangible shareholders' equity | $ | 3,778,830 | $ | 3,662,593 | $ | 3,623,629 | $ | 3,567,649 | $ | 3,595,407 | $ | 3,720,709 | $ | 3,536,831 | ||||||||||||||
Return on average tangible common equity (F) | 11.81 | % | 12.06 | % | 10.54 | % | 12.58 | % | 9.67 | % | 11.93 | % | 11.97 | % | ||||||||||||||
Reconciliation of return on average common equity to return on average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax: | ||||||||||||||||||||||||||||
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z): | $ | 116,560 | $ | 110,191 | $ | 111,432 | $ | 113,080 | $ | 111,769 | $ | 226,751 | $ | 237,142 | ||||||||||||||
Average shareholders' equity | $ | 7,321,257 | $ | 7,121,252 | $ | 7,085,839 | $ | 7,024,493 | $ | 6,935,682 | $ | 7,221,251 | $ | 6,848,053 | ||||||||||||||
Less: Average goodwill and other intangible assets | (3,542,427) | (3,458,659) | (3,462,210) | (3,456,844) | (3,340,275) | (3,500,542) | (3,311,222) | |||||||||||||||||||||
Average tangible shareholders' equity | $ | 3,778,830 | $ | 3,662,593 | $ | 3,623,629 | $ | 3,567,649 | $ | 3,595,407 | $ | 3,720,709 | $ | 3,536,831 | ||||||||||||||
Return on average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax (F) (Z) | 12.34 | % | 12.03 | % | 12.30 | % | 12.68 | % | 12.43 | % | 12.19 | % | 13.41 | % | ||||||||||||||
Reconciliation of book value per share to tangible book value per share: | ||||||||||||||||||||||||||||
Shareholders' equity | $ | 7,283,444 | $ | 7,104,544 | $ | 7,079,330 | $ | 7,032,677 | $ | 6,968,116 | $ | 7,283,444 | $ | 6,968,116 | ||||||||||||||
Less: Goodwill and other intangible assets | (3,578,431) | (3,457,159) | (3,460,080) | (3,464,012) | (3,454,826) | (3,578,431) | (3,454,826) | |||||||||||||||||||||
Tangible shareholders' equity | $ | 3,705,013 | $ | 3,647,385 | $ | 3,619,250 | $ | 3,568,665 | $ | 3,513,290 | $ | 3,705,013 | $ | 3,513,290 | ||||||||||||||
Period end shares outstanding | 95,262 | 93,525 | 93,722 | 93,717 | 93,721 | 95,262 | 93,721 | |||||||||||||||||||||
Tangible book value per share | $ | 38.89 | $ | 39.00 | $ | 38.62 | $ | 38.08 | $ | 37.49 | $ | 38.89 | $ | 37.49 | ||||||||||||||
Reconciliation of equity to assets ratio to period end tangible equity to period end tangible assets ratio: | ||||||||||||||||||||||||||||
Tangible shareholders' equity | $ | 3,705,013 | $ | 3,647,385 | $ | 3,619,250 | $ | 3,568,665 | $ | 3,513,290 | $ | 3,705,013 | $ | 3,513,290 | ||||||||||||||
Total assets | $ | 39,762,294 | $ | 38,756,520 | $ | 38,547,877 | $ | 39,295,684 | $ | 39,905,131 | $ | 39,762,294 | $ | 39,905,131 | ||||||||||||||
Less: Goodwill and other intangible assets | (3,578,431) | (3,457,159) | (3,460,080) | (3,464,012) | (3,454,826) | (3,578,431) | (3,454,826) | |||||||||||||||||||||
Tangible assets | $ | 36,183,863 | $ | 35,299,361 | $ | 35,087,797 | $ | 35,831,672 | $ | 36,450,305 | $ | 36,183,863 | $ | 36,450,305 | ||||||||||||||
Period end tangible equity to period end tangible assets ratio | 10.24 | % | 10.33 | % | 10.31 | % | 9.96 | % | 9.64 | % | 10.24 | % | 9.64 | % | ||||||||||||||
Three Months Ended | Year-to-Date | |||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||||||||||||||||
Reconciliation of allowance for credit losses to total loans to allowance for credit losses on loans to total loans excluding Warehouse Purchase Program: | ||||||||||||||||||||||||||||
Allowance for credit losses on loans | $ | 359,852 | $ | 330,219 | $ | 332,362 | $ | 351,495 | $ | 345,209 | $ | 359,852 | $ | 345,209 | ||||||||||||||
Total loans | $ | 22,320,815 | $ | 21,265,247 | $ | 21,180,538 | $ | 21,432,713 | $ | 21,653,946 | $ | 22,320,815 | $ | 21,653,946 | ||||||||||||||
