- Board approved increase in dividend of 1.82% to $0.56 for the fourth quarter 2023, representing
the 20th annual increase with a compounded annual growth rate of
11.5%
- Net income of $112.2 million
and diluted earnings per share of $1.20 for third quarter 2023
- Deposits, excluding public funds deposits, increased
$259.9 million during third quarter
2023, with no brokered deposits purchased
- Noninterest-bearing deposits of $10.3
billion, representing 37.6% of total deposits
- Loans, excluding Warehouse Purchase Program loans and loans
acquired in the Merger, increased $111.1
million during third quarter 2023
- Net interest margin was stable at 2.72%, a 1 basis point
decrease from second quarter 2023
- Nonperforming assets remain low at 0.20% of third quarter
average interest-earning assets
- Pending merger of Lone Star State Bancshares, Inc.,
Lubbock, Texas
HOUSTON, Oct. 25,
2023 /PRNewswire/ -- Prosperity Bancshares,
Inc.® (NYSE: PB), the parent company of Prosperity
Bank® (collectively, "Prosperity"), reported net income
of $112.2 million for the quarter
ended September 30, 2023 compared with $135.8 million for the same period in 2022. Net
income per diluted common share was $1.20 for the quarter ended September 30,
2023 compared with $1.49 for the same
period in 2022. Additionally, loans, excluding Warehouse
Purchase Program loans and loans acquired in the merger of First
Bancshares of Texas, Inc. ("First
Bancshares") into Prosperity Bancshares, increased $111.1 million during the third quarter of 2023.
The annualized return on third quarter average assets was 1.13%.
Nonperforming assets remain low at 0.20% of third quarter average
interest-earning assets. On May 1,
2023, First Bancshares merged with Prosperity Bancshares and
FirstCapital Bank of Texas, N.A.
("FirstCapital Bank") merged with Prosperity Bank (collectively,
the "Merger").
"I am pleased to announce that the Board of Directors approved
raising the fourth quarter 2023 dividend to $0.56 per share from $0.55 per share that was paid in the prior four
quarters. The increase reflects the continued confidence the Board
has in our company and our markets. The compounded annual growth
rate in dividends declared from 2003 - 2023 was 11.5%," said
David Zalman, Prosperity's Senior
Chairman and Chief Executive Officer.
"We continue to share our success with our shareholders through
the payment of dividends and opportunistic stock repurchases, while
also continuing to grow our capital. Our tangible capital increased
$243 million from September 30, 2022 to September 30, 2023. This is the amount
Prosperity retained after paying $203
million in dividends and repurchasing $72 million of our common stock during this
period, reflecting Prosperity's stable earnings," added Zalman.
"After a more challenging time in the first quarter 2023 due to
the large bank failures outside of Prosperity's markets,
Prosperity's deposits stabilized during the third quarter. Total
deposits, excluding Public Funds, increased $260 million during the third quarter and our
noninterest-bearing deposits represented a strong 37.6% of total
deposits. Importantly, this was achieved without the purchase of
any brokered deposits," continued Zalman.
"Interest rates have continued to increase and there are signs
of the economy slowing and overall loan growth moderating as
intended by the Federal Reserve's actions. Prosperity's asset
quality remains sound, while our allowance for credit losses on
loans and off-balance sheet credit exposures was $388 million as of September 30, 2023," stated Zalman.
"Although there are signs of a slowdown, we believe the overall
economy is still in fairly good shape, and we are excited for our
future. Thank you to all our customers, shareholders, directors and
associates for all your support," concluded Zalman.
Results of Operations for the Three Months Ended
September 30, 2023
Net income was $112.2
million(2) for the three months ended
September 30, 2023 compared with $86.9
million(3) for the three months ended
June 30, 2023. The change was primarily due to higher net
interest income, no provision for credit losses and lower merger
related expenses. Net income per diluted common share was
$1.20 for the three months ended
September 30, 2023 compared with $0.94 for the three months ended June 30,
2023. Net income and net income per diluted common share for the
second quarter of 2023 was impacted by merger related provision for
credit losses of $18.5 million and
merger related expenses of $12.9 million. Net income was $112.2 million(2) for the three months
ended September 30, 2023 compared with $135.8 million(4) for the same period
in 2022. The change was primarily due to an increase in interest
expense and noninterest expense, partially offset by increases in
loan interest income and noninterest income. Net income per diluted
common share was $1.20 for the three
months ended September 30, 2023 compared with $1.49 for the same period in 2022. Annualized
returns on average assets, average common equity and average
tangible common equity for the three months ended
September 30, 2023 were 1.13%, 6.39% and 12.58%(1),
respectively. Prosperity's efficiency ratio (excluding net gains
and losses on the sale or write down of assets and securities) was
48.74%(1) for the three months ended September 30,
2023; and excluding merger related expenses, the efficiency ratio
was 48.35%(1).
Net interest income before provision for credit losses was
$239.5 million for the three months
ended September 30, 2023 compared with $236.5 million for the three months ended
June 30, 2023, an increase of $3.1
million or 1.3%. Net interest income before provision for
credit losses decreased $21.2 million
or 8.1% to $239.5 million for the
three months ended September 30, 2023
compared with $260.7 million for the
same period in 2022. The change was primarily due to an increase in
the average balances and average rates on borrowings and an
increase in the average rates on interest-bearing deposits,
partially offset by an increase in the average balances and average
rates on loans.
The net interest margin on a tax equivalent basis was 2.72% for
the three months ended September 30, 2023 compared with 2.73%
for the three months ended June 30, 2023. The net interest
margin on a tax equivalent basis was 2.72% for the three months
ended September 30, 2023 compared with 3.11% for the same
period in 2022. The change was primarily due to an increase in the
average balances and average rates on borrowings and an increase in
the average rates on interest-bearing deposits, partially offset by
an increase in the average balances and average rates on loans held
for investment.
Noninterest income was $38.7
million for the three months ended September 30, 2023
compared with $39.7 million for the
three months ended June 30, 2023, a decrease of $945 thousand or 2.4%. Noninterest income
increased $4.1 million or 11.7% to
$38.7 million for the three months
ended September 30, 2023 compared
with $34.7 million for the same
period in 2022, primarily due to increases in other noninterest
income, bank owned life insurance income, mortgage income and debit
card fee income.
Noninterest expense was $135.7
million for the three months ended September 30, 2023
compared with $145.9 million
for the three months ended June 30, 2023, a decrease of
$10.2 million or 7.0% . The
change was primarily due to the decrease in merger related
expenses. Noninterest expense increased $13.4 million or 11.0% to $135.7 million for the three months ended
September 30, 2023 compared with
$122.2 million for the same period in
2022. The change was primarily due to the Merger.
Results of Operations for the Nine Months Ended
September 30, 2023
Net income was $323.8
million(5) for the nine months ended
September 30, 2023 compared with $386.6
million(6) for the same period in 2022. The
change was primarily due to lower net interest income, merger
related provision for credit losses of $18.5 million and merger related expenses of
$14.9 million. Net income per
diluted common share was $3.50 for
the nine months ended September 30, 2023 compared with
$4.22 for the same period in 2022,
and was also impacted by merger related provision and expenses.
Annualized returns on average assets, average common equity and
average tangible common equity for the nine months ended
September 30, 2023 were 1.11%, 6.25% and 12.17%(1),
respectively. Excluding merger related provision for credit losses,
net of tax, and merger related expenses, net of tax, annualized
returns on average assets, average common equity and average
tangible common equity for the nine months ended September 30, 2023 were 1.20%(1),
6.76%(1) and 13.16%(1), respectively.
Prosperity's efficiency ratio (excluding net gains and losses on
the sale or write down of assets and securities) was
48.50%(1) for the nine months ended September 30,
2023. Excluding merger related expenses, the efficiency ratio was
46.72% (1).
Net interest income before provision for credit losses for the
nine months ended September 30, 2023 was $719.5 million compared with $749.1 million for the same period in 2022, a
decrease of $29.6 million or
4.0%. The change was primarily due to an increase in the
average balances and average rates on other borrowings and an
increase in the average rates on interest-bearing deposits,
partially offset by increases in the average balances and average
rates on loans held for investment and an increase in average rates
on investment securities.
The net interest margin on a tax equivalent basis for the nine
months ended September 30, 2023 was 2.79% compared with 2.99%
for the same period in 2022. The change was primarily due to an
increase in the average balances and average rates on other
borrowings and an increase in average rates on interest-bearing
deposits, partially offset by an increase in the average balances
and average rates on loans held for investment and an increase in
average rates on investment securities.
Noninterest income was $116.7
million for the nine months ended September 30, 2023
compared with $107.4 million for the
same period in 2022, an increase of $9.3
million or 8.7%, primarily due to the Merger.
Noninterest expense was $404.5
million for the nine months ended September 30, 2023
compared with $364.9 million for the
same period in 2022, an increase of $39.6
million or 10.8%, primarily due to the Merger.
Balance Sheet Information
At September 30, 2023, Prosperity had $39.296 billion in total assets, an increase of
$1.452 billion or 3.8%, compared with
$37.844 billion at September 30,
2022.
Loans were $21.433 billion at
September 30, 2023, a decrease of $221.2 million or 1.0% from $21.654 billion at June 30, 2023. Loans
increased $2.926 billion or
15.8% compared with $18.506
billion at September 30, 2022. Loans, excluding
Warehouse Purchase Program loans, were $20.520 billion at September 30, 2023
compared to $20.505 billion at
June 30, 2023, an increase of $15.3 million, and compared to $17.584 billion at September 30, 2022, an
increase of $2.937 billion or
16.7%.
Deposits were $27.313 billion at
September 30, 2023, a decrease of $68.1
million or 0.2% compared with $27.381 billion at June 30, 2023.
Deposits, excluding public funds deposits, were $24.945 billion at September 30, 2023
compared to $24.685 billion at
June 30, 2023, an increase of $259.9
million. Deposits decreased $1.987
billion or 6.8%, compared with $29.300 billion at September 30, 2022,
primarily due to a decrease in business deposits and public fund
deposits, partially offset by an increase in Merger acquired
deposits.
The table below provides detail on the impact of loans acquired
and deposits assumed in the Merger.
Balance Sheet Data (at period
end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 30, 2023
|
|
|
Jun 30, 2023
|
|
|
Mar 31, 2023
|
|
|
Dec 31, 2022
|
|
|
Sep 30, 2022
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans acquired
(including new production since
acquisition date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FirstCapital
Bank
|
|
$
|
1,494,378
|
|
|
$
|
1,590,137
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Prosperity - Warehouse
Purchase Program loans
|
|
|
912,327
|
|
|
|
1,148,883
|
|
|
|
799,115
|
|
|
|
740,620
|
|
|
|
922,764
|
|
Prosperity - All other
loans
|
|
|
19,026,008
|
|
|
|
18,914,926
|
|
|
|
18,535,244
|
|
|
|
18,099,207
|
|
|
|
17,583,524
|
|
Total loans
|
|
$
|
21,432,713
|
|
|
$
|
21,653,946
|
|
|
$
|
19,334,359
|
|
|
$
|
18,839,827
|
|
|
$
|
18,506,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits assumed
(including new deposits since
acquisition date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FirstCapital
Bank
|
|
$
|
1,625,691
|
|
|
$
|
1,481,831
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
All other
deposits
|
|
|
25,687,109
|
|
|
|
25,899,055
|
|
|
|
27,004,236
|
|
|
|
28,533,531
|
|
|
|
29,300,095
|
|
Total
deposits
|
|
$
|
27,312,800
|
|
|
$
|
27,380,886
|
|
|
$
|
27,004,236
|
|
|
$
|
28,533,531
|
|
|
$
|
29,300,095
|
|
Excluding loans acquired in the Merger and new production by the
acquired lending operations since May 1,
2023, loans at September 30, 2023 decreased
$125.5 million or 0.6% compared with
June 30, 2023 and grew $1.432 billion or 7.7% compared with September 30, 2022. Excluding loans acquired in
the Merger and new production by the acquired lending operations
since May 1, 2023 and Warehouse
Purchase Program loans, loans at September
30, 2023 grew $111.1 million
or 0.6% (2.3% annualized) compared with June
30, 2023 and $1.442 billion or
8.2% compared with September 30,
2022.
Excluding deposits assumed in the Merger and new deposits
generated at the acquired banking centers since May 1, 2023, deposits at September 30, 2023 decreased by $211.9 million or 0.8% compared with June 30, 2023 and decreased by $3.613 billion or 12.3% compared with
September 30, 2022.
Asset Quality
Nonperforming assets totaled $69.5
million or 0.20% of quarterly average interest-earning
assets at September 30, 2023 compared with $62.7 million or 0.18% of quarterly average
interest-earning assets at June 30, 2023 and $19.9 million or 0.06% of quarterly average
interest-earning assets at September 30, 2022. The increase
during 2023 was primarily due to the Merger and an increase in
other real estate.
The allowance for credit losses on loans and off-balance sheet
credit exposures was $388.0 million
at September 30, 2023 compared with $312.1 million at September 30, 2022 and
$381.7 million at June 30,
2023. There was no provision for credit losses for the three
months ended September 30, 2023 and a
provision for credit losses of $18.5 million for the nine months ended
September 30, 2023 compared to no provision for credit losses
for the three and nine months ended September 30, 2022. As a result of the loans
acquired in the Merger, the nine months ended September 30, 2023 included a $12.0 million provision for credit losses on
loans and a $6.5 million
provision for credit losses on off-balance sheet credit
exposures.
The allowance for credit losses on loans was $351.5 million or 1.64% of total loans at
September 30, 2023 compared with $282.2
million or 1.52% of total loans at September 30, 2022
and $345.2 million or 1.59% of total
loans at June 30, 2023. Excluding Warehouse Purchase Program
loans, the allowance for credit losses on loans to total loans was
1.71%(1) at September 30, 2023 compared with
1.60%(1) at September 30, 2022 and
1.68%(1) at June 30,
2023.
