Exhibit 99.1
[LOGO OF PROSPERITY BANCSHARES, INC.(SM)]
PRESS RELEASE For more information contact:
Prosperity Bancshares, Inc.(SM) Dan Rollins
4295 San Felipe Senior Vice President
Houston, Texas 77027 713.693.9300
dan.rollins@prosperitybanktx.com
FOR IMMEDIATE RELEASE
PROSPERITY BANCSHARES, INC.(SM)
THIRD QUARTER
EARNINGS UP 51.5%
Q3 Earnings Per Share up 39.1% to $0.32 (Diluted)
2003 Dividend increased 13.6% to $0.25 per year
HOUSTON, October 21, 2002. Prosperity Bancshares, Inc.(SM) (Nasdaq: PRSP), the
parent company of Prosperity Bank(SM) and Bank of the Southwest, had third
quarter net income of $5.653 million, an increase of $1.922 million or 51.5
percent, compared with $3.731 million for the same period in 2001. Diluted
earnings per share increased $0.09 or 39.1 percent to $0.32 for the three months
ended September 30, 2002 compared with $0.23 for the three months ended
September 30, 2001. On a cash basis (earnings adjusted for goodwill amortization
and related tax expense), earnings per diluted share was $0.33 compared with
$0.25 for the same period in 2001, an increase of 32.0 percent.
Net income for the nine months ended September 30, 2002 were $14.939 million or
$0.89 per diluted share compared with net income, excluding merger-related
expenses, of $10.545 million or $0.64 per diluted share for the same period in
2001, increases of 41.7 percent and 39.1 percent, respectively. Operating
earnings on a cash basis per diluted share were $0.89 compared with $0.69 for
the same period in 2001, an increase of 29.0 percent.
Prosperity completed its previously announced merger with Commercial Bancshares,
Inc. ("Commercial") during the first quarter of 2001. In connection with the
merger, Prosperity incurred
1
approximately $2.425 million in pretax merger-related expenses and other
charges. The transaction was accounted for as a pooling of interests and
therefore the historical financial data of Prosperity has been restated to
include the accounts and operations of Commercial for all periods prior to the
merger date.
Growth in average earning assets and an improved net interest margin were the
primary factors contributing to higher earnings for 2002 when compared to the
same periods last year. The results for 2002 also benefitted from the
elimination of goodwill amortization as required under a change in generally
accepted accounting principles which became effective January 1, 2002.
"It gives me great pleasure to report that Prosperity had another record
quarter," commented David Zalman, Prosperity's President and Chief Executive
Officer. "The foundation of our company remains remarkably stable and our
earnings were not dependent upon one-time gains, changes in tax rates or other
nonrecurring events. Our net interest margin expanded, non-interest income
continues to grow and expense controls are in place. Exceptional asset quality
continues to be a core strength of our company."
"Our ability to maintain such consistent earnings growth in an environment of
slowing economic expansion is confirmation of the strength of our conservative
operating philosophy, the dedication of bank associates who work diligently
every day to serve our customers and shareholders, and the potency of our
business model," commented Ned S. Holmes, Prosperity's Chairman of the Board.
"As we look forward into 2003, we believe our recent acquisitions will begin to
bear fruit," added H. E. "Tim" Timanus, Jr., President and Chief Operating
Officer of Prosperity Bank(SM). "We have added thirteen (13) full service
banking centers since May 2002 and are on schedule to complete the operational
integration of all five of our 2002 acquisitions before the end of the second
quarter 2003."
Results of Operations for the three months ended September 30, 2001
For the three months ended September 30, 2002, net income was $5.653 million
compared with $3.731 million for the same period in 2001. Net income per diluted
common share was $0.32 for the three months ended September 30, 2002 compared
with $0.23 for the same period in 2001. Return on average assets and average
common shareholders' equity for the three months ended September 30, 2002 was
1.54 percent and 19.43 percent, respectively.
