Prosperity Bancshares, Inc.® Reports Record Second Quarter Earnings
- 2Q10 Earnings Per Share of $0.68 (diluted)
- Allowance for Credit Losses to Total Loans 1.54%
- Tangible Common Equity Ratio 5.19%
- Non-Performing Assets remain low at 0.27% of Average Earning Assets
HOUSTON, July 23 /PRNewswire-FirstCall/ -- Prosperity Bancshares, Inc.® (Nasdaq: PRSP), the parent company of Prosperity Bank®, reported net income for the quarter ended June 30, 2010 of $31.746 million or $0.68 per diluted common share, an increase in net income of $5.236 million or 19.8%, compared with $26.510 million or $0.57 per diluted common share for the same period in 2009.
"I am very proud of our bank's performance and the support we receive from our board of directors; our associates; and, our newest associates who joined us during the second quarter as a part of our First Bank branch transaction," commented David Zalman, Chairman and Chief Executive Officer. "We are very appreciative of the hard work and dedication our board members and associates have exhibited in helping us achieve the success we are reporting."
"Our financial results may be considered impressive in normal economic times, but, in light of the current economic conditions, we believe this performance is remarkable. In the first half of 2010, we have increased assets and deposits significantly through the acquisition of eighteen full service banking locations from U. S. Bank and First Bank. After consolidations with nearby Prosperity Bank locations, we have enhanced our footprint in both the Houston and Dallas areas. As a part of these transactions, we reviewed and individually selected loans totaling approximately $130 million at the respective acquisition dates from U. S. Bank and First Bank that resulted in an increase in loans outstanding," continued Zalman.
"Our business model continues to produce solid results. Our earnings per share increased 19.3% from the same period last year while our non performing assets totaled only 0.27 percent of average earning assets at June 30, 2010 – one of the lowest levels reported in our industry," continued Zalman.
"While we did not experience a noticeably stronger economy the second quarter, we do see signs of improvement. We remain cautiously optimistic for the second half of the year with a continued focus on organic loan growth and the attraction of new customers who are looking for customer focused bankers," 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, 2010
For the three months ended June 30, 2010, net income was $31.746 million compared with $26.510 million for the same period in 2009. Net income per diluted common share was $0.68 for the three months ended June 30, 2010 and $0.57 for the same period in 2009. Returns on average assets, average common equity and average tangible common equity for the three months ended June 30, 2010 were 1.34%, 9.12% and 28.08%, respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale of securities and assets) was 46.04% for the three months ended June 30, 2010.
Net interest income before provision for credit losses for the quarter ended June 30, 2010 increased 6.7% to $80.600 million compared with $75.521 million during the same period in 2009. The increase was attributable primarily to a 7.9% increase in average earning assets primarily due to the U.S. Bank and First Bank transactions. The net interest margin on a tax equivalent basis decreased to 4.00% for the three months ended June 30, 2010 compared with 4.04% for the same period in 2009.
On a linked quarter basis, the tax equivalent net interest margin decreased twenty basis points to 4.00% for the three months ended June 30, 2010 from 4.20% reported for the three months ended March 31, 2010.
Non-interest income decreased $1.837 million or 12.1% to $13.296 million for the three months ended June 30, 2010 compared with $15.133 million during the same period in 2009. The decrease was mainly attributable to an increase in net loss on the sale of other real estate.
Non-interest expense decreased $1.251 million or 2.8% to $43.049 million for the three months ended June 30, 2010 compared with $44.300 million during the same period in 2009. The decrease was attributable to a reduction in FDIC insurance assessments, partially offset by an increase in salaries and benefits expense. The FDIC imposed an emergency special assessment as of June 30, 2009, which for Prosperity totaled approximately $4.2 million in pre-tax expense or $0.06 per diluted common share after tax. Also included in non-interest expense for the three months ended June 30, 2010 was approximately $600,000 in one-time acquisition expenses relating to the U. S. Bank and First Bank transactions.
Average loans decreased 2.0% or $68.322 million to $3.404 billion for the quarter ended June 30, 2010 compared with $3.472 billion for the same period of 2009. Linked quarter average loans increased 1.8% or $61.285 million from $3.342 billion at March 31, 2010. Average deposits increased 7.8% or $565.973 million to $7.812 billion for the quarter ended June 30, 2010 compared with $7.246 billion for the same period of 2009. Linked quarter average deposits increased 7.7% or $559.170 million from $7.253 billion at March 31, 2010.
Loans at June 30, 2010 were $3.425 billion, a decrease of $26.279 million or 0.8%, compared with $3.451 billion at June 30, 2009. Loans increased 2.3% or $76.657 million on a linked quarter basis compared with loans of $3.348 billion at March 31, 2010. As reflected in the table below, linked quarter loans for the second quarter of 2010 were impacted by the loans acquired with the U.S. Bank and First Bank transactions. Excluding the loans acquired in these transactions, linked quarter loans decreased 0.3%.
Deposits at June 30, 2010 were $7.814 billion, an increase of $556.034 million or 7.7%, compared with $7.258 billion at June 30, 2009. Linked quarter deposits increased $214.950 million or 2.8% from $7.599 billion at March 31, 2010. As reflected in the table below, linked quarter deposits for the second quarter of 2010 were impacted by the deposits assumed with the U.S. Bank and First Bank transactions. Excluding the deposits assumed in these transactions, linked quarter deposits decreased 3.0%.
Balance Sheet Data (at period end) |
June 30, 2010 |
Mar 31, 2010 |
June 30, 2009 |
|
(In thousands) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Loans: |
||||
Acquired with U.S. Bank branches |
30,641 |
33,317 |
0 |
|
Acquired with First Bank branches |
88,039 |
0 |
0 |
|
All other |
3,306,360 |
3,315,066 |
3,451,319 |
|
Total Loans |
$ 3,425,040 |
$ 3,348,383 |
$ 3,451,319 |
|
Deposits: |
||||
Assumed with U.S. Bank branches |
350,890 |
374,508 |
0 |
|
Assumed with First Bank branches |
454,686 |
0 |
0 |
|
All other |
7,008,353 |
7,224,471 |
7,257,895 |
|
Total Deposits |
$ 7,813,929 |
$ 7,598,979 |
$ 7,257,895 |
|
At June 30, 2010, construction loans totaled $514.793 million, consisting of approximately $136 million of single family residential construction loans; $75 million of land development loans; $68 million of raw land loans; $94 million of residential lot loans; $49 million of commercial lot loans; and $93 million of commercial construction and other construction loans. This is a decrease of $24.637 million from construction loans at March 31, 2010.