Net charge-offs were $3.4 million
for the three months ended September 30, 2023 compared with
net charge-offs of $16.1 million for
the three months ended June 30, 2023 and net charge-offs of
$1.8 million for the three months
ended September 30, 2022. Net charge-offs for the third
quarter of 2023 included $298
thousand related to resolved purchased credit deteriorated
("PCD") loans. Additionally, reserves on PCD loans increased by
$9.7 million due to revised Day One
accounting for PCD loans at the time of the Merger. Further,
$12.5 million of reserves on resolved
PCD loans was released to the general reserve.
Net charge-offs were $18.9 million
for the nine months ended September 30, 2023 compared with
$4.2 million for the nine months
ended September 30, 2022. Net charge-offs for the nine months
ended September 30, 2023 included $15.0 million related to one commercial real
estate loan obtained in a previous merger. Additionally, reserves
on PCD loans increased by $76.8
million due to the Merger and $16.2
million of reserves on resolved PCD loans was released to
the general reserve.
Dividend
Prosperity Bancshares declared a fourth quarter 2023 cash
dividend of $0.56 per share to be
paid on January 2, 2024, to all
shareholders of record as of December 15,
2023, an increase of $0.01 per
share, or 1.82%, from the prior quarter.
Stock Repurchase Program
On January 17, 2023, Prosperity
Bancshares announced a stock repurchase program under which up to
5%, or approximately 4.6 million shares, of its outstanding
common stock may be acquired over a one-year period expiring on
January 17, 2024, at the discretion
of management. Under its 2023 stock repurchase program, Prosperity
Bancshares repurchased zero shares of its common stock during the
three months ended September 30,
2023, and approximately 1.21 million shares of its
common stock at an average weighted price of $59.88 per share during the nine months ended
September 30, 2023.
Redemption of Outstanding Subordinated Notes
On September 18, 2023,
$3.1 million in subordinated notes
assumed in the Merger were redeemed. The redemption was funded by
dividends from Prosperity Bank.
Merger of First Bancshares of Texas, Inc.
On May 1, 2023, Prosperity
completed the merger of First Bancshares and its wholly owned
subsidiary FirstCapital Bank, headquartered in Midland, Texas. FirstCapital Bank operated 16
full-service banking offices in six different markets in West,
North and Central Texas areas,
including its main office in Midland, and banking offices in Midland, Lubbock, Amarillo, Wichita
Falls, Burkburnett,
Byers, Henrietta, Dallas, Horseshoe
Bay, Marble Falls and
Fredericksburg, Texas.
Pursuant to the terms of the definitive agreement, Prosperity
issued 3,583,370 shares of Prosperity common stock plus
approximately $91.5 million in cash
for all outstanding shares of First Bancshares. This resulted in
goodwill of $164.8 million as of
September 30, 2023, which was subject
to subsequent fair value adjustments. During the second quarter of
2023, Prosperity completed the operational conversion of
FirstCapital Bank.
Pending Merger of Lone Star State Bancshares, Inc.
On October 11, 2022, Prosperity
Bancshares and Lone Star State Bancshares, Inc. ("Lone Star") jointly announced the signing of a
definitive merger agreement whereby Lone
Star, the parent company of Lone
Star State Bank of West
Texas ("Lone Star Bank") will
merge with and into Prosperity. Lone Star
Bank operates 5 banking offices in the West Texas area, including its main office in
Lubbock, and 1 banking center in
each of Brownfield, Midland, Odessa and Big
Spring, Texas. As of September 30,
2023, Lone Star, on a
consolidated basis, reported total assets of $1.270 billion, total loans of $1.095 billion and total deposits of $1.115 billion.
Under the terms of the merger agreement, Prosperity will issue
2,376,182 shares of Prosperity common stock plus $64.1 million in cash for all outstanding shares
of Lone Star capital stock, subject
to certain conditions and potential adjustments. Based on
Prosperity's closing price of $69.27
on October 7, 2022, the total
consideration was valued at approximately $228.7 million. The transaction is subject to
customary closing conditions, including the receipt of regulatory
approvals. The shareholders of Lone
Star approved the transaction on March 28, 2023.
Conference Call
Prosperity's management team will host a conference call on
Wednesday, October 25, 2023, at
11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's
third quarter 2023 earnings. Individuals and investment
professionals may participate in the call by dialing 877-885-0477
for domestic participants, or 412-902-6506 for international
participants. The participant elite entry number is 0411202.
Alternatively, individuals may listen to the live webcast of the
presentation by visiting Prosperity's website at
www.prosperitybankusa.com. The webcast may be accessed from
Prosperity's Investor Relations page by selecting "Presentations,
Webcasts & Calls" from the menu and following the
instructions.
Non-GAAP Financial Measures
Prosperity's management uses certain non-GAAP financial measures
to evaluate its performance. Specifically, Prosperity reviews
return on average assets excluding merger related provision for
credit losses, net of tax, and merger related expenses, net of tax;
return on average common equity excluding merger related provision
for credit losses, net of tax, and merger related expenses, net of
tax; return on average tangible common equity; return on average
tangible common equity excluding merger related provision for
credit losses, net of tax, and merger related expenses, net of tax;
tangible book value per share; the tangible equity to tangible
assets ratio; allowance for credit losses to total loans excluding
Warehouse Purchase Program loans; the efficiency ratio, excluding
net gains and losses on the sale or write down of assets and
securities; and the efficiency ratio, excluding net gains and
losses on the sale or write down of assets and securities and
merger related expenses, for internal planning and forecasting
purposes. Prosperity believes these non-GAAP financial measures
provide information useful to investors in understanding
Prosperity's financial results and their presentation, together
with the accompanying reconciliations, provides a more 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 financial measures provide useful information by
excluding certain items that may not be indicative of its core
operating earnings and business outlook. These non-GAAP financial
measures should not be considered a substitute for, nor of greater
importance than, GAAP basis financial measures and results;
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. 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 to the nearest
respective GAAP financial measures.
Prosperity Bancshares, Inc. ®
As of September 30, 2023, Prosperity Bancshares,
Inc.® is a $39.296 billion
Houston, Texas based regional
financial holding company providing personal banking services and
investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983,
Prosperity believes in a community banking philosophy, taking care
of customers, businesses and communities in the areas it serves by
providing financial solutions to simplify everyday financial needs.
In addition to offering traditional deposit and loan products,
Prosperity offers digital banking solutions, credit and debit
cards, mortgage services, retail brokerage services, trust and
wealth management, and treasury management.
Prosperity currently operates 285 full-service banking
locations: 65 in the Houston area,
including The Woodlands; 30 in the
South Texas area including
Corpus Christi and Victoria; 62 in the Dallas/Fort Worth area; 22 in the East Texas area; 32 in the Central Texas area including Austin and San
Antonio; 44 in the West
Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita
Falls; 16 in the Bryan/College
Station area, 6 in the Central
Oklahoma area; 8 in the Tulsa,
Oklahoma area.
Cautionary Notes on Forward-Looking Statements
"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 federal
securities laws, including Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. From time to time, oral or written
forward-looking statements may also be included in other
information released to the public. Such forward-looking
statements are typically, but not exclusively, identified by the
use in the statements of words or phrases such as "aim,"
"anticipate," "believe," "estimate," "expect," "goal," "guidance,"
"intend," "is anticipated," "is expected," "is intended,"
"objective," "plan," "projected," "projection," "will affect,"
"will be," "will continue," "will decrease," "will grow," "will
impact," "will increase," "will incur," "will reduce," "will
remain," "will result," "would be," variations of such words or
phrases (including where the word "could," "may," or "would" is
used rather than the word "will" in a phrase) and similar words and
phrases indicating that the statement addresses some future result,
occurrence, plan or objective. Forward-looking statements include
all statements other than statements of historical fact, including
forecasts or trends, and are based on current expectations,
assumptions, estimates and projections about Prosperity Bancshares
and its subsidiaries. These forward-looking statements may include
information about Prosperity's possible or assumed future economic
performance or future results of operations, including future
revenues, income, expenses, provision for loan losses, provision
for taxes, effective tax rate, earnings per share and cash flows
and Prosperity's future capital expenditures and dividends, future
financial condition and changes therein, including changes in
Prosperity's loan portfolio and allowance for loan losses, changes
in deposits, borrowings and the investment securities portfolio,
future capital structure or changes therein, as well as the plans
and objectives of management for Prosperity's future operations,
future or proposed acquisitions, including the pending transaction
with Lone Star, the future or
expected effect of acquisitions on Prosperity's operations, results
of operations, financial condition, and future economic
performance, statements about the anticipated benefits of each of
the proposed transactions, and statements about the assumptions
underlying any such statement. These forward‑looking statements are
not guarantees of future performance and are based on expectations
and assumptions Prosperity currently believes to be valid.
Because forward-looking statements relate to future results and
occurrences, many of which are outside of Prosperity's control,
they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. 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, including Lone Star; 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); the possibility that the anticipated benefits of an
acquisition transaction, including the pending transaction with
Lone Star, are not realized when
expected or at all, including as a result of the impact of, or
problems arising from, the integration of two companies or as a
result of the strength of the economy and competitive factors
generally; 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, interest rate and commodity price fluctuations; and the
effect, impact, potential duration or other implications of weather
and climate-related events. Prosperity disclaims any obligation to
update such factors or to publicly announce the results of any
revisions to any of the forward-looking statements included herein
to reflect future events or developments. These and various other
factors are discussed in Prosperity's Annual Report on Form 10-K
for the year ended December 31, 2022,
and other reports and statements Prosperity has filed with the
Securities and Exchange Commission ("SEC"). Copies of the SEC
filings for Prosperity may be downloaded from the Internet at no
charge from http://www.prosperitybankusa.com.
____________________
|
1.
|
Refer to the "Notes to
Selected Financial Data" at the end of this Earnings Release for a
reconciliation of this non-GAAP financial measure to the nearest
GAAP financial measure.
|
2.
|
Includes purchase
accounting adjustments of $2.5 million, net of tax, primarily
comprised of loan discount accretion of $2.3 million, and merger
related expenses of $1.1 million for the three months ended
September 30, 2023.
|
3.
|
Includes purchase
accounting adjustments of $2.4 million, net of tax, primarily
comprised of loan discount accretion of $2.4 million, merger
related provision for credit losses of $18.5 million and merger
related expenses of $12.9 million for the three months ended June
30, 2023.
|
4.
|
Includes purchase
accounting adjustments of $997 thousand, net of tax, primarily
comprised of loan discount accretion of $1.2 million for the three
months ended September 30, 2022.
|
5.
|
Includes purchase
accounting adjustments of $5.6 million, net of tax, primarily
comprised of loan discount accretion of $5.6 million, merger
related provision for credit losses of $18.5 million and merger
related expenses of $14.9 million for the nine months ended
September 30, 2023.
|
6.
|
Includes purchase
accounting adjustments of $5.2 million, net of tax, primarily
comprised of loan discount accretion of $6.5 million for the nine
months ended September 30, 2022.
