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 41.9%
| • | 4Q07 Earnings Per Share Increased 6% to $0.53 (diluted) |
| • | Record Annual Earnings |
HOUSTON, January 25, 2008. Prosperity Bancshares, Inc.® NASDAQ: (PRSP), the parent company of Prosperity Bank®, reported earnings for the quarter ended December 31, 2007. Net income for the quarter was $23.565 million or $0.53 per diluted common share, an increase in net income of $6.963 million or 41.9%, compared with $16.602 million or $0.50 per diluted common share for the same period in the prior year. Prosperity also reported record annual net earnings for 2007 of $90.6 million, or $2.09 per diluted common share, up 46.8% from 2006 net earnings of $61.7 million and up 7.7% from 2006 diluted earnings per share of $1.94.
Prosperity completed its acquisition of The Bank of Navasota on August 31, 2007. Prosperity also completed its acquisition of Texas United Bancshares, Inc. and its subsidiaries State Bank, Gateway National Bank, GNB Financial, n.a. and Northwest Bank (collectively, TXUI) on January 31, 2007. The results of operations for these acquisitions have been included in Prosperity’s consolidated financial statements since their respective purchase dates.
“I am pleased to report another year of record earnings,” said David Zalman, Prosperity’s Chairman and Chief Executive Officer. “I am proud of our team and our performance during this volatile environment. Our team of real bankers are winning business and building relationships daily.”
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“During the recent downward market and credit challenges, we have maintained our sound credit underwriting, and, while our non-performing assets are currently elevated from our past reports, we are pleased with the progress we have made in improving the credit quality of the assets acquired in our most recent acquisitions. We engage in traditional loan underwriting and securities investing, and do not participate in subprime mortgage or other high-risk lending activities such as factoring or purchasing shared national credits in our loan or securities portfolios. Additionally, we do not use off-balance sheet financing, which can result in solvency and liquidity issues,” added Zalman.
The recent market volatility and turmoil in the credit markets, coupled with the issuance by Fannie Mae and Freddie Mac of higher yielding preferred securities, have resulted in a decrease in the market value of the Fannie Mae and Freddie Mac preferred stocks Prosperity holds. In connection with Prosperity’s regular review of its marketable securities, Prosperity is continuing to review additional data related to this decrease, and as discussed in more detail in this release, if Prosperity determines that the preferred stocks are other-than-temporary impaired, it will be required to take an after-tax non-cash impairment charge of $6.5 million as of December 31, 2007. Such a charge would decrease net income, earnings per share and the related ratios for both the three and twelve month periods ended December 31, 2007 but would have no effect on shareholders’ equity, tangible equity or regulatory capital.
Results of operations for the three months ended December 31, 2007
For the three months ended December 31, 2007, net income was $23.565 million compared with $16.602 million for the same period in 2006. Net income per diluted common share was $0.53 for the three months ended December 31, 2007 compared with $0.50 for the same period in 2006. Returns on average assets, average common equity and average tangible common equity for the three months ended December 31, 2007 were 1.52%, 8.40% and 28.73%, respectively. Prosperity’s efficiency ratio was 45.45% for the three months ended December 31, 2007.
Net interest income before provision for credit losses for the quarter ended December 31, 2007 increased 41.8%, to $51.634 million compared with $36.406 million during the same period in 2006. The increase was attributable primarily to a 30.7% increase in average earning assets, which was mostly due to the TXUI and Navasota acquisitions and internal growth.
Non-interest income increased $5.007 million or 60.8% to $13.248 million for the three months ended December 31, 2007 compared with $8.241 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 and August 2007. Linked quarter non-interest income decreased $911,000 or 6.4% primarily due to a decrease in net gain on sale of assets of $555,000.
Non-interest expense increased $10.246 million or 53.4% to $29.438 million for the fourth quarter of 2007 compared with $19.192 million for the same period in 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 and August 2007. Linked quarter non-interest expense decreased $649,000 or 2.2%.
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The annualized net interest margin (tax equivalent) was 4.12% for the quarter ended December 31, 2007 compared with 3.79% for the quarter ended December 31, 2006 and 4.07% for the quarter ended September 30, 2007.
Loans at December 31, 2007 were $3.143 billion, an increase of $966.4 million or 44.4% compared with $2.177 billion at December 31, 2006. As reflected in the table below, linked quarter loan growth for the fourth quarter of 2007 was impacted by a decrease in the loans acquired as a part of the TXUI and Navasota acquisitions. Excluding the loans acquired as a part of these acquisitions, linked quarter loans increased by $48.3 million or 9.2% on an annualized basis.
Deposits at December 31, 2007 were $4.966 billion, an increase of $1.241 billion or 33.3% compared with $3.726 billion at December 31, 2006. As reflected in the table below, linked quarter deposit growth for the fourth quarter of 2007 was impacted by an overall decrease in the deposits assumed as a part of the TXUI and Navasota acquisitions. Excluding deposits assumed as a part of these acquisitions, linked quarter deposits increased by $192.3 million or 5.4%.
| Dec 31, 2007 | Sept 30, 2007 | Dec 31, 2006 | |||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||
Balance Sheet Data (at period end) (In Thousands) | |||||||||
Loans: | |||||||||
Acquired with Texas United Bancshares, Inc. | $ | 959,949 | $ | 989,705 | $ | 0 | |||
Acquired with Bank of Navasota | 27,641 | 30,800 | 0 | ||||||
All other | 2,155,381 | 2,107,050 | 2,176,507 | ||||||
Total Loans | $ | 3,142,971 | $ | 3,127,555 | $ | 2,176,507 | |||
Deposits: | |||||||||
Assumed with Texas United Bancshares, Inc. | $ | 1,154,486 | $ | 1,165,277 | $ | 0 | |||
Assumed with Bank of Navasota | 61,447 | 60,526 | 0 | ||||||
All other | 3,750,474 | 3,558,211 | 3,725,678 | ||||||
Total Deposits | $ | 4,966,407 | $ | 4,784,014 | $ | 3,725,678 | |||
Average loans increased 42.3% or $933.1 million to $3.137 billion for the quarter ended December 31, 2007 compared with $2.203 billion for the same period of 2006. The provision for credit losses was $120 thousand for the three months ended December 31, 2007 and $144 thousand for the three months ended December 31, 2006. Average deposits increased 31.6% or $1.149 billion to $4.785 billion for the quarter ended December 31, 2007 compared with $3.636 billion for the same period of 2006.
