PROSPERITY BANCSHARES, INC.® REPORTS THIRD QUARTER 2024 EARNINGS

• Board approved increase in dividend of 3.57% to $0.58 for fourth quarter 2024, representing the 21st consecutive annual increase, with a compound annual growth rate of 11.1%
• Net income of $127.3 million and diluted earnings per share of $1.34 for third quarter 2024
• Net interest margin increased 23 basis points to 2.95% compared to third quarter 2023
• Deposits increased $154.5 million and loans increased $60.0 million during third quarter 2024
• Noninterest-bearing deposits of $9.8 billion, representing 34.9% of total deposits
• Allowance for credit losses on loans and on off-balance sheet credit exposure of $392.0 million and allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program, of 1.68%⁽¹⁾
• Nonperforming assets remain low at 0.25% of third quarter average interest-earning assets
• Return (annualized) on third quarter average assets of 1.28%, average common equity of 6.93% and average tangible common equity of 13.50%⁽¹⁾

HOUSTON, Oct. 23, 2024 /PRNewswire/ -- Prosperity Bancshares, Inc.^® (NYSE: PB), the parent company of Prosperity Bank^® (collectively, "Prosperity"), reported net income of $127.3 million for the quarter ended September 30, 2024 compared with $112.2 million for the same period in 2023. Net income per diluted common share was $1.34 for the quarter ended September 30, 2024 compared with $1.20 for the same period in 2023. The annualized return on third quarter average assets was 1.28%. Additionally, deposits increased $154.5 million and loans increased $60.0 million during the third quarter of 2024. Nonperforming assets remain low at 0.25% of third quarter average interest-earning assets. On April 1, 2024, Lone Star State Bancshares, Inc. ("Lone Star") merged with Prosperity Bancshares and Lone Star State Bank of West Texas ("Lone Star Bank") merged with Prosperity Bank (collectively, the "LSSB Merger").

"I am pleased to announce that the Board of Directors approved increasing the fourth quarter 2024 dividend to $0.58 per share from $0.56 per share that was paid in the prior four quarters. The increase reflects the continued confidence the Board has in our company and our markets. The compound annual growth rate in dividends declared from 2003 to 2024 was 11.1%," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.

"We continue to share our success with our shareholders through the payment of dividends and opportunistic stock repurchases, while also continuing to grow our capital. Our tangible capital increased $218 million from September 30, 2023, to September 30, 2024. This is the amount Prosperity retained after paying $212 million in dividends and repurchasing $75 million of our common stock during this period, reflecting Prosperity's stable earnings. Further, Prosperity's tangible book value per share has a compound annual growth rate of 11% for the last 21 years, or since 2003," added Zalman.

"The $2.4 trillion Texas economy is the eighth-largest among the nations of the world, larger than Russia, Canada and Italy, among others. An estimated 1,000 to 1,300 people move to Texas every day. Based on US Census Bureau data, in 2023, 473,453 people moved to Texas, which equates to approximately 40,000 per month or 1,300 per day," added Zalman.

"The Texas and Oklahoma economies continue to benefit from companies relocating from states with higher taxes and more regulation. This, combined with people moving to the states, requires additional housing and infrastructure, a driver for loans and increased business opportunities. We believe our bank is located in two of the best states we can be for future growth and continued prosperity," concluded Zalman.

Results of Operations for the Three Months Ended September 30, 2024

For the three months ended September 30, 2024, net income was $127.3 million⁽²⁾ or $1.34 per diluted common share compared with $112.2 million⁽³⁾ or $1.20 per diluted common share for the same period in 2023, an increase of $15.1 million or 13.4%. The change was primarily due to an increase in net interest income, partially offset by an increase in noninterest expense related to three months of Lone Star Bank operations. For the three months ended September 30, 2024, net income was $127.3 million⁽²⁾ or $1.34 per diluted common share compared with $111.6 million⁽⁴⁾ or $1.17 per diluted common share for the three months ended June 30, 2024, an increase of $15.7 million or 14.0%. The change was primarily due to higher net interest income, lower merger related provision for credit losses and lower merger related expenses, partially offset by lower net gain on sale or write-up of securities. Annualized returns on average assets, average common equity and average tangible common equity for the three months ended September 30, 2024 were 1.28%, 6.93% and 13.50%⁽¹⁾, respectively. Prosperity's efficiency ratio (excluding net gains and losses on the sale, write-down or write-up of assets and securities) was 46.87%⁽¹⁾ for the three months ended September 30, 2024.

Net interest income before provision for credit losses was $261.7 million for the three months ended September 30, 2024 compared with $239.5 million for the same period in 2023,  an increase of $22.2 million or 9.3%. The change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances on federal funds sold and other earning assets and a decrease in the average balances and rate on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances and rates on interest-bearing deposits. Net interest income before provision for credit losses increased $2.9 million or 1.1% to $261.7 million for the three months ended September 30, 2024 compared with $258.8 million for the three months ended June 30, 2024.

The net interest margin on a tax equivalent basis was 2.95% for the three months ended September 30, 2024 compared with 2.72% for the same period in 2023 and 2.94% for the three months ended June 30, 2024. The year-to-year change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances on federal funds sold and other earning assets and a decrease in the average balances and rate on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances and rates on interest-bearing deposits.

Noninterest income was $41.1 million for the three months ended September 30, 2024 compared $38.7 million for the same period in 2023, an increase of $2.4 million or 6.1%. The change was primarily due to an increase in the net gain (loss) on sale or write-down of assets, partially offset by a decrease in other noninterest income. Noninterest income was $41.1 million for the three months ended September 30, 2024 compared with $46.0 million for the three months ended June 30, 2024, a decrease of $4.9 million or 10.7%. The change was primarily due to lower net gain on sale or write-up of securities, partially offset by an increase in net gain (loss) on sale or write-down of assets.

Noninterest expense was $140.3 million for the three months ended September 30, 2024 compared with $135.7 million for the same period in 2023, an increase of $4.7 million or 3.5%, primarily due to an increase in salaries and benefits, an increase in credit and debit card, data processing and software amortization, and additional expenses related to three months of Lone Star Bank operations, partially offset by a decrease in merger related expenses. Noninterest expense was $140.3 million for the three months ended September 30, 2024 compared with $152.8 million for the three months ended June 30, 2024, a decrease of $12.5 million or 8.2%, primarily due to a decrease in FDIC special assessment, a decrease in merger related expenses and a decrease in other noninterest expense.

Results of Operations for the Nine Months Ended September 30, 2024

For the nine months ended September 30, 2024, net income was $349.3 million⁽⁵⁾ or $3.68 per diluted common share compared with $323.8 million⁽⁶⁾ or $3.50 per diluted common share for the same period in 2023. Net income and net income per diluted common share for the nine months ended September 30, 2024 was impacted by an increase in net interest income, a gain on Visa Class B-1 stock exchange net of investment securities sales of $11.2 million, lower merger related provision for credit losses and a decrease in merger related expenses, partially offset by a FDIC special assessment of $3.6 million and an increase in noninterest expenses related to six months of Lone Star Bank operations. Returns on average assets, average common equity and average tangible common equity for the nine months ended September 30, 2024 were 1.16%, 6.40% and 12.43%⁽¹⁾, respectively. 

Excluding merger related provision and expenses, gain on Visa Class B-1 stock exchange net of investment securities sales, and FDIC special assessment, each net of tax, net income was $353.9 million⁽¹⁾ or $3.74⁽¹⁾ per diluted common share for the nine months ended September 30, 2024 and annualized returns on average assets, average common equity and average tangible common equity for the same period were 1.18%⁽¹⁾, 6.49%⁽¹⁾ and 12.59%⁽¹⁾, respectively. Prosperity's efficiency ratio was 49.25%⁽¹⁾ for the nine months ended September 30, 2024; and excluding merger related expenses and FDIC special assessment, the efficiency ratio was 48.33%⁽¹⁾.

Net interest income before provision for credit losses for the nine months ended September 30, 2024 was $758.7 million compared with $719.5 million for the same period in 2023, an increase of $39.3 million or 5.5%. The change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances and average rates on federal funds sold and other earning assets, an increase in loan discount accretion and a decrease in the average rates on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances and rates on interest-bearing deposits.

The net interest margin on a tax equivalent basis for the nine months ended September 30, 2024 was 2.86% compared with 2.79% for the same period in 2023. The change was primarily due to an increase in the average balances and average rates on loans, an increase in the average balances and average rates on federal funds sold and other earning assets, an increase in loan discount accretion and a decrease in the average rates on other borrowings, partially offset by a decrease in the average balances on investment securities and an increase in the average balances and rates on interest-bearing deposits. The increases in the average balances on loans and deposits were primarily due to the LSSB Merger.

Noninterest income was $126.0 million for the nine months ended September 30, 2024 compared with $116.7 million for the same period in 2023, an increase of $9.3 million or 7.9%, primarily due to a gain on Visa Class B-1 stock exchange net of investment securities sales, and an increase in trust income, partially offset by a decrease in other noninterest income.

