PRESS RELEASE Prosperity Bancshares, Inc.® Prosperity Bank Plaza 4295 San Felipe Houston, Texas 77027
FOR IMMEDIATE RELEASE | | For more information contact: Dan Rollins President and Chief Operating Officer 281.269.7199 dan.rollins@prosperitybanktx.com |
PROSPERITY BANCSHARES, INC.®
REPORTS STRONG 2009
EARNINGS
· 4Q 2009 Earnings Per Share of $0.65 (diluted)
· Non-Performing Assets equal 0.22% of 4Q Average Earning Assets
· Total Risk Based Capital is 13.86%
· Tier 1 Leverage Capital is 6.47%
HOUSTON, January 22, 2010. Prosperity Bancshares, Inc.® NASDAQ: (PRSP), the parent company of Prosperity Bank®, reported net income for the quarter ended December 31, 2009 of $30.569 million or $0.65 per diluted common share, an increase in net income of $7.884 million or 34.8%, compared with $22.685 million or $0.49 per diluted common share for the same period in 2008. Prosperity also reported net income for the year ended December 31, 2009 of $111.879 million or $2.41 per diluted common share, up 32.4% from 2008 net income of $84.507 million and up 29.6% from 2008 diluted earnings per common share of $1.86.
Excluding impairment charges on Prosperity’s Fannie Mae and Freddie Mac perpetual preferred securities of $14.025 million pre-tax during the third quarter of 2008, net income for the year ended December 31, 2008 would have been $93.623 million or $2.06 per diluted common share.
Prosperity was included in the January 18, 2010 issue of Forbes magazine in their list of “Good Banks/Bad Banks” as the 4th best bank in the nation. The report considered eight measures of asset quality, capital adequacy and profitability. In addition, Prosperity was recently recognized by Morningstar for its strong performance in their article entitled “Our Favorite Texas Banking Franchises.”
“We continue to be pleased with our performance during these challenging economic conditions” said David Zalman, Prosperity’s Chairman and Chief Executive Officer. “Our bankers remain focused on growing our bank one customer at a time in a prudent fashion.”
In addition to Prosperity’s GAAP (generally accepted accounting principles) financial reporting, Prosperity’s management includes certain non−GAAP financial measures to evaluate its performance. Specifically, Prosperity reviews return on average tangible common equity, tangible book value per share and the tangible equity to tangible assets ratio. Prosperity also reviews its non-interest expense, net income, earnings per share and related performance ratios for the twelve month period ending December 31, 2008 excluding the non-recurring impairment charge on Fannie Mae and Freddie Mac perpetual preferred securities. Prosperity has included in this Earnings Release information relating to these non-GAAP financial measures for the applicable periods presented. 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.
Results of operations for the three months ended December 31, 2009
For the three months ended December 31, 2009, net income was $30.569 million compared with $22.685 million for the same period in 2008. Net income per diluted common share was $0.65 for the three months ended December 31, 2009 and $0.49 for the same period in 2008. Returns on average assets, average common equity and average tangible common equity for the three months ended December 31, 2009 were 1.39%, 9.11% and 28.50%, respectively. Prosperity’s efficiency ratio (excluding net gains and losses on the sale of securities and assets and impairment charge on write-down of securities) was 42.44% for the three months ended December 31, 2009.
Net interest income before provision for credit losses for the quarter ended December 31, 2009 increased 25.2% to $80.089 million compared with $63.957 million during the same period in 2008. The increase was attributable primarily to lower deposit pricing. The net interest margin on a tax equivalent basis increased to 4.24% for the three months ended December 31, 2009 compared with 3.65% for the same period in 2008, primarily impacted by the Franklin Bank transaction in 2008.
Non-interest income increased $1.203 million or 8.9% to $14.711 million for the three months ended December 31, 2009 compared with $13.508 million for the same period in 2008. The increase was mainly attributable to a decrease in losses on the sale of ORE.
Non-interest expense increased $2.590 million or 6.9% to $40.176 million for the fourth quarter of 2009 compared with $37.586 million for the fourth quarter of 2008. The increase was mainly attributable to increased FDIC assessments.
Loans at December 31, 2009 were $3.377 billion, a decrease of $190.354 million or 5.3%, compared with $3.567 billion at December 31, 2008. Construction loans decreased $108.835 million over the past year. Loans decreased 0.9% or $29.434 million on a linked quarter basis compared with loans of $3.406 billion at September 30, 2009. As reflected in the table below, linked quarter loans for the fourth quarter of 2009 were impacted by a decrease in the loans acquired from the FDIC as a part of the Franklin Bank transaction.
Deposits at December 31, 2009 were $7.259 billion, a decrease of $44.747 million or 0.6%, compared with $7.303 billion at December 31, 2008. Excluding the deposits assumed as a part of the Franklin Bank transaction, deposits increased 11.0% or $582.739 million over the past year. Linked quarter deposits increased $140.557 million or 2.0% from $7.118 billion at September 30, 2009. As reflected in the table below, linked quarter deposits for the fourth quarter of 2009 were impacted by the deposits assumed from the FDIC as part of the Franklin Bank transaction.
Balance Sheet Data (at period end) | | Dec 31, 2009 | | | Sept 30, 2009 | | | Dec 31, 2008 | |
| (In Thousands) | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| | | | | | | | | | |
| Loans: | | | | | | | | | |
| Acquired from FDIC (related to Franklin Bank) | | $ | 259,162 | | | $ | 264,319 | | | $ | 356,420 | |
| All other | | | 3,117,541 | | | | 3,141,818 | | | | 3,210,637 | |
| Total Loans | | $ | 3,376,703 | | | $ | 3,406,137 | | | $ | 3,567,057 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Assumed from FDIC (related to Franklin Bank) | | $ | 1,366,931 | | | $ | 1,533,641 | | | $ | 1,994,417 | |
| All other | | | 5,891,619 | | | | 5,584,352 | | | | 5,308,880 | |
| Total Deposits | | $ | 7,258,550 | | | $ | 7,117,993 | | | $ | 7,303,297 | |
| | | | | | | | | | | | | |
Average loans increased 0.7% or $23.977 million to $3.390 billion for the quarter ended December 31, 2009 compared with $3.366 billion for the same period of 2008. Linked quarter average loans decreased 1.2% or $41.532 million from $3.431 billion at September 30, 2009. Average deposits increased 6.0% to $7.089 billion for the quarter ended December 31, 2009 compared with $6.686 billion for the same period of 2008. Linked quarter average deposits decreased 1.9% or $135.270 million from $7.224 billion at September 30, 2009.
At December 31, 2009, construction loans totaled $557.245 million, consisting of approximately $147 million of single family residential construction loans; $89 million of land development loans; $79 million of raw land loans; $101 million of residential lot loans; $52 million of commercial lot loans; and $90 million of commercial construction and other construction loans. This is a decrease of $6.861 million from construction loans at September 30, 2009.
At December 31, 2009, Prosperity had $8.850 billion in total assets, $3.377 billion in loans and $7.259 billion in deposits. Assets, loans and deposits at December 31, 2009 decreased by 2.4%, 5.3% and 0.6%, respectively, compared with their level at December 31, 2008.
Results of operations excluding impairment charges on Fannie Mae and Freddie Mac perpetual preferred securities
Prosperity incurred a non-cash impairment charge on its Fannie Mae and Freddie Mac perpetual preferred securities in the amount of $14.025 million pre-tax ($9.116 million after-tax) in the third quarter of 2008 equal to the full carrying cost of its investment in such securities. The table below presents select financial results before and after the impairment write-down for the related periods.
| 12 Months Ended | | As reported | | | As reported (with charge) | | | Without charge | |
| | | Dec 31, 2009 | | | Dec 31, 2008 | | | Dec 31, 2008 | |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| | | | | | | | | | |
| Non-interest income (in thousands) | | $ | 60,097 | | | $ | 52,370 | | | $ | 52,370 | |
| Non-interest expense (in thousands) | | | 169,700 | | | | 143,796 | | | | 129,771 | |
| Income before taxes (in thousands) | | | 168,723 | | | | 126,436 | | | | 140,461 | |
| Federal income taxes (in thousands) | | | 56,844 | | | | 41,929 | | | | 46,838 | |
| Net income (in thousands) | | | 111,879 | | | | 84,507 | | | | 93,623 | |
| Return on average assets | | | 1.26 | % | | | 1.20 | % | | | 1.33 | % |
| Return on average common equity | | | 8.57 | % | | | 7.09 | % | | | 7.85 | % |
Return on average tangible common Equity | | | 28.66 | % | | | 24.16 | % | | | 26.77 | % |
| Earnings per share (basic) | | $ | 2.42 | | | $ | 1.87 | | | $ | 2.07 | |
| Earnings per share (diluted) | | $ | 2.41 | | | $ | 1.86 | | | $ | 2.06 | |
| Shareholders’ equity (in thousands) | | $ | 1,351,245 | | | $ | 1,255,106 | | | $ | 1,255,106 | |
Results of operations for the twelve months ended December 31, 2009
For the twelve months ended December 31, 2009, net income was $111.879 million compared with $84.507 million for the same period in 2008. Net income per diluted common share was $2.41 for the twelve months ended December 31, 2009 compared with $1.86 for the same period in 2008. Excluding impairment charges on Prosperity’s Fannie Mae and Freddie Mac perpetual preferred securities of $14.025 million pre-tax during the third quarter of 2008, net income for the year ended December 31, 2008 would have been $93.623 million or $2.06 per diluted common share.