At June 30, 2010, Prosperity had $9.609 billion in total assets, $7.814 billion in deposits and $3.425 billion in loans. Assets and deposits at June 30, 2010 increased 8.7% and 7.7%, respectively, compared with their level at June 30, 2009 and loans decreased 0.8% compared with their level at June 30, 2009.
Results of operations for the six months ended June 30, 2010
For the six months ended June 30, 2010, net income was $62.744 million compared with $51.988 million for the same period in 2009. Net income per diluted common share was $1.34 for the six months ended June 30, 2010 compared with $1.13 for the same period in 2009. Returns on average assets, average common equity and average tangible common equity for the six months ended June 30, 2010 were 1.37%, 9.09% and 27.65%, respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale of securities and assets) was 44.93% for the six months ended June 30, 2010.
Net interest income before provision for credit losses for the six months ended June 30, 2010 increased $8.773 million or 5.9%, to $158.372 million compared with $149.599 million during the same period in 2009. The increase was attributable primarily to a 3.6% increase in average earning assets.
Non-interest income decreased $3.876 million or 12.9% to $26.274 million for the six months ended June 30, 2010 compared with $30.150 million for the same period in 2009. The decrease was mainly attributable to an increase in net loss on the sale of other real estate and a decrease in service charges on deposit accounts resulting from decreased NSF income.
Non-interest expense decreased $5.549 million or 6.3% to $82.774 million for the six months ended June 30, 2010 compared with $88.323 million for the same period in 2009. The decrease was primarily attributable to a reduction in FDIC insurance assessments. The FDIC imposed an emergency special assessment as of June 30, 2009, which for Prosperity totaled approximately $4.2 million in pre-tax expense or $0.06 per diluted common share after tax.
Asset Quality
Non-performing assets totaled $21.856 million or 0.27% of quarterly average earning assets at June 30, 2010 compared with $19.587 million or 0.26% of quarterly average earning assets at June 30, 2009, and $19.868 million or 0.26% of average earnings assets at March 31, 2010. The allowance for credit losses was 1.54% of total loans at June 30, 2010 compared with 1.23% at June 30, 2009 and 1.55% of total loans at March 31, 2010.
Non-performing assets (In thousands) |
June 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
||||
Amount |
# |
Amount |
# |
Amount |
# |
||
Commercial |
$ 1,670 |
22 |
$ 1,662 |
25 |
$ 1,390 |
19 |
|
Construction |
7,293 |
42 |
8,719 |
42 |
5,622 |
43 |
|
1-4 family (including home equity) |
4,920 |
50 |
3,946 |
36 |
2,383 |
26 |
|
Commercial real estate (including multi-family) |
7,691 |
13 |
5,432 |
12 |
6,834 |
14 |
|
Agriculture and agriculture real estate |
43 |
2 |
4 |
1 |
0 |
0 |
|
Consumer |
239 |
11 |
105 |
10 |
127 |
11 |
|
Total |
$ 21,856 |
140 |
$ 19,868 |
126 |
$ 16,356 |
113 |
|
Net Charge-offs (In thousands) |
Three Months Ended June 30, 2010 |
Three Months Ended Mar 31, 2010 |
Three Months Ended Dec 31, 2009 |
|
Commercial |
$ 602 |
$ 595 |
$ 1,762 |
|
Construction |
255 |
2,962 |
1,009 |
|
1-4 family (including home equity) |
1,015 |
133 |
446 |
|
Commercial RE (including multi-family) |
249 |
546 |
312 |
|
Agriculture |
3 |
(24) |
10 |
|
Consumer |
316 |
169 |
410 |
|
Total |
$ 2,440 |
$ 4,381 |
$ 3,949 |
|
The provision for credit losses was $3.275 million for the three months ended June 30, 2010 compared to $6.900 million for the three months ended June 30, 2009. Net charge offs were $2.440 million for the three months ended June 30, 2010 compared to $3.526 million for the three months ended June 30, 2009.
The provision for credit losses was $7.685 million for the six months ended June 30, 2010 compared to $13.025 million for the six months ended June 30, 2009. Net charge offs were $6.821 million for the six months ended June 30, 2010 compared to $7.383 million for the six months ended June 30, 2009.
Conference Call
Prosperity's management team will host a conference call on Friday, July 23, 2010 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 800-895-0231, 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.
Acquisition of First Bank Branches
On May 1, 2010, Prosperity completed the previously announced acquisition of nineteen (19) Texas retail bank branches of First Bank, a Missouri state-chartered bank. Prosperity Bank paid a premium of 5.5% for approximately $500 million in deposits and purchased approximately $100 million in loans and other assets attributable to the branches.
First Bank's Texas locations were all in the Houston and Dallas metropolitan areas and represented a strategic enhancement to Prosperity's presence in these markets. After the consolidation of locations near existing Prosperity banking centers, Prosperity operates (31) Dallas/Fort Worth area banking centers and sixty (60) Houston area banking centers.
The deposits assumed were primarily core deposits and the $100 million in loans purchased were individually selected by Prosperity from First Bank's loan portfolio associated with the Texas branches and consisted of performing business and consumer-related Texas-based loans.
Acquisition of U. S. Bank's Texas Branches
On March 29, 2010, Prosperity completed the previously announced acquisition of the three (3) Texas retail bank branches of U.S. Bank. The transaction continued Prosperity's strategic growth and expansion of the franchise in Texas. Prosperity Bank paid a premium for approximately $375 million in deposits, as well as purchased certain loans and other assets attributable to the branches.
The three locations acquired by Prosperity were the Texas locations U.S. Bank acquired from the FDIC on October 30, 2009 when U.S. Bank acquired the nine (9) subsidiary banks of FBOP Corporation. The Texas banks were Madisonville State Bank in Madisonville, Texas; Citizens National Bank in Teague, Texas; and North Houston Bank in Houston, Texas.
