Exhibit 99.1
| | |
| PRESS RELEASE | | For more information contact: |
| |
| Prosperity Bancshares, Inc. | | Dan Rollins |
| Prosperity Bank Plaza | | President and Chief Operating Officer |
| 4295 San Felipe | | 281.269.7199 |
| Houston, Texas 77027 | | dan.rollins@prosperitybanktx.com |
FOR IMMEDIATE RELEASE
PROSPERITY BANCSHARES, INC.®
FOURTH QUARTER
EARNINGS UP 31.5%
| | • | | Record Quarterly Earnings |
| | • | | 4Q 2006 Earnings Per Share Increases 11.1% to $0.50 (diluted) |
| | • | | Full Year EPS increases 9.6% to $1.94 (diluted) |
HOUSTON, January 24, 2007. Prosperity Bancshares, Inc. NASDAQ: (PRSP), the parent company of Prosperity Bank, reported record earnings for the quarter ended December 31, 2006. Net income for the quarter was $16.602 million or $0.50 per diluted common share, an increase in net income of $3.975 million or 31.5%, compared with $12.627 million or $0.45 per diluted common share for the same period in the prior year.
Prosperity completed its acquisition of SNB Bancshares Inc. (SNBT) and its subsidiary Southern National Bank of Texas on April 1, 2006. Prosperity also completed its acquisition of Grapeland Bancshares, Inc. and its subsidiary, First State Bank, on December 1, 2005. The results of operations for these acquisitions have been included in Prosperity’s consolidated financial statements since their respective purchase dates.
“I am proud to announce that 2006 was another year of record earnings,” said David Zalman, Prosperity’s Chairman and Chief Executive Officer. “Despite the effects of the challenging interest rate environment, we have continued to see successful financial results.”
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“During 2006, we completed the acquisition of SNB Bancshares, Inc. and its six banking centers in April. This was our largest acquisition to date. We also announced the merger with Texas United Bancshares, Inc. in July. Upon completion of that acquisition with its four banks and $1.806 billion in assets, we will exceed $6 billion in assets; and establish Prosperity as the second largest Texas based bank in terms of deposits,” continued Zalman.
“We will remain focused on consistent organic growth and strategic acquisitions in an effort to maintain the steady increase in shareholder value for 2007,” concluded Zalman.
“ Our committed team of bankers produced total loan growth of 41.1% over 2005. We also grew deposits by 27.6%,” stated Dan Rollins.
Rollins added, “We are working diligently on completing the acquisition of Texas United Bancshares, Inc. After receiving shareholder approval from Texas United’s and Prosperity’s shareholders in December, we are on schedule to close within the next few weeks. Our merger integration team is planning the system conversion of Texas United’s four subsidiary banks, which will be staggered throughout the first half of the year. We look forward to joining the two teams together, and believe the acquisistion will continue to strengthen our presence across Texas as Real Bankers. With a total of 125 locations, we look forward to a successful 2007 with a strong focus on providing excellent personal service to our customers.”
Results of operations for the three months ended December 31, 2006
For the three months ended December 31, 2006, net income was $16.602 million compared with $12.627 million for the same period in 2005. Net income per diluted common share was $0.50 for the three months ended December 31, 2006 compared with $0.45 for the same period in 2005. Returns on average assets, average common equity and average tangible common equity for the three months ended December 31, 2006 were 1.47%, 10.08% and 31.64%, respectively. Prosperity’s efficiency ratio was 43.03% for the three months ended December 31, 2006.
Net interest income before provisions for credit losses for the quarter ended December 31, 2006 increased 25.4%, to $36.406 million compared with $29.021 million during the same period in 2005. The increase was attributable primarily to an 25.1 % increase in average earning assets.
Non-interest income increased 9.7% to $8.241 million for the three months ended December 31, 2006 compared with $7.515 million for the same period in 2005. The increase was attributable primarily to deposit service charges on the increased number of deposit accounts as a result of the additional banking centers acquired in December 2005 and April 2006. Linked quarter non-interest income decreased $677,000 or 7.6%.
Non-interest expenses increased $1.951 million or 11.3% to $19.192 million for the fourth quarter of 2006 compared with $17.241 million for the fourth quarter of 2005. The increase was attributable primarily to the increased operating costs associated with the additional banking centers acquired as a part of the acquisitions completed in December 2005 and April 2006.
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Loans at December 31, 2006 were $2.177 billion, an increase of $634.4 million, or 41.1%, compared with $1.542 billion at December 31, 2005. As reflected in the table below, linked quarter loan growth for the fourth quarter of 2006 was impacted by the loans acquired as a part of the Grapeland and SNBT mergers. Excluding the loans acquired as a part of the Grapeland and SNBT mergers, linked quarter loan growth was 1.8% on an annualized basis and year to date growth was 7.7%.
Deposits at December 31, 2006 were $3.726 billion, an increase of $805.4 million or 27.6%, compared with $2.920 billion at December 31, 2005. As reflected in the table below, annualized deposit growth for the fourth quarter of 2006 was impacted by the deposits assumed as a part of the Grapeland and SNBT mergers. Excluding deposits assumed as a part of the Grapeland and SNBT mergers, linked quarter deposit growth was 7.8% on an annualized basis and year to date growth was 2.7%.
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Balance Sheet Data (at period end) | | Dec 31, 2006 | | Sept 30, 2006 | | Dec 31, 2005 |
| (In Thousands) | | (Unaudited) | | (Unaudited) | | (Unaudited) |
| | | |
Loans: | | | | | | | | | |
Acquired with First State Grapeland | | $ | 44,169 | | $ | 45,962 | | $ | 44,656 |
Acquired with Southern National Bank | | | 519,314 | | | 562,728 | | | 0 |
All other | | | 1,613,024 | | | 1,605,711 | | | 1,497,469 |
| | | | | | | | | |
Total Loans | | $ | 2,176,507 | | $ | 2,214,401 | | $ | 1,542,125 |
| | | | | | | | | |
Deposits: | | | | | | | | | |
Assumed with First State Grapeland | | $ | 45,713 | | $ | 47,864 | | $ | 47,332 |
Assumed with Southern National Bank | | | 728,467 | | | 650,364 | | | 0 |
All other | | | 2,951,498 | | | 2,894,917 | | | 2,872,986 |
| | | | | | | | | |
Total Deposits | | $ | 3,725,678 | | $ | 3,593,145 | | $ | 2,920,318 |
| | | | | | | | | |
Average loans increased 46.2% or $696.4 million to $2.203 billion for the quarter ended December 31, 2006 compared with $1.507 billion for the same period of 2005. The provision for credit losses was $144,000 for the three months ended December 31, 2006 and $120,000 for the three months ended December 31, 2005.
Non-performing assets totaled $1.120 million or 0.03% of average earning assets at December 31, 2006 compared with $1.408 million or 0.05% of average earning assets at December 31, 2005. At December 31, 2006, the allowance for credit losses was 1.10% of total loans, compared with 1.12% at December 31, 2005.
