Prosperity Bancshares (NASDAQ:PRSP)
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- 2Q09 Earnings Per Share of $0.57 (diluted) - Net Interest Margin (tax equivalent) increases to 4.04% - Allowance for Credit Losses to Total Loans increased to 1.23% - Tangible Common Equity Ratio increased to 4.84% - Non-Performing Assets remain low at 0.26% of Average Earning Assets
HOUSTON, July 17 /PRNewswire-FirstCall/ -- Prosperity Bancshares, Inc. (NASDAQ:PRSP), the parent company of Prosperity Bank , reported net income for the quarter ended June 30, 2009 of $26.510 million or $0.57 per diluted common share, an increase in net income of $3.073 million or 13.1%, compared with $23.437 million or $0.52 per diluted common share for the same period in 2008.
"While the banking industry continues to face significant headwinds, I am pleased to report strong earnings by our company," commented David Zalman, Chairman and Chief Executive Officer. "We continue to believe our decision last fall not to participate in the U.S. Treasury Department's TARP program was the right decision for our shareholders and our customers and expect that the strength of our bank will lead to future opportunities."
"During the quarter, we continued to reduce our exposure to construction and development loans while our team of professional bankers continued to attract core deposit customers across the state of Texas. Additionally, excluding recently acquired locations, we experienced linked quarter deposit growth in excess of 16%," continued Zalman.
Prosperity's management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Specifically, Prosperity reviews tangible book value per share, return on average tangible common equity and the tangible equity to tangible assets ratio. Prosperity has included in this Earnings Release information relating to these non-GAAP financial measures for the applicable periods presented. Please refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures.
Results of operations for the three months ended June 30, 2009
For the three months ended June 30, 2009, net income was $26.510 million compared with $23.437 million for the same period in 2008. Net income per diluted common share was $0.57 for the three months ended June 30, 2009 and $0.52 for the same period in 2008. Returns on average assets, average common equity and average tangible common equity for the three months ended June 30, 2009 were 1.20%, 8.18% and 27.98%, respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale of securities and assets) was 48.98% for the three months ended June 30, 2009.
Net interest income before provision for credit losses for the quarter ended June 30, 2009 increased 39.9% to $75.521 million compared with $53.971 million during the same period in 2008. The increase was attributable primarily to a 40.8% increase in average earning assets primarily due to the Franklin transaction. The net interest margin on a tax equivalent basis decreased to 4.04% for the three months ended June 30, 2009 compared with 4.10% for the same period in 2008.
On a linked quarter basis, the tax equivalent net interest margin increased six basis points to 4.04% for the three months ended June 30, 2009 from 3.98% reported for the three months ended March 31, 2009 as a result of multiple factors including lower deposit pricing.
Non-interest income increased $2.067 million or 15.8% to $15.133 million for the three months ended June 30, 2009 compared with $13.066 million for the same period in 2008. The increase was mainly attributable to an increase in service charges on deposit accounts related to accounts assumed from the FDIC as part of the Franklin Bank transaction.
Non-interest expense increased $13.440 million or 43.6% to $44.300 million for the second quarter of 2009 compared with $30.860 million for the second quarter of 2008. The increase was attributable to the increased expenses related to operating the additional banking offices that were acquired in the Franklin Bank transaction and increased FDIC insurance premiums.
Prosperity's FDIC insurance premium cost for 2008 was approximately $1.4 million. The expected full year 2009 FDIC insurance premium (excluding any one-time assessments) is currently projected to be between $8.0 million and $9.0 million based upon deposit balances at June 30, 2009. Additionally, the FDIC imposed an emergency special assessment as of June 30, 2009, which for Prosperity will total approximately $4.2 million in pre-tax expense or $0.06 per diluted common share after tax.
Average loans increased 8.4% or $269.144 million to $3.472 billion for the quarter ended June 30, 2009 compared with $3.203 billion for the same period of 2008. Linked quarter average loans decreased 1.6% or $57.781 million from $3.530 billion at March 31, 2009. Average deposits increased 43.8% or $2.207 billion to $7.246 billion for the quarter ended June 30, 2009 compared with $5.040 billion for the same period of 2008. Linked quarter average deposits decreased 0.4% or $31.015 million from $7.277 billion at March 31, 2009.
Loans at June 30, 2009 were $3.451 billion, an increase of $137.991 million or 4.2%, compared with $3.313 billion at June 30, 2008. Loans decreased 1.4% or $49.981 million on a linked quarter basis compared with loans of $3.501 billion at March 31, 2009. As reflected in the table below, linked quarter loans for the second quarter of 2009 were impacted by the loans acquired from the FDIC as a part of the Franklin Bank transaction in November 2008 and the loans acquired as a part of the acquisition of 1st Choice in the second quarter of 2008. Excluding the loans acquired in these transactions, loans decreased 0.3%.
Deposits at June 30, 2009 were $7.258 billion, an increase of $1.961 billion or 37.0%, compared with $5.297 billion at June 30, 2008. Linked quarter deposits increased $51.016 million or 0.7% from $7.207 billion at March 31, 2009. As reflected in the table below, linked quarter deposits for the second quarter of 2009 were impacted by the deposits assumed from the FDIC as part of the Franklin Bank transaction and the deposits assumed as a part of the acquisition of 1st Choice. Excluding the deposits assumed in these transactions, linked quarter deposits increased 16.2% on an annualized basis and deposits increased 5.6% from June 30, 2008.
Balance Sheet Data (at period June 30, 2009 Mar 31, 2009 June 30, 2008
end)
------------- ------------ -------------
(In thousands) (Unaudited) (Unaudited) (Unaudited)
Loans:
Acquired with 1st
Choice 144,771 155,671 184,526
Acquired from FDIC (related
to Franklin Bank) 282,733 312,793 0
All other 3,023,815 3,032,836 3,128,802
--------- --------- ---------
Total Loans $3,451,319 $3,501,300 $3,313,328
========== ========== ==========
Deposits:
Assumed with 1st
Choice Bank 237,953 242,116 287,996
Assumed from FDIC (related to
Franklin Bank) 1,729,657 1,880,823 0
All other 5,290,285 5,083,940 5,008,638
--------- --------- ---------
Total Deposits $7,257,895 $7,206,879 $5,296,634
========== ========== ==========
At June 30, 2009, construction loans totaled $613.386 million, consisting of approximately $178 million of single family residential construction loans; $86 million of land development loans; $96 million of raw land loans; $101 million of residential lot loans; $50 million of commercial lot loans; and $102 million of commercial construction and other construction loans. This is a decrease of $29.765 million from construction loans at March 31, 2009.