Prosperity Bancshares, Inc.®
Prosperity Bancshares, Inc.®, a $9.6 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 -
Bryan
Bryan-East
Bryan-North
Caldwell
College Station
Greens Prairie
Madisonville
Navasota
Rock Prairie
Wellborn Road
Central Texas Area -
Austin -
183
Allandale
Cedar Park
Congress
Lakeway
Liberty Hill
Northland
Oak Hill
Parmer Lane
Research Blvd
West Lake
Other Central Texas Locations -
Bastrop
Cuero
Dime Box
Dripping Springs
Elgin
Flatonia
Georgetown
Gonzales
Hallettsville
Kingsland
La Grange
Lexington
New Braunfels
Pleasanton
Round Rock
San Antonio
Schulenburg
Seguin
Smithville
Weimar
Yoakum
Yorktown
Dallas/Fort Worth Area -
Dallas -
Abrams Centre
Balch Springs
Camp Wisdom
Cedar Hill
Central Expressway
East Renner
Frisco
Frisco-West
Independence
Kiest
McKinney
McKinney-Stonebridge
Midway
Preston Forest
Preston Road
Red Oak
Sachse
The Colony
Turtle Creek
Westmoreland
Fort Worth -
Haltom City
Keller
Roanoke
Stockyards
Other Dallas/Fort Worth Locations -
Azle
Ennis
Gainesville
Mesquite
Muenster
Sanger
Waxahachie
East Texas Area -
Athens
Athens-South
Blooming Grove
Canton
Carthage
Corsicana
Crockett
Eustace
Grapeland
Gun Barrel City
Jacksonville
Kerens
Longview
Mount Vernon
Palestine
Rusk
Seven Points
Teague
Tyler
Tyler-University
Winnsboro
Houston Area -
Houston -
Aldine
Allen Parkway
Bellaire
Beltway
Clear Lake
Copperfield
Cypress
Downtown
Eastex
Fairfield
First Colony
Gessner
Gladebrook
Harrisburg
Heights
Highway 6 West
Hillcroft
Little York
Medical Center
Memorial Drive
Northside
Pasadena
Pecan Grove
Piney Point
River Oaks
Royal Oaks
Sugar Land
SW Medical Center
Tanglewood
Uptown
Waugh Drive
West University
Westheimer
Woodcreek
Other Houston Area
Locations -
Angleton
Bay City
Beaumont
Cinco Ranch
Cleveland
East Bernard
El Campo
Dayton
Galveston
Groves
Hempstead
Hitchcock
Katy
Liberty
Magnolia
Mont Belvieu
Nederland
Needville
Shadow Creek
Sweeny
Tomball
Waller
West Columbia
Wharton
Winnie
Wirt
South Texas Area -
Corpus Christi -
Airline
Carmel
Northwest
Saratoga
Water Street
Other South Texas
Locations -
Alice
Aransas Pass
Beeville
Edna
Goliad
Kingsville
Mathis
Palacios
Port Aransas
Port Lavaca
Portland
Rockport
Sinton
Victoria
Victoria-North
"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, 2009 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. ® |
|||||
Three Months Ended |
|||||
June 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
Sept 30, 2009 |
||
Selected Earnings and Per |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Share Data |
|||||
Total interest income |
$ 99,358 |
$ 96,496 |
$ 99,585 |
$ 101,695 |
|
Total interest expense |
18,758 |
18,724 |
19,496 |
24,282 |
|
Net interest income |
80,600 |
77,772 |
80,089 |
77,413 |
|
Provision for credit losses |
3,275 |
4,410 |
8,500 |
7,250 |
|
Net interest income after |
|||||
provision for credit losses |
77,325 |
73,362 |
71,589 |
70,163 |
|
Total non-interest income |
13,296 |
12,978 |
14,711 |
15,236 |
|
Total non-interest expense |
43,049 |
39,725 |
40,176 |
41,201 |
|
Net income before taxes |
47,572 |
46,615 |
46,124 |
44,198 |
|
Federal income taxes |
15,826 |
15,617 |
15,555 |
14,876 |
|
Net income |
$ 31,746 |
$ 30,998 |
$ 30,569 |
$ 29,322 |
|
Basic earnings per share |
$0.68 |
$0.67 |
$0.66 |
$0.64 |
|
Diluted earnings per share |
$0.68 |
$0.66 |
$0.65 |
$0.63 |
|
Period end shares outstanding |
46,622 |
46,575 |
46,541 |
46,153 |
|
Weighted average shares |
|||||
outstanding (basic) |
46,610 |
46,553 |
46,524 |
46,125 |
|
Weighted average shares |
|||||
outstanding (diluted) |
46,854 |
46,858 |
46,800 |
46,347 |
|
Prosperity Bancshares, Inc. ® |
|||||
Three Months Ended Six Months Ended |
|||||
June 30, 2010 |
June 30, 2009 |
June 30, 2010 |
June 30, 2009 |
||
Balance Sheet Averages |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Total loans |
$ 3,404,127 |
$ 3,472,449 |
$ 3,373,654 |
$ 3,501,488 |
|
Investment securities |
4,642,246 |
3,964,766 |
4,411,177 |
3,997,278 |
|
Federal funds sold and |
|||||
other temporary |
|||||
investments |
109,027 |
122,358 |
84,916 |
94,631 |
|
Total earning assets |
8,155,400 |
7,559,573 |
7,869,747 |
7,593,397 |
|
Allowance for credit losses |
(52,726) |
(39,249) |
(52,240) |
(38,240) |
|
Cash and due from banks |
126,601 |
133,739 |
130,549 |
145,232 |
|
Goodwill |
906,269 |
875,236 |
892,145 |
875,601 |
|
Core Deposit Intangibles |
|||||
(CDI) |
33,977 |
41,518 |
34,089 |
39,314 |
|
Other real estate |
16,010 |
13,524 |
14,500 |
10,288 |
|
Fixed assets, net |
164,646 |
150,475 |
156,799 |
137,086 |
|
Other assets |
140,040 |
99,169 |
141,317 |
100,472 |
|
Total assets |
$ 9,490,217 |
$ 8,833,985 |
$ 9,186,906 |
$ 8,863,150 |
|
Non-interest bearing deposits |
