- Completed the merger of Lone Star State Bancshares, Inc. on
April 1, 2024
- Net income of $111.6 million
and diluted earnings per share of $1.17 for second quarter 2024
- Net income of $116.6
million(1) and diluted earnings per share of
$1.22(1), excluding merger
related provision and expenses, gain on Visa Class B-1 stock
exchange net of investment securities sales and FDIC special
assessment
- Net interest margin increased 15 basis points to 2.94%
during second quarter 2024
- Loans increased $1.06 billion
or 5.0% during second quarter 2024
- Loans, excluding Warehouse Purchase Program loans, increased
$839.1 million or 4.1% during second
quarter 2024
- Deposits increased $757.6
million or 2.8% during second quarter 2024
- Noninterest-bearing deposits of $9.7
billion, representing 34.7% of total deposits
- Allowance for credit losses on loans and on off-balance
sheet credit exposure of $397.5
million and allowance for credit losses on loans to total
loans, excluding Warehouse Purchase Program, of
1.69%(1)
- Nonperforming assets remain low at 0.25% of second quarter
average interest-earning assets
- Repurchased 671 thousand shares of common stock during
second quarter 2024, and 1.2 million shares during 2024
HOUSTON, July 24,
2024 /PRNewswire/ -- Prosperity Bancshares,
Inc.® (NYSE: PB), the parent company of Prosperity
Bank® (collectively, "Prosperity"), reported net income
of $111.6 million for the quarter
ended June 30, 2024 compared with $86.9
million for the same period in 2023. Net income per diluted
common share was $1.17 for the
quarter ended June 30, 2024 compared with $0.94 for the same period in 2023. On
April 1, 2024, Lone Star State
Bancshares, Inc. ("Lone Star")
merged with Prosperity Bancshares and Lone
Star State Bank of West
Texas ("Lone Star Bank")
merged with Prosperity Bank (collectively, the "LSSB Merger").
During the second quarter 2024, Prosperity incurred a merger
related provision for credit losses of $9.1
million, or $0.07(1) per diluted common share,
merger related expenses of $4.4
million, or $0.04(1) per diluted common share, and
a Federal Deposit Insurance Corporation ("FDIC") special assessment
of $3.6 million, or $0.03(1) per diluted common share,
partially offset by a net gain of $10.7
million, or $0.09(1) per diluted common share as a
result of the exchange and conversion of Visa Class B-1 stock and
the sale of investment securities. Excluding these charges and the
net gain, earnings per diluted common share was $1.22(1) for the second quarter of
2024. Additionally, loans, excluding Warehouse Purchase Program
loans, increased $839.1 million or
4.1% during the second quarter of 2024, primarily due to the
Merger.
The annualized return on second quarter average assets was
1.12%; and the annualized return on second quarter average assets
excluding merger related provision and expenses, net of tax, gain
on Visa Class B-1 stock exchange net of investment securities
sales, net of tax, and FDIC special assessment, net of tax, was
1.17%(1). Nonperforming assets remain low at 0.25% of
second quarter average interest-earning assets.
"We want to welcome the customers and associates from
Lone Star State Bank of West Texas and are excited about our
partnership. As previously announced, on April 1, 2024, Prosperity completed the merger of
Lone Star State Bancshares, Inc. and its wholly owned subsidiary,
Lone Star Bank, headquartered in
Lubbock, Texas. Lone Star Bank operated 5 banking offices in the
West Texas area," said
David Zalman, Prosperity's Senior
Chairman and Chief Executive Officer.
"We are also pleased to report that our net interest income
before provision for credit losses was $258.8 million for the three months ended
June 30, 2024, compared with
$238.2 million for the three months
ended March 31, 2024, an increase of
$20.5 million or 8.6%. In
addition, our net interest margin on a tax equivalent basis was
2.94% for the three months ended June 30,
2024, compared with 2.79% for the three months ended
March 31, 2024, and 2.73% for the
same period in 2023. As mentioned on prior calls, these are the
results we expected, and we anticipate these tailwinds to continue
to be positive for the near future," added Zalman.
"We are optimistic about the future and confident in our ability
to create meaningful long-term value for our shareholders.
Over the last twelve months, we have returned $284.6 million to shareholders - $74.8 million through share repurchases and
$209.8 million through cash
dividends," stated Zalman.
"Texas continues to shine as
more people and companies move to the state because of the
business-friendly political structure and no state income tax,"
continued Zalman.
"Prosperity continues to focus on building core customer
relationships, maintaining sound asset quality and operating the
bank in an efficient manner, while investing in ever-changing
technology and product distribution channels. Thank you to
all of our customers, shareholders and associates who make this
possible," concluded Zalman.
Results of Operations for the Three Months Ended
June 30, 2024
For the three months ended June 30, 2024, net income was
$111.6 million(2) or
$1.17 per diluted common share
compared with $110.4
million(3) or $1.18
per diluted common share for the three months ended March 31,
2024. Net income and net income per diluted common share for the
second quarter of 2024 was impacted by an increase in net interest
income and a gain on Visa Class B-1 stock exchange net of
investment securities sales of $10.7
million, partially offset by a merger related provision for
credit losses of $9.1 million, merger
related expenses of $4.4 million, a FDIC special assessment of
$3.6 million and an increase in
noninterest expenses related to three months of Lone Star Bank operations. For the three months
ended June 30, 2024, net income was $111.6 million(2) or $1.17 per diluted common share compared with
$86.9 million(4) or
$0.94 per diluted common share for
the same period in 2023. Annualized returns on average
assets, average common equity and average tangible common equity
for the three months ended June 30, 2024 were 1.12%, 6.10% and
11.81%(1), respectively.
Excluding merger related provision and expenses, gain on Visa
Class B-1 stock exchange net of investment securities sales, and
FDIC special assessment, each net of tax, net income was
$116.6 million(1) or
$1.22(1) per diluted
common share for the three months ended June
30, 2024, and annualized returns on average assets, average
common equity and average tangible common equity were
1.17%(1), 6.37%(1) and 12.34%(1),
respectively, for the same period. Prosperity's efficiency ratio
(excluding net gains and losses on the sale, write-down or write-up
of assets and securities) was 51.82%(1) for the three
months ended June 30, 2024; and
excluding merger related expenses and FDIC special assessment, the
efficiency ratio was 49.13%(1).
Net interest income before provision for credit losses was
$258.8 million for the three months
ended June 30, 2024 compared with $238.2 million for the three months ended
March 31, 2024, an increase of $20.5
million or 8.6%. Net interest income before provision
for credit losses increased $22.3
million or 9.4% to $258.8
million for the three months ended June 30, 2024
compared with $236.5 million for the
same period in 2023. The change for both periods was primarily due
to an increase in the average balances and average rates on loans,
an increase in the average balances on federal funds sold and other
earning assets, an increase in loan discount accretion, and a
decrease in the average balances on other borrowings, partially
offset by a decrease in the average balances on investment
securities and an increase in the average balances and rates on
interest-bearing deposits.
The net interest margin on a tax equivalent basis was 2.94% for
the three months ended June 30, 2024 compared with 2.79% for
the three months ended March 31, 2024 and 2.73% for the same
period in 2023. The change was primarily due to an increase in the
average balances and average rates on loans, an increase in the
average balances on federal funds sold and other earning assets, an
increase in loan discount accretion, and a decrease in the average
balances on other borrowings, partially offset by a decrease in the
average balances on investment securities and an increase in the
average balances and rates on interest-bearing deposits. The
increases in the average balances on loans and deposits were
primarily due to the LSSB Merger.
Noninterest income was $46.0
million for the three months ended June 30, 2024
compared with $38.9 million for the
three months ended March 31, 2024, an increase of $7.1 million or 18.4%. Noninterest income
was $46.0 million for the three
months ended June 30, 2024 compared $39.7 million for the same period in 2023, an
increase of $6.3 million or
15.9%. The increase for both periods was primarily due to a
gain on Visa Class B-1 stock exchange net of investment securities
sales, partially offset by the change in the net (loss) gain on
sale or write-down of assets and a decrease in other noninterest
income.
Noninterest expense was $152.8
million for the three months ended June 30, 2024
compared with $135.8 million for the
three months ended March 31, 2024, an increase of $17.0 million or 12.5%, primarily due to a FDIC
special assessment of $3.6 million,
an increase in merger related expenses, an increase in salaries and
benefits and an increase in additional expenses related to three
months of Lone Star Bank operations.
Noninterest expense was $152.8
million for the three months ended June 30, 2024
compared with $145.9 million for the
same period in 2023, an increase of $7.0
million or 4.8%, primarily due to a FDIC special assessment
of $3.6 million, an increase in
salaries and benefits and an increase in additional expenses
related to three months of Lone Star
Bank operations, partially offset by a decrease in merger
expenses.
Results of Operations for the Six Months Ended June 30,
2024
For the six months ended June 30, 2024, net income was
$222.0 million(5) or
$2.34 per diluted common share
compared with $211.6
million(6) or $2.30
per diluted common share for the same period in 2023. Net income
and net income per diluted common share for the six months ended
June 30, 2024 was impacted by an
increase in net interest income, a gain on Visa Class B-1 stock
exchange net of investment securities sales of $11.0 million, lower merger related provision for
credit losses and a decrease in merger related expenses, partially
offset by a FDIC special assessment of $3.6
million and an increase in noninterest expenses related to
three months of Lone Star Bank
operations. Returns on average assets, average common equity and
average tangible common equity for the six months ended
June 30, 2024 were 1.13%, 6.15% and 11.93%(1),
respectively.
Excluding merger related provision and expenses, gain on Visa
Class B-1 stock exchange net of investment securities sales, and
FDIC special assessment, each net of tax, net income was
$226.8 million(1) or
$2.39(1) per diluted
common share for the six months ended June
30, 2024 and annualized returns on average assets, average
common equity and average tangible common equity for the same
period were 1.15%(1), 6.28%(1) and
12.19%(1), respectively. Prosperity's efficiency ratio
(excluding net gains and losses on the sale or write-down of assets
and securities) was 50.49%(1) for the six months ended
June 30, 2024; and excluding merger
related expenses and FDIC special assessment, the efficiency ratio
was 49.10%(1).
Net interest income before provision for credit losses for the
six months ended June 30, 2024 was $497.0 million compared with $479.9 million for the same period in 2023, an
increase of $17.1 million or 3.6%.
The change was primarily due to an increase in the average balances
and average rates on loans, an increase in the average balances on
federal funds sold and other earning assets and an increase in loan
discount accretion, partially offset by a decrease in the average
balances on investment securities and an increase in the average
balances and rates on interest-bearing deposits.
The net interest margin on a tax equivalent basis for the six
months ended June 30, 2024 was 2.87% compared with 2.83% for
the same period in 2023. The change was primarily due to an
increase in the average balances and average rates on loans and an
increase in the average balances on federal funds sold and other
earning assets and an increase in loan discount accretion,
partially offset by an increase in the average balances and rates
on interest-bearing deposits. The increases in the average balances
on loans and deposits were primarily due to the LSSB Merger.
Noninterest income was $84.9
million for the six months ended June 30, 2024 compared
with $78.0 million for the same
period in 2023, an increase of $6.9
million or 8.9%, primarily due to a gain on Visa Class
B-1 stock exchange net of investment securities sales and an
increase in trust income, partially offset by the change in the net
(loss) gain on sale or write-down of assets and a decrease in other
noninterest income.
Noninterest expense was $288.7
million for the six months ended June 30, 2024 compared
with $268.9 million for the same
period in 2023, an increase of $19.8
million or 7.4%, primarily due to a FDIC special assessment
of $3.6 million, an increase in
salaries and benefits and an increase in additional expenses
related to three months of Lone Star
Bank operations, partially offset by a decrease in merger
expenses.
Balance Sheet Information
At June 30, 2024, Prosperity had $39.762 billion in total assets, a decrease of
$142.8 million or 0.4%, compared with
$39.905 billion at June 30,
2023. Linked quarter total assets increased by $1.006 billion or 2.6% compared with $38.757 billion at March
31, 2024, primarily due to the LSSB Merger.
Loans were $22.321 billion at
June 30, 2024, an increase of $666.9
million or 3.1%, compared with $21.654 billion at June 30, 2023. Linked
quarter loans increased $1.056
billion or 5.0% from $21.265
billion at March 31, 2024. Loans increased primarily
due to the LSSB Merger. Loans, excluding Warehouse Purchase Program
loans, were $21.239 billion at
June 30, 2024 compared with $20.505
billion at June 30, 2023, an increase of $734.3 million or 3.6%, and compared with
$20.400 billion at
March 31, 2024, an increase of $839.1 million or 4.1%.
Deposits were $27.933 billion at
June 30, 2024, an increase of $552.2
million or 2.0%, compared with $27.381 billion at June 30, 2023. Linked
quarter deposits increased $757.6
million or 2.8% from $27.176
billion at March 31, 2024. The increases were primarily
due to the LSSB Merger.
The table below provides detail on the impact of loans acquired
and deposits assumed in the FirstCapital Bank and Lone Star Bank mergers completed on May 1, 2023 and April 1,
2024, respectively:
Balance Sheet Data
(at period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
2024
|
|
|
Mar 31,
2024
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Loans acquired
(including new production since acquisition date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FirstCapital
Bank
|
|
$
|
1,209,936
|
|
|
$
|
1,302,582
|
|
|
$
|
1,376,356
|
|
|
$
|
1,494,378
|
|
|
$
|
1,590,137
|
|
Lone Star
Bank
|
|
|
1,084,559
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Prosperity
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warehouse Purchase
Program loans
|
|
|
1,081,403
|
|
|
|
864,924
|
|
|
|
822,245
|
|
|
|
912,327
|
|
|
|
1,148,883
|
|
All other
loans
|
|
|
18,944,917
|
|
|
|
19,097,741
|
|
|
|
18,981,937
|
|
|
|
19,026,008
|
|
|
|
18,914,926
|
|
Total loans
|
|
$
|
22,320,815
|
|
|
$
|
21,265,247
|
|
|
$
|
21,180,538
|
|
|
$
|
21,432,713
|
|
|
$
|
21,653,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits assumed
(including new deposits since acquisition date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FirstCapital
Bank
|
|
$
|
1,317,130
|
|
|
$
|
1,449,166
|
|
|
$
|
1,517,217
|
|
|
$
|
1,625,691
|
|
|
$
|
1,481,831
|
|
Lone Star
Bank
|
|
|
1,187,821
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
All other
deposits
|
|
|
25,428,135
|
|
|
|
25,726,352
|
|
|
|
25,662,592
|
|
|
|
25,687,109
|
|
|
|
25,899,055
|
|
Total
deposits
|
|
$
|
27,933,086
|
|
|
$
|
27,175,518
|
|
|
$
|
27,179,809
|
|
|
$
|
27,312,800
|
|
|
$
|
27,380,886
|
|
As reflected in the table above, loan and deposit growth was
impacted by the FirstCapital Bank and Lone
Star Bank mergers.