Returns on average assets, average common equity and average tangible common equity for the twelve months ended December 31, 2009 were 1.26%, 8.57% and 28.66%, respectively. Prosperity’s efficiency ratio (excluding net gains and losses on the sale of securities and assets) was 46.27% for the twelve months ended December 31, 2009.
Net interest income before provision for credit losses for the twelve months ended December 31, 2009 increased $79.372 million or 34.9%, to $307.101 million compared with $227.729 million during the same period in 2008. The increase was attributable primarily to a 30.26% increase in average earning assets and lower deposit pricing.
Non-interest income increased $7.727 million or 14.8% to $60.097 million for the twelve months ended December 31, 2009 compared with $52.370 million for the same period in 2008. The increase was mainly attributable to a decrease in net loss on sale of ORE and increases in service charges on deposit accounts due to an increased number of deposit accounts assumed from the FDIC as a part of the Franklin Bank transaction and deposit accounts assumed from the Banco Popular and 1st Choice acquisitions.
Non-interest expense increased $25.904 million or 18.0% to $169.700 million for the twelve months ended December 31, 2009 compared with $143.796 million for the same period in 2008. The increase was due primarily to (i) an increase in salaries and benefits expense due to associates added in connection with the Franklin Bank transaction and the acquisition of Banco Popular and 1st Choice; (ii) an increase in FDIC assessments and (iii) an increase in general operating costs associated with the banking centers acquired in 2008 and the banking offices that were previously locations of Franklin Bank. Total non-interest expense for the twelve months ended December 31, 2008 included a $14.025 million impairment charge on write-down of securities.
Asset Quality
Non-performing assets totaled $16.356 million or 0.22% of average earning assets at December 31, 2009 compared with $14.368 million or 0.20% of average earning assets at December 31, 2008 and $21.920 million or 0.29% of average earnings assets at September 30, 2009. Non-performing assets at December 31, 2009 consist of $6.1 million in non-accrual loans, $2.3 million in accruing loans 90 or more days past due, approximately $116,000 in repossessed assets and $7.8 million in ORE. The allowance for credit losses was 1.54% of total loans at December 31, 2009, 1.04% at December 31, 2008 and 1.39% of total loans at September 30, 2009.
Non-performing assets (In thousands) | | Dec 31, 2009 | | | Sept 30, 2009 | | | Dec 31, 2008 | |
| | | Amount | | | | # | | | Amount | | | | # | | | Amount | | | | # | |
| Commercial | | $ | 1,390 | | | | 19 | | | $ | 920 | | | | 26 | | | $ | 1,491 | | | | 16 | |
| Construction | | | 5,622 | | | | 43 | | | | 10,975 | | | | 40 | | | | 9,252 | | | | 36 | |
| 1-4 family (including home equity) | | | 2,383 | | | | 26 | | | | 1,285 | | | | 16 | | | | 1,325 | | | | 19 | |
| Commercial real estate (including multi-family) | | | 6,834 | | | | 14 | | | | 8,592 | | | | 13 | | | | 2,014 | | | | 8 | |
| Agriculture | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 30 | | | | 3 | |
| Consumer | | | 127 | | | | 11 | | | | 148 | | | | 13 | | | | 250 | | | | 15 | |
| Other | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 6 | | | | 1 | |
| Total | | $ | 16,356 | | | | 113 | | | $ | 21,920 | | | | 108 | | | $ | 14,368 | | | | 98 | |
Net Charge-offs (In thousands) | | Three Months Ended Dec 31, 2009 | | | Three Months Ended Sept 30, 2009 | | | Three Months Ended Dec 31, 2008 | |
| Commercial | | $ | 1,762 | | | $ | 712 | | | $ | 1,552 | |
| Construction | | | 1,009 | | | | 780 | | | | 742 | |
| 1-4 family (including home equity) | | | 446 | | | | 297 | | | | 100 | |
| Commercial real estate (including multi-family) | | | 312 | | | | 215 | | | | 43 | |
| Agriculture | | | 10 | | | | 53 | | | | 203 | |
| Consumer | | | 410 | | | | 492 | | | | 371 | |
| Total | | $ | 3,949 | | | $ | 2,549 | | | $ | 3,011 | |
The provision for credit losses was $8.500 million for the three months ended December 31, 2009 and $6.000 million for the three months ended December 31, 2008. Prosperity’s loan loss reserve model called for increased provisioning in the fourth quarter due to increased charge-offs resulting from a continued weak economy. Net charge offs were $3.949 million for the three months ended December 31, 2009 and $3.011 million for the three months ended December 31, 2008.
The provision for credit losses was $28.775 million for the twelve months ended December 31, 2009, an increase of $18.908 million compared with $9.867 million for the twelve months ended December 31, 2008. As mentioned earlier, Prosperity’s loan loss reserve model called for increased provisioning in 2009 due to increased charge-offs resulting from a continued weak economy. Net charge offs were $13.881 million for the twelve months ended December 31, 2009 and $7.621 million for the twelve months ended December 31, 2008.
Conference Call
Prosperity’s management team will host a conference call on Friday, January 22, 2010 at 10:30 a.m. Eastern Standard Time (9:30 a.m. Central Standard Time) to discuss Prosperity’s fourth quarter and full year 2009 earnings. Individuals and investment professionals may participate in the call by dialing 1-800-894-5910, the reference code is PBTX.
Alternatively, individuals may listen to the live webcast of the presentation by visiting Prosperity’s website at www.prosperitybanktx.com. The webcast may be accessed directly from Prosperity’s Investor Relations page by clicking on the “4th Quarter Results and Webcast” link.
Acquisition of U. S. Bank’s Texas Branches
On January 19, 2010, Prosperity announced the signing of a definitive agreement to acquire the three (3) Texas retail bank branches of U.S. Bank (USB). Prosperity Bank will pay a premium for approximately $420 million in deposits, as well as purchase certain loans and other assets attributable to the branches.
The three locations being acquired by Prosperity are the Texas locations U.S. Bank acquired from the FDIC on October 30, 2009 when U.S. Bank acquired the nine (9) subsidiary banks of FBOP Corporation. The Texas banks were Madisonville State Bank in Madisonville, Texas; Citizens National Bank in Teague, Texas; and North Houston Bank in Houston, Texas.
The agreement has been approved by both banks and is expected to close during the first quarter of 2010, although delays could occur. The transaction is subject to certain conditions, including customary regulatory approvals.
Assumption of deposits and acquisition of certain assets from the FDIC as receiver for Franklin Bank, SSB
On November 7, 2008, Prosperity Bank® assumed approximately $3.6 billion of deposits, including all uninsured deposits, from the FDIC, acting in its capacity as receiver for Franklin Bank. The FDIC entered into a purchase and assumption agreement with Prosperity Bank, which paid a premium to ensure that all deposits of Franklin Bank, both insured and uninsured, were transferred to Prosperity Bank. Under terms of the purchase and assumption agreement, Prosperity acquired certain assets from the FDIC, including approximately $350 million in US Treasury and Agency Securities and approximately $350 million in performing loans. The remaining net proceeds were predominately invested in US Agency Securities.
While Franklin Bank operated forty-five (45) full service banking offices, Prosperity is operating thirty-three (33) of the locations as full-service banking centers following the completion of the operational integration which occurred during the first quarter of 2009. The former Franklin Bank locations not operated by Prosperity were closed and consolidated into nearby Prosperity Bank locations.
Acquisition of 1st Choice Bancorp, Inc.
On June 1, 2008, Prosperity completed its previously announced acquisition of 1st Choice Bancorp, Inc. and its wholly owned subsidiary, 1st Choice Bank. 1st Choice Bancorp, Inc. operated two (2) banking offices in Houston, Texas, with one location in South Houston and another in the Heights area, which was consolidated with Prosperity’s Heights location and is located in 1st Choice’s Heights banking office. As of May 31, 2008, 1st Choice Bancorp reported total assets of approximately $314.9 million, loans of approximately $192.7 million, deposits of approximately $285.2 million and stockholders’ equity of approximately $26.4 million.
In connection with the acquisition, Prosperity issued 1,757,757 shares of its common stock and paid approximately $18.758 million in cash for all outstanding shares of 1st Choice Bancorp.
Acquisition of Banco Popular’s Houston Branches
On January 10, 2008, Prosperity Bank® completed its previously announced acquisition of six (6) Houston retail bank branches from Banco Popular North America. The branches had approximately $125 million in combined deposits. All six (6) locations are now operating as full service banking centers of Prosperity Bank®.
