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Filed by Prosperity Bancshares, Inc. |
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Pursuant to rule 425 under Securities Act of 1933 |
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Subject Company: Tradition Bancshares, Inc. |
| Commission File No. 333-207346 |
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PRESS RELEASE |
For more information contact: |
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Prosperity Bancshares, Inc.® |
David Zalman |
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Prosperity Bank Plaza |
Chairman and Chief Executive Officer |
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4295 San Felipe |
281.269.7199 |
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Houston, Texas 77027 |
david.zalman@prosperitybankusa.com |
FOR IMMEDIATE RELEASE
Prosperity Bancshares, Inc.®
REPORTS THIRD QUARTER
2015 EARNINGS
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Third quarter 2015 earnings per share (diluted) of $1.01 |
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Third quarter net income of $70.598 million |
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Nonperforming assets remain low at 0.26% of third quarter average earning assets |
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Return on third quarter average assets of 1.30% |
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Third quarter efficiency ratio of 40.72% |
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Increase in dividend of 10% to $0.30 per share for the fourth quarter 2015 |
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Received all regulatory approvals for the pending acquisition of Tradition Bancshares, Inc. headquartered in Houston, Texas |
HOUSTON, October 23, 2015. Prosperity Bancshares, Inc.® (NYSE: PB), the parent company of Prosperity Bank® (collectively, “Prosperity”), reported net income for the quarter ended September 30, 2015 of $70.598 million or $1.01 per diluted common share. Additionally, nonperforming assets remain low at 0.26% of third quarter average earning assets with an annualized return on third quarter average assets of 1.30%.
“I am excited to announce that the Prosperity Board of Directors has decided to increase the dividend payable to shareholders to $0.30 per share for the fourth quarter, representing a 10% increase. The Board and management appreciate our shareholders and are glad to be able to show our appreciation with this increase,” said David Zalman, Prosperity’s Chairman and Chief Executive Officer.
“Prosperity enjoyed another successful quarter. Because of the acquisitions we completed over the last several years, our net income figures include purchase accounting adjustment income, which has been quickly declining. Excluding these purchase accounting adjustments, net income per diluted common share was $0.92 for the three months ended September 30, 2015 compared with $0.84 for the three months ended September 30, 2014, a 9.5% increase. Prosperity’s return on average tangible common equity for the three months ended September 30, 2015 was 19.30%. The reconciliations of these non-GAAP financial measures are included below,” continued Zalman.
“Despite employment declines in the oil and gas extraction and the manufacturing sectors, the Texas unemployment rate fell in August to 4.1% and continues to be lower than the U.S. rate, which was 5.1%. Oklahoma’s unemployment rate inched down slightly in September to 4.4% compared with 4.6% in August, according to data recently released by the U.S. Labor Department.”
“Although our loans decreased overall during the first nine months of 2015 primarily due to planned reductions at some of our acquired banks, our third quarter results showed loan growth of 1% (4% annualized) compared to the previous quarter ended June 30, 2015. Deposits have been flat for the first nine months of 2015, but, when comparing deposits as of September 30, 2015 to September 30, 2014, Prosperity has been successful in replacing over $500 million in higher cost time deposits at acquired banks with more traditional transactional accounts,” stated Zalman.
“Prosperity continues to be one of the best in class in asset quality with non-performing assets at 0.26% of third quarter average earning assets,” concluded Zalman.
Results of Operations for the Three Months Ended September 30, 2015
Net income was $70.598 million for the three months ended September 30, 2015 compared with $76.570 million for the same period in 2014. Net income per diluted common share was $1.01 for the three months ended September 30, 2015 compared with $1.10 for the same period in 2014. Net income (excluding purchase accounting adjustments) was $64.154 million for the quarter ended September 30, 2015 compared with $58.635 million for the quarter ended September 30, 2014, an increase of 9.4%. Net income per diluted common share (excluding purchase accounting adjustments) was $0.92 for the three months ended September 30, 2015 compared with $0.84 for the three months ended September 30, 2014. The reconciliation of these non-GAAP financial measures is shown on page 12. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended September 30, 2015 were 1.30%, 8.31% and 19.30%, respectively. Prosperity’s efficiency ratio (excluding credit loss provisions, net gains and losses on the sale of assets and taxes) was 40.72% for the three months ended September 30, 2015.
Net interest income before provision for credit losses for the quarter ended September 30, 2015 was $156.108 million compared with $175.657 million during the same period in 2014. This change was primarily due to a decrease in loan discount accretion of $17.424 million for the quarter ended September 30, 2015 compared with the quarter ended September 30, 2014. Linked quarter net interest income before provision for credit losses was $156.108 million for the three months ended September 30, 2015 compared with $158.239 million for the three months ended June 30, 2015. This change was primarily due to a decrease in loan discount accretion of $2.568 million for the quarter ended September 30, 2015 compared with the quarter ended June 30, 2015. The net interest margin on a tax equivalent basis was 3.30% for the three months ended September 30, 2015, compared with 3.85% for the same period in 2014 and 3.39% for the three months ended June 30, 2015. This change was primarily due to the decrease in loan discount accretion and lower yields on average interest-earning assets partially offset by lower rates paid on average interest-bearing liabilities for the three months ended September 30, 2015. Excluding purchase accounting adjustments, the net interest margin on a tax equivalent basis was 3.10% for the three months ended September 30, 2015, compared with 3.26% for the same period in 2014 and 3.13% for the three months ended June 30, 2015.
Noninterest income was $31.780 million for the three months ended September 30, 2015 compared with $30.191 million for the same period in 2014. This change was primarily due to an increase in mortgage income and other noninterest income. On a linked quarter basis, noninterest income increased $1.483 million or 4.9% compared with the quarter ended June 30, 2015. This was primarily due to an increase in NSF fees and service charges on deposit accounts.
Noninterest expense was $76.430 million for the three months ended September 30, 2015 compared with $85.540 million for the same period in 2014. This change was primarily due to a decrease in salary and benefits expense, other noninterest expense, net occupancy and equipment expense and regulatory assessments. On a linked quarter basis, noninterest expense decreased $3.305 million or 4.1% compared with the quarter ended June 30, 2015. This was primarily due to a decrease in salary and benefits expense, other noninterest expense and regulatory assessments for the three months ended September 30, 2015.
Results of Operations for the Nine Months Ended September 30, 2015
Net income was $216.171 million for the nine months ended September 30, 2015 compared with $219.213 million for the same period in 2014. Net income per diluted common share was $3.09 for the nine months ended September 30, 2015 compared with $3.19 for the same period in 2014. Net income (excluding purchase accounting adjustments) was $189.332 million for the nine months ended September 30, 2015 compared with $177.638 million for the nine months ended September 30, 2014. Net income per diluted common share (excluding purchase accounting adjustments) was $2.71 for the nine months ended September 30, 2015 compared with $2.59 for the nine months ended September 30, 2014. The reconciliation of these non-GAAP financial measures is shown on page 12. Returns on average assets, average common equity and average tangible common equity, each on an annualized basis, for the nine months ended September 30, 2015 were 1.33%, 8.63% and 20.51%, respectively. Prosperity’s efficiency ratio (excluding credit loss provisions, net gains and losses on the sale of assets and securities and taxes) was 41.64% for the nine months ended September 30, 2015.
Net interest income before provision for credit losses for the nine months ended September 30, 2015 was $477.252 million compared with $493.403 million during the same period in 2014. The change was primarily due to a decrease of $23.002 million in loan discount accretion partially offset by lower rates paid on average interest-bearing liabilities for the nine months ended September 30, 2015. The net interest margin on a tax equivalent basis for the nine months ended September 30, 2015 decreased to 3.42% compared with 3.77% for the same period in 2014. This was primarily due to a decrease in loan discount accretion and lower yields on average interest-earning assets partially offset by lower rates paid on average interest-bearing liabilities for the nine months ended September 30, 2015. Excluding purchase accounting adjustments, the net interest margin on a tax equivalent basis was 3.13% for the nine months ended September 30, 2015 compared with 3.30% for the same period in 2014.
Noninterest income was $90.498 million for the nine months ended September 30, 2015 compared with $91.452 million for the same period in 2014. This change was primarily due to a decrease in net gain on sale of assets and NSF fees partially offset by an increase in other noninterest income and mortgage income. Noninterest expense was $235.627 million for the nine months ended September 30, 2015 compared with $243.926 million for the same period in 2014. This change was primarily due to a decrease in salary and benefits expense and other noninterest expense partially offset by an increase in regulatory assessments and a net gain on sale of other real estate recorded in 2014.
Balance Sheet Information
At September 30, 2015, Prosperity had $21.567 billion in total assets, an increase of $449.922 million or 2.1%, compared with $21.117 billion at September 30, 2014.
Loans at September 30, 2015 were $9.205 billion, a decrease of $163.900 million or 1.7%, compared with $9.369 billion at September 30, 2014. Linked quarter loans increased $90.653 million or 1.0% (4.0% annualized) from $9.114 billion at June 30, 2015.
As part of its lending activities, Prosperity extends credit to oil and gas production and servicing companies. Oil and gas production loans are loans to companies directly involved in the exploration and or production of oil and gas. Oil and gas servicing loans are loans to companies that provide services for oil and gas production and exploration. At September 30, 2015, oil and gas loans totaled $405.176 million or 4.4% of total loans, of which $185.162 million were production loans and $220.014 million were servicing loans compared with total oil and gas loans of $500.409 million or 5.3% of total loans at December 31, 2014, of which $271.972 million were production loans and $228.437 million were servicing loans.
Deposits at September 30, 2015 were $16.940 billion, a decrease of $74.090 million or 0.4%, compared with $17.014 billion at September 30, 2014. Linked quarter deposits decreased $61.727 million or 0.4% from $17.002 billion at June 30, 2015.
