HOUSTON, July 22, 2011 /PRNewswire/ -- Prosperity Bancshares, Inc.® (NASDAQ: PRSP), the parent company of Prosperity Bank®, reported net income for the quarter ended June 30, 2011 of $35.092 million or $0.75 per diluted common share, an increase in net income of $3.346 million or 10.5%, compared with $31.746 million or $0.68 per diluted common share for the same period in 2010.
"I am very excited and proud to be able to announce such positive results for the 2nd quarter of 2011, especially during the challenging economic times our industry is facing. Last fall, we embarked on a plan that challenged our associates to grow the bank organically by increasing loans $1 billion dollars before the end of 2012. We are well on our way to achieve this goal showing an annualized increase in loans over the last two quarters of 10.3%. Our non-interest bearing deposits continue to show solid growth, increasing over $212 million or 13.4% compared to the same quarter last year," commented David Zalman, Chairman and Chief Executive Officer.
"Our tangible common equity to tangible asset ratio continues to increase significantly, due entirely to the strong earnings we have been able to produce, and now stands at 6.46% compared with 5.19% in the same quarter last year," continued Zalman.
"Our past due loans and charge-offs continue to decline. The majority of our customers appear to be more profitable when compared to the last few years, although many express concerns about our country's economic conditions and the current political environment," continued Zalman.
"We owe all of our success to our team of associates and board members who have helped grow the company in the right direction with all of their hard work, insight and dedication and for that, I say, thank you! We would also like to thank all of our customers for their business and loyalty to our bank," concluded Zalman.
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. 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 June 30, 2011
For the three months ended June 30, 2011, net income was $35.092 million compared with $31.746 million for the same period in 2010. Net income per diluted common share was $0.75 for the three months ended June 30, 2011 and $0.68 for the same period in 2010. Returns on average assets, average common equity and average tangible common equity for the three months ended June 30, 2011 were 1.45%, 9.36% and 25.56%, respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale of securities and assets) was 43.58% for the three months ended June 30, 2011.
Net interest income before provision for credit losses for the quarter ended June 30, 2011 increased 3.8% to $83.630 million compared with $80.600 million during the same period in 2010. The increase was attributable primarily to a 2.4% increase in average earning assets from $8.155 billion for the three months ended June 30, 2010 to $8.352 billion for the three months ended June 30, 2011. Additionally, the average yield on interest earning assets decreased 30 basis points while the rate paid on interest bearing liabilities decreased 41 basis points for the same periods. The net interest margin on a tax equivalent basis increased to 4.06% for the three months ended June 30, 2011 compared with 4.00% for the same period in 2010.
On a linked quarter basis, the tax equivalent net interest margin increased four basis points to 4.06% for the three months ended June 30, 2011 from 4.02% reported for the three months ended March 31, 2011.
Non-interest income increased $234,000 or 1.8% to $13.530 million for the three months ended June 30, 2011 compared with $13.296 million during the same period in 2010. Included in the June 30, 2011 total was a loss on sale of securities of $581,000. The Company sold two non-agency CMO's with a total book value of $3.199 million due to a down grade of the CMO's to less than investment grade in the second quarter of 2011. Following this sale, at June 30, 2011, the Company has nine investment grade non-agency CMO's remaining with a total book value of $3.958 million.
Non-interest expense decreased $535,000 or 1.2% to $42.514 million for the three months ended June 30, 2011 compared with $43.049 million during the same period in 2010. The decrease was attributable to a reduction in other expenses, partially offset by an increase in salaries and benefits expense. Overall general expenses were down due to continued cost efficiencies implemented by the Company.
Average loans increased 6.7% or $227.129 million to $3.631 billion for the quarter ended June 30, 2011 compared with $3.404 billion for the same period of 2010. Linked quarter average loans increased 3.3% or $114.732 million from $3.516 billion at March 31, 2011. Average deposits decreased 0.8% or $59.882 million to $7.752 billion for the quarter ended June 30, 2011 compared with $7.812 billion for the same period of 2010. Linked quarter average deposits increased 0.7% or $54.097 million from $7.698 billion at March 31, 2011.
Loans at June 30, 2011 were $3.665 billion, an increase of $240.208 million or 7.0%, compared with $3.425 billion at June 30, 2010 and an increase of $180.225 million or 5.2% (10.3% annualized) compared with $3.485 billion at December 31, 2010. Loans increased 2.6% (10.3% annualized) or $92.328 million on a linked quarter basis compared with loans of $3.573 billion at March 31, 2011.
Deposits at June 30, 2011 were $7.668 billion, a decrease of $146.237 million or 1.9%, compared with $7.814 billion at June 30, 2010 and an increase of $212.772 million or 2.9% (5.7% annualized) compared with $7.455 billion at December 31, 2010. Linked quarter deposits decreased $148.692 million or 1.9% from $7.816 billion at March 31, 2011.
At June 30, 2011, construction loans totaled $483.581 million, consisting of approximately $125 million of single family residential construction loans; $46 million of land development loans; $70 million of raw land loans; $86 million of residential lot loans; $54 million of commercial lot loans; and $101 million of commercial construction and other construction loans. This is a decrease of $31.212 million from construction loans at March 31, 2011.
The table below provides detail on loans acquired and deposits assumed in the U.S. Bank and First Bank transactions completed in the first and second quarters of 2010:
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Balance Sheet Data (at period end) | June 30, 2011 | Mar 31, 2011 | June 30, 2010 | |
(In thousands) | (Unaudited) | (Unaudited) | (Unaudited) | |
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Loans: |
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Acquired with U.S. Bank branches | $ 39,385 | $ 36,819 | $ 30,641 | |
Acquired with First Bank branches | 64,413 | 60,308 | 88,039 | |
All other | 3,561,450 | 3,475,793 | 3,306,360 | |
Total Loans | $ 3,665,248 | $ 3,572,920 | $ 3,425,040 | |
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Deposits: |
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Assumed with U.S. Bank branches | $ 265,093 | $ 273,769 | $ 350,890 | |
Assumed with First Bank branches | 312,547 | 322,044 | 454,686 | |
All other | 7,090,052 | 7,220,571 | 7,008,353 | |
Total Deposits | $ 7,667,692 | $ 7,816,384 | $ 7,813,929 | |
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At June 30, 2011, Prosperity had $9.657 billion in total assets, $3.665 billion in loans and $7.668 billion in deposits. Assets and loans at June 30, 2011 increased 0.5% and 7.0%, respectively, compared with June 30, 2010 and deposits decreased 1.9% compared with June 30, 2010.
