- Net income of $95.5 million
and diluted earnings per share of $1.02 for fourth quarter 2023; excluding the FDIC
special assessment of $19.9 million
and merger related expenses, net income was $111.4 million(1) and diluted earnings
per share was $1.19(1)
- Loans, excluding Warehouse Purchase Program loans, increased
$2.259 billion or 12.5% during
2023
- Loans, excluding Warehouse Purchase Program loans and loans
acquired in the merger of First Bancshares of Texas, Inc, increased $882.7 million or 4.9% during 2023
- Noninterest-bearing deposits of $9.8
billion, representing 36.0% of total deposits
- Borrowings decreased by $525.0
million during the fourth quarter 2023
- Net interest margin increased 3 basis points to 2.75% during
the fourth quarter 2023
- Allowance for credit losses on loans and on off-balance
sheet credit exposure of $368.9
million and allowance for credit losses to total loans,
excluding Warehouse Purchase Program, of
1.63%(1)
- Nonperforming assets remain low at 0.21% of fourth quarter
average interest-earning assets
- Pending merger of Lone Star State Bancshares, Inc.,
Lubbock, Texas
- Approved 2024 Stock Repurchase Program covering up to 5% of
outstanding common stock
HOUSTON, Jan. 24,
2024 /PRNewswire/ -- Prosperity Bancshares,
Inc.® (NYSE: PB), the parent company of Prosperity
Bank® (collectively, "Prosperity"), reported net income
of $95.5 million for the quarter
ended December 31, 2023 compared with $137.9 million for the same period in 2022. Net
income per diluted common share was $1.02 for the quarter ended December 31,
2023 compared with $1.51 for the same
period in 2022. During the fourth quarter of 2023, Prosperity
incurred a Federal Deposit Insurance Corporation ("FDIC") special
assessment of $19.9 million, or
$0.17(1) per diluted
common share net of tax, which was assessed by the FDIC to recover
the cost associated with protecting uninsured depositors following
the closures of Silicon Valley Bank and Signature
Bank in early 2023. Excluding this assessment and merger related
expenses, net income was $111.4
million(1) and earnings per diluted common share
was $1.19(1) for the
fourth quarter of 2023. The annualized return on fourth quarter
average assets was 0.98%; excluding the FDIC special assessment,
net of tax, and merger related expenses, net of tax, the return was
1.15%. Nonperforming assets remain low at 0.21% of fourth quarter
average interest-earning assets. On May 1,
2023, First Bancshares of Texas, Inc. ("First Bancshares") merged with
Prosperity Bancshares and FirstCapital Bank of Texas, N.A. ("FirstCapital Bank") merged with
Prosperity Bank (collectively, the "Merger").
"We remain excited about the growth and future of our company.
Prosperity operates in two of the best economies in the
U.S. Even with the recent interest rate increases, economic
activity and job growth in Texas
and Oklahoma remain solid," said
David Zalman, Prosperity's Senior
Chairman and Chief Executive Officer.
"Prosperity has a strong capital position that provides us with
flexibility in pursuing strategic opportunities, such as mergers
and acquisitions and the repurchase of our stock when appropriate.
We expect that our net interest margin will continue to expand to
our historically normal level as our assets reprice over the next
several years, increasing our earnings per share. Further, we have
a strong core deposit base, with 36% of our deposits in
noninterest-bearing accounts," concluded Zalman.
Results of Operations for the Three Months Ended
December 31, 2023
For the three months ended December 31, 2023, net income
was $95.5 million(2) or
$1.02 per diluted common share
compared with $112.2
million(3) or $1.20
per diluted common share for the three months ended
September 30, 2023. The three months ended December 31,
2023 was impacted by the FDIC special assessment of $19.9 million and merger related expenses. For
the three months ended December 31, 2023, net income was
$95.5 million(2) or
$1.02 per diluted common share
compared with $137.9
million(4) or $1.51
per diluted common share for the same period in 2022. The change
was primarily due to an increase in interest expense and an
increase in noninterest expense that includes the FDIC special
assessment, partially offset by an increase in loan interest
income. Annualized returns on average assets, average common equity
and average tangible common equity for the three months ended
December 31, 2023 were 0.98%, 5.39% and 10.54%(1),
respectively.
Excluding the FDIC special assessment, net of tax, and merger
related expenses, net of tax, net income was $111.4 million(1) or $1.19(1) per diluted common share for
the three months ended December 31, 2023 and annualized
returns on average assets, average common equity and average
tangible common equity were 1.15%(1),
6.29%(1) and 12.30%(1), respectively, for the
same period. Prosperity's efficiency ratio (excluding net gains and
losses on the sale or write down of assets and securities) was
55.61%(1) for the three months ended December 31,
2023; and, excluding the FDIC special assessment and merger related
expenses, the efficiency ratio was 48.23%(1).
Net interest income before provision for credit losses was
$237.0 million for the three months
ended December 31, 2023 compared with $239.5 million for the three months ended
September 30, 2023. Net interest income before provision for
credit losses decreased $19.2 million
or 7.5% to $237.0 million for the
three months ended December 31, 2023 compared with
$256.1 million for the same period in
2022. The change was primarily due to an increase in the average
balances and average rates on other borrowings and an increase in
the average rates on interest-bearing deposits, partially offset by
an increase in the average balances and average rates on loans.
The net interest margin on a tax equivalent basis was 2.75% for
the three months ended December 31, 2023 compared with 2.72%
for the three months ended September 30, 2023. The net
interest margin on a tax equivalent basis was 2.75% for the three
months ended December 31, 2023 compared with 3.05% for the
same period in 2022. The change was primarily due to an increase in
the average balances and average rates on other borrowings and an
increase in the average rates on interest-bearing deposits,
partially offset by an increase in the average balances and average
rates on loans.
Noninterest income was $36.6
million for the three months ended December 31, 2023
compared with $38.7 million for the
three months ended September 30, 2023 and $37.7 million for the three months ended
December 31, 2022.
Noninterest expense was $152.2
million for the three months ended December 31, 2023
compared with $135.7 million for the
three months ended September 30, 2023, an increase of
$16.5 million or 12.2%. The change
was primarily due to the FDIC special assessment of $19.9 million and an increase in other
noninterest expense, partially offset by a decrease in salaries and
benefits. Noninterest expense was $152.2
million for the three months ended December 31, 2023
compared with $119.2 million for the
same period in 2022, an increase of $32.9
million or 27.6%. The change was primarily due to the FDIC
special assessment of $19.9 million
and additional expenses related to the Merger.
Results of Operations for the Year Ended December 31,
2023
For the year ended December 31, 2023, net income was
$419.3 million(5) or
$4.51 per diluted common share
compared with $524.5
million(6) or $5.73
per diluted common share for the same period in 2022. The change
was primarily due to lower net interest income, the FDIC special
assessment of $19.9 million, merger
related provision for credit losses of $18.5 million, merger related expenses of
$15.1 million and additional
expenses related to the Merger. Returns on average assets, average
common equity and average tangible common equity for the year ended
December 31, 2023 were 1.08%, 6.03% and 11.76%(1),
respectively. Excluding the FDIC special assessment, net of tax,
merger related provision for credit losses, net of tax, and merger
related expenses, net of tax, net income was $461.7 million(1) or $4.97(1) per diluted common share for
the year ended December 31, 2023 and returns on average
assets, average common equity and average tangible common equity
for the same period were 1.18%(1), 6.64%(1)
and 12.95%(1), respectively. Prosperity's efficiency
ratio (excluding net gains and losses on the sale or write down of
assets and securities) was 50.26%(1) for the year ended
December 31, 2023; and, excluding the FDIC special assessment
and merger related expenses, the efficiency ratio was
47.09% (1).
Net interest income before provision for credit losses for the
year ended December 31, 2023 was $956.4
million compared with $1.005
billion for the same period in 2022, a decrease of
$48.8 million or 4.9%. The change was
primarily due to an increase in the average balances and average
rates on other borrowings and an increase in the average rates on
interest-bearing deposits, partially offset by increases in the
average balances and average rates on loans.
The net interest margin on a tax equivalent basis for the year
ended December 31, 2023 was 2.78% compared with 3.00% for the
same period in 2022. The change was primarily due to an increase in
the average balances and average rates on other borrowings and an
increase in average rates on interest-bearing deposits, partially
offset by an increase in the average balances and average rates on
loans.
Noninterest income was $153.3
million for the year ended December 31, 2023 compared
with $145.1 million for the same
period in 2022, an increase of $8.1
million or 5.6%, primarily due to the Merger, partially
offset by lower net gain on sale or write-down of assets.
Noninterest expense was $556.7
million for the year ended December 31, 2023 compared
with $484.2 million for the same
period in 2022, an increase of $72.5
million or 15.0%, primarily due to the FDIC special
assessment of $19.9 million, merger
related expenses of $15.1 million and
additional expenses related to the Merger.
Balance Sheet Information
At December 31, 2023, Prosperity had $38.548 billion in total assets, an increase of
$858.0 million or 2.3%, compared with
$37.690 billion at December 31,
2022.
Loans were $21.181 billion at
December 31, 2023, an increase of $2.341 billion or 12.4%, compared with
$18.840 billion at December 31,
2022. Linked quarter loans decreased $252.2
million or 1.2% from $21.433
billion at September 30, 2023. Loans, excluding
Warehouse Purchase Program loans, were $20.358 billion at December 31, 2023
compared with $18.099 billion at
December 31, 2022, an increase of $2.259 billion or 12.5%, and compared with
$20.520 billion at
September 30, 2023, a decrease of $162.1 million.
Deposits were $27.180 billion at
December 31, 2023, decreased
$1.354 billion or 4.7%, compared with
$28.534 billion at December 31, 2022, primarily due to a decrease in
business deposits and public fund deposits, partially offset by an
increase in Merger acquired deposits. Linked quarter deposits
decreased $133.0 million or 0.5% from
$27.313 billion at September 30, 2023.
The table below provides detail on the impact of loans acquired
and deposits assumed in the Merger.
|
Balance Sheet Data
(at period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
Loans acquired
(including new production since acquisition date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FirstCapital
Bank
|
|
$
|
1,376,356
|
|
|
$
|
1,494,378
|
|
|
$
|
1,590,137
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Prosperity - Warehouse
Purchase Program loans
|
|
|
822,245
|
|
|
|
912,327
|
|
|
|
1,148,883
|
|
|
|
799,115
|
|
|
|
740,620
|
|
|
Prosperity - All other
loans
|
|
|
18,981,937
|
|
|
|
19,026,008
|
|
|
|
18,914,926
|
|
|
|
18,535,244
|
|
|
|
18,099,207
|
|
|
Total loans
|
|
$
|
21,180,538
|
|
|
$
|
21,432,713
|
|
|
$
|
21,653,946
|
|
|
$
|
19,334,359
|
|
|
$
|
18,839,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits assumed
(including new deposits since acquisition date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FirstCapital
Bank
|
|
$
|
1,517,217
|
|
|
$
|
1,625,691
|
|
|
$
|
1,481,831
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
All other
deposits
|
|
|
25,662,592
|
|
|
|
25,687,109
|
|
|
|
25,899,055
|
|
|
|
27,004,236
|
|
|
|
28,533,531
|
|
|
Total
deposits
|
|
$
|
27,179,809
|
|
|
$
|
27,312,800
|
|
|
$
|
27,380,886
|
|
|
$
|
27,004,236
|
|
|
$
|
28,533,531
|
|
Excluding loans acquired in the Merger and new production since
May 1, 2023 by the acquired lending
operations, loans at December 31,
2023 grew $964.4 million or
5.1% compared with December 31, 2022
and decreased $134.2 million or 0.7%
compared with September 30, 2023.
Excluding loans acquired in the Merger, new production since
May 1, 2023 by the acquired lending
operations and Warehouse Purchase Program loans, loans at
December 31, 2023 grew $882.7 million or 4.9% compared with December 31, 2022 and decreased $44.1 million or 0.2% compared with September 30, 2023.
Excluding deposits assumed in the Merger and new deposits
generated at the acquired banking centers since May 1, 2023, deposits at December 31, 2023
decreased by $2.871 billion or 10.1%
compared with December 31, 2022 and decreased by $24.5 million or 0.1% compared with
September 30, 2023.
Asset Quality
Nonperforming assets totaled $72.7
million or 0.21% of quarterly average interest-earning
assets at December 31, 2023 compared with $69.5 million or 0.20% of quarterly average
interest-earning assets at September 30, 2023 and $27.5 million or 0.08% of quarterly average
interest-earning assets at December 31, 2022. The increase
during 2023 was primarily due to the Merger.
The allowance for credit losses on loans and off-balance sheet
credit exposures was $368.9 million
at December 31, 2023 compared with
$311.5 million at December 31, 2022 and $388.0 million at September 30, 2023. There was no provision for
credit losses for the three months ended December 31, 2023 and a provision for credit
losses of $18.5 million for the year
ended December 31, 2023 compared to
no provision for credit losses for the three months and year ended
December 31, 2022. The $18.5 million provision was made as a result of
the loans acquired in the Merger, and included a $12.0 million provision for credit losses on
loans and a $6.5 million provision
for credit losses on off-balance sheet credit exposures.