Asset Quality
Nonperforming assets totaled $48.628 million or 0.26% of quarterly average earning assets at September 30, 2015, compared with $50.082 million or 0.27% of quarterly average earning assets at September 30, 2014, and $35.119 million or 0.19% of quarterly average earning assets at June 30, 2015. The allowance for credit losses was 0.88% of total loans at September 30, 2015, 0.83% of total loans at September 30, 2014 and 0.89% of total loans at June 30, 2015. Excluding loans acquired that are accounted for under FASB Accounting Standards Codification (“ASC”) Topics 310-20 and 310-30, the allowance for credit losses was 1.06% of remaining loans as of September 30, 2015, compared with 1.14% at September 30, 2014 and 1.09% at June 30, 2015. Refer to the “Notes to Selected Financial Data” at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure.
The provision for credit losses was $5.310 million for the three months ended September 30, 2015 compared with $5.000 million for the three months ended September 30, 2014 and $500 thousand for the three months ended June 30, 2015. The provision for credit losses was $7.060 million for the nine months ended September 30, 2015 compared with $11.925 million for the nine months ended September 30, 2014.
Net charge offs were $5.279 million for the three months ended September 30, 2015 compared with $653 thousand for the three months ended September 30, 2014 and $491 thousand for the three months ended June 30, 2015. This increase was primarily due to the charge off of three commercial and industrial loans during the third quarter of 2015. Net charge offs were $6.819 million for the nine months ended September 30, 2015 compared with $1.594 million for the nine months ended September 30, 2014.
Conference Call
Prosperity’s management team will host a conference call on Friday, October 23, 2015 at 10:30 a.m. Eastern Time (9:30 a.m. Central Time) to discuss Prosperity’s third quarter 2015 earnings. Individuals and investment professionals may participate in the call by dialing 877-883-0383. The elite entry number is 2554742.
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 directly from Prosperity’s home page by clicking the “Investor Relations” tab and then the “Presentations & Calls” link.
Non-GAAP Financial Measures
Prosperity’s management uses certain non−GAAP financial measures to evaluate its performance. Specifically, Prosperity reviews tangible book value per share, return on average tangible common equity and the tangible equity to tangible assets ratio. Further, as a result of acquisitions, and the related purchase accounting adjustments, Prosperity uses certain non-GAAP measures and ratios that exclude the impact of these items to evaluate its net income and earnings per share (excluding purchase accounting adjustments) and its allowance for credit losses to total loans (excluding acquired loans accounted for under ASC Topics 310-20, “Receivables-Nonrefundable Fees and Other Costs” and 310-30, “Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality”). Prosperity has included in this Earnings Release information related to these non-GAAP financial measures for the applicable periods presented. Please refer to page 12 and to the “Notes to Selected Financial Data” at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures.
Dividend
Prosperity Bancshares, Inc. (“Prosperity Bancshares”) declared a fourth quarter cash dividend of $0.30 per share, to be paid on January 4, 2016 to all shareholders of record as of December 18, 2015.
Pending Acquisition of Tradition Bancshares, Inc.; Regulatory Approvals Received
On August 6, 2015, Prosperity Bancshares announced the signing of a definitive merger agreement to acquire Tradition Bancshares, Inc. (“Tradition”) and its wholly-owned subsidiary Tradition Bank headquartered in Houston, Texas. Tradition Bank operates 7 banking offices in the Houston, Texas area, including its main office in Bellaire, 3 banking centers in Katy and 1 banking center in The Woodlands. As of September 30, 2015, Tradition, on a consolidated basis, reported total assets of $540.565 million, total loans of $239.196 million, total deposits of $483.828 million and shareholder’s equity of $46.288 million.
Under the terms of the definitive agreement, Prosperity Bancshares will issue approximately 679,679 shares of Prosperity Bancshares common stock plus $39.0 million in cash for all outstanding shares of Tradition capital stock, subject to potential adjustments. The transaction is subject to customary closing conditions and approval by Tradition’s shareholders. Prosperity has received all necessary regulatory approvals for this acquisition and expects to close the transaction on December 31, 2015.
Prosperity Bancshares, Inc. ®
As of September 30, 2015, Prosperity Bancshares, Inc. ® is a $21.567 billion Houston, Texas based regional financial holding company, formed in 1983. Operating under a community banking philosophy and seeking to develop broad customer relationships based on service and convenience, Prosperity offers a variety of traditional loan and deposit products to its customers, which consist primarily of small and medium sized businesses and consumers. In addition to established banking products, Prosperity offers a complete line of services including: Internet Banking services at www.prosperitybankusa.com, Retail Brokerage Services, Credit Cards, MasterMoney Debit Cards, 24 hour voice response banking, Trust and Wealth Management, Mortgage Services and Mobile Banking.
Prosperity currently operates 244 full-service banking locations: 61 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 37 in the Dallas/Fort Worth area; 22 in the East Texas area; 30 in the Central Texas area including Austin and San Antonio; 34 in the West Texas area including Lubbock, Midland-Odessa and Abilene; 16 in the Bryan/College Station area, 6 in the Central Oklahoma area and 8 in the Tulsa, Oklahoma area.
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Bryan/College Station Area - |
Sachse |
Sugar Land |
Sinton |
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Bryan |
The Colony |
SW Medical Center |
Taft |
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Bryan-29th Street |
Turtle Creek |
Tanglewood |
Victoria |
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Bryan-East |
Turtle Creek Loan Office |
Uptown |
Victoria-Navarro |
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Bryan-North |
Westmoreland |
Waugh Drive |
Victoria-North |
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Caldwell |
Westheimer |
Yoakum | |
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College Station |
Fort Worth - |
West University |
Yorktown |
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Crescent Point |
Haltom City |
Woodcreek |
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Hearne |
Keller |
West Texas Area - | |
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Huntsville |
Roanoke |
Other Houston Area |
Abilene - |
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Madisonville |
Stockyards |
Locations - |
Antilley Road |
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Navasota |
Angleton |
Barrow Street | |
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New Waverly |
Other Dallas/Fort Worth Locations - |
Bay City |
Cypress Street |
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Rock Prairie |
Arlington |
Beaumont |
Judge Ely |
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Southwest Parkway |
Azle |
Cinco Ranch |
Mockingbird |
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Tower Point |
Ennis |
Cleveland |
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Wellborn Road |
Gainesville |
East Bernard |
Lubbock - |
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Glen Rose |
El Campo |
4th Street | |
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Central Texas Area - |
Granbury |
Dayton |
66th Street |
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Austin - |
Mesquite |
Galveston |
82nd Street |
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183 |
Muenster |
Groves |
86th Street |
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Allandale |
Sanger |
Hempstead |
98th Street |
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Cedar Park |
Waxahachie |
Hitchcock |
Avenue Q |
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Congress |
Weatherford |
Katy |
North University |
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Lakeway |
Katy-Spring Green |
Texas Tech Student Union | |
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Liberty Hill |
East Texas Area - |
Liberty |
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Northland |
Athens |
Magnolia |
Midland - |
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Oak Hill |
Blooming Grove |
Magnolia Parkway |
Wadley |
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Research Blvd |
Canton |
Mont Belvieu |
Wall Street |
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Westlake |
Carthage |
Nederland |
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Corsicana |
Needville |
Odessa - | |
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Other Central Texas Locations - |
Crockett |
Rosenberg |
Grandview |
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Bastrop |
Eustace |
Shadow Creek |
Grant |
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Canyon Lake |
Gilmer |
Spring |
Kermit Highway |
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Dime Box |
Grapeland |
Sweeny |
Parkway |
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Dripping Springs |
Gun Barrel City |
The Woodlands-I-45 |
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Elgin |
Jacksonville |
The Woodlands-Research Forest |
Other West Texas Locations - |
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Flatonia |
Kerens |
Tomball |
Big Spring |
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Georgetown |
Longview |
Waller |
Brownfield |
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Gruene |
Mount Vernon |
West Columbia |
Brownwood |
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Kingsland |
Palestine |
Wharton |
Cisco |
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La Grange |
Rusk |
Winnie |
Comanche |
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Lexington |
Seven Points |
Wirt |
Early |
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New Braunfels |
Teague |
Floydada | |
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Pleasanton |
Tyler-Beckham |
South Texas Area - |
Gorman |
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Round Rock |
Tyler-South Broadway |
Corpus Christi - |
Levelland |
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San Antonio |
Tyler-University |
Airline |
Littlefield |
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Schulenburg |
Winnsboro |
Calallen |
Merkel |
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Seguin |
Carmel |
Plainview | |
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Smithville |
Houston Area - |
Northwest |
San Angelo |
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Thorndale |
Houston - |
Saratoga |
Slaton |
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Weimar |
Aldine |
Timbergate |
Snyder |
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Bellaire |
Water Street |
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Dallas/Fort Worth Area - |
Beltway |
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Oklahoma |
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Dallas - |
Clear Lake |
Other South Texas |
Central Oklahoma- |
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Abrams Centre |
Copperfield |
Locations - |
23rd Street |
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Balch Springs |
Cypress |
Alice |
Edmond |
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Camp Wisdom |
Downtown |
Aransas Pass |
Expressway |
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Cedar Hill |
Eastex |
Beeville |
I-240 |
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Dallas – Central Expressway |
Fairfield |
Colony Creek |
Memorial |
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Forest Park |
First Colony |
Cuero |
Norman |
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Frisco |
Gessner |
Edna |
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Frisco-West |
Gladebrook |
Goliad |
Tulsa- |
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Kiest |
Heights |
Gonzales |
Garnett |
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McKinney |
Highway 6 West |
Hallettsville |
Harvard |
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McKinney-Stonebridge |
Little York |
Kingsville |
Memorial |
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Midway |
Medical Center |
Mathis |
Owasso |
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Northwest Highway |
Memorial Drive |
Padre Island |
Sheridan |
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Plano |
Northside |
Palacios |
S. Harvard |
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Preston Forest |
Pasadena |
Port Lavaca |
Utica Tower |
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Preston Road |
Pecan Grove |
Portland |
Yale |
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Red Oak |
River Oaks |
Rockport |
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In connection with the proposed merger of Tradition Bancshares, Inc. into Prosperity Bancshares, Prosperity Bancshares has filed with the Securities and Exchange Commission a registration statement on Form S-4 to register the shares of Prosperity's common stock to be issued to the shareholders of Tradition Bancshares, Inc. The registration statement includes a proxy statement/prospectus which will be sent to the shareholders of Tradition Bancshares, Inc. seeking their approval of the proposed transaction.
WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH THE PROPOSED TRANSACTION BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY BANCSHARES, TRADITION BANCSHARES, INC. AND THE PROPOSED TRANSACTION.
Investors and security holders may obtain free copies of these documents through the website maintained by the Securities and Exchange Commission at http://www.sec.gov. Documents filed with the SEC by Prosperity Bancshares will be available free of charge by directing a request by telephone or mail to Prosperity Bancshares, Inc., Prosperity Bank Plaza, 4295 San Felipe, Houston, Texas 77027 Attn: Investor Relations. Prosperity's telephone number is (281) 269-7199.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity’s management on the conference call may contain, forward-looking statements within the meaning of the securities laws that are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity’s control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity’s securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate fluctuations and interest rate fluctuations; and weather. These and various other factors are discussed in Prosperity Bancshares’ Annual Report on Form 10-K for the year ended December 31, 2014 and other reports and statements Prosperity Bancshares has filed with the SEC. Copies of the SEC filings for Prosperity Bancshares® may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(In thousands)
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Sep 30, 2015 |
Jun 30, 2015 |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
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Balance Sheet Data |
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(at period end) |
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Total loans |
$ | 9,204,988 | $ | 9,114,335 | $ | 9,166,005 | $ | 9,244,183 | $ | 9,368,888 | ||||||||||
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Investment securities(A) |
9,530,761 | 9,698,079 | 9,579,496 | 9,045,776 | 8,845,909 | |||||||||||||||
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Federal funds sold |
996 | 1,451 | 1,639 | 569 | 484 | |||||||||||||||
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Allowance for credit losses |
(81,003 | ) | (80,972 | ) | (80,963 | ) | (80,762 | ) | (77,613 | ) | ||||||||||
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Cash and due from banks |
300,230 | 353,047 | 352,642 | 677,285 | 330,952 | |||||||||||||||
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Goodwill |
1,881,955 | 1,881,955 | 1,881,955 | 1,874,191 | 1,892,255 | |||||||||||||||
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Core deposit intangibles, net |
51,712 | 54,068 | 56,458 | 58,947 | 34,474 | |||||||||||||||
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Other real estate owned |
3,271 | 2,806 | 3,010 | 3,237 | 5,504 | |||||||||||||||
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Fixed assets, net |
271,650 | 275,347 | 276,468 | 281,549 | 283,011 | |||||||||||||||
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Other assets |
402,676 | 386,171 | 370,149 | 402,758 | 433,450 | |||||||||||||||
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Total assets |
$ | 21,567,236 | $ | 21,686,287 | $ | 21,606,859 | $ | 21,507,733 | $ | 21,117,314 | ||||||||||
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Noninterest-bearing deposits |
$ | 5,093,175 | $ | 5,040,628 | $ | 5,038,436 | $ | 4,936,420 | $ | 4,968,867 | ||||||||||
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Interest-bearing deposits |
11,846,762 | 11,961,036 | 12,522,916 | 12,756,738 | 12,045,160 | |||||||||||||||
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Total deposits |
16,939,937 | 17,001,664 | 17,561,352 | 17,693,158 | 17,014,027 | |||||||||||||||
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Other borrowings |
786,571 | 886,741 | 331,914 | 8,724 | 289,972 | |||||||||||||||
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Securities sold under repurchase agreements |
310,038 | 334,189 | 318,418 | 315,523 | 358,053 | |||||||||||||||
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Junior subordinated debentures |
- | - | - | 167,531 | 167,531 | |||||||||||||||
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Other liabilities |
119,451 | 106,408 | 93,314 | 77,971 | 104,781 | |||||||||||||||
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Total liabilities |
18,155,997 | 18,329,002 | 18,304,998 | 18,262,907 | 17,934,364 | |||||||||||||||
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Shareholders' equity(B) |
3,411,239 | 3,357,285 | 3,301,861 | 3,244,826 | 3,182,950 | |||||||||||||||
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Total liabilities and equity |
$ | 21,567,236 | $ | 21,686,287 | $ | 21,606,859 | $ | 21,507,733 | $ | 21,117,314 | ||||||||||
(A) Includes $3,788, $4,655, $5,296, $5,737 and $5,756 in unrealized gains on available for sale securities for the quarterly periods ended September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014 and September 30, 2014, respectively.
(B) Includes $2,462, $3,026, $3,442, $3,729 and $3,741 in after-tax unrealized gains on available for sale securities for the quarterly periods ended September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014 and September 30, 2014, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(In thousands)
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Three Months Ended |
Year-to-Date |
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Sep 30, 2015 |
Jun 30, 2015 |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
Sep 30, 2015 |
Sep 30, 2014 |
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Income Statement Data |
||||||||||||||||||||||||||||
|
Interest income: |
||||||||||||||||||||||||||||
|
Loans |
$ | 116,911 | $ | 119,404 | $ | 124,878 | $ | 139,396 | $ | 140,521 | $ | 361,193 | $ | 386,320 | ||||||||||||||
|
Securities(C) |
48,610 | 48,530 | 48,562 | 47,108 | 46,910 | 145,702 | 141,636 | |||||||||||||||||||||
|
Federal funds sold and other earning assets |
22 | 47 | 165 | 74 | 35 | 234 | 261 | |||||||||||||||||||||
|
Total interest income |
165,543 | 167,981 | 173,605 | 186,578 | 187,466 | 507,129 | 528,217 | |||||||||||||||||||||
|
Interest expense: |
||||||||||||||||||||||||||||
|
Deposits |
8,753 | 9,169 | 9,577 | 7,326 | 10,240 | 27,499 | 30,545 | |||||||||||||||||||||
|
Other borrowings |
473 | 365 | 129 | 200 | 225 | 967 | 572 | |||||||||||||||||||||
|
Securities sold under repurchase agreements |
209 | 208 | 203 | 202 | 245 | 620 | 736 | |||||||||||||||||||||
|
Junior subordinated debentures |
- | - | 791 | 1,099 | 1,099 | 791 | 2,961 | |||||||||||||||||||||
|
Total interest expense |
9,435 | 9,742 | 10,700 | 8,827 | 11,809 | 29,877 | 34,814 | |||||||||||||||||||||
|
Net interest income |
156,108 | 158,239 | 162,905 | 177,751 | 175,657 | 477,252 | 493,403 | |||||||||||||||||||||
|
Provision for credit losses |
5,310 | 500 | 1,250 | 6,350 | 5,000 | 7,060 | 11,925 | |||||||||||||||||||||
|
Net interest income after provision for credit losses |
150,798 | 157,739 | 161,655 | 171,401 | 170,657 | 470,192 | 481,478 | |||||||||||||||||||||
|
Noninterest income: |
||||||||||||||||||||||||||||
|
Nonsufficient funds (NSF) fees |
9,082 | 8,310 | 7,918 | 9,345 | 9,734 | 25,310 | 27,703 | |||||||||||||||||||||
|
Credit card, debit card and ATM card income |
5,955 | 6,003 | 5,638 | 5,786 | 5,921 | 17,596 | 17,103 | |||||||||||||||||||||
|
Service charges on deposit accounts |
4,438 | 4,189 | 4,179 | 4,263 | 4,255 | 12,806 | 12,189 | |||||||||||||||||||||
|
Trust income |
1,986 | 2,047 | 2,009 | 2,165 | 2,099 | 6,042 | 5,943 | |||||||||||||||||||||
|
Mortgage income |
1,770 | 1,513 | 1,148 | 1,049 | 1,414 | 4,431 | 3,215 | |||||||||||||||||||||
|
Brokerage income |
1,596 | 1,541 | 1,409 | 1,455 | 1,743 | 4,546 | 4,413 | |||||||||||||||||||||
|
Bank owned life insurance income |
1,384 | 1,390 | 1,380 | 1,392 | 1,404 | 4,154 | 3,797 | |||||||||||||||||||||
|
Net gain on sale of assets |
173 | 270 | 1,379 | 24 | 23 | 1,822 | 4,634 | |||||||||||||||||||||
|
Other noninterest income |
5,396 | 5,034 | 3,361 | 3,901 | 3,598 | 13,791 | 12,455 | |||||||||||||||||||||
|
Total noninterest income |
31,780 | 30,297 | 28,421 | 29,380 | 30,191 | 90,498 | 91,452 | |||||||||||||||||||||
|
Noninterest expense: |
||||||||||||||||||||||||||||
|
Salaries and benefits |
46,587 | 47,819 | 49,966 | 49,557 | 52,179 | 144,372 | 149,713 | |||||||||||||||||||||
|
Net occupancy and equipment |
6,088 | 5,812 | 5,964 | 6,620 | 6,801 | 17,864 | 18,136 | |||||||||||||||||||||
|
Debit card, data processing and software amortization |
3,924 | 4,045 | 3,817 | 4,553 | 4,044 | 11,786 | 11,237 | |||||||||||||||||||||
|
Regulatory assessments and FDIC insurance |
3,366 | 4,253 | 4,354 | 4,354 | 4,051 | 11,973 | 10,663 | |||||||||||||||||||||
|
Core deposit intangibles amortization |
2,356 | 2,390 | 2,489 | 2,667 | 2,598 | 7,235 | 7,273 | |||||||||||||||||||||
|
Depreciation |
3,313 | 3,420 | 2,916 | 3,491 | 3,516 | 9,649 | 10,239 | |||||||||||||||||||||
|
Communications |
2,663 | 2,835 | 2,809 | 2,993 | 2,960 | 8,307 | 8,616 | |||||||||||||||||||||
|
Other real estate expense |
123 | 129 | 132 | 363 | 72 | 384 | 656 | |||||||||||||||||||||
|
Net (gain) loss on sale of other real estate |
(68 | ) | (32 | ) | 14 | (726 | ) | 30 | (86 | ) | (1,314 | ) | ||||||||||||||||
|
Other noninterest expense |
8,078 | 9,064 | 7,001 | 10,164 | 9,289 | 24,143 | 28,707 | |||||||||||||||||||||
|
Total noninterest expense |
76,430 | 79,735 | 79,462 | 84,036 | 85,540 | 235,627 | 243,926 | |||||||||||||||||||||
|
Income before income taxes |
106,148 | 108,301 | 110,614 | 116,745 | 115,308 | 325,063 | 329,004 | |||||||||||||||||||||
|
Provision for income taxes |
35,550 | 36,369 | 36,973 | 38,517 | 38,738 | 108,892 | 109,791 | |||||||||||||||||||||
|
Net income available to common shareholders |
$ | 70,598 | $ | 71,932 | $ | 73,641 | $ | 78,228 | $ | 76,570 | $ | 216,171 | $ | 219,213 | ||||||||||||||
(C) Interest income on securities was reduced by net premium amortization of $14,845, $15,466, $14,144, $13,031 and $13,531 for the three month periods ended September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014 and September 30, 2014, respectively, and $44,455 and $38,648 for the nine month periods ended September 30, 2015 and September 30, 2014, respectively.
