EX-99.1 2 dex991.htm PRESS RELEASE ISSUED BY PROSPERITY BANCSHARES, INC. DATED OCTOBER 17, 2008. Press Release issued by Prosperity Bancshares, Inc. dated October 17, 2008.

Exhibit 99.1

LOGO

 

PRESS RELEASE    For more information contact:
Prosperity Bancshares, Inc.®    Dan Rollins
Prosperity Bank Plaza    President and Chief Operating Officer
4295 San Felipe    281.269.7199
Houston, Texas 77027    dan.rollins@prosperitybanktx.com
  
FOR IMMEDIATE RELEASE   

PROSPERITY BANCSHARES, INC.®

REPORTS THIRD QUARTER EARNINGS

 

   

3Q 2008 Operating Earnings Per Share of $0.53 (diluted)
(before impairment charge on FNM/FRE perpetual preferred securities)

 

   

3Q 2008 Net Interest Margin (tax equivalent) increases to 4.15%

 

   

Non-Performing Assets equal 0.26% of Average Earning Assets

 

   

Tier 1 Risk Based Capital Ratio is 13.31%

 

   

Tangible Equity Ratio is 6.28%

 

   

Total Risk Based Capital is 14.29%

 

   

Tier 1 Leverage Capital is 7.75%

HOUSTON, October 17, 2008. Prosperity Bancshares, Inc.® NASDAQ: (PRSP), the parent company of Prosperity Bank®, reported earnings for the quarter ended September 30, 2008. Net income for the quarter was $15.447 million or $0.33 per diluted common share, a decrease in net income of $8.401 million or 35.2%, compared with $23.848 million or $0.54 per diluted common share for the same period in 2007. The decrease was primarily due to a $9.116 million after-tax ($14.025 million pre-tax) impairment charge on Fannie Mae and Freddie Mac perpetual preferred securities.

Excluding the impairment charge on Prosperity’s Fannie Mae and Freddie Mac perpetual preferred securities, net income for the quarter would have been $24.563 million or $0.53 per diluted common share, an increase in net income of $715,000 or 3.0%, compared with $23.848 million or $0.54 per diluted common share for the same period in the prior year.

 

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“Over the past few months, we have witnessed dramatic changes in our industry as well as our overall economy,” said David Zalman, Prosperity’s Chairman and Chief Executive Officer. “Never-the-less, our team of experienced bankers continues to perform exceptionally well.”

Since January 1, 2007, Prosperity has completed the following acquisitions: 1st Choice Bancorp, Inc. on June 1, 2008; the Houston branches of Banco Popular North America on January 10, 2008; The Bank of Navasota, N.A. on September 1, 2007; and Texas United Bancshares, Inc. on January 31, 2007. The results of operations for these acquisitions have been included in Prosperity’s consolidated financial statements since their respective purchase dates.

Results of operations for the three months ended September 30, 2008

As a result of actions taken in early September 2008 by the United States Treasury Department and the Federal Housing Finance Agency with respect to Fannie Mae and the Freddie Mac, Prosperity recorded an other-than-temporary impairment and took a non-cash charge of $14.025 million pre-tax ($9.116 million after-tax) to its earnings for the third quarter of 2008 related to the full value of its investments in perpetual preferred securities issued by Fannie Mae and Freddie Mac. The value of these securities decreased materially and it is unclear if and when the value will improve. Please refer to the table on page 4 for operating results excluding the impairment charge.

For the three months ended September 30, 2008, net income was $15.447 million compared with $23.848 million for the same period in 2007. Net income per diluted common share was $0.33 for the three months ended September 30, 2008 and $0.54 for the same period in 2007. Returns on average assets, average common equity and average tangible common equity for the three months ended September 30, 2008 were 0.91%, 5.04% and 16.83%, respectively. Prosperity’s efficiency ratio (excluding net gains and losses on the sale of securities, ORE and assets and impairment charge on write-down of securities) was 45.30% for the three months ended September 30, 2008.

Net interest income before provision for credit losses for the quarter ended September 30, 2008 increased 12.5% to $57.806 million compared with $51.369 million during the same period in 2007. The increase was attributable primarily to a 10.1% increase in average earning assets and the rate paid on interest-bearing liabilities decreasing at a faster pace than the yield earned on interest earning assets. The net interest margin on a tax equivalent basis increased to 4.15% for the three months ended September 30, 2008 compared with 4.07% for the same period in 2007.

Non-interest income decreased $1.042 million or 7.4% to $13.117 million for the three months ended September 30, 2008 compared with $14.159 million for the same period in 2007. The decrease was mainly attributable to (i) a decrease in net gain/loss on sale of ORE, held for sale loans and other assets (ii) a decrease in other non-interest income due to decreases in dividends paid on Federal Home Loan Bank stock and income from Bank Owned Life Insurance (BOLI), both of which are related to the recent decline in interest rates and (iii) partially offset by an increase in service charges on deposit accounts which was primarily attributed to an increased number of deposit accounts from the Banco Popular and 1st Choice acquisitions as well as an increase in debit card income.

Non-interest expense increased $16.143 million or 53.7% to $46.230 million for the third quarter of 2008 compared with $30.087 million for the third quarter of 2007. The increase was primarily attributable to the $14.025 million pre-tax impairment write-down on Fannie Mae and Freddie Mac perpetual preferred securities. Excluding the impairment write-down, non-interest expense increased $2.118 million, or 7.0% . The increase was due primarily to an increase in salaries and benefits expense due to annual merit increases and incentive programs and to an increase in general operating costs associated with the banking centers acquired in 2008.

 

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Loans at September 30, 2008 were $3.249 billion, an increase of $121.062 million, or 3.9%, compared with $3.128 billion at September 30, 2007. Linked quarter loans decreased 2.0% or $64.711 million, with loans decreasing from $3.313 billion at June 30, 2008. As reflected in the table below, linked quarter loans for the third quarter of 2008 were impacted by the loans acquired as a part of the acquisitions of The Bank of Navasota, the Banco Popular Houston branches and 1st Choice.

Deposits at September 30, 2008 were $5.105 billion, an increase of $320.828 million or 6.7%, compared with $4.784 billion at September 30, 2007. Linked quarter deposits decreased 3.6% from $5.297 billion at June 30, 2008. As reflected in the table below, linked quarter deposits for the third quarter of 2008 were impacted by the deposits assumed as a part of the acquisitions of The Bank of Navasota, the Banco Popular Houston branches and 1st Choice.