Noninterest expense was $429.0 million for the nine months ended September 30, 2024 compared with $404.5 million for the same period in 2023, an increase of $24.5 million or 6.1%, primarily due to a FDIC special assessment of $3.6 million, an increase in salaries and benefits and additional expenses related to six months of  Lone Star Bank operations and nine months of FirstCapital Bank of Texas, N.A. ("FirstCapital Bank") operations, partially offset by a decrease in merger related expenses.

Balance Sheet Information

At September 30, 2024, Prosperity had $40.115 billion in total assets, an increase of $819.6 million or 2.1%, compared with $39.296 billion at September 30, 2023. Linked quarter total assets increased by $353.0 million or 0.9% compared with $39.762 billion at June 30, 2024.

Loans were $22.381 billion at September 30, 2024, an increase of $948.1 million or 4.4%, compared with $21.433 billion at September 30, 2023. Linked quarter loans increased $60.0 million or 0.3% (1.1% annualized) from $22.321 billion at June 30, 2024. Loans, excluding Warehouse Purchase Program loans, were $21.152 billion at September 30, 2024 compared with $20.520 billion at September 30, 2023, an increase of $631.8 million or 3.1%, and compared with $21.239 billion at June 30, 2024, a decrease of $87.3 million.

Deposits were $28.088 billion at September 30, 2024, an increase of $774.8 million or 2.8%, compared with $27.313 billion at September 30, 2023. Linked quarter deposits increased $154.5 million or 0.6% (2.2% annualized) from $27.933 billion at June 30, 2024.

The table below provides detail on the impact of loans acquired and deposits assumed in the LSSB Merger:

Balance Sheet Data (at period end)
(In thousands)
		Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Loans acquired (including new production since acquisition date):
Lone Star Bank		$	1,109,783			$	1,084,559			$	—			$	—			$	—
Prosperity Bank
Warehouse Purchase Program loans			1,228,706				1,081,403				864,924				822,245				912,327
All other loans			20,042,363				20,154,853				20,400,323				20,358,293				20,520,386
Total loans		$	22,380,852			$	22,320,815			$	21,265,247			$	21,180,538			$	21,432,713
Deposits assumed (including new deposits since acquisition date):
Lone Star Bank		$	1,136,216			$	1,187,821			$	—			$	—			$	—
All other deposits			26,951,395				26,745,265				27,175,518				27,179,809				27,312,800
Total deposits		$	28,087,611			$	27,933,086			$	27,175,518			$	27,179,809			$	27,312,800

 

As reflected in the table above, loan and deposit growth was impacted by the LSSB Merger.

Excluding loans acquired in the LSSB Merger and new production at the acquired banking centers since April 1, 2024, loans at September 30, 2024 decreased $161.6 million compared with September 30, 2023 and increased $34.8 million compared with June 30, 2024.

Excluding deposits assumed in the LSSB Merger and new deposits generated at the acquired banking centers since April 1, 2024, deposits at September 30, 2024 decreased by $361.4 million compared with September 30, 2023 and increased by $206.1 million compared with June 30, 2024.

Asset Quality

Nonperforming assets totaled $89.9 million or 0.25% of quarterly average interest-earning assets at September 30, 2024 compared with $69.5 million or 0.20% of quarterly average interest-earning assets at September 30, 2023 and $89.6 million or 0.25% of quarterly average interest-earning assets at June 30, 2024, with a significant portion of the balance for each period attributable to acquired loans.

The allowance for credit losses on loans and off-balance sheet credit exposures was $392.0 million at September 30, 2024 compared with $388.0 million at September 30, 2023 and $397.5 million at June 30, 2024. There was no provision for credit losses for the three months ended  September 30, 2024  and 2023, and a provision for credit losses of $9.1 million and $18.5 million for the nine months ended  September 30, 2024  and 2023, respectively. As a result of the loans acquired in the LSSB Merger, the second quarter of 2024 included a $7.9 million provision for credit losses on loans and a $1.2 million provision for credit losses on off-balance sheet credit exposures. 

The allowance for credit losses on loans was $354.4 million or 1.58% of total loans at September 30, 2024 compared with $351.5 million or 1.64% of total loans at September 30, 2023 and $359.9 million or 1.61% of total loans at June 30, 2024. Excluding Warehouse Purchase Program loans, the allowance for credit losses on loans to total loans was 1.68%⁽¹⁾ at September 30, 2024 compared with 1.71%⁽¹⁾ at September 30, 2023 and 1.69%⁽¹⁾ at June 30, 2024.

Net charge-offs were $5.5 million for the three months ended September 30, 2024 compared with net charge-offs of $3.4 million for the three months ended September 30, 2023 and net charge-offs of $4.4 million for the three months ended June 30, 2024. Net charge-offs for the third quarter of 2024 included $1.4 million related to resolved purchased credit deteriorated ("PCD") loans, which had specific reserves that were allocated to the charge-offs. Further, $5.0 million of reserves on resolved PCD loans without any related charge-offs was released to the general reserve.

Net charge-offs were $12.0 million for the nine months ended September 30, 2024 compared with $18.9 million for the nine months ended September 30, 2023. Net charge-offs for the nine months ended September 30, 2024 included $3.3 million related to resolved PCD loans, which had specific reserves that were allocated to the charge-offs. Additionally, reserves on PCD loans increased by $26.1 million due to Day One accounting for PCD loans at the time of the LSSB Merger. Further, $13.9 million of reserves on resolved PCD loans was released to the general reserve.

Visa Class B-1 Stock Exchange

During the second quarter 2024, Prosperity tendered all of its shares of Visa, Inc. ("Visa") Class B-1 common stock in exchange for a combination of Visa Class B-2 common stock and Visa Class C common stock, pursuant to the terms and subject to the conditions of the public offering of Visa to exchange its Class B-1 common stock for a combination of shares of its Class B-2 common stock and Class C common stock, which expired on May 3, 2024. Prosperity recorded an unrealized gain of $20.6 million during the second quarter 2024 based on the conversion privilege of the Class C common stock and the closing price of Visa Class A common stock. In the exchange, Prosperity received 48,492 shares of Class B-2 stock, recorded at zero cost basis, and 19,245 shares of Class C common stock and has subsequently sold all shares of Class C stock.

Dividend

Prosperity Bancshares declared a fourth quarter 2024 cash dividend of $0.58 per share to be paid on January 2, 2025, to all shareholders of record as of December 13, 2024, an increase of $0.02 per share, or 3.57%, from the prior quarter.

Stock Repurchase Program

On January 16, 2024, Prosperity Bancshares announced a stock repurchase program under which up to 5%, or approximately 4.7 million shares, of its outstanding common stock may be acquired over a one-year period expiring on January 16, 2025, at the discretion of management. Under its 2024 stock repurchase program, Prosperity Bancshares repurchased zero shares of its common stock during the three months ended September 30, 2024, and approximately 1.2 million shares of its common stock at an average weighted price of $60.35 per share during the nine months ended September 30, 2024.

Merger of Lone Star State Bancshares, Inc.

On April 1, 2024, Prosperity completed the merger of Lone Star and its wholly owned subsidiary Lone Star Bank, headquartered in Lubbock, Texas. Lone Star Bank operated 5 full-service banking offices in the West Texas area, including its main office in Lubbock, and 1 banking center in each of Brownfield, Midland, Odessa and Big Spring, Texas.

Pursuant to the terms of the definitive agreement, Prosperity issued 2,376,182 shares of Prosperity common stock plus approximately $64.1 million in cash for all outstanding shares of Lone Star in the second quarter of 2024. This resulted in goodwill of $108.0 million as of September 30, 2024, which does not include all the subsequent fair value adjustments that have not yet been finalized.

Conference Call

Prosperity's management team will host a conference call on Wednesday, October 23, 2024, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's third quarter 2024 earnings. Individuals and investment professionals may participate in the call by dialing 877-883-0383 for domestic participants, or 412-902-6506 for international participants. The participant elite entry number is 7527596.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Prosperity's website at www.prosperitybankusa.com. The webcast may be accessed from Prosperity's Investor Relations page by selecting "Presentations, Webcasts & Calls" from the menu and following the instructions.

Non-GAAP Financial Measures

Prosperity's management uses certain non-GAAP financial measures to evaluate its performance. Specifically, for internal planning and forecasting purposes, Prosperity reviews each of diluted earnings per share, return on average assets, return on average common equity, and return on average tangible common equity, in each case excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on the sale or write-up of securities, net of tax; return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses to total loans excluding Warehouse Purchase Program loans; the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities; and the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses, and FDIC special assessment. Prosperity believes these non-GAAP financial measures provide information useful to investors in understanding Prosperity's financial results and their presentation, together with the accompanying reconciliations, provides a more 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. Further, Prosperity believes that these non-GAAP financial measures provide useful information by excluding certain items that may not be indicative of its core operating earnings and business outlook. These non-GAAP financial measures should not be considered a substitute for, nor of greater importance than, GAAP basis financial measures and results; 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. 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 to the nearest respective GAAP financial measures.