Net interest income for the quarter ended September 30, 2002 increased 36.0
percent, to $13.955 million from $10.260 million during the same period in 2001.
The increase was attributable primarily to a 21.4 percent increase in average
earning assets and a net interest margin that increased to 4.23 percent for the
quarter compared to 3.84 percent for the same period in 2001.
Non-interest income increased 32.3 percent to $2.893 million for the three
months ended September 30, 2002 compared with the same period in 2001.
Non-interest expense for the third quarter of 2002 was $8.5 million, up 20.4
percent compared to the third quarter of 2001. These expenses reflect the
company's commitment to expanding its franchise with the additional banking
centers acquired this year along with related acquisition expenses and a
2
commitment to improving technology, all of which are designed to support the
company's future growth. The company achieved an excellent efficiency ratio of
48.90 percent for the third quarter of 2002 compared to 55.07 percent for the
third quarter of 2001.
Total loans were $647.715 million at September 30, 2002, an increase of $228.2
million or 54.4 percent from September 30, 2001, and an increase of $168.8
million or 35.2 percent from June 30, 2002. Organic loan growth, loan growth
excluding loans acquired within the past year through acquisitions, was 2
percent for the twelve month period ending September 30, 2001.
"While we remain focused on quality loan growth, we have continued our policy of
refusing to originate long term fixed rate commercial loans," commented Randy D.
Hester, Chief Lending Officer of Prosperity Bank(SM).
Non-performing assets totaled $789,000 or 0.12 percent of loans and other real
estate at September 30, 2002, compared with $539,000 or 0.13 percent of loans
and other real estate at September 30, 2001.
On a linked quarter basis from June 30, 2002 to September 30, 2002, return on
average assets increased to 1.54 percent from 1.43 percent, return on average
equity decreased to 19.43 percent from 20.16 percent and the efficiency ratio on
a cash basis improved to 48.74 percent from 52.04 percent.
At September 30, 2002, Prosperity had $1.690 billion in total assets, $647.715
million in loans, $1.468 billion in deposits, and more than 100,000 deposit and
loan accounts. Assets, loans and deposits at September 30, 2002 grew by 37.2
percent, 54.4 percent and 34.4 percent respectively, compared with their levels
at September 30, 2001.
Results of Operations for the nine months ended September 30, 2001
Net income for the nine months ended September 30, 2002 was $14.939 million or
$0.89 per diluted common share, compared with net income, excluding
merger-related expenses, of $10.545 million or $0.64 per diluted common share,
for the same period in 2001, an increase of 41.7 percent and 39.1 percent,
respectively. Prosperity's annualized return on average assets and return on
average common shareholders' equity for the nine months ended September 30, 2002
was 1.46 percent and 19.64 percent, respectively. The company's efficiency ratio
was 50.99 percent for the nine months ended September 30, 2002.
Net interest income for the nine months ended September 30, 2002 increased 32.4
percent, to $38.802 million from $29.297 million during the same period in 2001.
The increase was attributable primarily to a 16.6 percent increase in average
earning assets and an increase in the net interest margin from 3.74 percent to
4.19 percent.
Non-interest income increased 17.5 percent to $7.380 million for the nine months
ended September 30, 2002 compared with the same period in 2001. Non-interest
expenses (excluding merger-related expenses) increased $3.784 million or 18.5
percent as compared with the same period of 2001.
3
Outlook
"In light of our continued strong performance, the outlook for the successful
integration of our recent acquisitions and in spite of our expectation for
contracting net interest margins, we have, again, increased our net income
target range for 2002 to $1.20 to $1.22 per diluted common share and have set
our 2003 net income target range at $1.32 to $1.34 per diluted common share,"
remarked David Hollaway, Chief Financial Officer.
Cash Dividend Increased 13.6 Percent
Ned S. Holmes, Chairman of the Board announced that the Board of Directors voted
to increase the regular annual cash dividend to $0.25 from $0.22 per common
share beginning with the first quarter 2003 dividend, scheduled to be paid in
early April, 2003. "We are pleased to be able to reward our shareholders with
this increased dividend," remarked Holmes.