Prosperity Bancshares, Inc. ®
Financial Highlights (Unaudited)
(Dollars and share amounts in thousands, except per share data and market prices)
|
Three Months Ended |
Year-to-Date |
|||||||||||||||||||||||||||
|
Sep 30, 2015 |
Jun 30, 2015 |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
Sep 30, 2015 |
Sep 30, 2014 |
||||||||||||||||||||||
|
Profitability |
||||||||||||||||||||||||||||
|
Net income |
$ | 70,598 | $ | 71,932 | $ | 73,641 | $ | 78,228 | $ | 76,570 | $ | 216,171 | $ | 219,213 | ||||||||||||||
|
Basic earnings per share |
$ | 1.01 | $ | 1.03 | $ | 1.05 | $ | 1.12 | $ | 1.10 | $ | 3.09 | $ | 3.20 | ||||||||||||||
|
Diluted earnings per share |
$ | 1.01 | $ | 1.03 | $ | 1.05 | $ | 1.12 | $ | 1.10 | $ | 3.09 | $ | 3.19 | ||||||||||||||
|
Return on average assets (D) |
1.30 | % | 1.33 | % | 1.37 | % | 1.48 | % | 1.45 | % | 1.33 | % | 1.44 | % | ||||||||||||||
|
Return on average common equity (D) |
8.31 | % | 8.61 | % | 8.98 | % | 9.70 | % | 9.69 | % | 8.63 | % | 9.67 | % | ||||||||||||||
|
Return on average tangible common equity (D) (E) |
19.30 | % | 20.49 | % | 21.84 | % | 23.87 | % | 24.84 | % | 20.51 | % | 24.38 | % | ||||||||||||||
|
Tax equivalent net interest margin (F) |
3.30 | % | 3.39 | % | 3.57 | % | 3.89 | % | 3.85 | % | 3.42 | % | 3.77 | % | ||||||||||||||
|
Efficiency ratio(G) |
40.72 | % | 42.35 | % | 41.83 | % | 40.78 | % | 41.55 | % | 41.64 | % | 42.17 | % | ||||||||||||||
|
Liquidity and Capital Ratios |
||||||||||||||||||||||||||||
|
Equity to assets |
15.82 | % | 15.48 | % | 15.28 | % | 15.09 | % | 15.07 | % | 15.82 | % | 15.07 | % | ||||||||||||||
|
Common equity tier 1 capital(H) |
13.37 | % | 12.91 | % | 12.40 | % |
N/A |
N/A |
13.37 | % |
N/A |
|||||||||||||||||
|
Tier 1 risk-based capital |
13.37 | % | (1) | 12.91 | % | (1) | 12.40 | % | (1) | 13.80 | % | 13.18 | % | 13.37 | % | (1) | 13.18 | % | ||||||||||
|
Total risk-based capital |
14.09 | % | (1) | 13.63 | % | (1) | 13.14 | % | (1) | 14.56 | % | 13.90 | % | 14.09 | % | (1) | 13.90 | % | ||||||||||
|
Tier 1 leverage capital |
7.65 | % | (1) | 7.35 | % | (1) | 6.96 | % | (1) | 7.69 | % | 7.40 | % | 7.65 | % | (1) | 7.40 | % | ||||||||||
|
Period end tangible equity to period end tangible assets(E) |
7.53 | % | 7.20 | % | 6.93 | % | 6.70 | % | 6.55 | % | 7.53 | % | 6.55 | % | ||||||||||||||
|
Other Data |
||||||||||||||||||||||||||||
|
Shares used in computed earnings per share |
||||||||||||||||||||||||||||
|
Basic |
70,041 | 70,037 | 70,034 | 69,768 | 69,751 | 70,037 | 68,548 | |||||||||||||||||||||
|
Diluted |
70,053 | 70,053 | 70,055 | 69,796 | 69,791 | 70,054 | 68,614 | |||||||||||||||||||||
|
Period end shares outstanding |
70,040 | 70,040 | 70,024 | 69,780 | 69,756 | 70,040 | 69,756 | |||||||||||||||||||||
|
Cash dividends paid per common share |
$ | 0.2725 | $ | 0.2725 | $ | 0.2725 | $ | 0.2725 | $ | 0.2400 | $ | 0.8175 | $ | 0.7200 | ||||||||||||||
|
Book value per share |
$ | 48.70 | $ | 47.93 | $ | 47.15 | $ | 46.50 | $ | 45.63 | $ | 48.70 | $ | 45.63 | ||||||||||||||
|
Tangible book value per share(E) |
$ | 21.10 | $ | 20.29 | $ | 19.47 | $ | 18.80 | $ | 18.01 | $ | 21.10 | $ | 18.01 | ||||||||||||||
|
Common Stock Market Price |
||||||||||||||||||||||||||||
|
High |
$ | 59.97 | $ | 59.30 | $ | 55.88 | $ | 61.15 | $ | 63.73 | $ | 59.97 | $ | 67.68 | ||||||||||||||
|
Low |
43.76 | 50.91 | 45.01 | 52.62 | 55.99 | 43.76 | 55.99 | |||||||||||||||||||||
|
Period end closing price |
49.11 | 57.74 | 52.48 | 55.36 | 57.17 | 49.11 | 57.17 | |||||||||||||||||||||
|
Employees – FTE |
3,051 | 3,065 | 3,081 | 3,096 | 3,057 | 3,051 | 3,057 | |||||||||||||||||||||
|
Number of banking centers |
244 | 245 | 244 | 245 | 245 | 244 | 245 | |||||||||||||||||||||
(D) Interim periods annualized.
(E) Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure.
(F) Net interest margin for all periods presented is calculated on an actual 365 day basis.
(G) 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 of assets. Additionally, taxes are not part of this calculation.
(H) Common equity tier 1 capital ratio is a new ratio required under the Basel III Capital Rules effective January 1, 2015.
(I) Calculated pursuant to the phase-in provisions of the Basel III Capital Rules.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
|
YIELD ANALYSIS |
Three Months Ended |
||||||||||||||||||||||||||||||||||||
|
Sep 30, 2015 |
Jun 30, 2015 |
Sep 30, 2014 |
|||||||||||||||||||||||||||||||||||
|
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 |
$ | 9,156,679 | $ | 116,911 | 5.07 | % | $ | 9,133,625 | $ | 119,404 | 5.24 | % | $ | 9,381,248 | $ | 140,521 | 5.94 | % | |||||||||||||||||||
|
Investment securities |
9,706,373 | 48,610 | 1.99 | % | (J) | 9,688,961 | 48,530 | 2.01 | % | (J) | 8,836,309 | 46,910 | 2.11 | % | (J) | ||||||||||||||||||||||
|
Federal funds sold and other earning assets |
55,000 | 22 | 0.16 | % | 79,659 | 47 | 0.24 | % | 95,378 | 35 | 0.15 | % | |||||||||||||||||||||||||
|
Total interest-earning assets |
18,918,052 | $ | 165,543 | 3.47 | % | 18,902,245 | $ | 167,981 | 3.56 | % | 18,312,935 | $ | 187,466 | 4.06 | % | ||||||||||||||||||||||
|
Allowance for credit losses |
(80,793 | ) | (80,868 | ) | (73,977 | ) | |||||||||||||||||||||||||||||||
|
Noninterest-earning assets |
2,819,150 | 2,817,644 | 2,881,762 | ||||||||||||||||||||||||||||||||||
|
Total assets |
$ | 21,656,409 | $ | 21,639,021 | $ | 21,120,720 | |||||||||||||||||||||||||||||||
|
Interest-Bearing Liabilities: |
|||||||||||||||||||||||||||||||||||||
|
Interest-bearing demand deposits |
$ | 3,663,114 | $ | 1,961 | 0.21 | % | $ | 3,891,682 | $ | 2,227 | 0.23 | % | $ | 3,399,655 | $ | 2,089 | 0.24 | % | |||||||||||||||||||
|
Savings and money market deposits |
5,492,326 | 3,392 | 0.24 | % | 5,476,931 | 3,374 | 0.25 | % | 5,502,326 | 3,400 | 0.25 | % | |||||||||||||||||||||||||
|
Certificates and other time deposits |
2,685,346 | 3,400 | 0.50 | % | 2,821,058 | 3,568 | 0.51 | % | 3,235,185 | 4,751 | 0.58 | % | |||||||||||||||||||||||||
|
Other borrowings |
886,787 | 473 | 0.21 | % | 684,371 | 365 | 0.21 | % | 215,222 | 225 | 0.42 | % | |||||||||||||||||||||||||
|
Securities sold under repurchase agreements |
331,286 | 209 | 0.25 | % | 333,220 | 208 | 0.25 | % | 389,726 | 245 | 0.25 | % | |||||||||||||||||||||||||
|
Junior subordinated debentures |
— | — | — | — | — | — | 167,531 | 1,099 | 2.60 | % | |||||||||||||||||||||||||||
|
Total interest-bearing liabilities |
13,058,859 | 9,435 | 0.29 | % | (K) | 13,207,262 | 9,742 | 0.30 | % | (K) | 12,909,645 | 11,809 | 0.36 | % | (K) | ||||||||||||||||||||||
|
Noninterest-bearing liabilities: |
|||||||||||||||||||||||||||||||||||||
|
Noninterest-bearing demand deposits |
5,078,234 | 4,992,301 | 4,939,388 | ||||||||||||||||||||||||||||||||||
|
Other liabilities |
121,360 | 98,133 | 109,287 | ||||||||||||||||||||||||||||||||||
|
Total liabilities |
18,258,453 | 18,297,696 | 17,958,320 | ||||||||||||||||||||||||||||||||||
|
Shareholders' equity |
3,397,956 | 3,341,325 | 3,162,400 | ||||||||||||||||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ | 21,656,409 | $ | 21,639,021 | $ | 21,120,720 | |||||||||||||||||||||||||||||||
|
Net interest income and margin |
$ | 156,108 | 3.27 | % | $ | 158,239 | 3.36 | % | $ | 175,657 | 3.81 | % | |||||||||||||||||||||||||
|
Non-GAAP to GAAP reconciliation: |
|||||||||||||||||||||||||||||||||||||
|
Tax equivalent adjustment |
1,463 | 1,563 | 1,997 | ||||||||||||||||||||||||||||||||||
|
Net interest income and margin (tax equivalent basis) |
$ | 157,571 | 3.30 | % | $ | 159,802 | 3.39 | % | $ | 177,654 | 3.85 | % | |||||||||||||||||||||||||
(J) Yield on securities was impacted by net premium amortization of $14,845, $15,466 and $13,531 for the three month periods ended September 30, 2015, June 30, 2015 and Septbember 30, 2014, respectively.
