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.®
SECOND QUARTER EARNINGS UP 44.7%
| | • | | Record Quarterly Earnings |
| | • | | 2Q07 Earnings Per Share Increases 8.3% to $0.52 (diluted) |
| | • | | Announces Entry into San Antonio, Texas Market |
| | • | | Net Interest Margin Increases 16 bp to 4.09% |
HOUSTON, July 20, 2007. Prosperity Bancshares, Inc.® NASDAQ: (PRSP), the parent company of Prosperity Bank®, reported record earnings for the quarter ended June 30, 2007. Net income for the quarter was $22.993 million or $0.52 per diluted common share, an increase in net income of $7.098 million or 44.7%, compared with $15.895 million or $0.48 per diluted common share for the same period in the prior year.
Prosperity completed its acquisition of Texas United Bancshares, Inc. (TXUI) and its subsidiaries State Bank, Gateway National Bank, GNB Financial, n.a. and Northwest Bank on January 31, 2007. Prosperity also completed its acquisition of SNB Bancshares, Inc. (SNBT) and its subsidiary Southern National Bank of Texas on April 1, 2006. The results of operations for these acquisitions have been included in Prosperity’s consolidated financial statements since their respective purchase dates.
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“I am proud to announce another quarter of record earnings,” said David Zalman, Prosperity’s Chairman and Chief Executive Officer. “We are very pleased with the progress we have made since our acquisition of Texas United on January 31st. Our bank has grown from 58 banking centers to one hundred twenty-five (125) locations in just over two years.”
“During that same time period, our loan portfolio has grown from $1.0 billion to $3.2 billion. This progress would not have been possible without the remarkable team of bankers across the State of Texas that represent Prosperity Bank every day in the communities we serve,” continued Zalman.
“We continue to believe that our style of community banking can, and will, lead to long term financial success for our company,” concluded Zalman.
“We remain committed to building shareholder value,” stated Dan Rollins, Prosperity’s President and Chief Operating Officer. “We are also committed to maintaining our proven operating style and our credit culture.”
Rollins added, “During the past quarter, we completed the re-branding of all former TXUI bank locations as Prosperity Bank. In addition, we completed all of the remaining systems conversions and are now able to focus our full energy on growing our bank as we have in the past - one customer at a time and one relationship at a time.”
Results of operations for the three months ended June 30, 2007
For the three months ended June 30, 2007, net income was $ 22.993 million compared with $15.895 million for the same period in 2006. Net income per diluted common share was $0.52 for the three months ended June 30, 2007 compared with $0.48 for the same period in 2006. Returns on average assets, average common equity and average tangible common equity for the three months ended June 30, 2007 were 1.47%, 8.54% and 32.04%, respectively. Prosperity’s efficiency ratio was 46.19% for the three months ended June 30, 2007.
Net interest income before provision for credit losses for the quarter ended June 30, 2007 increased 40.4%, to $51.344 million compared with $36.582 million during the same period in 2006. The increase was attributable primarily to a 31.2% increase in average earning assets.
Non-interest income increased $4.689 million or 51.2% to $13.845 million for the three months ended June 30, 2007 compared with $9.156 million for the same period in 2006. 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 January 2007. Linked quarter non-interest income increased $2.174 million or 18.6%.
Non-interest expenses increased $8.673 million or 40.5% to $30.072 million for the second quarter of 2007 compared with $21.399 million for the second quarter of 2006. 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 January 2007. Linked quarter non-interest expense increased $2.801 million or 10.3%.
The annualized net interest margin (tax equivalent) increased to 4.09% for the quarter ended June 30, 2007 compared with 3.82% for the quarter ended June 30, 2006 and 3.93% for the quarter ended March 31, 2007.
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Loans at June 30, 2007 were $3.181 billion, an increase of $976.4 million, or 44.3%, compared with $2.205 billion at June 30, 2006. As reflected in the table below, linked quarter loan growth for the second quarter of 2007 was impacted by the loans acquired as a part of the TXUI acquisition. Excluding the loans acquired as a part of this acquisition, linked quarter organic loans decreased slightly by $13.653 million or 0.63%.
Deposits at June 30, 2007 were $4.776 billion, an increase of $1.136 billion, or 31.2%, compared with $3.640 billion at June 30, 2006. As reflected in the table below, linked deposit growth for the second quarter of 2007 was impacted by the deposits assumed as a part of the TXUI acquisition. Excluding deposits assumed as a part of this acquisition, linked quarter deposits decreased $78.647 million or 2.2%.
| | | | | | | | | |
| Balance Sheet Data (at period end) | | June 30, 2007 | | Mar 31, 2007 | | June 30, 2006 |
| (In Thousands) | | (Unaudited) | | (Unaudited) | | (Unaudited) |
| | | | | | | |
Loans: | | | | | | | | | |
Acquired with Texas United Bancshares, Inc. | | | 1,038,596 | | | 1,091,475 | | | 0 |
All other | | | 2,142,580 | | | 2,156,233 | | | 2,204,792 |
| | | | | | | | | |
Total Loans | | $ | 3,181,176 | | $ | 3,247,708 | | $ | 2,204,792 |
| | | | | | | | | |
Deposits: | | | | | | | | | |
Assumed with Texas United Bancshares, Inc. | | | 1,211,734 | | | 1,284,945 | | | 0 |
All other | | | 3,564,648 | | | 3,643,295 | | | 3,640,000 |
| | | | | | | | | |
Total Deposits | | $ | 4,776,382 | | $ | 4,928,240 | | $ | 3,640,000 |
| | | | | | | | | |
Average loans increased 48.1% or $1.046 billion to $3.220 billion for the quarter ended June 30, 2007 compared with $2.174 billion for the same period of 2006. The provision for credit losses was $320 thousand for the three months ended June 30, 2007 and $120 thousand for the three months ended June 30, 2006. Average deposits increased 32.6% or $1.189 billion to $4.838 billion for the quarter ended June 30, 2007 compared with $3.650 billion for the same period of 2006.
Net charge-offs were 0.02% of average loans for the quarter ending June 30, 2007 and 0.01% of average loans for the quarter ending June 30, 2006. At June 30, 2007, the allowance for credit losses was 1.14% of total loans, compared with 1.10% at June 30, 2006 and 1.12% as of March 31, 2007.