$ 1,583,010 |
$ 1,499,888 |
$ 1,514,877 |
$ 1,498,136 |
|
Interest bearing deposits |
6,229,362 |
5,746,511 |
6,019,520 |
5,767,455 |
|
Total deposits |
7,812,372 |
7,246,399 |
7,534,397 |
7,265,591 |
|
Securities sold under |
|||||
repurchase agreements |
83,092 |
92,466 |
77,204 |
88,128 |
|
Federal funds purchased and |
|||||
other borrowings |
44,477 |
28,937 |
38,312 |
55,865 |
|
Junior subordinated |
|||||
debentures |
92,265 |
92,265 |
92,265 |
92,265 |
|
Other liabilities |
65,518 |
78,181 |
64,726 |
80,101 |
|
Shareholders' equity(A) |
1,392,493 |
1,295,737 |
1,380,002 |
1,281,200 |
|
Total liabilities and equity |
$ 9,490,217 |
$ 8,833,985 |
$ 9,186,906 |
$ 8,863,150 |
|
(A) Includes $17,197 and $15,800 in after tax unrealized gains on available for sale securities for |
|||||
Prosperity Bancshares, Inc. ® |
|||||
Three Months Ended Six Months Ended |
|||||
June 30, 2010 |
June 30, 2009 |
June 30, 2010 |
June 30, 2009 |
||
Income Statement Data |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Interest on loans |
$ 52,681 |
$ 55,248 |
$ 104,134 |
$ 111,050 |
|
Interest on securities |
46,603 |
47,450 |
91,617 |
97,178 |
|
Interest on federal funds sold |
|||||
and other temporary |
|||||
investments |
74 |
70 |
103 |
106 |
|
Total interest income |
99,358 |
102,768 |
195,854 |
208,334 |
|
Interest expense - deposits |
17,573 |
25,621 |
35,058 |
55,078 |
|
Interest expense - debentures |
799 |
959 |
1,590 |
2,078 |
|
Interest expense - other |
386 |
667 |
834 |
1,579 |
|
Total interest expense |
18,758 |
27,247 |
37,482 |
58,735 |
|
Net interest income (B) |
80,600 |
75,521 |
158,372 |
149,599 |
|
Provision for credit losses |
3,275 |
6,900 |
7,685 |
13,025 |
|
Net interest income after |
|||||
provision for credit losses |
77,325 |
68,621 |
150,687 |
136,574 |
|
Service charges on |
|||||
deposit accounts |
12,680 |
12,863 |
24,269 |
25,235 |
|
Net gain on sale of assets |
399 |
200 |
399 |
297 |
|
Net (loss) gain on sale of ORE |
(1,689) |
415 |
(1,983) |
437 |
|
Brokered mortgage income |
50 |
140 |
63 |
210 |
|
Other non-interest income |
1,856 |
1,515 |
3,526 |
3,971 |
|
Total non-interest income |
13,296 |
15,133 |
26,274 |
30,150 |
|
Salaries and benefits (C) |
22,431 |
20,494 |
43,543 |
43,142 |
|
CDI amortization |
2,280 |
2,492 |
4,570 |
5,156 |
|
Net occupancy and equipment |
3,708 |
3,514 |
7,142 |
7,492 |
|
Depreciation |
2,147 |
2,069 |
4,153 |
4,070 |
|
Data processing |
|||||
and software amortization |
1,742 |
1,562 |
3,157 |
3,617 |
|
Regulatory assessments and FDIC insurance |
2,801 |
5,771 |
5,410 |
8,752 |
|
Other non-interest expense |
7,940 |
8,398 |
14,799 |
16,094 |
|
Total non-interest expense |
43,049 |
44,300 |
82,774 |
88,323 |
|
Net income before taxes |
47,572 |
39,454 |
94,187 |
78,401 |
|
Federal income taxes |
15,826 |
12,944 |
31,443 |
26,413 |
|
Net income available |
|||||
to common shareholders |
$ 31,746 |
$ 26,510 |
$ 62,744 |
$ 51,988 |
|
(B) Net interest income on a tax equivalent basis would be $81,332 and $76,226 for the |
|||||
(C) Salaries and benefits includes stock-based compensation expense of $692 and $294 |
|||||
Prosperity Bancshares, Inc.® |
|||||
Three Months Ended |
Six Months Ended |
||||
June 30, 2010 |
June 30, 2009 |
June 30, 2010 |
June 30, 2009 |
||
Common Share and |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Other Data |
|||||
Employees - FTE |
1,753 |
1,634 |
1,753 |
1,634 |
|
Book value per share |
$ 30.12 |
$ 28.17 |
$ 30.12 |
$ 28.17 |
|
Tangible book value per share |
$ 9.64 |
$ 8.31 |
$ 9.64 |
$ 8.31 |
|
Period end shares outstanding |
46,622 |
46,109 |
46,622 |
46,109 |
|
Weighted average shares |
|||||
outstanding (basic) |
46,610 |
46,105 |
46,581 |
46,097 |
|
Weighted average shares |
|||||
outstanding (diluted) |
46,854 |
46,225 |
46,857 |
46,146 |
|
Non-performing Assets (at period end) |
|||||
Non-accrual loans |
$ 3,302 |
$ 646 |
$ 3,302 |
$ 646 |
|
Accruing loans 90 or more |
|||||
days past due |
5,761 |
7,497 |
5,761 |
7,497 |
|
Restructured loans |
0 |
0 |
0 |
0 |
|
Total non-performing loans |
9,063 |
8,143 |
9,063 |
8,143 |
|
Repossessed assets |
273 |
343 |
273 |
343 |
|
Other real estate |
12,520 |
11,101 |
12,520 |
11,101 |
|
Total non-performing assets |
$ 21,856 |
$ 19,587 |
$ 21,856 |
$ 19,587 |
|
Allowance for credit losses at |
|||||
end of period |
$ 52,727 |
$ 42,611 |
$ 52,727 |
$ 42,611 |
|
Net charge-offs |
$ 2,440 |
$ 3,526 |
$ 6,821 |
$ 7,383 |
|
Basic earnings per share |
$ 0.68 |
$ 0.57 |
$ 1.35 |
$ 1.13 |
|
Diluted earnings per share |
$ 0.68 |
$ 0.57 |
$ 1.34 |
$ 1.13 |
|
Prosperity Bancshares, Inc.® |
|||||
Three Months Ended |
Six Months Ended |
||||
June 30, 2010 |
June 30, 2009 |
June 30, 2010 |
