Attached files
| file | filename |
|---|---|
| 8-K - PROSPERITY BANCSHARES INC | v208656_8k.htm |
|
PRESS
RELEASE
|
For
more information contact:
|
|
Prosperity
Bancshares, Inc.®
|
Dan
Rollins
|
|
Prosperity
Bank Plaza
|
President
and Chief Operating Officer
|
|
4295
San Felipe
|
281.269.7199
|
|
Houston,
Texas 77027
|
dan.rollins@prosperitybanktx.com
|
FOR
IMMEDIATE RELEASE
PROSPERITY
BANCSHARES, INC.®
REPORTS
STRONG 2010
EARNINGS
|
·
|
4Q 2010 Earnings Per Share of
$0.70 (diluted)
|
|
·
|
Non-Performing Assets Declined
to 0.20% of 4Q Average Earning
Assets
|
|
·
|
Total Risk Based Capital is
14.87%
|
|
·
|
Tier 1 Leverage Capital is
6.87%
|
|
·
|
4Q 2010 Loans Increased $71.2
million or 8.3% Annualized
Growth
|
HOUSTON,
January 21, 2011. Prosperity Bancshares, Inc.® NASDAQ:
(PRSP), the parent company of Prosperity Bank®,
reported net income for the quarter ended December 31, 2010 of $32.798 million
or $0.70 per diluted common share, an increase in net income of $2.229 million
or 7.3%, compared with $30.569 million or $0.65 per diluted common share for the
same period in 2009. Prosperity also reported net income for the year
ended December 31, 2010 of $127.708 million or $2.73 per diluted common share,
up 14.2% from 2009 net income of $111.879 million and up 13.3% from 2009 diluted
earnings per common share of $2.41.
“I am
very proud of our performance in 2010,” said David Zalman, Prosperity’s Chairman
and Chief Executive Officer. “Our company’s performance last year set
records for net income and earnings per share. Additionaly, our team
is beginning to see traction on our loan growth initiative.
Our
performance last year confirms our continued belief in building customer
relationships one customer at a time with experienced bankers in the markets we
serve. We are looking forward to 2011 and will maintain our focus on
building shareholder value.
Looking
forward, we believe the current environment provides an excellent opportunity
for our bank. We believe our bank is in an enviable position from almost
every standpoint. We have strong earnings, sound asset quality, 175 banking
locations throughout one of the fastest growing states in the nation along
with
dedicated, experienced customer focused associates.
We intend
to capitalize on the current environment as we continue to solicit new loan
customers while taking care of our existing customer’s growth needs.
We
believe that many of our competitors are limited as to the loans they can make
due to factors such as a concentration in commercial real estate loans, or
asset
quality issues which divert their attention from developing new opportunities.
Our team is actively calling on existing customers and prospects. With
this
focus, we intend to grow in this challenging period,” concluded
Zalman.
Page 1 of
19
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 December 31, 2010
For the
three months ended December 31, 2010, net income was $32.798 million compared
with $30.569 million for the same period in 2009. Net income per
diluted common share was $0.70 for the three months ended December 31, 2010
compared with $0.65 for the same period in 2009. Returns on average assets,
average common equity and average tangible common equity for the three months
ended December 31, 2010 were 1.41%, 9.08% and 26.70%,
respectively. Prosperity’s efficiency ratio (excluding net gains and
losses on the sale of assets) was 44.13% for the three months ended December 31,
2010.
Net
interest income before provision for credit losses for the quarter ended
December 31, 2010 decreased 0.7% to $79.509 million compared with $80.089
million during the same period in 2009. The decrease was attributable primarily
to lower yields on investment securities. The net interest margin on
a tax equivalent basis decreased to 3.99% for the three months ended December
31, 2010 compared with 4.24% for the same period in 2009.
Non-interest
income decreased $806 thousand or 5.5% to $13.905 million for the three months
ended December 31, 2010 compared with $14.711 million for the same period in
2009. The decrease was mainly attributable to an increase in losses
on the sale of other real estate owned (“ORE”).
Non-interest
expense increased $1.051 million or 2.6% to $41.227 million for the fourth
quarter of 2010 compared with $40.176 million for the fourth quarter of
2009. The increase was mainly attributable to increased salaries and
benefits resulting from the First Bank and U.S. Bank acquisitions.
|
Balance
Sheet Data (at period end)
|
Dec
31, 2010
|
Sept
30, 2010
|
Dec
31, 2009
|
|||||||||
|
(In
Thousands)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||
|
Loans:
|
||||||||||||
|
Acquired
with U.S. Bank branches
|
$ | 28,379 | $ | 28,814 | -- | |||||||
|
Acquired
with First Bank branches
|
53,982 | 53,653 | -- | |||||||||
|
All
other
|
3,402,662 | 3,331,352 | 3,376,703 | |||||||||
|
Total
Loans
|
$ | 3,485,023 | $ | 3,413,819 | $ | 3,376,703 | ||||||
|
Deposits:
|
||||||||||||
|
Acquired
with U.S. Bank branches
|
$ | 283,478 | $ | 312,335 | -- | |||||||
|
Acquired
with First Bank branches
|
355,049 | 414,412 | -- | |||||||||
|
All
other
|
6,816,393 | 6,764,833 | 7,258,550 | |||||||||
|
Total
Deposits
|
$ | 7,454,920 | $ | 7,491,580 | $ | 7,258,550 | ||||||
Loans at
December 31, 2010 were $3.485 billion, an increase of $108.320 million or 3.2%,
compared with $3.377 billion at December 31, 2009. Loans increased
2.1% or $71.204 million on a linked quarter basis compared with loans of $3.414
billion at September 30, 2010. As reflected in the table below,
linked quarter loans for the fourth quarter of 2010 were impacted by the loans
acquired in connection with the U.S. Bank and First Bank
acquisitions. Excluding the loans acquired in these acquisitions,
linked quarter loans increased 8.6% on an annualized basis.
Deposits
at December 31, 2010 were $7.455 billion, an increase of $196.370 million or
2.7%, compared with $7.259 billion at December 31, 2009. Linked
quarter deposits decreased $36.660 million or 0.5% from $7.492 billion at
September 30, 2010. As reflected in the table below, linked quarter
deposits for the fourth quarter of 2010 were impacted by the deposits assumed in
connection with the U.S. Bank and First Bank acquisitions. Excluding the
deposits assumed in these acquisitions, linked quarter deposits increased 3.1%
on an annualized basis.
Page 2 of
19
Average
loans increased 0.9% or $32.169 million to $3.422 billion for the quarter ended
December 31, 2010 compared with $3.390 billion for the same period of
2009. Linked quarter average loans increased 0.4% or $13.376 million
from $3.408 billion at September 30, 2010. Average deposits increased 5.1% to
$7.453 billion for the quarter ended December 31, 2010 compared with $7.089
billion for the same period of 2009. Linked quarter average deposits
decreased 2.0% or $155.109 million from $7.608 billion at September 30,
2010.
At
December 31, 2010, construction loans totaled $502.327 million, consisting of
approximately $118 million of single family residential construction loans; $53
million of land development loans; $64 million of raw land loans; $89 million of
residential lot loans; $52 million of commercial lot loans; and $126 million of
commercial construction and other construction loans. This is an
increase of $3.927 million from construction loans at September 30,
2010.
At
December 31, 2010, Prosperity had $9.477 billion in total assets, $3.485 billion
in loans and $7.455 billion in deposits. Assets, loans and deposits at December
31, 2010 increased by 7.1%, 3.2% and 2.7%, respectively, compared with their
level at December 31, 2009.
Results
of operations for the twelve months ended December 31, 2010
For the
twelve months ended December 31, 2010, net income was $127.708 million compared
with $111.879 million for the same period in 2009. Net income per
diluted common share was $2.73 for the twelve months ended December 31, 2010
compared with $2.41 for the same period in 2009.
Returns
on average assets, average common equity and average tangible common equity for
the twelve months ended December 31, 2010 were 1.38%, 9.08% and 27.40%,
respectively. Prosperity’s efficiency ratio (excluding net gains and
losses on the sale of assets) was 44.83% for the twelve months ended December
31, 2010.