 

     Sept 30, 2008    June 30, 2008    Sept 30, 2007
     (Unaudited)    (Unaudited)    (Unaudited)

Balance Sheet Data (at period end)

        

(In Thousands)

        

Loans:

        

Acquired with The Bank of Navasota

   $ 19,980    $ 21,862    $ 30,800

Acquired with Banco Popular Houston Branches

     2,637      2,207      0

Acquired with 1st Choice Bank

     182,780      184,526      0

All other

     3,043,220      3,104,733      3,096,755
                    

Total Loans

   $ 3,248,617    $ 3,313,328    $ 3,127,555
                    

Deposits:

        

Assumed with The Bank of Navasota

   $ 55,138    $ 60,470    $ 60,526

Assumed with Banco Popular Houston Branches

     118,490      127,965      0

Assumed with 1st Choice Bank

     262,465      287,996      0

All other

     4,668,749      4,820,203      4,723,488
                    

Total Deposits

   $ 5,104,842    $ 5,296,634    $ 4,784,014
                    

Average loans increased 4.6% or $146.127 million to $3.289 billion for the quarter ended September 30, 2008 compared with $3.143 billion for the same period of 2007. Linked quarter average loans increased 2.7% or $85.898 million from $3.203 billion at June 30, 2008. Average deposits increased 9.3% to $5.187 billion for the quarter ended September 30, 2008 compared with $4.748 billion for the same period of 2007. Linked quarter average deposits increased 2.9% or $147.411 million from $5.040 billion at June 30, 2008.

At September 30, 2008, construction loans totaled $626.443 million, consisting of approximately $206 million of single family residential construction loans; $74 million of land development loans; $91 million of raw land loans; $101 million of residential lot loans; $36 million commercial lot loans; and $118 million of commercial construction and other construction loans. This is a decrease of $32.226 million from June 30, 2008.

Non-performing assets totaled $14.536 million or 0.26% of average earning assets at September 30, 2008 compared with $9.499 million or 0.19% of average earning assets at September 30, 2007 and $11.651 million or 0.22% of average earnings assets at June 30, 2008. At September 30, 2008, the allowance for credit losses was 1.05% of total loans, compared with 1.14% at September 30, 2007 and 1.03% of total loans at June 30, 2008.

 

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The provision for credit losses was $1.700 million for the three months ended September 30, 2008 and $75,000 for the three months ended September 30, 2007. Net charge offs were $1.805 million for the three months ended September 30, 2008 and $1.313 million for the three months ended September 30, 2007.

At September 30, 2008, Prosperity had $6.788 billion in total assets, $3.249 billion in loans, and $5.105 billion in deposits. Assets, loans and deposits at September 30, 2008 grew by 10.0%, 3.9% and 6.7%, respectively, compared with their level at September 30, 2007.

Results of operations before impairment charge

The following results illustrates the effect of the $14.025 million pre-tax ($9.116 million after-tax) impairment charge on Fannie Mae and Freddie Mac perpetual preferred securities:

 

     As reported
(with charge):
3 months ended
Sept 30, 2008
    Without charge:
3 months ended
Sept 30, 2008
    As reported
(with charge):

9 months ended
Sept 30, 2008
    Without charge:
9 months ended
Sept 30, 2008
 

Non-interest income (in thousands)

   $ 13,117     $ 13,117     $ 38,862     $ 38,862  

Non-interest expense (in thousands)

     46,230       32,205       106,210       92,185  

Income before taxes (in thousands)

     22,993       37,018       92,557       106,582  

Taxes (in thousands)

     7,546       12,455       30,735       35,644  

Net income (in thousands)

     15,447       24,563       61,822       70,938  

Return on average assets

     0.91 %     1.44 %     1.25 %     1.44 %

Return on average common equity

     5.04 %     8.02 %     6.97 %     8.00 %

Return on average tangible common equity

     16.83 %     26.76 %     23.42 %     26.87 %

Earnings per share (basic)

   $ 0.34     $ 0.53     $ 1.37     $ 1.58  

Earnings per share (diluted)

   $ 0.33     $ 0.53     $ 1.37     $ 1.57  

Shareholders’ equity (in thousands)

   $ 1,229,180     $ 1,229,180     $ 1,229,180     $ 1,229,180  

Results of operations for the nine months ended September 30, 2008

For the nine months ended September 30, 2008, net income was $61.822 million compared with $67.071 million for the same period in 2007. Net income per diluted common share was $1.37 for the nine months ended September 30, 2008 compared with $1.56 for the same period in 2007. The decrease was primarily due to a $9.116 million after-tax impairment charge on Fannie Mae and Freddie Mac perpetual preferred securities.

Excluding the impairment charge on the Fannie Mae and Freddie Mac perpetual preferred securities, net income for the nine months would have been $70.938 million or $1.57 per diluted common share, an increase in net income of $3.867 million or 5.8%, compared with $67.071 million or $1.56 per diluted common share for the same period in the prior year.

 

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Returns on average assets, average common equity and average tangible common equity for the nine months ended September 30, 2008 were 1.25%, 6.97% and 23.42%, respectively. Prosperity’s efficiency ratio (excluding net gains and losses on the sale of securities, ORE and assets and impairment charge on write-down of securities) was 45.51% for the nine months ended September 30, 2008.

Net interest income before provision for credit losses for the nine months ended September 30, 2008 increased $14.970 million or 10.1%, to $163.772 million compared with $148.802 million during the same period in 2007. The increase was attributable primarily to an 8.1% increase in average earning assets and the rate paid on interest-bearing liabilities decreasing at a faster pace than the yield earned on interest earning assets.

Non-interest income decreased $813,000 or 2.1% to $38.862 million for the nine months ended September 30, 2008 compared with $39.675 million for the same period in 2007. The decrease was mainly attributable to (i) a decrease in net gain/loss on sale of ORE and sales of held for sale loans, (ii) a decrease in other non-interest income which includes decreases in dividends paid on Federal Home Loan Bank stock and trust and investment income and (iii) partially offset by an increase in service charges on deposit accounts. The increase in service charges on deposit accounts is primarily attributed to an increased number of deposit accounts from the Banco Popular and 1st Choice acquisitions as well as an increase in debit card income. The decrease in trust and investment income and gains on sales of held for sale loans was due to the Prosperity’s dissolution of the trust department and mortgage department acquired from Texas United Bancshares, Inc. in 2007.