The allowance for credit losses on loans was $332.4 million or 1.57% of total loans at
December 31, 2023 compared with $281.6
million or 1.49% of total loans at December 31, 2022
and $351.5 million or 1.64% of total
loans at September 30, 2023. Excluding Warehouse Purchase
Program loans, the allowance for credit losses on loans to total
loans was 1.63%(1) at December 31, 2023 compared
with 1.56%(1) at December 31, 2022 and
1.71%(1) at September 30,
2023.
Net charge-offs were $19.1 million
for the three months ended December 31, 2023 compared with net
charge-offs of $3.4 million for the
three months ended September 30, 2023 and net charge-offs of
$603 thousand for the three months
ended December 31, 2022. Net charge-offs for the fourth
quarter of 2023 included $16.3
million related to resolved purchased credit deteriorated
("PCD") loans. The PCD loans had reserves of $16.2 million assigned as of the acquisition
date. Additionally, $7.4 million of
reserves on resolved PCD loans was released to the general
reserve.
Net charge-offs were $38.0 million
for the year ended December 31, 2023 compared with
$4.8 million for the year ended
December 31, 2022. Net charge-offs for the year ended
December 31, 2023 included $16.6
million related to resolved PCD loans and $15.0 million related to one commercial real
estate loan acquired in a previous merger. The PCD loans had
reserves of $16.3 million
assigned as of the acquisition date. Additionally, reserves on PCD
loans increased by $76.8 million
due to the Merger and $23.5 million of reserves on resolved PCD
loans was released to the general reserve.
Dividend
Prosperity Bancshares declared a first quarter 2024 cash
dividend of $0.56 per share to be
paid on April 1, 2024, to all
shareholders of record as of March 15,
2024.
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 2023 stock repurchase program, Prosperity
Bancshares repurchased zero shares of its common stock during the
three months ended December 31, 2023,
and approximately 1.21 million shares of its common stock at
an average weighted price of $59.88
per share during the year ended December 31,
2023.
Merger of First Bancshares of Texas, Inc.
On May 1, 2023, Prosperity
completed the merger of First Bancshares and its wholly owned
subsidiary FirstCapital Bank, headquartered in Midland, Texas. FirstCapital Bank operated 16
full-service banking offices in six different markets in West,
North and Central Texas areas,
including its main office in Midland, and banking offices in Midland, Lubbock, Amarillo, Wichita
Falls, Burkburnett,
Byers, Henrietta, Dallas, Horseshoe
Bay, Marble Falls and
Fredericksburg, Texas.
Pursuant to the terms of the definitive agreement, Prosperity
issued 3,583,370 shares of Prosperity common stock plus
approximately $91.5 million in cash
for all outstanding shares of First Bancshares. This resulted in
goodwill of $164.5 million as of
December 31, 2023, which was subject
to subsequent fair value adjustments. During the second quarter of
2023, Prosperity completed the operational conversion of
FirstCapital Bank.
Pending Merger of Lone Star State Bancshares, Inc.
On October 11, 2022, Prosperity
Bancshares and Lone Star State Bancshares, Inc. ("Lone Star") jointly announced the signing of a
definitive merger agreement whereby Lone
Star, the parent company of Lone
Star State Bank of West
Texas ("Lone Star Bank") will
merge with and into Prosperity. Lone Star
Bank operates 5 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. As of December 31,
2023, Lone Star, on a
consolidated basis, reported total assets of $1.372 billion, total loans of $1.081 billion and total deposits of $1.211 billion.
Under the terms of the merger agreement, Prosperity will issue
2,376,182 shares of Prosperity common stock plus $64.1 million in cash for all outstanding shares
of Lone Star capital stock, subject
to certain conditions and potential adjustments. Based on
Prosperity's closing price of $69.27
on October 7, 2022, the total
consideration was valued at approximately $228.7 million. The transaction is subject to
customary closing conditions, including the receipt of regulatory
approvals. The shareholders of Lone
Star approved the transaction on March 28, 2023.
Conference Call
Prosperity's management team will host a conference call on
Wednesday, January 24, 2024, at
11:30 a.m. Eastern Time (10:30 a.m. Central Time) to discuss Prosperity's
fourth quarter 2023 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 6674169.
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, and the FDIC special
assessment, 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 or write down of assets and
securities; and the efficiency ratio, excluding net gains and
losses on the sale or write down of assets and securities, merger
related expenses and the 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 December 31, 2023, Prosperity Bancshares,
Inc.® is a $38.548 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 285 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; 32 in the Central Texas area including Austin and San
Antonio; 44 in the West
Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita
Falls; 16 in the Bryan/College
Station area, 6 in the Central
Oklahoma area; 8 in the Tulsa,
Oklahoma area.
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 loan 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 loan 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, including the pending transaction
with Lone Star, 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 each of
the 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, including Lone Star; 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, including the pending transaction with
Lone Star, 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, 2022,
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 $2.6 million, net of tax, primarily
comprised of loan discount accretion of $2.5 million, merger
related expenses of $278 thousand, and the FDIC special assessment
of $19.9 million for the three months ended December 31,
2023.
|
|
(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 $758 thousand, net of tax, primarily
comprised of loan discount accretion of $913 thousand for the three
months ended December 31, 2022.
|
|
(5)
|
Includes purchase
accounting adjustments of $8.1 million, net of tax, primarily
comprised of loan discount accretion of $8.0 million, merger
related provision for credit losses of $18.5 million, merger
related expenses of $15.1 million, and the FDIC special assessment
of $19.9 million for the year ended December 31, 2023.
|
|
(6)
|
Includes purchase
accounting adjustments of $6.0 million, net of tax, primarily
comprised of loan discount accretion of $7.4 million for the year
ended December 31, 2022.
|
|
Bryan/College
Station Area
|
|
Frisco-West
|
|
Rusk
|
|
Nederland
|
|
Texas Tech Student
Union
|
|
Bryan
|
|
Garland
|
|
Seven Points
|
|
Needville
|
|
|
|
Bryan-29th
Street
|
|
Grapevine
|
|
Teague
|
|
Rosenberg
|
|
Midland
|
|
Bryan-East
|
|
Grapevine
Main
|
|
Tyler-Beckham
|
|
Shadow Creek
|
|
North
|
|
Bryan-North
|
|
Kiest
|
|
Tyler-South
Broadway
|
|
Spring
|
|
Wadley
|
|
Caldwell
|
|
Lake
Highlands
|
|
Tyler-University
|
|
Tomball
|
|
Wall Street
|
|
College
Station
|
|
McKinney
|
|
Winnsboro
|
|
Waller
|
|
West
|
|
Crescent
Point
|
|
McKinney
Eldorado
|
|
|
|
West
Columbia
|
|
|
|
Hearne
|
|
McKinney
Redbud
|
|
Houston
Area
|
|
Wharton
|
|
Odessa
|
|
Huntsville
|
|
North
Carrolton
|
|
Houston
|
|
Winnie
|
|
Grandview
|
|
Madisonville
|
|
Park Cities
|
|
Aldine
|
|
Wirt
|
|
Grant
|
|
Navasota
|
|
Plano
|
|
Alief
|
|
|
|
Kermit
Highway
|
|
New Waverly
|
|
Plano-West
|
|
Bellaire
|
|
South Texas Area
-
|
|
Parkway
|
|
Rock Prairie
|
|
Preston
Forest
|
|
Beltway
|
|
Corpus
Christi
|
|
|
|
Southwest
Parkway
|
|
Preston
Parker
|
|
Clear Lake
|
|
Calallen
|
|
Wichita
Falls
|
|
Tower Point
|
|
Preston
Royal
|
|
Copperfield
|
|
Carmel
|
|
Cattlemans
|
|
Wellborn
Road
|
|
Red Oak
|
|
Cypress
|
|
Northwest
|
|
Kell
|
|
|
Richardson
|
|
Downtown
|
|
Saratoga
|
|
|
|
Central Texas
Area
|
|
Richardson-West
|
|
Eastex
|
|
Timbergate
|
|
Other West Texas
Area
|
|
Austin
|
|
Rosewood
Court
|
|
Fairfield
|
|
Water Street
|
|
Locations
|
|
Allandale
|
|
The Colony
|
|
First Colony
|
|
|
|
Big Spring
|
|
Cedar Park
|
|
Tollroad
|
|
Fry Road
|
|
Victoria
|
|
Brownfield
|
|
Congress
|
|
Trinity
Mills
|
|
Gessner
|
|
Victoria
Main
|
|
Brownwood
|
|
Lakeway
|
|
Turtle Creek
|
|
Gladebrook
|
|
Victoria-Navarro
|
|
Burkburnett
|
|
Liberty Hill
|
|
West 15th
Plano
|
|
Grand
Parkway
|
|
Victoria-North
|
|
Byers
|
|
Northland
|
|
West Allen
|
|
Heights
|
|
Victoria
Salem
|
|
Cisco
|
|
Oak Hill
|
|
Westmoreland
|
|
Highway 6
West
|
|
|
|
Comanche
|
|
Research
Blvd
|
|
Wylie
|
|
Little York
|
|
Other South Texas
Area
|
|
Early
|
|
Westlake
|
|
|
|
Medical
Center
|
|
Locations
|
|
Floydada
|
|
|
Fort
Worth
|
|
Memorial
Drive
|
|
Alice
|
|
Gorman
|
|
Other Central Texas
Area
|
|
Haltom City
|
|
Northside
|
|
Aransas Pass
|
|
Henrietta
|
|
Locations
|
|
Hulen
|
|
Pasadena
|
|
Beeville
|
|
Levelland
|
|
Bastrop
|
|
Keller
|
|
Pecan Grove
|
|
Colony Creek
|
|
Littlefield
|
|
Canyon Lake
|
|
Museum Place
|
|
Pin Oak
|
|
Cuero
|
|
Merkel
|
|
Dime Box
|
|
Renaissance
Square
|
|
River Oaks
|
|
Edna
|
|
Plainview
|
|
Dripping
Springs
|
|
Roanoke
|
|
Sugar Land
|
|
Goliad
|
|
San Angelo
|
|
Elgin
|
|
Stockyards
|
|
SW Medical
Center
|
|
Gonzales
|
|
Slaton
|
|
Flatonia
|
|
|
|
Tanglewood
|
|
Hallettsville
|
|
Snyder
|
|
Fredericksburg
|
|
Other Dallas/Fort
Worth Area
|
|
The Plaza
|
|
Kingsville
|
|
|
|
Georgetown
|
|
Locations
|
|
Uptown
|
|
Mathis
|
|
Oklahoma
|
|
Gruene
|
|
Arlington
|
|
Waugh Drive
|
|
Padre Island
|
|
Central Oklahoma
Area
|
|
Horseshoe
Bay
|
|
Azle
|
|
Westheimer
|
|
Palacios
|
|
Oklahoma
City
|
|
Kingsland
|
|
Ennis
|
|
West
University
|
|
Port Lavaca
|
|
23rd
Street
|
|
La Grange
|
|
Gainesville
|
|
Woodcreek
|
|
Portland
|
|
Expressway
|
|
Lexington
|
|
Glen Rose
|
|
|
|
Rockport
|
|
I-240
|
|
Marble Falls
|
|
Granbury
|
|
Katy
|
|
Sinton
|
|
Memorial
|
|