Net
interest income before provision for credit losses for the twelve months ended
December 31, 2010 increased $11.047 million or 3.6%, to $318.148 million
compared with $307.101 million during the same period in 2009. The increase was
attributable primarily to a 4.8% increase in average earning assets and lower
deposit pricing.
Non-interest
income decreased $6.264 million or 10.4% to $53.833 million for the twelve
months ended December 31, 2010 compared with $60.097 million for the same period
in 2009. The decrease was mainly attributable to an increase in net
loss on sale of ORE and decreases in service charges on deposit accounts
resulting from a decrease in NSF fees.
Non-interest
expense decreased $3.106 million or 1.8% to $166.594 million for the twelve
months ended December 31, 2010 compared with $169.700 million for the same
period in 2009. The decrease was due primarily to a decrease in FDIC
assessments.
Asset
Quality
Non-performing
assets totaled $15.842 million or 0.20% of average earning assets at December
31, 2010 compared with $16.356 million or 0.22% of average earning assets at
December 31, 2009 and $20.700 million or 0.26% of average earnings assets at
September 30, 2010. Non-performing assets at December 31, 2010
consisted of $4.439 million in non-accrual loans, $189 thousand in accruing
loans 90 or more days past due, approximately $161 thousand in repossessed
assets and $11.053 million in ORE. The allowance for credit losses
was 1.48% of total loans at December 31, 2010, 1.54% at December 31, 2009 and
1.50% of total loans at September 30, 2010.
The
provision for credit losses was $2.900 million for the three months ended
December 31, 2010 and $8.500 million for the three months ended December 31,
2009. Net charge offs were $2.670 million for the three months ended
December 31, 2010 and $3.949 million for the three months ended December 31,
2009.
Page 3 of
19
|
Non-performing
assets
(In
thousands)
|
Dec
31, 2010
|
Sept
30, 2010
|
Dec
31, 2009
|
|||||||||||||||||||||
|
Amount
|
#
|
Amount
|
#
|
Amount
|
#
|
|||||||||||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||||||||||
|
Commercial
|
$ | 1,317 | 17 | $ | 1,446 | 20 | $ | 1,390 | 19 | |||||||||||||||
|
Construction
|
8,469 | 46 | 7,740 | 44 | 5,622 | 43 | ||||||||||||||||||
|
1-4
family (including home equity)
|
3,933 | 38 | 4,024 | 46 | 2,383 | 26 | ||||||||||||||||||
|
Commercial
real estate (including multi-family)
|
2,022 | 6 | 7,383 | 9 | 6,834 | 14 | ||||||||||||||||||
|
Agriculture
|
11 | 1 | 0 | 0 | 0 | 0 | ||||||||||||||||||
|
Consumer
|
90 | 13 | 107 | 15 | 127 | 11 | ||||||||||||||||||
|
Total
|
$ | 15,842 | 121 | $ | 20,700 | 134 | $ | 16,356 | 113 | |||||||||||||||
|
Net
Charge-offs
(In
thousands)
|
Three
Months Ended
Dec
31, 2010
|
Three
Months Ended
Sept
30, 2010
|
Three
Months Ended
Dec
31, 2009
|
|||||||||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||
|
Commercial
|
$ | 855 | $ | 464 | $ | 1,762 | ||||||
|
Construction
|
1,014 | 829 | 1,009 | |||||||||
|
1-4
family (including home equity)
|
314 | 392 | 446 | |||||||||
|
Commercial
real estate (including multi-family)
|
285 | 2,138 | 312 | |||||||||
|
Agriculture
|
-- | (4 | ) | 10 | ||||||||
|
Consumer
|
202 | 554 | 410 | |||||||||
|
Total
|
$ | 2,670 | $ | 4,373 | $ | 3,949 | ||||||
The
provision for credit losses was $13.585 million for the twelve months ended
December 31, 2010, a decrease of $15.190 million compared with $28.775 million
for the twelve months ended December 31, 2009. Net charge offs were
$13.864 million for the twelve months ended December 31, 2010 and $13.881
million for the twelve months ended December 31, 2009.
Conference
Call
Prosperity’s
management team will host a conference call on Friday, January 21, 2011 at 10:30
a.m. Eastern Standard Time (9:30 a.m. Central Standard Time) to discuss
Prosperity’s fourth quarter and full year 2010 earnings. Individuals and
investment professionals may participate in the call by dialing 1-800-895-0198, 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 Investor Relations page by
clicking on the “4th Quarter
Results and Webcast” link.
Acquisition
of First Bank’s Texas Branches
On April
30, 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.
Page 4 of
19
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 $9.5
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.
Page 5 of
19
|
Bryan/College Station Area
-
|
Dallas/Fort
Worth Area -
|
Jacksonville
|
Bay
City
|
|
Kerens
|
Beaumont
|
||
|
Bryan
|
Dallas
-
|
Longview
|
Cinco
Ranch
|
|
Bryan-East
|
Abrams
Centre
|
Mount
Vernon
|
Cleveland
|
|
Bryan-North
|
Balch
Springs
|
Palestine
|
East
Bernard
|
|
Caldwell
|
Camp Wisdom
|
Rusk
|
El
Campo
|
|
College
Station
|
Cedar
Hill
|
Seven
Points
|
Dayton
|
|
Greens
Prairie
|
Central
Expressway
|
Teague
|
Galveston
|
|
Madisonville
|
East
Renner
|
Tyler
|
Groves
|
|
Navasota
|
Frisco
|
Tyler-University
|
Hempstead
|
|
Rock
Prairie
|
Frisco-West
|
Winnsboro
|
Hitchcock
|
|
Wellborn
Road
|
Independence
|
Katy
|
|
|
Kiest
|
Liberty
|
||
|
Central Texas Area -
|
McKinney
|
Houston
Area -
|
Magnolia
|
|
McKinney-Stonebridge
|
Mont
Belvieu
|
||
|
Austin -
|
Midway
|
Houston
-
|
Nederland
|
|
183
|
Preston Forest
|
Aldine
|
Needville
|
|
Allandale
|
Preston
Road
|
Allen
Parkway
|
Shadow
Creek
|
|
Cedar Park
|
Red
Oak
|
Bellaire
|
Sweeny
|
|
Congress
|
Sachse
|
Beltway
|
Tomball
|
|
Lakeway
|
The
Colony
|
Clear Lake
|
Waller
|
|
Liberty
Hill
|
Turtle
Creek
|
Copperfield
|
West
Columbia
|
|
Northland
|
Westmoreland
|
Cypress
|
Wharton
|
|
Oak Hill
|
Downtown
|
Winnie
|
|
|
Parmer Lane
|
Eastex
|
Wirt
|
|
|
Research
Blvd
|
Fort
Worth
-
|
Fairfield
|
|
|
Westlake
|
Haltom
City
|
First
Colony
|
|
|
Keller
|
Gessner
|
South Texas Area -
|
|
|
Roanoke
|
Gladebrook
|
||
|
Other Central
Texas
|
Stockyards
|
Harrisburg
|
Corpus
Christi
-
|
|
Locations -
|
Heights
|
Airline
|
|
|
Bastrop
|
Highway 6
West
|
Carmel
|
|
|
Cuero
|
Other
Dallas/Fort Worth
|
Hillcroft
|
Northwest
|
|
Dime Box
|
Locations
-
|
Little
York
|
Saratoga
|
|
Dripping
Springs
|
Azle
|
Medical Center
|
Water
Street
|
|
Elgin
|
Ennis
|
Memorial
Drive
|
|
|
Flatonia
|
Gainesville
|
Northside
|
Other
South
Texas
|
|
Georgetown
|
Mesquite
|
Pasadena
|
Locations
-
|
|
Gonzales
|
Muenster
|
Pecan
Grove
|
Alice
|
|
Hallettsville
|
Sanger
|
Piney
Point
|
Aransas Pass
|
|
Kingsland
|
Waxahachie
|
River
Oaks
|
Beeville
|
|
La Grange
|
Royal
Oaks
|
Edna
|
|
|
Lexington
|
Sugar Land
|
Goliad
|
|
|
New
Braunfels
|
East
Texas
Area -
|
SW Medical
Center
|
Kingsville
|
|
Pleasanton
|
Athens
|
Tanglewood
|
Mathis
|
|
Round Rock
|
Athens-South
|