Results of operations for the six months ended June 30, 2011
For the six months ended June 30, 2011, net income was $68.970 million compared with $62.744 million for the same period in 2010. Net income per diluted common share was $1.47 for the six months ended June 30, 2011 compared with $1.34 for the same period in 2010. Returns on average assets, average common equity and average tangible common equity for the six months ended June 30, 2011 were 1.43%, 9.29% and 25.88%, respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale of securities and assets) was 43.94% for the six months ended June 30, 2011.
Net interest income before provision for credit losses for the six months ended June 30, 2011 increased $5.671 million or 3.6%, to $164.043 million compared with $158.372 million during the same period in 2010. The increase was attributable primarily to a 5.2% increase in average earning assets.
Non-interest income increased $1.123 million or 4.3% to $27.397 million for the six months ended June 30, 2011 compared with $26.274 million for the same period in 2010. The increase was mainly attributable to a decrease in net loss on the sale of other real estate.
Non-interest expense increased $1.435 million or 1.7% to $84.209 million for the six months ended June 30, 2011 compared with $82.774 million for the same period in 2010. The increase was primarily attributable to an increase in salaries and benefits expense partially offset by a reduction in other expenses.
Asset Quality
Non-performing assets totaled $12.680 million or 0.15% of quarterly average earning assets at June 30, 2011 compared with $21.856 million or 0.27% of quarterly average earning assets at June 30, 2010, and $12.888 million or 0.16% of average earnings assets at March 31, 2011. The allowance for credit losses was 1.42% of total loans at June 30, 2011 compared with 1.54% at June 30, 2010 and 1.45% of total loans at March 31, 2011.
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Non-performing assets (Dollars in thousands) | June 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | |
| Amount | # | Amount | # | Amount | # | |
Commercial | $ 875 | 15 | $ 861 | 12 | $ 1,317 | 17 | |
Construction | 4,692 | 26 | 6,511 | 37 | 8,469 | 46 | |
1-4 family (including home equity) | 2,875 | 32 | 3,130 | 25 | 3,933 | 38 | |
Commercial real estate (including multi-family) | 4,151 | 18 | 2,299 | 7 | 2,022 | 6 | |
Agriculture and agriculture real estate | 51 | 3 | 17 | 2 | 11 | 1 | |
Consumer | 36 | 3 | 70 | 9 | 90 | 13 | |
Total | $ 12,680 | 97 | $ 12,888 | 92 | $ 15,842 | 121 | |
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Net Charge-offs (Dollars in thousands) | Three Months Ended June 30, 2011 | Three Months Ended Mar 31, 2011 | Three Months Ended Dec 31, 2010 | |
Commercial | $ 271 | $ 216 | $ 855 | |
Construction | 455 | 697 | 1,014 | |
1-4 family (including home equity) | 157 | 226 | 314 | |
Commercial RE (including multi-family) | 177 | 320 | 285 | |
Agriculture | -- | (1) | -- | |
Consumer | 169 | 66 | 202 | |
Total | $ 1,229 | $ 1,524 | $ 2,670 | |
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The provision for credit losses was $1.400 million for the three months ended June 30, 2011 compared to $3.275 million for the three months ended June 30, 2010. Net charge offs were $1.229 million for the three months ended June 30, 2011 compared to $2.440 million for the three months ended June 30, 2010.
The provision for credit losses was $3.100 million for the six months ended June 30, 2011 compared to $7.685 million for the six months ended June 30, 2010. Net charge offs were $2.753 million for the six months ended June 30, 2011 compared to $6.821 million for the six months ended June 30, 2010.
Conference Call
Prosperity's management team will host a conference call on Friday, July 22, 2011 at 10:30 a.m. Eastern Daylight Time (9:30 a.m. Central Daylight Time) to discuss Prosperity's second quarter earnings. Individuals and investment professionals may participate in the call by dialing 800-862-9098, 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 Home page under News and Events.
Prosperity Bancshares, Inc.®
Prosperity Bancshares, Inc.®, a $9.7 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 seventy five (175) full service banking locations; sixty (60) in the Houston area; twenty (20) in the South Texas area including Corpus Christi and Victoria; thirty-one (31) in the Dallas/Fort Worth area; twenty-one (21) in the East Texas area; thirty-three (33) in the Central Texas area including Austin and San Antonio; and ten (10) in the Bryan/College Station area.