Net charge-offs were 0.10% of average loans for the quarter ending December 31, 2007 and 0.01% of average loans for the quarter ending December 31, 2006. At December 31, 2007, the allowance for credit losses was 1.04% of total loans, compared with 1.10% at December 31, 2006 and 1.14% as of September 30, 2007.
Non-performing assets totaled $15.390 million or 0.30% of average earning assets at December 31, 2007 compared with $1.120 million or 0.03% of average earning assets at December 31, 2006. The non-performing assets at December 31, 2007 consisted of ninety-two (92) separate credits or ORE
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properties. We continue to move quickly to resolve problem assets. As of today, fifteen (15) credits representing approximately $4.1 million of the non-performing assets as of December 31, 2007 have been sold, are under contract to be sold, have been paid off or are otherwise resolved.
Results of operations for the twelve months ended December 31, 2007
For the twelve months ended December 31, 2007, net income was $90.635 million compared with $61.725 million for the same period in 2006. Net income per diluted common share was $2.09 for the twelve months ended December 31, 2007 compared with $1.94 for the same period in 2006. Returns on average assets, average common equity and average tangible common equity for the twelve months ended December 31, 2007 were 1.49%, 8.72% and 32.34%, respectively. Prosperity’s efficiency ratio was 46.29% for the twelve months ended December 31, 2007.
Net interest income before provision for credit losses for the twelve months ended December 31, 2007 increased $62.290 million or 45.1% to $200.435 million compared with $138.145 million during the same period in 2006. The increase was attributable primarily to a 36.2% increase in average earning assets due to the acquisitions completed in January and August 2007, and April 2006.
Non-interest income increased $18.941 million or 55.7% to $52.923 million for the twelve months ended December 31, 2007 compared with $33.982 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 and August 2007, and April 2006.
Non-interest expense increased $39.199 million or 50.5% to $116.868 million for the first twelve months of 2007 compared with $77.669 million for the same period in 2006. The increase in non-interest expense was attributable primarily to the increased operating costs associated with the additional banking centers acquired as a part of the acquisitions completed in January and August 2007, and April 2006.
At December 31, 2007, Prosperity had $6.376 billion in total assets, $3.143 billion in loans, $4.966 billion in deposits, and approximately 320,000 deposit and loan accounts. Assets, loans and deposits at December 31, 2007 grew by 39.0%, 44.4% and 33.3%, respectively, compared with December 31, 2006.
Review of Possible Other than Temporary Impairment in Securities Portfolio
Prosperity currently owns $15 million in Fannie Mae preferred stock and $9 million in Freddie Mac preferred stock in its available-for-sale securities portfolio. The Fannie Mae and Freddie Mac preferred stocks are investment grade, variable rate securities, with a current tax equivalent yield of 6.28% for the Fannie Mae preferred stock and 4.93% for the Freddie Mac preferred stock, and are rated AA- by S&P and Aa3 by Moody’s. The rate on the Freddie Mac preferred stock resets every five years, with the next reset date in December 2009, and the Fannie Mae preferred stock resets every two years, with the next reset date in March 2008.
As previously mentioned, the market value of the Fannie Mae and Freddie Mac preferred stocks Prosperity holds have decreased. However, the preferred stocks continue to perform according to
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their contractual terms and all dividend payments are current. Prior to recent events, the market value of these preferred stocks moved in accordance with market rates, with some price deviation due to recent events at Fannie Mae and Freddie Mac.
There are multiple factors considered in determining whether a decline in the market value of a security is an other-than-temporary impairment, including but not limited to (1) the condition of the issuers, (2) Prosperity’s liquidity and capital position and (3) Prosperity’s intent and ability to hold the preferred stocks for a reasonable period of time sufficient for a forecasted recovery. As of the date of this release, Prosperity is continuing to review additional data and assumptions concerning these factors and the decrease in market value of the Fannie Mae and Freddie Mac preferred stocks as of December 31, 2007.
Based on such review, if Prosperity determines that the Fannie Mae and Freddie Mac preferred stocks are other-than-temporary impaired, Prosperity will be required to take a non-cash impairment charge as of December 31, 2007 of approximately $10.0 million pre-tax and $6.5 million after-tax. As reflected in the table below, such an impairment charge would decrease net income, earnings per share and related ratios, but would have no effect on our shareholders’ equity, tangible equity or regulatory capital. Currently, the decline in the market value of the preferred stock is recorded as an unrealized mark-to-market loss on available-for-sale securities and reflected as a reduction to shareholders’ equity through accumulated other comprehensive loss.