(K) Total cost of funds, including noninterest bearing deposits, was 0.21%, 0.21% and 0.26% for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively.
(L) Annualized and based on an actual/365 day basis.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
|
YIELD ANALYSIS |
Year-to-Date |
||||||||||||||||||||||||
|
September 30, 2015 |
September 30, 2014 |
||||||||||||||||||||||||
|
Average Balance |
Interest Earned/ Interest Paid |
Average Yield/ Rate |
(O) |
Average Balance |
Interest Earned/ Interest Paid |
Average Yield/ Rate |
(O) | ||||||||||||||||||
|
Interest-Earning Assets: |
|||||||||||||||||||||||||
|
Loans |
$ | 9,159,775 | $ | 361,193 | 5.27 | % | $ | 8,874,414 | $ | 386,320 | 5.82 | % | |||||||||||||
|
Investment securities |
9,547,293 | 145,702 | 2.04 | % | (M) | 8,685,212 | 141,636 | 2.18 | % | (M) | |||||||||||||||
|
Federal funds sold and other earning assets |
133,331 | 234 | 0.23 | % | 143,770 | 261 | 0.24 | % | |||||||||||||||||
|
Total interest-earning assets |
18,840,399 | $ | 507,129 | 3.60 | % | 17,703,396 | $ | 528,217 | 3.99 | % | |||||||||||||||
|
Allowance for credit losses |
(80,781 | ) | (71,287 | ) | |||||||||||||||||||||
|
Noninterest-earning assets |
2,835,450 | 2,791,827 | |||||||||||||||||||||||
|
Total assets |
$ | 21,595,068 | $ | 20,423,936 | |||||||||||||||||||||
|
Interest-Bearing Liabilities: |
|||||||||||||||||||||||||
|
Interest-bearing demand deposits |
$ | 3,909,337 | $ | 6,771 | 0.23 | % | $ | 3,506,932 | $ | 6,493 | 0.25 | % | |||||||||||||
|
Savings and money market deposits |
5,503,597 | 10,171 | 0.25 | % | 5,326,783 | 10,105 | 0.25 | % | |||||||||||||||||
|
Certificates and other time deposits |
2,819,822 | 10,557 | 0.50 | % | 3,145,435 | 13,947 | 0.59 | % | |||||||||||||||||
|
Other borrowings |
550,743 | 967 | 0.23 | % | 136,618 | 571 | 0.56 | % | |||||||||||||||||
|
Securities sold under repurchase agreements |
334,958 | 620 | 0.25 | % | 373,542 | 737 | 0.26 | % | |||||||||||||||||
|
Junior subordinated debentures |
39,365 | 791 | 2.69 | % | 150,692 | 2,961 | 2.63 | % | |||||||||||||||||
|
Total interest-bearing liabilities |
13,157,822 | 29,877 | 0.30 | % | (N) | 12,640,002 | 34,814 | 0.37 | % | (N) | |||||||||||||||
|
Noninterest-bearing liabilities: |
|||||||||||||||||||||||||
|
Noninterest-bearing demand deposits |
4,990,769 | 4,567,397 | |||||||||||||||||||||||
|
Other liabilities |
106,782 | 185,838 | |||||||||||||||||||||||
|
Total liabilities |
18,255,373 | 17,393,237 | |||||||||||||||||||||||
|
Shareholders' equity |
3,339,695 | 3,030,699 | |||||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ | 21,595,068 | $ | 20,423,936 | |||||||||||||||||||||
|
Net interest income and margin |
$ | 477,252 | 3.39 | % | $ | 493,403 | 3.73 | % | |||||||||||||||||
|
Non-GAAP to GAAP reconciliation: |
|||||||||||||||||||||||||
|
Tax equivalent adjustment |
4,690 | 6,132 | |||||||||||||||||||||||
|
Net interest income and margin (tax equivalent basis) |
$ | 481,942 | 3.42 | % | $ | 499,535 | 3.77 | % | |||||||||||||||||
(M) Yield on securities was impacted by net premium amortization of $44,455 and $38,648 for the nine month periods ended September 30, 2015 and 2014, respectively.
(N) Total cost of funds, including noninterest bearing deposits, was 0.22% and 0.27% for the nine month periods ended September 30, 2015 and 2014, respectively.
(O) Annualized and based on an actual/365 day basis.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands, except per share data)
|
Three Months Ended |
Year -to-Date |
|||||||||||||||||||||||||||
|
Sep 30, 2015 |
Jun 30, 2015 |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
Sep 30, 2015 |
Sep 30, 2014 |
||||||||||||||||||||||
|
Adjustment to Loan Yield (P) |
||||||||||||||||||||||||||||
|
Interest on loans, as reported |
$ | 116,911 | $ | 119,404 | $ | 124,878 | $ | 139,396 | $ | 140,521 | $ | 361,193 | $ | 386,320 | ||||||||||||||
|
Purchase accounting adjustment- loan discount accretion |
||||||||||||||||||||||||||||
|
ASC 310-20 |
(7,060 | ) | (10,388 | ) | (10,714 | ) | (14,857 | ) | (19,122 | ) | (28,162 | ) | (50,789 | ) | ||||||||||||||
|
ASC 310-30 |
(3,974 | ) | (3,214 | ) | (8,933 | ) | (13,733 | ) | (9,336 | ) | (16,121 | ) | (16,496 | ) | ||||||||||||||
|
Total |
(11,034 | ) | (13,602 | ) | (19,647 | ) | (28,590 | ) | (28,458 | ) | (44,283 | ) | (67,285 | ) | ||||||||||||||
|
Interest on loans excluding discount accretion |
$ | 105,877 | $ | 105,802 | $ | 105,231 | $ | 110,806 | $ | 112,063 | $ | 316,910 | $ | 319,035 | ||||||||||||||
|
Average loans |
$ | 9,156,679 | $ | 9,133,625 | $ | 9,189,380 | $ | 9,325,330 | $ | 9,381,248 | $ | 9,159,775 | $ | 8,874,414 | ||||||||||||||
|
Loan yield excluding purchase accounting adjustment |
4.59 | % | 4.65 | % | 4.64 | % | 4.71 | % | 4.74 | % | 4.63 | % | 4.81 | % | ||||||||||||||
|
Loan yield, as reported |
5.07 | % | 5.24 | % | 5.51 | % | 5.93 | % | 5.94 | % | 5.27 | % | 5.82 | % | ||||||||||||||
|
Adjustment to Securities Yield (P) |
||||||||||||||||||||||||||||
|
Interest on securities, as reported |
$ | 48,610 | $ | 48,530 | $ | 48,562 | $ | 47,108 | $ | 46,910 | $ | 145,702 | $ | 141,636 | ||||||||||||||
|
Purchase accounting adjustment- securities amortization |
1,565 | 1,579 | 1,647 | 1,590 | 1,466 | 4,791 | 5,000 | |||||||||||||||||||||
|
Interest on securities excluding amortization |
$ | 50,175 | $ | 50,109 | $ | 50,209 | $ | 48,698 | $ | 48,376 | $ | 150,493 | $ | 146,636 | ||||||||||||||
|
Average securities |
$ | 9,706,373 | $ | 9,688,961 | $ | 9,241,434 | $ | 8,835,176 | $ | 8,836,309 | $ | 9,547,293 | $ | 8,685,212 | ||||||||||||||
|
Securities yield excluding purchase accounting adjustment |
2.05 | % | 2.07 | % | 2.20 | % | 2.19 | % | 2.17 | % | 2.11 | % | 2.26 | % | ||||||||||||||
|
Securities yield, as reported |
1.99 | % | 2.01 | % | 2.13 | % | 2.12 | % | 2.11 | % | 2.04 | % | 2.18 | % | ||||||||||||||
|
Adjustment to Time Deposits Yield (P) |
||||||||||||||||||||||||||||
|
Interest on time deposits, as reported |
$ | 3,400 | $ | 3,568 | $ | 3,589 | $ | 1,957 | $ | 4,751 | $ | 10,557 | $ | 13,947 | ||||||||||||||
|
Purchase accounting adjustment- time deposit amortization |
220 | 220 | 420 | 2,443 | 16 | 860 | 113 | |||||||||||||||||||||
|
Interest on time deposits excluding amortization |
$ | 3,620 | $ | 3,788 | $ | 4,009 | $ | 4,400 | $ | 4,767 | $ | 11,417 | $ | 14,060 | ||||||||||||||
|
Average time deposits |
$ | 2,685,346 | $ | 2,821,058 | $ | 2,956,038 | $ | 3,083,047 | $ | 3,235,185 | $ | 2,819,822 | $ | 3,145,435 | ||||||||||||||