Prosperity Bancshares, Inc.®
Prosperity Bancshares, Inc.®, an $8.9 billion Houston, Texas based regional financial holding company, formed in 1983, operates under a community banking philosophy and seeks to develop broad customer relationships based on service and convenience. Prosperity offers a variety of traditional loan and deposit products to its customers, which consist primarily of small and medium sized businesses and consumers. In addition to established banking products, Prosperity offers a complete line of services including: Internet Banking services at http://www.prosperitybanktx.com, Retail Brokerage Services, MasterMoney Debit Cards, and 24 hour voice response banking. Prosperity currently operates one hundred fifty-eight (158) full service banking locations; fifty-one (51) in the Houston area; twenty-seven (27) in the South Texas area including Corpus Christi and Victoria; twenty-four (24) in the Dallas/Fort Worth area; twenty (20) in the East Texas area; and twenty-seven (27) in the Central Texas area including Austin and San Antonio; and nine (9) in the Bryan/College Station area.
| Central Texas Area - | | Dallas/Fort Worth Area - | | Palestine | | Hitchcock |
| | | | | Rusk | | Katy |
| Austin - | | Dallas - | | Seven Points | | Liberty |
| Allandale | | Abrams Centre | | Tyler | | Magnolia |
| Cedar Park | | Balch Springs | | Tyler-University | | Mont Belvieu |
| Congress | | Camp Wisdom | | Winnsboro | | Nederland |
| 183 | | Cedar Hill | | | | Needville |
| Lakeway | | Central Expressway | | | | Sweeny |
| Liberty Hill | | Frisco | | Houston Area - | | Tomball |
| Northland | | Frisco-West | | | | Waller |
| Oak Hill | | Kiest | | Houston - - | | West Columbia |
| Parmer Lane | | Preston Road | | Aldine | | Wharton |
| Research Blvd | | Red Oak | | Bellaire | | Winnie |
| Rollingwood | | The Colony | | Clear Lake | | Wirt |
| Slaughter Lane | | Turtle Creek | | Copperfield | | |
| | | Westmoreland | | Cypress | | |
| | | | | Downtown | | South Texas Area - |
| Bryan/College Station - | | | | Fairfield | | |
| Bryan | | Fort Worth - | | Gessner | | Corpus Christi - |
| Bryan-East | | Haltom City | | Gladebrook | | Airline |
| Bryan-North | | Keller | | Harrisburg | | Carmel |
| College Station | | Roanoke | | Heights | | Northwest |
| Greens Prairie | | Stockyards | | Highway 6 West | | Saratoga |
| Wellborn Road | | | | Hillcroft | | Water Street |
| Rock Prairie | | | | Little York | | |
| | | Other Dallas/Fort Worth Locations - | | Medical Center | | Other South Texas |
| | | Azle | | Memorial Drive | | Locations - |
| Other Central Texas Locations - | | Ennis | | Pasadena | | Alice |
| Bastrop | | Gainesville | | Pecan Grove | | Aransas Pass |
| Caldwell | | Mesquite | | River Oaks | | Beeville |
| Dime Box | | Muenster | | Sugar Land | | Cuero |
| Dripping Springs | | Sanger | | SW Medical Center | | Edna |
| Elgin | | Waxahachie | | Tanglewood | | Goliad |
| Flatonia | | | | Uptown | | Gonzales |
| Georgetown | | | | Waugh Drive | | Hallettsville |
| Kingsland | | East Texas Area - | | Westheimer | | Kingsville |
| La Grange | | Athens | | Woodcreek | | Mathis |
| Lexington | | Athens-South | | | | Palacios |
| Navasota | | Blooming Grove | | Other Houston Area | | Pleasanton |
| New Braunfels | | Canton | | Locations - | | Port Aransas |
| Round Rock | | Carthage | | Angleton | | Port Lavaca |
| San Antonio | | Corsicana | | Bay City | | Portland |
| Schulenburg | | Crockett | | Beaumont | | Rockport |
| Smithville | | Eustace | | Cinco Ranch | | Seguin |
| Weimar | | Grapeland | | Cleveland | | Sinton |
| | | Gun Barrel City | | East Bernard | | Victoria |
| | | Jacksonville | | El Campo | | Victoria-North |
| | | Kerens | | Dayton | | Yoakum |
| | | Longview | | Galveston | | Yorktown |
| | | Mount Vernon | | Groves | | |
| | | | | Hempstead | | |
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity’s management on the conference call may contain, forward-looking statements within the meaning of the securities laws that are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares®, and its subsidiaries. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Prosperity’s control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Prosperity can: successfully identify acquisition targets and integrate the businesses of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity’s securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate fluctuations and interest rate fluctuations; weather; and the stock price volatility associated with “small-cap” companies. These and various other factors are discussed in Prosperity’s Annual Report on Form 10-K for the year ended December 31, 2008 and other reports and statements we have filed with the SEC. Copies of the SEC filings for Prosperity Bancshares’s® may be downloaded from the Internet at no charge from www.prosperitybanktx.com.
Prosperity Bancshares, Inc. ®
Financial Highlights
(Dollars and share amounts in thousands, except per share data)
| | | Three Months Ended | | | Twelve Months Ended | |
| | | Dec 31, 2009 | | | Dec 31, 2008 | | | Dec 31, 2009 | | | Dec 31, 2008 | |
| Selected Earnings and Per | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| Share Data | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Total interest income | | $ | 99,585 | | | $ | 96,588 | | | $ | 409,614 | | | $ | 347,878 | |
| Total interest expense | | | 19,496 | | | | 32,631 | | | | 102,513 | | | | 120,149 | |
| Net interest income | | | 80,089 | | | | 63,957 | | | | 307,101 | | | | 227,729 | |
| Provision for credit losses | | | 8,500 | | | | 6,000 | | | | 28,775 | | | | 9,867 | |
| Net interest income after | | | | | | | | | | | | | | | | |
| provision for credit losses | | | 71,589 | | | | 57,957 | | | | 278,326 | | | | 217,862 | |
| | | | | | | | | | | | | | | | | |
| Total non-interest income | | | 14,711 | | | | 13,508 | | | | 60,097 | | | | 52,370 | |
Total non-interest expense(A) | | | 40,176 | | | | 37,586 | | | | 169,700 | | | | 143,796 | |
| Net income before taxes | | | 46,124 | | | | 33,879 | | | | 168,723 | | | | 126,436 | |
| Federal income taxes | | | 15,555 | | | | 11,194 | | | | 56,844 | | | | 41,929 | |
| | | | | | | | | | | | | | | | | |
Net income(B) | | $ | 30,569 | | | $ | 22,685 | | | $ | 111,879 | | | $ | 84,507 | |
| | | | | | | | | | | | | | | | | |
Basic earnings per share(C) | | $ | 0.66 | | | $ | 0.49 | | | $ | 2.42 | | | $ | 1.87 | |
| | | | | | | | | | | | | | | | | |
Diluted earnings per share(C) | | $ | 0.65 | | | $ | 0.49 | | | $ | 2.41 | | | $ | 1.86 | |
| | | | | | | | | | | | | | | | | |
| Period end shares outstanding | | | 46,541 | | | | 46,080 | | | | 46,541 | | | | 46,080 | |
| Weighted average shares | | | | | | | | | | | | | | | | |
| outstanding (basic) | | | 46,524 | | | | 46,078 | | | | 46,177 | | | | 45,300 | |
| Weighted average shares | | | | | | | | | | | | | | | | |
| outstanding (diluted) | | | 46,800 | | | | 46,276 | | | | 46,354 | | | | 45,479 | |
| | |
(A) Total non-interest expense for the twelve months ended December 31, 2008 includes a $14.025 million pre-tax impairment charge on securities. | |
| | |
(B) Earnings for the twelve months ended December 31, 2008 include a $14.025 million pre-tax, or $9.116 million after-tax, impairment charge on securities. | |
| | |
(C)Earnings for the twelve months ended December 31, 2008 include a $14.025 million pre-tax, or $9.116 million after-tax, impairment charge on securities which resulted in a $0.20 decrease in both basic and diluted earnings per share to $1.87 and $1.86, respectively, for the twelve months ended December 31, 2008. | |
Prosperity Bancshares, Inc. ®
Financial Highlights
(Dollars in thousands)
| | | Three Months Ended | | | Twelve Months Ended | |
| | | Dec 31, 2009 | | | Dec 31, 2008 | | | Dec 31, 2009 | | | Dec 31, 2008 | |
| Balance Sheet Averages | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| | | | | | | | | | | | | |
| Total loans | | $ | 3,389,529 | | | $ | 3,365,552 | | | $ | 3,455,761 | | | $ | 3,250,447 | |
| Investment securities | | | 4,152,752 | | | | 3,229,874 | | | | 4,052,989 | | | | 2,409,758 | |
| Federal funds sold and | | | | | | | | | | | | | | | | |
| other temporary investments | | | 13,607 | | | | 451,524 | | | | 77,328 | | | | 163,746 | |
| Total earning assets | | | 7,555,888 | | | | 7,046,950 | | | | 7,586,078 | | | | 5,823,951 | |
| Allowance for credit losses | | | (48,894 | ) | | | (33,494 | ) | | | (42,279 | ) | | | (33,004 | ) |
| Cash and due from banks | | | 131,189 | | | | 183,507 | | | | 137,040 | | | | 146,647 | |
