- Net income of $86.9 million
and diluted earnings per share of $0.94 for second quarter 2023; excluding merger
related provision and expenses of $31.4
million, diluted earnings per share of $1.21(1)
- Loans, excluding Warehouse Purchase Program loans, increased
$1.970 billion or 10.6% during second
quarter 2023
- Deposits increased $376.7
million or 1.4% during the second quarter 2023
- Allowance for credit losses on loans to total loans,
excluding Warehouse Purchase Program loans, of
1.68%(1)
- Nonperforming assets remain low at 0.18% of second quarter
average interest-earning assets
- Repurchased 595 thousand shares of common stock during the
second quarter of 2023, and 1.2 million shares during the first six
months of 2023
- Completed the merger and operational conversion of First
Bancshares of Texas, Inc.
- Pending merger of Lone Star State Bancshares, Inc.,
Lubbock, Texas
HOUSTON, July 26,
2023 /PRNewswire/ -- Prosperity Bancshares,
Inc.® (NYSE: PB), the parent company of Prosperity
Bank® (collectively, "Prosperity"), reported net income
of $86.9 million for the quarter
ended June 30, 2023 compared with $128.5 million for the same period in 2022. Net
income per diluted common share was $0.94 for the quarter ended June 30, 2023
compared with $1.40 for the same
period in 2022. On May 1, 2023,
First Bancshares of Texas, Inc.
("First Bancshares") merged with Prosperity Bancshares and
FirstCapital Bank of Texas, N.A.
("FirstCapital Bank") merged with Prosperity Bank (collectively,
the "Merger"). During the second quarter of 2023, Prosperity
incurred a merger related provision for credit losses of
$18.5 million, or $0.16(1) per diluted common share, and
merger related expenses of $12.9
million, or $0.11(1) per diluted common share.
Excluding these charges, earnings per diluted common share was
$1.21(1) for the second
quarter of 2023. Additionally, loans, excluding Warehouse Purchase
Program loans, increased $1.970
billion or 10.6% during the second quarter of 2023,
primarily due to the Merger. The annualized return on second
quarter average assets was 0.89%, and the annualized return on
second quarter average assets excluding merger related provision
for credit losses, net of tax, and merger related expenses, net of
tax was 1.14%(1). Nonperforming assets remain low at
0.18% of second quarter average interest-earning assets.
"I am pleased to announce that on May 1,
2023, Prosperity completed the merger of
First Bancshares of Texas and
its wholly owned subsidiary FirstCapital Bank, headquartered in
Midland, Texas. FirstCapital Bank
operated 16 full-service banking offices in six different markets
in West, North and Central Texas
areas, including its main office in Midland, and banking offices in Midland, Lubbock, Amarillo, Wichita
Falls, Burkburnett,
Byers, Henrietta, Dallas, Horseshoe
Bay, Marble Falls and
Fredericksburg, Texas," said
David Zalman, Prosperity's Senior
Chairman and Chief Executive Officer.
"For the second quarter of 2023, Prosperity's net income was
impacted by merger related charges. Excluding those charges, our
earnings remain strong but are lower than previous quarters,
primarily because of the timing differences in that our cost of
funds has increased faster than our earning assets have repriced.
The good news is that based on our models, we show our net interest
margin improving in a 12 month and 24-month time period to more
normal levels. However, if rates increase more than we anticipate,
this could change. Together with our model projections, strong
capital position, liquidity, earnings, strong cost controls and
sound asset quality, we believe opportunities remain for continued
growth and expansion. I would like to welcome our new associates
and thank our current associates for the all the hard work and
integrity they show every day taking care of our customers,"
concluded Zalman.
Results of Operations for the Three Months Ended
June 30, 2023
Net income was $86.9
million(2) for the three months ended
June 30, 2023 compared with $128.5
million(3) for the same period in 2022, and was
impacted by merger related provision for credit losses of
$18.5 million and merger related
expenses of $12.9 million. Net income
per diluted common share was $0.94
for the three months ended June 30,
2023 compared with $1.40 for
the same period in 2022, and was also impacted by merger related
provision and expenses. On a linked quarter basis, net income was
$86.9 million(2) for the
three months ended June 30, 2023 compared with $124.7 million(4) for the three months
ended March 31, 2023. The change was primarily due to
the Merger. Net income per diluted common share was $0.94 for the three months ended June 30,
2023 compared with $1.37 for the
three months ended March 31, 2023. Annualized returns on
average assets, average common equity and average tangible common
equity for the three months ended June 30, 2023 were 0.89%,
5.01% and 9.67%(1), respectively. Excluding merger
related provision for credit losses, net of tax, and merger related
expenses, net of tax, annualized returns on average assets, average
common equity and average tangible common equity for the three
months ended June 30, 2023 were 1.14%(1),
6.45%(1) and 12.43%(1), respectively.
Prosperity's efficiency ratio (excluding net gains and losses on
the sale or write down of assets and securities) was
53.21%(1) for the three months ended June 30, 2023; and excluding merger related
expenses, the efficiency ratio was 48.51%(1).
Net interest income before provision for credit losses for the
three months ended June 30, 2023 was $236.5 million compared with $248.5 million for the same period in 2022, a
decrease of $12.0 million or 4.8%.
The change was primarily due to an increase in average balances and
rates on borrowings and an increase in the average rates on
interest-bearing deposits, partially offset by an increase in the
average balances and average rates on loans held for investment and
an increase in average rates on investment securities. On a linked
quarter basis, net interest income before provision for credit
losses was $236.5 million compared
with $243.5 million for the three
months ended March 31, 2023, a decrease of $7.0 million or 2.9%. The change was primarily
due to an increase in the average balances and average rates on
other borrowings, an increase in average rates on interest-bearing
deposits and a decrease in average federal funds sold and other
earning assets, partially offset by an increase in the average
balances and average rates on loans.
The net interest margin on a tax equivalent basis was 2.73% for
the three months ended June 30, 2023 compared with 2.97% for
the same period in 2022. The change was primarily due to an
increase in average balances and average rates on borrowings and an
increase in the average rates on interest-bearing deposits,
partially offset by an increase in the average balances and average
rates on loans held for investment and an increase in average rates
on investment securities. On a linked quarter basis, the net
interest margin on a tax equivalent basis was 2.73% for the three
months ended June 30, 2023 compared with 2.93% for the three
months ended March 31, 2023. The change was primarily due to
an increase in the average balances and average rates on other
borrowings, an increase in average rates on interest-bearing
deposits and a decrease in average federal funds sold and other
earning assets, partially offset by an increase in the average
balances and average rates on loans.
Noninterest income was $39.7
million for the three months ended June 30, 2023
compared with $37.6 million for the
same period in 2022, an increase of $2.1
million or 5.6%. On a linked quarter basis,
noninterest income was $39.7 million
compared with $38.3 million for the
three months ended March 31, 2023, an increase of $1.4 million or 3.7%.
Noninterest expense was $145.9
million for the three months ended June 30, 2023
compared with $122.9 million for the
same period in 2022, an increase of $23.0
million or 18.7%. On a linked quarter basis, noninterest
expense increased $22.9 million
or 18.6% to $145.9 million compared
with $123.0 million for the three
months ended March 31, 2023. The change for both periods was
primarily due to an increase in merger related expenses, an
increase in salaries and benefits and an increase in additional
expenses related to two months of FirstCapital Bank operations.
Results of Operations for the Six Months Ended June 30,
2023
Net income was $211.6
million(5) for the six months ended June 30,
2023 compared with $250.8
million(6) for the same period in 2022, and was
impacted by merger related provision for credit losses of
$18.5 million and merger related
expenses of $13.8 million. Net income
per diluted common share was $2.30
for the six months ended June 30,
2023 compared with $2.73 for
the same period in 2022, and was also impacted by merger related
provision and expenses. Annualized returns on average assets,
average common equity and average tangible common equity for the
six months ended June 30, 2023 were
1.09%, 6.18% and 11.97%(1), respectively. Excluding
merger related provision for credit losses, net of tax, and merger
related expenses, net of tax, annualized returns on average assets,
average common equity and average tangible common equity for the
six months ended June 30, 2023 were
1.22%(1), 6.93%(1) and 13.41%(1),
respectively. Prosperity's efficiency ratio (excluding net gains
and losses on the sale or write down of assets and securities) was
48.38%(1) for the six months ended June 30, 2023; excluding merger related expenses,
the efficiency ratio was 45.90% (1).
Net interest income before provision for credit losses for the
six months ended June 30, 2023 was
$479.9 million compared with
$488.4 million for the the same
period in 2022, a decrease of $8.5
million or 1.7%. The change was primarily due to an
increase in the average balances and average rates on other
borrowings and an increase in average rates on interest-bearing
deposits, partially offset by increases in the average balances and
increases in average rates on loans held for investment and on
investment securities.
The net interest margin on a tax equivalent basis for the six
months ended June 30, 2023 was 2.83%
compared with 2.92% for the same period in 2022. The changes were
primarily due to an increase in the average balances and average
rates on interest-bearing liabilities, partially offset by an
increase in average balances and average rates on loans and an
increase in average rates on investment securities.
Noninterest income was $78.0
million for the six months ended June
30, 2023 compared with $72.7
million for the same period in 2022, an increase of
$5.2 million or 7.2%, primarily due
to increases in trust income, credit card, debit card and ATM
income and other noninterest income.
Noninterest expense was $268.9
million for the six months ended June
30, 2023 compared with $242.7
million for the same period in 2022, an increase of
$26.1 million or 10.8%. The change
was primarily due to $13.8 million of
merger related expenses, an increase in Federal Deposit Insurance
Corporation assessments of $4.4
million and an increase in additional expenses related to
two months of FirstCapital Bank operations.
Balance Sheet Information
At June 30, 2023, Prosperity had $39.905 billion in total assets, an increase of
$2.518 billion or 6.7%, compared with
$37.387 billion at June 30,
2022.
Loans were $21.654 billion at
June 30, 2023, an increase of
$2.320 billion or 12.0% from
$19.334 billion at March 31, 2023. Loans increased $3.445 billion or 18.9% compared with
$18.209 billion at June 30, 2022. Loans, excluding Warehouse
Purchase Program loans, were $20.505
billion at June 30, 2023
compared to $18.535 billion at
March 31, 2023, an increase of
$1.970 billion or 10.6%, and compared
to $17.071 billion at June 30,
2022, an increase of $3.434 billion
or 20.1%.
Deposits were $27.381 billion at
June 30, 2023, an increase of
$376.7 million or 1.4% compared
with $27.004 billion at March 31, 2023. Deposits decreased
$2.485 billion or 8.3%, compared with
$29.866 billion at June 30, 2022, primarily due to a decrease in
public fund deposits and business deposits, partially offset by an
increase in Merger acquired deposits.
The table below provides detail on the impact of loans acquired
and deposits assumed in the Merger.
Balance Sheet Data (at period
end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30, 2023
|
|
|
Mar 31, 2023
|
|
|
Dec 31, 2022
|
|
|
Sep 30, 2022
|
|
|
Jun 30, 2022
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans acquired
(including new production since acquisition date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FirstCapital
Bank
|
|
$
|
1,590,137
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Prosperity - Warehouse
Purchase Program loans
|
|
|
1,148,883
|
|
|
|
799,115
|
|
|
|
740,620
|
|
|
|
922,764
|
|
|
|
1,137,623
|
|
Prosperity - All other
loans
|
|
|
18,914,926
|
|
|
|
18,535,244
|
|
|
|
18,099,207
|
|
|
|
17,583,524
|
|
|
|
17,071,221
|
|
Total loans
|
|
$
|
21,653,946
|
|
|
$
|
19,334,359
|
|
|
$
|
18,839,827
|
|
|
$
|
18,506,288
|
|
|
$
|
18,208,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits assumed
(including new deposits since acquisition date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FirstCapital
Bank
|
|
$
|
1,481,831
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
All other
deposits
|
|
|
25,899,055
|
|
|
|
27,004,236
|
|
|
|
28,533,531
|
|
|
|
29,300,095
|
|
|
|
29,865,618
|
|
Total
deposits
|
|
$
|
27,380,886
|
|
|
$
|
27,004,236
|
|
|
$
|
28,533,531
|
|
|
$
|
29,300,095
|
|
|
$
|
29,865,618
|
|
Excluding loans acquired in the Merger and new production by the
acquired lending operations since May 1,
2023, loans at June 30, 2023
grew $729.5 million or 3.8% compared
with March 31, 2023 and $1.855 billion or 10.2% compared with
June 30, 2022. Excluding loans
acquired in the Merger and new production by the acquired lending
operations since May 1, 2023 and
Warehouse Purchase Program loans, loans at June 30, 2023 grew $379.7
million or 2.0% (8.2% annualized) compared with March 31, 2023 and $1.844
billion or 10.8% compared with June
30, 2022.
Excluding deposits assumed in the Merger and new deposits
generated at the acquired banking centers since May 1, 2023, deposits at June 30, 2023 decreased by $1.105 billion or 4.1% compared with March 31, 2023 and decreased by $3.967 billion or 13.3% compared with
June 30, 2022.
Asset Quality
Nonperforming assets totaled $62.7
million or 0.18% of quarterly average interest-earning
assets at June 30, 2023 compared with $22.2 million or 0.07% of quarterly average
interest-earning assets at June 30, 2022 and $24.5 million or 0.07% of quarterly average
interest-earning assets at March 31, 2023. The increase during
the second quarter of 2023 was primarily due to the Merger and two
loans that were placed on nonaccrual status during the quarter, one
of which is under contract for sale.
The allowance for credit losses on loans and off-balance sheet
credit exposures was $381.7 million
at June 30, 2023 compared with $313.9
million at June 30, 2022 and $312.1 million at March 31, 2023. The
provision for credit losses was $18.5 million for the three and six months
ended June 30, 2023 compared to no provision for credit losses
for the three and six months ended June 30,
2022. As a result of the loans acquired in the Merger, the
second quarter of 2023 included a $12.0
million provision for credit losses on loans and a
$6.5 million provision for
credit losses on off-balance sheet credit exposures.
The allowance for credit losses on loans was $345.2 million or 1.59% of total loans at
June 30, 2023 compared with $284.0
million or 1.56% of total loans at June 30, 2022 and
$282.2 million or 1.46% of total
loans at March 31, 2023. Excluding Warehouse Purchase Program
loans, the allowance for credit losses on loans to total loans was
1.68%(1) at June 30, 2023 compared with
1.66%(1) at June 30, 2022 and 1.52%(1)
at March 31, 2023.