Non-performing assets totaled $11.193 million or 0.22% of average earning assets at June 30, 2007 compared with $1.171 million or 0.03% of average earning assets at June 30, 2006. The non-performing assets at June 30, 2007 consisted of eighty-three (83) separate credits or ORE properties. We continue to move quickly to resolve problem assets. As of today, forty-four (44) credits representing approximately $7.3 million of the non-performing assets as of June 30, 2007 have been sold, are under contract to be sold, have been paid off or are otherwise resolved.
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The Company redeemed in full all outstanding junior subordinated debentures of First Capital Statutory Trust I and Gateway Statutory Trust I on June 26, 2007 in the amount of $20.6 million and $4.1 million, respectively. Outstanding junior subordinated debentures totaled $120.6 million at June 30, 2007.
Results of operations for the six months ended June 30, 2007
For the six months ended June 30, 2007, net income was $43.222 million compared with $28.759 million for the same period in 2006. Net income per diluted common share was $1.02 for the six months ended June 30, 2007 compared with $0.94 for the same period in 2006. Returns on average assets, average common equity and average tangible common equity for the six months ended June 30, 2007 were 1.44%, 8.59% and 31.10%, respectively. Prosperity’s efficiency ratio was 46.68% for the six months ended June 30, 2007.
Net interest income before provision for credit losses for the six months ended June 30, 2007 increased $31.660 million or 48.1%, to $97.432 million compared with $65.772 million during the same period in 2006. The increase was attributable primarily to a 40.9% increase in average earning assets.
Non-interest income increased $8.693 million or 51.7% to $25.516 million for the six months ended June 30, 2007 compared with $16.823 million for the same period in 2006. 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 January 2007 and April 2006.
Non-interest expenses increased $18.695 million or 48.4% to $57.343 million for the first six months of 2007 compared with $38.648 million the same period in 2006. 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 acquisition completed in January 2007 and April 2006.
At June 30, 2007, Prosperity had $6.185 billion in total assets, $3.181 billion in loans, $4.776 billion in deposits, and approximately 323,000 deposit and loan accounts. Assets, loans and deposits at June 30, 2007 grew by 36.5%, 44.3% and 31.2%, respectively, compared with June 30, 2006.
Conference Call
Prosperity’s management team will host a conference call on Friday, July 20, 2007 at 10:30 a.m. Eastern Daylight Time (9:30 a.m. Central Daylight Time) to discuss Prosperity’s second quarter earnings and the recently completed acquisition of Texas United Bancshares, Inc. Individuals and investment professionals may participate in the call by dialing 1-800-862-9098. 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 “2nd Quarter Results and Webcast” link.
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Enters San Antonio, Texas Market
On July 18, 2007, Prosperity Bank® announced that it had entered the San Antonio, Texas market by opening a Loan Production Office and is actively working toward establishing a full service banking center expected to open within the next few months.
Prosperity Bank’s Loan Production Office is located at 8700 Crownhill Boulevard in the north central sector of San Antonio, and can be reached at (210) 826-2161.
Acquisition of Texas United Bancshares, Inc.
On January 31, 2007, Prosperity completed its previously announced acquisition of Texas United Bancshares, Inc. Immediately following this acquisition, TXUI’s subsidiaries, State Bank, GNB Financial, n.a., Gateway National Bank and Northwest Bank, were merged into Prosperity Bank®. At December 31, 2006, on a consolidated basis, TXUI had total assets of $1.806 billion, loans of $1.212 billion, deposits of $1.362 billion and shareholders’ equity of $161.9 million.
In conjunction with the acquisition, Prosperity issued approximately 10,770,000 shares of its common stock for all outstanding shares of Texas United common stock, and converted approximately 180,000 outstanding options to acquire TXUI common stock into options to acquire the same number of shares of PRSP common stock. All remaining options to acquire TXUI common stock were redeemed for cash.
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.
Pending Acquisition of The Bank of Navasota, N.A.
On May 1, 2007, Prosperity announced that it had entered into a definitive agreement to acquire The Bank of Navasota, N.A. Navasota is located between Hempstead and College Station and bridges the gap between our banking centers in northwest Houston, including Hempstead, and our five locations in Bryan-College Station. The Bank of Navasota operates one (1) banking office in Navasota, Grimes County, Texas, which will continue to operate with the same management when the acquisition is completed. As of March 31, 2007, The Bank of Navasota reported total assets of $73.2 million, loans of $33.6 million, deposits of $63.6 million and shareholders’ equity of $9.0 million.
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Prosperity Bancshares, Inc.®
Prosperity Bancshares, Inc.®, a $6.2 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’sHouston 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 one hundred twenty-four (124) full service banking locations; forty-one (40) in the Houston CMSA; thirty-three (33) in the South Texas area including Corpus Christi and Victoria; twenty-seven (27) in the Dallas/Fort Worth metroplex; two (2) in the East Texas area; twenty-two (22) in the Central Texas area including Austin and Bryan/College Station and one (1) loan production office in San Antonio.
In connection with the proposed acquisition of The Bank of Navasota, Prosperity has filed with the Securities and Exchange Commission a registration statement on Form S-4 to register the shares of Prosperity’s common stock to be issued to the shareholders of The Bank of Navasota. The registration statement includes a proxy statement/prospectus which was sent to the shareholders of The Bank of Navasota seeking their approval of the proposed transaction.
WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4 AND THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH THE PROPOSED TRANSACTION, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT PROSPERITY, THE BANK OF NAVASOTA AND THE PROPOSED TRANSACTION.
Investors and security holders may obtain free copies of these documents through the website maintained by the Securities and Exchange Commission at http://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 (281) 269-7199.