New
Braunfels
|
|
Grand
Prairie
|
|
Cinco Ranch
|
|
Taft
|
|
|
|
Pleasanton
|
|
Jacksboro
|
|
Katy-Spring
Green
|
|
Yoakum
|
|
Other Central
Oklahoma Area
|
|
Round Rock
|
|
Mesquite
|
|
|
|
Yorktown
|
|
Locations
|
|
San Antonio
|
|
Muenster
|
|
The
Woodlands
|
|
|
|
Edmond
|
|
Schulenburg
|
|
Runaway Bay
|
|
The Woodlands-College
Park
|
|
West Texas
Area
|
|
Norman
|
|
Seguin
|
|
Sanger
|
|
The
Woodlands-I-45
|
|
Abilene
|
|
|
|
Smithville
|
|
Waxahachie
|
|
The Woodlands-Research
Forest
|
|
Antilley
Road
|
|
Tulsa
Area
|
|
Thorndale
|
|
Weatherford
|
|
|
|
Barrow
Street
|
|
Tulsa
|
|
Weimar
|
|
|
|
Other Houston
Area
|
|
Cypress
Street
|
|
Garnett
|
|
|
East Texas
Area
|
|
Locations
|
|
Judge Ely
|
|
Harvard
|
|
Dallas/Fort Worth
Area
|
|
Athens
|
|
Angleton
|
|
Mockingbird
|
|
Memorial
|
|
Dallas
|
|
Blooming
Grove
|
|
Bay City
|
|
|
|
Sheridan
|
|
14th Street
Plano
|
|
Canton
|
|
Beaumont
|
|
Amarillo
|
|
S. Harvard
|
|
Abrams
Centre
|
|
Carthage
|
|
Cleveland
|
|
Hillside
|
|
Utica Tower
|
|
Addison
|
|
Corsicana
|
|
East Bernard
|
|
Soncy
|
|
Yale
|
|
Allen
|
|
Crockett
|
|
El Campo
|
|
|
|
|
|
Balch
Springs
|
|
Eustace
|
|
Dayton
|
|
Lubbock
|
|
Other Tulsa Area
Locations
|
|
Camp Wisdom
|
|
Gilmer
|
|
Galveston
|
|
4th Street
|
|
Owasso
|
|
Carrollton
|
|
Grapeland
|
|
Groves
|
|
66th Street
|
|
|
|
Cedar Hill
|
|
Gun Barrel
City
|
|
Hempstead
|
|
82nd Street
|
|
|
|
Coppell
|
|
Jacksonville
|
|
Hitchcock
|
|
86th Street
|
|
|
|
East Plano
|
|
Kerens
|
|
Liberty
|
|
98th
Street
|
|
|
|
Euless
|
|
Longview
|
|
Magnolia
|
|
Avenue Q
|
|
|
|
Frisco
|
|
Mount Vernon
|
|
Magnolia
Parkway
|
|
Milwaukee
|
|
|
|
Frisco
Warren
|
|
Palestine
|
|
Mont Belvieu
|
|
North
University
|
|
|
|
Prosperity Bancshares,
Inc.®
|
|
Financial Highlights
(Unaudited)
|
|
(In
thousands)
|
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Balance Sheet Data
(at period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
5,734
|
|
|
$
|
10,187
|
|
|
$
|
10,656
|
|
|
$
|
1,603
|
|
|
$
|
554
|
|
|
Loans held for
investment
|
|
|
20,352,559
|
|
|
|
20,510,199
|
|
|
|
20,494,407
|
|
|
|
18,533,641
|
|
|
|
18,098,653
|
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
822,245
|
|
|
|
912,327
|
|
|
|
1,148,883
|
|
|
|
799,115
|
|
|
|
740,620
|
|
|
Total loans
|
|
|
21,180,538
|
|
|
|
21,432,713
|
|
|
|
21,653,946
|
|
|
|
19,334,359
|
|
|
|
18,839,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities(A)
|
|
|
12,803,896
|
|
|
|
13,192,742
|
|
|
|
13,667,319
|
|
|
|
14,071,545
|
|
|
|
14,476,005
|
|
|
Federal funds
sold
|
|
|
260
|
|
|
|
234
|
|
|
|
181
|
|
|
|
222
|
|
|
|
301
|
|
|
Allowance for credit
losses on loans
|
|
|
(332,362)
|
|
|
|
(351,495)
|
|
|
|
(345,209)
|
|
|
|
(282,191)
|
|
|
|
(281,576)
|
|
|
Cash and due from
banks
|
|
|
458,153
|
|
|
|
512,239
|
|
|
|
396,848
|
|
|
|
405,331
|
|
|
|
423,832
|
|
|
Goodwill
|
|
|
3,396,086
|
|
|
|
3,396,459
|
|
|
|
3,383,698
|
|
|
|
3,231,636
|
|
|
|
3,231,636
|
|
|
Core deposit
intangibles, net
|
|
|
63,994
|
|
|
|
67,553
|
|
|
|
71,128
|
|
|
|
48,974
|
|
|
|
51,348
|
|
|
Other real estate
owned
|
|
|
1,708
|
|
|
|
9,320
|
|
|
|
3,107
|
|
|
|
1,989
|
|
|
|
1,963
|
|
|
Fixed assets,
net
|
|
|
369,992
|
|
|
|
370,237
|
|
|
|
365,299
|
|
|
|
345,149
|
|
|
|
339,453
|
|
|
Other assets
|
|
|
605,612
|
|
|
|
665,682
|
|
|
|
708,814
|
|
|
|
672,218
|
|
|
|
607,040
|
|
|
Total
assets
|
|
$
|
38,547,877
|
|
|
$
|
39,295,684
|
|
|
$
|
39,905,131
|
|
|
$
|
37,829,232
|
|
|
$
|
37,689,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
9,776,572
|
|
|
$
|
10,281,893
|
|
|
$
|
10,364,921
|
|
|
$
|
10,108,348
|
|
|
$
|
10,915,448
|
|
|
Interest-bearing
deposits
|
|
|
17,403,237
|
|
|
|
17,030,907
|
|
|
|
17,015,965
|
|
|
|
16,895,888
|
|
|
|
17,618,083
|
|
|
Total
deposits
|
|
|
27,179,809
|
|
|
|
27,312,800
|
|
|
|
27,380,886
|
|
|
|
27,004,236
|
|
|
|
28,533,531
|
|
|
Other
borrowings
|
|
|
3,725,000
|
|
|
|
4,250,000
|
|
|
|
4,800,000
|
|
|
|
3,365,000
|
|
|
|
1,850,000
|
|
|
Securities sold under
repurchase agreements
|
|
|
309,277
|
|
|
|
300,714
|
|
|
|
434,160
|
|
|
|
434,261
|
|
|
|
428,134
|
|
|
Subordinated
debentures
|
|
|
—
|
|
|
|
—
|
|
|
|
3,093
|
|
|
|
—
|
|
|
|
—
|
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
36,503
|
|
|
|
36,503
|
|
|
|
36,503
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
Other
liabilities
|
|
|
217,958
|
|
|
|
362,990
|
|
|
|
282,373
|
|
|
|
256,671
|
|
|
|
148,843
|
|
|
Total
liabilities
|
|
|
31,468,547
|
|
|
|
32,263,007
|
|
|
|
32,937,015
|
|
|
|
31,090,115
|
|
|
|
30,990,455
|
|
|
Shareholders'
equity(B)
|
|
|
7,079,330
|
|
|
|
7,032,677
|
|
|
|
6,968,116
|
|
|
|
6,739,117
|
|
|
|
6,699,374
|
|
|
Total liabilities and
equity
|
|
$
|
38,547,877
|
|
|
$
|
39,295,684
|
|
|
$
|
39,905,131
|
|
|
$
|
37,829,232
|
|
|
$
|
37,689,829
|
|
|
|
|
(A)
|
Includes $(1,770),
$(2,442), $(3,393), $(4,399) and $(4,396) in unrealized losses on
available for sale securities for the quarterly periods ended
December 31, 2023, September 30, 2023, June 30, 2023, March 31,
2023 and December 31, 2022, respectively.
|
|
(B)
|
Includes $(1,398),
$(1,930), $(2,681), $(3,476) and $(3,473) in after-tax unrealized
losses on available for sale securities for the quarterly periods
ended December 31, 2023, September 30, 2023, June 30, 2023, March
31, 2023 and December 31, 2022, respectively.
|
|
Prosperity Bancshares,
Inc.®
|
|
Financial Highlights
(Unaudited)
|
|
(In
thousands)
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Dec 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
306,562
|
|
|
$
|
308,678
|
|
|
$
|
286,638
|
|
|
$
|
247,118
|
|
|
$
|
235,126
|
|
|
$
|
1,148,996
|
|
|
$
|
831,189
|
|
|
Securities(C)
|
|
|
68,077
|
|
|
|
69,987
|
|
|
|
72,053
|
|
|
|
73,185
|
|
|
|
72,533
|
|
|
|
283,302
|
|
|
|
260,416
|
|
|
Federal funds sold and
other earning assets
|
|
|
1,793
|
|
|
|
1,689
|
|
|
|
1,757
|
|
|
|
7,006
|
|
|
|
933
|
|
|
|
12,245
|
|
|
|
3,230
|
|
|
Total interest
income
|
|
|
376,432
|
|
|
|
380,354
|
|
|
|
360,448
|
|
|
|
327,309
|
|
|
|
308,592
|
|
|
|
1,444,543
|
|
|
|
1,094,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
84,969
|
|
|
|
76,069
|
|
|
|
63,964
|
|
|
|
47,343
|
|
|
|
36,048
|
|
|
|
272,345
|
|
|
|
68,112
|
|
|
Other
borrowings
|
|
|
52,386
|
|
|
|
62,190
|
|
|
|
57,351
|
|
|
|
34,396
|
|
|
|
14,682
|
|
|
|
206,323
|
|
|
|
18,851
|
|
|
Securities sold under
repurchase agreements
|
|
|
2,094
|
|
|
|
2,533
|
|
|
|
2,674
|
|
|
|
2,103
|
|
|
|
1,725
|
|
|
|
9,404
|
|
|
|
2,641
|
|
|
Subordinated
debentures
|
|
|
—
|
|
|
|
38
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
38
|
|
|
|
—
|
|
|
Total interest
expense
|
|
|
139,449
|
|
|
|
140,830
|
|
|
|
123,989
|
|
|
|
83,842
|
|
|
|
52,455
|
|
|
|
488,110
|
|
|
|
89,604
|
|
|
Net interest
income
|
|
|
236,983
|
|
|
|
239,524
|
|
|
|
236,459
|
|
|
|
243,467
|
|
|
|
256,137
|
|
|
|
956,433
|
|
|
|
1,005,231
|
|
|
Provision for credit
losses
|
|
|
—
|
|
|
|
—
|
|
|
|
18,540
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,540
|
|
|
|
—
|
|
|
Net interest income
after provision for credit losses
|
|
|
236,983
|
|
|
|
239,524
|
|
|
|
217,919
|
|
|
|
243,467
|
|
|
|
256,137
|
|
|
|
937,893
|
|
|
|
1,005,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds
(NSF) fees
|
|
|
8,365
|
|
|
|
8,719
|
|
|
|
8,512
|
|
|
|
8,095
|
|
|
|
8,519
|
|
|
|
33,691
|
|
|
|
34,014
|
|
|
Credit card, debit
card and ATM card income
|
|
|
9,314
|
|
|
|
9,285
|
|
|
|
9,206
|
|
|
|
8,666
|
|
|
|
8,816
|
|
|
|
36,471
|
|
|
|
34,764
|
|
|
Service charges on
deposit accounts
|
|
|
6,316
|
|
|
|
6,262
|
|
|
|
6,078
|
|
|
|
5,926
|
|
|
|
5,932
|
|
|
|
24,582
|
|
|
|
24,730
|
|
|
Trust
income
|
|
|
3,360
|
|
|
|
3,326
|
|
|
|
3,358
|
|
|
|
3,225
|
|
|
|
3,498
|
|
|
|
13,269
|
|
|
|
12,250
|
|
|
Mortgage
income
|
|
|
542
|
|
|
|
857
|
|
|
|
661
|
|
|
|
238
|
|
|
|
102
|
|
|
|
2,298
|
|
|
|
1,399
|
|
|
Brokerage
income
|
|
|
1,059
|
|
|
|
1,067
|
|
|
|
1,000
|
|
|
|
1,149
|
|
|
|
905
|
|
|
|
4,275
|
|
|
|
3,654
|
|
|
Bank owned life
insurance income
|
|
|
1,882
|
|
|
|
1,864
|
|
|
|
1,553
|
|
|
|
1,354
|
|
|
|
1,329
|
|
|
|
6,653
|
|
|
|
5,119
|
|
|
Net (loss) gain on
sale or write-down of assets
|
|
|
(84)
|
|
|
|
(45)
|
|
|
|
1,994
|
|
|
|
121
|
|
|
|
2,087
|
|
|
|
1,986
|
|
|
|
3,934
|
|
|
Other noninterest
income
|
|
|
5,814
|
|
|
|
7,408
|
|
|
|
7,326
|
|
|
|
9,492
|
|
|
|
6,536
|
|
|
|
30,040
|
|
|
|
25,264
|
|
|
Total noninterest
income
|
|
|
36,568
|
|
|
|
38,743
|
|
|
|
39,688
|
|
|
|
38,266
|
|
|
|
37,724
|
|
|
|
153,265
|
|
|
|
145,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
80,486
|
|
|
|
85,423
|
|
|
|
84,723
|
|
|
|
77,798
|
|
|
|
75,353
|
|
|
|
328,430
|
|
|
|
314,713
|
|
|
Net occupancy and
equipment
|
|
|
9,093
|
|
|
|
9,464
|
|
|
|
8,935
|
|
|
|
8,025
|
|
|
|
8,147
|
|
|
|
35,517
|
|
|
|
32,446
|
|
|
Credit and debit card,
data processing and software amortization
|
|
|
10,741
|
|
|
|
10,919
|
|
|
|
10,344
|
|
|
|
9,566
|
|
|
|
9,716
|
|
|
|
41,570
|
|
|
|
37,327
|
|
|
Regulatory assessments
and FDIC insurance
|
|
|
24,940
|
|
|
|
5,155
|
|
|
|
5,097
|
|
|
|
4,973
|
|
|
|
2,873
|
|
|
|
40,165
|
|
|
|
11,381
|
|
|
Core deposit
intangibles amortization
|
|
|
3,559
|
|
|
|
3,576
|
|
|
|
3,167
|
|
|
|
2,374
|
|
|
|
2,558
|
|
|
|
12,676
|
|
|
|
10,336
|
|
|
Depreciation
|
|
|
4,607
|
|
|
|
4,585
|
|
|
|
4,658
|
|
|
|
4,433
|
|
|
|
4,438
|
|
|
|
18,283
|
|
|
|
17,960
|
|
|
Communications
|
|
|
3,572
|
|
|
|
3,686
|
|
|
|
3,693
|
|
|
|
3,462
|
|
|
|
3,506
|
|
|
|
14,413
|
|
|
|
13,005
|
|
|
Other real estate
expense
|
|
|
165
|
|
|
|
153
|
|
|
|
(464)
|
|
|
|
58
|
|
|
|
154
|
|
|
|
(88)
|
|
|
|
761
|
|
|
Net loss (gain) on
sale or write-down of other real estate
|
|
|
34
|
|
|
|
(734)
|
|
|
|
(33)
|
|
|
|
(13)
|
|
|
|
(63)
|
|
|
|
(746)
|
|
|
|
(883)
|
|
|
Merger related
expenses
|
|
|
278
|
|
|
|
1,104
|
|
|
|
12,891
|
|
|
|
860
|
|
|
|
272
|
|
|
|
15,133
|
|
|
|
272
|
|
|
Other noninterest
expense
|
|
|
14,696
|
|
|
|
12,326
|
|
|
|
12,859
|
|
|
|
11,464
|
|
|
|
12,290
|
|
|
|
51,345
|
|
|
|
46,868
|
|
|
Total noninterest
expense
|
|
|
152,171
|
|
|
|
135,657
|
|
|
|
145,870
|
|
|
|
123,000
|
|
|
|