Net charge-offs were $16.1 million
for the three months ended June 30, 2023 compared with net
charge-offs of $1.2 million for the
three months ended June 30, 2022 and net recoveries of
$615 thousand for the three months
ended March 31, 2023. Net charge-offs for the second
quarter of 2023 included $15.0 million related to one commercial real
estate loan obtained in a previous merger. Additionally,
$3.5 million of specific reserves on
resolved purchased credit deteriorated ("PCD") loans without any
related charge-offs was released to the general reserve.
Net charge-offs were $15.5 million
for the six months ended June 30, 2023 compared with
$2.4 million for the six months ended
June 30, 2022. Net charge-offs for the six months ended
June 30, 2023 included $15.0 million related to one commercial real
estate loan obtained in a previous merger. Additionally,
$3.7 million of specific reserves on
resolved PCD loans without any related charge-offs was released to
the general reserve.
Dividend
Prosperity Bancshares declared a third quarter 2023 cash
dividend of $0.55 per share to be
paid on October 2, 2023, to all
shareholders of record as of September 15,
2023.
Stock Repurchase Program
On January 17, 2023, Prosperity
Bancshares announced a stock repurchase program under which up to
5%, or approximately 4.6 million shares, of its outstanding
common stock may be acquired over a one-year period expiring on
January 17, 2024, at the discretion
of management. Under its 2023 stock repurchase program, Prosperity
Bancshares repurchased approximately 595 thousand shares of its
common stock at an average weighted price of $57.49 per share during the three months ended
June 30, 2023 and approximately 1.21
million shares of its common stock at an average weighted price of
$59.88 per share during the six
months ended June 30, 2023.
Merger of First Bancshares of Texas, Inc.
On May 1, 2023, Prosperity
completed the merger of First Bancshares and its wholly owned
subsidiary FirstCapital Bank, headquartered in Midland, Texas. FirstCapital Bank
operated 16 full-service banking offices in six different markets
in West, North and Central Texas
areas, including its main office in Midland, and banking offices in Midland, Lubbock, Amarillo, Wichita
Falls, Burkburnett,
Byers, Henrietta, Dallas, Horseshoe
Bay, Marble Falls and
Fredericksburg, Texas.
Pursuant to the terms of the definitive agreement, Prosperity
issued 3,583,370 shares of Prosperity common stock plus
approximately $91.5 million in cash
for all outstanding shares of First Bancshares, which resulted in
goodwill of $152.1 million as of
June 30, 2023. Additionally,
Prosperity recognized $25.3 million
of core deposit intangibles as of June 30,
2023. The goodwill balance as of June
30, 2023 does not include subsequent fair value adjustments
that are still being finalized. During the second quarter of 2023,
Prosperity completed the operational conversion of FirstCapital
Bank.
Pending Merger of Lone Star State Bancshares, Inc.
On October 11, 2022, Prosperity
Bancshares and Lone Star State Bancshares, Inc. ("Lone Star") jointly announced the signing of a
definitive merger agreement whereby Lone
Star, the parent company of Lone
Star State Bank of West
Texas ("Lone Star Bank") will
merge with and into Prosperity. Lone Star
Bank operates 5 banking offices in the West Texas area, including its main office in
Lubbock, and 1 banking center in
each of Brownfield, Midland, Odessa and Big
Spring, Texas. As of June 30,
2023, Lone Star, on a
consolidated basis, reported total assets of $1.276 billion, total loans of $1.072 billion and total deposits of $1.117 billion.
Under the terms of the merger agreement, Prosperity will issue
2,376,182 shares of Prosperity common stock plus $64.1 million in cash for all outstanding shares
of Lone Star capital stock, subject
to certain conditions and potential adjustments. Based on
Prosperity's closing price of $69.27
on October 7, 2022, the total
consideration was valued at approximately $228.7 million. The transaction is subject to
customary closing conditions, including the receipt of regulatory
approvals. The shareholders of Lone
Star approved the transaction on March 28, 2023. The transaction is expected to
close during the third quarter of 2023, although delays could
occur.
Conference Call
Prosperity's management team will host a conference call on
Wednesday, July 26, 2023, at
11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's
second quarter 2023 earnings. Individuals and investment
professionals may participate in the call by dialing 877-885-0477
for domestic participants, or 412-902-6506 for international
participants. The participant elite entry number is 7557443.
Alternatively, individuals may listen to the live webcast of the
presentation by visiting Prosperity's website at
www.prosperitybankusa.com. The webcast may be accessed from
Prosperity's Investor Relations page by selecting "Presentations,
Webcasts & Calls" from the menu and following the
instructions.
Non-GAAP Financial Measures
Prosperity's management uses certain non-GAAP financial measures
to evaluate its performance. Specifically, Prosperity reviews
diluted earnings per share excluding merger related provision for
credit losses, net of tax, and merger related expenses, net of tax;
return on average assets excluding merger related provision for
credit losses, net of tax, and merger related expenses, net of tax;
return on average common equity excluding merger related provision
for credit losses, net of tax, and merger related expenses, net of
tax; return on average tangible common equity; return on average
tangible common equity excluding merger related provision for
credit losses, net of tax, and merger related expenses, net of tax;
tangible book value per share; the tangible equity to tangible
assets ratio; allowance for credit losses to total loans excluding
Warehouse Purchase Program loans; the efficiency ratio, excluding
net gains and losses on the sale or write down of assets and
securities; and the efficiency ratio, excluding net gains and
losses on the sale or write down of assets and securities and
merger related expenses, for internal planning and forecasting
purposes. Prosperity believes these non-GAAP financial measures
provide information useful to investors in understanding
Prosperity's financial results and their presentation, together
with the accompanying reconciliations, provides a more complete
understanding of factors and trends affecting Prosperity's business
and allows investors to view performance in a manner similar to
management, the entire financial services sector, bank stock
analysts and bank regulators. Further, Prosperity believes that
these non-GAAP financial measures provide useful information by
excluding certain items that may not be indicative of its core
operating earnings and business outlook. These non-GAAP financial
measures should not be considered a substitute for, nor of greater
importance than, GAAP basis financial measures and results;
Prosperity strongly encourages investors to review its consolidated
financial statements in their entirety and not to rely on any
single financial measure. Because non-GAAP financial measures are
not standardized, it may not be possible to compare these financial
measures with other companies' non-GAAP financial measures having
the same or similar names. Please refer to the "Notes to Selected
Financial Data" at the end of this Earnings Release for a
reconciliation of these non-GAAP financial measures to the nearest
respective GAAP financial measures.
Prosperity Bancshares, Inc. ®
As of June 30, 2023, Prosperity Bancshares,
Inc.® is a $39.905 billion
Houston, Texas based regional
financial holding company providing personal banking services and
investments to consumers and businesses throughout Texas and Oklahoma. Founded in 1983,
Prosperity believes in a community banking philosophy, taking care
of customers, businesses and communities in the areas it serves by
providing financial solutions to simplify everyday financial needs.
In addition to offering traditional deposit and loan products,
Prosperity offers digital banking solutions, credit and debit
cards, mortgage services, retail brokerage services, trust and
wealth management, and treasury management.
Prosperity currently operates 285 full-service banking
locations: 65 in the Houston area,
including The Woodlands; 30 in the
South Texas area including
Corpus Christi and Victoria; 62 in the Dallas/Fort Worth area; 22 in the East Texas area; 32 in the Central Texas area including Austin and San
Antonio; 44 in the West
Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita
Falls; 16 in the Bryan/College
Station area, 6 in the Central
Oklahoma area; 8 in the Tulsa,
Oklahoma area.
Cautionary Notes on Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: This release contains, and the remarks by
Prosperity's management on the conference call may contain,
forward-looking statements within the meaning of the federal
securities laws, including Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. From time to time, oral or written
forward-looking statements may also be included in other
information released to the public. Such forward-looking
statements are typically, but not exclusively, identified by the
use in the statements of words or phrases such as "aim,"
"anticipate," "believe," "estimate," "expect," "goal," "guidance,"
"intend," "is anticipated," "is expected," "is intended,"
"objective," "plan," "projected," "projection," "will affect,"
"will be," "will continue," "will decrease," "will grow," "will
impact," "will increase," "will incur," "will reduce," "will
remain," "will result," "would be," variations of such words or
phrases (including where the word "could," "may," or "would" is
used rather than the word "will" in a phrase) and similar words and
phrases indicating that the statement addresses some future result,
occurrence, plan or objective. Forward-looking statements include
all statements other than statements of historical fact, including
forecasts or trends, and are based on current expectations,
assumptions, estimates and projections about Prosperity Bancshares
and its subsidiaries. These forward-looking statements may include
information about Prosperity's possible or assumed future economic
performance or future results of operations, including future
revenues, income, expenses, provision for loan losses, provision
for taxes, effective tax rate, earnings per share and cash flows
and Prosperity's future capital expenditures and dividends, future
financial condition and changes therein, including changes in
Prosperity's loan portfolio and allowance for loan losses, changes
in deposits, borrowings and the investment securities portfolio,
future capital structure or changes therein, as well as the plans
and objectives of management for Prosperity's future operations,
future or proposed acquisitions, including the pending transaction
with Lone Star, the future or
expected effect of acquisitions on Prosperity's operations, results
of operations, financial condition, and future economic
performance, statements about the anticipated benefits of each of
the proposed transactions, and statements about the assumptions
underlying any such statement. These forward looking statements are
not guarantees of future performance and are based on expectations
and assumptions Prosperity currently believes to be valid.
Because forward-looking statements relate to future results
and occurrences, many of which are outside of Prosperity's control,
they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. These risks and
uncertainties include, but are not limited to whether Prosperity
can: successfully identify acquisition targets and integrate the
businesses of acquired companies and banks, including Lone Star; continue to sustain its current
internal growth rate or total growth rate; provide products and
services that appeal to its customers; continue to have access to
debt and equity capital markets; and achieve its sales objectives.
Other risks include, but are not limited to: the possibility that
credit quality could deteriorate; actions of competitors; changes
in laws and regulations (including changes in governmental
interpretations of regulations and changes in accounting
standards); the possibility that the anticipated benefits of an
acquisition transaction, including the pending transaction with
Lone Star, are not realized when
expected or at all, including as a result of the impact of, or
problems arising from, the integration of two companies or as a
result of the strength of the economy and competitive factors
generally; a deterioration or downgrade in the credit quality and
credit agency ratings of the securities in Prosperity's securities
portfolio; customer and consumer demand, including customer and
consumer response to marketing; effectiveness of spending,
investments or programs; fluctuations in the cost and availability
of supply chain resources; economic conditions, including currency
rate, interest rate and commodity price fluctuations; and the
effect, impact, potential duration or other implications of weather
and climate-related events. Prosperity disclaims any obligation to
update such factors or to publicly announce the results of any
revisions to any of the forward-looking statements included herein
to reflect future events or developments. These and various other
factors are discussed in Prosperity's Annual Report on Form 10-K
for the year ended December 31, 2022,
and other reports and statements Prosperity has filed with the
Securities and Exchange Commission ("SEC"). Copies of the SEC
filings for Prosperity may be downloaded from the Internet at no
charge from http://www.prosperitybankusa.com.
____________________
|
(1)
|
Refer to the "Notes to
Selected Financial Data" at the end of this Earnings Release for a
reconciliation of this non-GAAP financial measure to the nearest
GAAP financial measure.
|
(2)
|
Includes purchase
accounting adjustments of $2.4 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.
|
(3)
|
Includes purchase
accounting adjustments of $103 thousand, net of tax, primarily
comprised of loan discount accretion of $59 thousand for the three
months ended June 30, 2022.
|
(4)
|
Includes purchase
accounting adjustments of $728 thousand, net of tax, primarily
comprised of loan discount accretion of $871 thousand, and merger
related expenses of $860 thousand for the three months ended March
31, 2023.
|
(5)
|
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.
|
(6)
|
Includes purchase
accounting adjustments of $4.2 million, net of tax, primarily
comprised of loan discount accretion of $5.3 million for the six
months ended June 30, 2022.