Results of operations for the twelve months ended December 31, 2006
For the twelve months ended December 31, 2006, net income was $61.725 million compared with
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$47.860 million for the same period in 2005. Net income per diluted common share was $1.94 for the twelve months ended December 31, 2006 compared with $1.77 for the same period in 2005. Returns on average assets, average common equity and average tangible common equity for the twelve months ended December 31, 2006 were 1.44%, 10.24% and 31.53%, respectively. Prosperity’s efficiency ratio was 45.29% for the twelve months ended December 31, 2006.
Net interest income before provision for credit losses for the twelve months ended December 31, 2006 increased 24.6%, to $138.145 million compared with $110.897 million during the same period in 2005. The increase was attributable primarily to a 24.8% increase in average earning assets.
Non-interest income increased 13.2% to $33.982 million for the twelve months ended December 31, 2006 compared with $30.021 million for the same period in 2005. The increase was attributable primarily to deposit service charges on the increased number of deposit accounts as a result of the additional banking centers acquired in December 2005 and April 2006.
Non-interest expenses increased $8.712 million or 12.6% to $77.669 million for the twelve months of 2006 compared with $68.957 million for the same period in 2005. The increase in non-interest expenses was attributable primarily to the increased operating costs associated with the additional banking centers acquired as a part of the acquisitions completed in December 2005 and April 2006.
At December 31, 2006, Prosperity had $4.587 billion in total assets, $2.177 billion in loans, $3.726 billion in deposits, and approximately 215,000 deposit and loan accounts. Assets, loans and deposits at December 31, 2006 grew by 27.9%, 41.1% and 27.6%, respectively, compared with December 31, 2005.
Conference Call
Prosperity’s management team will host a conference call on Wednesday, January 24, 2007 at 10:30 a.m. Eastern Daylight Time (9:30 a.m. Central Daylight Time) to discuss Prosperity’s fourth quarter and year end earnings results, the recently announced acquisition of Texas United Bancshares, Inc., the recently completed acquisition of SNB Bancshares, Inc., business trends and their outlook for 2007. Individuals and investment professionals may participate in the call by dialing 1-800-362-0595, the reference code is PBTX.
Alternatively, individuals may listen to the live webcast of the presentation by visiting Prosperity’s website atwww.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 Grapeland Bancshares, Inc.
On December 1, 2005, Prosperity completed the acquisition of Grapeland Bancshares, Inc. and its Grapeland, Texas-based subsidiary bank, First State Bank. First State Bank operated two (2) offices in Grapeland and Crockett, Texas that now operate as full service banking centers of Prosperity Bank.
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Acquisition of SNB Bancshares, Inc.
On April 1, 2006, Prosperity completed the acquisition of SNB Bancshares, Inc. and its subsidiary, Southern National Bank of Texas, in a stock and cash transaction. Southern National Bank operated five (5) full service offices in the Greater Houston Metropolitan Area, all of which became full service banking centers of Prosperity Bank. In addition, Southern National Bank had a banking center under construction in Katy, Texas that opened as a full service banking center of Prosperity Bank in July 2006.
Acquisition of Texas United Bancshares, Inc.
On July 19, 2006, Prosperity announced the acquisition of Texas United Bancshares, Inc. (TXUI). TXUI operates through four (4) wholly-owned subsidiary banks, State Bank, GNB Financial, n.a., Gateway National Bank and Northwest Bank, each of which offer a complete range of banking services. State Bank is headquartered in La Grange, Texas with 25 full-service banking centers located in central and south central Texas, including Austin and Bryan/College Station. GNB Financial, n.a. is headquartered in Gainesville, Texas with seven (7) full-service banking centers located in Cooke, Denton and Ellis counties, north and south of the Dallas-Fort Worth metroplex. Gateway National Bank is headquartered in Dallas, Texas with six (6) Dallas area full-service banking centers. Northwest Bank is located in Roanoke, Texas with five (5) full-service banking centers located in and around the Dallas-Fort Worth metroplex. As of December 31, 2006, TXUI had, on a consolidated basis, total assets of $1.806 billion, loans of $1.212 billion, deposits of $1.362 billion and shareholders’ equity of $161.9 million.
Prosperity Bancshares, Inc.®
Prosperity Bancshares, Inc.®, a $4.6 billion Houston, Texas - based regional financial holding company, formed in 1983, was named to the Keefe Bruyette & Woods, Inc. 2006 Honor Roll for achieving exceptional earnings per share growth for the past 10 years. Other recent honors include being named to the Sandler O’Neill & Partners 2005 Bank and Thrift Small All Stars, listed inUS Banker’sAugust 2005 Top 100 Publicly Traded Mid-Tier Banks, ranked #2 out of 195 publicly traded companies in the 2005 Stephens, Inc. Bank and Thrift Performance Matrix and listed on theHouston Chronicle’s Houston 100 list.
Operating under a community banking philosophy, Prosperity 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 consumers and small and medium sized businesses. In addition to established banking products, Prosperity offers a complete line of services including: Internet Banking services atwww.prosperitybanktx.com, Retail Brokerage Services, MasterMoney Debit Cards, and 24 hour voice response banking. Prosperity currently operates eighty-eight (88) full service banking locations, thirty-eight (38) in the Houston CMSA; fifteen (15) in the Corpus Christi area; eleven (11) in the Dallas / Fort Worth area; five (5) in the Austin area; two (2) in East Texas; and seventeen (17) in fifteen contiguous counties south and southwest of Houston generally along the NAFTA highway.
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Prosperity Bank operates the following full service banking centers:
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Austin Area - Allandale Congress Lakeway Oak Hill Research Blvd Dallas / Fort Worth Area - Abrams Centre Blooming Grove Camp Wisdom Cedar Hill Corsicana Ennis Kiest Preston Road Red Oak Turtle Creek Westmoreland Corpus Christi Area - Airline Alice | | Aransas Pass Carmel Everhart Northwest Kingsville Mathis Port Aransas Portland Rockport Saratoga Sinton Water Street Woodlawn East Texas Area - Crockett Grapeland Houston Area - Aldine Angleton Bellaire Cinco Ranch CityWest Clear Lake Cleveland | | Copperfield Cypress Dayton Downtown Fairfield Galveston Gladebrook Heights Highway 6 Hitchcock Holcombe Katy Liberty Magnolia Medical Center Memorial Mont Belvieu Needville Pecan Grove Post Oak River Oaks Sweeny SW Medical Center Sugar Land Tanglewood Waugh Drive | | West Columbia Westheimer Winnie Woodcreek Uptown South Texas Area - Bay City Beeville Cuero East Bernard Edna El Campo Goliad Gonzales Hallettsville Palacios Port Lavaca Seguin Victoria Victoria - North Wharton Yoakum Yorktown |
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by our 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, 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: the risk that the businesses of Prosperity and Texas United will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; expected revenue synergies and cost savings from the merger may not be fully realized or realized within the expected time frame; revenues following the merger may be lower than expected; deposit attrition, operating costs, customer loss and business disruption following the merger, including, without limitation, difficulties in maintaining relationships with employees, may be greater than expected; the ability to obtain regulatory approvals of the merger on the proposed terms and schedule; the failure of Prosperity’s or Texas United’s shareholders to approve the merger agreement; Prosperity’s ability to continue to provide products and services that appeal to its customers; access to debt and equity capital markets may be limited or not available; and Prosperity’s sales objectives may not be achieved. Other risks include 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); 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 our most recent Annual Report on Form 10-K and other reports and statements we have filed with the SEC.
