UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 24, 2013
Prosperity Bancshares, Inc.
(Exact name of registrant as specified in its charter)
Texas | 1-35388 | 74-2331986 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
4295 San Felipe
Houston, Texas 77027
(Address of principal executive offices including zip code)
Registrant's telephone number, including area code: (281) 269-7199
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] 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. |
On July 24, 2013, Prosperity Bancshares, Inc. publicly disseminated a press release announcing its financial results for the second quarter and the six months ending June 30, 2013. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
As provided in General Instruction B.2 to Form 8-K, the information furnished in Item 2.02 and Exhibit 99.1 of this Current Report on Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits. The following is furnished as an exhibit to this Current Report on Form 8-K:
Exhibit | ||
Number | Description of Exhibit | |
99.1 | Press Release issued by Prosperity Bancshares, Inc. dated July 24, 2013. |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PROSPERITY BANCSHARES, INC. | ||
(Registrant) | ||
Dated: July 24, 2013 | By: | /s/ Charlotte M. Rasche |
Charlotte M. Rasche | ||
Executive Vice President and | ||
General Counsel |
exhibit index
Exhibit | |
Number | Description of Exhibit |
99.1 | Press Release issued by Prosperity Bancshares, Inc. dated July 24, 2013. |
Prosperity Bancshares, Inc.® Reports Strong Second Quarter 2013 Earnings
HOUSTON, July 24, 2013 /PRNewswire/ -- Prosperity Bancshares, Inc.® (NYSE: PB), the parent company of Prosperity Bank®, reported net income for the quarter ended June 30, 2013, of $53.844 million or $0.89 per diluted common share, an increase in net income of $16.872 million or 45.6%, compared with $36.972 million and an increase in diluted earnings per share of 14.1% compared with $0.78 per diluted common share for the same period in 2012.
"Again I am delighted to be able to announce record earnings of $53.844 million for the second quarter of 2013, as well as record earnings per diluted share of $0.89, representing a 14.1% increase over the same period last year. As you can see, our bank has experienced significant growth. In fact, our assets increased $5.533 billion, or 51.5%, when compared with the same quarter last year," said David Zalman, Prosperity's Chairman and Chief Executive Officer.
"During the past quarter, we completed our merger with Coppermark Bancshares, Inc. based in Oklahoma. The operational integration went very well and we believe the entire Coppermark team is ahead of schedule. We have thoroughly enjoyed working with the former Coppermark, now Prosperity, associates and customers in Oklahoma. You could not ask for a more professional group to work and grow with," said Zalman.
"On July 1, 2013, Prosperity announced the signing of a definitive merger agreement with FVNB Corp. and its wholly-owned subsidiary First Victoria National Bank headquartered in Victoria, Texas. I could not be more excited about joining forces with all of the professionals of First Victoria National Bank. We have always had a great deal of respect for the bank and all of the people that have contributed to its success Both of our banks do business in many of the same communities and we have knowledge of the specific needs of those communities in terms of financial products as well as community support. We believe this combination will further strengthen our already strong management and operations teams in South Texas and increase our ability to effectively compete and serve our customers," continued Zalman.
"We are also very pleased with our organic loan growth of 3.7% (14.6% annualized) on a linked quarter basis. It appears that customers are starting to invest more in their businesses by taking out more loans and using their deposits on hand to grow their business. The future for Oklahoma and Texas looks very bright with increasing populations and business moving to our states primarily because of structures that favor business and growth," added Zalman.
"Again we owe all of our success to our team of associates and board members who have helped grow the company in the right direction with all of their hard work, insight and dedication and for that I say thank you! We would also like to thank all of our customers for their business and loyalty to the bank," concluded Zalman.
Prosperity's management uses certain non−GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Specifically, Prosperity reviews tangible book value per share, return on average tangible common equity and the tangible equity to tangible assets ratio. In addition, due to the application of purchase accounting, Prosperity uses certain non-GAAP measures and ratios that exclude the impact of these items to evaluate its allowance for credit losses to total loans (excluding acquired loans accounted for under ASC Topics 310-20 and 310-30). Prosperity has included in this Earnings Release information relating to these non-GAAP financial measures for the applicable periods presented. Please refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures.
Results of operations for the three months ended June 30, 2013
For the three months ended June 30, 2013, net income was $53.844 million compared with $36.972 million for the same period in 2012. Net income per diluted common share was $0.89 for the three months ended June 30, 2013 compared with $0.78 for the same period in 2012. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended June 30, 2013 were 1.33%, 9.27% and 22.32%, respectively. Prosperity's efficiency ratio (excluding credit loss provisions, net gains and losses on the sale of assets and securities and taxes) was 42.51% for the three months ended June 30, 2013.
Net interest income before provision for credit losses for the quarter ended June 30, 2013, increased 41.9% to $118.742 million compared with $83.666 million during the same period in 2012. The increase is primarily due to a 47.5% increase in average interest-earning assets for the same period. Linked quarter net interest income before provision for credit losses increased 9.9% or $10.660 million to $118.742 million compared with $108.082 million during the three months ended March 31, 2013. The net interest margin on a tax equivalent basis decreased to 3.43% for the three months ended June 30, 2013, compared with 3.55% for the same period in 2012 and increased from 3.42% for the three months ended March 31, 2013.
Noninterest income increased $11.618 million or 85.1% to $25.274 million for the three months ended June 30, 2013, compared with $13.656 million for the same period in 2012. The increase was primarily due to increases in NSF fees, ATM and debit card income and service charges, as a result of a larger customer base, and trust and mortgage income as a result of the acquisition of American State Financial Corporation ("ASB") on July 1, 2012. Through ASB, Prosperity acquired additional services and products including trust, credit cards and mortgage lending operations. On a linked quarter basis, noninterest income increased 7.8% or $1.833 million.
Noninterest expense increased $20.512 million or 50.3% to $61.300 million for the three months ended June 30, 2013, compared with $40.788 million for the same period in 2012. The increase is primarily due to additional noninterest expenses associated with the acquisition of ASB on July 1, 2012 and Coppermark Bancshares, Inc. ("Coppermark Bank") on April 1, 2013. On a linked quarter basis, noninterest expense increased 9.9% or $5.533 million primarily due to an increase in salaries and benefits as a result of the acquisition of Coppermark Bank. Additionally, total noninterest expense for the three months ended June 30, 2013 included one-time pre-tax merger expenses of $610,000 primarily related to the Coppermark Bank acquisition.
Average loans increased 56.2% or $2.200 billion to $6.115 billion for the quarter ended June 30, 2013, compared with $3.914 billion for the same period in 2012. On a linked quarter basis, average loans increased 16.2% or $850.814 million from $5.264 billion at March 31, 2013. Average deposits increased 50.3% to $12.681 billion for the quarter ended June 30, 2013, compared with $8.436 billion for the same period of 2012. On a linked quarter basis, average deposits increased 7.8% or $921.297 million from $11.760 billion at March 31, 2013.
Loans at June 30, 2013 were $6.172 billion, an increase of $2.222 billion or 56.3%, compared with $3.950 billion at June 30, 2012. On a linked quarter basis, loans increased $909.459 million or 17.3% from $5.263 billion at March 31, 2013. Deposits at June 30, 2013 were $12.509 billion, an increase of $4.114 billion or 49.0% compared with $8.395 billion at June 30, 2012. On a linked quarter basis, deposits increased $795.183 million or 6.8% from $11.713 billion at March 31, 2013.
Results of operations for the six months ended June 30, 2013
For the six months ended June 30, 2013, net income was $103.149 million compared with $73.459 million for the same period in 2012. Net income per diluted common share was $1.76 for the six months ended June 30, 2013 compared with $1.55 for the same period in 2012. Returns on average assets, average common equity and average tangible common equity, each on an annualized basis, for the six months ended June 30, 2013 were 1.33%, 9.25%, and 22.31%, respectively. Prosperity's efficiency ratio (excluding credit loss provisions, net gains and losses on the sale of assets and securities and taxes) was 42.46% for the six months ended June 30, 2013.
Net interest income before provision for credit losses for the six months ended June 30, 2013 increased $61.312 million or 37.0% to $226.824 million compared with $165.512 million during the same period in 2012. The increase was attributable primarily to a 45.2% increase in average earning assets over the same period.
Noninterest income increased $21.114 million or 76.5% to $48.715 million for the six months ended June 30, 2013 compared with $27.601 million for the same period in 2012. The increase was primarily due to the additional services and products acquired through the acquisition of ASB on July 1, 2012.
Noninterest expense increased $35.820 million or 44.1% to $117.067 million for the six months ended June 30, 2013 compared with $81.247 million for the same period in 2012. This increase was primarily attributable to the increase in salaries and benefits as a result of the completion of five acquisitions over the past year. Additionally, total noninterest expense for the six months ended June 30, 2013 included one-time pre-tax merger expenses of $862,000.