|
Bryan/College Station Area
|
|
Frisco-West
|
|
Palestine
|
|
Mont Belvieu
|
|
North
University
|
Bryan
|
|
Garland
|
|
Rusk
|
|
Nederland
|
|
Texas Tech Student
Union
|
Bryan-29th
Street
|
|
Grapevine
|
|
Seven Points
|
|
Needville
|
|
|
Bryan-East
|
|
Grapevine
Main
|
|
Teague
|
|
Rosenberg
|
|
Midland
|
Bryan-North
|
|
Kiest
|
|
Tyler-Beckham
|
|
Shadow Creek
|
|
North
|
Caldwell
|
|
Lake
Highlands
|
|
Tyler-South
Broadway
|
|
Spring
|
|
Wadley
|
College
Station
|
|
LBJ
|
|
Tyler-University
|
|
Tomball
|
|
Wall Street
|
Crescent
Point
|
|
McKinney
|
|
Winnsboro
|
|
Waller
|
|
West
|
Hearne
|
|
McKinney
Eldorado
|
|
|
|
West
Columbia
|
|
|
Huntsville
|
|
McKinney
Redbud
|
|
Houston Area
|
|
Wharton
|
|
Odessa
|
Madisonville
|
|
North
Carrolton
|
|
Houston
|
|
Winnie
|
|
Grandview
|
Navasota
|
|
Park Cities
|
|
Aldine
|
|
Wirt
|
|
Grant
|
New Waverly
|
|
Plano
|
|
Alief
|
|
|
|
Kermit
Highway
|
Rock Prairie
|
|
Plano-West
|
|
Bellaire
|
|
South Texas Area -
|
|
Parkway
|
Southwest
Parkway
|
|
Preston
Forest
|
|
Beltway
|
|
Corpus Christi
|
|
|
Tower Point
|
|
Preston
Parker
|
|
Clear Lake
|
|
Calallen
|
|
Wichita Falls
|
Wellborn
Road
|
|
Preston
Royal
|
|
Copperfield
|
|
Carmel
|
|
Cattlemans
|
|
|
Red Oak
|
|
Cypress
|
|
Northwest
|
|
Kell
|
Central Texas Area
|
|
Richardson
|
|
Downtown
|
|
Saratoga
|
|
|
Austin
|
|
Richardson-West
|
|
Eastex
|
|
Timbergate
|
|
Other West Texas Area
|
Allandale
|
|
Rosewood
Court
|
|
Fairfield
|
|
Water Street
|
|
Locations
|
Cedar Park
|
|
The Colony
|
|
First Colony
|
|
|
|
Big Spring
|
Congress
|
|
Tollroad
|
|
Fry Road
|
|
Victoria
|
|
Brownfield
|
Lakeway
|
|
Trinity
Mills
|
|
Gessner
|
|
Victoria
Main
|
|
Brownwood
|
Liberty Hill
|
|
Turtle Creek
|
|
Gladebrook
|
|
Victoria-Navarro
|
|
Burkburnett
|
Northland
|
|
West 15th
Plano
|
|
Grand
Parkway
|
|
Victoria-North
|
|
Byers
|
Oak Hill
|
|
West Allen
|
|
Heights
|
|
Victoria
Salem
|
|
Cisco
|
Research
Blvd
|
|
Westmoreland
|
|
Highway 6
West
|
|
|
|
Comanche
|
Westlake
|
|
Wylie
|
|
Little York
|
|
Other South Texas Area
|
|
Early
|
|
|
|
|
Medical
Center
|
|
Locations
|
|
Floydada
|
Other Central Texas Area
|
|
Fort Worth
|
|
Memorial
Drive
|
|
Alice
|
|
Gorman
|
Locations
|
|
Haltom City
|
|
Northside
|
|
Aransas Pass
|
|
Henrietta
|
Bastrop
|
|
Hulen
|
|
Pasadena
|
|
Beeville
|
|
Levelland
|
Canyon Lake
|
|
Keller
|
|
Pecan Grove
|
|
Colony Creek
|
|
Littlefield
|
Dime Box
|
|
Museum Place
|
|
Pin Oak
|
|
Cuero
|
|
Merkel
|
Dripping
Springs
|
|
Renaissance
Square
|
|
River Oaks
|
|
Edna
|
|
Plainview
|
Elgin
|
|
Roanoke
|
|
Sugar Land
|
|
Goliad
|
|
San Angelo
|
Flatonia
|
|
Stockyards
|
|
SW Medical
Center
|
|
Gonzales
|
|
Slaton
|
Fredericksburg
|
|
|
|
Tanglewood
|
|
Hallettsville
|
|
Snyder
|
Georgetown
|
|
Other Dallas/Fort Worth Area
|
|
The Plaza
|
|
Kingsville
|
|
|
Gruene
|
|
Locations
|
|
Uptown
|
|
Mathis
|
|
Oklahoma
|
Horseshoe
Bay
|
|
Arlington
|
|
Waugh Drive
|
|
Padre Island
|
|
Central Oklahoma Area
|
Kingsland
|
|
Azle
|
|
Westheimer
|
|
Palacios
|
|
Oklahoma City
|
La Grange
|
|
Ennis
|
|
West
University
|
|
Port Lavaca
|
|
23rd
Street
|
Lexington
|
|
Gainesville
|
|
Woodcreek
|
|
Portland
|
|
Expressway
|
Marble Falls
|
|
Glen Rose
|
|
|
|
Rockport
|
|
I-240
|
New
Braunfels
|
|
Granbury
|
|
Katy
|
|
Sinton
|
|
Memorial
|
Pleasanton
|
|
Grand
Prairie
|
|
Cinco Ranch
|
|
Taft
|
|
|
Round Rock
|
|
Jacksboro
|
|
Katy-Spring
Green
|
|
Yoakum
|
|
Other Central Oklahoma Area
|
San Antonio
|
|
Mesquite
|
|
|
|
Yorktown
|
|
Locations
|
Schulenburg
|
|
Muenster
|
|
The Woodlands
|
|
|
|
Edmond
|
Seguin
|
|
Runaway Bay
|
|
The Woodlands-College
Park
|
|
West Texas Area
|
|
Norman
|
Smithville
|
|
Sanger
|
|
The
Woodlands-I-45
|
|
Abilene
|
|
|
Thorndale
|
|
Waxahachie
|
|
The Woodlands-Research
Forest
|
|
Antilley
Road
|
|
Tulsa Area
|
Weimar
|
|
Weatherford
|
|
|
|
Barrow
Street
|
|
Tulsa
|
|
|
|
|
Other Houston Area
|
|
Cypress
Street
|
|
|
Dallas/Fort Worth Area
|
|
East Texas Area
|
|
Locations
|
|
Judge Ely
|
|
Garnett
|
Dallas
|
|
Athens
|
|
Angleton
|
|
Mockingbird
|
|
Harvard
|
14th Street
Plano
|
|
Blooming
Grove
|
|
Bay City
|
|
|
|
Memorial
|
Abrams
Centre
|
|
Canton
|
|
Beaumont
|
|
Amarillo
|
|
Sheridan
|
Addison
|
|
Carthage
|
|
Cleveland
|
|
Hillside
|
|
S. Harvard
|
Allen
|
|
Corsicana
|
|
East Bernard
|
|
Soncy
|
|
Utica Tower
|
Balch
Springs
|
|
Crockett
|
|
El Campo
|
|
|
|
Yale
|
Camp Wisdom
|
|
Eustace
|
|
Dayton
|
|
Lubbock
|
|
|
Carrollton
|
|
Gilmer
|
|
Galveston
|
|
4th Street
|
|
Other Tulsa Area Locations
|
Cedar Hill
|
|
Grapeland
|
|
Groves
|
|
66th Street
|
|
Owasso
|
Coppell
|
|
Gun Barrel
City
|
|
Hempstead
|
|
82nd Street
|
|
|
East Plano
|
|
Jacksonville
|
|
Hitchcock
|
|
86th Street
|
|
|
Euless
|
|
Kerens
|
|
Liberty
|
|
98th
Street
|
|
|
Frisco
|
|
Longview
|
|
Magnolia
|
|
Avenue Q
|
|
|
Prosperity Bancshares,
Inc.®
|
Financial Highlights
(Unaudited)
|
(In
thousands)
|
|
|
|
Jun 30, 2023
|
|
|
Mar 31, 2023
|
|
|
Dec 31, 2022
|
|
|
Sep 30, 2022
|
|
|
Jun 30, 2022
|
|
Balance Sheet Data (at period
end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
10,656
|
|
|
$
|
1,603
|
|
|
$
|
554
|
|
|
$
|
2,871
|
|
|
$
|
3,350
|
|
Loans held for
investment
|
|
|
20,494,407
|
|
|
|
18,533,641
|
|
|
|
18,098,653
|
|
|
|
17,580,653
|
|
|
|
17,067,871
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
1,148,883
|
|
|
|
799,115
|
|
|
|
740,620
|
|
|
|
922,764
|
|
|
|
1,137,623
|
|
Total loans
|
|
|
21,653,946
|
|
|
|
19,334,359
|
|
|
|
18,839,827
|
|
|
|
18,506,288
|
|
|
|
18,208,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities(A)
|
|
|
13,667,319
|
|
|
|
14,071,545
|
|
|
|
14,476,005
|
|
|
|
14,806,487
|
|
|
|
14,912,313
|
|
Federal funds
sold
|
|
|
181
|
|
|
|
222
|
|
|
|
301
|
|
|
|
244
|
|
|
|
201
|
|
Allowance for credit
losses on loans
|
|
|
(345,209)
|
|
|
|
(282,191)
|
|
|
|
(281,576)
|
|
|
|
(282,179)
|
|
|
|
(283,959)
|
|
Cash and due from
banks
|
|
|
396,848
|
|
|
|
405,331
|
|
|
|
423,832
|
|
|
|
602,152
|
|
|
|
393,716
|
|
Goodwill
|
|
|
3,383,698
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
Core deposit
intangibles, net
|
|
|
71,128
|
|
|
|
48,974
|
|
|
|
51,348
|
|
|
|
53,906
|
|
|
|
56,483
|
|
Other real estate
owned
|
|
|
3,107
|
|
|
|
1,989
|
|
|
|
1,963
|
|
|
|
1,758
|
|
|
|
1,555
|
|
Fixed assets,
net
|
|
|
365,299
|
|
|
|
345,149
|
|
|
|
339,453
|
|
|
|
337,099
|
|
|
|
335,939
|
|
Other assets
|
|
|
708,814
|
|
|
|
672,218
|
|
|
|
607,040
|
|
|
|
586,111
|
|
|
|
530,528
|
|
Total
assets
|
|
$
|
39,905,131
|
|
|
$
|
37,829,232
|
|
|
$
|
37,689,829
|
|
|
$
|
37,843,502
|
|
|
$
|
37,387,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
10,364,921
|
|
|
$
|
10,108,348
|
|
|
$
|
10,915,448
|
|
|
$
|
11,154,143
|
|
|
$
|
11,032,184
|
|
Interest-bearing
deposits
|
|
|
17,015,965
|
|
|
|
16,895,888
|
|
|
|
17,618,083
|
|
|
|
18,145,952
|
|
|
|
18,833,434
|
|
Total
deposits
|
|
|
27,380,886
|
|
|
|
27,004,236
|
|
|
|
28,533,531
|
|
|
|
29,300,095
|
|
|
|
29,865,618
|
|
Other
borrowings
|
|
|
4,800,000
|
|
|
|
3,365,000
|
|
|
|
1,850,000
|
|
|
|
1,165,000
|
|
|
|
300,000
|
|
Securities sold under
repurchase agreements
|
|
|
434,160
|
|
|
|
434,261
|
|
|
|
428,134
|
|
|
|
454,304
|
|
|
|
481,785
|
|
Subordinated
debentures
|
|
|
3,093
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
36,503
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
Other
liabilities
|
|
|
282,373
|
|
|
|
256,671
|
|
|
|
148,843
|
|
|
|
282,514
|
|
|
|
188,079
|
|
Total
liabilities
|
|
|
32,937,015
|
|
|
|
31,090,115
|
|
|
|
30,990,455
|
|
|
|
31,231,860
|
|
|
|
30,865,429
|
|
Shareholders'
equity(B)
|
|
|
6,968,116
|
|
|
|
6,739,117
|
|
|
|
6,699,374
|
|
|
|
6,611,642
|
|
|
|
6,521,827
|
|
Total liabilities and
equity
|
|
$
|
39,905,131
|
|
|
$
|
37,829,232
|
|
|
$
|
37,689,829
|
|
|
$
|
37,843,502
|
|
|
$
|
37,387,256
|
|
|
(A)
|
Includes $(3,393), $(4,399), $(4,396), $(296) and
$1,517 in unrealized (losses) gains on available for sale
securities for the quarterly periods ended June 30, 2023, March 31,
2023, December 31, 2022, September 30, 2022 and June 30, 2022,
respectively.
|
(B)
|
Includes $(2,681), $(3,476), $(3,473), $(234) and
$1,198 in after-tax unrealized (losses) gains on available for sale
securities for the quarterly periods ended June 30, 2023, March 31,
2023, December 31, 2022, September 30, 2022 and June 30, 2022,
respectively.
