Texas
|
0-25051
|
74-2331986
|
(State or other jurisdiction
|
(Commission File Number)
|
(IRS Employer
|
of incorporation)
|
Identification No.)
|
4295 San Felipe
|
Houston, Texas 77027
|
(Address of principal executive offices including zip code)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02
|
Results of Operations and Financial Condition.
|
Item 9.01
|
Financial Statements and Exhibits.
|
Exhibit
|
||
Number
|
Description of Exhibit
|
|
99.1
|
|
Press Release issued by Prosperity Bancshares, Inc. dated January 20, 2012.
|
PROSPERITY BANCSHARES, INC.
|
||
(Registrant)
|
||
Dated: January 20, 2012
|
By:
|
/s/ James D. Rollins III
|
James D. Rollins III
|
||
President and Chief Operating Officer
|
Exhibit
|
||
Number
|
Description of Exhibit
|
|
99.1
|
|
Press Release issued by Prosperity Bancshares, Inc. dated January 20, 2012.
|
Prosperity Bancshares, Inc.® Reports Strong 2011 Earnings
- 4Q 2011 Earnings Per Share of $0.77 (diluted)
- Non-Performing Assets Declined to 0.14% of 4Q Average Earning Assets
- 2011 Full Year Net Income Increased 11.0% from 2010
- Deposits Increased $605.1 million or 8.1%
- Loans Increased $280.9 million or 8.1%
HOUSTON, Jan. 20, 2012 /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB), the parent company of Prosperity Bank®, reported net income for the quarter ended December 31, 2011 of $36.406 million or $0.77 per diluted common share, an increase in net income of $3.608 million or 11.0%, compared with $32.798 million or $0.70 per diluted common share for the same period in 2010. Prosperity also reported net income for the year ended December 31, 2011 of $141.749 million or $3.01 per diluted common share, up 11.0% from 2010 net income of $127.708 million and up 10.3% from 2010 diluted earnings per common share of $2.73.
"We are proud of our performance in 2011. We finished the year with record net income of $141.749 million, an 11.0% increase over 2010. For the full year, our loans increased 8.1% or $280.883 million while our deposits also increased 8.1% or $605.334 million," said David Zalman, Prosperity's Chairman and Chief Executive Officer. "Our entire team is honored to have been recognized by Forbes as the 'Best Bank in America' in their 2012 rankings. This recognition is the result of all of our associates hard work and dedication and reflects our industry leading asset quality, our strong earnings, and our continued focus on building shareholder value," 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 December 31, 2011
For the three months ended December 31, 2011, net income was $36.406 million compared with $32.798 million for the same period in 2010. Net income per diluted common share was $0.77 for the three months ended December 31, 2011 compared with $0.70 for the same period in 2010. Returns on average assets, average common equity and average tangible common equity for the three months ended December 31, 2011 were 1.50%, 9.35% and 23.86%, respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale of assets) was 40.77% for the three months ended December 31, 2011.
Net interest income before provision for credit losses for the quarter ended December 31, 2011 increased 0.7% to $80.087 million compared with $79.509 million during the same period in 2010 and decreased 3.0% or $2.451 million compared with $82.538 million during the three months ended September 30, 2011. The net interest margin on a tax equivalent basis decreased to 3.82% for the three months ended December 31, 2011 compared with 3.99% for the same period in 2010 and decreased 20 basis points from 4.02% for the three months ended September 30, 2011. The 20 basis point linked quarter decrease was impacted by increased amortization expense from the securities portfolio. Amortization expense for the three months ended December 31, 2011 increased $2.086 million on a linked quarter basis to $9.670 million. At December 31, 2011, the Company had $68.194 million in premium remaining on its securities portfolio.
Non-interest income increased $160 thousand or 1.2% to $14.065 million for the three months ended December 31, 2011 compared with $13.905 million for the same period in 2010. The increase was mainly attributable to an increase in debit card and ATM card income, partially offset by a decrease NSF fees.
Non-interest expense decreased $2.842 million or 6.9% to $38.385 million for the three months ended December 31, 2011 compared with $41.227 million during the same period in 2010. The decrease was mainly attributable to a decrease in ORE expenses and reduced FDIC assessments.
Loans at December 31, 2011 were $3.766 billion, an increase of $280.883 million or 8.1%, compared with $3.485 billion at December 31, 2010. Loans increased 0.8% (3.0% annualized) or $28.276 million on a linked quarter basis compared with loans of $3.737 billion at September 30, 2011.
Deposits at December 31, 2011 were $8.060 billion, an increase of $605.334 million or 8.1% compared with $7.455 billion at December 31, 2010. Linked quarter deposits increased $261.515 million or 3.4% (13.4% annualized) from $7.799 billion at September 30, 2011.
Average loans increased 9.6% or $328.225 million to $3.750 billion for the quarter ended December 31, 2011 compared with $3.422 billion for the same period of 2010. Linked quarter average loans increased 1.5% or $55.884 million from $3.694 billion at September 30, 2011. Average deposits increased 6.0% to $7.899 billion for the quarter ended December 31, 2011 compared with $7.453 billion for the same period of 2010. Linked quarter average deposits increased 3.2% or $246.534 million from $7.653 billion at September 30, 2011.
At December 31, 2011, construction loans totaled $482.140 million, consisting of approximately $136 million of single family residential construction loans; $43 million of land development loans; $61 million of raw land loans; $87 million of residential lot loans; $50 million of commercial lot loans; and $105 million of commercial construction and other construction loans. This is a decrease of $8.053 million from construction loans at September 30, 2011.
At December 31, 2011, Prosperity had $9.823 billion in total assets, $3.766 billion in loans and $8.060 billion in deposits. Assets, loans and deposits at December 31, 2011 increased by 3.7%, 8.1% and 8.1%, respectively, compared with their level at December 31, 2010.
Asset Quality
Non-performing assets totaled $12.052 million or 0.14% of quarterly average earning assets at December 31, 2011 compared with $15.842 million or 0.20% of quarterly average earning assets at December 31, 2010 and $13.363 million or 0.16% of quarterly average earnings assets at September 30, 2011. The allowance for credit losses was 1.37% of total loans at December 31, 2011, 1.40% at September 30, 2011 and 1.48% of total loans at December 31, 2010.
The provision for credit losses was $1.150 million for the three months ended December 31, 2011 and $2.900 million for the three months ended December 31, 2010. Net charge offs were $2.069 million for the three months ended December 31, 2011 and $2.670 million for the three months ended December 31, 2010.