June 30, 2009 |
||
Performance Ratios |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Return on average |
|||||
assets (annualized) |
1.34% |
1.20% |
1.37% |
1.17% |
|
Return on average common |
|||||
equity (annualized) |
9.12% |
8.18% |
9.09% |
8.12% |
|
Return on average tangible |
|||||
common equity (annualized) |
28.08% |
27.98% |
27.65% |
28.39% |
|
Net interest margin (D) |
|||||
(tax equivalent) (annualized) |
4.00% |
4.04% |
4.09% |
4.01% |
|
Efficiency ratio(E) |
46.04% |
48.98% |
44.93% |
49.22% |
|
Asset Quality Ratios |
|||||
Non-performing assets to |
|||||
average earning assets |
0.27% |
0.26% |
0.28% |
0.26% |
|
Non-performing assets to loans |
|||||
and other real estate |
0.64% |
0.57% |
0.64% |
0.57% |
|
Net charge-offs |
|||||
to average loans |
0.07% |
0.10% |
0.20% |
0.21% |
|
Allowance for credit losses to |
|||||
total loans |
1.54% |
1.23% |
1.54% |
1.23% |
|
Common Stock Market Price |
|||||
High |
$43.66 |
$31.23 |
$43.66 |
$31.23 |
|
Low |
$34.31 |
$26.20 |
$34.31 |
$20.04 |
|
Period end market price |
$34.75 |
$29.83 |
$34.75 |
$29.83 |
|
(D) Net interest margin for all periods presented is calculated on an actual 365 |
|||||
(E) The efficiency ratio is calculated by dividing total non-interest expense |
|||||
Prosperity Bancshares, Inc.® |
|||||||||
June 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
Sept 30, 2009 |
||||||
Loan Portfolio |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||
Commercial |
$ 440,274 |
12.85% |
$ 412,602 |
12.32% |
$ 415,512 |
12.31% |
$ 439,848 |
12.91% |
|
Construction |
514,793 |
15.03% |
539,430 |
16.11% |
557,245 |
16.51% |
564,106 |
16.56% |
|
1-4 family residential |
758,670 |
22.15% |
729,015 |
21.77% |
709,101 |
21.00% |
692,885 |
20.34% |
|
Home equity |
116,071 |
3.39% |
119,754 |
3.58% |
117,661 |
3.48% |
116,873 |
3.43% |
|
Commercial real estate |
1,349,834 |
39.42% |
1,302,357 |
38.90% |
1,339,219 |
39.66% |
1,336,454 |
39.25% |
|
Agriculture |
148,770 |
4.34% |
140,418 |
4.19% |
135,529 |
4.01% |
145,176 |
4.26% |
|
Consumer |
96,628 |
2.82% |
104,807 |
3.13% |
102,436 |
3.03% |
110,795 |
3.25% |
|
Total Loans |
$3,425,040 |
$3,348,383 |
$3,367,703 |
$ 3,406,137 |
|||||
Deposit Types |
|||||||||
Non-interest bearing DDA |
$1,576,727 |
20.18% |
$1,525,079 |
20.07% |
$1,492,612 |
20.56% |
$ 1,473,189 |
20.70% |
|
Interest bearing DDA |
1,359,041 |
17.39% |
1,354,393 |
17.82% |
1,391,133 |
19.17% |
1,066,778 |
14.99% |
|
Money Market |
1,901,149 |
24.33% |
1,807,704 |
23.79% |
1,619,970 |
22.32% |
1,682,345 |
23.63% |
|
Savings |
385,376 |
4.93% |
360,776 |
4.75% |
322,399 |
4.44% |
320,078 |
4.50% |
|
Time < $100 |
1,316,602 |
16.85% |
1,284,271 |
16.90% |
1,208,658 |
16.65% |
1,289,362 |
18.11% |
|
Time > $100 |
1,275,034 |
16.32% |
1,266,756 |
16.67% |
1,223,778 |
16.86% |
1,286,241 |
18.07% |
|
Total Deposits |
$7,813,929 |
$7,598,979 |
$7,258,550 |
$ 7,117,993 |
|||||
Loan to Deposit Ratio |
43.8% |
44.1% |
46.5% |
47.9% |
|||||
Construction Loans |
|||||||||
Single family residential construction |
$ 136,126 |
26.45% |
$ 134,963 |
25.03% |
$ 146,554 |
26.30% |
$ 152,056 |
26.96% |
|
Land development |
74,570 |
14.49% |
76,871 |
14.25% |
89,128 |
15.99% |
76,996 |
13.65% |
|
Raw land |
68,112 |
13.23% |
76,817 |
14.24% |
79,055 |
14.19% |
84,384 |
14.96% |
|
Residential lots |
93,764 |
18.21% |
99,012 |
18.35% |
101,090 |
18.14% |
103,565 |
18.36% |
|
Commercial lots |
49,341 |
9.58% |
49,863 |
9.24% |
51,639 |
9.27% |
48,139 |
8.53% |
|
Commercial |
|||||||||
construction and other |
92,879 |
18.04% |
101,904 |
18.89% |
_ 89,779 |
16.11% |
98,966 |
17.54% |
|
Total Construction Loans |
$ 514,793 |
$ 539,430 |
$ 557,245 |
$ 564,106 |
|||||
Prosperity Bancshares, Inc.® |
||||||
June 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
Sept 30, 2009 |
June 30, 2009 |
||
Balance Sheet Data (at period end) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Total loans |
$ 3,425,040 |
$ 3,348,383 |
$ 3,376,703 |
$ 3,406,137 |
$ 3,451,319 |
|
Investment securities (F) |
4,817,847 |
4,525,506 |
4,118,290 |
4,255,057 |
3,981,109 |
|
Federal funds sold |
823 |
577 |
354 |
264 |
813 |
|
Allowance for credit losses |
(52,727) |
(51,893) |
(51,863) |
(47,312) |
(42,611) |
|
Cash and due from banks |
148,395 |
169,534 |
194,963 |
156,598 |
270,498 |
|
Goodwill |
921,484 |
890,123 |
876,987 |
876,958 |
875,434 |
|
Core deposit intangibles |
33,389 |
33,094 |
35,385 |
37,825 |
40,305 |
|
Other real estate |
12,520 |
12,991 |
7,829 |
12,738 |
11,101 |
|
Fixed assets, net |
161,267 |
152,886 |
148,855 |
149,725 |
149,742 |
|
Other assets |
140,784 |
137,532 |
142,897 |
109,342 |
101,241 |
|
Total assets |
$ 9,608,822 |
$ 9,218,733 |
$ 8,850,400 |