Non-interest expense increased $18.780 million or 21.5% to $106.210 million for the first nine months of 2008 compared with $87.430 million for the same period in 2007. The increase was attributable primarily to the $14.025 million pre-tax impairment write-down on Fannie Mae and Freddie Mac perpetual preferred securities. Excluding the impairment write-down, non-interest expense increased $4.755 million, or 5.4% . The increase was due primarily to an increase in salaries and benefits expense due to annual merit increases and incentive programs and to an increase in general operating costs associated with the banking centers acquired in 2008.

The provision for credit losses was $3.867 million for the nine months ended September 30, 2008 and $640,000 for the nine months ended September 30, 2007. Net charge offs were $4.611 million for the nine months ended September 30, 2008 and $2.480 million for the nine months ended September 30, 2007.

Conference Call

Prosperity’s management team will host a conference call on Friday, October 17, 2008 at 10:30 a.m. Eastern Daylight Savings Time (9:30 a.m. Central Daylight Savings Time) to discuss Prosperity’s third quarter earnings. Individuals and investment professionals may participate in the call by dialing 1-800-894-5910, 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 “3rd Quarter Results and Webcast” link.

 

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Acquisition of 1st Choice Bancorp, Inc.

On June 1, 2008, Prosperity completed its previously announced acquisition of 1st Choice Bancorp, Inc. and its wholly owned subsidiary, 1st Choice Bank. 1st Choice Bancorp, Inc. operated two (2) banking offices in Houston, Texas, with one location in South Houston and another in the Heights area, which was consolidated with Prosperity’s Heights location and is located in 1st Choice’s Heights banking office. As of May 31, 2008, 1st Choice Bancorp reported total assets of approximately $314.9 million, loans of approximately $192.7 million, deposits of approximately $285.2 million and stockholders’ equity of approximately $26.4 million.

In connection with the acquisition, Prosperity issued 1,757,757 shares of its common stock and paid approximately $18.758 million in cash for all outstanding shares of 1st Choice Bancorp.

Acquisition of Banco Popular’s Houston Branches

On January 10, 2008, Prosperity Bank® completed its previously announced acquisition of six (6) Houston retail bank branches from Banco Popular North America. The branches had approximately $125 million in combined deposits. All six (6) locations are now operating as full service banking centers of Prosperity Bank®.

Acquisition of The Bank of Navasota, N.A.

On September 1, 2007, Prosperity completed its previously announced acquisition of The Bank of Navasota, N.A. Navasota is located between Hempstead and College Station and bridges the gap between Prosperity’s banking centers in northwest Houston, including Hempstead, and its five (5) locations in Bryan-College Station. The Bank of Navasota operated one (1) banking office in Navasota, Grimes County, Texas, which became a full service banking center of Prosperity Bank. As of August 31, 2007, The Bank of Navasota reported total assets of approximately $73.4 million, loans of approximately $33.0 million, deposits of approximately $63.8 million and shareholders’ equity of approximately $9.1 million.

In connection with the acquisition, Prosperity issued 251,454 shares of its common stock and paid approximately $8.625 million in cash for all outstanding shares of The Bank of Navasota.

Prosperity Bancshares, Inc.®

Prosperity Bancshares, Inc.®, a $6.8 billion Houston, Texas based regional financial holding company, formed in 1983, operates under a community banking philosophy and seeks to develop broad customer relationships based on service and convenience. Prosperity offers a variety of traditional loan and deposit products to its customers, which consist primarily of small and medium sized businesses and consumers. In addition to established banking products, Prosperity offers a complete line of services including: Internet Banking services at http://www.prosperitybanktx.com, Retail Brokerage Services, MasterMoney Debit Cards, and 24 hour voice response banking. Prosperity currently operates one hundred thirty-one (131) full service banking locations; forty-six (46) in the Houston CMSA; thirty-three (33) in the South Texas area including Corpus Christi and Victoria; twenty-six (26) in the Dallas/Fort Worth metroplex; two (2) in the East Texas area; twenty-four (24) in the Central Texas area including Austin, Bryan/College Station and San Antonio.

 

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Prosperity Bank® operates the following full service banking centers:

 

Central Texas    Cedar Hill    Downtown    South Texas Area -
Area -    Central Expressway    Fairfield   
   Frisco    Gessner    Corpus Christi -
Austin -    Frisco - West    Gladebrook    Airline
Allandale    Kiest    Harrisburg    Carmel
Cedar Park    Preston Road    Heights    Everhart
Congress    Red Oak    Highway 6 West    Northwest
183    The Colony    Hillcroft    Saratoga
Lakeway    Turtle Creek    Holcombe    Woodlawn
Liberty Hill    Westmoreland    Little York    Water Street
Oak Hill       Medical Center   
Research Blvd    Fort Worth -    Memorial Drive    Other South Texas
Round Rock    Haltom City    Pasadena    Locations -
   Keller    Pecan Grove    Alice
Bryan/College    Roanoke    River Oaks    Aransas Pass
Station -    Stockyards    Sugar Land    Bay City
Bryan       SW Medical Center    Beeville
Bryan- East    Other Dallas/Fort    Tanglewood    Cuero
Bryan- North    Worth Locations -    Uptown    East Bernard
College Station    Azle    Waugh Drive    Edna
Wellborn Road    Blooming Grove    Westheimer    El Campo
   Corsicana    Woodcreek    Goliad
Other Central    Ennis       Gonzales
Texas Locations -    Gainesville    Other Houston Area    Hallettsville
Caldwell    Mesquite    Locations -    Kingsville
Dime Box    Muenster    Angleton    Mathis
Flatonia    Sanger    Cinco Ranch    Palacios
La Grange    Waxahachie    Cleveland    Pleasanton
Lexington       Dayton    Port Aransas
Navasota    East Texas Area -    Galveston    Port Lavaca
New Braunfels    Crockett    Hempstead    Portland
San Antonio    Grapeland    Hitchcock    Rockport
Schulenburg       Katy    Seguin
Weimar    Houston Area -    Liberty    Sinton
      Magnolia    Victoria
Dallas/Fort Worth    Houston -    Mont Belvieu    Victoria - North
Area -    Aldine    Needville    Wharton
   Bellaire    Sweeny    Yoakum
Dallas -    CityWest    Tomball    Yorktown
Abrams Centre    Clear Lake    Waller   
Balch Springs    Copperfield    West Columbia   
Camp Wisdom    Cypress    Winnie   
      Wirt   