Conference Call
Prosperity has scheduled a conference call to discuss their Third Quarter
Earnings Announcement for 11:00 AM, Central Time on Monday, October 21, 2002.
Participants will include David Zalman, President and Chief Executive Officer;
Tim Timanus, Executive Vice President and Chief Operating Officer; David
Hollaway, CPA, Chief Financial Officer; and Dan Rollins, Senior Vice President.
Interested parties may listen live over the Internet at www.prosperitybanktx.com
or by calling 1-800-451-7724.
Acquisition of The First State Bank
The previously announced acquisition of The First State Bank, Needville, Texas
was completed on July 12, 2002. Prosperity Bank's existing Needville Banking
Center has relocated into the former First State Bank location and construction
has begun on a new first class banking facility to better serve residents in and
around Needville. The new facility is expected to open in early 2003.
Acquisition of Paradigm Bank Texas
The acquisition of Paradigm Bank Texas was completed on September 1, 2002. The
transaction solidified Prosperity's presence in the greater Houston metropolitan
market, and was a logical extension of Prosperity's geographic franchise across
Southeast Texas. Under terms of the deal, Prosperity issued approximately 2.58
million shares of its common stock for all outstanding shares of Paradigm.
Paradigm was privately held and operated a total of eleven (11) banking offices
- - six (6) in metropolitan Houston and five (5) in the nearby Southeast Texas
cities of Dayton, Galveston, Mont Belvieu, and Winnie. At June 30, 2002,
Paradigm had total assets of $250.3 million, loans of $175.3 million, deposits
of $219.7 million and shareholders' equity of $19.3 million.
4
Acquisition of Bank of the Southwest
Bank of the Southwest, Dallas, Texas became a subsidiary of Prosperity on
October 1, 2002. The acquisition provides Prosperity with a foot hold in the
growing North Texas market. Bank of the Southwest operates two (2) banking
offices in Dallas, Texas. As of September 30, 2002, Bank of the Southwest
reported total assets of $121.9 million, loans of $58.7 million, deposits of
$108.9 million and shareholders' equity of $12.6 million.
Proposed Acquisition of The First National Bank of Bay City
The company anticipates a November 1/st/ closing on its acquisition of The First
National Bank of Bay City. Prosperity has received all necessary regulatory
approvals and the transaction has been approved by the shareholders' of The
First National Bank of Bay City.
The First National Bank of Bay City is privately held and operates one (1)
office in Bay City, Texas, which will be consolidated (upon completion of the
transaction) with Prosperity Bank's full service banking center in Bay City,
Texas. As of September 30, 2002, The First National Bank of Bay City had total
assets of $27.1 million, loans of $8.3 million, deposits of $23.2 million and
shareholders' equity of $3.6 million. Upon the completion of the transaction,
Prosperity will become the largest bank in Matagorda County in terms of deposits
and loans.
Prosperity Bancshares, Inc.(SM), formed in 1983, is a $1.8 billion multi-bank
holding company headquartered in Houston, Texas. 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 at www.prosperitybanktx.com and www.bankofthesouthwest.com,
Trust and Financial Services, Retail Brokerage Services, MasterMoney Debit
Cards, and 24 hour voice response banking. The company currently operates
forty-two (42) full service banking locations in fifteen contiguous counties
including the Greater Houston Metropolitan Area, and in Dallas. (Angleton, Bay
City, Beeville, Clear Lake, Cleveland, Cuero, Cypress, Dayton, Dallas - Camp
Wisdom, Dallas - Westmoreland, East Bernard, Edna, El Campo, Fairfield,
Galveston, Goliad, Hitchcock, Houston - Aldine, Houston - Bellaire, Houston
- -CityWest, Houston - Copperfield, Houston - Downtown, Houston - Gladebrook,
Houston - Highway 6, Houston - Medical Center, Houston - Memorial, Houston -
Post Oak, Houston - River Oaks, Houston - Tanglewood, Houston - Waugh Drive,
Houston - Woodcreek, Liberty, Magnolia, Mathis, Mont Belvieu, Needville,
Palacios, Sweeny, Victoria, West Columbia, Wharton and Winnie.)
