- First quarter net income of $124.7
million and earnings per share (diluted) of $1.37
- Loans, excluding Warehouse Purchase Program loans, increased
$436.0 million or 2.4% (9.6%
annualized) during first quarter 2023
- Allowance for credit losses on loans to total loans,
excluding Warehouse Purchase Program loans, of
1.52%(1)
- Nonperforming assets remain low at 0.07% of first quarter
average interest-earning assets
- Return (annualized) on first quarter average assets of
1.31%, average common equity of 7.38%, average tangible common
equity of 14.34%(1), and efficiency ratio of
43.68%
- Repurchased 611,263 shares of common stock during the first
quarter of 2023
- Prosperity Bancshares was ranked Number 6 in Forbes' 2023
America's Best Banks
- Received all necessary regulatory approvals for the
acquisition of First Bancshares of Texas, Inc., Midland, Texas
- Pending acquisition of Lone Star State Bancshares, Inc.,
Lubbock, Texas
HOUSTON, April 26,
2023 /PRNewswire/ -- Prosperity Bancshares,
Inc.® (NYSE: PB), the parent company of Prosperity
Bank® (collectively, "Prosperity"), reported net income
of $124.7 million for the quarter
ended March 31, 2023 compared with $122.3 million for the same period in 2022. Net
income per diluted common share was $1.37 for the quarter ended March 31, 2023
compared with $1.33 for the same
period in 2022, an increase of 3.0%, and the annualized return on
first quarter average assets was 1.31%. Additionally, loans,
excluding Warehouse Purchase Program loans, increased $436.0 million or 2.4% (9.6% annualized) during
the first quarter of 2023. Nonperforming assets remain low at 0.07%
of first quarter average interest-earning assets.
"Prosperity continued to show strong earnings despite the
failures of Silicon Valley Bank and Signature Bank and the overall
pressures on the banking system. Net income was $124.7 million for the three months ended
March 31, 2023, compared with
$122.3 million for the same
period in 2022, an increase of $2.4
million or 1.9%. Loans, excluding Warehouse Purchase Program
loans, increased 9.6% annualized for the quarter, while
nonperforming assets remained low at 0.07% of first quarter average
interest-earning assets. Prosperity repurchased 611,263 of its
shares in the first quarter. We are also pleased to announce that
we received all necessary regulatory and shareholder approvals for
the acquisition of First Bancshares of Texas, Inc.," said David Zalman, Prosperity's Senior Chairman and
Chief Executive Officer.
"As we all are aware, the market was flooded with excess
funds the last few years during the COVID-19 pandemic and now the
Federal Reserve is reducing the money supply in its efforts to
lower inflation. In turn, most banks saw a loss of deposits during
the quarter, including from some customers who were concerned with
liquidity after the failure of SVB and Signature Bank. Prosperity
has established lines of credit at the Federal Home Loan Bank and
the Federal Reserve in the amount of $14.7 billion, of which $11.3 billion is currently available. This
is approximately $4 billion in excess
of our uninsured and pledged deposits," added Zalman.
"Texas and Oklahoma continue to do well. Texas' population increased by approximately
470,000 in 2022, continuing a steady uptick. From 2002 to
2022, Texas gained over 9 million
residents, more than any other state and almost 3 million more than
Florida, the next largest gaining
state. Texas and Oklahoma continue to benefit from strong
economies and are home to 56 Fortune 500 headquartered companies.
Texas now has more Fortune 500
companies than any other state including New York and California," continued Zalman.
"Each year, Forbes judges the 100 largest
banks in the United States on
growth, credit quality, earnings, as well as other factors, for its
America's Best Banks list. Prosperity Bank has been ranked in the
Top 10 since the list's inception in 2010. We have twice been
ranked number 1, were ranked number 2 in 2021 and are ranked number
6 for 2023. It is a testament to Prosperity's performance, culture,
vision and consistency and distinguishes us among most
banks. I congratulate and thank all our customers,
associates and directors for helping us achieve this honor," stated
Zalman.
"Prosperity has a talented team, deep bench, strong
earnings, a solid capital position and a fortress balance sheet. We
will continue working to help our customers and associates succeed
and to build shareholder value," concluded Zalman.
Results of Operations for the Three Months Ended
March 31, 2023
Net income was $124.7
million(2) for the three months ended
March 31, 2023 compared with $122.3
million(3) for the same period in 2022, an
increase of $2.4 million or 1.9%. The
change was primarily due to an increase in interest income from
loans, securities and federal funds sold and other earning assets,
partially offset by a decrease in SBA Paycheck Protection Program
("PPP") loans fees and interest income of $3.6 million, a decrease in loan discount
accretion of $4.3 million and an
increase in interest expense. Net income per diluted common share
was $1.37 for the three months ended
March 31, 2023 compared with $1.33 for the same period in 2022, an increase of
3.0%. On a linked quarter basis, net income was $124.7 million(2) for the three months
ended March 31, 2023 compared with $137.9 million(4) for the three months
ended December 31, 2022. The change was primarily due to a
decrease in net interest income. Net income per diluted common
share was $1.37 for the three months
ended March 31, 2023 compared with $1.51 for the three months ended
December 31, 2022. Annualized returns on average assets,
average common equity and average tangible common equity for the
three months ended March 31, 2023 were 1.31%, 7.38% and
14.34%(1), respectively. Prosperity's efficiency ratio
(excluding net gains and losses on the sale or write down of assets
and securities) was 43.68%(1) for the three months ended
March 31, 2023.
Net interest income before provision for credit losses for the
three months ended March 31, 2023 was $243.5 million compared with $239.9 million for the same period in 2022, an
increase of $3.5 million or 1.5%. The
change was primarily due to an increase in the average balances and
average rates on loans held for investment and investment
securities, partially offset by a decrease in PPP fees and interest
income of $3.6 million, a decrease in
loan discount accretion of $4.3
million, an increase in average borrowings and an increase
in the average rates on interest-bearing deposits. On a linked
quarter basis, net interest income before provision for credit
losses was $243.5 million compared
with $256.1 million for the three
months ended December 31, 2022, a decrease of $12.7 million or 4.9%. The change was
primarily due to an increase in the average balances and average
rates on borrowings and an increase in average rates on
interest-bearing deposits, partially offset by an increase in the
average balances and average rates on loans held for investment and
federal funds sold and other earning assets.
The net interest margin on a tax equivalent basis was 2.93% for
the three months ended March 31, 2023 compared with 2.88% for
the same period in 2022. The change was primarily due to an
increase in the average balances and average rates on loans held
for investment and investment securities and an increase in average
rates on federal funds sold and other earnings assets, partially
offset by a decrease in PPP fees and interest income of
$3.6 million, a decrease in loan
discount accretion of $4.3 million,
an increase in average borrowings and an increase in the average
rates on interest-bearing deposits. On a linked quarter basis, the
net interest margin on a tax equivalent basis was 2.93% for the
three months ended March 31, 2023 compared with 3.05% for the
three months ended December 31, 2022. The change was primarily
due to an increase in the average balances and average rates on
borrowings and increase in average rates on interest-bearing
deposits, partially offset by an increase in the average balances
and average rates on loans held for investment and federal funds
sold and other earning assets.
Noninterest income was $38.3
million for the three months ended March 31, 2023
compared with $35.1 million for the
same period in 2022, an increase of $3.1
million or 9.0%. This change was primarily due to an
increase in trust income and in other noninterest income. On
a linked quarter basis, noninterest income was $38.3 million compared with $37.7 million for the three months ended
December 31, 2022, an increase of $542
thousand or 1.4%.
Noninterest expense was $123.0
million for the three months ended March 31, 2023
compared with $119.9 million for the
same period in 2022, an increase of $3.2
million or 2.6%. The change was primarily due to
increases in regulatory assessments and FDIC insurance and merger
related expenses, partially offset by a decrease in salaries and
benefits. On a linked quarter basis, noninterest expense
increased $3.8 million or 3.1%
to $123.0 million compared with
$119.2 million for the three months
ended December 31, 2022. This change was primarily due to
increases in salaries and benefits and regulatory assessments and
FDIC insurance, partially offset by a decrease in other noninterest
expense.
Balance Sheet Information
At March 31, 2023, Prosperity had
$37.829 billion in total assets, a
decrease of $442.0 million or 1.2%,
compared with $38.271 billion at
March 31, 2022.
Loans at March 31, 2023 were
$19.334 billion, an increase of
$494.5 million or 2.6% (10.5%
annualized) from $18.840 billion at
December 31, 2022, primarily due to
increases in 1-4 family residential and commercial real estate
loans. Loans increased $1.267 billion
or 7.0%, compared with $18.068
billion at March 31, 2022,
primarily due to increases in 1-4 family residential loans, and
construction, land development and other land loans, partially
offset by decreases in Warehouse Purchase Program loans and PPP
loans. Loans, excluding Warehouse Purchase Program loans, at
March 31, 2023 were $18.535 billion compared to $18.099 billion at December 31, 2022, an increase of $436.0 million or 2.4% (9.6% annualized), and
compared to $16.723 billion at
March 31, 2022, an increase of
$1.812 billion or 10.8%.
Deposits at March 31, 2023 were
$27.004 billion, a decrease of
$1.529 billion or 5.4% compared with
$28.534 billion at December 31, 2022 primarily due to a decrease in
business demand deposits and public fund deposits. Deposits
decreased $4.064 billion or 13.1%,
compared with $31.068 billion at
March 31, 2022, primarily due to a
decrease in public fund deposits.