At June 30, 2009, Prosperity had $8.839 billion in total assets, $3.451 billion in loans, and $7.258 billion in deposits. Assets, loans and deposits at June 30, 2009 increased by 30.1%, 4.2% and 37.0%, respectively, compared with their level at June 30, 2008.
Results of operations for the six months ended June 30, 2009
For the six months ended June 30, 2009, net income was $51.988 million compared with $46.375 million for the same period in 2008. Net income per diluted common share was $1.13 for the six months ended June 30, 2009 compared with $1.04 for the same period in 2008. Returns on average assets, average common equity and average tangible common equity for the six months ended June 30, 2009 were 1.17%, 8.12% and 28.39%, respectively. Prosperity's efficiency ratio was 49.22% for the six months ended June 30, 2009.
Net interest income before provision for credit losses for the six months ended June 30, 2009 increased $43.633 million or 41.2%, to $149.599 million compared with $105.966 million during the same period in 2008. The increase was attributable primarily to a 43.0% increase in average earning assets.
Non-interest income increased $4.405 million or 17.1% to $30.150 million for the six months ended June 30, 2009 compared with $25.745 million for the same period in 2008. The increase was mainly attributable to an increase in service charges on deposit accounts related to accounts assumed from the FDIC as part of the Franklin Bank transaction and deposit accounts assumed from the 1st Choice acquisition.
Non-interest expense increased $28.343 million or 47.3% to $88.323 million for the first six months of 2009 compared with $59.980 million for the same period in 2008. The increase was attributable to the increased expenses related to operating the additional banking offices that were acquired in the Franklin Bank transaction, the 1st Choice acquisition and FDIC insurance premiums.
The provision for credit losses was $13.025 million for the six months ended June 30, 2009 compared to $2.167 million for the six months ended June 30, 2008. Net charge offs were $7.383 million for the six months ended June 30, 2009 compared to $2.806 million for the six months ended June 30, 2008.
Asset Quality
Non-performing assets totaled $19.587 million or 0.26% of average earning assets at June 30, 2009 compared with $11.651 million or 0.22% of average earning assets at June 30, 2008 and $12.525 million or 0.16% of average earnings assets at March 31, 2009. The allowance for credit losses was 1.23% of total loans at June 30, 2009 compared with 1.03% at June 30, 2008 and 1.12% of total loans at March 31, 2009.
Non-performing assets June 30, 2009 Mar 31, 2009 Dec 31, 2008
(In thousands) ------------- ------------ ------------
Amount # Amount # Amount #
Commercial $955 28 $1,207 24 $1,491 16
Construction 10,969 38 9,219 46 9,252 36
1-4 family (including
home equity) 1,353 22 1,110 17 1,325 19
Commercial real estate
(including multi-family) 6,157 9 859 5 2,014 8
Agriculture and
agriculture real estate 0 0 8 1 30 3
Consumer 153 11 122 11 250 15
Other 0 0 0 0 6 1
--- --- --- --- --- ---
Total $19,587 108 $12,525 104 $14,368 98
======= === ======= === ======= ===
Three Months Three Months Twelve Months
Ended Ended Ended
Net Charge-offs June 30, 2009 Mar 31, 2009 Dec 31, 2008
(In thousands) ------------- ------------ ------------
Commercial $307 $761 $2,489
Construction 1,185 2,387 3,190
1-4 family (including
home equity) 510 117 351
Commercial RE
(including
multi-family) 1,091 0 (110)
Agriculture (1) 23 327
Consumer 434 569 1,374
--- --- -----
Total $3,526 $3,857 $7,621
====== ====== ======
The provision for credit losses was $6.9 million for the three months ended June 30, 2009 and $1.0 million for the three months ended June 30, 2008. Prosperity's loan loss reserve model called for increased provisioning in the second quarter due to increased charge-offs resulting from a general weakening of the economy. Net charge offs were $3.526 million for the three months ended June 30, 2009 and $1.163 million for the three months ended June 30, 2008.
Conference Call
Prosperity's management team will host a conference call on Friday, July 17, 2009 at 10:30 a.m. Eastern Daylight Time (9:30 a.m. Central Daylight Time) to discuss Prosperity's second quarter earnings. Individuals and investment professionals may participate in the call by dialing 1-800-895-4790, the reference code is PBTX.
Alternatively, individuals may listen to the live webcast of the presentation by visiting Prosperity's website at http://www.prosperitybanktx.com/. The webcast may be accessed directly from Prosperity's Home page under News and Events.
Assumption of deposits and acquisition of certain assets from the FDIC as receiver for Franklin Bank, SSB
On November 7, 2008, Prosperity Bank paid a deposit premium of approximately $60.918 million to assume approximately $3.6 billion of deposits, including all uninsured deposits, from the FDIC, acting in its capacity as receiver for Franklin Bank. The FDIC entered into a purchase and assumption agreement with Prosperity Bank, which paid a premium to ensure that all deposits of Franklin Bank, both insured and uninsured, were transferred to Prosperity Bank . Under the terms of the purchase and assumption agreement, Prosperity Bank acquired certain assets from the FDIC, including approximately $350 million in US Treasury and Agency Securities and approximately $350 million in performing loans. The remaining net proceeds were predominately invested in US Agency Securities.
While Franklin Bank operated forty-five (45) full service banking offices, Prosperity Bank continues to operate thirty-three (33) of these locations and has consolidated the remainder with other nearby Prosperity locations.
Acquisition of 1st Choice Bancorp, Inc.