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by our 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 Bancshares®, and its subsidiaries. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity’s control, that may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity’s securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate fluctuations and interest rate fluctuations; weather; and the stock price volatility associated with “small-cap” companies. These and various other factors are discussed in our most recent Annual Report on Form 10-K and other reports and statements we have filed with the SEC. Copies of the SEC filings for Prosperity Bancshares’s® may be downloaded from the Internet at no charge from www.prosperitybanktx.com.

- - -

 

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Prosperity Bancshares, Inc. ®

Financial Highlights

(Dollars and share amounts in thousands, except per share data)

 

     Three Months Ended    Nine Months Ended
     Sept 30, 2008    Sept 30, 2007    Sept 30, 2008    Sept 30, 2007
     (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)

Selected Earnings and Per Share Data

           

Total interest income

   $ 84,846    $ 88,004    $ 251,290    $ 255,168

Total interest expense

     27,040      36,635      87,518      106,366
                           

Net interest income

     57,806      51,369      163,772      148,802

Provision for credit losses

     1,700      75      3,867      640
                           

Net interest income after provision for credit losses

     56,106      51,294      159,905      148,162

Total non-interest income

     13,117      14,159      38,862      39,675

Total non-interest expense(A)

     46,230      30,087      106,210      87,430
                           

Net income before taxes

     22,993      35,366      92,557      100,407

Federal income taxes

     7,546      11,518      30,735      33,336
                           

Net income(B)

   $ 15,447    $ 23,848    $ 61,822    $ 67,071
                           

Basic earnings per share(C)

   $ 0.34    $ 0.54    $ 1.37    $ 1.58

Diluted earnings per share(C)

   $ 0.33    $ 0.54    $ 1.37    $ 1.56

Period end shares

     46,072      44,110      46,072      44,110

Weighted average shares outstanding (basic)

     46,065      43,910      45,038      42,521

Weighted average shares outstanding (diluted)

     46,302      44,254      45,217      42,934

 

(A)

Total non-interest expense for the three and nine months ended September 30, 2008 includes a $14.025 million pre-tax impairment charge on write-down of securities.

(B)

Earnings for the three and nine months ended September 30, 2008 includes a $14.025 million pre-tax, or $9.116 million after-tax, impairment charge on write-down of securities.

(C)

Earnings for the three and nine months ended September 30, 2008 includes a $14.025 million pre-tax, or $9.116 million after-tax, impairment charge on write-down of securities which resulted in a $0.19 and $0.20 decrease in basic and diluted earnings per share to $0.34 and $0.33, respectively, for the three months ended September 30, 2008 and a $0.21 and $0.20 decrease in basic and diluted earnings per share to $1.37 and $1.37, respectively, for the nine months ended September 30, 2008.

 

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Prosperity Bancshares, Inc. ®

Financial Highlights

(Dollars in thousands)

 

     Three Months Ended     Nine Months Ended  
     Sept 30, 2008     Sept 30, 2007     Sept 30, 2008     Sept 30, 2007  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Balance Sheet Averages

        

Total loans

   $ 3,289,203     $ 3,143,076     $ 3,212,176     $ 3,078,065  

Investment securities

     2,292,571       1,892,030       2,134,396       1,865,847  

Federal funds sold and other temporary investments

     18,854       51,880       61,264       58,117  
                                

Total earning assets

     5,600,628       5,086,986       5,407,836       5,002,029  

Allowance for credit losses

     (33,746 )     (35,862 )     (32,839 )     (34,742 )

Cash and due from banks

     134,849       144,822       137,177       142,965  

Goodwill

     811,726       739,422       785,853       707,644  

Core Deposit Intangibles (CDI)

     46,240       48,070       44,840       40,610  

Other real estate

     6,972       2,070       8,984       1,383  

Fixed assets, net

     124,828       121,067       124,082       115,778  

Other assets

     109,952       126,699       112,720       111,100  
                                

Total assets

   $ 6,801,449     $ 6,233,274     $ 6,588,653     $ 6,086,767  
                                

Non-interest bearing deposits

   $ 1,266,924     $ 1,170,352     $ 1,212,379     $ 1,123,452  

Interest bearing deposits

     3,920,291       3,577,406       3,842,826       3,578,165  
                                

Total deposits

     5,187,215       4,747,758       5,055,205       4,701,617  

Securities sold under repurchase agreements

     95,533       82,973       81,390       72,724  

Federal funds purchased and other borrowings

     146,172       116,609       106,572       97,757  

Junior subordinated debentures

     92,265       119,328       101,429       128,522  

Other liabilities

     55,105       66,678       61,405       48,678  

Shareholders’ equity(D)

     1,225,159       1,099,928       1,182,652       1,037,469  
                                

Total liabilities and equity

   $ 6,801,449     $ 6,233,274     $ 6,588,653     $ 6,086,767  
                                

 

(D)

Includes ($3,643) and ($2,990), in after-tax unrealized gains (losses) on available for sale securities for the three month periods ending September 30, 2008 and September 30, 2007, respectively and ($1,109) and ($2,462) for the nine month periods ending September 30, 2008 and September 30, 2007, respectively.