Copies of Prosperity Bancshares’s SEC filings may be downloaded from the Internet at no charge fromwww.prosperitybanktx.com.
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Additional Information About the Prosperity – Texas United Transaction
In connection with the proposed merger of Texas United Bancshares, Inc. (“Texas United”) into Prosperity Bancshares, Inc., Prosperity filed with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 to register the shares of Prosperity’s common stock to be issued to the shareholders of Texas United. The registration statement includes a joint proxy statement/prospectus which was sent to the shareholders of Prosperity and Texas United seeking their approval of the proposed transaction.
WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4 AND THE JOINT PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH THE PROPOSED TRANSACTION, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY, TEXAS UNITED AND THE PROPOSED TRANSACTION.
Investors and security holders may obtain free copies of the joint proxy statement/prospectus (when available) and other related documents filed by Prosperity and Texas United with the SEC through the SEC’s website at www.sec.gov. Documents filed with the SEC by Prosperity will be available free of charge by directing a request by telephone or mail to Prosperity Bancshares, Inc., Prosperity Bank Plaza, 4295 San Felipe, Houston, Texas 77027 Attn: Investor Relations. Prosperity’s telephone number is (713) 693-9300. Documents filed with the SEC by Texas United will be available free of charge by directing a request by telephone or mail to Texas United Bancshares, Inc., 109 N. Main Street, La Grange, Texas 78645. Texas United’s telephone number is (979) 968-7294.
Participants in the Prosperity – Texas United Transaction
Prosperity, Texas United and their respective directors, executive officers, and certain other members of management and employees may be soliciting proxies in favor of the merger from Prosperity’s shareholders and Texas United’s shareholders. Information about Prosperity’s directors, executive officers, and members of management is set forth in the proxy statement for Prosperity’s 2006 Annual Meeting of Shareholders filed with the SEC on March 17, 2006. Information about Texas United’s directors, executive officers, and members of management is set forth in the proxy statement for Texas United’s 2006 Annual Meeting of Shareholders filed with the SEC on April 24, 2006.
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Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars and share amounts in thousands, except per share data)
| | | | | | | | | | | | |
| | | Three Months Ended | | Twelve Months Ended |
| | | Dec 31, 2006 | | Dec 31, 2005 | | Dec 31, 2006 | | Dec 31, 2005 |
| Selected Earnings and Per Share Data | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) |
Total interest income | | $ | 62,893 | | $ | 44,277 | | $ | 231,739 | | $ | 162,123 |
Total interest expense | | | 26,487 | | | 15,256 | | | 93,594 | | | 51,226 |
| | | | | | | | | | | | |
Net interest income | | | 36,406 | | | 29,021 | | | 138,145 | | | 110,897 |
Provision for credit losses | | | 144 | | | 120 | | | 504 | | | 480 |
| | | | | | | | | | | | |
Net interest income after provision for credit losses | | | 36,262 | | | 28,901 | | | 137,641 | | | 110,417 |
| | | | |
Total non-interest income | | | 8,241 | | | 7,515 | | | 33,982 | | | 30,021 |
Total non-interest expense | | | 19,192 | | | 17,241 | | | 77,669 | | | 68,957 |
| | | | | | | | | | | | |
Net income before taxes | | | 25,311 | | | 19,175 | | | 93,954 | | | 71,481 |
Federal income taxes | | | 8,709 | | | 6,548 | | | 32,229 | | | 23,621 |
| | | | | | | | | | | | |
Net income | | $ | 16,602 | | $ | 12,627 | | $ | 61,725 | | $ | 47,860 |
| | | | | | | | | | | | |
Basic earnings per share(A) | | $ | 0.51 | | $ | 0.46 | | $ | 1.96 | | $ | 1.79 |
| | | | |
Diluted earnings per share (A) | | $ | 0.50 | | $ | 0.45 | | $ | 1.94 | | $ | 1.77 |
| | | | |
Period end shares outstanding | | | 32,793 | | | 27,821 | | | 32,793 | | | 27,821 |
| | | | |
Weighted average shares outstanding (basic) | | | 32,791 | | | 27,646 | | | 31,491 | | | 26,706 |
| | | | |
Weighted average shares outstanding (diluted) | | | 33,199 | | | 27,988 | | | 31,893 | | | 27,024 |
| (A) | Earnings per share in each quarter is computed individually using the weighted- average number of shares outstanding during that quarter while earnings per share for the full period is computed using the weighted average number of shares outstanding during the year. Thus, the sum for the quarters does not necessarily equal the full period earnings per share. |
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Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | Dec 31, 2006 | | | Dec 31, 2005 | | | Dec 31, 2006 | | | Dec 31, 2005 | |
| Balance Sheet Averages | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
Total loans | | $ | 2,203,459 | | | $ | 1,507,087 | | | $ | 2,037,379 | | | $ | 1,435,376 | |
Investment securities | | | 1,576,469 | | | | 1,535,898 | | | | 1,612,221 | | | | 1,471,067 | |
Federal funds sold and other temporary investments | | | 83,966 | | | | 45,483 | | | | 32,522 | | | | 42,859 | |
| | | | | | | | | | | | | | | | |
Total earning assets | | | 3,863,894 | | | | 3,088,468 | | | | 3,682,122 | | | | 2,949,302 | |
Allowance for credit losses | | | (24,034 | ) | | | (17,003 | ) | | | (22,476 | ) | | | (16,334 | ) |
Cash and due from banks | | | 90,942 | | | | 81,497 | | | | 90,246 | | | | 74,388 | |
Goodwill | | | 425,072 | | | | 249,396 | | | | 383,543 | | | | 233,586 | |