|
Prosperity Bancshares,
Inc.®
|
Financial Highlights
(Unaudited)
|
(In
thousands)
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Jun 30,
2023
|
|
|
Jun 30,
2022
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
286,638
|
|
|
$
|
247,118
|
|
|
$
|
235,126
|
|
|
$
|
210,268
|
|
|
$
|
192,770
|
|
|
$
|
533,756
|
|
|
$
|
385,795
|
|
Securities(C)
|
|
|
72,053
|
|
|
|
73,185
|
|
|
|
72,533
|
|
|
|
68,761
|
|
|
|
64,111
|
|
|
|
145,238
|
|
|
|
119,122
|
|
Federal funds sold and
other earning assets
|
|
|
1,757
|
|
|
|
7,006
|
|
|
|
933
|
|
|
|
525
|
|
|
|
925
|
|
|
|
8,763
|
|
|
|
1,772
|
|
Total interest
income
|
|
|
360,448
|
|
|
|
327,309
|
|
|
|
308,592
|
|
|
|
279,554
|
|
|
|
257,806
|
|
|
|
687,757
|
|
|
|
506,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
63,964
|
|
|
|
47,343
|
|
|
|
36,048
|
|
|
|
14,669
|
|
|
|
8,641
|
|
|
|
111,307
|
|
|
|
17,395
|
|
Other
borrowings
|
|
|
57,351
|
|
|
|
34,396
|
|
|
|
14,682
|
|
|
|
3,719
|
|
|
|
450
|
|
|
|
91,747
|
|
|
|
450
|
|
Securities sold under
repurchase agreements
|
|
|
2,674
|
|
|
|
2,103
|
|
|
|
1,725
|
|
|
|
487
|
|
|
|
244
|
|
|
|
4,777
|
|
|
|
429
|
|
Subordinated
debentures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total interest
expense
|
|
|
123,989
|
|
|
|
83,842
|
|
|
|
52,455
|
|
|
|
18,875
|
|
|
|
9,335
|
|
|
|
207,831
|
|
|
|
18,274
|
|
Net interest
income
|
|
|
236,459
|
|
|
|
243,467
|
|
|
|
256,137
|
|
|
|
260,679
|
|
|
|
248,471
|
|
|
|
479,926
|
|
|
|
488,415
|
|
Provision for credit
losses
|
|
|
18,540
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,540
|
|
|
|
—
|
|
Net interest income
after provision for credit
losses
|
|
|
217,919
|
|
|
|
243,467
|
|
|
|
256,137
|
|
|
|
260,679
|
|
|
|
248,471
|
|
|
|
461,386
|
|
|
|
488,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds
(NSF) fees
|
|
|
8,512
|
|
|
|
8,095
|
|
|
|
8,519
|
|
|
|
8,887
|
|
|
|
8,484
|
|
|
|
16,607
|
|
|
|
16,608
|
|
Credit card, debit
card and ATM card
income
|
|
|
9,206
|
|
|
|
8,666
|
|
|
|
8,816
|
|
|
|
8,889
|
|
|
|
8,880
|
|
|
|
17,872
|
|
|
|
17,059
|
|
Service charges on
deposit accounts
|
|
|
6,078
|
|
|
|
5,926
|
|
|
|
5,932
|
|
|
|
6,222
|
|
|
|
6,365
|
|
|
|
12,004
|
|
|
|
12,576
|
|
Trust
income
|
|
|
3,358
|
|
|
|
3,225
|
|
|
|
3,498
|
|
|
|
3,174
|
|
|
|
2,875
|
|
|
|
6,583
|
|
|
|
5,578
|
|
Mortgage
income
|
|
|
661
|
|
|
|
238
|
|
|
|
102
|
|
|
|
340
|
|
|
|
502
|
|
|
|
899
|
|
|
|
957
|
|
Brokerage
income
|
|
|
1,000
|
|
|
|
1,149
|
|
|
|
905
|
|
|
|
940
|
|
|
|
917
|
|
|
|
2,149
|
|
|
|
1,809
|
|
Bank owned life
insurance income
|
|
|
1,553
|
|
|
|
1,354
|
|
|
|
1,329
|
|
|
|
1,214
|
|
|
|
1,293
|
|
|
|
2,907
|
|
|
|
2,576
|
|
Net gain on sale or
write-down of assets
|
|
|
1,994
|
|
|
|
121
|
|
|
|
2,087
|
|
|
|
50
|
|
|
|
1,108
|
|
|
|
2,115
|
|
|
|
1,797
|
|
Other noninterest
income
|
|
|
7,326
|
|
|
|
9,492
|
|
|
|
6,536
|
|
|
|
4,972
|
|
|
|
7,170
|
|
|
|
16,818
|
|
|
|
13,756
|
|
Total noninterest
income
|
|
|
39,688
|
|
|
|
38,266
|
|
|
|
37,724
|
|
|
|
34,688
|
|
|
|
37,594
|
|
|
|
77,954
|
|
|
|
72,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
84,723
|
|
|
|
77,798
|
|
|
|
75,353
|
|
|
|
79,578
|
|
|
|
80,371
|
|
|
|
162,521
|
|
|
|
159,782
|
|
Net occupancy and
equipment
|
|
|
8,935
|
|
|
|
8,025
|
|
|
|
8,147
|
|
|
|
8,412
|
|
|
|
8,039
|
|
|
|
16,960
|
|
|
|
15,887
|
|
Credit and debit card,
data processing and
software amortization
|
|
|
10,344
|
|
|
|
9,566
|
|
|
|
9,716
|
|
|
|
9,516
|
|
|
|
9,246
|
|
|
|
19,910
|
|
|
|
18,095
|
|
Regulatory assessments
and FDIC insurance
|
|
|
5,097
|
|
|
|
4,973
|
|
|
|
2,873
|
|
|
|
2,807
|
|
|
|
2,851
|
|
|
|
10,070
|
|
|
|
5,701
|
|
Core deposit
intangibles amortization
|
|
|
3,167
|
|
|
|
2,374
|
|
|
|
2,558
|
|
|
|
2,577
|
|
|
|
2,581
|
|
|
|
5,541
|
|
|
|
5,201
|
|
Depreciation
|
|
|
4,658
|
|
|
|
4,433
|
|
|
|
4,438
|
|
|
|
4,436
|
|
|
|
4,539
|
|
|
|
9,091
|
|
|
|
9,086
|
|
Communications
|
|
|
3,693
|
|
|
|
3,462
|
|
|
|
3,506
|
|
|
|
3,374
|
|
|
|
3,206
|
|
|
|
7,155
|
|
|
|
6,125
|
|
Other real estate
expense
|
|
|
(464)
|
|
|
|
58
|
|
|
|
154
|
|
|
|
198
|
|
|
|
195
|
|
|
|
(406)
|
|
|
|
409
|
|
Net (gain) loss on
sale or write-down of
other real estate
|
|
|
(33)
|
|
|
|
(13)
|
|
|
|
(63)
|
|
|
|
(213)
|
|
|
|
14
|
|
|
|
(46)
|
|
|
|
(607)
|
|
Merger related
expenses
|
|
|
12,891
|
|
|
|
860
|
|
|
|
272
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,751
|
|
|
|
—
|
|
Other noninterest
expense
|
|
|
12,859
|
|
|
|
11,464
|
|
|
|
12,290
|
|
|
|
11,529
|
|
|
|
11,836
|
|
|
|
24,323
|
|
|
|
23,049
|
|
Total noninterest
expense
|
|
|
145,870
|
|
|
|
123,000
|
|
|
|
119,244
|
|
|
|
122,214
|
|
|
|
122,878
|
|
|
|
268,870
|
|
|
|
242,728
|
|
Income before income
taxes
|
|
|
111,737
|
|
|
|
158,733
|
|
|
|
174,617
|
|
|
|
173,153
|
|
|
|
163,187
|
|
|
|
270,470
|
|
|
|
318,403
|
|
Provision for income
taxes
|
|
|
24,799
|
|
|
|
34,039
|
|
|
|
36,737
|
|
|
|
37,333
|
|
|
|
34,697
|
|
|
|
58,838
|
|
|
|
67,587
|
|
Net income available to
common shareholders
|
|
$
|
86,938
|
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
211,632
|
|
|
$
|
250,816
|
|
|
|
(C)
|
Interest income on
securities was reduced by net premium amortization of $7,131,
$7,384, $8,703, $9,947 and $11,450 for the three months ended June
30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and
June 30, 2022, respectively, and $14,515 and $24,307 for the six
months ended June 30, 2023 and June 30, 2022,
respectively.
|
Prosperity Bancshares,
Inc. ®
|
Financial Highlights
(Unaudited)
|
(Dollars and share
amounts in thousands, except per share data and market
prices)
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Jun 30,
2023
|
|
|
Jun 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(D) (E)
|
|
$
|
86,938
|
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
211,632
|
|
|
$
|
250,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.94
|
|
|
$
|
1.37
|
|
|
$
|
1.51
|
|
|
$
|
1.49
|
|
|
$
|
1.40
|
|
|
$
|
2.30
|
|
|
$
|
2.73
|
|
Diluted earnings per
share
|
|
$
|
0.94
|
|
|
$
|
1.37
|
|
|
$
|
1.51
|
|
|
$
|
1.49
|
|
|
$
|
1.40
|
|
|
$
|
2.30
|
|
|
$
|
2.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (F)
|
|
|
0.89
|
%
|
(J)
|
|
1.31
|
%
|
(J)
|
|
1.47
|
%
|
(J)
|
|
1.45
|
%
|
|
|
1.36
|
%
|
|
|
1.09
|
%
|
(J)
|
|
1.32
|
%
|
Return on average
common equity (F)
|
|
|
5.01
|
%
|
(J)
|
|
7.38
|
%
|
(J)
|
|
8.26
|
%
|
(J)
|
|
8.24
|
%
|
|
|
7.84
|
%
|
|
|
6.18
|
%
|
(J)
|
|
7.69
|
%
|
Return on average
tangible common
equity (F) (G)
|
|
|
9.67
|
%
|
(J)
|
|
14.34
|
%
|
(J)
|
|
16.26
|
%
|
(J)
|
|
16.44
|
%
|
|
|
15.73
|
%
|
|
|
11.97
|
%
|
(J)
|
|
15.52
|
%
|
Tax equivalent net
interest margin (D) (E) (H)
|
|
|
2.73
|
%
|
|
|
2.93
|
%
|
|
|
3.05
|
%
|
|
|
3.11
|
%
|
|
|
2.97
|
%
|
|
|
2.83
|
%
|
|
|
2.92
|
%
|
Efficiency ratio
(G) (I)
|
|
|
53.21
|
%
|
(K)
|
|
43.68
|
%
|
(K)
|
|
40.87
|
%
|
(K)
|
|
41.38
|
%
|
|
|
43.12
|
%
|
|
|
48.38
|
%
|
(K)
|
|
43.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
|
17.46
|
%
|
|
|
17.81
|
%
|
|
|
17.78
|
%
|
|
|
17.47
|
%
|
|
|
17.44
|
%
|
|
|
17.46
|
%
|
|
|
17.44
|
%
|
Common equity tier 1
capital
|
|
|
14.48
|
%
|
|
|
15.59
|
%
|
|
|
15.88
|
%
|
|
|
15.44
|
%
|
|
|
15.26
|
%
|
|
|
14.48
|
%
|
|
|
15.26
|
%
|
Tier 1 risk-based
capital
|
|
|
14.48
|
%
|
|
|
15.59
|
%
|
|
|
15.88
|
%
|
|
|
15.44
|
%
|
|
|
15.26
|
%
|
|
|
14.48
|
%
|
|
|
15.26
|
%
|
Total risk-based
capital
|
|
|
15.51
|
%
|
|
|
16.41
|
%
|
|
|
16.51
|
%
|
|
|
16.09
|
%
|
|
|
15.91
|
%
|
|
|
15.51
|
%
|
|
|
15.91
|
%
|
Tier 1 leverage
capital
|
|
|
9.96
|
%
|
|
|
10.06
|
%
|
|
|
10.16
|
%
|
|
|
9.94
|
%
|
|
|
9.58
|
%
|
|
|
9.96
|
%
|
|
|
9.58
|
%
|
Period end tangible
equity to period end
tangible assets (G)
|
|
|
9.64
|
%
|
|
|
10.01
|
%
|
|
|
9.93
|
%
|
|
|
9.62
|
%
|
|
|
9.48
|
%
|
|
|
9.64
|
%
|
|
|
9.48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in computing
earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
92,930
|
|
|
|
91,207
|
|
|
|
91,287
|
|
|
|
91,209
|
|
|
|
91,772
|
|
|
|
92,073
|
|
|
|
91,965
|
|
Diluted
|
|
|
92,930
|
|
|
|
91,207
|
|
|
|
91,287
|
|
|
|
91,209
|
|
|
|
91,772
|
|
|
|
92,073
|
|
|
|
91,965
|
|
Period end shares
outstanding
|
|
|
93,721
|
|
|
|
90,693
|
|
|
|
91,314
|
|
|
|
91,210
|
|
|
|
91,196
|
|
|
|
93,721
|
|
|
|
91,196
|
|
Cash dividends paid per
common share
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
1.10
|
|
|
$
|
1.04
|
|
Book value per common
share
|
|
$
|
74.35
|
|
|
$
|
74.31
|
|
|
$
|
73.37
|
|
|
$
|
72.49
|
|
|
$
|
71.51
|
|
|
$
|
74.35
|
|
|
$
|
71.51
|
|
Tangible book value per
common share (G)
|
|
$
|
37.49
|
|
|
$
|
38.13
|
|
|
$
|
37.41
|
|
|
$
|
36.47
|
|
|
$
|
35.46
|
|
|
$
|
37.49
|
|
|
$
|
35.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
63.13
|
|
|
$
|
78.76
|
|
|
$
|
76.32
|
|
|
$
|
77.93
|
|
|
$
|
73.50
|
|
|
$
|
78.76
|
|
|
$
|
80.46
|
|
Low
|
|
$
|
55.12
|
|
|
$
|
58.25
|
|
|
$
|
66.71
|
|
|
$
|
65.37
|
|
|
$
|
64.69
|
|
|
$
|
55.12
|
|
|
$
|
64.69
|
|
Period end closing
price
|
|
$
|
56.48
|
|
|
$
|
61.52
|
|
|
$
|
72.68
|
|
|
$
|
66.68
|
|
|
$
|
68.27
|
|
|
$
|
56.48
|
|
|
$
|
68.27
|
|
Employees – FTE
(excluding overtime)
|
|
|
3,710
|
|
|
|
3,651
|
|
|
|
3,633
|
|
|
|
3,592
|
|
|
|
3,576
|
|
|
|
3,710
|
|
|
|
3,576
|
|
Number of banking
centers
|
|
|
286
|
|
|
|
272
|
|
|
|
272
|
|
|
|
272
|
|
|
|
272
|
|
|
|
286
|
|
|
|
272
|
|
|
(D)
|
Includes purchase
accounting adjustments for the periods presented as
follows:
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun
30, 2022
|
|
Jun 30,
2023
|
|
Jun 30,
2022
|
Loan discount
accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-PCD
|
$1,242
|
|
$532
|
|
$603
|
|
$912
|
|
$(265)
|
|
$1,774
|
|
$4,409
|
PCD
|
$1,178
|
|
$339
|
|
$310
|
|
$322
|
|
$324
|
|
$1,517
|
|
$845
|
Securities net
amortization
|
$(426)
|
|
$2
|
|
$12
|
|
$40
|
|
$12
|
|
$(424)
|
|
$64
|
Time deposits
amortization
|
$187
|
|
$53
|
|
$59
|
|
$68
|
|
$84
|
|
$240
|
|
$184
|
|
|
(E)
|
Using effective tax
rate of 22.2%, 21.4%, 21.0%, 21.6% and 21.3% for the three months
ended June 30, 2023, March 31, 2023, December 31, 2022, September
30, 2022 and June 30, 2022, respectively, and 21.8% and 21.2% for
the six months ended June 30, 2023 and June 30,
2022.
|
(F)
|
Interim periods
annualized.
|
(G)
|
Refer to the "Notes
to Selected Financial Data" at the end of this Earnings Release for
a reconciliation of this non-GAAP financial measure to the nearest
GAAP financial measure.
|
(H)
|
Net interest margin
for all periods presented is based on average balances on an actual
365-day basis.
|
(I)
|
Calculated by
dividing total noninterest expense, excluding credit loss
provisions, by net interest income plus noninterest income,
excluding net gains and losses on the sale or write down of assets
and securities. Additionally, taxes are not part of this
calculation.
|
(J)
|
For calculations of
the annualized returns on average assets, average common equity and
average tangible common equity excluding merger related provision
for credit losses, net of tax, and merger related expenses, net of
tax, refer to the "Notes to Selected Financial Data" at the end of
this Earnings Release for a reconciliation of this non-GAAP
financial measure to the nearest GAAP financial
measure.
|
(K)
|
For calculations of
the efficiency ratio excluding merger related provision for credit
losses, net of tax, and merger related expenses, net of tax,
refer to the "Notes to Selected Financial Data" at the end of this
Earnings Release for a reconciliation of this non-GAAP financial
measure to the nearest GAAP financial measure.