Prosperity Bancshares, Inc. ®

As of September 30, 2024, Prosperity Bancshares, Inc.^® is a $40.115 billion Houston, Texas based regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma.  Founded in 1983, Prosperity believes in a community banking philosophy, taking care of customers, businesses and communities in the areas it serves by providing financial solutions to simplify everyday financial needs. In addition to offering traditional deposit and loan products, Prosperity offers digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.

Prosperity currently operates 287 full-service banking locations: 65 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 62 in the Dallas/Fort Worth area; 22 in the East Texas area; 31 in the Central Texas area including Austin and San Antonio; 43 in the West Texas area including Lubbock, Midland-Odessa, Abilene, Amarillo and Wichita Falls; 15 in the Bryan/College Station area; 6 in the Central Oklahoma area; 8 in the Tulsa, Oklahoma area and 5 in the West Texas area currently doing business as Lone Star Bank.

Cautionary Notes on Forward-Looking Statements

"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 federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, oral or written forward-looking statements may also be included in other information released to the public.  Such forward-looking statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as "aim," "anticipate," "believe," "estimate," "expect," "goal," "guidance," "intend," "is anticipated," "is expected," "is intended," "objective," "plan," "projected," "projection," "will affect," "will be," "will continue," "will decrease," "will grow," "will impact," "will increase," "will incur," "will reduce," "will remain," "will result," "would be," variations of such words or phrases (including where the word "could," "may," or "would" is used rather than the word "will" in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. Forward-looking statements include all statements other than statements of historical fact, including forecasts or trends, and are based on current expectations, assumptions, estimates and projections about Prosperity Bancshares and its subsidiaries. These forward-looking statements may include information about Prosperity's possible or assumed future economic performance or future results of operations, including future revenues, income, expenses, provision for credit losses, provision for taxes, effective tax rate, earnings per share and cash flows and Prosperity's future capital expenditures and dividends, future financial condition and changes therein, including changes in Prosperity's loan portfolio and allowance for credit losses, changes in deposits, borrowings and the investment securities portfolio, future capital structure or changes therein, as well as the plans and objectives of management for Prosperity's future operations, future or proposed acquisitions, the future or expected effect of acquisitions on Prosperity's operations, results of operations, financial condition, and future economic performance, statements about the anticipated benefits of any proposed transactions, and statements about the assumptions underlying any such statement. These forward‑looking statements are not guarantees of future performance and are based on expectations and assumptions Prosperity currently believes to be valid. Because forward-looking statements relate to future results and occurrences, many of which are outside of Prosperity's control, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. 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); the possibility that the anticipated benefits of an acquisition transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of two companies or as a result of the strength of the economy and competitive factors generally; 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, interest rate and commodity price fluctuations; and the effect, impact, potential duration or other implications of weather and climate-related events. Prosperity disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. These and various other factors are discussed in Prosperity's Annual Report on Form 10-K for the year ended December 31, 2023, and other reports and statements Prosperity has filed with the Securities and Exchange Commission ("SEC"). Copies of the SEC filings for Prosperity may be downloaded from the Internet at no charge from http://www.prosperitybankusa.com.

(1)	Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(2)	Includes purchase accounting adjustments of $4.3 million, net of tax, primarily comprised of loan discount accretion of $4.8 million for the three months ended September 30, 2024.
(3)	Includes purchase accounting adjustments of $2.5 million, net of tax, primarily comprised of loan discount accretion of $2.3 million, and merger related expenses of $1.1 million for the three months ended September 30, 2023.
(4)	Includes purchase accounting adjustments of $6.1 million, net of tax, primarily comprised of loan discount accretion of $7.2 million, merger related provision for credit losses of $9.1 million, merger related expenses of $4.4 million, FDIC special assessment of $3.6 million, and net gain on sale or write-up of securities of $10.7 million for the three months ended June 30, 2024.
(5)	Includes purchase accounting adjustments of $12.4 million, net of tax, primarily comprised of loan discount accretion of $13.9 million, merger related provision for credit losses of $9.1 million, merger related expenses of $4.4 million, FDIC special assessment of $3.6 million, and net gain on sale or write-up of securities of $11.2 million for the nine months ended September 30, 2024.
(6)	Includes purchase accounting adjustments of $5.6 million, net of tax, primarily comprised of loan discount accretion of $5.6 million, merger related provision for credit losses of $18.5 million and merger related expenses of $14.9 million for the nine months ended September 30, 2023.

 

Bryan/College Station Area		Grapevine		Teague		Rosenberg		Midland
Bryan		Grapevine Main		Tyler-Beckham		Shadow Creek		North
Bryan-29th Street		Kiest		Tyler-South Broadway		Spring		Wadley
Bryan-East		Lake Highlands		Tyler-University		Tomball		Wall Street
Bryan-North		McKinney		Winnsboro		Waller		West
Caldwell		McKinney Eldorado				West Columbia
College Station		McKinney Redbud		Houston Area		Wharton		Odessa
Hearne		North Carrolton		Houston		Winnie		Grant
Huntsville		Park Cities		Aldine		Wirt		Kermit Highway
Madisonville		Plano		Alief				Parkway
Navasota		Plano-West		Bellaire		South Texas Area -
New Waverly		Preston Forest		Beltway		Corpus Christi		Wichita Falls
Rock Prairie		Preston Parker		Clear Lake		Calallen		Cattlemans
Southwest Parkway		Preston Royal		Copperfield		Carmel		Kell
Tower Point		Red Oak		Cypress		Northwest
Wellborn Road		Richardson		Downtown		Saratoga		Other West Texas Area
		Richardson-West		Eastex		Timbergate		Locations
Central Texas Area		Rosewood Court		Fairfield		Water Street		Big Spring
Austin		The Colony		First Colony				Brownfield
Cedar Park		Tollroad		Fry Road		Victoria		Brownwood
Congress		Trinity Mills		Gessner		Victoria Main		Burkburnett
Lakeway		Turtle Creek		Gladebrook		Victoria-Navarro		Byers
Liberty Hill		West 15th Plano		Grand Parkway		Victoria-North		Cisco
Northland		West Allen		Heights		Victoria Salem		Comanche
Oak Hill		Westmoreland		Highway 6 West				Early
Research Blvd		Wylie		Little York		Other South Texas Area		Floydada
Westlake				Medical Center		Locations		Gorman
		Fort Worth		Memorial Drive		Alice		Henrietta
Other Central Texas Area		Haltom City		Northside		Aransas Pass		Levelland
Locations		Hulen		Pasadena		Beeville		Littlefield
Bastrop		Keller		Pecan Grove		Colony Creek		Merkel
Canyon Lake		Museum Place		Pin Oak		Cuero		Plainview
Dime Box		Renaissance Square		River Oaks		Edna		San Angelo
Dripping Springs		Roanoke		Sugar Land		Goliad		Slaton
Elgin		Stockyards		SW Medical Center		Gonzales		Snyder
Flatonia				Tanglewood		Hallettsville
Fredericksburg		Other Dallas/Fort Worth Area		The Plaza		Kingsville		Lone Star West Texas Area
Georgetown		Locations		Uptown		Mathis		Big Spring
Gruene		Arlington		Waugh Drive		Padre Island		Brownfield
Horseshoe Bay		Azle		Westheimer		Palacios		Lubbock
Kingsland		Ennis		West University		Port Lavaca		Midland
La Grange		Gainesville		Woodcreek		Portland		Odessa
Lexington		Glen Rose				Rockport
Marble Falls		Granbury		Katy		Sinton		Oklahoma
New Braunfels		Grand Prairie		Cinco Ranch		Taft		Central Oklahoma Area
Pleasanton		Jacksboro		Katy-Spring Green		Yoakum		Oklahoma City
Round Rock		Mesquite				Yorktown		23rd Street
San Antonio		Muenster		The Woodlands				Expressway
Schulenburg		Runaway Bay		The Woodlands-College Park		West Texas Area		I-240
Seguin		Sanger		The Woodlands-I-45		Abilene		Memorial
Smithville		Waxahachie		The Woodlands-Research Forest		Antilley Road
Thorndale		Weatherford				Barrow Street		Other Central Oklahoma Area
Weimar				Other Houston Area		Cypress Street		Locations
		East Texas Area		Locations		Judge Ely		Edmond
Dallas/Fort Worth Area		Athens		Angleton		Mockingbird		Norman
Dallas		Blooming Grove		Bay City
14th Street Plano		Canton		Beaumont		Amarillo		Tulsa Area
Abrams Centre		Carthage		Cleveland		Hillside		Tulsa
Addison		Corsicana		East Bernard		Soncy		Garnett
Allen		Crockett		El Campo				Harvard
Balch Springs		Eustace		Dayton		Lubbock		Memorial
Camp Wisdom		Gilmer		Galveston		4th Street		Sheridan
Carrollton		Grapeland		Groves		66th Street		S. Harvard
Cedar Hill		Gun Barrel City		Hempstead		82nd Street		Utica Tower
Coppell		Jacksonville		Hitchcock		86th Street		Yale
East Plano		Kerens		Liberty		98th Street
Euless		Longview		Magnolia		Avenue Q		Other Tulsa Area Locations
Frisco		Mount Vernon		Magnolia Parkway		Milwaukee		Owasso
Frisco Warren		Palestine		Mont Belvieu		North University
Frisco-West		Rusk		Nederland		Texas Tech Student Union
Garland		Seven Points		Needville