Asset Quality
Nonperforming assets totaled $24.5
million or 0.07% of quarterly average interest-earning
assets at March 31, 2023 compared
with $27.5 million or 0.08% of quarterly average
interest-earning assets at December 31,
2022 and $27.2 million or
0.08% of quarterly average interest-earning assets at March 31, 2022.
The allowance for credit losses on loans and off-balance sheet
credit exposures was $312.1 million
at March 31, 2023 compared with
$311.5 million at December 31, 2022 and $315.1 million at March
31, 2022. There was no provision for credit losses for the
three months ended March 31, 2023,
December 31, 2022 and March 31, 2022.
The allowance for credit losses on loans was $282.2 million or 1.46% of total loans at
March 31, 2023 compared with
$281.6 million or 1.49% of total
loans at December 31, 2022 and
$285.2 million or 1.58% of total
loans at March 31, 2022. Excluding
Warehouse Purchase Program loans, the allowance for credit losses
on loans to total loans was 1.52%(1) at March 31, 2023 compared with 1.56%(1) at
December 31, 2022 and 1.71%(1)
at March 31, 2022.
Net recoveries were $615 thousand
for the three months ended March 31,
2023 compared with net charge-offs of $603 thousand for three months ended December 31, 2022 and net charge-offs of
$1.2 million for the three months
ended March 31, 2022. During the
first quarter of 2023, net recoveries did not include any purchased
credit deteriorated ("PCD") loans and $241
thousand of specific reserves on resolved PCD loans was
released to the general reserve.
Dividend
Prosperity Bancshares declared a second quarter 2023 cash
dividend of $0.55 per share to be
paid on July 3, 2023, to all
shareholders of record as of June 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 611,263 shares of its common stock at an
average weighted price of $62.20 per
share during the three months ended March
31, 2023.
Pending Acquisition of First Bancshares of Texas, Inc.
On October 11, 2022, Prosperity
Bancshares and First Bancshares of Texas, Inc. ("First Bancshares") jointly
announced the signing of a definitive merger agreement whereby
First Bancshares, the parent company of FirstCapital Bank of
Texas, N.A. ("FirstCapital Bank")
will merge with and into Prosperity. FirstCapital Bank operates 16
full-service banking offices in 6 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. As of
March 31, 2023, First Bancshares, on
a consolidated basis, reported total assets of $2.141 billion, total loans of $1.653 billion and total deposits of $1.712 billion.
Under the terms of the merger agreement, Prosperity will issue
3,583,370 shares of Prosperity common stock plus $93.4 million in cash for all outstanding shares
of First Bancshares 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 $341.6
million. Prosperity has received all necessary regulatory
approvals for the acquisition of First Bancshares, and the
shareholders of First Bancshares approved the transaction on
March 3, 2023. The transaction is
expected to become effective on May 1,
2023, subject to customary closing conditions.
Pending Acquisition 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 March 31,
2023, Lone Star, on a
consolidated basis, reported total assets of $1.383 billion, total loans of $1.032 billion and total deposits of $1.231 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 second quarter of 2023, although delays could
occur.
Conference Call
Prosperity's management team will host a conference call on
Wednesday, April 26, 2023, at
11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's
first 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 7001408.
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 home page by selecting "Presentations, Webcasts &
Calls" from the menu on the Investor Relations link and following
the instructions.
Non-GAAP Financial Measures
Prosperity's management uses certain non-GAAP financial measures
to evaluate its performance. Specifically, Prosperity reviews
return on average tangible common equity; tangible book value per
share; the tangible equity to tangible assets ratio; allowance for
credit losses on loans to total loans excluding Warehouse Purchase
Program loans; and the efficiency ratio excluding net gains and
losses on the sale or write down of assets and securities, 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 March 31, 2023, Prosperity Bancshares,
Inc.® is a $37.829 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 272 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; 29 in the Central Texas area including Austin and San
Antonio; 34 in the West
Texas area including Lubbock, Midland-Odessa and Abilene; 16 in the Bryan/College Station area; 6 in the
Central Oklahoma area; and 8 in
the Tulsa, Oklahoma area.
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 transactions
with First Bancshares and 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, as
well as expectations regarding the effects of the COVID-19 pandemic
on Prosperity's operating income, financial condition and cash
flows. 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 First
Bancshares and 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
transactions with First Bancshares and 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; the effect, impact,
potential duration or other implications of the COVID-19 pandemic;
and weather. 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 $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.
|
(3)
|
Includes purchase
accounting adjustments of $4.1 million, net of tax, primarily
comprised of loan discount accretion of $5.2 million for the three
months ended March 31, 2022.
|
(4)
|
Includes purchase
accounting adjustments of $758 thousand, net of tax, primarily
comprised of loan discount accretion of $913 thousand, and merger
related expenses of $272 thousand for the three months ended
December 31, 2022.
|
Bryan/College
Station Area
|
|
Garland
|
|
Palestine
|
|
Magnolia
|
|
Texas Tech Student
Union
|
Bryan
|
|
Grapevine
|
|
Rusk
|
|
Magnolia
Parkway
|
|
|
Bryan-29th
Street
|
|
Grapevine
Main
|
|
Seven Points
|
|
Mont Belvieu
|
|
Midland
|
Bryan-East
|
|
Kiest
|
|
Teague
|
|
Nederland
|
|
Wadley
|
Bryan-North
|
|
Lake
Highlands
|
|
Tyler-Beckham
|
|
Needville
|
|
Wall Street
|
Caldwell
|
|
McKinney
|
|
Tyler-South
Broadway
|
|
Rosenberg
|
|
|
College
Station
|
|
McKinney
Eldorado
|
|
Tyler-University
|
|
Shadow Creek
|
|
Odessa
|
Crescent
Point
|
|
McKinney
Redbud
|
|
Winnsboro
|
|
Spring
|
|
Grandview
|
Hearne
|
|
North
Carrolton
|
|
|
|
Tomball
|
|
Grant
|
Huntsville
|
|
Park Cities
|
|
Houston
Area
|
|
Waller
|
|
Kermit
Highway
|
Madisonville
|
|
Plano
|
|
Houston
|
|
West
Columbia
|
|
Parkway
|
Navasota
|
|
Plano-West
|
|
Aldine
|
|
Wharton
|
|
|
New Waverly
|
|
Preston
Forest
|
|
Alief
|
|
Winnie
|
|
Other West Texas
Area
|
Rock Prairie
|
|
Preston
Parker
|
|
Bellaire
|
|
Wirt
|
|
Locations
|
Southwest
Parkway
|
|
Preston
Royal
|
|
Beltway
|
|
|
|
Big Spring