 

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Prosperity Bancshares, Inc. ®

Financial Highlights

(Dollars in thousands)

 

     Three Months Ended    Nine Months Ended
     Sept 30, 2008     Sept 30, 2007    Sept 30, 2008     Sept 30, 2007
     (Unaudited)     (Unaudited)    (Unaudited)     (Unaudited)

Income Statement Data

         

Interest on loans

   $ 56,925     $ 64,036    $ 171,393     $ 185,919

Interest on securities

     27,834       23,316      78,473       67,021

Interest on federal funds sold and other earning assets

     87       652      1,424       2,228
                             

Total interest income

     84,846       88,004      251,290       255,168
                             

Interest expense—deposits

     23,874       31,794      78,029       92,328

Interest expense—debentures

     1,410       2,358      4,987       7,852

Interest expense—other

     1,756       2,483      4,502       6,186
                             

Total interest expense

     27,040       36,635      87,518       106,366
                             

Net interest income (E)

     57,806       51,369      163,772       148,802

Provision for credit losses

     1,700       75      3,867       640
                         

Net interest income after provision for credit losses

     56,106       51,294      159,905       148,162
                             

Service charges on deposit accounts

     11,348       10,785      32,581       29,908

Net gain on sale of assets

     34       188      715       182

Net (loss) gain on sale of ORE

     (210 )     452      (648 )     552

Brokered mortgage income

     74       188      296       574

Net gain on sale of held for sale loans

     46       269      229       1,202

Gain on sale of securities

     0       58      0       58

Other non-interest income

     1,825       2,219      5,689       7,199
                             

Total non-interest income

     13,117       14,159      38,862       39,675
                             

Salaries and benefits (F)

     17,526       16,365      50,407       48,163

CDI amortization

     2,562       2,586      7,513       7,297

Net occupancy and equipment

     3,088       2,665      8,765       7,759

Depreciation

     1,955       1,895      5,812       5,656

Data processing and software amortization

     1,319       1,290      3,971       3,447

Impairment charge on write-down of securities

     14,025       0      14,025       0

Other non-interest expense

     5,755       5,286      15,717       15,108
                             

Total non-interest expense

     46,230       30,087      106,210       87,430
                             

Net income before taxes

     22,993       35,366      92,557       100,407

Federal income taxes

     7,546       11,518      30,735       33,336
                             

Net income available to common shareholders(G)

   $ 15,447     $ 23,848    $ 61,822     $ 67,071
                             

 

(E)

Net interest income on a tax equivalent basis would be $58,471 and $52,182 for the three months ended September 30, 2008 and September 30, 2007, respectively and $165,995 and $151,088 for the nine months ended September 30, 2008 and September 30, 2007, respectively.

(F)

Salaries and benefits includes equity compensation expenses of $470 and $534 for the three months ended September 30, 2008 and September 30, 2007, respectively and $1,111 and $1,491 for the nine months ended September 30, 2008 and September 30, 2007, respectively.

(G)

Earnings for the three and nine months ended September 30, 2008 includes a $14.025 million pre-tax, or $9.116 million after-tax, impairment charge on write-down of securities.

 

Page 10 of 20


Prosperity Bancshares, Inc. ®

Financial Highlights

(Dollars and share amounts in thousands, except per share data)

 

     Three Months Ended    Nine Months Ended
     Sept 30, 2008    Sept 30, 2007    Sept 30, 2008    Sept 30, 2007
     (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)

Common Share and Other Data

           

Employees—FTE

     1,366      1,369      1,366      1,369

Book value per share

   $ 26.68    $ 25.19    $ 26.68    $ 25.19

Tangible book value per share

   $ 8.08    $ 7.18    $ 8.08    $ 7.18

Period end shares outstanding

     46,072      44,110      46,072      44,110

Weighted average shares outstanding (basic)

     46,065      43,910      45,038      42,521

Weighted average shares outstanding (diluted)

     46,302      44,254      45,217      42,934

Non-accrual loans

   $ 2,757    $ 1,645    $ 2,757    $ 1,645

Accruing loans 90 or more days past due

     4,083      6,273      4,083      6,273

Restructured loans

     0      0      0      0
                           

Total non-performing loans

     6,840      7,918      6,840      7,918

Repossessed assets

     158      121      158      121

Other real estate

     7,538      1,460      7,538      1,460
                           

Total non-performing assets

   $ 14,536    $ 9,499    $ 14,536    $ 9,499

Allowance for credit losses at end of period

   $ 33,981    $ 35,536    $ 33,981    $ 35,536

Net charge-offs

   $ 1,805    $ 1,313    $ 4,611    $ 2,480

Basic earnings per share(H)

   $ 0.34    $ 0.54    $ 1.37    $ 1.58

Diluted earnings per share(H)

   $ 0.33    $ 0.54    $ 1.37    $ 1.56

 

(H)

Earnings for the three and nine months ended September 30, 2008 includes a $14.025 million pre-tax, or $9.116 million after-tax, impairment charge on write-down of securities which resulted in a $0.19 and $0.20 decrease in basic and diluted earnings per share to $0.34 and $0.33, respectively, for the three months ended September 30, 2008 and a $0.21 and $0.20 decrease in basic and diluted earnings per share to $1.37 and $1.37, respectively, for the nine months ended September 30, 2008.

 

Page 11 of 20


Prosperity Bancshares, Inc.®

Financial Highlights

 

     Three Months Ended     Nine Months Ended  
     Sept 30, 2008     Sept 30, 2007     Sept 30, 2008     Sept 30, 2007  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Performance Ratios

        

Return on average(I) assets (annualized)

     0.91 %     1.53 %     1.25 %     1.47 %

Return on average common(I) equity (annualized)

     5.04 %     8.67 %     6.97 %     8.62 %

Return on average tangible(I) common equity (annualized)

     16.83 %     30.53 %     23.42 %     30.92 %

Net interest margin(J) (tax equivalent) (annualized)

     4.15 %     4.07 %     4.10 %     4.04 %

Efficiency ratio(K)

     45.30 %     46.41 %     45.51 %     46.58 %

Asset Quality Ratios

        

Non-performing assets to average earning assets

     0.26 %     0.19 %     0.27 %     0.19 %

Non-performing assets to loans and other real estate

     0.45 %     0.30 %     0.45 %     0.30 %

Net charge-offs to average loans

     0.05 %     0.04 %     0.14 %     0.08 %

Allowance for credit losses to total loans

     1.05 %     1.14 %     1.05 %     1.14 %

Common Stock Market Price

        

High

   $ 46.48     $ 36.00     $ 46.48     $ 37.11  

Low

   $ 23.32     $ 27.70     $ 21.96     $ 27.70  

Period end market price

   $ 33.99     $ 33.16     $ 33.99     $ 33.16  

 

(I)

Earnings for the three and nine months ended September 30, 2008 includes a $14.025 million pre-tax, or $9.116 million after- tax, impairment charge on write-down of securities which resulted in a 53 and 19 basis point decrease in return on average assets to 0.91% and 1.25%, respectively, a 298 and 103 basis point decrease in return on average equity to 5.04% and 6.97%, respectively, and a 993 and 345 basis point decrease in return on average tangible common equity to 16.83% and 23.42%, respectively.