- - -
Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: The statements contained in this release which are not historical facts
contain forward-looking information with respect to plans, projections or future
performance of Prosperity Bancshares, Inc.(SM) and its subsidiaries.
Forward-looking statements, within the meaning of Section 21E of the Securities
Exchange Act of 1934, may have been made in this document. Prosperity's results
may differ materially from those in the forward-looking statements for a variety
of reasons, including 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 weather. These
factors are more fully described in Prosperity Bancshares, Inc.'s filings with
the Securities and Exchange Commission.
Copies of Prosperity Bancshares, Inc.'s(SM) SEC filings may be downloaded from
the Internet at no charge from FreeEDGAR, a real-time access to SEC filings site
located at www.freeedgar.com.
5
Prosperity Bancshares, Inc.(SM)
Financial Highlights (Unaudited)
(Dollars in thousands)
Three Months Ended Nine Months Ended
Sep 30, 2002 Sep 30, 2001 Sep 30, 2002 Sep 30, 2001
---------------------------------------------------------------------------
Balance Sheet Averages
Investment securities $ 808,187 $ 663,089 $ 794,155 $ 639,579
Total loans 537,466 427,984 470,374 420,401
Fed funds sold and
other earnings 16,459 30,919 13,442 36,423
------------ ----------- ----------- -----------
Total earning assets 1,362,112 1,121,992 1,277,971 1,096,403
Allowance for credit losses (7,307) (5,579) (6,621) (5,568)
Cash and due from banks 35,381 28,333 29,772 29,087
Core Deposit Intangibles (CDI)
and Goodwill 37,948 23,147 28,443 23,369
Other assets 37,855 27,004 33,225 28,734
------------ ----------- ----------- -----------
Total assets $ 1,465,989 $ 1,194,897 $ 1,362,790 $ 1,172,025
============ =========== =========== ===========
Non-interest bearing deposits $ 232,450 $ 177,296 $ 200,784 $ 180,376
Interest bearing deposits 1,063,082 885,064 1,007,790 865,615
------------ ----------- ----------- -----------
Total deposits 1,295,532 1,062,360 1,208,574 1,045,991
Fed funds purchased & other
interest bearing liabilities 15,668 13,563 16,764 17,915
Other liabilities 10,409 8,413 8,691 8,354
Company obligated trust
preferred securities of
subsidiary trusts 28,000 24,500 27,333 16,167
Shareholders' equity 116,380 86,061 101,428 83,598
------------ ----------- ----------- -----------
Total liabilities and equity $ 1,465,989 $ 1,194,897 $ 1,362,790 $ 1,172,025
============ =========== =========== ===========
6
Prosperity Bancshares, Inc.(SM)
Financial Highlights (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
Sep 30, 2002 Sep 30, 2001 Sep 30, 2002 Sep 30, 2001
----------------------------------------------------------
Income Statement Data
Interest on loans $ 9,828 $ 8,839 $ 25,945 $ 26,578
Interest on securities 10,508 9,988 31,785 29,625
Interest on fed funds
sold and other earning assets 83 274 175 1,361
--------- -------- -------- --------------
Total interest income 20,419 19,101 57,905 57,564
Interest expense 6,464 8,841 19,103 28,267
--------- -------- -------- --------------
Net interest income (A) 13,955 10,260 38,802 29,297
Provision for credit losses 120 50 360 50
--------- -------- -------- --------------
Net interest income after
provision for loan losses 13,835 10,210 38,442 29,247
Service charges on
deposit accounts 2,632 1,924 6,491 5,501