| Goodwill | | | 876,979 | | | | 835,328 | | | | 875,841 | | | | 798,289 | |
| Core Deposit Intangibles (CDI) | | | 36,543 | | | | 42,657 | | | | 38,543 | | | | 44,291 | |
| Other real estate | | | 12,308 | | | | 6,431 | | | | 11,710 | | | | 8,343 | |
| Fixed assets, net | | | 149,649 | | | | 124,210 | | | | 143,562 | | | | 124,114 | |
| Other assets | | | 105,351 | | | | 138,298 | | | | 101,199 | | | | 112,787 | |
| Total assets | | $ | 8,819,013 | | | $ | 8,343,887 | | | $ | 8,851,694 | | | $ | 7,025,418 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Non-interest bearing deposits | | $ | 1,481,514 | | | $ | 1,425,440 | | | $ | 1,488,699 | | | $ | 1,271,408 | |
| Interest bearing deposits | | | 5,607,074 | | | | 5,260,084 | | | | 5,723,316 | | | | 4,200,033 | |
| Total deposits | | | 7,088,588 | | | | 6,685,524 | | | | 7,212,015 | | | | 5,471,441 | |
| Securities sold under | | | | | | | | | | | | | | | | |
| repurchase agreements | | | 88,094 | | | | 92,941 | | | | 93,625 | | | | 84,289 | |
| Federal funds purchased and | | | | | | | | | | | | | | | | |
| other borrowings | | | 141,073 | | | | 178,369 | | | | 75,747 | | | | 124,619 | |
| Junior subordinated | | | | | | | | | | | | | | | | |
| debentures | | | 92,265 | | | | 92,265 | | | | 92,265 | | | | 99,998 | |
| Other liabilities | | �� | 66,410 | | | | 52,297 | | | | 73,293 | | | | 52,778 | |
Shareholders' equity(D) | | | 1,342,583 | | | | 1,242,491 | | | | 1,304,749 | | | | 1,192,293 | |
| Total liabilities and equity | | $ | 8,819,013 | | | $ | 8,343,887 | | | $ | 8,851,694 | | | $ | 7,025,418 | |
(D) Includes $18,216 and ($1,675), in after-tax unrealized gains (losses) on available for sale securities for the three month periods ending December 31, 2009 and December 31, 2008, respectively, and $14,889 and ($1,251) for the twelve month periods ending December 31, 2009 and December 31, 2008, respectively. |
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| | | Three Months Ended | | | Twelve Months Ended | |
| | | Dec 31, 2009 | | | Dec 31, 2008 | | | Dec 31, 2009 | | | Dec 31, 2008 | |
| Income Statement Data | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| | | | | | | | | | | | | |
| Interest on loans | | $ | 53,461 | | | $ | 56,073 | | | $ | 219,320 | | | $ | 227,466 | |
| Interest on securities | | | 46,116 | | | | 39,713 | | | | 190,106 | | | | 118,185 | |
| Interest on federal funds sold and | | | | | | | | | | | | | | | | |
| other temporary investments | | | 8 | | | | 802 | | | | 188 | | | | 2,227 | |
| Total interest income | | | 99,585 | | | | 96,588 | | | | 409,614 | | | | 347,878 | |
| Interest expense - deposits | | | 18,062 | | | | 29,663 | | | | 95,834 | | | | 107,692 | |
| Interest expense - debentures | | | 803 | | | | 1,452 | | | | 3,760 | | | | 6,439 | |
| Interest expense - other | | | 631 | | | | 1,516 | | | | 2,919 | | | | 6,018 | |
| Total interest expense | | | 19,496 | | | | 32,631 | | | | 102,513 | | | | 120,149 | |
Net interest income(E) | | | 80,089 | | | | 63,957 | | | | 307,101 | | | | 227,729 | |
| Provision for credit losses | | | 8,500 | | | | 6,000 | | | | 28,775 | | | | 9,867 | |
| Net interest income after | | | | | | | | | | | | | | | | |
| provision for credit losses | | | 71,589 | | | | 57,957 | | | | 278,326 | | | | 217,862 | |
| Service charges on | | | | | | | | | | | | | | | | |
| deposit accounts | | | 12,953 | | | | 13,204 | | | | 51,742 | | | | 45,785 | |
| Net gain on sale of assets | | | 145 | | | | 130 | | | | 422 | | | | 845 | |
| Net (loss) gain on sale of ORE | | | (135 | ) | | | (1,684 | ) | | | 417 | | | | (2,332 | ) |
| Brokered mortgage income | | | 36 | | | | 34 | | | | 305 | | | | 330 | |
| Net gain on sale of held for | | | | | | | | | | | | | | | | |
| sale loans | | | 0 | | | | 0 | | | | 0 | | | | 229 | |
| Other non-interest income | | | 1,712 | | | | 1,824 | | | | 7,211 | | | | 7,513 | |
| Total non-interest income | | | 14,711 | | | | 13,508 | | | | 60,097 | | | | 52,370 | |
| | | | | | | | | | | | | | | | | |
Salaries and benefits(F) | | | 19,747 | | | | 20,411 | | | | 84,396 | | | | 70,818 | |
| CDI amortization | | | 2,441 | | | | 2,284 | | | | 10,076 | | | | 9,797 | |
| Net occupancy and equipment | | | 3,794 | | | | 3,704 | | | | 14,910 | | | | 12,469 | |
| Depreciation | | | 2,056 | | | | 1,854 | | | | 8,226 | | | | 7,666 | |
| Data processing | | | | | | | | | | | | | | | | |
| and software amortization | | | 1,386 | | | | 1,609 | | | | 6,449 | | | | 5,580 | |
| Impairment charge on | | | | | | | | | | | | | | | | |
| write-down of securities | | | 0 | | | | 0 | | | | 0 | | | | 14,025 | |
| Other non-interest expense | | | 10,752 | | | | 7,724 | | | | 45,643 | | | | 23,441 | |
| Total non-interest expense | | | 40,176 | | | | 37,586 | | | | 169,700 | | | | 143,796 | |
| Net income before taxes | | | 46,124 | | | | 33,879 | | | | 168,723 | | | | 126,436 | |
| Federal income taxes | | | 15,555 | | | | 11,194 | | | | 56,844 | | | | 41,929 | |
| Net income available | | | | | | | | | | | | | | | | |
to common shareholders(G) | | $ | 30,569 | | | $ | 22,685 | | | $ | 111,879 | | | $ | 84,507 | |
| | |
(E) Net interest income on a tax equivalent basis would be $80,770 and $64,597 for the three months ended December 31, 2009 and December 31, 2008, respectively, and $309,866 and $230,592 for the twelve months ended December 31, 2009 and December 31, 2008, respectively. | |
| | |
(F) Salaries and benefits includes equity compensation expenses of $628 and $432 for the three months ended December 31, 2009 and December 31, 2008, respectively, and $1,515 and $1,543 for the twelve months ended December 31, 2009 and December 31, 2008, respectively. | |
| | |
| (G) Earnings for the twelve months ended December 31, 2008 include a $14.025 million pre-tax, or $9.116 million after-tax, impairment charge on securities. | |
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars and share amounts in thousands, except per share data)
| | | As of and for the | | | As of and for the | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | Dec 31, 2009 | | | Dec 31, 2008 | | | Dec 31, 2009 | | | Dec 31, 2008 | |
| Common Share and | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| Other Data | | | | | | | | | | | | |
| Employees - FTE | | | 1,594 | | | | 1,734 | | | | 1,594 | | | | 1,734 | |
| | | | | | | | | | | | | | | | | |
| Book value per share | | $ | 29.03 | | | $ | 27.24 | | | $ | 29.03 | | | $ | 27.24 | |
| Tangible book value per share | | $ | 9.43 | | | $ | 7.43 | | | $ | 9.43 | | | $ | 7.43 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Period end shares outstanding | | | 46,541 | | | | 46,080 | | | | 46,541 | | | | 46,080 | |
| Weighted average shares | | | | | | | | | | | | | | | | |
| outstanding (basic) | | | 46,524 | | | | 46,078 | | | | 46,177 | | | | 45,300 | |
| Weighted average shares | | | | | | | | | | | | | | | | |
| outstanding (diluted) | | | 46,800 | | | | 46,276 | | | | 46,354 | | | | 45,479 | |
| | | | | | | | | | | | | | | | | |
| Non-accrual loans | | $ | 6,079 | | | $ | 2,142 | | | $ | 6,079 | | | $ | 2,142 | |
| Accruing loans 90 or more | | | | | | | | | | | | | | | | |
| days past due | | | 2,332 | | | | 7,594 | | | | 2,332 | | | | 7,594 | |
| Restructured loans | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| Total non-performing loans | | | 8,411 | | | | 9,736 | | | | 8,411 | | | | 9,736 | |
| Repossessed assets | | | 116 | | | | 182 | | | | 116 | | | | 182 | |
| Other real estate | | | 7,829 | | | | 4,450 | | | | 7,829 | | | | 4,450 | |
| Total non-performing assets | | $ | 16,356 | | | $ | 14,368 | | | $ | 16,356 | | | $ | 14,368 | |
| | | | | | | | | | | | | | | | | |
| Allowance for credit losses at | | | | | | | | | | | | | | | | |
| end of period | | $ | 51,863 | | | $ | 36,970 | | | $ | 51,863 | | | $ | 36,970 | |
| | | | | | | | | | | | | | | | | |
| Net charge-offs | | $ | 3,949 | | | $ | 3,011 | | | $ | 13,881 | | | $ | 7,621 | |
| | | | | | | | | | | | | | | | | |
Basic earnings per share(H) | | $ | 0.66 | | | $ | 0.49 | | | $ | 2.42 | | | $ | 1.87 | |
| | | | | | | | | | | | | | | | | |
Diluted earnings per share(H) | | $ | 0.65 | | | $ | 0.49 | | | $ | 2.41 | | | $ | 1.86 | |
| | | | | | | | | | | | | | | | | |
(H) Earnings for the twelve months ended December 31, 2008 include a $14.025 million pre-tax, or $9.116 million after-tax, impairment charge on securities which resulted in a $0.20 decrease in both basic and diluted earnings per share to $1.87 and $1.86, respectively, for the twelve months ended December 31, 2008.