On June 1, 2008, Prosperity completed its previously announced acquisition of 1st Choice Bancorp, Inc. and its wholly owned subsidiary, 1st Choice Bank. 1st Choice Bancorp, Inc. operated two (2) banking offices in Houston, Texas, with one location in South Houston and another in the Heights area, which was consolidated with Prosperity's Heights location and is located in 1st Choice's Heights banking office. As of May 31, 2008, 1st Choice Bancorp reported total assets of approximately $314.9 million, loans of approximately $192.7 million, deposits of approximately $285.2 million and stockholders' equity of approximately $26.4 million.
In connection with the acquisition, Prosperity issued 1,757,757 shares of its common stock and paid approximately $18.758 million in cash for all outstanding shares of 1st Choice Bancorp.
Prosperity Bancshares, Inc.
Prosperity Bancshares, Inc. , an $8.8 billion Houston, Texas based regional financial holding company, formed in 1983, operates under a community banking philosophy and seeks to develop broad customer relationships based on service and convenience. Prosperity offers a variety of traditional loan and deposit products to its customers, which consist primarily of small and medium sized businesses and consumers. In addition to established banking products, Prosperity offers a complete line of services including: Internet Banking services at http://www.prosperitybanktx.com/, Retail Brokerage Services, MasterMoney Debit Cards, and 24 hour voice response banking. Prosperity currently operates one hundred fifty-eight (158) full service banking locations; fifty-one (51) in the Houston area; twenty-seven (27) in the South Texas area including Corpus Christi and Victoria; twenty-four (24) in the Dallas/Fort Worth area; twenty (20) in the East Texas area; twenty-seven (27) in the Central Texas area including Austin and San Antonio; and nine (9) in the Bryan/College Station area.
Central Texas Area -
Austin -
Allandale
Cedar Park
Congress
183
Lakeway
Liberty Hill
Northland
Oak Hill
Parmer Lane
Research Blvd
Rollingwood
Slaughter Lane
Bryan/College Station -
Bryan
Bryan-East
Bryan-North
College Station
Greens Prairie
Wellborn Road
Rock Prairie
Other Central Texas Locations -
Bastrop
Caldwell
Dime Box
Dripping Springs
Elgin
Flatonia
Georgetown
Kingsland
La Grange
Lexington
Navasota
New Braunfels
Round Rock
San Antonio
Schulenburg
Smithville
Weimar
Dallas/Fort Worth Area -
Dallas -
Abrams Centre
Balch Springs
Camp Wisdom
Cedar Hill
Central Expressway
Frisco
Frisco-West
Kiest
Preston Road
Red Oak
The Colony
Turtle Creek
Westmoreland
Fort Worth -
Haltom City
Keller
Roanoke
Stockyards
Other Dallas/Fort Worth Locations -
Azle
Ennis
Gainesville
Mesquite
Muenster
Sanger
Waxahachie
East Texas Area -
Athens
Athens-South
Blooming Grove
Canton
Carthage
Corsicana
Crockett
Eustace
Grapeland
Gun Barrel City
Jacksonville
Kerens
Longview
Mount Vernon
Palestine
Rusk
Seven Points
Tyler
Tyler-University
Winnsboro
Houston Area -
Houston -
Aldine
Bellaire
Clear Lake
Copperfield
Cypress
Downtown
Fairfield
Gessner
Gladebrook
Harrisburg
Heights
Highway 6 West
Hillcroft
Little York
Medical Center
Memorial Drive
Pasadena
Pecan Grove
River Oaks
Sugar Land
SW Medical Center
Tanglewood
Uptown
Waugh Drive
Westheimer
Woodcreek
Other Houston Area
Locations -
Angleton
Beaumont
Cinco Ranch
Cleveland
East Bernard
Edna
El Campo
Dayton
Galveston
Groves
Hempstead
Hitchcock
Katy
Liberty
Magnolia
Mont Belvieu
Nederland
Needville
Sweeny
Tomball
Waller
West Columbia
Wharton
Winnie
Wirt
South Texas Area -
Corpus Christi -
Airline
Carmel
Northwest
Saratoga
Water Street
Other South Texas Locations -
Alice
Aransas Pass
Bay City
Beeville
Cuero
Goliad
Gonzales
Hallettsville
Kingsville
Mathis
Padre Island
Palacios
Pleasanton
Port Lavaca
Portland
Rockport
Seguin
Sinton
Victoria
Victoria-North
Yoakum
Yorktown
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains, and the remarks by Prosperity's management on the conference call may contain, forward-looking statements within the meaning of the securities laws that are based on current expectations, assumptions, estimates and projections about Prosperity 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 Prosperity's Annual Report on Form 10-K for the year ended December 31, 2008 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 from http://www.prosperitybanktx.com/.