Core Deposit Intangibles (CDI) | | | 23,652 | | | | 21,584 | | | | 23,377 | | | | 20,117 | |
Other real estate | | | 125 | | | | 768 | | | | 118 | | | | 384 | |
Fixed assets, net | | | 63,618 | | | | 48,649 | | | | 61,948 | | | | 47,379 | |
Other assets | | | 64,019 | | | | 56,109 | | | | 64,917 | | | | 52,795 | |
| | | | | | | | | | | | | | | | |
Total assets | | $ | 4,507,288 | | | $ | 3,529,468 | | | $ | 4,283,795 | | | $ | 3,361,617 | |
| | | | | | | | | | | | | | | | |
Non-interest bearing deposits | | $ | 822,458 | | | $ | 666,051 | | | $ | 783,431 | | | $ | 609,230 | |
Interest bearing deposits | | | 2,813,906 | | | | 2,236,601 | | | | 2,665,669 | | | | 2,182,583 | |
| | | | | | | | | | | | | | | | |
Total deposits | | | 3,636,364 | | | | 2,902,652 | | | | 3,449,100 | | | | 2,791,813 | |
Federal funds purchased and interest bearing liabilities | | | 78,405 | | | | 83,072 | | | | 109,540 | | | | 70,644 | |
Junior subordinated debentures | | | 100,519 | | | | 75,775 | | | | 92,271 | | | | 69,869 | |
Other liabilities | | | 33,420 | | | | 14,444 | | | | 30,172 | | | | 15,427 | |
Shareholders’ equity (B) | | | 658,580 | | | | 453,525 | | | | 602,712 | | | | 413,864 | |
| | | | | | | | | | | | | | | | |
Total liabilities and equity | | $ | 4,507,288 | | | $ | 3,529,468 | | | $ | 4,283,795 | | | $ | 3,361,617 | |
| | | | | | | | | | | | | | | | |
| (B) | Includes ($3,545) and ($4,570), in after tax unrealized (losses) on available for sale securities for the three month periods ending December 31, 2006 and December 31, 2005, respectively, and ($4,228) and ($4,140) for the twelve month periods ending December 31, 2006 and December 31, 2005, respectively. |
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Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | Dec 31, 2006 | | Dec 31, 2005 | | | Dec 31, 2006 | | Dec 31, 2005 | |
| Income Statement Data | | (Unaudited) | | (Unaudited) | | | (Unaudited) | | (Unaudited) | |
Interest on loans | | $ | 43,741 | | $ | 27,580 | | | $ | 157,426 | | $ | 99,958 | |
Interest on securities | | | 18,034 | | | 16,236 | | | | 72,632 | | | 60,866 | |
Interest on federal funds sold and other earning assets | | | 1,118 | | | 461 | | | | 1,681 | | | 1,299 | |
| | | | | | | | | | | | | | |
Total interest income | | | 62,893 | | | 44,277 | | | | 231,739 | | | 162,123 | |
| | | | | | | | | | | | | | |
Interest expense - deposits | | | 23,455 | | | 13,018 | | | | 80,942 | | | 43,643 | |
Interest expense - debentures | | | 2,095 | | | 1,396 | | | | 7,592 | | | 4,895 | |
Interest expense - other | | | 937 | | | 842 | | | | 5,060 | | | 2,688 | |
| | | | | | | | | | | | | | |
Total interest expense | | | 26,487 | | | 15,256 | | | | 93,594 | | | 51,226 | |
| | | | | | | | | | | | | | |
Net interest income (C) | | | 36,406 | | | 29,021 | | | | 138,145 | | | 110,897 | |
Provision for credit losses | | | 144 | | | 120 | | | | 504 | | | 480 | |
| | | | | | | | | | | | | | |
Net interest income after provision for credit losses | | | 36,262 | | | 28,901 | | | | 137,641 | | | 110,417 | |
| | | | | | | | | | | | | | |
Service charges on deposit accounts | | | 6,769 | | | 6,325 | | | | 27,379 | | | 24,985 | |
Net gain on sale of assets | | | 44 | | | 9 | | | | 622 | | | 72 | |
Brokered mortgage income | | | 178 | | | 179 | | | | 839 | | | 867 | |
(Loss)/gain on sale of securities | | | 0 | | | (79 | ) | | | 0 | | | (79 | ) |
Other non-interest income | | | 1,250 | | | 1,081 | | | | 5,142 | | | 4,176 | |
| | | | | | | | | | | | | | |
Total non-interest income | | | 8,241 | | | 7,515 | | | | 33,982 | | | 30,021 | |
| | | | | | | | | | | | | | |
Salaries and benefits (D) | | | 10,103 | | | 8,968 | | | | 41,298 | | | 36,672 | |
CDI amortization | | | 1,253 | | | 1,066 | | | | 4,869 | | | 3,912 | |
Net occupancy and equipment | | | 2,070 | | | 1,791 | | | | 7,884 | | | 6,663 | |
Depreciation | | | 1,281 | | | 1,125 | | | | 5,048 | | | 4,462 | |
Data processing and software amortization | | | 884 | | | 778 | | | | 3,612 | | | 2,837 | |
Other non-interest expenses | | | 3,601 | | | 3,513 | | | | 14,958 | | | 14,411 | |
| | | | | | | | | | | | | | |
Total non-interest expenses | | | 19,192 | | | 17,241 | | | | 77,669 | | | 68,957 | |
| | | | | | | | | | | | | | |
Net income before taxes | | | 25,311 | | | 19,175 | | | | 93,954 | | | 71,481 | |
Federal income taxes | | | 8,709 | | | 6,548 | | | | 32,229 | | | 23,621 | |
| | | | | | | | | | | | | | |
Net income available to common shareholders | | $ | 16,602 | | $ | 12,627 | | | $ | 61,725 | | $ | 47,860 | |
| | | | | | | | | | | | | | |
| (C) | Net interest income on a tax equivalent basis would be $36,891 and $29,356, for the three months ended December 31, 2006 and December 31, 2005, respectively, and $139,961 and $112,262 for the twelve months ended December 31, 2006 and December 31, 2005, respectively. |
| (D) | Salaries and benefits includes equity compensation expenses of $244 and $139 for the three months ended December 31, 2006 and December 31, 2005, respectively, and $850 and $619 for the twelve months ended December 31, 2006 and December 31, 2005, respectively. |
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Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars and share amounts in thousands, except per share data)
| | | | | | | | | | | | |
| | | Three Months Ended | | Twelve Months Ended |
| | | Dec 31, 2006 | | Dec 31, 2005 | | Dec 31, 2006 | | Dec 31, 2005 |
| Common Share and Other Data | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) |
Employees - FTE | | | 908 | | | 859 | | | 908 | | | 859 |
| | | | |
Book value per share | | $ | 20.26 | | $ | 16.70 | | $ | 20.26 | | $ | 16.70 |