Bryan/College Station Area - | Dallas/Fort Worth Area - | Jacksonville | Bay City | |
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| Kerens | Beaumont | |
Bryan | Dallas - | Longview | Cinco Ranch | |
Bryan-East | Abrams Centre | Mount Vernon | Cleveland | |
Bryan-North | Balch Springs | Palestine | East Bernard | |
Caldwell | Camp Wisdom | Rusk | El Campo | |
College Station | Cedar Hill | Seven Points | Dayton | |
Greens Prairie | Central Expressway | Teague | Galveston | |
Madisonville | East Renner | Tyler | Groves | |
Navasota | Frisco | Tyler-University | Hempstead | |
Rock Prairie | Frisco-West | Winnsboro | Hitchcock | |
Wellborn Road | Independence |
| Katy | |
| Kiest |
| Liberty | |
Central Texas Area - | McKinney | Houston Area - | Magnolia | |
| McKinney-Stonebridge |
| Mont Belvieu | |
Austin - | Midway | Houston - | Nederland | |
183 | Preston Forest | Aldine | Needville | |
Allandale | Preston Road | Allen Parkway | Shadow Creek | |
Cedar Park | Red Oak | Bellaire | Sweeny | |
Congress | Sachse | Beltway | Tomball | |
Lakeway | The Colony | Clear Lake | Waller | |
Liberty Hill | Turtle Creek | Copperfield | West Columbia | |
Northland | Westmoreland | Cypress | Wharton | |
Oak Hill |
| Downtown | Winnie | |
Parmer Lane |
| Eastex | Wirt | |
Research Blvd | Fort Worth - | Fairfield |
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West Lake | Haltom City | First Colony |
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| Keller | Gessner | South Texas Area - | |
| Roanoke | Gladebrook |
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Other Central Texas Locations - | Stockyards | Harrisburg | Corpus Christi - | |
Bastrop |
| Heights | Airline | |
Cuero |
| Highway 6 West | Carmel | |
Dime Box | Other Dallas/Fort Worth Locations - | Hillcroft | Northwest | |
Dripping Springs | Azle | Little York | Saratoga | |
Elgin | Ennis | Medical Center | Water Street | |
Flatonia | Gainesville | Memorial Drive |
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Georgetown | Mesquite | Northside | Other South Texas | |
Gonzales | Muenster | Pasadena | Locations - | |
Hallettsville | Sanger | Pecan Grove | Alice | |
Kingsland | Waxahachie | Piney Point | Aransas Pass | |
La Grange |
| River Oaks | Beeville | |
Lexington |
| Royal Oaks | Edna | |
New Braunfels | East Texas Area - | Sugar Land | Goliad | |
Pleasanton | Athens | SW Medical Center | Kingsville | |
Round Rock | Athens-South | Tanglewood | Mathis | |
San Antonio | Blooming Grove | Uptown | Palacios | |
Schulenburg | Canton | Waugh Drive | Port Aransas | |
Seguin | Carthage | West University | Port Lavaca | |
Smithville | Corsicana | Westheimer | Portland | |
Weimar | Crockett | Woodcreek | Rockport | |
Yoakum | Eustace |
| Sinton | |
Yorktown | Grapeland | Other Houston Area | Victoria | |
| Gun Barrel City | Locations - | Victoria-North | |
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| Angleton |
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"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, 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, that 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, 2010 and other reports and statements Prosperity has filed with the SEC. Copies of the SEC filings for Prosperity Bancshares'® 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)
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| Three Months Ended | |
| June 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sept 30, 2010 | |
Selected Earnings and Per | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Share Data |
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Total interest income | $ 95,652 | $ 93,409 | $ 92,436 | $ 96,247 | |
Total interest expense | 12,022 | 12,996 | 12,927 | 15,980 | |
Net interest income | 83,630 | 80,413 | 79,509 | 80,267 | |
Provision for credit losses | 1,400 | 1,700 | 2,900 | 3,000 | |
Net interest income after |
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provision for credit losses | 82,230 | 78,713 | 76,609 | 77,267 | |
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Total non-interest income | 13,530 | 13,867 | 13,905 | 13,654 | |
Total non-interest expense | 42,514 | 41,695 | 41,227 | 42,593 | |
Net income before taxes | 53,246 | 50,885 | 49,287 | 48,328 | |
Federal income taxes | 18,154 | 17,007 | 16,489 | 16,162 | |
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Net income | $ 35,092 | $ 33,878 | $ 32,798 | $ 32,166 | |
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Basic earnings per share | $0.75 | $0.72 | $0.70 | $0.69 | |
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Diluted earnings per share | $0.75 | $0.72 | $0.70 | $0.69 | |
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Period end shares outstanding | 46,888 | 46,782 | 46,684 | 46,653 | |
Weighted average shares |
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outstanding (basic) | 46,864 | 46,733 | 46,671 | 46,640 | |
Weighted average shares |
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outstanding (diluted) | 47,057 | 46,942 | 46,818 | 46,774 | |
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Prosperity Bancshares, Inc. ® Financial Highlights (Dollars in thousands)
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| Three Months Ended | Six Months Ended | |
| June 30, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | |
Balance Sheet Averages | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
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Total loans | $ 3,631,256 | $ 3,404,127 | $ 3,574,207 | $ 3,373,654 | |
Investment securities | 4,707,217 | 4,642,246 | 4,692,639 | 4,411,177 | |
Federal funds sold and other |
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other temporary investments | 13,218 | 109,027 | 13,200 | 84,916 | |
Total earning assets | 8,351,691 | 8,155,400 | 8,280,046 | 7,869,747 | |
Allowance for credit losses | (51,861) | (52,726) | (51,780) | (52,240) | |
Cash and due from banks | 125,150 | 126,601 | 131,445 | 130,549 | |
Goodwill | 924,537 | 906,269 | 924,475 | 892,145 | |
Core Deposit Intangibles (CDI) | 25,728 | 33,977 | 26,714 | 34,089 | |
Other real estate | 9,743 | 16,010 | 11,236 | 14,500 | |
Fixed assets, net | 159,919 | 164,646 | 159,592 | 156,799 | |
Other assets | 133,661 | 140,040 | 134,423 | 141,317 | |
Total assets | $ 9,678,568 | $ 9,490,217 | $ 9,616,151 | $ 9,186,906 | |
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Non-interest bearing deposits | $ 1,770,664 | $ 1,583,010 | $ 1,721,967 | $ 1,514,877 | |
Interest bearing deposits | 5,981,826 | 6,229,362 | 6,003,693 | 6,019,520 | |
Total deposits | 7,752,490 | 7,812,372 | 7,725,660 | 7,534,397 | |
Securities sold under |
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repurchase agreements | 68,413 | 83,092 | 60,058 | 77,204 | |
Federal funds purchased and |
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other borrowings | 218,310 | 44,477 | 205,201 | 38,312 | |
Junior subordinated |
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debentures | 85,055 | 92,265 | 88,059 | 92,265 | |
Other liabilities | 54,915 | 65,518 | 52,956 | 64,726 | |
Shareholders' equity(A) | 1,499,385 | 1,392,493 | 1,484,217 | 1,380,002 | |
Total liabilities and equity | $ 9,678,568 | $ 9,490,217 | $ 9,616,151 | $ 9,186,906 | |