(J)

Net interest margin for all periods presented is calculated on an actual 365 or actual 366 day basis.

(K)

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 securities, ORE and assets and impairment charge on write-down of securities). Additionally, taxes are not part of this calculation.

 

Page 12 of 20


Prosperity Bancshares, Inc.®

Financial Highlights

(Dollars in thousands)

 

     Sept 30, 2008     June 30, 2008     March 31, 2008     December 31, 2007  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Balance Sheet Data (at period end)

        

Loan Portfolio

                

Commercial

   $ 470,099     14.5 %   $ 486,817     14.7 %   $ 452,635     14.3 %   $ 453,644     14.5 %

Construction

     626,443     19.3 %     658,669     19.9 %     664,679     21.0 %     683,171     21.7 %

1-4 family residential

     574,583     17.7 %     568,377     17.1 %     546,765     17.3 %     526,338     16.7 %

Home equity

     95,962     3.0 %     95,774     2.9 %     94,559     3.0 %     93,877     3.0 %

Commercial real estate

     1,229,219     37.8 %     1,241,872     37.5 %     1,161,668     36.7 %     1,148,709     36.6 %

Agriculture

     133,123     4.1 %     135,421     4.1 %     119,346     3.8 %     114,019     3.6 %

Consumer

     119,188     3.6 %     126,398     3.8 %     121,975     3.9 %     123,213     3.9 %
                                        

Total Loans

   $ 3,248,617       $ 3,313,328       $ 3,161,627       $ 3,142,971    
                                        

Deposit Types

                

Non-interest bearing DDA

   $ 1,263,407     24.7 %   $ 1,285,493     24.3 %   $ 1,202,622     24.3 %   $ 1,168,069     23.5 %

Interest bearing DDA

     707,055     13.9 %     750,214     14.2 %     769,440     15.5 %     1,004,761     20.2 %

Money Market

     1,147,559     22.5 %     1,213,710     22.9 %     1,042,744     21.1 %     970,112     19.5 %

Savings

     246,370     4.8 %     251,815     4.7 %     239,633     4.8 %     223,161     4.5 %

Time < $100

     814,165     15.9 %     840,744     15.9 %     819,671     16.6 %     791,818     16.0 %

Time > $100

     926,286     18.2 %     954,658     18.0 %     874,608     17.7 %     808,486     16.3 %
                                        

Total Deposits

   $ 5,104,842       $ 5,296,634       $ 4,948,718       $ 4,966,407    
                                        

Loan to Deposit Ratio

     63.6 %       62.6 %       63.9 %       63.3 %  

 

Page 13 of 20


Prosperity Bancshares, Inc.®

Financial Highlights

(Dollars in thousands)

 

     Sept 30, 2008     June 30, 2008     Mar 31, 2008     Dec 31, 2007     Sept 30, 2007  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Balance Sheet Data (at period end)

          

Total loans

   $ 3,248,617     $ 3,313,328     $ 3,161,627     $ 3,142,971     $ 3,127,555  

Investment securities(L)

     2,294,403       2,235,703       2,086,382       1,857,606       1,804,326  

Federal funds sold and other temporary investments

     25,748       14,230       32,268       193,043       101,173  
                                        

Total earning assets

     5,568,768       5,563,261       5,280,277       5,193,620       5,033,054  

Allowance for credit losses

     (33,981 )     (34,085 )     (32,067 )     (32,543 )     (35,536 )

Cash and due from banks

     159,386       170,966       159,754       178,247       141,662  

Goodwill

     811,916       811,391       769,013       753,909       745,650  

Core deposit intangibles

     44,974       47,536       43,577       46,069       48,689  

Other real estate

     7,538       6,655       11,612       10,207       1,460  

Fixed assets, net

     123,823       125,000       123,806       120,044       120,794  

Other assets

     105,485       103,010       108,761       102,790       114,751  
                                        

Total assets

   $ 6,787,909     $ 6,793,734     $ 6,464,733     $ 6,372,343     $ 6,170,524  
                                        

Demand deposits

   $ 1,263,407     $ 1,285,493     $ 1,202,622     $ 1,168,069     $ 1,165,089  

Interest bearing deposits

     3,841,435       4,011,141       3,746,096       3,798,338       3,618,925  
                                        

Total deposits

     5,104,842       5,296,634       4,948,718       4,966,407       4,784,014  

Securities sold under repurchase agreements

     100,310       99,225       70,942       84,581       79,484  

Federal funds purchased and other borrowings

     219,671       42,089       125,360       31,466       31,988  

Junior subordinated debentures

     92,265       92,265       112,885       112,885       112,885  

Other liabilities

     41,641       45,916       58,761       49,573       50,908  
                                        

Total liabilities

     5,558,729       5,576,129       5,316,666       5,244,912       5,059,279  

Shareholders’ equity(M)

     1,229,180       1,217,605       1,148,067       1,127,431       1,111,245  
                                        

Total liabilities and equity

   $ 6,787,909     $ 6,793,734     $ 6,464,733     $ 6,372,343     $ 6,170,524  
                                        

 

(L)

Includes $1,220, ($633), $3,903, ($7,795) and ($2,924) in unrealized gains (losses) on available for sale securities for the quarterly periods ending September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 2007, respectively.

(M)

Includes $793, ($411), $2,537, ($5,067) and ($1,901) in after-tax unrealized gains (losses) on available for sale securities for the quarterly periods ending September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 2007, respectively.