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Prosperity Bank® operates the following full service banking centers:
| | | | | | |
| Central Texas | | Carrollton | | CityWest | | South Texas Area - |
| Area - | | Cedar Hill | | Clear Lake | | |
| | Central Expressway | | Copperfield | | Corpus Christi - |
| Austin - | | Frisco | | Cypress | | Airline |
| Allandale | | Frisco - West | | Downtown | | Carmel |
| Cedar Park | | Kiest | | Fairfield | | Everhart |
| Congress | | Preston Road | | Gladebrook | | Northwest |
| 183 | | Red Oak | | Heights | | Saratoga |
| Lakeway | | The Colony | | Highway 6 West | | Woodlawn |
| Liberty Hill | | Turtle Creek | | Holcombe | | Water Street |
| Oak Hill | | Westmoreland | | Medical Center | | |
| Research Blvd | | | | Memorial Drive | | Other South Texas |
| Round Rock | | Fort Worth - | | Pecan Grove | | Locations - |
| | Haltom City | | River Oaks | | Alice |
| Bryan/College | | Keller | | Sugar Land | | Aransas Pass |
| Station - | | Roanoke | | SW Medical Center | | Bay City |
| Bryan | | Stockyards | | Tanglewood | | Beeville |
| Bryan- East | | | | Uptown | | Cuero |
| Bryan- North | | Other Dallas/Fort | | Waugh Drive | | East Bernard |
| College Station | | Worth Locations - | | Westheimer | | Edna |
| Wellborn Road | | Azle | | Woodcreek | | El Campo |
| | Blooming Grove | | | | Goliad |
| Other Central | | Corsicana | | Other Houston | | Gonzales |
| Texas Locations - | | Ennis | | Area Locations - | | Hallettsville |
| Caldwell | | Gainesville | | Angleton | | Kingsville |
| Dime Box | | Mesquite | | Cinco Ranch | | Mathis |
| Flatonia | | Muenster | | Cleveland | | Palacios |
| La Grange | | Sanger | | Dayton | | Pleasanton |
| Lexington | | Waxahachie | | Galveston | | Port Aransas |
| New Braunfels | | | | Hempstead | | Port Lavaca |
| Schulenburg | | East Texas Area - | | Hitchcock | | Portland |
| Weimar | | Crockett | | Katy | | Rockport |
| | Grapeland | | Liberty | | Seguin |
| Dallas/Fort Worth | | | | Magnolia | | Sinton |
| Area - | | Houston Area - | | Mont Belvieu | | Victoria |
| | | | Needville | | Victoria - North |
| Dallas - | | Houston - | | Sweeny | | Wharton |
| Abrams Centre | | Aldine | | Tomball | | Yoakum |
| Balch Springs | | Bellaire | | Waller | | Yorktown |
| Camp Wisdom | | | | West Columbia | | |
| | | | Winnie | | |
“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 whether Prosperity can: successfully identify acquisition targets and integrate the businesses
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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 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 the SEC filings for Prosperity Bancshares’s® may be downloaded from the Internet at no charge fromwww.prosperitybanktx.com.
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Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars and share amounts in thousands, except per share data)
| | | | | | | | | | | | |
| | | Three Months Ended | | Six Months Ended |
| | | June 30, 2007 | | June 30, 2006 | | June 30, 2007 | | June 30, 2006 |
| | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) |
Selected Earnings and Per Share Data | | | | | | | | | | | | |
Total interest income | | $ | 87,300 | | $ | 61,012 | | $ | 167,163 | | $ | 106,696 |
Total interest expense | | | 35,956 | | | 24,430 | | | 69,731 | | | 40,924 |
| | | | | | | | | | | | |
Net interest income | | | 51,344 | | | 36,582 | | | 97,432 | | | 65,772 |
Provision for credit losses | | | 320 | | | 120 | | | 565 | | | 240 |
| | | | | | | | | | | | |
Net interest income after provision for credit losses | | | 51,024 | | | 36,462 | | | 96,867 | | | 65,532 |
Total non-interest income | | | 13,845 | | | 9,156 | | | 25,516 | | | 16,823 |
Total non-interest expense | | | 30,072 | | | 21,399 | | | 57,343 | | | 38,648 |
| | | | | | | | | | | | |
Net income before taxes | | | 34,797 | | | 24,219 | | | 65,040 | | | 43,707 |
Provision for federal income taxes | | | 11,804 | | | 8,324 | | | 21,818 | | | 14,948 |
| | | | | | | | | | | | |
Net income | | $ | 22,993 | | $ | 15,895 | | $ | 43,222 | | $ | 28,759 |
| | | | | | | | | | | | |
Basic earnings per share | | $ | 0.53 | | $ | 0.49 | | $ | 1.03 | | $ | 0.95 |
Diluted earnings per share | | $ | 0.52 | | $ | 0.48 | | $ | 1.02 | | $ | 0.94 |
Period end shares outstanding | | | 43,811 | | | 32,764 | | | 43,811 | | | 32,764 |
Weighted average shares outstanding (basic) | | | 43,796 | | | 32,483 | | | 41,816 | | | 30,179 |
Weighted average shares outstanding (diluted) | | | 44,216 | | | 32,963 | | | 42,261 | | | 30,568 |
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Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, 2007 | | | June 30, 2006 | | | June 30, 2007 | | | June 30, 2006 | |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
Balance Sheet Averages | | | | | | | | | | | | | | | | |
Total loans | | $ | 3,219,900 | | | $ | 2,174,278 | | | $ | 3,045,020 | | | $ | 1,864,558 | |
Investment securities | | | 1,837,702 | | | | 1,707,314 | | | | 1,852,538 | | | | 1,640,160 | |