Excluding loans acquired in these acquisitions and new
production at the acquired banking centers since the respective
acquisition dates, loans at June 30,
2024 decreased $37.5 million
compared with June 30, 2023 and
increased $63.7 million compared with
March 31, 2024. Excluding loans
acquired in these acquisitions and new production at the acquired
banking centers since the respective acquisition dates and
Warehouse Purchase Program loans, loans at June 30, 2024 increased $30.0 million compared with June 30, 2023 and decreased $152.8 million compared with March 31, 2024.
Excluding deposits assumed in these acquisitions and new
deposits generated at the acquired banking centers since the
respective acquisition dates, deposits at June 30, 2024
decreased by $470.9 million or 1.8%
compared with June 30, 2023 and decreased by $298.2 million or 1.2% compared with
March 31, 2024.
Asset Quality
Nonperforming assets totaled $89.6
million or 0.25% of quarterly average interest-earning
assets at June 30, 2024 compared with
$83.8 million or 0.24% of quarterly
average interest-earning assets at March 31,
2024 and $62.7 million or
0.18% of quarterly average interest-earning assets at June 30, 2023, with a significant portion of the
balance for each period attributable to acquired loans.
The allowance for credit losses on loans and off-balance sheet
credit exposures was $397.5 million
at June 30, 2024 compared with
$381.7 million at June 30, 2023 and $366.7
million at March 31, 2024. The
provision for credit losses was $9.1
million for the six months ended June
30, 2024 compared with an $18.5
million provision for credit losses for the six months ended
June 30, 2023 and no provision for
credit losses for the three months ended March 31, 2024 and 2023. As a result of the loans
acquired in the LSSB Merger, the second quarter of 2024 included a
$7.9 million provision for credit
losses on loans and a $1.2 million provision for credit losses on
off-balance sheet credit exposures.
The allowance for credit losses on loans was $359.9 million or 1.61% of total loans at
June 30, 2024 compared with $345.2
million or 1.59% of total loans at June 30, 2023 and
$330.2 million or 1.55% of total
loans at March 31, 2024. Excluding Warehouse Purchase Program
loans, the allowance for credit losses on loans to total loans was
1.69%(1) at June 30, 2024 compared with
1.68%(1) at June 30, 2023 and 1.62%(1)
at March 31, 2024.
Net charge-offs were $4.4 million
for the three months ended June 30, 2024 compared with net
charge-offs of $2.1 million for the
three months ended March 31, 2024 and net charge-offs of
$16.1 million for the three months
ended June 30, 2023. Net charge-offs for the second quarter of
2024 included $878 thousand related
to resolved purchased credit deteriorated ("PCD") loans, which had
specific reserves that were allocated to the charge-offs.
Additionally, reserves on PCD loans increased by $26.1 million due to Day One accounting for PCD
loans at the time of the LSSB Merger. Further, $4.8 million of reserves on resolved PCD loans
without any related charge-offs was released to the general
reserve.
Net charge-offs were $6.5 million
for the six months ended June 30, 2024 compared with
$15.5 million for the six months
ended June 30, 2023. Net charge-offs for the six months ended
June 30, 2024 included $1.9
million related to resolved PCD loans, which had specific
reserves that were allocated to the charge-offs. Additionally,
reserves on PCD loans increased by $26.1
million due to Day One accounting for PCD loans at the time
of the LSSB Merger. Further, $8.9
million of reserves on resolved PCD loans was released to
the general reserve.
Visa Class B-1 Stock Exchange
During the second quarter 2024, Prosperity tendered all of its
shares of Visa, Inc. ("Visa") Class B-1 common stock in exchange
for a combination of Visa Class B-2 common stock and Visa Class C
common stock, pursuant to the terms and subject to the conditions
of the public offering of Visa to exchange its Class B-1 common
stock for a combination of shares of its Class B-2 common stock and
Class C common stock, which expired on May
3, 2024. Prosperity recorded an unrealized gain of
$20.6 million during the second
quarter 2024 based on the conversion privilege of the Class C
common stock and the closing price of Visa Class A common stock.
In the exchange, Prosperity received 48,492 shares of Class
B-2 stock, recorded at zero cost basis, and 19,245 shares of Class
C common stock and subsequently sold 6,415 shares of Class C stock.
Prosperity intends to sell all remaining shares of Class C
stock as permitted by the exchange agreement.
Dividend
Prosperity Bancshares declared a third quarter 2024 cash
dividend of $0.56 per share to be
paid on October 1, 2024, to all
shareholders of record as of September 13,
2024.
Stock Repurchase Program
On January 16, 2024, Prosperity
Bancshares announced a stock repurchase program under which up to
5%, or approximately 4.7 million shares, of its outstanding
common stock may be acquired over a one-year period expiring on
January 16, 2025, at the discretion
of management. Under its 2024 stock repurchase program, Prosperity
Bancshares repurchased approximately 671 thousand shares of its
common stock at an average weighted price of $58.86 per share during the three months ended
June 30, 2024 and approximately
1.2 million shares of its common stock at an average weighted
price of $60.35 per share during the
six months ended June 30, 2024.
Merger of Lone Star State Bancshares, Inc.
On April 1, 2024, Prosperity
completed the merger of Lone Star
and its wholly owned subsidiary Lone Star
Bank, headquartered in Lubbock,
Texas. Lone Star Bank
operated 5 full-service 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.
Pursuant to the terms of the definitive agreement, Prosperity
issued 2,376,182 shares of Prosperity common stock plus
approximately $64.1 million in cash
for all outstanding shares of Lone
Star in the second quarter of 2024. This resulted in
goodwill of $107.7 million as of
June 30, 2024, which does not include
all the subsequent fair value adjustments that have not yet been
finalized. Additionally, Prosperity recognized $17.7 million of core deposit intangibles as of
June 30, 2024.
Merger of First Bancshares of Texas, Inc.
On May 1, 2023, Prosperity
completed the merger (the "FB Merger") of First Bancshares and
its wholly owned subsidiary FirstCapital Bank of Texas, N.A. ("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
June 30, 2024, which was subject to
all final subsequent fair value adjustments. During the second
quarter of 2023, Prosperity completed the operational conversion of
FirstCapital Bank.
Conference Call
Prosperity's management team will host a conference call on
Wednesday, July 24, 2024, at
11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's
second quarter 2024 earnings. Individuals and investment
professionals may participate in the call by dialing 877-883-0383
for domestic participants, or 412-902-6506 for international
participants. The participant elite entry number is 8564977.
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, for internal planning
and forecasting purposes, Prosperity reviews each of diluted
earnings per share, return on average assets, return on average
common equity, and return on average tangible common equity, in
each case excluding merger related provision for credit losses, net
of tax, merger related expenses, net of tax, FDIC special
assessment, net of tax, and net gain on the sale or write-up of
securities, net of tax; return on average tangible common equity;
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, write-down or write-up of assets
and securities; and the efficiency ratio, excluding net gains and
losses on the sale, write-down or write-up of assets and
securities, merger related expenses, and FDIC special assessment.
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 June 30, 2024, Prosperity Bancshares,
Inc.® is a $39.762 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 288 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; 31 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; 15 in the Bryan/College
Station area; 6 in the Central
Oklahoma area; 8 in the Tulsa,
Oklahoma area and 5 in the West
Texas area currently doing business as Lone Star Bank.
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 credit 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 credit 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, 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 any 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; 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 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, 2023,
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 $6.1 million, net of tax, primarily
comprised of loan discount accretion of $7.2 million, merger
related provision for credit losses of $9.1 million, merger related
expenses of $4.4 million, FDIC special assessment of $3.6
million, and net gain on sale or write-up of securities of $10.7
million for the three months ended June 30, 2024.
|
(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 $2.0 million, net of tax, primarily
comprised of loan discount accretion of $1.9 million for the three
months ended March 31, 2024.
|
(5)
|
Includes purchase
accounting adjustments of $8.1 million, net of tax, primarily
comprised of loan discount accretion of $9.1 million, merger
related provision for credit losses of $9.1 million, merger related
expenses of $4.4 million, FDIC special assessment of $3.6
million, and net gain on sale or write-up of securities of $11.0
million for the six months ended June 30, 2024.
|
(6)
|
Includes purchase
accounting adjustments of $3.1 million, net of tax, primarily
comprised of loan discount accretion of $3.3 million, merger
related provision for credit losses of $18.5 million and merger
related expenses of $13.8 million for the six months ended June 30,
2023.
|
Bryan/College
Station Area
|
|
Grapevine
Main
|
|
Tyler-South
Broadway
|
|
Tomball
|
|
West
|
Bryan
|
|
Kiest
|
|
Tyler-University
|
|
Waller
|
|
|
Bryan-29th
Street
|
|
Lake
Highlands
|
|
Winnsboro
|
|
West
Columbia
|
|
Odessa
|
Bryan-East
|
|
McKinney
|
|
|
|
Wharton
|
|
Grandview
|
Bryan-North
|
|
McKinney
Eldorado
|
|
Houston
Area
|
|
Winnie
|
|
Grant
|
Caldwell
|
|
McKinney
Redbud
|
|
Houston
|
|
Wirt
|
|
Kermit
Highway
|
College
Station
|
|
North
Carrolton
|
|
Aldine
|
|
|
|
Parkway
|
Hearne
|
|
Park Cities
|
|
Alief
|
|
South Texas Area
-
|
|
|
Huntsville
|
|
Plano
|
|
Bellaire
|
|
Corpus
Christi
|
|
Wichita
Falls
|
Madisonville
|
|
Plano-West
|
|
Beltway
|
|
Calallen
|
|
Cattlemans
|
Navasota
|
|
Preston
Forest
|
|
Clear Lake
|
|
Carmel
|
|
Kell
|
New Waverly
|
|
Preston
Parker
|
|
Copperfield
|
|
Northwest
|
|
|
Rock Prairie
|
|
Preston
Royal
|
|
Cypress
|
|
Saratoga
|
|
Other West Texas
Area
|
Southwest
Parkway
|
|
Red Oak
|
|
Downtown
|
|
Timbergate
|
|
Locations
|
Tower Point
|
|
Richardson
|
|
Eastex
|
|
Water Street
|
|
Big Spring
|
Wellborn
Road
|
|
Richardson-West
|
|
Fairfield
|
|
|
|
Brownfield
|
|
|
Rosewood
Court
|
|
First Colony
|
|
Victoria
|
|
Brownwood
|
Central Texas
Area
|
|
The Colony
|
|
Fry Road
|
|
Victoria
Main
|
|
Burkburnett
|
Austin
|
|
Tollroad
|
|
Gessner
|
|
Victoria-Navarro
|
|
Byers
|
Cedar Park
|
|
Trinity
Mills
|
|
Gladebrook
|
|
Victoria-North
|
|
Cisco
|
Congress
|
|
Turtle Creek
|
|
Grand
Parkway
|
|
Victoria
Salem
|
|
Comanche
|
Lakeway
|
|
West 15th
Plano
|
|
Heights
|
|
|
|
Early
|
Liberty Hill
|
|
West Allen
|
|
Highway 6
West
|
|
Other South Texas
Area
|
|
Floydada
|
Northland
|
|
Westmoreland
|
|
Little York
|
|
Locations
|
|
Gorman
|
Oak Hill
|
|
Wylie
|
|
Medical
Center
|
|
Alice
|
|
Henrietta
|
Research
Blvd
|
|
|
|
Memorial
Drive
|
|
Aransas Pass
|
|
Levelland
|
Westlake
|
|
Fort
Worth
|
|
Northside
|
|
Beeville
|
|
Littlefield
|
|
|
Haltom City
|
|
Pasadena
|
|
Colony Creek
|
|
Merkel
|
Other Central Texas
Area
|
|
Hulen
|
|
Pecan Grove
|
|
Cuero
|
|
Plainview
|
Locations
|
|
Keller
|
|
Pin Oak
|
|
Edna
|
|
San Angelo
|
Bastrop