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands)
		Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023
Balance Sheet Data (at period end)
Loans held for sale		$	6,113			$	9,951			$	6,380			$	5,734			$	10,187
Loans held for investment			21,146,033				21,229,461				20,393,943				20,352,559				20,510,199
Loans held for investment - Warehouse Purchase Program			1,228,706				1,081,403				864,924				822,245				912,327
Total loans			22,380,852				22,320,815				21,265,247				21,180,538				21,432,713
Investment securities(A)			11,300,756				11,702,139				12,301,138				12,803,896				13,192,742
Federal funds sold			208				234				250				260				234
Allowance for credit losses on loans			(354,397)				(359,852)				(330,219)				(332,362)				(351,495)
Cash and due from banks			2,209,863				1,507,604				1,086,444				458,153				512,239
Goodwill			3,504,388				3,504,107				3,396,402				3,396,086				3,396,459
Core deposit intangibles, net			70,178				74,324				60,757				63,994				67,553
Other real estate owned			5,757				4,960				2,204				1,708				9,320
Fixed assets, net			373,812				377,394				372,333				369,992				370,237
Other assets			623,903				630,569				601,964				605,612				665,682
Total assets		$	40,115,320			$	39,762,294			$	38,756,520			$	38,547,877			$	39,295,684
Noninterest-bearing deposits		$	9,811,361			$	9,706,505			$	9,526,535			$	9,776,572			$	10,281,893
Interest-bearing deposits			18,276,250				18,226,581				17,648,983				17,403,237				17,030,907
Total deposits			28,087,611				27,933,086				27,175,518				27,179,809				27,312,800
Other borrowings			3,900,000				3,900,000				3,900,000				3,725,000				4,250,000
Securities sold under repurchase agreements			228,896				233,689				261,671				309,277				300,714
Subordinated debentures			—				—				—				—				—
Allowance for credit losses on off-balance sheet credit exposures			37,646				37,646				36,503				36,503				36,503
Other liabilities			499,918				374,429				278,284				217,958				362,990
Total liabilities			32,754,071				32,478,850				31,651,976				31,468,547				32,263,007
Shareholders' equity(B)			7,361,249				7,283,444				7,104,544				7,079,330				7,032,677
Total liabilities and equity		$	40,115,320			$	39,762,294			$	38,756,520			$	38,547,877			$	39,295,684

(A)	Includes $(1,070), $(2,007), $(2,954), $(1,770) and $(2,442) in unrealized losses on available for sale securities for the quarterly periods ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively.
(B)	Includes $(845), $(1,586), $(2,333), $(1,398) and $(1,930) in after-tax unrealized losses on available for sale securities for the quarterly periods ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (In thousands)
		Three Months Ended																				Year-to-Date
		Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				Sep 30, 2024				Sep 30, 2023
Income Statement Data
Interest income:
Loans		$	337,451			$	336,428			$	306,228			$	306,562			$	308,678			$	980,107			$	842,434
Securities(C)			59,617				62,428				66,421				68,077				69,987				188,466				215,225
Federal funds sold and other earning assets			20,835				14,095				9,265				1,793				1,689				44,195				10,452
Total interest income			417,903				412,951				381,914				376,432				380,354				1,212,768				1,068,111
Interest expense:
Deposits			107,758				106,124				92,692				84,969				76,069				306,574				187,376
Other borrowings			46,792				46,282				48,946				52,386				62,190				142,020				153,937
Securities sold under repurchase agreements			1,662				1,759				2,032				2,094				2,533				5,453				7,310
Subordinated debentures			—				—				—				—				38				—				38
Total interest expense			156,212				154,165				143,670				139,449				140,830				454,047				348,661
Net interest income			261,691				258,786				238,244				236,983				239,524				758,721				719,450
Provision for credit losses			—				9,066				—				—				—				9,066				18,540
Net interest income after provision for credit losses			261,691				249,720				238,244				236,983				239,524				749,655				700,910
Noninterest income:
Nonsufficient funds (NSF) fees			9,016				8,153				8,288				8,365				8,719				25,457				25,326
Credit card, debit card and ATM card income			9,620				9,384				8,861				9,314				9,285				27,865				27,157
Service charges on deposit accounts			6,664				6,436				6,406				6,316				6,262				19,506				18,266
Trust income			3,479				3,601				4,156				3,360				3,326				11,236				9,909
Mortgage income			962				745				610				542				857				2,317				1,756
Brokerage income			1,258				1,186				1,235				1,059				1,067				3,679				3,216
Bank owned life insurance income			2,028				1,885				2,047				1,882				1,864				5,960				4,771
Net gain (loss) on sale or write-down of assets			3,178				(903)				(35)				(84)				(45)				2,240				2,070
Net gain on sale or write-up of securities			224				10,723				298				—				—				11,245				—
Other noninterest income			4,670				4,793				7,004				5,814				7,408				16,467				24,226
Total noninterest income			41,099				46,003				38,870				36,568				38,743				125,972				116,697
Noninterest expense:
Salaries and benefits			88,367				89,584				85,771				80,486				85,423				263,722				247,944
Net occupancy and equipment			9,291				8,915				8,623				9,093				9,464				26,829				26,424
Credit and debit card, data processing and software amortization			11,985				11,998				10,975				10,741				10,919				34,958				30,829
Regulatory assessments and FDIC insurance			5,726				10,317				5,538				24,940				5,155				21,581				15,225
Core deposit intangibles amortization			4,146				4,156				3,237				3,559				3,576				11,539				9,117
Depreciation			4,741				4,836				4,686				4,607				4,585				14,263				13,676
Communications			3,360				3,485				3,402				3,572				3,686				10,247				10,841
Other real estate expense			12				69				187				165				153				268				(253)
Net (gain) loss on sale or write-down of other real estate			(97)				31				(138)				34				(734)				(204)				(780)
Merger related expenses			63				4,381				—				278				1,104				4,444				14,855
Other noninterest expense			12,744				15,070				13,567				14,696				12,326				41,381				36,649
Total noninterest expense			140,338				152,842				135,848				152,171				135,657				429,028				404,527
Income before income taxes			162,452				142,881				141,266				121,380				142,610				446,599				413,080
Provision for income taxes			35,170				31,279				30,840				25,904				30,402				97,289				89,240
Net income available to common shareholders		$	127,282			$	111,602			$	110,426			$	95,476			$	112,208			$	349,310			$	323,840

(C)	Interest income on securities was reduced by net premium amortization of $5,574, $5,831, $5,822, $6,428 and $6,897 for the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively, and $17,227 and $21,412 for the nine months ended September 30, 2024 and 2023, respectively.

 

Prosperity Bancshares, Inc. ® Financial Highlights (Unaudited) (Dollars and share amounts in thousands, except per share data and market prices)
		Three Months Ended																				Year-to-Date
		Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				Sep 30, 2024				Sep 30, 2023
Profitability
Net income (D) (E)		$	127,282			$	111,602			$	110,426			$	95,476			$	112,208			$	349,310			$	323,840
Basic earnings per share		$	1.34			$	1.17			$	1.18			$	1.02			$	1.20			$	3.68			$	3.50
Diluted earnings per share		$	1.34			$	1.17			$	1.18			$	1.02			$	1.20			$	3.68			$	3.50
Return on average assets (F)(J)			1.28	%			1.12	%			1.13	%			0.98	%			1.13	%			1.16	%			1.11	%
Return on average common equity (F)(J)			6.93	%			6.10	%			6.20	%			5.39	%			6.39	%			6.40	%			6.25	%
Return on average tangible common equity (F) (G)(J)			13.50	%			11.81	%			12.06	%			10.54	%			12.58	%			12.43	%			12.17	%
Tax equivalent net interest margin (D) (E) (H)			2.95	%			2.94	%			2.79	%			2.75	%			2.72	%			2.86	%			2.79	%
Efficiency ratio (G) (I)(K)			46.87	%			51.82	%			49.07	%			55.61	%			48.74	%			49.25	%			48.50	%
Liquidity and Capital Ratios
Equity to assets			18.35	%			18.32	%			18.33	%			18.37	%			17.90	%			18.35	%			17.90	%
Common equity tier 1 capital			15.84	%			15.42	%			15.75	%			15.54	%			14.98	%			15.84	%			14.98	%
Tier 1 risk-based capital			15.84	%			15.42	%			15.75	%			15.54	%			14.98	%			15.84	%			14.98	%
Total risk-based capital			17.10	%			16.67	%			17.00	%			16.56	%			16.05	%			17.10	%			16.05	%
Tier 1 leverage capital			10.52	%			10.29	%			10.37	%			10.39	%			10.03	%			10.52	%			10.03	%
Period end tangible equity to period end tangible assets (G)			10.36	%			10.24	%			10.33	%			10.31	%			9.96	%			10.36	%			9.96	%
Other Data
Weighted-average shares used in computing earnings per common share
Basic			95,261				95,765				93,706				93,715				93,720				94,912				92,628
Diluted			95,261				95,765				93,706				93,715				93,720				94,912				92,628
Period end shares outstanding			95,261				95,262				93,525				93,722				93,717				95,261				93,717
Cash dividends paid per common share		$	0.56			$	0.56			$	0.56			$	0.56			$	0.55			$	1.68			$	1.65
Book value per common share		$	77.27			$	76.46			$	75.96			$	75.54			$	75.04			$	77.27			$	75.04
Tangible book value per common share (G)		$	39.75			$	38.89			$	39.00			$	38.62			$	38.08			$	39.75			$	38.08
Common Stock Market Price
High		$	74.87			$	66.18			$	68.88			$	68.79			$	63.65			$	74.87			$	78.76
Low		$	58.66			$	57.16			$	60.08			$	49.60			$	52.62			$	57.16			$	52.62
Period end closing price		$	72.07			$	61.14			$	65.78			$	67.73			$	54.58			$	72.07			$	54.58
Employees – FTE (excluding overtime)			3,896				3,902				3,901				3,850				3,853				3,896				3,853
Number of banking centers			287				288				283				285				285				287				285