Prosperity Bancshares, Inc. (R)
Financial Highlights
(Dollars and share amounts in thousands, except per share data)
Three Months Ended
June 30, Mar 31, Dec 31, Sept 30,
2009 2009 2008 2008
Selected Earnings (Unaudited) (Unaudited) (Unaudited) (Unaudited)
and Per
Share Data
Total interest
income $102,768 $105,566 $96,588 $84,846
Total interest
expense 27,247 31,488 32,631 27,040
------ ------ ------ ------
Net interest
income 75,521 74,078 63,957 57,806
Provision for
credit losses 6,900 6,125 6,000 1,700
----- ----- ----- -----
Net interest
income after
provision for
credit losses 68,621 67,953 57,957 56,106
Total
non-interest
income 15,133 15,017 13,508 13,117
Total
non-interest
expense 44,300 44,023 37,586 46,230
------ ------ ------ ------
Net income before
taxes 39,454 38,947 33,879 22,993
Federal income
taxes 12,944 13,469 11,194 7,546
------ ------ ------ -----
Net income $26,510 $25,478 $22,685 $15,447
======= ======= ======= =======
Basic earnings
per share $0.57 $0.55 $0.49 $0.34
Diluted earnings
per share $0.57 $0.55 $0.49 $0.33
Period end shares
outstanding 46,109 46,100 46,080 46,072
Weighted average
shares outstanding
(basic) 46,105 46,086 46,078 46,065
Weighted average
shares outstanding
(diluted) 46,225 46,139 46,276 46,302
Prosperity Bancshares, Inc. (R)
Financial Highlights
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Balance Sheet Averages (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Total loans $3,472,449 $3,203,305 $3,501,488 $3,173,240
Investment securities 3,964,766 2,131,370 3,997,278 2,054,440
Federal funds sold and
other temporary
investments 122,358 33,803 94,631 82,702
------- ------ ------ ------
Total earning assets 7,559,573 5,368,478 7,593,397 5,310,382
Allowance for credit
losses (39,249) (32,813) (38,240) (32,381)
Cash and due from banks 133,739 131,015 145,232 138,354
Goodwill 875,236 785,604 875,601 772,774
Core Deposit Intangibles
(CDI) 41,518 43,461 39,314 44,131
Other real estate 13,524 8,581 10,288 10,002
Fixed assets, net 150,475 123,876 137,086 123,705
Other assets 99,169 111,062 100,472 111,016
------ ------- ------- -------
Total assets $8,833,985 $6,539,264 $8,863,150 $6,477,983
========== ========== ========== ==========
Non-interest bearing
deposits $1,499,888 $1,215,176 $1,498,136 $1,184,121
Interest bearing deposits 5,746,511 3,824,628 5,767,455 3,803,669
--------- --------- --------- ---------
Total deposits 7,246,399 5,039,804 7,265,591 4,987,790
Securities sold under
repurchase agreements 92,466 82,408 88,128 74,241
Federal funds purchased
and other borrowings 28,937 76,132 55,865 86,554
Junior subordinated
debentures 92,265 102,575 92,265 106,012
Other liabilities 78,181 61,187 80,101 63,032
Shareholders'
equity(A) 1,295,737 1,177,158 1,281,200 1,160,354
--------- --------- --------- ---------
Total liabilities and
equity $8,833,985 $6,539,264 $8,863,150 $6,477,983
========== ========== ========== ==========
(A) Includes $15,800 and $1,675 in after tax unrealized gains on
available for sale securities for the three month periods ending June
30, 2009 and June 30, 2008, respectively and $13,722 and $172 for the
six months ending June 30, 2009 and June 30, 2008, respectively.
Prosperity Bancshares, Inc.(R)
Financial Highlights
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Income Statement Data (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest on loans $55,248 $55,948 $111,050 $114,468
Interest on securities 47,450 25,856 97,178 50,639
Interest on federal funds
sold and other temporary
investments 70 175 106 1,337
--- --- --- -----
Total interest income 102,768 81,979 208,334 166,444
------- ------ ------- -------
Interest expense - deposits 25,621 25,210 55,078 54,155
Interest expense -
debentures 959 1,558 2,078 3,577
Interest expense - other 667 1,240 1,579 2,746
--- ----- ----- -----
Total interest expense 27,247 28,008 58,735 60,478
------ ------ ------ ------
Net interest income (B) 75,521 53,971 149,599 105,966
Provision for credit losses 6,900 1,000 13,025 2,167
----- ----- ------ -----
Net interest income after
provision for credit
losses 68,621 52,971 136,574 103,799
------ ------ ------- -------
Service charges on
deposit accounts 12,863 10,727 25,235 21,233
Net gain on sale of assets 200 676 297 680
Net gain (loss) on sale of
ORE 415 (478) 437 (439)
Brokered mortgage income 140 113 210 222
Net gain on sale of held
for sale loans 0 110 0 183
Gain on sale of securities 0 0 0 0
Other non-interest income 1,515 1,918 3,971 3,866
----- ----- ----- -----
Total non-interest income 15,133 13,066 30,150 25,745
------ ------ ------ ------
Salaries and benefits (C) 20,494 16,751 43,142 32,881
CDI amortization 2,492 2,459 5,156 4,951
Net occupancy and equipment 3,514 2,867 7,492 5,677
Depreciation 2,069 1,920 4,070 3,857
Data processing
and software amortization 1,562 1,361 3,617 2,652
Impairment charge on
write-down of securities 0 0 0 0
Other non-interest expense 14,169 5,502 24,846 9,962
------ ----- ------ -----
Total non-interest expense 44,300 30,860 88,323 59,980
------ ------ ------ ------
Net income before taxes 39,454 35,177 78,401 69,564
Federal income taxes 12,944 11,740 26,413 23,189
------ ------ ------ ------
Net income available
to common shareholders $26,510 $23,437 $51,988 $46,375
======= ======= ======= =======
(B) Net interest income on a tax equivalent basis would be $76,226 and
$54,692 for the three months ended June 30, 2009 and June 30, 2008,
respectively and $150,985 and $107,524 for the six months ended June
30, 2009 and June 30, 2008, respectively.
(C) Salaries and benefits includes stock-based compensation expense of
$294 and $393 for the three months ended June 30, 2009 and June 30,
2008, respectively and $620 and $641 for the six months ended June 30,
2009 and June 30, 2008, respectively.
Prosperity Bancshares, Inc.(R)
Financial Highlights
(Dollars and share amounts in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Common Share and (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Other Data
Employees - FTE 1,634 1,397 1,634 1,397
Book value per share $28.17 $26.44 $28.17 $26.44
Tangible book value
per share $8.31 $7.79 $8.31 $7.79
Period end shares
outstanding 46,109 46,060 46,109 46,060
Weighted average
Shares outstanding
(basic) 46,105 44,852 46,097 44,520
Weighted average
Shares outstanding
(diluted) 46,225 45,039 46,146 44,676
Non-accrual loans $646 $2,727 $646 $2,727
Accruing loans 90 or
More days past due 7,497 2,130 7,497 2,130
Restructured loans 0 0 0 0
--- --- --- ---
Total non-performing loans 8,143 4,857 8,143 4,857
Repossessed assets 343 139 343 139
Other real estate 11,101 6,655 11,101 6,655
------ ----- ------ -----
Total non-performing
assets $19,587 $11,651 $19,587 $11,651
Allowance for credit
losses at end of period $42,611 $34,085 $42,611 $34,085
Net charge-offs $3,526 $1,163 $7,383 $2,806
Basic earnings per share $0.57 $0.52 $1.13 $1.04
Diluted earnings per share $0.57 $0.52 $1.13 $1.04
Prosperity Bancshares, Inc.(R)
Financial Highlights
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Performance Ratios (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Return on average
assets (annualized) 1.20% 1.43% 1.17% 1.43%
Return on average common
equity (annualized) 8.18% 7.96% 8.12% 7.99%
Return on average tangible
common equity (annualized) 27.98% 26.93% 28.39% 27.01%
Net interest margin (D)
(tax equivalent)
(annualized) 4.04% 4.10% 4.01% 4.07%
Efficiency ratio(E) 48.98% 46.50% 49.22% 45.78%
Asset Quality Ratios
Non-performing assets to
average earning assets 0.26% 0.22% 0.26% 0.22%
Non-performing assets to
loans and other real
estate 0.57% 0.35% 0.57% 0.35%
Net charge-offs
to average loans 0.10% 0.04% 0.21% 0.09%
Allowance for credit
losses to
total loans 1.23% 1.03% 1.23% 1.03%
Common Stock Market
Price
High $31.23 $32.29 $31.23 $32.29
Low $26.20 $25.37 $20.04 $21.96
Period end market price $29.83 $26.73 $29.83 $26.73
(D) Net interest margin for all periods presented is calculated on an
actual 365 or actual 366 day basis.