Other income 261 263 889 779
--------- -------- -------- --------------
Total non-interest income 2,893 2,187 7,380 6,280
Salaries and benefits 3,954 3,247 11,268 9,759
Core Deposit Intangible (CDI)
and Goodwill amortization 26 341 30 1,022
One time merger
related expenses 0 0 0 2,425
Minority interest trust
preferred securities 524 475 1,518 1,051
Other expenses 4,002 3,005 11,477 8,677
--------- -------- -------- --------------
Total non-interest expenses 8,506 7,068 24,293 22,934
Net earnings before taxes 8,222 5,329 21,529 12,593
Federal income taxes 2,569 1,598 6,590 3,625
--------- -------- -------- --------------
Net earnings available
to common shareholders $ 5,653 $ 3,731 $ 14,939 $ (B) 8,968
========= ======== ======== ==============
Basic earnings per share $ 0.33 $ 0.23 $ 0.90 $ 0.56
Diluted earnings per share $ 0.32 $ 0.23 $ 0.89 $ (B) 0.55
(A) Net interest income on a tax equivalent basis would be $14,399 and $10,763
for the three months ended September 30, 2002 and September 30, 2001,
respectively and $40,189 and $30,779 for the nine months ended September 30,
2002 and September 30, 2001, respectively.
(B) Excluding merger-related expenses, net earnings available to common
shareholders would have been $10,545 or $0.64 per diluted common share for the
nine months ended September 30, 2001.
7
Prosperity Bancshares, Inc.(SM)
Financial Highlights (Unaudited)
(Dollars and share amounts in thousands, except per share data)
Three Months Ended Nine Months Ended
Sep 30, 2002 Sep 30, 2001 Sep 30, 2002 Sep 30, 2001
---------------------------------------------------------------------
Common Share and Other Data
Employees - FTE 449 303 449 303
Book value per share $ 7.92 $ 5.49 $ 7.92 $ 5.49
Tangible book value per share $ 4.58 $ 4.08 $ 4.58 $ 4.08
Period end shares outstanding 18,886 16,198 18,886 16,198
Weighted average shares
outstanding (basic) 17,097 16,194 16,526 16,162
Weighted average shares
outstanding (diluted) 17,421 16,526 16,852 16,486
Non-accrual loans $ 34 $ 489 $ 34 $ 489
Accruing loans 90 days or
more days past due 168 50 168 50
Restructured loans 0 0 0 0
------- ------- ------- -------
Total non-performing loans 202 539 202 539
Other real estate 587 0 587 0
------- ------- ------- -------
Total non-performing assets $ 789 $ 539 $ 789 $ 539
Allowance for credit losses at
end of period $ 8,173 $ 5,518 $ 8,173 $ 5,518
Net charge-offs $ 128 $ 125 $ 29 $ 56
8
Prosperity Bancshares, Inc.(SM)
Financial Highlights (Unaudited)
Three Months Ended Nine Months Ended
Sep 30, 2002 Sep 30, 2001 Sep 30, 2002 Sep 30, 2001
-------------------------------------------------------------
Performance Ratios
Return on average
assets (annualized) 1.54% 1.25% 1.46% (C) 1.02%
Return on average
common equity (annualized) 19.43% 17.34% 19.64% (C) 14.30%
Net interest margin
(tax equivalent) (annualized) 4.23% 3.84% 4.19% 3.74%
Efficiency ratio (D) 48.90% 55.07% 50.99% (C) 63.38%
Diluted earnings per share $ 0.32 $ 0.23 $ 0.89 (C) $ 0.55
Asset Quality Ratios
Non-performing assets to loans
and other real estate 0.12% 0.13% 0.12% 0.13%
Net charge-offs
to average loans 0.02% 0.03% 0.01% 0.01%
Allowance for credit losses to
total loans 1.26% 1.32% 1.26% 1.32%
(C) Excluding merger-related expenses, ROAA, ROAE, Efficiency Ratio, and Diluted
Earnings Per Common Share, would have been 1.20%, 16.82%, 56.36% and $0.64,
respectively, for the nine months ended September 30, 2001.