|
Tower Point
|
|
Red Oak
|
|
Clear Lake
|
|
South Texas Area
-
|
|
Brownfield
|
Wellborn
Road
|
|
Richardson
|
|
Copperfield
|
|
Corpus
Christi
|
|
Brownwood
|
|
|
Richardson-West
|
|
Cypress
|
|
Calallen
|
|
Cisco
|
Central Texas
Area
|
|
Rosewood
Court
|
|
Downtown
|
|
Carmel
|
|
Comanche
|
Austin
|
|
The Colony
|
|
Eastex
|
|
Northwest
|
|
Early
|
Allandale
|
|
Tollroad
|
|
Fairfield
|
|
Saratoga
|
|
Floydada
|
Cedar Park
|
|
Trinity
Mills
|
|
First Colony
|
|
Timbergate
|
|
Gorman
|
Congress
|
|
Turtle Creek
|
|
Fry Road
|
|
Water Street
|
|
Levelland
|
Lakeway
|
|
West 15th
Plano
|
|
Gessner
|
|
|
|
Littlefield
|
Liberty Hill
|
|
West Allen
|
|
Gladebrook
|
|
Victoria
|
|
Merkel
|
Northland
|
|
Westmoreland
|
|
Grand
Parkway
|
|
Victoria
Main
|
|
Plainview
|
Oak Hill
|
|
Wylie
|
|
Heights
|
|
Victoria-Navarro
|
|
San Angelo
|
Research
Blvd
|
|
|
|
Highway 6
West
|
|
Victoria-North
|
|
Slaton
|
Westlake
|
|
Fort
Worth
|
|
Little York
|
|
Victoria
Salem
|
|
Snyder
|
|
|
Haltom City
|
|
Medical
Center
|
|
|
|
|
Other Central Texas
Area
|
|
Hulen
|
|
Memorial
Drive
|
|
Other South Texas
Area
|
|
Oklahoma
|
Locations
|
|
Keller
|
|
Northside
|
|
Locations
|
|
Central Oklahoma
Area
|
Bastrop
|
|
Museum Place
|
|
Pasadena
|
|
Alice
|
|
Oklahoma
City
|
Canyon Lake
|
|
Renaissance
Square
|
|
Pecan Grove
|
|
Aransas Pass
|
|
23rd
Street
|
Dime Box
|
|
Roanoke
|
|
Pin Oak
|
|
Beeville
|
|
Expressway
|
Dripping
Springs
|
|
Stockyards
|
|
River Oaks
|
|
Colony Creek
|
|
I-240
|
Elgin
|
|
|
|
Sugar Land
|
|
Cuero
|
|
Memorial
|
Flatonia
|
|
Other Dallas/Fort
Worth Area
|
|
SW Medical
Center
|
|
Edna
|
|
|
Georgetown
|
|
Locations
|
|
Tanglewood
|
|
Goliad
|
|
Other Central
Oklahoma Area
|
Gruene
|
|
Arlington
|
|
The Plaza
|
|
Gonzales
|
|
Locations
|
Kingsland
|
|
Azle
|
|
Uptown
|
|
Hallettsville
|
|
Edmond
|
La Grange
|
|
Ennis
|
|
Waugh Drive
|
|
Kingsville
|
|
Norman
|
Lexington
|
|
Gainesville
|
|
Westheimer
|
|
Mathis
|
|
|
New
Braunfels
|
|
Glen Rose
|
|
West
University
|
|
Padre Island
|
|
Tulsa
Area
|
Pleasanton
|
|
Granbury
|
|
Woodcreek
|
|
Palacios
|
|
Tulsa
|
Round Rock
|
|
Grand
Prairie
|
|
|
|
Port Lavaca
|
|
Garnett
|
San Antonio
|
|
Jacksboro
|
|
Katy
|
|
Portland
|
|
Harvard
|
Schulenburg
|
|
Mesquite
|
|
Cinco Ranch
|
|
Rockport
|
|
Memorial
|
Seguin
|
|
Muenster
|
|
Katy-Spring
Green
|
|
Sinton
|
|
Sheridan
|
Smithville
|
|
Runaway Bay
|
|
|
|
Taft
|
|
S. Harvard
|
Thorndale
|
|
Sanger
|
|
The
Woodlands
|
|
Yoakum
|
|
Utica Tower
|
Weimar
|
|
Waxahachie
|
|
The Woodlands-College
Park
|
|
Yorktown
|
|
Yale
|
|
|
Weatherford
|
|
The
Woodlands-I-45
|
|
|
|
|
Dallas/Fort Worth
Area
|
|
|
|
The Woodlands-Research
Forest
|
|
West Texas
Area
|
|
Other Tulsa Area
Locations
|
Dallas
|
|
East Texas
Area
|
|
|
|
Abilene
|
|
Owasso
|
14th Street
Plano
|
|
Athens
|
|
Other Houston
Area
|
|
Antilley
Road
|
|
|
Abrams
Centre
|
|
Blooming
Grove
|
|
Locations
|
|
Barrow
Street
|
|
|
Addison
|
|
Canton
|
|
Angleton
|
|
Cypress
Street
|
|
|
Allen
|
|
Carthage
|
|
Bay City
|
|
Judge Ely
|
|
|
Balch
Springs
|
|
Corsicana
|
|
Beaumont
|
|
Mockingbird
|
|
|
Camp Wisdom
|
|
Crockett
|
|
Cleveland
|
|
|
|
|
Carrollton
|
|
Eustace
|
|
East Bernard
|
|
Lubbock
|
|
|
Cedar Hill
|
|
Gilmer
|
|
El Campo
|
|
4th Street
|
|
|
Coppell
|
|
Grapeland
|
|
Dayton
|
|
66th Street
|
|
|
East Plano
|
|
Gun Barrel
City
|
|
Galveston
|
|
82nd Street
|
|
|
Euless
|
|
Jacksonville
|
|
Groves
|
|
86th Street
|
|
|
Frisco
|
|
Kerens
|
|
Hempstead
|
|
98th
Street
|
|
|
Frisco
Warren
|
|
Longview
|
|
Hitchcock
|
|
Avenue Q
|
|
|
Frisco-West
|
|
Mount Vernon
|
|
Liberty
|
|
North
University
|
|
|
- - -
Prosperity
Bancshares, Inc.®
|
|
Financial Highlights
(Unaudited)
|
|
(In
thousands)
|
|
|
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
Balance Sheet Data
(at period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
1,603
|
|
|
$
|
554
|
|
|
$
|
2,871
|
|
|
$
|
3,350
|
|
|
$
|
2,810
|
|
Loans held for
investment
|
|
|
18,533,641
|
|
|
|
18,098,653
|
|
|
|
17,580,653
|
|
|
|
17,067,871
|
|
|
|
16,720,173
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
799,115
|
|
|
|
740,620
|
|
|
|
922,764
|
|
|
|
1,137,623
|
|
|
|
1,344,541
|
|
Total loans
|
|
|
19,334,359
|
|
|
|
18,839,827
|
|
|
|
18,506,288
|
|
|
|
18,208,844
|
|
|
|
18,067,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities(A)
|
|
|
14,071,545
|
|
|
|
14,476,005
|
|
|
|
14,806,487
|
|
|
|
14,912,313
|
|
|
|
14,798,127
|
|
Federal funds
sold
|
|
|
222
|
|
|
|
301
|
|
|
|
244
|
|
|
|
201
|
|
|
|
274
|
|
Allowance for credit
losses on loans
|
|
|
(282,191)
|
|
|
|
(281,576)
|
|
|
|
(282,179)
|
|
|
|
(283,959)
|
|
|
|
(285,163)
|
|
Cash and due from
banks
|
|
|
405,331
|
|
|
|
423,832
|
|
|
|
602,152
|
|
|
|
393,716
|
|
|
|
1,560,321
|
|
Goodwill
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
Core deposit
intangibles, net
|
|
|
48,974
|
|
|
|
51,348
|
|
|
|
53,906
|
|
|
|
56,483
|
|
|
|
59,064
|
|
Other real estate
owned
|
|
|
1,989
|
|
|
|
1,963
|
|
|
|
1,758
|
|
|
|
1,555
|
|
|
|
1,705
|
|
Fixed assets,
net
|
|
|
345,149
|
|
|
|
339,453
|
|
|
|
337,099
|
|
|
|
335,939
|
|
|
|
336,075
|
|
Other assets
|
|
|
672,218
|
|
|
|
607,040
|
|
|
|
586,111
|
|
|
|
530,528
|
|
|
|
501,623
|
|
Total
assets
|
|
$
|
37,829,232
|
|
|
$
|
37,689,829
|
|
|
$
|
37,843,502
|
|
|
$
|
37,387,256
|
|
|
$
|
38,271,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
10,108,348
|
|
|
$
|
10,915,448
|
|
|
$
|
11,154,143
|
|
|
$
|
11,032,184
|
|
|
$
|
10,776,652
|
|
Interest-bearing
deposits
|
|
|
16,895,888
|
|
|
|
17,618,083
|
|
|
|
18,145,952
|
|
|
|
18,833,434
|
|
|
|
20,291,658
|
|
Total
deposits
|
|
|
27,004,236
|
|
|
|
28,533,531
|
|
|
|
29,300,095
|
|
|
|
29,865,618
|
|
|
|
31,068,310
|
|
Other
borrowings
|
|
|
3,365,000
|
|
|
|
1,850,000
|
|
|
|
1,165,000
|
|
|
|
300,000
|
|
|
|
—
|
|
Securities sold under
repurchase agreements
|
|
|
434,261
|
|
|
|
428,134
|
|
|
|
454,304
|
|
|
|
481,785
|
|
|
|
440,891
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
Other
liabilities
|
|
|
256,671
|
|
|
|
148,843
|
|
|
|
282,514
|
|
|
|
188,079
|
|
|
|
227,614
|
|
Total
liabilities
|
|
|
31,090,115
|
|
|
|
30,990,455
|
|
|
|
31,231,860
|
|
|
|
30,865,429
|
|
|
|
31,766,762
|
|
Shareholders'
equity(B)
|
|
|
6,739,117
|
|
|
|
6,699,374
|
|
|
|
6,611,642
|
|
|
|
6,521,827
|
|
|
|
6,504,424
|
|
Total liabilities and
equity
|
|
$
|
37,829,232
|
|
|
$
|
37,689,829
|
|
|
$
|
37,843,502
|
|
|
$
|
37,387,256
|
|
|
$
|
38,271,186
|
|
|
|
(A)
|
Includes $(4,399),
$(4,396), $(296), $1,517 and $2,115 in unrealized (losses) gains on
available for sale securities for the quarterly periods ended March
31, 2023, December 31, 2022, September 30, 2022, June 30, 2022 and
March 31, 2022, respectively.
|
(B)
|
Includes $(3,476),
$(3,473), $(234), $1,198 and $1,671 in after-tax unrealized
(losses) gains on available for sale securities for the quarterly
periods ended March 31, 2023, December 31, 2022, September 30,
2022, June 30, 2022 and March 31, 2022,
respectively.