|
Time deposits yield excluding purchase accounting adjustment |
0.53 | % | 0.54 | % | 0.55 | % | 0.57 | % | 0.58 | % | 0.54 | % | 0.60 | % | ||||||||||||||
|
Time deposits yield, as reported |
0.50 | % | 0.51 | % | 0.49 | % | 0.25 | % | 0.58 | % | 0.50 | % | 0.59 | % | ||||||||||||||
|
Net Interest Margin (tax equivalent basis, excluding purchase accounting adjustments to yield) |
3.10 | % | 3.13 | % | 3.17 | % | 3.25 | % | 3.26 | % | 3.13 | % | 3.30 | % | ||||||||||||||
|
Net Interest Margin (tax equivalent basis), as reported |
3.30 | % | 3.39 | % | 3.57 | % | 3.89 | % | 3.85 | % | 3.42 | % | 3.77 | % | ||||||||||||||
|
Net income available to common shareholders, as reported |
$ | 70,598 | $ | 71,932 | $ | 73,641 | $ | 78,228 | $ | 76,570 | $ | 216,171 | $ | 219,213 | ||||||||||||||
|
Less: Purchase accounting adjustments, net of tax (Q) |
(6,444 | ) | (8,132 | ) | (12,263 | ) | (19,729 | ) | (17,935 | ) | (26,839 | ) | (41,575 | ) | ||||||||||||||
|
Net income available to common shareholders, excluding |
$ | 64,154 | $ | 63,800 | $ | 61,378 | $ | 58,499 | $ | 58,635 | $ | 189,332 | $ | 177,638 | ||||||||||||||
|
purchase accounting adjustments |
||||||||||||||||||||||||||||
|
Basic earnings per share, excluding purchase accounting adjusments (P) |
$ | 0.92 | $ | 0.91 | $ | 0.88 | $ | 0.84 | $ | 0.84 | $ | 2.71 | $ | 2.59 | ||||||||||||||
|
Diluted earnings per share, excluding purchase accounting adjustments (P) |
$ | 0.92 | $ | 0.91 | $ | 0.88 | $ | 0.84 | $ | 0.84 | $ | 2.71 | $ | 2.59 | ||||||||||||||
|
Acquired Loans Accounted for Under ASC 310-20 |
Acquired Loans Accounted for Under ASC 310-30 |
Total Loans Accounted for Under ASC 310-20 and 310-30 |
||||||||||||||||||||||||||||||||||
|
Balance at Acquisition Date |
Balance at Jun 30, 2015 |
Balance at Sep 30, 2015 |
Balance at Acquisition Date |
Balance at Jun 30, 2015 |
Balance at Sep 30, 2015 |
Balance at Acquisition Date |
Balance at Jun 30, 2015 |
Balance at Sep 30, 2015 |
||||||||||||||||||||||||||||
|
Loan marks: |
||||||||||||||||||||||||||||||||||||
|
Acquired banks (R) |
$ | 225,589 | $ | 67,895 | $ | 60,819 | $ | 131,906 | $ | 48,277 | $ | 41,814 | $ | 357,495 | $ | 116,172 | $ | 102,633 | ||||||||||||||||||
|
Acquired portfolio loan balances: |
||||||||||||||||||||||||||||||||||||
|
Acquired banks (R) |
5,456,934 | 1,727,123 | 1,560,730 | 255,846 | 94,601 | 83,272 | 5,712,780 | (S) | 1,821,724 | 1,644,002 | ||||||||||||||||||||||||||
|
Acquired portfolio loan balances less loan marks |
$ | 5,231,345 | $ | 1,659,228 | $ | 1,499,911 | $ | 123,940 | $ | 46,324 | $ | 41,458 | $ | 5,355,285 | $ | 1,705,552 | $ | 1,541,369 | ||||||||||||||||||
(P) Non-GAAP financial measure.
(Q) Using effective tax rate of 33.5%, 33.6%, 33.4%, 33.0% and 33.6% for the three month periods ended September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014 and September 30, 2014, respectively, and 33.5% and 33.4% for the nine month periods ended September 30, 2015 and 2014, respectively.
(R) Includes Bank of Texas, Bank Arlington, American State Bank, Community National Bank, First Federal Bank Texas, Coppermark Bank, First Victoria National Bank and F&M Bank.
(S) Actual principal balances acquired.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
|
Three Months Ended |
||||||||||||||||||||
|
Sep 30, 2015 |
Jun 30, 2015 |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
||||||||||||||||
|
YIELD TREND |
||||||||||||||||||||
|
Interest-Earning Assets: |
||||||||||||||||||||
|
Loans |
5.07 | % | 5.24 | % | 5.51 | % | 5.93 | % | 5.94 | % | ||||||||||
|
Investment securities (T) |
1.99 | % | 2.01 | % | 2.13 | % | 2.12 | % | 2.11 | % | ||||||||||
|
Federal funds sold and other earning assets |
0.16 | % | 0.24 | % | 0.25 | % | 0.20 | % | 0.15 | % | ||||||||||
|
Total interest-earning assets |
3.47 | % | 3.56 | % | 3.77 | % | 4.04 | % | 4.06 | % | ||||||||||
|
Interest-Bearing Liabilities: |
||||||||||||||||||||
|
Interest-bearing demand deposits |
0.21 | % | 0.23 | % | 0.25 | % | 0.23 | % | 0.24 | % | ||||||||||
|
Savings and money market deposits |
0.24 | % | 0.25 | % | 0.25 | % | 0.24 | % | 0.25 | % | ||||||||||
|
Certificates and other time deposits |
0.50 | % | 0.51 | % | 0.49 | % | 0.25 | % | 0.58 | % | ||||||||||
|
Other borrowings |
0.21 | % | 0.21 | % | 0.73 | % | 0.47 | % | 0.42 | % | ||||||||||
|
Securities sold under repurchase agreements |
0.25 | % | 0.25 | % | 0.24 | % | 0.25 | % | 0.25 | % | ||||||||||
|
Junior subordinated debentures |
— | — | 2.69 | % | 2.60 | % | 2.60 | % | ||||||||||||
|
Total interest-bearing liabilities |
0.29 | % | 0.30 | % | 0.33 | % | 0.28 | % | 0.36 | % | ||||||||||
|
Net Interest Margin |
3.27 | % | 3.36 | % | 3.53 | % | 3.85 | % | 3.81 | % | ||||||||||
|
Net Interest Margin (tax equivalent) |
3.30 | % | 3.39 | % | 3.57 | % | 3.89 | % | 3.85 | % | ||||||||||
(T) Yield on securities was impacted by net premium amortization of $14,845, $15,466, $14,144, $13,031 and $13,531 for the three month periods ended September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014 and September 30, 2014, respectively.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
|
Three Months Ended |
||||||||||||||||||||
|
Sep 30, 2015 |
Jun 30, 2015 |
March 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
||||||||||||||||
|
Balance Sheet Averages |
||||||||||||||||||||
|
Total loans |
$ | 9,156,679 | $ | 9,133,625 | $ | 9,189,380 | $ | 9,325,330 | $ | 9,381,248 | ||||||||||
|
Investment securities |
9,706,373 | 9,688,961 | 9,241,434 | 8,835,176 | 8,836,309 | |||||||||||||||
|
Federal funds sold and other earning assets |
55,000 | 79,659 | 267,672 | 143,705 | 95,378 | |||||||||||||||
|
Total interest-earning assets |
18,918,052 | 18,902,245 | 18,698,486 | 18,304,211 | 18,312,935 | |||||||||||||||
|
Allowance for credit losses |
(80,793 | ) | (80,868 | ) | (80,681 | ) | (76,948 | ) | (73,977 | ) | ||||||||||
|
Cash and due from banks |
237,191 | 241,110 | 284,395 | 273,503 | 267,389 | |||||||||||||||
|
Goodwill |
1,881,955 | 1,881,955 | 1,874,274 | 1,883,654 | 1,893,667 | |||||||||||||||
|
Core deposit intangibles, net |
52,909 | 55,245 | 57,687 | 43,157 | 35,753 | |||||||||||||||
|
Other real estate |
3,096 | 2,972 | 3,536 | 4,843 | 5,405 | |||||||||||||||
|
Fixed assets, net |
273,818 | 276,761 | 280,515 | 282,827 | 285,039 | |||||||||||||||
|
Other assets |
370,181 | 359,601 | 371,295 | 395,045 | 394,509 | |||||||||||||||