Non-performing assets (In thousands) | Dec 31, 2011 | Sept 30, 2011 | Dec 31, 2010 | |||
| Amount | # | Amount | # | Amount | # |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
|
Commercial | $ 767 | 17 | $ 1,440 | 17 | $ 1,317 | 17 |
Construction | 4,649 | 28 | 5,042 | 30 | 8,469 | 46 |
1-4 family (including home equity) | 3,689 | 38 | 3,894 | 38 | 3,933 | 38 |
Commercial real estate (including multi-family) | 2,877 | 9 | 2,885 | 11 | 2,022 | 6 |
Agriculture | 49 | 3 | 51 | 3 | 11 | 1 |
Consumer | 21 | 4 | 51 | 4 | 90 | 13 |
Total | $ 12,052 | 99 | $ 13,363 | 103 | $ 15,842 | 121 |
Net Charge-offs (In thousands) | Three Months Ended Dec 31, 2011 | Three Months Ended Sept 30, 2011 | Three Months Ended Dec 31, 2010 |
| (Unaudited) | (Unaudited) | (Unaudited) |
Commercial | $ 676 | $ 7 | $ 855 |
Construction | 153 | (197) | 1,014 |
1-4 family (including home equity) | 843 | 134 | 314 |
Commercial real estate (including multi-family) | 218 | 271 | 285 |
Agriculture | -- | -- | -- |
Consumer | 179 | 153 | 202 |
Total | $ 2,069 | $ 368 | $ 2,670 |
The provision for credit losses was $5.200 million for the twelve months ended December 31, 2011; a decrease of $8.385 million compared with $13.585 million for the twelve months ended December 31, 2010. Net charge offs were $5.190 million for the twelve months ended December 31, 2011 and $13.864 million for the twelve months ended December 31, 2010.
Results of operations for the twelve months ended December 31, 2011
For the twelve months ended December 31, 2011, net income was $141.749 million compared with $127.708 million for the same period in 2010. Net income per diluted common share was $3.01 for the twelve months ended December 31, 2011 compared with $2.73 for the same period in 2010.
Returns on average assets, average common equity and average tangible common equity for the twelve months ended December 31, 2011 were 1.47%, 9.36% and 25.11%, respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale of assets) was 42.76% for the twelve months ended December 31, 2011.
Net interest income before provision for credit losses for the twelve months ended December 31, 2011 increased $8.520 million or 2.7%, to $326.668 million compared with $318.148 million during the same period in 2010. The net interest margin on a tax equivalent basis decreased to 3.98% for the twelve months ended December 31, 2011 compared with 4.04% for the same period in 2010.
Non-interest income increased $2.210 million or 4.1% to $56.043 million for the twelve months ended December 31, 2011 compared with $53.833 million for the same period in 2010. The increase was mainly attributable to an increase in debit card and ATM card income and a decrease in loss on sale of ORE, partially offset by a decrease NSF fees.
Non-interest expense decreased $2.849 million or 1.7% to $163.745 million for the twelve months ended December 31, 2011 compared with $166.594 million for the same period in 2010. The decrease was due primarily to decreases in FDIC assessments, CDI amortization, ORE expenses and other non-interest expenses partially offset by an increase in salaries and benefits expense.
Conference Call
Prosperity's management team will host a conference call on Friday, January 20, 2012 at 10:30 a.m. Eastern Standard Time (9:30 a.m. Central Standard Time) to discuss Prosperity's fourth quarter and full year 2011 earnings. Individuals and investment professionals may participate in the call by dialing 800-862-9098, the reference code is PBTX.
Alternatively, individuals may listen to the live webcast of the presentation by visiting Prosperity's website at www.prosperitybanktx.com. The webcast may be accessed directly from Prosperity's Investor Relations page by clicking on the "4th Quarter Results and Webcast" link.
Prosperity Transfers Listing to NYSE Under Symbol "PB"
Prosperity transferred the listing of its common stock from the NASDAQ Global Select Market to the New York Stock Exchange (NYSE). The Company began trading, under the new ticker symbol "PB" on the NYSE on December 28, 2011.
Acquisition of The Bank Arlington
On January 19, 2012, Prosperity announced the signing of a definitive agreement to acquire The Bank Arlington. The Bank Arlington operates one (1) banking office in Arlington, Texas, in the Dallas/Fort Worth CMSA. As of December 31, 2011, The Bank Arlington reported total assets of $37.3 million, total loans of $21.3 million and total deposits of $32.8 million.
Under the terms of the definitive agreement, Prosperity will issue up to 138,600 shares of Prosperity common stock for all outstanding shares of The Bank Arlington capital stock, subject to certain conditions and potential adjustments.
Acquisition of East Texas Financial Services, Inc.
On December 9, 2011, Prosperity announced the signing of a definitive agreement to acquire East Texas Financial Services, Inc. (OTC BB: FFBT) and its wholly-owned subsidiary, First Federal Bank Texas ("Firstbank").
East Texas Financial Services operates four (4) banking offices in the Tyler MSA, including three (3) locations in Tyler, Texas and one (1) location in Gilmer, Texas. As of December 31, 2011, First Federal Bank reported total assets of $199.0 million, total loans of $163.1 million and total deposits of $126.7 million.
Under the terms of the definitive agreement, Prosperity will issue up to 531,000 shares of Prosperity common stock for all outstanding shares of East Texas Financial Services capital stock, subject to certain conditions and potential adjustments.
Acquisition of Texas Bankers, Inc.
On January 1, 2012, Prosperity completed the previously announced acquisition of Texas Bankers, Inc. and its wholly-owned subsidiary, Bank of Texas, Austin, Texas. The transaction continues Prosperity's strategic growth and expansion of the franchise in Central Texas.
The three (3) Bank of Texas banking offices in the Austin, Texas CMSA consist of a location in Rollingwood, which upon operational integration will be consolidated with Prosperity's Westlake location and remain in Bank of Texas' Rollingwood banking office; one banking center in downtown Austin, which upon operational integration will be consolidated into Prosperity's downtown Austin location; and another banking center in Thorndale. Prosperity now operates thirty-four (34) banking centers in the Central Texas area including Austin and San Antonio.
Texas Bankers, Inc. reported total assets of $77.0 million, total loans of $27.6 million and total deposits of $70.4 million on December 31, 2011.