$ 8,957,332 |
$ 8,838,951 |
|
Demand deposits |
$ 1,576,727 |
$ 1,525,079 |
$ 1,492,612 |
$ 1,473,189 |
$ 1,476,378 |
|
Interest bearing deposits |
6,237,202 |
6,073,900 |
5,765,938 |
5,644,804 |
5,781,517 |
|
Total deposits |
7,813,929 |
7,598,979 |
7,258,550 |
7,117,993 |
7,257,895 |
|
Securities sold under |
||||||
repurchase agreements |
93,060 |
68,441 |
72,596 |
100,636 |
96,732 |
|
Federal funds purchased and |
||||||
other borrowings |
154,935 |
15,879 |
26,140 |
253,855 |
28,170 |
|
Junior subordinated |
||||||
debentures |
92,265 |
92,265 |
92,265 |
92,265 |
92,265 |
|
Other liabilities |
50,499 |
65,262 |
49,604 |
65,548 |
64,794 |
|
Total liabilities |
8,204,688 |
7,840,826 |
7,499,155 |
7,630,297 |
7,539,856 |
|
Shareholders' equity (G) |
1,404,134 |
1,377,907 |
1,351,245 |
1,327,035 |
1,299,095 |
|
Total liabilities and equity |
$ 9,608,822 |
$ 9,218,733 |
$ 8,850,400 |
$ 8,957,332 |
$ 8,838,951 |
|
(F) Includes $28,028, $27,710, $25,855, $26,688 and $20,153 in unrealized gains |
||||||
(G) Includes $18,218, $18,011, $16,806, $17,347 and $13,099 in after-tax unrealized |
||||||
Prosperity Bancshares, Inc.® |
||||||
Three Months Ended |
||||||
June 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
Sept 30, 2009 |
June 30, 2009 |
||
Income Statement Data |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Interest on loans |
$ 52,681 |
$ 51,453 |
$ 53,461 |
$ 54,809 |
$ 55,248 |
|
Interest on securities |
46,603 |
45,014 |
46,116 |
46,812 |
47,450 |
|
Interest on federal funds |
||||||
sold and other earning |
||||||
assets |
74 |
29 |
_ 8 |
74 |
70 |
|
Total interest income |
99,358 |
_ 96,496 |
99,585 |
101,695 |
102,768 |
|
Interest expense - deposits |
17,573 |
17,485 |
18,062 |
22,694 |
25,621 |
|
Interest expense - debentures |
799 |
791 |
803 |
879 |
959 |
|
Interest expense - other |
386 |
448 |
__ 631 |
709 |
667 |
|
Total interest expense |
18,758 |
18,724 |
19,496 |
24,282 |
27,247 |
|
Net interest income |
80,600 |
77,772 |
80,089 |
77,413 |
75,521 |
|
Provision for credit losses |
3,275 |
4,410 |
8,500 |
7,250 |
6,900 |
|
Net interest income after |
||||||
provision for credit losses |
77,325 |
73,362 |
71,589 |
70,163 |
68,621 |
|
Service charges on |
||||||
deposits accounts |
12,680 |
11,589 |
12,953 |
13,554 |
12,863 |
|
Net gain (loss) on sale of assets |
399 |
0 |
145 |
(20) |
200 |
|
Net (loss) gain on sale of |
||||||
ORE |
(1,689) |
(294) |
(135) |
115 |
415 |
|
Brokered mortgage income |
50 |
13 |
36 |
59 |
140 |
|
Other non-interest income |
1,856 |
1,670 |
1,712 |
1,528 |
1,515 |
|
Total non-interest income |
13,296 |
12,978 |
14,711 |
15,236 |
15,133 |
|
Salaries and benefits |
22,431 |
21,112 |
19,747 |
21,507 |
20,494 |
|
CDI amortization |
2,280 |
2,290 |
2,441 |
2,479 |
2,492 |
|
Net occupancy and equipment |
3,708 |
3,434 |
3,794 |
3,624 |
3,514 |
|
Depreciation |
2,147 |
2,006 |
2,056 |
2,100 |
2,069 |
|
Data processing and |
||||||
software amortization |
1,742 |
1,415 |
1,386 |
1,446 |
1,562 |
|
Regulatory assessments and FDIC insurance |
2,801 |
2,609 |
2,473 |
2,436 |
5,771 |
|
Other non-interest expense |
7,940 |
6,859 |
8,279 |
7,609 |
8,398 |
|
Total non-interest expense |
43,049 |
39,725 |
40,176 |
41,201 |
44,300 |
|
Net income before taxes |
47,572 |
46,615 |
46,124 |
44,198 |
39,454 |
|
Federal income taxes |
15,826 |
15,617 |
15,555 |
14,876 |
12,944 |
|
Net income available |
||||||
to common shareholders |
$ 31,746 |
$ 30,998 |
$ 30,569 |
$ 29,322 |
$ 26,510 |
|
Prosperity Bancshares, Inc.® |
||||||
Comparative Quarterly |
Three Months Ended |
|||||
Asset Quality, Performance |
June 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
Sept 30, 2009 |
June 30, 2009 |
|
& Capital Ratios |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Return on average |
||||||
assets (annualized) |
1.34% |
1.40% |
1.39% |
1.32% |
1.20% |
|
Return on average common |
||||||
equity (annualized) |
9.12% |
9.07% |
9.11% |
8.93% |
8.18% |
|
Return on average tangible |
||||||
equity (annualized) |
28.08% |
27.22% |
28.50% |
29.34% |
27.98% |
|
Net interest margin |
||||||
(tax equivalent) (annualized) |
4.00% |
4.20% |
4.24% |
4.08% |
4.04% |
|
Employees - FTE |
1,753 |
1,651 |
1,594 |
1,608 |
1,634 |
|
Efficiency ratio |
46.04% |
43.77% |
42.44% |
44.46% |
48.98% |
|
Non-performing assets to |
||||||
average earning assets |
0.27% |
0.26% |
0.22% |
0.29% |
0.26% |
|
Non-performing assets to loans |
||||||
and other real estate |
0.64% |
0.59% |
0.48% |
0.64% |
0.57% |
|
Net charge-offs to |
||||||
average loans |
0.07% |
0.13% |
0.12% |
0.07% |
0.10% |
|
Allowance for credit losses to |
||||||
total loans |
1.54% |
1.55% |
1.54% |
1.39% |
1.23% |
|
Book value per share |