|
|
Museum Place
|
|
River Oaks
|
|
Goliad
|
|
Slaton
|
Canyon Lake
|
|
Renaissance
Square
|
|
Sugar Land
|
|
Gonzales
|
|
Snyder
|
Dime Box
|
|
Roanoke
|
|
SW Medical
Center
|
|
Hallettsville
|
|
|
Dripping
Springs
|
|
Stockyards
|
|
Tanglewood
|
|
Kingsville
|
|
Lone Star West Texas
Area
|
Elgin
|
|
|
|
The Plaza
|
|
Mathis
|
|
Big Spring
|
Flatonia
|
|
Other Dallas/Fort
Worth Area
|
|
Uptown
|
|
Padre Island
|
|
Brownfield
|
Fredericksburg
|
|
Locations
|
|
Waugh Drive
|
|
Palacios
|
|
Lubbock
|
Georgetown
|
|
Arlington
|
|
Westheimer
|
|
Port Lavaca
|
|
Midland
|
Gruene
|
|
Azle
|
|
West
University
|
|
Portland
|
|
Odessa
|
Horseshoe
Bay
|
|
Ennis
|
|
Woodcreek
|
|
Rockport
|
|
|
Kingsland
|
|
Gainesville
|
|
|
|
Sinton
|
|
Oklahoma
|
La Grange
|
|
Glen Rose
|
|
Katy
|
|
Taft
|
|
Central Oklahoma
Area
|
Lexington
|
|
Granbury
|
|
Cinco Ranch
|
|
Yoakum
|
|
Oklahoma
City
|
Marble Falls
|
|
Grand
Prairie
|
|
Katy-Spring
Green
|
|
Yorktown
|
|
23rd
Street
|
New
Braunfels
|
|
Jacksboro
|
|
|
|
|
|
Expressway
|
Pleasanton
|
|
Mesquite
|
|
The
Woodlands
|
|
West Texas
Area
|
|
I-240
|
Round Rock
|
|
Muenster
|
|
The Woodlands-College
Park
|
|
Abilene
|
|
Memorial
|
San Antonio
|
|
Runaway Bay
|
|
The
Woodlands-I-45
|
|
Antilley
Road
|
|
|
Schulenburg
|
|
Sanger
|
|
The Woodlands-Research
Forest
|
|
Barrow
Street
|
|
Other Central
Oklahoma Area
|
Seguin
|
|
Waxahachie
|
|
|
|
Cypress
Street
|
|
Locations
|
Smithville
|
|
Weatherford
|
|
Other Houston
Area
|
|
Judge Ely
|
|
Edmond
|
Thorndale
|
|
|
|
Locations
|
|
Mockingbird
|
|
Norman
|
Weimar
|
|
East Texas
Area
|
|
Angleton
|
|
|
|
|
|
|
Athens
|
|
Bay City
|
|
Amarillo
|
|
Tulsa
Area
|
Dallas/Fort Worth
Area
|
|
Blooming
Grove
|
|
Beaumont
|
|
Hillside
|
|
Tulsa
|
Dallas
|
|
Canton
|
|
Cleveland
|
|
Soncy
|
|
Garnett
|
14th Street
Plano
|
|
Carthage
|
|
East Bernard
|
|
|
|
Harvard
|
Abrams
Centre
|
|
Corsicana
|
|
El Campo
|
|
Lubbock
|
|
Memorial
|
Addison
|
|
Crockett
|
|
Dayton
|
|
4th Street
|
|
Sheridan
|
Allen
|
|
Eustace
|
|
Galveston
|
|
66th Street
|
|
S. Harvard
|
Balch
Springs
|
|
Gilmer
|
|
Groves
|
|
82nd Street
|
|
Utica Tower
|
Camp Wisdom
|
|
Grapeland
|
|
Hempstead
|
|
86th Street
|
|
Yale
|
Carrollton
|
|
Gun Barrel
City
|
|
Hitchcock
|
|
98th
Street
|
|
|
Cedar Hill
|
|
Jacksonville
|
|
Liberty
|
|
Avenue Q
|
|
Other Tulsa Area
Locations
|
Coppell
|
|
Kerens
|
|
Magnolia
|
|
Milwaukee
|
|
Owasso
|
East Plano
|
|
Longview
|
|
Magnolia
Parkway
|
|
North
University
|
|
|
Euless
|
|
Mount Vernon
|
|
Mont Belvieu
|
|
Texas Tech Student
Union
|
|
|
Frisco
|
|
Palestine
|
|
Nederland
|
|
|
|
|
Frisco
Warren
|
|
Rusk
|
|
Needville
|
|
Midland
|
|
|
Frisco-West
|
|
Seven Points
|
|
Rosenberg
|
|
North
|
|
|
Garland
|
|
Teague
|
|
Shadow Creek
|
|
Wadley
|
|
|
Grapevine
|
|
Tyler-Beckham
|
|
Spring
|
|
Wall Street
|
|
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(In
thousands)
|
|
|
|
|
|
Jun 30,
2024
|
|
|
Mar 31,
2024
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
Balance Sheet Data
(at period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
9,951
|
|
|
$
|
6,380
|
|
|
$
|
5,734
|
|
|
$
|
10,187
|
|
|
$
|
10,656
|
|
Loans held for
investment
|
|
|
21,229,461
|
|
|
|
20,393,943
|
|
|
|
20,352,559
|
|
|
|
20,510,199
|
|
|
|
20,494,407
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
1,081,403
|
|
|
|
864,924
|
|
|
|
822,245
|
|
|
|
912,327
|
|
|
|
1,148,883
|
|
Total loans
|
|
|
22,320,815
|
|
|
|
21,265,247
|
|
|
|
21,180,538
|
|
|
|
21,432,713
|
|
|
|
21,653,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities(A)
|
|
|
11,702,139
|
|
|
|
12,301,138
|
|
|
|
12,803,896
|
|
|
|
13,192,742
|
|
|
|
13,667,319
|
|
Federal funds
sold
|
|
|
234
|
|
|
|
250
|
|
|
|
260
|
|
|
|
234
|
|
|
|
181
|
|
Allowance for credit
losses on loans
|
|
|
(359,852)
|
|
|
|
(330,219)
|
|
|
|
(332,362)
|
|
|
|
(351,495)
|
|
|
|
(345,209)
|
|
Cash and due from
banks
|
|
|
1,507,604
|
|
|
|
1,086,444
|
|
|
|
458,153
|
|
|
|
512,239
|
|
|
|
396,848
|
|
Goodwill
|
|
|
3,504,107
|
|
|
|
3,396,402
|
|
|
|
3,396,086
|
|
|
|
3,396,459
|
|
|
|
3,383,698
|
|
Core deposit
intangibles, net
|
|
|
74,324
|
|
|
|
60,757
|
|
|
|
63,994
|
|
|
|
67,553
|
|
|
|
71,128
|
|
Other real estate
owned
|
|
|
4,960
|
|
|
|
2,204
|
|
|
|
1,708
|
|
|
|
9,320
|
|
|
|
3,107
|
|
Fixed assets,
net
|
|
|
377,394
|
|
|
|
372,333
|
|
|
|
369,992
|
|
|
|
370,237
|
|
|
|
365,299
|
|
Other assets
|
|
|
630,569
|
|
|
|
601,964
|
|
|
|
605,612
|
|
|
|
665,682
|
|
|
|
708,814
|
|
Total
assets
|
|
$
|
39,762,294
|
|
|
$
|
38,756,520
|
|
|
$
|
38,547,877
|
|
|
$
|
39,295,684
|
|
|
$
|
39,905,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
9,706,505
|
|
|
$
|
9,526,535
|
|
|
$
|
9,776,572
|
|
|
$
|
10,281,893
|
|
|
$
|
10,364,921
|
|
Interest-bearing
deposits
|
|
|
18,226,581
|
|
|
|
17,648,983
|
|
|
|
17,403,237
|
|
|
|
17,030,907
|
|
|
|
17,015,965
|
|
Total
deposits
|
|
|
27,933,086
|
|
|
|
27,175,518
|
|
|
|
27,179,809
|
|
|
|
27,312,800
|
|
|
|
27,380,886
|
|
Other
borrowings
|
|
|
3,900,000
|
|
|
|
3,900,000
|
|
|
|
3,725,000
|
|
|
|
4,250,000
|
|
|
|
4,800,000
|
|
Securities sold under
repurchase agreements
|
|
|
233,689
|
|
|
|
261,671
|
|
|
|
309,277
|
|
|
|
300,714
|
|
|
|
434,160
|
|
Subordinated
debentures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,093
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
37,646
|
|
|
|
36,503
|
|
|
|
36,503
|
|
|
|
36,503
|
|
|
|
36,503
|
|
Other
liabilities
|
|
|
374,429
|
|
|
|
278,284
|
|
|
|
217,958
|
|
|
|
362,990
|
|
|
|
282,373
|
|
Total
liabilities
|
|
|
32,478,850
|
|
|
|
31,651,976
|
|
|
|
31,468,547
|
|
|
|
32,263,007
|
|
|
|
32,937,015
|
|
Shareholders'
equity(B)
|
|
|
7,283,444
|
|
|
|
7,104,544
|
|
|
|
7,079,330
|
|
|
|
7,032,677
|
|
|
|
6,968,116
|
|
Total liabilities and
equity
|
|
$
|
39,762,294
|
|
|
$
|
38,756,520
|
|
|
$
|
38,547,877
|
|
|
$
|
39,295,684
|
|
|
$
|
39,905,131
|
|
|
|
(A)
|
Includes $(2,007), $(2,954), $(1,770), $(2,442) and
$(3,393) in unrealized losses on available for sale securities for
the quarterly periods ended June 30, 2024, March 31, 2024, December
31, 2023, September 30, 2023 and June 30, 2023,
respectively.
|
(B)
|
Includes $(1,586), $(2,333), $(1,398), $(1,930) and
$(2,681) in after-tax unrealized losses on available for sale
securities for the quarterly periods ended June 30, 2024, March 31,
2024, December 31, 2023, September 30, 2023 and June 30, 2023,
respectively.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Jun 30,
2024
|
|
|
Mar 31,
2024
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Jun 30,
2024
|
|
|
Jun 30,
2023
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
336,428
|
|
|
$
|
306,228
|
|
|
$
|
306,562
|
|
|
$
|
308,678
|
|
|
$
|
286,638
|
|
|
$
|
642,656
|
|
|
$
|
533,756
|
|
Securities(C)
|
|
|
62,428
|
|
|
|
66,421
|
|
|
|
68,077
|
|
|
|
69,987
|
|
|
|
72,053
|
|
|
|
128,849
|
|
|
|
145,238
|
|
Federal funds sold and
other earning assets
|
|
|
14,095
|
|
|
|
9,265
|
|
|
|
1,793
|
|
|
|
1,689
|
|
|
|
1,757
|
|
|
|
23,360
|
|
|
|
8,763
|
|
Total interest
income
|
|
|
412,951
|
|
|
|
381,914
|
|
|
|
376,432
|
|
|
|
380,354
|
|
|
|
360,448
|
|
|
|
794,865
|
|
|
|
687,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
106,124
|
|
|
|
92,692
|
|
|
|
84,969
|
|
|
|
76,069
|
|
|
|
63,964
|
|
|
|
198,816
|
|
|
|
111,307
|
|
Other
borrowings
|
|
|
46,282
|
|
|
|
48,946
|
|
|
|
52,386
|
|
|
|
62,190
|
|
|
|
57,351
|
|
|
|
95,228
|
|
|
|
91,747
|
|
Securities sold under
repurchase agreements
|
|
|
1,759
|
|
|
|
2,032
|
|
|
|
2,094
|
|
|
|
2,533
|
|
|
|
2,674
|
|
|
|
3,791
|
|
|
|
4,777
|
|
Subordinated
debentures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
38
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total interest
expense
|
|
|
154,165
|
|
|
|
143,670
|
|
|
|
139,449
|
|
|
|
140,830
|
|
|
|
123,989
|
|
|
|
297,835
|
|
|
|
207,831
|
|
Net interest
income
|
|
|
258,786
|
|
|
|
238,244
|
|
|
|
236,983
|
|
|
|
239,524
|
|
|
|
236,459
|
|
|
|
497,030
|
|
|
|
479,926
|
|
Provision for credit
losses
|
|
|
9,066
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,540
|
|
|
|
9,066
|
|
|
|
18,540
|
|
Net interest income
after provision for credit losses
|
|
|
249,720
|
|
|
|
238,244
|
|
|
|
236,983
|
|
|
|
239,524
|
|
|
|
217,919
|
|
|
|
487,964
|
|
|
|
461,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds
(NSF) fees
|
|
|
8,153
|
|
|
|
8,288
|
|
|
|
8,365
|
|
|
|
8,719
|
|
|
|
8,512
|
|
|
|
16,441
|
|
|
|
16,607
|
|
Credit card, debit
card and ATM card income
|
|
|
9,384
|
|
|
|
8,861
|
|
|
|
9,314
|
|
|
|
9,285
|
|
|
|
9,206
|
|
|
|
18,245
|
|
|
|
17,872
|
|
Service charges on
deposit accounts
|
|
|
6,436
|
|
|
|
6,406
|
|
|
|
6,316
|
|
|
|
6,262
|
|
|
|
6,078
|
|
|
|
12,842
|
|
|
|
12,004
|
|
Trust
income
|
|
|
3,601
|
|
|
|
4,156
|
|
|
|
3,360
|
|
|
|
3,326
|
|
|
|
3,358
|
|
|
|
7,757
|
|
|
|
6,583
|
|
Mortgage
income
|
|
|
745
|
|
|
|
610
|
|
|
|
542
|
|
|
|
857
|
|
|
|
661
|
|
|
|
1,355
|
|
|
|
899
|
|
Brokerage
income
|
|
|
1,186
|
|
|
|
1,235
|
|
|
|
1,059
|
|
|
|
1,067
|
|
|
|
1,000
|
|
|
|
2,421
|
|
|
|
2,149
|
|
Bank owned life
insurance income
|
|
|
1,885
|
|
|
|
2,047
|
|
|
|
1,882
|
|
|
|
1,864
|
|
|
|
1,553
|
|
|
|
3,932
|
|
|
|
2,907
|
|
Net (loss) gain on
sale or write-down of assets
|
|
|
(903)
|
|
|
|
(35)
|
|
|
|
(84)
|
|
|
|
(45)
|
|
|
|
1,994
|
|
|
|
(938)
|
|
|
|
2,115
|
|
Net gain on sale or
write-up of securities
|
|
|
10,723
|
|
|
|
298
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11,021
|
|
|
|
—
|
|
Other noninterest
income
|
|
|
4,793
|
|
|
|
7,004
|
|
|
|
5,814
|
|
|
|
7,408
|
|
|
|
7,326
|
|
|
|
11,797
|
|
|
|
16,818
|
|
Total noninterest
income
|
|
|
46,003
|
|
|
|
38,870
|
|
|
|
36,568
|
|
|
|
38,743
|
|
|
|
39,688
|
|
|
|
84,873
|
|
|
|
77,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
89,584
|
|
|
|
85,771
|
|
|
|
80,486
|
|
|
|
85,423
|
|
|
|
84,723
|
|
|
|
175,355
|
|
|
|
162,521
|
|
Net occupancy and
equipment
|
|
|
8,915
|
|
|
|
8,623
|
|
|
|
9,093
|
|
|
|
9,464
|
|
|
|
8,935
|
|
|
|
17,538
|
|
|
|
16,960
|
|
Credit and debit card,
data processing and software amortization
|
|
|
11,998
|
|
|
|
10,975
|
|
|
|
10,741
|
|
|
|
10,919
|
|
|
|
10,344
|
|
|
|
22,973
|
|
|
|
19,910
|
|
Regulatory assessments
and FDIC insurance
|
|
|
10,317
|
|
|
|
5,538
|
|
|
|
24,940
|
|
|
|
5,155
|
|
|
|
5,097
|
|
|
|
15,855
|
|
|
|
10,070
|
|
Core deposit
intangibles amortization
|
|
|
4,156
|
|
|
|
3,237
|
|
|
|
3,559
|
|
|
|
3,576
|
|
|
|
3,167
|
|
|
|
7,393
|
|
|
|
5,541
|
|
Depreciation
|
|
|
4,836
|
|
|
|
4,686
|
|
|
|
4,607
|
|
|
|
4,585
|
|
|
|
4,658
|
|
|
|
9,522
|
|
|
|
9,091
|
|
Communications
|
|
|
3,485
|
|
|
|
3,402
|
|
|
|
3,572
|
|
|
|
3,686
|
|
|
|
3,693
|
|
|
|
6,887
|
|
|
|
7,155
|
|
Other real estate
expense
|
|
|
69
|
|
|
|
187
|
|
|
|
165
|
|
|
|
153
|
|
|
|
(464)
|
|
|
|
256
|
|
|
|
(406)
|
|
Net (gain) loss on
sale or write-down of other real estate
|
|
|
31
|
|
|
|
(138)
|
|
|
|
34
|
|
|
|
(734)
|
|
|
|
(33)
|
|
|
|
(107)
|
|
|
|
(46)
|
|
Merger related
expenses
|
|
|
4,381
|
|
|
|
—
|
|
|
|
278
|
|
|
|
1,104
|
|
|
|
12,891
|
|
|
|
4,381
|
|
|
|
13,751
|
|
Other noninterest
expense
|
|
|
15,070
|
|
|
|
13,567
|
|
|
|
14,696
|
|
|
|
12,326
|
|
|
|
12,859
|
|
|
|
28,637
|
|
|
|
24,323
|
|
Total noninterest
expense
|
|
|
152,842
|
|
|
|
135,848
|
|
|
|
152,171
|
|
|
|
135,657
|
|
|
|
145,870
|
|
|
|
288,690
|
|
|
|
268,870
|
|
Income before income
taxes
|
|
|
142,881
|
|
|
|
141,266
|
|
|
|
121,380
|
|
|
|
142,610
|
|
|
|
111,737
|
|
|
|
284,147
|
|
|
|
270,470
|
|
Provision for income
taxes
|
|
|
31,279
|
|
|
|
30,840
|
|
|
|
25,904
|
|
|
|
30,402
|
|
|
|
24,799
|
|
|
|
62,119
|
|
|
|
58,838
|
|
Net income available to
common shareholders
|
|
$
|
111,602
|
|
|
$
|
110,426
|
|
|
$
|
95,476
|
|
|
$
|
112,208
|
|
|
$
|
86,938
|
|
|
$
|
222,028
|
|
|
$
|
211,632
|
|
|
|
(C)
|
Interest income on securities was reduced by net
premium amortization of $5,831, $5,822, $6,428, $6,897 and $7,131
for the three months ended June 30, 2024, March 31, 2024, December
31, 2023, September 30, 2023 and June 30, 2023, respectively and
$11,653 and $14,515 for the six months ended June 30, 2024 and
2023, respectively.