Under the terms of the agreement, Prosperity issued 314,953 shares of Prosperity common stock for all outstanding shares of Texas Bankers capital stock which resulted in a premium of $5.2 million.
Prosperity Bancshares, Inc.®
Prosperity Bancshares Inc.®, recently named "America's Best Bank" by Forbes is a $9.8 billion Houston, Texas based regional financial holding company, formed in 1983. Operating under a community banking philosophy and seeking 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; fifty-nine (59) 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-four (34) in the Central Texas area including Austin and San Antonio; and ten (10) in the Bryan/College Station area.
Bryan/College Station Area - | Dallas/Fort Worth Area - | Mount Vernon | Cleveland |
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 Westlake
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 Thorndale Weimar Yoakum Yorktown | 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
| 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 Woodcreek
Other Houston Area Locations - Angleton Bay City Beaumont Cinco Ranch | 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 Padre Island Palacios Port Lavaca Portland Rockport Sinton Victoria Victoria-North |
|
|
|
|
In connection with the proposed merger of East Texas Financial Services, Inc. into Prosperity, Prosperity has filed with the Securities and Exchange Commission a registration statement on Form S-4 to register the shares of Prosperity's common stock to be issued to the stockholders of East Texas Financial Services. The registration statement includes a proxy statement/prospectus which will be sent to the stockholders of East Texas Financial Services seeking their approval of the proposed transaction.
WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH THE PROPOSED TRANSACTION BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY, EAST TEXAS FINANCIAL SERVICES AND THE PROPOSED TRANSACTION.
In connection with the proposed merger of The Bank Arlington into Prosperity Bank, Prosperity will file with the Securities and Exchange Commission a registration statement on Form S-4 to register the shares of Prosperity's common stock to be issued to the shareholders The Bank Arlington. The registration statement will include a proxy statement/prospectus which will be sent to the shareholders of The Bank Arlington seeking their approval of the proposed transaction.
WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH THE PROPOSED TRANSACTION BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY, THE BANK ARLINGTON AND THE PROPOSED TRANSACTION.
Investors and security holders may obtain free copies of these documents through the website maintained by the Securities and Exchange Commission at http://www.sec.gov. Documents filed with the SEC by Prosperity will be available free of charge by directing a request by telephone or mail to Prosperity Bancshares, Inc., Prosperity Bank Plaza, 4295 San Felipe, Houston, Texas 77027 Attn: Investor Relations. Prosperity's telephone number is (281) 269-7199.
"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, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity's securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate fluctuations and interest rate fluctuations; weather; and the stock price volatility associated with "small-cap" companies. These and various other factors are discussed in Prosperity's Annual Report on Form 10-K for the year ended December 31, 2010 and other reports and statements Prosperity has filed with the SEC. Copies of the SEC filings for Prosperity Bancshares'® may be downloaded from the Internet at no charge from www.prosperitybanktx.com.
Prosperity Bancshares, Inc.® Financial Highlights (Dollars and share amounts in thousands, except per share data)
| ||||
| Three Months Ended | Twelve Months Ended | ||
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2011 | Dec 31, 2010 |
Selected Earnings and Per | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
Share Data |
|
|
|
|
|
|
|
|
|
Total interest income | $ 89,658 | $ 92,436 | $ 371,908 | $ 384,537 |
Total interest expense | 9,571 | 12,927 | 45,240 | 66,389 |
Net interest income | 80,087 | 79,509 | 326,668 | 318,148 |
Provision for credit losses | 1,150 | 2,900 | 5,200 | 13,585 |
Net interest income after |
|
|
|
|
provision for credit losses | 78,937 | 76,609 | 321,468 | 304,563 |
|
|
|
|
|
Total non-interest income | 14,065 | 13,905 | 56,043 | 53,833 |
Total non-interest expense | 38,385 | 41,227 | 163,745 | 166,594 |
Net income before taxes | 54,617 | 49,287 | 213,766 | 191,802 |
Federal income taxes | 18,211 | 16,489 | 72,017 | 64,094 |
|
|
|
|
|
Net income | $ 36,406 | $ 32,798 | $ 141,749 | $ 127,708 |
|
|
|
|
|
Basic earnings per share | $0.78 | $0.70 | $3.03 | $2.74 |
|
|
|
|
|
Diluted earnings per share | $0.77 | $0.70 | $3.01 | $2.73 |
|
|
|
|
|
Period end shares outstanding | 46,910 | 46,684 | 46,910 | 46,684 |
Weighted average shares |
|
|
|
|
outstanding (basic) | 46,893 | 46,671 | 46,846 | 46,621 |
Weighted average shares |