119,244
|
|
|
|
556,698
|
|
|
|
484,186
|
|
|
Income before income
taxes
|
|
|
121,380
|
|
|
|
142,610
|
|
|
|
111,737
|
|
|
|
158,733
|
|
|
|
174,617
|
|
|
|
534,460
|
|
|
|
666,173
|
|
|
Provision for income
taxes
|
|
|
25,904
|
|
|
|
30,402
|
|
|
|
24,799
|
|
|
|
34,039
|
|
|
|
36,737
|
|
|
|
115,144
|
|
|
|
141,657
|
|
|
Net income available to
common shareholders
|
|
$
|
95,476
|
|
|
$
|
112,208
|
|
|
$
|
86,938
|
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
419,316
|
|
|
$
|
524,516
|
|
|
|
|
(C)
|
Interest income on
securities was reduced by net premium amortization of $6,428,
$6,897, $7,131, $7,384 and $8,703 for the three months ended
December 31, 2023, September 30, 2023, June 30, 2023, March 31,
2023 and December 31, 2022, respectively, and $27,840 and $42,957
for the years ended December 31, 2023 and 2022,
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
|
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Dec 31,
2023
|
|
|
Dec 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(D) (E)
|
|
$
|
95,476
|
|
|
$
|
112,208
|
|
|
$
|
86,938
|
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
419,316
|
|
|
$
|
524,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.02
|
|
|
$
|
1.20
|
|
|
$
|
0.94
|
|
|
$
|
1.37
|
|
|
$
|
1.51
|
|
|
$
|
4.51
|
|
|
$
|
5.73
|
|
|
Diluted earnings per
share
|
|
$
|
1.02
|
|
|
$
|
1.20
|
|
|
$
|
0.94
|
|
|
$
|
1.37
|
|
|
$
|
1.51
|
|
|
$
|
4.51
|
|
|
$
|
5.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (F) (J)
|
|
|
0.98
|
%
|
|
|
1.13
|
%
|
|
|
0.89
|
%
|
|
|
1.31
|
%
|
|
|
1.47
|
%
|
|
|
1.08
|
%
|
|
|
1.39
|
%
|
|
Return on average
common equity (F) (J)
|
|
|
5.39
|
%
|
|
|
6.39
|
%
|
|
|
5.01
|
%
|
|
|
7.38
|
%
|
|
|
8.26
|
%
|
|
|
6.03
|
%
|
|
|
7.97
|
%
|
|
Return on average
tangible common equity (F) (G)
(J)
|
|
|
10.54
|
%
|
|
|
12.58
|
%
|
|
|
9.67
|
%
|
|
|
14.34
|
%
|
|
|
16.26
|
%
|
|
|
11.76
|
%
|
|
|
15.94
|
%
|
|
Tax equivalent net
interest margin (D) (E) (H)
|
|
|
2.75
|
%
|
|
|
2.72
|
%
|
|
|
2.73
|
%
|
|
|
2.93
|
%
|
|
|
3.05
|
%
|
|
|
2.78
|
%
|
|
|
3.00
|
%
|
|
Efficiency ratio
(G) (I) (K)
|
|
|
55.61
|
%
|
|
|
48.74
|
%
|
|
|
53.21
|
%
|
|
|
43.68
|
%
|
|
|
40.87
|
%
|
|
|
50.26
|
%
|
|
|
42.23
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
|
18.37
|
%
|
|
|
17.90
|
%
|
|
|
17.46
|
%
|
|
|
17.81
|
%
|
|
|
17.78
|
%
|
|
|
18.37
|
%
|
|
|
17.78
|
%
|
|
Common equity tier 1
capital
|
|
|
15.54
|
%
|
|
|
14.98
|
%
|
|
|
14.49
|
%
|
|
|
15.59
|
%
|
|
|
15.88
|
%
|
|
|
15.54
|
%
|
|
|
15.88
|
%
|
|
Tier 1 risk-based
capital
|
|
|
15.54
|
%
|
|
|
14.98
|
%
|
|
|
14.49
|
%
|
|
|
15.59
|
%
|
|
|
15.88
|
%
|
|
|
15.54
|
%
|
|
|
15.88
|
%
|
|
Total risk-based
capital
|
|
|
16.56
|
%
|
|
|
16.05
|
%
|
|
|
15.52
|
%
|
|
|
16.41
|
%
|
|
|
16.51
|
%
|
|
|
16.56
|
%
|
|
|
16.51
|
%
|
|
Tier 1 leverage
capital
|
|
|
10.39
|
%
|
|
|
10.03
|
%
|
|
|
9.96
|
%
|
|
|
10.06
|
%
|
|
|
10.16
|
%
|
|
|
10.39
|
%
|
|
|
10.16
|
%
|
|
Period end tangible
equity to period end tangible assets (G)
|
|
|
10.31
|
%
|
|
|
9.96
|
%
|
|
|
9.64
|
%
|
|
|
10.01
|
%
|
|
|
9.93
|
%
|
|
|
10.31
|
%
|
|
|
9.93
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in computing earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
93,715
|
|
|
|
93,720
|
|
|
|
92,930
|
|
|
|
91,207
|
|
|
|
91,287
|
|
|
|
92,902
|
|
|
|
91,604
|
|
|
Diluted
|
|
|
93,715
|
|
|
|
93,720
|
|
|
|
92,930
|
|
|
|
91,207
|
|
|
|
91,287
|
|
|
|
92,902
|
|
|
|
91,604
|
|
|
Period end shares
outstanding
|
|
|
93,722
|
|
|
|
93,717
|
|
|
|
93,721
|
|
|
|
90,693
|
|
|
|
91,314
|
|
|
|
93,722
|
|
|
|
91,314
|
|
|
Cash dividends paid per
common share
|
|
$
|
0.56
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
2.21
|
|
|
$
|
2.11
|
|
|
Book value per common
share
|
|
$
|
75.54
|
|
|
$
|
75.04
|
|
|
$
|
74.35
|
|
|
$
|
74.31
|
|
|
$
|
73.37
|
|
|
$
|
75.54
|
|
|
$
|
73.37
|
|
|
Tangible book value per
common share (G)
|
|
$
|
38.62
|
|
|
$
|
38.08
|
|
|
$
|
37.49
|
|
|
$
|
38.13
|
|
|
$
|
37.41
|
|
|
$
|
38.62
|
|
|
$
|
37.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Market
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
68.79
|
|
|
$
|
63.65
|
|
|
$
|
63.13
|
|
|
$
|
78.76
|
|
|
$
|
76.32
|
|
|
$
|
78.76
|
|
|
$
|
80.46
|
|
|
Low
|
|
$
|
49.60
|
|
|
$
|
52.62
|
|
|
$
|
55.12
|
|
|
$
|
58.25
|
|
|
$
|
66.71
|
|
|
$
|
49.60
|
|
|
$
|
64.69
|
|
|
Period end closing
price
|
|
$
|
67.73
|
|
|
$
|
54.58
|
|
|
$
|
56.48
|
|
|
$
|
61.52
|
|
|
$
|
72.68
|
|
|
$
|
67.73
|
|
|
$
|
72.68
|
|
|
Employees – FTE
(excluding overtime)
|
|
|
3,850
|
|
|
|
3,853
|
|
|
|
3,710
|
|
|
|
3,651
|
|
|
|
3,633
|
|
|
|
3,850
|
|
|
|
3,633
|
|
|
Number of banking
centers
|
|
|
285
|
|
|
|
285
|
|
|
|
286
|
|
|
|
272
|
|
|
|
272
|
|
|
|
285
|
|
|
|
272
|
|
|
(D) Includes
purchase accounting adjustments for the periods presented as
follows:
|
|
|
Three Months
Ended
|
|
Year-to-Date
|
|
Dec
31,
2023
|
|
Sep
30,
2023
|
|
Jun
30,
2023
|
|
Mar
31,
2023
|
|
Dec
31,
2022
|
|
Dec
31,
2023
|
|
Dec
31,
2022
|
|
Loan discount
accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-PCD
|
$1,543
|
|
$1,508
|
|
$1,242
|
|
$532
|
|
$603
|
|
$4,825
|
|
$5,924
|
|
PCD
|
$937
|
|
$767
|
|
$1,178
|
|
$339
|
|
$310
|
|
$3,221
|
|
$1,477
|
|
Securities net
accretion (amortization)
|
$598
|
|
$626
|
|
$426
|
|
$(2)
|
|
$(12)
|
|
$1,648
|
|
$116
|
|
Time deposits
amortization
|
$(150)
|
|
$(210)
|
|
$(187)
|
|
$(53)
|
|
$(59)
|
|
$(600)
|
|
$(311)
|
|
|
|
(E)
|
Using effective tax
rate of 21.3%, 21.3%, 22.2%, 21.4% and 21.0% for the three months
ended December 31, 2023, September 30, 2023, June 30, 2023, March
31, 2023 and December 31, 2022, respectively, and 21.5% and 21.3%
for the years ended December 31, 2023 and 2022,
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
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 or write down 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,
and FDIC special assessment, 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
|
|
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
Dec 31,
2022
|
|
|
|
|
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
|
|
$
|
9,828
|
|
|
$
|
185
|
|
|
7.47 %
|
|
|
$
|
9,832
|
|
|
$
|
162
|
|
|
6.54 %
|
|
$
|
1,758
|
|
|
$
|
27
|
|
|
6.09 %
|
|
|
|
Loans held for
investment
|
|
|
20,370,915
|
|
|
|
291,882
|
|
|
5.68 %
|
|
|
|
20,496,075
|
|
|
|
290,566
|
|
|
5.62 %
|
|
|
17,818,769
|
|
|
|
223,768
|
|
|
4.98 %
|
|
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
770,481
|
|
|
|
14,495
|
|
|
7.46 %
|
|
|
|
972,936
|
|
|
|
17,950
|
|
|
7.32 %
|
|
|
747,007
|
|
|
|
11,331
|
|
|
6.02 %
|
|
|
|
Total loans
|
|
|
21,151,224
|
|
|
|
306,562
|
|
|
5.75 %
|
|
|
|
21,478,843
|
|
|
|
308,678
|
|
|
5.70 %
|
|
|
18,567,534
|
|
|
|
235,126
|
|
|
5.02 %
|
|
|
|
Investment
securities
|
|
|
13,074,243
|
|
|
|
68,077
|
|
|
2.07 %
|
|
(M)
|
|
13,512,137
|
|
|
|
69,987
|
|
|
2.05 %
|
(M)
|
|
14,715,516
|
|
|
|
72,533
|
|
|
1.96 %
|
|
(M)
|
|
Federal funds sold and
other earning assets
|
|
|
125,295
|
|
|
|
1,793
|
|
|
5.68 %
|
|
|
|
125,690
|
|
|
|
1,689
|
|
|
5.33 %
|
|
|
101,986
|
|
|
|
933
|
|
|
3.63 %
|
|
|
|
Total interest-earning
assets
|
|
|
34,350,762
|
|
|
|
376,432
|
|
|
4.35 %
|
|
|
|
35,116,670
|
|
|
|
380,354
|
|
|
4.30 %
|
|
|
33,385,036
|
|
|
|
308,592
|
|
|
3.67 %
|
|
|
|
Allowance for credit
losses on loans
|
|
|
(346,493)
|
|
|
|
|
|
|
|
|
|
(343,967)
|
|
|
|
|
|
|
|
|
(282,546)
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,810,942
|
|
|
|
|
|
|
|
|
|
4,829,336
|
|
|
|
|
|
|
|
|
4,515,412
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
38,815,211
|
|
|
|
|
|
|
|
|
$
|
39,602,039
|
|
|
|
|
|
|
|
$
|
37,617,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
4,822,698
|
|
|
$
|
6,789
|
|
|
0.56 %
|
|
|
$
|
4,768,485
|
|
|
$
|
5,182
|
|
|
0.43 %
|
|
$
|
5,843,672
|
|
|
$
|
3,224
|
|
|
0.22 %
|
|
|
|
Savings and money
market deposits
|
|
|
8,815,892
|
|
|
|
45,192
|
|
|
2.03 %
|
|
|
|
8,977,824
|
|
|
|
44,446
|
|
|
1.96 %
|
|
|
9,805,024
|
|
|
|
27,929
|
|
|
1.13 %
|
|
|
|
Certificates and other
time deposits
|
|
|
3,442,115
|
|
|
|
32,988
|
|
|
3.80 %
|
|
|
|
3,172,178
|
|
|
|
26,441
|
|
|
3.31 %
|
|
|
2,066,085
|
|
|
|
4,895
|
|
|
0.94 %
|
|
|
|
Other
borrowings
|
|
|
4,028,263
|
|
|
|
52,386
|
|
|
5.16 %
|
|
|
|
4,671,449
|
|
|
|
62,190
|
|
|
5.28 %
|
|
|
1,465,533
|
|
|
|
14,682
|
|
|
3.97 %
|
|
|
|
Securities sold under
repurchase agreements
|
|
|
300,317
|
|
|
|
2,094
|
|
|
2.77 %
|
|
|
|
389,149
|
|
|
|
2,533
|
|
|
2.58 %
|
|
|
441,405
|
|
|
|
1,725
|
|
|
1.55 %
|
|
|
|
Subordinated
debentures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,578
|
|
|
|
38
|
|
|
5.85 %
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Total interest-bearing
liabilities
|
|
|
21,409,285
|
|
|
|
139,449
|
|
|
2.58 %
|
|
(N)
|
|
21,981,663
|
|
|
|
140,830
|
|
|
2.54 %
|
(N)
|
|
19,621,719
|
|
|
|
52,455
|
|
|
1.06 %
|
|
(N)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
9,960,240
|
|
|
|
|
|
|
|
|
|
10,269,162
|
|
|
|
|
|
|
|
|
11,064,714
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
36,503
|
|
|
|
|
|
|
|
|
|
36,504
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
323,344
|
|
|
|
|
|
|
|
|
|
290,217
|
|
|
|
|
|
|
|
|
224,512
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
31,729,372
|
|
|
|
|
|
|
|
|
|
32,577,546
|
|
|
|
|
|
|
|
|
30,940,892
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
7,085,839
|
|
|
|
|
|
|
|
|
|
7,024,493
|
|
|
|
|
|
|
|
|
6,677,010
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
38,815,211
|
|
|
|
|
|
|
|
|
$
|
39,602,039
|
|
|
|
|
|
|
|
$
|
37,617,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin
|
|
|
|
|
$
|
236,983
|
|
|
2.74 %
|
|
|
|
|
|
$
|
239,524
|
|
|
2.71 %
|
|
|
|
|
$
|
256,137
|
|
|
3.04 %
|
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
952
|
|
|
|
|
|
|
|
|
|
1,000
|
|
|
|
|
|
|
|
|
440
|
|
|
|
|
|
|
Net interest income and
margin
(tax equivalent basis)
|
|
|
|
|
$
|
237,935
|
|
|
2.75 %
|
|
|
|
|
|
$
|
240,524
|
|
|
2.72 %
|
|
|
|
|
$
|
256,577
|
|
|
3.05 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(L)
|
Annualized and based
on an actual 365-day basis.