$30.12 |
$29.58 |
$29.03 |
$28.75 |
$28.17 |
|
Tangible book value per share |
$9.64 |
$9.76 |
$9.43 |
$8.93 |
$8.31 |
|
Tier 1 risk-based capital |
12.31% |
12.82% |
12.61% |
11.85% |
11.24% |
|
Total risk-based capital |
13.56% |
14.07% |
13.86% |
13.01% |
12.28% |
|
Tier 1 leverage capital |
6.10% |
6.61% |
6.47% |
6.09% |
5.81% |
|
Tangible equity to tangible |
||||||
assets |
5.19% |
5.48% |
5.53% |
5.13% |
4.84% |
|
Equity to assets |
14.61% |
14.95% |
15.27% |
14.82% |
14.70% |
|
Prosperity Bancshares, Inc.® |
|||||
Three Months Ended June 30, 2010 |
|||||
YIELD ANALYSIS |
Average |
Interest Earned |
Average |
||
Balance |
/ Interest Paid |
Yield/Rate |
|||
Interest Earning Assets: |
|||||
Loans |
$ 3,404,127 |
$ 52,681 |
6.21% |
||
Investment securities |
4,642,246 |
46,603 |
4.02% |
||
Federal funds sold |
|||||
and other temporary investments |
109,027 |
74 |
0.27% |
||
Total interest earning assets |
8,155,400 |
$ 99,358 |
4.89% |
||
Allowance for credit losses |
(52,726) |
||||
Non-interest earning assets |
1,387,543 |
||||
Total assets |
$ 9,490,217 |
||||
Interest Bearing Liabilities: |
|||||
Interest bearing demand deposits |
$ 1,381,215 |
$ 2,517 |
0.73% |
||
Savings and money market deposits |
2,248,950 |
4,292 |
0.77% |
||
Certificates and other time deposits |
2,599,197 |
10,764 |
1.66% |
||
Securities sold under repurchase agreements |
83,092 |
175 |
0.84% |
||
Federal funds purchased and other borrowings |
44,477 |
211 |
1.90% |
||
Junior subordinated debentures |
92,265 |
799 |
3.47% |
||
Total interest bearing liabilities |
6,449,196 |
$ 18,758 |
1.17% |
||
Non-interest bearing liabilities: |
|||||
Non-interest bearing demand deposits |
1,583,010 |
||||
Other liabilities |
65,518 |
||||
Total liabilities |
8,097,724 |
||||
Shareholders' equity |
1,392,493 |
||||
Total liabilities and shareholders' equity |
$ 9,490,217 |
||||
Net Interest Income & Margin |
$ 80,600 |
3.96% |
|||
Net Interest Income & Margin |
|||||
(tax equivalent) |
$ 81,332 |
4.00% |
|||
Prosperity Bancshares, Inc.® |
||||
Three Months Ended June 30, 2009 |
||||
YIELD ANALYSIS |
Average |
Interest Earned |
Average |
|
Balance |
/ Interest Paid |
Yield/Rate |
||
Interest Earning Assets: |
||||
Loans |
$ 3,472,449 |
$ 55,248 |
6.38% |
|
Investment securities |
3,964,766 |
47,450 |
4.79% |
|
Federal funds sold |
||||
and other temporary investments |
122,358 |
70 |
0.23% |
|
Total interest earning assets |
7,559,573 |
$ 102,768 |
5.45% |
|
Allowance for credit losses |
(39,249) |
|||
Non-interest earning assets |
1,313,661 |
|||
Total assets |
$ 8,833,985 |
|||
Interest Bearing Liabilities: |
||||
Interest bearing demand deposits |
$ 1,047,363 |
$ 2,182 |
0.84% |
|
Savings and money market deposits |
1,878,238 |
4,619 |
0.99% |
|
Certificates and other time deposits |
2,820,910 |
18,820 |
2.68% |
|
Securities sold under repurchase agreements |
92,466 |
280 |
1.21% |
|
Federal funds purchased and other borrowings |
28,937 |
387 |
5.36% |
|
Junior subordinated debentures |
92,265 |
959 |
4.17% |
|
Total interest bearing liabilities |
5,960,179 |
$ 27,247 |
1.83% |
|
Non-interest bearing liabilities: |
||||
Non-interest bearing demand deposits |
1,499,888 |
|||
Other liabilities |
78,181 |
|||
Total liabilities |
7,538,248 |
|||
Shareholders' equity |
1,295,737 |
|||
Total liabilities and shareholders' equity |
$ 8,833,985 |
|||
Net Interest Income & Margin |
$ 75,521 |
4.01% |
||
Net Interest Income & Margin |
||||
(tax equivalent) |
$ 76,226 |
4.04% |
||
Prosperity Bancshares, Inc.® |
||||
Six Months Ended June 30, 2010 |
||||
YIELD ANALYSIS |
Average |
Interest Earned |
Average |
|
Balance |
/ Interest Paid |
Yield/Rate |
||
Interest Earning Assets: |
||||
Loans |
$ 3,373,654 |
$ 104,134 |
6.22% |
|
Investment securities |
4,411,177 |
91,617 |
4.15% |
|
Federal funds sold |
||||
and other temporary investments |
84,916 |
103 |
0.24% |
|
Total interest earning assets |
7,869,747 |
$ 195,854 |
5.02% |
|
Allowance for credit losses |
(52,240) |
|||
Non-interest earning assets |
1,369,399 |
|||
Total assets |
$ 9,186,906 |
|||
Interest Bearing Liabilities: |
||||
Interest bearing demand deposits |
$ 1,382,751 |
$ 5,255 |
0.77% |
|
Savings and money market deposits |
2,143,678 |
8,312 |
0.78% |
|
Certificates and other time deposits |
2,493,091 |
21,491 |
1.74% |
|
Securities sold under repurchase agreements |
77,204 |
323 |
0.84% |
|
Federal funds purchased and other borrowings |
38,312 |
511 |
2.69% |
|
Junior subordinated debentures |
92,265 |
$ 1,590 |
3.48% |
|
Total interest bearing liabilities |
6,227,301 |
$ 37,482 |
1.21% |
|
Non-interest bearing liabilities: |
||||
Non-interest bearing demand deposits |
1,514,877 |
|||