|
|
|
|
outstanding (diluted) | 47,028 | 46,818 | 47,017 | 46,832 |
Prosperity Bancshares, Inc.® Financial Highlights (Dollars in thousands)
| ||||
| Three Months Ended | Twelve Months Ended | ||
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2011 | Dec 31, 2010 |
Balance Sheet Averages | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|
|
|
|
|
Total loans | $ 3,749,923 | $ 3,421,698 | $ 3,648,701 | $ 3,394,502 |
Investment securities | 4,596,017 | 4,542,433 | 4,625,833 | 4,508,918 |
Federal funds sold and |
|
|
|
|
other earning assets | 62,035 | 14,305 | 26,879 | 48,944 |
Total earning assets | 8,407,975 | 7,978,436 | 8,301,413 | 7,952,364 |
Allowance for credit losses | (51,713) | (51,551) | (51,871) | (52,151) |
Cash and due from banks | 136,856 | 133,620 | 131,374 | 130,554 |
Goodwill | 924,537 | 923,687 | 924,506 | 907,548 |
Core Deposit Intangibles (CDI) | 21,890 | 29,822 | 24,767 | 32,532 |
Other real estate | 9,803 | 13,121 | 10,220 | 14,490 |
Fixed assets, net | 160,261 | 160,177 | 159,983 | 158,667 |
Other assets | 119,870 | 133,839 | 128,492 | 134,376 |
Total assets | $ 9,729,479 | $ 9,321,151 | $ 9,628,884 | $ 9,278,380 |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits | $ 1,924,037 | $ 1,661,448 | $ 1,800,102 | $ 1,567,676 |
Interest bearing deposits | 5,975,081 | 5,791,726 | 5,951,094 | 5,965,063 |
Total deposits | 7,899,118 | 7,453,174 | 7,751,196 | 7,532,739 |
Securities sold under |
|
|
|
|
repurchase agreements | 60,999 | 77,759 | 68,049 | 81,623 |
Federal funds purchased and |
|
|
|
|
other borrowings | 66,834 | 198,677 | 152,716 | 109,260 |
Junior subordinated |
|
|
|
|
debentures | 85,055 | 92,265 | 86,557 | 92,265 |
Other liabilities | 60,628 | 54,429 | 56,617 | 56,334 |
Shareholders' equity(A) | 1,556,845 | 1,444,847 | 1,513,749 | 1,406,159 |
Total liabilities and equity | $ 9,729,479 | $ 9,321,151 | $ 9,628,884 | $ 9,278,380 |
(A) Includes $14,515 and $17,516, in after-tax unrealized gains on available for sale securities for the three month periods ending December 31, 2011 and December 31, 2010, respectively, and $14,680 and $17,693 for the twelve month periods ending December 31, 2011 and December 31, 2010, respectively. |
Prosperity Bancshares, Inc.® Financial Highlights (Dollars in thousands)
| |||||
|
| Three Months Ended | Twelve Months Ended | ||
|
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2011 | Dec 31, 2010 |
| Income Statement Data | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|
|
|
|
|
|
| Interest on loans | $ 53,899 | $ 52,722 | $ 214,273 | $ 209,711 |
| Interest on securities | 35,719 | 39,708 | 157,580 | 174,707 |
| Interest on federal funds sold and |
|
|
|
|
| other earning assets | 40 | 6 | 55 | 119 |
| Total interest income | 89,658 | 92,436 | 371,908 | 384,537 |
| Interest expense - deposits | 8,682 | 11,749 | 40,975 | 61,509 |
| Interest expense - debentures | 632 | 803 | 2,984 | 3,250 |
| Interest expense - other | 257 | 375 | 1,281 | 1,630 |
| Total interest expense | 9,571 | 12,927 | 45,240 | 66,389 |
| Net interest income(B) | 80,087 | 79,509 | 326,668 | 318,148 |
| Provision for credit losses | 1,150 | 2,900 | 5,200 | 13,585 |
| Net interest income after |
|
|
|
|
| provision for credit losses | 78,937 | 76,609 | 321,468 | 304,563 |
| Non-sufficient funds (NSF) fees | 5,860 | 6,905 | 24,442 | 27,580 |
| Debit card and ATM card income | 4,189 | 3,261 | 15,391 | 12,582 |
| Service charges on deposit accounts | 2,515 | 2,614 | 9,981 | 10,088 |
| Net gain on sale of assets | -- | 2 | 377 | 402 |
| Net (loss) gain on sale of ORE | (473) | (915) | (904) | (4,262) |
| Net loss on sale of securities | -- | -- | (581) | -- |
| Other non-interest income | 1,974 | 2,038 | 7,337 | 7,443 |
| Total non-interest income | 14,065 | 13,905 | 56,043 | 53,833 |
|
|
|
|
|
|
| Salaries and benefits(C) | 21,258 | 21,421 | 92,057 | 86,980 |
| CDI amortization | 1,879 | 2,172 | 7,780 | 9,016 |
| Net occupancy and equipment | 3,655 | 3,975 | 14,634 | 15,153 |
| Depreciation | 2,051 | 1,999 | 8,150 | 8,313 |
| Data processing |
|
|
|
|
| and software amortization | 1,417 | 1,515 | 6,823 | 6,222 |
| Regulatory assessments and FDIC insurance | 1,518 | 2,812 | 8,901 | 11,039 |
| ORE Expense | 680 | 1,013 | 1,501 | 3,483 |
| Other non-interest expense | 5,927 | 6,320 | 23,899 | 26,388 |
| Total non-interest expense | 38,385 | 41,227 | 163,745 | 166,594 |
| Net income before taxes | 54,617 | 49,287 | 213,766 | 191,802 |
| Federal income taxes | 18,211 | 16,489 | 72,017 | 64,094 |
| Net income available |
|
|
|
|
| to common shareholders | $ 36,406 | $ 32,798 | $ 141,749 | $ 127,708 |
(B) Net interest income on a tax equivalent basis would be $80,937 and $80,238 for the three months ended December 31, 2011 and December 31, 2010, respectively, and $330,282 and $321,049 for the twelve months ended December 31, 2011 and December 31, 2010, respectively. | |||||
(C) Salaries and benefits includes equity compensation expenses of $972 and $825 for the three months ended December 31, 2011 and December 31, 2010, respectively, and $3,576 and $3,037 for the twelve months ended December 31, 2011 and December 31, 2010, respectively. | |||||