|
Prosperity
Bancshares, Inc.®
|
|
Financial Highlights
(Unaudited)
|
|
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
247,118
|
|
|
$
|
235,126
|
|
|
$
|
210,268
|
|
|
$
|
192,770
|
|
|
$
|
193,025
|
|
Securities(C)
|
|
|
73,185
|
|
|
|
72,533
|
|
|
|
68,761
|
|
|
|
64,111
|
|
|
|
55,011
|
|
Federal funds sold and
other earning assets
|
|
|
7,006
|
|
|
|
933
|
|
|
|
525
|
|
|
|
925
|
|
|
|
847
|
|
Total interest
income
|
|
|
327,309
|
|
|
|
308,592
|
|
|
|
279,554
|
|
|
|
257,806
|
|
|
|
248,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
47,343
|
|
|
|
36,048
|
|
|
|
14,669
|
|
|
|
8,641
|
|
|
|
8,754
|
|
Other
borrowings
|
|
|
34,396
|
|
|
|
14,682
|
|
|
|
3,719
|
|
|
|
450
|
|
|
|
—
|
|
Securities sold under
repurchase agreements
|
|
|
2,103
|
|
|
|
1,725
|
|
|
|
487
|
|
|
|
244
|
|
|
|
185
|
|
Total interest
expense
|
|
|
83,842
|
|
|
|
52,455
|
|
|
|
18,875
|
|
|
|
9,335
|
|
|
|
8,939
|
|
Net interest
income
|
|
|
243,467
|
|
|
|
256,137
|
|
|
|
260,679
|
|
|
|
248,471
|
|
|
|
239,944
|
|
Provision for credit
losses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net interest income
after provision for credit losses
|
|
|
243,467
|
|
|
|
256,137
|
|
|
|
260,679
|
|
|
|
248,471
|
|
|
|
239,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds
(NSF) fees
|
|
|
8,095
|
|
|
|
8,519
|
|
|
|
8,887
|
|
|
|
8,484
|
|
|
|
8,124
|
|
Credit card, debit
card and ATM card income
|
|
|
8,666
|
|
|
|
8,816
|
|
|
|
8,889
|
|
|
|
8,880
|
|
|
|
8,179
|
|
Service charges on
deposit accounts
|
|
|
5,926
|
|
|
|
5,932
|
|
|
|
6,222
|
|
|
|
6,365
|
|
|
|
6,211
|
|
Trust
income
|
|
|
3,225
|
|
|
|
3,498
|
|
|
|
3,174
|
|
|
|
2,875
|
|
|
|
2,703
|
|
Mortgage
income
|
|
|
238
|
|
|
|
102
|
|
|
|
340
|
|
|
|
502
|
|
|
|
455
|
|
Brokerage
income
|
|
|
1,149
|
|
|
|
905
|
|
|
|
940
|
|
|
|
917
|
|
|
|
892
|
|
Bank owned life
insurance income
|
|
|
1,354
|
|
|
|
1,329
|
|
|
|
1,214
|
|
|
|
1,293
|
|
|
|
1,283
|
|
Net gain on sale or
write-down of assets
|
|
|
121
|
|
|
|
2,087
|
|
|
|
50
|
|
|
|
1,108
|
|
|
|
689
|
|
Other noninterest
income
|
|
|
9,492
|
|
|
|
6,536
|
|
|
|
4,972
|
|
|
|
7,170
|
|
|
|
6,586
|
|
Total noninterest
income
|
|
|
38,266
|
|
|
|
37,724
|
|
|
|
34,688
|
|
|
|
37,594
|
|
|
|
35,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
77,798
|
|
|
|
75,353
|
|
|
|
79,578
|
|
|
|
80,371
|
|
|
|
79,411
|
|
Net occupancy and
equipment
|
|
|
8,025
|
|
|
|
8,147
|
|
|
|
8,412
|
|
|
|
8,039
|
|
|
|
7,848
|
|
Credit and debit card,
data processing and software amortization
|
|
|
9,566
|
|
|
|
9,716
|
|
|
|
9,516
|
|
|
|
9,246
|
|
|
|
8,849
|
|
Regulatory assessments
and FDIC insurance
|
|
|
4,973
|
|
|
|
2,873
|
|
|
|
2,807
|
|
|
|
2,851
|
|
|
|
2,850
|
|
Core deposit
intangibles amortization
|
|
|
2,374
|
|
|
|
2,558
|
|
|
|
2,577
|
|
|
|
2,581
|
|
|
|
2,620
|
|
Depreciation
|
|
|
4,433
|
|
|
|
4,438
|
|
|
|
4,436
|
|
|
|
4,539
|
|
|
|
4,547
|
|
Communications
|
|
|
3,462
|
|
|
|
3,506
|
|
|
|
3,374
|
|
|
|
3,206
|
|
|
|
2,919
|
|
Other real estate
expense
|
|
|
58
|
|
|
|
154
|
|
|
|
198
|
|
|
|
195
|
|
|
|
214
|
|
Net (gain) loss on
sale or write-down of other real estate
|
|
|
(13)
|
|
|
|
(63)
|
|
|
|
(213)
|
|
|
|
14
|
|
|
|
(621)
|
|
Merger related
expenses
|
|
|
860
|
|
|
|
272
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Other noninterest
expense
|
|
|
11,464
|
|
|
|
12,290
|
|
|
|
11,529
|
|
|
|
11,836
|
|
|
|
11,213
|
|
Total noninterest
expense
|
|
|
123,000
|
|
|
|
119,244
|
|
|
|
122,214
|
|
|
|
122,878
|
|
|
|
119,850
|
|
Income before income
taxes
|
|
|
158,733
|
|
|
|
174,617
|
|
|
|
173,153
|
|
|
|
163,187
|
|
|
|
155,216
|
|
Provision for income
taxes
|
|
|
34,039
|
|
|
|
36,737
|
|
|
|
37,333
|
|
|
|
34,697
|
|
|
|
32,890
|
|
Net income available to
common shareholders
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
122,326
|
|
|
|
(C)
|
Interest income on
securities was reduced by net premium amortization of $7,384,
$8,703, $9,947, $11,450 and $12,857 for the three months ended
March 31, 2023, December 31, 2022, September 30, 2022, June 30,
2022 and March 31, 2022, respectively.
|
Prosperity
Bancshares, Inc. ®
|
Financial Highlights
(Unaudited)
|
(Dollars and share
amounts in thousands, except per share data and market
prices)
|
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(D) (E)
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
122,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.37
|
|
|
$
|
1.51
|
|
|
$
|
1.49
|
|
|
$
|
1.40
|
|
|
$
|
1.33
|
|
Diluted earnings per
share
|
|
$
|
1.37
|
|
|
$
|
1.51
|
|
|
$
|
1.49
|
|
|
$
|
1.40
|
|
|
$
|
1.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (F)
|
|
|
1.31
|
%
|
|
|
1.47
|
%
|
|
|
1.45
|
%
|
|
|
1.36
|
%
|
|
|
1.29
|
%
|
Return on average
common equity (F)
|
|
|
7.38
|
%
|
|
|
8.26
|
%
|
|
|
8.24
|
%
|
|
|
7.84
|
%
|
|
|
7.54
|
%
|
Return on average
tangible common equity (F) (G)
|
|
|
14.34
|
%
|
|
|
16.26
|
%
|
|
|
16.44
|
%
|
|
|
15.73
|
%
|
|
|
15.30
|
%
|
Tax equivalent net
interest margin (D) (E) (H)
|
|
|
2.93
|
%
|
|
|
3.05
|
%
|
|
|
3.11
|
%
|
|
|
2.97
|
%
|
|
|
2.88
|
%
|
Efficiency ratio
(G) (I)
|
|
|
43.68
|
%
|
|
|
40.87
|
%
|
|
|
41.38
|
%
|
|
|
43.12
|
%
|
|
|
43.68
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
|
17.81
|
%
|
|
|
17.78
|
%
|
|
|
17.47
|
%
|
|
|
17.44
|
%
|
|
|
17.00
|
%
|
Common equity tier 1
capital
|
|
|
15.59
|
%
|
|
|
15.88
|
%
|
|
|
15.44
|
%
|
|
|
15.26
|
%
|
|
|
15.32
|
%
|
Tier 1 risk-based
capital
|
|
|
15.59
|
%
|
|
|
15.88
|
%
|
|
|
15.44
|
%
|
|
|
15.26
|
%
|
|
|
15.32
|
%
|
Total risk-based
capital
|
|
|
16.41
|
%
|
|
|
16.51
|
%
|
|
|
16.09
|
%
|
|
|
15.91
|
%
|
|
|
15.99
|
%
|
Tier 1 leverage
capital
|
|
|
10.06
|
%
|
|
|
10.16
|
%
|
|
|
9.94
|
%
|
|
|
9.58
|
%
|
|
|
9.44
|
%
|
Period end tangible
equity to period end tangible assets (G)
|
|
|
10.01
|
%
|
|
|
9.93
|
%
|
|
|
9.62
|
%
|
|
|
9.48
|
%
|
|
|
9.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in computing earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
91,207
|
|
|
|
91,287
|
|
|
|
91,209
|
|
|
|
91,772
|
|
|
|
92,161
|
|
Diluted
|
|
|
91,207
|
|
|
|
91,287
|
|
|
|
91,209
|
|
|
|
91,772
|
|
|
|
92,161
|
|
Period end shares
outstanding
|
|
|
90,693
|
|
|
|
91,314
|
|
|
|
91,210
|
|
|
|
91,196
|
|
|
|
92,160
|
|
Cash dividends paid per
common share
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
Book value per common
share
|
|
$
|
74.31
|
|
|
$
|
73.37
|
|
|
$
|
72.49
|
|
|
$
|
71.51
|
|
|
$
|
70.58
|
|
Tangible book value per
common share (G)
|
|
$
|
38.13
|
|
|
$
|
37.41
|
|
|
$
|
36.47
|
|
|
$
|
35.46
|
|
|
$
|
34.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
78.76
|
|
|
$
|
76.32
|
|
|
$
|
77.93
|
|
|
$
|
73.50
|
|
|
$
|
80.46
|
|
Low
|
|
$
|
58.25
|
|
|
$
|
66.71
|
|
|
$
|
65.37
|
|
|
$
|
64.69
|
|
|
$
|
69.08
|
|
Period end closing
price
|
|
$
|
61.52
|
|
|
$
|
72.68
|
|
|
$
|
66.68
|
|
|
$
|
68.27
|
|
|
$
|
69.38
|
|
Employees – FTE
(excluding overtime)
|
|
|
3,651
|
|
|
|
3,633
|
|
|
|
3,592
|
|
|
|
3,576
|
|
|
|
3,595
|
|
Number of banking
centers
|
|
|
272
|
|
|
|
272
|
|
|
|
272
|
|
|
|
272
|
|
|
|
272
|
|
|
(D) Includes purchase
accounting adjustments for the periods presented as
follows:
|
|
|
Three Months
Ended
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Mar 31,
2022
|
Loan discount
accretion
|
|
|
|
|
|
|
|
|
|
ASC
310-20
|
$532
|
|
$603
|
|
$912
|
|
$(265)
|
|
$4,674
|
ASC
310-30
|
$339
|
|
$310
|
|
$322
|
|
$324
|
|
$521
|
Securities net
amortization
|
$2
|
|
$12
|
|
$40
|
|
$12
|
|
$52
|
Time deposits
amortization
|
$53
|
|
$59
|
|
$68
|
|
$84
|
|
$100
|
|
|
(E)
|
Using effective tax
rate of 21.4%, 21.0%, 21.6%, 21.3% and 21.2% for the three months
ended March 31, 2023, December 31, 2022, September 30, 2022, June
30, 2022 and March 31, 2022, respectively.