|
Bryan/College
Station Area
|
|
Frisco-West
|
|
Rusk
|
|
Nederland
|
|
Texas Tech Student
Union
|
Bryan
|
|
Garland
|
|
Seven Points
|
|
Needville
|
|
|
Bryan-29th
Street
|
|
Grapevine
|
|
Teague
|
|
Rosenberg
|
|
Midland
|
Bryan-East
|
|
Grapevine
Main
|
|
Tyler-Beckham
|
|
Shadow Creek
|
|
North
|
Bryan-North
|
|
Kiest
|
|
Tyler-South
Broadway
|
|
Spring
|
|
Wadley
|
Caldwell
|
|
Lake
Highlands
|
|
Tyler-University
|
|
Tomball
|
|
Wall Street
|
College
Station
|
|
McKinney
|
|
Winnsboro
|
|
Waller
|
|
West
|
Crescent
Point
|
|
McKinney
Eldorado
|
|
|
|
West
Columbia
|
|
|
Hearne
|
|
McKinney
Redbud
|
|
Houston
Area
|
|
Wharton
|
|
Odessa
|
Huntsville
|
|
North
Carrolton
|
|
Houston
|
|
Winnie
|
|
Grandview
|
Madisonville
|
|
Park Cities
|
|
Aldine
|
|
Wirt
|
|
Grant
|
Navasota
|
|
Plano
|
|
Alief
|
|
|
|
Kermit
Highway
|
New Waverly
|
|
Plano-West
|
|
Bellaire
|
|
South Texas Area
-
|
|
Parkway
|
Rock Prairie
|
|
Preston
Forest
|
|
Beltway
|
|
Corpus
Christi
|
|
|
Southwest
Parkway
|
|
Preston
Parker
|
|
Clear Lake
|
|
Calallen
|
|
Wichita
Falls
|
Tower Point
|
|
Preston
Royal
|
|
Copperfield
|
|
Carmel
|
|
Cattlemans
|
Wellborn
Road
|
|
Red Oak
|
|
Cypress
|
|
Northwest
|
|
Kell
|
|
|
Richardson
|
|
Downtown
|
|
Saratoga
|
|
|
Central Texas
Area
|
|
Richardson-West
|
|
Eastex
|
|
Timbergate
|
|
Other West Texas
Area
|
Austin
|
|
Rosewood
Court
|
|
Fairfield
|
|
Water Street
|
|
Locations
|
Allandale
|
|
The Colony
|
|
First Colony
|
|
|
|
Big Spring
|
Cedar Park
|
|
Tollroad
|
|
Fry Road
|
|
Victoria
|
|
Brownfield
|
Congress
|
|
Trinity
Mills
|
|
Gessner
|
|
Victoria
Main
|
|
Brownwood
|
Lakeway
|
|
Turtle Creek
|
|
Gladebrook
|
|
Victoria-Navarro
|
|
Burkburnett
|
Liberty Hill
|
|
West 15th
Plano
|
|
Grand
Parkway
|
|
Victoria-North
|
|
Byers
|
Northland
|
|
West Allen
|
|
Heights
|
|
Victoria
Salem
|
|
Cisco
|
Oak Hill
|
|
Westmoreland
|
|
Highway 6
West
|
|
|
|
Comanche
|
Research
Blvd
|
|
Wylie
|
|
Little York
|
|
Other South Texas
Area
|
|
Early
|
Westlake
|
|
|
|
Medical
Center
|
|
Locations
|
|
Floydada
|
|
|
Fort
Worth
|
|
Memorial
Drive
|
|
Alice
|
|
Gorman
|
Other Central Texas
Area
|
|
Haltom City
|
|
Northside
|
|
Aransas Pass
|
|
Henrietta
|
Locations
|
|
Hulen
|
|
Pasadena
|
|
Beeville
|
|
Levelland
|
Bastrop
|
|
Keller
|
|
Pecan Grove
|
|
Colony Creek
|
|
Littlefield
|
Canyon Lake
|
|
Museum Place
|
|
Pin Oak
|
|
Cuero
|
|
Merkel
|
Dime Box
|
|
Renaissance
Square
|
|
River Oaks
|
|
Edna
|
|
Plainview
|
Dripping
Springs
|
|
Roanoke
|
|
Sugar Land
|
|
Goliad
|
|
San Angelo
|
Elgin
|
|
Stockyards
|
|
SW Medical
Center
|
|
Gonzales
|
|
Slaton
|
Flatonia
|
|
|
|
Tanglewood
|
|
Hallettsville
|
|
Snyder
|
Fredericksburg
|
|
Other Dallas/Fort
Worth Area
|
|
The Plaza
|
|
Kingsville
|
|
|
Georgetown
|
|
Locations
|
|
Uptown
|
|
Mathis
|
|
Oklahoma
|
Gruene
|
|
Arlington
|
|
Waugh Drive
|
|
Padre Island
|
|
Central Oklahoma
Area
|
Horseshoe
Bay
|
|
Azle
|
|
Westheimer
|
|
Palacios
|
|
Oklahoma
City
|
Kingsland
|
|
Ennis
|
|
West
University
|
|
Port Lavaca
|
|
23rd
Street
|
La Grange
|
|
Gainesville
|
|
Woodcreek
|
|
Portland
|
|
Expressway
|
Lexington
|
|
Glen Rose
|
|
|
|
Rockport
|
|
I-240
|
Marble Falls
|
|
Granbury
|
|
Katy
|
|
Sinton
|
|
Memorial
|
New
Braunfels
|
|
Grand
Prairie
|
|
Cinco Ranch
|
|
Taft
|
|
|
Pleasanton
|
|
Jacksboro
|
|
Katy-Spring
Green
|
|
Yoakum
|
|
Other Central
Oklahoma Area
|
Round Rock
|
|
Mesquite
|
|
|
|
Yorktown
|
|
Locations
|
San Antonio
|
|
Muenster
|
|
The
Woodlands
|
|
|
|
Edmond
|
Schulenburg
|
|
Runaway Bay
|
|
The Woodlands-College
Park
|
|
West Texas
Area
|
|
Norman
|
Seguin
|
|
Sanger
|
|
The
Woodlands-I-45
|
|
Abilene
|
|
|
Smithville
|
|
Waxahachie
|
|
The Woodlands-Research
Forest
|
|
Antilley
Road
|
|
Tulsa
Area
|
Thorndale
|
|
Weatherford
|
|
|
|
Barrow
Street
|
|
Tulsa
|
Weimar
|
|
|
|
Other Houston
Area
|
|
Cypress
Street
|
|
|
|
|
East Texas
Area
|
|
Locations
|
|
Judge Ely
|
|
Garnett
|
Dallas/Fort Worth
Area
|
|
Athens
|
|
Angleton
|
|
Mockingbird
|
|
Harvard
|
Dallas
|
|
Blooming
Grove
|
|
Bay City
|
|
|
|
Memorial
|
14th Street
Plano
|
|
Canton
|
|
Beaumont
|
|
Amarillo
|
|
Sheridan
|
Abrams
Centre
|
|
Carthage
|
|
Cleveland
|
|
Hillside
|
|
S. Harvard
|
Addison
|
|
Corsicana
|
|
East Bernard
|
|
Soncy
|
|
Utica Tower
|
Allen
|
|
Crockett
|
|
El Campo
|
|
|
|
Yale
|
Balch
Springs
|
|
Eustace
|
|
Dayton
|
|
Lubbock
|
|
|
Camp Wisdom
|
|
Gilmer
|
|
Galveston
|
|
4th Street
|
|
Other Tulsa Area
Locations
|
Carrollton
|
|
Grapeland
|
|
Groves
|
|
66th Street
|
|
Owasso
|
Cedar Hill
|
|
Gun Barrel
City
|
|
Hempstead
|
|
82nd Street
|
|
|
Coppell
|
|
Jacksonville
|
|
Hitchcock
|
|
86th Street
|
|
|
East Plano
|
|
Kerens
|
|
Liberty
|
|
98th
Street
|
|
|
Euless
|
|
Longview
|
|
Magnolia
|
|
Avenue Q
|
|
|
Frisco
|
|
Mount Vernon
|
|
Magnolia
Parkway
|
|
Milwaukee
|
|
|
Frisco
Warren
|
|
Palestine
|
|
Mont Belvieu
|
|
North
University
|
|
|
- - -
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(In
thousands)
|
|
|
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
Balance Sheet Data
(at period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
10,187
|
|
|
$
|
10,656
|
|
|
$
|
1,603
|
|
|
$
|
554
|
|
|
$
|
2,871
|
|
Loans held for
investment
|
|
|
20,510,199
|
|
|
|
20,494,407
|
|
|
|
18,533,641
|
|
|
|
18,098,653
|
|
|
|
17,580,653
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
912,327
|
|
|
|
1,148,883
|
|
|
|
799,115
|
|
|
|
740,620
|
|
|
|
922,764
|
|
Total loans
|
|
|
21,432,713
|
|
|
|
21,653,946
|
|
|
|
19,334,359
|
|
|
|
18,839,827
|
|
|
|
18,506,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities(A)
|
|
|
13,192,742
|
|
|
|
13,667,319
|
|
|
|
14,071,545
|
|
|
|
14,476,005
|
|
|
|
14,806,487
|
|
Federal funds
sold
|
|
|
234
|
|
|
|
181
|
|
|
|
222
|
|
|
|
301
|
|
|
|
244
|
|
Allowance for credit
losses on loans
|
|
|
(351,495)
|
|
|
|
(345,209)
|
|
|
|
(282,191)
|
|
|
|
(281,576)
|
|
|
|
(282,179)
|
|
Cash and due from
banks
|
|
|
512,239
|
|
|
|
396,848
|
|
|
|
405,331
|
|
|
|
423,832
|
|
|
|
602,152
|
|
Goodwill
|
|
|
3,396,459
|
|
|
|
3,383,698
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
Core deposit
intangibles, net
|
|
|
67,553
|
|
|
|
71,128
|
|
|
|
48,974
|
|
|
|
51,348
|
|
|
|
53,906
|
|
Other real estate
owned
|
|
|
9,320
|
|
|
|
3,107
|
|
|
|
1,989
|
|
|
|
1,963
|
|
|
|
1,758
|
|
Fixed assets,
net
|
|
|
370,237
|
|
|
|
365,299
|
|
|
|
345,149
|
|
|
|
339,453
|
|
|
|
337,099
|
|
Other assets
|
|
|
665,682
|
|
|
|
708,814
|
|
|
|
672,218
|
|
|
|
607,040
|
|
|
|
586,111
|
|
Total
assets
|
|
$
|
39,295,684
|
|
|
$
|
39,905,131
|
|
|
$
|
37,829,232
|
|
|
$
|
37,689,829
|
|
|
$
|
37,843,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
10,281,893
|
|
|
$
|
10,364,921
|
|
|
$
|
10,108,348
|
|
|
$
|
10,915,448
|
|
|
$
|
11,154,143
|
|
Interest-bearing
deposits
|
|
|
17,030,907
|
|
|
|
17,015,965
|
|
|
|
16,895,888
|
|
|
|
17,618,083
|
|
|
|
18,145,952
|
|
Total
deposits
|
|
|
27,312,800
|
|
|
|
27,380,886
|
|
|
|
27,004,236
|
|
|
|
28,533,531
|
|
|
|
29,300,095
|
|
Other
borrowings
|
|
|
4,250,000
|
|
|
|
4,800,000
|
|
|
|
3,365,000
|
|
|
|
1,850,000
|
|
|
|
1,165,000
|
|
Securities sold under
repurchase agreements
|
|
|
300,714
|
|
|
|
434,160
|
|
|
|
434,261
|
|
|
|
428,134
|
|
|
|
454,304
|
|
Subordinated
debentures
|
|
|
—
|
|
|
|
3,093
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Allowance for credit
losses on off-balance sheet credit
exposures
|
|
|
36,503
|
|
|
|
36,503
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
Other
liabilities
|
|
|
362,990
|
|
|
|
282,373
|
|
|
|
256,671
|
|
|
|
148,843
|
|
|
|
282,514
|
|
Total
liabilities
|
|
|
32,263,007
|
|
|
|
32,937,015
|
|
|
|
31,090,115
|
|
|
|
30,990,455
|
|
|
|
31,231,860
|
|
Shareholders'
equity(B)
|
|
|
7,032,677
|
|
|
|
6,968,116
|
|
|
|
6,739,117
|
|
|
|
6,699,374
|
|
|
|
6,611,642
|
|
Total liabilities and
equity
|
|
$
|
39,295,684
|
|
|
$
|
39,905,131
|
|
|
$
|
37,829,232
|
|
|
$
|
37,689,829
|
|
|
$
|
37,843,502
|
|
(A)
|
Includes $(2,442),
$(3,393), $(4,399), $(4,396) and $(296) in unrealized losses on
available for sale securities for the quarterly periods ended
September 30, 2023, June 30, 2023, March 31, 2023, December 31,
2022 and September 30, 2022, respectively.