|
Prosperity
Bancshares, Inc. ®
Financial Highlights
(Unaudited)
(Dollars and share
amounts in thousands, except per share data and market
prices)
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Jun 30,
2024
|
|
|
Mar 31,
2024
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Jun 30,
2024
|
|
|
Jun 30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(D) (E)
|
|
$
|
111,602
|
|
|
$
|
110,426
|
|
|
$
|
95,476
|
|
|
$
|
112,208
|
|
|
$
|
86,938
|
|
|
$
|
222,028
|
|
|
$
|
211,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.17
|
|
|
$
|
1.18
|
|
|
$
|
1.02
|
|
|
$
|
1.20
|
|
|
$
|
0.94
|
|
|
$
|
2.34
|
|
|
$
|
2.30
|
|
Diluted earnings per
share
|
|
$
|
1.17
|
|
|
$
|
1.18
|
|
|
$
|
1.02
|
|
|
$
|
1.20
|
|
|
$
|
0.94
|
|
|
$
|
2.34
|
|
|
$
|
2.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (F)(J)
|
|
|
1.12
|
%
|
|
|
1.13
|
%
|
|
|
0.98
|
%
|
|
|
1.13
|
%
|
|
|
0.89
|
%
|
|
|
1.13
|
%
|
|
|
1.09
|
%
|
Return on average
common equity (F)(J)
|
|
|
6.10
|
%
|
|
|
6.20
|
%
|
|
|
5.39
|
%
|
|
|
6.39
|
%
|
|
|
5.01
|
%
|
|
|
6.15
|
%
|
|
|
6.18
|
%
|
Return on average
tangible common
equity (F) (G)(J)
|
|
|
11.81
|
%
|
|
|
12.06
|
%
|
|
|
10.54
|
%
|
|
|
12.58
|
%
|
|
|
9.67
|
%
|
|
|
11.93
|
%
|
|
|
11.97
|
%
|
Tax equivalent net
interest margin (D) (E) (H)
|
|
|
2.94
|
%
|
|
|
2.79
|
%
|
|
|
2.75
|
%
|
|
|
2.72
|
%
|
|
|
2.73
|
%
|
|
|
2.87
|
%
|
|
|
2.83
|
%
|
Efficiency ratio
(G) (I)(K)
|
|
|
51.82
|
%
|
|
|
49.07
|
%
|
|
|
55.61
|
%
|
|
|
48.74
|
%
|
|
|
53.21
|
%
|
|
|
50.49
|
%
|
|
|
48.38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
|
18.32
|
%
|
|
|
18.33
|
%
|
|
|
18.37
|
%
|
|
|
17.90
|
%
|
|
|
17.46
|
%
|
|
|
18.32
|
%
|
|
|
17.46
|
%
|
Common equity tier 1
capital
|
|
|
15.42
|
%
|
|
|
15.75
|
%
|
|
|
15.54
|
%
|
|
|
14.98
|
%
|
|
|
14.49
|
%
|
|
|
15.42
|
%
|
|
|
14.48
|
%
|
Tier 1 risk-based
capital
|
|
|
15.42
|
%
|
|
|
15.75
|
%
|
|
|
15.54
|
%
|
|
|
14.98
|
%
|
|
|
14.49
|
%
|
|
|
15.42
|
%
|
|
|
14.48
|
%
|
Total risk-based
capital
|
|
|
16.67
|
%
|
|
|
17.00
|
%
|
|
|
16.56
|
%
|
|
|
16.05
|
%
|
|
|
15.52
|
%
|
|
|
16.67
|
%
|
|
|
15.51
|
%
|
Tier 1 leverage
capital
|
|
|
10.29
|
%
|
|
|
10.37
|
%
|
|
|
10.39
|
%
|
|
|
10.03
|
%
|
|
|
9.96
|
%
|
|
|
10.29
|
%
|
|
|
9.96
|
%
|
Period end tangible
equity to period end tangible assets (G)
|
|
|
10.24
|
%
|
|
|
10.33
|
%
|
|
|
10.31
|
%
|
|
|
9.96
|
%
|
|
|
9.64
|
%
|
|
|
10.24
|
%
|
|
|
9.64
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in computing
earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
95,765
|
|
|
|
93,706
|
|
|
|
93,715
|
|
|
|
93,720
|
|
|
|
92,930
|
|
|
|
94,735
|
|
|
|
92,073
|
|
Diluted
|
|
|
95,765
|
|
|
|
93,706
|
|
|
|
93,715
|
|
|
|
93,720
|
|
|
|
92,930
|
|
|
|
94,735
|
|
|
|
92,073
|
|
Period end shares
outstanding
|
|
|
95,262
|
|
|
|
93,525
|
|
|
|
93,722
|
|
|
|
93,717
|
|
|
|
93,721
|
|
|
|
95,262
|
|
|
|
93,721
|
|
Cash dividends paid per
common share
|
|
$
|
0.56
|
|
|
$
|
0.56
|
|
|
$
|
0.56
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
1.12
|
|
|
$
|
1.10
|
|
Book value per common
share
|
|
$
|
76.46
|
|
|
$
|
75.96
|
|
|
$
|
75.54
|
|
|
$
|
75.04
|
|
|
$
|
74.35
|
|
|
$
|
76.46
|
|
|
$
|
74.35
|
|
Tangible book value per
common share (G)
|
|
$
|
38.89
|
|
|
$
|
39.00
|
|
|
$
|
38.62
|
|
|
$
|
38.08
|
|
|
$
|
37.49
|
|
|
$
|
38.89
|
|
|
$
|
37.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
66.18
|
|
|
$
|
68.88
|
|
|
$
|
68.79
|
|
|
$
|
63.65
|
|
|
$
|
63.13
|
|
|
$
|
68.88
|
|
|
$
|
78.76
|
|
Low
|
|
$
|
57.16
|
|
|
$
|
60.08
|
|
|
$
|
49.60
|
|
|
$
|
52.62
|
|
|
$
|
55.12
|
|
|
$
|
57.16
|
|
|
$
|
55.12
|
|
Period end closing
price
|
|
$
|
61.14
|
|
|
$
|
65.78
|
|
|
$
|
67.73
|
|
|
$
|
54.58
|
|
|
$
|
56.48
|
|
|
$
|
61.14
|
|
|
$
|
56.48
|
|
Employees – FTE
(excluding overtime)
|
|
|
3,902
|
|
|
|
3,901
|
|
|
|
3,850
|
|
|
|
3,853
|
|
|
|
3,710
|
|
|
|
3,902
|
|
|
|
3,710
|
|
Number of banking
centers
|
|
|
288
|
|
|
|
283
|
|
|
|
285
|
|
|
|
285
|
|
|
|
286
|
|
|
|
288
|
|
|
|
286
|
|
|
|
(D)
|
Includes purchase accounting adjustments for the
periods presented as follows:
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Jun
30,
2024
|
|
Mar
31,
2024
|
|
Dec
31,
2023
|
|
Sep
30,
2023
|
|
Jun
30,
2023
|
|
Jun
30,
2024
|
|
Jun
30,
2023
|
Loan discount
accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-PCD
|
$4,797
|
|
$1,312
|
|
$1,543
|
|
$1,508
|
|
$1,242
|
|
$6,109
|
|
$1,774
|
PCD
|
$2,394
|
|
$548
|
|
$937
|
|
$767
|
|
$1,178
|
|
$2,942
|
|
$1,517
|
Securities net
accretion
|
$564
|
|
$561
|
|
$598
|
|
$626
|
|
$426
|
|
$1,125
|
|
$424
|
Time deposits
amortization
|
$4
|
|
$(97)
|
|
$(150)
|
|
$(210)
|
|
$(187)
|
|
$(93)
|
|
$(240)
|
|
|
(E)
|
Using effective tax
rate of 21.9%, 21.8%, 21.3%, 21.3% and 22.2% for the three months
ended June 30, 2024, March 31, 2024, December 31, 2023, September
30, 2023 and June 30, 2023, respectively, and 21.9% and 21.8% for
the six months ended June 30, 2024 and 2023,
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
366-day or 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, write-down or write-up
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, merger related expenses, net of tax,
FDIC special assessment, net of tax, and net gain on sale or
write-up of securities, 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 expenses and FDIC
special assessment 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.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
|
|
YIELD
ANALYSIS
|
|
Three Months
Ended
|
|
|
|
|
Jun 30,
2024
|
|
|
Mar 31,
2024
|
|
|
Jun 30,
2023
|
|
|
|
|
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
|
|
$
|
8,446
|
|
|
$
|
149
|
|
|
7.10 %
|
|
|
$
|
5,467
|
|
|
$
|
92
|
|
|
6.77 %
|
|
|
$
|
3,910
|
|
|
$
|
67
|
|
|
6.87 %
|
|
|
Loans held for
investment
|
|
|
21,328,824
|
|
|
|
319,361
|
|
|
6.02 %
|
|
|
|
20,415,316
|
|
|
|
292,673
|
|
|
5.77 %
|
|
|
|
19,802,751
|
|
|
|
270,688
|
|
|
5.48 %
|
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
917,026
|
|
|
|
16,918
|
|
|
7.42 %
|
|
|
|
720,650
|
|
|
|
13,463
|
|
|
7.51 %
|
|
|
|
898,768
|
|
|
|
15,883
|
|
|
7.09 %
|
|
|
Total loans
|
|
|
22,254,296
|
|
|
|
336,428
|
|
|
6.08 %
|
|
|
|
21,141,433
|
|
|
|
306,228
|
|
|
5.83 %
|
|
|
|
20,705,429
|
|
|
|
286,638
|
|
|
5.55 %
|
|
|
Investment
securities
|
|
|
12,179,074
|
|
|
|
62,428
|
|
|
2.06 %
|
|
(M)
|
|
12,693,268
|
|
|
|
66,421
|
|
|
2.10 %
|
|
(M)
|
|
13,976,818
|
|
|
|
72,053
|
|
|
2.07 %
|
|
(M)
|
Federal funds sold and
other earning assets
|
|
|
1,026,251
|
|
|
|
14,095
|
|
|
5.52 %
|
|
|
|
672,840
|
|
|
|
9,265
|
|
|
5.54 %
|
|
|
|
150,300
|
|
|
|
1,757
|
|
|
4.69 %
|
|
|
Total interest-earning
assets
|
|
|
35,459,621
|
|
|
|
412,951
|
|
|
4.68 %
|
|
|
|
34,507,541
|
|
|
|
381,914
|
|
|
4.45 %
|
|
|
|
34,832,547
|
|
|
|
360,448
|
|
|
4.15 %
|
|
|
Allowance for credit
losses on loans
|
|
|
(332,904)
|
|
|
|
|
|
|
|
|
|
(331,708)
|
|
|
|
|
|
|
|
|
|
(283,594)
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,822,131
|
|
|
|
|
|
|
|
|
|
4,759,697
|
|
|
|
|
|
|
|
|
|
4,738,673
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
39,948,848
|
|
|
|
|
|
|
|
|
$
|
38,935,530
|
|
|
|
|
|
|
|
|
$
|
39,287,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
4,839,194
|
|
|
$
|
9,133
|
|
|
0.76 %
|
|
|
$
|
5,143,585
|
|
|
$
|
8,423
|
|
|
0.66 %
|
|
|
$
|
5,147,453
|
|
|
$
|
3,791
|
|
|
0.30 %
|
|
|
Savings and money
market deposits
|
|
|
9,084,051
|
|
|
|
50,252
|
|
|
2.22 %
|
|
|
|
8,889,077
|
|
|
|
47,152
|
|
|
2.13 %
|
|
|
|
9,156,047
|
|
|
|
43,025
|
|
|
1.88 %
|
|
|
Certificates and other
time deposits
|
|
|
4,400,922
|
|
|
|
46,739
|
|
|
4.27 %
|
|
|
|
3,683,815
|
|
|
|
37,117
|
|
|
4.05 %
|
|
|
|
2,652,064
|
|
|
|
17,148
|
|
|
2.59 %
|
|
|
Other
borrowings
|
|
|
3,900,000
|
|
|
|
46,282
|
|
|
4.77 %
|
|
|
|
4,083,132
|
|
|
|
48,946
|
|
|
4.82 %
|
|
|
|
4,427,914
|
|
|
|
57,351
|
|
|
5.20 %
|
|
|
Securities sold under
repurchase agreements
|
|
|
258,637
|
|
|
|
1,759
|
|
|
2.74 %
|
|
|
|
296,437
|
|
|
|
2,032
|
|
|
2.76 %
|
|
|
|
441,303
|
|
|
|
2,674
|
|
|
2.43 %
|
|
|
Subordinated
debentures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,547
|
|
|
|
—
|
|
|
|
—
|
|
|
Total interest-bearing
liabilities
|
|
|
22,482,804
|
|
|
|
154,165
|
|
|
2.76 %
|
|
(N)
|
|
22,096,046
|
|
|
|
143,670
|
|
|
2.62 %
|
|
(N)
|
|
21,826,328
|
|
|
|
123,989
|
|
|
2.28 %
|
|
(N)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
9,780,211
|
|
|
|
|
|
|
|
|
|
9,443,249
|
|
|
|
|
|
|
|
|
|
10,274,819
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on
off-balance sheet credit exposures
|
|
|
36,729
|
|
|
|
|
|
|
|
|
|
36,503
|
|
|
|
|
|
|
|
|
|
30,022
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
327,847
|
|
|
|
|
|
|
|
|
|
238,480
|
|
|
|
|
|
|
|
|
|
220,775
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
32,627,591
|
|
|
|
|
|
|
|
|
|
31,814,278
|
|
|
|
|
|
|
|
|
|
32,351,944
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
7,321,257
|
|
|
|
|
|
|
|
|
|
7,121,252
|
|
|
|
|
|
|
|
|
|
6,935,682
|
|
|
|
|
|
|
|
|
Total liabilities
and
shareholders' equity
|
|
$
|
39,948,848
|
|
|
|
|
|
|
|
|
$
|
38,935,530
|
|
|
|
|
|
|
|
|
$
|
39,287,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin
|
|
|
|
|
$
|
258,786
|
|
|
2.94 %
|
|
|
|
|
|
$
|
238,244
|
|
|
2.78 %
|
|
|
|
|
|
$
|
236,459
|
|
|
2.72 %
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
800
|
|
|
|
|
|
|
|
|
|
808
|
|
|
|
|
|
|
|
|
|
854
|
|
|
|
|
|
Net interest income and
margin
(tax equivalent basis)
|
|
|
|
|
$
|
259,586
|
|
|
2.94 %
|
|
|
|
|
|
$
|
239,052
|
|
|
2.79 %
|
|
|
|
|
|
$
|
237,313
|
|
|
2.73 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(L)
|
Annualized and based
on an actual 366-day or 365-day basis.