| As reported: 3 months ended Dec 31, 2007 | As adjusted for possible charge: 3 months ended Dec 31, 2007 | As reported: 12 months ended Dec 31, 2007 | As adjusted for possible charge: 12 months ended Dec 31, 2007 | |||||||||||||
Net Income (in thousands) | $ | 23,565 | $ | 17,081 | $ | 90,635 | $ | 84,151 | ||||||||
Return on average assets | 1.52 | % | 1.11 | % | 1.49 | % | 1.38 | % | ||||||||
Return on common equity | 8.40 | % | 6.09 | % | 8.72 | % | 8.09 | % | ||||||||
Return on tangible common equity | 28.73 | % | 20.82 | % | 32.34 | % | 30.03 | % | ||||||||
Earnings per share (basic) | $ | 0.53 | $ | 0.39 | $ | 2.11 | $ | 1.96 | ||||||||
Earnings per share (diluted) | 0.53 | 0.38 | 2.09 | 1.94 | ||||||||||||
Shareholders’ equity (in thousands) | 1,127,431 | 1,127,431 | 1,127,431 | 1,127,431 | ||||||||||||
At December 31, 2007, Prosperity’s securities portfolio totaled $1.9 billion, with a total unrealized loss of $7.4 million, including the securities mentioned above, and had an effective duration of 3.2 years with an average life of 4.08 years.
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Conference Call
Prosperity’s management team will host a conference call on Friday, January 25, 2008 at 10:30 a.m. Eastern Standard Time (9:30 a.m. Central Standard Time) to discuss Prosperity’s fourth quarter earnings. Individuals and investment professionals may participate in the call by dialing 1-800-894-5910. The reference code is PBTX.
Alternatively, individuals may listen to the live webcast of the presentation by visiting Prosperity’s website 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 Banco Popular’s Houston Branches
On January 10, 2008, Prosperity Bank® completed its previously announced acquisition of six (6) Houston retail bank branches from Banco Popular North America. The banking centers had an aggregate of approximately $125 million in combined deposits. All six (6) locations are now operating as full service banking centers of Prosperity Bank®.
Acquisition of The Bank of Navasota, N.A.
On August 31, 2007, Prosperity completed its previously announced acquisition of The Bank of Navasota, N.A. Navasota is located between Hempstead and College Station and bridges the gap between Prosperity’s banking centers in northwest Houston, including Hempstead, and its five locations in Bryan-College Station. The Bank of Navasota operated one (1) banking office in Navasota, Grimes County, Texas, which became a full service banking center of Prosperity Bank. As of August 31, 2007, The Bank of Navasota reported total assets of approximately $72.3 million, loans of approximately $31.5 million, deposits of approximately $63.1 million and shareholders’ equity of approximately $8.9 million.
In connection with the acquisition, Prosperity issued approximately 251,454 shares of its common stock and paid approximately $8.625 million in cash for all outstanding shares of The Bank Navasota.
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 approximately $1.806 billion, loans of approximately $1.212 billion, deposits of approximately $1.362 billion and shareholders’ equity of approximately $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.
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Prosperity Bancshares, Inc.®
Prosperity Bancshares, Inc.®, a $6.4 billion Houston, Texas based regional financial holding company, formed in 1983, was named to the Keefe Bruyette & Woods, Inc. 2007 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 small and medium sized businesses and consumers. 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 thirty (130) full service banking locations and one (1) loan production office; forty-six (46) in the Houston CMSA; thirty-three (33) in the South Texas area including Corpus Christi and Victoria; twenty-six (26) in the Dallas/Fort Worth metroplex; two (2) in the East Texas area; twenty-three (23) in the Central Texas area including Austin and Bryan/College Station and one (1) loan production office in San Antonio.
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Prosperity Bank® operates the following full service banking centers:
| Central Texas | Kiest | Hillcroft | Woodlawn | |||
| Area - | Preston Road | Holcombe | Water Street | |||
| Red Oak | Little York | |||||
| Austin - | The Colony | Long Point | Other South Texas | |||
| Allandale | Turtle Creek | Medical Center | Locations - | |||
| Cedar Park | Westmoreland | Memorial Drive | Alice | |||
| Congress | Pecan Grove | Aransas Pass | ||||
| 183 | Fort Worth - | River Oaks | Bay City | |||
| Lakeway | Haltom City | Sugar Land | Beeville | |||
| Liberty Hill | Keller | SW Medical Center | Cuero | |||
| Oak Hill | Roanoke | Tanglewood | East Bernard | |||
| Research Blvd | Stockyards | Uptown | Edna | |||
| Round Rock | Waugh Drive | El Campo | ||||
| Other Dallas/Fort | Westheimer | Goliad | ||||
| Bryan/College | Worth Locations - | Woodcreek | Gonzales | |||
| Station - | Azle | Hallettsville | ||||
| Bryan | Blooming Grove | Other Houston Area | Kingsville | |||
| Bryan- East | Corsicana | Locations - | Mathis | |||
| Bryan- North | Ennis | Angleton | Palacios | |||
| College Station | Gainesville | Cinco Ranch | Pleasanton | |||
| Wellborn Road | Mesquite | Cleveland | Port Aransas | |||
| Navasota | Muenster | Dayton | Port Lavaca | |||
| Sanger | Galveston | Portland | ||||
| Other Central | Waxahachie | Hempstead | Rockport | |||
| Texas Locations - | Hitchcock | Seguin | ||||
| Caldwell | East Texas Area - | Katy | Sinton | |||
| Dime Box | Crockett | Liberty | Victoria | |||
| Flatonia | Grapeland | Magnolia | Victoria - North | |||
| La Grange | Mont Belvieu | Wharton | ||||
| Lexington | Houston Area - | Needville | Yoakum | |||
| New Braunfels | Sweeny | Yorktown | ||||
| Schulenburg | Houston - | Tomball | ||||
| Weimar | Aldine | Waller | ||||
| Bellaire | West Columbia | |||||
| Dallas/Fort Worth | CityWest | Winnie | ||||
| Area - | Clear Lake | Wirt | ||||
| Copperfield | ||||||
| Dallas - | Cypress | South Texas Area - | ||||
| Abrams Centre | Downtown | |||||
| Balch Springs | Fairfield | Corpus Christi - | ||||
| Camp Wisdom | Gessner | Airline | ||||
| Cedar Hill | Gladebrook | Carmel | ||||
| Central Expressway | Harrisburg | Everhart | ||||
| Frisco | Heights | Northwest | ||||
| Frisco - West | Highway 6 West | Saratoga |
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“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 of acquired companies and banks; continue to sustain its current internal growth rate or total growth rate; provide products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its sales objectives. Other risks include, but are not limited to: the possibility that credit quality could deteriorate; actions of competitors; changes in laws and regulations (including changes in governmental interpretations of regulations and changes in accounting standards); a deterioration or downgrade in the credit quality and credit agency ratings of the securities in Prosperity’s securities portfolio; customer and consumer demand, including customer and consumer response to marketing; effectiveness of spending, investments or programs; fluctuations in the cost and availability of supply chain resources; economic conditions, including currency rate fluctuations and interest rate fluctuations; weather; and the stock price volatility associated with “small-cap” companies. These and various other factors are discussed in 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.