Other liabilities |
64,726 |
|||
Total liabilities |
7,806,904 |
|||
Shareholders' equity |
1,380,002 |
|||
Total liabilities and shareholders' equity |
$ 9,186,906 |
|||
Net Interest Income & Margin |
$ 158,372 |
4.06% |
||
Net Interest Income & Margin |
||||
(tax equivalent) |
$ 159,797 |
4.09% |
||
Prosperity Bancshares, Inc.® |
||||
Six Months Ended June 30, 2009 |
||||
YIELD ANALYSIS |
Average |
Interest Earned |
Average |
|
Balance |
/ Interest Paid |
Yield/Rate |
||
Interest Earning Assets: |
||||
Loans |
$ 3,501,488 |
$ 111,050 |
6.40% |
|
Investment securities |
3,997,278 |
97,178 |
4.86% |
|
Federal funds sold |
||||
and other temporary investments |
94,631 |
106 |
0.23% |
|
Total interest earning assets |
7,593,397 |
$ 208,334 |
5.53% |
|
Allowance for credit losses |
(38,240) |
|||
Non-interest earning assets |
1,307,993 |
|||
Total assets |
$ 8,863,150 |
|||
Interest Bearing Liabilities: |
||||
Interest bearing demand deposits |
$ 1,058,122 |
$ 4,304 |
0.82% |
|
Savings and money market deposits |
1,841,147 |
10,676 |
1.17% |
|
Certificates and other time deposits |
2,868,186 |
40,098 |
2.82% |
|
Securities sold under repurchase agreements |
88,128 |
628 |
1.44% |
|
Federal funds purchased and other borrowings |
55,865 |
951 |
3.43% |
|
Junior subordinated debentures |
92,265 |
$ 2,078 |
4.54% |
|
Total interest bearing liabilities |
6,003,713 |
$ 58,735 |
1.97% |
|
Non-interest bearing liabilities: |
||||
Non-interest bearing demand deposits |
1,498,136 |
|||
Other liabilities |
80,101 |
|||
Total liabilities |
7,581,950 |
|||
Shareholders' equity |
1,281,200 |
|||
Total liabilities and shareholders' equity |
$ 8,863,150 |
|||
Net Interest Income & Margin |
$ 149,599 |
3.97% |
||
Net Interest Income & Margin |
||||
(tax equivalent) |
$ 150,985 |
4.01% |
||
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.® |
||||||
Three months ended |
||||||
June 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
Sept 30, 2009 |
June 30, 2009 |
||
Return on average tangible common equity: |
||||||
Net income |
$ 31,746 |
$ 30,998 |
$ 30,569 |
$ 29,322 |
$ 26,510 |
|
Average shareholders' equity |
1,392,493 |
1,367,511 |
1,342,583 |
1,314,011 |
1,295,737 |
|
Less: Average goodwill and other intangible assets |
(940,246) |
(912,065) |
(913,522) |
(914,203) |
(916,754) |
|
Average tangible shareholders' equity |
$ 452,247 |
$ 455,446 |
$ 429,061 |
$ 399,808 |
$ 378,983 |
|
Return on average tangible common equity (annualized): |
28.08% |
27.22% |
28.50% |
29.34% |
27.98% |
|
Tangible book value per share: |
||||||
Shareholders' equity |
$1,404,134 |
$1,377,907 |
$1,351,245 |
$1,327,035 |
$1,299,095 |
|
Less: Goodwill and other intangible assets |
(954,873) |
(923,217) |
(912,372) |
(914,783) |
(915,739) |
|
Tangible shareholders' equity |
$ 449,261 |
$ 454,690 |
$ 438,873 |
$ 412,252 |
$ 383,356 |
|
Period end shares outstanding |
46,622 |
46,575 |
46,541 |
46,153 |
46,109 |
|
Tangible book value per share: |
$ 9.64 |
$ 9.76 |
$ 9.43 |
$ 8.93 |
$ 8.31 |
|
Tangible equity to tangible assets ratio: |
||||||
Tangible shareholders' equity |
$ 449,261 |
$ 454,690 |
$ 438,873 |
$ 412,252 |
$ 383,356 |
|
Total assets |
$9,608,822 |
$9,218,733 |
$8,850,400 |
$8,957,332 |
$8,838,951 |
|
Less: Goodwill and other intangible assets |
(954,873) |
(923,217) |
(912,372) |
(914,783) |
(915,739) |
|
Tangible assets |
$8,653,949 |
$8,295,516 |
$7,938,028 |
$8,042,549 |
$7,923,212 |
|
Tangible equity to tangible assets ratio: |
5.19% |
5.48% |
5.53% |
5.13% |
4.84% |
|
Prosperity Bancshares, Inc.® |
|||
Six Months Ended |
|||
June 30, 2010 |
June 30, 2009 |
||
Return on average tangible common equity: |
|||
Net income |
$ 62,744 |
$ 51,998 |
|
Average shareholders' equity |
1,380,002 |
1,281,200 |
|
Less: Average goodwill and other intangible assets |
(926,234) |
(914,915) |
|
Average tangible shareholders' equity |
$ 453,768 |
$ 366,285 |
|
Return on average tangible common equity (annualized): |
27.65% |
28.39% |
|
Tangible book value per share: |
|||
Shareholders' equity |
$1,404,134 |
$ 1,299,095 |
|
Less: Goodwill and other intangible assets |
(954,873) |
(915,739) |
|
Tangible shareholders' equity |
$ 449,261 |
$ 383,356 |
|
Period end shares outstanding |
46,622 |
46,109 |
|
Tangible book value per share: |
$ 9.64 |
$ 8.31 |
|
Tangible equity to tangible assets ratio: |
|||
Tangible shareholders' equity |
$ 449,261 |
$ 383,356 |
|
Total assets |
$9,608,822 |
$ 8,838,951 |
|
Less: Goodwill and other intangible assets |
(954,873) |
(915,739) |
|
Tangible assets |
$8,653,949 |
$ 7,923,212 |
|
Tangible equity to tangible assets ratio: |
5.19% |
4.84% |
|
SOURCE Prosperity Bancshares, Inc.
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