|
(B)
|
Includes $(1,930),
$(2,681), $(3,476), $(3,473) and $(234) in after-tax unrealized
losses on available for sale securities for the quarterly periods
ended September 30, 2023, June 30, 2023, March 31, 2023, December
31, 2022 and September 30, 2022, respectively.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Sep 30,
2023
|
|
|
Sep 30,
2022
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
308,678
|
|
|
$
|
286,638
|
|
|
$
|
247,118
|
|
|
$
|
235,126
|
|
|
$
|
210,268
|
|
|
$
|
842,434
|
|
|
$
|
596,063
|
|
Securities(C)
|
|
|
69,987
|
|
|
|
72,053
|
|
|
|
73,185
|
|
|
|
72,533
|
|
|
|
68,761
|
|
|
|
215,225
|
|
|
|
187,883
|
|
Federal funds sold and
other earning
assets
|
|
|
1,689
|
|
|
|
1,757
|
|
|
|
7,006
|
|
|
|
933
|
|
|
|
525
|
|
|
|
10,452
|
|
|
|
2,297
|
|
Total interest
income
|
|
|
380,354
|
|
|
|
360,448
|
|
|
|
327,309
|
|
|
|
308,592
|
|
|
|
279,554
|
|
|
|
1,068,111
|
|
|
|
786,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
76,069
|
|
|
|
63,964
|
|
|
|
47,343
|
|
|
|
36,048
|
|
|
|
14,669
|
|
|
|
187,376
|
|
|
|
32,064
|
|
Other
borrowings
|
|
|
62,190
|
|
|
|
57,351
|
|
|
|
34,396
|
|
|
|
14,682
|
|
|
|
3,719
|
|
|
|
153,937
|
|
|
|
4,169
|
|
Securities sold under
repurchase
agreements
|
|
|
2,533
|
|
|
|
2,674
|
|
|
|
2,103
|
|
|
|
1,725
|
|
|
|
487
|
|
|
|
7,310
|
|
|
|
916
|
|
Subordinated
debentures
|
|
|
38
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
38
|
|
|
|
—
|
|
Total interest
expense
|
|
|
140,830
|
|
|
|
123,989
|
|
|
|
83,842
|
|
|
|
52,455
|
|
|
|
18,875
|
|
|
|
348,661
|
|
|
|
37,149
|
|
Net interest
income
|
|
|
239,524
|
|
|
|
236,459
|
|
|
|
243,467
|
|
|
|
256,137
|
|
|
|
260,679
|
|
|
|
719,450
|
|
|
|
749,094
|
|
Provision for credit
losses
|
|
|
—
|
|
|
|
18,540
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,540
|
|
|
|
—
|
|
Net interest income
after provision for credit
losses
|
|
|
239,524
|
|
|
|
217,919
|
|
|
|
243,467
|
|
|
|
256,137
|
|
|
|
260,679
|
|
|
|
700,910
|
|
|
|
749,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds
(NSF) fees
|
|
|
8,719
|
|
|
|
8,512
|
|
|
|
8,095
|
|
|
|
8,519
|
|
|
|
8,887
|
|
|
|
25,326
|
|
|
|
25,495
|
|
Credit card, debit
card and ATM card
income
|
|
|
9,285
|
|
|
|
9,206
|
|
|
|
8,666
|
|
|
|
8,816
|
|
|
|
8,889
|
|
|
|
27,157
|
|
|
|
25,948
|
|
Service charges on
deposit accounts
|
|
|
6,262
|
|
|
|
6,078
|
|
|
|
5,926
|
|
|
|
5,932
|
|
|
|
6,222
|
|
|
|
18,266
|
|
|
|
18,798
|
|
Trust
income
|
|
|
3,326
|
|
|
|
3,358
|
|
|
|
3,225
|
|
|
|
3,498
|
|
|
|
3,174
|
|
|
|
9,909
|
|
|
|
8,752
|
|
Mortgage
income
|
|
|
857
|
|
|
|
661
|
|
|
|
238
|
|
|
|
102
|
|
|
|
340
|
|
|
|
1,756
|
|
|
|
1,297
|
|
Brokerage
income
|
|
|
1,067
|
|
|
|
1,000
|
|
|
|
1,149
|
|
|
|
905
|
|
|
|
940
|
|
|
|
3,216
|
|
|
|
2,749
|
|
Bank owned life
insurance income
|
|
|
1,864
|
|
|
|
1,553
|
|
|
|
1,354
|
|
|
|
1,329
|
|
|
|
1,214
|
|
|
|
4,771
|
|
|
|
3,790
|
|
Net (loss) gain on
sale or write-down of
assets
|
|
|
(45)
|
|
|
|
1,994
|
|
|
|
121
|
|
|
|
2,087
|
|
|
|
50
|
|
|
|
2,070
|
|
|
|
1,847
|
|
Other noninterest
income
|
|
|
7,408
|
|
|
|
7,326
|
|
|
|
9,492
|
|
|
|
6,536
|
|
|
|
4,972
|
|
|
|
24,226
|
|
|
|
18,728
|
|
Total noninterest
income
|
|
|
38,743
|
|
|
|
39,688
|
|
|
|
38,266
|
|
|
|
37,724
|
|
|
|
34,688
|
|
|
|
116,697
|
|
|
|
107,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
85,423
|
|
|
|
84,723
|
|
|
|
77,798
|
|
|
|
75,353
|
|
|
|
79,578
|
|
|
|
247,944
|
|
|
|
239,360
|
|
Net occupancy and
equipment
|
|
|
9,464
|
|
|
|
8,935
|
|
|
|
8,025
|
|
|
|
8,147
|
|
|
|
8,412
|
|
|
|
26,424
|
|
|
|
24,299
|
|
Credit and debit card,
data processing
and software amortization
|
|
|
10,919
|
|
|
|
10,344
|
|
|
|
9,566
|
|
|
|
9,716
|
|
|
|
9,516
|
|
|
|
30,829
|
|
|
|
27,611
|
|
Regulatory assessments
and FDIC
insurance
|
|
|
5,155
|
|
|
|
5,097
|
|
|
|
4,973
|
|
|
|
2,873
|
|
|
|
2,807
|
|
|
|
15,225
|
|
|
|
8,508
|
|
Core deposit
intangibles amortization
|
|
|
3,576
|
|
|
|
3,167
|
|
|
|
2,374
|
|
|
|
2,558
|
|
|
|
2,577
|
|
|
|
9,117
|
|
|
|
7,778
|
|
Depreciation
|
|
|
4,585
|
|
|
|
4,658
|
|
|
|
4,433
|
|
|
|
4,438
|
|
|
|
4,436
|
|
|
|
13,676
|
|
|
|
13,522
|
|
Communications
|
|
|
3,686
|
|
|
|
3,693
|
|
|
|
3,462
|
|
|
|
3,506
|
|
|
|
3,374
|
|
|
|
10,841
|
|
|
|
9,499
|
|
Other real estate
expense
|
|
|
153
|
|
|
|
(464)
|
|
|
|
58
|
|
|
|
154
|
|
|
|
198
|
|
|
|
(253)
|
|
|
|
607
|
|
Net gain on sale or
write-down of other
real estate
|
|
|
(734)
|
|
|
|
(33)
|
|
|
|
(13)
|
|
|
|
(63)
|
|
|
|
(213)
|
|
|
|
(780)
|
|
|
|
(820)
|
|
Merger related
expenses
|
|
|
1,104
|
|
|
|
12,891
|
|
|
|
860
|
|
|
|
272
|
|
|
|
—
|
|
|
|
14,855
|
|
|
|
—
|
|
Other noninterest
expense
|
|
|
12,326
|
|
|
|
12,859
|
|
|
|
11,464
|
|
|
|
12,290
|
|
|
|
11,529
|
|
|
|
36,649
|
|
|
|
34,578
|
|
Total noninterest
expense
|
|
|
135,657
|
|
|
|
145,870
|
|
|
|
123,000
|
|
|
|
119,244
|
|
|
|
122,214
|
|
|
|
404,527
|
|
|
|
364,942
|
|
Income before income
taxes
|
|
|
142,610
|
|
|
|
111,737
|
|
|
|
158,733
|
|
|
|
174,617
|
|
|
|
173,153
|
|
|
|
413,080
|
|
|
|
491,556
|
|
Provision for income
taxes
|
|
|
30,402
|
|
|
|
24,799
|
|
|
|
34,039
|
|
|
|
36,737
|
|
|
|
37,333
|
|
|
|
89,240
|
|
|
|
104,920
|
|
Net income available to
common
shareholders
|
|
$
|
112,208
|
|
|
$
|
86,938
|
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
323,840
|
|
|
$
|
386,636
|
|
(C)
|
Interest income on
securities was reduced by net premium amortization of $6,897,
$7,131, $7,384, $8,703 and $9,947 for the three months ended
September 30, 2023, June 30, 2023, March 31, 2023, December 31,
2022 and September 30, 2022, respectively, and $21,412 and $34,254
for the nine months ended September 30, 2023 and 2022,
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
|
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Sep 30,
2023
|
|
|
Sep 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(D) (E)
|
|
$
|
112,208
|
|
|
$
|
86,938
|
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
323,840
|
|
|
$
|
386,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.20
|
|
|
$
|
0.94
|
|
|
$
|
1.37
|
|
|
$
|
1.51
|
|
|
$
|
1.49
|
|
|
$
|
3.50
|
|
|
$
|
4.22
|
|
Diluted earnings per
share
|
|
$
|
1.20
|
|
|
$
|
0.94
|
|
|
$
|
1.37
|
|
|
$
|
1.51
|
|
|
$
|
1.49
|
|
|
$
|
3.50
|
|
|
$
|
4.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (F)
|
|
|
1.13
|
%
|
(J)
|
|
0.89
|
%
|
(J)
|
|
1.31
|
%
|
(J)
|
|
1.47
|
%
|
(J)
|
|
1.45
|
%
|
|
|
1.11
|
%
|
(J)
|
|
1.37
|
%
|
Return on average
common equity (F)
|
|
|
6.39
|
%
|
(J)
|
|
5.01
|
%
|
(J)
|
|
7.38
|
%
|
(J)
|
|
8.26
|
%
|
(J)
|
|
8.24
|
%
|
|
|
6.25
|
%
|
(J)
|
|
7.88
|
%
|
Return on average
tangible common
equity (F) (G)
|
|
|
12.58
|
%
|
(J)
|
|
9.67
|
%
|
(J)
|
|
14.34
|
%
|
(J)
|
|
16.26
|
%
|
(J)
|
|
16.44
|
%
|
|
|
12.17
|
%
|
(J)
|
|
15.83
|
%
|
Tax equivalent net
interest margin (D)
(E) (H)
|
|
|
2.72
|
%
|
|
|
2.73
|
%
|
|
|
2.93
|
%
|
|
|
3.05
|
%
|
|
|
3.11
|
%
|
|
|
2.79
|
%
|
|
|
2.99
|
%
|
Efficiency ratio
(G) (I)
|
|
|
48.74
|
%
|
(K)
|
|
53.21
|
%
|
(K)
|
|
43.68
|
%
|
(K)
|
|
40.87
|
%
|
(K)
|
|
41.38
|
%
|
|
|
48.50
|
%
|
(K)
|
|
42.70
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
|
17.90
|
%
|
|
|
17.46
|
%
|
|
|
17.81
|
%
|
|
|
17.78
|
%
|
|
|
17.47
|
%
|
|
|
17.90
|
%
|
|
|
17.47
|
%
|
Common equity tier 1
capital
|
|
|
14.98
|
%
|
|
|
14.49
|
%
|
|
|
15.59
|
%
|
|
|
15.88
|
%
|
|
|
15.44
|
%
|
|
|
14.98
|
%
|
|
|
15.44
|
%
|
Tier 1 risk-based
capital
|
|
|
14.98
|
%
|
|
|
14.49
|
%
|
|
|
15.59
|
%
|
|
|
15.88
|
%
|
|
|
15.44
|
%
|
|
|
14.98
|
%
|
|
|
15.44
|
%
|
Total risk-based
capital
|
|
|
16.05
|
%
|
|
|
15.52
|
%
|
|
|
16.41
|
%
|
|
|
16.51
|
%
|
|
|
16.09
|
%
|
|
|
16.05
|
%
|
|
|
16.09
|
%
|
Tier 1 leverage
capital
|
|
|
10.03
|
%
|
|
|
9.96
|
%
|
|
|
10.06
|
%
|
|
|
10.16
|
%
|
|
|
9.94
|
%
|
|
|
10.03
|
%
|
|
|
9.94
|
%
|
Period end tangible
equity to period
end tangible assets (G)
|
|
|
9.96
|
%
|
|
|
9.64
|
%
|
|
|
10.01
|
%
|
|
|
9.93
|
%
|
|
|
9.62
|
%
|
|
|
9.96
|
%
|
|
|
9.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in
computing earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
93,720
|
|
|
|
92,930
|
|
|
|
91,207
|
|
|
|
91,287
|
|
|
|
91,209
|
|
|
|
92,628
|
|
|
|
91,710
|
|
Diluted
|
|
|
93,720
|
|
|
|
92,930
|
|
|
|
91,207
|
|
|
|
91,287
|
|
|
|
91,209
|
|
|
|
92,628
|
|
|
|
91,710
|
|
Period end shares
outstanding
|
|
|
93,717
|
|
|
|
93,721
|
|
|
|
90,693
|
|
|
|
91,314
|
|
|
|
91,210
|
|
|
|
93,717
|
|
|
|
91,210
|
|
Cash dividends paid per
common share
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
0.52
|
|
|
$
|
1.65
|
|
|
$
|
1.56
|
|
Book value per common
share
|
|
$
|
75.04
|
|
|
$
|
74.35
|
|
|
$
|
74.31
|
|
|
$
|
73.37
|
|
|
$
|
72.49
|
|
|
$
|
75.04
|
|
|
$
|
72.49
|
|
Tangible book value per
common
share (G)
|
|
$
|
38.08
|
|
|
$
|
37.49
|
|
|
$
|
38.13
|
|
|
$
|
37.41
|
|
|
$
|
36.47
|
|
|
$
|
38.08
|
|
|
$
|
36.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
63.65
|
|
|
$
|
63.13
|
|
|
$
|
78.76
|
|
|
$
|
76.32
|
|
|
$
|
77.93
|
|
|
$
|
78.76
|
|
|
$
|
80.46
|
|
Low
|
|
$
|
52.62
|
|
|
$
|
55.12
|
|
|
$
|
58.25
|
|
|
$
|
66.71
|
|
|
$
|
65.37
|
|
|
$
|
52.62
|
|
|
$
|
64.69
|
|
Period end closing
price
|
|
$
|
54.58
|
|
|
$
|
56.48
|
|
|
$
|
61.52
|
|
|
$
|
72.68
|
|
|
$
|
66.68
|
|
|
$
|
54.58
|
|
|
$
|
66.68
|
|
Employees – FTE
(excluding
overtime)
|
|
|
3,853
|
|
|
|
3,710
|
|
|
|
3,651
|
|
|
|
3,633
|
|
|
|
3,592
|
|
|
|
3,853
|
|
|
|
3,592
|
|
Number of banking
centers
|
|
|
285
|
|
|
|
286
|
|
|
|
272
|
|
|
|
272
|
|
|
|
272
|
|
|
|
285
|
|
|
|
272
|
|
(D) Includes
purchase accounting adjustments for the periods presented as
follows:
|
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Sep 30,
2023
|
|
Sep 30,
2022
|
Loan discount
accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-PCD
|
$1,508
|
|
$1,242
|
|
$532
|
|
$603
|
|
$912
|
|
$3,282
|
|
$5,321
|
PCD
|
$767
|
|
$1,178
|
|
$339
|
|
$310
|
|
$322
|
|
$2,284
|
|
$1,167
|
Securities net
accretion
(amortization)
|
$626
|
|
$426
|
|
$(2)
|
|
$(12)
|
|
$(40)
|
|
$1,050
|
|
$(104)
|
Time deposits
amortization
|
$(210)
|
|
$(187)
|
|
$(53)
|
|
$(59)
|
|
$(68)
|
|
$(450)
|
|
$(252)
|
(E)
|
Using effective tax
rate of 21.3%, 22.2%, 21.4%, 21.0% and 21.6% for the three months
ended September 30, 2023, June 30, 2023, March 31, 2023, December
31, 2022 and September 30, 2022, respectively, and 21.6% and 21.3%
for the nine months ended September 30, 2023 and 2022,
respectively.
|
(F)
|
Interim periods
annualized.
|
(G)
|
Refer to the "Notes
to Selected Financial Data" at the end of this Earnings Release for
a reconciliation of this non-GAAP financial measure to the nearest
GAAP financial measure.
|
(H)
|
Net interest margin
for all periods presented is based on average balances on an actual
365-day basis.
|
(I)
|
Calculated by
dividing total noninterest expense, excluding credit loss
provisions, by net interest income plus noninterest income,
excluding net gains and losses on the sale or write down of assets
and securities. Additionally, taxes are not part of this
calculation.
|
(J)
|
For calculations of
the annualized returns on average assets, average common equity and
average tangible common equity excluding merger related provision
for credit losses, net of tax, and merger related expenses, net of
tax, refer to the "Notes to Selected Financial Data" at the end of
this Earnings Release for a reconciliation of this non-GAAP
financial measure to the nearest GAAP financial
measure.