Average loans increased 47.2% or $1.825 billion to $5.692 billion for the six months ended June 30, 2013, compared with $3.867 billion for the same period in 2012. Average deposits increased 45.0% to $12.223 billion for the six months ended June 30, 2013, compared with $8.432 billion for the same period in 2012.
The table below provides detail on loans acquired and deposits assumed in the The Bank Arlington, ASB, Community National Bank ("Community National"), East Texas Financial Services and Coppermark Bank transactions completed on April 1, 2012, July 1, 2012, October 1, 2012, January 1, 2013 and April 1, 2013, respectively:
Balance Sheet Data (at period end) |
|
|
|
|
| ||||
(In thousands) |
|
|
|
|
|
| |||
| Jun 30, 2013 |
| Mar 31, 2013 |
| Dec 31, 2012 |
| Sep 30, 2012 |
| Jun 30, 2012 |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
Loans acquired (including new production since respective acquisition dates): |
|
|
|
|
|
|
|
|
|
The Bank Arlington | $ 22,826 |
| $ 22,919 |
| $ 23,308 |
| $ 21,806 |
| $ 22,542 |
ASB | 967,732 |
| 974,223 |
| 1,068,077 |
| 1,131,005 |
| - |
Community National | 61,722 |
| 61,966 |
| 63,940 |
| - |
| - |
East Texas Financial Services | 111,626 |
| 117,863 |
| - |
| - |
| - |
Coppermark Bank | 772,965 |
| - |
| - |
| - |
| - |
All other | 4,235,612 |
| 4,086,053 |
| 4,024,615 |
| 3,926,292 |
| 3,927,790 |
Total loans | $ 6,172,483 |
| $ 5,263,024 |
| $ 5,179,940 |
| $ 5,079,103 |
| $ 3,950,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits assumed (including new deposits since respective acquisition dates): |
|
|
|
|
|
|
|
|
|
The Bank Arlington | $ 29,772 |
| $ 28,220 |
| $ 29,842 |
| $ 33,609 |
| $ 33,505 |
ASB | 2,367,198 |
| 2,461,485 |
| 2,510,855 |
| 2,518,178 |
| - |
Community National | 156,210 |
| 156,274 |
| 160,404 |
| - |
| - |
East Texas Financial Services | 88,289 |
| 98,359 |
| - |
| - |
| - |
Coppermark Bank | 1,087,137 |
| - |
| - |
| - |
| - |
All other | 8,780,044 |
| 8,969,129 |
| 8,940,743 |
| 8,402,810 |
| 8,361,077 |
Total deposits | $ 12,508,650 |
| $ 11,713,467 |
| $ 11,641,844 |
| $ 10,954,597 |
| $ 8,394,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reflected in the table above, loan and deposit growth was impacted by the acquisitions of The Bank Arlington, ASB, Community National, East Texas Financial Services and Coppermark Bank. Excluding loans acquired in these acquisitions and new production at the acquired banking centers since the respective acquisition dates, loans at June 30, 2013 grew 7.8% compared with June 30, 2012 and 3.7% (14.6% annualized) on a linked quarter basis. Excluding deposits assumed in these acquisitions and new deposits generated at the acquired banking centers since the respective acquisition dates, deposits at June 30, 2013 grew 5.0% compared with June 30, 2012 and decreased 2.1% on a linked quarter basis.
At June 30, 2013, Prosperity had $16.271 billion in total assets, $6.172 billion in loans and $12.509 billion in deposits. Assets, loans and deposits at June 30, 2013 increased by 51.5%, 56.3% and 49.0%, respectively, compared with their respective levels at June 30, 2012.
Asset Quality
Nonperforming assets totaled $14.864 million or 0.11% of quarterly average earning assets at June 30, 2013, compared with $11.873 million or 0.12% of quarterly average earning assets at June 30, 2012, and $18.133 million or 0.14% of quarterly average earnings assets at March 31, 2013. The allowance for credit losses was 0.91% of total loans at June 30, 2013, 1.28% of total loans at June 30, 2012 and 1.05% of total loans at March 31, 2013. Excluding loans acquired that are accounted for under ASC Topics 310-20 and 310-30, the allowance for credit losses was 1.18% and 1.25% of remaining loans as of June 30, 2013 and March 31, 2013, respectively. Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure.
The provision for credit losses was $2.550 million for the three months ended June 30, 2013 compared to $2.800 million for the three months ended March 31, 2013 and $600,000 for the three months ended June 30, 2012. Net charge offs were $1.423 million for the three months ended June 30, 2013 compared to $315,000 for the three months ended March 31, 2013 and $1.860 million for the three months ended June 30, 2012.
Conference Call
Prosperity's management team will host a conference call on Wednesday, July 24, 2013 at 10:30 a.m. Eastern Standard Time (9:30 a.m. Central Standard Time) to discuss Prosperity's second quarter 2013 earnings. Individuals and investment professionals may participate in the call by dialing 866-952-7532, the reference code is PBUS.
Alternatively, individuals may listen to the live webcast of the presentation by visiting Prosperity's website at http://www.prosperitybankusa.com. The webcast may be accessed directly from Prosperity's home page by clicking the "About Us" tab and then the "Presentations & Calls" link.
Pending Acquisition of FVNB Corp.
On July 1, 2013, Prosperity announced the signing of a definitive merger agreement with FVNB Corp. and its wholly-owned subsidiary First Victoria National Bank (collectively referred to as "FVNB") headquartered in Victoria, Texas. First Victoria National Bank operates thirty-four (34) banking offices; seven (7) in the South Texas area including Corpus Christi; six (6) in the Bryan/College Station area; five (5) in the Central Texas area including New Braunfels; and twelve (12) in the Houston area including The Woodlands and Huntsville. As of June 30, 2013, FVNB, on a consolidated basis, reported total assets of $2.417 billion, total loans of $1.648 billion and total deposits of $2.150 billion.
Under the terms of the definitive agreement, Prosperity will issue approximately 5,570,818 shares of Prosperity common stock plus $91.250 million in cash for all outstanding shares of FVNB Corp. capital stock, subject to certain conditions and potential adjustments. The transaction is subject to customary closing conditions, including the receipt of customary regulatory approvals and approval by FVNB's shareholders.
Acquisition of Coppermark Bancshares, Inc.
On April 1, 2013, Prosperity completed the previously announced acquisition of Coppermark Bancshares, Inc. and its wholly-owned subsidiary, Coppermark Bank ("Coppermark") headquartered in Oklahoma City, Oklahoma. Coppermark operated nine (9) full-service banking offices; six (6) in Oklahoma City, Oklahoma and surrounding areas and three (3) in the Dallas, Texas area. As of March 31, 2013, Coppermark reported, on a consolidated basis, total assets of $1.2 billion, total loans of $847.6 million and total deposits of $1.1 billion.
Pursuant to the terms of the acquisition agreement, Prosperity issued 3,258,718 shares of Prosperity common stock plus $60.0 million in cash for all outstanding shares of Coppermark Bancshares capital stock, which resulted in a premium of $91.7 million.
Acquisition of East Texas Financial Services, Inc.
On January 1, 2013, Prosperity completed the previously announced acquisition of East Texas Financial Services, Inc. (OTC BB: FFBT) and its wholly-owned subsidiary, First Federal Bank Texas ("Firstbank"). Firstbank operated four (4) banking offices in the Tyler MSA, including three locations in Tyler, Texas and one location in Gilmer, Texas. As of December 31, 2012, East Texas Financial Services reported, on a consolidated basis, total assets of $165.0 million, total loans of $129.3 million and total deposits of $112.3 million.
Pursuant to the terms of the acquisition agreement, Prosperity issued 530,940 shares of Prosperity common stock for all outstanding shares of East Texas Financial Services capital stock, which resulted in a premium of $7.0 million.
Acquisition of Community National Bank
On October 1, 2012, Prosperity completed the previously announced acquisition of Community National Bank, Bellaire, Texas. Community National operated one (1) banking office in Bellaire, Texas, in the Houston Metropolitan Area. As of September 30, 2012, Community National reported total assets of $183.0 million, total loans of $68.0 million and total deposits of $164.6 million.
Pursuant to the terms of the acquisition agreement, Prosperity issued 372,282 shares of Prosperity common stock plus $11.4 million in cash for all outstanding shares of Community National capital stock, which resulted in a premium of $10.6 million.
Acquisition of American State Financial Corporation
On July 1, 2012, Prosperity completed the previously announced acquisition of American State Financial Corporation and its wholly-owned subsidiary American State Bank. American State Bank operated thirty-seven (37) full-service banking offices in eighteen (18) counties across West Texas. As of June 30, 2012, ASB, on a consolidated basis, reported total assets of $3.2 billion, total loans of $1.2 billion and total deposits of $2.5 billion.
Pursuant to the terms of the acquisition agreement, Prosperity issued 8,524,835 shares of Prosperity common stock plus $178.5 million in cash for all outstanding shares of American State Financial Corporation capital stock, which resulted in a premium of $240.4 million.