|
Prosperity Bancshares,
Inc.®
|
Financial Highlights
(Unaudited)
|
(Dollars in
thousands)
|
|
YIELD
ANALYSIS
|
|
Three Months
Ended
|
|
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Jun 30,
2022
|
|
|
|
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(L)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(L)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(L)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
3,910
|
|
|
$
|
67
|
|
|
6.87 %
|
|
|
$
|
2,343
|
|
|
$
|
38
|
|
|
6.58 %
|
|
|
$
|
3,199
|
|
|
$
|
40
|
|
|
5.02 %
|
|
|
Loans held for
investment
|
|
|
19,802,751
|
|
|
|
270,688
|
|
|
5.48 %
|
|
|
|
18,317,712
|
|
|
|
236,606
|
|
|
5.24 %
|
|
|
|
16,799,609
|
|
|
|
182,286
|
|
|
4.35 %
|
|
|
Loans held for
investment -
Warehouse Purchase Program
|
|
|
898,768
|
|
|
|
15,883
|
|
|
7.09 %
|
|
|
|
617,822
|
|
|
|
10,474
|
|
|
6.88 %
|
|
|
|
1,257,521
|
|
|
|
10,444
|
|
|
3.33 %
|
|
|
Total loans
|
|
|
20,705,429
|
|
|
|
286,638
|
|
|
5.55 %
|
|
|
|
18,937,877
|
|
|
|
247,118
|
|
|
5.29 %
|
|
|
|
18,060,329
|
|
|
|
192,770
|
|
|
4.28 %
|
|
|
Investment
securities
|
|
|
13,976,818
|
|
|
|
72,053
|
|
|
2.07 %
|
|
(M)
|
|
14,332,509
|
|
|
|
73,185
|
|
|
2.07 %
|
|
(M)
|
|
14,989,666
|
|
|
|
64,111
|
|
|
1.72 %
|
|
(M)
|
Federal funds sold and
other
earning assets
|
|
|
150,300
|
|
|
|
1,757
|
|
|
4.69 %
|
|
|
|
600,048
|
|
|
|
7,006
|
|
|
4.74 %
|
|
|
|
540,907
|
|
|
|
925
|
|
|
0.69 %
|
|
|
Total interest-earning
assets
|
|
|
34,832,547
|
|
|
|
360,448
|
|
|
4.15 %
|
|
|
|
33,870,434
|
|
|
|
327,309
|
|
|
3.92 %
|
|
|
|
33,590,902
|
|
|
|
257,806
|
|
|
3.08 %
|
|
|
Allowance for credit
losses on
loans
|
|
|
(283,594)
|
|
|
|
|
|
|
|
|
|
(282,316)
|
|
|
|
|
|
|
|
|
|
(284,550)
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,738,673
|
|
|
|
|
|
|
|
|
|
4,589,735
|
|
|
|
|
|
|
|
|
|
4,448,060
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
39,287,626
|
|
|
|
|
|
|
|
|
$
|
38,177,853
|
|
|
|
|
|
|
|
|
$
|
37,754,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
5,147,453
|
|
|
$
|
3,791
|
|
|
0.30 %
|
|
|
$
|
5,877,641
|
|
|
$
|
3,792
|
|
|
0.26 %
|
|
|
$
|
6,437,614
|
|
|
$
|
2,154
|
|
|
0.13 %
|
|
|
Savings and money
market
deposits
|
|
|
9,156,047
|
|
|
|
43,025
|
|
|
1.88 %
|
|
|
|
9,579,679
|
|
|
|
35,521
|
|
|
1.50 %
|
|
|
|
10,702,273
|
|
|
|
4,473
|
|
|
0.17 %
|
|
|
Certificates and other
time
deposits
|
|
|
2,652,064
|
|
|
|
17,148
|
|
|
2.59 %
|
|
|
|
2,045,580
|
|
|
|
8,030
|
|
|
1.59 %
|
|
|
|
2,409,663
|
|
|
|
2,014
|
|
|
0.34 %
|
|
|
Other
borrowings
|
|
|
4,427,914
|
|
|
|
57,351
|
|
|
5.20 %
|
|
|
|
2,887,011
|
|
|
|
34,396
|
|
|
4.83 %
|
|
|
|
112,582
|
|
|
|
450
|
|
|
1.60 %
|
|
|
Securities sold under
repurchase
agreements
|
|
|
441,303
|
|
|
|
2,674
|
|
|
2.43 %
|
|
|
|
427,887
|
|
|
|
2,103
|
|
|
1.99 %
|
|
|
|
463,108
|
|
|
|
244
|
|
|
0.21 %
|
|
|
Subordinated
debentures
|
|
|
1,547
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total interest-bearing
liabilities
|
|
|
21,826,328
|
|
|
|
123,989
|
|
|
2.28 %
|
|
(N)
|
|
20,817,798
|
|
|
|
83,842
|
|
|
1.63 %
|
|
(N)
|
|
20,125,240
|
|
|
|
9,335
|
|
|
0.19 %
|
|
(N)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand
deposits
|
|
|
10,274,819
|
|
|
|
|
|
|
|
|
|
10,389,980
|
|
|
|
|
|
|
|
|
|
10,855,802
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on
off-balance sheet credit
exposures
|
|
|
30,022
|
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
220,775
|
|
|
|
|
|
|
|
|
|
180,685
|
|
|
|
|
|
|
|
|
|
186,344
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
32,351,944
|
|
|
|
|
|
|
|
|
|
31,418,410
|
|
|
|
|
|
|
|
|
|
31,197,333
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
6,935,682
|
|
|
|
|
|
|
|
|
|
6,759,443
|
|
|
|
|
|
|
|
|
|
6,557,079
|
|
|
|
|
|
|
|
|
Total liabilities
and
shareholders' equity
|
|
$
|
39,287,626
|
|
|
|
|
|
|
|
|
$
|
38,177,853
|
|
|
|
|
|
|
|
|
$
|
37,754,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin
|
|
|
|
|
$
|
236,459
|
|
|
2.72 %
|
|
|
|
|
|
$
|
243,467
|
|
|
2.92 %
|
|
|
|
|
|
$
|
248,471
|
|
|
2.97 %
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
854
|
|
|
|
|
|
|
|
|
|
833
|
|
|
|
|
|
|
|
|
|
445
|
|
|
|
|
|
Net interest income and
margin
(tax equivalent basis)
|
|
|
|
|
$
|
237,313
|
|
|
2.73 %
|
|
|
|
|
|
$
|
244,300
|
|
|
2.93 %
|
|
|
|
|
|
$
|
248,916
|
|
|
2.97 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(L)
|
Annualized and based
on an actual 365-day basis.
|
(M)
|
Yield on securities
was impacted by net premium amortization of $7,131, $7,384 and
$11,450 for the three months ended June 30, 2023, March 31, 2023
and June 30, 2022, respectively.
|
(N)
|
Total cost of funds,
including noninterest bearing deposits, was 1.55%, 1.09% and 0.12%
for the three months ended June 30, 2023, March 31, 2023 and June
30, 2022, respectively.
|
Prosperity Bancshares,
Inc.®
|
Financial Highlights
(Unaudited)
|
(Dollars in
thousands)
|
|
YIELD
ANALYSIS
|
|
Year-to-Date
|
|
|
|
|
Jun 30,
2023
|
|
|
Jun 30,
2022
|
|
|
|
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(O)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(O)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
3,131
|
|
|
$
|
105
|
|
|
6.76 %
|
|
|
$
|
3,901
|
|
|
$
|
80
|
|
|
4.14 %
|
|
|
Loans held for
investment
|
|
|
19,064,334
|
|
|
|
507,294
|
|
|
5.37 %
|
|
|
|
16,756,345
|
|
|
|
365,319
|
|
|
4.40 %
|
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
759,071
|
|
|
|
26,357
|
|
|
7.00 %
|
|
|
|
1,263,132
|
|
|
|
20,396
|
|
|
3.26 %
|
|
|
Total loans
|
|
|
19,826,536
|
|
|
|
533,756
|
|
|
5.43 %
|
|
|
|
18,023,378
|
|
|
|
385,795
|
|
|
4.32 %
|
|
|
Investment
securities
|
|
|
14,153,681
|
|
|
|
145,238
|
|
|
2.07 %
|
|
(P)
|
|
14,384,681
|
|
|
|
119,122
|
|
|
1.67 %
|
|
(P)
|
Federal funds sold and
other earning assets
|
|
|
373,931
|
|
|
|
8,763
|
|
|
4.73 %
|
|
|
|
1,333,800
|
|
|
|
1,772
|
|
|
0.27 %
|
|
|
Total interest-earning
assets
|
|
|
34,354,148
|
|
|
|
687,757
|
|
|
4.04 %
|
|
|
|
33,741,859
|
|
|
|
506,689
|
|
|
3.03 %
|
|
|
Allowance for credit
losses on loans
|
|
|
(282,959)
|
|
|
|
|
|
|
|
|
|
(285,118)
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,667,547
|
|
|
|
|
|
|
|
|
|
4,453,117
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
38,738,736
|
|
|
|
|
|
|
|
|
$
|
37,909,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
5,510,530
|
|
|
$
|
7,583
|
|
|
0.28 %
|
|
|
$
|
6,605,431
|
|
|
$
|
4,606
|
|
|
0.14 %
|
|
|
Savings and money
market deposits
|
|
|
9,366,694
|
|
|
|
78,546
|
|
|
1.69 %
|
|
|
|
10,785,902
|
|
|
|
8,499
|
|
|
0.16 %
|
|
|
Certificates and other
time deposits
|
|
|
2,350,498
|
|
|
|
25,178
|
|
|
2.16 %
|
|
|
|
2,522,966
|
|
|
|
4,290
|
|
|
0.34 %
|
|
|
Other
borrowings
|
|
|
3,661,719
|
|
|
|
91,747
|
|
|
5.05 %
|
|
|
|
56,602
|
|
|
|
450
|
|
|
1.60 %
|
|
|
Securities sold under
repurchase agreements
|
|
|
434,632
|
|
|
|
4,777
|
|
|
2.22 %
|
|
|
|
457,612
|
|
|
|
429
|
|
|
0.19 %
|
|
|
Subordinated
debentures
|
|
|
774
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total interest-bearing
liabilities
|
|
|
21,324,847
|
|
|
|
207,831
|
|
|
1.97 %
|
|
(Q)
|
|
20,428,513
|
|
|
|
18,274
|
|
|
0.18 %
|
|
(Q)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
10,332,082
|
|
|
|
|
|
|
|
|
|
10,746,819
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on off-balance sheet credit
exposures
|
|
|
29,985
|
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
203,769
|
|
|
|
|
|
|
|
|
|
181,157
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
31,890,683
|
|
|
|
|
|
|
|
|
|
31,386,436
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
6,848,053
|
|
|
|
|
|
|
|
|
|
6,523,422
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
|
38,738,736
|
|
|
|
|
|
|
|
|
$
|
37,909,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin
|
|
|
|
|
$
|
479,926
|
|
|
2.82 %
|
|
|
|
|
|
$
|
488,415
|
|
|
2.92 %
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
1,687
|
|
|
|
|
|
|
|
|
|
917
|
|
|
|
|
|
Net interest income and
margin (tax equivalent basis)
|
|
|
|
|
$
|
481,613
|
|
|
2.83 %
|
|
|
|
|
|
$
|
489,332
|
|
|
2.92 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(O)
|
Annualized and based
on an actual 365-day basis.
|
(P)
|
Yield on securities
was impacted by net premium amortization of $14,515 and $24,307 for
the six months ended June 30, 2023 and 2022,
respectively.
|
(Q)
|
Total cost of funds,
including noninterest bearing deposits, was 1.32% and 0.12% for the
six months ended June 30, 2023 and 2022,
respectively.
|
Prosperity Bancshares,
Inc.®
|
Financial Highlights
(Unaudited)
|
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
YIELD TREND
(R)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
6.87
|
%
|
|
|
6.58
|
%
|
|
|
6.09
|
%
|
|
|
5.47
|
%
|
|
|
5.02
|
%
|
Loans held for
investment
|
|
5.48
|
%
|
|
|
5.24
|
%
|
|
|
4.98
|
%
|
|
|
4.58
|
%
|
|
|
4.35
|
%
|
Loans held for
investment - Warehouse
Purchase Program
|
|
7.09
|
%
|
|
|
6.88
|
%
|
|
|
6.02
|
%
|
|
|
4.56
|
%
|
|
|
3.33
|
%
|
Total loans
|
|
5.55
|
%
|
|
|
5.29
|
%
|
|
|
5.02
|
%
|
|
|
4.58
|
%
|
|
|
4.28
|
%
|
Investment securities
(S)
|
|
2.07
|
%
|
|
|
2.07
|
%
|
|
|
1.96
|
%
|
|
|
1.82
|
%
|
|
|
1.72
|
%
|
Federal funds sold and
other earning assets
|
|
4.69
|
%
|
|
|
4.74
|
%
|
|
|
3.63
|
%
|
|
|
2.37
|
%
|
|
|
0.69
|
%
|
Total interest-earning
assets
|
|
4.15
|
%
|
|
|
3.92
|
%
|
|
|
3.67
|
%
|
|
|
3.33
|
%
|
|
|
3.08
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
0.30
|
%
|
|
|
0.26
|
%
|
|
|
0.22
|
%
|
|
|
0.15
|
%
|
|
|
0.13
|
%
|
Savings and money
market deposits
|
|
1.88
|
%
|
|
|
1.50
|
%
|
|
|
1.13
|
%
|
|
|
0.37
|
%
|
|
|
0.17
|
%
|
Certificates and other
time deposits
|
|
2.59
|
%
|
|
|
1.59
|
%
|
|
|
0.94
|
%
|
|
|
0.52
|
%
|
|
|
0.34
|
%
|
Other
borrowings
|
|
5.20
|
%
|
|
|
4.83
|
%
|
|
|
3.97
|
%
|
|
|
2.55
|
%
|
|
|
1.60
|
%
|
Securities sold under
repurchase agreements
|
|
2.43
|
%
|
|
|
1.99
|
%
|
|
|
1.55
|
%
|
|
|
0.41
|
%
|
|
|
0.21
|
%
|
Subordinated
debentures
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total interest-bearing
liabilities
|
|
2.28
|
%
|
|
|
1.63
|
%
|
|
|
1.06
|
%
|
|
|
0.38
|
%
|
|
|
0.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
|
2.72
|
%
|
|
|
2.92
|
%
|
|
|
3.04
|
%
|
|
|
3.11
|
%
|
|
|
2.97
|
%
|
Net Interest Margin
(tax equivalent)
|
|
2.73
|
%
|
|
|
2.93
|
%
|
|
|
3.05
|
%
|
|
|
3.11
|
%
|
|
|
2.97
|
%
|
|
|
(R)
|
Annualized and based
on average balances on an actual 365-day basis.