|
(K)
|
For calculations of
the efficiency ratio excluding merger related provision for credit
losses, net of tax, and merger related expenses, net of tax,
refer to the "Notes to Selected Financial Data" at the end of this
Earnings Release for a reconciliation of this non-GAAP financial
measure to the nearest GAAP financial measure.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
YIELD
ANALYSIS
|
|
Three Months
Ended
|
|
|
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
|
Sep 30,
2022
|
|
|
|
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
(L)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(L)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(L)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
9,832
|
|
|
$
|
162
|
|
|
6.54 %
|
|
$
|
3,910
|
|
|
$
|
67
|
|
|
6.87 %
|
|
|
$
|
4,136
|
|
|
$
|
57
|
|
|
5.47 %
|
|
|
Loans held for
investment
|
|
|
20,496,075
|
|
|
|
290,566
|
|
|
5.62 %
|
|
|
19,802,751
|
|
|
|
270,688
|
|
|
5.48 %
|
|
|
|
17,275,866
|
|
|
|
199,417
|
|
|
4.58 %
|
|
|
Loans held for
investment -
Warehouse Purchase Program
|
|
|
972,936
|
|
|
|
17,950
|
|
|
7.32 %
|
|
|
898,768
|
|
|
|
15,883
|
|
|
7.09 %
|
|
|
|
938,589
|
|
|
|
10,794
|
|
|
4.56 %
|
|
|
Total loans
|
|
|
21,478,843
|
|
|
|
308,678
|
|
|
5.70 %
|
|
|
20,705,429
|
|
|
|
286,638
|
|
|
5.55 %
|
|
|
|
18,218,591
|
|
|
|
210,268
|
|
|
4.58 %
|
|
|
Investment
securities
|
|
|
13,512,137
|
|
|
|
69,987
|
|
|
2.05 %
|
(M)
|
|
13,976,818
|
|
|
|
72,053
|
|
|
2.07 %
|
|
(M)
|
|
14,962,847
|
|
|
|
68,761
|
|
|
1.82 %
|
|
(M)
|
Federal funds sold and
other
earning assets
|
|
|
125,690
|
|
|
|
1,689
|
|
|
5.33 %
|
|
|
150,300
|
|
|
|
1,757
|
|
|
4.69 %
|
|
|
|
87,859
|
|
|
|
525
|
|
|
2.37 %
|
|
|
Total interest-earning
assets
|
|
|
35,116,670
|
|
|
|
380,354
|
|
|
4.30 %
|
|
|
34,832,547
|
|
|
|
360,448
|
|
|
4.15 %
|
|
|
|
33,269,297
|
|
|
|
279,554
|
|
|
3.33 %
|
|
|
Allowance for credit
losses on
loans
|
|
|
(343,967)
|
|
|
|
|
|
|
|
|
(283,594)
|
|
|
|
|
|
|
|
|
|
(283,244)
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,829,336
|
|
|
|
|
|
|
|
|
4,738,673
|
|
|
|
|
|
|
|
|
|
4,480,512
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
39,602,039
|
|
|
|
|
|
|
|
$
|
39,287,626
|
|
|
|
|
|
|
|
|
$
|
37,466,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand
deposits
|
|
$
|
4,768,485
|
|
|
$
|
5,182
|
|
|
0.43 %
|
|
$
|
5,147,453
|
|
|
$
|
3,791
|
|
|
0.30 %
|
|
|
$
|
6,155,511
|
|
|
$
|
2,345
|
|
|
0.15 %
|
|
|
Savings and money
market
deposits
|
|
|
8,977,824
|
|
|
|
44,446
|
|
|
1.96 %
|
|
|
9,156,047
|
|
|
|
43,025
|
|
|
1.88 %
|
|
|
|
10,172,986
|
|
|
|
9,479
|
|
|
0.37 %
|
|
|
Certificates and other
time
deposits
|
|
|
3,172,178
|
|
|
|
26,441
|
|
|
3.31 %
|
|
|
2,652,064
|
|
|
|
17,148
|
|
|
2.59 %
|
|
|
|
2,185,529
|
|
|
|
2,845
|
|
|
0.52 %
|
|
|
Other
borrowings
|
|
|
4,671,449
|
|
|
|
62,190
|
|
|
5.28 %
|
|
|
4,427,914
|
|
|
|
57,351
|
|
|
5.20 %
|
|
|
|
577,828
|
|
|
|
3,719
|
|
|
2.55 %
|
|
|
Securities sold
under
repurchase agreements
|
|
|
389,149
|
|
|
|
2,533
|
|
|
2.58 %
|
|
|
441,303
|
|
|
|
2,674
|
|
|
2.43 %
|
|
|
|
473,584
|
|
|
|
487
|
|
|
0.41 %
|
|
|
Subordinated
debentures
|
|
|
2,578
|
|
|
|
38
|
|
|
5.85 %
|
|
|
1,547
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total
interest-bearing
liabilities
|
|
|
21,981,663
|
|
|
|
140,830
|
|
|
2.54 %
|
(N)
|
|
21,826,328
|
|
|
|
123,989
|
|
|
2.28 %
|
|
(N)
|
|
19,565,438
|
|
|
|
18,875
|
|
|
0.38 %
|
|
(N)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand
deposits
|
|
|
10,269,162
|
|
|
|
|
|
|
|
|
10,274,819
|
|
|
|
|
|
|
|
|
|
11,048,856
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on
off-balance sheet credit
exposures
|
|
|
36,504
|
|
|
|
|
|
|
|
|
30,022
|
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
290,217
|
|
|
|
|
|
|
|
|
220,775
|
|
|
|
|
|
|
|
|
|
231,812
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
32,577,546
|
|
|
|
|
|
|
|
|
32,351,944
|
|
|
|
|
|
|
|
|
|
30,876,053
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
7,024,493
|
|
|
|
|
|
|
|
|
6,935,682
|
|
|
|
|
|
|
|
|
|
6,590,512
|
|
|
|
|
|
|
|
|
Total liabilities
and
shareholders' equity
|
|
$
|
39,602,039
|
|
|
|
|
|
|
|
$
|
39,287,626
|
|
|
|
|
|
|
|
|
$
|
37,466,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin
|
|
|
|
|
$
|
239,524
|
|
|
2.71 %
|
|
|
|
|
$
|
236,459
|
|
|
2.72 %
|
|
|
|
|
|
$
|
260,679
|
|
|
3.11 %
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
1,000
|
|
|
|
|
|
|
|
|
854
|
|
|
|
|
|
|
|
|
|
458
|
|
|
|
|
|
Net interest income and
margin
(tax equivalent basis)
|
|
|
|
|
$
|
240,524
|
|
|
2.72 %
|
|
|
|
|
$
|
237,313
|
|
|
2.73 %
|
|
|
|
|
|
$
|
261,137
|
|
|
3.11 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(L)
|
Annualized and based
on an actual 365-day basis.
|
(M)
|
Yield on securities
was impacted by net premium amortization of $6,897, $7,131 and
$9,947 for the three months ended September 30, 2023, June 30, 2023
and September 30, 2022, respectively.
|
(N)
|
Total cost of funds,
including noninterest bearing deposits, was 1.73%, 1.55% and
0.24% for the three months ended September 30, 2023, June 30, 2023
and September 30, 2022, respectively.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
YIELD
ANALYSIS
|
|
Year-to-Date
|
|
|
|
|
Sep 30,
2023
|
|
Sep 30,
2022
|
|
|
|
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
(O)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(O)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
5,389
|
|
|
$
|
267
|
|
|
6.62 %
|
|
$
|
3,980
|
|
|
$
|
137
|
|
|
4.60 %
|
|
|
Loans held for
investment
|
|
|
19,546,826
|
|
|
|
797,861
|
|
|
5.46 %
|
|
|
16,931,422
|
|
|
|
564,736
|
|
|
4.46 %
|
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
831,143
|
|
|
|
44,306
|
|
|
7.13 %
|
|
|
1,153,762
|
|
|
|
31,190
|
|
|
3.61 %
|
|
|
Total loans
|
|
|
20,383,358
|
|
|
|
842,434
|
|
|
5.53 %
|
|
|
18,089,164
|
|
|
|
596,063
|
|
|
4.41 %
|
|
|
Investment
securities
|
|
|
13,937,483
|
|
|
|
215,225
|
|
|
2.06 %
|
(P)
|
|
14,579,521
|
|
|
|
187,883
|
|
|
1.72 %
|
|
(P)
|
Federal funds sold and
other earning assets
|
|
|
290,275
|
|
|
|
10,452
|
|
|
4.81 %
|
|
|
913,923
|
|
|
|
2,297
|
|
|
0.34 %
|
|
|
Total interest-earning
assets
|
|
|
34,611,116
|
|
|
|
1,068,111
|
|
|
4.13 %
|
|
|
33,582,608
|
|
|
|
786,243
|
|
|
3.13 %
|
|
|
Allowance for credit
losses on loans
|
|
|
(303,518)
|
|
|
|
|
|
|
|
|
(284,486)
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,722,064
|
|
|
|
|
|
|
|
|
4,462,318
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
39,029,662
|
|
|
|
|
|
|
|
$
|
37,760,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
5,260,463
|
|
|
$
|
12,765
|
|
|
0.32 %
|
|
$
|
6,453,810
|
|
|
$
|
6,951
|
|
|
0.14 %
|
|
|
Savings and money
market deposits
|
|
|
9,235,646
|
|
|
|
122,992
|
|
|
1.78 %
|
|
|
10,579,351
|
|
|
|
17,978
|
|
|
0.23 %
|
|
|
Certificates and other
time deposits
|
|
|
2,627,402
|
|
|
|
51,619
|
|
|
2.63 %
|
|
|
2,409,251
|
|
|
|
7,135
|
|
|
0.40 %
|
|
|
Other
borrowings
|
|
|
4,001,994
|
|
|
|
153,937
|
|
|
5.14 %
|
|
|
232,253
|
|
|
|
4,169
|
|
|
2.40 %
|
|
|
Securities sold under
repurchase agreements
|
|
|
419,304
|
|
|
|
7,310
|
|
|
2.33 %
|
|
|
462,994
|
|
|
|
916
|
|
|
0.26 %
|
|
|
Subordinated
debentures
|
|
|
1,375
|
|
|
|
38
|
|
|
3.69 %
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total interest-bearing
liabilities
|
|
|
21,546,184
|
|
|
|
348,661
|
|
|
2.16 %
|
(Q)
|
|
20,137,659
|
|
|
|
37,149
|
|
|
0.25 %
|
|
(Q)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
10,310,878
|
|
|
|
|
|
|
|
|
10,848,605
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on off-balance sheet credit
exposures
|
|
|
32,181
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
232,903
|
|
|
|
|
|
|
|
|
198,196
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
32,122,146
|
|
|
|
|
|
|
|
|
31,214,407
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
6,907,516
|
|
|
|
|
|
|
|
|
6,546,033
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
|
39,029,662
|
|
|
|
|
|
|
|
$
|
37,760,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin
|
|
|
|
|
$
|
719,450
|
|
|
2.78 %
|
|
|
|
|
$
|
749,094
|
|
|
2.98 %
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
2,866
|
|
|
|
|
|
|
|
|
1,375
|
|
|
|
|
|
Net interest income and
margin (tax equivalent basis)
|
|
|
|
|
$
|
722,316
|
|
|
2.79 %
|
|
|
|
|
$
|
750,469
|
|
|
2.99 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(O)
|
Annualized and based
on an actual 365-day basis.
|
(P)
|
Yield on securities
was impacted by net premium amortization of $21,412 and $34,254 for
the nine months ended September 30, 2023 and 2022,
respectively.
|
(Q)
|
Total cost of funds,
including noninterest bearing deposits, was 1.46% and 0.16% for the
nine months ended September 30, 2023 and 2022,
respectively.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
YIELD TREND
(R)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
6.54
|
%
|
|
|
6.87
|
%
|
|
|
6.58
|
%
|
|
|
6.09
|
%
|
|
|
5.47
|
%
|
Loans held for
investment
|
|
5.62
|
%
|
|
|
5.48
|
%
|
|
|
5.24
|
%
|
|
|
4.98
|
%
|
|
|
4.58
|
%
|
Loans held for
investment - Warehouse
Purchase Program
|
|
7.32
|
%
|
|
|
7.09
|
%
|
|
|
6.88
|
%
|
|
|
6.02
|
%
|
|
|
4.56
|
%
|
Total loans
|
|
5.70
|
%
|
|
|
5.55
|
%
|
|
|
5.29
|
%
|
|
|
5.02
|
%
|
|
|
4.58
|
%
|
Investment securities
(S)
|
|
2.05
|
%
|
|
|
2.07
|
%
|
|
|
2.07
|
%
|
|
|
1.96
|
%
|
|
|
1.82
|
%
|
Federal funds sold and
other earning assets
|
|
5.33
|
%
|
|
|
4.69
|
%
|
|
|
4.74
|
%
|
|
|
3.63
|
%
|
|
|
2.37
|
%
|
Total interest-earning
assets
|
|
4.30
|
%
|
|
|
4.15
|
%
|
|
|
3.92
|
%
|
|
|
3.67
|
%
|
|
|
3.33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
0.43
|
%
|
|
|
0.30
|
%
|
|
|
0.26
|
%
|
|
|
0.22
|
%
|
|
|
0.15
|
%
|
Savings and money
market deposits
|
|
1.96
|
%
|
|
|
1.88
|
%
|
|
|
1.50
|
%
|
|
|
1.13
|
%
|
|
|
0.37
|
%
|
Certificates and other
time deposits
|
|
3.31
|
%
|
|
|
2.59
|
%
|
|
|
1.59
|
%
|
|
|
0.94
|
%
|
|
|
0.52
|
%
|
Other
borrowings
|
|
5.28
|
%
|
|
|
5.20
|
%
|
|
|
4.83
|
%
|
|
|
3.97
|
%
|
|
|
2.55
|
%
|
Securities sold under
repurchase agreements
|
|
2.58
|
%
|
|
|
2.43
|
%
|
|
|
1.99
|
%
|
|
|
1.55
|
%
|
|
|
0.41
|
%
|
Subordinated
debentures
|
|
5.85
|
%
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total interest-bearing
liabilities
|
|
2.54
|
%
|
|
|
2.28
|
%
|
|
|
1.63
|
%
|
|
|
1.06
|
%
|
|
|
0.38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
|
2.71
|
%
|
|
|
2.72
|
%
|
|
|
2.92
|
%
|
|
|
3.04
|
%
|
|
|
3.11
|
%
|
Net Interest Margin
(tax equivalent)
|
|
2.72
|
%
|
|
|
2.73
|
%
|
|
|
2.93
|
%
|
|
|
3.05
|
%
|
|
|
3.11
|
%
|
(R)
|
Annualized and based
on average balances on an actual 365-day basis.