(D) Includes purchase accounting adjustments for the periods presented as follows:

	Three Months Ended										Year-to-Date
	Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Sep 30, 2024		Sep 30, 2023
Loan discount accretion
Non-PCD	$3,616		$4,797		$1,312		$1,543		$1,508		$9,725		$3,282
PCD	$1,212		$2,394		$548		$937		$767		$4,154		$2,284
Securities net accretion	$555		$564		$561		$598		$626		$1,680		$1,050
Time deposits amortization	$(40)		$4		$(97)		$(150)		$(210)		$(133)		$(450)

(E)	Using effective tax rate of 21.6%, 21.9%, 21.8%, 21.3% and 21.3% for the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively, and 21.8% and 21.6% for the nine months ended September 30, 2024 and 2023, respectively.
(F)	Interim periods annualized.
(G)	Refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(H)	Net interest margin for all periods presented is based on average balances on an actual 366-day or 365-day basis.
(I)	Calculated by dividing total noninterest expense, excluding credit loss provisions, by net interest income plus noninterest income, excluding net gains and losses on the sale, write-down or write-up of assets and securities. Additionally, taxes are not part of this calculation.
(J)	For calculations of the annualized returns on average assets, average common equity and average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
(K)	For calculations of the efficiency ratio excluding merger related expenses and FDIC special assessment refer to the "Notes to Selected Financial Data" at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures to the nearest respective GAAP financial measures.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
YIELD ANALYSIS		Three Months Ended
		Sep 30, 2024												Jun 30, 2024												Sep 30, 2023
		Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate			(L)	Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate			(L)	Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate	(L)
Interest-earning assets:
Loans held for sale		$	7,913			$	137			6.89 %				$	8,446			$	149			7.10 %				$	9,832			$	162			6.54 %
Loans held for investment			21,107,139				316,939			5.97 %					21,328,824				319,361			6.02 %					20,496,075				290,566			5.62 %
Loans held for investment - Warehouse Purchase Program			1,114,681				20,375			7.27 %					917,026				16,918			7.42 %					972,936				17,950			7.32 %
Total loans			22,229,733				337,451			6.04 %					22,254,296				336,428			6.08 %					21,478,843				308,678			5.70 %
Investment securities			11,612,193				59,617			2.04 %			(M)		12,179,074				62,428			2.06 %			(M)		13,512,137				69,987			2.05 %	(M)
Federal funds sold and other earning assets			1,531,788				20,835			5.41 %					1,026,251				14,095			5.52 %					125,690				1,689			5.33 %
Total interest-earning assets			35,373,714				417,903			4.70 %					35,459,621				412,951			4.68 %					35,116,670				380,354			4.30 %
Allowance for credit losses on loans			(358,237)												(332,904)												(343,967)
Noninterest-earning assets			4,873,725												4,822,131												4,829,336
Total assets		$	39,889,202											$	39,948,848											$	39,602,039
Interest-bearing liabilities:
Interest-bearing demand deposits		$	4,774,975			$	9,251			0.77 %				$	4,839,194			$	9,133			0.76 %				$	4,768,485			$	5,182			0.43 %
Savings and money market deposits			8,908,315				49,824			2.23 %					9,084,051				50,252			2.22 %					8,977,824				44,446			1.96 %
Certificates and other time deposits			4,564,232				48,683			4.24 %					4,400,922				46,739			4.27 %					3,172,178				26,441			3.31 %
Other borrowings			3,900,000				46,792			4.77 %					3,900,000				46,282			4.77 %					4,671,449				62,190			5.28 %
Securities sold under repurchase agreements			242,813				1,662			2.72 %					258,637				1,759			2.74 %					389,149				2,533			2.58 %
Subordinated debentures			—				—				—				—				—				—				2,578				38			5.85 %
Total interest-bearing liabilities			22,390,335				156,212			2.78 %			(N)		22,482,804				154,165			2.76 %			(N)		21,981,663				140,830			2.54 %	(N)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			9,680,785												9,780,211												10,269,162
Allowance for credit losses on off-balance sheet credit exposures			37,646												36,729												36,504
Other liabilities			433,171												327,847												290,217
Total liabilities			32,541,937												32,627,591												32,577,546
Shareholders' equity			7,347,265												7,321,257												7,024,493
Total liabilities and shareholders' equity		$	39,889,202											$	39,948,848											$	39,602,039
Net interest income and margin						$	261,691			2.94 %								$	258,786			2.94 %								$	239,524			2.71 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment							808												800												1,000
Net interest income and margin      (tax equivalent basis)						$	262,499			2.95 %								$	259,586			2.94 %								$	240,524			2.72 %

(L)	Annualized and based on an actual 366-day or 365-day basis.
(M)	Yield on securities was impacted by net premium amortization of $5,574, $5,831 and $6,897 for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
(N)	Total cost of funds, including noninterest bearing deposits, was 1.94%, 1.92% and 1.73% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
YIELD ANALYSIS		Year-to-Date
		Sep 30, 2024												Sep 30, 2023
		Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate			(O)	Average Balance				Interest Earned/ Interest Paid				Average Yield/ Rate	(O)
Interest-earning assets:
Loans held for sale		$	7,278			$	378			6.94 %				$	5,389			$	267			6.62 %
Loans held for investment			21,312,440				928,973			5.82 %					19,546,826				797,861			5.46 %
Loans held for investment - Warehouse Purchase Program			918,172				50,756			7.38 %					831,143				44,306			7.13 %
Total loans			22,237,890				980,107			5.89 %					20,383,358				842,434			5.53 %
Investment securities			12,161,391				188,466			2.07 %			(P)		13,937,483				215,225			2.06 %	(P)
Federal funds sold and other earning assets			1,153,335				44,195			5.12 %					290,275				10,452			4.81 %
Total interest-earning assets			35,552,616				1,212,768			4.56 %					34,611,116				1,068,111			4.13 %
Allowance for credit losses on loans			(341,659)												(303,518)
Noninterest-earning assets			4,823,938												4,722,064
Total assets		$	40,034,895											$	39,029,662
Interest-bearing liabilities:
Interest-bearing demand deposits		$	4,947,514			$	26,807			0.72 %				$	5,260,463			$	12,765			0.32 %
Savings and money market deposits			9,060,992				147,228			2.17 %					9,235,646				122,992			1.78 %
Certificates and other time deposits			4,356,700				132,539			4.06 %					2,627,402				51,619			2.63 %
Other borrowings			3,960,821				142,020			4.79 %					4,001,994				153,937			5.14 %
Securities sold under repurchase agreements			265,878				5,453			2.74 %					419,304				7,310			2.33 %
Subordinated debentures			—				—				—				1,375				38			3.69 %
Total interest-bearing liabilities			22,591,905				454,047			2.68 %			(Q)		21,546,184				348,661			2.16 %	(Q)
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			9,759,927												10,310,878
Allowance for credit losses on off-balance sheet credit exposures			36,994												32,181
Other liabilities			372,060												232,903
Total liabilities			32,760,886												32,122,146
Shareholders' equity			7,274,009												6,907,516
Total liabilities and shareholders' equity		$	40,034,895											$	39,029,662
Net interest income and margin						$	758,721			2.85 %								$	719,450			2.78 %
Non-GAAP to GAAP reconciliation:
Tax equivalent adjustment							2,416												2,866
Net interest income and margin (tax equivalent basis)						$	761,137			2.86 %								$	722,316			2.79 %