Tangible book value per share | | $ | 6.62 | | $ | 6.48 | | $ | 6.62 | | $ | 6.48 |
| | | | |
Period end shares outstanding | | | 32,793 | | | 27,821 | | | 32,793 | | | 27,821 |
Weighted average shares outstanding (basic) | | | 32,791 | | | 27,646 | | | 31,491 | | | 26,706 |
Weighted average shares outstanding (diluted) | | | 33,199 | | | 27,988 | | | 31,893 | | | 27,024 |
| | | | |
Non-accrual loans | | $ | 181 | | $ | 355 | | $ | 181 | | $ | 355 |
Accruing loans 90 or more days past due | | | 767 | | | 788 | | | 767 | | | 788 |
Restructured loans | | | 0 | | | 0 | | | 0 | | | 0 |
| | | | | | | | | | | | |
Total non-performing loans | | | 948 | | | 1,143 | | | 948 | | | 1,143 |
Repossessed assets | | | 32 | | | 26 | | | 32 | | | 26 |
Other real estate | | | 140 | | | 239 | | | 140 | | | 239 |
| | | | | | | | | | | | |
Total non-performing assets | | $ | 1,120 | | $ | 1,408 | | $ | 1,120 | | $ | 1,408 |
| | | | |
Allowance for credit losses at end of period | | $ | 23,990 | | $ | 17,203 | | $ | 23,990 | | $ | 17,203 |
| | | | |
Net charge-offs | | $ | 247 | | $ | 312 | | $ | 771 | | $ | 410 |
| | | | |
Basic earnings per share | | $ | 0.51 | | $ | 0.46 | | $ | 1.96 | | $ | 1.79 |
| | | | |
Diluted earnings per share | | $ | 0.50 | | $ | 0.45 | | $ | 1.94 | | $ | 1.77 |
Page 11 of 20
Prosperity Bancshares, Inc.®
Financial Highlights
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | Dec 31, 2006 | | | Dec 31, 2005 | | | Dec 31, 2006 | | | Dec 31, 2005 | |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
Performance Ratios | | | | | | | | | | | | | | | | |
| | | | |
Return on average assets (annualized) | | | 1.47 | % | | | 1.43 | % | | | 1.44 | % | | | 1.42 | % |
Return on average common equity (annualized) | | | 10.08 | % | | | 11.14 | % | | | 10.24 | % | | | 11.56 | % |
Return on average tangible common equity (annualized) | | | 31.64 | % | | | 27.67 | % | | | 31.53 | % | | | 29.88 | % |
Net interest margin (E) (tax equivalent) (annualized) | | | 3.79 | % | | | 3.77 | % | | | 3.80 | % | | | 3.81 | % |
Efficiency ratio (F) | | | 43.03 | % | | | 47.10 | % | | | 45.29 | % | | | 48.93 | % |
| | | | |
Asset Quality Ratios | | | | | | | | | | | | | | | | |
| | | | |
Non-performing assets to average earning assets | | | 0.03 | % | | | 0.05 | % | | | 0.03 | % | | | 0.05 | % |
Non-performing assets to loans and other real estate | | | 0.05 | % | | | 0.09 | % | | | 0.05 | % | | | 0.09 | % |
Net charge-offs to average loans | | | 0.01 | % | | | 0.02 | % | | | 0.04 | % | | | 0.03 | % |
Allowance for credit losses to total loans | | | 1.10 | % | | | 1.12 | % | | | 1.10 | % | | | 1.12 | % |
| | | | |
Common Stock Market Price | | | | | | | | | | | | | | | | |
| | | | |
High | | $ | 35.38 | | | $ | 32.12 | | | $ | 36.16 | | | $ | 32.12 | |
Low | | $ | 32.54 | | | $ | 27.97 | | | $ | 28.50 | | | $ | 25.05 | |
Period end market price | | $ | 34.51 | | | $ | 28.74 | | | $ | 34.51 | | | $ | 28.74 | |
| (E) | Net Interest Margin for all periods presented is calculated on an actual/365 day basis. |
| (F) | 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 on the sale of assets). Additionally, taxes are not part of this calculation. |
Page 12 of 20
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | December 31, 2006 | | | September 30, 2006 | | | June 30, 2006 | | | Mar 31, 2006 | |
| Balance Sheet Data (at period end) | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
Loan Portfolio | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Commercial | | $ | 297,677 | | | 13.7 | % | | $ | 312,785 | | | 14.1 | % | | $ | 297,230 | | | 13.5 | % | | $ | 233,812 | | | 15.0 | % |
Construction | | | 433,178 | | | 19.9 | % | | | 432,424 | | | 19.5 | % | | | 396,246 | | | 18.0 | % | | | 239,135 | | | 15.3 | % |
1-4 family residential | | | 376,996 | | | 17.3 | % | | | 378,846 | | | 17.1 | % | | | 373,783 | | | 17.0 | % | | | 311,586 | | | 20.0 | % |
Home equity | | | 63,427 | | | 2.9 | % | | | 63,694 | | | 2.9 | % | | | 64,540 | | | 2.9 | % | | | 58,797 | | | 3.8 | % |
Commercial real estate | | | 881,125 | | | 40.5 | % | | | 892,938 | | | 40.3 | % | | | 934,554 | | | 42.4 | % | | | 600,630 | | | 38.5 | % |
Agriculture | | | 57,429 | | | 2.6 | % | | | 66,145 | | | 3.0 | % | | | 67,007 | | | 3.0 | % | | | 56,796 | | | 3.6 | % |
Consumer | | | 66,675 | | | 3.1 | % | | | 67,569 | | | 3.1 | % | | | 71,432 | | | 3.2 | % | | | 60,711 | | | 3.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Loans | | $ | 2,176,507 | | | | | | $ | 2,214,401 | | | | | | $ | 2,204,792 | | | | | | $ | 1,561,467 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposit Types | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Non-interest bearing DDA | | $ | 835,876 | | | 22.4 | % | | $ | 809,836 | | | 22.5 | % | | $ | 839,317 | | | 23.1 | % | | $ | 692,713 | | | 23.8 | % |
Interest bearing DDA | | | 736,962 | | | 19.8 | % | | | 640,372 | | | 17.8 | % | | | 655,081 | | | 18.0 | % | | | 443,193 | | | 15.2 | % |
Money Market | | | 825,510 | | | 22.2 | % | | | 792,697 | | | 22.1 | % | | | 761,992 | | | 20.9 | % | | | 585,867 | | | 20.1 | % |
Savings | | | 168,677 | | | 4.5 | % | | | 164,751 | | | 4.6 | % | | | 168,543 | | | 4.6 | % | | | 163,545 | | | 5.6 | % |
Time < $100 | | | 584,360 | | | 15.7 | % | | | 589,141 | | | 16.4 | % | | | 598,038 | | | 16.4 | % | | | 540,326 | | | 18.5 | % |
Time > $100 | | | 574,293 | | | 15.4 | % | | | 596,348 | | | 16.6 | % | | | 617,029 | | | 17.0 | % | | | 489,698 | | | 16.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Deposits | | $ | 3,725,678 | | | | | | $ | 3,593,145 | | | | | | $ | 3,640,000 | | | | | | $ | 2,915,342 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan to Deposit Ratio | | | 58.4 | % | | | | | | 61.6 | % | | | | | | 60.6 | % | | | | | | 53.6 | % | | | |