|
(S)
|
Yield on securities
was impacted by net premium amortization of $6,897, $7,131, $7,384,
$8,703 and $9,947 for the three months ended September 30, 2023,
June 30, 2023, March 31, 2023, December 31, 2022 and September 30,
2022, respectively.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
Three Months
Ended
|
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
Balance Sheet
Averages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
9,832
|
|
|
$
|
3,910
|
|
|
$
|
2,343
|
|
|
$
|
1,758
|
|
|
$
|
4,136
|
|
Loans held for
investment
|
|
|
20,496,075
|
|
|
|
19,802,751
|
|
|
|
18,317,712
|
|
|
|
17,818,769
|
|
|
|
17,275,866
|
|
Loans held for
investment - Warehouse Purchase
Program
|
|
|
972,936
|
|
|
|
898,768
|
|
|
|
617,822
|
|
|
|
747,007
|
|
|
|
938,589
|
|
Total Loans
|
|
|
21,478,843
|
|
|
|
20,705,429
|
|
|
|
18,937,877
|
|
|
|
18,567,534
|
|
|
|
18,218,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
|
13,512,137
|
|
|
|
13,976,818
|
|
|
|
14,332,509
|
|
|
|
14,715,516
|
|
|
|
14,962,847
|
|
Federal funds sold and
other earning assets
|
|
|
125,690
|
|
|
|
150,300
|
|
|
|
600,048
|
|
|
|
101,986
|
|
|
|
87,859
|
|
Total interest-earning
assets
|
|
|
35,116,670
|
|
|
|
34,832,547
|
|
|
|
33,870,434
|
|
|
|
33,385,036
|
|
|
|
33,269,297
|
|
Allowance for credit
losses on loans
|
|
|
(343,967)
|
|
|
|
(283,594)
|
|
|
|
(282,316)
|
|
|
|
(282,546)
|
|
|
|
(283,244)
|
|
Cash and due from
banks
|
|
|
301,201
|
|
|
|
281,593
|
|
|
|
319,960
|
|
|
|
306,235
|
|
|
|
302,479
|
|
Goodwill
|
|
|
3,387,293
|
|
|
|
3,291,659
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
Core deposit
intangibles, net
|
|
|
69,551
|
|
|
|
48,616
|
|
|
|
50,208
|
|
|
|
52,591
|
|
|
|
55,158
|
|
Other real
estate
|
|
|
6,301
|
|
|
|
2,712
|
|
|
|
2,083
|
|
|
|
2,075
|
|
|
|
1,652
|
|
Fixed assets,
net
|
|
|
367,814
|
|
|
|
357,593
|
|
|
|
342,380
|
|
|
|
338,572
|
|
|
|
336,657
|
|
Other assets
|
|
|
697,176
|
|
|
|
756,500
|
|
|
|
643,467
|
|
|
|
584,302
|
|
|
|
552,929
|
|
Total
assets
|
|
$
|
39,602,039
|
|
|
$
|
39,287,626
|
|
|
$
|
38,177,853
|
|
|
$
|
37,617,902
|
|
|
$
|
37,466,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
10,269,162
|
|
|
$
|
10,274,819
|
|
|
$
|
10,389,980
|
|
|
$
|
11,064,714
|
|
|
$
|
11,048,856
|
|
Interest-bearing demand
deposits
|
|
|
4,768,485
|
|
|
|
5,147,453
|
|
|
|
5,877,641
|
|
|
|
5,843,672
|
|
|
|
6,155,511
|
|
Savings and money
market deposits
|
|
|
8,977,824
|
|
|
|
9,156,047
|
|
|
|
9,579,679
|
|
|
|
9,805,024
|
|
|
|
10,172,986
|
|
Certificates and other
time deposits
|
|
|
3,172,178
|
|
|
|
2,652,064
|
|
|
|
2,045,580
|
|
|
|
2,066,085
|
|
|
|
2,185,529
|
|
Total
deposits
|
|
|
27,187,649
|
|
|
|
27,230,383
|
|
|
|
27,892,880
|
|
|
|
28,779,495
|
|
|
|
29,562,882
|
|
Other
borrowings
|
|
|
4,671,449
|
|
|
|
4,427,914
|
|
|
|
2,887,011
|
|
|
|
1,465,533
|
|
|
|
577,828
|
|
Securities sold under
repurchase agreements
|
|
|
389,149
|
|
|
|
441,303
|
|
|
|
427,887
|
|
|
|
441,405
|
|
|
|
473,584
|
|
Subordinated
debentures
|
|
|
2,578
|
|
|
|
1,547
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Allowance for credit
losses on off-balance sheet
credit exposures
|
|
|
36,504
|
|
|
|
30,022
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
Other
liabilities
|
|
|
290,217
|
|
|
|
220,775
|
|
|
|
180,685
|
|
|
|
224,512
|
|
|
|
231,812
|
|
Shareholders'
equity
|
|
|
7,024,493
|
|
|
|
6,935,682
|
|
|
|
6,759,443
|
|
|
|
6,677,010
|
|
|
|
6,590,512
|
|
Total liabilities and
equity
|
|
$
|
39,602,039
|
|
|
$
|
39,287,626
|
|
|
$
|
38,177,853
|
|
|
$
|
37,617,902
|
|
|
$
|
37,466,565
|
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
Period End
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
$2,153,391
|
10.1 %
|
|
$2,245,620
|
10.5 %
|
|
$2,074,078
|
10.7 %
|
|
$2,165,263
|
11.6 %
|
|
$2,197,033
|
11.9 %
|
Warehouse purchase
program
|
|
912,327
|
4.3 %
|
|
1,148,883
|
5.3 %
|
|
799,115
|
4.1 %
|
|
740,620
|
3.9 %
|
|
922,764
|
5.0 %
|
Construction, land
development and other land loans
|
|
3,200,479
|
14.9 %
|
|
3,215,016
|
14.8 %
|
|
2,899,980
|
15.0 %
|
|
2,805,438
|
14.9 %
|
|
2,659,552
|
14.4 %
|
1-4 family
residential
|
|
7,032,593
|
32.8 %
|
|
6,780,813
|
31.3 %
|
|
6,055,532
|
31.3 %
|
|
5,774,814
|
30.6 %
|
|
5,447,993
|
29.4 %
|
Home equity
|
|
969,498
|
4.5 %
|
|
977,070
|
4.5 %
|
|
959,124
|
5.0 %
|
|
966,410
|
5.1 %
|
|
943,197
|
5.1 %
|
Commercial real estate
(includes multi-family
residential)
|
|
5,606,837
|
26.2 %
|
|
5,676,526
|
26.2 %
|
|
5,133,693
|
26.6 %
|
|
4,986,211
|
26.5 %
|
|
4,966,243
|
26.8 %
|
Agriculture (includes
farmland)
|
|
801,933
|
3.7 %
|
|
804,376
|
3.7 %
|
|
721,395
|
3.7 %
|
|
688,033
|
3.6 %
|
|
670,603
|
3.6 %
|
Consumer and
other
|
|
306,018
|
1.4 %
|
|
305,207
|
1.4 %
|
|
288,300
|
1.5 %
|
|
283,559
|
1.5 %
|
|
288,834
|
1.6 %
|
Energy
|
|
449,637
|
2.1 %
|
|
500,435
|
2.3 %
|
|
403,142
|
2.1 %
|
|
429,479
|
2.3 %
|
|
410,069
|
2.2 %
|
Total loans
|
|
$21,432,713
|
|
|
$21,653,946
|
|
|
$19,334,359
|
|
|
$18,839,827
|
|
|
$18,506,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
DDA
|
|
$10,281,893
|
37.6 %
|
|
$10,364,921
|
37.9 %
|
|
$10,108,348
|
37.4 %
|
|
$10,915,448
|
38.2 %
|
|
$11,154,143
|
38.1 %
|
Interest-bearing
DDA
|
|
4,797,259
|
17.6 %
|
|
4,953,090
|
18.1 %
|
|
5,332,086
|
19.8 %
|
|
5,986,203
|
21.0 %
|
|
6,027,157
|
20.6 %
|
Money market
|
|
5,892,505
|
21.6 %
|
|
5,904,160
|
21.5 %
|
|
6,021,449
|
22.3 %
|
|
6,164,025
|
21.6 %
|
|
6,438,787
|
22.0 %
|
Savings
|
|
3,005,936
|
11.0 %
|
|
3,179,351
|
11.6 %
|
|
3,304,482
|
12.2 %
|
|
3,471,970
|
12.2 %
|
|
3,563,776
|
12.1 %
|
Certificates and other
time deposits
|
|
3,335,207
|
12.2 %
|
|
2,979,364
|
10.9 %
|
|
2,237,871
|
8.3 %
|
|
1,995,885
|
7.0 %
|
|
2,116,232
|
7.2 %
|
Total
deposits
|
|
$27,312,800
|
|
|
$27,380,886
|
|
|
$27,004,236
|
|
|
$28,533,531
|
|
|
$29,300,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
|
78.5 %
|
|
|
79.1 %
|
|
|
71.6 %
|
|
|
66.0 %
|
|
|
63.2 %
|
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
Construction
Loans
|
|
|
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family
residential
construction
|
|
$
|
1,157,016
|
|
|
36.1
|
%
|
|
$
|
1,244,631
|
|
|
38.7
|
%
|
|
$
|
1,179,883
|
|
|
40.7
|
%
|
|
$
|
1,097,176
|
|
|
39.1
|
%
|
|
$
|
1,004,000
|
|
|
37.8
|
%
|
Land
development
|
|
|
359,518
|
|
|
11.2
|
%
|
|
|
310,199
|
|
|
9.7
|
%
|
|
|
222,511
|
|
|
7.7
|
%
|
|
|
181,747
|
|
|
6.5
|
%
|
|
|
145,303
|
|
|
5.5
|
%
|
Raw land
|
|
|
340,659
|
|
|
10.7
|
%
|
|
|
359,228
|
|
|
11.2
|
%
|
|
|
326,168
|
|
|
11.2
|
%
|
|
|
332,603
|
|
|
11.9
|
%
|
|
|
343,066
|
|
|
12.9
|
%
|
Residential
lots
|
|
|
216,659
|
|
|
6.8
|
%
|
|
|
216,706
|
|
|
6.7
|
%
|
|
|
226,600
|
|
|
7.8
|
%
|
|
|
243,942
|
|
|
8.7
|
%
|
|
|
237,714
|
|
|
8.9
|
%
|
Commercial
lots
|
|
|
154,425
|
|
|
4.8
|
%
|
|
|
158,278
|
|
|
4.9
|
%
|
|
|
167,151
|
|
|
5.8
|
%
|
|
|
177,378
|
|
|
6.3
|
%
|
|
|
181,679
|
|
|
6.8
|
%
|
Commercial construction
and
other
|
|
|
973,022
|
|
|
30.4
|
%
|
|
|
927,025
|
|
|
28.8
|
%
|
|
|
777,678
|
|
|
26.8
|
%
|
|
|
772,606
|
|
|
27.5
|
%
|
|
|
747,803
|
|
|
28.1
|
%
|
Net unaccreted
discount
|
|
|
(820)
|
|
|
|
|
|
(1,051)
|
|
|
|
|
|
(11)
|
|
|
|
|
|
(14)
|
|
|
|
|
|
(13)
|
|
|
|
Total construction
loans
|
|
$
|
3,200,479
|
|
|
|
|
$
|
3,215,016
|
|
|
|
|
$
|
2,899,980
|
|
|
|
|
$
|
2,805,438
|
|
|
|
|
$
|
2,659,552
|
|
|
|
Non-Owner Occupied
Commercial Real Estate Loans by Metropolitan Statistical Area (MSA)
as of September 30, 2023
|
|
|
|
|
|
|
Houston
|
|
|
Dallas
|
|
|
Austin
|
|
|
OK
City
|
|
|
Tulsa
|
|
|
Other
(T)
|
|
|
Total
|
|
|
Collateral
Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopping
center/retail
|
$
|
361,709
|
|
|
$
|
292,848
|
|
|
$
|
58,698
|
|
|
$
|
15,726
|
|
|
$
|
18,395
|
|
|
$
|
308,878
|
|
|
$
|
1,056,254
|
|
|
Commercial and
industrial
buildings
|
|
167,443
|
|
|
|
107,883
|
|
|
|
28,842
|
|
|
|
31,577
|
|
|
|
18,603
|
|
|
|
277,084
|
|
|
|
631,432
|
|
|
Office
buildings
|
|
84,275
|
|
|
|
225,240
|
|
|
|
27,842
|
|
|
|
50,338
|
|
|
|
4,025
|
|
|
|
99,204
|
|
|
|
490,924
|
|
|
Medical
buildings
|
|
76,022
|
|
|
|
17,303
|
|
|
|
1,797
|
|
|
|
44,259
|
|
|
|
34,377
|
|
|
|
53,835
|
|
|
|
227,593
|
|
|
Apartment
buildings
|
|
140,523
|
|
|
|
128,758
|
|
|
|
17,143
|
|
|
|
13,649
|
|
|
|
8,436
|
|
|
|
165,892
|
|
|
|
474,401
|
|
|
Hotel
|
|
113,176
|
|
|
|
87,973
|
|
|
|
36,371
|
|
|
|
18,535
|
|
|
|
—
|
|
|
|
169,185
|
|
|
|
425,240
|
|
|
Other
|
|
89,175
|
|
|
|
68,161
|
|
|
|
43,088
|
|
|
|
9,104
|
|
|
|
1,737
|
|
|
|
78,827
|
|
|
|
290,092
|
|
|
Total
|
$
|
1,032,323
|
|
|
$
|
928,166
|
|
|
$
|
213,781
|
|
|
$
|
183,188
|
|
|
$
|
85,573
|
|
|
$
|
1,152,905
|
|
|
$
|
3,595,936
|
|
(U)
|
Acquired
Loans
|
|
|
|
|
Non-PCD
Loans
|
|
|
PCD
Loans
|
|
|
Total Acquired
Loans
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Jun 30,
2023
|
|
|
Balance at
Sept 30,
2023
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Jun 30,
2023
|
|
|
Balance at
Sept 30,
2023
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Jun 30,
2023
|
|
|
Balance at
Sept 30,
2023
|
|
Loan
marks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(V)
|
$
|
345,599
|
|
|
$
|
1,208
|
|
|
$
|
871
|
|
|
$
|
320,052
|
|
|
$
|
2,776
|
|
|
$
|
2,685
|
|
|
$
|
665,651
|
|
|
$
|
3,984
|
|
|
$
|
3,556
|
|
FirstCapital Bank
(W)
|
|
22,648
|
|
|
|
21,844
|
|
|
|
20,672
|
|
|
|
7,790
|
|
|
|
7,334
|
|
|
|
6,658
|
|
|
|
30,438
|
|
|
|
29,178
|
|
|
|
27,330
|
|
Total
|
|
368,247
|
|
|
|
23,052
|
|
|
|
21,543
|
|
|
|
327,842
|
|
|
|
10,110
|
|
|
|
9,343
|
|
|
|
696,089
|
|
|
|
33,162
|
|
|
|
30,886
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan
balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(V)
|
|
12,286,159
|
|
|
|
1,174,855
|
|
|
|
1,104,770
|
|
|
|
689,573
|
|
|
|
61,484
|
|
|
|
62,053
|
|
|
|
12,975,731
|
|
|
|
1,236,339
|
|
|
|
1,166,823
|
|
FirstCapital Bank
(W)
|
|
1,021,694
|
|
|
|
953,646
|
|
|
|
855,052
|
|
|
|
627,991
|
|
|
|
599,865
|
|
|
|
558,271
|
|
|
|
1,649,685
|
|
|
|
1,553,511
|
|
|
|
1,413,323
|
|
Total
|
|
13,307,853
|
|
|
|
2,128,501
|
|
|
|
1,959,822
|
|
|
|
1,317,564
|
|
|
|
661,349
|
|
|
|
620,324
|
|
|
|
14,625,416
|
|
(X)
|
|
2,789,850
|
|
|
|
2,580,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan
balances less loan marks
|
$
|
12,939,606
|
|
|
$
|
2,105,449
|
|
|
$
|
1,938,279
|
|
|
$
|
989,722
|
|
|
$
|
651,239
|
|
|
$
|
610,981
|
|
|
$
|
13,929,327
|
|
|
$
|
2,756,688
|
|
|
$
|
2,549,260
|
|
(T)
|
Includes other MSA
and non-MSA regions.