|
(F)
|
Interim periods
annualized.
|
(G)
|
Refer to the "Notes
to Selected Financial Data" at the end of this Earnings Release for
a reconciliation of this non-GAAP financial measure to the nearest
GAAP financial measure.
|
(H)
|
Net interest margin
for all periods presented is based on average balances on an actual
365-day basis.
|
(I)
|
Calculated by
dividing total noninterest expense, excluding credit loss
provisions, by net interest income plus noninterest income,
excluding net gains and losses on the sale or write down of assets
and securities. Additionally, taxes are not part of this
calculation.
|
Prosperity
Bancshares, Inc.®
|
Financial Highlights
(Unaudited)
|
(Dollars in
thousands)
|
|
YIELD
ANALYSIS
|
|
Three Months
Ended
|
|
|
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Mar 31,
2022
|
|
|
|
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
(J)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
(J)
|
Average
Balance
|
|
|
Interest
Earned/
Interest
Paid
|
|
|
Average
Yield/
Rate
|
|
(J)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
2,343
|
|
|
$
|
38
|
|
|
6.58 %
|
|
$
|
1,758
|
|
|
$
|
27
|
|
|
6.09 %
|
|
$
|
4,611
|
|
|
$
|
40
|
|
|
3.52 %
|
|
|
Loans held for
investment
|
|
|
18,317,712
|
|
|
|
236,606
|
|
|
5.24 %
|
|
|
17,818,769
|
|
|
|
223,768
|
|
|
4.98 %
|
|
|
16,712,690
|
|
|
|
183,033
|
|
|
4.44 %
|
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
617,822
|
|
|
|
10,474
|
|
|
6.88 %
|
|
|
747,007
|
|
|
|
11,331
|
|
|
6.02 %
|
|
|
1,268,715
|
|
|
|
9,952
|
|
|
3.18 %
|
|
|
Total Loans
|
|
|
18,937,877
|
|
|
|
247,118
|
|
|
5.29 %
|
|
|
18,567,534
|
|
|
|
235,126
|
|
|
5.02 %
|
|
|
17,986,016
|
|
|
|
193,025
|
|
|
4.35 %
|
|
|
Investment
securities
|
|
|
14,332,509
|
|
|
|
73,185
|
|
|
2.07 %
|
(K)
|
|
14,715,516
|
|
|
|
72,533
|
|
|
1.96 %
|
(K)
|
|
13,772,974
|
|
|
|
55,011
|
|
|
1.62 %
|
|
(K)
|
Federal funds sold and
other earning assets
|
|
|
600,048
|
|
|
|
7,006
|
|
|
4.74 %
|
|
|
101,986
|
|
|
|
933
|
|
|
3.63 %
|
|
|
2,135,503
|
|
|
|
847
|
|
|
0.16 %
|
|
|
Total interest-earning
assets
|
|
|
33,870,434
|
|
|
|
327,309
|
|
|
3.92 %
|
|
|
33,385,036
|
|
|
|
308,592
|
|
|
3.67 %
|
|
|
33,894,493
|
|
|
|
248,883
|
|
|
2.98 %
|
|
|
Allowance for credit
losses on loans
|
|
|
(282,316)
|
|
|
|
|
|
|
|
|
(282,546)
|
|
|
|
|
|
|
|
|
(285,692)
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,589,735
|
|
|
|
|
|
|
|
|
4,515,412
|
|
|
|
|
|
|
|
|
4,458,669
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
38,177,853
|
|
|
|
|
|
|
|
$
|
37,617,902
|
|
|
|
|
|
|
|
$
|
38,067,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
5,877,641
|
|
|
$
|
3,792
|
|
|
0.26 %
|
|
$
|
5,843,672
|
|
|
$
|
3,224
|
|
|
0.22 %
|
|
$
|
6,775,114
|
|
|
$
|
2,452
|
|
|
0.15 %
|
|
|
Savings and money
market deposits
|
|
|
9,579,679
|
|
|
|
35,521
|
|
|
1.50 %
|
|
|
9,805,024
|
|
|
|
27,929
|
|
|
1.13 %
|
|
|
10,870,461
|
|
|
|
4,026
|
|
|
0.15 %
|
|
|
Certificates and other
time deposits
|
|
|
2,045,580
|
|
|
|
8,030
|
|
|
1.59 %
|
|
|
2,066,085
|
|
|
|
4,895
|
|
|
0.94 %
|
|
|
2,637,529
|
|
|
|
2,276
|
|
|
0.35 %
|
|
|
Other
borrowings
|
|
|
2,887,011
|
|
|
|
34,396
|
|
|
4.83 %
|
|
|
1,465,533
|
|
|
|
14,682
|
|
|
3.97 %
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Securities sold under
repurchase agreements
|
|
|
427,887
|
|
|
|
2,103
|
|
|
1.99 %
|
|
|
441,405
|
|
|
|
1,725
|
|
|
1.55 %
|
|
|
452,054
|
|
|
|
185
|
|
|
0.17 %
|
|
|
Total interest-bearing
liabilities
|
|
|
20,817,798
|
|
|
|
83,842
|
|
|
1.63 %
|
(L)
|
|
19,621,719
|
|
|
|
52,455
|
|
|
1.06 %
|
(L)
|
|
20,735,158
|
|
|
|
8,939
|
|
|
0.17 %
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
10,389,980
|
|
|
|
|
|
|
|
|
11,064,714
|
|
|
|
|
|
|
|
|
10,636,624
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
29,947
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
180,685
|
|
|
|
|
|
|
|
|
224,512
|
|
|
|
|
|
|
|
|
176,360
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
31,418,410
|
|
|
|
|
|
|
|
|
30,940,892
|
|
|
|
|
|
|
|
|
31,578,089
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
6,759,443
|
|
|
|
|
|
|
|
|
6,677,010
|
|
|
|
|
|
|
|
|
6,489,381
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
38,177,853
|
|
|
|
|
|
|
|
$
|
37,617,902
|
|
|
|
|
|
|
|
$
|
38,067,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin
|
|
|
|
|
$
|
243,467
|
|
|
2.92 %
|
|
|
|
|
$
|
256,137
|
|
|
3.04 %
|
|
|
|
|
$
|
239,944
|
|
|
2.87 %
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
833
|
|
|
|
|
|
|
|
|
440
|
|
|
|
|
|
|
|
|
472
|
|
|
|
|
|
Net interest income and
margin
(tax equivalent basis)
|
|
|
|
|
$
|
244,300
|
|
|
2.93 %
|
|
|
|
|
$
|
256,577
|
|
|
3.05 %
|
|
|
|
|
$
|
240,416
|
|
|
2.88 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(J)
|
Annualized and based
on an actual 365-day basis.
|
(K)
|
Yield on securities
was impacted by net premium amortization of $7,384, $8,703 and
$12,857 for the three months ended March 31, 2023, December 31,
2022 and March 31, 2022, respectively.
|
(L)
|
Total cost of funds,
including noninterest bearing deposits, was 1.09%, 0.68% and 0.12%
for the three months ended March 31, 2023, December 31, 2022 and
March 31, 2022, respectively.
|
Prosperity
Bancshares, Inc.®
|
Financial Highlights
(Unaudited)
|
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
YIELD TREND
(M)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
6.58
|
%
|
|
|
6.09
|
%
|
|
|
5.47
|
%
|
|
|
5.02
|
%
|
|
|
3.52
|
%
|
Loans held for
investment
|
|
5.24
|
%
|
|
|
4.98
|
%
|
|
|
4.58
|
%
|
|
|
4.35
|
%
|
|
|
4.44
|
%
|
Loans held for
investment - Warehouse Purchase Program
|
|
6.88
|
%
|
|
|
6.02
|
%
|
|
|
4.56
|
%
|
|
|
3.33
|
%
|
|
|
3.18
|
%
|
Total loans
|
|
5.29
|
%
|
|
|
5.02
|
%
|
|
|
4.58
|
%
|
|
|
4.28
|
%
|
|
|
4.35
|
%
|
Investment securities
(N)
|
|
2.07
|
%
|
|
|
1.96
|
%
|
|
|
1.82
|
%
|
|
|
1.72
|
%
|
|
|
1.62
|
%
|
Federal funds sold and
other earning assets
|
|
4.74
|
%
|
|
|
3.63
|
%
|
|
|
2.37
|
%
|
|
|
0.69
|
%
|
|
|
0.16
|
%
|
Total interest-earning
assets
|
|
3.92
|
%
|
|
|
3.67
|
%
|
|
|
3.33
|
%
|
|
|
3.08
|
%
|
|
|
2.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
0.26
|
%
|
|
|
0.22
|
%
|
|
|
0.15
|
%
|
|
|
0.13
|
%
|
|
|
0.15
|
%
|
Savings and money
market deposits
|
|
1.50
|
%
|
|
|
1.13
|
%
|
|
|
0.37
|
%
|
|
|
0.17
|
%
|
|
|
0.15
|
%
|
Certificates and other
time deposits
|
|
1.59
|
%
|
|
|
0.94
|
%
|
|
|
0.52
|
%
|
|
|
0.34
|
%
|
|
|
0.35
|
%
|
Other
borrowings
|
|
4.83
|
%
|
|
|
3.97
|
%
|
|
|
2.55
|
%
|
|
|
1.60
|
%
|
|
|
—
|
|
Securities sold under
repurchase agreements
|
|
1.99
|
%
|
|
|
1.55
|
%
|
|
|
0.41
|
%
|
|
|
0.21
|
%
|
|
|
0.17
|
%
|
Total interest-bearing
liabilities
|
|
1.63
|
%
|
|
|
1.06
|
%
|
|
|
0.38
|
%
|
|
|
0.19
|
%
|
|
|
0.17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
|
2.92
|
%
|
|
|
3.04
|
%
|
|
|
3.11
|
%
|
|
|
2.97
|
%
|
|
|
2.87
|
%
|
Net Interest Margin
(tax equivalent)
|
|
2.93
|
%
|
|
|
3.05
|
%
|
|
|
3.11
|
%
|
|
|
2.97
|
%
|
|
|
2.88
|
%
|
|
|
(M)
|
Annualized and based
on average balances on an actual 365-day basis.