Uptown
|
Padre
Island
|
|
San Antonio
|
Blooming
Grove
|
Waugh
Drive
|
Palacios
|
|
Schulenburg
|
Canton
|
West University
|
Port
Lavaca
|
|
Seguin
|
Carthage
|
Westheimer
|
Portland
|
|
Smithville
|
Corsicana
|
Woodcreek
|
Rockport
|
|
Weimar
|
Crockett
|
Sinton
|
|
|
Yoakum
|
Eustace
|
Other
Houston
Area
|
Victoria
|
|
Yorktown
|
Grapeland
|
Locations
-
|
Victoria-North
|
|
Gun Barrel City
|
Angleton
|
“Safe
Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
This release contains, and the remarks by Prosperity’s management on the
conference call may contain, forward-looking statements within the meaning of
the securities laws that are based on current expectations, assumptions,
estimates and projections about Prosperity, and its
subsidiaries. These forward-looking statements are not guarantees of
future performance and are subject to risks and uncertainties, many of which are
outside of Prosperity’s control, that may cause actual results to differ
materially from those expressed or implied by the forward-looking
statements. These risks and uncertainties include but are not limited
to whether Prosperity can: successfully identify acquisition targets and
integrate the businesses of acquired companies and banks; continue to
sustain its current internal growth rate or total growth rate; provide products
and services that appeal to its customers; continue to have access to debt and
equity capital markets; and achieve its sales objectives. Other risks
include, but are not limited to: the possibility that credit quality could
deteriorate; actions of competitors; changes in laws and regulations (including
changes in governmental interpretations of regulations and changes in accounting
standards); a deterioration or downgrade in the credit quality and credit agency
ratings of the securities in Prosperity’s securities portfolio; customer and
consumer demand, including customer and consumer response to marketing;
effectiveness of spending, investments or programs; fluctuations in the cost and
availability of supply chain resources; economic conditions, including currency
rate fluctuations and interest rate fluctuations; weather; and the stock price
volatility associated with “small-cap” companies. These and various
other factors are discussed in Prosperity’s Annual Report on Form 10-K for the
year ended December 31, 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.
Page 6 of
19
Prosperity
Bancshares, Inc.
®
Financial
Highlights
(Dollars
and share amounts in thousands, except per share data)
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
Dec
31, 2010
|
Dec
31, 2009
|
Dec
31, 2010
|
Dec
31, 2009
|
|||||||||||||
|
Selected
Earnings and Per
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||
|
Share
Data
|
||||||||||||||||
|
Total
interest income
|
$ | 92,436 | $ | 99,585 | $ | 384,537 | $ | 409,614 | ||||||||
|
Total
interest expense
|
12,927 | 19,496 | 66,389 | 102,513 | ||||||||||||
|
Net
interest income
|
79,509 | 80,089 | 318,148 | 307,101 | ||||||||||||
|
Provision
for credit losses
|
2,900 | 8,500 | 13,585 | 28,775 | ||||||||||||
|
Net
interest income after
|
||||||||||||||||
|
provision
for credit losses
|
76,609 | 71,589 | 304,563 | 278,326 | ||||||||||||
|
Total
non-interest income
|
13,905 | 14,711 | 53,833 | 60,097 | ||||||||||||
|
Total
non-interest expense
|
41,227 | 40,176 | 166,594 | 169,700 | ||||||||||||
|
Net
income before taxes
|
49,287 | 46,124 | 191,802 | 168,723 | ||||||||||||
|
Federal
income taxes
|
16,489 | 15,555 | 64,094 | 56,844 | ||||||||||||
|
Net
income
|
$ | 32,798 | $ | 30,569 | $ | 127,708 | $ | 111,879 | ||||||||
|
Basic
earnings per share
|
$ | 0.70 | $ | 0.66 | $ | 2.74 | $ | 2.42 | ||||||||
|
Diluted
earnings per share
|
$ | 0.70 | $ | 0.65 | $ | 2.73 | $ | 2.41 | ||||||||
|
Period
end shares outstanding
|
46,684 | 46,541 | 46,684 | 46,541 | ||||||||||||
|
Weighted
average shares
|
||||||||||||||||
|
outstanding
(basic)
|
46,671 | 46,524 | 46,621 | 46,177 | ||||||||||||
|
Weighted
average shares
|
||||||||||||||||
|
outstanding
(diluted)
|
46,818 | 46,800 | 46,832 | 46,354 | ||||||||||||
Page 7 of
19
Prosperity
Bancshares, Inc.
®
Financial
Highlights
(Dollars
in thousands)
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
Dec
31, 2010
|
Dec
31, 2009
|
Dec
31, 2010
|
Dec
31, 2009
|
|||||||||||||
|
Balance
Sheet Averages
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||
|
Total
loans
|
$ | 3,421,698 | $ | 3,389,529 | $ | 3,394,502 | $ | 3,455,761 | ||||||||
|
Investment
securities
|
4,542,433 | 4,152,752 | 4,508,918 | 4,052,989 | ||||||||||||
|
Federal
funds sold and
|
||||||||||||||||
|
other
earning assets
|
14,305 | 13,607 | 48,944 | 77,328 | ||||||||||||
|
Total
earning assets
|
7,978,436 | 7,555,888 | 7,952,364 | 7,586,078 | ||||||||||||
|
Allowance
for credit losses
|
(51,551 | ) | (48,894 | ) | (52,151 | ) | (42,279 | ) | ||||||||
|
Cash
and due from banks
|
133,620 | 131,189 | 130,554 | 137,040 | ||||||||||||
|
Goodwill
|
923,687 | 876,979 | 907,548 | 875,841 | ||||||||||||
|
Core
Deposit Intangibles (CDI)
|
29,822 | 36,543 | 32,532 | 38,543 | ||||||||||||
|
Other
real estate
|
13,121 | 12,308 | 14,490 | 11,710 | ||||||||||||
|
Fixed
assets, net
|
160,177 | 149,649 | 158,667 | 143,562 | ||||||||||||
|
Other
assets
|
133,839 | 105,351 | 134,376 | 101,199 | ||||||||||||
|
Total
assets
|
$ | 9,321,151 | $ | 8,819,013 | $ | 9,278,380 | $ | 8,851,694 | ||||||||
|
Non-interest
bearing deposits
|
$ | 1,661,448 | $ | 1,481,514 | $ | 1,567,676 | $ | 1,488,699 | ||||||||
|
Interest
bearing deposits
|
5,791,726 | 5,607,074 | 5,965,063 | 5,723,316 | ||||||||||||
|
Total
deposits
|
7,453,174 | 7,088,588 | 7,532,739 | 7,212,015 | ||||||||||||
|
Securities
sold under
|
||||||||||||||||
|
repurchase
agreements
|
77,759 | 88,094 | 81,623 | 93,625 | ||||||||||||
|
Federal
funds purchased and
|
||||||||||||||||
|
other
borrowings
|
198,677 | 141,073 | 109,260 | 75,747 | ||||||||||||
|
Junior
subordinated
|
||||||||||||||||
|
debentures
|
92,265 | 92,265 | 92,265 | 92,265 | ||||||||||||
|
Other
liabilities
|
54,429 | 66,410 | 56,334 | 73,293 | ||||||||||||
|
Shareholders'
equity(A)
|
1,444,847 | 1,342,583 | 1,406,159 | 1,304,749 | ||||||||||||
|
Total
liabilities and equity
|
$ | 9,321,151 | $ | 8,819,013 | $ | 9,278,380 | $ | 8,851,694 | ||||||||
|
(A)
Includes $17,516 and $18,216, in after-tax unrealized gains on
available for sale securities for the three month periods ending December
31, 2010 and December 31, 2009, respectively, and $17,693 and
$14,889 for the twelve month periods ending December 31, 2010 and December
31, 2009, respectively.