Prosperity Bancshares, Inc.®
Financial Highlights
| | | Three Months Ended | | | Twelve Months Ended | |
| | | Dec 31, 2009 | | | Dec 31, 2008 | | | Dec 31, 2009 | | | Dec 31, 2008 | |
| Performance Ratios | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| | | | | | | | | | | | | |
| Return on average | | | | | | | | | | | | |
assets (annualized)(I) | | | 1.39 | % | | | 1.09 | % | | | 1.26 | % | | | 1.20 | % |
| Return on average common | | | | | | | | | | | | | | | | |
equity (annualized)(I) | | | 9.11 | % | | | 7.30 | % | | | 8.57 | % | | | 7.09 | % |
| Return on average tangible | | | | | | | | | | | | | | | | |
common equity (annualized)(I) | | | 28.50 | % | | | 24.89 | % | | | 28.66 | % | | | 24.16 | % |
Net interest margin(J) | | | | | | | | | | | | | | | | |
| (tax equivalent) (annualized) | | | 4.24 | % | | | 3.65 | % | | | 4.08 | % | | | 3.96 | % |
| | | | | | | | | | | | | | | | | |
Efficiency ratio(K) | | | 42.44 | % | | | 48.60 | % | | | 46.27 | % | | | 46.51 | % |
| | | | | | | | | | | | | | | | | |
| Asset Quality Ratios | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Non-performing assets to | | | | | | | | | | | | | | | | |
| average earning assets | | | 0.22 | % | | | 0.20 | % | | | 0.22 | % | | | 0.25 | % |
| Non-performing assets to loans | | | | | | | | | | | | | | | | |
| and other real estate | | | 0.48 | % | | | 0.40 | % | | | 0.48 | % | | | 0.40 | % |
| Net charge-offs | | | | | | | | | | | | | | | | |
| to average loans | | | 0.12 | % | | | 0.09 | % | | | 0.40 | % | | | 0.23 | % |
| Allowance for credit losses to | | | | | | | | | | | | | | | | |
| total loans | | | 1.54 | % | | | 1.04 | % | | | 1.54 | % | | | 1.04 | % |
| | | | | | | | | | | | | | | | | |
| Common Stock Market Price | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| High | | $ | 41.18 | | | $ | 36.98 | | | $ | 41.18 | | | $ | 46.48 | |
| | | | | | | | | | | | | | | | | |
| Low | | $ | 33.62 | | | $ | 25.08 | | | $ | 20.04 | | | $ | 21.96 | |
| | | | | | | | | | | | | | | | | |
| Period end market price | | $ | 40.47 | | | $ | 29.59 | | | $ | 40.47 | | | $ | 29.59 | |
(I) Earnings for the twelve months ended December 31, 2008 include a $14.025 million pre-tax, or $9.116 million after-tax, impairment charge on securities which resulted in a 13 basis point decrease in return on average assets to 1.20%, a 76 basis point decrease in return on average equity to 7.09% and a 261 basis point decrease in return on average tangible common equity to 24.16%. |
(J) Net interest margin for all periods presented is calculated on an actual 365 or actual 366 day basis. |
(K) Prosperity’s efficiency ratio is calculated by dividing total non-interest expense (excluding credit loss provisions) by net interest income plus non-interest income (excluding net gains and losses on the sale of securities and assets and impairment charge on write-down of securities). Additionally, taxes are not part of this calculation. |
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| | | Dec 31, 2009 | | | Sept 30, 2009 | | | June 30, 2009 | | | Mar 31, 2009 | |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| Loan Portfolio | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 415,512 | | | | 12.31 | % | | $ | 439,848 | | | | 12.92 | % | | $ | 461,622 | | | | 13.38 | % | | $ | 461,514 | | | | 13.18 | % |
| Construction | | | 557,245 | | | | 16.51 | % | | | 564,106 | | | | 16.56 | % | | | 613,386 | | | | 17.77 | % | | | 643,151 | | | | 18.37 | % |
| 1-4 family residential | | | 709,101 | | | | 21.00 | % | | | 692,885 | | | | 20.34 | % | | | 675,702 | | | | 19.58 | % | | | 667,392 | | | | 19.06 | % |
| Home equity | | | 117,661 | | | | 3.48 | % | | | 116,873 | | | | 3.43 | % | | | 115,029 | | | | 3.33 | % | | | 112,053 | | | | 3.20 | % |
| Commercial real estate | | | 1,339,219 | | | | 39.66 | % | | | 1,336,454 | | | | 39.24 | % | | | 1,318,489 | | | | 38.20 | % | | | 1,346,056 | | | | 38.45 | % |
| Agriculture | | | 135,529 | | | | 4.01 | % | | | 145,176 | | | | 4.26 | % | | | 149,515 | | | | 4.33 | % | | | 144,384 | | | | 4.12 | % |
| Consumer | | | 102,436 | | | | 3.03 | % | | | 110,795 | | | | 3.25 | % | | | 117,576 | | | | 3.41 | % | | | 126,750 | | | | 3.62 | % |
| Total Loans | | $ | 3,376,703 | | | | | | | $ | 3,406,137 | | | | | | | $ | 3,451,319 | | | | | | | $ | 3,501,300 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposit Types | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing DDA | | $ | 1,492,612 | | | | 20.56 | % | | $ | 1,473,189 | | | | 20.70 | % | | $ | 1,476,378 | | | | 20.34 | % | | $ | 1,510,005 | | | | 20.95 | % |
| Interest bearing DDA | | | 1,391,133 | | | | 19.17 | % | | | 1,066,778 | | | | 14.99 | % | | | 1,060,965 | | | | 14.62 | % | | | 1,030,826 | | | | 14.30 | % |
| Money Market | | | 1,619,970 | | | | 22.32 | % | | | 1,682,345 | | | | 23.63 | % | | | 1,614,874 | | | | 22.25 | % | | | 1,495,724 | | | | 20.76 | % |
| Savings | | | 322,399 | | | | 4.44 | % | | | 320,078 | | | | 4.50 | % | | | 325,232 | | | | 4.48 | % | | | 322,130 | | | | 4.47 | % |
| Time < $100 | | | 1,208,658 | | | | 16.65 | % | | | 1,289,362 | | | | 18.11 | % | | | 1,418,375 | | | | 19.54 | % | | | 1,491,380 | | | | 20.69 | % |
| Time > $100 | | | 1,223,778 | | | | 16.86 | % | | | 1,286,241 | | | | 18.07 | % | | | 1,362,071 | | | | 18.77 | % | | | 1,356,814 | | | | 18.83 | % |
| Total Deposits | | $ | 7,258,550 | | | | | | | $ | 7,117,993 | | | | | | | $ | 7,257,895 | | | | | | | $ | 7,206,879 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loan to Deposit Ratio | | | 46.5 | % | | | | | | | 47.9 | % | | | | | | | 47.6 | % | | | | | | | 48.6 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Construction Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Single family residential construction | | $ | 146,554 | | | | 26.30 | % | | $ | 152,056 | | | | 26.96 | % | | $ | 177,632 | | | | 28.96 | % | | $ | 214,034 | | | | 33.28 | % |
| Land development | | | 89,128 | | | | 15.99 | % | | | 76,996 | | | | 13.65 | % | | | 86,363 | | | | 14.08 | % | | | 91,005 | | | | 14.15 | % |
| Raw land | | | 79,055 | | | | 14.19 | % | | | 84,384 | | | | 14.96 | % | | | 96,157 | | | | 15.67 | % | | | 89,003 | | | | 13.84 | % |
| Residential lots | | | 101,090 | | | | 18.14 | % | | | 103,565 | | | | 18.36 | % | | | 101,321 | | | | 16.52 | % | | | 104,684 | | | | 16.28 | % |
| Commercial lots | | | 51,639 | | | | 9.27 | % | | | 48,139 | | | | 8.53 | % | | | 49,614 | | | | 8.09 | % | | | 37,318 | | | | 5.80 | % |
| Other | | | 89,779 | | | | 16.11 | % | | | 98,966 | | | | 17.54 | % | | | 102,299 | | | | 16.68 | % | | | 107,107 | | | | 16.65 | % |
| Total Construction Loans | | $ | 557,245 | | | | | | | $ | 564,106 | | | | | | | $ | 613,386 | | | | | | | $ | 643,151 | | | | | |
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| | | Dec 31, 2009 | | | Sept 30, 2009 | | | June 30, 2009 | | | Mar 31, 2009 | | | Dec 31, 2008 | |
Balance Sheet Data (at period end) | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| | | | | | | | | | | | | | | | |
| Total loans | | $ | 3,376,703 | | | $ | 3,406,137 | | | $ | 3,451,319 | | | $ | 3,501,300 | | | $ | 3,567,057 | |
Investment securities(L) | | | 4,118,290 | | | | 4,255,057 | | | | 3,981,109 | | | | 3,991,200 | | | | 4,160,401 | |
| Federal funds sold and other | | | | | | | | | | | | | | | | | | | | |
| temporary investments | | | 21,554 | | | | 35,930 | | | | 128,451 | | | | 14,930 | | | | 16,404 | |
| Total earning assets | | | 7,516,547 | | | | 7,697,124 | | | | 7,560,879 | | | | 7,507,430 | | | | 7,743,862 | |
| Allowance for credit losses | | | (51,863 | ) | | | (47,312 | ) | | | (42,611 | ) | | | (39,238 | ) | | | (36,970 | ) |
| Cash and due from banks | | | 173,763 | | | | 120,932 | | | | 142,860 | | | | 148,938 | | | | 212,335 | |
| Goodwill | | | 876,987 | | | | 876,958 | | | | 875,434 | | | | 874,356 | | | | 874,654 | |
| Core deposit intangibles | | | 35,385 | | | | 37,825 | | | | 40,305 | | | | 42,796 | | | | 38,196 | |
| Other real estate | | | 7,829 | | | | 12,738 | | | | 11,101 | | | | 9,134 | | | | 4,450 | |
| Fixed assets, net | | | 148,855 | | | | 149,725 | | | | 149,742 | | | | 151,544 | | | | 123,638 | |
| Other assets | | | 142,897 | | | | 109,342 | | | | 101,241 | | | | 104,237 | | | | 112,199 | |