|
|
(M)
|
Yield on securities
was impacted by net premium amortization of $6,428, $6,897 and
$8,703 for the three months ended December 31, 2023, September 30,
2023 and December 31, 2022, respectively.
|
|
(N)
|
Total cost of funds,
including noninterest bearing deposits, was 1.76%, 1.73% and 0.68%
for the three months ended December 31, 2023, September 30, 2023
and December 31, 2022, respectively.
|
|
Prosperity Bancshares,
Inc.®
|
|
Financial Highlights
(Unaudited)
|
|
(Dollars in
thousands)
|
|
|
YIELD
ANALYSIS
|
|
Year-to-Date
|
|
|
|
|
Dec 31,
2023
|
|
Dec 31,
2022
|
|
|
|
|
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
|
|
$
|
6,508
|
|
|
$
|
452
|
|
|
6.95 %
|
|
$
|
3,420
|
|
|
$
|
164
|
|
|
4.80 %
|
|
|
|
Loans held for
investment
|
|
|
19,754,541
|
|
|
|
1,089,743
|
|
|
5.52 %
|
|
|
17,155,082
|
|
|
|
788,504
|
|
|
4.60 %
|
|
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
815,853
|
|
|
|
58,801
|
|
|
7.21 %
|
|
|
1,051,237
|
|
|
|
42,521
|
|
|
4.04 %
|
|
|
|
Total loans
|
|
|
20,576,902
|
|
|
|
1,148,996
|
|
|
5.58 %
|
|
|
18,209,739
|
|
|
|
831,189
|
|
|
4.56 %
|
|
|
|
Investment
securities
|
|
|
13,719,899
|
|
|
|
283,302
|
|
|
2.06 %
|
(P)
|
|
14,613,799
|
|
|
|
260,416
|
|
|
1.78 %
|
|
(P)
|
|
Federal funds sold and
other earning assets
|
|
|
248,691
|
|
|
|
12,245
|
|
|
4.92 %
|
|
|
709,270
|
|
|
|
3,230
|
|
|
0.46 %
|
|
|
|
Total interest-earning
assets
|
|
|
34,545,492
|
|
|
|
1,444,543
|
|
|
4.18 %
|
|
|
33,532,808
|
|
|
|
1,094,835
|
|
|
3.26 %
|
|
|
|
Allowance for credit
losses on loans
|
|
|
(314,350)
|
|
|
|
|
|
|
|
|
(283,997)
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets
|
|
|
4,741,815
|
|
|
|
|
|
|
|
|
4,475,434
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
38,972,957
|
|
|
|
|
|
|
|
$
|
37,724,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
$
|
5,150,049
|
|
|
$
|
19,554
|
|
|
0.38 %
|
|
$
|
6,299,924
|
|
|
$
|
10,175
|
|
|
0.16 %
|
|
|
|
Savings and money
market deposits
|
|
|
9,129,845
|
|
|
|
168,184
|
|
|
1.84 %
|
|
|
10,384,178
|
|
|
|
45,907
|
|
|
0.44 %
|
|
|
|
Certificates and other
time deposits
|
|
|
2,832,754
|
|
|
|
84,607
|
|
|
2.99 %
|
|
|
2,322,754
|
|
|
|
12,030
|
|
|
0.52 %
|
|
|
|
Other
borrowings
|
|
|
4,008,616
|
|
|
|
206,323
|
|
|
5.15 %
|
|
|
543,107
|
|
|
|
18,851
|
|
|
3.47 %
|
|
|
|
Securities sold under
repurchase agreements
|
|
|
389,313
|
|
|
|
9,404
|
|
|
2.42 %
|
|
|
457,553
|
|
|
|
2,641
|
|
|
0.58 %
|
|
|
|
Subordinated
debentures
|
|
|
1,031
|
|
|
|
38
|
|
|
3.69 %
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Total interest-bearing
liabilities
|
|
|
21,511,608
|
|
|
|
488,110
|
|
|
2.27 %
|
(Q)
|
|
20,007,516
|
|
|
|
89,604
|
|
|
0.45 %
|
|
(Q)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
10,224,241
|
|
|
|
|
|
|
|
|
10,903,539
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
33,271
|
|
|
|
|
|
|
|
|
29,947
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
253,047
|
|
|
|
|
|
|
|
|
204,574
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
32,022,167
|
|
|
|
|
|
|
|
|
31,145,576
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
6,950,790
|
|
|
|
|
|
|
|
|
6,578,669
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
38,972,957
|
|
|
|
|
|
|
|
$
|
37,724,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin
|
|
|
|
|
$
|
956,433
|
|
|
2.77 %
|
|
|
|
|
$
|
1,005,231
|
|
|
3.00 %
|
|
|
|
Non-GAAP to GAAP
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent
adjustment
|
|
|
|
|
|
3,640
|
|
|
|
|
|
|
|
|
1,815
|
|
|
|
|
|
|
Net interest income and
margin (tax equivalent basis)
|
|
|
|
|
$
|
960,073
|
|
|
2.78 %
|
|
|
|
|
$
|
1,007,046
|
|
|
3.00 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(O)
|
Based on an actual
365-day basis.
|
|
(P)
|
Yield on securities
was impacted by net premium amortization of $27,840 and $42,957 for
the years ended December 31, 2023 and 2022,
respectively.
|
|
(Q)
|
Total cost of funds,
including noninterest bearing deposits, was 1.54% and 0.29% for the
years ended December 31, 2023 and 2022,
respectively.
|
|
Prosperity Bancshares,
Inc.®
|
|
Financial Highlights
(Unaudited)
|
|
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
YIELD TREND
(R)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
7.47
|
%
|
|
|
6.54
|
%
|
|
|
6.87
|
%
|
|
|
6.58
|
%
|
|
|
6.09
|
%
|
|
Loans held for
investment
|
|
5.68
|
%
|
|
|
5.62
|
%
|
|
|
5.48
|
%
|
|
|
5.24
|
%
|
|
|
4.98
|
%
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
7.46
|
%
|
|
|
7.32
|
%
|
|
|
7.09
|
%
|
|
|
6.88
|
%
|
|
|
6.02
|
%
|
|
Total loans
|
|
5.75
|
%
|
|
|
5.70
|
%
|
|
|
5.55
|
%
|
|
|
5.29
|
%
|
|
|
5.02
|
%
|
|
Investment securities
(S)
|
|
2.07
|
%
|
|
|
2.05
|
%
|
|
|
2.07
|
%
|
|
|
2.07
|
%
|
|
|
1.96
|
%
|
|
Federal funds sold and
other earning assets
|
|
5.68
|
%
|
|
|
5.33
|
%
|
|
|
4.69
|
%
|
|
|
4.74
|
%
|
|
|
3.63
|
%
|
|
Total interest-earning
assets
|
|
4.35
|
%
|
|
|
4.30
|
%
|
|
|
4.15
|
%
|
|
|
3.92
|
%
|
|
|
3.67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
|
0.56
|
%
|
|
|
0.43
|
%
|
|
|
0.30
|
%
|
|
|
0.26
|
%
|
|
|
0.22
|
%
|
|
Savings and money
market deposits
|
|
2.03
|
%
|
|
|
1.96
|
%
|
|
|
1.88
|
%
|
|
|
1.50
|
%
|
|
|
1.13
|
%
|
|
Certificates and other
time deposits
|
|
3.80
|
%
|
|
|
3.31
|
%
|
|
|
2.59
|
%
|
|
|
1.59
|
%
|
|
|
0.94
|
%
|
|
Other
borrowings
|
|
5.16
|
%
|
|
|
5.28
|
%
|
|
|
5.20
|
%
|
|
|
4.83
|
%
|
|
|
3.97
|
%
|
|
Securities sold under
repurchase agreements
|
|
2.77
|
%
|
|
|
2.58
|
%
|
|
|
2.43
|
%
|
|
|
1.99
|
%
|
|
|
1.55
|
%
|
|
Subordinated
debentures
|
|
—
|
|
|
|
5.85
|
%
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total interest-bearing
liabilities
|
|
2.58
|
%
|
|
|
2.54
|
%
|
|
|
2.28
|
%
|
|
|
1.63
|
%
|
|
|
1.06
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
|
2.74
|
%
|
|
|
2.71
|
%
|
|
|
2.72
|
%
|
|
|
2.92
|
%
|
|
|
3.04
|
%
|
|
Net Interest Margin
(tax equivalent)
|
|
2.75
|
%
|
|
|
2.72
|
%
|
|
|
2.73
|
%
|
|
|
2.93
|
%
|
|
|
3.05
|
%
|
|
|
|
(R)
|
Annualized and based
on average balances on an actual 365-day basis.
|
|
(S)
|
Yield on securities
was impacted by net premium amortization of $6,428, $6,897, $7,131,
$7,384 and $8,703 for the three months ended December 31, 2023,
September 30, 2023, June 30, 2023, March 31, 2023 and December 31,
2022, respectively.