|
(M)
|
Yield on securities
was impacted by net premium amortization of $5,831, $5,822 and
$7,131 for the three months ended June 30, 2024, March 31, 2024 and
June 30, 2023, respectively.
|
(N)
|
Total cost of funds,
including noninterest bearing deposits, was 1.92%, 1.83% and 1.55%
for the three months ended June 30, 2024, March 31, 2024 and June
30, 2023, respectively.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
|
|
YIELD
ANALYSIS
|
|
Year-to-Date
|
|
|
|
|
Jun 30,
2024
|
|
|
Jun 30,
2023
|
|
|
|
|
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
|
|
$
|
6,957
|
|
|
$
|
241
|
|
|
6.97 %
|
|
|
$
|
3,131
|
|
|
$
|
105
|
|
|
6.76 %
|
|
|
Loans held for
investment
|
|
|
20,872,069
|
|
|
|
612,034
|
|
|
5.90 %
|
|
|
|
19,064,334
|
|
|
|
507,294
|
|
|
5.37 %
|
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
818,838
|
|
|
|
30,381
|
|
|
7.46 %
|
|
|
|
759,071
|
|
|
|
26,357
|
|
|
7.00 %
|
|
|
Total loans
|
|
|
21,697,864
|
|
|
|
642,656
|
|
|
5.96 %
|
|
|
|
19,826,536
|
|
|
|
533,756
|
|
|
5.43 %
|
|
|
Investment
securities
|
|
|
12,436,171
|
|
|
|
128,849
|
|
|
2.08 %
|
|
(P)
|
|
14,153,681
|
|
|
|
145,238
|
|
|
2.07 %
|
|
(P)
|
Federal funds sold and
other earning assets
|
|
|
849,546
|
|
|
|
23,360
|
|
|
5.53 %
|
|
|
|
373,931
|
|
|
|
8,763
|
|
|
4.73 %
|
|
|
Total interest-earning
assets
|
|
|
34,983,581
|
|
|
|
794,865
|
|
|
4.57 %
|
|
|
|
34,354,148
|
|
|
|
687,757
|
|
|
4.04 %
|
|
|
Allowance for credit
losses on loans
|
|
|
(332,306)
|
|
|
|
|
|
|
|
|
|
(282,959)
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,790,888
|
|
|
|
|
|
|
|
|
|
4,667,547
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
39,442,163
|
|
|
|
|
|
|
|
|
$
|
38,738,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
4,991,390
|
|
|
$
|
17,556
|
|
|
0.71 %
|
|
|
$
|
5,510,530
|
|
|
$
|
7,583
|
|
|
0.28 %
|
|
|
Savings and money
market deposits
|
|
|
8,986,565
|
|
|
|
97,404
|
|
|
2.18 %
|
|
|
|
9,366,694
|
|
|
|
78,546
|
|
|
1.69 %
|
|
|
Certificates and other
time deposits
|
|
|
4,042,369
|
|
|
|
83,856
|
|
|
4.17 %
|
|
|
|
2,350,498
|
|
|
|
25,178
|
|
|
2.16 %
|
|
|
Other
borrowings
|
|
|
3,991,566
|
|
|
|
95,228
|
|
|
4.80 %
|
|
|
|
3,661,719
|
|
|
|
91,747
|
|
|
5.05 %
|
|
|
Securities sold under
repurchase agreements
|
|
|
277,537
|
|
|
|
3,791
|
|
|
2.75 %
|
|
|
|
434,632
|
|
|
|
4,777
|
|
|
2.22 %
|
|
|
Subordinated
debentures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
774
|
|
|
|
—
|
|
|
|
—
|
|
|
Total interest-bearing
liabilities
|
|
|
22,289,427
|
|
|
|
297,835
|
|
|
2.69 %
|
|
(Q)
|
|
21,324,847
|
|
|
|
207,831
|
|
|
1.97 %
|
|
(Q)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
9,611,730
|
|
|
|
|
|
|
|
|
|
10,332,082
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
36,616
|
|
|
|
|
|
|
|
|
|
29,985
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
283,139
|
|
|
|
|
|
|
|
|
|
203,769
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
32,220,912
|
|
|
|
|
|
|
|
|
|
31,890,683
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
7,221,251
|
|
|
|
|
|
|
|
|
|
6,848,053
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
39,442,163
|
|
|
|
|
|
|
|
|
$
|
38,738,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin
|
|
|
|
|
$
|
497,030
|
|
|
2.86 %
|
|
|
|
|
|
$
|
479,926
|
|
|
2.82 %
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
1,608
|
|
|
|
|
|
|
|
|
|
1,687
|
|
|
|
|
|
Net interest income and
margin (tax equivalent basis)
|
|
|
|
|
$
|
498,638
|
|
|
2.87 %
|
|
|
|
|
|
$
|
481,613
|
|
|
2.83 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(O)
|
Based on an actual
366-day or 365-day basis.
|
(P)
|
Yield on securities
was impacted by net premium amortization of $11,653 and $14,515 for
the six months ended June 30, 2024 and 2023,
respectively.
|
(Q)
|
Total cost of funds,
including noninterest bearing deposits, was 1.88% and 1.32% for the
six months ended June 30, 2024 and 2023,
respectively.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
|
Three Months
Ended
|
|
|
Jun 30,
2024
|
|
|
Mar 31,
2024
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
YIELD TREND
(R)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
7.10
|
%
|
|
|
6.77
|
%
|
|
|
7.47
|
%
|
|
|
6.54
|
%
|
|
|
6.87
|
%
|
Loans held for
investment
|
|
6.02
|
%
|
|
|
5.77
|
%
|
|
|
5.68
|
%
|
|
|
5.62
|
%
|
|
|
5.48
|
%
|
Loans held for
investment - Warehouse
Purchase Program
|
|
7.42
|
%
|
|
|
7.51
|
%
|
|
|
7.46
|
%
|
|
|
7.32
|
%
|
|
|
7.09
|
%
|
Total loans
|
|
6.08
|
%
|
|
|
5.83
|
%
|
|
|
5.75
|
%
|
|
|
5.70
|
%
|
|
|
5.55
|
%
|
Investment securities
(S)
|
|
2.06
|
%
|
|
|
2.10
|
%
|
|
|
2.07
|
%
|
|
|
2.05
|
%
|
|
|
2.07
|
%
|
Federal funds sold and
other earning assets
|
|
5.52
|
%
|
|
|
5.54
|
%
|
|
|
5.68
|
%
|
|
|
5.33
|
%
|
|
|
4.69
|
%
|
Total interest-earning
assets
|
|
4.68
|
%
|
|
|
4.45
|
%
|
|
|
4.35
|
%
|
|
|
4.30
|
%
|
|
|
4.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
0.76
|
%
|
|
|
0.66
|
%
|
|
|
0.56
|
%
|
|
|
0.43
|
%
|
|
|
0.30
|
%
|
Savings and money
market deposits
|
|
2.22
|
%
|
|
|
2.13
|
%
|
|
|
2.03
|
%
|
|
|
1.96
|
%
|
|
|
1.88
|
%
|
Certificates and other
time deposits
|
|
4.27
|
%
|
|
|
4.05
|
%
|
|
|
3.80
|
%
|
|
|
3.31
|
%
|
|
|
2.59
|
%
|
Other
borrowings
|
|
4.77
|
%
|
|
|
4.82
|
%
|
|
|
5.16
|
%
|
|
|
5.28
|
%
|
|
|
5.20
|
%
|
Securities sold under
repurchase agreements
|
|
2.74
|
%
|
|
|
2.76
|
%
|
|
|
2.77
|
%
|
|
|
2.58
|
%
|
|
|
2.43
|
%
|
Subordinated
debentures
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5.85
|
%
|
|
|
—
|
|
Total interest-bearing
liabilities
|
|
2.76
|
%
|
|
|
2.62
|
%
|
|
|
2.58
|
%
|
|
|
2.54
|
%
|
|
|
2.28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
|
2.94
|
%
|
|
|
2.78
|
%
|
|
|
2.74
|
%
|
|
|
2.71
|
%
|
|
|
2.72
|
%
|
Net Interest Margin
(tax equivalent)
|
|
2.94
|
%
|
|
|
2.79
|
%
|
|
|
2.75
|
%
|
|
|
2.72
|
%
|
|
|
2.73
|
%
|
|
|
(R)
|
Annualized and based
on average balances on an actual 366-day or 365-day
basis.