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars and share amounts in thousands, except per share data)
| Three Months Ended | Twelve Months Ended | |||||||||||
| Dec 31, 2007 | Dec 31, 2006 | Dec 31, 2007 | Dec 31, 2006 | |||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Selected Earnings and Per Share Data | ||||||||||||
Total interest income | $ | 85,441 | $ | 62,893 | $ | 340,608 | $ | 231,739 | ||||
Total interest expense | 33,807 | 26,487 | 140,173 | 93,594 | ||||||||
Net interest income | 51,634 | 36,406 | 200,435 | 138,145 | ||||||||
Provision for credit losses | 120 | 144 | 760 | 504 | ||||||||
Net interest income after provision for credit losses | 51,514 | 36,262 | 199,675 | 137,641 | ||||||||
Total non-interest income | 13,248 | 8,241 | 52,923 | 33,982 | ||||||||
Total non-interest expense | 29,438 | 19,192 | 116,868 | 77,669 | ||||||||
Net income before taxes | 35,324 | 25,311 | 135,730 | 93,954 | ||||||||
Provision for federal income taxes | 11,759 | 8,709 | 45,095 | 32,229 | ||||||||
Net income | $ | 23,565 | $ | 16,602 | $ | 90,635 | $ | 61,725 | ||||
Basic earnings per share | $ | 0.53 | $ | 0.51 | $ | 2.11 | $ | 1.96 | ||||
Diluted earnings per share | $ | 0.53 | $ | 0.50 | $ | 2.09 | $ | 1.94 | ||||
Period end shares outstanding | 44,151 | 32,793 | 44,151 | 32,793 | ||||||||
Weighted average shares outstanding (basic) | 44,133 | 32,791 | 42,928 | 31,491 | ||||||||
Weighted average shares outstanding (diluted) | 44,420 | 33,199 | 43,310 | 31,893 | ||||||||
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Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
Three Months Ended | Twelve Months Ended | |||||||||||||||
| Dec 31, 2007 | Dec 31, 2006 | Dec 31, 2007 | Dec 31, 2006 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Balance Sheet Averages | ||||||||||||||||
Total loans | $ | 3,136,515 | $ | 2,203,459 | $ | 3,092,797 | $ | 2,037,379 | ||||||||
Investment securities | 1,801,443 | 1,576,469 | 1,849,613 | 1,612,221 | ||||||||||||
Federal funds sold and other earning assets | 111,059 | 83,966 | 71,462 | 32,522 | ||||||||||||
Total earning assets | 5,049,017 | 3,863,894 | 5,013,872 | 3,682,122 | ||||||||||||
Allowance for credit losses | (34,595 | ) | (24,034 | ) | (34,705 | ) | (22,476 | ) | ||||||||
Cash and due from banks | 141,696 | 90,942 | 142,645 | 90,246 | ||||||||||||
Goodwill | 746,427 | 425,072 | 717,419 | 383,543 | ||||||||||||
Core deposit intangibles (CDI) | 47,372 | 23,652 | 42,314 | 23,377 | ||||||||||||
Other real estate | 5,622 | 125 | 2,451 | 118 | ||||||||||||
Fixed assets, net | 120,720 | 63,618 | 117,024 | 61,948 | ||||||||||||
Other assets | 106,099 | 64,019 | 93,044 | 64,917 | ||||||||||||
Total assets | $ | 6,182,358 | $ | 4,507,288 | $ | 6,094,064 | $ | 4,283,795 | ||||||||
Non-interest bearing deposits | $ | 1,182,179 | $ | 822,458 | $ | 1,143,114 | $ | 783,431 | ||||||||
Interest bearing deposits | 3,602,925 | 2,813,906 | 3,584,405 | 2,665,669 | ||||||||||||
Total deposits | 4,785,104 | 3,636,364 | 4,727,519 | 3,449,100 | ||||||||||||
Securities sold under repurchase agreements | 66,538 | 47,361 | 71,165 | 45,488 | ||||||||||||
Federal funds purchased and interest bearing liabilities | 41,106 | 31,044 | 83,478 | 64,052 | ||||||||||||
Junior subordinated debentures | 112,885 | 100,519 | 124,613 | 92,271 | ||||||||||||
Other liabilities | 54,839 | 33,420 | 47,334 | 30,172 | ||||||||||||
Shareholders’ equity(A) | 1,121,886 | 658,580 | 1,039,955 | 602,712 | ||||||||||||
Total liabilities and equity | $ | 6,182,358 | $ | 4,507,288 | $ | 6,094,064 | $ | 4,283,795 | ||||||||
(A) | Includes ($2,287) and ($3,545) in after tax unrealized (losses) on available for sale securities for the three month periods ending December 31, 2007 and December 31, 2006, respectively, and ($2,418) and ($4,228) for the twelve month periods ending December 31, 2007 and December 31, 2006, respectively. |
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Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| Three Months Ended | Twelve Months Ended | |||||||||||
| Dec 31, 2007 | Dec 31, 2006 | Dec 31, 2007 | Dec 31, 2006 | |||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Income Statement Data | ||||||||||||
Interest on loans | $ | 61,682 | $ | 43,741 | $ | 247,600 | $ | 157,426 | ||||