Acquisition of The Bank Arlington
On April 1, 2012, Prosperity completed the previously announced acquisition of The Bank Arlington. The Bank Arlington operated one (1) banking office in Arlington, Texas, in the Dallas/Fort Worth CMSA. As of March 31, 2012, The Bank Arlington reported total assets of $37.3 million, total loans of $22.8 million and total deposits of $33.2 million.
Pursuant to the terms of the acquisition agreement, Prosperity issued 135,389 shares of Prosperity common stock for all outstanding shares of The Bank Arlington capital stock, which resulted in a premium of $2.8 million.
Prosperity Bancshares, Inc. ®
Prosperity Bancshares Inc. ® is a $16.271 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.prosperitybankusa.com, Retail Brokerage Services, MasterMoney Debit Cards, 24 hour voice response banking, Trust and Wealth Management; and Mobile Banking. Prosperity now operates two hundred nineteen (219) full-service banking locations; fifty-eight (58) in the Houston area; twenty (20) in the South Texas area including Corpus Christi and Victoria; thirty-five (35) in the Dallas/Fort Worth area; twenty-two (22) in the East Texas area; thirty-four (34) in the Central Texas area including Austin and San Antonio; thirty-four (34) in the West Texas area including Lubbock, Midland-Odessa and Abilene; ten (10) in the Bryan/College Station area and six (6) in the Central Oklahoma area.
Bryan/College Station Area - | Midway | First Colony | Goliad |
| Plano | Gessner | Kingsville |
Bryan | Preston Forest | Gladebrook | Mathis |
Bryan-East | Preston Road | Heights | Padre Island |
Bryan-North | Red Oak | Highway 6 West | Palacios |
Caldwell | Sachse | Hillcroft | Port Lavaca |
College Station | The Colony | Little York | Portland |
Greens Prairie | Turtle Creek | Medical Center | Rockport |
Madisonville | Westmoreland | Memorial Drive | Sinton |
Navasota |
| Northside | Victoria |
Rock Prairie | Fort Worth - | Pasadena | Victoria-North |
Wellborn Road | Haltom City | Pecan Grove |
|
| Keller | Piney Point | West Texas Area - |
Central Texas Area - | Roanoke | River Oaks |
|
| Stockyards | Royal Oaks | Abilene - |
Austin - |
| Sugar Land | Antilley Road |
183 | Other Dallas/Fort Worth Locations - | SW Medical Center | Barrow Street |
Allandale | Arlington | Tanglewood | Cypress Street |
Cedar Park | Azle | Uptown | Judge Ely |
Congress | Ennis | Waugh Drive | Mockingbird |
Lakeway | Gainesville | West University |
|
Liberty Hill | Glen Rose | Woodcreek | Lubbock - |
Northland | Granbury |
| 4th Street |
Oak Hill | Mesquite | Other Houston Area Locations - | 66th Street |
Parmer Lane | Muenster | Angleton | 82nd Street |
Research Blvd | Sanger | Bay City | 86th Street |
Westlake | Waxahachie | Beaumont | 98th Street |
| Weatherford | Cinco Ranch | Avenue Q |
Other Central Texas Locations - |
| Cleveland | North University |
Bastrop | East Texas Area - | East Bernard | Texas Tech Student Union |
Cuero |
| El Campo |
|
Dime Box | Athens | Dayton | Midland - |
Dripping Springs | Blooming Grove | Galveston | Wadley |
Elgin | Canton | Groves | Wall Street |
Flatonia | Carthage | Hempstead |
|
Georgetown | Corsicana | Hitchcock | Odessa - |
Gonzales | Crockett | Katy | Grandview |
Hallettsville | Eustace | Liberty | Grant |
Kingsland | Gilmer | Magnolia | Kermit Highway |
La Grange | Grapeland | Mont Belvieu | Parkway |
Lexington | Gun Barrel City | Nederland |
|
New Braunfels | Jacksonville | Needville | Other West Texas Locations - |
Pleasanton | Kerens | Shadow Creek | Big Spring |
Round Rock | Longview | Sweeny | Brownfield |
San Antonio | Mount Vernon | Tomball | Brownwood |
Schulenburg | Palestine | Waller | Cisco |
Seguin | Rusk | West Columbia | Comanche |
Smithville | Seven Points | Wharton | Early |
Thorndale | Teague | Winnie | Floydada |
Weimar | Tyler-Beckham | Wirt | Gorman |
Yoakum | Tyler-South Broadway |
| Levelland |
Yorktown | Tyler-University | South Texas Area - | Littlefield |
| Winnsboro |
| Merkel |
Dallas/Fort Worth Area - |
| Corpus Christi - | Plainview |
| Houston Area - | Airline | San Angelo |
Dallas - |
| Carmel | Slaton |
Abrams Centre | Houston - | Northwest | Snyder |
Balch Springs | Aldine | Saratoga |
|
Camp Wisdom | Allen Parkway | Water Street | Oklahoma |
Cedar Hill | Bellaire |
| 23rd Street |
Dallas – Central Expressway | Beltway | Other South Texas Locations - | Edmond |
Frisco | Clear Lake | Alice | Expressway |
Frisco-West | Copperfield | Aransas Pass | I-240 |
Independence | Cypress | Beeville | Memorial |
Kiest | Downtown | Edna | Norman |
McKinney | Eastex |
|
|
McKinney-Stonebridge | Fairfield |
|
|
|
|
|
|
In connection with the proposed merger of FVNB Corp. into Prosperity Bancshares, Prosperity Bancshares 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 of FVNB Corp. The registration statement will include a proxy statement/prospectus which will be sent to the shareholders of FVNB Corp. 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, FVNB CORP. 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; and weather. These and various other factors are discussed in Prosperity's Annual Report on Form 10-K for the year ended December 31, 2012 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 http://www.prosperitybankusa.com.
| |||||||||
| |||||||||
Prosperity Bancshares, Inc.® | |||||||||
Financial Highlights (Unaudited) | |||||||||
(In thousands) | |||||||||
|
|
|
|
|
|
|
|
|
|
| Jun 30, 2013 |
| Mar 31, 2013 |
| Dec 31, 2012 |
| Sep 30, 2012 |
| Jun 30, 2012 |
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
(at period end) |
|
|
|
|
|
|
| ||
Total loans | $ 6,172,483 |
| $ 5,263,024 |
| $ 5,179,940 |
| $ 5,079,103 |
| $ 3,950,332 |
Investment securities(A) | 8,017,884 |
| 7,985,811 |
| 7,442,065 |
| 6,799,513 |
| 5,400,044 |
Federal funds sold | 606 |
| 835 |
| 352 |
| 302 |
| 133 |
Allowance for credit losses | (56,176) |
| (55,049) |
| (52,564) |
| (50,927) |
| (50,382) |
Cash and due from banks | 250,542 |
| 180,577 |
| 325,952 |
| 207,650 |
| 152,678 |
Goodwill | 1,350,834 |
| 1,235,743 |
| 1,217,162 |
| 1,200,098 |
| 932,965 |
Core deposit intangibles | 26,688 |
| 26,514 |
| 26,159 |
| 28,092 |
| 17,706 |
Other real estate | 10,244 |
| 9,913 |
| 7,234 |
| 8,846 |
| 10,236 |
Fixed assets, net | 227,455 |
| 206,829 |
| 205,268 |
| 201,445 |
| 166,273 |
Other assets | 270,158 |
| 227,117 |
| 232,005 |
| 237,997 |
| 157,366 |
Total assets | $ 16,270,718 |
| $ 15,081,314 |
| $ 14,583,573 |
| $ 13,712,119 |
| $ 10,737,351 |
|
|
|
|
|
|
|
|
|
|
Demand deposits | $ 3,283,082 |
| $ 2,995,828 |
| $ 3,016,205 |
| $ 2,827,748 |
| $ 2,083,910 |
Interest bearing deposits | 9,225,568 |
| 8,717,639 |
| 8,625,639 |
| 8,126,849 |
| 6,310,672 |
Total deposits | 12,508,650 |
| 11,713,467 |
| 11,641,844 |
| 10,954,597 |
| 8,394,582 |
Securities sold under repurchase agreements | 481,170 |
| 470,241 |