|
(S)
|
Yield on securities
was impacted by net premium amortization of $5,831, $5,822, $6,428,
$6,897 and $7,131 for the three months ended June 30, 2024, March
31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023,
respectively.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Jun 30,
2024
|
|
|
Mar 31,
2024
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
Balance Sheet
Averages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
8,446
|
|
|
$
|
5,467
|
|
|
$
|
9,828
|
|
|
$
|
9,832
|
|
|
$
|
3,910
|
|
Loans held for
investment
|
|
|
21,328,824
|
|
|
|
20,415,316
|
|
|
|
20,370,915
|
|
|
|
20,496,075
|
|
|
|
19,802,751
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
917,026
|
|
|
|
720,650
|
|
|
|
770,481
|
|
|
|
972,936
|
|
|
|
898,768
|
|
Total loans
|
|
|
22,254,296
|
|
|
|
21,141,433
|
|
|
|
21,151,224
|
|
|
|
21,478,843
|
|
|
|
20,705,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
|
12,179,074
|
|
|
|
12,693,268
|
|
|
|
13,074,243
|
|
|
|
13,512,137
|
|
|
|
13,976,818
|
|
Federal funds sold and
other earning assets
|
|
|
1,026,251
|
|
|
|
672,840
|
|
|
|
125,295
|
|
|
|
125,690
|
|
|
|
150,300
|
|
Total interest-earning
assets
|
|
|
35,459,621
|
|
|
|
34,507,541
|
|
|
|
34,350,762
|
|
|
|
35,116,670
|
|
|
|
34,832,547
|
|
Allowance for credit
losses on loans
|
|
|
(332,904)
|
|
|
|
(331,708)
|
|
|
|
(346,493)
|
|
|
|
(343,967)
|
|
|
|
(283,594)
|
|
Cash and due from
banks
|
|
|
295,077
|
|
|
|
315,612
|
|
|
|
302,864
|
|
|
|
301,201
|
|
|
|
281,593
|
|
Goodwill
|
|
|
3,482,448
|
|
|
|
3,396,177
|
|
|
|
3,396,224
|
|
|
|
3,387,293
|
|
|
|
3,291,659
|
|
Core deposit
intangibles, net
|
|
|
59,979
|
|
|
|
62,482
|
|
|
|
65,986
|
|
|
|
69,551
|
|
|
|
48,616
|
|
Other real
estate
|
|
|
3,071
|
|
|
|
2,319
|
|
|
|
4,781
|
|
|
|
6,301
|
|
|
|
2,712
|
|
Fixed assets,
net
|
|
|
377,369
|
|
|
|
372,458
|
|
|
|
370,900
|
|
|
|
367,814
|
|
|
|
357,593
|
|
Other assets
|
|
|
604,187
|
|
|
|
610,649
|
|
|
|
670,187
|
|
|
|
697,176
|
|
|
|
756,500
|
|
Total
assets
|
|
$
|
39,948,848
|
|
|
$
|
38,935,530
|
|
|
$
|
38,815,211
|
|
|
$
|
39,602,039
|
|
|
$
|
39,287,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
9,780,211
|
|
|
$
|
9,443,249
|
|
|
$
|
9,960,240
|
|
|
$
|
10,269,162
|
|
|
$
|
10,274,819
|
|
Interest-bearing demand
deposits
|
|
|
4,839,194
|
|
|
|
5,143,585
|
|
|
|
4,822,698
|
|
|
|
4,768,485
|
|
|
|
5,147,453
|
|
Savings and money
market deposits
|
|
|
9,084,051
|
|
|
|
8,889,077
|
|
|
|
8,815,892
|
|
|
|
8,977,824
|
|
|
|
9,156,047
|
|
Certificates and other
time deposits
|
|
|
4,400,922
|
|
|
|
3,683,815
|
|
|
|
3,442,115
|
|
|
|
3,172,178
|
|
|
|
2,652,064
|
|
Total
deposits
|
|
|
28,104,378
|
|
|
|
27,159,726
|
|
|
|
27,040,945
|
|
|
|
27,187,649
|
|
|
|
27,230,383
|
|
Other
borrowings
|
|
|
3,900,000
|
|
|
|
4,083,132
|
|
|
|
4,028,263
|
|
|
|
4,671,449
|
|
|
|
4,427,914
|
|
Securities sold under
repurchase agreements
|
|
|
258,637
|
|
|
|
296,437
|
|
|
|
300,317
|
|
|
|
389,149
|
|
|
|
441,303
|
|
Subordinated
debentures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,578
|
|
|
|
1,547
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
36,729
|
|
|
|
36,503
|
|
|
|
36,503
|
|
|
|
36,504
|
|
|
|
30,022
|
|
Other
liabilities
|
|
|
327,847
|
|
|
|
238,480
|
|
|
|
323,344
|
|
|
|
290,217
|
|
|
|
220,775
|
|
Shareholders'
equity
|
|
|
7,321,257
|
|
|
|
7,121,252
|
|
|
|
7,085,839
|
|
|
|
7,024,493
|
|
|
|
6,935,682
|
|
Total liabilities and
equity
|
|
$
|
39,948,848
|
|
|
$
|
38,935,530
|
|
|
$
|
38,815,211
|
|
|
$
|
39,602,039
|
|
|
$
|
39,287,626
|
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
Period End
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
$2,023,531
|
9.1 %
|
|
$1,932,534
|
9.1 %
|
|
$1,936,717
|
9.2 %
|
|
$2,153,391
|
10.1 %
|
|
$2,245,620
|
10.5 %
|
Warehouse purchase
program
|
|
1,081,403
|
4.8 %
|
|
864,924
|
4.1 %
|
|
822,245
|
3.9 %
|
|
912,327
|
4.3 %
|
|
1,148,883
|
5.3 %
|
Construction, land
development and other land loans
|
|
2,828,372
|
12.7 %
|
|
2,876,588
|
13.5 %
|
|
3,076,591
|
14.5 %
|
|
3,200,479
|
14.9 %
|
|
3,215,016
|
14.8 %
|
1-4 family
residential
|
|
7,496,485
|
33.6 %
|
|
7,331,251
|
34.5 %
|
|
7,207,226
|
34.0 %
|
|
7,032,593
|
32.8 %
|
|
6,780,813
|
31.3 %
|
Home equity
|
|
930,428
|
4.2 %
|
|
950,169
|
4.5 %
|
|
960,852
|
4.5 %
|
|
969,498
|
4.5 %
|
|
977,070
|
4.5 %
|
Commercial real estate
(includes multi-family residential)
|
|
5,961,884
|
26.7 %
|
|
5,631,460
|
26.5 %
|
|
5,662,948
|
26.7 %
|
|
5,606,837
|
26.2 %
|
|
5,676,526
|
26.2 %
|
Agriculture (includes
farmland)
|
|
1,037,361
|
4.6 %
|
|
813,092
|
3.8 %
|
|
816,043
|
3.9 %
|
|
801,933
|
3.7 %
|
|
804,376
|
3.7 %
|
Consumer and
other
|
|
340,611
|
1.5 %
|
|
326,915
|
1.5 %
|
|
329,593
|
1.6 %
|
|
306,018
|
1.4 %
|
|
305,207
|
1.4 %
|
Energy
|
|
620,740
|
2.8 %
|
|
538,314
|
2.5 %
|
|
368,323
|
1.7 %
|
|
449,637
|
2.1 %
|
|
500,435
|
2.3 %
|
Total loans
|
|
$22,320,815
|
|
|
$21,265,247
|
|
|
$21,180,538
|
|
|
$21,432,713
|
|
|
$21,653,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
DDA
|
|
$9,706,505
|
34.7 %
|
|
$9,526,535
|
35.1 %
|
|
$9,776,572
|
36.0 %
|
|
$10,281,893
|
37.6 %
|
|
$10,364,921
|
37.9 %
|
Interest-bearing
DDA
|
|
4,762,730
|
17.1 %
|
|
4,867,247
|
17.9 %
|
|
5,115,945
|
18.8 %
|
|
4,797,259
|
17.6 %
|
|
4,953,090
|
18.1 %
|
Money market
|
|
6,180,769
|
22.1 %
|
|
6,134,221
|
22.6 %
|
|
5,859,701
|
21.6 %
|
|
5,892,505
|
21.6 %
|
|
5,904,160
|
21.5 %
|
Savings
|
|
2,765,197
|
9.9 %
|
|
2,830,117
|
10.4 %
|
|
2,881,397
|
10.6 %
|
|
3,005,936
|
11.0 %
|
|
3,179,351
|
11.6 %
|
Certificates and other
time deposits
|
|
4,517,885
|
16.2 %
|
|
3,817,398
|
14.0 %
|
|
3,546,194
|
13.0 %
|
|
3,335,207
|
12.2 %
|
|
2,979,364
|
10.9 %
|
Total
deposits
|
|
$27,933,086
|
|
|
$27,175,518
|
|
|
$27,179,809
|
|
|
$27,312,800
|
|
|
$27,380,886
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
|
79.9 %
|
|
|
78.3 %
|
|
|
77.9 %
|
|
|
78.5 %
|
|
|
79.1 %
|
|
Prosperity
Bancshares, Inc.®
Financial
Highlights (Unaudited)
(Dollars in
thousands)
|
|
|
|
Construction
Loans
|
|
|
|
|
|
Jun 30,
2024
|
|
|
Mar 31,
2024
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family
residential construction
|
|
$
|
940,381
|
|
|
33.2
|
%
|
|
$
|
1,031,163
|
|
|
35.8
|
%
|
|
$
|
1,088,636
|
|
|
35.4
|
%
|
|
$
|
1,157,016
|
|
|
36.1
|
%
|
|
$
|
1,244,631
|
|
|
38.7
|
%
|
Land
development
|
|
|
241,639
|
|
|
8.5
|
%
|
|
|
290,243
|
|
|
10.1
|
%
|
|
|
367,849
|
|
|
12.0
|
%
|
|
|
359,518
|
|
|
11.2
|
%
|
|
|
310,199
|
|
|
9.7
|
%
|
Raw land
|
|
|
291,112
|
|
|
10.3
|
%
|
|
|
311,265
|
|
|
10.8
|
%
|
|
|
328,365
|
|
|
10.7
|
%
|
|
|
340,659
|
|
|
10.7
|
%
|
|
|
359,228
|
|
|
11.2
|
%
|
Residential
lots
|
|
|
222,343
|
|
|
7.9
|
%
|
|
|
224,901
|
|
|
7.8
|
%
|
|
|
222,591
|
|
|
7.2
|
%
|
|
|
216,659
|
|
|
6.8
|
%
|
|
|
216,706
|
|
|
6.7
|
%
|
Commercial
lots
|
|
|
60,264
|
|
|
2.1
|
%
|
|
|
59,691
|
|
|
2.1
|
%
|
|
|
155,415
|
|
|
5.0
|
%
|
|
|
154,425
|
|
|
4.8
|
%
|
|
|
158,278
|
|
|
4.9
|
%
|
Commercial construction
and other
|
|
|
1,074,361
|
|
|
38.0
|
%
|
|
|
959,687
|
|
|
33.4
|
%
|
|
|
914,436
|
|
|
29.7
|
%
|
|
|
973,022
|
|
|
30.4
|
%
|
|
|
927,025
|
|
|
28.8
|
%
|
Net unaccreted
discount
|
|
|
(1,728)
|
|
|
|
|
|
(362)
|
|
|
|
|
|
(701)
|
|
|
|
|
|
(820)
|
|
|
|
|
|
(1,051)
|
|
|
|
Total construction
loans
|
|
$
|
2,828,372
|
|
|
|
|
$
|
2,876,588
|
|
|
|
|
$
|
3,076,591
|
|
|
|
|
$
|
3,200,479
|
|
|
|
|
$
|
3,215,016
|
|
|
|
Non-Owner Occupied
Commercial Real Estate Loans by Metropolitan Statistical Area (MSA)
as of June 30, 2024
|
|
|
|
|
|
|
Houston
|
|
|
Dallas
|
|
|
Austin
|
|
|
OK
City
|
|
|
Tulsa
|
|
|
Other (T)
|
|
|
Total
|
|
|
Collateral
Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopping
center/retail
|
$
|
348,870
|
|
|
$
|
280,071
|
|
|
$
|
58,647
|
|
|
$
|
15,289
|
|
|
$
|
13,897
|
|
|
$
|
280,447
|
|
|
$
|
997,221
|
|
|
Commercial and
industrial buildings
|
|
137,531
|
|
|
|
110,561
|
|
|
|
27,016
|
|
|
|
35,320
|
|
|
|
17,520
|
|
|
|
210,784
|
|
|
|
538,732
|
|
|
Office
buildings
|
|
94,784
|
|
|
|
218,221
|
|
|
|
87,915
|
|
|
|
47,777
|
|
|
|
3,746
|
|
|
|
91,537
|
|
|
|
543,980
|
|
|
Medical
buildings
|
|
80,149
|
|
|
|
17,847
|
|
|
|
1,712
|
|
|
|
43,383
|
|
|
|
31,092
|
|
|
|
61,423
|
|
|
|
235,606
|
|
|
Apartment
buildings
|
|
141,505
|
|
|
|
127,928
|
|
|
|
17,749
|
|
|
|
14,169
|
|
|
|
15,120
|
|
|
|
197,712
|
|
|
|
514,183
|
|
|
Hotel
|
|
108,891
|
|
|
|
99,805
|
|
|
|
32,910
|
|
|
|
17,775
|
|
|
|
—
|
|
|
|
161,340
|
|
|
|
420,721
|
|
|
Other
|
|
176,995
|
|
|
|
57,368
|
|
|
|
36,284
|
|
|
|
8,118
|
|
|
|
1,593
|
|
|
|
82,988
|
|
|
|
363,346
|
|
|
Total
|
$
|
1,088,725
|
|
|
$
|
911,801
|
|
|
$
|
262,233
|
|
|
$
|
181,831
|
|
|
$
|
82,968
|
|
|
$
|
1,086,231
|
|
|
$
|
3,613,789
|
|
(U)
|
Acquired
Loans
|
|
|
|
|
Non-PCD
Loans
|
|
|
PCD
Loans
|
|
|
Total Acquired
Loans
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Mar 31,
2024
|
|
|
Balance at
Jun 30,
2024
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Mar 31,
2024
|
|
|
Balance at
Jun 30,
2024
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Mar 31,
2024
|
|
|
Balance at
Jun 30,
2024
|
|
Loan
marks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(V)
|
$
|
345,599
|
|
|
$
|
245
|
|
|
$
|
(920)
|
|
|
$
|
320,052
|
|
|
$
|
2,503
|
|
|
$
|
2,412
|
|
|
$
|
665,651
|
|
|
$
|
2,748
|
|
|
$
|
1,492
|
|
FirstCapital Bank
(W)
|
|
22,648
|
|
|
|
18,436
|
|
|
|
17,210
|
|
|
|
7,790
|
|
|
|
4,858
|
|
|
|
4,305
|
|
|
|
30,438
|
|
|
|
23,294
|
|
|
|
21,515
|
|
Lone Star Bank
(X)
|
|
20,378
|
|
|
|
—
|
|
|
|
17,960
|
|
|
|
4,558
|
|
|
|
—
|
|
|
|
2,790
|
|
|
|
24,936
|
|
|
|
—
|
|
|
|
20,750
|
|
Total
|
|
388,625
|
|
|
|
18,681
|
|
|
|
34,250
|
|
|
|
332,400
|
|
|
|
7,361
|
|
|
|
9,507
|
|
|
|
721,025
|
|
|
|
26,042
|
|
|
|
43,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(V)
|
|
12,286,159
|
|
|
|
977,286
|
|
|
|
875,474
|
|
|
|
689,573
|
|
|
|
56,982
|
|
|
|
57,417
|
|
|
|
12,975,732
|
|
|
|
1,034,268
|
|
|
|
932,891
|
|
FirstCapital Bank
(W)
|
|
1,021,694
|
|
|
|
699,277
|
|
|
|
652,527
|
|
|
|
627,991
|
|
|
|
438,092
|
|
|
|
395,743
|
|
|
|
1,649,685
|
|
|
|
1,137,369
|
|
|
|
1,048,270
|
|
Lone Star Bank
(X)
|
|
1,016,128
|
|
|
|
—
|
|
|
|
919,865
|
|
|
|
59,109
|
|
|
|
—
|
|
|
|
59,075
|
|
|
|
1,075,237
|
|
|
|
—
|
|
|
|
978,940
|
|
Total
|
|
14,323,981
|
|
|
|
1,676,563
|
|
|
|
2,447,866
|
|
|
|
1,376,673
|
|
|
|
495,074
|
|
|
|
512,235
|
|
|
|
15,700,654
|
|
(Y)
|
|
2,171,637
|
|
|
|
2,960,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan
balances less loan marks
|
$
|
13,935,356
|
|
|
$
|
1,657,882
|
|
|
$
|
2,413,616
|
|
|
$
|
1,044,273
|
|
|
$
|
487,713
|
|
|
$
|
502,728
|
|
|
$
|
14,979,629
|
|
|
$
|
2,145,595
|
|
|
$
|
2,916,344
|
|
|
|
(T)
|
Includes other MSA
and non-MSA regions.