Interest on securities | 22,446 | 18,034 | 89,467 | 72,632 | ||||||||
Interest on federal funds sold and other earning assets | 1,313 | 1,118 | 3,541 | 1,681 | ||||||||
Total interest income | 85,441 | 62,893 | 340,608 | 231,739 | ||||||||
Interest expense - deposits | 30,354 | 23,455 | 122,682 | 80,942 | ||||||||
Interest expense - debentures | 2,206 | 2,095 | 10,058 | 7,592 | ||||||||
Interest expense - other | 1,247 | 937 | 7,433 | 5,060 | ||||||||
Total interest expense | 33,807 | 26,487 | 140,173 | 93,594 | ||||||||
Net interest income(B) | 51,634 | 36,406 | 200,435 | 138,145 | ||||||||
Provision for credit losses | 120 | 144 | 760 | 504 | ||||||||
Net interest income after provision for credit losses | 51,514 | 36,262 | 199,675 | 137,641 | ||||||||
Service charges on deposit accounts | 11,029 | 6,769 | 40,937 | 27,379 | ||||||||
Net gain on sale of assets | 85 | 44 | 819 | 622 | ||||||||
Brokered mortgage income | 105 | 178 | 679 | 839 | ||||||||
Net gain on sale of securities | 28 | 0 | 86 | 0 | ||||||||
Net gain on sale of held for sale loans | 132 | 0 | 1,334 | 0 | ||||||||
Other non-interest income | 1,869 | 1,250 | 9,068 | 5,142 | ||||||||
Total non-interest income | 13,248 | 8,241 | 52,923 | 33,982 | ||||||||
Salaries and benefits(C) | 15,747 | 10,103 | 63,910 | 41,298 | ||||||||
CDI amortization | 2,620 | 1,253 | 9,917 | 4,869 | ||||||||
Net occupancy and equipment | 2,775 | 2,070 | 10,534 | 7,884 | ||||||||
Depreciation | 1,955 | 1,281 | 7,611 | 5,048 | ||||||||
Data processing and software amortization | 1,123 | 884 | 4,570 | 3,612 | ||||||||
Other non-interest expense | 5,218 | 3,601 | 20,326 | 14,958 | ||||||||
Total non-interest expense | 29,438 | 19,192 | 116,868 | 77,669 | ||||||||
Net income before taxes | 35,324 | 25,311 | 135,730 | 93,954 | ||||||||
Federal income taxes | 11,759 | 8,709 | 45,095 | 32,229 | ||||||||
Net income available to common shareholders | $ | 23,565 | $ | 16,602 | $ | 90,635 | $ | 61,725 | ||||
(B) | Net interest income on a tax equivalent basis would be $52,467 and $36,891 for the three months ended December 31, 2007 and December 31, 2006, respectively, and $203,554 and $139,961 for the twelve months ended December 31, 2007 and December 31, 2006, respectively. |
(C) | Salaries and benefits includes equity compensation expenses of $477 and $244 for the three months ended December 31, 2007 and December 31, 2006, respectively, and $1,968 and $850 for the twelve months ended December 31, 2007 and December 31, 2006, respectively. |
Page 11 of 20
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars and share amounts in thousands, except per share data)
| Three Months Ended as of | Twelve Months Ended for the | |||||||||||
| Dec 31, 2007 | Dec 31, 2006 | Dec 31, 2007 | Dec 31, 2006 | |||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Common Share and Other Data | ||||||||||||
Employees – FTE | 1,359 | 908 | 1,359 | 908 | ||||||||
Book value per share | $ | 25.54 | $ | 20.26 | $ | 25.54 | $ | 20.26 | ||||
Tangible book value per share | $ | 7.42 | $ | 6.62 | $ | 7.42 | $ | 6.62 | ||||
Period end shares outstanding | 44,151 | 32,793 | 44,151 | 32,793 | ||||||||
Weighted average shares outstanding (basic) | 44,133 | 32,791 | 42,928 | 31,491 | ||||||||
Weighted average shares outstanding (diluted) | 44,420 | 33,199 | 43,310 | 31,893 | ||||||||
Non-accrual loans | $ | 1,035 | $ | 181 | $ | 1,035 | $ | 181 | ||||
Accruing loans 90 or more days past due | 4,092 | 767 | 4,092 | 767 | ||||||||
Restructured loans | 0 | 0 | 0 | 0 | ||||||||
Total non-performing loans | 5,127 | 948 | 5,127 | 948 | ||||||||
Repossessed assets | 56 | 32 | 56 | 32 | ||||||||
Other real estate | 10,207 | 140 | 10,207 | 140 | ||||||||
Total non-performing assets | $ | 15,390 | $ | 1,120 | $ | 15,390 | $ | 1,120 | ||||
Allowance for credit losses at end of period | $ | 32,543 | $ | 23,990 | $ | 32,543 | $ | 23,990 | ||||
Net charge-offs | $ | 3,113 | $ | 247 | $ | 5,593 | $ | 771 | ||||
Basic earnings per share | $ | 0.53 | $ | 0.51 | $ | 2.11 | $ | 1.96 | ||||
Diluted earnings per share | $ | 0.53 | $ | 0.50 | $ | 2.09 | $ | 1.94 | ||||
Page 12 of 20
Prosperity Bancshares, Inc.®
Financial Highlights
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| Dec 31, 2007 | Dec 31, 2006 | Dec 31, 2007 | Dec 31, 2006 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Performance Ratios | ||||||||||||||||