Less: Warehouse Purchase Program loans | (1,081,403) | (864,924) | (822,245) | (912,327) | (1,148,883) | (1,081,403) | (1,148,883) | |||||||||||||||||||||
Total loans less Warehouse Purchase Program | $ | 21,239,412 | $ | 20,400,323 | $ | 20,358,293 | $ | 20,520,386 | $ | 20,505,063 | $ | 21,239,412 | $ | 20,505,063 | ||||||||||||||
Allowance for credit losses on loans to total loans excluding Warehouse Purchase Program | 1.69 | % | 1.62 | % | 1.63 | % | 1.71 | % | 1.68 | % | 1.69 | % | 1.68 | % | ||||||||||||||
Reconciliation of efficiency ratio to efficiency ratio excluding net gains and losses on the sale, write-down or write-up of assets and securities: | ||||||||||||||||||||||||||||
Noninterest expense | $ | 152,842 | $ | 135,848 | $ | 152,171 | $ | 135,657 | $ | 145,870 | $ | 288,690 | $ | 268,870 | ||||||||||||||
Net interest income | $ | 258,786 | $ | 238,244 | $ | 236,983 | $ | 239,524 | $ | 236,459 | $ | 497,030 | $ | 479,926 | ||||||||||||||
Noninterest income | 46,003 | 38,870 | 36,568 | 38,743 | 39,688 | 84,873 | 77,954 | |||||||||||||||||||||
Less: net (loss) gain on sale or write-down of assets | (903) | (35) | (84) | (45) | 1,994 | (938) | 2,115 | |||||||||||||||||||||
Less: net gain on sale or write-up of securities | 10,723 | 298 | — | — | — | 11,021 | — | |||||||||||||||||||||
Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets and securities | 36,183 | 38,607 | 36,652 | 38,788 | 37,694 | 74,790 | 75,839 | |||||||||||||||||||||
Total income excluding net gains and losses on the sale, write-down or write-up of assets and securities | $ | 294,969 | $ | 276,851 | $ | 273,635 | $ | 278,312 | $ | 274,153 | $ | 571,820 | $ | 555,765 | ||||||||||||||
Efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities | 51.82 | % | 49.07 | % | 55.61 | % | 48.74 | % | 53.21 | % | 50.49 | % | 48.38 | % | ||||||||||||||
Reconciliation of efficiency ratio to efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses and FDIC special assessment: | ||||||||||||||||||||||||||||
Noninterest expense | $ | 152,842 | $ | 135,848 | $ | 152,171 | $ | 135,657 | $ | 145,870 | $ | 288,690 | $ | 268,870 | ||||||||||||||
Less: merger related expenses | 4,381 | — | 278 | 1,104 | 12,891 | 4,381 | 13,751 | |||||||||||||||||||||
Less: FDIC special assessment | 3,554 | — | 19,919 | — | — | 3,554 | — | |||||||||||||||||||||
Noninterest expense excluding merger related expenses and FDIC | $ | 144,907 | $ | 135,848 | $ | 131,974 | $ | 134,553 | $ | 132,979 | $ | 280,755 | $ | 255,119 | ||||||||||||||
Net interest income | $ | 258,786 | $ | 238,244 | $ | 236,983 | $ | 239,524 | $ | 236,459 | $ | 497,030 | $ | 479,926 | ||||||||||||||
Noninterest income | 46,003 | 38,870 | 36,568 | 38,743 | 39,688 | 84,873 | 77,954 | |||||||||||||||||||||
Less: net (loss) gain on sale or write down of assets | (903) | (35) | (84) | (45) | 1,994 | (938) | 2,115 | |||||||||||||||||||||
Less: net gain on sale or write-up of securities | 10,723 | 298 | — | — | — | 11,021 | — | |||||||||||||||||||||
Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets and securities | 36,183 | 38,607 | 36,652 | 38,788 | 37,694 | 74,790 | 75,839 | |||||||||||||||||||||
Total income excluding net gains and losses on the sale, write-down or write-up of assets and securities | $ | 294,969 | $ | 276,851 | $ | 273,635 | $ | 278,312 | $ | 274,153 | $ | 571,820 | $ | 555,765 | ||||||||||||||
Efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses and FDIC special assessment | 49.13 | % | 49.07 | % | 48.23 | % | 48.35 | % | 48.51 | % | 49.10 | % | 45.90 | % | ||||||||||||||
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SOURCE Prosperity Bancshares, Inc.
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