(O)	Based on an actual 366-day or 365-day basis.
(P)	Yield on securities was impacted by net premium amortization of $17,227 and $21,412 for the nine months ended September 30, 2024 and 2023, respectively.
(Q)	Total cost of funds, including noninterest bearing deposits, was 1.87% and 1.46% for the nine months ended September 30, 2024 and 2023, respectively.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
	Three Months Ended
	Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023
YIELD TREND (R)
Interest-Earning Assets:
Loans held for sale		6.89	%			7.10	%			6.77	%			7.47	%			6.54	%
Loans held for investment		5.97	%			6.02	%			5.77	%			5.68	%			5.62	%
Loans held for investment - Warehouse Purchase Program		7.27	%			7.42	%			7.51	%			7.46	%			7.32	%
Total loans		6.04	%			6.08	%			5.83	%			5.75	%			5.70	%
Investment securities (S)		2.04	%			2.06	%			2.10	%			2.07	%			2.05	%
Federal funds sold and other earning assets		5.41	%			5.52	%			5.54	%			5.68	%			5.33	%
Total interest-earning assets		4.70	%			4.68	%			4.45	%			4.35	%			4.30	%
Interest-Bearing Liabilities:
Interest-bearing demand deposits		0.77	%			0.76	%			0.66	%			0.56	%			0.43	%
Savings and money market deposits		2.23	%			2.22	%			2.13	%			2.03	%			1.96	%
Certificates and other time deposits		4.24	%			4.27	%			4.05	%			3.80	%			3.31	%
Other borrowings		4.77	%			4.77	%			4.82	%			5.16	%			5.28	%
Securities sold under repurchase agreements		2.72	%			2.74	%			2.76	%			2.77	%			2.58	%
Subordinated debentures		—				—				—				—				5.85	%
Total interest-bearing liabilities		2.78	%			2.76	%			2.62	%			2.58	%			2.54	%
Net Interest Margin		2.94	%			2.94	%			2.78	%			2.74	%			2.71	%
Net Interest Margin (tax equivalent)		2.95	%			2.94	%			2.79	%			2.75	%			2.72	%

(R)	Annualized and based on average balances on an actual 366-day or 365-day basis.
(S)	Yield on securities was impacted by net premium amortization of $5,574, $5,831, $5,822, $6,428 and $6,897 for the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively.

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
		Three Months Ended
		Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023
Balance Sheet Averages
Loans held for sale		$	7,913			$	8,446			$	5,467			$	9,828			$	9,832
Loans held for investment			21,107,139				21,328,824				20,415,316				20,370,915				20,496,075
Loans held for investment - Warehouse Purchase Program			1,114,681				917,026				720,650				770,481				972,936
Total loans			22,229,733				22,254,296				21,141,433				21,151,224				21,478,843
Investment securities			11,612,193				12,179,074				12,693,268				13,074,243				13,512,137
Federal funds sold and other earning assets			1,531,788				1,026,251				672,840				125,295				125,690
Total interest-earning assets			35,373,714				35,459,621				34,507,541				34,350,762				35,116,670
Allowance for credit losses on loans			(358,237)				(332,904)				(331,708)				(346,493)				(343,967)
Cash and due from banks			304,911				295,077				315,612				302,864				301,201
Goodwill			3,504,300				3,482,448				3,396,177				3,396,224				3,387,293
Core deposit intangibles, net			72,330				59,979				62,482				65,986				69,551
Other real estate			5,339				3,071				2,319				4,781				6,301
Fixed assets, net			375,626				377,369				372,458				370,900				367,814
Other assets			611,219				604,187				610,649				670,187				697,176
Total assets		$	39,889,202			$	39,948,848			$	38,935,530			$	38,815,211			$	39,602,039
Noninterest-bearing deposits		$	9,680,785			$	9,780,211			$	9,443,249			$	9,960,240			$	10,269,162
Interest-bearing demand deposits			4,774,975				4,839,194				5,143,585				4,822,698				4,768,485
Savings and money market deposits			8,908,315				9,084,051				8,889,077				8,815,892				8,977,824
Certificates and other time deposits			4,564,232				4,400,922				3,683,815				3,442,115				3,172,178
Total deposits			27,928,307				28,104,378				27,159,726				27,040,945				27,187,649
Other borrowings			3,900,000				3,900,000				4,083,132				4,028,263				4,671,449
Securities sold under repurchase agreements			242,813				258,637				296,437				300,317				389,149
Subordinated debentures			—				—				—				—				2,578
Allowance for credit losses on off-balance sheet credit exposures			37,646				36,729				36,503				36,503				36,504
Other liabilities			433,171				327,847				238,480				323,344				290,217
Shareholders' equity			7,347,265				7,321,257				7,121,252				7,085,839				7,024,493
Total liabilities and equity		$	39,889,202			$	39,948,848			$	38,935,530			$	38,815,211			$	39,602,039

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
		Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
Period End Balances
Loan Portfolio
Commercial and industrial		$1,970,844	8.8 %		$2,023,531	9.1 %		$1,932,534	9.1 %		$1,936,717	9.2 %		$2,153,391	10.1 %
Warehouse purchase program		1,228,706	5.5 %		1,081,403	4.8 %		864,924	4.1 %		822,245	3.9 %		912,327	4.3 %
Construction, land development and other land loans		2,814,521	12.6 %		2,828,372	12.7 %		2,876,588	13.5 %		3,076,591	14.5 %		3,200,479	14.9 %
1-4 family residential		7,557,858	33.8 %		7,496,485	33.6 %		7,331,251	34.5 %		7,207,226	34.0 %		7,032,593	32.8 %
Home equity		919,676	4.1 %		930,428	4.2 %		950,169	4.5 %		960,852	4.5 %		969,498	4.5 %
Commercial real estate (includes multi-family residential)		5,869,687	26.2 %		5,961,884	26.7 %		5,631,460	26.5 %		5,662,948	26.7 %		5,606,837	26.2 %
Agriculture (includes farmland)		1,033,224	4.6 %		1,037,361	4.6 %		813,092	3.8 %		816,043	3.9 %		801,933	3.7 %
Consumer and other		413,548	1.8 %		340,611	1.5 %		326,915	1.5 %		329,593	1.6 %		306,018	1.4 %
Energy		572,788	2.6 %		620,740	2.8 %		538,314	2.5 %		368,323	1.7 %		449,637	2.1 %
Total loans		$22,380,852			$22,320,815			$21,265,247			$21,180,538			$21,432,713
Deposit Types
Noninterest-bearing DDA		$9,811,361	34.9 %		$9,706,505	34.7 %		$9,526,535	35.1 %		$9,776,572	36.0 %		$10,281,893	37.6 %
Interest-bearing DDA		4,800,758	17.1 %		4,762,730	17.1 %		4,867,247	17.9 %		5,115,945	18.8 %		4,797,259	17.6 %
Money market		6,166,792	22.0 %		6,180,769	22.1 %		6,134,221	22.6 %		5,859,701	21.6 %		5,892,505	21.6 %
Savings		2,707,982	9.6 %		2,765,197	9.9 %		2,830,117	10.4 %		2,881,397	10.6 %		3,005,936	11.0 %
Certificates and other time deposits		4,600,718	16.4 %		4,517,885	16.2 %		3,817,398	14.0 %		3,546,194	13.0 %		3,335,207	12.2 %
Total deposits		$28,087,611			$27,933,086			$27,175,518			$27,179,809			$27,312,800
Loan to Deposit Ratio		79.7 %			79.9 %			78.3 %			77.9 %			78.5 %

 

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
Construction Loans
		Sep 30, 2024							Jun 30, 2024							Mar 31, 2024							Dec 31, 2023							Sep 30, 2023
Single family residential construction		$	836,571			29.7	%		$	940,381			33.2	%		$	1,031,163			35.8	%		$	1,088,636			35.4	%		$	1,157,016			36.1	%
Land development			256,571			9.1	%			241,639			8.5	%			290,243			10.1	%			367,849			12.0	%			359,518			11.2	%
Raw land			263,411			9.4	%			291,112			10.3	%			311,265			10.8	%			328,365			10.7	%			340,659			10.7	%
Residential lots			217,920			7.7	%			222,343			7.9	%			224,901			7.8	%			222,591			7.2	%			216,659			6.8	%
Commercial lots			58,472			2.1	%			60,264			2.1	%			59,691			2.1	%			155,415			5.0	%			154,425			4.8	%
Commercial construction and other			1,183,127			42.0	%			1,074,361			38.0	%			959,687			33.4	%			914,436			29.7	%			973,022			30.4	%
Net unaccreted discount			(1,551)							(1,728)							(362)							(701)							(820)
Total construction loans		$	2,814,521						$	2,828,372						$	2,876,588						$	3,076,591						$	3,200,479

 