(E) The Company revised its efficiency ratio in the fourth quarter 2008
and no longer excludes gains and losses on the sale of ORE. The
efficiency ratio is calculated by dividing total non-interest expense
(excluding provision for credit losses) by net interest income plus
non-interest income (excluding net gains and losses on the sale of
securities and assets and impairment charge on write-down of
securities). Prior period amounts have been restated to reflect the
current methodology. Additionally, taxes are not part of this
calculation.
Prosperity Bancshares, Inc.(R)
Financial Highlights
(Dollars in thousands)
June 30, 2009 Mar 31, 2009
------------- ------------
Loan Portfolio (Unaudited) (Unaudited)
Commercial $461,622 13.38% $461,514 13.18%
Construction 613,386 17.77% 643,151 18.37%
1-4 family residential 675,702 19.58% 667,392 19.06%
Home equity 115,029 3.33% 112,053 3.20%
Commercial real estate 1,318,489 38.20% 1,346,056 38.45%
Agriculture 149,515 4.33% 144,384 4.12%
Consumer 117,576 3.41% 126,750 3.62%
------- -------
Total Loans $3,451,319 $3,501,300
========== ==========
Deposit Types
Non-interest bearing DDA $1,476,378 20.34% $1,510,005 20.95%
Interest bearing DDA 1,060,965 14.62% 1,030,826 14.30%
Money Market 1,614,874 22.25% 1,495,724 20.76%
Savings 325,232 4.48% 322,130 4.47%
Time < $100 1,418,375 19.54% 1,491,380 20.69%
Time > $100 1,362,071 18.77% 1,356,814 18.83%
--------- ---------
Total Deposits $7,257,895 $7,206,879
========== ==========
Loan to Deposit Ratio 47.6% 48.6%
Construction Loans
Single family
residential
construction $177,632 28.96% $214,034 33.28%
Land development 86,363 14.08% 91,005 14.15%
Raw land 96,157 15.67% 89,003 13.84%
Residential lots 101,321 16.52% 104,684 16.28%
Commercial lots 49,614 8.09% 37,318 5.80%
Commercial
construction and other 102,299 16.68% 107,107 16.65%
------- -------
Total Construction Loans $613,386 $643,151
======== ========
Dec 31, 2008 Sept 30, 2008
------------ -------------
Loan Portfolio (Unaudited) (Unaudited)
Commercial $499,143 13.99% $470,099 14.47%
Construction 666,080 18.67% 626,443 19.28%
1-4 family residential 668,096 18.73% 574,583 17.69%
Home equity 107,048 3.01% 95,962 2.95%
Commercial real estate 1,343,401 37.66% 1,229,219 37.84%
Agriculture 145,649 4.08% 133,123 4.10%
Consumer 137,640 3.86% 119,188 3.67%
------- -------
Total Loans $3,567,057 $3,248,617
========== ==========
Deposit Types
Non-interest bearing DDA $1,522,983 20.85% $1,263,407 24.75%
Interest bearing DDA 1,082,078 14.82% 707,055 13.85%
Money Market 1,400,673 19.18% 1,147,559 22.48%
Savings 309,938 4.24% 246,370 4.83%
Time < $100 1,577,431 21.60% 814,165 15.95%
Time > $100 1,410,194 19.31% 926,286 18.14%
--------- -------
Total Deposits $7,303,297 $5,104,842
========== ==========
Loan to Deposit Ratio 48.8% 63.6%
Construction Loans
Single family
residential
construction $237,191 35.61% $233,196 37.23%
Land development 90,846 13.64% 73,955 11.81%
Raw land 89,120 13.38% 90,974 14.52%
Residential lots 106,869 16.04% 101,027 16.13%
Commercial lots 39,374 5.91% 35,890 5.73%
Commercial
construction and other 102,680 15.42% 91,401 14.58%
------- ------
Total Construction
Loans $666,080 $626,443
======== ========
Prosperity Bancshares, Inc.(R)
Financial Highlights
(Dollars in thousands)
Balance
Sheet
Data June 30, Mar 31, Dec 31, Sept 30, June 30,
2009 2009 2008 2008 2008
-------- -------- ---------- --------- ----------
(at period
end) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Total
loans $3,451,319 $3,501,300 $3,567,057 $3,248,617 $3,313,328
Investment
securities
(F) 3,981,109 3,991,200 4,160,401 2,294,403 2,235,703
Federal
funds
sold
and
other
temporary
investments 128,451 14,930 16,404 25,748 14,230
------- ------ ------ ------ ------
Total
earning
assets 7,560,879 7,507,430 7,743,862 5,568,768 5,563,261
Allowance
for
credit
losses (42,611) (39,238) (36,970) (33,981) (34,085)
Cash
and
due
from
banks 142,860 148,938 212,335 159,386 170,966
Goodwill 875,434 874,356 874,654 811,916 811,391
Core
deposit
intangibles 40,305 42,796 38,196 44,974 47,536
Other
real
estate 11,101 9,134 4,450 7,538 6,655
Fixed
assets,
net 149,742 151,544 123,638 123,823 125,000
Other
assets 101,241 104,237 112,199 105,485 103,010
----------- ---------- ---------- ---------- ----------
Total
assets $8,838,951 $8,799,197 $9,072,364 $6,787,909 $6,793,734
========== ========== ========== ========== ==========
Demand
deposits $1,476,378 $1,510,005 $1,522,983 $1,263,407 $1,285,493
Interest
bearing
deposits 5,781,517 5,696,874 5,780,314 3,841,435 4,011,141
---------- ---------- ----------- ---------- ----------
Total
deposits 7,257,895 7,206,879 7,303,297 5,104,842 5,296,634
Securities
sold
under
repurchase
agreements 96,732 81,773 96,017 100,310 99,225
Federal
funds
purchased
and other
borrowings 28,170 28,441 229,395 219,671 42,089
Junior
subordinated
debentures 92,265 92,265 92,265 92,265 92,265
Other
liabilities 64,794 109,291 96,284 41,641 45,916
---------- --------- --------- --------- ----------
Total
liabilities 7,539,856 7,518,649 7,817,258 5,558,729 5,576,129
Shareholders'
equity
(G) 1,299,095 1,280,548 1,255,106 1,229,180 1,217,605
---------- --------- ---------- --------- ----------
Total
liabilities
and
equity $8,838,951 $8,799,197 $9,072,364 $6,787,909 $6,793,734
========== ========== ========== ========== ==========
(F) Includes $20,153, $23,784, $15,158, $1,220 and ($633) in unrealized
gains (losses) on available for sale securities for the quarterly
periods ending June 30, 2009, March 31, 2009, December 31, 2008,
September 30, 2008 and June 30, 2008, respectively.