|
(U)
|
Represents a portion
of total commercial real estate loans of $5.607 billion as of
September 30, 2023.
|
(V)
|
Includes Bank
Arlington, American State Bank, Community National Bank, First
Federal Bank Texas, Coppermark Bank, First Victoria National
Bank, The F&M Bank & Trust Company, Tradition Bank and
LegacyTexas Bank.
|
(W)
|
FirstCapital Bank
merger was completed on May 1, 2023. The Merger resulted in the
addition of $1.650 billion in loans with related purchase
accounting adjustments of $30.4 million at acquisition date,
which were subject to subsequent fair value
adjustments.
|
(X)
|
Actual principal
balances acquired.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Sep 30,
2023
|
|
|
Sep 30,
2022
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
|
59,729
|
|
|
$
|
57,723
|
|
|
$
|
22,496
|
|
|
$
|
19,614
|
|
|
$
|
17,729
|
|
|
$
|
59,729
|
|
|
$
|
17,729
|
|
Accruing loans 90 or
more days past due
|
|
397
|
|
|
|
1,744
|
|
|
|
-
|
|
|
|
5,917
|
|
|
|
378
|
|
|
|
397
|
|
|
|
378
|
|
Total nonperforming
loans
|
|
60,126
|
|
|
|
59,467
|
|
|
|
22,496
|
|
|
|
25,531
|
|
|
|
18,107
|
|
|
|
60,126
|
|
|
|
18,107
|
|
Repossessed
assets
|
|
35
|
|
|
|
153
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13
|
|
|
|
35
|
|
|
|
13
|
|
Other real
estate
|
|
9,320
|
|
|
|
3,107
|
|
|
|
1,989
|
|
|
|
1,963
|
|
|
|
1,758
|
|
|
|
9,320
|
|
|
|
1,758
|
|
Total nonperforming
assets
|
$
|
69,481
|
|
|
$
|
62,727
|
|
|
$
|
24,485
|
|
|
$
|
27,494
|
|
|
$
|
19,878
|
|
|
$
|
69,481
|
|
|
$
|
19,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
22,219
|
|
|
$
|
24,027
|
|
|
$
|
2,832
|
|
|
$
|
3,921
|
|
|
$
|
2,376
|
|
|
$
|
22,219
|
|
|
$
|
2,376
|
|
Construction, land
development and other
land loans
|
|
8,684
|
|
|
|
4,245
|
|
|
|
3,210
|
|
|
|
6,166
|
|
|
|
1,712
|
|
|
|
8,684
|
|
|
|
1,712
|
|
1-4 family residential
(includes home equity)
|
|
23,708
|
|
|
|
19,609
|
|
|
|
16,951
|
|
|
|
15,326
|
|
|
|
13,986
|
|
|
|
23,708
|
|
|
|
13,986
|
|
Commercial real estate
(includes multi-
family residential)
|
|
13,341
|
|
|
|
13,504
|
|
|
|
1,051
|
|
|
|
1,649
|
|
|
|
1,364
|
|
|
|
13,341
|
|
|
|
1,364
|
|
Agriculture (includes
farmland)
|
|
1,511
|
|
|
|
1,284
|
|
|
|
432
|
|
|
|
421
|
|
|
|
434
|
|
|
|
1,511
|
|
|
|
434
|
|
Consumer and
other
|
|
18
|
|
|
|
58
|
|
|
|
9
|
|
|
|
11
|
|
|
|
6
|
|
|
|
18
|
|
|
|
6
|
|
Total
|
$
|
69,481
|
|
|
$
|
62,727
|
|
|
$
|
24,485
|
|
|
$
|
27,494
|
|
|
$
|
19,878
|
|
|
$
|
69,481
|
|
|
$
|
19,878
|
|
Number of
loans/properties
|
|
260
|
|
|
|
241
|
|
|
|
190
|
|
|
|
170
|
|
|
|
150
|
|
|
|
260
|
|
|
|
150
|
|
Allowance for credit
losses on loans
|
$
|
351,495
|
|
|
$
|
345,209
|
|
|
$
|
282,191
|
|
|
$
|
281,576
|
|
|
$
|
282,179
|
|
|
$
|
351,495
|
|
|
$
|
282,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
1,594
|
|
|
$
|
160
|
|
|
$
|
(1,472)
|
|
|
$
|
(643)
|
|
|
$
|
(15)
|
|
|
$
|
282
|
|
|
$
|
(198)
|
|
Construction, land
development and other land
loans
|
|
(5)
|
|
|
|
50
|
|
|
|
(13)
|
|
|
|
(5)
|
|
|
|
(4)
|
|
|
|
32
|
|
|
|
421
|
|
1-4 family residential
(includes home equity)
|
|
(78)
|
|
|
|
(70)
|
|
|
|
(140)
|
|
|
|
(55)
|
|
|
|
(202)
|
|
|
|
(288)
|
|
|
|
(147)
|
|
Commercial real estate
(includes multi-
family residential)
|
|
570
|
|
|
|
14,957
|
|
|
|
(1)
|
|
|
|
74
|
|
|
|
757
|
|
|
|
15,526
|
|
|
|
786
|
|
Agriculture (includes
farmland)
|
|
—
|
|
|
|
(78)
|
|
|
|
(6)
|
|
|
|
(14)
|
|
|
|
119
|
|
|
|
(84)
|
|
|
|
7
|
|
Consumer and
other
|
|
1,327
|
|
|
|
1,046
|
|
|
|
1,017
|
|
|
|
1,246
|
|
|
|
1,125
|
|
|
|
3,390
|
|
|
|
3,332
|
|
Total
|
$
|
3,408
|
|
|
$
|
16,065
|
|
|
$
|
(615)
|
|
|
$
|
603
|
|
|
$
|
1,780
|
|
|
$
|
18,858
|
|
|
$
|
4,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
average interest-
earning assets
|
|
0.20
|
%
|
|
|
0.18
|
%
|
|
|
0.07
|
%
|
|
|
0.08
|
%
|
|
|
0.06
|
%
|
|
|
0.20
|
%
|
|
|
0.06
|
%
|
Nonperforming assets to
loans and other real
estate
|
|
0.32
|
%
|
|
|
0.29
|
%
|
|
|
0.13
|
%
|
|
|
0.15
|
%
|
|
|
0.11
|
%
|
|
|
0.32
|
%
|
|
|
0.11
|
%
|
Net charge-offs to
average loans (annualized)
|
|
0.06
|
%
|
|
|
0.31
|
%
|
|
|
-0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.04
|
%
|
|
|
0.12
|
%
|
|
|
0.03
|
%
|
Allowance for credit
losses on loans to total
loans
|
|
1.64
|
%
|
|
|
1.59
|
%
|
|
|
1.46
|
%
|
|
|
1.49
|
%
|
|
|
1.52
|
%
|
|
|
1.64
|
%
|
|
|
1.52
|
%
|
Allowance for credit
losses on loans to total
loans, excluding Warehouse Purchase Program
loans (G)
|
|
1.71
|
%
|
|
|
1.68
|
%
|
|
|
1.52
|
%
|
|
|
1.56
|
%
|
|
|
1.60
|
%
|
|
|
1.71
|
%
|
|
|
1.61
|
%
|
Prosperity Bancshares,
Inc.®
Notes to Selected Financial Data
(Unaudited)
(Dollars and share amounts in thousands, except
per share data)
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 return on average
assets excluding merger related provision for credit losses, net of
tax, and merger related expenses, net of tax; return on average
common equity excluding merger related provision for credit losses,
net of tax, and merger related expenses, net of tax; return on
average tangible common equity; return on average tangible common
equity excluding merger related provision for credit losses, net of
tax, and merger related expenses, net of tax; tangible book value
per share; the tangible equity to tangible assets ratio; allowance
for credit losses to total loans excluding Warehouse Purchase
Program loans; the efficiency ratio, excluding net gains and losses
on the sale or write down of assets and securities; and the
efficiency ratio, excluding net gains and losses on the sale or
write down of assets and securities and merger related expenses,
for internal planning and forecasting purposes. In addition, due to
the application of purchase accounting, Prosperity uses certain
non-GAAP financial measures and ratios that exclude the impact of
these items to evaluate its allowance for credit losses to total
loans (excluding Warehouse Purchase Program loans). Prosperity has
included information below relating to these non-GAAP financial
measures for the applicable periods presented.