Page 13 of 20
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | Dec 31, 2006 | | | Sep 30, 2006 | | | Jun 30, 2006 | | | Mar 31, 2006 | | | Dec 31, 2005 | |
| Balance Sheet Data (at period end) | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
Total loans | | $ | 2,176,507 | | | $ | 2,214,401 | | | $ | 2,204,792 | | | $ | 1,561,467 | | | $ | 1,542,125 | |
Investment securities (G) | | | 1,590,303 | | | | 1,566,478 | | | | 1,643,412 | | | | 1,555,028 | | | | 1,572,602 | |
Federal funds sold and other temporary investments | | | 154,040 | | | | 31,471 | | | | 20,619 | | | | 6,246 | | | | 6,143 | |
| | | | | | | | | | | | | | | | | | | | |
Total earning assets | | | 3,920,850 | | | | 3,812,350 | | | | 3,868,823 | | | | 3,122,741 | | | | 3,120,870 | |
Allowance for credit losses | | | (23,990 | ) | | | (24,093 | ) | | | (24,280 | ) | | | (17,312 | ) | | | (17,203 | ) |
Cash and due from banks | | | 116,078 | | | | 85,106 | | | | 102,921 | | | | 77,056 | | | | 91,518 | |
Goodwill | | | 424,339 | | | | 425,073 | | | | 423,534 | | | | 263,406 | | | | 261,964 | |
Core deposit intangibles | | | 23,032 | | | | 24,285 | | | | 25,476 | | | | 21,100 | | | | 22,461 | |
Other real estate | | | 140 | | | | 59 | | | | 77 | | | | 37 | | | | 239 | |
Fixed assets, net | | | 63,057 | | | | 63,118 | | | | 64,242 | | | | 48,316 | | | | 49,244 | |
Other assets | | | 63,263 | | | | 69,818 | | | | 71,158 | | | | 56,269 | | | | 56,889 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 4,586,769 | | | $ | 4,455,716 | | | $ | 4,531,951 | | | $ | 3,571,613 | | | $ | 3,585,982 | |
| | | | | | | | | | | | | | | | | | | | |
Demand deposits | | $ | 835,876 | | | $ | 809,836 | | | $ | 839,317 | | | $ | 692,713 | | | $ | 674,407 | |
Interest bearing deposits | | | 2,889,802 | | | | 2,783,309 | | | | 2,800,683 | | | | 2,222,629 | | | | 2,245,911 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | | 3,725,678 | | | | 3,593,145 | | | | 3,640,000 | | | | 2,915,342 | | | | 2,920,318 | |
Securities sold under repurchase agreements | | | 47,225 | | | | 48,459 | | | | 47,494 | | | | 46,957 | | | | 46,985 | |
Federal funds purchased and other interest bearing liabilities | | | 26,408 | | | | 31,484 | | | | 77,711 | | | | 38,184 | | | | 55,404 | |
Junior subordinated debentures | | | 100,519 | | | | 100,519 | | | | 100,519 | | | | 69,589 | | | | 75,775 | |
Other liabilities | | | 22,528 | | | | 31,956 | | | | 30,854 | | | | 26,084 | | | | 22,783 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 3,922,358 | | | | 3,805,563 | | | | 3,896,578 | | | | 3,096,156 | | | | 3,121,265 | |
Shareholders’ equity (H) | | | 664,411 | | | | 650,153 | | | | 635,373 | | | | 475,457 | | | | 464,717 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and equity | | $ | 4,586,769 | | | $ | 4,455,716 | | | $ | 4,531,951 | | | $ | 3,571,613 | | | $ | 3,585,982 | |
| | | | | | | | | | | | | | | | | | | | |
| (G) | Includes ($4,538), ($6,202), ($7,848), ($6,370), and ($6,063) in unrealized (losses) on available for sale securities for the quarterly periods ending December 31, 2006, September 30, 2006, June 30, 2006, March 31, 2006, and December 31, 2005, respectively. |
| (H) | Includes ($2,950), ($4,032), ($5,101), ($4,140), and ($3,941) in after tax unrealized (losses) on available for sale securities for the quarterly periods ending December 31, 2006, September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, respectively. |
Page 14 of 20
Prosperity Bancshares, Inc.®
Financial Highlights
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | Dec 31, 2006 | | Sept 30, 2006 | | June 30, 2006 | | Mar 31, 2006 | | Dec 31, 2005 | |
| Income Statement Data | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) | |
Interest on loans | | $ | 43,741 | | $ | 43,625 | | $ | 41,578 | | $ | 28,482 | | $ | 27,580 | |
Interest on securities | | | 18,034 | | | 18,302 | | | 19,300 | | | 16,996 | | | 16,236 | |
Interest on federal funds sold and other earning assets | | | 1,118 | | | 223 | | | 134 | | | 206 | | | 461 | |
| | | | | | | | | | | | | | | | |
Total interest income | | | 62,893 | | | 62,150 | | | 61,012 | | | 45,684 | | | 44,277 | |
| | | | | | | | | | | | | | | | |
Interest expense- deposits | | | 23,455 | | | 22,519 | | | 20,875 | | | 14,093 | | | 13,018 | |
Interest expense- debentures | | | 2,095 | | | 2,106 | | | 1,994 | | | 1,397 | | | 1,396 | |
Interest expense- other | | | 937 | | | 1,558 | | | 1,561 | | | 1,004 | | | 842 | |
| | | | | | | | | | | | | | | | |
Total interest expense | | | 26,487 | | | 26,183 | | | 24,430 | | | 16,494 | | | 15,256 | |
| | | | | | | | | | | | | | | | |
Net interest income | | | 36,406 | | | 35,967 | | | 36,582 | | | 29,190 | | | 29,021 | |
Provision for credit losses | | | 144 | | | 120 | | | 120 | | | 120 | | | 120 | |
| | | | | | | | | | | | | | | | |
Net interest income after provision for credit losses | | | 36,262 | | | 35,847 | | | 36,462 | | | 29,070 | | | 28,901 | |
| | | | | | | | | | | | | | | | |
Service charges on deposits accounts | | | 6,769 | | | 7,079 | | | 7,206 | | | 6,325 | | | 6,325 | |
Net gain on sale of assets | | | 44 | | | 132 | | | 436 | | | 10 | | | 9 | |
Loss on sale of securities | | | 0 | | | 0 | | | 0 | | | 0 | | | (79 | ) |
Brokered mortgage income | | | 178 | | | 233 | | | 245 | | | 183 | | | 179 | |
Other non-interest income | | | 1,250 | | | 1,474 | | | 1,269 | | | 1,149 | | | 1,081 | |
| | | | | | | | | | | | | | | | |
Total non-interest income | | | 8,241 | | | 8,918 | | | 9,156 | | | 7,667 | | | 7,515 | |
| | | | | | | | | | | | | | | | |
Salaries and benefits | | | 10,103 | | | 10,268 | | | 11,732 | | | 9,195 | | | 8,968 | |