| 454,502 |
| 443,856 |
| 122,743 |
Federal funds purchased and other borrowings | 781,215 |
| 576,768 |
| 256,753 |
| 112,017 |
| 437,278 |
Junior subordinated debentures | 85,055 |
| 85,055 |
| 85,055 |
| 85,055 |
| 85,055 |
Other liabilities | 69,346 |
| 86,328 |
| 56,030 |
| 78,418 |
| 53,876 |
Total liabilities | 13,925,436 |
| 12,931,859 |
| 12,494,184 |
| 11,673,943 |
| 9,093,534 |
Shareholders' equity(B) | 2,345,282 |
| 2,149,455 |
| 2,089,389 |
| 2,038,176 |
| 1,643,817 |
Total liabilities and equity | $ 16,270,718 |
| $ 15,081,314 |
| $ 14,583,573 |
| $ 13,712,119 |
| $ 10,737,351 |
|
|
|
|
|
|
|
|
|
|
(A) Includes $9,724, $12,054, $13,824, $16,991 and $17,709, in unrealized gains on available for sale securities for the quarterly periods ending June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, respectively. | |||||||||
(B) Includes $6,321, $7,835, $8,986, $11,044 and $11,511, in after-tax unrealized gains on available for sale securities for the quarterly periods ending June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, respectively. |
| |||||||||||||
| |||||||||||||
Prosperity Bancshares, Inc.® | |||||||||||||
Financial Highlights (Unaudited) | |||||||||||||
(In thousands) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Year-to-Date | ||||||||||
| Jun 30, 2013 |
| Mar 31, 2013 |
| Dec 31, 2012 |
| Sep 30, 2012 |
| Jun 30, 2012 |
| Jun 30, 2013 |
| Jun 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans | $ 89,842 |
| $ 81,464 |
| $ 82,727 |
| $ 80,587 |
| $ 54,793 |
| $ 171,306 |
| $ 108,010 |
Securities(C) | 39,384 |
| 36,548 |
| 34,956 |
| 37,025 |
| 38,072 |
| 75,932 |
| 76,393 |
Federal funds sold and other earning assets | 76 |
| 19 |
| 36 |
| 21 |
| 9 |
| 95 |
| 87 |
Total interest income | 129,302 |
| 118,031 |
| 117,719 |
| 117,633 |
| 92,874 |
| 247,333 |
| 184,490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits | 9,170 |
| 8,690 |
| 8,217 |
| 9,395 |
| 8,083 |
| 17,860 |
| 16,874 |
Junior subordinated debentures | 606 |
| 605 |
| 631 |
| 651 |
| 648 |
| 1,211 |
| 1,311 |
Securities sold under repurchase agreements | 312 |
| 292 |
| 294 |
| 315 |
| 59 |
| 604 |
| 96 |
Other borrowings | 472 |
| 362 |
| 276 |
| 379 |
| 418 |
| 834 |
| 697 |
Total interest expense | 10,560 |
| 9,949 |
| 9,418 |
| 10,740 |
| 9,208 |
| 20,509 |
| 18,978 |
Net interest income | 118,742 |
| 108,082 |
| 108,301 |
| 106,893 |
| 83,666 |
| 226,824 |
| 165,512 |
Provision for credit losses | 2,550 |
| 2,800 |
| 3,550 |
| 1,800 |
| 600 |
| 5,350 |
| 750 |
Net interest income after provision for credit losses | 116,192 |
| 105,282 |
| 104,751 |
| 105,093 |
| 83,066 |
| 221,474 |
| 164,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds (NSF) fees | 8,346 |
| 8,509 |
| 9,292 |
| 9,265 |
| 5,167 |
| 16,855 |
| 10,556 |
Debit card and ATM card income | 7,007 |
| 6,487 |
| 6,683 |
| 6,246 |
| 4,292 |
| 13,494 |
| 8,128 |
Service charges on deposit accounts | 3,304 |
| 2,931 |
| 2,877 |
| 3,362 |
| 2,432 |
| 6,235 |
| 4,873 |
Trust income | 896 |
| 1,017 |
| 915 |
| 831 |
| - |
| 1,913 |
| - |
Mortgage income | 1,567 |
| 991 |
| 1,120 |
| 1,437 |
| 65 |
| 2,558 |
| 124 |
Bank owned life insurance income | 932 |
| 776 |
| 1,242 |
| 736 |
| 345 |
| 1,708 |
| 694 |
Net (loss) gain on sale of assets | (180) |
| 1 |
| (244) |
| (50) |
| 70 |
| (179) |
| 63 |
Net gain (loss) on sale of other real estate | 237 |
| (105) |
| (113) |
| (597) |
| (165) |
| 132 |
| 253 |
Other noninterest income | 3,165 |
| 2,834 |
| 2,334 |
| 2,598 |
| 1,450 |
| 5,999 |
| 2,910 |
Total noninterest income | 25,274 |
| 23,441 |
| 24,106 |
| 23,828 |
| 13,656 |
| 48,715 |
| 27,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits | 37,517 |
| 33,209 |
| 31,980 |
| 36,701 |
| 23,572 |
| 70,726 |
| 46,824 |
Core deposit intangibles amortization | 1,341 |
| 1,755 |
| 1,932 |
| 2,007 |
| 1,595 |
| 3,096 |
| 3,290 |
Net occupancy and equipment | 4,669 |
| 4,278 |
| 4,812 |
| 4,614 |
| 3,492 |
| 8,947 |
| 7,049 |
Depreciation | 2,464 |
| 2,378 |
| 2,491 |
| 2,369 |
| 2,028 |
| 4,842 |
| 4,063 |
Debit card, data processing and software amortization | 3,249 |
| 2,570 |
| 3,106 |
| 2,901 |
| 1,906 |
| 5,819 |
| 3,438 |
Regulatory assessments and FDIC insurance | 2,579 |
| 2,395 |
| 2,365 |
| 2,107 |
| 1,659 |
| 4,974 |
| 3,207 |
Communications (includes telephone, courier and postage) | 2,410 |
| 2,196 |
| 2,381 |
| 2,226 |
| 1,802 |
| 4,606 |
| 3,550 |
Other real estate expense | 237 |
| 223 |
| 465 |
| 271 |
| 383 |
| 460 |
| 1,074 |
Other non-interest expense | 6,834 |
| 6,763 |
| 7,436 |
| 7,046 |
| 4,351 |
| 13,597 |
| 8,752 |
Total non-interest expense | 61,300 |
| 55,767 |
| 56,968 |
| 60,242 |
| 40,788 |
| 117,067 |
| 81,247 |
Net income before taxes | 80,166 |
| 72,956 |
| 71,889 |
| 68,679 |
| 55,934 |
| 153,122 |
| 111,116 |
Federal income taxes | 26,322 |
| 23,651 |
| 23,623 |
| 22,503 |
| 18,962 |
| 49,973 |
| 37,657 |
Net income available to common shareholders | $ 53,844 |
| $ 49,305 |
| $ 48,266 |
| $ 46,176 |
| $ 36,972 |
| $ 103,149 |
| $ 73,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C) Interest income on securities was reduced by net premium amortization of $18,838, $22,710, $23,992, $21,423 and $11,755 for the three month periods ended June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, respectively, and $41,548 and $21,474 for the six month periods ended June 30, 2013 and 2012, respectively. |
| |||||||||||||
| |||||||||||||
Prosperity Bancshares, Inc.® | |||||||||||||
Financial Highlights (Unaudited) | |||||||||||||
(Dollars and share amounts in thousands, except per share data and market prices) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Year-to-Date | ||||||||||
| Jun 30, 2013 |
| Mar 31, 2013 |
| Dec 31, 2012 |
| Sep 30, 2012 |
| Jun 30, 2012 |
| Jun 30, 2013 |
| Jun 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income | $ 53,844 |
| $ 49,305 |
| $ 48,266 |
| $ 46,176 |
| $ 36,972 |
| $ 103,149 |
| $ 73,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share | $ 0.89 |
| $ 0.87 |
| $ 0.86 |
| $ 0.83 |
| $ 0.78 |
| $ 1.76 |
| $ 1.55 |
Diluted earnings per share | $ 0.89 |
| $ 0.86 |
| $ 0.85 |
| $ 0.82 |
| $ 0.78 |
| $ 1.76 |
| $ 1.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets(D) | 1.33% |
| 1.33% |
| 1.36% |
| 1.32% |
| 1.35% |
| 1.33% |
| 1.37% |
Return on average common equity(D) | 9.27% |
| 9.23% |
| 9.28% |
| 9.10% |
| 9.06% |
| 9.25% |
| 9.10% |
Return on average tangible common equity(D) (E) | 22.32% |
| 22.30% |
| 22.92% |
| 21.59% |
| 21.70% |
| 22.31% |
| 22.12% |
Tax equivalent net interest margin(F) | 3.43% |
| 3.42% |
| 3.53% |
| 3.52% |
| 3.55% |
| 3.43% |
| 3.60% |
Efficiency ratio(G) | 42.51% |
| 42.40% |
| 42.95% |
| 46.07% |
| 41.94% |
| 42.46% |
| 42.09% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets | 14.41% |
| 14.25% |
| 14.33% |
| 14.86% |
| 15.31% |
| 14.41% |