|
Page 8 of
19
Prosperity
Bancshares, Inc.®
Financial
Highlights
(Dollars
in thousands)
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
Dec
31, 2010
|
Dec
31, 2009
|
Dec
31, 2010
|
Dec
31, 2009
|
|||||||||||||
|
Income
Statement Data
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||
|
Interest
on loans
|
$ | 52,722 | $ | 53,461 | $ | 209,711 | $ | 219,320 | ||||||||
|
Interest
on securities
|
39,708 | 46,116 | 174,707 | 190,106 | ||||||||||||
|
Interest
on federal funds sold and
|
||||||||||||||||
|
other
earning assets
|
6 | 8 | 119 | 188 | ||||||||||||
|
Total
interest income
|
92,436 | 99,585 | 384,537 | 409,614 | ||||||||||||
|
Interest
expense - deposits
|
11,749 | 18,062 | 61,509 | 95,834 | ||||||||||||
|
Interest
expense - debentures
|
803 | 803 | 3,250 | 3,760 | ||||||||||||
|
Interest
expense - other
|
375 | 631 | 1,630 | 2,919 | ||||||||||||
|
Total
interest expense
|
12,927 | 19,496 | 66,389 | 102,513 | ||||||||||||
|
Net
interest income(B)
|
79,509 | 80,089 | 318,148 | 307,101 | ||||||||||||
|
Provision
for credit losses
|
2,900 | 8,500 | 13,585 | 28,775 | ||||||||||||
|
Net
interest income after
|
||||||||||||||||
|
provision
for credit losses
|
76,609 | 71,589 | 304,563 | 278,326 | ||||||||||||
|
Service
charges on
|
||||||||||||||||
|
deposit
accounts
|
12,780 | 12,953 | 50,250 | 51,742 | ||||||||||||
|
Net
gain on sale of assets
|
2 | 145 | 402 | 422 | ||||||||||||
|
Net
(loss) gain on sale of ORE
|
(915 | ) | (135 | ) | (4,262 | ) | 417 | |||||||||
|
Brokered
mortgage income
|
78 | 36 | 205 | 305 | ||||||||||||
|
Other
non-interest income
|
1,960 | 1,712 | 7,238 | 7,211 | ||||||||||||
|
Total
non-interest income
|
13,905 | 14,711 | 53,833 | 60,097 | ||||||||||||
|
Salaries
and benefits(C)
|
21,421 | 19,747 | 86,980 | 84,396 | ||||||||||||
|
CDI
amortization
|
2,172 | 2,441 | 9,016 | 10,076 | ||||||||||||
|
Net
occupancy and equipment
|
3,975 | 3,794 | 15,153 | 14,910 | ||||||||||||
|
Depreciation
|
1,999 | 2,056 | 8,313 | 8,226 | ||||||||||||
|
Data
processing and
|
||||||||||||||||
|
software amortization
|
1,515 | 1,386 | 6,222 | 6,449 | ||||||||||||
|
Regulatory
assessments
and FDIC insurance
|
2,812 | 2,473 | 11,039 | 13,661 | ||||||||||||
|
Other
non-interest expense
|
7,333 | 8,279 | 29,871 | 31,982 | ||||||||||||
|
Total
non-interest expense
|
41,227 | 40,176 | 166,594 | 169,700 | ||||||||||||
|
Net
income before taxes
|
49,287 | 46,124 | 191,802 | 168,723 | ||||||||||||
|
Federal
income taxes
|
16,489 | 15,555 | 64,094 | 56,844 | ||||||||||||
|
Net
income available
|
||||||||||||||||
|
to common shareholders
|
$ | 32,798 | $ | 30,569 | $ | 127,708 | $ | 111,879 | ||||||||
|
(B)
Net interest income on a tax equivalent basis would be $80,238 and $80,770
for the three months ended December 31, 2010 and December 31, 2009,
respectively, and $321,049 and $309,866 for the twelve months ended
December 31, 2010 and December 31, 2009, respectively.
|
||||||||||||||||
|
(C)
Salaries and benefits includes equity compensation expenses of $825 and
$628 for the three months ended December 31, 2010 and December 31, 2009,
respectively, and $3,037 and $1,515 for the twelve months ended December
31, 2010 and December 31, 2009, respectively.
|
||||||||||||||||
Page 9 of
19
Prosperity
Bancshares, Inc.®
Financial
Highlights
(Dollars
and share amounts in thousands, except per share data)
|
As
of and for the
|
As
of and for the
|
|||||||||||||||
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
Dec
31, 2010
|
Dec
31, 2009
|
Dec
31, 2010
|
Dec
31, 2009
|
|||||||||||||
|
Common
Share and
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||
|
Other
Data
|
||||||||||||||||
|
Employees
- FTE
|
1,708 | 1,594 | 1,708 | 1,594 | ||||||||||||
|
Book
value per share
|
$ | 31.11 | $ | 29.03 | $ | 31.11 | $ | 29.03 | ||||||||
|
Tangible
book value per share
|
$ | 10.70 | $ | 9.43 | $ | 10.70 | $ | 9.43 | ||||||||
|
Period
end shares outstanding
|
46,684 | 46,541 | 46,684 | 46,541 | ||||||||||||
|
Weighted
average shares
|
||||||||||||||||
|
outstanding
(basic)
|
46,671 | 46,524 | 46,621 | 46,177 | ||||||||||||
|
Weighted
average shares
|
||||||||||||||||
|
outstanding
(diluted)
|
46,818 | 46,800 | 46,832 | 46,354 | ||||||||||||
|
Non-accrual
loans
|
$ | 4,439 | $ | 6,079 | $ | 4,439 | $ | 6,079 | ||||||||
|
Accruing
loans 90 or more
|
||||||||||||||||
|
days
past due
|
189 | 2,332 | 189 | 2,332 | ||||||||||||
|
Restructured
loans
|
0 | 0 | 0 | 0 | ||||||||||||
|
Total
non-performing loans
|
4,628 | 8,411 | 4,628 | 8,411 | ||||||||||||
|
Repossessed
assets
|
161 | 116 | 161 | 116 | ||||||||||||
|
Other
real estate
|
11,053 | 7,829 | 11,053 | 7,829 | ||||||||||||
|
Total
non-performing assets
|
$ | 15,842 | $ | 16,356 | $ | 15,842 | $ | 16,356 | ||||||||
|
Allowance
for credit losses at
|
||||||||||||||||
|
end
of period
|
$ | 51,584 | $ | 51,863 | $ | 51,584 | $ | 51,863 | ||||||||
|
Net
charge-offs
|
$ | 2,670 | $ | 3,949 | $ | 13,864 | $ | 13,881 | ||||||||
|
Basic
earnings per share
|
$ | 0.70 | $ | 0.66 | $ | 2.74 | $ | 2.42 | ||||||||
|
Diluted
earnings per share
|
$ | 0.70 | $ | 0.65 | $ | 2.73 | $ | 2.41 | ||||||||
Page 10
of 19
Prosperity
Bancshares, Inc.®
Financial
Highlights
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
Dec
31, 2010
|
Dec
31, 2009
|
Dec
31, 2010
|
Dec
31, 2009
|
|||||||||||||
|
Performance
Ratios
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||
|
Return
on average
|
||||||||||||||||
|
assets
(annualized)
|
1.41 | % | 1.39 | % | 1.38 | % | 1.26 | % | ||||||||
|
Return
on average common
|
||||||||||||||||
|
equity
(annualized)
|
9.08 | % | 9.11 | % | 9.08 | % | 8.57 | % | ||||||||
|
Return
on average tangible
|
||||||||||||||||
|
common
equity (annualized)
|
26.70 | % | 28.50 | % | 27.40 | % | 28.66 | % | ||||||||
|
Net
interest margin(D)
|
||||||||||||||||
|
(tax
equivalent) (annualized)
|
3.99 | % | 4.24 | % | 4.04 | % | 4.08 | % | ||||||||
|
Efficiency
ratio(E)
|
44.13 | % | 42.44 | % | 44.83 | % | 46.27 | % | ||||||||
|
Asset
Quality Ratios
|
||||||||||||||||
|
Non-performing
assets to
|
||||||||||||||||
|
average
earning assets
|
0.20 | % | 0.22 | % | 0.20 | % | 0.22 | % | ||||||||
|
Non-performing
assets to loans
|
||||||||||||||||
|
and
other real estate
|
0.45 | % | 0.48 | % | 0.45 | % | 0.48 | % | ||||||||
|
Net
charge-offs
|
||||||||||||||||
|
to
average loans
|
0.08 | % | 0.12 | % | 0.41 | % | 0.40 | % | ||||||||
|
Allowance
for credit losses to
|
||||||||||||||||
|
total
loans
|
1.48 | % | 1.54 | % | 1.48 | % | 1.54 | % | ||||||||
|
Common
Stock Market Price
|
||||||||||||||||
|
High
|
$ | 39.96 | $ | 41.18 | $ | 43.66 | $ | 41.18 | ||||||||
|
Low
|
$ | 30.37 | $ | 33.62 | $ | 28.27 | $ | 20.04 | ||||||||
|
Period
end market price
|
$ | 39.28 | $ | 40.47 | $ | 39.28 | $ | 40.47 | ||||||||
|
(D)
Net interest margin for all periods presented is calculated on an actual
365 or actual 366 day basis.