|
|
Prosperity Bancshares,
Inc.®
|
|
Financial Highlights
(Unaudited)
|
|
(Dollars in
thousands)
|
|
|
|
Three Months
Ended
|
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Balance Sheet
Averages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
$
|
9,828
|
|
|
$
|
9,832
|
|
|
$
|
3,910
|
|
|
$
|
2,343
|
|
|
$
|
1,758
|
|
|
Loans held for
investment
|
|
|
20,370,915
|
|
|
|
20,496,075
|
|
|
|
19,802,751
|
|
|
|
18,317,712
|
|
|
|
17,818,769
|
|
|
Loans held for
investment - Warehouse Purchase Program
|
|
|
770,481
|
|
|
|
972,936
|
|
|
|
898,768
|
|
|
|
617,822
|
|
|
|
747,007
|
|
|
Total loans
|
|
|
21,151,224
|
|
|
|
21,478,843
|
|
|
|
20,705,429
|
|
|
|
18,937,877
|
|
|
|
18,567,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
|
|
13,074,243
|
|
|
|
13,512,137
|
|
|
|
13,976,818
|
|
|
|
14,332,509
|
|
|
|
14,715,516
|
|
|
Federal funds sold and
other earning assets
|
|
|
125,295
|
|
|
|
125,690
|
|
|
|
150,300
|
|
|
|
600,048
|
|
|
|
101,986
|
|
|
Total interest-earning
assets
|
|
|
34,350,762
|
|
|
|
35,116,670
|
|
|
|
34,832,547
|
|
|
|
33,870,434
|
|
|
|
33,385,036
|
|
|
Allowance for credit
losses on loans
|
|
|
(346,493)
|
|
|
|
(343,967)
|
|
|
|
(283,594)
|
|
|
|
(282,316)
|
|
|
|
(282,546)
|
|
|
Cash and due from
banks
|
|
|
302,864
|
|
|
|
301,201
|
|
|
|
281,593
|
|
|
|
319,960
|
|
|
|
306,235
|
|
|
Goodwill
|
|
|
3,396,224
|
|
|
|
3,387,293
|
|
|
|
3,291,659
|
|
|
|
3,231,637
|
|
|
|
3,231,637
|
|
|
Core deposit
intangibles, net
|
|
|
65,986
|
|
|
|
69,551
|
|
|
|
48,616
|
|
|
|
50,208
|
|
|
|
52,591
|
|
|
Other real
estate
|
|
|
4,781
|
|
|
|
6,301
|
|
|
|
2,712
|
|
|
|
2,083
|
|
|
|
2,075
|
|
|
Fixed assets,
net
|
|
|
370,900
|
|
|
|
367,814
|
|
|
|
357,593
|
|
|
|
342,380
|
|
|
|
338,572
|
|
|
Other assets
|
|
|
670,187
|
|
|
|
697,176
|
|
|
|
756,500
|
|
|
|
643,467
|
|
|
|
584,302
|
|
|
Total
assets
|
|
$
|
38,815,211
|
|
|
$
|
39,602,039
|
|
|
$
|
39,287,626
|
|
|
$
|
38,177,853
|
|
|
$
|
37,617,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
9,960,240
|
|
|
$
|
10,269,162
|
|
|
$
|
10,274,819
|
|
|
$
|
10,389,980
|
|
|
$
|
11,064,714
|
|
|
Interest-bearing demand
deposits
|
|
|
4,822,698
|
|
|
|
4,768,485
|
|
|
|
5,147,453
|
|
|
|
5,877,641
|
|
|
|
5,843,672
|
|
|
Savings and money
market deposits
|
|
|
8,815,892
|
|
|
|
8,977,824
|
|
|
|
9,156,047
|
|
|
|
9,579,679
|
|
|
|
9,805,024
|
|
|
Certificates and other
time deposits
|
|
|
3,442,115
|
|
|
|
3,172,178
|
|
|
|
2,652,064
|
|
|
|
2,045,580
|
|
|
|
2,066,085
|
|
|
Total
deposits
|
|
|
27,040,945
|
|
|
|
27,187,649
|
|
|
|
27,230,383
|
|
|
|
27,892,880
|
|
|
|
28,779,495
|
|
|
Other
borrowings
|
|
|
4,028,263
|
|
|
|
4,671,449
|
|
|
|
4,427,914
|
|
|
|
2,887,011
|
|
|
|
1,465,533
|
|
|
Securities sold under
repurchase agreements
|
|
|
300,317
|
|
|
|
389,149
|
|
|
|
441,303
|
|
|
|
427,887
|
|
|
|
441,405
|
|
|
Subordinated
debentures
|
|
|
—
|
|
|
|
2,578
|
|
|
|
1,547
|
|
|
|
—
|
|
|
|
—
|
|
|
Allowance for credit
losses on off-balance sheet credit exposures
|
|
|
36,503
|
|
|
|
36,504
|
|
|
|
30,022
|
|
|
|
29,947
|
|
|
|
29,947
|
|
|
Other
liabilities
|
|
|
323,344
|
|
|
|
290,217
|
|
|
|
220,775
|
|
|
|
180,685
|
|
|
|
224,512
|
|
|
Shareholders'
equity
|
|
|
7,085,839
|
|
|
|
7,024,493
|
|
|
|
6,935,682
|
|
|
|
6,759,443
|
|
|
|
6,677,010
|
|
|
Total liabilities and
equity
|
|
$
|
38,815,211
|
|
|
$
|
39,602,039
|
|
|
$
|
39,287,626
|
|
|
$
|
38,177,853
|
|
|
$
|
37,617,902
|
|
|
Prosperity Bancshares,
Inc.®
|
|
Financial Highlights
(Unaudited)
|
|
(Dollars in
thousands)
|
|
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Period End
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
$1,936,717
|
9.2 %
|
|
$2,153,391
|
10.1 %
|
|
$2,245,620
|
10.5 %
|
|
$2,074,078
|
10.7 %
|
|
$2,165,263
|
11.6 %
|
|
Warehouse purchase
program
|
|
822,245
|
3.9 %
|
|
912,327
|
4.3 %
|
|
1,148,883
|
5.3 %
|
|
799,115
|
4.1 %
|
|
740,620
|
3.9 %
|
|
Construction, land
development and other land loans
|
|
3,076,591
|
14.5 %
|
|
3,200,479
|
14.9 %
|
|
3,215,016
|
14.8 %
|
|
2,899,980
|
15.0 %
|
|
2,805,438
|
14.9 %
|
|
1-4 family
residential
|
|
7,207,226
|
34.0 %
|
|
7,032,593
|
32.8 %
|
|
6,780,813
|
31.3 %
|
|
6,055,532
|
31.3 %
|
|
5,774,814
|
30.6 %
|
|
Home equity
|
|
960,852
|
4.5 %
|
|
969,498
|
4.5 %
|
|
977,070
|
4.5 %
|
|
959,124
|
5.0 %
|
|
966,410
|
5.1 %
|
|
Commercial real estate
(includes multi-family residential)
|
|
5,662,948
|
26.7 %
|
|
5,606,837
|
26.2 %
|
|
5,676,526
|
26.2 %
|
|
5,133,693
|
26.6 %
|
|
4,986,211
|
26.5 %
|
|
Agriculture (includes
farmland)
|
|
816,043
|
3.9 %
|
|
801,933
|
3.7 %
|
|
804,376
|
3.7 %
|
|
721,395
|
3.7 %
|
|
688,033
|
3.6 %
|
|
Consumer and
other
|
|
329,593
|
1.6 %
|
|
306,018
|
1.4 %
|
|
305,207
|
1.4 %
|
|
288,300
|
1.5 %
|
|
283,559
|
1.5 %
|
|
Energy
|
|
368,323
|
1.7 %
|
|
449,637
|
2.1 %
|
|
500,435
|
2.3 %
|
|
403,142
|
2.1 %
|
|
429,479
|
2.3 %
|
|
Total loans
|
|
$21,180,538
|
|
|
$21,432,713
|
|
|
$21,653,946
|
|
|
$19,334,359
|
|
|
$18,839,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
Types
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
DDA
|
|
$9,776,572
|
36.0 %
|
|
$10,281,893
|
37.6 %
|
|
$10,364,921
|
37.9 %
|
|
$10,108,348
|
37.4 %
|
|
$10,915,448
|
38.2 %
|
|
Interest-bearing
DDA
|
|
5,115,945
|
18.8 %
|
|
4,797,259
|
17.6 %
|
|
4,953,090
|
18.1 %
|
|
5,332,086
|
19.8 %
|
|
5,986,203
|
21.0 %
|
|
Money market
|
|
5,859,701
|
21.6 %
|
|
5,892,505
|
21.6 %
|
|
5,904,160
|
21.5 %
|
|
6,021,449
|
22.3 %
|
|
6,164,025
|
21.6 %
|
|
Savings
|
|
2,881,397
|
10.6 %
|
|
3,005,936
|
11.0 %
|
|
3,179,351
|
11.6 %
|
|
3,304,482
|
12.2 %
|
|
3,471,970
|
12.2 %
|
|
Certificates and other
time deposits
|
|
3,546,194
|
13.0 %
|
|
3,335,207
|
12.2 %
|
|
2,979,364
|
10.9 %
|
|
2,237,871
|
8.3 %
|
|
1,995,885
|
7.0 %
|
|
Total
deposits
|
|
$27,179,809
|
|
|
$27,312,800
|
|
|
$27,380,886
|
|
|
$27,004,236
|
|
|
$28,533,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan to Deposit
Ratio
|
|
77.9 %
|
|
|
78.5 %
|
|
|
79.1 %
|
|
|
71.6 %
|
|
|
66.0 %
|
|
|
Prosperity Bancshares,
Inc.®
|
|
Financial Highlights
(Unaudited)
|
|
(Dollars in
thousands)
|
|
Construction
Loans
|
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family
residential construction
|
|
$
|
1,088,636
|
|
|
35.4
|
%
|
|
$
|
1,157,016
|
|
|
36.1
|
%
|
|
$
|
1,244,631
|
|
|
38.7
|
%
|
|
$
|
1,179,883
|
|
|
40.7
|
%
|
|
$
|
1,097,176
|
|
|
39.1
|
%
|
|
Land
development
|
|
|
367,849
|
|
|
12.0
|
%
|
|
|
359,518
|
|
|
11.2
|
%
|
|
|
310,199
|
|
|
9.7
|
%
|
|
|
222,511
|
|
|
7.7
|
%
|
|
|
181,747
|
|
|
6.5
|
%
|
|
Raw land
|
|
|
328,365
|
|
|
10.7
|
%
|
|
|
340,659
|
|
|
10.7
|
%
|
|
|
359,228
|
|
|
11.2
|
%
|
|
|
326,168
|
|
|
11.2
|
%
|
|
|
332,603
|
|
|
11.9
|
%
|
|
Residential
lots
|
|
|
222,591
|
|
|
7.2
|
%
|
|
|
216,659
|
|
|
6.8
|
%
|
|
|
216,706
|
|
|
6.7
|
%
|
|
|
226,600
|
|
|
7.8
|
%
|
|
|
243,942
|
|
|
8.7
|
%
|
|
Commercial
lots
|
|
|
155,415
|
|
|
5.0
|
%
|
|
|
154,425
|
|
|
4.8
|
%
|
|
|
158,278
|
|
|
4.9
|
%
|
|
|
167,151
|
|
|
5.8
|
%
|
|
|
177,378
|
|
|
6.3
|
%
|
|
Commercial construction
and other
|
|
|
914,436
|
|
|
29.7
|
%
|
|
|
973,022
|
|
|
30.4
|
%
|
|
|
927,025
|
|
|
28.8
|
%
|
|
|
777,678
|
|
|
26.8
|
%
|
|
|
772,606
|
|
|
27.5
|
%
|
|
Net unaccreted
discount
|
|
|
(701)
|
|
|
|
|
|
(820)
|
|
|
|
|
|
(1,051)
|
|
|
|
|
|
(11)
|
|
|
|
|
|
(14)
|
|
|
|
|
Total construction
loans
|
|
$
|
3,076,591
|
|
|
|
|
$
|
3,200,479
|
|
|
|
|
$
|
3,215,016
|
|
|
|
|
$
|
2,899,980
|
|
|
|
|
$
|
2,805,438
|
|
|
|
|
Non-Owner Occupied
Commercial Real Estate Loans by Metropolitan Statistical Area (MSA)
as of December 31, 2023
|
|
|
Houston
|
|
|
Dallas
|
|
|
Austin
|
|
|
OK
City
|
|
|
Tulsa
|
|
|
Other
(T)
|
|
|
Total
|
|
|
|
Collateral
Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopping
center/retail
|
$
|
353,014
|
|
|
$
|
287,131
|
|
|
$
|
59,778
|
|
|
$
|
15,231
|
|
|
$
|
14,662
|
|
|
$
|
290,654
|
|
|
$
|
1,020,470
|
|
|
|
Commercial and
industrial buildings
|
|
164,582
|
|
|
|
101,957
|
|
|
|
25,833
|
|
|
|
31,071
|
|
|
|
18,242
|
|
|
|
269,728
|
|
|
|
611,413
|
|
|
|
Office
buildings
|
|
84,064
|
|
|
|
222,729
|
|
|
|
54,147
|
|
|
|
48,961
|
|
|
|
3,934
|
|
|
|
97,328
|
|
|
|
511,163
|
|
|
|
Medical
buildings
|
|
75,533
|
|
|
|
17,124
|
|
|
|
1,740
|
|
|
|
43,605
|
|
|
|
33,186
|
|
|
|
57,860
|
|
|
|
229,048
|
|
|
|
Apartment
buildings
|
|
138,011
|
|
|
|
127,623
|
|
|
|
41,696
|
|
|
|
14,215
|
|
|
|
13,543
|
|
|
|
212,276
|
|
|
|
547,364
|
|
|
|
Hotel
|
|
111,974
|
|
|
|
86,862
|
|
|
|
39,550
|
|
|
|
18,281
|
|
|
|
—
|
|
|
|
169,238
|
|
|
|
425,905
|
|
|
|
Other
|
|
92,153
|
|
|
|
62,468
|
|
|
|
41,769
|
|
|
|
8,381
|
|
|
|
1,662
|
|
|
|
78,384
|
|
|
|
284,817
|
|
|
|
Total
|
$
|
1,019,331
|
|
|
$
|
905,894
|
|
|
$
|
264,513
|
|
|
$
|
179,745
|
|
|
$
|
85,229
|
|
|
$
|
1,175,468
|
|
|
$
|
3,630,180
|
|
(U)
|
|
Acquired
Loans
|
|
|
Non-PCD
Loans
|
|
|
PCD
Loans
|
|
|
Total Acquired
Loans
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Sept 30,
2023
|
|
|
Balance at
Dec 31,
2023
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Sept 30,
2023
|
|
|
Balance at
Dec 31,
2023
|
|
|
Balance at
Acquisition
Date
|
|
|
Balance at
Sept 30,
2023
|
|
|
Balance at
Dec 31,
2023
|
|
|
Loan
marks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(V)
|
$
|
345,599
|
|
|
$
|
871
|
|
|
$
|
506
|
|
|
$
|
320,052
|
|
|
$
|
2,685
|
|
|
$
|
2,594
|
|
|
$
|
665,651
|
|
|
$
|
3,556
|
|
|
$
|
3,100
|
|
|
FirstCapital Bank
(W)
|
|
22,648
|
|
|
|
20,672
|
|
|
|
19,486
|
|
|
|
7,790
|
|
|
|
6,658
|
|
|
|
5,320
|
|
|
|
30,438
|
|
|
|
27,330
|
|
|
|
24,806
|
|
|
Total
|
|
368,247
|
|
|
|
21,543
|
|
|
|
19,992
|
|
|
|
327,842
|
|
|
|
9,343
|
|
|
|
7,914
|
|
|
|
696,089
|
|
|
|
30,886
|
|
|
|
27,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired banks
(V)
|
|
12,286,159
|
|
|
|
1,104,770
|
|
|
|
1,043,525
|
|
|
|
689,573
|
|
|
|
62,053
|
|
|
|
58,310
|
|
|
|
12,975,732
|
|
|
|
1,166,823
|
|
|
|
1,101,835
|
|
|
FirstCapital Bank
(W)
|
|
1,021,694
|
|
|
|
855,052
|
|
|
|
780,284
|
|
|
|
627,991
|
|
|
|
558,271
|
|
|
|
475,343
|
|
|
|
1,649,685
|
|
|
|
1,413,323
|
|
|
|
1,255,627
|
|
|
Total
|
|
13,307,853
|
|
|
|
1,959,822
|
|
|
|
1,823,809
|
|
|
|
1,317,564
|
|
|
|
620,324
|
|
|
|
533,653
|
|
|
|
14,625,417
|
|
(X)
|
|
2,580,146
|
|
|
|
2,357,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired portfolio
loan balances less loan marks
|
$
|
12,939,606
|
|
|
$
|
1,938,279
|
|
|
$
|
1,803,817
|
|
|
$
|
989,722
|
|
|
$
|
610,981
|
|
|
$
|
525,739
|
|
|
$
|
13,929,328
|
|
|
$
|
2,549,260
|
|
|
$
|
2,329,556
|
|
|
|
|
(T)
|
Includes
other MSA and non-MSA regions.