(G) Includes $13,099, $15,460, $9,853, $793 and ($411) in after-tax
unrealized gains (losses) on available for sale securities for the
quarterly periods ending June 30, 2009, March 31, 2009, December 31,
2008, September 30, 2008 and June 30, 2008, respectively.
Prosperity Bancshares, Inc.(R)
Financial Highlights
(Dollars in thousands)
Three Months Ended
June 30, Mar 31, Dec 31, Sept 30, June 30,
2009 2009 2008 2008 2008
--------- ------- ------- -------- ----------
Income
Statement
Data (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest on
loans $55,248 $55,802 $56,073 $56,925 $55,948
Interest on
securities 47,450 49,726 39,713 27,834 25,856
Interest on
federal
funds sold
and other
earning
assets 70 38 802 87 175
-------- -------- ------- ------- -------
Total
interest
income 102,768 105,566 96,588 84,846 81,979
-------- -------- ------- ------- -------
Interest
expense
- deposits 25,621 29,457 29,663 23,874 25,210
Interest
expense
- debentures 959 1,119 1,452 1,410 1,558
Interest
expense
- other 667 912 1,516 1,756 1,240
-------- -------- ------- ------- -------
Total
interest
expense 27,247 31,488 32,631 27,040 28,008
-------- -------- ------- ------- -------
Net interest
income 75,521 74,078 63,957 57,806 53,971
Provision for
credit
losses 6,900 6,125 6,000 1,700 1,000
-------- -------- ------- ------- -------
Net interest
income
after
provision
for credit
losses 68,621 67,953 57,957 56,106 52,971
-------- -------- ------- ------- -------
Service
charges
on
deposits
accounts 12,863 12,372 13,204 11,348 10,727
Net gain on
sale of
assets 200 97 130 34 676
Net gain
(loss) on
sale of ORE 415 22 (1,684) (210) (478)
Brokered
mortgage
income 140 70 34 74 113
Net gain on
sale of
held for
sale loans 0 0 0 46 110
Gain on sale
of
securities 0 0 0 0 0
Other non-
interest
income 1,515 2,456 1,824 1,825 1,918
-------- -------- ------- ------- -------
Total non
-interest
income 15,133 15,017 13,508 13,117 13,066
-------- -------- ------- ------- -------
Salaries and
benefits 20,494 22,648 20,411 17,526 16,751
CDI
amortization 2,492 2,664 2,284 2,562 2,459
Net occupancy
and
equipment 3,514 3,978 3,704 3,088 2,867
Depreciation 2,069 2,001 1,854 1,955 1,920
Data processing
and
software
amortization 1,562 2,055 1,609 1,319 1,361
Impairment
charge on
write-down of
securities 0 0 0 14,025 0
Other non-
interest
expense 14,169 10,677 7,724 5,755 5,502
-------- -------- ------- ------- -------
Total non-
interest
expense 44,300 44,023 37,586 46,230 30,860
-------- -------- ------- ------- -------
Net income
before
taxes 39,454 38,947 33,879 22,993 35,177
Federal
income taxes 12,944 13,469 11,194 7,546 11,740
-------- -------- ------- ------- -------
Net income
available
to common
shareholders $26,510 $25,478 $22,685 $15,447 $23,437
======== ======== ======= ======= =======
Prosperity Bancshares, Inc.(R)
Financial Highlights
Comparative
Quarterly
Asset
Quality, Three Months Ended
Performance June 30, Mar 31, Dec 31, Sept 30, June 30,
& Capital 2009 2009 2008 2008 2008
Ratios (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Return on
average
assets
(annualized) 1.20% 1.15% 1.09% 0.91% 1.43%
Return on
average
common
equity
(annualized) 8.18% 8.02% 7.30% 5.04% 7.96%
Return on
average
tangible
equity
(annualized) 27.98% 28.52% 24.89% 16.83% 26.93%
Net interest
margin
(tax equivalent)
(annualized) 4.04% 3.98% 3.65% 4.15% 4.10%
Employees
- FTE 1,634 1,684 1,734 1,366 1,397
Efficiency
ratio 48.98% 49.47% 48.60% 45.43% 46.50%
Non-performing
assets to
average
earning
assets 0.26% 0.16% 0.20% 0.26% 0.22%
Non-performing
assets to
loans
and other real
estate 0.57% 0.36% 0.40% 0.45% 0.35%
Net charge-
offs to
average loans 0.10% 0.11% 0.09% 0.05% 0.04%
Allowance for
credit
losses
to
total loans 1.23% 1.12% 1.04% 1.05% 1.03%
Book value
per share $28.17 $27.78 $27.24 $26.68 $26.44
Tangible book
value per
share $8.31 $7.88 $7.43 $8.08 $7.79
Tier 1 risk-
based capital 11.24% 10.53% 9.89% 12.71% 12.70%
Total risk-
based capital 12.28% 11.48% 10.76% 13.65% 13.67%
Tier 1
leverage
capital 5.81% 5.48% 5.68% 7.75% 7.87%
Tangible
equity to
tangible
assets 4.84% 4.61% 4.19% 6.28% 6.04%
Equity to
assets 14.70% 14.55% 13.83% 18.11% 17.92%
Prosperity Bancshares, Inc.(R)
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
Three Months Ended June 30, 2009
YIELD ANALYSIS Average Interest Earned Average
Balance / Interest Paid Yield/Rate
------- --------------- ------------
Interest Earning Assets:
Loans $3,472,449 $55,248 6.38%
Investment securities 3,964,766 47,450 4.79%
Federal funds sold
and other temporary
investments 122,358 70 0.23%
------- ---
Total interest earning
assets 7,559,573 $102,768 5.45%
--------
Allowance for credit losses (39,249)
Non-interest earning assets 1,313,661
---------
Total assets $8,833,985
==========
Interest Bearing
Liabilities:
Interest bearing demand
deposits $1,047,363 $2,182 0.84%
Savings and money market
deposits 1,878,238 4,619 0.99%
Certificates and other time
deposits 2,820,910 18,820 2.68%
Securities sold under
repurchase agreements 92,466 280 1.21%
Federal funds purchased and
other borrowings 28,937 387 5.36%
Junior subordinated