|
|
(E)
Prosperity’s efficiency ratio is calculated by dividing total non-interest
expense (excluding credit loss provisions) by net interest income plus
non-interest income (excluding net gains and losses on the sale of
assets). Additionally, taxes are not part of this
calculation.
|
Page 11
of 19
Prosperity
Bancshares, Inc.®
Financial
Highlights
(Dollars
in thousands)
|
Dec
31, 2010
|
Sept
30, 2010
|
June
30, 2010
|
Mar
31, 2010
|
|||||||||||||||||||||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||||||||
|
Loan
Portfolio
|
||||||||||||||||||||||||||||||||
|
Commercial
|
$ | 440,480 | 12.64 | % | $ | 419,539 | 12.29 | % | $ | 440,274 | 12.85 | % | $ | 412,602 | 12.32 | % | ||||||||||||||||
|
Construction
|
502,327 | 14.41 | % | 498,400 | 14.60 | % | 514,793 | 15.03 | % | 539,430 | 16.11 | % | ||||||||||||||||||||
|
1-4
family residential
|
824,057 | 23.65 | % | 789,859 | 23.14 | % | 758,670 | 22.15 | % | 729,015 | 21.77 | % | ||||||||||||||||||||
|
Home
equity
|
118,781 | 3.41 | % | 114,846 | 3.36 | % | 116,071 | 3.39 | % | 119,754 | 3.58 | % | ||||||||||||||||||||
|
Commercial
real estate
|
1,370,649 | 39.33 | % | 1,357,046 | 39.75 | % | 1,349,834 | 39.42 | % | 1,302,357 | 38.90 | % | ||||||||||||||||||||
|
Agriculture
|
140,752 | 4.04 | % | 143,917 | 4.22 | % | 148,770 | 4.34 | % | 140,418 | 4.19 | % | ||||||||||||||||||||
|
Consumer
|
87,977 | 2.52 | % | 90,212 | 2.64 | % | 96,628 | 2.82 | % | 104,807 | 3.13 | % | ||||||||||||||||||||
|
Total
Loans
|
$ | 3,485,023 | $ | 3,413,819 | $ | 3,425,040 | $ | 3,348,383 | ||||||||||||||||||||||||
|
Deposit
Types
|
||||||||||||||||||||||||||||||||
|
Non-interest
bearing DDA
|
$ | 1,673,190 | 22.44 | % | $ | 1,623,078 | 21.66 | % | $ | 1,576,727 | 20.18 | % | $ | 1,525,079 | 20.07 | % | ||||||||||||||||
|
Interest
bearing DDA
|
1,412,337 | 18.95 | % | 1,278,564 | 17.07 | % | 1,359,041 | 17.39 | % | 1,354,393 | 17.82 | % | ||||||||||||||||||||
|
Money
Market
|
1,748,344 | 23.45 | % | 1,799,923 | 24.03 | % | 1,901,149 | 24.33 | % | 1,807,704 | 23.79 | % | ||||||||||||||||||||
|
Savings
|
423,026 | 5.67 | % | 402,707 | 5.38 | % | 385,376 | 4.93 | % | 360,776 | 4.75 | % | ||||||||||||||||||||
|
Time
< $100
|
1,119,336 | 15.01 | % | 1,224,226 | 16.34 | % | 1,316,602 | 16.85 | % | 1,284,271 | 16.90 | % | ||||||||||||||||||||
|
Time
> $100
|
1,078,687 | 14.48 | % | 1,163,082 | 15.52 | % | 1,275,034 | 16.32 | % | 1,266,756 | 16.67 | % | ||||||||||||||||||||
|
Total
Deposits
|
$ | 7,454,920 | $ | 7,491,580 | $ | 7,813,929 | $ | 7,598,979 | ||||||||||||||||||||||||
|
Loan
to Deposit Ratio
|
46.7 | % | 45.6 | % | 43.8 | % | 44.1 | % | ||||||||||||||||||||||||
|
Construction
Loans
|
||||||||||||||||||||||||||||||||
|
Single
family residential construction
|
$ | 118,207 | 23.52 | % | $ | 127,325 | 25.55 | % | $ | 136,127 | 26.45 | % | $ | 134,963 | 25.03 | % | ||||||||||||||||
|
Land
development
|
52,773 | 10.51 | % | 55,902 | 11.22 | % | 74,570 | 14.49 | % | 76,871 | 14.25 | % | ||||||||||||||||||||
|
Raw
land
|
64,524 | 12.85 | % | 67,108 | 13.46 | % | 68,112 | 13.23 | % | 76,817 | 14.24 | % | ||||||||||||||||||||
|
Residential
lots
|
88,648 | 17.65 | % | 88,611 | 17.78 | % | 93,764 | 18.21 | % | 99,012 | 18.35 | % | ||||||||||||||||||||
|
Commercial
lots
|
52,183 | 10.39 | % | 48,346 | 9.70 | % | 49,341 | 9.58 | % | 49,863 | 9.24 | % | ||||||||||||||||||||
|
Commercial
Construction
and other
|
125,992 | 25.08 | % | 111,108 | 22.29 | % | 92,879 | 18.04 | % | 101,904 | 18.89 | % | ||||||||||||||||||||
|
Total
Construction Loans
|
$ | 502,327 | $ | 498,400 | $ | 514,793 | $ | 539,430 | ||||||||||||||||||||||||
Page 12
of 19
Prosperity
Bancshares, Inc.®
Financial
Highlights
(Dollars
in thousands)
|
Dec
31, 2010
|
Sept
30, 2010
|
June
30, 2010
|
Mar
31, 2010
|
Dec
31, 2009
|
||||||||||||||||
|
Balance
Sheet Data (at
period end)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Total
loans
|
$ | 3,485,023 | $ | 3,413,819 | $ | 3,425,040 | $ | 3,348,383 | $ | 3,376,703 | ||||||||||
|
Investment
securities(F)
|
4,617,116 | 4,472,639 | 4,817,847 | 4,525,506 | 4,118,290 | |||||||||||||||
|
Federal
funds sold
|
393 | 553 | 823 | 577 | 354 | |||||||||||||||
|
Allowance
for credit losses
|
(51,584 | ) | (51,354 | ) | (52,727 | ) | (51,893 | ) | (51,863 | ) | ||||||||||
|
Cash
and due from banks
|
158,975 | 140,678 | 148,395 | 169,534 | 194,963 | |||||||||||||||
|
Goodwill
|
924,258 | 923,933 | 921,484 | 890,123 | 876,987 | |||||||||||||||
|
Core
deposit intangibles
|
28,776 | 30,948 | 33,389 | 33,094 | 35,385 | |||||||||||||||
|
Other
real estate
|
11,053 | 11,233 | 12,520 | 12,991 | 7,829 | |||||||||||||||
|
Fixed
assets, net
|
159,053 | 159,717 | 161,267 | 152,886 | 148,855 | |||||||||||||||
|
Other
assets
|
143,509 | 136,336 | 140,784 | 137,532 | 142,897 | |||||||||||||||
|
Total
assets
|