| 15.31% |
Tier 1 risk-based capital | 14.15% |
| 14.77% |
| 14.40% |
| 14.43% |
| 16.42% |
| 14.15% |
| 16.42% |
Total risk-based capital | 14.91% |
| 15.61% |
| 15.22% |
| 15.26% |
| 17.49% |
| 14.91% |
| 17.49% |
Tier 1 leverage capital | 7.07% |
| 7.10% |
| 7.10% |
| 6.92% |
| 7.69% |
| 7.07% |
| 7.69% |
Tangible equity to tangible assets(E) | 6.50% |
| 6.42% |
| 6.34% |
| 6.49% |
| 7.08% |
| 6.50% |
| 7.08% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computed earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic | 60,250 |
| 56,988 |
| 56,427 |
| 55,958 |
| 47,456 |
| 58,629 |
| 47,347 |
Diluted | 60,394 |
| 57,134 |
| 56,554 |
| 56,093 |
| 47,608 |
| 58,774 |
| 47,508 |
Period end shares outstanding | 60,315 |
| 57,014 |
| 56,447 |
| 56,058 |
| 47,474 |
| 60,315 |
| 47,474 |
Cash dividends paid per common share | $ 0.2150 |
| $ 0.2150 |
| $ 0.2150 |
| $ 0.1950 |
| $ 0.1950 |
| $ 0.4300 |
| $ 0.3900 |
Book value per share | $ 38.88 |
| $ 37.70 |
| $ 37.02 |
| $ 36.36 |
| $ 34.63 |
| $ 38.88 |
| $ 34.63 |
Tangible book value per share(E) | $ 16.05 |
| $ 15.56 |
| $ 14.99 |
| $ 14.45 |
| $ 14.60 |
| $ 16.05 |
| $ 14.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Market Price |
|
|
|
|
|
|
|
|
|
|
|
|
|
High | $ 52.38 |
| $ 47.56 |
| $ 43.54 |
| $ 45.40 |
| $ 47.31 |
| $ 52.38 |
| $ 47.66 |
Low | 44.33 |
| 42.38 |
| 38.56 |
| 38.90 |
| 39.87 |
| 42.38 |
| 39.66 |
Period end market price | 51.79 |
| 47.39 |
| 42.00 |
| 42.62 |
| 42.03 |
| 51.79 |
| 42.03 |
Employees – FTE | 2,496 |
| 2,304 |
| 2,266 |
| 2,260 |
| 1,666 |
| 2,496 |
| 1,666 |
Number of banking centers | 219 |
| 224 |
| 217 |
| 213 |
| 176 |
| 219 |
| 176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(D) Interim periods annualized. |
|
|
|
|
|
|
|
|
| ||||
(E) Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure. | |||||||||||||
(F) Net interest margin for all periods presented is calculated on an actual 365 day basis or 366 day basis. | |||||||||||||
(G) Calculated by dividing total non-interest expense, excluding credit loss provisions, by net interest income plus noninterest 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 (Unaudited) | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD ANALYSIS | Three Months Ended |
| ||||||||||||||||
| Jun 30, 2013 |
| Mar 31, 2013 |
| Jun 30, 2012 |
| ||||||||||||
| Average Balance |
| Interest Earned/ Interest Paid |
| Average Yield/ Rate |
| Average Balance |
| Interest Earned/ Interest Paid |
| Average Yield/ Rate |
| Average Balance |
| Interest Earned/ Interest Paid |
| Average Yield/ Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans | $ 6,114,598 |
| $ 89,842 |
| 5.89% |
| $ 5,263,784 |
| $ 81,464 |
| 6.28% |
| $ 3,914,352 |
| $ 54,793 |
| 5.63% |
|
Investment securities | 7,964,157 |
| 39,384 |
| 1.98% | (H) | 7,755,567 |
| 36,548 |
| 1.91% | (H) | 5,635,810 |
| 38,072 |
| 2.70% | (H) |
Federal funds sold and other earning assets | 35,113 |
| 76 |
| 0.87% |
| 34,793 |
| 19 |
| 0.22% |
| 20,916 |
| 9 |
| 0.17% |
|
Total interest earning assets | 14,113,868 |
| $ 129,302 |
| 3.67% |
| 13,054,144 |
| $ 118,031 |
| 3.67% |
| 9,571,078 |
| $ 92,874 |
| 3.90% |
|
Allowance for credit losses | (57,754) |
|
|
|
|
| (53,242) |
|
|
|
|
| (50,746) |
|
|
|
|
|
Noninterest-earning assets | 2,114,816 |
|
|
|
|
| 1,849,461 |
|
|
|
|
| 1,398,857 |
|
|
|
|
|
Total assets | $ 16,170,930 |
|
|
|
|
| $ 14,850,363 |
|
|
|
|
| $ 10,919,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits | $ 2,580,750 |
| $ 2,100 |
| 0.33% |
| $ 2,659,489 |
| $ 2,210 |
| 0.34% |
| $ 1,706,176 |
| $ 2,089 |
| 0.49% |
|
Savings and money market deposits | 4,261,466 |
| 3,172 |
| 0.30% |
| 3,790,416 |
| 2,829 |
| 0.30% |
| 2,779,524 |
| 2,444 |
| 0.35% |
|
Certificates and other time deposits | 2,543,895 |
| 3,898 |
| 0.61% |
| 2,370,499 |
| 3,651 |
| 0.62% |
| 1,880,096 |
| 3,550 |
| 0.76% |
|
Securities sold under repurchase agreements | 471,430 |
| 312 |
| 0.27% |
| 448,542 |
| 292 |
| 0.26% |
| 98,968 |
| 59 |
| 0.24% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds purchased and other borrowings | 541,034 |
| 472 |
| 0.35% |
| 358,120 |
| 362 |
| 0.41% |
| 610,499 |
| 418 |
| 0.28% |
|
Junior subordinated debentures | 85,055 |
| 606 |
| 2.86% |
| 85,055 |
| 605 |
| 2.88% |
| 85,055 |
| 648 |
| 3.06% |
|
Total interest-bearing liabilities | 10,483,630 |
| 10,560 |
| 0.40% | (I) | 9,712,121 |
| 9,949 |
| 0.42% | (I) | 7,160,318 |
| 9,208 |
| 0.52% | (I) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits | 3,295,211 |
|
|
|
|
| 2,939,621 |
|
|
|
|
| 2,069,965 |
|
|
|
|
|
Other liabilities | 69,741 |
|
|
|
|
| 62,716 |
|
|
|
|
| 56,742 |
|
|
|
|
|
Total liabilities | 13,848,582 |
|
|
|
|
| 12,714,458 |
|
|
|
|
| 9,287,025 |
|
|
|
|
|
Shareholders' equity | 2,322,348 |
|
|
|
|
| 2,135,905 |
|
|
|
|
| 1,632,164 |
|
|
|
|
|
Total liabilities and shareholders' equity | $ 16,170,930 |
|
|
|
|
| $ 14,850,363 |
|
|
|
|
| $ 10,919,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin |
|
| $ 118,742 |
| 3.37% |
|
|
| $ 108,082 |
| 3.36% |
|
|
| $ 83,666 |
| 3.52% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP to GAAP reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent adjustment |
|
| 2,063 |
|
|
|
|
| 2,125 |
|
|
|
|
| 832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin (tax equivalent basis) |
|
| $ 120,805 |
| 3.43% |
|
|
| $ 110,207 |
| 3.42% |
|
|
| $ 84,498 |
| 3.55% |
|
|
| |||||||||||||||||
(H) Yield on securities was impacted by net premium amortization of $18,838, $22,710 and $11,755 for the three month periods ended June 30, 2013, March 31, 2013, and June 30, 2012, respectively. |
| |||||||||||||||||
(I) Total cost of funds, including non-interest bearing deposits, was 0.31%, 0.32% and 0.40% for the three months ended June 30, 2013, March 31, 2013 and June 30, 2012, respectively. |
|
| ||||||||||||
| ||||||||||||
Prosperity Bancshares, Inc.® | ||||||||||||
Financial Highlights (Unaudited) | ||||||||||||
(Dollars in thousands) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD ANALYSIS | Year-to-Date |
| ||||||||||
| Jun 30, 2013 |
| Jun 30, 2012 |
| ||||||||
| Average Balance |
| Interest Earned/ Interest Paid |
| Average Yield/ Rate |
| Average Balance |
| Interest Earned/ Interest Paid |
| Average Yield/ Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans | $ 5,691,541 |
| $171,306 |
| 6.07% |
| $ 3,866,672 |
| $108,010 |
| 5.62% |
|
Investment securities | 7,860,438 |
| 75,932 |
| 1.95% | (J) | 5,414,033 |
| 76,393 |
| 2.82% | (J) |
Federal funds sold and other earning assets | 34,954 |
| 95 |
| 0.55% |
| 73,536 |
| 87 |
| 0.24% |
|
Total interest-earning assets | 13,586,933 |
| $247,333 |
| 3.67% |
| 9,354,241 |
| $184,490 |
| 3.97% |
|
Allowance for credit losses | (55,513) |
|
|
|
|
| (51,174) |
|
|
|
|
|
Noninterest-earning assets | 1,982,871 |
|
|
|
|
| 1,403,182 |
|
|
|
|
|