debentures 92,265 959 4.17%
------ ---
Total interest bearing
liabilities $5,960,179 $27,247 1.83%
-------
Non-interest bearing
liabilities:
Non-interest bearing demand
deposits $1,499,888
Other liabilities 78,181
------
Total liabilities $7,538,248
----------
Shareholders' equity $1,295,737
----------
Total liabilities and
shareholders' equity $8,833,985
==========
Net Interest Income & Margin $75,521 4.01%
=======
Net Interest Income & Margin
(tax equivalent) $76,226 4.04%
=======
Prosperity Bancshares, Inc.(R)
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
Three Months Ended June 30, 2008
YIELD ANALYSIS Interest
Earned
Average / Interest Average
Balance Paid Yield/Rate
------- ---------- ----------
Interest Earning Assets:
Loans $3,203,305 $55,948 7.02%
Investment securities 2,131,370 25,856 4.85%
Federal funds sold
and other temporary
investments 33,803 175 2.08%
------ ---
Total interest earning
assets 5,368,478 $81,979 6.14%
-------
Allowance for credit losses (32,813)
Non-interest earning assets 1,203,599
---------
Total assets $6,539,264
==========
Interest Bearing
Liabilities:
Interest bearing demand
deposits $745,413 $1,652 0.89%
Savings and money market
deposits 1,370,964 6,678 1.96%
Certificates and other time
deposits 1,708,251 16,880 3.97%
Securities sold under
repurchase agreements 82,408 574 2.80%
Federal funds purchased and
other borrowings Securities
sold under repurchase
agreements 76,132 666 3.52%
Junior subordinated
debentures 102,575 1,558 6.11%
------- -----
Total interest bearing
liabilities 4,085,743 $28,008 2.76%
-------
Non-interest bearing
liabilities:
Non-interest bearing demand
deposits 1,215,176
Other liabilities 61,187
------
Total liabilities 5,362,106
Shareholders' equity 1,177,158
---------
Total liabilities and
shareholders' equity $6,539,264
==========
Net Interest Income & Margin $53,971 4.04%
=======
Net Interest Income & Margin
(tax equivalent) $54,692 4.10%
=======
Prosperity Bancshares, Inc.(R)
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
Six Months Ended June 30, 2009
YIELD ANALYSIS Average Interest Earned Average
Balance / Interest Paid Yield/Rate
------- --------------- ------------
Interest Earning Assets:
Loans $3,501,488 $111,050 6.40%
Investment securities 3,997,278 97,178 4.86%
Federal funds sold
and other temporary
investments 94,631 106 0.23%
------ ---
Total interest earning
assets $7,593,397 $208,334 5.53%
--------
Allowance for credit losses (38,240)
Non-interest earning assets 1,307,993
---------
Total assets $8,863,150
==========
Interest Bearing
Liabilities:
Interest bearing demand
deposits $1,058,122 $4,304 0.82%
Savings and money market
deposits 1,841,147 10,676 1.17%
Certificates and other time
deposits 2,868,186 40,098 2.82%
Securities sold under
repurchase agreements 88,128 628 1.44%
Federal funds purchased and
other borrowings 55,865 951 3.43%
Junior subordinated
debentures 92,265 $2,078 4.54%
------ ------
Total interest bearing
liabilities $6,003,713 $58,735 1.97%
-------
Non-interest bearing
liabilities:
Non-interest bearing demand
deposits $1,498,136
Other liabilities 80,101
------
Total liabilities $7,581,950
Shareholders' equity 1,281,200
---------
Total liabilities and
shareholders' equity $8,863,150
==========
Net Interest Income & Margin $149,599 3.97%
========
Net Interest Income & Margin
(tax equivalent) $150,985 4.01%
========
Prosperity Bancshares, Inc.(R)
Supplemental Financial Data (Unaudited)
(Dollars in thousands)
Six Months Ended June 30, 2008
YIELD ANALYSIS Average Interest Earned Average
Balance / Interest Paid Yield/Rate
------- --------------- ------------
Interest Earning Assets:
Loans $3,173,240 $114,468 7.25%
Investment securities 2,054,440 50,639 4.93%
Federal funds sold
and other temporary
investments 82,702 1,337 3.25%
------ -----
Total interest earning
assets 5,310,382 $166,444 6.30%
--------
Allowance for credit losses (32,381)
Non-interest earning assets 1,199,982
---------
Total assets $6,477,983
==========
Interest Bearing
Liabilities:
Interest bearing demand
deposits $807,570 $4,773 1.19%
Savings and money market
deposits 1,311,655 14,092 2.16%
Certificates and other time
deposits 1,684,444 35,290 4.21%
Securities sold under
repurchase agreements 74,241 1,178 3.19%
Federal funds purchased and
other borrowings 86,554 1,568 3.64%
Junior subordinated
debentures 106,012 3,577 6.79%
------- -----
Total interest bearing
liabilities 4,070,476 $60,478 2.99%
-------
Non-interest bearing
liabilities:
Non-interest bearing demand
deposits 1,184,121
Other liabilities 63,032
------
Total liabilities 5,317,629
Shareholders' equity 1,160,354
---------
Total liabilities and
shareholders' equity $6,477,983
==========
Net Interest Income & Margin $105,966 4.01%
========
Net Interest Income & Margin
(tax equivalent) $107,524 4.07%
========
Prosperity Bancshares, Inc.(R)
Notes to Selected Financial Data (Unaudited)
(Dollars in thousands)
Consolidated Financial Highlights
NOTES TO SELECTED FINANCIAL DATA
Prosperity's management uses certain non GAAP (generally accepted
accounting principles) financial measures to evaluate its performance.