(A) Includes $14,337 and $17,197 in after tax unrealized gains on available for sale securities for the three month periods ending June 30, 2011 and June 30, 2010, respectively, and $14,243 and $17,427 for the six months ending June 30, 2011 and June 30, 2010, respectively. | |
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Prosperity Bancshares, Inc. ® Financial Highlights (Dollars in thousands)
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| Three Months Ended | Six Months Ended | |
| June 30, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | |
Income Statement Data | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
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Interest on loans | $ 53,703 | $ 52,681 | $ 105,903 | $ 104,134 | |
Interest on securities | 41,919 | 46,603 | 83,123 | 91,617 | |
Interest on federal funds sold |
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and other temporary |
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investments | 30 | 74 | 35 | 103 | |
Total interest income | 95,652 | 99,358 | 189,061 | 195,854 | |
Interest expense - deposits | 11,064 | 17,573 | 22,576 | 35,058 | |
Interest expense - debentures | 598 | 799 | 1,745 | 1,590 | |
Interest expense - other | 360 | 386 | 697 | 834 | |
Total interest expense | 12,022 | 18,758 | 25,018 | 37,482 | |
Net interest income (B) | 83,630 | 80,600 | 164,043 | 158,372 | |
Provision for credit losses | 1,400 | 3,275 | 3,100 | 7,685 | |
Net interest income after |
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provision for credit losses | 82,230 | 77,325 | 160,943 | 150,687 | |
Non-sufficient funds (NSF) fees | 6,226 | 6,917 | 12,333 | 13,402 | |
Debit card and ATM card income | 3,809 | 3,201 | 7,261 | 5,928 | |
Service charges on deposit accounts | 2,511 | 2,562 | 4,994 | 4,939 | |
Net gain on sale of assets | 195 | 399 | 360 | 399 | |
Net loss on sale of ORE | (366) | (1,689) | (526) | (1,983) | |
Net loss on sale of securities | (581) | -- | (581) | -- | |
Other non-interest income | 1,736 | 1,906 | 3,556 | 3,589 | |
Total non-interest income | 13,530 | 13,296 | 27,397 | 26,274 | |
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Salaries and benefits (C) | 23,994 | 22,431 | 47,198 | 43,543 | |
CDI amortization | 1,943 | 2,280 | 3,977 | 4,570 | |
Net occupancy and equipment | 3,547 | 3,708 | 7,195 | 7,142 | |
Depreciation | 2,037 | 2,147 | 4,058 | 4,153 | |
Data processing |
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and software amortization | 1,780 | 1,742 | 3,452 | 3,157 | |
Regulatory assessments and FDIC insurance | 2,894 | 2,801 | 5,895 | 5,410 | |
Other non-interest expense | 6,319 | 7,940 | 12,434 | 14,799 | |
Total non-interest expense | 42,514 | 43,049 | 84,209 | 82,774 | |
Net income before taxes | 53,246 | 47,572 | 104,131 | 94,187 | |
Federal income taxes | 18,154 | 15,826 | 35,161 | 31,443 | |
Net income available |
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to common shareholders | $ 35,092 | $ 31,746 | $ 68,970 | $ 62,744 | |
(B) Net interest income on a tax equivalent basis would be $84,603 and $81,332 for the three months ended June 30, 2011 and June 30, 2010, respectively, and $165,905 and $159,797 for the six months ended June 30, 2011 and June 30, 2010, respectively.
(C) Salaries and benefits includes stock-based compensation expense of $936 and $692 for the three months ended June 30, 2011 and June 30, 2010, respectively, and $1,643 and $1,486 for the six months ended June 30, 2011 and June 30, 2010, respectively. | |
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Prosperity Bancshares, Inc.® Financial Highlights (Dollars and share amounts in thousands, except per share data)
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| Three Months Ended | Six Months Ended | |
| June 30, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | |
Common Share and | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Other Data |
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Employees - FTE | 1,675 | 1,753 | 1,675 | 1,753 | |
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Book value per share | $ 32.24 | $ 30.12 | $ 32.24 | $ 30.12 | |
Tangible book value per share | $ 11.99 | $ 9.64 | $ 11.99 | $ 9.64 | |
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Period end shares outstanding | 46,888 | 46,622 | 46,888 | 46,622 | |
Weighted average shares |
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outstanding (basic) | 46,864 | 46,610 | 46,799 | 46,581 | |
Weighted average shares |
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outstanding (diluted) | 47,057 | 46,854 | 47,001 | 46,857 | |
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Non-performing Assets (at period end) |
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Non-accrual loans | $ 3,518 | $ 3,302 | $ 3,518 | $ 3,302 | |
Accruing loans 90 or more |
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days past due | 306 | 5,761 | 306 | 5,761 | |
Restructured loans | 0 | 0 | 0 | 0 | |
Total non-performing loans | 3,824 | 9,063 | 3,824 | 9,063 | |
Repossessed assets | 15 | 273 | 15 | 273 | |
Other real estate | 8,841 | 12,520 | 8,841 | 12,520 | |
Total non-performing assets | $ 12,680 | $ 21,856 | $ 12,680 | $ 21,856 | |
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Allowance for credit losses at |
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end of period | $ 51,932 | $ 52,727 | $ 51,932 | $ 52,727 | |
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|
|
|
| |
Net charge-offs | $ 1,229 | $ 2,440 | $ 2,753 | $ 6,821 | |
|
|
|
|
| |
Basic earnings per share | $ 0.75 | $ 0.68 | $ 1.47 | $ 1.35 | |
|
|
|
|
| |
Diluted earnings per share | $ 0.75 | $ 0.68 | $ 1.47 | $ 1.34 | |
| |
| | | | |
Prosperity Bancshares, Inc.® Financial Highlights
| |
| Three Months Ended | Six Months Ended | |
| June 30, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | |
Performance Ratios | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
|
|
|
|
| |
Return on average |
|
|
|
| |
assets (annualized) | 1.45% | 1.34% | 1.43% | 1.37% | |
Return on average common |
|
|
|
| |
equity (annualized) | 9.36% | 9.12% | 9.29% | 9.09% | |
Return on average tangible |
|
|
|
| |
common equity (annualized) | 25.56% | 28.08% | 25.88% | 27.65% | |
Net interest margin (D) |
|
|
|
| |
(tax equivalent) (annualized) | 4.06% | 4.00% | 4.04% | 4.09% | |
|
|
|
|
| |
Efficiency ratio(E) | 43.58% | 46.04% | 43.94% | 44.93% | |
|
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|
| |
Asset Quality Ratios |
|
|
|
| |
|
|
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|
| |
Non-performing assets to |
|
|
|
| |
average earning assets | 0.15% | 0.27% | 0.15% | 0.28% | |
Non-performing assets to loans |
|
|
|
| |
and other real estate | 0.35% | 0.64% | 0.35% | 0.64% | |
Net charge-offs |
|
|
|
| |
to average loans | 0.03% | 0.07% | 0.08% | 0.20% | |
Allowance for credit losses to |
|
|
|
| |
total loans | 1.42% | 1.54% | 1.42% | 1.54% | |
|
|
|
|
| |
Common Stock Market Price |
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|
|
| |
|
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| |
High | $46.75 | $43.66 | $46.75 | $43.66 | |
|
|
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| |
Low | $40.83 | $34.31 | $38.23 | $34.31 | |
|
|
|
|
| |
Period end market price | $43.82 | $34.75 | $43.82 | $34.75 | |
(D) Net interest margin for all periods presented is calculated on an actual 365 day basis.