Federal funds sold and other earning assets | | | 51,238 | | | | 11,064 | | | | 61,288 | | | | 14,522 | |
| | | | | | | | | | | | | | | | |
Total earning assets | | | 5,108,840 | | | | 3,892,656 | | | | 4,958,846 | | | | 3,519,240 | |
Allowance for credit losses | | | (36,348 | ) | | | (24,300 | ) | | | (34,173 | ) | | | (20,793 | ) |
Cash and due from banks | | | 152,302 | | | | 98,075 | | | | 142,021 | | | | 92,143 | |
Goodwill | | | 739,316 | | | | 420,786 | | | | 691,489 | | | | 341,965 | |
Core Deposit Intangibles (CDI) | | | 50,576 | | | | 23,185 | | | | 36,818 | | | | 22,461 | |
Other real estate | | | 1,315 | | | | 87 | | | | 1,033 | | | | 136 | |
Fixed assets, net | | | 119,615 | | | | 70,823 | | | | 113,090 | | | | 59,891 | |
Other assets | | | 112,310 | | | | 65,908 | | | | 106,185 | | | | 57,535 | |
| | | | | | | | | | | | | | | | |
Total assets | | $ | 6,247,926 | | | $ | 4,547,220 | | | $ | 6,015,309 | | | $ | 4,072,578 | |
| | | | | | | | | | | | | | | | |
Non-interest bearing deposits | | $ | 1,168,630 | | | $ | 829,653 | | | $ | 1,097,824 | | | $ | 750,806 | |
Interest bearing deposits | | | 3,669,599 | | | | 2,819,974 | | | | 3,578,549 | | | | 2,540,678 | |
| | | | | | | | | | | | | | | | |
Total deposits | | | 4,838,229 | | | | 3,649,627 | | | | 4,676,373 | | | | 3,291,484 | |
Securities sold under repurchase agreements | | | 75,809 | | | | 47,076 | | | | 67,515 | | | | 44,920 | |
Federal funds purchased and interest bearing liabilities | | | 65,892 | | | | 90,164 | | | | 88,075 | | | | 72,002 | |
Junior subordinated debentures | | | 141,236 | | | | 100,519 | | | | 133,763 | | | | 84,023 | |
Other liabilities | | | 49,799 | | | | 33,198 | | | | 43,344 | | | | 28,470 | |
Shareholders’ equity(A) | | | 1,076,961 | | | | 626,636 | | | | 1,006,239 | | | | 551,679 | |
| | | | | | | | | | | | | | | | |
Total liabilities and equity | | $ | 6,247,926 | | | $ | 4,547,220 | | | $ | 6,015,309 | | | $ | 4,072,578 | |
| | | | | | | | | | | | | | | | |
(A) | Includes ($1,819) and ($4,253), in after tax unrealized (losses) on available for sale securities for the three month periods ending June 30, 2007 and June 30, 2006, respectively, and ($2,194) and ($4,159) for the six month periods ending June 30, 2007 and June 30, 2006, respectively. |
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Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| | | | | | | | | | | | |
| | | Three Months Ended | | Six Months Ended |
| | | June 30, 2007 | | June 30, 2006 | | June 30, 2007 | | June 30, 2006 |
| | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) |
Income Statement Data | | | | | | | | | | | | |
Interest on loans | | $ | 64,622 | | $ | 41,578 | | $ | 121,882 | | $ | 70,060 |
Interest on securities | | | 21,996 | | | 19,300 | | | 43,705 | | | 36,296 |
Interest on federal funds sold and other earning assets | | | 682 | | | 134 | | | 1,576 | | | 340 |
| | | | | | | | | | | | |
Total interest income | | | 87,300 | | | 61,012 | | | 167,163 | | | 106,696 |
Interest expense - deposits | | | 31,421 | | | 20,875 | | | 60,534 | | | 34,968 |
Interest expense - debentures | | | 2,896 | | | 1,994 | | | 5,494 | | | 3,391 |
Interest expense - other | | | 1,639 | | | 1,561 | | | 3,703 | | | 2,565 |
| | | | | | | | | | | | |
Total interest expense | | | 35,956 | | | 24,430 | | | 69,731 | | | 40,924 |
| | | | | | | | | | | | |
Net interest income (B) | | | 51,344 | | | 36,582 | | | 97,432 | | | 65,772 |
Provision for credit losses | | | 320 | | | 120 | | | 565 | | | 240 |
| | | | | | | | | | | | |
Net interest income after provision for credit losses | | | 51,024 | | | 36,462 | | | 96,867 | | | 65,532 |
Service charges on deposit accounts | | | 10,613 | | | 7,206 | | | 19,123 | | | 13,531 |
Net gain on sale of assets | | | 82 | | | 436 | | | 96 | | | 446 |
Brokered mortgage income | | | 254 | | | 245 | | | 386 | | | 428 |
Gain on sale of held for sale loans | | | 310 | | | 0 | | | 913 | | | 0 |
Other non-interest income | | | 2,586 | | | 1,269 | | | 4,998 | | | 2,418 |
| | | | | | | | | | | | |
Total non-interest income | | | 13,845 | | | 9,156 | | | 25,516 | | | 16,823 |
Salaries and benefits (C) | | | 16,496 | | | 11,732 | | | 31,798 | | | 20,927 |
CDI amortization | | | 2,566 | | | 1,358 | | | 4,711 | | | 2,425 |
Net occupancy and equipment | | | 2,636 | | | 1,967 | | | 5,094 | | | 3,648 |
Depreciation | | | 1,885 | | | 1,327 | | | 3,761 | | | 2,502 |
Data processing and software amortization | | | 1,172 | | | 989 | | | 2,157 | | | 1,800 |
Other non-interest expenses | | | 5,317 | | | 4,026 | | | 9,822 | | | 7,346 |
| | | | | | | | | | | | |
Total non-interest expenses | | | 30,072 | | | 21,399 | | | 57,343 | | | 38,648 |
| | | | | | | | | | | | |
Net income before taxes | | | 34,797 | | | 24,219 | | | 65,040 | | | 43,707 |
Federal income taxes | | | 11,804 | | | 8,324 | | | 21,818 | | | 14,948 |
| | | | | | | | | | | | |
Net income available to common shareholders | | $ | 22,993 | | $ | 15,895 | | $ | 43,222 | | $ | 28,759 |
| | | | | | | | | | | | |
(B) | Net interest income on a tax equivalent basis would be $52,141 and $37,077 for the three months ended June 30, 2007 and June 30, 2006, respectively, and $98,905 and $66,601 for the six months ended June 30, 2007 and June 30, 2006, respectively. |