(D) Calculated by dividing total non-interest expense (excluding securities
losses and credit loss provisions) by net interest income plus non-interest
income. Note: The trust preferred securities expense is treated as interest
expense for this calculation. Additionally, taxes are not part of this
calculation.
9
Prosperity Bancshares, Inc.(SM)
Financial Highlights (September 30, 2002 and September 30, 2001 Unaudited)
(Dollars in thousands)
Sep 30, 2002 Sep 30, 2001 Dec 31, 2001
-----------------------------------------------
Balance Sheet Data (at period end)
Investment securities $ 885,559 $ 725,034 $ 753,322
Total loans 647,715 419,557 424,400
Fed funds sold and
other earning assets 6,396 12,883 913
----------- ----------- ------------
Total earning assets 1,539,670 1,157,474 1,178,635
Allowance for credit losses (8,173) (5,518) (5,985)
Cash and due from banks 50,242 28,066 41,005
Core Deposit Intangibles (CDI)
and Goodwill 63,129 22,981 22,641
Other assets 45,241 28,980 27,029
----------- ----------- ------------
Total assets $ 1,690,109 $ 1,231,983 $ 1,263,325
=========== =========== ============
Demand deposits $ 303,612 $ 182,347 $ 188,832
Interest bearing deposits 1,163,947 909,314 934,565
----------- ----------- ------------
Total deposits 1,467,559 1,091,661 1,123,397
Fed funds purchased and other
interest bearing liabilities 28,309 13,465 18,080
Other liabilities 11,669 10,854 5,123
Company obligated trust
preferred securities of
subsidiary trusts 33,000 27,000 27,000
Shareholders' equity 149,572 89,003 88,725
----------- ----------- ------------
Total liabilities and equity $ 1,690,109 $ 1,231,983 $ 1,262,325
=========== =========== ============
10
Prosperity Bancshares, Inc.(SM)
Financial Highlights(Unaudited)
Three Months Ended Nine Months Ended
Sep 30, 2002 Sep 30, 2001 Sep 30, 2002 Sep 30, 2001
---------------------------------------------------------------------
Cash Basis Data
(Excluding core deposit intangible and
goodwill amortization and related tax expense)
Return on average
assets (annualized) 1.55% 1.35% 1.46% (F) 1.12%
Return on average common
equity (annualized) 19.52% 18.77% 19.68% (F) 15.69%
Efficiency Ratio (E) 48.74% 52.05% 50.92% (F) 60.42%
Diluted cash earnings per share $ 0.33 $ 0.25 $ 0.89 (F) $ 0.61
Common Stock Market Price
High $ 19.95 $ 13.94 $ 19.95 $ 13.94
Low $ 15.00 $ 10.75 $ 13.48 $ 8.75
Period end market price $ 17.03 $ 12.85 $ 17.03 $ 12.85
(E) Efficiency Ratio adjusted for core deposit intangible and goodwill
amortization expense only.
(F) Excluding merger-related expenses, ROAA (cash basis), ROAE (cash basis),
Efficiency Ratio (cash basis), and Diluted Earnings Per Common Share (cash
basis), would have been 1.30%, 18.20%, 53.40% and $0.69, respectively, for
the nine months ended September 30, 2001.