(E) The efficiency ratio is calculated by dividing total non-interest expense (excluding provision for credit losses) by net interest income plus non-interest income (excluding net gains and losses on the sale of securities and assets). Additionally, taxes are not part of this calculation. | |
| | | | |
Prosperity Bancshares, Inc.® Financial Highlights (Dollars in thousands)
| |
| June 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sept 30, 2010 | June 30, 2010 | |
Loan Portfolio | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
|
|
|
|
|
|
|
|
|
|
| |
Commercial | $ 455,791 | 12.4% | $ 460,066 | 12.9% | $ 440,480 | 12.6% | $ 419,539 | 12.3% | $ 440,274 | 12.9% | |
Construction | 483,581 | 13.2% | 494,159 | 13.8% | 502,327 | 14.4% | 498,400 | 14.6% | 514,793 | 15.0% | |
1-4 family residential | 941,250 | 25.7% | 882,807 | 24.7% | 824,057 | 23.7% | 789,859 | 23.1% | 758,670 | 22.2% | |
Home equity | 131,213 | 3.6% | 123,696 | 3.4% | 118,781 | 3.4% | 114,846 | 3.4% | 116,071 | 3.4% | |
Commercial real estate | 1,411,501 | 38.5% | 1,385,031 | 38.8% | 1,370,649 | 39.3% | 1,357,046 | 39.8% | 1,349,834 | 39.4% | |
Agriculture | 160,780 | 4.4% | 144,535 | 4.1% | 140,752 | 4.1% | 143,917 | 4.2% | 148,770 | 4.3% | |
Consumer | 81,132 | 2.2% | 82,626 | 2.3% | 87,977 | 2.5% | 90,212 | 2.6% | 96,628 | 2.8% | |
Total Loans | $3,665,248 |
| $3,572,920 |
| $3,485,023 |
| $ 3,413,819 |
| $ 3,425,040 |
| |
|
|
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|
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|
| |
Deposit Types |
|
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| |
|
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|
|
|
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|
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| |
Non-interest bearing DDA | $1,788,756 | 23.3% | $1,730,427 | 22.2% | $1,673,190 | 22.4% | $ 1,623,078 | 21.7% | $ 1,576,727 | 20.2% | |
Interest bearing DDA | 1,358,649 | 17.7% | 1,432,766 | 18.3% | 1,412,337 | 19.0% | 1,278,564 | 17.1% | 1,359,041 | 17.4% | |
Money Market | 1,878,679 | 24.5% | 2,014,674 | 25.8% | 1,748,344 | 23.5% | 1,799,923 | 24.0% | 1,901,149 | 24.3% | |
Savings | 471,082 | 6.1% | 454,649 | 5.8% | 423,026 | 5.6% | 402,707 | 5.4% | 385,376 | 4.9% | |
Time < $100 | 1,037,492 | 13.6% | 1,072,343 | 13.7% | 1,119,336 | 15.0% | 1,224,226 | 16.3% | 1,316,602 | 16.9% | |
Time > $100 | 1,133,034 | 14.8% | 1,111,525 | 14.2% | 1,078,687 | 14.5% | 1,163,082 | 15.5% | 1,275,034 | 16.3% | |
Total Deposits | $7,667,692 |
| $7,816,384 |
| $7,454,920 |
| $ 7,491,580 |
| $ 7,813,929 |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Loan to Deposit Ratio | 47.8% |
| 45.7% |
| 46.7% |
| 45.6% |
| 43.8% |
| |
|
|
|
|
|
|
|
|
|
|
| |
Construction Loans |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Single family residential construction | $ 124,995 | 25.8% | $ 112,175 | 22.7% | $ 118,207 | 23.5% | $ 127,325 | 25.6% | $ 136,126 | 26.5% | |
Land development | 46,405 | 9.6% | 50,600 | 10.2% | 52,773 | 10.5% | 55,902 | 11.2% | 74,570 | 14.5% | |
Raw land | 69,769 | 14.4% | 70,074 | 14.2% | 64,524 | 12.9% | 67,108 | 13.4% | 68,112 | 13.2% | |
Residential lots | 86,515 | 17.9% | 86,359 | 17.5% | 88,648 | 17.6% | 88,611 | 17.8% | 93,764 | 18.2% | |
Commercial lots | 54,419 | 11.3% | 50,543 | 10.2% | 52,183 | 10.4% | 48,346 | 9.7% | 49,341 | 9.6% | |
Commercial construction and other | 101,478 | 21.0% | 124,408 | 25.2% | 125,992 | 25.1% | 111,108 | 22.3% | 92,879 | 18.0% | |
Total Construction Loans | $ 483,581 |
| $ 494,159 |
| $ 502,327 |
| $ 498,400 |
| $ 514,793 |
| |
| |
| | | | | | | | | | |
Prosperity Bancshares, Inc.® Financial Highlights (Dollars in thousands)
| |
| June 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sept 30, 2010 | June 30, 2010 | |
Balance Sheet Data (at period end) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
|
|
|
|
|
| |
Total loans | $ 3,665,248 | $ 3,572,920 | $ 3,485,023 | $ 3,413,819 | $ 3,425,040 | |
Investment securities (F) | 4,641,664 | 4,798,642 | 4,617,116 | 4,472,639 | 4,817,847 | |
Federal funds sold | 350 | 517 | 393 | 553 | 823 | |
Allowance for credit losses | (51,932) | (51,760) | (51,584) | (51,354) | (52,727) | |
Cash and due from banks | 145,910 | 145,521 | 158,975 | 140,678 | 148,395 | |
Goodwill | 924,537 | 924,537 | 924,258 | 923,933 | 921,484 | |
Core deposit intangibles | 24,799 | 26,742 | 28,776 | 30,948 | 33,389 | |
Other real estate | 8,841 | 10,465 | 11,053 | 11,233 | 12,520 | |
Fixed assets, net | 160,119 | 159,050 | 159,053 | 159,717 | 161,267 | |
Other assets | 137,611 | 136,313 | 143,509 | 136,336 | 140,784 | |
Total assets | $ 9,657,147 | $ 9,722,947 | $ 9,476,572 | $ 9,238,502 | $ 9,608,822 | |
|
|
|
|
|
| |
Demand deposits | $ 1,788,756 | $ 1,730,427 | $ 1,673,190 | $ 1,623,078 | $ 1,576,727 | |
Interest bearing deposits | 5,878,936 | 6,085,957 | 5,781,730 | 5,868,502 | 6,237,202 | |