|
|
|
|
|
|
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, 2011 | Dec 31, 2010 | Dec 31, 2011 | Dec 31, 2010 |
Common Share and | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
Other Data |
|
|
|
|
Employees - FTE | 1,664 | 1,708 | 1,664 | 1,708 |
|
|
|
|
|
Book value per share | $ 33.41 | $ 31.11 | $ 33.41 | $ 31.11 |
Tangible book value per share | $ 13.25 | $ 10.70 | $ 13.25 | $ 10.70 |
|
|
|
|
|
|
|
|
|
|
Period end shares outstanding | 46,910 | 46,684 | 46,910 | 46,684 |
Weighted average shares |
|
|
|
|
outstanding (basic) | 46,893 | 46,671 | 46,846 | 46,621 |
Weighted average shares |
|
|
|
|
outstanding (diluted) | 47,028 | 46,818 | 47,017 | 46,832 |
|
|
|
|
|
Non-accrual loans | $ 3,578 | $ 4,439 | $ 3,578 | $ 4,439 |
Accruing loans 90 or more |
|
|
|
|
days past due | -- | 189 | -- | 189 |
Restructured loans | -- | -- | -- | -- |
Total non-performing loans | 3,578 | 4,628 | 3,578 | 4,628 |
Repossessed assets | 146 | 161 | 146 | 161 |
Other real estate | 8,328 | 11,053 | 8,328 | 11,053 |
Total non-performing assets | $ 12,052 | $ 15,842 | $ 12,052 | $ 15,842 |
|
|
|
|
|
Allowance for credit losses at |
|
|
|
|
end of period | $ 51,594 | $ 51,584 | $ 51,594 | $ 51,584 |
|
|
|
|
|
Net charge-offs | $ 2,069 | $ 2,670 | $ 5,190 | $ 13,864 |
|
|
|
|
|
Basic earnings per share | $ 0.78 | $ 0.70 | $ 3.03 | $ 2.74 |
|
|
|
|
|
Diluted earnings per share | $ 0.77 | $ 0.70 | $ 3.01 | $ 2.73 |
|
|
|
|
|
Prosperity Bancshares, Inc.® Financial Highlights
| ||||
| Three Months Ended | Twelve Months Ended | ||
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2011 | Dec 31, 2010 |
Performance Ratios | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|
|
|
|
|
Return on average |
|
|
|
|
assets (annualized) | 1.50% | 1.41% | 1.47% | 1.38% |
Return on average common |
|
|
|
|
equity (annualized) | 9.35% | 9.08% | 9.36% | 9.08% |
Return on average tangible |
|
|
|
|
common equity (annualized) | 23.86% | 26.70% | 25.11% | 27.40% |
Net interest margin(D) |
|
|
|
|
(tax equivalent) (annualized) | 3.82% | 3.99% | 3.98% | 4.04% |
|
|
|
|
|
Efficiency ratio(E) | 40.77% | 44.13% | 42.76% | 44.83% |
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
Non-performing assets to |
|
|
|
|
average earning assets | 0.14% | 0.20% | 0.15% | 0.20% |
Non-performing assets to loans |
|
|
|
|
and other real estate | 0.32% | 0.45% | 0.32% | 0.45% |
Net charge-offs |
|
|
|
|
to average loans | 0.06% | 0.08% | 0.14% | 0.41% |
Allowance for credit losses to |
|
|
|
|
total loans | 1.37% | 1.48% | 1.37% | 1.48% |
|
|
|
|
|
Common Stock Market Price |
|
|
|
|
|
|
|
|
|
High | $41.74 | $39.96 | $46.87 | $43.66 |
|
|
|
|
|
Low | $31.31 | $30.37 | $30.91 | $28.27 |
|
|
|
|
|
Period end market price | $40.35 | $39.28 | $40.35 | $39.28 |
(D) Net interest margin for all periods presented is calculated on an actual 365 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 and securities). Additionally, taxes are not part of this calculation. |
Prosperity Bancshares, Inc.® Financial Highlights (Dollars in thousands)
| ||||||||
| Dec 31, 2011 | Sept 30, 2011 | June 30, 2011 | Mar 31, 2011 | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||
Loan Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial | $ 439,854 | 11.7% | $ 451,541 | 12.1% | $ 455,791 | 12.4% | $ 460,066 | 12.9% |
Construction | 482,140 | 12.8% | 490,193 | 13.1% | 483,581 | 13.2% | 494,159 | 13.8% |
1-4 family residential | 1,007,266 | 26.8% | 981,388 | 26.3% | 941,250 | 25.7% | 882,807 | 24.7% |
Home equity | 146,999 | 3.8% | 139,553 | 3.7% | 131,213 | 3.6% | 123,696 | 3.4% |
Commercial real estate | 1,441,226 | 38.3% | 1,426,704 | 38.2% | 1,411,501 | 38.5% | 1,385,031 | 38.8% |
Agriculture | 170,234 | 4.5% | 168,011 | 4.5% | 160,780 | 4.4% | 144,535 | 4.1% |
Consumer | 78,187 | 2.1% | 80,240 | 2.1% | 81,132 | 2.2% | 82,626 | 2.3% |
Total Loans | $ 3,765,906 |
| $3,737,630 |
| $3,665,248 |
| $3,572,920 |
|
|
|
|
|
|
|
|
|
|
Deposit Types |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing DDA | $ 1,972,226 | 24.5% | $1,861,907 | 23.9% | $1,788,756 | 23.3% | $1,730,427 | 22.2% |
Interest bearing DDA | 1,532,701 | 19.0% | 1,332,914 | 17.1% | 1,358,649 | 17.7% | 1,432,766 | 18.3% |
Money Market | 2,042,243 | 25.3% | 1,995,248 | 25.6% | 1,878,679 | 24.5% | 2,014,674 | 25.8% |
Savings | 514,780 | 6.4% | 498,451 | 6.4% | 471,082 | 6.1% | 454,649 | 5.8% |
Time < $100 | 968,806 | 12.0% | 1,005,672 | 12.9% | 1,037,492 | 13.6% | 1,072,343 | 13.7% |
Time > $100 | 1,029,498 | 12.8% | 1,104,547 | 14.1% | 1,133,034 | 14.8% | 1,111,525 | 14.2% |
Total Deposits | $ 8,060,254 |
| $7,798,739 |
| $7,667,692 |
| $7,816,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit Ratio | 46.7% |
| 47.9% |
| 47.8% |
| 45.7% |
|
|
|
|
|
|
|
|
|
|
Construction Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family residential construction | $ 136,030 | 28.2% | $ 126,926 | 25.9% | $ 124,995 | 25.8% | $ 112,175 | 22.7% |
Land development | 43,084 | 8.9% | 44,400 | 9.1% | 46,405 | 9.6% | 50,600 | 10.2% |