Non-Owner Occupied Commercial Real Estate Loans by Metropolitan Statistical Area (MSA) as of September 30, 2024
	Houston				Dallas				Austin				OK City				Tulsa				Other (T)				Total
Collateral Type
Shopping center/retail	$	365,720			$	263,161			$	58,574			$	15,161			$	13,648			$	324,444			$	1,040,708
Commercial and industrial buildings		141,749				114,151				22,622				34,900				17,150				291,397				621,969
Office buildings		99,817				215,635				91,439				46,970				3,651				95,542				553,054
Medical buildings		82,161				16,906				1,699				43,107				30,230				71,716				245,819
Apartment buildings		113,670				128,055				18,335				14,618				14,937				244,729				534,344
Hotel		106,115				99,032				32,554				17,506				—				191,873				447,080
Other		174,867				56,237				28,891				7,709				1,555				94,037				363,296
Total	$	1,084,099			$	893,177			$	254,114			$	179,971			$	81,171			$	1,313,738			$	3,806,270		(U)

 

Acquired Loans
	Non-PCD Loans												PCD Loans												Total Acquired Loans
	Balance at Acquisition Date				Balance at Jun 30, 2024				Balance at Sep 30, 2024				Balance at Acquisition Date				Balance at Jun 30, 2024				Balance at Sep 30, 2024				Balance at Acquisition Date				Balance at Jun 30, 2024				Balance at Sep 30, 2024
Loan marks:
Acquired banks (V)	$	345,599			$	(920)			$	(950)			$	320,052			$	2,412			$	2,320			$	665,651			$	1,492			$	1,370
FirstCapital Bank (W)		22,648				17,210				15,853				7,790				4,305				4,041				30,438				21,515				19,894
Lone Star Bank (X)		20,378				17,960				15,709				4,558				2,790				1,913				24,936				20,750				17,622
Total		388,625				34,250				30,612				332,400				9,507				8,274				721,025				43,757				38,886
Acquired portfolio loan balances:
Acquired banks (V)		12,286,159				875,474				845,545				689,573				57,417				57,780				12,975,732				932,891				903,325
FirstCapital Bank (W)		1,021,694				652,527				600,616				627,991				395,743				356,084				1,649,685				1,048,270				956,700
Lone Star Bank (X)		1,016,128				919,865				868,114				59,109				59,075				54,793				1,075,237				978,940				922,907
Total		14,323,981				2,447,866				2,314,275				1,376,673				512,235				468,657				15,700,654		(Y)		2,960,101				2,782,932
Acquired portfolio loan balances less loan marks	$	13,935,356			$	2,413,616			$	2,283,663			$	1,044,273			$	502,728			$	460,383			$	14,979,629			$	2,916,344			$	2,744,046

(T)	Includes other MSA and non-MSA regions.
(U)	Represents a portion of total commercial real estate loans of $5.870 billion as of September 30, 2024.
(V)	Includes Bank Arlington, American State Bank, Community National Bank, First Federal Bank Texas, Coppermark Bank, First Victoria National Bank, The F&M Bank & Trust Company, Tradition Bank and LegacyTexas Bank.
(W)	On May 1, 2023, Prosperity completed the merger (the "FB Merger") of First Bancshares and its wholly owned subsidiary FirstCapital Bank. The FB Merger resulted in the addition of $1.650 billion in loans with related purchase accounting adjustments of $30.4 million at acquisition date, which were subject to subsequent fair value adjustments.
(X)	The LSSB Merger was completed on April 1, 2024 and resulted in the addition of $1.075 billion in loans with related purchase accounting adjustments of $24.9 million at acquisition date, which were subject to subsequent fair value adjustments.
(Y)	Actual principal balances acquired.

  

Prosperity Bancshares, Inc.® Financial Highlights (Unaudited) (Dollars in thousands)
	Three Months Ended																				Year-to-Date
	Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				Sep 30, 2024				Sep 30, 2023
Asset Quality
Nonaccrual loans	$	83,969			$	84,175			$	78,475			$	68,688			$	59,729			$	83,969			$	59,729
Accruing loans 90 or more days past due		20				322				3,035				2,195				397				20				397
Total nonperforming loans		83,989				84,497				81,510				70,883				60,126				83,989				60,126
Repossessed assets		177				113				97				76				35				177				35
Other real estate		5,757				4,960				2,204				1,708				9,320				5,757				9,320
Total nonperforming assets	$	89,923			$	89,570			$	83,811			$	72,667			$	69,481			$	89,923			$	69,481
Nonperforming assets:
Commercial and industrial (includes energy)	$	13,642			$	16,340			$	10,199			$	8,957			$	22,219			$	13,642			$	22,219
Construction, land development and other land loans		4,053				4,895				15,826				17,343				8,684				4,053				8,684
1-4 family residential (includes home equity)		36,660				33,935				30,206				26,096				23,708				36,660				23,708
Commercial real estate (includes multi-family residential)		32,803				31,776				23,720				18,775				13,341				32,803				13,341
Agriculture (includes farmland)		2,686				2,550				3,714				1,460				1,511				2,686				1,511
Consumer and other		79				74				146				36				18				79				18
Total	$	89,923			$	89,570			$	83,811			$	72,667			$	69,481			$	89,923			$	69,481
Number of loans/properties		346				349				319				292				260				346				260
Allowance for credit losses on loans	$	354,397			$	359,852			$	330,219			$	332,362			$	351,495			$	354,397			$	351,495
Net charge-offs (recoveries):
Commercial and industrial (includes energy)	$	3,309			$	2,777			$	283			$	16,123			$	1,594			$	6,369			$	282
Construction, land development and other land loans		378				109				(2)				(5)				(5)				485				32
1-4 family residential (includes home equity)		409				425				457				20				(78)				1,291				(288)
Commercial real estate (includes multi-family residential)		258				(381)				(17)				1,590				570				(140)				15,526
Agriculture (includes farmland)		(116)				214				23				—				—				121				(84)
Consumer and other		1,217				1,224				1,399				1,405				1,327				3,840				3,390
Total	$	5,455			$	4,368			$	2,143			$	19,133			$	3,408			$	11,966			$	18,858
Asset Quality Ratios
Nonperforming assets to average interest-earning assets		0.25	%			0.25	%			0.24	%			0.21	%			0.20	%			0.25	%			0.20	%
Nonperforming assets to loans and other real estate		0.40	%			0.40	%			0.39	%			0.34	%			0.32	%			0.40	%			0.32	%
Net charge-offs to average loans (annualized)		0.10	%			0.08	%			0.04	%			0.36	%			0.06	%			0.07	%			0.12	%
Allowance for credit losses on loans to total loans		1.58	%			1.61	%			1.55	%			1.57	%			1.64	%			1.58	%			1.64	%
Allowance for credit losses on loans to total loans, excluding Warehouse Purchase Program loans (G)		1.68	%			1.69	%			1.62	%			1.63	%			1.71	%			1.68	%			1.71	%

 

Prosperity Bancshares, Inc.^®
Notes to Selected Financial Data (Unaudited)
(Dollars and share amounts in thousands, except per share data)

NOTES TO SELECTED FINANCIAL DATA

Prosperity's management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Specifically, for internal planning and forecasting purposes, Prosperity reviews each of diluted earnings per share, return on average assets, return on average common equity, and return on average tangible common equity, in each case excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax; return on average tangible common equity; tangible book value per share; the tangible equity to tangible assets ratio; allowance for credit losses to total loans excluding Warehouse Purchase Program loans; the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities; and the efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses and FDIC special assessment. In addition, due to the application of purchase accounting, Prosperity uses certain non-GAAP financial measures and ratios that exclude the impact of these items to evaluate its allowance for credit losses to total loans (excluding Warehouse Purchase Program loans). Prosperity has included information below relating to these non-GAAP financial measures for the applicable periods presented.