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Sep 30,
2023
|
|
|
Sep 30,
2022
|
|
Reconciliation of
return on average assets to return
on average assets
excluding merger related provision for
credit losses, net of tax, and merger related expenses,
net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (unadjusted)
|
|
|
1.13 %
|
|
|
|
0.89 %
|
|
|
|
1.31 %
|
|
|
|
1.47 %
|
|
|
|
1.45 %
|
|
|
|
1.11 %
|
|
|
|
1.37 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
112,208
|
|
|
$
|
86,938
|
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
323,840
|
|
|
$
|
386,636
|
|
Merger related
provision for credit losses, net of
tax(Y)
|
|
|
—
|
|
|
|
14,647
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14,647
|
|
|
|
—
|
|
Merger related
expenses, net of tax(Y)
|
|
|
872
|
|
|
|
10,184
|
|
|
|
679
|
|
|
|
215
|
|
|
|
—
|
|
|
|
11,735
|
|
|
|
—
|
|
Net income excluding
merger related provision for
credit losses, net of tax, and merger related expenses,
net of tax(Y):
|
|
$
|
113,080
|
|
|
$
|
111,769
|
|
|
$
|
125,373
|
|
|
$
|
138,095
|
|
|
$
|
135,820
|
|
|
$
|
350,222
|
|
|
$
|
386,636
|
|
Average total
assets
|
|
$
|
39,602,039
|
|
|
$
|
39,287,626
|
|
|
$
|
38,177,853
|
|
|
$
|
37,617,902
|
|
|
$
|
37,466,565
|
|
|
$
|
39,029,662
|
|
|
$
|
37,760,440
|
|
Return on average
assets excluding merger related
provision for credit losses, net of tax, and merger
related expenses, net of tax (F) (Y)
|
|
|
1.14
|
%
|
|
|
1.14
|
%
|
|
|
1.31
|
%
|
|
|
1.47
|
%
|
|
|
1.45
|
%
|
|
|
1.20
|
%
|
|
|
1.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
return on average common equity
to return on average common equity excluding
merger related provision for credit losses, net of
tax, and merger related expenses, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (unadjusted)
|
|
|
6.39
|
%
|
|
|
5.01
|
%
|
|
|
7.38
|
%
|
|
|
8.26
|
%
|
|
|
8.24
|
%
|
|
|
6.25
|
%
|
|
|
7.88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
merger related provision for
credit losses, net of tax, and merger related expenses,
net of tax(Y)
|
|
$
|
113,080
|
|
|
$
|
111,769
|
|
|
$
|
125,373
|
|
|
$
|
138,095
|
|
|
$
|
135,820
|
|
|
$
|
350,222
|
|
|
$
|
386,636
|
|
Average shareholders'
equity
|
|
$
|
7,024,493
|
|
|
$
|
6,935,682
|
|
|
$
|
6,759,443
|
|
|
$
|
6,677,010
|
|
|
$
|
6,590,512
|
|
|
$
|
6,907,516
|
|
|
$
|
6,546,033
|
|
Return on average
common equity excluding merger
related provision for credit losses, net of tax, and
merger related expenses, net of tax (F)
(Y)
|
|
|
6.44
|
%
|
|
|
6.45
|
%
|
|
|
7.42
|
%
|
|
|
8.27
|
%
|
|
|
8.24
|
%
|
|
|
6.76
|
%
|
|
|
7.88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
return on average common equity
to return on average tangible common equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
112,208
|
|
|
$
|
86,938
|
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
323,840
|
|
|
$
|
386,636
|
|
Average shareholders'
equity
|
|
$
|
7,024,493
|
|
|
$
|
6,935,682
|
|
|
$
|
6,759,443
|
|
|
$
|
6,677,010
|
|
|
$
|
6,590,512
|
|
|
$
|
6,907,516
|
|
|
$
|
6,546,033
|
|
Less: Average goodwill
and other intangible assets
|
|
|
(3,456,844)
|
|
|
|
(3,340,275)
|
|
|
|
(3,281,845)
|
|
|
|
(3,284,228)
|
|
|
|
(3,286,795)
|
|
|
|
(3,360,296)
|
|
|
|
(3,289,362)
|
|
Average tangible
shareholders' equity
|
|
$
|
3,567,649
|
|
|
$
|
3,595,407
|
|
|
$
|
3,477,598
|
|
|
$
|
3,392,782
|
|
|
$
|
3,303,717
|
|
|
$
|
3,547,220
|
|
|
$
|
3,256,671
|
|
Return on average
tangible common equity (F)
|
|
|
12.58
|
%
|
|
|
9.67
|
%
|
|
|
14.34
|
%
|
|
|
16.26
|
%
|
|
|
16.44
|
%
|
|
|
12.17
|
%
|
|
|
15.83
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Y) Calculated
assuming a federal tax rate of 21.0%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Sep 30,
2022
|
|
|
Sep 30,
2022
|
|
Reconciliation of
return on average common equity
to return on average tangible common equity
excluding merger related provision for credit losses,
net of tax, and merger related expenses, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
merger related provision for
credit losses, net of tax, and merger related expenses,
net of tax(Y)
|
|
$
|
113,080
|
|
|
$
|
111,769
|
|
|
$
|
125,373
|
|
|
$
|
138,095
|
|
|
$
|
135,820
|
|
|
$
|
350,222
|
|
|
$
|
386,636
|
|
Average shareholders'
equity
|
|
$
|
7,024,493
|
|
|
$
|
6,935,682
|
|
|
$
|
6,759,443
|
|
|
$
|
6,677,010
|
|
|
$
|
6,590,512
|
|
|
$
|
6,907,516
|
|
|
$
|
6,546,033
|
|
Less: Average goodwill
and other intangible assets
|
|
|
(3,456,844)
|
|
|
|
(3,340,275)
|
|
|
|
(3,281,845)
|
|
|
|
(3,284,228)
|
|
|
|
(3,286,795)
|
|
|
|
(3,360,296)
|
|
|
|
(3,289,362)
|
|
Average tangible
shareholders' equity
|
|
$
|
3,567,649
|
|
|
$
|
3,595,407
|
|
|
$
|
3,477,598
|
|
|
$
|
3,392,782
|
|
|
$
|
3,303,717
|
|
|
$
|
3,547,220
|
|
|
$
|
3,256,671
|
|
Return on average
tangible common equity excluding
merger related provision for credit losses, net of tax,
and merger related expenses, net of tax (F)
(Y)
|
|
|
12.68
|
%
|
|
|
12.43
|
%
|
|
|
14.42
|
%
|
|
|
16.28
|
%
|
|
|
16.44
|
%
|
|
|
13.16
|
%
|
|
|
15.83
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
book value per share to tangible
book value per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
7,032,677
|
|
|
$
|
6,968,116
|
|
|
$
|
6,739,117
|
|
|
$
|
6,699,374
|
|
|
$
|
6,611,642
|
|
|
$
|
7,032,677
|
|
|
$
|
6,611,642
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,464,012)
|
|
|
|
(3,454,826)
|
|
|
|
(3,280,610)
|
|
|
|
(3,282,984)
|
|
|
|
(3,285,542)
|
|
|
|
(3,464,012)
|
|
|
|
(3,285,541)
|
|
Tangible shareholders'
equity
|
|
$
|
3,568,665
|
|
|
$
|
3,513,290
|
|
|
$
|
3,458,507
|
|
|
$
|
3,416,390
|
|
|
$
|
3,326,100
|
|
|
$
|
3,568,665
|
|
|
$
|
3,326,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
|
|
93,717
|
|
|
|
93,721
|
|
|
|
90,693
|
|
|
|
91,314
|
|
|
|
91,210
|
|
|
|
93,717
|
|
|
|
91,210
|
|
Tangible book value per
share
|
|
$
|
38.08
|
|
|
$
|
37.49
|
|
|
$
|
38.13
|
|
|
$
|
37.41
|
|
|
$
|
36.47
|
|
|
$
|
38.08
|
|
|
$
|
36.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
equity to assets ratio to period end
tangible equity to period end tangible assets ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible shareholders'
equity
|
|
$
|
3,568,665
|
|
|
$
|
3,513,290
|
|
|
$
|
3,458,507
|
|
|
$
|
3,416,390
|
|
|
$
|
3,326,100
|
|
|
$
|
3,568,665
|
|
|
$
|
3,326,101
|
|
Total assets
|
|
$
|
39,295,684
|
|
|
$
|
39,905,131
|
|
|
$
|
37,829,232
|
|
|
$
|
37,689,829
|
|
|
$
|
37,843,502
|
|
|
$
|
39,295,684
|
|
|
$
|
37,843,502
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,464,012)
|
|
|
|
(3,454,826)
|
|
|
|
(3,280,610)
|
|
|
|
(3,282,984)
|
|
|
|
(3,285,542)
|
|
|
|
(3,464,012)
|
|
|
|
(3,285,541)
|
|
Tangible
assets
|
|
$
|
35,831,672
|
|
|
$
|
36,450,305
|
|
|
$
|
34,548,622
|
|
|
$
|
34,406,845
|
|
|
$
|
34,557,960
|
|
|
$
|
35,831,672
|
|
|
$
|
34,557,961
|
|
Period end tangible
equity to period end tangible assets
ratio
|
|
|
9.96
|
%
|
|
|
9.64
|
%
|
|
|
10.01
|
%
|
|
|
9.93
|
%
|
|
|
9.62
|
%
|
|
|
9.96
|
%
|
|
|
9.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
allowance for credit losses to total
loans to allowance for credit losses on loans to total
loans excluding Warehouse Purchase Program:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans
|
|
$
|
351,495
|
|
|
$
|
345,209
|
|
|
$
|
282,191
|
|
|
$
|
281,576
|
|
|
$
|
282,179
|
|
|
$
|
351,495
|
|
|
$
|
282,179
|
|
Total loans
|
|
$
|
21,432,713
|
|
|
$
|
21,653,946
|
|
|
$
|
19,334,359
|
|
|
$
|
18,839,827
|
|
|
$
|
18,506,288
|
|
|
$
|
21,432,713
|
|
|
$
|
18,506,288
|
|
Less: Warehouse
Purchase Program loans
|
|
|
(912,327)
|
|
|
|
(1,148,883)
|
|
|
|
(799,115)
|
|
|
|
(740,620)
|
|
|
|
(922,764)
|
|
|
|
(912,327)
|
|
|
|
(922,764)
|
|
Total loans less
Warehouse Purchase Program
|
|
$
|
20,520,386
|
|
|
$
|
20,505,063
|
|
|
$
|
18,535,244
|
|
|
$
|
18,099,207
|
|
|
$
|
17,583,524
|
|
|
$
|
20,520,386
|
|
|
$
|
17,583,524
|
|
Allowance for credit
losses on loans to total loans
excluding Warehouse Purchase Program
|
|
|
1.71
|
%
|
|
|
1.68
|
%
|
|
|
1.52
|
%
|
|
|
1.56
|
%
|
|
|
1.60
|
%
|
|
|
1.71
|
%
|
|
|
1.60
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
efficiency ratio to efficiency ratio
excluding net gains and losses on the sale or write
down of assets and securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
135,657
|
|
|
$
|
145,870
|
|
|
$
|
123,000
|
|
|
$
|
119,244
|
|
|
$
|
122,214
|
|
|
$
|
404,527
|
|
|
$
|
364,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
239,524
|
|
|
$
|
236,459
|
|
|
$
|
243,467
|
|
|
$
|
256,137
|
|
|
$
|
260,679
|
|
|
$
|
719,450
|
|
|
$
|
749,094
|
|
Noninterest
income
|
|
|
38,743
|
|
|
|
39,688
|
|
|
|
38,266
|
|
|
|
37,724
|
|
|
|
34,688
|
|
|
|
116,697
|
|
|
|
107,404
|
|
Less: net (loss) gain
on sale or write down of assets
|
|
|
(45)
|
|
|
|
1,994
|
|
|
|
121
|
|
|
|
2,087
|
|
|
|
50
|
|
|
|
2,070
|
|
|
|
1,847
|
|
Noninterest income
excluding net gains and losses on
the sale or write down of assets and securities
|
|
|
38,788
|
|
|
|
37,694
|
|
|
|
38,145
|
|
|
|
35,637
|
|
|
|
34,638
|
|
|
|
114,627
|
|
|
|
105,557
|
|
Total income excluding
net gains and losses on the
sale or write down of assets and securities
|
|
$
|
278,312
|
|
|
$
|
274,153
|
|
|
$
|
281,612
|
|
|
$
|
291,774
|
|
|
$
|
295,317
|
|
|
$
|
834,077
|
|
|
$
|
854,651
|
|
Efficiency ratio,
excluding net gains and losses on the
sale or write down of assets and securities
|
|
|
48.74
|
%
|
|
|
53.21
|
%
|
|
|
43.68
|
%
|
|
|
40.87
|
%
|
|
|
41.38
|
%
|
|
|
48.50
|
%
|
|
|
42.70
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Sep 30,
2023
|
|
|
Sep 30,
2022
|
|
Reconciliation of
efficiency ratio to efficiency ratio,
excluding net gains and losses on the sale or write
down of assets and securities and merger related
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
135,657
|
|
|
$
|
145,870
|
|
|
$
|
123,000
|
|
|
$
|
119,244
|
|
|
$
|
122,214
|
|
|
$
|
404,527
|
|
|
$
|
364,942
|
|
Less: merger related
expenses
|
|
|
1,104
|
|
|
|
12,891
|
|
|
|
860
|
|
|
|
272
|
|
|
|
—
|
|
|
|
14,855
|
|
|
|
—
|
|
Noninterest expense
excluding merger related expenses
|
|
$
|
134,553
|
|
|
$
|
132,979
|
|
|
$
|
122,140
|
|
|
$
|
118,972
|
|
|
$
|
122,214
|
|
|
$
|
389,672
|
|
|
$
|
364,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
239,524
|
|
|
$
|
236,459
|
|
|
$
|
243,467
|
|
|
$
|
256,137
|
|
|
$
|
260,679
|
|
|
$
|
719,450
|
|
|
$
|
749,094
|
|
Noninterest
income
|
|
|
38,743
|
|
|
|
39,688
|
|
|
|
38,266
|
|
|
|
37,724
|
|
|
|
34,688
|
|
|
|
116,697
|
|
|
|
107,404
|
|
Less: net (loss) gain
on sale or write down of assets
|
|
|
(45)
|
|
|
|
1,994
|
|
|
|
121
|
|
|
|
2,087
|
|
|
|
50
|
|
|
|
2,070
|
|
|
|
1,847
|
|
Noninterest income
excluding net gains and losses on
the sale or write down of assets and securities
|
|
|
38,788
|
|
|
|
37,694
|
|
|
|
38,145
|
|
|
|
35,637
|
|
|
|
34,638
|
|
|
|
114,627
|
|
|
|
105,557
|
|
Total income excluding
net gains and losses on the
sale or write down of assets and securities
|
|
$
|
278,312
|
|
|
$
|
274,153
|
|
|
$
|
281,612
|
|
|
$
|
291,774
|
|
|
$
|
295,317
|
|
|
$
|
834,077
|
|
|
$
|
854,651
|
|
Efficiency ratio,
excluding net gains and losses on the
sale or write down of assets and securities and merger
related expenses
|
|
|
48.35
|
%
|
|
|
48.51
|
%
|
|
|
43.37
|
%
|
|
|
40.78
|
%
|
|
|
41.38
|
%
|
|
|
46.72
|
%
|
|
|
42.70
|
%
|
View original content to download
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SOURCE Prosperity Bancshares, Inc.