| Total assets | | $ | 8,850,400 | | | $ | 8,957,332 | | | $ | 8,838,951 | | | $ | 8,799,197 | | | $ | 9,072,364 | |
| | | | | | | | | | | | | | | | | | | | | |
| Demand deposits | | $ | 1,492,612 | | | $ | 1,473,189 | | | $ | 1,476,378 | | | $ | 1,510,005 | | | $ | 1,522,983 | |
| Interest bearing deposits | | | 5,765,938 | | | | 5,644,804 | | | | 5,781,517 | | | | 5,696,874 | | | | 5,780,314 | |
| Total deposits | | | 7,258,550 | | | | 7,117,993 | | | | 7,257,895 | | | | 7,206,879 | | | | 7,303,297 | |
| Securities sold under | | | | | | | | | | | | | | | | | | | | |
| repurchase agreements | | | 72,596 | | | | 100,636 | | | | 96,732 | | | | 81,773 | | | | 96,017 | |
| Federal funds purchased and | | | | | | | | | | | | | | | | | | | | |
| other borrowings | | | 26,140 | | | | 253,855 | | | | 28,170 | | | | 28,441 | | | | 229,395 | |
| Junior subordinated debentures | | | 92,265 | | | | 92,265 | | | | 92,265 | | | | 92,265 | | | | 92,265 | |
| Other liabilities | | | 49,604 | | | | 65,548 | | | | 64,794 | | | | 109,291 | | | | 96,284 | |
| Total liabilities | | | 7,499,155 | | | | 7,630,297 | | | | 7,539,856 | | | | 7,518,649 | | | | 7,817,258 | |
Shareholders' equity(M) | | | 1,351,245 | | | | 1,327,035 | | | | 1,299,095 | | | | 1,280,548 | | | | 1,255,106 | |
| Total liabilities and equity | | $ | 8,850,400 | | | $ | 8,957,332 | | | $ | 8,838,951 | | | $ | 8,799,197 | | | $ | 9,072,364 | |
| | | | | | | | | | | | | | | | | | | | | |
| | |
(L) Includes $25,855, $26,688, $20,153, $23,784 and $15,158 in unrealized gains on available for sale securities for the quarterly periods ending December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively. | |
| | |
(M) Includes $16,806, $17,347, $13,099, $15,460 and $9,853 in after-tax unrealized gains on available for sale securities for the quarterly periods ending December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively. | |
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| | | Three Months Ended | |
| | | Dec 31, 2009 | | | Sept 30, 2009 | | | June 30, 2009 | | | Mar 31, 2009 | | | Dec 31, 2008 | |
| Income Statement Data | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| | | | | | | | | | | | | | | | |
| Interest on loans | | $ | 53,461 | | | $ | 54,809 | | | $ | 55,248 | | | $ | 55,802 | | | $ | 56,073 | |
| Interest on securities | | | 46,116 | | | | 46,812 | | | | 47,450 | | | | 49,726 | | | | 39,713 | |
| Interest on federal funds | | | | | | | | | | | | | | | | | | | | |
| sold and other earning assets | | | 8 | | | | 74 | | | | 70 | | | | 38 | | | | 802 | |
| Total interest income | | | 99,585 | | | | 101,695 | | | | 102,768 | | | | 105,566 | | | | 96,588 | |
| Interest expense- deposits | | | 18,062 | | | | 22,694 | | | | 25,621 | | | | 29,457 | | | | 29,663 | |
| Interest expense- debentures | | | 803 | | | | 879 | | | | 959 | | | | 1,119 | | | | 1,452 | |
| Interest expense- other | | | 631 | | | | 709 | | | | 667 | | | | 912 | | | | 1,516 | |
| Total interest expense | | | 19,496 | | | | 24,282 | | | | 27,247 | | | | 31,488 | | | | 32,631 | |
| Net interest income | | | 80,089 | | | | 77,413 | | | | 75,521 | | | | 74,078 | | | | 63,957 | |
| Provision for credit losses | | | 8,500 | | | | 7,250 | | | | 6,900 | | | | 6,125 | | | | 6,000 | |
| Net interest income after | | | | | | | | | | | | | | | | | | | | |
| provision for credit losses | | | 71,589 | | | | 70,163 | | | | 68,621 | | | | 67,953 | | | | 57,957 | |
| Service charges on | | | | | | | | | | | | | | | | | | | | |
| deposits accounts | | | 12,953 | | | | 13,554 | | | | 12,863 | | | | 12,372 | | | | 13,204 | |
Net gain (loss) on sale of assets | | | 145 | | | | (20 | ) | | | 200 | | | | 97 | | | | 130 | |
| Net (loss) gain on sale of ORE | | | (135 | ) | | | 115 | | | | 415 | | | | 22 | | | | (1,684 | ) |
| Brokered mortgage income | | | 36 | | | | 59 | | | | 140 | | | | 70 | | | | 34 | |
| Other non-interest income | | | 1,712 | | | | 1,528 | | | | 1,515 | | | | 2,456 | | | | 1,824 | |
| Total non-interest income | | | 14,711 | | | | 15,236 | | | | 15,133 | | | | 15,017 | | | | 13,508 | |
| Salaries and benefits | | | 19,747 | | | | 21,507 | | | | 20,494 | | | | 22,648 | | | | 20,411 | |
| CDI amortization | | | 2,441 | | | | 2,479 | | | | 2,492 | | | | 2,664 | | | | 2,284 | |
| Net occupancy and equipment | | | 3,794 | | | | 3,624 | | | | 3,514 | | | | 3,978 | | | | 3,704 | |
| Depreciation | | | 2,056 | | | | 2,100 | | | | 2,069 | | | | 2,001 | | | | 1,854 | |
| Data processing | | | | | | | | | | | | | | | | | | | | |
| and software amortization | | | 1,386 | | | | 1,446 | | | | 1,562 | | | | 2,055 | | | | 1,609 | |
| Other non-interest expense | | | 10,752 | | | | 10,045 | | | | 14,169 | | | | 10,677 | | | | 7,724 | |
| Total non-interest expense | | | 40,176 | | | | 41,201 | | | | 44,300 | | | | 44,023 | | | | 37,586 | |
| Net income before taxes | | | 46,124 | | | | 44,198 | | | | 39,454 | | | | 38,947 | | | | 33,879 | |
| Federal income taxes | | | 15,555 | | | | 14,876 | | | | 12,944 | | | | 13,469 | | | | 11,194 | |
| Net income available | | | | | | | | | | | | | | | | | | | | |
| to common shareholders | | $ | 30,569 | | | $ | 29,322 | | | $ | 26,510 | | | $ | 25,478 | | | $ | 22,685 | |
Prosperity Bancshares, Inc.®
Financial Highlights
| | | Three Months Ended | |
| | | Dec 31, 2009 | | | Sept. 30, 2009 | | | June 30, 2009 | | | Mar 31, 2009 | | | Dec 31, 2008 | |
| Comparative Quarterly | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| Asset Quality, Performance | | | | | | | | | | | | | | | |
| & Capital Ratios | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Return on average | | | | | | | | | | | | | | | |
| assets (annualized) | | | 1.39 | % | | | 1.32 | % | | | 1.20 | % | | | 1.15 | % | | | 1.09 | % |
| Return on average common | | | | | | | | | | | | | | | | | | | | |
| equity (annualized) | | | 9.11 | % | | | 8.93 | % | | | 8.18 | % | | | 8.02 | % | | | 7.30 | % |
| Return on average tangible | | | | | | | | | | | | | | | | | | | | |
| equity (annualized) | | | 28.50 | % | | | 29.34 | % | | | 27.98 | % | | | 28.52 | % | | | 24.89 | % |
| Net interest margin | | | | | | | | | | | | | | | | | | | | |
| (tax equivalent) (annualized) | | | 4.24 | % | | | 4.08 | % | | | 4.04 | % | | | 3.98 | % | | | 3.65 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Employees – FTE | | | 1,594 | | | | 1,608 | | | | 1,634 | | | | 1,684 | | | | 1,734 | |
| | | | | | | | | | | | | | | | | | | | | |
| Efficiency ratio | | | 42.44 | % | | | 44.46 | % | | | 48.98 | % | | | 49.47 | % | | | 48.60 | % |
| Non-performing assets to | | | | | | | | | | | | | | | | | | | | |
| average earning assets | | | 0.22 | % | | | 0.29 | % | | | 0.26 | % | | | 0.16 | % | | | 0.20 | % |
| Non-performing assets to loans | | | | | | | | | | | | | | | | | | | | |
| and other real estate | | | 0.48 | % | | | 0.64 | % | | | 0.57 | % | | | 0.36 | % | | | 0.40 | % |
| Net charge-offs to | | | | | | | | | | | | | | | | | | | | |
| average loans | | | 0.12 | % | | | 0.07 | % | | | 0.10 | % | | | 0.11 | % | | | 0.09 | % |
| Allowance for credit losses to | | | | | | | | | | | | | | | | | | | | |
| total loans | | | 1.54 | % | | | 1.39 | % | | | 1.23 | % | | | 1.12 | % | | | 1.04 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Book value per share | | $ | 29.03 | | | $ | 28.75 | | | $ | 28.17 | | | $ | 27.78 | | | $ | 27.24 | |
| | | | | | | | | | | | | | | | | | | | | |
| Tangible book value per share | | $ | 9.43 | | | $ | 8.93 | | | $ | 8.31 | | | $ | 7.88 | | | $ | 7.43 | |
| | | | | | | | | | | | | | | | | | | | | |
| Tier 1 risk-based capital | | | 12.61 | % | | | 11.85 | % | | | 11.24 | % | | | 10.53 | % | | | 10.27 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Total risk-based capital | | | 13.86 | % | | | 13.01 | % | | | 12.28 | % | | | 11.48 | % | | | 11.17 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Tier 1 leverage capital | | | 6.47 | % | | | 6.09 | % | | | 5.81 | % | | | 5.48 | % | | | 5.68 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Tangible equity to tangible assets | | | 5.53 | % | | | 5.13 | % | | | 4.84 | % | | | 4.61 | % | | | 4.19 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Equity to assets | | | 15.27 | % | | | 14.82 | % | | | 14.70 | % | | | 14.55 | % | | | 13.83 | % |