Raw land | 61,177 | 12.7% | 64,178 | 13.1% | 69,769 | 14.4% | 70,074 | 14.2% |
Residential lots | 86,848 | 18.0% | 88,600 | 18.1% | 86,515 | 17.9% | 86,359 | 17.5% |
Commercial lots | 49,645 | 10.3% | 54,016 | 11.0% | 54,419 | 11.3% | 50,543 | 10.2% |
Commercial Construction and other | 105,356 | 21.9% | 112,073 | 22.8% | 101,478 | 21.0% | 124,408 | 25.2% |
Total Construction Loans | $ 482,140 |
| $ 490,193 |
| $ 483,581 |
| $ 494,159 |
|
Prosperity Bancshares, Inc.® Financial Highlights (Dollars in thousands)
| |||||
| Dec 31, 2011 | Sept 30, 2011 | June 30, 2011 | Mar 31, 2011 | Dec 31, 2010 |
Balance Sheet Data (at period end) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|
|
|
|
|
|
Total loans | $ 3,765,906 | $ 3,737,630 | $ 3,665,248 | $ 3,572,920 | $ 3,485,023 |
Investment securities(F) | 4,658,936 | 4,430,530 | 4,641,664 | 4,798,642 | 4,617,116 |
Federal funds sold | 642 | 294 | 350 | 517 | 393 |
Allowance for credit losses | (51,594) | (52,513) | (51,932) | (51,760) | (51,584) |
Cash and due from banks | 212,800 | 211,261 | 145,910 | 145,521 | 158,975 |
Goodwill | 924,537 | 924,537 | 924,537 | 924,537 | 924,258 |
Core deposit intangibles | 20,996 | 22,874 | 24,799 | 26,742 | 28,776 |
Other real estate | 8,328 | 8,216 | 8,841 | 10,465 | 11,053 |
Fixed assets, net | 159,656 | 160,099 | 160,119 | 159,050 | 159,053 |
Other assets | 122,464 | 124,159 | 137,611 | 136,313 | 143,509 |
Total assets | $ 9,822,671 | $ 9,567,087 | $ 9,657,147 | $ 9,722,947 | $ 9,476,572 |
|
|
|
|
|
|
Demand deposits | $ 1,972,226 | $ 1,861,907 | $ 1,788,756 | $ 1,730,427 | $ 1,673,190 |
Interest bearing deposits | 6,088,028 | 5,936,832 | 5,878,936 | 6,085,957 | 5,781,730 |
Total deposits | 8,060,254 | 7,798,739 | 7,667,692 | 7,816,384 | 7,454,920 |
Securities sold under |
|
|
|
|
|
repurchase agreements | 54,883 | 66,166 | 91,288 | 51,847 | 60,659 |
Federal funds purchased and |
|
|
|
|
|
other borrowings | 12,790 | 13,583 | 248,839 | 228,092 | 374,433 |
Junior subordinated debentures | 85,055 | 85,055 | 85,055 | 85,055 | 92,265 |
Other liabilities | 42,424 | 62,205 | 52,625 | 61,071 | 41,956 |
Total liabilities | 8,255,406 | 8,025,748 | 8,145,499 | 8,242,449 | 8,024,233 |
Shareholders' equity(G) | 1,567,265 | 1,541,339 | 1,511,648 | 1,480,498 | 1,452,339 |
Total liabilities and equity | $ 9,822,671 | $ 9,567,087 | $ 9,657,147 | $ 9,722,947 | $ 9,476,572 |
|
|
|
|
|
|
(F) Includes $20,726, $24,278, $23,647, $21,088 and $22,007 in unrealized gains on available for sale securities for the quarterly periods ending December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010, respectively. | |||||
(G) Includes $13,472, $15,781, $15,371, $13,707 and $14,304 in after-tax unrealized gains on available for sale securities for the quarterly periods ending December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010, respectively. |
Prosperity Bancshares, Inc.® Financial Highlights (Dollars in thousands)
| |||||
| Three Months Ended | ||||
| Dec 31, 2011 | Sept 30, 2011 | June 30, 2011 | Mar 31, 2011 | Dec 31, 2010 |
Income Statement Data | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|
|
|
|
|
|
Interest on loans | $ 53,899 | $ 54,471 | $ 53,703 | $ 52,200 | $ 52,722 |
Interest on securities | 35,719 | 38,714 | 41,943 | 41,204 | 39,708 |
Interest on federal funds |
|
|
|
|
|
sold and other earning assets | 40 | 4 | 6 | 5 | 6 |
Total interest income | 89,658 | 93,189 | 95,652 | 93,409 | 92,436 |
Interest expense- deposits | 8,682 | 9,717 | 11,064 | 11,512 | 11,749 |
Interest expense- debentures | 632 | 607 | 598 | 1,147 | 803 |
Interest expense- other | 257 | 327 | 360 | 337 | 375 |
Total interest expense | 9,571 | 10,651 | 12,022 | 12,996 | 12,927 |
Net interest income | 80,087 | 82,538 | 83,630 | 80,413 | 79,509 |
Provision for credit losses | 1,150 | 950 | 1,400 | 1,700 | 2,900 |
Net interest income after |
|
|
|
|
|
provision for credit losses | 78,937 | 81,588 | 82,230 | 78,713 | 76,609 |
Non-sufficient funds (NSF) fees | 5,860 | 6,249 | 6,226 | 6,107 | 6,905 |
Debit card and ATM card income | 4,189 | 3,941 | 3,809 | 3,452 | 3,261 |
Service charges on |
|
|
|
|
|
deposits accounts | 2,515 | 2,472 | 2,511 | 2,483 | 2,614 |
Net gain on sale of assets | -- | 17 | 195 | 165 | 2 |
Net loss on sale of ORE | (473) | 95 | (366) | (160) | (915) |
Net loss on the sale of securities | -- | -- | (581) | -- | -- |
Other non-interest income | 1,974 | 1,807 | 1,736 | 1,820 | 2,038 |
Total non-interest income | 14,065 | 14,581 | 13,530 | 13,867 | 13,905 |
Salaries and benefits | 21,258 | 23,601 | 23,994 | 23,204 | 21,421 |
CDI amortization | 1,879 | 1,924 | 1,943 | 2,034 | 2,172 |
Net occupancy and equipment | 3,655 | 3,784 | 3,547 | 3,648 | 3,975 |
Depreciation | 2,051 | 2,041 | 2,037 | 2,021 | 1,999 |
Data processing |
|
|
|
|
|
and software amortization | 1,417 | 1,954 | 1,780 | 1,672 | 1,515 |
Regulatory assessments and FDIC insurance | 1,518 | 1,488 | 2,894 | 3,001 | 2,812 |
ORE expense | 680 | 235 | 294 | 292 | 1,013 |
Other non-interest expense | 5,927 | 6,124 | 6,025 | 5,823 | 6,320 |