|
(S)
|
Yield on securities
was impacted by net premium amortization of $7,131, $7,384, $8,703,
$9,947 and $11,450 for the three months ended June 30, 2023, March
31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022,
respectively.
|
Prosperity Bancshares,
Inc.®
|
Financial Highlights
(Unaudited)
|
(Dollars in
thousands)
|
|
|
|
Three Months Ended
|
|
|
|
Jun 30, 2023
|
|
|
Mar 31, 2023
|
|
|
Dec 31, 2022
|
|
|
Sep 30, 2022
|
|
|
Jun 30, 2022
|
|
Balance Sheet Averages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
3,910
|
|
|
$
|
2,343
|
|
|
$
|
1,758
|
|
|
$
|
4,136
|
|
|
$
|
3,199
|
|
Loans held for
investment
|
|
|
19,802,751
|
|
|
|
18,317,712
|
|
|
|
17,818,769
|
|
|
|
17,275,866
|
|
|
|
16,799,609
|
|
Loans held for
investment - Warehouse Purchase
Program
|
|
|
898,768
|
|
|
|
617,822
|
|
|
|
747,007
|
|
|
|
938,589
|
|
|
|
1,257,521
|
|
Total Loans
|
|
|
20,705,429
|
|
|
|
18,937,877
|
|
|
|
18,567,534
|
|
|
|
18,218,591
|
|
|
|
18,060,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
|
13,976,818
|
|
|
|
14,332,509
|
|
|
|
14,715,516
|
|
|
|
14,962,847
|
|
|
|
14,989,666
|
|
Federal funds sold and
other earning assets
|
|
|
150,300
|
|
|
|
600,048
|
|
|
|
101,986
|
|
|
|
87,859
|
|
|
|
540,907
|
|
Total interest-earning
assets
|
|
|
34,832,547
|
|
|
|
33,870,434
|
|
|
|
33,385,036
|
|
|
|
33,269,297
|
|
|
|
33,590,902
|
|
Allowance for credit
losses on loans
|
|
|
(283,594)
|
|
|
|
(282,316)
|
|
|
|
(282,546)
|
|
|
|
(283,244)
|
|
|
|
(284,550)
|
|
Cash and due from
banks
|
|
|
281,593
|
|
|
|
319,960
|
|
|
|
306,235
|
|
|
|
302,479
|
|
|
|
309,223
|
|
Goodwill
|
|
|
3,291,659
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
Core deposit
intangibles, net
|
|
|
48,616
|
|
|
|
50,208
|
|
|
|
52,591
|
|
|
|
55,158
|
|
|
|
57,728
|
|
Other real
estate
|
|
|
2,712
|
|
|
|
2,083
|
|
|
|
2,075
|
|
|
|
1,652
|
|
|
|
1,639
|
|
Fixed assets,
net
|
|
|
357,593
|
|
|
|
342,380
|
|
|
|
338,572
|
|
|
|
336,657
|
|
|
|
336,242
|
|
Other assets
|
|
|
756,500
|
|
|
|
643,467
|
|
|
|
584,302
|
|
|
|
552,929
|
|
|
|
511,591
|
|
Total
assets
|
|
$
|
39,287,626
|
|
|
$
|
38,177,853
|
|
|
$
|
37,617,902
|
|
|
$
|
37,466,565
|
|
|
$
|
37,754,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
10,274,819
|
|
|
$
|
10,389,980
|
|
|
$
|
11,064,714
|
|
|
$
|
11,048,856
|
|
|
$
|
10,855,802
|
|
Interest-bearing demand
deposits
|
|
|
5,147,453
|
|
|
|
5,877,641
|
|
|
|
5,843,672
|
|
|
|
6,155,511
|
|
|
|
6,437,614
|
|
Savings and money
market deposits
|
|
|
9,156,047
|
|
|
|
9,579,679
|
|
|
|
9,805,024
|
|
|
|
10,172,986
|
|
|
|
10,702,273
|
|
Certificates and other
time deposits
|
|
|
2,652,064
|
|
|
|
2,045,580
|
|
|
|
2,066,085
|
|
|
|
2,185,529
|
|
|
|
2,409,663
|
|
Total
deposits
|
|
|
27,230,383
|
|
|
|
27,892,880
|
|
|
|
28,779,495
|
|
|
|
29,562,882
|
|
|
|
30,405,352
|
|
Other
borrowings
|
|
|
4,427,914
|
|
|
|
2,887,011
|
|
|
|
1,465,533
|
|
|
|
577,828
|
|
|
|
112,582
|
|
Securities sold under
repurchase agreements
|
|
|
441,303
|
|
|
|
427,887
|
|
|
|
441,405
|
|
|
|
473,584
|
|
|
|
463,108
|
|
Subordinated
debentures
|
|
|
1,547
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Allowance for credit
losses on off-balance sheet credit
exposures
|
|
|
30,022
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
Other
liabilities
|
|
|
220,775
|
|
|
|
180,685
|
|
|
|
224,512
|
|
|
|
231,812
|
|
|
|
186,344
|
|
Shareholders'
equity
|
|
|
6,935,682
|
|
|
|
6,759,443
|
|
|
|
6,677,010
|
|
|
|
6,590,512
|
|
|
|
6,557,079
|
|
Total liabilities and
equity
|
|
$
|
39,287,626
|
|
|
$
|
38,177,853
|
|
|
$
|
37,617,902
|
|
|
$
|
37,466,565
|
|
|
$
|
37,754,412
|
|
Prosperity Bancshares,
Inc.®
|
Financial Highlights
(Unaudited)
|
(Dollars in
thousands)
|
|
|
|
Jun 30, 2023
|
|
Mar 31, 2023
|
|
Dec 31, 2022
|
|
Sep 30, 2022
|
|
Jun 30, 2022
|
Period End Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
$2,245,620
|
10.5 %
|
|
$2,074,078
|
10.7 %
|
|
$2,165,263
|
11.6 %
|
|
$2,197,033
|
11.9 %
|
|
$2,183,277
|
12.0 %
|
Warehouse purchase
program
|
|
1,148,883
|
5.3 %
|
|
799,115
|
4.1 %
|
|
740,620
|
3.9 %
|
|
922,764
|
5.0 %
|
|
1,137,623
|
6.2 %
|
Construction, land
development and other land loans
|
|
3,215,016
|
14.8 %
|
|
2,899,980
|
15.0 %
|
|
2,805,438
|
14.9 %
|
|
2,659,552
|
14.4 %
|
|
2,460,526
|
13.5 %
|
1-4 family
residential
|
|
6,780,813
|
31.3 %
|
|
6,055,532
|
31.3 %
|
|
5,774,814
|
30.6 %
|
|
5,447,993
|
29.4 %
|
|
5,156,200
|
28.3 %
|
Home equity
|
|
977,070
|
4.5 %
|
|
959,124
|
5.0 %
|
|
966,410
|
5.1 %
|
|
943,197
|
5.1 %
|
|
932,725
|
5.1 %
|
Commercial real estate
(includes multi-family
residential)
|
|
5,676,526
|
26.2 %
|
|
5,133,693
|
26.6 %
|
|
4,986,211
|
26.5 %
|
|
4,966,243
|
26.8 %
|
|
4,967,662
|
27.3 %
|
Agriculture (includes
farmland)
|
|
804,376
|
3.7 %
|
|
721,395
|
3.7 %
|
|
688,033
|
3.6 %
|
|
670,603
|
3.6 %
|
|
665,960
|
3.7 %
|
Consumer and
other
|
|
305,207
|
1.4 %
|
|
288,300
|
1.5 %
|
|
283,559
|
1.5 %
|
|
288,834
|
1.6 %
|
|
274,532
|
1.5 %
|
Energy
|
|
500,435
|
2.3 %
|
|
403,142
|
2.1 %
|
|
429,479
|
2.3 %
|
|
410,069
|
2.2 %
|
|
430,339
|
2.4 %
|
Total loans
|
|
$21,653,946
|
|
|
$19,334,359
|
|
|
$18,839,827
|
|
|
$18,506,288
|
|
|
$18,208,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
DDA
|
|
$10,364,921
|
37.9 %
|
|
$10,108,348
|
37.4 %
|
|
$10,915,448
|
38.2 %
|
|
$11,154,143
|
38.1 %
|
|
$11,032,184
|
36.9 %
|
Interest-bearing
DDA
|
|
4,953,090
|
18.1 %
|
|
5,332,086
|
19.8 %
|
|
5,986,203
|
21.0 %
|
|
6,027,157
|
20.6 %
|
|
6,331,314
|
21.2 %
|
Money market
|
|
5,904,160
|
21.5 %
|
|
6,021,449
|
22.3 %
|
|
6,164,025
|
21.6 %
|
|
6,438,787
|
22.0 %
|
|
6,646,726
|
22.3 %
|
Savings
|
|
3,179,351
|
11.6 %
|
|
3,304,482
|
12.2 %
|
|
3,471,970
|
12.2 %
|
|
3,563,776
|
12.1 %
|
|
3,597,820
|
12.0 %
|
Certificates and other
time deposits
|
|
2,979,364
|
10.9 %
|
|
2,237,871
|
8.3 %
|
|
1,995,885
|
7.0 %
|
|
2,116,232
|
7.2 %
|
|
2,257,574
|
7.6 %
|
Total
deposits
|
|
$27,380,886
|
|
|
$27,004,236
|
|
|
$28,533,531
|
|
|
$29,300,095
|
|
|
$29,865,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
|
79.1 %
|
|
|
71.6 %
|
|
|
66.0 %
|
|
|
63.2 %
|
|
|
61.0 %
|
|
Prosperity Bancshares,
Inc.®
|
Financial Highlights
(Unaudited)
|
(Dollars in
thousands)
|
|
Construction
Loans
|
|
|
|
Jun 30, 2023
|
|
|
Mar 31, 2023
|
|
|
Dec 31, 2022
|
|
|
Sep 30, 2022
|
|
|
Jun 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family
residential
construction
|
|
$
|
1,244,631
|
|
|
38.7
|
%
|
|
$
|
1,179,883
|
|
|
40.7
|
%
|
|
$
|
1,097,176
|
|
|
39.1
|
%
|
|
$
|
1,004,000
|
|
|
37.8
|
%
|
|
$
|
911,443
|
|
|
37.0
|
%
|
Land
development
|
|
|
310,199
|
|
|
9.7
|
%
|
|
|
222,511
|
|
|
7.7
|
%
|
|
|
181,747
|
|
|
6.5
|
%
|
|
|
145,303
|
|
|
5.5
|
%
|
|
|
133,398
|
|
|
5.4
|
%
|
Raw land
|
|
|
359,228
|
|
|
11.2
|
%
|
|
|
326,168
|
|
|
11.2
|
%
|
|
|
332,603
|
|
|
11.9
|
%
|
|
|
343,066
|
|
|
12.9
|
%
|
|
|
316,750
|
|
|
12.9
|
%
|
Residential
lots
|
|
|
216,706
|
|
|
6.7
|
%
|
|
|
226,600
|
|
|
7.8
|
%
|
|
|
243,942
|
|
|
8.7
|
%
|
|
|
237,714
|
|
|
8.9
|
%
|
|
|
223,703
|
|
|
9.1
|
%
|
Commercial
lots
|
|
|
158,278
|
|
|
4.9
|
%
|
|
|
167,151
|
|
|
5.8
|
%
|
|
|
177,378
|
|
|
6.3
|
%
|
|
|
181,679
|
|
|
6.8
|
%
|
|
|
184,794
|
|
|
7.5
|
%
|
Commercial construction
and other
|
|
|
927,025
|
|
|
28.8
|
%
|
|
|
777,678
|
|
|
26.8
|
%
|
|
|
772,606
|
|
|
27.5
|
%
|
|
|
747,803
|
|
|
28.1
|
%
|
|
|
690,453
|
|
|
28.1
|
%
|
Net unaccreted
discount
|
|
|
(1,051)
|
|
|
|
|
|
(11)
|
|
|
|
|
|
(14)
|
|
|
|
|
|
(13)
|
|
|
|
|
|
(15)
|
|
|
|
Total construction
loans
|
|
$
|
3,215,016
|
|
|
|
|
$
|
2,899,980
|
|
|
|
|
$
|
2,805,438
|
|
|
|
|
$
|
2,659,552
|
|
|
|
|
$
|
2,460,526
|
|
|
|
Non-Owner Occupied
Commercial Real Estate Loans by Metropolitan Statistical Area (MSA)
as of June 30, 2023
|
|
|
Houston
|
|
|
Dallas
|
|
|
Austin
|
|
|
OK City
|
|
|
Tulsa
|
|
|
Other (T)
|
|
|
Total
|
|
|
Collateral Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopping
center/retail
|
$
|
373,900
|
|
|
$
|
281,847
|
|
|
$
|
59,128
|
|
|
$
|
29,016
|
|
|
$
|
18,882
|
|
|
$
|
312,841
|
|
|
$
|
1,075,614
|
|
|
Commercial and
industrial
buildings
|
|
170,181
|
|
|
|
110,798
|
|
|
|
29,482
|
|
|
|
43,950
|
|
|
|
14,714
|
|
|
|
256,246
|
|
|
|
625,371
|
|
|
Office
buildings
|
|
81,491
|
|
|
|
227,950
|
|
|
|
25,751
|
|
|
|
66,157
|
|
|
|
4,132
|
|
|
|
100,329
|
|
|
|
505,810
|
|
|
Medical
buildings
|
|
79,536
|
|
|
|
17,707
|
|
|
|
3,757
|
|
|
|
25,514
|
|
|
|
35,555
|
|
|
|
54,935
|
|
|
|
217,004
|
|
|
Apartment
buildings
|
|
166,554
|
|
|
|
130,937
|
|
|
|
17,770
|
|
|
|
13,550
|
|
|
|
8,555
|
|
|
|
165,768
|
|
|
|
503,134
|
|
|
Hotel
|
|
118,798
|
|
|
|
89,146
|
|
|
|
39,351
|
|
|
|
25,585
|
|
|
|
—
|
|
|
|
171,692
|
|
|
|
444,572
|
|
|
Other
|
|
86,007
|
|
|
|
91,433
|
|
|
|
43,997
|
|
|
|
7,893
|
|
|
|
1,762
|
|
|
|
79,522
|
|
|
|
310,614
|
|
|
Total
|
$
|
1,076,467
|
|
|
$
|
949,818
|
|
|
$
|
219,236
|
|
|
$
|
211,665
|
|
|
$
|
83,600
|
|
|
$
|
1,141,333
|
|
|
$
|
3,682,119
|
|
(U)
|
Acquired
Loans
|
|
|
Non-PCD Loans
|
|
|
PCD Loans
|
|
|
Total Acquired Loans
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Mar 31,
2023
|
|
|
Balance at
Jun 30,
2023
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Mar 31,
2023
|
|
|
Balance at
Jun 30,
2023
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Mar 31,
2023
|
|
|
Balance at
Jun 30,
2023
|
|
Loan marks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(V)
|
$
|
345,599
|
|
|
$
|
1,701
|
|
|
$
|
1,208
|
|
|
$
|
320,052
|
|
|
$
|
3,022
|
|
|
$
|
2,776
|
|
|
$
|
665,651
|
|
|
$
|
4,723
|
|
|
$
|
3,984
|
|
FirstCapital Bank
(W)
|
|
22,593
|
|
|
|
—
|
|
|
|
21,844
|
|
|
|
8,336
|
|
|
|
—
|
|
|
|
7,334
|
|
|
|
30,929
|
|
|
|
—
|
|
|
|
29,178
|
|
Total
|
|
368,192
|
|
|
|
1,701
|
|
|
|
23,052
|
|
|
|
328,388
|
|
|
|
3,022
|
|
|
|
10,110
|
|
|
|
696,580
|
|
|
|
4,723
|
|
|
|
33,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio loan
balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(V)
|
|
12,286,159
|
|
|
|
1,249,921
|
|
|
|
1,174,855
|
|
|
|
689,573
|
|
|
|
58,549
|
|
|
|
61,484
|
|
|
|
12,975,732
|
|
|
|
1,308,470
|
|
|
|
1,236,339
|
|
FirstCapital Bank
(W)
|
|
1,035,768
|
|
|
|
—
|
|
|
|
953,646
|
|
|
|
613,917
|
|
|
|
—
|
|
|
|
599,865
|
|
|
|
1,649,685
|
|
|
|
—
|
|
|
|
1,553,511
|
|
Total
|
|
13,321,927
|
|
|
|
1,249,921
|
|
|
|
2,128,501
|
|
|
|
1,303,490
|
|
|
|
58,549
|
|
|
|
661,349
|
|
|
|
14,625,417
|
|
(X)
|
|
1,308,470
|
|
|
|
2,789,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio loan
balances less loan marks
|
$
|
12,953,735
|
|
|
$
|
1,248,220
|
|
|
$
|
2,105,449
|
|
|
$
|
975,102
|
|
|
$
|
55,527
|
|
|
$
|
651,239
|
|
|
$
|
13,928,837
|
|
|
$
|
1,303,747
|
|
|
$
|
2,756,688
|
|
|
|
(T)
|
Includes other MSA
and non-MSA regions.