| | | | | | | | | | | | | | | | | | | | | |
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| | | Three Months Ended December 31, 2009 | |
| YIELD ANALYSIS | | Average | | | Interest Earned | | | Average | |
| | | Balance | | | / Interest Paid | | | Yield/Rate | |
| | | | | | | | | | |
| Interest Earning Assets: | | | | | | | | | |
| Loans | | $ | 3,389,529 | | | $ | 53,461 | | | | 6.26 | % |
| Investment securities | | | 4,152,752 | | | | 46,116 | | | | 4.44 | % |
| Federal funds sold | | | | | | | | | | | | |
| and other temporary investments | | | 13,607 | | | | 8 | | | | 0.23 | % |
| Total interest earning assets | | | 7,555,888 | | | $ | 99,585 | | | | 5.23 | % |
| Allowance for credit losses | | | (48,894 | ) | | | | | | | | |
| Non-interest earning assets | | | 1,312,019 | | | | | | | | | |
| Total assets | | $ | 8,819,013 | | | | | | | | | |
| | | | | | | | | | | | | |
| Interest Bearing Liabilities: | | | | | | | | | | | | |
| Interest bearing demand deposits | | $ | 1,119,119 | | | $ | 2,030 | | | | 0.72 | % |
| Savings and money market deposits | | | 1,988,158 | | | | 4,150 | | | | 0.83 | % |
| Certificates and other time deposits | | | 2,499,797 | | | | 11,882 | | | | 1.89 | % |
| Securities sold under repurchase agreements | | | 88,094 | | | | 218 | | | | 0.98 | % |
| Federal funds purchased and other borrowings | | | 141,073 | | | | 413 | | | | 1.16 | % |
| Junior subordinated debentures | | | 92,265 | | | | 803 | | | | 3.45 | % |
| Total interest bearing liabilities | | | 5,928,506 | | | $ | 19,496 | | | | 1.30 | % |
| Non-interest bearing liabilities: | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | | 1,481,514 | | | | | | | | | |
| Other liabilities | | | 66,410 | | | | | | | | | |
| Total liabilities | | | 7,476,430 | | | | | | | | | |
| Shareholders' equity | | | 1,342,583 | | | | | | | | | |
| Total liabilities and shareholders' equity | | $ | 8,819,013 | | | | | | | | | |
| | | | | | | | | | | | | |
| Net Interest Income & Margin | | | | | | $ | 80,089 | | | | 4.21 | % |
| | | | | | | | | | | | | |
| Net Interest Income & Margin | | | | | | | | | | | | |
| (tax equivalent) | | | | | | $ | 80,770 | | | | 4.24 | % |
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| | | Three Months Ended December 31, 2008 | |
| YIELD ANALYSIS | | Average | | | Interest Earned | | | Average | |
| | | Balance | | | / Interest Paid | | | Yield/Rate | |
| | | | | | | | | | |
| Interest Earning Assets: | | | | | | | | | |
| Loans | | $ | 3,365,552 | | | $ | 56,073 | | | | 6.63 | % |
| Investment securities | | | 3,229,874 | | | | 39,713 | | | | 4.92 | % |
| Federal funds sold | | | | | | | | | | | | |
| and other temporary investments | | | 451,524 | | | | 802 | | | | 0.71 | % |
| Total interest earning assets | | | 7,046,950 | | | $ | 96,588 | | | | 5.45 | % |
| Allowance for credit losses | | | (33,494 | ) | | | | | | | | |
| Non-interest earning assets | | | 1,330,431 | | | | | | | | | |
| Total assets | | $ | 8,343,887 | | | | | | | | | |
| | | | | | | | | | | | | |
| Interest Bearing Liabilities: | | | | | | | | | | | | |
| Interest bearing demand deposits | | $ | 839,152 | | | $ | 1,629 | | | | 0.77 | % |
| Savings and money market deposits | | | 1,578,817 | | | | 6,895 | | | | 1.74 | % |
| Certificates and other time deposits | | | 2,842,115 | | | | 21,139 | | | | 2.96 | % |
| Securities sold under repurchase agreements | | | 92,941 | | | | 579 | | | | 2.48 | % |
| Federal funds purchased and other borrowings | | | 178,369 | | | | 937 | | | | 2.09 | % |
| Junior subordinated debentures | | | 92,265 | | | | 1,452 | | | | 6.26 | % |
| Total interest bearing liabilities | | | 5,623,659 | | | $ | 32,631 | | | | 2.31 | % |
| Non-interest bearing liabilities: | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | | 1,425,440 | | | | | | | | | |
| Other liabilities | | | 52,297 | | | | | | | | | |
| Total liabilities | | | 7,101,396 | | | | | | | | | |
| Shareholders' equity | | | 1,242,491 | | | | | | | | | |
| Total liabilities and shareholders' equity | | $ | 8,343,887 | | | | | | | | | |
| | | | | | | | | | | | | |
| Net Interest Income & Margin | | | | | | $ | 63,957 | | | | 3.61 | % |
| | | | | | | | | | | | | |
| Net Interest Income & Margin | | | | | | | | | | | | |
| (tax equivalent) | | | | | | $ | 64,597 | | | | 3.65 | % |
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| | | Twelve Months Ended December 31, 2009 | |
| YIELD ANALYSIS | | Average | | | Interest Earned | | | Average | |
| | | Balance | | | / Interest Paid | | | Yield/Rate | |
| | | | | | | | | | |
| Interest Earning Assets: | | | | | | | | | |
| Loans | | $ | 3,455,761 | | | $ | 219,320 | | | | 6.35 | % |
| Investment securities | | | 4,052,989 | | | | 190,106 | | | | 4.69 | % |
| Federal funds sold | | | | | | | | | | | | |
| and other temporary investments | | | 77,328 | | | | 188 | | | | 0.24 | % |
| Total interest earning assets | | | 7,586,078 | | | $ | 409,614 | | | | 5.40 | % |
| Allowance for credit losses | | | (42,279 | ) | | | | | | | | |
| Non-interest earning assets | | | 1,307,895 | | | | | | | | | |
| Total assets | | $ | 8,851,694 | | | | | | | | | |
| | | | | | | | | | | | | |
| Interest Bearing Liabilities: | | | | | | | | | | | | |
| Interest bearing demand deposits | | $ | 1,082,332 | | | $ | 8,587 | | | | 0.79 | % |
| Savings and money market deposits | | | 1,910,721 | | | | 19,405 | | | | 1.02 | % |
| Certificates and other time deposits | | | 2,730,263 | | | | 67,842 | | | | 2.48 | % |
| Securities sold under repurchase agreements | | | 93,625 | | | | 1,166 | | | | 1.25 | % |
| Federal funds purchased and other borrowings | | | 75,747 | | | | 1,753 | | | | 2.31 | % |
| Junior subordinated debentures | | | 92,265 | | | | 3,760 | | | | 4.08 | % |
| Total interest bearing liabilities | | | 5,984,953 | | | $ | 102,513 | | | | 1.71 | % |
| Non-interest bearing liabilities: | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | | 1,488,699 | | | | | | | | | |
| Other liabilities | | | 73,293 | | | | | | | | | |
| Total liabilities | | | 7,546,945 | | | | | | | | | |
| Shareholders' equity | | | 1,304,749 | | | | | | | | | |
| Total liabilities and shareholders' equity | | $ | 8,851,694 | | | | | | | | | |
| | | | | | | | | | | | | |
| Net Interest Income & Margin | | | | | | $ | 307,101 | | | | 4.05 | % |
| | | | | | | | | | | | | |
| Net Interest Income & Margin | | | | | | | | | | | | |
| (tax equivalent) | | | | | | $ | 309,866 | | | | 4.08 | % |
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| | | Twelve Months Ended December 31, 2008 | |
| YIELD ANALYSIS | | Average | | | Interest Earned | | | Average | |
| | | Balance | | | / Interest Paid | | | Yield/Rate | |
| | | | | | | | | | |
| Interest Earning Assets: | | | | | | | | | |
| Loans | | $ | 3,250,447 | | | $ | 227,466 | | | | 7.00 | % |
| Investment securities | | | 2,409,758 | | | | 118,185 | | | | 4.90 | % |
| Federal funds sold | | | | | | | | | | | | |
| and other temporary investments | | | 163,746 | | | | 2,227 | | | | 1.36 | % |
| Total interest earning assets | | | 5,823,951 | | | $ | 347,878 | | | | 5.97 | % |
| Allowance for credit losses | | | (33,004 | ) | | | | | | | | |
| Non-interest earning assets | | | 1,234,471 | | | | | | | | | |
| Total assets | | $ | 7,025,418 | | | | | | | | | |
| | | | | | | | | | | | | |
| Interest Bearing Liabilities: | | | | | | | | | | | | |
| Interest bearing demand deposits | | $ | 791,739 | | | $ | 7,967 | | | | 1.01 | % |
| Savings and money market deposits | | | 1,411,142 | | | | 27,770 | | | | 1.97 | % |
| Certificates and other time deposits | | | 1,997,152 | | | | 71,955 | | | | 3.60 | % |
| Securities sold under repurchase agreements | | | 84,289 | | | | 2,388 | | | | 2.83 | % |
| Federal funds purchased and other borrowings | | | 124,619 | | | | 3,630 | | | | 2.91 | % |
| Junior subordinated debentures | | | 99,998 | | | | 6,439 | | | | 6.44 | % |
| Total interest bearing liabilities | | | 4,508,939 | | | $ | 120,149 | | | | 2.66 | % |
| Non-interest bearing liabilities: | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | | 1,271,408 | | | | | | | | | |
| Other liabilities | | | 52,778 | | | | | | | | | |