Specifically, Prosperity reviews tangible book value per share, return on
average tangible common equity and the tangible equity to tangible assets
ratio for internal planning and forecasting purposes. Prosperity has
included in this Earnings Release information relating to these non-GAAP
financial measures for the applicable periods presented. Prosperity
believes these non-GAAP financial measures provide information useful to
investors in understanding Prosperity's financial results and Prosperity
believes that its presentation, together with the accompanying
reconciliations, provides a complete understanding of factors and trends
affecting Prosperity's business and allows investors to view performance
in a manner similar to management, the entire financial services sector,
bank stock analysts and bank regulators. These non-GAAP measures should
not be considered a substitute for GAAP basis measures and results and
Prosperity strongly encourages investors to review its consolidated
financial statements in their entirety and not to rely on any single
financial measure. Because non-GAAP financial measures are not
standardized, it may not be possible to compare these financial measures
with other companies' non-GAAP financial measures having the same or
similar names.
Prosperity Bancshares, Inc.(R)
Notes to Selected Financial Data (Unaudited)
(Dollars in thousands)
Three Months Ended
June 30, Mar 31, Dec 31, Sept 30, June 30,
2009 2009 2008 2008 2008
Net Income $26,510 $25,478 $22,685 $15,447 $23,437
Period end
shares
outstanding 46,109 46,100 46,080 46,072 46,060
Total assets $8,838,951 $8,799,197 $9,072,364 $6,787,909 $6,793,734
Shareholders'
equity 1,299,095 1,280,548 1,255,106 1,229,180 1,217,605
Average
shareholders'
equity 1,295,737 1,270,380 1,242,491 1,225,159 1,177,158
Goodwill and
Core
Deposit
Intangibles
(CDI) 915,739 917,152 912,850 856,890 858,927
Average
goodwill
and Core
Deposit
Intangibles 916,754 913,010 877,985 857,966 829,065
Tangible
shareholders'
equity (1) 383,356 363,396 342,256 372,290 358,678
Average
tangible
shareholders'
equity (2) 378,983 357,370 364,506 367,193 348,093
Tangible
assets (3) 7,923,212 7,882,045 8,159,514 5,931,019 5,934,807
Tangible
book value
per share (4) $8.31 $7.88 $7.43 $8.08 $7.79
Return
on average
tangible
common
equity (5) 27.98% 28.52% 24.89% 16.83% 26.93%
Tangible
equity to
tangible
assets
ratio (6) 4.84% 4.61% 4.19% 6.28% 6.04%
(1) Tangible shareholders' equity is calculated by subtracting goodwill
and CDI from shareholders' equity.
(2) Average tangible shareholders' equity is calculated by subtracting
average goodwill and CDI from average shareholders' equity.
(3) Tangible assets is calculated by subtracting goodwill and CDI from
total assets.
(4) Tangible book value is calculated by dividing tangible shareholders'
equity by period end shares outstanding.
(5) Return on average tangible common equity is calculated by dividing net
income by average tangible shareholders' equity (annualized).
(6) Tangible equity to tangible assets ratio is calculated by dividing
tangible shareholders' equity by tangible assets.
Prosperity Bancshares, Inc.(R)
Notes to Selected Financial Data (Unaudited)
(Dollars in thousands)
Six Months Ended
June 30, 2009 June 30, 2008
------------- -------------
Net Income $51,988 $46,375
Period end shares
outstanding 46,109 46,060
Total assets $8,838,951 $6,793,734
Shareholders' equity 1,299,095 1,217,605
Average shareholders'
equity 1,281,200 1,160,354
Goodwill and Core Deposit
Intangibles (CDI) 915,739 858,927
Average goodwill and Core
Deposit Intangibles 914,915 816,905
Tangible
shareholders' equity (1) 383,356 358,678
Average tangible
shareholders' equity (2) 366,285 343,449
Tangible assets (3) 7,923,212 5,934,807
Tangible book value
per share (4) $8.31 $7.79
Return on average
tangible common equity (5) 28.39% 27.01%
Tangible equity to
tangible assets ratio (6) 4.84% 6.04%
(1) Tangible shareholders' equity is calculated by subtracting goodwill
and CDI from shareholders' equity.
(2) Average tangible shareholders' equity is calculated by subtracting
average goodwill and CDI from average shareholders' equity.
(3) Tangible assets is calculated by subtracting goodwill and CDI from
total assets.
(4) Tangible book value is calculated by dividing tangible shareholders'
equity by period end shares outstanding.
(5) Return on average tangible common equity is calculated by dividing
net income by average tangible shareholders' equity (annualized).
(6) Tangible equity to tangible assets ratio is calculated by dividing
tangible shareholders' equity by tangible assets.
DATASOURCE: Prosperity Bancshares, Inc.
CONTACT: Dan Rollins, President and Chief Operating Officer of
Prosperity Bancshares, Inc., +1-281-269-7199,
Web Site: http://www.prosperitybanktx.com/