|
|
(U)
|
Represents a portion
of total commercial real estate loans of $5.663 billion as of
December 31, 2023.
|
|
(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)
|
FirstCapital Bank
merger was completed on May 1, 2023. The 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)
|
Actual principal
balances acquired.
|
|
Prosperity Bancshares,
Inc.®
|
|
Financial Highlights
(Unaudited)
|
|
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Dec 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
|
68,688
|
|
|
$
|
59,729
|
|
|
$
|
57,723
|
|
|
$
|
22,496
|
|
|
$
|
19,614
|
|
|
$
|
68,688
|
|
|
$
|
19,614
|
|
|
Accruing loans 90 or
more days past due
|
|
2,195
|
|
|
|
397
|
|
|
|
1,744
|
|
|
|
—
|
|
|
|
5,917
|
|
|
|
2,195
|
|
|
|
5,917
|
|
|
Total nonperforming
loans
|
|
70,883
|
|
|
|
60,126
|
|
|
|
59,467
|
|
|
|
22,496
|
|
|
|
25,531
|
|
|
|
70,883
|
|
|
|
25,531
|
|
|
Repossessed
assets
|
|
76
|
|
|
|
35
|
|
|
|
153
|
|
|
|
—
|
|
|
|
—
|
|
|
|
76
|
|
|
|
—
|
|
|
Other real
estate
|
|
1,708
|
|
|
|
9,320
|
|
|
|
3,107
|
|
|
|
1,989
|
|
|
|
1,963
|
|
|
|
1,708
|
|
|
|
1,963
|
|
|
Total nonperforming
assets
|
$
|
72,667
|
|
|
$
|
69,481
|
|
|
$
|
62,727
|
|
|
$
|
24,485
|
|
|
$
|
27,494
|
|
|
$
|
72,667
|
|
|
$
|
27,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
8,957
|
|
|
$
|
22,219
|
|
|
$
|
24,027
|
|
|
$
|
2,832
|
|
|
$
|
3,921
|
|
|
$
|
8,957
|
|
|
$
|
3,921
|
|
|
Construction, land
development and other land loans
|
|
17,343
|
|
|
|
8,684
|
|
|
|
4,245
|
|
|
|
3,210
|
|
|
|
6,166
|
|
|
|
17,343
|
|
|
|
6,166
|
|
|
1-4 family residential
(includes home equity)
|
|
26,096
|
|
|
|
23,708
|
|
|
|
19,609
|
|
|
|
16,951
|
|
|
|
15,326
|
|
|
|
26,096
|
|
|
|
15,326
|
|
|
Commercial real estate
(includes multi-family residential)
|
|
18,775
|
|
|
|
13,341
|
|
|
|
13,504
|
|
|
|
1,051
|
|
|
|
1,649
|
|
|
|
18,775
|
|
|
|
1,649
|
|
|
Agriculture (includes
farmland)
|
|
1,460
|
|
|
|
1,511
|
|
|
|
1,284
|
|
|
|
432
|
|
|
|
421
|
|
|
|
1,460
|
|
|
|
421
|
|
|
Consumer and
other
|
|
36
|
|
|
|
18
|
|
|
|
58
|
|
|
|
9
|
|
|
|
11
|
|
|
|
36
|
|
|
|
11
|
|
|
Total
|
$
|
72,667
|
|
|
$
|
69,481
|
|
|
$
|
62,727
|
|
|
$
|
24,485
|
|
|
$
|
27,494
|
|
|
$
|
72,667
|
|
|
$
|
27,494
|
|
|
Number of
loans/properties
|
|
292
|
|
|
|
260
|
|
|
|
241
|
|
|
|
190
|
|
|
|
170
|
|
|
|
292
|
|
|
|
170
|
|
|
Allowance for credit
losses on loans
|
$
|
332,362
|
|
|
$
|
351,495
|
|
|
$
|
345,209
|
|
|
$
|
282,191
|
|
|
$
|
281,576
|
|
|
$
|
332,362
|
|
|
$
|
281,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (includes energy)
|
$
|
16,123
|
|
|
$
|
1,594
|
|
|
$
|
160
|
|
|
$
|
(1,472)
|
|
|
$
|
(643)
|
|
|
$
|
16,405
|
|
|
$
|
(841)
|
|
|
Construction, land
development and other land loans
|
|
(5)
|
|
|
|
(5)
|
|
|
|
50
|
|
|
|
(13)
|
|
|
|
(5)
|
|
|
|
27
|
|
|
|
416
|
|
|
1-4 family residential
(includes home equity)
|
|
20
|
|
|
|
(78)
|
|
|
|
(70)
|
|
|
|
(140)
|
|
|
|
(55)
|
|
|
|
(268)
|
|
|
|
(202)
|
|
|
Commercial real estate
(includes multi-family residential)
|
|
1,590
|
|
|
|
570
|
|
|
|
14,957
|
|
|
|
(1)
|
|
|
|
74
|
|
|
|
17,116
|
|
|
|
860
|
|
|
Agriculture (includes
farmland)
|
|
—
|
|
|
|
—
|
|
|
|
(78)
|
|
|
|
(6)
|
|
|
|
(14)
|
|
|
|
(84)
|
|
|
|
(7)
|
|
|
Consumer and
other
|
|
1,405
|
|
|
|
1,327
|
|
|
|
1,046
|
|
|
|
1,017
|
|
|
|
1,246
|
|
|
|
4,795
|
|
|
|
4,578
|
|
|
Total
|
$
|
19,133
|
|
|
$
|
3,408
|
|
|
$
|
16,065
|
|
|
$
|
(615)
|
|
|
$
|
603
|
|
|
$
|
37,991
|
|
|
$
|
4,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
average interest-earning assets
|
|
0.21
|
%
|
|
|
0.20
|
%
|
|
|
0.18
|
%
|
|
|
0.07
|
%
|
|
|
0.08
|
%
|
|
|
0.21
|
%
|
|
|
0.08
|
%
|
|
Nonperforming assets to
loans and other real estate
|
|
0.34
|
%
|
|
|
0.32
|
%
|
|
|
0.29
|
%
|
|
|
0.13
|
%
|
|
|
0.15
|
%
|
|
|
0.34
|
%
|
|
|
0.15
|
%
|
|
Net charge-offs to
average loans (annualized)
|
|
0.36
|
%
|
|
|
0.06
|
%
|
|
|
0.31
|
%
|
|
(0.01 %)
|
|
|
|
0.01
|
%
|
|
|
0.18
|
%
|
|
|
0.03
|
%
|
|
Allowance for credit
losses on loans to total loans
|
|
1.57
|
%
|
|
|
1.64
|
%
|
|
|
1.59
|
%
|
|
|
1.46
|
%
|
|
|
1.49
|
%
|
|
|
1.57
|
%
|
|
|
1.49
|
%
|
|
Allowance for credit
losses on loans to total loans, excluding Warehouse Purchase
Program loans (G)
|
|
1.63
|
%
|
|
|
1.71
|
%
|
|
|
1.68
|
%
|
|
|
1.52
|
%
|
|
|
1.56
|
%
|
|
|
1.63
|
%
|
|
|
1.56
|
%
|
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, and the FDIC special assessment, 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 or write down of assets and securities; and
the efficiency ratio, excluding net gains and losses on the sale or
write down of assets and securities, merger related expenses and
the 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
|
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Dec 31,
2023
|
|
|
Dec 31,
2022
|
|
|
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, and FDIC special assessment, net of
tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (unadjusted)
|
|
$
|
1.02
|
|
|
$
|
1.20
|
|
|
$
|
0.94
|
|
|
$
|
1.37
|
|
|
$
|
1.51
|
|
|
$
|
4.51
|
|
|
$
|
5.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
95,476
|
|
|
$
|
112,208
|
|
|
$
|
86,938
|
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
419,316
|
|
|
$
|
524,516
|
|
|
Merger related
provision for credit losses, net of tax(Y)
|
|
|
—
|
|
|
|
—
|
|
|
|
14,647
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14,647
|
|
|
|
—
|
|
|
Merger related
expenses, net of tax(Y)
|
|
|
220
|
|
|
|
872
|
|
|
|
10,184
|
|
|
|
679
|
|
|
|
215
|
|
|
|
11,955
|
|
|
|
215
|
|
|
FDIC special
assessment, net of tax(Y)
|
|
|
15,736
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
15,736
|
|
|
|
—
|
|
|
Net income excluding
merger related provision for credit losses, net of tax, merger
related expenses, net of tax, and FDIC special assessment, net of
tax(Y):
|
|
$
|
111,432
|
|
|
$
|
113,080
|
|
|
$
|
111,769
|
|
|
$
|
125,373
|
|
|
$
|
138,095
|
|
|
$
|
461,654
|
|
|
$
|
524,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
|
|
93,715
|
|
|
|
93,720
|
|
|
|
92,930
|
|
|
|
91,207
|
|
|
|
91,287
|
|
|
|
92,902
|
|
|
|
91,604
|
|
|
Merger related
provision for credit losses, net of tax, per diluted common
share(Y)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.16
|
|
|
$
|
—
|
|
|
Merger related
expenses, net of tax, per diluted common
share(Y)
|
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
0.11
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
0.13
|
|
|
$
|
—
|
|
|
FDIC special
assessment, net of tax, per diluted common
share(Y)
|
|
$
|
0.17
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.17
|
|
|
$
|
—
|
|
|
Diluted earnings per
share excluding merger related provision for credit losses, net of
tax, merger related expenses, net of tax, and FDIC special
assessment, net of tax:(Y)
|
|
$
|
1.19
|
|
|
$
|
1.21
|
|
|
$
|
1.21
|
|
|
$
|
1.38
|
|
|
$
|
1.51
|
|
|
$
|
4.97
|
|
|
$
|
5.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, and FDIC special assessment, net of
tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (unadjusted)
|
|
|
0.98
|
%
|
|
|
1.13
|
%
|
|
|
0.89
|
%
|
|
|
1.31
|
%
|
|
|
1.47
|
%
|
|
|
1.08
|
%
|
|
|
1.39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding
merger related provision for credit losses, net of tax, merger
related expenses, net of tax, and FDIC special assessment, net of
tax(Y):
|
|
$
|
111,432
|
|
|
$
|
113,080
|
|
|
$
|
111,769
|
|
|
$
|
125,373
|
|
|
$
|
138,095
|
|
|
$
|
461,654
|
|
|
$
|
524,731
|
|
|
Average total
assets
|
|
$
|
38,815,211
|
|
|
$
|
39,602,039
|
|
|
$
|
39,287,626
|
|
|
$
|
38,177,853
|
|
|
$
|
37,617,902
|
|
|
$
|
38,972,957
|
|
|
$
|
37,724,245
|
|
|
Return on average
assets excluding merger related provision for credit losses, net of
tax, merger related expenses, net of tax, and FDIC special
assessment, net of tax (F) (Y)
|
|
|
1.15
|
%
|
|
|
1.14
|
%
|
|
|
1.14
|
%
|
|
|
1.31
|
%
|
|
|
1.47
|
%
|
|
|
1.18
|
%
|
|
|
1.39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Y) Calculated
assuming a federal tax rate of 21.0%.