|
(N)
|
Yield on securities
was impacted by net premium amortization of $7,384, $8,703, $9,947,
$11,450 and $12,857 for the three months ended March 31, 2023,
December 31, 2022, September 30, 2022, June 30, 2022 and March 31,
2022, respectively.
|
Prosperity
Bancshares, Inc.®
|
|
Financial Highlights
(Unaudited)
|
|
(Dollars in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
Balance Sheet
Averages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
2,343
|
|
|
$
|
1,758
|
|
|
$
|
4,136
|
|
|
$
|
3,199
|
|
|
$
|
4,611
|
|
Loans held for
investment
|
|
|
18,317,712
|
|
|
|
17,818,769
|
|
|
|
17,275,866
|
|
|
|
16,799,609
|
|
|
|
16,712,690
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
617,822
|
|
|
|
747,007
|
|
|
|
938,589
|
|
|
|
1,257,521
|
|
|
|
1,268,715
|
|
Total Loans
|
|
|
18,937,877
|
|
|
|
18,567,534
|
|
|
|
18,218,591
|
|
|
|
18,060,329
|
|
|
|
17,986,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
|
14,332,509
|
|
|
|
14,715,516
|
|
|
|
14,962,847
|
|
|
|
14,989,666
|
|
|
|
13,772,974
|
|
Federal funds sold and
other earning assets
|
|
|
600,048
|
|
|
|
101,986
|
|
|
|
87,859
|
|
|
|
540,907
|
|
|
|
2,135,503
|
|
Total interest-earning
assets
|
|
|
33,870,434
|
|
|
|
33,385,036
|
|
|
|
33,269,297
|
|
|
|
33,590,902
|
|
|
|
33,894,493
|
|
Allowance for credit
losses on loans
|
|
|
(282,316)
|
|
|
|
(282,546)
|
|
|
|
(283,244)
|
|
|
|
(284,550)
|
|
|
|
(285,692)
|
|
Cash and due from
banks
|
|
|
319,960
|
|
|
|
306,235
|
|
|
|
302,479
|
|
|
|
309,223
|
|
|
|
326,552
|
|
Goodwill
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
Core deposit
intangibles, net
|
|
|
50,208
|
|
|
|
52,591
|
|
|
|
55,158
|
|
|
|
57,728
|
|
|
|
60,346
|
|
Other real
estate
|
|
|
2,083
|
|
|
|
2,075
|
|
|
|
1,652
|
|
|
|
1,639
|
|
|
|
1,893
|
|
Fixed assets,
net
|
|
|
342,380
|
|
|
|
338,572
|
|
|
|
336,657
|
|
|
|
336,242
|
|
|
|
327,297
|
|
Other assets
|
|
|
643,467
|
|
|
|
584,302
|
|
|
|
552,929
|
|
|
|
511,591
|
|
|
|
510,944
|
|
Total
assets
|
|
$
|
38,177,853
|
|
|
$
|
37,617,902
|
|
|
$
|
37,466,565
|
|
|
$
|
37,754,412
|
|
|
$
|
38,067,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
10,389,980
|
|
|
$
|
11,064,714
|
|
|
$
|
11,048,856
|
|
|
$
|
10,855,802
|
|
|
$
|
10,636,624
|
|
Interest-bearing demand
deposits
|
|
|
5,877,641
|
|
|
|
5,843,672
|
|
|
|
6,155,511
|
|
|
|
6,437,614
|
|
|
|
6,775,114
|
|
Savings and money
market deposits
|
|
|
9,579,679
|
|
|
|
9,805,024
|
|
|
|
10,172,986
|
|
|
|
10,702,273
|
|
|
|
10,870,461
|
|
Certificates and other
time deposits
|
|
|
2,045,580
|
|
|
|
2,066,085
|
|
|
|
2,185,529
|
|
|
|
2,409,663
|
|
|
|
2,637,529
|
|
Total
deposits
|
|
|
27,892,880
|
|
|
|
28,779,495
|
|
|
|
29,562,882
|
|
|
|
30,405,352
|
|
|
|
30,919,728
|
|
Other
borrowings
|
|
|
2,887,011
|
|
|
|
1,465,533
|
|
|
|
577,828
|
|
|
|
112,582
|
|
|
|
—
|
|
Securities sold under
repurchase agreements
|
|
|
427,887
|
|
|
|
441,405
|
|
|
|
473,584
|
|
|
|
463,108
|
|
|
|
452,054
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
|
29,947
|
|
Other
liabilities
|
|
|
180,685
|
|
|
|
224,512
|
|
|
|
231,812
|
|
|
|
186,344
|
|
|
|
176,360
|
|
Shareholders'
equity
|
|
|
6,759,443
|
|
|
|
6,677,010
|
|
|
|
6,590,512
|
|
|
|
6,557,079
|
|
|
|
6,489,381
|
|
Total liabilities and
equity
|
|
$
|
38,177,853
|
|
|
$
|
37,617,902
|
|
|
$
|
37,466,565
|
|
|
$
|
37,754,412
|
|
|
$
|
38,067,470
|
|
Prosperity
Bancshares, Inc.®
|
Financial Highlights
(Unaudited)
|
(Dollars in
thousands)
|
|
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Mar 31,
2022
|
Period End
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
$2,074,078
|
10.7 %
|
|
$2,165,263
|
11.6 %
|
|
$2,197,033
|
11.9 %
|
|
$2,183,277
|
12.0 %
|
|
$2,094,041
|
11.6 %
|
Warehouse purchase
program
|
|
799,115
|
4.1 %
|
|
740,620
|
3.9 %
|
|
922,764
|
5.0 %
|
|
1,137,623
|
6.2 %
|
|
1,344,541
|
7.4 %
|
Construction, land
development and other land loans
|
|
2,899,980
|
15.0 %
|
|
2,805,438
|
14.9 %
|
|
2,659,552
|
14.4 %
|
|
2,460,526
|
13.5 %
|
|
2,327,837
|
12.9 %
|
1-4 family
residential
|
|
6,055,532
|
31.3 %
|
|
5,774,814
|
30.6 %
|
|
5,447,993
|
29.4 %
|
|
5,156,200
|
28.3 %
|
|
4,970,620
|
27.5 %
|
Home equity
|
|
959,124
|
5.0 %
|
|
966,410
|
5.1 %
|
|
943,197
|
5.1 %
|
|
932,725
|
5.1 %
|
|
870,130
|
4.8 %
|
Commercial real estate
(includes multi-family residential)
|
|
5,133,693
|
26.6 %
|
|
4,986,211
|
26.5 %
|
|
4,966,243
|
26.8 %
|
|
4,967,662
|
27.3 %
|
|
5,150,555
|
28.5 %
|
Agriculture (includes
farmland)
|
|
721,395
|
3.7 %
|
|
688,033
|
3.6 %
|
|
670,603
|
3.6 %
|
|
665,960
|
3.7 %
|
|
617,418
|
3.4 %
|
Consumer and
other
|
|
288,300
|
1.5 %
|
|
283,559
|
1.5 %
|
|
288,834
|
1.6 %
|
|
274,532
|
1.5 %
|
|
246,433
|
1.4 %
|
Energy
|
|
403,142
|
2.1 %
|
|
429,479
|
2.3 %
|
|
410,069
|
2.2 %
|
|
430,339
|
2.4 %
|
|
445,949
|
2.5 %
|
Total loans
|
|
$19,334,359
|
|
|
$18,839,827
|
|
|
$18,506,288
|
|
|
$18,208,844
|
|
|
$18,067,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