11
Prosperity Bancshares, Inc.(SM)
Financial Highlights (Unaudited)
Three Months Ended
Comparative Quarterly Asset Sep 30, 2002 Jun 30, 2002 Mar 31, 2002 Dec 31, 2001
--------------------------------------------------------------
Quality, Performance & Capital Ratios
Return on average
assets (annualized) 1.54% 1.43% 1.40% 1.28%
Return on average
common equity (annualized) 19.43% 20.16% 19.36% 17.64%
Return on average
tangible equity (annualized) 28.83% 27.20% 25.60% 23.60%
Net interest margin
(tax equivalent) (annualized) 4.23% 4.21% 4.15% 4.05%
Efficiency ratio 48.90% 52.06% 52.34% 51.69%
Efficiency ratio (cash basis) 48.74% 52.04% 52.34% 49.11%
Non-performing assets to loans
and other real estate 0.12% 0.09% 0.02% 0.00%
Net charge-offs /(recoveries)
to average loans 0.02% (0.02%) (0.01%) 0.04%
Allowance for credit losses to
total loans 1.26% 1.43% 1.46% 1.41%
Tier 1 Risk-based 15.44% 17.03% 18.66% 18.34%
Total Risk-based 16.52% 18.24% 19.85% 19.52%
Tier 1 Leverage 8.31% 7.37% 7.68% 7.57%
Equity to Assets 8.85% 7.16% 7.19% 7.03%
12
Prosperity Bancshares, Inc.(SM)
Supplemental Financial Data
(Dollars in thousands)
Bank First
of the National
Southwest (G) Bank (H)
Dallas, Texas Bay City, Texas
Sep 30, 2002 Sep 30, 2002
-------------------------------------
Balance Sheet Data (at period end)
Investment securities $ 47,419 $ 12,078
Total loans 58,739 8,331
Fed funds sold and
other earning assets 6,000 3,667
---------- ----------
Total earning assets 112,158 24,076
Allowance for credit losses (884) (108)
Cash and due from banks 8,283 1,835
Other assets 2,310 1,253
---------- ----------
Total assets $ 121,867 $ 27,056
========== ==========
Demand deposits $ 21,102 $ 6,486
Interest bearing deposits 87,809 16,738
---------- ----------
Total deposits 108,911 23,224
Other liabilities 394 283
Shareholders' equity 12,562 3,549
---------- ----------
Total liabilities and equity $ 121,867 $ 27,056
========== ==========
(G) Bank of the Southwest, Dallas, Texas, was acquired by Prosperity on October
1, 2002. The financial results of Bank of the Southwest are not included in
Prosperity's quarter ending financial report. This information is being provided
for informational purposes only.
(H) The First National Bank, Bay City, Texas, is scheduled to be acquired by
Prosperity on November 1, 2002. The financial results of The First National Bank
are not included in Prosperity's quarter ending financial report. This
information is being provided for informational purposes only.
13
Prosperity Bancshares, Inc.(SM)
Supplemental Financial Data
(Dollars in thousands)
Three Months Ended Sep 30, 2002
YIELD ANALYSIS Average
Balance Interest Yield
-------------------------------------------------------
Interest Earning Assets:
Federal funds sold $ 16,459 $ 83 2.02%
Investment securities (tax equivalent) 808,187 10,508 5.20%
Loans 537,466 9,828 7.31%
----------- ----------- -----
Total Interest Earning Assets 1,362,112 $ 20,419 6.00%
=========== =====
Non-interest earning assets 111,184
Allowance for credit losses (7,307)
-----------
Total Assets $ 1,465,989
===========
Interest Bearing Liabilities:
Interest bearing demand deposits $ 238,636 $ 775 1.30%
Savings and money market deposits 311,421 1,338 1.72%
Certificates and other time deposits 513,025 4,132 3.22%
Federal funds purchased and other borrowings 15,668 219 5.59%
----------- ----------- -----
Total Interest Bearing Liabilities 1,078,750 $ 6,464 2.40%
=========== =====
Non-interest Bearing Liabilities:
Non-interest bearing demand deposits 232,450
Trust preferred securities 28,000
Other liabilities 10,409
-----------
Total liabilities 1,349,609
Shareholders' equity 116,380
-----------
Total Liabilities and Shareholders' Equity $ 1,465,989
===========
Net Interest Income & Margin 13,955 4.10%
Net Interest Income & Margin (tax equivalent) 14,399 4.23%
- - -
14