| Total liabilities | | | 5,833,125 | | | | | | | | | |
| Shareholders' equity | | | 1,192,293 | | | | | | | | | |
| Total liabilities and shareholders' equity | | $ | 7,025,418 | | | | | | | | | |
| | | | | | | | | | | | | |
| Net Interest Income & Margin | | | | | | $ | 227,729 | | | | 3.91 | % |
| | | | | | | | | | | | | |
| Net Interest Income & Margin | | | | | | | | | | | | |
| (tax equivalent) | | | | | | $ | 230,592 | | | | 3.96 | % |
| | | | | | | | | | | | | |
Prosperity Bancshares, Inc.®
Notes to Selected Financial Data (Unaudited)
(Dollars in thousands)
Consolidated Financial Highlights
NOTES TO SELECTED FINANCIAL DATA
Prosperity’s management uses certain non−GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Specifically, Prosperity reviews tangible book value per share, return on average tangible common equity and the tangible equity to tangible assets ratio for internal planning and forecasting purposes. Prosperity also reviews its net income, earnings per share, non-interest expense and related performance ratios for the twelve month period ended December 31, 2008 excluding the non-recurring impairment charge on Fannie Mae and Freddie Mac perpetual preferred securities. Prosperity has included in this Earnings Release information relating to these non-GAAP financial measures for the applicable periods presented. Prosperity believes these non-GAAP financial measures provide information useful to investors in understanding Prosperity’s financial results and Prosperity believes that its presentation, together with the accompanying reconciliations, provides a better understanding of factors and trends affecting Prosperity’s business and allows investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. Further, Prosperity believes that these non-GAAP measures provide useful information by excluding certain items that may not be indicative of its core operating earnings and business outlook. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Prosperity strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
Prosperity Bancshares, Inc.®
Notes to Selected Financial Data (Unaudited)
(Dollars and share amounts in thousands)
| | | Three months ended | |
| | | Dec 31, 2009 | | | Sept 30, 2009 | | | June 30, 2009 | | | Mar 31, 2009 | | | Dec 31, 2008 | |
| Return on average tangible common equity: | | | | | | | | | | |
| Net income | | $ | 30,569 | | | $ | 29,322 | | | $ | 26,510 | | | $ | 25,478 | | | $ | 22,685 | |
| Average shareholders' equity | | | 1,342,583 | | | | 1,314,011 | | | | 1,295,737 | | | | 1,270,380 | | | | 1,242,491 | |
| Less: Average goodwill and other intangible assets | | | (913,522 | ) | | | (914,203 | ) | | | (916,754 | ) | | | (913,010 | ) | | | (877,985 | ) |
| Average tangible shareholders’ equity | | $ | 429,061 | | | $ | 399,808 | | | $ | 378,983 | | | $ | 357,370 | | | $ | 364,506 | |
| Return on average tangible common equity: | | | 28.50 | % | | | 29.34 | % | | | 27.98 | % | | | 28.52 | % | | | 24.89 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Tangible book value per share: | | | | | | | | | | | | | |
| Shareholders’ equity | | $ | 1,351,245 | | | $ | 1,327,035 | | | $ | 1,299,095 | | | $ | 1,280,548 | | | $ | 1,255,106 | |
| Less: Goodwill and other intangible assets | | | (912,372 | ) | | | (914,783 | ) | | | (915,739 | ) | | | (917,152 | ) | | | (912,850 | ) |
| Tangible shareholders’ equity | | $ | 438,873 | | | $ | 412,252 | | | $ | 383,356 | | | $ | 363,396 | | | $ | 342,256 | |
| | | | | | | | | | | | | | | | | | | | | |
| Period end shares outstanding | | | 46,541 | | | | 46,153 | | | | 46,109 | | | | 46,100 | | | | 46,080 | |
| Tangible book value per share: | | $ | 9.43 | | | $ | 8.93 | | | $ | 8.31 | | | $ | 7.88 | | | $ | 7.43 | |
| | | | | | | | | | | | | | | | | | | | | |
| Tangible equity to tangible assets ratio: | | | | | | | | | |
| Tangible shareholders’ equity | | $ | 438,873 | | | $ | 412,252 | | | $ | 383,356 | | | $ | 363,396 | | | $ | 342,256 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 8,850,400 | | | $ | 8,957,332 | | | $ | 8,838,951 | | | $ | 8,799,197 | | | $ | 9,072,364 | |
| Less: Goodwill and other intangible assets | | | (912,372 | ) | | | (914,783 | ) | | | (915,739 | ) | | | (917,152 | ) | | | (912,850 | ) |
| Tangible assets | | $ | 7,938,028 | | | $ | 8,042,549 | | | $ | 7,923,212 | | | $ | 7,882,045 | | | $ | 8,159,514 | |
| | | | | | | | | | | | | | | | | | | | | |
| Tangible equity to tangible assets ratio: | | | 5.53 | % | | | 5.13 | % | | | 4.84 | % | | | 4.61 | % | | | 4.19 | % |
Prosperity Bancshares, Inc.®
Notes to Selected Financial Data (Unaudited)
(Dollars and share amounts in thousands)
| | | Twelve Months Ended | |
| | | Dec 31, 2009 | | | Dec 31, 2008 | |
| Return on average tangible common equity: | | | | | | |
| Net income | | $ | 111,879 | | | $ | 84,507 | |
| Average shareholders' equity | | | 1,304,749 | | | | 1,192,293 | |
| Less: Average goodwill and other intangible assets | | | (914,384 | ) | | | (842,580 | ) |
| Average tangible shareholders’ equity | | $ | 390,365 | | | $ | 349,713 | |
| Return on average tangible common equity: | | | 28.66 | % | | | 24.16 | % |
| | | | | | | | | |
| Tangible book value per share: | | | | | | | | |
| Shareholders equity | | $ | 1,351,245 | | | $ | 1,255,106 | |
| Less: Goodwill and other intangible assets | | | (912,372 | ) | | | (912,850 | ) |
| Tangible shareholders’ equity | | $ | 438,873 | | | $ | 342,256 | |
| | | | | | | | | |
| Period end shares outstanding | | | 46,541 | | | | 46,080 | |
| Tangible book value per share: | | $ | 9.43 | | | $ | 7.43 | |
| | | | | | | | | |
| Tangible equity to tangible assets ratio: | | | | | |
| Tangible shareholders’ equity | | $ | 438,873 | | | $ | 342,256 | |
| | | | | | | | | |
| Total assets | | $ | 8,850,400 | | | $ | 9,072,364 | |
| Less: Goodwill and other intangible assets | | | (912,372 | ) | | | (912,850 | ) |
| Tangible assets | | $ | 7,938,028 | | | $ | 8,159,514 | |
| | | | | | | | | |
| Tangible equity to tangible assets ratio: | | | 5.53 | % | | | 4.19 | % |
Prosperity Bancshares, Inc.®
Notes to Selected Financial Data (Unaudited)
(Dollars and share amounts in thousands)
Results of operations before impairment charge for the twelve months ended December 31, 2008
The following results illustrate the effect of the $14.025 million pre-tax ($9.116 million after-tax) impairment charge on Fannie Mae and Freddie Mac perpetual preferred securities which was recognized during the twelve months ended December 31, 2008(1):
| | | | 12 Months Ended December 31, 2008 | |
| Adjusted non-interest expense: | | | | |
| Non-interest expense (GAAP) | | $ | 143,796 | |
| Less: Impairment charge on securities | | | (14,025 | ) |
| Adjusted non-interest expense | | $ | 129,771 | |
| | | | | |
| Adjusted net income: | | | | |
| Net income (GAAP) | | $ | 84,507 | |
| Add: Impairment charge on securities | | | 14,025 | |
| Less: Tax effect of impairment charge on securities | | | (4,909 | ) |
| Adjusted net income | | $ | 93,623 | |
| | | | | |
| Adjusted earnings per share: | |
| Adjusted net income | | $ | 93,623 | |
| Weighted average shares outstanding-basic | | | 45,300 | |
| Adjusted earnings per share (basic) | | $ | 2.07 | |
| Weighted average shares outstanding-diluted | | | 45,479 | |
| Adjusted earnings per share (diluted) | | $ | 2.06 | |
| | | | | |
| Adjusted return on average assets: | |
| Adjusted net income | | $ | 93,623 | |
| Average assets | | $ | 7,025,418 | |
| Adjusted return on average assets | | | 1.33 | % |
| | | | | |
| Adjusted return on average common equity: | |
| Adjusted net income | | $ | 93,623 | |
| Average equity | | $ | 1,192,293 | |
| Adjusted return on average common equity | | | 7.85 | % |
| | | | | |
| Adjusted return on average tangible common equity: | |
| Adjusted net income | | $ | 93,623 | |
| Average equity | | $ | 1,192,293 | |
| Less: Average goodwill and other intangible assets | | | (842,580 | ) |
| Average tangible shareholders’ equity | | $ | 349,713 | |
| Adjusted return on average common equity | | | 26.77 | % |
| | | | | |
(1) Total non-interest income, net interest income and shareholders’ equity were not affected by the impairment charge. |