|
(U)
|
Represents a portion
of total commercial real estate loans of $5.962 billion as of June
30, 2024.
|
(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)
|
The FB Merger was
completed on May 1, 2023. The FB 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)
|
The LSSB Merger
was completed on April 1, 2024. The LSSB Merger resulted in the
addition of $1.075 billion in loans with related purchase
accounting adjustments of $24.9 million at acquisition date,
which were subject to subsequent fair value
adjustments.
|
(Y)
|
Actual principal
balances acquired.
|
Prosperity
Bancshares, Inc.®
Financial Highlights
(Unaudited)
(Dollars in
thousands)
|
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
Jun 30,
2024
|
|
|
Mar 31,
2024
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Jun 30,
2024
|
|
|
Jun 30,
2023
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
|
84,175
|
|
|
$
|
78,475
|
|
|
$
|
68,688
|
|
|
$
|
59,729
|
|
|
$
|
57,723
|
|
|
$
|
84,175
|
|
|
$
|
57,723
|
|
Accruing loans 90 or
more days past due
|
|
322
|
|
|
|
3,035
|
|
|
|
2,195
|
|
|
|
397
|
|
|
|
1,744
|
|
|
|
322
|
|
|
|
1,744
|
|
Total nonperforming
loans
|
|
84,497
|
|
|
|
81,510
|
|
|
|
70,883
|
|
|
|
60,126
|
|
|
|
59,467
|
|
|
|
84,497
|
|
|
|
59,467
|
|
Repossessed
assets
|
|
113
|
|
|
|
97
|
|
|
|
76
|
|
|
|
35
|
|
|
|
153
|
|
|
|
113
|
|
|
|
153
|
|
Other real
estate
|
|
4,960
|
|
|
|
2,204
|
|
|
|
1,708
|
|
|
|
9,320
|
|
|
|
3,107
|
|
|
|
4,960
|
|
|
|
3,107
|
|
Total nonperforming
assets
|
$
|
89,570
|
|
|
$
|
83,811
|
|
|
$
|
72,667
|
|
|
$
|
69,481
|
|
|
$
|
62,727
|
|
|
$
|
89,570
|
|
|
$
|
62,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
16,340
|
|
|
$
|
10,199
|
|
|
$
|
8,957
|
|
|
$
|
22,219
|
|
|
$
|
24,027
|
|
|
$
|
16,340
|
|
|
$
|
24,027
|
|
Construction, land
development and other land loans
|
|
4,895
|
|
|
|
15,826
|
|
|
|
17,343
|
|
|
|
8,684
|
|
|
|
4,245
|
|
|
|
4,895
|
|
|
|
4,245
|
|
1-4 family residential
(includes home equity)
|
|
33,935
|
|
|
|
30,206
|
|
|
|
26,096
|
|
|
|
23,708
|
|
|
|
19,609
|
|
|
|
33,935
|
|
|
|
19,609
|
|
Commercial real estate
(includes multi-family residential)
|
|
31,776
|
|
|
|
23,720
|
|
|
|
18,775
|
|
|
|
13,341
|
|
|
|
13,504
|
|
|
|
31,776
|
|
|
|
13,504
|
|
Agriculture (includes
farmland)
|
|
2,550
|
|
|
|
3,714
|
|
|
|
1,460
|
|
|
|
1,511
|
|
|
|
1,284
|
|
|
|
2,550
|
|
|
|
1,284
|
|
Consumer and
other
|
|
74
|
|
|
|
146
|
|
|
|
36
|
|
|
|
18
|
|
|
|
58
|
|
|
|
74
|
|
|
|
58
|
|
Total
|
$
|
89,570
|
|
|
$
|
83,811
|
|
|
$
|
72,667
|
|
|
$
|
69,481
|
|
|
$
|
62,727
|
|
|
$
|
89,570
|
|
|
$
|
62,727
|
|
Number of
loans/properties
|
|
349
|
|
|
|
319
|
|
|
|
292
|
|
|
|
260
|
|
|
|
241
|
|
|
|
349
|
|
|
|
241
|
|
Allowance for credit
losses on loans
|
$
|
359,852
|
|
|
$
|
330,219
|
|
|
$
|
332,362
|
|
|
$
|
351,495
|
|
|
$
|
345,209
|
|
|
$
|
359,852
|
|
|
$
|
345,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
2,777
|
|
|
$
|
283
|
|
|
$
|
16,123
|
|
|
$
|
1,594
|
|
|
$
|
160
|
|
|
$
|
3,060
|
|
|
$
|
(1,312)
|
|
Construction, land
development and other land loans
|
|
109
|
|
|
|
(2)
|
|
|
|
(5)
|
|
|
|
(5)
|
|
|
|
50
|
|
|
|
107
|
|
|
|
37
|
|
1-4 family residential
(includes home equity)
|
|
425
|
|
|
|
457
|
|
|
|
20
|
|
|
|
(78)
|
|
|
|
(70)
|
|
|
|
882
|
|
|
|
(210)
|
|
Commercial real estate
(includes multi-family residential)
|
|
(381)
|
|
|
|
(17)
|
|
|
|
1,590
|
|
|
|
570
|
|
|
|
14,957
|
|
|
|
(398)
|
|
|
|
14,956
|
|
Agriculture (includes
farmland)
|
|
214
|
|
|
|
23
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(78)
|
|
|
|
237
|
|
|
|
(84)
|
|
Consumer and
other
|
|
1,224
|
|
|
|
1,399
|
|
|
|
1,405
|
|
|
|
1,327
|
|
|
|
1,046
|
|
|
|
2,623
|
|
|
|
2,063
|
|
Total
|
$
|
4,368
|
|
|
$
|
2,143
|
|
|
$
|
19,133
|
|
|
$
|
3,408
|
|
|
$
|
16,065
|
|
|
$
|
6,511
|
|
|
$
|
15,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
average interest-earning assets
|
|
0.25
|
%
|
|
|
0.24
|
%
|
|
|
0.21
|
%
|
|
|
0.20
|
%
|
|
|
0.18
|
%
|
|
|
0.26
|
%
|
|
|
0.18
|
%
|
Nonperforming assets to
loans and other real estate
|
|
0.40
|
%
|
|
|
0.39
|
%
|
|
|
0.34
|
%
|
|
|
0.32
|
%
|
|
|
0.29
|
%
|
|
|
0.40
|
%
|
|
|
0.29
|
%
|
Net charge-offs to
average loans (annualized)
|
|
0.08
|
%
|
|
|
0.04
|
%
|
|
|
0.36
|
%
|
|
|
0.06
|
%
|
|
|
0.31
|
%
|
|
|
0.06
|
%
|
|
|
0.16
|
%
|
Allowance for credit
losses on loans to total loans
|
|
1.61
|
%
|
|
|
1.55
|
%
|
|
|
1.57
|
%
|
|
|
1.64
|
%
|
|
|
1.59
|
%
|
|
|
1.61
|
%
|
|
|
1.59
|
%
|
Allowance for credit
losses on loans to total loans, excluding Warehouse Purchase
Program loans (G)
|
|
1.69
|
%
|
|
|
1.62
|
%
|
|
|
1.63
|
%
|
|
|
1.71
|
%
|
|
|
1.68
|
%
|
|
|
1.69
|
%
|
|
|
1.68
|
%
|
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, for internal planning and forecasting
purposes, Prosperity reviews each of diluted earnings per share,
return on average assets, return on average common equity, and
return on average tangible common equity, in each case excluding
merger related provision for credit losses, net of tax, merger
related expenses, net of tax, FDIC special assessment, net of tax,
and net gain on sale or write-up of securities, net of tax; return
on average tangible common equity; 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,
write-down or write-up of assets and securities; and the efficiency
ratio, excluding net gains and losses on the sale, write-down or
write-up of assets and securities, merger related expenses and FDIC
special assessment. 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
|
|
|
|
Jun 30,
2024
|
|
|
Mar 31,
2024
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Jun 30,
2024
|
|
|
Jun 30,
2023
|
|
Reconciliation of
diluted earnings per share to diluted earnings per share excluding
merger related provision for credit losses, net of tax, merger
related expenses, net of tax, FDIC special assessment, net of tax,
and net gain on sale or write-up of securities, net of
tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (unadjusted)
|
|
$
|
1.17
|
|
|
$
|
1.18
|
|
|
$
|
1.02
|
|
|
$
|
1.20
|
|
|
$
|
0.94
|
|
|
$
|
2.34
|
|
|
$
|
2.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
111,602
|
|
|
$
|
110,426
|
|
|
$
|
95,476
|
|
|
$
|
112,208
|
|
|
$
|
86,938
|
|
|
$
|
222,028
|
|
|
$
|
211,632
|
|
Merger related
provision for credit losses, net of tax(Z)
|
|
|
7,162
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14,647
|
|
|
|
7,162
|
|
|
|
14,647
|
|
Merger related
expenses, net of tax(Z)
|
|
|
3,461
|
|
|
|
—
|
|
|
|
220
|
|
|
|
872
|
|
|
|
10,184
|
|
|
|
3,461
|
|
|
|
10,863
|
|
FDIC special
assessment, net of tax(Z)
|
|
|
2,807
|
|
|
|
—
|
|
|
|
15,736
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,807
|
|
|
|
—
|
|
Net gain on sale or
write-up of securities, net of tax(Z)
|
|
|
(8,472)
|
|
|
|
(235)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(8,707)
|
|
|
|
—
|
|
Net income excluding
merger related provision for credit losses, net of tax, merger
related expenses, net of tax, FDIC special assessment, net of tax,
and net gain on sale or write-up of securities, net of
tax(Z):
|
|
$
|
116,560
|
|
|
$
|
110,191
|
|
|
$
|
111,432
|
|
|
$
|
113,080
|
|
|
$
|
111,769
|
|
|
$
|
226,751
|
|
|
$
|
237,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
|
|
95,765
|
|
|
|
93,706
|
|
|
|
93,715
|
|
|
|
93,720
|
|
|
|
92,930
|
|
|
|
94,735
|
|
|
|
92,073
|
|
Merger related
provision for credit losses, net of tax, per diluted
common share(Z)
|
|
$
|
0.07
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.16
|
|
|
$
|
0.07
|
|
|
$
|
0.16
|
|
Merger related
expenses, net of tax, per diluted common
share(Z)
|
|
$
|
0.04
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
0.11
|
|
|
$
|
0.04
|
|
|
|
0.12
|
|
FDIC special
assessment, net of tax, per diluted common
share(Z)
|
|
$
|
0.03
|
|
|
$
|
—
|
|
|
$
|
0.17
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.03
|
|
|
$
|
—
|
|
Net gain on sale or
write-up of securities, net of tax, per diluted common
share(Z)
|
|
$
|
(0.09)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.09)
|
|
|
$
|
—
|
|
Diluted earnings per
share excluding merger related provision for credit losses, net of
tax, merger related expenses, net of tax, FDIC special assessment,
net of tax, and net gain on sale or write-up of securities, net of
tax:(Z)
|
|
$
|
1.22
|
|
|
$
|
1.18
|
|
|
$
|
1.19
|
|
|
$
|
1.21
|
|
|
$
|
1.21
|
|
|
$
|
2.39
|
|
|
$
|
2.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
return on average assets to return on average assets excluding
merger related provision for credit losses, net of tax, merger
related expenses, net of tax, FDIC special assessment, net of tax,
and net gain on sale or write-up of securities, net of
tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (unadjusted)
|
|
|
1.12
|
%
|
|
|
1.13
|
%
|
|
|
0.98
|
%
|
|
|
1.13
|
%
|
|
|
0.89
|
%
|
|
|
1.13
|
%
|
|
|
1.09
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding
merger related provision for credit losses, net of tax, merger
related expenses, net of tax, FDIC special assessment, net of tax,
and net gain on sale or write-up of securities, net of
tax(Z):
|
|
$
|
116,560
|
|
|
$
|
110,191
|
|
|
$
|
111,432
|
|
|
$
|
113,080
|
|
|
$
|
111,769
|
|
|
$
|
226,751
|
|
|
$
|
237,142
|
|
Average total
assets
|
|
$
|
39,948,848
|
|
|
$
|
38,935,530
|
|
|
$
|
38,815,211
|
|
|
$
|
39,602,039
|
|
|
$
|
39,287,626
|
|
|
$
|
39,442,163
|
|
|
$
|
38,738,736
|
|
Return on average
assets excluding merger related provision for credit losses, net of
tax, merger related expenses, net of tax, FDIC special assessment,
net of tax, and net gain on sale or write-up of securities, net of
tax (F) (Z)
|
|
|
1.17
|
%
|
|
|
1.13
|
%
|
|
|
1.15
|
%
|
|
|
1.14
|
%
|
|
|
1.14
|
%
|
|
|
1.15
|
%
|
|
|
1.22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Z)
Calculated assuming a federal tax rate of 21.0%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Jun 30,
2024
|
|
|
Mar 31,
2024
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Jun 30,
2024
|
|
|
Jun 30,
2023
|
|
Reconciliation of
return on average common equity to return on average common equity
excluding merger related provision for credit losses, net of tax,
merger related expenses, net of tax, FDIC special assessment, net
of tax, and net gain on sale or write-up of securities, net of
tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (unadjusted)
|
|
|
6.10
|
%
|
|
|
6.20
|
%
|
|
|
5.39
|
%