|
(U)
|
Represents a portion
of total commercial real estate loans of $5.677 billion as of June
30, 2023.
|
(V)
|
Includes Bank
Arlington, American State Bank, Community National Bank, First
Federal Bank Texas, Coppermark Bank, First Victoria National Bank,
The F&M Bank & Trust Company, Tradition Bank and
LegacyTexas Bank.
|
(W)
|
FirstCapital Bank
merger was completed on May 1, 2023. During the second quarter of
2023, the Merger resulted in the addition of $1.650 billion in
loans with related purchase accounting adjustments of $30.9 million
at acquisition date.
|
(X)
|
Actual principal
balances acquired.
|
Prosperity Bancshares,
Inc.®
|
Financial Highlights
(Unaudited)
|
(Dollars in
thousands)
|
|
|
Three Months Ended
|
|
|
Year-to-Date
|
|
|
Jun 30, 2023
|
|
|
Mar 31, 2023
|
|
|
Dec 31, 2022
|
|
|
Sep 30, 2022
|
|
|
Jun 30, 2022
|
|
|
Jun 30, 2023
|
|
|
Jun 30, 2022
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
|
57,723
|
|
|
$
|
22,496
|
|
|
$
|
19,614
|
|
|
$
|
17,729
|
|
|
$
|
20,619
|
|
|
$
|
57,723
|
|
|
$
|
20,619
|
|
Accruing loans 90 or
more days past due
|
|
1,744
|
|
|
|
—
|
|
|
|
5,917
|
|
|
|
378
|
|
|
|
13
|
|
|
|
1,744
|
|
|
|
13
|
|
Total nonperforming
loans
|
|
59,467
|
|
|
|
22,496
|
|
|
|
25,531
|
|
|
|
18,107
|
|
|
|
20,632
|
|
|
|
59,467
|
|
|
|
20,632
|
|
Repossessed
assets
|
|
153
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13
|
|
|
|
—
|
|
|
|
153
|
|
|
|
—
|
|
Other real
estate
|
|
3,107
|
|
|
|
1,989
|
|
|
|
1,963
|
|
|
|
1,758
|
|
|
|
1,555
|
|
|
|
3,107
|
|
|
|
1,555
|
|
Total nonperforming
assets
|
$
|
62,727
|
|
|
$
|
24,485
|
|
|
$
|
27,494
|
|
|
$
|
19,878
|
|
|
$
|
22,187
|
|
|
$
|
62,727
|
|
|
$
|
22,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
24,027
|
|
|
$
|
2,832
|
|
|
$
|
3,921
|
|
|
$
|
2,376
|
|
|
$
|
2,964
|
|
|
$
|
24,027
|
|
|
$
|
2,964
|
|
Construction, land
development and other land loans
|
|
4,245
|
|
|
|
3,210
|
|
|
|
6,166
|
|
|
|
1,712
|
|
|
|
1,866
|
|
|
|
4,245
|
|
|
|
1,866
|
|
1-4 family residential
(includes home equity)
|
|
19,609
|
|
|
|
16,951
|
|
|
|
15,326
|
|
|
|
13,986
|
|
|
|
14,335
|
|
|
|
19,609
|
|
|
|
14,335
|
|
Commercial real estate
(includes multi-family
residential)
|
|
13,504
|
|
|
|
1,051
|
|
|
|
1,649
|
|
|
|
1,364
|
|
|
|
2,448
|
|
|
|
13,504
|
|
|
|
2,448
|
|
Agriculture (includes
farmland)
|
|
1,284
|
|
|
|
432
|
|
|
|
421
|
|
|
|
434
|
|
|
|
567
|
|
|
|
1,284
|
|
|
|
567
|
|
Consumer and
other
|
|
58
|
|
|
|
9
|
|
|
|
11
|
|
|
|
6
|
|
|
|
7
|
|
|
|
58
|
|
|
|
7
|
|
Total
|
$
|
62,727
|
|
|
$
|
24,485
|
|
|
$
|
27,494
|
|
|
$
|
19,878
|
|
|
$
|
22,187
|
|
|
$
|
62,727
|
|
|
$
|
22,187
|
|
Number of
loans/properties
|
|
241
|
|
|
|
190
|
|
|
|
170
|
|
|
|
150
|
|
|
|
160
|
|
|
|
241
|
|
|
|
160
|
|
Allowance for credit
losses on loans
|
$
|
345,209
|
|
|
$
|
282,191
|
|
|
$
|
281,576
|
|
|
$
|
282,179
|
|
|
$
|
283,959
|
|
|
$
|
345,209
|
|
|
$
|
283,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
160
|
|
|
$
|
(1,472)
|
|
|
$
|
(643)
|
|
|
$
|
(15)
|
|
|
$
|
(197)
|
|
|
$
|
(1,312)
|
|
|
$
|
(183)
|
|
Construction, land
development and other land loans
|
|
50
|
|
|
|
(13)
|
|
|
|
(5)
|
|
|
|
(4)
|
|
|
|
(5)
|
|
|
|
37
|
|
|
|
425
|
|
1-4 family residential
(includes home equity)
|
|
(70)
|
|
|
|
(140)
|
|
|
|
(55)
|
|
|
|
(202)
|
|
|
|
(32)
|
|
|
|
(210)
|
|
|
|
55
|
|
Commercial real estate
(includes multi-family
residential)
|
|
14,957
|
|
|
|
(1)
|
|
|
|
74
|
|
|
|
757
|
|
|
|
395
|
|
|
|
14,956
|
|
|
|
29
|
|
Agriculture (includes
farmland)
|
|
(78)
|
|
|
|
(6)
|
|
|
|
(14)
|
|
|
|
119
|
|
|
|
(9)
|
|
|
|
(84)
|
|
|
|
(112)
|
|
Consumer and
other
|
|
1,046
|
|
|
|
1,017
|
|
|
|
1,246
|
|
|
|
1,125
|
|
|
|
1,052
|
|
|
|
2,063
|
|
|
|
2,207
|
|
Total
|
$
|
16,065
|
|
|
$
|
(615)
|
|
|
$
|
603
|
|
|
$
|
1,780
|
|
|
$
|
1,204
|
|
|
$
|
15,450
|
|
|
$
|
2,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
average interest-earning assets
|
|
0.18
|
%
|
|
|
0.07
|
%
|
|
|
0.08
|
%
|
|
|
0.06
|
%
|
|
|
0.07
|
%
|
|
|
0.18
|
%
|
|
|
0.07
|
%
|
Nonperforming assets to
loans and other real estate
|
|
0.29
|
%
|
|
|
0.13
|
%
|
|
|
0.15
|
%
|
|
|
0.11
|
%
|
|
|
0.12
|
%
|
|
|
0.29
|
%
|
|
|
0.12
|
%
|
Net charge-offs to
average loans (annualized)
|
|
0.31
|
%
|
|
|
-0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.04
|
%
|
|
|
0.03
|
%
|
|
|
0.16
|
%
|
|
|
0.03
|
%
|
Allowance for credit
losses on loans to total loans
|
|
1.59
|
%
|
|
|
1.46
|
%
|
|
|
1.49
|
%
|
|
|
1.52
|
%
|
|
|
1.56
|
%
|
|
|
1.59
|
%
|
|
|
1.56
|
%
|
Allowance for credit
losses on loans to total loans,
excluding Warehouse Purchase Program loans
(G)
|
|
1.68
|
%
|
|
|
1.52
|
%
|
|
|
1.56
|
%
|
|
|
1.60
|
%
|
|
|
1.66
|
%
|
|
|
1.68
|
%
|
|
|
1.66
|
%
|
Prosperity Bancshares,
Inc.®
Notes to Selected Financial Data
(Unaudited)
(Dollars and share amounts in thousands, except
per share data)
NOTES TO SELECTED FINANCIAL DATA
Prosperity's management uses certain non-GAAP (generally
accepted accounting principles) financial measures to evaluate its
performance. Specifically, Prosperity reviews diluted earnings per
share excluding merger related provision for credit losses, net of
tax, and merger related expenses, net of tax; return on average
assets excluding merger related provision for credit losses, net of
tax, and merger related expenses, net of tax; return on average
common equity excluding merger related provision for credit losses,
net of tax, and merger related expenses, net of tax; return on
average tangible common equity; return on average tangible common
equity excluding merger related provision for credit losses, net of
tax, and merger related expenses, net of tax; tangible book value
per share; the tangible equity to tangible assets ratio; allowance
for credit losses to total loans excluding Warehouse Purchase
Program; the efficiency ratio, excluding net gains and losses on
the sale or write down of assets and securities; and the efficiency
ratio, excluding net gains and losses on the sale or write down of
assets and securities and merger related expenses, for internal
planning and forecasting purposes. In addition, due to the
application of purchase accounting, Prosperity uses certain
non-GAAP financial measures and ratios that exclude the impact of
these items to evaluate its allowance for credit losses to total
loans (excluding Warehouse Purchase Program loans). Prosperity has
included information below relating to these non-GAAP financial
measures for the applicable periods presented.