(C) | Salaries and benefits includes equity compensation expenses of $524 and $210 for the three months ended June 30, 2007 and June 30, 2006, respectively, and $957 and $382 for the six months ended June 30, 2007 and June 30, 2006, respectively. |
Page 10 of 19
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars and share amounts in thousands, except per share data)
| | | | | | | | | | | | |
| | | Three Months Ended | | Six Months Ended |
| | | June 30, 2007 | | June 30, 2006 | | June 30, 2007 | | June 30, 2006 |
| | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) |
Common Share and Other Data | | | | | | | | | | | | |
Employees - FTE | | | 1,408 | | | 931 | | | 1,408 | | | 931 |
Book value per share | | $ | 24.69 | | $ | 19.39 | | $ | 24.69 | | $ | 19.39 |
Tangible book value per share | | $ | 6.75 | | $ | 5.69 | | $ | 6.75 | | $ | 5.69 |
Period end shares outstanding | | | 43,811 | | | 32,764 | | | 43,811 | | | 32,764 |
Weighted average shares outstanding (basic) | | | 43,796 | | | 32,483 | | | 41,816 | | | 30,179 |
Weighted average shares outstanding (diluted) | | | 44,216 | | | 32,963 | | | 42,261 | | | 30,568 |
| | | | |
Non-accrual loans | | $ | 1,265 | | $ | 350 | | $ | 1,265 | | $ | 350 |
Accruing loans 90 or more days past due | | | 6,216 | | | 744 | | | 6,216 | | | 744 |
Restructured loans | | | 0 | | | 0 | | | 0 | | | 0 |
| | | | | | | | | | | | |
Total non-performing loans | | | 7,481 | | | 1,094 | | | 7,481 | | | 1,094 |
Repossessed assets | | | 75 | | | 0 | | | 75 | | | 0 |
Other real estate | | | 3,637 | | | 77 | | | 3,637 | | | 77 |
| | | | | | | | | | | | |
Total non-performing assets | | $ | 11,193 | | $ | 1,171 | | $ | 11,193 | | $ | 1,171 |
| | | | |
Allowance for credit losses at end of period | | $ | 36,129 | | $ | 24,280 | | $ | 36,129 | | $ | 24,280 |
Net charge-offs | | $ | 531 | | $ | 206 | | $ | 1,166 | | $ | 217 |
Basic earnings per share | | $ | 0.53 | | $ | 0.49 | | $ | 1.03 | | $ | 0.95 |
Diluted earnings per share | | $ | 0.52 | | $ | 0.48 | | $ | 1.02 | | $ | 0.94 |
Page 11 of 19
Prosperity Bancshares, Inc.®
Financial Highlights
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, 2007 | | | June 30, 2006 | | | June 30, 2007 | | | June 30, 2006 | |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
Performance Ratios | | | | | | | | | | | | | | | | |
Return on average assets (annualized) | | | 1.47 | % | | | 1.40 | % | | | 1.44 | % | | | 1.41 | % |
Return on average common equity (annualized) | | | 8.54 | % | | | 10.15 | % | | | 8.59 | % | | | 10.43 | % |
Return on average tangible common equity (annualized) | | | 32.04 | % | | | 34.81 | % | | | 31.10 | % | | | 30.72 | % |
Net interest margin (tax equivalent) (annualized) | | | 4.09 | % | | | 3.82 | % | | | 4.02 | % | | | 3.82 | % |
Efficiency ratio(D) | | | 46.19 | % | | | 47.24 | % | | | 46.68 | % | | | 47.05 | % |
Asset Quality Ratios | | | | | | | | | | | | | | | | |
Non-performing assets to average earning assets | | | 0.22 | % | | | 0.03 | % | | | 0.23 | % | | | 0.03 | % |
Non-performing assets to loans and other real estate | | | 0.35 | % | | | 0.05 | % | | | 0.35 | % | | | 0.05 | % |
Net charge-offs to average loans | | | 0.02 | % | | | 0.01 | % | | | 0.04 | % | | | 0.01 | % |
Allowance for credit losses to total loans | | | 1.14 | % | | | 1.10 | % | | | 1.14 | % | | | 1.10 | % |
Common Stock Market Price | | | | | | | | | | | | | | | | |
High | | $ | 35.91 | | | $ | 33.90 | | | $ | 37.11 | | | $ | 33.90 | |
Low | | $ | 32.63 | | | $ | 29.65 | | | $ | 32.18 | | | $ | 28.50 | |
Period end market price | | $ | 32.76 | | | $ | 32.89 | | | $ | 32.76 | | | $ | 32.89 | |
(D) | Calculated by dividing total non-interest expense (excluding credit loss provisions) by net interest income plus non-interest income (excluding net gains and losses on the sale of securities and assets). Additionally, taxes are not part of this calculation. |
Page 12 of 19
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | June 30, 2007 | | | Mar 31, 2007 | | | Dec 31, 2006 | | | Sep 30, 2006 | |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
Balance Sheet Data (at period end) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan Portfolio | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 473,526 | | | 14.9 | % | | $ | 474,127 | | | 14.6 | % | | $ | 297,677 | | | 13.7 | % | | $ | 312,785 | | | 14.1 | % |
Construction | | | 715,385 | | | 22.5 | % | | | 752,790 | | | 23.2 | % | | | 433,178 | | | 19.9 | % | | | 432,424 | | | 19.5 | % |
1-4 family residential | | | 527,233 | | | 16.5 | % | | | 519,532 | | | 16.0 | % | | | 376,996 | | | 17.3 | % | | | 378,846 | | | 17.1 | % |
Home equity | | | 94,960 | | | 3.0 | % | | | 93,348 | | | 2.9 | % | | | 63,427 | | | 2.9 | % | | | 63,694 | | | 2.9 | % |
Commercial real estate | | | 1,127,304 | | | 35.4 | % | | | 1,166,638 | | | 35.9 | % | | | 881,125 | | | 40.5 | % | | | 892,938 | | | 40.3 | % |
Agriculture | | | 117,043 | | | 3.7 | % | | | 109,521 | | | 3.4 | % | | | 57,429 | | | 2.6 | % | | | 66,145 | | | 3.0 | % |