Return on average assets (annualized) | 1.52 | % | 1.47 | % | 1.49 | % | 1.44 | % | ||||||||
Return on average common equity (annualized) | 8.40 | % | 10.08 | % | 8.72 | % | 10.24 | % | ||||||||
Return on average tangible common equity (annualized) | 28.73 | % | 31.64 | % | 32.34 | % | 31.53 | % | ||||||||
Net interest margin (tax equivalent) (annualized) | 4.12 | % | 3.79 | % | 4.06 | % | 3.80 | % | ||||||||
Efficiency ratio(D) | 45.45 | % | 43.03 | % | 46.29 | % | 45.29 | % | ||||||||
Asset Quality Ratios | ||||||||||||||||
Non-performing assets to average earning assets | 0.30 | % | 0.03 | % | 0.31 | % | 0.03 | % | ||||||||
Non-performing assets to loans and other real estate | 0.49 | % | 0.05 | % | 0.49 | % | 0.05 | % | ||||||||
Net charge-offs to average loans | 0.10 | % | 0.01 | % | 0.18 | % | 0.04 | % | ||||||||
Allowance for credit losses to total loans | 1.04 | % | 1.10 | % | 1.04 | % | 1.10 | % | ||||||||
Common Stock Market Price | ||||||||||||||||
High | $ | 35.07 | $ | 35.38 | $ | 37.11 | $ | 36.16 | ||||||||
Low | $ | 28.18 | $ | 32.54 | $ | 27.70 | $ | 28.50 | ||||||||
Period end market price | $ | 29.39 | $ | 34.51 | $ | 29.39 | $ | 34.51 | ||||||||
(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 13 of 20
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| Dec 31, 2007 | Sept 30, 2007 | June 30, 2007 | Mar 31, 2007 | |||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||
Balance Sheet Data (at period end) | ||||||||||||||||||||||||||||
Loan Portfolio | ||||||||||||||||||||||||||||
Commercial | $ | 453,644 | 14.5 | % | $ | 445,132 | 14.2 | % | $ | 473,526 | 14.9 | % | $ | 474,127 | 14.6 | % | ||||||||||||
Construction | 683,171 | 21.7 | % | 708,355 | 22.7 | % | 715,385 | 22.5 | % | 752,790 | 23.2 | % | ||||||||||||||||
1-4 family residential | 526,338 | 16.7 | % | 527,176 | 16.9 | % | 527,233 | 16.5 | % | 519,532 | 16.0 | % | ||||||||||||||||
Home equity | 93,877 | 3.0 | % | 94,861 | 3.0 | % | 94,960 | 3.0 | % | 93,348 | 2.9 | % | ||||||||||||||||
Commercial real estate | 1,148,709 | 36.6 | % | 1,108,254 | 35.4 | % | 1,127,304 | 35.4 | % | 1,166,638 | 35.9 | % | ||||||||||||||||
Agriculture | 114,019 | 3.6 | % | 115,619 | 3.7 | % | 117,043 | 3.7 | % | 109,521 | 3.4 | % | ||||||||||||||||
Consumer | 123,213 | 3.9 | % | 128,158 | 4.1 | % | 125,725 | 4.0 | % | 131,752 | 4.0 | % | ||||||||||||||||
Total Loans | $ | 3,142,971 | $ | 3,127,555 | $ | 3,181,176 | $ | 3,247,708 | ||||||||||||||||||||
Deposit Types | ||||||||||||||||||||||||||||
Non-interest bearing DDA | $ | 1,168,069 | 23.5 | % | $ | 1,165,089 | 24.4 | % | $ | 1,184,172 | 24.8 | % | $ | 1,188,741 | 24.1 | % | ||||||||||||
Interest bearing DDA | 1,004,761 | 20.2 | % | 809,459 | 16.9 | % | 804,961 | 16.8 | % | 868,481 | 17.6 | % | ||||||||||||||||
Money Market | 970,112 | 19.5 | % | 997,250 | 20.9 | % | 992,091 | 20.8 | % | 1,037,960 | 21.1 | % | ||||||||||||||||
Savings | 223,161 | 4.5 | % | 225,831 | 4.7 | % | 227,679 | 4.8 | % | 233,505 | 4.7 | % | ||||||||||||||||
Time < $ 100 | 791,818 | 16.0 | % | 800,400 | 16.7 | % | 786,578 | 16.5 | % | 806,295 | 16.4 | % | ||||||||||||||||
Time > $ 100 | 808,486 | 16.3 | % | 785,985 | 16.4 | % | 780,901 | 16.3 | % | 793,258 | 16.1 | % | ||||||||||||||||
Total Deposits | $ | 4,966,407 | $ | 4,784,014 | $ | 4,776,382 | $ | 4,928,240 | ||||||||||||||||||||
Loan to Deposit Ratio | 63.3 | % | 65.4 | % | 66.6 | % | 65.9 | % | ||||||||||||||||||||
Page 14 of 20
Prosperity Bancshares, Inc.®
Financial Highlights
(Dollars in thousands)
| Dec 31, 2007 | Sept 30, 2007 | June 30, 2007 | Mar 31, 2007 | Dec 31, 2006 | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Balance Sheet Data (at period end) | ||||||||||||||||||||
Total loans | $ | 3,142,971 | $ | 3,127,555 | $ | 3,181,176 | $ | 3,247,708 | $ | 2,176,507 | ||||||||||
Investment securities(E) | 1,857,606 | 1,804,326 | 1,818,723 | 1,886,294 | 1,590,303 | |||||||||||||||
Federal funds sold and other earning assets | 193,043 | 101,173 | 32,243 | 66,457 | 154,040 | |||||||||||||||
Total earning assets | 5,193,620 | 5,033,054 | 5,032,142 | 5,200,459 | 3,920,850 | |||||||||||||||
Allowance for credit losses | (32,543 | ) | (35,536 | ) | (36,129 | ) | (36,341 | ) | (23,990 | ) | ||||||||||