Total non-interest expense | 38,385 | 41,151 | 42,514 | 41,695 | 41,227 |
Net income before taxes | 54,617 | 55,018 | 53,246 | 50,885 | 49,287 |
Federal income taxes | 18,211 | 18,645 | 18,154 | 17,007 | 16,489 |
Net income available |
|
|
|
|
|
to common shareholders | $ 36,406 | $ 36,373 | $ 35,092 | $ 33,878 | $ 32,798 |
Prosperity Bancshares, Inc.® Financial Highlights
| |||||
| Three Months Ended | ||||
| Dec 31, 2011 | Sept. 30, 2011 | June 30, 2011 | Mar 31, 2011 | Dec 31, 2010 |
Comparative Quarterly | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
Asset Quality, Performance |
|
|
|
|
|
& Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
Return on average |
|
|
|
|
|
assets (annualized) | 1.50% | 1.52% | 1.45% | 1.42% | 1.41% |
Return on average common |
|
|
|
|
|
equity (annualized) | 9.35% | 9.51% | 9.36% | 9.22% | 9.08% |
Return on average tangible |
|
|
|
|
|
equity (annualized) | 23.86% | 25.03% | 25.56% | 26.22% | 26.70% |
Net interest margin |
|
|
|
|
|
(tax equivalent) (annualized) | 3.82% | 4.02% | 4.06% | 4.02% | 3.99% |
|
|
|
|
|
|
Employees – FTE | 1,664 | 1,678 | 1,675 | 1,672 | 1,708 |
|
|
|
|
|
|
Efficiency ratio | 40.77% | 42.38% | 43.58% | 44.30% | 44.13% |
Non-performing assets to |
|
|
|
|
|
average earning assets | 0.14% | 0.16% | 0.15% | 0.16% | 0.20% |
Non-performing assets to loans |
|
|
|
|
|
and other real estate | 0.32% | 0.36% | 0.35% | 0.36% | 0.45% |
Net charge-offs to |
|
|
|
|
|
average loans | 0.06% | 0.01% | 0.03% | 0.04% | 0.08% |
Allowance for credit losses to |
|
|
|
|
|
total loans | 1.37% | 1.40% | 1.42% | 1.45% | 1.48% |
|
|
|
|
|
|
Book value per share | $33.41 | $32.87 | $32.24 | $31.65 | $31.11 |
|
|
|
|
|
|
Tangible book value per share | $13.25 | $12.67 | $11.99 | $11.31 | $10.70 |
|
|
|
|
|
|
Tier 1 risk-based capital | 15.90% | 15.47% | 14.72% | 14.00% | 13.64% |
|
|
|
|
|
|
Total risk-based capital | 17.09% | 16.69% | 15.93% | 15.21% | 14.87% |
|
|
|
|
|
|
Tier 1 leverage capital | 7.89% | 7.70% | 7.24% | 6.97% | 6.87% |
|
|
|
|
|
|
Tangible equity to tangible assets | 7.00% | 6.89% | 6.46% | 6.03% | 5.86% |
|
|
|
|
|
|
Equity to assets | 15.96% | 16.11% | 15.65% | 15.23% | 15.33% |
|
|
|
|
|
|
Prosperity Bancshares, Inc.® Supplemental Financial Data (Unaudited) (Dollars in thousands)
| ||||||
| Three Months Ended December 31, 2011 | Three Months Ended December 31, 2010 | ||||
YIELD ANALYSIS | Average | Interest Earned | Average | Average | Interest Earned | Average |
| Balance | / Interest Paid | Yield/Rate | Balance | / Interest Paid | Yield/Rate |
|
|
|
|
|
|
|
Interest Earning Assets: |
|
|
|
|
|
|
Loans | $ 3,749,923 | $ 53,899 | 5.70% | $ 3,421,698 | $ 52,722 | 6.11% |
Investment securities | 4,596,017 | 35,719 | 3.11% | 4,542,433 | 39,708 | 3.50% |
Federal funds sold and other |
|
|
|
|
|
|
earning assets | 62,035 | 40 | 0.26% | 14,305 | 6 | 0.17% |
Total interest earning assets | 8,407,975 | $ 89,658 | 4.23% | 7,978,436 | $ 92,436 | 4.60% |
Allowance for credit losses | (51,713) |
|
| (51,551) |
|
|
Non-interest earning assets | 1,373,217 |
|
| 1,394,266 |
|
|
Total assets | $ 9,729,479 |
|
| $ 9,321,151 |
|
|
|
|
|
|
|
|
|
Interest Bearing Liabilities: |
|
|
|
|
|
|
Interest bearing demand deposits | $ 1,363,900 | $ 1,450 | 0.42% | $ 1,291,312 | $ 1,772 | 0.54% |
Savings and money market deposits | 2,553,227 | 2,450 | 0.38% | 2,229,295 | 3,189 | 0.57% |
Certificates and other time deposits | 2,057,954 | 4,782 | 0.92% | 2,271,119 | 6,788 | 1.19% |
Securities sold under repurchase agreements | 60,999 | 63 | 0.41% | 77,759 | 110 | 0.56% |
Federal funds purchased and other borrowings | 66,834 | 194 | 1.15% | 198,677 | 265 | 0.53% |
Junior subordinated debentures | 85,055 | 632 | 2.95% | 92,265 | 803 | 3.45% |
Total interest bearing liabilities | $ 6,187,969 | $ 9,571 | 0.61%(H) | $ 6,160,427 | $ 12,927 | 0.83%(H) |
Non-interest bearing liabilities: |
|
|
|
|
|
|
Non-interest bearing demand deposits | $ 1,924,037 |
|
| $ 1,661,448 |
|
|
Other liabilities | 60,628 |
|
| 54,429 |
|
|
Total liabilities | $ 8,172,634 |
|
| $ 7,876,304 |
|
|
Shareholders' equity | $ 1,556,845 |
|
| $ 1,444,847 |
|
|
Total liabilities and shareholders' equity | $ 9,729,479 |
|
| $ 9,321,151 |
|
|
|
|
|
|
|
|
|
Net Interest Income & Margin |
| $ 80,087 | 3.78% |
| $ 79,509 | 3.95% |
|
|
|
|
|
|
|
Net Interest Income & Margin |
|
|
|
|
|
|
(tax equivalent) |
| $ 80,937 | 3.82% |
| $ 80,238 | 3.99% |
(H) The Company's total cost of funds, including non-interest bearing deposits was 0.47% and 0.66% for the three months ended December 31, 2011 and December 31, 2010, respectively. |
Prosperity Bancshares, Inc.® Supplemental Financial Data (Unaudited) (Dollars in thousands)
| ||||||
| Twelve Months Ended December 31, 2011 | Twelve Months Ended December 31, 2010 | ||||
YIELD ANALYSIS | Average | Interest Earned | Average | Average | Interest Earned | Average |
| Balance | / Interest Paid | Yield/Rate | Balance | / Interest Paid | Yield/Rate |
|
|
|
|
|
|
|
Interest Earning Assets: |
|
|
|
|
|
|
Loans | $ 3,648,701 | $ 214,273 | 5.87% | $ 3,394,502 | $ 209,711 | 6.18% |