CDI amortization | | | 1,253 | | | 1,191 | | | 1,358 | | | 1,067 | | | 1,066 | |
Net occupancy and equipment | | | 2,070 | | | 2,166 | | | 1,967 | | | 1,681 | | | 1,791 | |
Depreciation | | | 1,281 | | | 1,265 | | | 1,327 | | | 1,175 | | | 1,125 | |
Data processing and software amortization | | | 884 | | | 928 | | | 989 | | | 811 | | | 778 | |
Other non-interest expenses | | | 3,601 | | | 4,011 | | | 4,026 | | | 3,320 | | | 3,513 | |
| | | | | | | | | | | | | | | | |
Total non-interest expenses | | | 19,192 | | | 19,829 | | | 21,399 | | | 17,249 | | | 17,241 | |
| | | | | | | | | | | | | | | | |
Net income before taxes | | | 25,311 | | | 24,936 | | | 24,219 | | | 19,488 | | | 19,175 | |
Federal income taxes | | | 8,709 | | | 8,572 | | | 8,324 | | | 6,624 | | | 6,548 | |
| | | | | | | | | | | | | | | | |
Net income available to common shareholders | | $ | 16,602 | | $ | 16,364 | | $ | 15,895 | | $ | 12,864 | | $ | 12,627 | |
| | | | | | | | | | | | | | | | |
Page 15 of 20
Prosperity Bancshares, Inc.®
Financial Highlights
| | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | Dec 31, 2006 | | | Sep 30, 2006 | | | June 30, 2006 | | | Mar 31, 2006 | | | Dec 31, 2005 | |
| Comparative Quarterly Asset Quality, Performance & Capital Ratios | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
Return on average assets (annualized) | | 1.47 | % | | 1.46 | % | | 1.40 | % | | 1.43 | % | | 1.43 | % |
Return on average common equity (annualized) | | 10.08 | % | | 10.17 | % | | 10.15 | % | | 10.92 | % | | 11.14 | % |
Return on average tangible equity (annualized) | | 31.64 | % | | 33.61 | % | | 34.81 | % | | 27.50 | % | | 27.67 | % |
Net interest margin (tax equivalent) (annualized) | | 3.79 | % | | 3.77 | % | | 3.82 | % | | 3.81 | % | | 3.77 | % |
| | | | | |
Employees - FTE | | 908 | | | 914 | | | 931 | | | 844 | | | 859 | |
| | | | | |
Efficiency ratio | | 43.03 | % | | 44.31 | % | | 47.24 | % | | 46.81 | % | | 47.10 | % |
Non-performing assets to average earning assets | | 0.03 | % | | 0.03 | % | | 0.03 | % | | 0.04 | % | | 0.05 | % |
Non-performing assets to loans and other real estate | | 0.05 | % | | 0.06 | % | | 0.05 | % | | 0.08 | % | | 0.09 | % |
Net charge-offs to average loans | | 0.01 | % | | 0.01 | % | | 0.01 | % | | 0.00 | % | | 0.02 | % |
Allowance for credit losses to total loans | | 1.10 | % | | 1.09 | % | | 1.10 | % | | 1.11 | % | | 1.12 | % |
| | | | | |
Tier 1 risk-based capital | | 13.55 | % | | 13.11 | % | | 12.47 | % | | 15.65 | % | | 15.34 | % |
| | | | | |
Total risk-based capital | | 14.58 | % | | 14.16 | % | | 13.53 | % | | 16.69 | % | | 16.37 | % |
| | | | | |
Tier 1 leverage capital | | 7.76 | % | | 7.44 | % | | 6.98 | % | | 7.86 | % | | 7.83 | % |
| | | | | |
Tangible equity to tangible assets | | 5.24 | % | | 5.01 | % | | 4.56 | % | | 5.81 | % | | 5.46 | % |
| | | | | |
Equity to assets | | 14.49 | % | | 14.59 | % | | 14.02 | % | | 13.31 | % | | 12.96 | % |
Page 16 of 20
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| | | | | | | | | | |
| | | Three Months Ended Dec 31, 2006 | |
| YIELD ANALYSIS | | Average
Balance | | | Interest Earned / Interest Paid | | Average
Yield/Rate | |
Interest Earning Assets: | | | | | | | | | | |
Loans | | $ | 2,203,459 | | | $ | 43,741 | | 7.88 | % |
Investment securities | | | 1,576,469 | | | | 18,034 | | 4.58 | % |
Federal funds sold and other temporary investments | | | 83,966 | | | | 1,118 | | 5.28 | % |
| | | | | | | | | | |
Total interest earning assets | | | 3,863,894 | | | $ | 62,893 | | 6.46 | % |
| | | | | | | | | | |
Allowance for credit losses | | | (24,034 | ) | | | | | | |
Non-interest earning assets | | | 667,428 | | | | | | | |
| | | | | | | | | | |
Total assets | | $ | 4,507,288 | | | | | | | |
| | | | | | | | | | |
Interest Bearing Liabilities: | | | | | | | | | | |
Interest bearing demand deposits | | $ | 647,012 | | | $ | 3,490 | | 2.14 | % |
Savings and money market deposits | | | 989,484 | | | | 7,148 | | 2.87 | % |
Certificates and other time deposits | | | 1,177,410 | | | | 12,817 | | 4.32 | % |
Junior subordinated debentures | | | 100,519 | | | | 2,095 | | 8.27 | % |
Securities sold under repurchase agreements | | | 47,361 | | | | 528 | | 4.42 | % |
Federal funds purchased and other borrowings | | | 31,044 | | | | 409 | | 5.23 | % |
| | | | | | | | | | |
Total interest bearing liabilities | | | 2,992,830 | | | $ | 26,487 | | 3.51 | % |
| | | | | | | | | | |
Non-interest bearing liabilities: | | | | | | | | | | |
Non-interest bearing demand deposits | | | 822,458 | | | | | | | |
Other liabilities | | | 33,420 | | | | | | | |
| | | | | | | | | | |
Total liabilities | | | 3,848,718 | | | | | | | |
Shareholders’ equity | | | 658,580 | | | | | | | |
| | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 4,507,288 | | | | | | | |
| | | | | | | | | | |
Net Interest Income & Margin | | | | | | $ | 36,406 | | 3.74 | % |
| | | | | | | | | | |
Net Interest Income & Margin (tax equivalent) | | | | | | $ | 36,891 | | 3.79 | % |
| | | | | | | | | | |
Page 17 of 20
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| | | | | | | | | | |
| | | Three Months Ended Dec 31, 2005 | |
| YIELD ANALYSIS | | Average
Balance | | | Interest Earned / Interest Paid | | Average
Yield/Rate | |
Interest Earning Assets: | | | | | | | | | | |
Loans | | $ | 1,507,087 | | | $ | 27,580 | | 7.26 | % |
Investment securities | | | 1,535,898 | | | | 16,236 | | 4.23 | % |
Federal funds sold and other temporary investments | | | 45,483 | | | | 461 | | 4.02 | % |
| | | | | | | | | | |
Total interest earning assets | | | 3,088,468 | | | $ | 44,277 | | 5.69 | % |
| | | | | | | | | | |