$ | 9,476,572 | $ | 9,238,502 | $ | 9,608,822 | $ | 9,218,733 | $ | 8,850,400 | ||||||||||
|
Demand
deposits
|
$ | 1,673,190 | $ | 1,623,078 | $ | 1,576,727 | $ | 1,525,079 | $ | 1,492,612 | ||||||||||
|
Interest
bearing deposits
|
5,781,730 | 5,868,502 | 6,237,202 | 6,073,900 | 5,765,938 | |||||||||||||||
|
Total
deposits
|
7,454,920 | 7,491,580 | 7,813,929 | 7,598,979 | 7,258,550 | |||||||||||||||
|
Securities
sold under
|
||||||||||||||||||||
|
repurchase
agreements
|
60,659 | 96,416 | 93,060 | 68,441 | 72,596 | |||||||||||||||
|
Federal
funds purchased and
|
||||||||||||||||||||
|
other
borrowings
|
374,433 | 71,686 | 154,935 | 15,879 | 26,140 | |||||||||||||||
|
Junior
subordinated debentures
|
92,265 | 92,265 | 92,265 | 92,265 | 92,265 | |||||||||||||||
|
Other
liabilities
|
41,956 | 56,985 | 50,499 | 65,262 | 49,604 | |||||||||||||||
|
Total
liabilities
|
8,024,233 | 7,808,932 | 8,204,688 | 7,840,826 | 7,499,155 | |||||||||||||||
|
Shareholders'
equity(G)
|
1,452,339 | 1,429,570 | 1,404,134 | 1,377,907 | 1,351,245 | |||||||||||||||
|
Total
liabilities and equity
|
$ | 9,476,572 | $ | 9,238,502 | $ | 9,608,822 | $ | 9,218,733 | $ | 8,850,400 | ||||||||||
|
(F)
Includes $22,007, $26,869, $28,028, $27,710 and $25,855 in unrealized
gains on available for sale securities for the quarterly periods
ending December 31, 2010, September 30, 2010, June 30, 2010, March
31, 2010 and December 31, 2009, respectively.
|
||||||||||||||||||||
|
(G)
Includes $14,304, $17,465, $18,218, $18,011 and $16,806 in after-tax
unrealized gains on available for sale securities for the quarterly
periods ending December 31, 2010, September 30, 2010, June 30, 2010, March
31, 2010 and December 31, 2009, respectively.
|
||||||||||||||||||||
Page 13
of 19
Prosperity
Bancshares, Inc.®
Financial
Highlights
(Dollars
in thousands)
|
Three
Months Ended
|
||||||||||||||||||||
|
Dec
31, 2010
|
Sept
30, 2010
|
June
30, 2010
|
Mar
31, 2010
|
Dec
31, 2009
|
||||||||||||||||
|
Income
Statement Data
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Interest
on loans
|
$ | 52,722 | $ | 52,855 | $ | 52,681 | $ | 51,453 | $ | 53,461 | ||||||||||
|
Interest
on securities
|
39,708 | 43,382 | 46,603 | 45,014 | 46,116 | |||||||||||||||
|
Interest
on federal funds
|
||||||||||||||||||||
|
sold
and other earning assets
|
6 | 10 | 74 | 29 | 8 | |||||||||||||||
|
Total
interest income
|
92,436 | 96,247 |
99,358
|
96,496
|
99,585 | |||||||||||||||
|
Interest
expense- deposits
|
11,749 | 14,702 | 17,573 | 17,485 | 18,062 | |||||||||||||||
|
Interest
expense- debentures
|
803 | 857 | 799 | 791 | 803 | |||||||||||||||
|
Interest
expense- other
|
375 | 421 | 386 | 448 | 631 | |||||||||||||||
|
Total
interest expense
|
12,927 | 15,980 | 18,758 | 18,724 | 19,496 | |||||||||||||||
|
Net
interest income
|
79,509 | 80,267 | 80,600 | 77,772 | 80,089 | |||||||||||||||
|
Provision
for credit losses
|
2,900 | 3,000 | 3,275 | 4,410 | 8,500 | |||||||||||||||
|
Net
interest income after
|
||||||||||||||||||||
|
provision
for credit losses
|
76,609 | 77,267 | 77,325 | 73,362 | 71,589 | |||||||||||||||
|
Service
charges on
|
||||||||||||||||||||
|
deposits
accounts
|
12,780 | 13,201 | 12,680 | 11,589 | 12,953 | |||||||||||||||
|
Net
gain on sale of assets
|
2 | 1 | 399 | 0 | 145 | |||||||||||||||
|
Net
loss on sale of ORE
|
(915 | ) | (1,364 | ) | (1,689 | ) | (294 | ) | (135 | ) | ||||||||||
|
Brokered
mortgage income
|
78 | 64 | 50 | 13 | 36 | |||||||||||||||
|
Other
non-interest income
|
1,960 | 1,752 | 1,856 | 1,670 | 1,712 | |||||||||||||||
|
Total
non-interest income
|
13,905 | 13,654 | 13,296 | 12,978 | 14,711 | |||||||||||||||
|
Salaries
and benefits
|
21,421 | 22,016 | 22,431 | 21,112 | 19,747 | |||||||||||||||
|
CDI
amortization
|
2,172 | 2,274 | 2,280 | 2,290 | 2,441 | |||||||||||||||
|
Net
occupancy and equipment
|
3,975 | 4,036 | 3,708 | 3,434 | 3,794 | |||||||||||||||
|
Depreciation
|
1,999 | 2,161 | 2,147 | 2,006 | 2,056 | |||||||||||||||
|
Data
processing and
|
||||||||||||||||||||
|
software
amortization
|
1,515 | 1,550 | 1,742 | 1,415 | 1,386 | |||||||||||||||
|
Regulatory
assessments
and FDIC
insurance
|
2,812 | 2,817 | 2,801 | 2,609 | 2,473 | |||||||||||||||
|
Other
non-interest expense
|
7,333 | 7,739 | 7,940 | 6,859 | 8,279 | |||||||||||||||
|
Total
non-interest expense
|
41,227 | 42,593 | 43,049 | 39,725 | 40,176 | |||||||||||||||
|
Net
income before taxes
|
49,287 | 48,328 | 47,572 | 46,615 | 46,124 | |||||||||||||||
|
Federal
income taxes
|
16,489 | 16,162 | 15,826 | 15,617 | 15,555 | |||||||||||||||
|
Net
income available
|
||||||||||||||||||||
|
to
common shareholders
|
$ | 32,798 | $ | 32,166 | $ | 31,746 | $ | 30,998 | $ | 30,569 | ||||||||||
Page 14
of 19
Prosperity
Bancshares, Inc.®
Financial
Highlights
|
Three
Months Ended
|
||||||||||||||||||||
|
Dec
31, 2010
|
Sept.