DDA
|
|
$10,108,348
|
37.4 %
|
|
$10,915,448
|
38.2 %
|
|
$11,154,143
|
38.1 %
|
|
$11,032,184
|
36.9 %
|
|
$10,776,652
|
34.7 %
|
Interest-bearing
DDA
|
|
5,332,086
|
19.8 %
|
|
5,986,203
|
21.0 %
|
|
6,027,157
|
20.6 %
|
|
6,331,314
|
21.2 %
|
|
6,603,934
|
21.2 %
|
Money market
|
|
6,021,449
|
22.3 %
|
|
6,164,025
|
21.6 %
|
|
6,438,787
|
22.0 %
|
|
6,646,726
|
22.3 %
|
|
7,603,329
|
24.5 %
|
Savings
|
|
3,304,482
|
12.2 %
|
|
3,471,970
|
12.2 %
|
|
3,563,776
|
12.1 %
|
|
3,597,820
|
12.0 %
|
|
3,543,300
|
11.4 %
|
Certificates and other
time deposits
|
|
2,237,871
|
8.3 %
|
|
1,995,885
|
7.0 %
|
|
2,116,232
|
7.2 %
|
|
2,257,574
|
7.6 %
|
|
2,541,095
|
8.2 %
|
Total
deposits
|
|
$27,004,236
|
|
|
$28,533,531
|
|
|
$29,300,095
|
|
|
$29,865,618
|
|
|
$31,068,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
|
71.6 %
|
|
|
66.0 %
|
|
|
63.2 %
|
|
|
61.0 %
|
|
|
58.2 %
|
|
Prosperity
Bancshares, Inc.®
|
Financial Highlights
(Unaudited)
|
(Dollars in
thousands)
|
|
Construction
Loans
|
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family
residential construction
|
|
$
|
1,179,883
|
|
|
40.7
|
%
|
|
$
|
1,097,176
|
|
|
39.1
|
%
|
|
$
|
1,004,000
|
|
|
37.8
|
%
|
|
$
|
911,443
|
|
|
37.0
|
%
|
|
$
|
816,072
|
|
|
35.0
|
%
|
Land
development
|
|
|
222,511
|
|
|
7.7
|
%
|
|
|
181,747
|
|
|
6.5
|
%
|
|
|
145,303
|
|
|
5.5
|
%
|
|
|
133,398
|
|
|
5.4
|
%
|
|
|
103,853
|
|
|
4.5
|
%
|
Raw land
|
|
|
326,168
|
|
|
11.2
|
%
|
|
|
332,603
|
|
|
11.9
|
%
|
|
|
343,066
|
|
|
12.9
|
%
|
|
|
316,750
|
|
|
12.9
|
%
|
|
|
310,987
|
|
|
13.4
|
%
|
Residential
lots
|
|
|
226,600
|
|
|
7.8
|
%
|
|
|
243,942
|
|
|
8.7
|
%
|
|
|
237,714
|
|
|
8.9
|
%
|
|
|
223,703
|
|
|
9.1
|
%
|
|
|
212,029
|
|
|
9.1
|
%
|
Commercial
lots
|
|
|
167,151
|
|
|
5.8
|
%
|
|
|
177,378
|
|
|
6.3
|
%
|
|
|
181,679
|
|
|
6.8
|
%
|
|
|
184,794
|
|
|
7.5
|
%
|
|
|
183,760
|
|
|
7.9
|
%
|
Commercial construction
and other
|
|
|
777,678
|
|
|
26.8
|
%
|
|
|
772,606
|
|
|
27.5
|
%
|
|
|
747,803
|
|
|
28.1
|
%
|
|
|
690,453
|
|
|
28.1
|
%
|
|
|
701,148
|
|
|
30.1
|
%
|
Net unaccreted
discount
|
|
|
(11)
|
|
|
|
|
|
(14)
|
|
|
|
|
|
(13)
|
|
|
|
|
|
(15)
|
|
|
|
|
|
(12)
|
|
|
|
Total construction
loans
|
|
$
|
2,899,980
|
|
|
|
|
$
|
2,805,438
|
|
|
|
|
$
|
2,659,552
|
|
|
|
|
$
|
2,460,526
|
|
|
|
|
$
|
2,327,837
|
|
|
|
Non-Owner Occupied
Commercial Real Estate Loans by Metropolitan Statistical Area (MSA)
as of March 31, 2023
|
|
|
Houston
|
|
|
Dallas
|
|
|
Austin
|
|
|
OK
City
|
|
|
Tulsa
|
|
|
Other
(O)
|
|
|
Total
|
|
|
Collateral
Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopping
center/retail
|
$
|
404,791
|
|
|
$
|
239,409
|
|
|
$
|
49,198
|
|
|
$
|
19,854
|
|
|
$
|
19,813
|
|
|
$
|
278,763
|
|
|
$
|
1,011,828
|
|
|
Commercial and
industrial buildings
|
|
160,086
|
|
|
|
89,698
|
|
|
|
29,162
|
|
|
|
32,045
|
|
|
|
14,556
|
|
|
|
208,361
|
|
|
|
533,908
|
|
|
Office
buildings
|
|
82,333
|
|
|
|
247,912
|
|
|
|
48,187
|
|
|
|
67,434
|
|
|
|
4,200
|
|
|
|
62,372
|
|
|
|
512,438
|
|
|
Medical
buildings
|
|
76,085
|
|
|
|
18,766
|
|
|
|
3,775
|
|
|
|
26,024
|
|
|
|
36,722
|
|
|
|
45,407
|
|
|
|
206,779
|
|
|
Apartment
buildings
|
|
156,145
|
|
|
|
91,286
|
|
|
|
13,748
|
|
|
|
14,526
|
|
|
|
8,677
|
|
|
|
153,412
|
|
|
|
437,794
|
|
|
Hotel
|
|
107,113
|
|
|
|
67,348
|
|
|
|
33,635
|
|
|
|
27,745
|
|
|
|
—
|
|
|
|
130,840
|
|
|
|
366,681
|
|
|
Other
|
|
75,516
|
|
|
|
79,143
|
|
|
|
43,290
|
|
|
|
8,414
|
|
|
|
1,787
|
|
|
|
68,588
|
|
|
|
276,738
|
|
|
Total
|
$
|
1,062,069
|
|
|
$
|
833,562
|
|
|
$
|
220,995
|
|
|
$
|
196,042
|
|
|
$
|
85,755
|
|
|
$
|
947,743
|
|
|
$
|
3,346,166
|
|
(P)
|
Acquired
Loans
|
|
|
|
|
Non-PCD
Loans
|
|
|
PCD
Loans
|
|
|
Total Acquired
Loans
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Dec 31,
2022
|
|
|
Balance at
Mar 31,
2023
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Dec 31,
2022
|
|
|
Balance at
Mar 31,
2023
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Dec 31,
2022
|
|
|
Balance at
Mar 31,
2023
|
|
Loan
marks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(Q)
|
$
|
345,599
|
|
|
$
|
2,233
|
|
|
$
|
1,701
|
|
|
$
|
320,052
|
|
|
$
|
3,361
|
|
|
$
|
3,022
|
|
|
$
|
665,651
|
|
|
$
|
5,594
|
|
|
$
|
4,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(Q)
|
|
12,286,159
|
|
|
|
1,319,507
|
|
|
|
1,249,921
|
|
|
|
689,573
|
|
|
|
63,383
|
|
|
|
58,549
|
|
|
|
12,975,732
|
|
(R)
|
|
1,382,890
|
|
|
|
1,308,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan balances less loan marks
|
$
|
11,940,560
|
|
|
$
|
1,317,274
|
|
|
$
|
1,248,220
|
|
|
$
|
369,521
|
|
|
$
|
60,022
|
|
|
$
|
55,527
|
|
|
$
|
12,310,081
|
|
|
$
|
1,377,296
|
|
|
$
|
1,303,747
|
|
|
|
(O)
|
Includes other MSA
and non-MSA regions.
|
(P)
|
Represents a portion
of total commercial real estate loans of $5.134 billion as of March
31, 2023.
|
(Q)
|
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.
|
(R)
|
Actual principal
balances acquired.