Total assets | $ 15,514,291 |
|
|
|
|
| $ 10,706,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits | $ 2,619,902 |
| $ 4,309 |
| 0.33% |
| $ 1,700,208 |
| $ 4,152 |
| 0.49% |
|
Savings and money market deposits | 4,027,242 |
| 6,001 |
| 0.30% |
| 2,785,936 |
| 5,033 |
| 0.36% |
|
Certificates and other time deposits | 2,457,676 |
| 7,550 |
| 0.62% |
| 1,925,584 |
| 7,689 |
| 0.80% |
|
Securities sold under repurchase agreements | 460,049 |
| 604 |
| 0.26% |
| 76,136 |
| 96 |
| 0.25% |
|
Federal funds purchased and other borrowings | 450,082 |
| 834 |
| 0.37% |
| 441,630 |
| 697 |
| 0.32% |
|
Junior subordinated debentures | 85,055 |
| 1,211 |
| 2.87% |
| 85,055 |
| 1,311 |
| 3.10% |
|
Total interest bearing liabilities | 10,100,006 |
| 20,509 |
| 0.41% | (K) | 7,014,549 |
| 18,978 |
| 0.54% | (K) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits | 3,118,400 |
|
|
|
|
| 2,020,453 |
|
|
|
|
|
Other liabilities | 66,251 |
|
|
|
|
| 57,523 |
|
|
|
|
|
Total liabilities | 13,284,657 |
|
|
|
|
| 9,092,525 |
|
|
|
|
|
Shareholders' equity | 2,229,634 |
|
|
|
|
| 1,613,724 |
|
|
|
|
|
Total liabilities and shareholders' equity | $ 15,514,291 |
|
|
|
|
| $ 10,706,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin |
|
| $226,824 |
| 3.37% |
|
|
| $165,512 |
| 3.56% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP to GAAP reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent adjustment |
|
| 4,188 |
|
|
|
|
| 1,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin (tax equivalent basis) |
|
| $231,012 |
| 3.43% |
|
|
| $167,240 |
| 3.60% |
|
|
| |||||||||||
(J) Yield on securities was impacted by net premium amortization of $41,548 and $21,474 for the six month periods ended June 30, 2013 and June 30, 2012, respectively. |
| |||||||||||
(K) Total cost of funds, including non-interest bearing deposits, was 0.31% and 0.42% for the six months ended June 30, 2013, and June 30, 2012, respectively. |
|
| |||||||||||||
| |||||||||||||
Prosperity Bancshares, Inc.® | |||||||||||||
Financial Highlights (Unaudited) | |||||||||||||
(Dollars in thousands) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Year-to-Date | ||||||||||
| Jun 30, 2013 |
| Mar 31, 2013 |
| Dec 31, 2012 |
| Sep 30, 2012 |
| Jun 30, 2012 |
| Jun 30, 2013 |
| Jun 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment to Loan Yield (L) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on loans, as reported | $ 89,842 |
| $ 81,464 |
| $ 82,727 |
| $ 80,587 |
| $ 54,793 |
| $ 171,306 |
| $ 108,010 |
Less: Purchase accounting adjustment-loan discount accretion | (12,031) |
| (14,292) |
| (14,523) |
| (11,188) |
| (756) |
| (26,323) |
| (701) |
Interest on loans without discount accretion | $ 77,811 |
| $ 67,172 |
| $ 68,204 |
| $ 69,399 |
| $ 54,037 |
| $ 144,983 |
| $ 107,309 |
Average loans | $ 6,114,598 |
| $ 5,263,784 |
| $ 5,140,163 |
| $ 5,169,101 |
| $ 3,914,352 |
| $ 5,691,541 |
| $ 3,866,672 |
Loan yield without discount accretion | 5.10% |
| 5.18% |
| 5.28% |
| 5.34% |
| 5.55% |
| 5.14% |
| 5.58% |
Loan yield, as reported | 5.89% |
| 6.28% |
| 6.40% |
| 6.20% |
| 5.63% |
| 6.07% |
| 5.62% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Year-to-Date | ||||||||||
| Jun 30, 2013 |
| Mar 31, 2013 |
| Dec 31, 2012 |
| Sep 30, 2012 |
| Jun 30, 2012 |
| Jun 30, 2013 |
| Jun 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment to Securities Yield (L) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on securities, as reported | $ 39,384 |
| $ 36,548 |
| $ 34,956 |
| $ 37,025 |
| $ 38,072 |
| $ 75,932 |
| $ 76,393 |
Add: Purchase accounting adjustment-securities amortization | 2,599 |
| 3,106 |
| 3,540 |
| 3,451 |
| - |
| 5,705 |
| - |
Interest on securities including amortization | $ 41,983 |
| $ 39,654 |
| $ 38,496 |
| $ 40,476 |
| $ 38,072 |
| $ 81,637 |
| $ 76,393 |
Average securities | $ 7,964,157 |
| $ 7,755,567 |
| $ 7,228,418 |
| $ 7,106,871 |
| $ 5,635,810 |
| $ 7,860,438 |
| $ 5,414,033 |
Securities yield without purchase accounting adjustment | 2.11% |
| 2.07% |
| 2.12% |
| 2.28% |
| 2.72% |
| 2.09% |
| 2.82% |
Securities yield, as reported | 1.98% |
| 1.91% |
| 1.92% |
| 2.08% |
| 2.70% |
| 1.95% |
| 2.82% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin (tax equivalent basis, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
purchase accounting adjustments to yield) | 3.09% |
| 3.08% |
| 3.18% |
| 3.16% |
| 3.52% |
| 3.12% |
| 3.60% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin (tax equivalent basis), as reported | 3.43% |
| 3.42% |
| 3.53% |
| 3.52% |
| 3.55% |
| 3.43% |
| 3.60% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders, as reported | $ 53,844 |
| $ 49,305 |
| $ 48,266 |
| $ 46,176 |
| $ 36,972 |
| $ 103,149 |
| $ 73,459 |
Less: Purchase accounting adjustments, net of tax (M) | (6,319) |
| (7,606) |
| (7,469) |
| (5,261) |
| (514) |
| (13,925) |
| (477) |
Net income available to common shareholders, adjusted | $ 47,525 |
| $ 41,699 |
| $ 40,797 |
| $ 40,915 |
| $ 36,458 |
| $ 89,224 |
| $ 72,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Acquired Loans Accounted for Under ASC 310-20 |
| Acquired Loans Accounted for Under ASC 310-30 |
| Total Loans Accounted for Under ASC 310-20 and 310-30 |
|
| ||||||
| Balance at Acquisition Date |
| Remaining Balance at June 30, 2013 |
| Balance at Acquisition Date |
| Remaining Balance at June 30, 2013 |
| Balance at Acquisition Date |
| Remaining Balance at June 30, 2013 |
|
|
Loan marks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Previously acquired banks (N) | $ 81,328 |
| $ 37,832 |
| $ 28,764 |
| $ 22,989 |
| $ 110,092 |
| $ 60,821 |
|
|
2013 acquisitions (O) | 29,440 |
| 24,695 |
| 23,414 |
| 22,571 |
| 52,854 |
| 47,266 |
|
|
Total | $ 110,768 |
| $ 62,527 |
| $ 52,178 |
| $ 45,560 |
| $ 162,946 |
| $ 108,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio loan balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Previously acquired banks (N) | $ 1,298,380 |
| $ 653,945 |
| $ 57,979 |
| $ 43,505 |
| $ 1,356,359 |
| $ 697,450 |
|
|
2013 acquisitions (O) | 939,804 |
| 775,372 |
| 54,083 |
| 53,754 |
| 993,887 |
| 829,126 |
|
|
Total | $ 2,238,184 |
| $ 1,429,317 |
| $ 112,062 |
| $ 97,259 |
| $ 2,350,246 | (P) | $ 1,526,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(L) Non-GAAP financial measure. |
|
|
|
| |||||||||
(M) Using effective tax rate. |
|
|
|
| |||||||||
(N) Includes Bank of Texas, Bank Arlington, ASB and Community National which were acquired in 2012. |
|
|
|
| |||||||||
(O) Includes East Texas Financial Services and Coppermark Bank. |
|
|
|
| |||||||||
(P) Actual principal balances acquired. |
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
| |||||||||
Prosperity Bancshares, Inc.® | |||||||||
Financial Highlights (Unaudited) | |||||||||
|
|
|
|
|
|
|
|
|
|
| Three Months Ended | ||||||||
| Jun 30, 2013 |
| Mar 31, 2013 |
| Dec 31, 2012 |