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Dec 31,
2023
|
|
|
Dec 31,
2022
|
|
|
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, and FDIC special assessment,
net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity (unadjusted)
|
|
|
5.39
|
%
|
|
|
6.39
|
%
|
|
|
5.01
|
%
|
|
|
7.38
|
%
|
|
|
8.26
|
%
|
|
|
6.03
|
%
|
|
|
7.97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
merger related provision for credit losses, net of tax, and merger
related expenses, net of tax, and FDIC special assessment, net of
tax(Y)
|
|
$
|
111,432
|
|
|
$
|
113,080
|
|
|
$
|
111,769
|
|
|
$
|
125,373
|
|
|
$
|
138,095
|
|
|
$
|
461,654
|
|
|
$
|
524,731
|
|
|
Average shareholders'
equity
|
|
$
|
7,085,839
|
|
|
$
|
7,024,493
|
|
|
$
|
6,935,682
|
|
|
$
|
6,759,443
|
|
|
$
|
6,677,010
|
|
|
$
|
6,950,790
|
|
|
$
|
6,578,669
|
|
|
Return on average
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 (F) (Y)
|
|
|
6.29
|
%
|
|
|
6.44
|
%
|
|
|
6.45
|
%
|
|
|
7.42
|
%
|
|
|
8.27
|
%
|
|
|
6.64
|
%
|
|
|
7.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
return on average common equity to return on average tangible
common equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
95,476
|
|
|
$
|
112,208
|
|
|
$
|
86,938
|
|
|
$
|
124,694
|
|
|
$
|
137,880
|
|
|
$
|
419,316
|
|
|
$
|
524,516
|
|
|
Average shareholders'
equity
|
|
$
|
7,085,839
|
|
|
$
|
7,024,493
|
|
|
$
|
6,935,682
|
|
|
$
|
6,759,443
|
|
|
$
|
6,677,010
|
|
|
$
|
6,950,790
|
|
|
$
|
6,578,669
|
|
|
Less: Average goodwill
and other intangible assets
|
|
|
(3,462,210)
|
|
|
|
(3,456,844)
|
|
|
|
(3,340,275)
|
|
|
|
(3,281,845)
|
|
|
|
(3,284,228)
|
|
|
|
(3,385,984)
|
|
|
|
(3,288,068)
|
|
|
Average tangible
shareholders' equity
|
|
$
|
3,623,629
|
|
|
$
|
3,567,649
|
|
|
$
|
3,595,407
|
|
|
$
|
3,477,598
|
|
|
$
|
3,392,782
|
|
|
$
|
3,564,806
|
|
|
$
|
3,290,601
|
|
|
Return on average
tangible common equity (F)
|
|
|
10.54
|
%
|
|
|
12.58
|
%
|
|
|
9.67
|
%
|
|
|
14.34
|
%
|
|
|
16.26
|
%
|
|
|
11.76
|
%
|
|
|
15.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, and FDIC special assessment, net of
tax(Y)
|
|
$
|
111,432
|
|
|
$
|
113,080
|
|
|
$
|
111,769
|
|
|
$
|
125,373
|
|
|
$
|
138,095
|
|
|
$
|
461,654
|
|
|
$
|
524,731
|
|
|
Average shareholders'
equity
|
|
$
|
7,085,839
|
|
|
$
|
7,024,493
|
|
|
$
|
6,935,682
|
|
|
$
|
6,759,443
|
|
|
$
|
6,677,010
|
|
|
$
|
6,950,790
|
|
|
$
|
6,578,669
|
|
|
Less: Average goodwill
and other intangible assets
|
|
|
(3,462,210)
|
|
|
|
(3,456,844)
|
|
|
|
(3,340,275)
|
|
|
|
(3,281,845)
|
|
|
|
(3,284,228)
|
|
|
|
(3,385,984)
|
|
|
|
(3,288,068)
|
|
|
Average tangible
shareholders' equity
|
|
$
|
3,623,629
|
|
|
$
|
3,567,649
|
|
|
$
|
3,595,407
|
|
|
$
|
3,477,598
|
|
|
$
|
3,392,782
|
|
|
$
|
3,564,806
|
|
|
$
|
3,290,601
|
|
|
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 (F)
(Y)
|
|
|
12.30
|
%
|
|
|
12.68
|
%
|
|
|
12.43
|
%
|
|
|
14.42
|
%
|
|
|
16.28
|
%
|
|
|
12.95
|
%
|
|
|
15.95
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
book value per share to tangible book value per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
7,079,330
|
|
|
$
|
7,032,677
|
|
|
$
|
6,968,116
|
|
|
$
|
6,739,117
|
|
|
$
|
6,699,374
|
|
|
$
|
7,079,330
|
|
|
$
|
6,699,374
|
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,460,080)
|
|
|
|
(3,464,012)
|
|
|
|
(3,454,826)
|
|
|
|
(3,280,610)
|
|
|
|
(3,282,984)
|
|
|
|
(3,460,080)
|
|
|
|
(3,282,984)
|
|
|
Tangible shareholders'
equity
|
|
$
|
3,619,250
|
|
|
$
|
3,568,665
|
|
|
$
|
3,513,290
|
|
|
$
|
3,458,507
|
|
|
$
|
3,416,390
|
|
|
$
|
3,619,250
|
|
|
$
|
3,416,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding
|
|
|
93,722
|
|
|
|
93,717
|
|
|
|
93,721
|
|
|
|
90,693
|
|
|
|
91,314
|
|
|
|
93,722
|
|
|
|
91,314
|
|
|
Tangible book value per
share
|
|
$
|
38.62
|
|
|
$
|
38.08
|
|
|
$
|
37.49
|
|
|
$
|
38.13
|
|
|
$
|
37.41
|
|
|
$
|
38.62
|
|
|
$
|
37.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
equity to assets ratio to period end tangible equity to period end
tangible assets ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible shareholders'
equity
|
|
$
|
3,619,250
|
|
|
$
|
3,568,665
|
|
|
$
|
3,513,290
|
|
|
$
|
3,458,507
|
|
|
$
|
3,416,390
|
|
|
$
|
3,619,250
|
|
|
$
|
3,416,390
|
|
|
Total assets
|
|
$
|
38,547,877
|
|
|
$
|
39,295,684
|
|
|
$
|
39,905,131
|
|
|
$
|
37,829,232
|
|
|
$
|
37,689,829
|
|
|
$
|
38,547,877
|
|
|
$
|
37,689,829
|
|
|
Less: Goodwill and
other intangible assets
|
|
|
(3,460,080)
|
|
|
|
(3,464,012)
|
|
|
|
(3,454,826)
|
|
|
|
(3,280,610)
|
|
|
|
(3,282,984)
|
|
|
|
(3,460,080)
|
|
|
|
(3,282,984)
|
|
|
Tangible
assets
|
|
$
|
35,087,797
|
|
|
$
|
35,831,672
|
|
|
$
|
36,450,305
|
|
|
$
|
34,548,622
|
|
|
$
|
34,406,845
|
|
|
$
|
35,087,797
|
|
|
$
|
34,406,845
|
|
|
Period end tangible
equity to period end tangible assets ratio
|
|
|
10.31
|
%
|
|
|
9.96
|
%
|
|
|
9.64
|
%
|
|
|
10.01
|
%
|
|
|
9.93
|
%
|
|
|
10.31
|
%
|
|
|
9.93
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year-to-Date
|
|
|
|
Dec 31,
2023
|
|
|
Sep 30,
2023
|
|
|
Jun 30,
2023
|
|
|
Mar 31,
2023
|
|
|
Dec 31,
2022
|
|
|
Dec 31,
2023
|
|
|
Dec 31,
2022
|
|
|
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
|
|
$
|
332,362
|
|
|
$
|
351,495
|
|
|
$
|
345,209
|
|
|
$
|
282,191
|
|
|
$
|
281,576
|
|
|
$
|
332,362
|
|
|
$
|
281,576
|
|
|
Total loans
|
|
$
|
21,180,538
|
|
|
$
|
21,432,713
|
|
|
$
|
21,653,946
|
|
|
$
|
19,334,359
|
|
|
$
|
18,839,827
|
|
|
$
|
21,180,538
|
|
|
$
|
18,839,827
|
|
|
Less: Warehouse
Purchase Program loans
|
|
|
(822,245)
|
|
|
|
(912,327)
|
|
|
|
(1,148,883)
|
|
|
|
(799,115)
|
|
|
|
(740,620)
|
|
|
|
(822,245)
|
|
|
|
(740,620)
|
|
|
Total loans less
Warehouse Purchase Program
|
|
$
|
20,358,293
|
|
|
$
|
20,520,386
|
|
|
$
|
20,505,063
|
|
|
$
|
18,535,244
|
|
|
$
|
18,099,207
|
|
|
$
|
20,358,293
|
|
|
$
|
18,099,207
|
|
|
Allowance for credit
losses on loans to total loans excluding Warehouse Purchase
Program
|
|
|
1.63
|
%
|
|
|
1.71
|
%
|
|
|
1.68
|
%
|
|
|
1.52
|
%
|
|
|
1.56
|
%
|
|
|
1.63
|
%
|
|
|
1.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
efficiency ratio to efficiency ratio excluding net gains and losses
on the sale or write down of assets and securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
152,171
|
|
|
$
|
135,657
|
|
|
$
|
145,870
|
|
|
$
|
123,000
|
|
|
$
|
119,244
|
|
|
$
|
556,698
|
|
|
$
|
484,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
236,983
|
|
|
$
|
239,524
|
|
|
$
|
236,459
|
|
|
$
|
243,467
|
|
|
$
|
256,137
|
|
|
$
|
956,433
|
|
|
$
|
1,005,231
|
|
|
Noninterest
income
|
|
|
36,568
|
|
|
|
38,743
|
|
|
|
39,688
|
|
|
|
38,266
|
|
|
|
37,724
|
|
|
|
153,265
|
|
|
|
145,128
|
|
|
Less: net (loss) gain
on sale or write down of assets
|
|
|
(84)
|
|
|
|
(45)
|
|
|
|
1,994
|
|
|
|
121
|
|
|
|
2,087
|
|
|
|
1,986
|
|
|
|
3,934
|
|
|
Noninterest income
excluding net gains and losses on the sale or write down of assets
and securities
|
|
|
36,652
|
|
|
|
38,788
|
|
|
|
37,694
|
|
|
|
38,145
|
|
|
|
35,637
|
|
|
|
151,279
|
|
|
|
141,194
|
|
|
Total income excluding
net gains and losses on the sale or write down of assets and
securities
|
|
$
|
273,635
|
|
|
$
|
278,312
|
|
|
$
|
274,153
|
|
|
$
|
281,612
|
|
|
$
|
291,774
|
|
|
$
|
1,107,712
|
|
|
$
|
1,146,425
|
|
|
Efficiency ratio,
excluding net gains and losses on the sale or write down of assets
and securities
|
|
|
55.61
|
%
|
|
|
48.74
|
%
|
|
|
53.21
|
%
|
|
|
43.68
|
%
|
|
|
40.87
|
%
|
|
|
50.26
|
%
|
|
|
42.23
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
efficiency ratio to efficiency ratio, excluding net gains and
losses on the sale or write down of assets and securities, merger
related expenses and FDIC special assessment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
$
|
152,171
|
|
|
$
|
135,657
|
|
|
$
|
145,870
|
|
|
$
|
123,000
|
|
|
$
|
119,244
|
|
|
$
|
556,698
|
|
|
$
|
484,186
|
|
|
Less: merger related
expenses
|
|
|
278
|
|
|
|
1,104
|
|
|
|
12,891
|
|
|
|
860
|
|
|
|
272
|
|
|
|
15,133
|
|
|
|
272
|
|
|
Less: FDIC special
assessment
|
|
|
19,919
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19,919
|
|
|
|
—
|
|
|
Noninterest expense
excluding merger related expenses and FDIC special
assessment
|
|
$
|
131,974
|
|
|
$
|
134,553
|
|
|
$
|
132,979
|
|
|
$
|
122,140
|
|
|
$
|
118,972
|
|
|
$
|
521,646
|
|
|
$
|
483,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
236,983
|
|
|
$
|
239,524
|
|
|
$
|
236,459
|
|
|
$
|
243,467
|
|
|
$
|
256,137
|
|
|
$
|
956,433
|
|
|
$
|
1,005,231
|
|
|
Noninterest
income
|
|
|
36,568
|
|
|
|
38,743
|
|
|
|
39,688
|
|
|
|
38,266
|
|
|
|
37,724
|
|
|
|
153,265
|
|
|
|
145,128
|
|
|
Less: net (loss) gain
on sale or write down of assets
|
|
|
(84)
|
|
|
|
(45)
|
|
|
|
1,994
|
|
|
|
121
|
|
|
|
2,087
|
|
|
|
1,986
|
|
|
|
3,934
|
|
|
Noninterest income
excluding net gains and losses on the sale or write down of assets
and securities
|
|
|
36,652
|
|
|
|
38,788
|
|
|
|
37,694
|
|
|
|
38,145
|
|
|
|
35,637
|
|
|
|
151,279
|
|
|
|
141,194
|
|
|
Total income excluding
net gains and losses on the sale or write down of assets and
securities
|
|
$
|
273,635
|
|
|
$
|
278,312
|
|
|
$
|
274,153
|
|
|
$
|
281,612
|
|
|
$
|
291,774
|
|
|
$
|
1,107,712
|
|
|
$
|
1,146,425
|
|
|
Efficiency ratio,
excluding net gains and losses on the sale or write down of assets
and securities, merger related expenses and FDIC special
assessment
|
|
|
48.23
|
%
|
|
|
48.35
|
%
|
|
|
48.51
|
%
|
|
|
43.37
|
%
|
|
|
40.78
|
%
|
|
|
47.09
|
%
|
|
|
42.21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
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SOURCE Prosperity Bancshares, Inc.