30, 2010
|
June
30, 2010
|
Mar
31, 2010
|
Dec
31, 2009
|
||||||||||||||||
|
Comparative
Quarterly
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Asset
Quality, Performance
|
||||||||||||||||||||
|
&
Capital Ratios
|
||||||||||||||||||||
|
Return
on average
|
||||||||||||||||||||
|
assets
(annualized)
|
1.41 | % | 1.36 | % | 1.34 | % | 1.40 | % | 1.39 | % | ||||||||||
|
Return
on average common
|
||||||||||||||||||||
|
equity
(annualized)
|
9.08 | % | 9.06 | % | 9.12 | % | 9.07 | % | 9.11 | % | ||||||||||
|
Return
on average tangible
|
||||||||||||||||||||
|
equity
(annualized)
|
26.70 | % | 27.62 | % | 28.08 | % | 27.22 | % | 28.50 | % | ||||||||||
|
Net
interest margin
|
||||||||||||||||||||
|
(tax
equivalent) (annualized)
|
3.99 | % | 3.97 | % | 4.00 | % | 4.20 | % | 4.24 | % | ||||||||||
|
Employees
– FTE
|
1,708 | 1,719 | 1,753 | 1,651 | 1,594 | |||||||||||||||
|
Efficiency
ratio
|
44.13 | % | 45.35 | % | 46.04 | % | 43.77 | % | 42.44 | % | ||||||||||
|
Non-performing
assets to
|
||||||||||||||||||||
|
average
earning assets
|
0.20 | % | 0.26 | % | 0.27 | % | 0.26 | % | 0.22 | % | ||||||||||
|
Non-performing
assets to loans
|
||||||||||||||||||||
|
and
other real estate
|
0.45 | % | 0.60 | % | 0.64 | % | 0.59 | % | 0.48 | % | ||||||||||
|
Net
charge-offs to
|
||||||||||||||||||||
|
average
loans
|
0.08 | % | 0.13 | % | 0.07 | % | 0.13 | % | 0.12 | % | ||||||||||
|
Allowance
for credit losses to
|
||||||||||||||||||||
|
total
loans
|
1.48 | % | 1.50 | % | 1.54 | % | 1.55 | % | 1.54 | % | ||||||||||
|
Book
value per share
|
$ | 31.11 | $ | 30.64 | $ | 30.12 | $ | 29.58 | $ | 29.03 | ||||||||||
|
Tangible
book value per share
|
$ | 10.70 | $ | 10.17 | $ | 9.64 | $ | 9.76 | $ | 9.43 | ||||||||||
|
Tier
1 risk-based capital
|
13.64 | % | 13.23 | % | 12.31 | % | 12.82 | % | 12.61 | % | ||||||||||
|
Total
risk-based capital
|
14.87 | % | 14.47 | % | 13.56 | % | 14.07 | % | 13.86 | % | ||||||||||
|
Tier
1 leverage capital
|
6.87 | % | 6.45 | % | 6.10 | % | 6.61 | % | 6.47 | % | ||||||||||
|
Tangible
equity to tangible assets
|
5.86 | % | 5.73 | % | 5.19 | % | 5.48 | % | 5.53 | % | ||||||||||
|
Equity
to assets
|
15.33 | % | 15.47 | % | 14.61 | % | 14.95 | % | 15.27 | % | ||||||||||
Page 15
of 19
Prosperity
Bancshares, Inc.®
Supplemental
Financial Data (Unaudited)
(Dollars
in thousands)
|
Three
Months Ended December 31, 2010
|
Three
Months Ended December 31, 2009
|
|||||||||||||||||||||||
|
YIELD
ANALYSIS
|
Average
|
Interest
Earned
|
Average
|
Average
|
Interest
Earned
|
Average
|
||||||||||||||||||
|
Balance
|
/
Interest Paid
|
Yield/Rate
|
Balance
|
/
Interest Paid
|
Yield/Rate
|
|||||||||||||||||||
|
Interest
Earning Assets:
|
||||||||||||||||||||||||
|
Loans
|
$ | 3,421,698 | $ | 52,722 | 6.11 | % | $ | 3,389,529 | $ | 53,461 | 6.26 | % | ||||||||||||
|
Investment
securities
|
4,542,433 | 39,708 | 3.50 | % | 4,152,752 | 46,116 | 4.44 | % | ||||||||||||||||
|
Federal
funds sold and other
|
||||||||||||||||||||||||
|
earning
assets
|
14,305 | 6 | 0.17 | % | 13,607 | 8 | 0.23 | % | ||||||||||||||||
|
Total
interest earning assets
|
7,978,436 | $ | 92,436 | 4.60 | % | 7,555,888 | $ | 99,585 | 5.23 | % | ||||||||||||||
|
Allowance
for credit losses
|
(51,551 | ) | (48,894 | ) | ||||||||||||||||||||
|
Non-interest
earning assets
|
1,394,266 | 1,312,019 | ||||||||||||||||||||||
|
Total
assets
|
$ | 9,321,151 | $ | 8,819,013 | ||||||||||||||||||||
|
Interest
Bearing Liabilities:
|
||||||||||||||||||||||||
|
Interest
bearing demand deposits
|
$ | 1,291,312 | $ | 1,772 | 0.54 | % | $ | 1,119,119 | $ | 2,030 | 0.72 | % | ||||||||||||
|
Savings
and money market deposits
|
2,229,295 | 3,189 | 0.57 | % | 1,988,158 | 4,150 | 0.83 | % | ||||||||||||||||
|
Certificates
and other time deposits
|
2,271,119 | 6,788 | 1.19 | % | 2,499,797 | 11,882 | 1.89 | % | ||||||||||||||||
|
Securities
sold under repurchase agreements
|
77,759 | 110 | 0.56 | % | 88,094 | 218 | 0.98 | % | ||||||||||||||||
|
Federal
funds purchased and other borrowings
|
198,677 | 265 | 0.53 | % | 141,073 | 413 | 1.16 | % | ||||||||||||||||
|
Junior
subordinated debentures
|
92,265 | 803 | 3.45 | % | 92,265 | 803 | 3.45 | % | ||||||||||||||||
|
Total
interest bearing liabilities
|
$ | 6,160,427 | $ | 12,927 | 0.83 | % | $ | 5,928,506 | $ | 19,496 | 1.30 | % | ||||||||||||
|
Non-interest
bearing liabilities:
|
||||||||||||||||||||||||
|
Non-interest
bearing demand deposits
|
$ | 1,661,448 | $ | 1,481,514 | ||||||||||||||||||||
|
Other
liabilities
|
54,429 | 66,410 | ||||||||||||||||||||||
|
Total
liabilities
|
$ | 7,876,304 | $ | 7,476,430 | ||||||||||||||||||||
|
Shareholders'
equity
|
$ | 1,444,847 | $ | 1,342,583 | ||||||||||||||||||||
|
Total
liabilities and shareholders' equity
|
$ | 9,321,151 | $ | 8,819,013 | ||||||||||||||||||||
|
Net
Interest Income & Margin
|
$ | 79,509 | 3.95 | % | $ | 80,089 | 4.21 | % | ||||||||||||||||
|
Net
Interest Income & Margin
|
||||||||||||||||||||||||
|
(tax
equivalent)
|
$ | 80,238 | 3.99 | % | $ | 80,770 | 4.24 | % | ||||||||||||||||
Page 16
of 19
Prosperity
Bancshares, Inc.®
Supplemental
Financial Data (Unaudited)
(Dollars
in thousands)
|
Twelve
Months Ended December 31, 2010
|
Twelve
Months Ended December 31, 2009
|
|||||||||||||||||||||||
|
YIELD
ANALYSIS
|
Average
|
Interest
Earned
|
Average
|
Average
|
Interest
Earned
|
Average
|
||||||||||||||||||
|
Balance
|
/
Interest Paid
|
Yield/Rate
|
Balance
|
/
Interest Paid
|
Yield/Rate
|
|||||||||||||||||||
|
Interest
Earning Assets:
|
||||||||||||||||||||||||
|
Loans
|
$ | 3,394,502 | $ | 209,711 | 6.18 | % | $ | 3,455,761 | $ | 219,320 | 6.35 | % | ||||||||||||
|
Investment
securities
|
4,508,918 | 174,707 | 3.87 | % | 4,052,989 | 190,106 | 4.69 | % | ||||||||||||||||
|
Federal
funds sold and other
|
||||||||||||||||||||||||
|
earning
assets
|
48,944 | 119 | 0.24 | % | 77,328 | 188 | 0.24 | % | ||||||||||||||||
|
Total
interest earning assets
|