Total deposits | 7,667,692 | 7,816,384 | 7,454,920 | 7,491,580 | 7,813,929 | |
Securities sold under |
|
|
|
|
| |
repurchase agreements | 91,288 | 51,847 | 60,659 | 96,416 | 93,060 | |
Federal funds purchased and |
|
|
|
|
| |
other borrowings | 248,839 | 228,092 | 374,433 | 71,686 | 154,935 | |
Junior subordinated |
|
|
|
|
| |
debentures | 85,055 | 85,055 | 92,265 | 92,265 | 92,265 | |
Other liabilities | 52,625 | 61,071 | 41,956 | 56,985 | 50,499 | |
Total liabilities | 8,145,499 | 8,242,449 | 8,024,233 | 7,808,932 | 8,204,688 | |
Shareholders' equity (G) | 1,511,648 | 1,480,498 | 1,452,339 | 1,429,570 | 1,404,134 | |
Total liabilities and equity | $ 9,657,147 | $ 9,722,947 | $ 9,476,572 | $ 9,238,502 | $ 9,608,822 | |
|
|
|
|
|
| |
(F) Includes $23,647, $28,028, $27,710, $25,855 and $26,688 in unrealized gains on available for sale securities for the quarterly periods ending June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively. | |
| |
(G) Includes $15,371, $18,218, $18,011, $16,806 and $17,347 in after-tax unrealized gains on available for sale securities for the quarterly periods ending June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively. | |
| |
| | | | | |
Prosperity Bancshares, Inc.® Financial Highlights (Dollars in thousands)
| |
| Three Months Ended | |
| June 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sept 30, 2010 | June 30, 2010 | |
Income Statement Data | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
|
|
|
|
|
| |
Interest on loans | $ 53,703 | $ 52,200 | $ 52,722 | $ 52,855 | $ 52,681 | |
Interest on securities | 41,919 | 41,204 | 39,708 | 43,382 | 46,603 | |
Interest on federal funds |
|
|
|
|
| |
sold and other earning |
|
|
|
|
| |
assets | 30 | 5 | 6 | 10 | 74 | |
Total interest income | 95,652 | 93,409 | 92,436 | 96,247 | 99,358 | |
Interest expense - deposits | 11,064 | 11,512 | 11,749 | 14,702 | 17,573 | |
Interest expense - debentures | 598 | 1,147 | 803 | 857 | 799 | |
Interest expense - other | 360 | 337 | 375 | 421 | 386 | |
Total interest expense | 12,022 | 12,996 | 12,927 | 15,980 | 18,758 | |
Net interest income | 83,630 | 80,413 | 79,509 | 80,267 | 80,600 | |
Provision for credit losses | 1,400 | 1,700 | 2,900 | 3,000 | 3,275 | |
Net interest income after |
|
|
|
|
| |
provision for credit losses | 82,230 | 78,713 | 76,609 | 77,267 | 77,325 | |
Non-sufficient funds (NSF) fees | 6,226 | 6,107 | 6,905 | 7,274 | 6,917 | |
Debit card and ATM card income | 3,809 | 3,452 | 3,261 | 3,393 | 3,201 | |
Service charges on deposit accounts | 2,511 | 2,483 | 2,614 | 2,534 | 2,562 | |
Net gain on sale of assets | 195 | 165 | 2 | 1 | 399 | |
Net loss on sale of ORE | (366) | (160) | (915) | (1,364) | (1,689) | |
Net loss on sale of securities | (581) | -- | -- | -- | -- | |
Other non-interest income | 1,736 | 1,820 | 2,038 | 1,816 | 1,906 | |
Total non-interest income | 13,530 | 13,867 | 13,905 | 13,654 | 13,296 | |
Salaries and benefits | 23,994 | 23,204 | 21,421 | 22,016 | 22,431 | |
CDI amortization | 1,943 | 2,034 | 2,172 | 2,274 | 2,280 | |
Net occupancy and equipment | 3,547 | 3,648 | 3,975 | 4,036 | 3,708 | |
Depreciation | 2,037 | 2,021 | 1,999 | 2,161 | 2,147 | |
Data processing and |
|
|
|
|
| |
software amortization | 1,780 | 1,672 | 1,515 | 1,550 | 1,742 | |
Regulatory assessments and FDIC insurance | 2,894 | 3,001 | 2,812 | 2,817 | 2,801 | |
Other non-interest expense | 6,319 | 6,115 | 7,333 | 7,739 | 7,940 | |
Total non-interest expense | 42,514 | 41,695 | 41,227 | 42,593 | 43,049 | |
Net income before taxes | 53,246 | 50,885 | 49,287 | 48,328 | 47,572 | |
Federal income taxes | 18,154 | 17,007 | 16,489 | 16,162 | 15,826 | |
Net income available |
|
|
|
|
| |
to common shareholders | $ 35,092 | $ 33,878 | $ 32,798 | $ 32,166 | $ 31,746 | |
| |
| |
| | | | | |
Prosperity Bancshares, Inc.® Financial Highlights
| |
Comparative Quarterly | Three Months Ended | |
Asset Quality, Performance | June 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sept 30, 2010 | June 30, 2010 | |
& Capital Ratios | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Return on average |
|
|
|
|
| |
assets (annualized) | 1.45% | 1.42% | 1.41% | 1.36% | 1.34% | |
Return on average common |
|
|
|
|
| |
equity (annualized) | 9.36% | 9.22% | 9.08% | 9.06% | 9.12% | |
Return on average tangible |
|
|
|
|
| |
equity (annualized) | 25.56% | 26.22% | 26.70% | 27.62% | 28.08% | |
Net interest margin |
|
|
|
|
| |
(tax equivalent) (annualized) | 4.06% | 4.02% | 3.99% | 3.97% | 4.00% | |
|
|
|
|
|
| |
Employees - FTE | 1,675 | 1,672 | 1,708 | 1,719 | 1,753 | |
|
|
|
|
|
| |
Efficiency ratio | 43.58% | 44.30% | 44.13% | 45.35% | 46.04% | |
Non-performing assets to |
|
|
|
|
| |
average earning assets | 0.15% | 0.16% | 0.20% | 0.26% | 0.27% | |
Non-performing assets to loans |
|
|
|
|
| |