|
|
|
6.39
|
%
|
|
|
5.01
|
%
|
|
|
6.15
|
%
|
|
|
6.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding
merger related provision for credit losses, net of tax, merger
related expenses, net of tax, FDIC special assessment, net of tax,
and net gain on sale or write-up of securities, net of
tax(Z):
|
|
$
|
116,560
|
|
|
$
|
110,191
|
|
|
$
|
111,432
|
|
|
$
|
113,080
|
|
|
$
|
111,769
|
|
|
$
|
226,751
|
|
|
$
|
237,142
|
|
Average shareholders'
equity
|
|
$
|
7,321,257
|
|
|
$
|
7,121,252
|
|
|
$
|
7,085,839
|
|
|
$
|
7,024,493
|
|
|
$
|
6,935,682
|
|
|
$
|
7,221,251
|
|
|
$
|
6,848,053
|
|
Return on average
common equity excluding merger related provision for credit losses,
net of tax, merger related expenses, net of tax, FDIC special
assessment, net of tax, and net gain on sale or write-up of
securities, net of tax (F) (Z)
|
|
|
6.37
|
%
|
|
|
6.19
|
%
|
|
|
6.29
|
%
|
|
|
6.44
|
%
|
|
|
6.45
|
%
|
|
|
6.28
|
%
|
|
|
6.93
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
return on average common equity to return on average tangible
common equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
111,602
|
|
|
$
|
110,426
|
|
|
$
|
95,476
|
|
|
$
|
112,208
|
|
|
$
|
86,938
|
|
|
$
|
222,028
|
|
|
$
|
211,632
|
|
Average shareholders'
equity
|
|
$
|
7,321,257
|
|
|
$
|
7,121,252
|
|
|
$
|
7,085,839
|
|
|
$
|
7,024,493
|
|
|
$
|
6,935,682
|
|
|
$
|
7,221,251
|
|
|
$
|
6,848,053
|
|
Less: Average goodwill
and other intangible assets
|
|
|
(3,542,427)
|
|
|
|
(3,458,659)
|
|
|
|
(3,462,210)
|
|
|
|
(3,456,844)
|
|
|
|
(3,340,275)
|
|
|
|
(3,500,542)
|
|
|
|
(3,311,222)
|
|
Average tangible
shareholders' equity
|
|
$
|
3,778,830
|
|
|
$
|
3,662,593
|
|
|
$
|
3,623,629
|
|
|
$
|
3,567,649
|
|
|
$
|
3,595,407
|
|
|
$
|
3,720,709
|
|
|
$
|
3,536,831
|
|
Return on average
tangible common equity (F)
|
|
|
11.81
|
%
|
|
|
12.06
|
%
|
|
|
10.54
|
%
|
|
|
12.58
|
%
|
|
|
9.67
|
%
|
|
|
11.93
|
%
|
|
|
11.97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
return on average common equity to return on average tangible
common equity excluding merger related provision for credit losses,
net of tax, merger related expenses, net of tax, and FDIC special
assessment, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding
merger related provision for credit losses, net of tax, merger
related expenses, net of tax, FDIC special assessment, net of tax,
and net gain on sale or write-up of securities, net of
tax(Z):
|
|
$
|
116,560
|
|
|
$
|
110,191
|
|
|
$
|
111,432
|
|
|
$
|
113,080
|
|
|
$
|
111,769
|
|
|
$
|
226,751
|
|
|
$
|
237,142
|
|
Average shareholders'
equity
|
|
$
|
7,321,257
|
|
|
$
|
7,121,252
|
|
|
$
|
7,085,839
|
|
|
$
|
7,024,493
|
|
|
$
|
6,935,682
|
|
|
$
|
7,221,251
|
|
|
$
|
6,848,053
|
|
Less: Average goodwill
and other intangible assets
|
|
|
(3,542,427)
|
|
|
|
(3,458,659)
|
|
|
|
(3,462,210)
|
|
|
|
(3,456,844)
|
|
|
|
(3,340,275)
|
|
|
|
(3,500,542)
|
|
|
|
(3,311,222)
|
|
Average tangible
shareholders' equity
|
|
$
|
3,778,830
|
|
|
$
|
3,662,593
|
|
|
$
|
3,623,629
|
|
|
$
|
3,567,649
|
|
|
$
|
3,595,407
|
|
|
$
|
3,720,709
|
|
|
$
|
3,536,831
|
|
Return on average
tangible common equity excluding merger related provision for
credit losses, net of tax, merger related expenses, net of tax,
FDIC special assessment, net of tax, and net gain on sale or
write-up of securities, net of tax (F)
(Z)
|
|
|
12.34
|
%
|
|
|
12.03
|
%
|
|
|
12.30
|
%
|
|
|
12.68
|
%
|
|
|
12.43
|
%
|
|
|
12.19
|
%
|
|
|
13.41
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
book value per share to tangible book value per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
7,283,444
|
|
|
$
|
7,104,544
|
|
|
$
|
7,079,330
|
|
|
$
|
7,032,677
|
|
|
$
|
6,968,116
|
|
|
$
|
7,283,444
|
|
|
$
|
6,968,116
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,578,431)
|
|
|
|
(3,457,159)
|
|
|
|
(3,460,080)
|
|
|
|
(3,464,012)
|
|
|
|
(3,454,826)
|
|
|
|
(3,578,431)
|
|
|
|
(3,454,826)
|
|
Tangible shareholders'
equity
|
|
$
|
3,705,013
|
|
|
$
|
3,647,385
|
|
|
$
|
3,619,250
|
|
|
$
|
3,568,665
|
|
|
$
|
3,513,290
|
|
|
$
|
3,705,013
|
|
|
$
|
3,513,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
|
|
95,262
|
|
|
|
93,525
|
|
|
|
93,722
|
|
|
|
93,717
|
|
|
|
93,721
|
|
|
|
95,262
|
|
|
|
93,721
|
|
Tangible book value per
share
|
|
$
|
38.89
|
|
|
$
|
39.00
|
|
|
$
|
38.62
|
|
|
$
|
38.08
|
|
|
$
|
37.49
|
|
|
$
|
38.89
|
|
|
$
|
37.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
equity to assets ratio to period end tangible equity to period end
tangible assets ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible shareholders'
equity
|
|
$
|
3,705,013
|
|
|
$
|
3,647,385
|
|
|
$
|
3,619,250
|
|
|
$
|
3,568,665
|
|
|
$
|
3,513,290
|
|
|
$
|
3,705,013
|
|
|
$
|
3,513,290
|
|
Total assets
|
|
$
|
39,762,294
|
|
|
$
|
38,756,520
|
|
|
$
|
38,547,877
|
|
|
$
|
39,295,684
|
|
|
$
|
39,905,131
|
|
|
$
|
39,762,294
|
|
|
$
|
39,905,131
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,578,431)
|
|
|
|
(3,457,159)
|
|
|
|
(3,460,080)
|
|
|
|
(3,464,012)
|
|
|
|
(3,454,826)
|
|
|
|
(3,578,431)
|
|
|
|
(3,454,826)
|
|
Tangible
assets
|
|
$
|
36,183,863
|
|
|
$
|
35,299,361
|
|
|
$
|
35,087,797
|
|
|
$
|
35,831,672
|
|
|
$
|
36,450,305
|
|
|
$
|
36,183,863
|
|
|
$
|
36,450,305
|
|
Period end tangible
equity to period end tangible assets ratio
|
|
|
10.24
|
%
|
|
|
10.33
|
%
|
|
|
10.31
|
%
|
|
|
9.96
|
%
|
|
|
9.64
|
%
|
|
|
10.24
|
%
|
|
|
9.64
|
%
|
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Jun 30,
2024
|
|
|
Mar 31,
2024
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Jun 30,
2024
|
|
|
Jun 30,
2023
|
|
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
|
|
$
|
359,852
|
|
|
$
|
330,219
|
|
|
$
|
332,362
|
|
|
$
|
351,495
|
|
|
$
|
345,209
|
|
|
$
|
359,852
|
|
|
$
|
345,209
|
|
Total loans
|
|
$
|
22,320,815
|
|
|
$
|
21,265,247
|
|
|
$
|
21,180,538
|
|
|
$
|
21,432,713
|
|
|
$
|
21,653,946
|
|
|
$
|
22,320,815
|
|
|
$
|
21,653,946
|
|
Less: Warehouse
Purchase Program loans
|
|
|
(1,081,403)
|
|
|
|
(864,924)
|
|
|
|
(822,245)
|
|
|
|
(912,327)
|
|
|
|
(1,148,883)
|
|
|
|
(1,081,403)
|
|
|
|
(1,148,883)
|
|
Total loans less
Warehouse Purchase Program
|
|
$
|
21,239,412
|
|
|
$
|
20,400,323
|
|
|
$
|
20,358,293
|
|
|
$
|
20,520,386
|
|
|
$
|
20,505,063
|
|
|
$
|
21,239,412
|
|
|
$
|
20,505,063
|
|
Allowance for credit
losses on loans to total loans excluding Warehouse Purchase
Program
|
|
|
1.69
|
%
|
|
|
1.62
|
%
|
|
|
1.63
|
%
|
|
|
1.71
|
%
|
|
|
1.68
|
%
|
|
|
1.69
|
%
|
|
|
1.68
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
efficiency ratio to efficiency ratio excluding net gains and losses
on the sale, write-down or write-up of assets and
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
152,842
|
|
|
$
|
135,848
|
|
|
$
|
152,171
|
|
|
$
|
135,657
|
|
|
$
|
145,870
|
|
|
$
|
288,690
|
|
|
$
|
268,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
258,786
|
|
|
$
|
238,244
|
|
|
$
|
236,983
|
|
|
$
|
239,524
|
|
|
$
|
236,459
|
|
|
$
|
497,030
|
|
|
$
|
479,926
|
|
Noninterest
income
|
|
|
46,003
|
|
|
|
38,870
|
|
|
|
36,568
|
|
|
|
38,743
|
|
|
|
39,688
|
|
|
|
84,873
|
|
|
|
77,954
|
|
Less: net (loss) gain
on sale or write-down of assets
|
|
|
(903)
|
|
|
|
(35)
|
|
|
|
(84)
|
|
|
|
(45)
|
|
|
|
1,994
|
|
|
|
(938)
|
|
|
|
2,115
|
|
Less: net gain on sale
or write-up of securities
|
|
|
10,723
|
|
|
|
298
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11,021
|
|
|
|
—
|
|
Noninterest income
excluding net gains and losses on the sale, write-down or write-up
of assets and securities
|
|
|
36,183
|
|
|
|
38,607
|
|
|
|
36,652
|
|
|
|
38,788
|
|
|
|
37,694
|
|
|
|
74,790
|
|
|
|
75,839
|
|
Total income excluding
net gains and losses on the sale, write-down or write-up of assets
and securities
|
|
$
|
294,969
|
|
|
$
|
276,851
|
|
|
$
|
273,635
|
|
|
$
|
278,312
|
|
|
$
|
274,153
|
|
|
$
|
571,820
|
|
|
$
|
555,765
|
|
Efficiency ratio,
excluding net gains and losses on the sale, write-down or write-up
of assets and securities
|
|
|
51.82
|
%
|
|
|
49.07
|
%
|
|
|
55.61
|
%
|
|
|
48.74
|
%
|
|
|
53.21
|
%
|
|
|
50.49
|
%
|
|
|
48.38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
efficiency ratio to efficiency ratio, excluding net gains and
losses on the sale, write-down or write-up of assets and
securities, merger related expenses and FDIC special
assessment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
152,842
|
|
|
$
|
135,848
|
|
|
$
|
152,171
|
|
|
$
|
135,657
|
|
|
$
|
145,870
|
|
|
$
|
288,690
|
|
|
$
|
268,870
|
|
Less: merger related
expenses
|
|
|
4,381
|
|
|
|
—
|
|
|
|
278
|
|
|
|
1,104
|
|
|
|
12,891
|
|
|
|
4,381
|
|
|
|
13,751
|
|
Less: FDIC special
assessment
|
|
|
3,554
|
|
|
|
—
|
|
|
|
19,919
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,554
|
|
|
|
—
|
|
Noninterest expense
excluding merger related expenses and FDIC
special assessment
|
|
$
|
144,907
|
|
|
$
|
135,848
|
|
|
$
|
131,974
|
|
|
$
|
134,553
|
|
|
$
|
132,979
|
|
|
$
|
280,755
|
|
|
$
|
255,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
258,786
|
|
|
$
|
238,244
|
|
|
$
|
236,983
|
|
|
$
|
239,524
|
|
|
$
|
236,459
|
|
|
$
|
497,030
|
|
|
$
|
479,926
|
|
Noninterest
income
|
|
|
46,003
|
|
|
|
38,870
|
|
|
|
36,568
|
|
|
|
38,743
|
|
|
|
39,688
|
|
|
|
84,873
|
|
|
|
77,954
|
|
Less: net (loss) gain
on sale or write down of assets
|
|
|
(903)
|
|
|
|
(35)
|
|
|
|
(84)
|
|
|
|
(45)
|
|
|
|
1,994
|
|
|
|
(938)
|
|
|
|
2,115
|
|
Less: net gain on sale
or write-up of securities
|
|
|
10,723
|
|
|
|
298
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11,021
|
|
|
|
—
|
|
Noninterest income
excluding net gains and losses on the sale, write-down or write-up
of assets and securities
|
|
|
36,183
|
|
|
|
38,607
|
|
|
|
36,652
|
|
|
|
38,788
|
|
|
|
37,694
|
|
|
|
74,790
|
|
|
|
75,839
|
|
Total income excluding
net gains and losses on the sale, write-down or write-up of assets
and securities
|
|
$
|
294,969
|
|
|
$
|
276,851
|
|
|
$
|
273,635
|
|
|
$
|
278,312
|
|
|
$
|
274,153
|
|
|
$
|
571,820
|
|
|
$
|
555,765
|
|
Efficiency ratio,
excluding net gains and losses on the sale, write-down or write-up
of assets and securities, merger related expenses and FDIC special
assessment
|
|
|
49.13
|
%
|
|
|
49.07
|
%
|
|
|
48.23
|
%
|
|
|
48.35
|
%
|
|
|
48.51
|
%
|
|
|
49.10
|
%
|
|
|
45.90
|
%
|
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SOURCE Prosperity Bancshares, Inc.