|
Total assets |
$ | 21,656,409 | $ | 21,639,021 | $ | 21,489,507 | $ | 21,110,292 | $ | 21,120,720 | ||||||||||
|
Noninterest-bearing deposits |
$ | 5,078,234 | $ | 4,992,301 | $ | 4,899,279 | $ | 5,045,097 | $ | 4,939,388 | ||||||||||
|
Interest-bearing demand deposits |
3,663,114 | 3,891,682 | 4,178,883 | 3,546,825 | 3,399,655 | |||||||||||||||
|
Savings and money market deposits |
5,492,326 | 5,476,931 | 5,542,081 | 5,442,568 | 5,502,326 | |||||||||||||||
|
Certificates and other time deposits |
2,685,346 | 2,821,058 | 2,956,038 | 3,083,047 | 3,235,185 | |||||||||||||||
|
Total deposits |
16,919,020 | 17,181,972 | 17,576,281 | 17,117,537 | 17,076,554 | |||||||||||||||
|
Other borrowings |
886,787 | 684,371 | 72,118 | 168,167 | 215,222 | |||||||||||||||
|
Securities sold under repurchase agreements |
331,286 | 333,220 | 340,469 | 323,882 | 389,726 | |||||||||||||||
|
Junior subordinated debentures |
- | - | 119,408 | 167,531 | 167,531 | |||||||||||||||
|
Other liabilities |
121,360 | 98,133 | 100,648 | 106,222 | 109,287 | |||||||||||||||
|
Shareholders' equity |
3,397,956 | 3,341,325 | 3,280,583 | 3,226,953 | 3,162,400 | |||||||||||||||
|
Total liabilities and equity |
$ | 21,656,409 | $ | 21,639,021 | $ | 21,489,507 | $ | 21,110,292 | $ | 21,120,720 | ||||||||||
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
|
Sep 30, 2015 |
Jun 30, 2015 |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
||||||||||||||||||||||||||||||||||||
|
Period End Balances |
||||||||||||||||||||||||||||||||||||||||
|
Loan Portfolio |
||||||||||||||||||||||||||||||||||||||||
|
Commercial and other |
$ | 1,777,913 | 19.3 | % | $ | 1,774,652 | 19.5 | % | $ | 1,851,906 | 20.2 | % | $ | 1,952,945 | 21.1 | % | $ | 2,058,217 | 22.0 | % | ||||||||||||||||||||
|
Construction |
1,072,985 | 11.7 | % | 1,068,056 | 11.7 | % | 1,040,845 | 11.3 | % | 1,026,475 | 11.1 | % | 1,041,300 | 11.1 | % | |||||||||||||||||||||||||
|
1-4 family residential |
2,318,841 | 25.2 | % | 2,289,114 | 25.1 | % | 2,272,788 | 24.8 | % | 2,250,251 | 24.4 | % | 2,210,141 | 23.6 | % | |||||||||||||||||||||||||
|
Home equity |
277,744 | 3.0 | % | 273,538 | 3.0 | % | 269,894 | 2.9 | % | 271,930 | 2.9 | % | 269,850 | 2.9 | % | |||||||||||||||||||||||||
|
Commercial real estate |
2,992,726 | 32.5 | % | 2,958,239 | 32.5 | % | 3,021,656 | 33.0 | % | 3,030,340 | 32.8 | % | 3,091,090 | 33.0 | % | |||||||||||||||||||||||||
|
Agriculture (includes farmland) |
618,563 | 6.7 | % | 600,745 | 6.6 | % | 556,839 | 6.1 | % | 551,646 | 6.0 | % | 534,672 | 5.7 | % | |||||||||||||||||||||||||
|
Consumer |
146,216 | 1.6 | % | 149,991 | 1.6 | % | 152,077 | 1.7 | % | 160,596 | 1.7 | % | 163,618 | 1.7 | % | |||||||||||||||||||||||||
|
Total loans |
$ | 9,204,988 | $ | 9,114,335 | $ | 9,166,005 | $ | 9,244,183 | $ | 9,368,888 | ||||||||||||||||||||||||||||||
|
Deposit Types |
||||||||||||||||||||||||||||||||||||||||
|
Noninterest-bearing DDA |
$ | 5,093,175 | 30.1 | % | $ | 5,040,628 | 29.7 | % | $ | 5,038,436 | 28.7 | % | $ | 4,936,420 | 27.9 | % | $ | 4,968,867 | 29.2 | % | ||||||||||||||||||||
|
Interest-bearing DDA |
3,604,798 | 21.3 | % | 3,746,939 | 22.0 | % | 4,038,690 | 23.0 | % | 4,260,038 | 24.1 | % | 3,359,606 | 19.7 | % | |||||||||||||||||||||||||
|
Money market |
3,716,094 | 21.9 | % | 3,607,000 | 21.2 | % | 3,773,011 | 21.5 | % | 3,680,711 | 20.8 | % | 3,788,358 | 22.3 | % | |||||||||||||||||||||||||
|
Savings |
1,896,725 | 11.2 | % | 1,853,322 | 10.9 | % | 1,828,790 | 10.4 | % | 1,784,889 | 10.1 | % | 1,728,676 | 10.2 | % | |||||||||||||||||||||||||
|
Certificates and other time deposits |
2,629,145 | 15.5 | % | 2,753,775 | 16.2 | % | 2,882,425 | 16.4 | % | 3,031,100 | 17.1 | % | 3,168,520 | 18.6 | % | |||||||||||||||||||||||||
|
Total deposits |
$ | 16,939,937 | $ | 17,001,664 | $ | 17,561,352 | $ | 17,693,158 | $ | 17,014,027 | ||||||||||||||||||||||||||||||
|
Loan to Deposit Ratio |
54.3 | % | 53.6 | % | 52.2 | % | 52.2 | % | 55.1 | % | ||||||||||||||||||||||||||||||
|
Construction Loans |
||||||||||||||||||||||||||||||||||||||||
|
Single family residential construction |
$ | 351,169 | 32.6 | % | $ | 354,211 | 33.0 | % | $ | 356,081 | 34.1 | % | $ | 329,797 | 32.0 | % | $ | 317,307 | 30.3 | % | ||||||||||||||||||||
|
Land development |
84,040 | 7.8 | % | 84,864 | 7.9 | % | 89,403 | 8.5 | % | 84,051 | 8.2 | % | 89,553 | 8.5 | % | |||||||||||||||||||||||||
|
Raw land |
143,955 | 13.4 | % | 145,885 | 13.6 | % | 129,470 | 12.4 | % | 106,058 | 10.3 | % | 83,013 | 7.9 | % | |||||||||||||||||||||||||
|
Residential lots |
131,793 | 12.3 | % | 127,671 | 11.9 | % | 128,064 | 12.2 | % | 148,763 | 14.4 | % | 154,027 | 14.7 | % | |||||||||||||||||||||||||
|
Commercial lots |
84,162 | 7.8 | % | 87,719 | 8.2 | % | 92,677 | 8.9 | % | 89,565 | 8.7 | % | 86,991 | 8.3 | % | |||||||||||||||||||||||||
|
Commercial construction and other |
281,231 | 26.1 | % | 271,833 | 25.4 | % | 249,504 | 23.9 | % | 272,723 | 26.4 | % | 317,355 | 30.3 | % | |||||||||||||||||||||||||
|
Net unaccreted discount |
(3,365 | ) | (4,127 | ) | (4,354 | ) | (4,482 | ) | (6,946 | ) | ||||||||||||||||||||||||||||||
|
Total construction loans |
$ | 1,072,985 | $ | 1,068,056 | $ | 1,040,845 | $ | 1,026,475 | $ | 1,041,300 | ||||||||||||||||||||||||||||||
Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of September 30, 2015
|
Collateral Type |
Houston |
Dallas |
Austin |
OK City |
Tulsa |
Other (U) |
Total |
|||||||||||||||||||||
|
Shopping center/retail |
$ | 157,691 | $ | 44,184 | $ | 28,052 | $ | 30,832 | $ | 23,457 | $ | 121,723 | $ | 405,939 | ||||||||||||||
|
Commercial & industrial buildings |
71,677 | 31,081 | 6,804 | 8,222 | 10,086 | 59,040 | 186,910 | |||||||||||||||||||||
|
Office buildings |
55,497 | 78,774 | 21,391 | 25,228 | 9,822 | 72,527 | 263,239 | |||||||||||||||||||||
|
Medical buildings |
48,978 | 8,060 | 58 | 9,792 | 8,413 | 52,647 | 127,948 | |||||||||||||||||||||
|
Apartment buildings |
41,254 | 9,230 | 14,554 | 16,968 | 8,605 | 99,900 | 190,511 | |||||||||||||||||||||
|
Hotel |
22,303 | 27,400 | 9,595 | 25,248 | - | 85,143 | 169,689 | |||||||||||||||||||||
|
Other |
85,952 | 10,272 | 15,697 | 8,189 | 10,897 | 85,585 | 216,592 | |||||||||||||||||||||
|
Total |
$ | 483,352 | $ | 209,001 | $ | 96,151 | $ | 124,479 | $ | 71,280 | $ | 576,565 | $ | 1,560,828 | (V) | |||||||||||||
(U) Includes other MSA and non-MSA regions.
(V) Represents a portion of total commercial real estate loans of $2.993 billion as of September 30, 2015.