Cash and due from banks | 178,247 | 141,662 | 153,854 | 135,497 | 116,078 | |||||||||||||||
Goodwill | 753,909 | 745,650 | 736,624 | 739,328 | 424,339 | |||||||||||||||
Core deposit intangibles | 46,069 | 48,689 | 49,317 | 51,883 | 23,032 | |||||||||||||||
Other real estate | 10,207 | 1,460 | 3,637 | 2,138 | 140 | |||||||||||||||
Fixed assets, net | 120,044 | 120,794 | 120,810 | 118,287 | 63,057 | |||||||||||||||
Other assets | 106,281 | 114,751 | 124,659 | 115,448 | 63,263 | |||||||||||||||
Total assets | $ | 6,375,834 | $ | 6,170,524 | $ | 6,184,914 | $ | 6,326,699 | $ | 4,586,769 | ||||||||||
Non-Interest bearing deposits | $ | 1,168,069 | $ | 1,165,089 | $ | 1,184,172 | $ | 1,188,741 | $ | 835,876 | ||||||||||
Interest bearing deposits | 3,798,338 | 3,618,925 | 3,592,210 | 3,739,499 | 2,889,802 | |||||||||||||||
Total deposits | 4,966,407 | 4,784,014 | 4,776,382 | 4,928,240 | 3,725,678 | |||||||||||||||
Securities sold under repurchase agreements | 84,581 | 79,484 | 86,035 | 73,916 | 47,225 | |||||||||||||||
Federal funds purchased and other interest bearing liabilities | 31,466 | 31,988 | 59,499 | 65,621 | 26,408 | |||||||||||||||
Junior subordinated debentures | 112,885 | 112,885 | 120,617 | 145,360 | 100,519 | |||||||||||||||
Other liabilities | 53,064 | 50,908 | 60,805 | 46,993 | 22,528 | |||||||||||||||
Total liabilities | 5,248,403 | 5,059,279 | 5,103,338 | 5,260,130 | 3,922,358 | |||||||||||||||
Shareholders’ equity(F) | 1,127,431 | 1,111,245 | 1,081,576 | 1,066,569 | 664,411 | |||||||||||||||
Total liabilities and equity | $ | 6,375,834 | $ | 6,170,524 | $ | 6,184,914 | $ | 6,326,699 | $ | 4,586,769 | ||||||||||
(E) | Includes ($7,795), ($2,924), ($5,111), ($2,435) and ($4,538) in unrealized (losses) on available for sale securities for the quarterly periods ending December 31, 2007, September 30, 2007 June 30, 2007, March 31, 2007 and December 31, 2006, respectively. |
(F) | Includes ($5,067), ($1,901), ($3,322), ($1,583) and ($2,950) in after tax unrealized (losses) on available for sale securities for the quarterly periods ending December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007 and December 31, 2006, respectively. |
Page 15 of 20
Prosperity Bancshares, Inc.®
Financial Highlights
| Three Months Ended | |||||||||||||||
| Dec 31, 2007 | Sept 30, 2007 | June 30, 2007 | Mar 31, 2007 | Dec 31, 2006 | |||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
Comparative Quarterly AssetQuality, Performance & Capital Ratios | |||||||||||||||
Return on average assets (annualized) | 1.52 | % | 1.53 | % | 1.47 | % | 1.40 | % | 1.47 | % | |||||
Return on average common equity (annualized) | 8.40 | % | 8.67 | % | 8.54 | % | 8.71 | % | 10.08 | % | |||||
Return on average tangible common equity (annualized) | 28.73 | % | 30.53 | % | 32.04 | % | 31.24 | % | 31.64 | % | |||||
Net interest margin (tax equivalent) (annualized) | 4.12 | % | 4.07 | % | 4.09 | % | 3.93 | % | 3.79 | % | |||||
Employees - FTE | 1,359 | 1,369 | 1,408 | 1,432 | 908 | ||||||||||
Efficiency ratio | 45.45 | % | 46.41 | % | 46.19 | % | 47.23 | % | 43.03 | % | |||||
Non-performing assets to average earning assets | 0.30 | % | 0.19 | % | 0.22 | % | 0.09 | % | 0.03 | % | |||||
Non-performing assets to loans and other real estate | 0.49 | % | 0.30 | % | 0.35 | % | 0.13 | % | 0.05 | % | |||||
Net charge-offs to average loans | 0.10 | % | 0.04 | % | 0.02 | % | 0.02 | % | 0.01 | % | |||||
Allowance for credit losses to total loans | 1.04 | % | 1.14 | % | 1.14 | % | 1.12 | % | 1.10 | % | |||||
Tier 1 risk-based capital | 13.12 | % | 13.03 | % | 12.36 | % | 12.08 | % | 13.55 | % | |||||
Total risk-based capital | 14.10 | % | 14.11 | % | 14.18 | % | 13.13 | % | 14.58 | % | |||||
Tier 1 leverage capital | 8.09 | % | 7.83 | % | 7.57 | % | 8.31 | % | 7.76 | % | |||||
Tangible equity to tangible assets | 5.87 | % | 5.89 | % | 5.48 | % | 4.97 | % | 5.24 | % | |||||
Equity to assets | 17.68 | % | 18.01 | % | 17.49 | % | 16.86 | % | 14.49 | % | |||||
Page 16 of 20
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| Three Months Ended December 31, 2007 | ||||||||||
| Average Balance | Interest Earned / Interest Paid | Average Yield/Rate | ||||||||
YIELD ANALYSIS | ||||||||||
Interest Earning Assets: | ||||||||||
Loans | $ | 3,136,515 | $ | 61,682 | 7.80 | % | ||||
Investment securities | 1,801,443 | 22,446 | 4.98 | % | ||||||