|
Prosperity
Bancshares, Inc.®
|
|
Financial Highlights
(Unaudited)
|
|
(Dollars in
thousands)
|
|
|
|
|
Three Months
Ended
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
|
22,496
|
|
|
$
|
19,614
|
|
|
$
|
17,729
|
|
|
$
|
20,619
|
|
|
$
|
21,765
|
|
Accruing loans 90 or
more days past due
|
|
—
|
|
|
|
5,917
|
|
|
|
378
|
|
|
|
13
|
|
|
|
3,695
|
|
Total nonperforming
loans
|
|
22,496
|
|
|
|
25,531
|
|
|
|
18,107
|
|
|
|
20,632
|
|
|
|
25,460
|
|
Repossessed
assets
|
|
—
|
|
|
|
—
|
|
|
|
13
|
|
|
|
—
|
|
|
|
19
|
|
Other real
estate
|
|
1,989
|
|
|
|
1,963
|
|
|
|
1,758
|
|
|
|
1,555
|
|
|
|
1,705
|
|
Total nonperforming
assets
|
$
|
24,485
|
|
|
$
|
27,494
|
|
|
$
|
19,878
|
|
|
$
|
22,187
|
|
|
$
|
27,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
2,832
|
|
|
$
|
3,921
|
|
|
$
|
2,376
|
|
|
$
|
2,964
|
|
|
$
|
4,403
|
|
Construction, land
development and other land loans
|
|
3,210
|
|
|
|
6,166
|
|
|
|
1,712
|
|
|
|
1,866
|
|
|
|
1,761
|
|
1-4 family residential
(includes home equity)
|
|
16,951
|
|
|
|
15,326
|
|
|
|
13,986
|
|
|
|
14,335
|
|
|
|
11,899
|
|
Commercial real estate
(includes multi-family residential)
|
|
1,051
|
|
|
|
1,649
|
|
|
|
1,364
|
|
|
|
2,448
|
|
|
|
7,685
|
|
Agriculture (includes
farmland)
|
|
432
|
|
|
|
421
|
|
|
|
434
|
|
|
|
567
|
|
|
|
1,402
|
|
Consumer and
other
|
|
9
|
|
|
|
11
|
|
|
|
6
|
|
|
|
7
|
|
|
|
34
|
|
Total
|
$
|
24,485
|
|
|
$
|
27,494
|
|
|
$
|
19,878
|
|
|
$
|
22,187
|
|
|
$
|
27,184
|
|
Number of
loans/properties
|
|
190
|
|
|
|
170
|
|
|
|
150
|
|
|
|
160
|
|
|
|
147
|
|
Allowance for credit
losses on loans
|
$
|
282,191
|
|
|
$
|
281,576
|
|
|
$
|
282,179
|
|
|
$
|
283,959
|
|
|
$
|
285,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
(1,472)
|
|
|
$
|
(643)
|
|
|
$
|
(15)
|
|
|
$
|
(197)
|
|
|
$
|
14
|
|
Construction, land
development and other land loans
|
|
(13)
|
|
|
|
(5)
|
|
|
|
(4)
|
|
|
|
(5)
|
|
|
|
430
|
|
1-4 family residential
(includes home equity)
|
|
(140)
|
|
|
|
(55)
|
|
|
|
(202)
|
|
|
|
(32)
|
|
|
|
87
|
|
Commercial real estate
(includes multi-family residential)
|
|
(1)
|
|
|
|
74
|
|
|
|
757
|
|
|
|
395
|
|
|
|
(366)
|
|
Agriculture (includes
farmland)
|
|
(6)
|
|
|
|
(14)
|
|
|
|
119
|
|
|
|
(9)
|
|
|
|
(103)
|
|
Consumer and
other
|
|
1,017
|
|
|
|
1,246
|
|
|
|
1,125
|
|
|
|
1,052
|
|
|
|
1,155
|
|
Total
|
$
|
(615)
|
|
|
$
|
603
|
|
|
$
|
1,780
|
|
|
$
|
1,204
|
|
|
$
|
1,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
average interest-earning assets
|
|
0.07
|
%
|
|
|
0.08
|
%
|
|
|
0.06
|
%
|
|
|
0.07
|
%
|
|
|
0.08
|
%
|
Nonperforming assets to
loans and other real estate
|
|
0.13
|
%
|
|
|
0.15
|
%
|
|
|
0.11
|
%
|
|
|
0.12
|
%
|
|
|
0.15
|
%
|
Net charge-offs to
average loans (annualized)
|
|
-0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.04
|
%
|
|
|
0.03
|
%
|
|
|
0.03
|
%
|
Allowance for credit
losses on loans to total loans
|
|
1.46
|
%
|
|
|
1.49
|
%
|
|
|
1.52
|
%
|
|
|
1.56
|
%
|
|
|
1.58
|
%
|
Allowance for credit
losses on loans to total loans, excluding Warehouse Purchase
Program loans (G)
|
|
1.52
|
%
|
|
|
1.56
|
%
|
|
|
1.60
|
%
|
|
|
1.66
|
%
|
|
|
1.71
|
%
|
Prosperity Bancshares, Inc.®
Notes
to Selected Financial Data (Unaudited)
(Dollars and
share amounts in thousands, except per share data)
NOTES TO SELECTED FINANCIAL DATA
Prosperity's management uses certain non-GAAP (generally
accepted accounting principles) financial measures to evaluate its
performance. Specifically, Prosperity reviews return on average
tangible common equity; tangible book value per share; the tangible
equity to tangible assets ratio; allowance for credit losses on
loans to total loans excluding Warehouse Purchase Program loans;
and the efficiency ratio, excluding net gains and losses on the
sale or write down of assets and securities, 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 on loans 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
|
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Sep 30,
2022
|
|
|
Jun 30,
2022
|
|
|
Mar 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
return on average common equity to return on average tangible
common equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
135,820
|
|
|
$
|
128,490
|
|
|
$
|
122,326
|
|
Average shareholders'
equity
|
|
$
|
6,759,443
|
|
|
$
|
6,677,010
|
|
|
$
|
6,590,512
|
|
|
$
|
6,557,079
|
|
|
$
|
6,489,381
|
|
Less: Average goodwill
and other intangible assets
|
|
|
(3,281,845)
|
|
|
|
(3,284,228)
|
|
|
|
(3,286,795)
|
|
|
|
(3,289,365)
|
|
|
|
(3,291,983)
|
|
Average tangible
shareholders' equity
|
|
$
|
3,477,598
|
|
|
$
|
3,392,782
|
|
|
$
|
3,303,717
|
|
|
$
|
3,267,714
|
|
|
$
|
3,197,398
|
|
Return on average
tangible common equity (F)
|
|
|
14.34
|
%
|
|
|
16.26
|
%
|
|
|
16.44
|
%
|
|
|
15.73
|
%
|
|
|
15.30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
book value per share to tangible book value per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
6,739,117
|
|
|
$
|
6,699,374
|
|
|
$
|
6,611,642
|
|
|
$
|
6,521,827
|
|
|
$
|
6,504,424
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,280,610)
|
|
|
|
(3,282,984)
|
|
|
|
(3,285,542)
|
|
|
|
(3,288,119)
|
|
|
|
(3,290,700)
|
|
Tangible shareholders'
equity
|
|
$
|
3,458,507
|
|
|
$
|
3,416,390
|
|
|
$
|
3,326,100
|
|
|
$
|
3,233,708
|
|
|
$
|
3,213,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
|
|
90,693
|
|
|
|
91,314
|
|
|
|
91,210
|
|
|
|
91,196
|
|
|
|
92,160
|
|
Tangible book value per
share
|
|
$
|
38.13
|
|
|
$
|
37.41
|
|
|
$
|
36.47
|
|
|
$
|
35.46
|
|
|
$
|
34.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
equity to assets ratio to period end tangible equity to period end
tangible assets ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible shareholders'
equity
|
|
$
|
3,458,507
|
|
|
$
|
3,416,390
|
|
|
$
|
3,326,100
|
|
|
$
|
3,233,708
|
|
|
$
|
3,213,724
|
|
Total assets
|
|
$
|
37,829,232
|
|
|
$
|
37,689,829
|
|
|
$
|
37,843,502
|
|
|
$
|
37,387,256
|
|
|
$
|
38,271,186
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,280,610)
|
|
|
|
(3,282,984)
|
|
|
|
(3,285,542)
|
|
|
|
(3,288,119)
|
|
|
|
(3,290,700)
|
|
Tangible
assets
|
|
$
|
34,548,622
|
|
|
$
|
34,406,845
|
|
|
$
|
34,557,960
|
|
|
$
|
34,099,137
|
|
|
$
|
34,980,486
|
|
Period end tangible
equity to period end tangible assets ratio
|
|
|
10.01
|
%
|
|
|
9.93
|
%
|
|
|
9.62
|
%
|
|
|
9.48
|
%
|
|
|
9.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
allowance for credit losses to total loans to allowance for credit
losses on loans to total loans excluding Warehouse Purchase Program
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans
|
|
$
|
282,191
|
|
|
$
|
281,576
|
|
|
$
|
282,179
|
|
|
$
|
283,959
|
|
|
$
|
285,163
|
|
Total loans
|
|
$
|
19,334,359
|
|
|
$
|
18,839,827
|
|
|
$
|
18,506,288
|
|
|
$
|
18,208,844
|
|
|
$
|
18,067,524
|
|
Less: Warehouse
Purchase Program loans
|
|
|
(799,115)
|
|
|
|
(740,620)
|
|
|
|
(922,764)
|
|
|
|
(1,137,623)
|
|
|
|
(1,344,541)
|
|
Total loans less
Warehouse Purchase Program loans
|
|
$
|
18,535,244
|
|
|
$
|
18,099,207
|
|
|
$
|
17,583,524
|
|
|
$
|
17,071,221
|
|
|
$
|
16,722,983
|
|
Allowance for credit
losses on loans to total loans excluding Warehouse Purchase Program
loans
|
|
|
1.52
|
%
|
|
|
1.56
|
%
|
|
|
1.60
|
%
|
|
|
1.66
|
%
|
|
|
1.71
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
efficiency ratio to efficiency ratio excluding net gains and losses
on the sale of assets and securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
123,000
|
|
|
$
|
119,244
|
|
|
$
|
122,214
|
|
|
$
|
122,878
|
|
|
$
|
119,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
243,467
|
|
|
$
|
256,137
|
|
|
$
|
260,679
|
|
|
$
|
248,471
|
|
|
$
|
239,944
|
|
Noninterest
income
|
|
|
38,266
|
|
|
|
37,724
|
|
|
|
34,688
|
|
|
|
37,594
|
|
|
|
35,122
|
|
Less: net gain on sale
or write down of assets
|
|
|
121
|
|
|
|
2,087
|
|
|
|
50
|
|
|
|
1,108
|
|
|
|
689
|
|
Noninterest income
excluding net gains and losses on the sale or write down of assets
and securities
|
|
|
38,145
|
|
|
|
35,637
|
|
|
|
34,638
|
|
|
|
36,486
|
|
|
|
34,433
|
|
Total income excluding
net gains and losses on the sale or write down of assets and
securities
|
|
$
|
281,612
|
|
|
$
|
291,774
|
|
|
$
|
295,317
|
|
|
$
|
284,957
|
|
|
$
|
274,377
|
|
Efficiency ratio,
excluding net gains and losses on the sale or write down of assets
and securities
|
|
|
43.68
|
%
|
|
|
40.87
|
%
|
|
|
41.38
|
%
|
|
|
43.12
|
%
|
|
|
43.68
|
%
|
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SOURCE Prosperity Bancshares, Inc.