Consumer | | | 125,725 | | | 4.0 | % | | | 131,752 | | | 4.0 | % | | | 66,675 | | | 3.1 | % | | | 67,569 | | | 3.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Loans | | $ | 3,181,176 | | | | | | $ | 3,247,708 | | | | | | $ | 2,176,507 | | | | | | $ | 2,214,401 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposit Types | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest bearing DDA | | $ | 1,184,172 | | | 24.8 | % | | $ | 1,188,741 | | | 24.1 | % | | $ | 835,876 | | | 22.4 | % | | $ | 809,836 | | | 22.5 | % |
Interest bearing DDA | | | 804,961 | | | 16.8 | % | | | 868,481 | | | 17.6 | % | | | 736,962 | | | 19.8 | % | | | 640,372 | | | 17.8 | % |
Money Market | | | 992,091 | | | 20.8 | % | | | 1,037,960 | | | 21.1 | % | | | 825,510 | | | 22.2 | % | | | 792,697 | | | 22.1 | % |
Savings | | | 227,679 | | | 4.8 | % | | | 233,505 | | | 4.7 | % | | | 168,677 | | | 4.5 | % | | | 164,751 | | | 4.6 | % |
Time < $ 100 | | | 786,578 | | | 16.5 | % | | | 806,295 | | | 16.4 | % | | | 584,360 | | | 15.7 | % | | | 589,141 | | | 16.4 | % |
Time > $ 100 | | | 780,901 | | | 16.3 | % | | | 793,258 | | | 16.1 | % | | | 574,293 | | | 15.4 | % | | | 596,348 | | | 16.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Deposits | | $ | 4,776,382 | | | | | | $ | 4,928,240 | | | | | | $ | 3,725,678 | | | | | | $ | 3,593,145 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan to Deposit Ratio | | | 66.6 | % | | | | | | 65.9 | % | | | | | | 58.4 | % | | | | | | 61.6 | % | | | |
Page 13 of 19
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | June 30, 2007 | | | Mar 31, 2007 | | | Dec 31, 2006 | | | Sep 30, 2006 | | | Jun 30, 2006 | |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
Balance Sheet Data (at period end) | | | | | | | | | | | | | | | | | | | | |
Total loans | | $ | 3,181,176 | | | $ | 3,247,708 | | | $ | 2,176,507 | | | $ | 2,214,401 | | | $ | 2,204,792 | |
Investment securities(E) | | | 1,818,723 | | | | 1,886,294 | | | | 1,590,303 | | | | 1,566,478 | | | | 1,643,412 | |
Federal funds sold and other earning assets | | | 32,243 | | | | 66,457 | | | | 154,040 | | | | 31,471 | | | | 20,619 | |
| | | | | | | | | | | | | | | | | | | | |
Total earning assets | | | 5,032,142 | | | | 5,200,459 | | | | 3,920,850 | | | | 3,812,350 | | | | 3,868,823 | |
Allowance for credit losses | | | (36,129 | ) | | | (36,341 | ) | | | (23,990 | ) | | | (24,093 | ) | | | (24,280 | ) |
Cash and due from banks | | | 153,854 | | | | 135,497 | | | | 116,078 | | | | 85,106 | | | | 102,921 | |
Goodwill | | | 736,624 | | | | 739,328 | | | | 424,339 | | | | 425,073 | | | | 423,534 | |
Core deposit intangibles | | | 49,317 | | | | 51,883 | | | | 23,032 | | | | 24,285 | | | | 25,476 | |
Other real estate | | | 3,637 | | | | 2,138 | | | | 140 | | | | 59 | | | | 77 | |
Fixed assets, net | | | 120,810 | | | | 118,287 | | | | 63,057 | | | | 63,118 | | | | 64,242 | |
Other assets | | | 124,659 | | | | 115,448 | | | | 63,263 | | | | 69,818 | | | | 71,158 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 6,184,914 | | | $ | 6,326,699 | | | $ | 4,586,769 | | | $ | 4,455,716 | | | $ | 4,531,951 | |
| | | | | | | | | | | | | | | | | | | | |
Demand deposits | | $ | 1,184,172 | | | $ | 1,188,741 | | | $ | 835,876 | | | $ | 809,836 | | | $ | 839,317 | |
Interest bearing deposits | | | 3,592,210 | | | | 3,739,499 | | | | 2,889,802 | | | | 2,783,309 | | | | 2,800,683 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | | 4,776,382 | | | | 4,928,240 | | | | 3,725,678 | | | | 3,593,145 | | | | 3,640,000 | |
Securities sold under repurchase agreements | | | 86,035 | | | | 73,916 | | | | 47,225 | | | | 48,459 | | | | 47,494 | |
Federal funds purchased and other interest bearing liabilities | | | 59,499 | | | | 65,621 | | | | 26,408 | | | | 31,484 | | | | 77,711 | |
Junior subordinated debentures | | | 120,617 | | | | 145,360 | | | | 100,519 | | | | 100,519 | | | | 100,519 | |
Other liabilities | | | 60,805 | | | | 46,993 | | | | 22,528 | | | | 31,956 | | | | 30,854 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 5,103,338 | | | | 5,260,130 | | | | 3,922,358 | | | | 3,805,563 | | | | 3,896,578 | |
Shareholders’ equity(F) | | | 1,081,576 | | | | 1,066,569 | | | | 664,411 | | | | 650,153 | | | | 635,373 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and equity | | $ | 6,184,914 | | | $ | 6,326,699 | | | $ | 4,586,769 | | | $ | 4,455,716 | | | $ | 4,531,951 | |
| | | | | | | | | | | | | | | | | | | | |
(E) | Includes ($5,111), ($2,435), ($4,538), ($6,202), and ($7,848) in unrealized (losses) on available for sale securities for the quarterly periods ending June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively. |
(F) | Includes ($3,322), ($1,583), ($2,950), ($4,032) and ($5,101) in after tax unrealized (losses) on available for sale securities for the quarterly periods ending June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006, respectively. |
Page 14 of 19
Prosperity Bancshares, Inc.®
Financial Highlights
| | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | June 30, 2007 | | | Mar 31, 2007 | | | Dec 31, 2006 | | | Sept 30, 2006 | | | Jun 30, 2006 | |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
Comparative Quarterly Asset Quality, Performance & Capital Ratios | | | | | | | | | | | | | | | |
Return on average assets (annualized) | | 1.47 | % | | 1.40 | % | | 1.47 | % | | 1.46 | % | | 1.40 | % |
Return on average common equity (annualized) | | 8.54 | % | | 8.71 | % | | 10.08 | % | | 10.17 | % | | 10.15 | % |
Return on average tangible equity (annualized) | | 32.04 | % | | 31.24 | % | | 31.64 | % | | 33.61 | % | | 34.81 | % |
Net interest margin (tax equivalent) (annualized) | | 4.09 | % | | 3.93 | % | | 3.79 | % | | 3.77 | % | | 3.82 | % |
Employees - FTE | | 1,408 | | | 1,432 | | | 908 | | | 914 | | | 931 | |
Efficiency ratio | | 46.19 | % | | 47.23 | % | | 43.03 | % | | 44.31 | % | | 47.24 | % |
Non-performing assets to average earning assets | | 0.22 | % | | 0.09 | % | | 0.03 | % | | 0.03 | % | | 0.03 | % |
Non-performing assets to loans and other real estate | | 0.35 | % | | 0.13 | % | | 0.05 | % | | 0.06 | % | | 0.05 | % |
Net charge-offs to average loans | | 0.02 | % | | 0.02 | % | | 0.01 | % | | 0.01 | % | | 0.01 | % |
Allowance for credit losses to total loans | | 1.14 | % | | 1.12 | % | | 1.10 | % | | 1.09 | % | | 1.10 | % |
Tier 1 risk-based capital | | 12.36 | % | | 12.08 | % | | 13.55 | % | | 13.11 | % | | 12.47 | % |
Total risk-based capital | | 14.18 | % | | 13.13 | % | | 14.58 | % | | 14.16 | % | | 13.53 | % |
Tier 1 leverage capital | | 7.57 | % | | 8.31 | % | | 7.76 | % | | 7.44 | % | | 6.98 | % |
Tangible equity to tangible assets | | 5.48 | % | | 4.97 | % | | 5.24 | % | | 5.01 | % | | 4.56 | % |
Equity to assets | | 17.49 | % | | 16.86 | % | | 14.49 | % | | 14.59 | % | | 14.02 | % |
Page 15 of 19
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| | | | | | | | | | |
| | | Three Months Ended June 30, 2007 | |
| | | Average
Balance | | | Interest Earned
/ Interest Paid | | Average
Yield/Rate | |
YIELD ANALYSIS | | | | | | | | | | |
Interest Earning Assets: | | | | | | | | | | |
Loans | | $ | 3,219,900 | | | $ | 64,622 | | 8.05 | % |
Investment securities | | | 1,837,702 | | | | 21,996 | | 4.79 | % |
Federal funds sold and other temporary investments | | | 51,238 | | | | 682 | | 5.34 | % |
| | | | | | | | | | |
Total interest earning assets | | | 5,108,840 | | | $ | 87,300 | | 6.85 | % |
| | | | | | | | | | |
Allowance for credit losses | | | (36,348 | ) | | | | | | |
Non-interest earning assets | | | 1,175,434 | | | | | | | |
| | | | | | | | | | |
Total assets | | $ | 6,247,926 | | | | | | | |
| | | | | | | | | | |
Interest Bearing Liabilities: | | | | | | | | | | |
Interest bearing demand deposits | | $ | 839,596 | | | $ | 4,193 | | 2.00 | % |
Savings and money market deposits | | | 1,241,951 | | | | 9,030 | | 2.92 | % |
Certificates and other time deposits | | | 1,588,052 | | | | 18,198 | | 4.60 | % |
Junior subordinated debentures | | | 141,236 | | | | 2,896 | | 8.22 | % |
Securities sold under repurchase agreements | | | 75,809 | | | | 782 | | 4.14 | % |
Federal funds purchased and other borrowings | | | 65,892 | | | | 857 | | 5.22 | % |
| | | | | | | | | | |
Total interest bearing liabilities | | | 3,952,536 | | | $ | 35,956 | | 3.65 | % |
| | | | | | | | | | |
Non-interest bearing liabilities: | | | | | | | | | | |
Non-interest bearing demand deposits | | | 1,168,630 | | | | | | | |
Other liabilities | | | 49,799 | | | | | | | |
| | | | | | | | | | |
Total liabilities | | | 5,170,965 | | | | | | | |
Shareholders’ equity | | | 1,076,961 | | | | | | | |
| | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 6,247,926 | | | | | | | |
| | | | | | | | | | |
Net Interest Income & Margin | | | | | | $ | 51,344 | | 4.03 | % |
| | | | | | | | | | |
Net Interest Income & Margin (tax equivalent) | | | | | | $ | 52,141 | | 4.09 | % |
| | | | | | | | | | |
Page 16 of 19
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| | | | | | | | | | |
| | | Three Months Ended June 30, 2006 | |
| | | Average
Balance | | | Interest Earned
/ Interest Paid | | Average
Yield/Rate | |
YIELD ANALYSIS | | | | | | | | | | |
Interest Earning Assets: | | | | | | | | | | |
Loans | | $ | 2,174,278 | | | $ | 41,578 | | 7.67 | % |
Investment securities | | | 1,707,314 | | | | 19,300 | | 4.52 | % |
Federal funds sold and other temporary investments | | | 11,064 | | | | 134 | | 4.86 | % |
| | | | | | | | | | |
Total interest earning assets | | | 3,892,656 | | | $ | 61,012 | | 6.29 | % |
| | | | | | | | | | |
Allowance for credit losses | | | (24,300 | ) | | | | | | |
Non-interest earning assets | | | 678,864 | | | | | | | |
| | | | | | | | | | |
Total assets | | $ | 4,547,220 | | | | | | | |
| | | | | | | | | | |
Interest Bearing Liabilities: | | | | | | | | | | |
Interest bearing demand deposits | | $ | 665,882 | | | $ | 3,324 | | 2.00 | % |
Savings and money market deposits | | | 917,424 | | | | 5,696 | | 2.49 | % |
Certificates and other time deposits | | | 1,236,668 | | | | 11,855 | | 3.85 | % |
Junior subordinated debentures | | | 100,519 | | | | 1,994 | | 7.96 | % |
Securities sold under repurchase agreements | | | 47,076 | | | | 434 | | 3.70 | % |