7,952,364 | $ | 384,537 | 4.84 | % | 7,586,078 | $ | 409,614 | 5.40 | % | ||||||||||||||
|
Allowance
for credit losses
|
(52,151 | ) | (42,279 | ) | ||||||||||||||||||||
|
Non-interest
earning assets
|
1,378,167 | 1,307,895 | ||||||||||||||||||||||
|
Total
assets
|
$ | 9,278,380 | $ | 8,851,694 | ||||||||||||||||||||
|
Interest
Bearing Liabilities:
|
||||||||||||||||||||||||
|
Interest
bearing demand deposits
|
$ | 1,336,400 | $ | 8,994 | 0.67 | % | $ | 1,082,332 | $ | 8,587 | 0.79 | % | ||||||||||||
|
Savings
and money market deposits
|
2,189,695 | 15,159 | 0.69 | % | 1,910,721 | 19,405 | 1.02 | % | ||||||||||||||||
|
Certificates
and other time deposits
|
2,438,968 | 37,356 | 1.53 | % | 2,730,263 | 67,842 | 2.48 | % | ||||||||||||||||
|
Securities
sold under repurchase agreements
|
81,623 | 595 | 0.73 | % | 93,625 | 1,166 | 1.25 | % | ||||||||||||||||
|
Federal
funds purchased and other borrowings
|
109,260 | 1,035 | 0.95 | % | 75,747 | 1,753 | 2.31 | % | ||||||||||||||||
|
Junior
subordinated debentures
|
92,265 | 3,250 | 3.52 | % | 92,265 | 3,760 | 4.08 | % | ||||||||||||||||
|
Total
interest bearing liabilities
|
6,248,211 | $ | 66,389 | 1.06 | % | 5,984,953 | $ | 102,513 | 1.71 | % | ||||||||||||||
|
Non-interest
bearing liabilities:
|
||||||||||||||||||||||||
|
Non-interest
bearing demand deposits
|
1,567,676 | 1,488,699 | ||||||||||||||||||||||
|
Other
liabilities
|
56,334 | 73,293 | ||||||||||||||||||||||
|
Total
liabilities
|
7,872,221 | 7,546,945 | ||||||||||||||||||||||
|
Shareholders'
equity
|
1,406,159 | 1,304,749 | ||||||||||||||||||||||
|
Total
liabilities and shareholders' equity
|
$ | 9,278,380 | $ | 8,851,694 | ||||||||||||||||||||
|
Net
Interest Income & Margin
|
$ | 318,148 | 4.00 | % | $ | 307,101 | 4.05 | % | ||||||||||||||||
|
Net
Interest Income & Margin
|
||||||||||||||||||||||||
|
(tax
equivalent)
|
$ | 321,049 | 4.04 | % | $ | 309,866 | 4.08 | % | ||||||||||||||||
Page 17
of 19
Prosperity
Bancshares, Inc.®
Notes
to Selected Financial Data (Unaudited)
(Dollars
and share amounts in thousands, except per share data)
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. Further, Prosperity believes
that these non-GAAP measures provide useful information by excluding certain
items that may not be indicative of its core operating earnings and business
outlook. 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.
|
Three
months ended
|
||||||||||||||||||||
|
Dec
31, 2010
|
Sept
30, 2010
|
June
30, 2010
|
Mar
31, 2010
|
Dec
31, 2009
|
||||||||||||||||
| Return on average tangible common equity: |
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||||
|
Net
income
|
$ | 32,798 | $ | 32,166 | $ | 31,746 | $ | 30,998 | $ | 30,569 | ||||||||||
|
Average
shareholders' equity
|
1,444,847 | 1,419,784 | 1,392,493 | 1,367,511 | 1,342,583 | |||||||||||||||
|
Less:
Average goodwill and other intangible assets
|
(953,509 | ) | (953,892 | ) | (940,246 | ) | (912,065 | ) | (913,522 | ) | ||||||||||
|
Average
tangible shareholders’ equity
|
$ | 491,338 | $ | 465,892 | $ | 452,247 | $ | 455,446 | $ | 429,061 | ||||||||||
|
Return
on average tangible common equity:
|
26.70 | % | 27.62 | % | 28.08 | % | 27.22 | % | 28.50 | % | ||||||||||
|
Tangible
book value per share:
|
||||||||||||||||||||
|
Shareholders’
equity
|
$ | 1,452,339 | $ | 1,429,570 | $ | 1,404,134 | $ | 1,377,907 | $ | 1,351,245 | ||||||||||
|
Less:
Goodwill and other intangible assets
|
(953,034 | ) | (954,881 | ) | (954,873 | ) | (923,217 | ) | (912,372 | ) | ||||||||||
|
Tangible
shareholders’ equity
|
$ | 499,305 | $ | 474,689 | $ | 449,261 | $ | 454,690 | $ | 438,873 | ||||||||||
|
Period
end shares outstanding
|
46,684 | 46,653 | 46,622 | 46,575 | 46,541 | |||||||||||||||
|
Tangible
book value per share:
|
$ | 10.70 | $ | 10.17 | $ | 9.64 | $ | 9.76 | $ | 9.43 | ||||||||||
|
Tangible
equity to tangible assets ratio:
|
||||||||||||||||||||
|
Tangible
shareholders’ equity
|
$ | 499,305 | $ | 474,689 | $ | 449,261 | $ | 454,690 | $ | 438,873 | ||||||||||
|
Total
assets
|
$ | 9,476,572 | $ | 9,238,502 | $ | 9,608,822 | $ | 9,218,733 | $ | 8,850,400 | ||||||||||
|
Less:
Goodwill and other intangible assets
|
(953,034 | ) | (954,881 | ) | (954,873 | ) | (923,217 | ) | (912,372 | ) | ||||||||||
|
Tangible
assets
|
$ | 8,523,538 | $ | 8,283,621 | $ | 8,653,949 | $ | 8,295,516 | $ | 7,938,028 | ||||||||||
|
Tangible
equity to tangible assets ratio:
|
5.86 | % | 5.73 | % | 5.19 | % | 5.48 | % | 5.53 | % | ||||||||||
Page 18
of 19
Prosperity
Bancshares, Inc.®
Notes
to Selected Financial Data (Unaudited)
(Dollars
and share amounts in thousands, except per share data)
|
Twelve
Months Ended
|
||||||||
|
Dec
31, 2010
|
Dec
31, 2009
|
|||||||
|
Return
on average tangible common equity:
|
(unaudited)
|
(unaudited)
|
||||||
|
Net
income
|
$ | 127,708 | $ | 111,879 | ||||
|
Average
shareholders' equity
|
1,406,159 | 1,304,749 | ||||||
|
Less:
Average goodwill and other intangible assets
|
(940,080 | ) | (914,384 | ) | ||||
|
Average
tangible shareholders’ equity
|
$ | 466,079 | $ | 390,365 | ||||
|
Return
on average tangible common equity:
|
27.40 | % | 28.66 | % | ||||
|
Tangible
book value per share:
|
||||||||
|
Shareholders
equity
|
$ | 1,452,339 | $ | 1,351,245 | ||||
|
Less:
Goodwill and other intangible assets
|
(953,034 | ) | (912,372 | ) | ||||
|
Tangible
shareholders’ equity
|
$ | 499,305 | $ | 438,873 | ||||
|
Period
end shares outstanding
|
46,684 | 46,541 | ||||||
|
Tangible
book value per share:
|
$ | 10.70 | $ | 9.43 | ||||
|
Tangible
equity to tangible assets ratio:
|
||||||||
|
Tangible
shareholders’ equity
|
$ | 499,305 | $ | 38,873 | ||||
|
Total
assets
|
$ | 9,476,572 | $ | 8,850,400 | ||||
|
Less:
Goodwill and other intangible assets
|
(953,034 | ) | (912,372 | ) | ||||
|
Tangible
assets
|
$ | 8,523,538 | $ | 7,938,028 | ||||
|
Tangible
equity to tangible assets ratio:
|
5.86 | % | 5.53 | % | ||||
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