Prosperity Bancshares, Inc.®
Financial Highlights (Unaudited)
(Dollars in thousands)
|
Three Months Ended |
Year-to-Date |
|||||||||||||||||||||||||||
|
Sep 30, 2015 |
Jun 30, 2015 |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
Sep 30, 2015 |
Sep 30, 2014 |
||||||||||||||||||||||
|
Asset Quality |
||||||||||||||||||||||||||||
|
Nonaccrual loans |
$ | 44,935 | $ | 31,987 | $ | 29,252 | $ | 31,422 | $ | 26,804 | $ | 44,935 | $ | 26,804 | ||||||||||||||
|
Accruing loans 90 or more days past due |
261 | 153 | 2,968 | 2,193 | 17,753 | 261 | 17,753 | |||||||||||||||||||||
|
Total nonperforming loans |
45,196 | 32,140 | 32,220 | 33,615 | 44,557 | 45,196 | 44,557 | |||||||||||||||||||||
|
Repossessed assets |
161 | 173 | 146 | 67 | 21 | 161 | 21 | |||||||||||||||||||||
|
Other real estate |
3,271 | 2,806 | 3,010 | 3,237 | 5,504 | 3,271 | 5,504 | |||||||||||||||||||||
|
Total nonperforming assets |
$ | 48,628 | $ | 35,119 | $ | 35,376 | $ | 36,919 | $ | 50,082 | $ | 48,628 | $ | 50,082 | ||||||||||||||
|
Nonperforming assets: |
||||||||||||||||||||||||||||
|
Commercial and industrial |
$ | 26,200 | $ | 20,295 | $ | 16,830 | $ | 21,418 | $ | 26,172 | $ | 26,200 | $ | 26,172 | ||||||||||||||
|
Construction, land development and other land loans |
475 | 813 | 3,023 | 1,893 | 5,998 | 475 | 5,998 | |||||||||||||||||||||
|
1-4 family residential (including home equity) |
4,766 | 5,124 | 5,087 | 5,232 | 7,559 | 4,766 | 7,559 | |||||||||||||||||||||
|
Commercial real estate (including multi-family residential) |
16,485 | 7,939 | 9,736 | 6,695 | 9,686 | 16,485 | 9,686 | |||||||||||||||||||||
|
Agriculture (including farmland) |
376 | 605 | 281 | 473 | 182 | 376 | 182 | |||||||||||||||||||||
|
Consumer and other |
326 | 343 | 419 | 1,208 | 485 | 326 | 485 | |||||||||||||||||||||
|
Total |
$ | 48,628 | $ | 35,119 | $ | 35,376 | $ | 36,919 | $ | 50,082 | $ | 48,628 | $ | 50,082 | ||||||||||||||
|
Number of loans/properties |
159 | 161 | 166 | 169 | 194 | 159 | 194 | |||||||||||||||||||||
|
Allowance for credit losses at end of period |
$ | 81,003 | $ | 80,972 | $ | 80,963 | $ | 80,762 | $ | 77,613 | $ | 81,003 | $ | 77,613 | ||||||||||||||
|
Net charge-offs: |
||||||||||||||||||||||||||||
|
Commercial and industrial |
$ | 4,426 | $ | (28 | ) | $ | 504 | $ | 318 | $ | 17 | 4,902 | $ | 34 | ||||||||||||||
|
Construction, land development and other land loans |
173 | (2 | ) | 145 | (1 | ) | (28 | ) | 316 | 70 | ||||||||||||||||||
|
1-4 family residential (including home equity) |
110 | 12 | 86 | 420 | 70 | 208 | 607 | |||||||||||||||||||||
|
Commercial real estate (including multi-family residential) |
53 | 114 | 33 | 1,732 | (6 | ) | 200 | 59 | ||||||||||||||||||||
|
Agriculture (including farmland) |
(40 | ) | (65 | ) | (78 | ) | (13 | ) | (53 | ) | (183 | ) | (977 | ) | ||||||||||||||
|
Consumer and other |
557 | 460 | 359 | 745 | 653 | 1,376 | 1,801 | |||||||||||||||||||||
|
Total |
$ | 5,279 | $ | 491 | $ | 1,049 | $ | 3,201 | $ | 653 | $ | 6,819 | $ | 1,594 | ||||||||||||||
|
Asset Quality Ratios |
||||||||||||||||||||||||||||
|
Nonperforming assets to average earning assets |
0.26 | % | 0.19 | % | 0.19 | % | 0.20 | % | 0.27 | % | 0.26 | % | 0.28 | % | ||||||||||||||
|
Nonperforming assets to loans and other real estate |
0.53 | % | 0.39 | % | 0.39 | % | 0.40 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||||||
|
Net charge-offs to average loans (annualized) |
0.23 | % | 0.02 | % | 0.05 | % | 0.14 | % | 0.03 | % | 0.10 | % | 0.02 | % | ||||||||||||||
|
Allowance for credit losses to total loans |
0.88 | % | 0.89 | % | 0.88 | % | 0.87 | % | 0.83 | % | 0.88 | % | 0.83 | % | ||||||||||||||
|
Allowance for credit losses to total loans (excluding acquired loans accounted for under ASC Topics 310-20 and 310-30) (E) |
1.06 | % | 1.09 | % | 1.12 | % | 1.14 | % | 1.14 | % | 1.06 | % | 1.14 | % | ||||||||||||||
Prosperity Bancshares, Inc.®
Notes to Selected Financial Data (Unaudited)
(Dollars and share amounts in thousands, except per share data)
Consolidated Financial Highlights
NOTES TO SELECTED FINANCIAL DATA
Prosperity’s management uses certain non−GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Specifically, Prosperity reviews tangible book value per share, return on average tangible common equity and the tangible equity to tangible assets ratio for internal planning and forecasting purposes. In addition, due to the application of purchase accounting, Prosperity uses certain non-GAAP measures and ratios that exclude the impact of these items to evaluate its net income and earnings per share (each excluding purchase accounting adjustments) and its allowance for credit losses to total loans (excluding acquired loans accounted for under ASC Topics 310-20 and 310-30). Prosperity has included information below and on page 12 of this Earnings Release relating to these non-GAAP financial measures for the applicable periods presented. Prosperity believes these non-GAAP financial measures provide information useful to investors in understanding Prosperity’s financial results and Prosperity believes that its presentation, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting Prosperity’s business and allows investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. Further, Prosperity believes that these non-GAAP measures provide useful information by excluding certain items that may not be indicative of its core operating earnings and business outlook. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Prosperity strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
|
Three Months Ended |
Year-to-Date |
|||||||||||||||||||||||||||
|
Sep 30, 2015 |
Jun 30, 2015 |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
Sep 30, 2015 |
Sep 30, 2014 |
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|
Return on average tangible common equity: |
||||||||||||||||||||||||||||
|
Net income |
$ | 70,598 | $ | 71,932 | $ | 73,641 | $ | 78,228 | $ | 76,570 | $ | 216,171 | $ | 219,213 | ||||||||||||||
|
Average shareholders' equity |
$ | 3,397,956 | $ | 3,341,325 | $ | 3,280,583 | $ | 3,226,953 | $ | 3,162,400 | $ | 3,339,695 | $ | 3,030,699 | ||||||||||||||
|
Less: Average goodwill and other intangible assets |
(1,934,864 | ) | (1,937,200 | ) | (1,931,961 | ) | (1,926,811 | ) | (1,929,420 | ) | (1,934,686 | ) | (1,828,594 | ) | ||||||||||||||
|
Average tangible shareholders’ equity |
$ | 1,463,092 | $ | 1,404,125 | $ | 1,348,622 | $ | 1,300,142 | $ | 1,232,980 | $ | 1,405,009 | $ | 1,202,105 | ||||||||||||||
|
Return on average tangible common equity: |
19.30 | % | 20.49 | % | 21.84 | % | 23.87 | % | 24.84 | % | 20.51 | % | 24.38 | % | ||||||||||||||
|
Tangible book value per share: |
||||||||||||||||||||||||||||
|
Shareholders’ equity |
$ | 3,411,239 | $ | 3,357,285 | $ | 3,301,861 | $ | 3,244,826 | $ | 3,182,950 | $ | 3,411,239 | $ | 3,182,950 | ||||||||||||||
|
Less: Goodwill and other intangible assets |
(1,933,667 | ) | (1,936,023 | ) | (1,938,413 | ) | (1,933,138 | ) | (1,926,729 | ) | (1,933,667 | ) | (1,926,729 | ) | ||||||||||||||
|
Tangible shareholders’ equity |
$ | 1,477,572 | $ | 1,421,262 | $ | 1,363,448 | $ | 1,311,688 | $ | 1,256,221 | $ | 1,477,572 | $ | 1,256,221 | ||||||||||||||
|
Period end shares outstanding |
70,040 | 70,040 | 70,024 | 69,780 | 69,756 | 70,040 | 69,756 | |||||||||||||||||||||
|
Tangible book value per share: |
$ | 21.10 | $ | 20.29 | $ | 19.47 | $ | 18.80 | $ | 18.01 | $ | 21.10 | $ | 18.01 | ||||||||||||||
|
Period end tangible equity to period end tangible assets ratio: |
||||||||||||||||||||||||||||
|
Tangible shareholders’ equity |
$ | 1,477,572 | $ | 1,421,262 | $ | 1,363,448 | $ | 1,311,688 | $ | 1,256,221 | $ | 1,477,572 | $ | 1,256,221 | ||||||||||||||
|
Total assets |
$ | 21,567,236 | $ | 21,686,287 | $ | 21,606,859 | $ | 21,507,733 | $ | 21,117,314 | $ | 21,567,236 | $ | 21,117,314 | ||||||||||||||
|
Less: Goodwill and other intangible assets |
(1,933,667 | ) | (1,936,023 | ) | (1,938,413 | ) | (1,933,138 | ) | (1,926,729 | ) | (1,933,667 | ) | (1,926,729 | ) | ||||||||||||||
|
Tangible assets |
$ | 19,633,569 | $ | 19,750,264 | $ | 19,668,446 | $ | 19,574,595 | $ | 19,190,585 | $ | 19,633,569 | $ | 19,190,585 | ||||||||||||||
|
Period end tangible equity to period end tangible assets ratio: |
7.53 | % | 7.20 | % | 6.93 | % | 6.70 | % | 6.55 | % | 7.53 | % | 6.55 | % | ||||||||||||||
Prosperity Bancshares, Inc.®
Notes to Selected Financial Data (Unaudited)
(Dollars in thousands)
|
Three Months Ended |
Year-to-Date |
|||||||||||||||||||||||||||
|
Sep 30, 2015 |
Jun 30, 2015 |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
Sep 30, 2015 |
Sep 30, 2014 |
||||||||||||||||||||||
|
Allowance for credit losses to total loans, excluding acquired loans: |
||||||||||||||||||||||||||||
|
Allowance for credit losses |
$ | 81,003 | $ | 80,972 | $ | 80,963 | $ | 80,762 | $ | 77,613 | $ | 81,003 | $ | 77,613 | ||||||||||||||
|
Total loans |
$ | 9,204,988 | $ | 9,114,335 | $ | 9,166,005 | $ | 9,244,183 | $ | 9,368,888 | $ | 9,204,988 | $ | 9,368,888 | ||||||||||||||
|
Less: Fair value of acquired loans (acquired portfolio loan balances less loan marks) |
$ | 1,541,369 | $ | 1,705,552 | $ | 1,910,646 | $ | 2,154,148 | $ | 2,536,433 | $ | 1,541,369 | $ | 2,536,433 | ||||||||||||||
|
Total loans less acquired loans |
$ | 7,663,619 | $ | 7,408,783 | $ | 7,255,359 | $ | 7,090,035 | $ | 6,832,455 | $ | 7,663,619 | $ | 6,832,455 | ||||||||||||||
|
Allowance for credit losses to total loans, excluding acquired loans (non-GAAP basis) |
1.06 | % | 1.09 | % | 1.12 | % | 1.14 | % | 1.14 | % | 1.06 | % | 1.14 | % | ||||||||||||||
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