| Sep 30, 2012 |
| Jun 30, 2012 |
YIELD TREND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
Loans | 5.89% |
| 6.28% |
| 6.40% |
| 6.20% |
| 5.63% |
Investment securities (Q) | 1.98% |
| 1.91% |
| 1.92% |
| 2.08% |
| 2.70% |
Federal funds sold and other earning assets | 0.87% |
| 0.22% |
| 0.19% |
| 0.16% |
| 0.17% |
Total interest-earning assets | 3.67% |
| 3.67% |
| 3.76% |
| 3.80% |
| 3.90% |
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits | 0.33% |
| 0.34% |
| 0.31% |
| 0.41% |
| 0.49% |
Savings and money market deposits | 0.30% |
| 0.30% |
| 0.29% |
| 0.34% |
| 0.35% |
Certificates and other time deposits | 0.61% |
| 0.62% |
| 0.64% |
| 0.69% |
| 0.76% |
Securities sold under repurchase agreements | 0.27% |
| 0.26% |
| 0.25% |
| 0.29% |
| 0.24% |
Federal funds purchased and other borrowings | 0.35% |
| 0.41% |
| 0.40% |
| 0.29% |
| 0.28% |
Junior subordinated debentures | 2.86% |
| 2.88% |
| 2.95% |
| 3.04% |
| 3.06% |
Total interest-bearing liabilities | 0.40% |
| 0.42% |
| 0.41% |
| 0.47% |
| 0.52% |
|
|
|
|
|
|
|
|
|
|
Net Interest Margin | 3.37% |
| 3.36% |
| 3.46% |
| 3.45% |
| 3.52% |
Net Interest Margin (tax equivalent) | 3.43% |
| 3.42% |
| 3.53% |
| 3.52% |
| 3.55% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Q) Yield on securities was impacted by net premium amortization of $18,838, $22,710, $23,992, $21,423 and $11,755 for the three month periods ended June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, respectively. |
| |||||||||
| |||||||||
Prosperity Bancshares, Inc.® | |||||||||
Financial Highlights (Unaudited) | |||||||||
(In thousands) | |||||||||
|
|
|
|
|
|
|
|
|
|
| Three Months Ended | ||||||||
| Jun 30, 2013 |
| Mar 31, 2013 |
| Dec 31, 2012 |
| Sep 30, 2012 |
| Jun 30, 2012 |
Balance Sheet Averages |
|
|
|
|
|
|
|
|
|
Total loans | $ 6,114,598 |
| $ 5,263,784 |
| $ 5,140,163 |
| $ 5,169,101 |
| $ 3,914,352 |
Investment securities | 7,964,157 |
| 7,755,567 |
| 7,228,418 |
| 7,106,871 |
| 5,635,810 |
Federal funds sold and other earning assets | 35,113 |
| 34,793 |
| 75,135 |
| 53,111 |
| 20,916 |
Total interest-earning assets | 14,113,868 |
| 13,054,144 |
| 12,443,716 |
| 12,329,083 |
| 9,571,078 |
Allowance for credit losses | (57,754) |
| (53,242) |
| (50,775) |
| (53,944) |
| (50,746) |
Cash and due from banks | 279,271 |
| 206,990 |
| 198,797 |
| 206,124 |
| 134,055 |
Goodwill | 1,331,568 |
| 1,226,332 |
| 1,211,596 |
| 1,157,330 |
| 932,112 |
Core Deposit Intangibles (CDI) | 25,893 |
| 25,244 |
| 27,108 |
| 17,280 |
| 18,465 |
Other real estate | 19,605 |
| 11,789 |
| 9,571 |
| 11,600 |
| 10,178 |
Fixed assets, net | 223,769 |
| 207,517 |
| 206,869 |
| 192,542 |
| 165,784 |
Other assets | 234,710 |
| 171,589 |
| 190,815 |
| 145,244 |
| 138,263 |
Total assets | $ 16,170,930 |
| $ 14,850,363 |
| $ 14,237,697 |
| $ 14,005,259 |
| $ 10,919,189 |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits | $ 3,295,211 |
| $ 2,939,621 |
| $ 2,963,998 |
| $ 2,760,405 |
| $ 2,069,965 |
Interest-bearing demand deposits | 2,580,750 |
| 2,659,489 |
| 2,328,969 |
| 2,181,928 |
| 1,706,176 |
Savings and money market deposits | 4,261,466 |
| 3,790,416 |
| 3,600,109 |
| 3,516,601 |
| 2,779,524 |
Certificates and other time deposits | 2,543,895 |
| 2,370,499 |
| 2,366,155 |
| 2,387,279 |
| 1,880,096 |
Total deposits | 12,681,322 |
| 11,760,025 |
| 11,259,231 |
| 10,846,213 |
| 8,435,761 |
Securities sold under repurchase agreements | 471,430 |
| 448,542 |
| 459,998 |
| 438,410 |
| 98,968 |
Federal funds purchased and other borrowings | 541,034 |
| 358,120 |
| 272,239 |
| 512,739 |
| 610,499 |
Junior subordinated debentures | 85,055 |
| 85,055 |
| 85,055 |
| 85,055 |
| 85,055 |
Other liabilities | 69,741 |
| 62,716 |
| 80,085 |
| 92,873 |
| 56,742 |
Shareholders' equity | 2,322,348 |
| 2,135,905 |
| 2,081,089 |
| 2,029,969 |
| 1,632,164 |
Total liabilities and equity | $ 16,170,930 |
| $ 14,850,363 |
| $ 14,237,697 |
| $ 14,005,259 |
| $ 10,919,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Prosperity Bancshares, Inc.® | ||||||||||||||
Financial Highlights (Unaudited) | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Jun 30, 2013 |
| Mar 31, 2013 |
| Dec 31, 2012 |
| Sep 30, 2012 |
| Jun 30, 2012 | |||||
Period End Balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and other | $ 999,677 | 16.2% |
| $ 760,531 | 14.5% |
| $ 798,882 | 15.4% |
| $ 792,247 | 15.6% |
| $ 491,907 | 12.5% |
Construction | 694,585 | 11.3% |
| 575,307 | 10.9% |
| 550,768 | 10.6% |
| 496,417 | 9.8% |
| 466,884 | 11.8% |
1-4 family residential | 1,452,268 | 23.6% |
| 1,338,936 | 25.5% |
| 1,255,765 | 24.3% |
| 1,213,872 | 23.9% |
| 1,084,936 | 27.4% |
Home equity | 208,739 | 3.4% |
| 203,815 | 3.9% |
| 186,801 | 3.6% |
| 183,844 | 3.6% |
| 154,147 | 3.9% |
Commercial real estate | 2,390,820 | 38.6% |
| 1,993,518 | 37.8% |
| 1,990,642 | 38.4% |
| 1,976,112 | 38.9% |
| 1,484,787 | 37.6% |
Agriculture (includes farmland) | 314,945 | 5.1% |
| 286,789 | 5.4% |
| 285,637 | 5.5% |
| 304,134 | 6.0% |
| 192,462 | 4.9% |
Consumer | 111,449 | 1.8% |
| 104,128 | 2.0% |
| 111,445 | 2.2% |
| 112,477 | 2.2% |
| 75,209 | 1.9% |
Total loans | $ 6,172,483 |
|
| $ 5,263,024 |
|
| $ 5,179,940 |
|
| $ 5,079,103 |
|
| $ 3,950,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Types |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing DDA | $ 3,283,082 | 26.2% |
| $ 2,995,828 | 25.6% |
| $ 3,016,205 | 25.9% |
| $ 2,827,748 | 25.8% |
| $ 2,083,910 | 24.8% |
Interest-bearing DDA | 2,483,428 | 19.9% |
| 2,521,998 | 21.5% |
| 2,626,331 | 22.6% |
| 2,208,568 | 20.2% |
| 1,684,492 | 20.1% |
Money Market | 2,868,880 | 22.9% |
| 2,509,501 | 21.4% |
| 2,362,454 | 20.3% |
| 2,303,680 | 21.0% |
| 2,206,220 | 26.3% |
Savings | 1,371,214 | 11.0% |
| 1,345,044 | 11.5% |
| 1,293,552 | 11.1% |
| 1,276,271 | 11.7% |
| 581,480 | 6.9% |
Certificates and other time deposits | 2,502,046 | 20.0% |
| 2,341,096 | 20.0% |
| 2,343,302 | 20.1% |
| 2,338,330 | 21.3% |
| 1,838,480 | 21.9% |
Total deposits | $ 12,508,650 |
|
| $ 11,713,467 |
|
| $ 11,641,844 |
|
| $ 10,954,597 |
|
| $ 8,394,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit Ratio | 49.3% |
|
| 44.9% |
|
| 44.5% |
|
| 46.4% |
|
| 47.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family residential construction | $ 234,257 | 32.9% |
| $ 177,218 | 30.6% |
| $ 161,401 | 29.2% |
| $ 150,959 | 30.1% |
| $ 143,600 | 30.8% |
Land development | 63,857 | 9.0% |
| 42,520 | 7.4% |
| 42,199 | 7.6% |
| 38,075 | 7.6% |
| 39,704 | 8.5% |
Raw land | 59,701 | 8.4% |
| 46,672 | 8.1% |
| 58,794 | 10.6% |
| 47,620 | 9.5% |
| 51,070 | 10.9% |
Residential lots | 91,018 | 12.8% |
| 93,598 | 16.2% |
| 92,697 | 16.8% |
| 97,445 | 19.4% |
| 86,201 | 18.5% |
Commercial lots | 60,960 | 8.6% |
| 64,394 | 11.2% |
| 63,716 | 11.5% |
| 63,418 | 12.7% |
| 49,454 | 10.6% |
Commercial construction and other | 200,633 | 28.3% |