Federal funds sold and other temporary investments | 111,059 | 1,313 | 4.69 | % | ||||||
Total interest earning assets | 5,049,017 | $ | 85,441 | 6.71 | % | |||||
Allowance for credit losses | (34,595 | ) | ||||||||
Non-interest earning assets | 1,167,936 | |||||||||
Total assets | $ | 6,182,358 | ||||||||
Interest Bearing Liabilities: | ||||||||||
Interest bearing demand deposits | $ | 826,751 | $ | 3,510 | 1.68 | % | ||||
Savings and money market deposits | 1,189,161 | 8,289 | 2.77 | % | ||||||
Certificates and other time deposits | 1,587,013 | 18,555 | 4.64 | % | ||||||
Securities sold under repurchase | 66,538 | 707 | 4.22 | % | ||||||
Federal funds purchased and other borrowings | 41,106 | 540 | 5.21 | % | ||||||
Junior subordinated debentures | 112,885 | 2,206 | 7.75 | % | ||||||
Total interest bearing liabilities | 3,823,454 | $ | 33,807 | 3.51 | % | |||||
Non-Interest Bearing Liabilities: | ||||||||||
Non-interest bearing demand deposits | 1,182,179 | |||||||||
Other liabilities | 54,839 | |||||||||
Total liabilities | 5,060,472 | |||||||||
Shareholders’ equity | 1,121,886 | |||||||||
Total liabilities and shareholders’ equity | $ | 6,182,358 | ||||||||
Net Interest Income & Margin | $ | 51,634 | 4.06 | % | ||||||
Net Interest Income & Margin (tax equivalent) | $ | 52,467 | 4.12 | % | ||||||
Page 17 of 20
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| Three Months Ended Dec 31, 2006 | ||||||||||
| Average Balance | Interest Earned / Interest Paid | Average Yield/Rate | ||||||||
YIELD ANALYSIS | ||||||||||
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 | % | ||||||
Securities sold under repurchase agreements | 47,361 | 528 | 4.42 | % | ||||||
Federal funds purchased and other borrowings | 31,044 | 409 | 5.23 | % | ||||||
Junior subordinated debentures | 100,519 | 2,095 | 8.27 | % | ||||||
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 | 3,848,708 | |||||||||
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 18 of 20
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| Twelve Months Ended December 31, 2007 | ||||||||||
| Average Balance | Interest Earned / Interest Paid | Average Yield /Rate | ||||||||
YIELD ANALYSIS | ||||||||||
Interest Earning Assets: | ||||||||||
Loans | $ | 3,092,797 | $ | 247,600 | 8.01 | % | ||||
Investment securities | 1,849,613 | 89,467 | 4.84 | % | ||||||
Federal funds sold and other temporary investments | 71,462 | 3,541 | 4.96 | % | ||||||
Total interest earning assets | 5,013,872 | $ | 340,608 | 6.79 | % | |||||
Allowance for credit losses | (34,705 | ) | ||||||||
Non-interest earning assets | 1,114,897 | |||||||||
Total assets | $ | 6,094,064 | ||||||||
Interest Bearing Liabilities: | ||||||||||
Interest bearing demand deposits | $ | 829,757 | $ | 16,313 | 1.97 | % | ||||
Savings and money market deposits | 1,205,584 | 35,089 | 2.91 | % | ||||||
Certificates and other time deposits | 1,549,064 | 71,280 | 4.60 | % | ||||||
Securities sold under repurchase agreements | 71,165 | 3,026 | 4.25 | % | ||||||
Federal funds purchased and other borrowings | 83,478 | 4,407 | 5.28 | % | ||||||
Junior subordinated debentures | 124,613 | 10,058 | 8.07 | % | ||||||
Total interest bearing liabilities | 3,863,661 | $ | 140,173 | 3.63 | % | |||||
Non-Interest Bearing Liabilities: | ||||||||||
Non-interest bearing demand deposits | 1,143,114 | |||||||||
Other liabilities | 47,334 | |||||||||
Total liabilities | 5,054,109 | |||||||||
Shareholders’ equity | 1,039,955 | |||||||||
Total liabilities and shareholders’ equity | $ | 6,094,064 | ||||||||
Net Interest Income & Margin | $ | 200,435 | 4.00 | % | ||||||
Net Interest Income & Margin (tax equivalent) | $ | 203,554 | 4.06 | % | ||||||
Page 19 of 20
Prosperity Bancshares, Inc.®
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
| Twelve Months Ended Dec 31, 2006 | ||||||||||
Average Balance | Interest Earned / Interest Paid | Average Yield /Rate | ||||||||
YIELD ANALYSIS | ||||||||||
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 | % | ||||||
Securities sold under repurchase agreements | 45,488 | 1,820 | 4.00 | % | ||||||
Federal funds purchased and other borrowings | 64,052 | 3,240 | 5.06 | % | ||||||
Junior subordinated debentures | 92,271 | 7,592 | 8.23 | % | ||||||
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 20 of 20