and other real estate | 0.35% | 0.36% | 0.45% | 0.60% | 0.64% | |
Net charge-offs to |
|
|
|
|
| |
average loans | 0.03% | 0.04% | 0.08% | 0.13% | 0.07% | |
Allowance for credit losses to |
|
|
|
|
| |
total loans | 1.42% | 1.45% | 1.48% | 1.50% | 1.54% | |
|
|
|
|
|
| |
Book value per share | $32.24 | $31.65 | $31.11 | $30.64 | $30.12 | |
|
|
|
|
|
| |
Tangible book value per share | $11.99 | $11.31 | $10.70 | $10.17 | $9.64 | |
|
|
|
|
|
| |
Tier 1 risk-based capital | 14.72% | 14.00% | 13.64% | 13.23% | 12.31% | |
|
|
|
|
|
| |
Total risk-based capital | 15.93% | 15.21% | 14.87% | 14.47% | 13.56% | |
|
|
|
|
|
| |
Tier 1 leverage capital | 7.24% | 6.97% | 6.87% | 6.45% | 6.10% | |
|
|
|
|
|
| |
Tangible equity to tangible |
|
|
|
|
| |
assets | 6.46% | 6.03% | 5.86% | 5.73% | 5.19% | |
|
|
|
|
|
| |
Equity to assets | 15.65% | 15.23% | 15.33% | 15.47% | 14.61% | |
|
|
|
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| |
| |
| | | | | |
Prosperity Bancshares, Inc.® Supplemental Financial Data (Unaudited) (Dollars in thousands)
| |
| Three Months Ended June 30, 2011 | Three Months Ended June 30, 2010 | |
YIELD ANALYSIS | Average | Interest Earned | Average | Average | Interest Earned | Average | |
| Balance | / Interest Paid | Yield/Rate | Balance | / Interest Paid | Yield/Rate | |
|
|
|
|
|
|
| |
Interest Earning Assets: |
|
|
|
|
|
| |
Loans | $ 3,631,256 | $ 53,703 | 5.93% | $ 3,404,127 | $ 52,681 | 6.21% | |
Investment securities | 4,707,217 | 41,919 | 3.56% | 4,642,246 | 46,603 | 4.02% | |
Federal funds sold and other |
|
|
|
|
|
| |
earning assets | 13,218 | 30 | 0.91% | 109,027 | 74 | 0.27% | |
Total interest earning assets | 8,351,691 | $ 95,652 | 4.59% | 8,155,400 | $ 99,358 | 4.89% | |
Allowance for credit losses | (51,861) |
|
| (52,726) |
|
| |
Non-interest earning assets | 1,378,738 |
|
| 1,387,543 |
|
| |
Total assets | $ 9,678,568 |
|
| $ 9,490,217 |
|
| |
|
|
|
|
|
|
| |
Interest Bearing Liabilities: |
|
|
|
|
|
| |
Interest bearing demand deposits | $ 1,403,331 | $ 2,061 | 0.59% | $ 1,381,215 | $ 2,517 | 0.73% | |
Savings and money market deposits | 2,403,330 | 3,348 | 0.56% | 2,248,950 | 4,292 | 0.77% | |
Certificates and other time deposits | 2,175,165 | 5,655 | 1.04% | 2,599,197 | 10,764 | 1.66% | |
Securities sold under repurchase agreements | 68,413 | 110 | 0.64% | 83,092 | 175 | 0.84% | |
Federal funds purchased and other borrowings | 218,310 | 250 | 0.46% | 44,477 | 211 | 1.90% | |
Junior subordinated debentures | 85,055 | 598 | 2.82% | 92,265 | 799 | 3.47% | |
Total interest bearing liabilities | $ 6,353,604 | $ 12,022 | 0.76% | $ 6,449,196 | $ 18,758 | 1.17% | |
Non-interest bearing liabilities: |
|
|
|
|
|
| |
Non-interest bearing demand deposits | $ 1,770,664 |
|
| $ 1,583,010 |
|
| |
Other liabilities | 54,915 |
|
| 65,518 |
|
| |
Total liabilities | $ 8,179,183 |
|
| $ 8,097,724 |
|
| |
Shareholders' equity | $ 1,499,385 |
|
| $ 1,392,493 |
|
| |
Total liabilities and shareholders' equity | $ 9,678,568 |
|
| $ 9,490,217 |
|
| |
|
|
|
|
|
|
| |
Net Interest Income & Margin |
| $ 83,630 | 4.02% |
| $ 80,600 | 3.96% | |
|
|
|
|
|
|
| |
Net Interest Income & Margin |
|
|
|
|
|
| |
(tax equivalent) |
| $ 84,603 | 4.06% |
| $ 81,332 | 4.00% | |
| |
| | | | | | |
Prosperity Bancshares, Inc.® Supplemental Financial Data (Unaudited) (Dollars in thousands)
| |
| Six Months Ended June 30, 2011 | Six Months Ended June 30, 2010 | |
YIELD ANALYSIS | Average | Interest Earned | Average | Average | Interest Earned | Average | |
| Balance | / Interest Paid | Yield/Rate | Balance | / Interest Paid | Yield/Rate | |
|
|
|
|
|
|
| |
Interest Earning Assets: |
|
|
|
|
|
| |
Loans | $ 3,574,207 | $ 105,903 | 5.98% | $ 3,373,654 | $ 104,134 | 6.22% | |
Investment securities | 4,692,639 | 83,123 | 3.54% | 4,411,177 | 91,617 | 4.15% | |
Federal funds sold and other |
|
|
|
|
|
| |
earning assets | 13,200 | 35 | 0.53% | 84,916 | 103 | 0.24% | |
Total interest earning assets | 8,280,046 | $ 189,061 | 4.60% | 7,869,747 | $ 195,854 | 5.02% | |
Allowance for credit losses | (51,780) |
|
| (52,240) |
|
| |
Non-interest earning assets | 1,387,885 |
|
| 1,369,399 |
|
| |
Total assets | $ 9,616,151 |
|
| $ 9,186,906 |
|
| |
|
|
|
|
|
|
| |
Interest Bearing Liabilities: |
|
|
|
|
|
| |
Interest bearing demand deposits | $ 1,446,008 | $ 4,299 | 0.60% | $ 1,382,751 | $ 5,255 | 0.77% | |
Savings and money market deposits | 2,381,326 | 6,684 | 0.57% | 2,143,678 | 8,312 | 0.78% | |
Certificates and other time deposits | 2,176,359 | 11,593 | 1.07% | 2,493,091 | 21,491 | 1.74% | |
Securities sold under repurchase agreements | 60,058 | 179 | 0.60% | 77,204 | 323 | 0.84% | |
Federal funds purchased and other borrowings | 205,201 | 518 | 0.51% | 38,312 | 511 | 2.69% | |
Junior subordinated debentures | 88,059 | 1,745 | 4.00% | 92,265 | 1,590 | 3.48% | |
Total interest bearing liabilities | $ 6,357,011 | $ 25,018 | 0.79% | $ 6,227,301 | $ 37,482 | 1.21% | |