Federal funds purchased and other borrowings | | | 90,164 | | | | 1,127 | | 5.01 | % |
| | | | | | | | | | |
Total interest bearing liabilities | | | 3,057,733 | | | $ | 24,430 | | 3.20 | % |
| | | | | | | | | | |
Non-interest bearing liabilities: | | | | | | | | | | |
Non-interest bearing demand deposits | | | 829,653 | | | | | | | |
Other liabilities | | | 33,198 | | | | | | | |
| | | | | | | | | | |
Total liabilities | | | 3,920,584 | | | | | | | |
Shareholders’ equity | | | 626,636 | | | | | | | |
| | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 4,547,220 | | | | | | | |
| | | | | | | | | | |
Net Interest Income & Margin | | | | | | $ | 36,582 | | 3.77 | % |
| | | | | | | | | | |
Net Interest Income & Margin (tax equivalent) | | | | | | $ | 37,077 | | 3.82 | % |
| | | | | | | | | | |
Page 17 of 19
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| | | | | | | | | | |
| | | Six Months Ended June 30, 2007 | |
| | | Average
Balance | | | Interest Earned
/ Interest Paid | | Average
Yield/Rate | |
YIELD ANALYSIS | | | | | | | | | | |
Interest Earning Assets: | | | | | | | | | | |
Loans | | $ | 3,045,020 | | | $ | 121,882 | | 8.07 | % |
Investment securities | | | 1,852,538 | | | | 43,705 | | 4.72 | % |
Federal funds sold and other temporary investments | | | 61,288 | | | | 1,576 | | 5.19 | % |
| | | | | | | | | | |
Total interest earning assets | | | 4,958,846 | | | $ | 167,163 | | 6.80 | % |
| | | | | | | | | | |
Allowance for credit losses | | | (34,173 | ) | | | | | | |
Non-interest earning assets | | | 1,090,636 | | | | | | | |
| | | | | | | | | | |
Total assets | | $ | 6,015,309 | | | | | | | |
| | | | | | | | | | |
Interest Bearing Liabilities: | | | | | | | | | | |
Interest bearing demand deposits | | $ | 848,943 | | | $ | 8,923 | | 2.12 | % |
Savings and money market deposits | | | 1,209,377 | | | | 17,297 | | 2.88 | % |
Certificates and other time deposits | | | 1,520,229 | | | | 34,314 | | 4.55 | % |
Junior subordinated debentures | | | 133,763 | | | | 5,494 | | 8.28 | % |
Securities sold under repurchase agreements | | | 67,515 | | | | 1,384 | | 4.13 | % |
Federal funds purchased and other borrowings | | | 88,075 | | | | 2,319 | | 5.31 | % |
| | | | | | | | | | |
Total interest bearing liabilities | | | 3,867,902 | | | $ | 69,731 | | 3.64 | % |
| | | | | | | | | | |
Non-interest bearing liabilities: | | | | | | | | | | |
Non-interest bearing demand deposits | | | 1,097,824 | | | | | | | |
Other liabilities | | | 43,344 | | | | | | | |
| | | | | | | | | | |
Total liabilities | | | 5,009,070 | | | | | | | |
Shareholders’ equity | | | 1,006,239 | | | | | | | |
| | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 6,015,309 | | | | | | | |
| | | | | | | | | | |
Net Interest Income & Margin | | | | | | $ | 97,432 | | 3.96 | % |
| | | | | | | | | | |
Net Interest Income & Margin (tax equivalent) | | | | | | $ | 98,905 | | 4.02 | % |
| | | | | | | | | | |
Page 18 of 19
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| | | | | | | | | | |
| | | Six Months Ended June 30, 2006 | |
| | | Average
Balance | | | Interest Earned
/ Interest Paid | | Average
Yield/Rate | |
YIELD ANALYSIS | | | | | | | | | | |
Interest Earning Assets: | | | | | | | | | | |
Loans | | $ | 1,864,558 | | | $ | 70,060 | | 7.58 | % |
Investment securities | | | 1,640,160 | | | | 36,296 | | 4.43 | % |
Federal funds sold and other temporary investments | | | 14,522 | | | | 340 | | 4.72 | % |
| | | | | | | | | | |
Total interest earning assets | | | 3,519,240 | | | $ | 106,696 | | 6.11 | % |
| | | | | | | | | | |
Allowance for credit losses | | | (20,793 | ) | | | | | | |
Non-interest earning assets | | | 574,131 | | | | | | | |
| | | | | | | | | | |
Total assets | | $ | 4,072,578 | | | | | | | |
| | | | | | | | | | |
Interest Bearing Liabilities: | | | | | | | | | | |
Interest bearing demand deposits | | $ | 572,589 | | | $ | 4,698 | | 1.65 | % |
Savings and money market deposits | | | 828,111 | | | | 9,559 | | 2.33 | % |
Certificates and other time deposits | | | 1,139,978 | | | | 20,711 | | 3.66 | % |
Junior subordinated debentures | | | 84,023 | | | | 3,391 | | 8.14 | % |
Securities sold under repurchase agreements | | | 44,920 | | | | 795 | | 3.57 | % |
Federal funds purchased and other borrowings | | | 72,002 | | | | 1,770 | | 4.96 | % |
| | | | | | | | | | |
Total interest bearing liabilities | | | 2,741,623 | | | $ | 40,924 | | 3.01 | % |
| | | | | | | | | | |
Non-interest bearing liabilities: | | | | | | | | | | |
Non-interest bearing demand deposits | | | 750,806 | | | | | | | |
Other liabilities | | | 28,470 | | | | | | | |
| | | | | | | | | | |
Total liabilities | | | 3,520,899 | | | | | | | |
Shareholders’ equity | | | 551,679 | | | | | | | |
| | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 4,072,578 | | | | | | | |
| | | | | | | | | | |
Net Interest Income & Margin | | | | | | $ | 65,772 | | 3.77 | % |
| | | | | | | | | | |
Net Interest Income & Margin (tax equivalent) | | | | | | $ | 66,601 | | 3.82 | % |
| | | | | | | | | | |
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