| 153,047 | 26.5% |
| 134,427 | 24.3% |
| 103,677 | 20.7% |
| 96,855 | 20.7% |
Net unaccreted discount | (15,841) |
|
| (2,142) |
|
| (2,466) |
|
| (4,777) |
|
| - |
|
Total construction loans | $ 694,585 |
|
| $ 575,307 |
|
| $ 550,768 |
|
| $ 496,417 |
|
| $ 466,884 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Prosperity Bancshares, Inc.® | |||||||||
Financial Highlights (Unaudited) | |||||||||
(Dollars in thousands) | |||||||||
|
|
|
|
|
|
|
|
|
|
| Three Months Ended | ||||||||
| Jun 30, 2013 |
| Mar 31, 2013 |
| Dec 31, 2012 |
| Sep 30, 2012 |
| Jun 30, 2012 |
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
Nonaccrual loans | $ 4,295 |
| $ 7,529 |
| $ 5,382 |
| $ 5,063 |
| $ 1,624 |
Accruing loans 90 or more days past due | 325 |
| 642 |
| 331 |
| 132 |
| - |
Total non-performing loans | 4,620 |
| 8,171 |
| 5,713 |
| 5,195 |
| 1,624 |
Repossessed assets | - |
| 49 |
| 68 |
| 10 |
| 13 |
Other real estate | 10,244 |
| 9,913 |
| 7,234 |
| 8,846 |
| 10,236 |
Total nonperforming assets | $ 14,864 |
| $ 18,133 |
| $ 13,015 |
| $ 14,051 |
| $ 11,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
Commercial | $ 1,191 |
| $ 3,896 |
| $ 1,568 |
| $ 1,599 |
| $ 394 |
Construction | 5,898 |
| 3,678 |
| 3,522 |
| 3,182 |
| 4,056 |
1-4 family (including home equity) | 2,112 |
| 3,746 |
| 3,081 |
| 3,089 |
| 2,284 |
Commercial real estate (including multi-family) | 4,330 |
| 5,533 |
| 2,608 |
| 4,671 |
| 5,077 |
Agriculture | 1,213 |
| 1,183 |
| 1,463 |
| 1,476 |
| 44 |
Consumer and other | 120 |
| 97 |
| 773 |
| 34 |
| 18 |
Total | $ 14,864 |
| $ 18,133 |
| $ 13,015 |
| $ 14,051 |
| $ 11,873 |
|
|
|
|
|
|
|
|
|
|
Number of loans/properties | 123 |
| 124 |
| 116 |
| 119 |
| 88 |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses at end of period | $ 56,176 |
| $ 55,049 |
| $ 52,564 |
| $ 50,927 |
| $ 50,382 |
|
|
|
|
|
|
|
|
|
|
Net charge-offs: |
|
|
|
|
|
|
|
|
|
Commercial | $ 148 |
| $ 59 |
| $ 205 |
| $ (511) |
| $ 180 |
Construction | 124 |
| (56) |
| 21 |
| 155 |
| 1,179 |
1-4 family (including home equity) | 35 |
| 102 |
| 65 |
| 251 |
| 90 |
Commercial real estate (including multi-family) | 801 |
| (57) |
| 1,012 |
| 800 |
| 296 |
|
|
|
|
|
|
|
|
|
|
Agriculture | 13 |
| (7) |
| 70 |
| (30) |
| (3) |
Consumer and other | 302 |
| 274 |
| 540 |
| 590 |
| 118 |
Total | $ 1,423 |
| $ 315 |
| $ 1,913 |
| $ 1,255 |
| $ 1,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
Nonperforming assets to average earning assets | 0.11% |
| 0.14% |
| 0.10% |
| 0.11% |
| 0.12% |
Nonperforming assets to loans and other real estate | 0.24% |
| 0.34% |
| 0.25% |
| 0.28% |
| 0.30% |
Net charge-offs to average loans (annualized) | 0.09% |
| 0.02% |
| 0.15% |
| 0.08% |
| 0.20% |
Allowance for credit losses to total loans | 0.91% |
| 1.05% |
| 1.01% |
| 1.00% |
| 1.28% |
Allowance for credit losses to total loans (excluding acquired loans accounted for under ASC Topics 310-20 and 310-30) (E) | 1.18% |
| 1.25% |
| 1.22% |
| 1.27% |
| N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
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. In addition, due to the application of purchase accounting, Prosperity uses certain non-GAAP measures and ratios that exclude the impact of these items to evaluate its allowance for credit losses to total loans (excluding acquired loans accounted for under ASC Topics 310-20 and 310-30). 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 |
| Year-to-Date | ||||||||||
|
| Jun 30, 2013 |
| Mar 31, 2013 |
| Dec 31, 2012 |
| Sep 30, 2012 |
| Jun 30, 2012 |
| Jun 30, 2013 |
| Jun 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible common equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
| $ 53,844 |
| $ 49,305 |
| $ 48,266 |
| $ 46,176 |
| $ 36,972 |
| $ 103,149 |
| $ 73,459 |
Average shareholders' equity |
| $ 2,322,348 |
| $ 2,135,905 |
| $ 2,081,089 |
| $ 2,029,969 |
| $ 1,632,164 |
| $ 2,229,634 |
| $ 1,613,724 |
Less: Average goodwill and other intangible assets |
| (1,357,461) |
| (1,251,576) |
| (1,238,704) |
| (1,174,610) |
| (950,577) |
| (1,304,811) |
| (949,548) |
Average tangible shareholders' equity |
| $ 964,887 |
| $ 884,329 |
| $ 842,385 |
| $ 855,359 |
| $ 681,587 |
| $ 924,823 |
| $ 664,176 |
Return on average tangible common equity: |
| 22.32% |
| 22.30% |
| 22.92% |
| 21.59% |
| 21.70% |
| 22.31% |
| 22.12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
| $ 2,345,282 |
| $ 2,149,455 |
| $ 2,089,389 |
| $ 2,038,176 |
| $ 1,643,817 |
| $ 2,345,282 |
| $ 1,643,817 |
Less: Goodwill and other intangible assets |
| (1,377,522) |
| (1,262,257) |
| (1,243,321) |
| (1,228,190) |
| (950,671) |
| (1,377,522) |
| (950,671) |
Tangible shareholders' equity |
| $ 967,760 |
| $ 887,198 |
| $ 846,068 |
| $ 809,986 |
| $ 693,146 |
| $ 967,760 |
| $ 693,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares outstanding |
| 60,315 |
| 57,014 |
| 56,447 |
| 56,058 |
| 47,474 |
| 60,315 |
| 47,474 |
Tangible book value per share: |
| $ 16.05 |
| $ 15.56 |
| $ 14.99 |
| $ 14.45 |
| $ 14.60 |
| $ 16.05 |
| $ 14.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to tangible assets ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible shareholders' equity |
| $ 967,760 |
| $ 887,199 |
| $ 846,068 |
| $ 809,986 |
| $ 693,146 |
| $ 967,760 |
| $ 693,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
| $ 16,270,718 |
| $ 15,081,314 |
| $ 14,583,573 |
| $ 13,712,119 |
| $ 10,737,351 |
| $ 16,270,718 |
| $ 10,737,351 |
Less: Goodwill and other intangible assets |
| (1,377,522) |
| (1,262,257) |
| (1,243,321) |
| (1,228,190) |
| (950,671) |
| (1,377,522) |
| (950,671) |
Tangible assets |
| $ 14,893,196 |
| $ 13,819,057 |
| $ 13,340,252 |
| $ 12,483,929 |
| $ 9,786,680 |
| $ 14,893,196 |
| $ 9,786,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to tangible assets ratio: |
| 6.50% |
| 6.42% |
| 6.34% |
| 6.49% |
| 7.08% |
| 6.50% |
| 7.08% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prosperity Bancshares, Inc.® Notes to Selected Financial Data (Unaudited) (Dollars in thousands)
| ||||||
|
|
|
|
|
|
|
|
| Jun 30, 2013 |
| Mar 31, 2013 |
| Dec 31, 2012 |
Allowance for credit losses to total loans, excluding acquired loans: |
| |||||
Allowance for credit losses |
| $ 56,176 |
| $ 55,049 |
| $ 52,564 |
Total loans |
| $ 6,172,483 |
| $ 5,263,024 |
| $ 5,179,940 |
Less: Fair value of acquired loans accounted for under ASC |
|
|
|
|
|
|
Topics 310-20 and 310-30 (does not include new production) |
| $ 1,418,489 |
| $ 853,751 |
| $ 887,953 |
Total loans less acquired loans |
| $ 4,753,994 |
| $ 4,409,273 |
| $ 4,291,987 |
Allowance for credit losses to total loans, excluding acquired loans (non-GAAP basis) |
| 1.18% |
| 1.25% |
| 1.22% |
|
|
|
|
|
|
|
CONTACT: David Zalman Chairman and Chief Executive Officer of Prosperity Bancshares, Inc.®, 281.269.7199, david.zalman@prosperitybankusa.com