Investment securities | 4,625,833 | 157,580 | 3.41% | 4,508,918 | 174,707 | 3.87% |
Federal funds sold and other |
|
|
|
|
|
|
earning assets | 26,879 | 55 | 0.20% | 48,944 | 119 | 0.24% |
Total interest earning assets | 8,301,413 | $ 371,908 | 4.48% | 7,952,364 | $ 384,537 | 4.84% |
Allowance for credit losses | (51,871) |
|
| (52,151) |
|
|
Non-interest earning assets | 1,379,342 |
|
| 1,378,167 |
|
|
Total assets | $ 9,628,884 |
|
| $ 9,278,380 |
|
|
|
|
|
|
|
|
|
Interest Bearing Liabilities: |
|
|
|
|
|
|
Interest bearing demand deposits | $ 1,393,501 | $ 7,416 | 0.53% | $ 1,336,400 | $ 8,994 | 0.67% |
Savings and money market deposits | 2,421,735 | 11,836 | 0.49% | 2,189,695 | 15,159 | 0.69% |
Certificates and other time deposits | 2,135,858 | 21,723 | 1.02% | 2,438,968 | 37,356 | 1.53% |
Securities sold under repurchase agreements | 68,049 | 369 | 0.54% | 81,623 | 595 | 0.73% |
Federal funds purchased and other borrowings |
152,716 |
912 |
0.60% |
109,260 |
1,035 |
0.95% |
Junior subordinated debentures | 86,557 | 2,984 | 3.45% | 92,265 | 3,250 | 3.52% |
Total interest bearing liabilities | 6,258,416 | $ 45,240 | 0.72%(I) | 6,248,211 | $ 66,389 | 1.06%(I) |
Non-interest bearing liabilities: |
|
|
|
|
|
|
Non-interest bearing demand deposits | 1,800,102 |
|
| 1,567,676 |
|
|
Other liabilities | 56,617 |
|
| 56,334 |
|
|
Total liabilities | 8,115,135 |
|
| 7,872,221 |
|
|
Shareholders' equity | 1,513,749 |
|
| 1,406,159 |
|
|
Total liabilities and shareholders' equity | $ 9,628,884 |
|
| $ 9,278,380 |
|
|
|
|
|
|
|
|
|
Net Interest Income & Margin |
| $ 326,668 | 3.94% |
| $ 318,148 | 4.00% |
|
|
|
|
|
|
|
Net Interest Income & Margin |
|
|
|
|
|
|
(tax equivalent) |
| $ 330,282 | 3.98% |
| $ 321,049 | 4.04% |
(I) The Company's total cost of funds, including non-interest bearing deposits was 0.56% and 0.85% for the years ended December 31, 2011 and December 31, 2010, respectively. |
Prosperity Bancshares, Inc.®
Notes to Selected Financial Data
(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 | ||||
Return on average tangible common equity: | Dec 31, 2011 | Sept 30, 2011 | June 30, 2011 | Mar 31, 2011 | Dec 31, 2010 |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
Net income | $ 36,406 | $ 36,373 | $ 35,092 | $ 33,878 | $ 32,798 |
Average shareholders' equity | 1,556,845 | 1,529,718 | 1,499,385 | 1,469,048 | 1,444,847 |
Less: Average goodwill and other intangible assets | (946,427) | (948,351) | (950,265) | (952,123) | (953,509) |
Average tangible shareholders' equity | $ 610,418 | $ 581,367 | $ 549,120 | $ 516,925 | $ 491,338 |
Return on average tangible common equity: | 23.86% | 25.03% | 25.56% | 26.22% | 26.70% |
|
|
|
|
|
|
Tangible book value per share: |
|
|
| ||
Shareholders' equity | $1,567,265 | $1,541,339 | $ 1,511,648 | $1,480,498 | $1,452,339 |
Less: Goodwill and other intangible assets | (945,533) | (947,411) | (949,336) | (951,279) | (953,034) |
Tangible shareholders' equity | $ 621,732 | $ 593,928 | $ 562,312 | $ 529,219 | $ 499,305 |
|
|
|
|
|
|
Period end shares outstanding | 46,910 | 46,893 | 46,888 | 46,782 | 46,684 |
Tangible book value per share: | $ 13.25 | $ 12.67 | $ 11.99 | $ 11.31 | $ 10.70 |
|
|
|
|
|
|
Tangible equity to tangible assets ratio: |
|
| |||
Tangible shareholders' equity | $ 621,732 | $ 593,928 | $ 562,312 | $ 529,219 | $ 499,305 |
|
|
|
|
|
|
Total assets | $9,822,671 | $9,567,087 | $ 9,657,147 | $9,722,947 | $9,476,572 |
Less: Goodwill and other intangible assets | (945,533) | (947,411) | (949,336) | (951,279) | (953,034) |
Tangible assets | $8,877,138 | $ 8,619,676 | $ 8,707,811 | $8,771,668 | $8,523,538 |
|
|
|
|
|
|
Tangible equity to tangible assets ratio: | 7.00% | 6.89% | 6.46% | 6.03% | 5.86% |
Prosperity Bancshares, Inc.® Notes to Selected Financial Data (Unaudited) (Dollars and share amounts in thousands, except per share data)
| ||
| Twelve Months Ended | |
| Dec 31, 2011 | Dec 31, 2010 |
Return on average tangible common equity: | (unaudited) | (unaudited) |
Net income | $ 141,749 | $ 127,708 |
Average shareholders' equity | 1,513,749 | 1,406,159 |
Less: Average goodwill and other intangible assets | (949,273) | (940,080) |
Average tangible shareholders' equity | $ 564,476 | $ 466,079 |
Return on average tangible common equity: | 25.11% | 27.40% |
|
|
|
Tangible book value per share: |
|
|
Shareholders equity | $ 1,567,265 | $ 1,452,339 |
Less: Goodwill and other intangible assets | (945,533) | (953,034) |
Tangible shareholders' equity | $ 621,732 | $ 499,305 |
|
|
|
Period end shares outstanding | 46,910 | 46,684 |
Tangible book value per share: | $ 13.25 | $ 10.70 |
|
|
|
Tangible equity to tangible assets ratio: |
| |
Tangible shareholders' equity | $ 621,732 | $ 499,305 |
|
|
|
Total assets | $ 9,822,671 | $ 9,476,572 |
Less: Goodwill and other intangible assets | (945,533) | (953,034) |
Tangible assets | $ 8,877,138 | $ 8,523,538 |
|
|
|
Tangible equity to tangible assets ratio: | 7.00% | 5.86% |
CONTACT: Dan Rollins, Bank Plaza President and Chief Operating Officer, +1-281-269-7199, dan.rollins@prosperitybanktx.com