|
|
Three Months Ended
|
|
|
Year-to-Date
|
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Jun 30,
2023
|
|
|
Jun 30,
2022
|
|
Reconciliation of diluted earnings per share to
diluted
earnings per share excluding merger related provision
for credit losses, net of tax, and merger related
expenses, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (unadjusted)
|
|
$
|
0.94
|
|
|
$
|
1.37
|
|
|
$
|
1.51
|
|
|
$
|
1.49
|
|
|
$
|
1.40
|
|
|
$
|
2.30
|
|
|
$
|
2.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
86,938
|
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
211,632
|
|
|
$
|
250,816
|
|
Merger related
provision for credit losses, net of tax(Y)
|
|
|
14,647
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14,647
|
|
|
|
—
|
|
Merger related
expenses, net of tax(Y)
|
|
|
10,184
|
|
|
|
679
|
|
|
|
215
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10,863
|
|
|
|
—
|
|
Net income excluding
merger related provision for credit
losses, net of tax, and merger related expenses, net of
tax(Y):
|
|
$
|
111,769
|
|
|
$
|
125,373
|
|
|
$
|
138,095
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
237,142
|
|
|
$
|
250,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
|
|
92,930
|
|
|
|
91,207
|
|
|
|
91,287
|
|
|
|
91,209
|
|
|
|
91,772
|
|
|
|
92,073
|
|
|
|
91,965
|
|
Merger related
provision for credit losses, net of tax,
per diluted common share(Y)
|
|
$
|
0.16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.16
|
|
|
|
—
|
|
Merger related expenses
per diluted share, net of tax,
per diluted common share(Y)
|
|
$
|
0.11
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.12
|
|
|
|
—
|
|
Diluted earnings per
share excluding merger related
provision for credit losses, net of tax, and merger
related expenses, net of tax:(Y)
|
|
$
|
1.21
|
|
|
$
|
1.38
|
|
|
$
|
1.51
|
|
|
$
|
1.49
|
|
|
$
|
1.40
|
|
|
$
|
2.58
|
|
|
$
|
2.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of return on average assets to
return on average assets excluding merger related
provision for credit losses, net of tax, and merger
related expenses, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (unadjusted)
|
|
|
0.89
|
%
|
|
|
1.31
|
%
|
|
|
1.47
|
%
|
|
|
1.45
|
%
|
|
|
1.36
|
%
|
|
|
1.09
|
%
|
|
|
1.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding
merger related provision for
credit losses, net of tax, and merger related expenses,
net of tax(Y)
|
|
$
|
111,769
|
|
|
$
|
125,373
|
|
|
$
|
138,095
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
237,142
|
|
|
$
|
250,816
|
|
Average total
assets
|
|
$
|
39,287,626
|
|
|
$
|
38,177,853
|
|
|
$
|
37,617,902
|
|
|
$
|
37,466,565
|
|
|
$
|
37,754,412
|
|
|
$
|
38,738,736
|
|
|
$
|
37,909,858
|
|
Return on average
assets excluding merger related
provision for credit losses, net of tax, and merger
related expenses, net of tax (F) (Y)
|
|
|
1.14
|
%
|
|
|
1.31
|
%
|
|
|
1.47
|
%
|
|
|
1.45
|
%
|
|
|
1.36
|
%
|
|
|
1.22
|
%
|
|
|
1.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of return on average common
equity to return on average common equity
excluding merger related provision for credit
losses, net of tax, and merger related expenses,
net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (unadjusted)
|
|
|
5.01
|
%
|
|
|
7.38
|
%
|
|
|
8.26
|
%
|
|
|
8.24
|
%
|
|
|
7.84
|
%
|
|
|
6.18
|
%
|
|
|
7.69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
merger related provision for
credit losses, net of tax, and merger related
expenses, net of tax(Y)
|
|
$
|
111,769
|
|
|
$
|
125,373
|
|
|
$
|
138,095
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
237,142
|
|
|
$
|
250,816
|
|
Average shareholders'
equity
|
|
$
|
6,935,682
|
|
|
$
|
6,759,443
|
|
|
$
|
6,677,010
|
|
|
$
|
6,590,512
|
|
|
$
|
6,557,079
|
|
|
$
|
6,848,053
|
|
|
$
|
6,523,422
|
|
Return on average
common equity excluding merger
related provision for credit losses, net of tax, and
merger related expenses, net of tax (F)
(Y)
|
|
|
6.45
|
%
|
|
|
7.42
|
%
|
|
|
8.27
|
%
|
|
|
8.24
|
%
|
|
|
7.84
|
%
|
|
|
6.93
|
%
|
|
|
7.69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year-to-Date
|
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Jun 30,
2023
|
|
|
Jun 30,
2022
|
|
Reconciliation of return on average common equity
to
return on average tangible common equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
86,938
|
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
211,632
|
|
|
$
|
250,816
|
|
Average shareholders'
equity
|
|
$
|
6,935,682
|
|
|
$
|
6,759,443
|
|
|
$
|
6,677,010
|
|
|
$
|
6,590,512
|
|
|
$
|
6,557,079
|
|
|
$
|
6,848,053
|
|
|
$
|
6,523,422
|
|
Less: Average goodwill
and other intangible assets
|
|
|
(3,340,275)
|
|
|
|
(3,281,845)
|
|
|
|
(3,284,228)
|
|
|
|
(3,286,795)
|
|
|
|
(3,289,365)
|
|
|
|
(3,311,222)
|
|
|
|
(3,290,667)
|
|
Average tangible
shareholders' equity
|
|
$
|
3,595,407
|
|
|
$
|
3,477,598
|
|
|
$
|
3,392,782
|
|
|
$
|
3,303,717
|
|
|
$
|
3,267,714
|
|
|
$
|
3,536,831
|
|
|
$
|
3,232,755
|
|
Return on average
tangible common equity (F)
|
|
|
9.67
|
%
|
|
|
14.34
|
%
|
|
|
16.26
|
%
|
|
|
16.44
|
%
|
|
|
15.73
|
%
|
|
|
11.97
|
%
|
|
|
15.52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of return on average common equity
to
return on average tangible common equity excluding
merger related provision for credit losses, net of tax,
and merger related expenses, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
merger related provision for credit
losses, net of tax, and merger related expenses, net of
tax(Y)
|
|
$
|
111,769
|
|
|
$
|
125,373
|
|
|
$
|
138,095
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
237,142
|
|
|
$
|
250,816
|
|
Average shareholders'
equity
|
|
$
|
6,935,682
|
|
|
$
|
6,759,443
|
|
|
$
|
6,677,010
|
|
|
$
|
6,590,512
|
|
|
$
|
6,557,079
|
|
|
$
|
6,848,053
|
|
|
$
|
6,523,422
|
|
Less: Average goodwill
and other intangible assets
|
|
|
(3,340,275)
|
|
|
|
(3,281,845)
|
|
|
|
(3,284,228)
|
|
|
|
(3,286,795)
|
|
|
|
(3,289,365)
|
|
|
|
(3,311,222)
|
|
|
|
(3,290,667)
|
|
Average tangible
shareholders' equity
|
|
$
|
3,595,407
|
|
|
$
|
3,477,598
|
|
|
$
|
3,392,782
|
|
|
$
|
3,303,717
|
|
|
$
|
3,267,714
|
|
|
$
|
3,536,831
|
|
|
$
|
3,232,755
|
|
Return on average
tangible common equity excluding
merger related provision for credit losses, net of tax, and
merger related expenses, net of tax (F)
(Y)
|
|
|
12.43
|
%
|
|
|
14.42
|
%
|
|
|
16.28
|
%
|
|
|
16.44
|
%
|
|
|
15.73
|
%
|
|
|
13.41
|
%
|
|
|
15.52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of book value per share to tangible
book
value per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
6,968,116
|
|
|
$
|
6,739,117
|
|
|
$
|
6,699,374
|
|
|
$
|
6,611,642
|
|
|
$
|
6,521,827
|
|
|
$
|
6,968,116
|
|
|
$
|
6,521,827
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,454,826)
|
|
|
|
(3,280,610)
|
|
|
|
(3,282,984)
|
|
|
|
(3,285,542)
|
|
|
|
(3,288,119)
|
|
|
|
(3,454,826)
|
|
|
|
(3,288,119)
|
|
Tangible shareholders'
equity
|
|
$
|
3,513,290
|
|
|
$
|
3,458,507
|
|
|
$
|
3,416,390
|
|
|
$
|
3,326,100
|
|
|
$
|
3,233,708
|
|
|
$
|
3,513,290
|
|
|
$
|
3,233,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
|
|
93,721
|
|
|
|
90,693
|
|
|
|
91,314
|
|
|
|
91,210
|
|
|
|
91,196
|
|
|
|
93,721
|
|
|
|
91,196
|
|
Tangible book value per
share
|
|
$
|
37.49
|
|
|
$
|
38.13
|
|
|
$
|
37.41
|
|
|
$
|
36.47
|
|
|
$
|
35.46
|
|
|
$
|
37.49
|
|
|
$
|
35.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of equity to assets ratio to period
end
tangible equity to period end tangible assets
ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible shareholders'
equity
|
|
$
|
3,513,290
|
|
|
$
|
3,458,507
|
|
|
$
|
3,416,390
|
|
|
$
|
3,326,100
|
|
|
$
|
3,233,708
|
|
|
$
|
3,513,290
|
|
|
$
|
3,233,708
|
|
Total assets
|
|
$
|
39,905,131
|
|
|
$
|
37,829,232
|
|
|
$
|
37,689,829
|
|
|
$
|
37,843,502
|
|
|
$
|
37,387,256
|
|
|
$
|
39,905,131
|
|
|
$
|
37,387,256
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,454,826)
|
|
|
|
(3,280,610)
|
|
|
|
(3,282,984)
|
|
|
|
(3,285,542)
|
|
|
|
(3,288,119)
|
|
|
|
(3,454,826)
|
|
|
|
(3,288,119)
|
|
Tangible
assets
|
|
$
|
36,450,305
|
|
|
$
|
34,548,622
|
|
|
$
|
34,406,845
|
|
|
$
|
34,557,960
|
|
|
$
|
34,099,137
|
|
|
$
|
36,450,305
|
|
|
$
|
34,099,137
|
|
Period end tangible
equity to period end tangible assets ratio
|
|
|
9.64
|
%
|
|
|
10.01
|
%
|
|
|
9.93
|
%
|
|
|
9.62
|
%
|
|
|
9.48
|
%
|
|
|
9.64
|
%
|
|
|
9.48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
345,209
|
|
|
$
|
282,191
|
|
|
$
|
281,576
|
|
|
$
|
282,179
|
|
|
$
|
283,959
|
|
|
$
|
345,209
|
|
|
$
|
283,959
|
|
Total loans
|
|
$
|
21,653,946
|
|
|
$
|
19,334,359
|
|
|
$
|
18,839,827
|
|
|
$
|
18,506,288
|
|
|
$
|
18,208,844
|
|
|
$
|
21,653,946
|
|
|
$
|
18,208,844
|
|
Less: Warehouse
Purchase Program loans
|
|
|
(1,148,883)
|
|
|
|
(799,115)
|
|
|
|
(740,620)
|
|
|
|
(922,764)
|
|
|
|
(1,137,623)
|
|
|
|
(1,148,883)
|
|
|
|
(1,137,623)
|
|
Total loans less
Warehouse Purchase Program
|
|
$
|
20,505,063
|
|
|
$
|
18,535,244
|
|
|
$
|
18,099,207
|
|
|
$
|
17,583,524
|
|
|
$
|
17,071,221
|
|
|
$
|
20,505,063
|
|
|
$
|
17,071,221
|
|
Allowance for credit
losses on loans to total loans excluding
Warehouse Purchase Program
|
|
|
1.68
|
%
|
|
|
1.52
|
%
|
|
|
1.56
|
%
|
|
|
1.60
|
%
|
|
|
1.66
|
%
|
|
|
1.68
|
%
|
|
|
1.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of efficiency ratio to efficiency
ratio
excluding net gains and losses on the sale or write down
of assets and securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
145,870
|
|
|
$
|
123,000
|
|
|
$
|
119,244
|
|
|
$
|
122,214
|
|
|
$
|
122,878
|
|
|
$
|
268,870
|
|
|
$
|
242,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
236,459
|
|
|
$
|
243,467
|
|
|
$
|
256,137
|
|
|
$
|
260,679
|
|
|
$
|
248,471
|
|
|
$
|
479,926
|
|
|
$
|
488,415
|
|
Noninterest
income
|
|
|
39,688
|
|
|
|
38,266
|
|
|
|
37,724
|
|
|
|
34,688
|
|
|
|
37,594
|
|
|
|
77,954
|
|
|
|
72,716
|
|
Less: net gain on sale
or write down of assets
|
|
|
1,994
|
|
|
|
121
|
|
|
|
2,087
|
|
|
|
50
|
|
|
|
1,108
|
|
|
|
2,115
|
|
|
|
1,797
|
|
Noninterest income
excluding net gains and losses on the
sale or write down of assets and securities
|
|
|
37,694
|
|
|
|
38,145
|
|
|
|
35,637
|
|
|
|
34,638
|
|
|
|
36,486
|
|
|
|
75,839
|
|
|
|
70,919
|
|
Total income excluding
net gains and losses on the sale
or write down of assets and securities
|
|
$
|
274,153
|
|
|
$
|
281,612
|
|
|
$
|
291,774
|
|
|
$
|
295,317
|
|
|
$
|
284,957
|
|
|
$
|
555,765
|
|
|
$
|
559,334
|
|
Efficiency ratio,
excluding net gains and losses on the sale
or write down of assets and securities
|
|
|
53.21
|
%
|
|
|
43.68
|
%
|
|
|
40.87
|
%
|
|
|
41.38
|
%
|
|
|
43.12
|
%
|
|
|
48.38
|
%
|
|
|
43.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year-to-Date
|
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Jun 30,
2023
|
|
|
Jun 30,
2022
|
|
Reconciliation of efficiency ratio to efficiency
ratio,
excluding net gains and losses on the sale or write down
of assets and securities and merger related
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
145,870
|
|
|
$
|
123,000
|
|
|
$
|
119,244
|
|
|
$
|
122,214
|
|
|
$
|
122,878
|
|
|
$
|
268,870
|
|
|
$
|
242,728
|
|
Less: merger related
expenses
|
|
|
12,891
|
|
|
|
860
|
|
|
|
272
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,751
|
|
|
|
—
|
|
Noninterest expense
excluding merger related expenses
|
|
$
|
132,979
|
|
|
$
|
122,140
|
|
|
$
|
118,972
|
|
|
$
|
122,214
|
|
|
$
|
122,878
|
|
|
$
|
255,119
|
|
|
$
|
242,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
236,459
|
|
|
$
|
243,467
|
|
|
$
|
256,137
|
|
|
$
|
260,679
|
|
|
$
|
248,471
|
|
|
$
|
479,926
|
|
|
$
|
488,415
|
|
Noninterest
income
|
|
|
39,688
|
|
|
|
38,266
|
|
|
|
37,724
|
|
|
|
34,688
|
|
|
|
37,594
|
|
|
|
77,954
|
|
|
|
72,716
|
|
Less: net gain on sale
or write down of assets
|
|
|
1,994
|
|
|
|
121
|
|
|
|
2,087
|
|
|
|
50
|
|
|
|
1,108
|
|
|
|
2,115
|
|
|
|
1,797
|
|
Noninterest income
excluding net gains and losses on the
sale or write down of assets and securities
|
|
|
37,694
|
|
|
|
38,145
|
|
|
|
35,637
|
|
|
|
34,638
|
|
|
|
36,486
|
|
|
|
75,839
|
|
|
|
70,919
|
|
Total income excluding
net gains and losses on the sale
or write down of assets and securities
|
|
$
|
274,153
|
|
|
$
|
281,612
|
|
|
$
|
291,774
|
|
|
$
|
295,317
|
|
|
$
|
284,957
|
|
|
$
|
555,765
|
|
|
$
|
559,334
|
|
Efficiency ratio,
excluding net gains and losses on the sale
or write down of assets and securities and merger related
expenses
|
|
|
48.51
|
%
|
|
|
43.37
|
%
|
|
|
40.78
|
%
|
|
|
41.38
|
%
|
|
|
43.12
|
%
|
|
|
45.90
|
%
|
|
|
43.40
|
%
|
|
|
(Y)
|
Calculated assuming
a federal tax rate of 21.0%.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/prosperity-bancshares-inc-reports-second-quarter-2023-earnings-301885849.html
SOURCE Prosperity Bancshares, Inc.