		Three Months Ended																				Year-to-Date
		Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				Sep 30, 2024				Sep 30, 2023
Reconciliation of diluted earnings per share to diluted earnings per share excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:
Diluted earnings per share (unadjusted)		$	1.34			$	1.17			$	1.18			$	1.02			$	1.20			$	3.68			$	3.50
Net income		$	127,282			$	111,602			$	110,426			$	95,476			$	112,208			$	349,310			$	323,840
Merger related provision for credit losses, net of tax(Z)			—				7,162				—				—				—				7,162				14,647
Merger related expenses, net of tax(Z)			50				3,461				—				220				872				3,511				11,735
FDIC special assessment, net of tax(Z)			—				2,807				—				15,736				—				2,807				—
Net gain on sale or write-up of securities, net of tax(Z)			(177)				(8,472)				(235)				—				—				(8,884)				—
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z):		$	127,155			$	116,560			$	110,191			$	111,432			$	113,080			$	353,906			$	350,222
Weighted average diluted shares outstanding			95,261				95,765				93,706				93,715				93,720				94,912				92,628
Merger related provision for credit losses, net of tax, per diluted common share(Z)		$	—			$	0.07			$	—			$	—			$	—			$	0.08			$	0.16
Merger related expenses, net of tax, per diluted common share(Z)		$	—			$	0.04			$	—			$	—			$	0.01			$	0.04			$	0.13
FDIC special assessment, net of tax, per diluted common share(Z)		$	—			$	0.03			$	—			$	0.17			$	—			$	0.03			$	—
Net gain on sale or write-up of securities, net of tax, per diluted common share(Z)		$	—			$	(0.09)			$	—			$	—			$	—			$	(0.09)			$	—
Diluted earnings per share excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:(Z)		$	1.34			$	1.22			$	1.18			$	1.19			$	1.21			$	3.74			$	3.79
Reconciliation of return on average assets to return on average assets excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:
Return on average assets (unadjusted)			1.28	%			1.12	%			1.13	%			0.98	%			1.13	%			1.16	%			1.11	%
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z):		$	127,155			$	116,560			$	110,191			$	111,432			$	113,080			$	353,906			$	350,222
Average total assets		$	39,889,202			$	39,948,848			$	38,935,530			$	38,815,211			$	39,602,039			$	40,034,895			$	39,029,662
Return on average assets excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax (F) (Z)			1.28	%			1.17	%			1.13	%			1.15	%			1.14	%			1.18	%			1.20	%
(Z) Calculated assuming a federal tax rate of 21.0%.
		Three Months Ended																				Year-to-Date
		Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				Sep 30, 2024				Sep 30, 2023
Reconciliation of return on average common equity to return on average common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax:
Return on average common equity (unadjusted)			6.93	%			6.10	%			6.20	%			5.39	%			6.39	%			6.40	%			6.25	%
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z):		$	127,155			$	116,560			$	110,191			$	111,432			$	113,080			$	353,906			$	350,222
Average shareholders' equity		$	7,347,265			$	7,321,257			$	7,121,252			$	7,085,839			$	7,024,493			$	7,274,009			$	6,907,516
Return on average common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax (F) (Z)			6.92	%			6.37	%			6.19	%			6.29	%			6.44	%			6.49	%			6.76	%
Reconciliation of return on average common equity to return on average tangible common equity:
Net income		$	127,282			$	111,602			$	110,426			$	95,476			$	112,208			$	349,310			$	323,840
Average shareholders' equity		$	7,347,265			$	7,321,257			$	7,121,252			$	7,085,839			$	7,024,493			$	7,274,009			$	6,907,516
Less: Average goodwill and other intangible assets			(3,576,630)				(3,542,427)				(3,458,659)				(3,462,210)				(3,456,844)				(3,526,501)				(3,360,296)
Average tangible shareholders' equity		$	3,770,635			$	3,778,830			$	3,662,593			$	3,623,629			$	3,567,649			$	3,747,508			$	3,547,220
Return on average tangible common equity (F)			13.50	%			11.81	%			12.06	%			10.54	%			12.58	%			12.43	%			12.17	%
Reconciliation of return on average common equity to return on average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, and FDIC special assessment, net of tax:
Net income excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax(Z):		$	127,155			$	116,560			$	110,191			$	111,432			$	113,080			$	353,906			$	350,222
Average shareholders' equity		$	7,347,265			$	7,321,257			$	7,121,252			$	7,085,839			$	7,024,493			$	7,274,009			$	6,907,516
Less: Average goodwill and other intangible assets			(3,576,630)				(3,542,427)				(3,458,659)				(3,462,210)				(3,456,844)				(3,526,501)				(3,360,296)
Average tangible shareholders' equity		$	3,770,635			$	3,778,830			$	3,662,593			$	3,623,629			$	3,567,649			$	3,747,508			$	3,547,220
Return on average tangible common equity excluding merger related provision for credit losses, net of tax, merger related expenses, net of tax, FDIC special assessment, net of tax, and net gain on sale or write-up of securities, net of tax (F) (Z)			13.49	%			12.34	%			12.03	%			12.30	%			12.68	%			12.59	%			13.16	%
Reconciliation of book value per share to tangible book value per share:
Shareholders' equity		$	7,361,249			$	7,283,444			$	7,104,544			$	7,079,330			$	7,032,677			$	7,361,249			$	7,032,677
Less: Goodwill and other intangible assets			(3,574,566)				(3,578,431)				(3,457,159)				(3,460,080)				(3,464,012)				(3,574,566)				(3,464,012)
Tangible shareholders' equity		$	3,786,683			$	3,705,013			$	3,647,385			$	3,619,250			$	3,568,665			$	3,786,683			$	3,568,665
Period end shares outstanding			95,261				95,262				93,525				93,722				93,717				95,261				93,717
Tangible book value per share		$	39.75			$	38.89			$	39.00			$	38.62			$	38.08			$	39.75			$	38.08
Reconciliation of equity to assets ratio to period end tangible equity to period end tangible assets ratio:
Tangible shareholders' equity		$	3,786,683			$	3,705,013			$	3,647,385			$	3,619,250			$	3,568,665			$	3,786,683			$	3,568,665
Total assets		$	40,115,320			$	39,762,294			$	38,756,520			$	38,547,877			$	39,295,684			$	40,115,320			$	39,295,684
Less: Goodwill and other intangible assets			(3,574,566)				(3,578,431)				(3,457,159)				(3,460,080)				(3,464,012)				(3,574,566)				(3,464,012)
Tangible assets		$	36,540,754			$	36,183,863			$	35,299,361			$	35,087,797			$	35,831,672			$	36,540,754			$	35,831,672
Period end tangible equity to period end tangible assets ratio			10.36	%			10.24	%			10.33	%			10.31	%			9.96	%			10.36	%			9.96	%
		Three Months Ended																				Year-to-Date
		Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				Sep 30, 2024				Sep 30, 2023
Reconciliation of allowance for credit losses to total loans to allowance for credit losses on loans to total loans excluding Warehouse Purchase Program:
Allowance for credit losses on loans		$	354,397			$	359,852			$	330,219			$	332,362			$	351,495			$	354,397			$	351,495
Total loans		$	22,380,852			$	22,320,815			$	21,265,247			$	21,180,538			$	21,432,713			$	22,380,852			$	21,432,713
Less: Warehouse Purchase Program loans			(1,228,706)				(1,081,403)				(864,924)				(822,245)				(912,327)				(1,228,706)				(912,327)
Total loans less Warehouse Purchase Program		$	21,152,146			$	21,239,412			$	20,400,323			$	20,358,293			$	20,520,386			$	21,152,146			$	20,520,386
Allowance for credit losses on loans to total loans excluding Warehouse Purchase Program			1.68	%			1.69	%			1.62	%			1.63	%			1.71	%			1.68	%			1.71	%
Reconciliation of efficiency ratio to efficiency ratio excluding net gains and losses on the sale, write-down  or write-up of assets and securities:
Noninterest expense		$	140,338			$	152,842			$	135,848			$	152,171			$	135,657			$	429,028			$	404,527
Net interest income		$	261,691			$	258,786			$	238,244			$	236,983			$	239,524			$	758,721			$	719,450
Noninterest income			41,099				46,003				38,870				36,568				38,743				125,972				116,697
Less: net (loss) gain on sale or write-down of assets			3,178				(903)				(35)				(84)				(45)				2,240				2,070
Less: net gain on sale or write-up of securities			224				10,723				298				—				—				11,245				—
Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets and securities			37,697				36,183				38,607				36,652				38,788				112,487				114,627
Total income excluding net gains and losses on the sale, write- down or write-up of assets and securities		$	299,388			$	294,969			$	276,851			$	273,635			$	278,312			$	871,208			$	834,077
Efficiency ratio, excluding net gains and losses on the sale, write- down or write-up of assets and securities			46.87	%			51.82	%			49.07	%			55.61	%			48.74	%			49.25	%			48.50	%
Reconciliation of efficiency ratio to efficiency ratio, excluding net gains and losses on the sale, write-down or write-up of assets and securities, merger related expenses and FDIC special assessment:
Noninterest expense		$	140,338			$	152,842			$	135,848			$	152,171			$	135,657			$	429,028			$	404,527
Less: merger related expenses			63				4,381				—				278				1,104				4,444				14,855
Less: FDIC special assessment			—				3,554				—				19,919				—				3,554				—
Noninterest expense excluding merger related expenses and FDIC special assessment		$	140,275			$	144,907			$	135,848			$	131,974			$	134,553			$	421,030			$	389,672
Net interest income		$	261,691			$	258,786			$	238,244			$	236,983			$	239,524			$	758,721			$	719,450
Noninterest income			41,099				46,003				38,870				36,568				38,743				125,972				116,697
Less: net (loss) gain on sale or write down of assets			3,178				(903)				(35)				(84)				(45)				2,240				2,070
Less: net gain on sale or write-up of securities			224				10,723				298				—				—				11,245				—
Noninterest income excluding net gains and losses on the sale, write-down or write-up of assets and securities			37,697				36,183				38,607				36,652				38,788				112,487				114,627
Total income excluding net gains and losses on the sale, write- down or write-up of assets and securities		$	299,388			$	294,969			$	276,851			$	273,635			$	278,312			$	871,208			$	834,077
Efficiency ratio, excluding net gains and losses on the sale, write- down or write-up of assets and securities, merger related expenses and FDIC special assessment			46.85	%			49.13	%			49.07	%			48.23	%			48.35	%			48.33	%			46.72	%

 

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