Non-interest bearing liabilities: |
|
|
|
|
|
| |
Non-interest bearing demand deposits | $ 1,721,967 |
|
| $ 1,514,877 |
|
| |
Other liabilities | 52,956 |
|
| 64,726 |
|
| |
Total liabilities | $ 8,131,934 |
|
| $ 7,806,904 |
|
| |
Shareholders' equity | $ 1,484,217 |
|
| $ 1,380,002 |
|
| |
Total lia bilities and shareholders' equity | $ 9,616,151 |
|
| $ 9,186,906 |
|
| |
|
|
|
|
|
|
| |
Net Interest Income & Margin |
| $ 164,043 | 4.00% |
| $ 158,372 | 4.06% | |
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Net Interest Income & Margin |
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(tax equivalent) |
| $ 165,905 | 4.04% |
| $ 159,797 | 4.09% | |
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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 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 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. 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)
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| Three months ended | |
| Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sept 30, 2010 | June 30, 2010 | |
Return on average tangible common equity: |
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Net income | $ 35,092 | $ 33,878 | $ 32,798 | $ 32,166 | $ 31,746 | |
Average shareholders' equity | 1,499,385 | 1,469,048 | 1,444,847 | 1,419,784 | 1,392,493 | |
Less: Average goodwill and other intangible assets | (950,265) | (952,123) | (953,509) | (953,892) | (940,246) | |
Average tangible shareholders' equity | $ 549,120 | $ 516,925 | $ 491,338 | $ 465,892 | $ 452,247 | |
Return on average tangible common equity (annualized): | 25.56% | 26.22% | 26.70% | 27.62% | 28.08% | |
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Tangible book value per share: |
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Shareholders' equity | $1,511,648 | $1,480,498 | $1,452,339 | $1,429,570 | $1,404,134 | |
Less: Goodwill and other intangible assets | (949,336) | (951,279) | (953,034) | (954,881) | (954,873) | |
Tangible shareholders' equity | $ 562,312 | $ 529,219 | $ 499,305 | $ 474,689 | $ 449,261 | |
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Period end shares outstanding | 46,888 | 46,782 | 46,684 | 46,653 | 46,622 | |
Tangible book value per share: | $ 11.99 | $ 11.31 | $ 10.70 | $ 10.17 | $ 9.64 | |
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Tangible equity to tangible assets ratio: |
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Tangible shareholders' equity | $ 562,312 | $ 529,219 | $ 499,305 | $ 474,689 | $ 449,261 | |
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Total assets | $9,657,147 | $9,722,947 | $9,476,572 | $9,238,502 | $9,608,822 | |
Less: Goodwill and other intangible assets | (949,336) | (951,279) | (953,034) | (954,881) | (954,873) | |
Tangible assets | $8,707,811 | $8,771,668 | $8,523,538 | $8,283,621 | $8,653,949 | |
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Tangible equity to tangible assets ratio: | 6.46% | 6.03% | 5.86% | 5.73% | 5.19% | |
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Prosperity Bancshares, Inc.® Notes to Selected Financial Data (Unaudited) (Dollars in thousands)
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| Six Months Ended | |
| June 30, 2011 | June 30, 2010 | |
Return on average tangible common equity: | |
Net income | $ 68,970 | $ 62,744 | |
Average shareholders' equity | 1,484,217 | 1,380,002 | |
Less: Average goodwill and other intangible assets | (951,189) | (926,234) | |
Average tangible shareholders' equity | $ 533,028 | $ 453,768 | |
Return on average tangible common equity (annualized): | 25.88% | 27.65% | |
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Tangible book value per share: | |
Shareholders' equity | $1,511,648 | $1,404,134 | |
Less: Goodwill and other intangible assets | (949,336) | (954,873) | |
Tangible shareholders' equity | $ 562,312 | $ 449,261 | |
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Period end shares outstanding | 46,888 | 46,622 | |
Tangible book value per share: | $ 11.99 | $ 9.64 | |
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Tangible equity to tangible assets ratio: |
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Tangible shareholders' equity | $ 562,312 | $ 449,261 | |
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Total assets | $9,657,147 | $9,608,822 | |
Less: Goodwill and other intangible assets | (949,336) | (954,873) | |
Tangible assets | $8,707,811 | $8,653,949 | |
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Tangible equity to tangible assets ratio: | 6.46% | 5.19% | |
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CONTACT: Dan Rollins, President and Chief Operating Officer of Prosperity Bancshares, Inc., +1-281-269-7199, dan.rollins@prosperitybanktx.com