 

Page 14 of 20


Prosperity Bancshares, Inc.®

Financial Highlights

(Dollars in thousands)

 

     Three Months Ended
     Sept 30, 2008     June 30, 2008     Mar 31, 2008    Dec 31, 2007     Sept 30, 2007
     (Unaudited)     (Unaudited)     (Unaudited)    (Unaudited)     (Unaudited)

Income Statement Data

           

Interest on loans

   $ 56,925     $ 55,948     $ 58,520    $ 61,682     $ 64,036

Interest on securities

     27,834       25,856       24,783      22,446       23,316

Interest on federal funds sold and other earning assets

     87       175       1,162      1,313       652
                                     

Total interest income

     84,846       81,979       84,465      85,441       88,004
                                     

Interest expense- deposits

     23,874       25,210       28,945      30,354       31,794

Interest expense- debentures

     1,410       1,558       2,019      2,206       2,358

Interest expense- other

     1,756       1,240       1,506      1,247       2,483
                                     

Total interest expense

     27,040       28,008       32,470      33,807       36,635
                                     

Net interest income

     57,806       53,971       51,995      51,634       51,369

Provision for credit losses

     1,700       1,000       1,167      120       75
                                     

Net interest income after provision for credit losses

     56,106       52,971       50,828      51,514       51,294
                                     

Service charges on deposits accounts

     11,348       10,727       10,506      11,029       10,785

Net gain on sale of assets

     34       676       4      91       188

Net (loss) gain on sale of ORE

     (210 )     (478 )     39      (6 )     452

Brokered mortgage income

     74       113       109      105       188

Net gain on sale of held for sale loans

     46       110       73      132       269

Gain on sale of securities

     0       0       0      28       58

Other non-interest income

     1,825       1,918       1,948      1,869       2,219
                                     

Total non-interest income

     13,117       13,066       12,679      13,248       14,159
                                     

Salaries and benefits

     17,526       16,751       16,130      15,747       16,365

CDI amortization

     2,562       2,459       2,492      2,620       2,586

Net occupancy and equipment

     3,088       2,867       2,810      2,775       2,665

Depreciation

     1,955       1,920       1,937      1,955       1,895

Data processing and software amortization

     1,319       1,361       1,291      1,123       1,290

Impairment charge on write-down of securities

     14,025       0       0      9,975       0

Other non-interest expense

     5,755       5,502       4,460      5,218       5,286
                                     

Total non-interest expense

     46,230       30,860       29,120      39,413       30,087
                                     

Net income before taxes

     22,993       35,177       34,387      25,349       35,366

Federal income taxes

     7,546       11,740       11,449      8,268       11,518
                                     

Net income available to common shareholders

   $ 15,447 (N)   $ 23,437     $ 22,938    $ 17,081 (O)   $ 23,848
                                     

 

(N) Earnings for the three months ended September 30, 2008 includes a $14.025 million pre-tax, or $9.116 million after-tax, impairment charge on write-down of securities.
(O) Earnings for the three months ended December 31, 2007 includes a $9.975 million pre-tax, or $6.5 million after-tax, impairment charge on write-down of securities.

 

Page 15 of 20


Prosperity Bancshares, Inc.®

Financial Highlights

 

     Three Months Ended  
     Sept 30, 2008     June 30, 2008     Mar 31, 2008     Dec 31, 2007     Sept 30, 2007  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Comparative Quarterly Asset Quality, Performance & Capital Ratios

          

Return on average assets (annualized)

   0.91 %(P)   1.43 %   1.43 %   1.11 %(Q)   1.53 %

Return on average common equity (annualized)

   5.04 %(P)   7.96 %   8.02 %   6.09 %(Q)   8.67 %

Return on average tangible equity (annualized)

   16.83 %(P)   26.93 %   27.28 %   20.83 %(Q)   30.53 %

Net interest margin (tax equivalent) (annualized)

   4.15 %   4.10 %   4.03 %   4.12 %   4.07 %

Employees—FTE

   1,366     1,397     1,374     1,359     1,369  

Efficiency ratio

   45.30 %   46.17 %   45.06 %   45.45 %   46.41 %

Non-performing assets to average earning assets

   0.26 %   0.22 %   0.33 %   0.30 %   0.19 %

Non-performing assets to loans and other real estate

   0.45 %   0.35 %   0.55 %   0.49 %   0.30 %

Net charge-offs to average loans

   0.05 %   0.04 %   0.05 %   0.10 %   0.04 %

Allowance for credit losses to total loans

   1.05 %   1.03 %   1.01 %   1.04 %   1.14 %

Tier 1 risk-based capital

   13.31 %   12.70 %   13.16 %   13.13 %   13.03 %

Total risk-based capital

   14.29 %   13.67 %   14.11 %   14.11 %   14.11 %

Tier 1 leverage capital

   7.75 %   7.87 %   7.91 %   8.09 %   7.83 %

Tangible equity to tangible assets

   6.28 %   6.04 %   5.94 %   5.88 %   5.89 %

Equity to assets

   18.11 %   17.92 %   17.76 %   17.69 %   18.01 %

 

(P)

Earnings for the three months ended September 30, 2008 includes a $14.025 million pre-tax, or $9.116 million after-tax, impairment charge on write-down of securities, which resulted in a 53 basis point decrease in return on average assets to 0.91%, a 298 basis point decrease in return on average equity to 5.04% and a 993 basis point decrease in return on average tangible common equity to 16.83%.

 

(Q)

Earnings for the three months ended December 31, 2007 includes a $6.5 million after-tax impairment charge on write-down of securities, which resulted in a 41 basis point decrease on return on average assets to 1.11%, a 231 basis point decrease on return on average equity to 6.09% and a 790 basis point decrease on return on average tangible common equity to 20.83%.

 

Page 16 of 20


Prosperity Bancshares, Inc.®

Supplemental Financial Data (Unaudited)

(Dollars in thousands)

 

     Three Months Ended September 30, 2008  
      Average
Balance
    Interest Earned
/ Interest Paid
   Average
Yield/Rate
 

YIELD ANALYSIS

       

Interest Earning Assets:

       

Loans

   $ 3,289,203     $ 56,925    6.89 %

Investment securities

     2,292,571       27,834    4.86 %

Federal funds sold and other temporary investments

     18,854       87    1.84 %
                 

Total interest earning assets

     5,600,628     $ 84,846    6.03 %
           

Allowance for credit losses

     (33,746 )     

Non-interest earning assets

     1,234,567       
             

Total assets

   $ 6,801,449       
             

Interest Bearing Liabilities:

       