Allowance for credit losses | | | (17,003 | ) | | | | | | |
Non-interest earning assets | | | 458,003 | | | | | | | |
| | | | | | | | | | |
Total assets | | $ | 3,529,468 | | | | | | | |
| | | | | | | | | | |
Interest Bearing Liabilities: | | | | | | | | | | |
Interest bearing demand deposits | | $ | 452,782 | | | $ | 1,135 | | 0.99 | % |
Savings and money market deposits | | | 748,194 | | | | 3,575 | | 1.90 | % |
Certificates and other time deposits | | | 1,035,625 | | | | 8,308 | | 3.18 | % |
Junior subordinated debentures | | | 75,775 | | | | 1,396 | | 7.31 | % |
Securities sold under repurchase agreements | | | 37,358 | | | | 303 | | 3.22 | % |
Federal funds purchased and other borrowings | | | 45,714 | | | | 539 | | 4.68 | % |
| | | | | | | | | | |
Total interest bearing liabilities | | | 2,395,448 | | | $ | 15,256 | | 2.53 | % |
| | | | | | | | | | |
Non-interest bearing liabilities: | | | | | | | | | | |
Non-interest bearing demand deposits | | | 666,051 | | | | | | | |
Other liabilities | | | 14,444 | | | | | | | |
| | | | | | | | | | |
Total liabilities | | | 3,075,943 | | | | | | | |
Shareholders’ equity | | | 453,525 | | | | | | | |
| | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 3,529,468 | | | | | | | |
| | | | | | | | | | |
Net Interest Income & Margin | | | | | | $ | 29,021 | | 3.73 | % |
| | | | | | | | | | |
Net Interest Income & Margin (tax equivalent) | | | | | | $ | 29,356 | | 3.77 | % |
| | | | | | | | | | |
Page 18 of 20
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| | | | | | | | | | |
| | | Twelve Months Ended Dec 31, 2006 | |
| YIELD ANALYSIS | | Average
Balance | | | Interest Earned
/ Interest Paid | | Average
Yield / Rate | |
Interest Earning Assets: | | | | | | | | | | |
Loans | | $ | 2,037,379 | | | $ | 157,426 | | 7.73 | % |
Investment securities | | | 1,612,221 | | | | 72,632 | | 4.51 | % |
Federal funds sold and other temporary investments | | | 32,522 | | | | 1,681 | | 5.17 | % |
| | | | | | | | | | |
Total interest earning assets | | | 3,682,122 | | | $ | 231,739 | | 6.29 | % |
| | | | | | | | | | |
Allowance for credit losses | | | (22,476 | ) | | | | | | |
Non-interest earning assets | | | 624,149 | | | | | | | |
| | | | | | | | | | |
Total assets | | $ | 4,283,795 | | | | | | | |
| | | | | | | | | | |
Interest Bearing Liabilities: | | | | | | | | | | |
Interest bearing demand deposits | | $ | 602,946 | | | $ | 11,440 | | 1.90 | % |
Savings and money market deposits | | | 897,667 | | | | 23,539 | | 2.62 | % |
Certificates and other time deposits | | | 1,165,056 | | | | 45,963 | | 3.95 | % |
Junior subordinated debentures | | | 92,271 | | | | 7,592 | | 8.23 | % |
Securities sold under repurchase agreements | | | 45,488 | | | | 1,820 | | 4.00 | % |
Federal funds purchased and other borrowings | | | 64,052 | | | | 3,240 | | 5.06 | % |
| | | | | | | | | | |
Total interest bearing liabilities | | | 2,867,480 | | | $ | 93,594 | | 3.26 | % |
| | | | | | | | | | |
Non-interest bearing liabilities: | | | | | | | | | | |
Non-interest bearing demand deposits | | | 783,431 | | | | | | | |
Other liabilities | | | 30,172 | | | | | | | |
| | | | | | | | | | |
Total liabilities | | | 3,681,083 | | | | | | | |
Shareholders’ equity | | | 602,712 | | | | | | | |
| | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 4,283,795 | | | | | | | |
| | | | | | | | | | |
Net Interest Income & Margin | | | | | | $ | 138,145 | | 3.75 | % |
| | | | | | | | | | |
Net Interest Income & Margin (tax equivalent) | | | | | | $ | 139,961 | | 3.80 | % |
| | | | | | | | | | |
Page 19 of 20
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| | | | | | | | | | |
| | | Twelve Months Ended Dec 31, 2005 | |
| YIELD ANALYSIS | | Average
Balance | | | Interest Earned
/ Interest Paid | | Average
Yield / Rate | |
Interest Earning Assets: | | | | | | | | | | |
Loans | | $ | 1,435,376 | | | $ | 99,958 | | 6.96 | % |
Investment securities | | | 1,471,067 | | | | 60,866 | | 4.14 | % |
Federal funds sold and other temporary investments | | | 42,859 | | | | 1,299 | | 3.03 | % |
| | | | | | | | | | |
Total interest earning assets | | | 2,949,302 | | | $ | 162,123 | | 5.50 | % |
| | | | | | | | | | |
Allowance for credit losses | | | (16,334 | ) | | | | | | |
Non-interest earning assets | | | 428,649 | | | | | | | |
| | | | | | | | | | |
Total assets | | $ | 3,361,617 | | | | | | | |
| | | | | | | | | | |
Interest Bearing Liabilities: | | | | | | | | | | |
Interest bearing demand deposits | | $ | 477,199 | | | $ | 4,666 | | 0.98 | % |
Savings and money market deposits | | | 696,237 | | | | 10,683 | | 1.53 | % |
Certificates and other time deposits | | | 1,009,147 | | | | 28,294 | | 2.80 | % |
Junior subordinated debentures | | | 69,869 | | | | 4,895 | | 7.01 | % |
Securities sold under repurchase agreements | | | 29,850 | | | | 768 | | 2.57 | % |
Federal funds purchased and other borrowings | | | 40,794 | | | | 1,920 | | 4.71 | % |
| | | | | | | | | | |
Total interest bearing liabilities | | | 2,323,096 | | | $ | 51,226 | | 2.21 | % |
| | | | | | | | | | |
Non-interest bearing liabilities: | | | | | | | | | | |
Non-interest bearing demand deposits | | | 609,230 | | | | | | | |
Other liabilities | | | 15,427 | | | | | | | |
| | | | | | | | | | |
Total liabilities | | | 2,947,753 | | | | | | | |
Shareholders’ equity | | | 413,864 | | | | | | | |
| | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 3,361,617 | | | | | | | |
| | | | | | | | | | |
Net Interest Income & Margin | | | | | | $ | 110,897 | | 3.76 | % |
| | | | | | | | | | |
Net Interest Income & Margin (tax equivalent) | | | | | | $ | 112,262 | | 3.81 | % |
| | | | | | | | | | |
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Page 20 of 20