Interest bearing demand deposits

   $ 712,741     $ 1,565    0.87 %

Savings and money market deposits

     1,439,838       6,783    1.87 %

Certificates and other time deposits

     1,767,712       15,526    3.49 %

Securities sold under repurchase agreements

     95,533       631    2.63 %

Federal funds purchased and other borrowings

     146,172       1,125    3.06 %

Junior subordinated debentures

     92,265       1,410    6.08 %
                 

Total interest bearing liabilities

     4,254,261     $ 27,040    2.53 %
           

Non-interest bearing liabilities:

       

Non-interest bearing demand deposits

     1,266,924       

Other liabilities

     55,105       
             

Total liabilities

     5,576,290       

Shareholders’ equity

     1,225,159       
             

Total liabilities and shareholders’ equity

   $ 6,801,449       
             

Net Interest Income & Margin

     $ 57,806    4.11 %
           

Net Interest Income & Margin

       

(tax equivalent)

     $ 58,471    4.15 %
           

 

Page 17 of 20


Prosperity Bancshares, Inc.®

Supplemental Financial Data (Unaudited)

(Dollars in thousands)

 

     Three Months Ended September 30, 2007  
      Average
Balance
    Interest Earned
/ Interest Paid
   Average
Yield/Rate
 

YIELD ANALYSIS

       

Interest Earning Assets:

       

Loans

   $ 3,143,076     $ 64,036    8.08 %

Investment securities

     1,892,030       23,316    4.93 %

Federal funds sold and other temporary investments

     51,880       652    4.99 %
                 

Total interest earning assets

     5,086,986     $ 88,004    6.86 %
           

Allowance for credit losses

     (35,862 )     

Non-interest earning assets

     1,182,150       
             

Total assets

   $ 6,233,274       
             

Interest Bearing Liabilities:

       

Interest bearing demand deposits

   $ 795,016     $ 3,880    1.94 %

Savings and money market deposits

     1,214,542       9,503    3.10 %

Certificates and other time deposits

     1,567,848       18,411    4.66 %

Securities sold under repurchase agreements

     82,973       935    4.47 %

Federal funds purchased and other borrowings

     116,609       1,548    5.27 %

Junior subordinated debentures

     119,328       2,358    7.84 %
                 

Total interest bearing liabilities

     3,896,316     $ 36,635    3.73 %
           

Non-interest bearing liabilities:

       

Non-interest bearing demand deposits

     1,170,352       

Other liabilities

     66,678       
             

Total liabilities

     5,133,346       

Shareholders’ equity

     1,099,928       
             

Total liabilities and shareholders’ equity

   $ 6,233,274       
             

Net Interest Income & Margin

     $ 51,369    4.01 %
           

Net Interest Income & Margin

       

(tax equivalent)

     $ 52,182    4.07 %
           

 

Page 18 of 20


Prosperity Bancshares, Inc.®

Supplemental Financial Data (Unaudited)

(Dollars in thousands)

 

     Nine Months Ended September 30, 2008  
      Average
Balance
    Interest Earned
/ Interest Paid
   Average
Yield / Rate
 

YIELD ANALYSIS

       

Interest Earning Assets:

       

Loans

   $ 3,212,176     $ 171,393    7.13 %

Investment securities

     2,134,396       78,473    4.90 %

Federal funds sold and other temporary investments

     61,264       1,424    3.10 %
                 

Total interest earning assets

     5,407,836     $ 251,290    6.21 %
           

Allowance for credit losses

     (32,839 )     

Non-interest earning assets

     1,213,656       
             

Total assets

   $ 6,588,653       
             

Interest Bearing Liabilities:

       

Interest bearing demand deposits

   $ 775,730     $ 6,338    1.09 %

Savings and money market deposits

     1,354,694       20,875    2.06 %

Certificates and other time deposits

     1,712,402       50,816    3.96 %

Securities sold under repurchase agreements

     81,390       1,809    2.97 %

Federal funds purchased and other borrowings

     106,572       2,693    3.38 %

Junior subordinated debentures

     101,429       4,987    6.57 %
                 

Total interest bearing liabilities

     4,132,217     $ 87,518    2.83 %
           

Non-interest bearing liabilities:

       

Non-interest bearing demand deposits

     1,212,379       

Other liabilities

     61,405       
             

Total liabilities

     5,406,001       

Shareholders’ equity

     1,182,652       
             

Total liabilities and shareholders’ equity

   $ 6,588,653       
             

Net Interest Income & Margin

     $ 163,772    4.05 %
           

Net Interest Income & Margin

       

(tax equivalent)

     $ 165,995    4.10 %
           

 

Page 19 of 20


Prosperity Bancshares, Inc.®

Supplemental Financial Data (Unaudited)

(Dollars in thousands)

 

     Nine Months Ended September 30, 2007  
      Average
Balance
    Interest Earned
/ Interest Paid
   Average
Yield / Rate
 

YIELD ANALYSIS

       

Interest Earning Assets:

       

Loans

   $ 3,078,065     $ 185,919    8.08 %

Investment securities

     1,865,847       67,021    4.79 %

Federal funds sold and other temporary investments

     58,117       2,228    5.13 %
                 

Total interest earning assets

     5,002,029     $ 255,168    6.82 %
           

Allowance for credit losses

     (34,742 )     

Non-interest earning assets

     1,119,480       
             

Total assets

   $ 6,086,767       
             

Interest Bearing Liabilities:

       

Interest bearing demand deposits

   $ 830,770     $ 12,803    2.06 %

Savings and money market deposits

     1,211,118       26,800    2.96 %

Certificates and other time deposits

     1,536,277       52,725    4.59 %

Securities sold under repurchase agreements

     72,724       2,319    4.26 %

Federal funds purchased and other borrowings

     97,757       3,867    5.29 %

Junior subordinated debentures

     128,522       7,852    8.17 %
                 

Total interest bearing liabilities

     3,877,168     $ 106,366    3.67 %
           

Non-interest bearing liabilities:

       

Non-interest bearing demand deposits

     1,123,452       

Other liabilities

     48,678       
             

Total liabilities

     5,049,298       

Shareholders’ equity

     1,037,469       
             

Total liabilities and shareholders’ equity

   $ 6,086,767       
             

Net Interest Income & Margin

     $ 148,802    3.98 %
           

Net Interest Income & Margin

       

(tax equivalent)

     $ 151,088    4.04 %
           

---

 

Page 20 of 20